1st Meeting of the European Community/Albania Working party on Economic and Financial Issues and Statistics held in Brussels

1st Meeting of the European Community/Albania Working party on Economic and Financial Issues and Statistics held in Brussels

Macro-economic situation in Albania, monetary stability reflected by law inflation and exchange rate stability were some of the conclusions of the Working party meeting held in Brussels on 23-24 May.

During the meeting on Economic and Financial Issues and Statistics, the first meeting under the Interim Agreement, representatives from the DG Budget in the European Commission expressed their view on the anomaly created by the refusal to decree the proposed law on Internal Audit and expressed their hope that uncertainties over this draft law will be resolved soon.

In this context, the EC party offered assistance and expressed the will to participate in meetings held in Albania in order to argue that the draft presented by the Albanian government fulfils all international standards.

EC representatives underlined that this draft law does not intend to compete with the existing law on the Supreme State Audit, but helps this institution to better carry out its functions.

EC stressed the importance of consolidating public finances and cooperation with the IMF, and added that the actual tax policy reforms introduced by the government should ensure a sustainable budget position.

This meeting also stressed the need to strengthen administrative capacity of public debt management. The European Commission acknowledged the measures introduced by the Albanian government in enhancing competitiveness of Albanian market, especially in encouraging imports, with the view of reducing the trade deficit.

EC representatives said that it is important that privatisation of strategic enterprises continues and that this process should be carried out in line with international standards and with transparency.

European Commission commended the policy pursued by the Bank of Albania, keeping inflation within the fluctuation band around the set target and its surveillance over the banking system was welcomed. EC representatives said that eventual increase of bank credits in economy is a natural process characteristic of all transition countries.

The Commission was provided with information on improvements of the energy situation and the mitigation of negative effects of energy insufficiency on economic development. The Commission was informed also with the short- and mid-term measures introduced in order to improve the financial situation of KESH.

In this meeting the Albanian delegation was co-chaired by Deputy Minister of European Integration Mr. Albert Gajo and Deputy Minister of Finance Mr. Florjon Mima and the Delegation of the European Union by Mr. Christophe Pavret de la Rochefordière, Deputy Head of Unit, DG ECFIN.