AmCham’s Statement on Economic Governance and Reform Urgency

Prishtina, April 10, 2026 – The American Chamber of Commerce in Kosovo expresses its deep concern over the continued institutional fragility in the country, marked by a prolonged political crisis and a persistent lack of willingness among political parties to reach consensus on issues of national importance. Following nearly a full year of stalled reforms in 2025, there is a growing risk that 2026 may represent another year of limited reform progress. At a time when Kosovo remains among the least developed economies in Europe, such delays are not merely procedural, they carry a high economic cost.

Weak economic governance, combined with political uncertainty, undermines reform momentum, delays critical structural transformation, and weakens investor confidence. Kosovo cannot afford continued institutional standstill while facing both domestic challenges and external shocks.

In parallel, AmCham is concerned by the Government’s apparent lack of consideration to review the fiscal regime applied to fuel, particularly in light of the ongoing crisis in the Middle East and its impact on global energy supply and prices. Across EU and non-EU countries, governments have adopted measures to cushion the effects of external shocks. The absence of similar policy adjustments in Kosovo risks amplifying cost pressures on businesses, eroding competitiveness, and ultimately burdening consumers.

While these concerns reflect the private sector’s direct exposure to economic pressures, the International Monetary Fund’s recent report on Kosovo emphasizes that political uncertainty has already slowed growth to 3.6 percent in 2025, increased inflation, and weakened Kosovo’s external position due to higher energy and food imports, with risks still tilted to the downside amid instability and global price volatility. Importantly, the IMF underscores that the year-long political deadlock has delayed essential reforms and hindered progress toward EU convergence.

AmCham emphasizes that institutional functionality and policy predictability are essential to addressing these challenges. Maintaining macroeconomic stability must go hand in hand with accelerating structural reforms, improving competitiveness, and ensuring that policy responses are timely and proportionate to evolving risks.

The American Chamber of Commerce in Kosovo emphasizes that strengthening structured and meaningful public–private dialogue is essential to effective economic governance, enabling more informed policymaking, greater predictability for businesses, and a coordinated response to the country’s pressing economic challenges.

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