American Chamber of Commerce: The law clearly limits the scope of the current government’s authority

The American Chamber of Commerce in Kosovo has expressed concern over the decision of the current Government to proceed in the Assembly with the review of the Draft Law on the 2026 Budget, at a time when Kosovo still does not have a new government following the February 9 elections, noting that the applicable legislation limits the powers of the caretaker government, Koha reports.

According to the Chamber’s statement, as an institution that has for more than two decades advocated for a more favorable business environment, the American Chamber emphasizes that decisions with a direct impact on fiscal and economic policy should be made by a government with a full mandate and democratic legitimacy.

“The applicable legislation limits the scope of action of the acting government, allowing only necessary activities and the fulfillment of the technical obligation of presenting the draft budget, but not the approval or introduction of new fiscal measures that create long-term commitments,” the statement reads.

Regarding the decision of the current Government to raise the minimum wage from 350 to 500 euros, the American Chamber considers this an important goal for improving working conditions and incomes. However, it stressed that every such decision must be based on comprehensive analyses of the labor market, productivity, and the real capacities of the private sector, in order to ensure a balance between employee welfare and business competitiveness.

The Chamber warned that such measures could jeopardize macroeconomic stability, increase the budgetary burden, and deregulate the labor market, creating expectations for higher wages in the private sector and affecting the competitiveness of the economy. It also noted that these measures could limit the fiscal space available for capital investments and development policies essential for Kosovo’s sustainable economic growth.

The American Chamber of Commerce called for full respect of constitutional and legal principles, emphasizing that every decision of the current government must be taken strictly within legal limits and in accordance with its status as a caretaker administration.

“Any deviation from these principles endangers not only the formal validity of adopted acts but also public trust in institutions and the constitutional stability of the country,” the statement continued.

The American Chamber of Commerce reiterated that institutional stability, good governance, and democratic legitimacy are prerequisites for a strong, sustainable, and competitive economy.