Pristina’s former leader, Shpend Ahmeti, has criticised the Kosovo Government’s economic policies, saying that rising salaries, pensions and children’s additions cannot be seen divided by the price hikes and difficulties of citizens to cope with the cost of living.
In a response, Ahmeti has said Kosovo is facing a high level of inflation, despite using the euro as currency, while raising concerns about the impact of state policies on the country’s economy.
The challenge is to criticise the rise in salaries, additions for children and pensions. Few people do not enjoy this news. But at the same time, prices are growing and coping with the cost of life every day is becoming more difficult, Ahmeti wrote.
He has said some of the price hikes are due to imported inflation, but has estimated that domestic state policies are also contributing to the situation.
According to Ahmeti, high inflation, in the absence of measures for private sector and capital investments in production, is affecting citizens’ savings and increased state revenues through increased value tax ( VAT.
He has argued that citizens, due to the increase in monthly spending, are being forced to use their savings to cope with basic needs.
Ahmeti has also criticised the way, according to him, additional budget revenues are being spent, saying they are being managed mainly in social aid, addition and wage increases in the public sector, without having to associate with sufficient investments in local production.
According to him, much of these tools are spent on imported products and electricity that Kosovo fails to produce in the necessary amount.
He has warned that lack of local production and increased labour costs, without corresponding productivity growth, could weaken the competitiveness of Kosovo businesses and deepen economic problems.
In short and Albanian terms, this budget and these policies are buying short-term social calm. We are subsidizing imports and raising prices. We are not creating new capital and assets within the state, Ahmeti wrote.
He has stressed that, since Kosovo uses the euro, opportunities to use monetary policies through interest rates are limited, making investing in local production and infrastructure even more important.
Prime Minister, whoever’s advising you for your economy, either you don’t know, or he’s digging your hole. But together, it’s making us a whole Kosovo. These policies are very short term and may look good on the surface. But they’re deeply deadly long-term.
Ahmeti has called on the Government to focus more on creating economic value and implementing capital projects, rather than relying mainly on measures that promote consumption.
It is not enough to introduce projects into the budget, even though they are of insufficient value. It also needs implementation. Consult any books, left or right. It is not the question of reseparation, but of creating the value for having what to reseal, Ahmet added.