Municipalities in collapse, Collective Contracts are destroying development projects in Kosovo
Express newspaper
26/06/2025 8:15
Collective Agreements are intended as a tool to improve working conditions and protect workers’ rights, but in many cases in Kosovo they are becoming a burden on institutions. Although they are signed at the central level, the obligations arising from them are falling on municipalities, which are facing great financial difficulties. As a result, the normal functioning of municipalities is being damaged and development projects are being delayed in many areas of the country.
According to the president of the Association of Kosovo Municipalities, Sazan Ibrahim, municipalities have so far received over 145 million euros for the implementation of these contracts, including over 37 million euros this year alone through court decisions. He said that this situation is creating an extraordinary burden on municipal budgets, making it impossible to realize capital investments and burdening the finances of local institutions.
“Until May of this year, municipalities have been taken over 37 million euros through court decisions. So far, municipalities have been taken over 145 million euros for the implementation of Collective Agreements. This amount constitutes an extremely heavy burden on municipal budgets, making it impossible to implement many development projects and capital investments. The continuous taking of funds for the implementation of collective agreements, and in particular the increased cost of enforcement processes, is now being considered a financial drain on municipalities.” – he said.
Ibrahimi emphasizes that despite the fact that the problem has been known for a long time, the central level has not yet taken sufficient steps to solve it, therefore this is making the situation of municipalities more difficult and as a result, citizens will suffer from the non-implementation of projects.
“Unfortunately, so far the central level has not shown any real willingness to address this problem. As a result, many of the mayors’ commitments remain unfulfilled, while citizens will also suffer directly from the failure to implement vital projects related to infrastructure, education, health and public services in general,” he added.
Ekrem Kastrati, mayor of Malisheva, says that the situation in the municipality is extremely difficult, as they are losing a lot because the budget is being spent without planning, while projects are failing.
“The municipality is losing an extremely large amount because the budget is being spent without planning, and the projects we have planned from all budget categories are failing as a result of collective contract payments, namely payments to private bailiffs,” he said.
Mehmet Ballazhi, Mayor of the Municipality of Hani i Elezit, emphasizes that municipalities are suffering huge losses due to enforcement cases related to the collective agreement.
According to him, a large portion of the funds that should go to teachers are ending up with private bailiffs.
“We have many consequences, especially in enforcement cases, because part of the amount of these funds that the collective contract should receive, in this case the teachers, is taken by the enforcement agent. Let’s say a month and a half – two months, the enforcement agent takes about a third of the funds that the teachers should have received,” said Ballazhi.
The Mayor of Suhareka, Bali Muharremaj, has said that the payments for the collective agreement are causing huge losses for the municipality he heads. According to him, so far this amount has reached around 8.5 to 9 million euros.
“So far, its figure has reached approximately 8.5 – 9 million euros, last year 4.5 million, in 2023 1.5 million, and this year they have received 1.1 million so far and have sent documents for another 1.5 million.” – he said
Muharremaj emphasizes that this is creating difficulties, especially in relation to contractors, and adds that the responsibility does not lie with the mayors.
“For us, these are very big losses because the budget for this year was spent last year in September, we planned the project for this year, so there is a problem with payments to contractors. We are obliged to carry out the work we have planned for this year. The responsibility does not lie with the mayors since this contract is between the government and the unions, but the damages are very large,” he concluded. /Frontonline