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INTERVIEW
Economic remodeling in Albania: a multi faceted endeavor
Anila DENAJ Minister MINISTRY OF FINANCE & ECONOMY The new fiscal year has just begun. In your opinion, what are the major objectives the Albanian government aims to achieve within such timespan? Along with the objectives of our government’s program, which we are committed to implement, the year 2020 will be quite a challenging year, as it coincides with overcoming the consequences of the earthquake of November 26th. In this regard, the budget of 2020 has allocated a fund of ALL 20 billion, fully dedicated to the reconstruction of all areas affected by the earthquake. The year 2020 will be the year of further consolidation of macro-fiscal parameters. In the context of reforms undertaken so far, it is necessary to focus on addressing mid-term policies, mainly in terms of fiscal policies and policies that spur economic growth, in a more sustainable medium-term structure. It is worth noting that, positive policy outcomes, focusing on
increasing employment, improving the quality of services to citizens, gender equality and the EU integration process, are and remain the focus of a continued consolidation. Access to quality education remains a government priority, through investments in educational infrastructure, the construction and rehabilitation of over 180 educational facilities, or 1,800 - 2,000 classrooms and laboratories, as well as through student support, in the frame of the Pact for University. In the health sector, universal coverage with quality health care will continue, through investments in health infrastructure at health centers, maternity hospitals and the modernization of UMCT (QSUT). Financing the upgrade of social services for disabled citizens and families in need, as well as increasing the level of coverage of pension contributions for citizens will again be the focus of government. Infrastructure and agriculture, also, remain priority sectors, with a total of ALL 21 billion allocated for road projects. In the framework of rural and agricultural development, we have allocated ALL 3 billion for infrastructure investments Given the general macroeconomic and microeconomic developments, and in a broader perspective, in the context of the regional and European integration, what are the expectations regarding overall economic development and how much do they converge with the government program? European integration and regional integration are two processes running in parallel. There are four main pillars
of regional cooperation, which guide developments in each country, such as: Free Trade in Goods; Digital integration; Mobility and Investment. Free trade policies aim at eliminating tariff and non-tariff barriers between countries in the region, to facilitate relations. At national level, this is of paramount importance, as it eliminates bureaucratic customs procedures. Albania has completed the project: "Electronic Customs", since July 2019. Such process saves business time at the border crossing, by creating common customs and border points, unified trade documents, mutual recognition of authorized economic operators and a unified risk management strategy. Digital integration will provide free roaming between Western Balkan countries, a shared digital agenda, a platform for trusted services, improved cyber security, etc. Mobility aims to ensure and facilitate mutual recognition of academic qualifications, as well as guaranteeing the implementation of European standards, through creation of quality assurance agencies, the approximation of European Union legislation and manuals for various professions. The Regional Investment Agenda, driven by regional reform and individual investment plans, aims to turn the region into a unique destination for foreign investors. Albania has included Vlora Airport project, in its national plans. Meanwhile, investments in road infrastructure, the plan for DurrĂŤsTirana-Rinas railway, as well as other investments of strategic importance, continue as planned. What are the challenges, national economy is posed to face in 2020 and beyond? January 2020
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