EditKosovo’s political crisis delays EU funding, affecting economy
Institutional deadlock and prolonged uncertainty are delaying European financing and raising concerns over Kosovo’s stability before the 7 June elections
Kosovo is entering a new phase of political uncertainty ahead of snap elections scheduled for 7 June, as the country’s prolonged institutional crisis increasingly affects not only domestic governance but also the implementation of international agreements and access to European funding.
The third elections in a year were called after parliament failed to elect a new president within the constitutional deadline, triggering an early vote amid mounting concern among Kosovo’s international partners over the stability and functionality of the country’s institutions.
Kosovo heads to third election in a year after another failure to elect president
What initially emerged as a dispute over the presidential election process has evolved into a broader institutional deadlock that weakened parliamentary activity, delayed key political decisions and complicated the implementation of agreements linked to the EU’s economic and development agenda in the Western Balkans.
The political paralysis is now producing visible economic consequences.
Besnik Tahiri, a former MP from the Alliance for the Future of Kosovo (AAK), blamed the governing Vetëvendosje movement for the impasse, arguing that the ruling majority failed to secure a consensual political solution and pushed the country into institutional paralysis.
According to Tahiri, opposition parties had supported international agreements without political conditions, while responsibility for the current situation lay with the government’s handling of the crisis.
Naim Jakaj, senior researcher at the Kosovo Law Institute, said the limited functioning of parliament during 2025 caused major delays in procedures linked to the EU Growth Plan and European financial assistance.
According to Jakaj, around €882 million remained effectively blocked at EU level because the absence of a fully functioning government and active parliament prevented the timely activation of the relevant agreements.
Many of the agreements had already been negotiated in 2024, but their ratification was only completed in February 2026, significantly delaying the disbursement of funds and the launch of planned projects.
Concerns are also growing about Kosovo’s capacity to implement agreements that have already been formally approved.
Jakaj noted that the caretaker government operates with limited executive powers, complicating the implementation of international commitments and the management of large-scale European funds.
Additional concerns stem from the absence of updated fiscal planning for 2026. International agreements require stronger administrative structures and additional specialised staff, but such provisions were not fully integrated into the state budget, which was approved through accelerated procedures during the political crisis.
On 10 April 2026, Kosovo’s parliament ratified four major international agreements worth several hundred million euros.
The agreements include cooperation with the International Development Association, the French Development Agency and the German government, focusing on financing for the financial sector, energy reforms and transport infrastructure projects connected to the Western Balkans.
Finance Minister Hekuran Murati said the agreement with the French Development Agency amounted to €80 million, while a similar level of financing was allocated for energy and climate reforms through cooperation with Germany.
At the same time, the “Western Balkans Trade and Transport Facilitation 2.0” programme foresees €35 million in loans and an additional €12 million in grants.
Despite parliamentary ratification, implementation still depends on the formation of a stable government and the restoration of fully functioning institutions.
European diplomatic and economic circles are monitoring developments closely, amid concerns that prolonged political instability could affect both the pace of reforms and Kosovo’s broader economic trajectory.
Vjosa Osmani returns to the Democratic League of Kosovo
The 7 June vote is expected to reshape not only the next government, but also the broader political balance inside Kosovo.
The Central Election Commission announced that 22 political parties and three electoral coalitions will participate in the elections, while nine political formations opted not to run independently, reflecting continuing realignment within Kosovo’s fragmented political landscape.
Particular attention has focused on the return of former president Vjosa Osmani to the Democratic League of Kosovo (LDK).
The party’s General Council approved a proposal by Lumir Abdixhiku for a joint electoral platform, with Abdixhiku as prime ministerial candidate and Osmani leading the electoral list while also being proposed for the presidency.
The move is regarded as one of the most significant political developments before the elections.
Osmani had distanced herself from the LDK following internal disputes in previous years before aligning with Prime Minister Albin Kurti and Vetëvendosje in 2021. Her return to the LDK is widely interpreted as an attempt to consolidate Kosovo’s traditional centre-right and pro-European political camp.
Abdixhiku has presented the alliance with Osmani as an effort aimed at political reunification and institutional stability, arguing that Kosovo needs a restoration of political balance and more consensual governance after years of polarisation.
Meanwhile, Kurti and Vetëvendosje are seeking to preserve the political momentum they built in recent years.
Kurti claimed his party could approach 60% support in the elections, insisting that public backing for the government remains strong despite the crisis that triggered the snap vote.
He accused the opposition of institutional obstruction and argued that some political forces were attempting to use the presidential crisis to reshape the country’s political balance.
Kurti also left open the possibility of post-election cooperation aimed at electing a non-partisan president outside the existing party framework, a position interpreted as an effort to avoid a repeat of the current institutional deadlock.
At the same time, opposition forces are attempting to strengthen their position through broader political alliances.
The Democratic Party of Kosovo (PDK) appears to be attracting smaller political formations, as both Fatmir Limaj’s Social Democratic Initiative and the New Kosovo Alliance have expressed readiness for cooperation or participation on PDK electoral lists.
The full article in Greek by EUalive’s partner IBNA can be found here.
Caption: Acting Prime Minister of Kosovo and leader of Vetevendosje party Albin Kurti casts his ballot at a polling station in Pristina, Kosovo, 28 December 2025. Citizens are voting in snap parliamentary elections called to break a months-long political stalemate after the previous elections in February 2025 failed to produce a governing coalition. EPA/GEORGI LICOVSKI
Updated: May 11, 2026 - 05:16
