Prime Minister Berisha participated today in the opening session of the Crans Montana Forum, which is held in Albania for the second time in two years. Among the participants were the President and founder of the Crans Montana Forum, Jean Paul Carteron, the Prime Minister of Kosovo, Agim Ceku, as well as other international and Albanian business leaders. In his speech, Prime Minister Berisha thanked the guests, who by participating in this important event showed respect and confidence in Albania and in the possibilities it offers. He continued with the presentation of some of the achievements and progress made by the Albanian government during the last year. Amongst others, Prime Minister Berisha said: "The Crans Montana Forum, which is held in Albania for the second time, is a very important event for our country.
I take this occasion to thank Mr. Jean Paul Carteron and his team, Prime Minister Ceku, as well as all the participants who through their participation show a great deal of respect and confidence in Albania and the possibilities it offers. This years Forum finds a different Albania. In one year Albania has signed the Stabilisation Association Agreement with the EU and is working intensively for the implementation of the Interim Agreement with the EU. Albania has given clear evidence of contribution in the field of internal and regional security and this is why it received a very important message from the Riga Summit, according to which it is one of the potential NATO member candidates in the Summit of Bucharest.
This year, Albania has also made many changes in the economic field and has made big steps towards its prior objective: being the most welcoming country, the country where you can easily, quickly and surely achieve your projects and dreams. During this last year we have made important changes in the fiscal system, I can call it a revolution, through which we aim for Albania to be the country with the lowest taxes in Europe. From July 1st until January 1st we will install the flat tax.
We decreased the social security contributions by 30 per cent and other similar reforms will be made in the months to come. We have decreased the energy price for businesses by 33 – 45 per cent, we have totally transformed bureaucracy and now the business registration procedures take only 8 days, instead of 42, the business electronic registry is completed and soon we will open the first One Stop Shop, through a programme sponsored by USAID in the framework of the Millennium Threshhold Programme. We have also made very important steps in the legal framework: we have adopted the new Public – Private Partnership Law and the Procurement Law, which will transform Albania into the electronic procurement country. We are also working for the improvement of the fiscal administration, in the framework of the Millennium Threshhold Programme.
We will soon implement an integrated tax system and the online tax. The customs barriers have been abolished and serious steps toward the improvement of the business climate have been made. Great and comprehensive efforts are being made to bring the country into the digital age. This is a difficult assignment. Albania has an unacceptably low rate of digitalization, but the country is working hard to catch up with the digital age, as an Archimedes lever, and quickly leave behind hundreds and thousands of unnecessary connections.
I mentioned the electronic registry we will soon implement, but I will also mention the electronic customs, taxes, procurement, schools. We will soon tender for the most advanced citizen identification system, digital ID cards and passports; we are digitalizing the property archives; the school internet programme is advancing quickly and will be achieved within 2008. All these efforts have given tangible results.
Albania resembles a construction site, where it is impossible to see at first sight all the elements designed by the architect, but where results are obvious. International institutions believe that we are advancing quickly and that the Albanian economy has earned the admiring enthusiasm of foreign analists. Allow me to give you some facts: the economic credit is advancing very quickly and 70 per cent of this credit is addressed to business; the demand index is very high; we have a two digits sales index; last year exports increased by 20 per cent and in the first four months of this year, regardless of the implementation of the Interim Agreement with the EU, exports have doubled compared to the same period of 2006; we predict an economic growth of 6 per cent, but I am sure it will be higher. Leaving statistics aside, there are other indicators that are much more important than the ones I just mentioned, such as your presence here today.
There are amongst you representatives of big regional and European companies who foresee billions of euros of investments and investment projects in Albania. If we compare 2006 with 2004, foreign investment per capita increased 4 times and went from $28 to $130 per capita. This is an admirable increase, but the absolute value is still unacceptable. I am confident that this year will mark a greater increase in this field. Albania offers great opportunities. Albania has excellent macroeconomic stability and its macroeconomic indicators are identical to those of Finland.
Albania has a 6 per cent economic growth, 2.4 per cent inflation and a 2.6 budget deficit. But our country offers other, very important advantages. It has the youngest, most dynamic and most affordable workforce in Europe. Just a few months ago, some big Italian companies left China to come to Albania. I consider this decision to be very wise, for Albania has an excellent geographic position. The west coast of the peninsula is Europes gateway to the Balkans and the Balkans gateway to Europe. Albania has great potential and natural sources. Its wonderful coast is almost unexploited and its mountains are untouched. The country is one of Europes richest in water and only 6 billion kw/h of its water potential is exploited. Albania is the country of great mineral deposits, one of Europes richest in chromium, nickel, copper and other minerals. Through the standards we are implementing, the lowest taxes and industrial parks in construction, we offer great and real opportunities. You should never think of Albania only as a market.
The agreement signed in Bucharest creates a free trade zone beginning in Croatia and ending in Moldova. Free trade agreements with countries in the region are being implemented every day. I wish you luck and hope that you will follow the excellent example of tens of other big companies who joined the Albanian business community this year. San Paolo Imi, Societé Générale and Banca Popolare are the three banks that settled in Albania lately. Unica and Aspis joined the insurance market. EVN, Vatech, Strabag, Alpine, General Electric, ACG Consortium, Falcione and many other important companies started operating in Albania last year and entered the Albanian banking and insurance system, the cement production market and the energy sector.
Some of them have profited from the "Albania 1 euro" initiative, which was totally included in the Public – Private Partnership Law. Once again, I would like to heartedly thank you for your presence today and for the great honor you made to Albania through the confidence you have shown. Thank you."
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