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AmCham Kosovo

AmCham Kosovo

American Chamber of Commerce in Kosovo

Tel: +383 38 609 013, +383 48 109 900
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Street “Perandori Justiniani”, no. 132, 10000, Prishtina, Republic of Kosovo

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Public wage increase threatens the budgetary stability

Feb, 1919 / Published in AmCham, Press Releases

Public wage increase threatens the budgetary stability

February 5, 2019, Prishtina – The American Chamber of Commerce in Kosovo expresses its concerns regarding the approval of the draft law on wages and increasing budgetary expenses for wages.

AmCham reiterates its position that further growth of wages in the public sector increases differences in wage levels between the public and private sectors which disfavors the private sector which at the same time is the pillar of filling the budget as well as economic development.

AmCham believes that such actions of state institutions, without considering the burden on the private sector, are in contradiction with the discourse of the highest state officials in empowering the private sector and also in attracting investments. Public wage increase directly affects the private enterprises, specifically the fragile sector of manufacturing, as well as in increasing foreign direct investments, due to the fact that the labor force will no longer be promoted as an advantage for Kosovo.

Approving the draft law on wages endangers the financial stability in the country due to the enormous increase of expenses for wages and social schemes, which negatively affects capital investments, and also risks increasing the budgetary deficit.

At the same time, making decisions with long-term effects, while under pressure, and without an all-inclusive dialogue, including here private sector representatives, hinders prospects of stable development of the country.

State institutions, the Government and the Assembly, should refrain from making such decisions, and warnings for other decisions which AmCham considers as intrusive in the private sector, in contradiction with constitutional and legal dispositions, as well as orienting Kosovo in empowering functional market economy.

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