Failure to approve the budget endangers social welfare - DW: Kosovo can only use 1/12 of the 2025 budget

The holding of three elections within a year in Kosovo, the political crisis, the failure to form a new government, and the consequent failure to approve the budget for 2026, have put the country at risk of entering a deep budget crisis. For this reason, the elections on December 28 are expected to have particular importance.
Deutsche Welle has conducted a lengthy analysis of the economic and political crisis that has engulfed Kosovo, almost throughout 2025. The holding of three elections within a year in Kosovo, the political crisis, the failure to form a new government, which consequently resulted in the non-approval of the budget for 2026, put the country at risk of entering a deep budgetary crisis. With the dissolution of the Parliament and the announcement of extraordinary elections on December 28 by President Vjosa Osmani, Article 24 of the Law on Public Finance Management automatically entered into force, an article that allows for a budgetary extension for the first two months of 2026 for public sector salaries.
But, for the acting Minister of Economy and Finance, Hekuran Murati, the use of only 1/12 of the budget is extremely restrictive. But Minister Murati's statements are rejected by the opposition parties. According to them, the efforts to approve the budget by Vetëvendosje in these circumstances are unconstitutional, and that Vetëvendosje cannot use the budget as a means to maintain power without consensus. Even the president, Vjosa Osmani, had expressed concern several times about the non-approval of the budget or a draft law on budget allocation, saying that the salaries of public sector employees would be jeopardized.
Economic experts and various business organizations had previously raised the alarm that the country was heading towards a budget collapse, saying that for the first time the state could “shut down” and not be able to pay for any services. The Kosovo Business League also expresses deep concern about the situation created by the lack of functional institutions. “Over 1 billion euros in loans and grants remain blocked in the Assembly due to institutional dysfunction. These funds, which could be invested in energy, infrastructure, education and production, today remain stationary, while businesses face great difficulties on the ground,” says the Kosovo Business League.
The political crisis has also blocked the ratification of the Agreement with the European Union on the Growth Plan, the Facility Agreement and the Loan Agreement. The EU Growth Plan contains a package of 6 billion euros to support the approximation of the economies of the six Western Balkan countries to European standards.
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