Outgoing Prime Minister and Democratic Party of Kosovo (PDK) leader Hashim Thaci and the head of the Democratic League of Kosovo (LDK) Isa Mustafa "agreed in principle for the creation of an inter-party coalition" which would "create the institutions of the Republic of Kosovo," President Atifete Jahjaga said late yesterday in a press release.
The statement was released after Thaci and Mustafa met in Jahjaga's office in the presence of the US Ambassador to Kosovo, Tracey Ann Jacobson.
It did not say whether Thaci, a former guerrila leader who has headed Kosovo since independence in 2008, or Mustafa would be nominated for the top government position.
The agreement signals a possible end to the political stalemate that blocked Kosovo since snap elections in June, where PDK came first in the ballots but was unable to form a ruling coalition.
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With only 37 seats in the 120-strong parliament Thaci's PDK was unable to form a parliamentary majority that would support him as a prime minister. But with 30 MPs from the LDK, the newly agreed coalition would have a comfortable parliamentary majority.
Following the June 8 elections, four opposition parties, led by the LDK, formed a block aimed at blocking Thaci's third mandate and pledged to form their own coalition.
It is expected that parliament will convene by the end of the week when a vote on the coalition will take place.