The prolonged institutional crisis is heightening concerns about its potential impact on both economic development and the regular functioning of the state.
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Experts say that the lack of fully established institutions is worsening the investment climate, increasing uncertainty among businesses and potentially preventing Kosovo from benefiting from important European Union funds earmarked for reforms and development.
Although the absence of frequent changes to rules may provide the private sector with a greater degree of legal stability, major delays are being recorded in public projects, infrastructure investments and strategically important reforms.
The continuation of the deadlock is also creating a vacuum in state activity, weakening democratic oversight and increasing security risks.
According to experts, only stable and fully functional institutions can guarantee long-term economic development, attract investment capital and strengthen the state.
Economic expert Jakup Bellaqa told “Bota sot” that the failure of Kosovo’s full institutions to function is having serious consequences for the economy.
Bellaqa explains that the lack of fully established institutions produces not only political but also economic consequences. According to him, political instability is transferred directly to the economy, damaging the conditions for doing business and macroeconomic and macro-fiscal indicators, while also driving foreign investors away from strategic sectors.
He stresses that this situation harms economic growth, social welfare and citizens’ standard of living.
According to Bellaqa, institutions that are not functional cannot achieve maximum efficiency, while the consequences of this shortcoming are directly reflected in economic development and the well-being of the population.
The expert also warns that Kosovo risks losing an important financing opportunity from the European Union.
He says the country may fail to use European Union loans worth more than 800 million euros, earmarked for the Growth Plan. These funds have been designated for structural reforms in the economy and public administration.
Bellaqa emphasizes that Kosovo’s economic integration remains difficult as long as the country lacks full and stable institutions.
According to him, without institutional stability, the economy cannot be properly integrated into the regional and European markets. International investors avoid medium- and long-term agreements because they perceive Kosovo as a country characterized by legal uncertainty and economic instability.
According to Bellaqa, the consequences of the crisis are also visible in the labor market.
He believes that the situation directly affects the growth of Gross Domestic Product and makes the labor market more unstable. Younger generations are particularly affected, as they still lack the preparation necessary to meet the demands of this market.
A different perspective is offered by Korab Rashiti, an Albanian deputy in Bern, Switzerland, who says the consequences of the absence of fully established institutions should be analyzed separately for the private sector and for the functioning of the state.
In a statement to “Bota sot,” Rashiti says he is not necessarily convinced that the private economy is harmed by the lack of fully established institutions. According to him, when Parliament does not continuously pass new laws and regulations, greater legal stability is created. Businesses primarily need predictability, and when the rules do not change every month, entrepreneurs find it easier to invest and make plans.
He adds that economic progress is not determined by the number of laws passed.
Rashiti notes that politics sometimes acts as though economic development depended on the number of legal acts voted on, although, in his view, wealth is created by citizens and businesses, not in the halls of Parliament.
However, he stresses that the picture changes completely when the functioning of the state itself is analyzed.
Rashiti says that the implementation of public projects, infrastructure investments and strategic reforms is impossible without functional institutions. After more than two years of political deadlock, many projects have been postponed, and it is reasonable to expect some of them to face delays lasting several years. According to him, the time lost by politicians is later paid for by the administration and citizens.
Summing up the distinction, he explains that the private sector may benefit from greater legal stability during periods when politicians do not constantly change the rules. Meanwhile, state projects bear the main cost of the institutional deadlock.
Rashiti warns that the risk is not limited to the economy, as it also affects security and the democratic functioning of institutions.
According to him, institutions that operate for a long time at only half capacity create an institutional vacuum. History shows that such spaces do not remain empty, because various actors, whether domestic or external, may increase their influence over society and institutions. For this reason, the normal functioning of the state is essential not to pass as many laws as possible, but to ensure order, security and the rule of law.
In his assessment, the private sector is not necessarily the party suffering the greatest harm from the institutional crisis. The highest price is paid by state projects, security and democratic functioning.
Rashiti also criticizes the political class for allowing the crisis to continue for so long.
He says the economy does not stop even when politicians become stuck. Every morning, businesses resume work, workers report to their jobs, entrepreneurs take on risks and citizens create value, while political representatives continue discussing who will occupy each seat.
According to Rashiti, Kosovo does not lack politics, but governance.
He believes that the country may not have had too little politics in recent years, but rather too much politics and very little governance. States, he says, do not advance through the number of statements or manufactured crises, but thanks to functional institutions and citizens who are allowed to work and build their future.
Referring to current political developments, Rashiti also asks whether this situation may suit the acting Prime Minister.
He notes that, from a political perspective, running the country without a fully functional Parliament and without the continuous oversight of parliamentary committees may be more comfortable than being held accountable every day. Nevertheless, he says, this is precisely where the danger lies: in a serious democracy, those in power should never feel comfortable when institutional oversight is absent. When a government becomes accustomed to ruling without supervision, it is not the opposition that loses, but democracy.
