Abraham: institutional blockade is costing local government millions of euros

Ibrahimi for Online Economy stressed that many municipal projects have been blocked due to the lack of international agreements and EU measures, unable to exploit pledged funds for Kosovo.

The malfunction of central institutions has a negative impact on the functioning of local government, problematic is very dimensional, both financial and legislative. Many financial means that are pledged by the EU cannot be absorbed by Kosovo because an international deal is needed, with tens of millions of euros reaching the local level as well. Because of EU measures, many projects at the local level that have been planned cannot be implemented or interrupted. The municipalities are getting numerous financial tools due to the numerous implementation of judicial subjects, in particular the court-breaking procedures involving collective contracts. During these three and a half years, municipalities have been unjustly charged with over 210m euros, where the absolute majority of them have been taken because of the implementation of collective contracts, where municipalities have no single blame on the issue. Hundreds of millions of euros have been unable to translate into capital investments, in subsidies, goods and services due to collective contracts and non-preparation of the central level to solve this problem”, he said.

Ibrahim criticised the lack of central level readiness to solve problems created by collective contracts, which have caused losses of over 210m euros to municipalities.

The central “level could solve this problem, given a budget line covering the cost of the collective contract, but the most painful is that millions of euros go to the owner, and these financial means are for Kosovar taxpayers. We're not against the magistrates, but the central level is deliberately releasing this mistake. As a result, thousands of euros go to the owner. Last year we have had drastic declines in private revenues from property tax, and this is the result of non-preparation of the central level for co-operation with municipalities”, he said.

He demanded that after the institution's establishment, the amendment of local finance laws, property tax and public procurement, which currently pose obstacles to a fair budget gap between the central and the local level.

“We expect that with the framework of the Parliament and Government the immediate amendment of the Law on Finances of Local Power, the Property Taxation Law and the Public Procure Law, because these laws are almost the main obstacles to the fair lack of financial means from the central level towards Kosovo municipalities. The absolute majority of mayors stress that there is inequality in sharing these budgetary means to the municipalities”, he said.