The prolonged institutional crisis is heightening concerns about its potential impact on both economic development and the regular functioning of the state.

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.

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The continuing institutional crisis is raising concerns about the impact it could have both on economic development and the functioning of the state.

Experts say incomplete institutions are worsening the investment climate, increasing uncertainty among businesses and jeopardizing the use of significant European Union funds earmarked for reforms and development.

Although the private sector may benefit from a more stable legal framework because rules do not change frequently, the deadlock is causing significant delays to public projects, infrastructure investment and strategic reforms.

The prolonged blockade is also creating a vacuum in the functioning of the state, increasing security risks and weakening democratic oversight.

According to experts, the economy cannot develop sustainably, investment cannot be attracted and the state cannot be strengthened without complete and functional institutions.

Economics expert Jakup Bellaqa told “Bota sot” that the absence of fully constituted institutions in Kosovo is having serious consequences for the economy.

According to Bellaqa, the institutional vacuum is producing consequences on both the political and economic fronts. He explains that political instability translates directly into economic instability, harming the business environment and macroeconomic and macrofiscal indicators, while also deterring foreign investors from strategic sectors of the economy.

He says the negative effects of this situation are evident in economic growth, social welfare and citizens’ quality of life.

Bellaqa emphasizes that non-functional institutions cannot achieve the highest level of efficiency, while the consequences of this inability are directly reflected in economic development and the population’s well-being.

The expert also warns that Kosovo could lose access to an important source of European Union funding.

According to him, the country risks being unable to use EU loans worth more than 800 million euros, allocated under the Growth Plan and intended for structural economic reforms and public administration.

Bellaqa stresses that Kosovo’s economic integration becomes more difficult if the country does not have stable, functional and fully constituted institutions.

He says that, under these circumstances, the economy cannot integrate into either the regional or European market. According to him, foreign investors are reluctant to sign medium- and long-term contracts because they view Kosovo as a country marked by economic instability and legal uncertainty.

According to the expert, the consequences also affect the labor market. The current situation has a direct impact on Gross Domestic Product growth and creates instability in employment, particularly for younger generations, who are still not sufficiently prepared for the demands of the labor market, Jakup Bellaqa concludes.

A different perspective is offered by Korab Rashiti, an Albanian lawmaker in Bern, Switzerland. He says that when examining the consequences of the absence of fully constituted institutions, a clear distinction must be made between the private economy and the functioning of the state.

In a statement to “Bota sot,” Rashiti says a measured analysis of the situation requires these two aspects to be considered separately. He is not convinced that the private economy is necessarily harmed by the absence of fully constituted institutions.

According to him, the fact that Parliament is not continuously passing new laws and regulations may provide greater legal stability. Above all, businesses need predictability, and when the rules do not change every month, entrepreneurs find it easier to plan and invest.

Rashiti rejects the idea that economic development is measured by the number of laws passed. He notes that politicians sometimes behave as though the economy depends on the number of measures approved, when in reality wealth is created by citizens and businesses, not in the halls of Parliament.

However, he emphasizes that the picture changes entirely when it comes to the functioning of the state apparatus.

According to Rashiti, public projects, infrastructure investment and strategic reforms cannot be carried out 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. He adds that the cost of time lost in politics is later passed on to the administration and citizens.

Summarizing the distinction, Rashiti says the private sector may benefit from greater legal stability when politicians do not constantly change the rules, while state projects bear the greatest burden of the institutional deadlock.

According to him, the concern is not limited to the economy, as the blockade also affects security and institutional functioning.

Rashiti warns that institutions operating at half capacity for an extended period create an institutional vacuum. He recalls that history shows such vacuums never remain unfilled, because various actors, whether domestic or foreign, may extend their influence over institutions and society.

For this reason, he says, the proper functioning of the state is crucial not for producing as many laws as possible, but for ensuring order, security and the enforcement of the law.

Rashiti also criticizes the political class for allowing the crisis to drag on. He says the economy does not stop when politicians do: businesses open every morning, workers report to their jobs, entrepreneurs take risks and citizens create value, while politicians continue debating who will get each seat.

In his assessment, Kosovo does not lack politics, but governance. Rashiti raises the possibility that the problem over these years has not been too little politics, but too much of it and a lack of governance.

He emphasizes that states do not progress through the number of statements issued or crises manufactured, but through functional institutions and citizens who are enabled to work and build the future.

Commenting on current political developments, Rashiti also raises the question of whether this situation may suit the acting Prime Minister.

According to him, from a political standpoint, it is more comfortable to govern without a fully functional Parliament and without constant scrutiny from parliamentary committees than to be held accountable every day. This, Rashiti says, is precisely where the problem lies, because in a serious democracy, those in power should never feel comfortable when institutional oversight is absent.

Rashiti concludes that when a government becomes accustomed to exercising power without oversight, it is no longer the opposition that loses, but democracy itself.

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Meanwhile, the leader of the winning party, Albin Kurti, has still not begun discussions with political parties on a governing coalition or the issue of the president because, according to him, the certification must first be awaited.

At the same time, the international community is calling for the preservation of institutional stability.

Political analyst Faton Mehmeti commented on these calls from international actors in a statement to “Bota sot.”

According to him, international appeals for stability are important, but in certain cases their influence has been limited because political parties have shown no willingness to reach an agreement.

“Yes, the international community has always called for stability. Through institutions, they have even made appeals in this direction, but I do not believe these calls have had any major impact in this case. What is attributed to Kurti, so to speak, is connected to the behind-the-scenes bargaining among political parties in light of international calls for stability,” he said.

Mehmeti further assesses that the course of the negotiations will be determined by the LDK, which he sees as divided between cooperation with Vetëvendosje and the option of new elections.

He also adds that the LDK could be the very party that makes an agreement with LVV possible.

“Everything will depend on how negotiations with the opposition parties develop, in this case with the LDK. I believe the LDK has a key role in the success or failure of this process. Looking at the current situation within the LDK, it can be said that the party’s official wing, led by Lumir Abdixhiku, is more inclined toward a coalition with Vetëvendosje, both to preserve the party’s internal stability and to avoid the perception that the LDK is obstructing the formation of institutions, given that it is a party that suffered losses in the elections.

Meanwhile, another faction, close to Përparim Rama, does not seem interested in entering a coalition, but rather in going to elections and building an opposition bloc,” the analyst explained.

In the end, he assesses that the chances of an agreement on the president remain small, despite international calls for stability.

According to him, the scenario of snap elections once again cannot be ruled out.

“Therefore, it remains to be seen how the negotiations will proceed. However, I do not see many chances of reaching an agreement or consensus on the issue of the president. I do not want to prejudge matters, but considering the current circumstances, I believe the chances of an agreement are smaller.

The international community has its role in seeking stability, but it is very difficult when the mechanisms and relationships that exist between the ruling parties and the opposition parties are known. These positions do not change easily, and often the sides are inclined to attribute responsibility to the ruling party,” Mehmeti concluded for “Bota sot.”

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