Projects Waiting for Political Stability

The year 2017 has not produced any significant results on the ground in overall economic development. That is because even this year, according to economic experts, has dominated political agendas, especially commitments for general parliamentary and local elections.

They say many projects have remained hostage to political stability

Economics Professor Muhamet Sadiku estimates that the economic situation in Kosovo is not desirable, but, according to him, economic development is not a hostage to this year's political circumstances alone.

However, Sadiku points out that even during 2017, due to the dominance of the political agenda, competent authorities have failed to solve problems for some projects considered convenient for potential economic development.

It is true that demands are great for Kosovo to make a friendly environment for investment and, after all, make Kosovo attractive. Even through some major projects, such as the Trepca project, Brezovica, Post, has not been achieved in attracting foreign investors. And, of course, we need to strengthen political stability”, Sadiku says.

Even Naim Gashi, an expert on economic issues, says that implementation of some important laws that may have an impact on overall economic development has stalled this year. Gashi cites problems in the “Tripca” complex “Brezovica”.

Over the past 18 years, political agendas are extremely dense and economic development, job creation and improvement of the citizens' living standards are not in the agenda of Kosovo institutions.

Unfortunately, political subjects' clashes have caused the extreme polarisation of the political scene and, as a result, we have had a bypass of major capital projects and resource reactivating that our country owns”, Gashi says.

Because of the lack of implementation of the Law for Trepca, the board of this complex has not been resolved, a board that was to be initiated by law to register Trepca as public enterprise in the Ministry of Trade and Industry.

Even the concession of the tourist complex “Brezovica” has turned to zero point. Authorities in Kosovo have said that to resume the process of this project, the Law for Strategic Investment, adopted earlier this year, must be finalised and implemented.

In addition to these companies, the political situation has impacted the failure to implement the Stabilisation and Association Agreement (MSA), which has been in force since April 2016. Government officials have also accepted this.

But one of the projects considered at the greatest financial value is the construction of the thermocentral plant “New Kosovo”.

The Kosovo government, on Wednesday, has signed the commercial agreement with the American company “Contour Global” for construction of this project, worth 1.3 billion euros. This project in 2023 is expected to end ongoing electricity problems.

On the other hand, Gashi considers that politics in some cases has negative effects on the private sector as well. monopolies have been created in the Kosovo market, as he says, businesses related to politics and, therefore, are suffering the Kosovo economy.

Kosovo is still facing a marked inequality in the market, due to several monopolies created by Kosovo politics. And, unfortunately, these monopolies are seriously damaging both the state budget and free competition, but also the introduction of new businesses into the market, more competitive, at cheaper prices and with cheaper products for consumers”, considers Gashi.

Even Muhamet Sadiku emphasises that competent authorities are failing to fight corruption and numerous deviations in the economy and to empower a modern governance of economic development.

“Yes, it must be acknowledged that Kosovo has not found its password for structural reforms needed in the economy. All international reports have raised corruption problem in Kosovo. We have debates over the negative consequences of corruption, but there is no results in fighting this” phenomenon, Sadiku points out.

According to Kosovo Government officials, local production businesses from January 1st 2018 will be released from customs taxes for raw materials, half products, production lines, as well as information technology equipment.