The American Chamber of Commerce in Kosovo organized a discussion on Friday titled “Prolonged Institutional Vacuum: The Cost and Consequences for the Economy.” Major concerns were raised about how the political crisis in the country has created deep uncertainty for the business community, as well as “a decline in the liquidity of financial institutions.”

Kosovo has not established new institutions even six months after the parliamentary elections held on February 9.

The director of AmCham Kosovo, Arian Zeka, said the political crisis has worsened the financial health of businesses, mentioning the reduction of capital investments by public institutions as a consequence of the government being in a caretaker role with a limited mandate.

“Our country faces a prolonged delay in constituting the Assembly and forming the new government. This situation, besides undermining institutional citizen trust and international partners, also creates deep uncertainty for the business community and financial sector. Every day we receive information regarding the deterioration of the financial health of businesses and the decline in liquidity of financial institutions. Complaints also concern the reduction of capital investments by public institutions in the country. Being one of the main pillars of development, this affects the cash flow and financial health. It also impacts other aspects, and I hope not the reduction of jobs and purchasing power,” he said.

Also part of the discussion panel was Lorik Fejzullahu from Eco Park company, who said the political crisis has led to a reduction in government spending. According to him, unlike many other countries in the region and the world, government spending constitutes the largest part of Kosovo’s gross domestic product.

He also raised concern that if the political crisis continues, the economic damage will be greater in the next six months of this year and in 2026.

“Kosovo is very specific compared to many other countries in the region and the world, because government spending makes up the largest part of the gross domestic product. This has stagnated in recent years of governance, and now with the political deadlock, no further development and capital projects are seen. You know that five or six major municipalities still do not have approved budgets and cannot spend funds. All this has started to be felt in the economy. I believe that in the next six months, even next year, it will be more difficult,” he said.

Professor Shkumbin Misini also addressed criticism to the political spectrum for the political crisis and the failure to form new institutions.

According to him, Kosovo impoverishes itself through imports, while emphasizing the lack of foreign investments in the country.

“We import seventeen million euros daily. We only impoverish the country, as imports impoverish Kosovo, whereas exports enrich it... Consumer loans from 2020 to 2024 have increased by 96 percent. Foreign investments are declining,” he said.

Meanwhile, lawyer Florin Lata said trust in institutions has never been lower, also due to the political crisis.

He said institutional decision-making is paralyzed due to the lack of a legitimate government, while warning that for foreign investors in Kosovo, there is a real risk of suing Kosovo in case of any delays.

“Trust in institutions has never been lower. Why? It is natural, because every 48 hours there has been an Assembly session and all citizens have been affected. After those 48 hours, there have been statements, and we have all been preoccupied with politics and dissatisfied with the Assembly and other institutions. Trust has now fallen even further, and the problem is that it is very difficult to restore trust... When you paralyze decision-making in every important institution [for foreign investors], there is a real risk that Kosovo will be sued,” Lata emphasized.

This year, businesses have also faced the decision of the Energy Regulatory Office to liberalize the market. They have continuously protested in Pristina against the decision of the ERO, which according to them causes a heavy burden for local companies and Kosovo’s economy. On the other hand, the Kosovo Government never took into account the business community’s requests to postpone the decision.