Parliamentary elections, experts: Without political stability there is no economic development
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1 months ago
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The EU's punitive measures and the freezing of investment funds from American support through USAID are affecting Kosovo's economic development and image. According to Kosovo economists, a prerequisite for the new government after the February 9 elections, to have a dynamic and developed economy is political stability and an urgent need for an inclusive government.
Economic expert, Safet Gërxhaliu, told KosovaPress that there is a lack of political courage for decision-making in the economic sector, since Kosovo has a "rope around its throat" and there is no solution to the issue regarding the Association.
And according to him, one of the biggest challenges is that in Kosovo there is more fighting for power than for the state.
"It must be understood that Kosovo has a rope around its neck, which is called the solution to the problem surrounding the Association and in this regard, I believe that today, any government that will be formed will find it very difficult to think about the economic aspect, if these problems are not solved. We are entering a calendar year where we have the sanctions or punitive measures of the EU that are a direct blow to the Kosovo economy and to the image of Kosovo in general. We also have the freezing of investment funds from American support through USAID and this will be truly quite challenging because it is a fairly large amount of money that was destined to support both the public and private sectors. The very fact that there is a lack of political courage for such decision-making is one of the biggest challenges, because in Kosovo there is much more fighting for power than for the state", George saidaliu.
Another economic expert, Ismet Mulaj, stated that in order for the economic sector in Kosovo to develop, a stable government is needed, according to him, which organizes structural reforms in the interest of the country's businesses.
Mulaj highlights several key factors such as regular electricity supply, international image and, most importantly, according to him, the law on strategic investments should be reformed, because, as he says, the two previous variants have failed to attract interested strategic investors.
According to economic analysts, Kosovo needs to improve relations with the EU and the US in order to have a more developed economy.
The European Union imposed economic measures against Kosovo in June 2023 due to tensions in the north. Meanwhile, in early February of this year, the decision of United States President Donald Trump to temporarily halt foreign aid for 90 days is expected to affect USAID-funded projects in Kosovo.
