Kosovo’s snap elections loom amid stalemate risking billions in delayed EU funds

As Kosovo prepares for parliamentary elections on 28 December, the young Balkan nation finds itself grappling with a profound political crisis that has paralyzed governance for nearly a year.

Following inconclusive elections in February, Prime Minister Albin Kurti’s Vetëvendosje party (Self-determination) emerged as the largest force but fell short of a majority, unable to secure coalition partners amid deep divisions.

This impasse escalated through months of failed attempts to elect a parliament speaker and form a government, culminating in President Vjosa Osmani’s dissolution of the assembly in November and the calling of snap polls.

Kosovo in crisis: President Osmani dissolves Parliament, triggers snap elections

Highest stakes in recent history

The stakes could hardly be higher. Political analyst Artan Muhaxhiri quoted by Reuters described these elections as the most significant in Kosovo’s recent history, arriving not only after a year of institutional blockade but also mere months before the scheduled election of a new president.

An inconclusive result risks repeating the deadlock, deepening instability in Europe’s newest state. With polls not publicly released in Kosovo, outcomes remain uncertain, yet opposition parties appear resolute in their refusal to ally with Kurti. They accuse him of exacerbating tensions with the ethnic Serb minority in the north, failing to elevate living standards, and eroding Kosovo’s international standing.

Kurti, who first assumed power in 2021 and led the only government to complete a full term since independence, attributes the stalemate to opposition obstruction. Maintaining public optimism, he expresses confidence in securing an outright majority – roughly 500,000 votes. At recent rallies, he has pledged ambitious reforms: salary increases, annual investments of one billion euros in capital projects, and the establishment of a specialized prosecution unit to combat organized crime. In a television interview, he referred to the prospect of a third mandate as “Kurti Three,” signaling his determination to continue his agenda.

Historical context and ongoing challenges

Kosovo’s path to this juncture reflects broader challenges. Declaring independence from Serbia in 2008 with strong U.S. support – following NATO’s 1999 intervention against Serbian forces amid a brutal crackdown on the ethnic Albanian majority, the country of 1.8 million has wrestled with persistent poverty, political volatility, and entrenched organized crime. The year’s paralysis exemplified this fragility: it required 73 parliamentary votes over six months to elect a speaker, a prerequisite for government formation. Even then, Kurti and his ally Glauk Konjufca failed to assemble a majority, prompting the dissolution.

Citizens feel the toll acutely. In Pristina, 79-year-old resident Shaip Gashi as quote by KosovaPress lamented that “the state isn’t effective – everything here needs to change because nothing is functioning.”

Economic toll from deadlock and sanctions

The deadlock has exacted a heavy economic price, exacerbating strains from European Union sanctions imposed in 2023 over perceived escalation of north Kosovo tensions. Although the EU announced in mid-December 2025 that it would fully lift these measures by January’s end – following the inauguration of Serb mayors after October local elections, delays have already frozen approximately 880 million euros in budgetary support and 127 million euros from the World Bank, including funds for health and education. Politicians warn that some allocations risk permanent loss if ratification deadlines pass without a functional parliament, with World Bank tranches expiring as early as February 2026.

Opposition figures, such as Vlora Citaku of the Democratic Party of Kosovo, highlight public desperation, noting struggles with essentials like medicine and electricity bills. Her party campaigns on improving quality of life through enhanced healthcare, education, and wages. Meanwhile, Kurti has welcomed the sanctions’ removal, insisting Kosovo’s actions restored order in the north without compromising rule of law. He points to Serbian involvement in past incidents and criticizes the opposition for blocking key agreements, including the EU Growth Plan and World Bank deals, before parliament’s dissolution.

Tensions in the Serb-majority north remain a flashpoint. Kurti’s government has advanced sovereignty by banning the Serbian dinar and closing parallel institutions financed by Belgrade, measures hailed domestically as asserting state authority but criticized internationally as uncoordinated. The U.S. and EU have urged dialogue, viewing these steps as hurdles to normalization with Serbia—a prerequisite for both nations’ EU aspirations.

Compounding hardships, energy woes surfaced prominently in 2025. In April, the Energy Regulatory Office approved a 16-percent electricity price hike amid protests in Pristina, reflecting rising import costs and domestic production shortfalls from aging coal plants. Businesses later demonstrated against market liberalization, which forced larger firms onto open-market pricing, threatening sharp bill increases. Though temporarily halted by court intervention, these issues underscore Kosovo’s vulnerabilities in one of Europe’s poorest economies.

A chance to break the cycle?

As voters head to polls for the second time this year – many diaspora members returning for holidays, the election offers a chance to break the cycle. A decisive Vetëvendosje victory could empower Kurti to pursue reforms unhindered, while opposition gains might forge an anti-Kurti alliance.

Whatever the result, swift institution-building is essential to unlock vital funds, stabilize finances, and advance European integration. The elections hold particular significance amid a tense geopolitical landscape, as their outcome could influence the fragile dialogue with Serbia, Kosovo’s EU integration aspirations, regional stability in the Western Balkans, and broader dynamics involving major powers like the US, EU, and Russia.

Sources: AntenaM, KosovaPress, Reuters, Balkan Insight

Caption: (L-R) European Council President Antonio Costa, European Commission President Ursula von der Leyen and President of Kosovo Vjosa Osmani Sandiu during the EU-Western Balkans Summit in Brussels, Belgium, 17 December 2025. EU and the Western Balkans leaders meet in Brussels to reaffirm their commitment to strengthening regional cooperation and partnerships. EPA/OLIVIER HOSLET