The American Chamber of Commerce in Kosovo (AmCham) has expressed deep concern over the caretaker Government’s decision to approve and submit to the Assembly the Draft Law on the Budget of Kosovo for the 2026 fiscal year.
According to AmCham, this step was taken at a time when the country still does not have a new government following the February 9 elections.
In its statement, the American Chamber emphasized that as an institution advocating for a more business-friendly environment in Kosovo for over two decades, it believes:
“Decisions with direct impact on the country’s fiscal and economic policies should be made by a government with a full mandate and democratic legitimacy.”
AmCham noted that current legislation clearly restricts the scope of a caretaker government.
“The existing legislation clearly limits the competencies of a caretaker government, allowing it only to perform essential activities and fulfill the technical obligation of presenting a draft budget—but not to approve or initiate new fiscal measures that create long-term obligations for public finances,” the statement said.
Regarding the caretaker Government’s decision to increase the minimum wage from €350 to €500, to be implemented in two phases during 2026, AmCham acknowledged the importance of improving working conditions and income but warned of the need for careful analysis.
“Improving working conditions and income remains an important goal for Kosovo’s sustainable economic and social development. However, any such decision must be based on comprehensive analyses of the labor market, productivity, and the real capacities of the private sector, to ensure a balance between workers’ welfare and business competitiveness.”
The Chamber warned that such decisions could endanger labor market stability and create uncertainty for the business community.
“Such decisions could risk labor market stability and generate uncertainty for the business community.”
AmCham further stated that the approval of new public spending policies at this stage could have serious consequences for the country’s economy.
“Approving new public spending policies at this stage may undermine macroeconomic stability, increase the budgetary burden in the coming years, and disrupt the labor market by raising expectations for higher wages in the private sector—thus affecting overall economic competitiveness.”
The organization also warned that such actions could limit fiscal space for capital investments.
“Such actions also risk limiting the fiscal space for capital investments and development policies, which are essential for Kosovo’s sustainable economic growth. Instead of adopting fiscally impactful decisions, all political forces should focus their efforts on forming a legitimate government that reflects the democratic functioning of Kosovo’s institutions.”
AmCham called for institutional restraint and full respect for constitutional and legal principles, stressing that:
“It is essential that every decision by a caretaker government be fully in line with the legal limitations arising from its status as a caretaker administration, as well as with provisions stipulating that a person cannot simultaneously serve as a Member of Parliament and a member of the Government.”
Finally, AmCham warned that deviation from these principles could have serious consequences.
“Any deviation from this principle would risk not only the formal validity of approved acts but also public trust in institutions and the constitutional stability of the country.”
In conclusion, the American Chamber of Commerce in Kosovo reiterated that:
“Institutional stability, good governance, and respect for democratic legitimacy are prerequisites for a strong, stable, and competitive economy.”
