Kosovo risks losing 200 million euros from its agreements with the European Union and the World Bank due to failed attempts to form a government and the possibility of holding early elections without ratifying international agreements, the newspaper "Koha Ditore" reported, BTA reported.
The country fell into a political crisis after the parliamentary elections on February 9, 2025, as none of the parties has a majority of 61 votes in the 120-seat parliament. After a long institutional blockade, the second and final attempt to form a government failed yesterday, after which the country must go to early parliamentary elections. According to the Kosovo constitution, the country's president must schedule elections, which must be organized within 40 days of their announcement.
GAP Institute Director Blendi Hasaj said that due to the delay in starting the absorption of loans under international agreements, there is a serious risk that Kosovo will lose them, especially if there is a delay in the formation of Kosovo's institutions and after the early elections, which may be held in December.
According to Hasaj, without the ratification of the agreements with the EU under the Growth Plan, the payment of the first installment for the measures under this agreement is impossible. He stressed that this is "a loss of an important opportunity to restore the trust of the European Union and citizens in the commitment of the country's institutions to the European integration process".
Kosovo is also expected to start 2026 without an approved budget, notes "Koha Ditore". However, if early parliamentary elections are held in December, the Public Finance Management Act may extend the validity of this year's budget for the first two months of the new fiscal year.
The extension can only take place after approval by parliament. Economics professor Berim Ramosaj stressed that parliament could avoid financial and economic collapse.
It is now up to Kosovo President Vjosa Osmani whether to ask MPs to approve an extension of the budget for the first three months of next year before dissolving parliament, notes "Koha Ditore".
Today before noon, Osmani is expected to meet with the leaders of political forces in Kosovo.
If the country's new institutions are not established by March, the state treasury will be blocked, which will jeopardize the salaries of civil servants, pensions of retirees, child benefits, social assistance, the supply of medicines and the functioning of law and security agencies, the newspaper also writes.