Whatever the result, swift institution-building is essential to unlock vital funds, stabilize finances, and advance European integration. As Kosovo prepares for parliamentary elections on 28 December, the young Balkan nation finds itself grappling with a profound political crisis that has paralyzed governance for nearly a year.
Kosovo will hold elections on December 28 after a year-long political stalemate that led to the dissolution of parliament and left a 1-billion-euro hole in the small Balkan country’s shaky finances.
Prime Minister Albin Kurti’s Vetevendosje party won the last election in February, but failed to secure a majority or find a willing coalition party after an acrimonious campaign. Many fear a repeat could throw Europe’s newest state into further crisis, just four months before parliament must vote for a new president and as deadlines loom to ratify international loans.
“These elections will be the most important ones in recent Kosovo history because they are coming after one year of deadlock, but also four months before a new president will be elected,” said political analyst Artan Muhaxhiri.
“If Kurti wins again with around 42%, all this deadlock will be repeated, because the gap between Kurti and other parties is huge, unbridgeable.”
Polls are not made public in Kosovo, so there is little sign of how the vote will go.
But it appears unlikely that any of the major opposition parties will be willing to form a government with Kurti, who they say has stoked tensions with Kosovo’s ethnic Serb minority in the north, done little to improve living standards, and tarnished Kosovo’s reputation abroad.
Following inconclusive elections in February, Prime Minister Albin Kurti’s Vetëvendosje party (Self-determination) emerged as the largest force but fell short of a majority, unable to secure coalition partners amid deep divisions.
This impasse escalated through months of failed attempts to elect a parliament speaker and form a government, culminating in President Vjosa Osmani’s dissolution of the assembly in November and the calling of snap polls.
The deadlock has exacted a heavy economic price, exacerbating strains from European Union sanctions imposed in 2023 over perceived escalation of north Kosovo tensions. Although the EU announced in mid-December 2025 that it would fully lift these measures by January’s end – following the inauguration of Serb mayors after October local elections, delays have already frozen approximately 880 million euros in budgetary support and 127 million euros from the World Bank, including funds for health and education. Politicians warn that some allocations risk permanent loss if ratification deadlines pass without a functional parliament, with World Bank tranches expiring as early as February 2026.
Opposition figures, such as Vlora Citaku of the Democratic Party of Kosovo, highlight public desperation, noting struggles with essentials like medicine and electricity bills. Her party campaigns on improving quality of life through enhanced healthcare, education, and wages. Meanwhile, Kurti has welcomed the sanctions’ removal, insisting Kosovo’s actions restored order in the north without compromising rule of law. He points to Serbian involvement in past incidents and criticizes the opposition for blocking key agreements, including the EU Growth Plan and World Bank deals, before parliament’s dissolution.
Tensions in the Serb-majority north remain a flashpoint. Kurti’s government has advanced sovereignty by banning the Serbian dinar and closing parallel institutions financed by Belgrade, measures hailed domestically as asserting state authority but criticized internationally as uncoordinated. The U.S. and EU have urged dialogue, viewing these steps as hurdles to normalization with Serbia—a prerequisite for both nations’ EU aspirations.
Compounding hardships, energy woes surfaced prominently in 2025. In April, the Energy Regulatory Office approved a 16-percent electricity price hike amid protests in Pristina, reflecting rising import costs and domestic production shortfalls from aging coal plants. Businesses later demonstrated against market liberalization, which forced larger firms onto open-market pricing, threatening sharp bill increases. Though temporarily halted by court intervention, these issues underscore Kosovo’s vulnerabilities in one of Europe’s poorest economies.
As voters head to polls for the second time this year – many diaspora members returning for holidays, the election offers a chance to break the cycle. A decisive Vetëvendosje victory could empower Kurti to pursue reforms unhindered, while opposition gains might forge an anti-Kurti alliance.
Whatever the result, swift institution-building is essential to unlock vital funds, stabilize finances, and advance European integration. The elections hold particular significance amid a tense geopolitical landscape, as their outcome could influence the fragile dialogue with Serbia, Kosovo’s EU integration aspirations, regional stability in the Western Balkans, and broader dynamics involving major powers like the US, EU, and Russia.