GAP: Kosovo municipalities are overwhelmed by enforcement debts
Express newspaper
30/05/2025 10:43
The GAP Institute has published today the report “In Search of a Solution: Enforcement Problems in Municipalities”, which highlights the worrying dimensions of the financial burden that is weighing on Kosovo’s municipalities as a result of judicial and enforcement obligations.
According to the report, during the period 2022–2024, municipalities have paid over 163 million euros for these obligations, seriously jeopardizing their functioning and ability to implement development projects. In some cases, municipalities have been forced to seek assistance from the central level, while others have suspended or abandoned planned capital investments.
Enforcement costs have increased significantly in all municipalities, regardless of their size, proving that the problem has spread throughout the territory.
The obligations stem not only from collective agreements in the education sector, but also from similar agreements in the health sector. One of the key factors that has influenced the increase in these obligations is the 2008 decision of the Government of Kosovo, which provides for additional payment for education employees based on the level of qualification.
In addition to the education and health sectors, more and more claims for compensation are being filed by civil servants for issues such as work experience, meals, inflation and transportation costs. During 2024, a significant number of municipalities reported that enforcement costs exceeded their own revenues or even capital investment costs.
In addition to existing liabilities, municipalities are also facing a significant increase in contingent liabilities – financial claims that are in litigation – which currently amount to around 208 million euros, mainly related to capital projects.
The GAP Institute emphasizes that coping with this financial burden requires a coordinated response between local and central governments, given that most obligations stem from decisions, contracts, and laws approved by the central level.
In this regard, the report’s main recommendations are:
• The Government of Kosovo to undertake the execution of payments arising from court decisions;
• Review the Law on Salaries, in accordance with the Constitutional Court’s decision on work experience;
• Clarify the status of the 2008 decision on teacher qualifications;
• Municipalities should be included in the negotiation and drafting processes of any new law or decision that may create financial implications for the local level.