Rafuna: There is a high risk that Kosovo could lose funds from the EU Growth Plan

The President of the Kosovo Chamber of Commerce, Lulzim Rafuna, warned of a high risk of losing funds from the European Union Growth Plan, as a result of the lack of functional institutions due to early elections and delays in implementing reforms.

In an interview with Ekonomia Online, Rafuna said that although Kosovo received 63 million euros through pre-financing from a package of around 880 million euros, the remaining funds remain conditional on the implementation of reforms.

“We have been warned about delays. Kosovo is the only country that recently ratified the agreement on the Growth Plan with the European Union. Around 880 million euros are foreseen. By ratifying the agreement, Kosovo now has 63 million through pre-financing, which has already been executed. However, the remaining funds cannot be obtained without reforms. And the lack of institutions, going to elections, undoubtedly leads to a situation where we cannot make progress and cannot demonstrate that we have progressed in order to receive the remaining funds,” Rafuna said.

He added that due to another round of elections, institutions are not fully functional, which represents a significant risk of losing a substantial portion of the funds.

Rafuna said that the current political situation makes it almost impossible to approve projects and programs necessary for obtaining further funds.

“But now it is too late. There are no parliamentary sessions to provide an opportunity to approve plans, programs, or projects arising from the Growth Plan. Everyone is now focused on the campaign. The campaign should be launched quickly within constitutional deadlines, and institutions of the Republic of Kosovo should be established as soon as possible in order to continue reforms and the disbursement of Growth Plan funds. I truly hope that because of this situation, the European Union will not stop or suspend the financing of Growth Plan funds, but we should not ignore the risk,” Rafuna said.

He added that it is necessary to work diligently and remain in contact with European Union officials in order to ensure that, as much as possible within the current capacities of Kosovo institutions, reforms are implemented and funds are absorbed.

Rafuna also emphasized that Kosovo has imported inflation due to rising energy and fuel prices.

“It is known that about 20 percent of global trade officially passes through the Strait of Hormuz, while unofficially it can reach up to 30 percent. Since we are a country that imports a lot, through imports we have also brought in rising prices and inflation. We are witnessing that the price of petroleum products in our country has increased,” Rafuna pointed out.

He stressed that the increase in energy and oil prices has directly affected rising costs for companies and various sectors of the economy.

“We have long called on and asked the Government of Kosovo to take measures to reduce excise duties or value added tax, but we have not received a response to our request. Now we see the consequences in every sector, especially in agriculture,” Rafuna said.

He added that the Government of Kosovo has done nothing to help vulnerable sectors.