By Vudi Xhymshiti*
The European Union has found itself once again on the wrong side of history, this time in the Western Balkans, where its policy toward Kosovo has morphed from strategic blunder to outright sabotage. A new report by the GAP Institute1, a respected Pristina-based think tank, reveals that over €600 million in vital development funds have been frozen or indefinitely delayed as a result of punitive EU sanctions against Kosovo. The sectors most affected energy and environment are not merely bureaucratic categories, but existential pillars for a country battling post-war fragility, chronic underdevelopment, and the urgent need to transition away from coal dependency.
This financial strangulation did not emerge in a vacuum. It is the result of a geopolitical farce in which the EU, in its eagerness to appease Serbian President Aleksandar Vucic, has punished the only functioning democracy in the region for exercising its sovereign rights within its own territory. The so-called “measures” were imposed in 2023, following Kosovo’s decision to close down a series of illegal Serbian-run institutions in the north including post offices operating outside the constitutional order of the Republic of Kosovo2. The government also made moves to reopen the Ibër River bridge in Mitrovica, a bridge that for decades has symbolised ethnic division, and which Prime Minister Albin Kurti sought to transform into a site of reconciliation.
These actions legitimate by every standard of international law and internal governance, were promptly denounced by Brussels and Washington as “uncoordinated” and “provocative”3. The response was swift and cynical: economic sanctions, diplomatic isolation, and an all-but-explicit message to Pristina that exercising sovereignty would come at a cost. The GAP Institute’s assessment now quantifies that cost €613.4 million in blocked funds, including €460 million earmarked for green energy and environmental development. These figures are not simply statistics, they are evidence of political punishment dressed up as diplomacy.
While Kosovo is sanctioned for removing illegal parallel structures, Serbia faces no repercussions for sheltering the very individuals orchestrating violence against Kosovar police and institutions. The September 24, 2023 paramilitary attack in Banjska4, an organised armed incursion by a Serbian-backed militia seeking to replicate Crimea-style annexation tactics, should have triggered a robust Western response. Instead, Vucic’s government, which protects suspects like Milan Radoicic, remains untouched. Serbia5 continues to be courted by EU member states, signs multi-billion-euro defence contracts, and plays host to Russian intelligence networks and Wagner Group recruitment operations, all while parading itself as an EU candidate.
The EU’s failure is not just one of moral consistency, it is a dereliction of duty. Its actions have emboldened a Kremlin-aligned strongman in Belgrade while undermining Kosovo’s international legitimacy and internal stability. In what moral universe does the EU penalise a democratic state for upholding the rule of law, while indulging a government that openly collaborates with regimes in Moscow, Tehran, and Beijing?
The diplomatic logic behind this appeasement is bankrupt. It is rooted in a fantasy that Serbia, despite its authoritarian drift, can be “kept in the European orbit” if sufficiently pampered. But Vucic has made his loyalties clear. Serbia refuses to align with EU sanctions on Russia, grants citizenship to Russian oligarchs, purchases Iranian and Chinese weaponry, and actively facilitates Kremlin soft power across the Balkans. In any sane policy environment, these would be grounds for isolation, not reward.
The most staggering indictment, however, is the silence of EU leadership in the face of these facts. Previous foreign policy chiefs, paralysed by risk aversion and haunted by the ghost of the 1990s, adopted a hands-off posture that amounted to complicity. But the arrival of Kaja Kallas, a politician forged by Estonia’s resistance to Russian imperialism ought to mark a turning point. She has no excuse for repeating the errors of her predecessors. If she understands the mechanics of Kremlin aggression, as her rhetoric suggests, she must apply that understanding to the Balkans, where Serbia now functions as Putin’s most effective proxy.
What Brussels has inflicted upon Kosovo is not diplomacy, it is coercion. It is a calculated act of political punishment against a small, post-conflict state for refusing to bend to the illegitimate demands of an aggressor. Kosovo’s efforts to assert control over its own territory should have been met with support, not sanctions. Instead, the EU has actively undermined those efforts, demanding de-escalation while ignoring the source of escalation: Belgrade6.
There is no diplomatic symmetry here. Kosovo did not invade anyone’s territory, nor did it destabilise a neighbour. It merely enforced the rule of law within its own borders. Serbia, by contrast, has stoked ethnic unrest, armed criminal networks, and flirted openly with authoritarian alliances hostile to the West7. The notion that Kosovo and Serbia are both equally to blame is not only absurd, it is a dangerous moral evasion.
The consequences are already visible. By sanctioning Kosovo and appeasing Serbia, the EU has sent a chilling message to small democracies across the continent: obedience trumps sovereignty, and the aggressor always has the upper hand if it has friends in Berlin8 or Paris9. The damage done to the EU’s credibility is profound. It cannot speak the language of democratic values while punishing those who dare to defend them10.
If Brussels wishes to reclaim even a modicum of legitimacy in the Western Balkans, it must reverse course. It must lift these punitive measures, hold Serbia accountable for its acts of aggression, and support Kosovo not just in rhetoric but in tangible policy. Anything less is a betrayal not only of Kosovo, but of the very idea of Europe.
The West’s coddling of Vucic11 is not just a tactical error, it is a strategic catastrophe. The EU is feeding the very forces that seek to unravel its unity and weaken its resolve. If it continues down this path, the next Banjska may not be in Kosovo, but somewhere else in Europe, where another border is tested, and another democracy is left to fight alone.
To restore credibility and reclaim the moral ground so recklessly abandoned12, the European Union must move decisively, not cautiously. It must dismantle the architecture of appeasement erected by the morally bankrupt triumvirate of Josep Borrell13, Miroslav Lajcak14, and Gabriel Escobar15 figures whose tenure will be remembered as the institutionalisation of hypocrisy cloaked in the language of diplomacy. Their legacy must be buried beneath a new doctrine: one that insists on accountability, not indulgence. Serbia must be made to choose with absolute clarity between its alignment with the Kremlin and integration into the democratic European order. This means real consequences: suspension of EU accession talks, a freeze on economic privileges, and the initiation of targeted sanctions against those enabling state-sponsored aggression and criminal networks in Kosovo. Simultaneously, Brussels must immediately lift its punitive measures against Kosovo, publicly acknowledge the legitimacy of its state actions, and establish a robust, long-term commitment to Kosovo’s energy transition and institutional resilience. The time for transactional diplomacy is over. If the EU cannot uphold its founding principles in the Balkans where its values are being tested in the most visceral way, it forfeits the right to speak of democracy at all. A principled Balkan strategy is not merely about Kosovo; it is about salvaging the very soul of Europe.
*https://www.thegpc.uk/p/how-the-eu-abandoned-democracy-in
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