EU measures effective in halting Kosovo's economic development

Even Kosovo's Economic Oda says that if these measures continue, they will have a negative impact on the country and a poor image of attracting foreign investment.

Meanwhile, the Chamber of Commerce and Industry says these measures should be of concern to Government, as they will have a negative impact on business development.

The International Monetary Fund said EU measures towards Kosovo are an obstacle to investment and economic development if they remain in force for long.

“While these measures are not expected to affect the prospect if they return in the short term, they could become an obstacle to foreign direct investment and economic development in general, if they stay for a longer time”, their response to RTV21 is said.

In Kosovo's Economic Ode say that if these measures continue longer, they will have a negative impact and create poor image in attracting foreign investors. The chairman of Oda Lulzim Rafina says the measures will also affect the absorption of other pressures.

“Masses which affect various EU funds, such as the digitalisation fund that has been of 7 billion where only Kosovo did not participate in this fund. Then if these measures continue, they will only go by making it difficult, because more funds will come, where all Balkan countries will benefit, while Kosovo will not benefit. If we look at the official reports of the CEC, but also on the statistics entity, we see that 65-70% are investments of our diaspora in real estate, namely if we look at that amount, only 14 million investment in the production sector, while in the service sector 14x1>, Rafina said.

Besides these measures will directly affect businesses, Skender Krasniqi from the Chamber of Commerce and Industry of Concerns also praises the Ministry of Finance's statement, Iron Murati, to reduce public debt.

A major concern that we have seen is that of Minister Murati's statement on lowering public debt, which conflicts with the need citizens and businesses have to put in more money, we have bigger debts on the market. If it were this statement that the minister said, then Germany would not have an increase in public debt that has amounted to close to 100%, Greece to 200%, Italy with 150% of the public debt, which the money received and put into the market to circulate”.

Economics Professor Bedri Statovci estimates that the EU-set measures will cause shock, especially in the construction sector.

If we consider that the construction segment is from the most developed segments in Kosovo and these measures remain in force, then I see here a deadlock in this sector, which also helps Kosovo's economic development. I also see an attraction of investors, as well as a disinterest of fellow countrymen to invest in Kosovo because the EU is a major economic power”, he said.

According to the International Monetary Fund, instability and tensions raised in Kosovo's north remain risks to the prospect, which if materialised could increase policy challenges.