Kosovo power vacuum risks EU millions

Kosovo faces losing millions in European Union funding as rival political parties fail to form a new government.

More than a month after parliamentary elections, talks between the winning Vetevendosje party and opposition leaders have collapsed.

The deadlock leaves parliament unable to pass key laws required to unlock forty million euros in financial aid.

Officials warn that unspent money could now be diverted to neighbouring Balkan countries instead.

The ongoing power vacuum is also damaging the local economy, with annual inflation rising by six percent.

Experts say the instability is driving away foreign investors and increasing import costs for businesses.