Kurti returns ceiling prices bill, businesses warn consequences for economy

Kosovo Prime Minister Albin Kurti warned that the ceiling prices bill would bring it back to the Kosovo Assembly for voting, with the aim of protecting citizens “from abuse at the high price of”.

Speaking of the global crisis and its impact on price hikes, Kurti underlined that some major businessmen and businesses have misused the situation to artificially raise prices, while the government has helped each social category.

The prime minister called for the opposition to back the bill, stressing the need for a swift response to economic challenges and global crises.

Representatives of businesses and economic organisations in Kosovo have reacted to this warning of Kurt, saying that the solution to higher prices cannot be artificial control, but policies that stimulate competition, lower operational costs, local production and economic stability.

Kosovo's Alliance of Business Chairman Agim Sahin has been declared against Prime Minister Albin Kurti's statement to return the draft law on setting ceiling prices, aimed at protecting citizens from price hikes.

Sahin said setting ceiling prices cannot be done through government decisions without an independent regulator in existence.

According to him, such interventions are justified only under extraordinary circumstances.

The ceiling prices cannot be set by government decisions without having an independent regulator in extraordinary cases, the government has the right to make certain essential products such as this, since it is normal and it is not extraordinary, and it violates the competitive market economy”, he said.

Sahin says prices are on the rise, and inflation remains dominant.

He added that Kosovo's economy remains sensitive to global developments.

“Free economic competitiveness is guaranteed in Kosovo and should not conflict with the Constitution if such a proposal comes to the polls. The inflation is about 6% economic growth of 3.5% overall, which shows that in Kosovo prices are in the movement of inflation in excess of poverty can increase, economic activity can be limited due to global markets that Kosovo depends on imports”, Sahin said.

Organisation Chairman “Consumator”, Ceatin Kacanik, has criticised institutions over the decades-old failure to consolidate the market in Kosovo.

According to Kacanik, he has called on the country's prime ministers to take concrete steps to regulate the market, but without success.

He says that the biggest consequences are being carried by citizens.

The Kachanic also raised concern about increasing credit dependence and overdrafts.

“In 20 years, I have told Kosovo prime ministers to consolidate the market, if that were the market, they would testify as price and supply regulators because we don't have that, because we don't have a market. Citizens are being damaged at high prices, pensioners aren't enough for drugs either, and welfare families are seriously living on overdraft loans, spending their salaries before taking them”, Kachanic has declared the “Front Online”.

The director of the Chamber of Commerce and Industry in Kosovo, Kuqirim Ahmeti, has spoken of “Front Online” regarding the approach of institutions to market interventions, saying that the practices for setting ceiling prices are already being applied indirectly, especially in the derivative sector.

“Fakt laws are applying to prices on ceilings that if you see the ceiling price of derivatives set, despite the law s'ka, these are continuing with the same logic. This is affecting worse because if you see it there's no competition in derivatives because everyone's keeping the price higher. In a way, the Government, the department of derivatives that held the price high, and not after competition”, Ahmeti said.

He warned that such interventions are damaging the functioning of the free economy and are creating deformities in the market.

Furthermore, the government is discussing making it an authority to set prices and other essential products that would be under the framework of the Assembly, originally was within the Government, but it came up with anti-off constitutional and now they are wanting to do under the framework of the”, Ahmeti said.

Kosovo Business League representative Besard Dresaj has said of “Front Online” that the market does not function through imposed restrictions.

He warned that restoring the ceiling price without an economic analysis and without structured consultation with the private sector could bring serious consequences.

Any administrative intervention in the form of ceiling prices should be treated very carefully, because the market does not function with imposed restrictions, but with balance between supply and demand. If this mechanism returns without full economic analysis and structured consultation with the private sector, it risks creating serious deformities in the market: lowering supply, increasing informality and discouraging importers and distributors”, Dresaj said.

Dress said price hikes have directly damaged purchasing power, while the cost of living has increased significantly.

“Citizens have been directly damaged by price hikes, because purchasing power has been significantly reduced and the cost of living has increased conspicuously, especially for basic products. Economic stability is not built with restrictions, but with development policies”, Dresaj said.