The International Monetary Fund praised Kosovo's new prime minister on Monday for defying a strike threat and sticking to plans for steep public sector pay hikes.

Prime Minister Isa Mustafa, who took power two weeks ago, has vetoed a pledge by his predecessor to raise public sector salaries by 25 percent annually for the next four years, following a similar raise this year.

Trade unions in Kosovo threatened on Friday to go out on strike after the impoverished Balkan country's new prime minister vetoed annual 25-percent public sector pay hikes promised by his predecessor.

By Karolos Grohmann

BERLIN Wed Oct 22, 2014 5:25pm EDT

(Reuters) - Kosovo is on track to take part in its first ever Olympic Games in Rio de Janeiro in 2016 after the region in the Balkans was granted provisional recognition by the International Olympic Committee on Wednesday.

It could now achieve full membership as early as the IOC session in December, the IOC said in a statement on Wednesday.

The decision angered Serbia's Olympic Committee which has lodged an official protest with the Olympic body.

BY FATOS BYTYCI

Lawmakers in Kosovo will vote in a new government on Monday led by former Pristina mayor Isa Mustafa, with outgoing Prime Minister Hashim Thaci becoming foreign minister, a senior aide to Thaci said.

The deal ends six months of wrangling between Kosovo's two biggest parties, Mustafa's Democratic League of Kosovo (LDK) and Thaci's Democratic Party of Kosovo (PDK), since an inconclusive election in the young Balkan state.

Thu, Nov 20 2014

By Fatos Bytyci

PRISTINA (Reuters) - A former minister-in-exile during Kosovo's 1990srebellion against Serbian rule is poised to become the state's next prime minister, a senior party ally said on Thursday.

It comes after the United States helped broker a deal to end more than five months of political deadlock.

"The only name that LDK (Democratic League of Kosovo) has nominated is Isa Mustafa," Lutfi Haziri, a senior LDK official, told Reuters.

By Fatos Bytyci

PRISTINA (Reuters) - Kosovo's two biggest parties agreed "in principle" on Wednesday to form a government, the Balkan country's president said, signalling an end to more than five months of damaging political deadlock.

President Atifete Jahjaga made the announcement after meeting outgoing Prime Minister Hashim Thaci of the Democratic Party of Kosovo (PDK) and Isa Mustafa of the rival Democratic League of Kosovo (LDK).

Mon, Nov 17 2014

PRISTINA, Nov 17 (Reuters) - The government of Kosovo has picked a French consortium which includes Compagnie des Alpes to develop the country's only ski resort, Prime Minister Hashim Thaci said on Monday.

The project will create thousands of jobs in one of Europe's poorest countries.

7:25am EST

BELGRADE (Reuters) - Albania's prime minister, the first to visit Serbia in 68 years, urged Belgrade on Monday to accept the independence of majority-Albanian Kosovo and was accused by his Serbian counterpart of "provocation".

"The sooner you recognize (Kosovan independence) the sooner we can move ahead," Albanian Prime Minister Edi Rama said in comments translated into Serbian during a tense press conference with Serbian premier Aleksandar Vucic.

Thu, Nov 6 2014
By Fatos Bytyci

PRISTINA (Reuters) - The U.S. envoy to Kosovo broke with diplomatic protocol on Thursday to signal Washington's growing impatience with the country's political leaders, who have been arguing over who gets to rule the young Balkan nation.

"Don't screw up," Ambassador Tracey Ann Jacobson said, using an equivalent Albanian expletive.

The colorful language was directed at political leaders locked in dispute for the past five months over who has the right to form Kosovo's next government following an inconclusive June election.

Thu, Oct 30 2014
By Fatos Bytyci

PRISTINA (Reuters) - The president of Kosovo on Thursday turned down an invitation to make what would have been a historic first trip to former master Serbia, citing a political crisis that has left the young Balkan state without a new government for almost five months.

Atifete Jahjaga had been invited to take part in a meeting in Belgrade of the Trilateral Commission, a biannual gathering of influential business leaders, academics and policymakers, starting on Friday.