Kosovo's statehood faces first test at local polls

By Fatos Bytyci and Branislav Krstic

PRISTINA (Reuters) - Kosovo held its first elections on Sunday since declaring independence from Serbia last year, with unemployment, corruption, poor infrastructure and low investment the biggest issues for voters.

The local polls are seen as a key test for Kosovo which wants to establish itself as a fully functioning democracy and gain acceptance from more countries than the 63 that have so far recognised it as an independent state.

"Today we are showing that our country and its citizens have deserved independence, democracy and the European Union perspective," said Kosovo's prime minister, Hashim Thaci.

Analysts say the low turnout, 45 percent, reflects the disappointment many Kosovars feel in their leaders for failing to improve the economy of one of Europe's poorest countries.

"The faith is lost in Kosovo because of high corruption among the political parties," Halil Matoshi, a political analyst said. "People that vote today are mainly party militants."

The turnout among Kosovo's Serbian minority was minimal.

The Election Commission said there were no major irregularities and polling stations closed at 1800 GMT.

Few expect the winners of the local elections to change the 40 percent unemployment rate and create jobs for the 30,000 young people who enter the job market every year. Many of them continue to leave the country to find work abroad.