Political stalemate in the country risks losing 300m euros

Political stalemate in the country risks losing 300m euros

No constitutionalisation of the country's institutions now and for three months is presenting multiple negative implications in Kosovo's economy. Don't review the budget, it could cause direct losses of around 200m euros, economic growth will be half smaller, but Kosovo is also losing 75m euros from the IMF and BB. [...]

In addition to these problems, there is the possibility of repeating the illegal mass ecstasy of citizens as in 2014-2015. So think Oda leaders in Kosovo, who say that the growth rate will be halved by what was envisioned for this year, because projects for capital investments will be discontinued. The executive director of the American Economic Ode in Kosovo, Arian Zeka for Kosova Prees, said that multiple consequences are being created on the political scene, related from non-retaining foreign direct investment to limited revenues for the country's budget.

Instead of thinking about creating new jobs, Zeka said they should now think about what are the jobs that will be cut short, they will be shut down within the private sector. Zeka says that because of the blockade on the political scene, Kosovo will not have fulfillment of forecasts for the economic growth rate of 2017, which are envisioned by local and international institutions. According to him, with this crisis, the economic rate will be around 1 per cent.

While the executive director of Kosovo's Afarism Oda(OAK), Ismet Mulaj, stressed that not political stability and not forming institutions in Kosovo, the main problem is in business, because business needs political stability, needs functional administration, needs political calm because of investments that can make Kosovo businesses, both local and foreign.

Consistently, he said that failure to review the budget, Kosovo's economy could cause direct losses of about 200m euros, while indirectly the damage could be much greater. Mulaj added that part of the capital projects are threatened to automatically stop, but for another part of them, the government is threatened to enter the penalty. Mukaj said, among other things, that there are cases where local businesses are becoming different barriers in relation to neighbouring countries, since Kosovo's mechanisms are lacking to react and take appropriate action.

Director of the Kosovo Economic Ode(OEK) say the situation created on the political scene will analyse capital investments, productivity and exports will decline, and there will be no foreign investment. O Deputy Chairman EK, Arif Elshani told Kosovo that a state where stability is lacking on the political scene, cannot have functional states, stable economies, physical health and quality education. He added that complaints from businesses are in succession in OEK and do not stop at any moment until there are new institutions.

 

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