The recent peaceful transition of power following parliamentary and local elections in Kosovo demonstrated the country’s commitment to democratic values, according to Vokshi & Lata Law Firm Partner Urim Vokshi.
"In 2021, parliamentary and local elections were held in Kosovo," Vokshi explains. "In both of these elections, the opposition parties enjoyed significant support, leading to a peaceful transition of power from one government to the other. From the perspective of democracy, these elections demonstrated a positive improvement in the country, especially compared to the other elections held in the region," he says.
According to Vokshi, following the elections, many legislative updates are to be expected. "The new government is planning to implement various reforms," he notes. "Among those, the most challenging one would be the vetting procedure applying to the justice system. However, at this point, despite the ongoing discussions on these laws, we still have to wait and see how will they be framed and modified into more specific proposals."
In terms of other legislative changes, Vokshi highlights the initiative for the Law on the Commercial Court, where he has been part of the working group in Parliament. "The idea of having a Commercial Court is presented with the aim of reducing the timeframe for resolving and settling such cases in court," he says, noting that "the Commercial Court would, ideally, have a major impact not only on local companies but, in particular, on foreign investors – as it will reduce the timeframe for resolving disputes and provide legal security for everyone."
Vokshi says that, overall, in terms of the economy, while COVID-19 has affected many areas of business, it has also created opportunities for companies. "The export sector has been on the rise in Kosovo," he explains. "Interestingly enough, many companies managed to benefit from the pandemic situation. Due to shortages in the supply chain in Europe from Asian and African countries, the companies in Kosovo were able to increase exports to their markets. As a result, for the German market alone, we witnessed a 39% increase in the export of goods. In addition, there is a rise in the number of exported goods to Asia and Africa," he points out.
"Additionally, there are many prospective improvements to expect, as many foreign investors mainly operating in the US and Europe have decided to start their activities here to benefit from the low tax rates," he says. "We see a rise in IT companies moving to Kosovo, due to the highly skilled workforce in the country. In addition, many BPO companies established in Kosovo provide services all over the world, including to Germany, France, the US, etc.," Vokshi adds.
"Other sectors, such as tourism and energy are facing certain problems, similarly to the rest of the world," Vokshi points out. "However, we also see foreign investors showing interest in the renewable energy sector, and we hope this trend will continue even after the crisis is over," he concludes.