Sovereign Fund still awaiting constitutional decision

The government led by Albin Kurti continues to keep the closure of the Kosovo Privatization Agency (KPA) and the establishment of the Sovereign Fund on its agenda. However, this initiative has yet to overcome legal obstacles and is accompanied by uncertainty regarding its practical implementation.

During a meeting held days earlier, Prime Minister Kurti reiterated this position to the director of the KPA, Hekuran Nikqi.

Kurti stated that the law on the Sovereign Fund cannot enter into force because the Constitutional Court has not yet issued a final decision. The law was sent for constitutional review by the Democratic Party of Kosovo (PDK) and the Democratic League of Kosovo (LDK).

Lawyer Faton Fetahu, who legally represents these two political entities, claims that the content of the law conflicts with the Constitution of Kosovo.

“In essence, it is a matter of protecting the constitutional order and defining the rules on which Kosovo’s economy should function. In our request, we have argued that 11 articles of this law are in violation of at least seven articles of the Constitution. We have supported these claims with concrete legal and economic arguments, which we expect the Court to examine in their entirety,” Fetahu stated.

He considered the long waiting period for a decision concerning, as nearly three years have passed since the matter was filed.

“We understand that the Constitutional Court has its independence in determining the pace of reviewing cases, but the importance of this matter requires that a decision be made without further delays,” Fetahu emphasized.

Televizioni Tëvë1 reached out to the Constitutional Court with questions regarding this case, but had not received a response by the time of publication.

Doubts from economists and business about the project’s implementation

Beyond the constitutional dispute, the possibility of dissolving the KPA remains debatable, as does the impact the Sovereign Fund could have on the management of public enterprises.

Economist Fidan Qerimi says the Government cannot unilaterally close the KPA. According to him, the Sovereign Fund has been an objective of Kurti’s since the beginning of his governance, but he does not believe this initiative will be implemented.

“The Government is not in a position to dissolve the KPA. The creation of this Fund has been on the table since the start of Mr. Kurti’s governance, but it has not happened and I do not believe it will happen. It is a promise and a desire of his, but in practical terms I do not think it will be realized. Even if it is realized, it will only complicate decision-making and the management of public enterprises and economic processes. It is a step toward greater bureaucracy,” Qerimi said.

Kushtrim Ahmeti from the Chamber of Commerce and Industry is also skeptical about the realization of this goal. He points to legal ties and still unresolved problems that, according to him, make the closure of the Agency difficult.

“I very much doubt that the KPA can be dissolved, because it is linked to Resolution 1244 and, as long as that remains in force, it is quite problematic. The KPA also needs to function because of old debts,” Ahmeti stated.

Ahmeti also raised questions about the functioning of the Sovereign Fund under current circumstances, casting doubt on whether its creation would improve the management of public enterprises.

According to him, these enterprises continue to face management difficulties, while post-war governments have failed to build a sustainable solution for their operation.

Enterprises that would fall under the Sovereign Fund

The Sovereign Fund has been envisioned as a structure with an investment and developmental function, which would take over the management of commercial public enterprises. This list includes Trepça, KEK, Posta, Telekom, Infrakos, and Trainkos.

The project also foresees the inclusion of assets with developmental potential currently under the administration of the Kosovo Privatization Agency.

Until the Constitutional Court issues its final decision, both the fate of the law and the progress of the Sovereign Fund project remain uncertain. Legal objections and expert doubts leave open the question of whether the Kurti Government’s promise will be fulfilled or not.