American Oda: Continued public sector wage hikes for private sector

The American Economic Oda in Kosovo, through a response to the media, expresses its concerns over the passage of the wage bill and the increase in budgetary spending.

The American Oda reiterates its position that further wage growth for the public sector increases differences in payment levels between public and private sectors, to private sector disadvantages, which at the same time is the pillar of budget filling, as well as economic development.

The American “Oda believes that actions like those of state institutions, without consideration for burdens on the private sector, are contrary to the disk of top state officials for strengthening the private sector and promoting investments. Raising salaries for the public sector is a direct blow to private companies, especially to the fragile production sector, but also to increased foreign direct investments, because the workforce will not be further promoted as the competitive priority of Kosovo”, it is said in response.

According to OECA, the passage of the wage bill threatens the country's financial stability, due to the economic growth of wage spending and social schemes, at the expense of capital investments, but also because it risks deepening its budget deficit.

“at the same time, making decisions with long-term effects, under pressure, without comprehensive dialogue, including private sector representatives, affects the country's stable development prospects”, the OAK points out.

OECH points out that the country's institutions, Government and Parliament, should refrain from decisions like these, but also warnings of other decisions, which the American Oda considers as intervention in the private sector, contrary to constitutional and legal provisions, as well as the orientation of Kosovo to empower the functional market economy. /Kosovo pres/