The American Chamber of Commerce in Kosovo (AmCham Kosovo) has expressed “deep concern” over the decision by the caretaker government to approve and submit the 2026 national budget to the Assembly, noting that the country still lacks a new government following the February 9 elections.
The caretaker government approved a record €4 billion budget last Friday, despite uncertainties over whether the Assembly could review it amid widespread opposition.
AmCham stated that decisions with a direct impact on fiscal and economic policy should be made by a fully mandated government with democratic legitimacy. The organization emphasized that current legislation limits the scope of a caretaker government, allowing only necessary administrative actions and the technical submission of a draft budget—not the initiation or approval of new fiscal measures that create long-term public financial obligations.
Opposition parties and civil society immediately questioned the legality of the decision, arguing that the caretaker government lacks the competence to propose a budget for approval by the new Assembly.
Prime Minister in caretaker role Albin Kurti, however, defended the decision, insisting that the government is legally allowed to propose the annual budget to the Assembly and called on lawmakers to vote on it.
Concerns About Minimum Wage Increase
AmCham also commented on the caretaker government’s plan to raise the minimum wage from €350 to €500 per month in two phases: €425 in January and €500 in July for full-time workers.
The organization stressed that such decisions should be based on comprehensive analyses of the labor market, productivity, and private sector capacities to maintain a balance between worker welfare and business competitiveness.
“Decisions like this may threaten labor market stability and create uncertainty for the business community,” AmCham said.
It warned that approving new public spending policies at this stage could compromise macroeconomic stability, increase future budget burdens, and disrupt the labor market by raising expectations for higher wages in the private sector, ultimately affecting overall economic competitiveness.
Professor Mejdi Bektashi of the University of Pristina told Radio Free Europe that the caretaker government’s decisions on the new budget, minimum wage, pensions, and benefits could have significant consequences for Kosovo’s financial stability.
“This budget cannot sustain the costs proposed by the government. Failure to cover them will lead to higher taxes or increased contributions that citizens will have to pay to fund the budget or cover these increases,” Bektashi said.
