Oda of Afarism: Government has no will to support businesses

As for economic activity in the country, the chairman of the Kosovo Afarism Oda, Skender Krasniqi, describes that there is stagnation and lack of government will for supporting businesses in facilitating doing business, for supplies and investments.

While, for the support of 800 thousand citizens of 100 euros, Mayor Krasniqi estimates that 100 euros are not enough for citizens, it would be necessary to separate from the government in the form of boins for purchase of local products.

Thus, according to Krasniqi, a chain-bound contribution will be contributed by giving support to local producers, as well as to the preservation and growth of employees.

“We're also analyzing the actions of various states, whether in the region or the European Union, we've demanded that this amount of about 100m euros, not be divided into salaries or pensions of citizens, but this be done in the form of bonas, since with them, citizens can afford local products. Thus, citizens would also be helped to purchase products only and not other things. So would businesses, as well as private sector workers or our producers on whom the state revenues depend... Absolutely not enough, even different states have reacted all the time in different forms so that there is greater circulation of money for citizens and businesses and thus businesses can hold workers, but citizens can survive, considering the rise in the high prices that have occurred since the end”, he says.

To ease the crisis caused by high inflation and price hikes, Chairman Krasniqi has demanded from the government the change of fiscal policies.

And we've been asking the Government of Kosovo, by Prime Minister Kurti to sit TVS in the food, from 18 percent to 5 percent, while TVS on essential products from 8 per cent to zero for six months, so that they can help businesses, workers and citizens get through this big crisis as easily as possible, because we are dealing with a very high inflation compared to the previous years. So we have increased inflation and rising prices for oil, for food, and we have no salary increases, nor increased circulation of most businesses”, he says.

On Thursday, May 5, the Assembly will review the draft law on the minimum wage. Compared to the rise of the minimum wage to 250 euros net, Krasniqi says in an interview for KosovoPress, that the salary should be classified on the basis of professions and schooling.

We welcome and not against the minimum wage growth of 250 euros, but we think that in this direction the minimum wage would have to be divided according to different professions and sectors, as it is divided in the West, in order to protect professions. Therefore, the minimum wage must be sectoral, not general. There must be minimum wages without a profession, high school and high school workers, and thus become classification. But what will be urgently needed, as there is increased state budgets as a result of increased taxes and price hikes, to be discussed for health insurance and job insurance. This would be the form of the protection of workers and the protection of citizens”, Krasniqi says.

As for economic growth, Krasniqi says economic growth over 10 per cent in 2021 has not reflected in increased employment and the welfare of citizens.

As it adds, lack of government will has made the climate of doing business difficult.

Any growth is welcome, although economic growth in the past year has come as a result of a large influx of the arrival of countrymen and consumer growth, however, this growth is not reflecting much on the growth of citizens and businesses. It's a figure we've had in the past years, but it hasn't directly affected the employment and welfare of citizens, because we have increased inflation along with growth... We have government and Finance Ministry stagnation and involunteers for supporting businesses in facilitating pay businesses, supply and investment. And the lack of government will has made the climate of doing business in Kosovo difficult and will make it even more difficult, considering that this crisis as it is seen will not be short-term, but long-term”, he says.

The price hikes are also challenging businesses in meeting contracts with public institutions.

According to Krasniqi, some businesses have also begun to file indictments against state institutions, despite continued demands by the Afarism Oda to review supply contracts.

He stressed that businesses are unable to supply goods to the military, police and hospitals.

“We, like Ode of Afarism, have also asked the prime minister and the government of Kosovo to review previous agreements between business and state institutions for supply, whether for food or various materials for municipalities or the government. The main reason is that with the beginning of the pandemic, prices have changed and businesses are unable to supply Kosovo institutions, hospitals, army and police with food and other equipment at current prices. We've asked for revision because all countries have made revisions on the basis of price change. We've been looking for the government, but we don't have any answers to that either. Kosovo is simply jeopardising to have food shortages for hospitals, for the army to police because of the inability of businesses to make these supplies at the same prices as a result of major changes. Some businesses have also begun to file lawsuits against the state because they do not change even despite demands.

We have also requested an emergency meeting, but we are on hold and we have not yet received direct response”, he says.

Among other things, Oda's leader has raised the government's lack of communication with businesses, which he says has a stagnation.

For this, he urgently urges the government to create an offer and strategy for businesses.

Weeks in sight, the government made a decision to double social assistance for April, an additional 100 euros for all retirees for April, 100 euros for 300 thousand private sector workers, 100 euros for 80 thousand public sector workers and 100 euros for 80 thousand students.

So far these tools have not been distributed to private sector workers and students.