Kurti returns the draft law on price ceilings, businesses warn of consequences for the economy

Kosovo Prime Minister Albin Kurti announced that he will bring the draft law on price ceilings back for a vote in the Kosovo Assembly, with the aim of protecting citizens "from abuse with high prices."

Speaking about the global crisis and its impact on price increases, Kurti underlined that some traders and large businesses have misused the situation to artificially increase prices, while the government has helped each social category.

The Prime Minister called on the opposition to support the draft law, emphasizing the need for a rapid response to economic challenges and global crises.

Representatives of businesses and economic organizations in Kosovo have reacted to Kurti's warning, saying that the solution to high prices cannot be artificial control, but policies that stimulate competition, reduce operating costs, local production, and economic stability.

The President of the Kosovo Business Alliance, Agim Shahini, in a statement for "Front Online", commented on Prime Minister Albin Kurti's statement on returning to the vote the draft law on setting ceiling prices, which aims to protect citizens from price increases.

Shahini said that setting ceiling prices cannot be done through government decisions without the existence of an independent regulator.

According to him, such interventions are justifiable only in exceptional circumstances.

"Price ceilings cannot be set by government decisions without an independent regulator. In exceptional cases, the government has the right to make such decisions for some essential products, as long as the situation is normal and not extraordinary. It is unconstitutional and violates the market economy and competition," he said.

Shahini says prices are rising and inflation remains dominant.

He added that Kosovo's economy remains sensitive to global developments.

"Competition, free economy is guaranteed in Kosovo and should not conflict with the Constitution if such a proposal comes to the Assembly for a vote. Inflation is around 6%, economic growth is 3.5%, all this shows that in Kosovo prices are moving, inflation is rising, poverty may increase, economic activity may be limited due to global markets because Kosovo depends on imports," Shahini declared.

The President of the "Consumer" Organization, Selatin Kaçaniku, has criticized institutions regarding the several years of failure to consolidate the market in Kosovo.

According to Kaçanik, he has asked the country's prime ministers to take concrete steps to regulate the market, but without success.

He states that the greatest consequences are being borne by citizens.

Kaçanik also raised concerns about the increasing dependence on loans and overdrafts.

"In 20 years, I have been pleading with the prime ministers of Kosovo to consolidate the market. If this were the case, the market would prove to be a regulator of price and supply, since we do not have this, they are suffering because we do not have a market. Citizens are being harmed by high prices, pensioners do not even have enough money for medicine, and families on social assistance are in a difficult situation. Citizens are living on loans and overdrafts, spending their salaries before they even receive them," Kaçanik declared for "Front Online".

The Director of the Kosovo Chamber of Commerce and Industry, Kushtrim Ahmeti, spoke to "Front Online" regarding the institutions' approach to market interventions, saying that practices for setting ceiling prices are already being applied indirectly, especially in the fuel sector.

"The fact is that the laws on ceiling prices are being applied, because if you look at the setting of ceiling prices for fuels, despite the fact that there is no law, they are continuing with the same logic. This is having a worse effect, because if you look at it, there is no competition in fuels because everyone is keeping the price higher. In a way, the Government has stimulated businesses in the fuels sector to keep the price high so that there is no competition," said Ahmeti.

He warned that such interventions are harming the functioning of the free economy and creating distortions in the market.

"To make matters worse, the Government is discussing creating an authority to set prices for other essential products that would be under the umbrella of the Assembly. Initially, it was under the umbrella of the Government, but it turned out to be unconstitutional and now they want to make it under the umbrella of the Assembly," Ahmeti said.

The representative of the Kosovo Business League, Besard Dreshaj, told "Front Online" that the market does not function through imposed restrictions.

He warned that reinstating the price ceiling without an economic analysis and without structured consultation with the private sector could have serious consequences.

"Any administrative intervention in the form of price ceilings must be treated with great care, because the market does not function with imposed restrictions, but with a balance between supply and demand. If this mechanism is reinstated without a full economic analysis and without structured consultation with the private sector, it risks creating serious distortions in the market: reduced supply, increased informality and discouragement of importers and distributors," said Dreshaj.

Dreshaj said that rising prices have directly damaged purchasing power, while the cost of living has increased significantly.

"Citizens have been directly harmed by price increases, because purchasing power has decreased significantly and the cost of living has increased significantly, especially for basic products. Economic stability is not built with restrictions, but with development policies," said Dreshaj.