The municipalities in the financial collapse: More than 344m euros lost and another 20 million at risk of failing to implement the GEK decision

Ibrahimi points out that the existing burden is being added to a new cost of 1550m euros, as a result of failure to comply with the Constitutional Court's decision by the Finance Ministry to supplement the work experience (0.5% instead of 0.25%) for the 192022025 years.

Besides the fact that Kosovo municipalities have already been taken over 344m euros through judicial decisions in the period 20225026 (where the overwhelming majority is linked to collective contract), and only in the first months of 2026 have some 55m euros been executed, the financial situation is becoming worse off with a new burden of 1550m euros. This additional burden comes from failing to implement the Constitutional Court of the Republic of Kosovo's decision on the part of the Minister of Iron Murati and the Ministry of Finance, concerning the estimate of additional work experience (0.5% instead of 0.25%) for the period 20232025251>, Ibrahim told Periskopi.

He estimates that municipalities are facing triple financial pressure, which is negatively affecting budgets and capital investments, while responsibility for the situation, according to him, belongs to the central level. Ibrahim requires urgent intervention by the Government of Kosovo to assume financial responsibility and to fully implement the Constitutional Court's decision.

“This means that municipalities are facing triple financial pressure: • from the execution of judicial decisions for the collective contract; • from the negative impact on municipal budgets and capital investments; • and now from an additional obligation stemming from the failure to implement a constitutional binding decision. The Constitutional Court's decisions are final and binding for all institutions. Their failure to comply not only violates constitutional order but produces direct financial consequences that in this case are being carried unjustly to municipalities. It is important to note that municipalities have had no role in creating this” situation, he added.

Whether the wage policies and the implementation of constitutional decisions are exclusive central responsibility. In practice, however, bills are being paid from municipal budgets, seriously jeopardising the normal functioning of local government and providing services for citizens. In this context, an urgent intervention by the Government of Kosovo is required to take full financial responsibility for these obligations and ensure full implementation of the Constitutional Court's decision, so that municipalities are not penalised for a failure not entitled to”.