NEW European Union Albania Progress Report November 2008
Overall, the report clearly showed Albania was making excellent progress in many areas to bring the country up to EU standards. The economy was a major focus, and the report showed that the Albanian economy experienced strong growth despite the severe drought in summer 2007.
There were some areas still lagging, with a major focus on corruption, which is similar to the reports when Bulgaria and Romania were applying.
Here are some of the EC Progress Report positive highlights:
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Albania has received EUR70.7 million pre-accession funding
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A new Visa Agreement from January 2008 is simplifying and freeing up Albanians ability to travel
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For the upcoming elections, preparations for organising ID cards, voters lists and biometric passports was completed in September 2008.
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A cross-cutting anti-corruption strategy for 2007 – 2013, with action plan, was adopted in October 2008.
Albania’s neighbours update
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Visa-free entry to Macedonia
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New Montenegro border crossing point under construction at Muriqan/ Sokobine.
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Bosnia has decided to open an embassy in Tirana
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Good relations with Croatia, Serbia and Turkey
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Albania has recognised Kosovo as independent
Economy Update
· Growth was 6%, the highest since 2002.
· Italy is Albania’s main political and economic partner, followed by Greece.
· Labour market conditions have improved and registered unemployment is down from 13.4% to 13%
· Wages in the public sector increased by 17.1% on average.
· Public Enterprises were mainly services and the agricultural sector
· Privatisation
o 85% stake in ARMO Oil Refinery was approved
o 76% of shares in KESH
o 12.6% share of AMC
o Majority of insurance company INSIG
· The government simplified the business registration procedures significantly
· There are now 16 banks in Albania and profit rates of banks remained relatively strong. Banks continued to widen their range of lending products and increase the number or regional offices.
· Construction of the Vlora thermal power plant is in progress. Albania has signed 25 concession agreements for construction of small hydro-power plants, and a further 87 proposals are under evaluation.
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Business and political interests are affecting the media and a new broadcasting law is under preparation. It will have a major positive impact reducing possible bias in the media.
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Money Laundering continues to be a major problem, as the private sector is mainly cash based.
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Drug Trafficking remains a serious concern
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Organised Crime continues to be a serious problem and a national strategy was adopted in July 2008, but has not yet been implemented.
Overall, this is all excellent news for Albania, especially the noticeable improvements in the economy. Of course the next report, following the global economic crisis, will be the most interesting. Current indicators are showing the effect on Albania will be evident, however the country is still forecast to perform the best in the Balkan region over the next 12 months.
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