Kosovo Holds Second 2025 Election Amid Governance Deadlock and EU Funding Delays

The Republic of Kosovo held its second parliamentary election of 2025 on Sunday, December 28, in an effort to resolve an unprecedented institutional impasse that began after the inconclusive general election on February 9, 2025. The vote took place with polling stations open from 07:00 to 19:00 local time, as 24 political entities vied for the 120 seats in the Assembly. This repeated election followed months of political paralysis that prevented the adoption of the 2026 budget and postponed essential judicial and economic legislation.

The initial February election saw the largest party, the Vetëvendosje (LVV) led by incumbent Prime Minister Albin Kurti, fail to secure the necessary absolute majority of 61 votes to govern alone. This deadlock persisted for over six months, requiring a Constitutional Court ruling to elect Dimalj Baša of Vetëvendosje as Speaker in late August 2025. Following failed government formation attempts, President Vjosa Osmani dissolved the Assembly and called the early election for December 28, 2025.

The economic consequences of the governance vacuum have been significant, exacerbating tensions stemming from European Union sanctions imposed in 2023 due to Prime Minister Kurti's role in escalating tensions with Serbs in northern Kosovo. While the EU announced the complete lifting of these measures by the end of January 2026, following the inauguration of Serb mayors after October's local elections, frozen EU budget support, approximately 880 million euros, remains delayed. Furthermore, 127 million euros in financial aid from the World Bank is on hold, with 90 million euros specifically at risk of termination if not ratified by the Kosovo Assembly before February 13, 2026. The election process itself is estimated to cost the state budget around 30 million euros.

Political factions remain deeply divided on the country's trajectory. Prime Minister Kurti blames the opposition for the stalemate and has committed to significant spending, promising 1 billion euros in annual capital investment. Conversely, center-right parties, including the PDK, LDK, and AAK, led by Bedri Hamza, Lumir Abdixhiku, and Ramush Haradinaj respectively, have criticized Kurti's approach to Western allies and the situation in the north. Political scientist Donika Emini observed that the situation clearly indicates that "the interests of the country and the citizens are secondary to the political elite."

The need for effective governance is underscored by persistent economic challenges, with the official unemployment rate remaining high, though recent data from the Kosovo Agency of Statistics indicated a rate of 10.80% in 2024, with some forecasts suggesting a slight decrease to 10.50% by the end of 2025. A critical constitutional deadline also looms: President Vjosa Osmani’s term concludes in April 2026, necessitating the election of a successor by the Assembly before that date. Constitutional rules require a two-thirds majority (80 votes) in the first two rounds or a simple majority (61 votes) in the third; failure to elect a president would trigger another dissolution of the Assembly and yet another election within 45 days.

The outcome of this December 28 vote is pivotal, determining whether Kosovo can restore state functionality and access crucial international financing before the critical deadlines at the start of 2026. The inability to form a government has already stalled necessary reforms for the EU's Growth Plan, of which Kosovo is a major per capita beneficiary, and led the United States to suspend strategic dialogue in September 2025 over institutional stability concerns.