Resolution

Constitutional review of the Regulation of the Central Bank of the Republic of Kosovo on Cash Operations

Case No. KI42/24

Applicant: Vasilije Arsić

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Prishtina, on​​ 7 June​​ 2024

Ref. no.:​​ RK​​ 2418/24

 

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This translation is unofficial and serves for informational purposes only.

 

 

 

RESOLUTION ON INADMISSIBILITY​​ 

 

in

 

case no.​​ KI42/24

 

Applicant​​ 

 

Vasilije Arsić

 

 

Constitutional review of​​ the Regulation on Cash Operations of the Central Bank of the Republic of Kosovo

 

 

THE CONSTITUTIONAL COURT OF THE REPUBLIC OF KOSOVO

 

 

composed of:

 

Gresa Caka-Nimani, President​​ 

Bajram Ljatifi, Deputy President ​​ ​​ ​​ ​​​​ 

Selvete Gërxhaliu-Krasniqi, Judge

Safet Hoxha, Judge

Remzije Istrefi-Peci, Judge

Nexhmi Rexhepi, Judge,​​ 

Enver Peci,​​ Judge,​​ and

Jeton Bytyqi, Judge

 

 

Applicant

 

  • The Referral was submitted by​​ Vasilije​​ Arsić, a​​ lawyer from the municipality of Ranillug​​ (hereinafter: the​​ applicant).​​ ​​  ​​​​ 

Challenged decision

 

  • The applicant challenges the constitutionality of the​​ ​​ Regulation on Cash Operations of the Central Bank of the Republic of Kosovo​​ (hereinafter:​​ the CBK Regulation).​​ ​​ 

 

  • The applicant requests the imposition of the interim measure in order to​​ “suspend the validity”​​ of Article​​ 35 (Euro currency)​​ of​​ ​​ the CBK Regulation.​​ ​​ 

 

Subject matter

 

  • The subject matter is the constitutional review of the​​ CBK Regulation​​ through which it is claimed that the applicants fundamental rights guaranteed by articles 7 [Values], 11 [Currency], 22 [Direct​​ Applicability​​ of International Agreements and Instruments], 23 [Human Dignity], 24 [Equality Before the Law], 25 [Right to Life], 46 [Protection of​​ Property], 49 [Right to Work and Exercise Profession], 51 [Health and Social Protection], 57 [General Principles], 58 [Responsibilities of​​ the​​ State] and 59 [Rights of Communities and Their Members]​​ ​​ of the Constitution of the Republic of Kosovo (hereinafter: the Constitution)​​ have been violated.​​ 

 

Legal basis

 

  • The referral is based on paragraph​​ 7​​ of​​ Article 113 [Jurisdiction and Authorized Parties]​​ of the Constitution, Articles 22 (Processing Referrals)​​ and​​ 47​​ (Individual Requests)​​ of the Law no. 03/L-121 on the Constitutional Court of the Republic of Kosovo (hereinafter: the Law) and rule 25 (Filing of Referrals and Replies)​​ of the Rules of Procedure of the​​ Constitutional​​ Court​​ of the Republic of Kosovo​​ (hereinafter: the Rules of Procedure).​​ 

 

Proceedings before the Constitutional Court

 

  • On​​ 20​​ February​​ 2024,​​ the Applicant submitted the Referral to the Constitutional Court of the Republic of Kosovo (hereinafter: the Court).

 

  • On 21 February​​ 2024,​​ the President of the Court by Decision​​ [GJR. No. KI42/24]​​ appointed Judge​​ Enver​​ Peci​​ as Judge Rapporteur and​​ by Decision​​ ​​ [KSH. No. KI42/24]​​ the Review Panel​​ ,​​ composed of judges:​​ Gresa Caka-Nimani​​ (Presiding),​​ Bajram Ljatifi​​ and​​ Remzije Istrefi-Peci​​ (members).

 

  • On​​ 23​​ February​​ 2024,​​ the applicant submitted additional documents, mainly clarifying​​ issues of procedural legitimacy and exhaustion of legal remedies.​​  ​​​​ .​​ 

 

  • On​​ 11​​ March​​ 2024,​​ Judge Jeton Bytyqi took an oath before the President of the Republic of Kosovo, in which case his mandate at the Court began.

 

  • On​​ 20​​ March​​ 2024,​​ the applicant was notified about the registration of the referral and a copy was sent to the CBK, with the possibility of providing comments regarding the claims raised by the applicant.

 

  • On​​ 3​​ April​​ 2024, the CBK submitted comments regarding the claims raised in the applicant’s referral.​​ ​​ 

 

  • Judge Radomir Laban did not participate in the review and decision-making process regarding this case, based on the Decision [No. Ref.: KK280/24] of 8​​ May​​ 2024 through which his request for​​ recusal​​ from the review and decision-making process related to referral no. KI42/24​​ was approved.​​  ​​​​ 

  • On​​ ​​ 14​​ May​​ 2024,​​ the Review Panel considered the report of the Judge Rapporteur​​ and unanimously​​ recommended to the Court​​ the​​ inadmissibility of the referral.​​ 

 

Summary of facts

 

  • On 27​​ December​​ 2023, the CBK Board based on the relevant provisions of Law no. 03/L-209​​ on​​ the Central Bank of the Republic of Kosovo, approved the Regulation on Cash Operations, which entered into force on 1 February 2024.

 

  • Article 35 (Euro currency) of the aforementioned CBK Regulation, which is the subject of the applicant’s allegations, establishes:​​ “1.The only currency allowed to be used for carrying out cash payment transactions and in the payment system in the Republic of Kosovo is euro, as the only currency also within the meaning of Article 11 of the Constitution of the Republic of Kosovo and Articles 16, 17 and 18 of Law No. 03/L-209 on Central Bank of the Republic of Kosovo. 2.​​ Central Bank of the Republic of Kosovo is the only monetary authority that can decide on the permitted denominations of the euro currency for circulation in the Republic of Kosovo.”​​ 

 

Applicant’s allegations

 

  • The applicant claims that his fundamental rights guaranteed by articles​​ 7 [Values], 11 [Currency], 22 [Direct Applicability of International Agreements and Instruments], 23 [Human Dignity], 24 [Equality Before the Law], 25 [Right to Life], 46 [Protection of Property], 49 [Right to Work and Exercise Profession], 51 [Health and Social Protection], 57 [General Principles], 58 [Responsibilities of the State] and 59 [Rights of Communities and Their Members]​​ ​​ of the Constitution have been violated.​​ 

 

  • The applicant claims that the implementation of Article 35 (Euro currency) of the contested CBK Regulation violates​​ a number of human rights guaranteed by the Constitution, as well as by international conventions that​​ are applied​​ directly based on Article 22 of the Constitution.

 

  • In this context, the applicant​​ alleges: (i) with the implementation of rule 35 (Euro currency) of the​​ contested​​ CBK Regulation, the entry of​​ dinars into the territory of Kosovo is confiscated or prohibited, in which case it affects the salaries and pensions of citizens who receive income in dinars; (ii)​​ the​​ CBK has not yet implemented the measures to accept income in euro currency; (iii) the implementation of rule 35 (Euro currency) of the​​ contested​​ CBK Regulation violates the property rights of citizens without compensation; and​​ therefore, (iv) the citizens of Kosovo remain without their income, which is contrary to the fundamental rights guaranteed by the Constitution.​​ 

 

  • The applicant claims that Article 35 (Euro currency) of the​​ contested​​ CBK Regulation is not proportionate,​​ stating​​ that​​ Although the holders of public authority in Kosovo justify the implementation of the contested regulation in its entirety in the above manner with the fact that it has a legitimate purpose, the legitimate purpose must not be applied in a disproportionate manner, in accordance with Article 18 of the European Convention on Human Rights and Fundamental Freedoms, which applies directly on the basis of Article 22 of the Constitution, and such an application, which seriously infringes​​ upon​​ the​​ fundamental human rights, is certainly disproportionate and it is indisputable that Article 35 of the Regulation is implemented in​​ precisely​​ such a​​ manner.”​​ 

 

  • The applicant claims that Article 35 (Euro currency) of the​​ contested​​ regulation is indirectly discriminatory against the Serb community in Kosovo and adds that its​​ application constitutes indirect discrimination, despite the fact that it does not contain​​ expressively​​ any discriminatory provision.

 

  • The applicant​​ alleges​​ that Article 35 (Euro currency) of the​​ contested​​ Regulation is contrary to the jurisprudence of the ECtHR which​​ establishes​​ that​​ limitations​​ on human rights must be based on law and if they are based on law, the​​ limitations​​ must also have a legitimate purpose, be proportionate​​ and necessary in a democratic society. In this regard, the applicant emphasizes that Article 1 of Protocol no. 1 of the ECHR defines​​ expressis verbis​​ that​​ interference with property rights can only be done in the manner provided by law.

 

  • The applicant claims that the contested​​ CBK​​ Regulation regulates issues​​ which, according to the Constitution, should have been regulated by a law approved by the Assembly of the Republic of Kosovo. The​​ applicant​​ emphasizes that the contested Regulation of the CBK is expressly contrary to the Constitution and,​​ as​​ such, cannot be part of the legal-constitutional order of the Republic of Kosovo.

 

  • The applicant​​ alleges​​ that the implementation of Article 35 of the contested Regulation affects pensions that are protected by guarantees for the right to property and emphasizes: (i) the implementation of the contested CBK Regulation affects legally acquired rights such as salaries and pensions; (ii) based on the​​ case law​​ of the ECtHR, salaries and pensions are protected by Article 1 of Protocol no. 1 of the ECHR; consequently, (iii) Article 1 of Protocol no. 1 of the ECHR is applicable in the circumstances of the​​ present​​ case.

 

  • The applicant​​ alleges​​ that the contested Regulation is neither a formal law nor a substantive law and adds that the implementation of rule 35 (Euro currency) of the contested CBK Regulation affects the rights acquired through contributions and other social benefits enjoyed by protection from article of Protocol no. 1 of the ECHR.

 

  • The​​ applicant​​ states that the contested Regulation of the CBK was not​​ adopted​​ in consultation with the community and​​ alleges: (i)​​ the contested​​ CBK​​ Regulation mainly affects members of the Serb community; (ii)​​ the contested regulation of the CBK was adopted contrary to the provisions of articles 57-59 of the Constitution and article 15 of the Framework Convention of the Council of Europe for the Protection of Minorities, which are directly applicable based on article 22 of the Constitution.​​ 

 

  • The applicant claims that he has the procedural legitimacy to submit the​​ referral​​ to the Court and adds that the latter is competent to decide on this​​ referral. In this regard, the applicant​​ claims​​ that based on Article 112 of the Constitution: (i)​​ the Court is the final authority for the interpretation of the Constitution and the compatibility of laws with the Constitution; and (ii) the Court has jurisdiction and​​ it​​ is within its scope to​​ review​​ the​​ referral.

 

  • The applicant emphasizes that the Court is a protector of the rule of law and adds: (i)​​ the​​ contested​​ CBK regulation violates the rule of law and​​ fundamental​​ human rights; and, (i) the Court being the final authority in the interpretation of the Constitution, has indisputable jurisdiction to consider the​​ allegations​​ raised in this​​ referral.​​ ​​ 

 

  • Regarding the obligation to exhaust legal remedies, the applicant claims: “There is no prior legal remedy against the acts that affect the applicant, as they are factual actions, taken on the basis of Article 35 of the Regulation on cash operations, which violate the​​ fundamental​​ human rights guaranteed by the Constitution, which cannot be appealed,​​ namely, it is not possible to effectively eliminate the​​ violation​​ of​​ human rights mentioned in the​​ referral​​ by other legal​​ remedies, and the​​ applicant​​ can only​​ turn to the Constitutional Court as the supreme​​ protector​​ of constitutionality and the guardian of the Constitution.”​​ 

 

  • The applicant requests the Court to​​ render​​ a decision: “IT IS​​ FOUND​​ THAT Article 35 of the Regulation on cash operations was not​​ rendered​​ in accordance with Articles 7, 11, 22, 23, 24, 25, 46, 49, 51, 57, 58 and 59 of the Constitution of Kosovo, as well as Article 16 of Law 03/L-209 on the Central Bank of the Republic of Kosovo, therefore, it is​​ declared UNCONSTITUTIONAL and​​ is​​ repealed.

 

  • In this regard, the applicant claims that the implementation of the contested Regulation causes irreparable damage to the citizens of Kosovo and requests the​​ imposition​​ of an​​ interim​​ measure: “In accordance with Article 27 of the Law on the Constitutional Court, the validity of Article 35 of the Regulation on cash operations is SUSPENDED until the final decision on its constitutionality is taken. This decision enters into force immediately after​​ it is rendered.

 

Comments submitted by CBK

 

  • In the comments submitted on 3 April 2024, the CBK emphasized:​​ the​​ CBK, after examining the submitted​​ referral, assesses that the Constitutional Court should: (i) consider the submitted​​ referral​​ inadmissible due to non-exhaustion of regular legal remedies; and (ii) only if the Constitutional Court considers the​​ referral​​ admissible, then​​ it should​​ reject it as ungrounded because Article 35 of the Regulation on Cash Operations is in compliance with the constitutional provisions, and (iii) reject the request for an​​ interim​​ measure.

 

  • In the context of the obligation to exhaust legal remedies, the CBK emphasized: (i)​​ the​​ Court in​​ the case law​​ has assessed that the rule for exhausting legal remedies is of a binding nature for individuals who submit individual​​ referrals​​ against the acts of public authorities; (ii) compliance with the obligation to exhaust legal remedies, allowing the regular courts to correct​​ flaws​​ through the regular​​ court​​ process; (iii) the protection mechanism of the Constitutional Court is​​ of a​​ subsidiary​​ nature; (iv) the standards​​ established​​ by the Court in cases KI16/11 and KI130/22,​​ sub-legal acts​​ such as the contested Regulation of the CBK through the relevant law for initiating administrative conflicts; and, (v) as a consequence, the applicant has available effective legal remedies which he has failed to prove to be ineffective.

 

  • In the context of the compatibility of the contested Regulation of the CBK with the Constitution, the CBK emphasizes: (i) the CBK is an independent constitutional institution, established in accordance with Article 11 [Currency] and Article 140 [Central Bank of Kosovo] of the Constitution, as the only central banking authority; (ii) Article 11 of the Constitution stipulates that in the Republic of Kosovo a single currency is used as a valid means of payment, and that the Central Banking Authority is the Central Bank of the Republic of Kosovo; (iii) this provision affirms the fact that the organic function of a central banking authority is to ensure the implementation of a single currency in the Republic of Kosovo; (iv) the organic function of CBK is further elaborated by Law No. 03 /L-209​​ on​​ the Central Bank of the Republic of Kosovo; (v) articles 7, 8 and 22 of Law No. 03 /L-209​​ on​​ the Central Bank​​ establishes: a) the primary objective of the CBK is to maintain and​​ foster​​ the safe, stable and efficient payment system; b) ensuring the​​ appropriate​​ supply of banknotes and coins in the Republic of Kosovo; and c) CBK approves Regulations for the​​ oversight​​ and​​ issuance​​ and quality of payment instruments.

 

  • In the context of the legitimate purpose for issuing the contested Regulation of the CBK, the CBK emphasizes: “The​​ adoption​​ of the Regulation was an action in the​​ achievement of legitimate goals and in proportion to the events that took place especially during 2023, such as the appearance of counterfeit money with the two (2) euro coin, followed by the suspicions about banknotes, as well as the danger that came from not controlling currency inflows and outflows in the country. All these negative phenomena have endangered the integrity of the financial system and the euro itself in the Republic of Kosovo, and as a result, the CBK, in accordance with its legal objectives and duties, has​​ interfered with​​ the adoption of the Regulation. The effects of the regulation in its entirety have been made public by the CBK and can be found on its official website.”

 ​​​​ 

  • In the context of​​ allegations​​ of discrimination, the CBK emphasizes: (i) Article 35 of the Regulation is of a universal​​ nature​​ and does not affect any particular community, but affects all communities living in the Republic of Kosovo equally; (ii) the applicant’s​​ allegation​​ that the CBK would have to conduct special consultations only with a certain community is not grounded, nor it​​ is​​ the work practice of Central Banks; (iii)​​ the​​ CBK has developed the legislative process in accordance with Article 65 of the Law on CBK, and has determined the deadline of 1​​ February​​ 2024 as the date of entry into force, while the Regulation has been approved on 27​​ December​​ 2023; and, (iv) also, it is worth noting that the use of the euro currency as the only valid means of payment is not a legislative innovation in the Republic of Kosovo​​ stipulated​​ by Article 35 of the Regulation, since this was predetermined by the Law of CBK and other legislative acts.​​ 

 

Relevant constitutional and legal provisions

 

Constitution of the Republic of Kosovo

 

Article​​ 11

[Currency]

 

“1.​​ The Republic of Kosovo uses as legal tender one single currency.​​ 

2. The Central Banking Authority of Kosovo is independent and is called the Central Bank of the Republic of Kosovo.”

 

 

Article​​ 46

[Protection of Property]

 

“1.​​ The right to own property is guaranteed.​​ 

2. Use of property is regulated by law in accordance with the public interest. \

3. No one shall be arbitrarily deprived of property. The Republic of Kosovo or a public authority of the Republic of Kosovo may expropriate property if such expropriation is authorized by law, is necessary or appropriate to the achievement of a public purpose or the promotion of the public interest, and is followed by the provision of immediate and adequate compensation to the person or persons whose property has been expropriated.​​ 

4. Disputes arising from an act of the Republic of Kosovo or a public authority of the Republic of Kosovo that is alleged to constitute an expropriation shall be settled by a competent court. 5. Intellectual property is protected by law.”

 

Article​​ 53​​ 

[Interpretation of Human Rights Provisions]

 

Human rights and fundamental freedoms guaranteed by this Constitution shall be interpreted consistent with the court decisions of the European Court of Human Rights.”​​ 

 

 

European Convention on Human Rights

 

Article​​ 1​​ of Protocol no. 1

(Protection of property)

 

Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.​​ 

. The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties.”

 

 

LAW​​ No. 03/L-202​​ ON ADMINISTRATIVE CONFLICTS

 

Article​​ 13

Administrative conflict

 

“1.​​ An administrative conflict can start only against the administrative act issued in the administrative procedure of the court of appeals.​​ 

2.​​ An administrative conflict can start also against the administrative act of the first instance, against which in the administrative procedure, complain is not allowed.”

 

Article​​ 14

No title

 

An administrative conflict can also start when a competent body has not issued the relevant administrative act according to the request or complain of the party, under the conditions foreseen by this law.”

 

 

LAW​​ No. 03/L-209​​ ON CENTRAL BANK OF THE REPUBLIC OF KOSOVO

 

Article​​ 16

Issuance of currency​​ 

 

“1.​​ The currency of Kosovo shall be determined by Law in accordance with Article 11 of the Constitution.​​ 

2. No other legal or natural person other than the Central Bank shall have the right to issue banknotes and coins.​​ 

3. The Central Bank shall be responsible for maintaining an appropriate supply of banknotes and coins in Kosovo.”

 

REGULATION ON CASH OPERATIONS

Article​​ 35​​ 

Euro currency

 

“1.​​ The only currency allowed to be used for carrying out cash payment transactions and in the payment system in the Republic of Kosovo is euro, as the​​ only currency also within the meaning of Article 11 of the Constitution of the Republic of Kosovo and Articles 16, 17 and 18 of Law No. 03/L-209 on Central Bank of the Republic of Kosovo.​​ 

2. Central Bank of the Republic of Kosovo is the only monetary authority that can decide on the permitted denominations of the euro currency for circulation in the Republic of Kosovo.

 

Admissibility of the Referral

 

  • The Court​​ first​​ examines whether the applicant’s​​ referral​​ has met​​ ​​ the admissibility requirements established in the Constitution,​​ foreseen in the Law​​ and​​ ​​ further specified in the Rules of Procedure.

 

  • In this respect, the Court refers to paragraphs 1 and 7 of Article 113 [Jurisdiction and Authorized Parties] of the Constitution which establish:

 

“1.​​ The Constitutional Court decides only on matters referred to the court in a legal manner by authorized parties.

 

​​ […]

 

7.​​ Individuals are authorized to refer violations by public authorities of their individual rights and freedoms guaranteed by the Constitution, but only after exhaustion of all legal remedies provided by law”.

 

  • In addition, the Court refers to Article 47 (Individual Requests) of the Law and item (b) of paragraph (1) of Rule 34 of the Rules of Procedure, which establish:

 

Article​​ 47

(Individual Requests)

 

“1.​​ Every individual is entitled to request from the Constitutional Court legal protection when he considers that his/her individual rights and freedoms guaranteed by the Constitution are violated by a public authority.

2.​​ The individual may submit the referral in question only after he/she has exhausted all the legal remedies provided by the law”.

 

Rule 34​​ 

(Admissibility Criteria)

 

“1.​​ The Court may consider a referral as admissible if:

[…]

(b)​​ All effective remedies foreseen by law against the challenged act have been exhausted.”

 

  • Based on the aforementioned provisions, the Court recalls that based on the Constitution of the Republic of Kosovo, all individuals are authorized to raise violations by public authorities of their individual rights and freedoms, guaranteed by the Constitution, but only after they have exhausted all legal remedies established by law. Moreover, according to paragraph 1 of Article 47 (Individual Requests) of the Law, every individual has the right to seek legal protection from the Constitutional Court in case he considers that his rights and freedoms guaranteed by the Constitution have been violated by any public authority. According to paragraph 2 of the same article, the individual can submit the referral in question only after exhausting all legal remedies established by law.​​ 

 

  • In that way, the regular courts must be afforded the opportunity to correct their errors through a regular judicial proceeding before the case arrives to the Constitutional Court. The rule is based on the assumption, reflected in Article 32 of the Constitution and Article 13 of ECHR that under the domestic legislation there are available legal remedies to be used before the regular courts in respect of an alleged breach regardless whether or not the provisions of the ECHR are incorporated in national law ​​ (see cases of the Court​​ KI179/20,​​ applicant​​ Kosovo Telecom​​ J.S.C.,​​ Resolution on Inadmissibility, of 27 January 2021, paragraph 94;​​ and​​ ​​ KI19/20​​ applicant​​ Lutfi Shantir,​​ ​​ Resolution on Inadmissibility​​ of​​ 22​​ July​​ 2020,​​ paragraph​​ 36;​​ see also ECtHR case​​ Aksoy​​ v. Turkey, no. 21987/93​​ Judgment​​ of​​ 18​​ December​​ 1996, paragraph​​ 51).​​ Furthermore,​​ the principle is that that the protection mechanism established by the Constitutional Court is subsidiary to the regular system of judiciary safeguarding human rights​​ (see the case of the Court​​ KI19/20​​ applicant​​ Lutfi Shantir,​​ cited above, paragraph​​ 37;​​ and see​​ also the ECtHR case,​​ Handyside​​ v. the United Kingdom, no. 5493/72,​​ Judgment of​​ 7​​ December​​ 1976, paragraph​​ 48).

 

  • Based on​​ Article 113.7 of the Constitution, the Applicant should have a regular way to the legal remedies which are available and sufficient to ensure the possibility to put right the alleged violations. The existence of such legal remedies must be sufficiently certain not only in theory but also in practice, and if this is not so, those legal remedies will lack the requisite accessibility and effectiveness​​ (see cases of the Court​​ KI57/22​​ and​​ KI79/22,​​ applicant​​ Shqipdon Fazliu​​ and​​ Armend Hamiti,​​ Resolution on Inadmissibility,​​ of​​ 4​​ July​​ 2022, paragraph​​ 74;​​ and​​ KI221/19​​ applicant​​ Hashim Gashi, Selajdin Isufi, B.K., HZ., M.H., R.S., R.E., S.O., S.H., H.l., N.S., S.l.​​ and​​ S.R,​​ Resolution on Inadmissibility, of​​ 11​​ November​​ 2020, paragraphs​​ 56-57;​​ see also cases of the ECtHR​​ Akdivar and others v. Turkey, no. 21893/93,​​ Judgment,​​ of​​ 1​​ April​​ 1998, paragraph 69; Öcalan v. Turkey, no. 46221/99,​​ Judgment of 12 May 2005, paragraphs 63-72; and Kleyn and others v. the Netherlands,​​ no. 39343/98 and 3 others, Judgment of 6 May 2003, paragraphs155-162).​​ 

 

  • It falls to the Court to examine whether the legal remedies have been exhausted, and whether​​ the legal remedy​​ was effective, available in theory and practice at the relevant time, that is, that the remedy was accessible, and that it could redress the violations in relation to the objections of the Applicant and that it enables reasonable prospect for success​​ (see cases of the Court​​ KI57/22​​ and​​ KI79/22,​​ applicants​​ Shqipdon Fazliu​​ and​​ Armend Hamiti,​​ cited above, paragraph​​ 74;​​ KI221/19​​ applicants​​ Hashim Gashi, Selajdin Isufi, B.K., HZ., M.H., R.S., R.E., S.O., S.H., H.l., N.S., S.l.​​ and​​ S.R,​​ cited above, paragraphs​​ 56-57;​​ ​​ and​​ KI19/20​​ applicant​​ Lutfi Shantir,​​ cited above, paragraph​​ 39;​​ see also case of the ECtHR,​​ Civet​​ v. France​​ no. 29340/95,​​ Judgment of​​ 28​​ September​​ 1999, paragraphs​​ 42-44).

 

  • However, when a legal remedy is provided by law, it is up to the Applicant to prove that the legal remedy provided by law has in fact been exhausted, or that for any reason it was not available and effective in the particular circumstances of the case, or that there have been special circumstances due to which he or she is exempted from the requirements of exhaustion of legal remedies​​ (see cases of the Court​​ KI130/22,​​ applicant​​ Florina Jerliu,​​ Resolution on Inadmissibility of​​ ​​ 12​​ April​​ 2023, paragraph​​ 43;​​ and​​ KI19/20​​ applicant​​ Lutfi Shantir,​​ cited above, paragraph​​ 40).

 

  • The​​ Court recalls the reasoning of the applicant for non-exhaustion of legal remedies:​​ There is no prior legal remedy against the acts that affect the applicant, as they are factual actions, taken on the basis of Article 35 of the Regulation on cash operations, which violate the​​ fundamental​​ human rights guaranteed by the Constitution, which cannot be appealed,​​ namely, it is not possible to effectively eliminate the violation​​ of​​ human rights mentioned in the​​ referral​​ by other legal​​ remedies, and the​​ applicant​​ can​​ only turn to the Constitutional Court as the supreme​​ protector​​ of constitutionality and the guardian of the Constitution.”​​ 

 

  • The​​ Court notes that in the circumstances of​​ the present​​ case, the applicable laws refer to the legal remedies​​ provided by​​ Law no. 03/L-202 on Administrative Conflicts (hereinafter:​​ LAC). The​​ Court emphasizes that articles 13 and 14 of the​​ LAC, which are related to the possibility of initiating an administrative conflict,​​ establish: (i) an administrative conflict can only be initiated against the administrative act issued in the administrative procedure in the second​​ instance; (ii) the administrative conflict can also be initiated against the administrative act of the first​​ instance, against which in the administrative procedure the appeal is not allowed; and, (iii) the administrative conflict can​​ be initiated​​ even when the competent body has not issued a relevant administrative act according to the partys request or complaint, under the conditions provided by this law (see, among others, the cases of the Court​​ KI130/22,​​ applicant​​ Florina Jerliu,​​ cited above, paragraph​​ 45;​​ and​​ KI147/18,​​ applicant​​ Arbër Hadri,​​ Resolution on Inadmissibility, of​​ 4​​ September​​ 2019, paragraphs​​ 52​​ and​​ 53).

 

  • The Court considers that the burden of proof falls on the applicant,​​ namely,​​ he​​ must prove why the available legal remedies are not sufficiently​​ certain​​ not only in theory but also in practice and why they are not accessible and effective. In the circumstances of the​​ present​​ case, the Court considers that the Applicant has not​​ provided​​ any argument regarding the above-mentioned legal remedies and has not argued why those legal remedies are unable to provide a solution or do not offer any reasonable​​ prospect​​ of success regarding​​ his​​ claims for constitutional violation (see Court cases​​ KI130/22,​​ applicant​​ Florina Jerliu,​​ cited above, paragraph​​ 46;​​ and​​ KI147/18,​​ applicant​​ Arbër Hadri,​​ cited above, paragraphs​​ 56​​ and​​ 57).

 

  • The​​ Court, based on Article 113.7, puts into operation its revisional and subsidiary jurisdiction for all individual requests on the respect of constitutional rights, which also have normative sub-legal act as the subject of dispute. Revisional jurisdiction as such is activated after the exhaustion of legal remedies. According to the Courts point of view, the border where the jurisdiction of judicial control over normative sub-legal acts begins and ends and where the jurisdiction of the Constitutional Court begins is well defined when it comes to the exercise of the Court’s subsidiary (revision) jurisdiction. In this regard, as the applicants have received a final answer from the regular courts, on the basis of their lawsuit on their dispute against the legality of the sub-legal normative act, such as the contested CBK Regulation,​​ then the latter is legitimized​​ ​​ to​​ articulate​​ claims for violation of the fundamental rights and freedoms in the individual constitutional complaint. (see case of the Court​​ KI10/22​​ applicant,​​ Trade Union of the Institute of Forensic Medicine,​​ Judgment of​​ 18​​ July​​ 2022, paragraph​​ 77).

 

  • Therefore,​​ the Court also emphasizes the study of the Venice Commission, which assesses that in relation to the types of norms that can be presented for constitutional review, the constitutional court should be tasked only with verifying the constitutionality of legal acts, leaving in principle the control of sub-legal acts to regular courts, in order to avoid its backlog. (see Court’s case​​ KI10/22​​ applicant,​​ Trade Union of the Institute of Forensic Medicine,​​ cited above, paragraph​​ 79;​​ also,​​ see​​ study no. 538/2009 [CDL-AD(2010)039rev.] on the individual approach to the constitutional judiciary, adopted by the Venice Commission at its 85th session (December 17-18 2010), paragraph​​ 6).

 

  • The Court assesses that in the circumstances of the present case, the applicant - in accordance with the subsidiary nature of the individual constitutional complaint - should have first challenged the contested Regulation of the CBK in the procedure before the regular courts as provided by the law in force. The​​ Court in its​​ case law​​ has held the position that regular courts have jurisdiction to assess the legality of sub-legal acts such​​ as the contested​​ CBK​​ Regulation (see the case of the Court​​ KI10/22​​ applicant,​​ Trade Union of the Institute of Forensic Medicine,​​ cited above, paragraphs​​ 76-82;​​ and​​ KI130/22,​​ applicant​​ Florina Jerliu,​​ cited above, paragraph​​ 47).​​ 

 

  • The Court finds that the applicant has failed to justify why the regular legal remedies before the regular courts for some reason were not available to him or were ineffective in special circumstances of the case or that there were special circumstances due to which​​ he​​ would be released from the obligation to exhaust all legal remedies.

 

  • From the above, the Court concludes that the applicant’s​​ referral​​ should be declared inadmissible because all legal remedies have not been exhausted in accordance with Article 113.7 of the Constitution, Articles 20 and 47 of the Law and Rule 34 (1) (b ) of the Rules of Procedure.

 

Request for interim measure​​ 

 

  • The Court notes that the Applicant requests the Court to impose an interim measure, in order to​​ “suspend validity”​​ of Article​​ 35 (Euro​​ currency)​​ of the CBK Regulation. ​​ 

​​ 

  • Given that the Court has already found that the applicant’s referral is premature,​​ the latter​​ finds that the request for an​​ interim​​ measure should be rejected in accordance with rules 44 and 45 of the Rules of Procedure (see, among others, the case of the Court​​ KI65/22​​ applicant,​​ company​​ “Fitorja”​​ l.l.c.,​​ Resolution on Inadmissibility of​​ 23​​ February​​ 2023, paragraph​​ 71).

 

  • For this reason,​​ the request for interim measure is to be rejected.

 

​​  ​​​​ 

FOR THESE REASONS

 

The Constitutional Court, in accordance with Articles 113 (1) and (7) and 116 (2) of the Constitution, Articles 20, 27 and 47 of the Law and Rule 48 (1) (b) of the Rules of Procedure, in the session held on 14 May 2024, unanimously

 

DECIDES

 

  • TO DECLARE​​ the Referral​​ inadmissible;

 

  • TO REJECT​​ the request for imposition of the interim measure;

 

  • TO NOTIFY this decision to the parties;

 

  • TO PUBLISH this Decision in the Official Gazette, in accordance with Article 20.4​​ of the Law;

 

  • This Decision​​ enters into force on the day of its publication in the Official Gazette of the Republic of Kosovo, in accordance with paragraph 5 of Article 20​​ of the Law.​​ 

 

 

 

 

 

Judge Rapporteur President of the Constitutional Court

 

 

 

 

Enver Peci  ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​  ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ Gresa Caka-Nimani​​ 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This translation is unofficial and serves for informational purposes only.

 

 

1

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Applicant:

Vasilije Arsić

Type of Referral:

KI – Individual Referral

Type of act:

Resolution

Legal remedies are not exhausted

Type of procedure followed before other institutions :

Administrative