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Political impasse delays reforms and impacts income convergence in Kosovo, highlighting ongoing instability.
Even though a year-long political stalemate ended with the formation of a new government in February, Kosovo could be heading toward another phase of political uncertainty following the parliament’s failure to elect a new national president on March 5. The newly constituted parliament ratified key international financing agreements pending since 2024 and adopted the 2026 budget, averting a government shutdown. The prolonged impasse held back much-needed reforms to accelerate income convergence with the EU.
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International Monetary Fund. Middle East and Central Asia Dept. (2026) studied this question.
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