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Kosovo is currently the only Luxembourg Development Cooperation country in the Balkans. Following the 1999 conflict, the Luxembourg Development Cooperation first focused on humanitarian aid and reconstruction, and then implemented development cooperation programmes from 2001 onwards.

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A cooperation office was opened in 1999, and was converted into an embassy in 2013.

In July 2022, Minister Franz Fayot signed a new cooperation agreement and a memorandum of understanding with a budget of EUR 35 million, which sets the framework for cooperation with Kosovo for the 2023-2025 period. In addition to the traditional sectors of health, vocational training and support for civil society, the MoU also covers more innovative aspects, including digitalisation and renewable energies. This third MoU sees a diversification of development cooperation with Kosovo, and a link with the private sector in Kosovo and Luxembourg.

After the new MoU was signed, taking into account a prospective and strategic study of Luxembourg’s development cooperation in Kosovo in 2021, as well as the reclassification of Kosovo as a higher middle-income country, Luxembourg presented its strategic vision (2023-2025) at the launch workshop with its Kosovar counterpart in October 2022. The vision seeks to guide future cooperation and diversification of bilateral relations.