AAKA MP: 800m euros needed for overcoming economic crisis

Abrashi has said that all forecasts show that the economic consequences will be severe worldwide, so it has to be done as soon as possible.

He has said Kosovo needs about 800m euros to stabilise the market in the country.

The various media-disposed sub-theories for the powerful return of the virus in the fall, different projections for the economic downturn we will face, and the delayed and insufficient response to the emergency package has raised the sense of uncertainty in citizens. This will reflect on their behavior as consumers, their reluctance to spend, invest, and more will exacerbate the economic situation by reducing aggregate demand, money circulation, business bankruptcy, and the increasing number of unemployed in the country<1>, Abrashi wrote.

Full MP scripture:

STIM'S PACOY FATHER AND PLANTS FOOOD FOR THE PLAIN OF THE COUNTRY!

Selfishness and social distance yielded results, hopefully we are at the end of Pandemia and that we overcame this challenge. The consequences for the country's economy are already huge.
The economic crisis will be shared with the whole world.

From last week we started with the gradual opening of the economy with predetermined security measures, but the negative effects will continue for a long time, thanks to the effects of closing and restrictions on economic activity for nearly two months, losses that have already been caused, and the fact that some sectors of the economy will need a time to return to normal market activity.

It is high-level to expect consumption to return to the pre- Pandemia level, taking into account that about 40,000 businesses have so far filed requests for pay assistance for their employees from the Emergency Package. We're talking about 170,000 employees awaiting aid of 170 euros from the Emergency Package, who have lost income and increased uncertainty that businesses they are employed will not survive the crisis, and they will be left without jobs.

Various media-projected theories on the powerful return of the virus in the autumn, different projections for the economic downturn we will suffer, and the delayed and insufficient response to the emergency package has raised the sense of uncertainty in citizens. This will reflect on their behavior as consumers, their reluctance to spend, invest, and more will exacerbate the economic situation by reducing aggregate demand, money circulation, business bankruptcy, and increasing the number of unemployed in the country.
The fusion the country's economy received during the summer months from visiting our countrymen will be reduced this summer. Even remittances may also fall into global proportions. The country's economy is endangered and the state's response should be quick and powerful.

States have already reacted with their stimulating packages to the country's economy. Germany, worth 20% of GDP, totaling about 800 billion euros. US with 10% of GDP, with about 2,000 billion dollars, Denmark with 13 % of GDP. Taking the response of various European countries and the region as orientation, Kosovo will have to react to the monetary value of 10% of the internal Bruto Production (GDP), which for 2019 is worth $8 billion and $200m.

The country's economy urgently needs 800m euros that would be ensured by the increase in public debt (borrowing), state fiscal reserves, and other forms available at this time.

The response to the crisis must first be made by ensuring the lost liquidity of businesses to ensure the continuation of their economic activity.

The next size should be trying to keep the job number rate flat, lost from the consequences of the economic crisis. Many businesses will find themselves in trouble and will have increased unemployment. As it worked out in combat with Covis-19 with measures to keep the health system from collusioning, the measures in the economy should ensure that unemployment does not increase exponentially but will last for at least a year by enabling the economy to recover, create new jobs that would absorb the unemployed who would present at the market thanks to the closure of businesses that the crisis cannot overcome. It is of general importance to the economy and society that this may take place gradually, enabling new business initiatives that the crisis has driven out of the market and the opportunities for employees who lose jobs to be employed in other businesses, but also to stimulate self-employment.

The third mass is consumer and investment stimulating. With favourable loans from banks, with adequate fiscal policies to increase demand for goods and services. Of course, we also create reliable environments by conveying a clear message that the State is functional and here to respond in the interest of its citizens. Public investments should be continued and stimulated for sectors we plan to empower in the interest of developing the country's economy by favouring local companies. This is to rely on reform of the public system that will be effective and in service to the economic sector.

Economic crises are occasions for major changes. Let's get the best out of this crisis and change the structure of the country's economy to the interest of sustainable development in the future.