Kosovo behind region with the rescue of economy

While some of the countries in the region have started with the implementation of the third package, which helps citizens and businesses, Kosovo has still not implemented the first fiscal emergency package, worth about 180m euros overall.

Due to the lack of budget, so far this package has been distributed to citizens only about 80m euros.

According to an International Monetary Fund platform, which follows the economic policies governments are taking to limit the impact of COVIDD-19 on citizens and economies, notes:

Serbia has prepared a package of economic measures to combat the crisis caused by the Coronavirus, worth about 3 billion euros.

Meanwhile, Montenegro's government on July 23rd has announced it has approved a 1.2 billion-euro package to support citizens and the economy in easing the effects of the coronary pandemic.

The 1.2 billion-euro package is the third package approved by the Montenegrin government, as there were in advance two other packages worth 320m euros.

Albania's government has approved two support packages for citizens and businesses affected by the Corleone pandemic, with a combined size of nearly 400m euros.

The government of Northern Macedonia, with the goal of easing the consequences of Coronavirus, which causes COVID-19, has helped companies and citizens' endangered levels with about 550m euros.

Kosovo has approved the fiscal emergency package in March, which is worth close to 180m euros and the Pack for economic recovery worth about 380m euros. But the package for economic recovery cannot be implemented without the adoption of the 2020 budget revision Bill.

What will citizens and businesses benefit from the revised budget?

This bill has been approved in the first reading in the Kosovo Assembly on 13 July and has been prosecuted on parliamentary commissions so the same can be brought to the assembly for the final vote.

Kosovo delayed to implement aid measures

The executive director of the American Economic Ode in Kosovo, Arian Zeka, told Radio Free Europe that compared to the states of the Western Balkans, Kosovo is relatively late in implementing measures in support of companies and employees infected following the outbreak of the COVID-19 pandemic.

Macedonia's “government has intervened with a monetary package worth 550m euros, without including fiscal facilities here, something we haven't seen in our country yet. Also, Montenegro, which just days ago has warned the third package worth 1.2 billion euros, while the first two packages have had a total of 320m euros”, Zeka says.

Workers to Benefit From Government Emergency Package

He adds that if these two states are compared to Kosovo, it is very easy to see how far Kosovo is to take the step to recover the economy from the consequences the pandemic is causing.

The situation we're in confirms all our predictions, grim predictions about economic recovery. We as OEAK have said that the state's delay, even in adopting these packages and implementing the measures, will cause Kosovo to lose its step even in terms of economic recovery and economic development in general”, Zeka says.

On the other hand, economic affairs expert Safet Gerjaliu tells Radio Free Europe that the fact that Kosovo is still under way in the emergency fiscal package indicates that it is too late in economic recovery compared to the countries in the region.

We are witnessing that the countries of the region have made many steps, progress, to help the private sector and citizens. In Kosovo, much more is said than done. When we have a state of emergency, we need all relief agents to navigate in one order to minimize the consequences of economic and social pandemic, but in Kosovo still another avaz continues, which for political and power purposes destroy the state and society”, Gerjaliu says.

Will the Economy Be Saved?

Gerjaliu adds that with this trend of implementing the Emergency Fiscal Pack and that of economic recovery, it will be very challenging to save the economy from the consequences being caused by the COVID-19 pandemic.

He says the damages are huge and that Kosovo needs a financial infusion worth 1.4 billion euros to help the economy.

If there is no support for businesses and citizens and the consumer indicator will not be activated, it will really be challenging to talk about economic recovery”, Gerjaliu says.

Regaining measures for protection from COVID-19, massive loss for economy

Finance Minister Hykmete Bajrami in an interview for Radio Free Europe has said that, according to predictions, Kosovo's economy will have an economic contraction in 2020 minus 3 per cent, but that an exact calculation, according to her, could occur at the end of the year.

Meanwhile, according to forecasts of international mechanisms, such as the World Bank and the International Monetary Fund, Kosovo's economy could mark economic downturns of over 5 percent.