On January 1st, there may be no salary and pensions ʹ risks facing Kosovo in the absence of a budget

Failure to form a new government has raised the risk of Kosovo entering 2026 without a budget.

For finance expert Hakki Shatri, the state risks defaulting, while there may be no money either for salaries or for pensions and additions for children in the next year.

In an interview for Radio Free Europe, Shatri says that only a fully competent government can undertake initiatives to change the budget law, or to continue budgetary division for the first months of 2026.

If no solution is found to function an 11th of the budget in January, even the earthquake has, no one dares take anything”, he says.

The former economy and finance minister says he saw a new government, in January he will have money neither for the army and police.

Radio Free Europe: Kosovo's incumbent Prime Minister, Albin Kurti, did not secure the votes needed for creating the new government. On October 30th is the deadline for the government's budget approval, while the Assembly should vote on it by 31 December. What economic consequences could there be if this process is not completed within deadlines?

Hakki Shatri: Regular deadlines for budget approval procedures in the Assembly are these. If we don't have an all-powerful government with an all-powerful mandate, which can proceed with a legal character document such as the budget, then there's no one to send the budget bill to the Assembly, even if it's prepared by civilian staff within the Ministry of Finance, or by competent bodies to prepare it.

In this situation, there is no one to propose changing the current budget law. As a possible option, it is an 11th of this year's budget for January and February of next year. The procedure is a proposal for changing the law on this year's budget, so it follows the same procedure as adopting the budget law itself. If there is no new government on January 1st, there will be no one to propose this continuation of budgetary spending and public money.

Only the government with full mandate “can change the budget law”

Radio Free Europe: In the current situation, is the Government in office entitled to propose continued spending for the first two months of next year?

Hakki Shatri: The budget law writes that [all budgetary divisions for the fiscal year 2025 expire] on December 31st 2025. The almighty government comes up with a decision for December 31st to be changed, and the decision is made that the 2025 budget law continues to be implemented in January and February 2026, which amounts to a change of law, means the same procedure with law approval. The government [in Kosovo's office] does not have that right. I'm already speaking out of professional responsibility that I have, only if the MPs close their eyes because their salary or certain personal interests are being violated, and they say “hit, even though it's not in accordance with the law, we're swallowing this variant”. But this is illegal. I say full responsibility: it's illegal.

Radio Free Europe: Why do you think it's illegal?

Hakki Shatri: Because this government has no authority to propose either law or law change. This has the ability only to enforce the laws that are in force.

Radio Free Europe: How long do we have budgets in the situation we are in, so with Government in office?

Hakki Shatri: In our situation, by December 31st the budget is approved. It applies, wages, pensions, all payments that are unprecedented with the budget law go smoothly, as with government, as without government. Because there's no need for the minister to take care of it anymore. The Treasury is taken, the Directorate of Budget is taken, and it only applies. From December 31st, this law is abolished. To make this law powerful after January 1st, the law must be changed. The difference is formal, with two sentences changed, but it's legal procedure. A Government decision to continue this budget even next year is not consistent with the law, because the incumbent Government has no competence.

Only an all-powerful government can propose the Parliament to continue the budget for another month, as needed, as has happened in the past.

Radio Free Europe: But, Kosovo already has its constitutional framework. Is there a mechanism inside this organ that will enable the budget to continue for two more months?

Hakki Shatri: I, as far as I know, the laws that are in force predict the possibility of continuing when there are all-powerful governments. So that [executive] would propose the Parliament, then the Parliament would make a decision.

Radio Free Europe: Kosovo is facing the possibility of holding early elections, which themselves have deadlines. How much is expected to affect the country's financial stability and budgetary planning process for 2026?

Hakki Shatri: People who are local leaders, I'm talking about all parties, should think over time, manage time and circumstances. He didn't have to lose a year to come to the end of the year and not have a unified institution. Normally we now have problems of this nature, budgeted.

Within this year we may also have extraordinary choices, but there will be no new government. I don't know if the Parliament is right to give government mandate, with a special decision to make a budget decision.

On January 1st “there will be no salaries, pensions”

Radio Free EuropeBut, according to you, what is the solution, since for a mandate you have led the Ministry of Finance in the Government of Kosovo?

Hakki Shatri: According to the experience I've had in the Parliament, the Assembly can enter a little “in red”, if deputies by majority vote agree, ask the Government to make a decision regarding the budget. Otherwise, there is no other way.

I'm just sad as far as it came. Let the situation come, after 25 years of release, bankrupt the state, shut down, don't work.

If we don't have an all-powerful decision on January 1st to continue an 11th of this year's budget, there will be no salaries, pensions, additions of children, no money for any kind of spending, no fuel to put in a [government] car key to light it.

Radio Free Europe: What about emergency cases?

Hakki Shatri: If no solution is found to function an 11th of the budget in January, even the earthquake has, no one dares take anything.

Radio Free Europe: Not for the army or other specific important sectors?

Hakki Shatri: No army, no police, nothing. The budget is the law no one can break.