AGP Executive Report

Infrastructure: Kosovo and the Saudi Fund for Development inaugurated an upgraded 9.87-kilometre section of the Pristina–Mitrovica highway. The project is expected to improve road safety and connectivity for about 600,000 people. Energy Security: Kosovo is among nine countries joining a new regional oil coordination group to share supply data, identify shortages early and coordinate crisis responses amid global price pressures. Business Expansion: BALFIN Group and Flying Tiger Copenhagen plan to open 87 stores in Romania, Bulgaria and Croatia, building on a partnership expected to reach 20 stores across Kosovo and other Western Balkan markets by year-end. EU Market Access: Former Italian prime minister Enrico Letta urged the EU to give Western Balkan businesses earlier access to the single market, so they can benefit from closer economic ties before membership.

Energy Security: The Energy Community is setting up a regional oil coordination group, with Kosovo and eight other members sharing supply data and assessing risks as global prices rise. Retail Expansion: BALFIN Group and Flying Tiger Copenhagen plan 87 stores in Romania, Bulgaria and Croatia over five years, building on a partnership that is expected to reach 20 stores across Kosovo and other Balkan markets by year-end. EU Market Access: Former Italian Prime Minister Enrico Letta says Western Balkan businesses should gain greater access to the EU single market before their countries join, so firms can benefit while membership reforms continue. Telecoms: Kosovo has launched mobile number portability, giving subscribers the option to switch providers while keeping their number.

Energy Security: Kosovo is among nine Energy Community members joining a new regional oil coordination group to share supply data, track emergency stocks and spot shortages amid global market disruption. Retail Expansion: BALFIN Group is taking its Flying Tiger Copenhagen partnership into Romania, Bulgaria and Croatia, with 87 stores planned over five years, building on its existing operations in Kosovo and other Balkan markets. EU Market Access: Former Italian Prime Minister Enrico Letta urged the EU to open its single market further to Western Balkan countries before membership, giving businesses earlier access to closer economic ties. Telecom Competition: Kosovo has launched mobile number portability, allowing customers to keep their numbers when switching providers and potentially sharpening competition among operators.

EU Integration: Enlargement Commissioner Marta Kos said Kosovo’s amendments to the law governing the Hague-based Specialist Chambers breach its EU commitments and could hinder its path to membership. Single Market: Former Italian Prime Minister Enrico Letta urged the EU to give Western Balkan businesses earlier access to its market, so they can benefit from closer economic ties before full membership. Telecoms: Kosovo has launched mobile number portability, giving customers the option to switch providers while keeping their numbers. Mining: More than 60 miners were reported trapped underground at Trepča, putting the spotlight on safety at one of Kosovo’s key industrial sites.

EU Market Access: Former Italian Prime Minister Enrico Letta called for Western Balkan businesses to gain earlier access to the EU single market, arguing that closer economic ties should bring benefits before full membership. US Economic Engagement: Visiting the region, Senator Jeanne Shaheen urged Washington to expand market access, remove trade barriers and support businesses and entrepreneurs. Telecoms: Kosovo has launched mobile number portability, a new development for the country’s telecom market.

EU Market Access: Former Italian Prime Minister Enrico Letta urged the EU to open its single market to Western Balkan countries before they join, arguing businesses should benefit from closer ties during the accession process. Political Stability: Kosovo elected Justina Shiroka-Pula president, averting a snap election and ending a prolonged institutional deadlock. Mining: More than 60 miners were reported trapped underground at Trepça, putting the spotlight on safety at one of Kosovo’s key industrial sites. Telecoms: Kosovo launched mobile number portability, allowing customers to switch providers without changing their numbers. Regional Connectivity: Kosovo took part in talks on Corridor VIII, a transport and energy route linking the Adriatic and Black seas, with participants focusing on economic connectivity and infrastructure.

EU Market Access: Former Italian Prime Minister Enrico Letta urged the EU to open its single market to Western Balkan countries before they become members, arguing businesses should feel the benefits of closer ties during accession talks. Telecom Competition: Kosovo launched mobile number portability on October 5, allowing customers to switch providers without changing numbers. The regulator says the service should strengthen competition and improve standards. Regional Connectivity: Kosovo joined Corridor VIII talks in Sofia on transport, energy and economic links between the Adriatic and Black seas. Political Stability: Economist Justina Shiroka-Pula was elected president with 81 votes, averting a snap election and offering a chance to restore stability after a prolonged deadlock.

EU Market Access: Former Italian Prime Minister Enrico Letta called for Western Balkan businesses to gain access to the EU Single Market before membership, arguing early integration would deliver practical benefits and help economies prepare for accession. Telecoms: Kosovo’s number-portability service is now live, allowing customers to switch providers without changing numbers. The regulator says it aims to boost competition and service standards. Regional Trade: A Pristina forum highlighted closer EU market links and regional trade measures, including green lanes, but participants said investment, stronger production and reform delivery are also needed to narrow the gap with the EU. Political Stability: Kosovo’s election of Justina Shiroka-Pula as president averted another snap election, ending a prolonged institutional deadlock and offering a more stable backdrop for economic decisions.

US Economic Ties: Senator Jeanne Shaheen said Washington should back economic opportunity, stability and democratic institutions in the Western Balkans. She is due to visit Kosovo on Monday, with trade access and support for businesses among her priorities. Mobile Market: Kosovo’s number-portability service is now live, letting customers switch providers without changing numbers — a move designed to boost competition and service standards. Mining: An electrical failure trapped 63 second-shift miners at Trepča; officials said they were safe as evacuation efforts began. Political Stability: Justina Shiroka-Pula’s election as president averted another snap vote after a prolonged deadlock, easing pressure on Kosovo’s institutions. EU Market Access: At a Pristina forum, participants said closer ties to the EU Single Market could support growth, but Kosovo and its neighbours also need investment, stronger production and effective reforms.

EU Single Market: Enrico Letta says momentum has picked up in 2026, with the EU considering earlier access for candidate countries to selected policies. Western Balkan leaders say integration could boost growth, but trade links alone won’t close the gap: investment, stronger production and effective reforms are also needed. Regional Connectivity: Kosovo joined discussions on Corridor VIII, a planned Adriatic-to-Black Sea route linking transport and energy networks. Better connections could support trade and investment across the region. Telecom Competition: Kosovo’s number-portability service is now live, letting customers switch providers without changing numbers. The regulator says it aims to strengthen competition and improve service. Institutional Stability: Justina Shiroka-Pula’s election as president averted another snap vote after a long political deadlock, giving Kosovo’s institutions a chance to resume work on reforms and closer EU integration.

Regional Connectivity: Kosovo joined talks at a Sofia conference on Corridor VIII, where officials framed transport and energy links as drivers of economic opportunity and European security. The route connects the Adriatic and Black seas through Albania, North Macedonia and Bulgaria. Political Stability: Justina Shiroka-Pula’s election as president averted another snap vote after more than 19 months of deadlock, giving Kosovo a chance to restore institutional stability. Telecom Competition: Kosovo’s number-portability service is now live, allowing customers to change mobile providers without changing numbers. Regulator ARKEP says it will monitor the rollout as a boost to competition and service standards. EU Market Access: At a forum in Pristina, participants said closer ties to the EU Single Market could support growth, but Kosovo and its neighbours also need investment, stronger production and institutions able to carry out reforms. Mining Safety: Sixty-three Trepča miners were trapped underground after an electrical fault; officials said they were in good health as evacuation efforts began.

EU Market Access: Western Balkan leaders and business representatives in Pristina said closer access to the EU Single Market could boost growth, but the region also needs investment, stronger productive capacity and reforms that are actually implemented. Political Stability: Economist Justina Shiroka Pula was sworn in as Kosovo’s president after winning 81 votes, averting another snap election after months of deadlock. Mining: An electrical fault trapped 63 Trepča miners underground; officials said they were in good health as evacuation efforts began. Energy Security: Regional data show Kosovo has neither strategic fuel reserves nor a legal framework for them. Business Governance: Former Mabetex director Valon Lluka was detained for 48 hours on suspicion of fraud and other economic offences; the investigation is ongoing, and he has not been convicted.

Corporate Scrutiny: Valon Lluka, a former Mabetex Holding director, was detained for 48 hours on suspicion of fraud, misuse of property and abuse of economic authority. The allegations are under investigation; he has not been convicted. Mining and Energy: An electrical fault trapped 63 second-shift workers inside Trepča mine. Kosovo’s economy minister said they were in good health, with evacuation underway. Political Stability and EU Path: Justina Shiroka-Pula’s election averted another snap poll. The EU welcomed the vote but criticized changes to the Specialist Chambers law and urged Kosovo to advance Growth Plan reforms and integration into the single market. Energy Security: Kosovo has neither strategic fuel stocks nor laws governing them, according to regional data—an exposure highlighted by recent supply shocks.

Political Stability: Kosovo’s parliament elected economist Justina Shiroka Pula president just before the deadline, averting another snap election after more than 19 months of deadlock. The deal offers a reprieve from uncertainty, though it was tied to changes affecting the Hague-based war crimes court. Retail Investment: JYSK plans to take direct control of its Kosovo, Albania and North Macedonia operations from January 2027, subject to regulatory approval. The three markets have 25 stores, and the retailer says it sees room to expand. EU Market Access: At a forum in Pristina, former Italian prime minister Enrico Letta urged the EU to make Single Market access a flagship of enlargement, potentially bringing candidate countries closer to the free movement of goods, services, people and capital before membership.

Kosovo Politics: Kosovo’s parliament elected economist Justina Shiroka Pula as president in the early hours of Oct 7, narrowly avoiding snap elections after a last-minute deal between Vetevendosje and the opposition PDK tied to changes limiting the Kosovo Specialist Chambers’ powers. EU Enlargement & Business Climate: The European Commission floated a “gradual integration” approach for candidate countries and new safeguards, aiming to make expansion more acceptable while keeping reforms on track—an important signal for regional investment planning. Retail Expansion: JYSK will buy out its Kosovo, Albania and North Macedonia franchise operations, bringing 25 stores into its own organization from Jan 1, 2027 (pending approvals). Energy Poverty: OECD data show energy poverty is severe in the region, with Kosovo around 40% and Albania 38% of households unable to keep homes warm—raising pressure on social and energy policies. Labour Mobility: Israel will stop private recruitment of construction workers from India and Sri Lanka from Jan 1, 2027, while keeping Kosovo on its approved list. Green Transition Focus: A Civil Society Forum session in Pristina stressed that the Western Balkans’ next energy-transition phase needs implementation and accountability, not just new targets.

Kosovo Growth Outlook: The World Bank expects Kosovo to grow fastest in the Western Balkans, while Albania’s economy is forecast to slow to 3.4% this year as higher energy prices and uncertainty weigh on the region. Energy Poverty: OECD data show energy poverty remains severe in the region, with around 40% of Kosovo households and 38% in Albania unable to keep homes warm; Albania also faces utility-bill pressure, prompting a social protection strategy through 2030. Jobs & Migration: Germany plans to cut its work-visa quota for Western Balkans hiring in half from 50,000 to 25,000 starting 2027, raising concerns for construction and infrastructure staffing. Foreign Recruitment Rules: Israel will stop private recruitment of Sri Lankan and Indian construction workers from Jan. 1, 2027, while keeping Kosovo on an approved list of countries for private recruitment. Business Digital Shift (Albania): Albania’s online commerce keeps climbing, with 26% of businesses selling online in 2025—second in the Western Balkans—while Kosovo lags at 13%. Regional Integration & Civil Society: Pristina hosted the Western Balkans Civil Society and Think Tank Forum under the Berlin Process, focused on turning “promises” into policy recommendations. Tourism Access: Saudi Arabia expanded its streamlined tourist visa programme to citizens of Kosovo, allowing online or on-arrival visas for tourism, events and Umrah.