Institutional impasse, is Kosovo sliding towards an economic crisis?
Express newspaper
05/10/2025 9:24
The failure to establish state institutions continues to have a negative impact on the country’s economy, creating uncertainty for local businesses and foreign investors. Local businesses and foreign investors are facing an uncertain climate, which is forcing them to slow down their activities and plans for development and investment, KosovaPress reports.
Economic and business experts estimate that the lack of political and governance stability is hindering sustainable economic development and, as they say, is creating ongoing uncertainty in the local market.
University professor Sejdi Rexhepi, speaking to KosovaPress, emphasized that “the current situation is leaving the state and the economy in a disorganized state.” According to Professor Rexhepi, in addition to local businesses, this is also directly affecting international businesses, which, even if they intended to invest in this period, according to him, have not invested and have postponed it for another period of time when the situation is stable.
Financial expert Emanuel Bajra also emphasizes that in addition to the dependence that has been created by businesses on state aid and subsidies, the political stalemate is bringing serious consequences to the modeling of the country’s economy.
In addition, Bajra tells KosovaPress that it is necessary to find a political solution to get out of this crisis for the sake of the economy, the consumer and also, as he emphasizes, the dangers coming from outside Kosovo.
The private sector is also facing major challenges as a result of the institutional vacuum. The owner of the company “ELKOS”, Ramiz Kelmendi, says that the damage to the economy and businesses is great and unending.
While the political situation continues to remain uncertain, calls from experts and businesses for institutional stability are increasingly vocal, in order to avoid long-term consequences for the country’s economy.
In addition, the lack of formation of new institutions risks leaving the country without a budget for next year.
Elections and blockades in the Assembly
Kosovo held parliamentary elections on February 9, but the formation of new institutions has not yet taken place.
The constitutive session of the Kosovo Assembly was closed on August 30 by the Speaker of Parliament Dimal Basha, even though the deputies failed to elect the deputy speaker from the Serbian community, in addition to electing the speaker and four other deputy speakers of the legislature.
Më On September 30, the Constitutional Court of Kosovo announced that the constitutive session of the Kosovo Assembly has not concluded.
The Constitutional Court ruled that the Constituent Session of the Assembly, which began on April 15, 2025, has not concluded as a result of the failure to elect the Deputy Speaker of the Assembly from among the deputies of the Serbian community.
According to this Court’s decision, the constitutive session of the Assembly must be concluded within the deadline set by paragraph 1 of Article 66 [Election and Mandate] of the Constitution of the Republic of Kosovo and according to the Court’s Judgment in cases KO193/25 and KO196/25, respectively within the remaining deadline of 12 days from the entry into force of this Judgment. /Kosovapress/