GAP published the report: In Search of a Solution: Enforcement challenges in municipalities

Today, GAP Institute published the report: “In Search of a Solution: Enforcement challenges in municipalities”.

Municipalities across Kosovo are facing a significant increase in expenditures arising from judicial and enforcement obligations. During the period 2022–2024, municipalities paid over 163 million euros for these obligations. As a result, some of them have been forced to seek financial support from the central government, while others have had to suspend or abandon planned capital investment projects. Enforcement expenditures have increased significantly across all municipalities, regardless of their size, which demonstrates the widespread nature of this problem. Enforcement-related expenditures have increased significantly in all municipalities, regardless of size.

The origin of these liabilities is not limited to the education sector’s collective agreement but extends to similar arrangements in the healthcare sector. Moreover, a 2008 decision by the Government of Kosovo, which stipulates additional compensation for education sector employees based on their qualification level, has further contributed to the pressure. In addition to teachers, civil servants are also receiving court-ordered compensation, particularly related to meal allowances, inflation adjustments, and transportation expenses.

During 2024, a significant number of municipalities had enforcement expenditures that exceeded their own-source revenues or capital investments.

Beyond the executed obligations, municipalities are also facing a continuous and significant increase in new liabilities. At the start of 2025, municipalities reported €208 million in outstanding financial claims filed by citizens and other parties in court. These claims are mostly related to capital investment projects, with expectations that municipalities will be legally required to compensate the plaintiffs.

An integrated and well-coordinated approach between local and central government is crucial for sustainably managing and resolving this crisis. The central government holds primary responsibility for the current situation concerning municipalities’ enforcement obligations related to public sector. Since most of these obligations stem from decisions, contracts, and laws initiated at the central level, GAP Institute recommends that the Government of Kosovo should assume responsibility for executing payments arising from court decisions; the Government should propose amendments to Law on Salaries in the Public Sector to align it with the Constitutional Courts decision regarding work experience and clarify the status of the 2008 Government decision regarding the qualifications of teachers. As well as, for any future laws or decisions that may impose financial burdens on municipalities, they must be fully involved in the negotiation process and content drafting.

Click here to read the full report.