The American Chamber of Commerce in Kosovo has expressed deep concern over what it describes as ongoing institutional fragility in the country, characterized by a “prolonged political crisis and lack of willingness among political parties to reach consensus on issues of national importance.”
According to the Chamber, after nearly a full year of stalled reforms in 2025, there is a real risk that 2026 could also be marked by limited progress in reforms.
“At a time when Kosovo remains among the least developed economies in Europe, such delays are not merely procedural but carry significant economic costs,” the statement said.
The Chamber also described the current governance as weak in economic terms.
“Weak economic governance, combined with political uncertainty, undermines reform momentum, delays structural transformation, and weakens investor confidence. Kosovo cannot afford continued institutional deadlock while facing internal challenges and external pressures.”
It also raised concerns about the government’s lack of consideration in reviewing the fiscal regime on fuels, especially in light of the ongoing crisis in the Middle East and its impact on global energy supply and prices.
“In several EU and non-EU countries, governments have taken measures to mitigate external shocks. The absence of similar policy adjustments in Kosovo risks increasing cost pressures on businesses, harming competitiveness, and raising the burden on consumers.”
Meanwhile, the International Monetary Fund report on Kosovo highlights that political uncertainty has already slowed growth to 3.6% in 2025, increased inflation, and weakened the country’s external position due to rising energy and food imports. Risks remain tilted to the downside amid global price volatility.
The IMF also noted that the year-long political deadlock has delayed key reforms and hindered progress toward European Union alignment.
The American Chamber emphasized that institutional functionality and policy predictability are essential to addressing these challenges.
“Maintaining macroeconomic stability must go hand in hand with accelerating structural reforms and improving competitiveness, ensuring that institutional responses are timely and proportionate to current challenges.”
Finally, the Chamber stressed that strengthening structured public–private dialogue is crucial for effective economic governance, enabling inclusive policymaking, greater predictability for businesses, and a coordinated response to the country’s urgent economic challenges.
