Economists: Public enterprises more trouble than input to the state

Kosovo Government has announced that public enterprises will soon be transferred to the Sovereign Fund of Kosovo. This, according to them, would increase the possibility of investments. However, economy experts estimate that public enterprises are more of a burden than contributors to the state.

Transferring public enterprises to the Sovereign Fund would be a worrying experiment for the country's economy.

Speaking to Radio Kosova, economy expert Safet Gërxhaliu estimates that more external than local experts were involved in the drafting of the Sovereign Fund, a fact that, according to him, shows they do not know Kosovo's economic parameters well.

"Through the sovereign fund, Pandora's box will be opened in terms of public enterprises, in particular, Trepça, and today, public enterprises are much more a burden to the state than contributors to the state. Therefore, in this regard, I believe that such an experiment will be quite disturbing. Do you see the negative effects, do you see what is happening in KEK, Trepçë, KOSTT, and many other companies?! Depoliticization is the main way and not centralization. There can be no positive development with leftist policies", considers Gërxhaliu.

According to the government's plans, the Sovereign Fund will be an independent fund, which will not give responsibility to either the Assembly or the Government. This situation, according to the representative of businesses, Agim Shahini, brings us to an unfavorable position.

"Because they don't give any responsibility except to themselves and they can't create strategies about which enterprises and how the funds should be distributed among the enterprises. According to this law, public enterprises will not receive all of the Sovereign Fund, but some of them. And this tells us that it will be a fund, which will determine which angle to take, whom to develop and whom to finance, and here I think it should be an intervention in management, classification, and responsibility", he said.

Otherwise, in the announcement of the Government of Kosovo, it is stated that public enterprises along with 24 thousand other assets will be transferred from the Government to the Sovereign Fund, which according to them, will increase the possibility of investments and improve their management even more.

On May 7, a conference was held for the establishment of the Sovereign Fund. And according to the Government, the public consultations have already ended and will soon be approved by the Government.

"The Sovereign Fund is the largest economic project ever in the country," the announcement states.