Political struggle is “vret” businesses

This bill, following six failures, will be presented on Monday, September 12th at the extraordinary session of the Kosovo Parliament to vote on first reading.

Private businesses have sometimes expressed concern that problems caused by the pandemic crisis with coronarys have gathered, putting their survival at risk.

One of the businesses awaiting government assistance following the adoption of the Law on Economic Recovery is the company for shoe production “Solid” in Suhareka. This company, besides the local market, is also found in markets in France, Germany, Greece, Italy, North Macedonia, Montenegro, but also in Africa.

The executive director in this factory, Red Speed, in a conversation for Radio Free Europe, says state institutions are not paying attention to the private sector, namely the production industry.

It shows that currently about 300 workers work in the company, while sales and exports have dropped by up to 30 percent. This decline has affected financial revenues, therefore there are difficulties for production.

The number of workers we're holding the same, we're holding it on our own, not that we have jobs for everyone, we're trying not to get workers out of work. We're just making money out of our pocket and we're putting in business, we're making war not to shrink the number of workers and keep the industry alive. Always hoping that the state turns its attention to the private sector”, Red points out.

Government should cover workers' salaries

Red hopes that with the approval and implementation of the Law on Economic Recovery, the government will manage to subsidise workers' payments in order to facilitate the company's financial situation.

We expect the government for three months to cover the company's expenses for pay and employee contributions so that we do not stop production. In March-April-May, the company has paid all workers and government subsidies have not been put down to workers' salaries”, Red said.

During the months of March and April, the Government of Kosovo, based on Pacos Emergency Fiscal, has allocated from 170 euros a month to workers in the private sector.

The COVID-19 economic recovery bill is the basic document that is being designed to financially support private businesses, following losses caused by the coronary pandemic. The bill amounts to 385m euros.

Opposition parties in the Kosovo Assembly, the Vetevendosje Movement and the Democratic League of Kosovo are not voting the law, arguing that it does not meet business requirements.

The vote on this bill would, among other things, enable citizens to contribute 10 per cent of the means from their account to the Kosovo Pension Savings Fund, while the government will withdraw about 100m euros from the Kosovo Privatisation Agency.

IMF does not support withdrawal of Trust tools

But, the International Monetary Fund (FMN) has not supported the Kosovo Government's initiative to withdraw 10 per cent of the means from the Pension Savings Fund, as it reduces future pensions and limits the size of the internal capital market.

It argues the focus of part of the means of the Kosovo Privatisation Agency (AKP) on easing and recovery measures in the 2021 budget.

But, economic subjects in Kosovo, the Kosovo Economic Oda, the American Economic Oda in Pristina, the Kosovar Business Alliance, the Oda of Afarism and the Kosovo Manufacturer Club, have sometimes sought out Kosovo Assembly deputies to vote on the bill in order to recover businesses, as many of them are at risk of extinction.

Political struggle is destroying economy

Disapproval of this bill in the Kosovo Assembly is taking place because of political resentment between the position and opposition, says Medi Bektash, professor at Pristina University. According to him, this political struggle is destroying the economy and the consequences are irreversible.

“Deputates need to interrupt their political disputes and think seriously about the survival of businesses and poorer levels of the population. Because if this continues, then the economic downturn in the Republic of Kosovo will be two or triple higher than in other countries of the region. The Kosovo Assembly should be in service of currentity and the rescue of business operations. Otherwise, the policy fight against the economy will be more destructive than any other” pressure, Bektash said.

Even the International Monetary Fund has said that the people of Kosovo and its economy have been hit hard by the pandemic. Fiscal and financial policies have eased the impact of impact on family economies and businesses, though the lack of political consensus so far has prevented a stronger policy response.

Rukiqi: Over 30,000 jobs will be lost by year's end

Meanwhile, the chairman of the Kosovo Economic Ode, Berat Rukiqi, has said that the only ones not affected by this crisis in the economy are the ones (deputees) in parliament making decisions, while their families are employed in public institutions.

Due losses in Kosovo's economy caused by the pandemic, according to him, are one billion euros, while by the end of the year, more than 30,000 jobs could be lost, Rukiqi said on the social Facebook network.

Unable to adopt the Project on Economic Recovery, the Government of Kosovo, at the end of September, has allocated 60m euros to recover losses suffered from the COVID-19 pandemic, much that has not yet begun moving to companies.

Transfer of 60m euros, “to be transparent”

The transfer of these vehicles must be split transparently, the International Monetary Fund has requested. Planned tools should ensure that jobs are protected at the company.

According to the IMF, the criteria for qualifications for these tools should be clear and the beneficiary lists should be made public.