TIRANA, Sept. 14 – Economist Conferences, a global conference provider that is part of The Economist Group, publisher of The Economist, launched Thursday a government round-table in Tirana bringing together the key players from business and government to debate Albania’s future. Nenad Pacek, Director, Economist Intelligence Unit (EIU) CEEMEA and conference chairman commented that; “Companies that have dedicated resources in Albania are finding that sales levels are higher than expected. Albania is one of the last Central Eastern Europe frontiers for business growth.”
The international interest in Albania has been confirmed by Economist Conferences with a number of International delegate registrations received to date. Participants were from a variety of industry segments; manufacturing, FMCG, IT and services. It is a signal that Albania is on the radar screen of regional business. Richard Eames, Senior Economist, Economist Intelligence Unit added that “Albania is a complex market, with many challenges in the operational environment. The Government has many challenges ahead in order to provide businesses with an operating environment in which they can thrive.”
The conference coincides very well with the ‘Albania, 1 euro’ project presented by the Albanian Prime minister Sali Berisha. The prime minister said that he would soon present to the parliament the project. Berisha guaranteed foreign investors that Albania was a very secure country. Answering to the questions on the political developments Berisha repeated that dialogue would be a good way out of the recent political squabbling. He insisted that he has appealed to the opposition to sit down and apply the last deal on the electoral reform. “We have undertaken a fiscal revolution with the only goal of installing flat tax with the lowest level in Europe,” he told businessmen, reminding them that the 1 euro project would offer them land, the possibility to open banks, build hydropower stations or mines with just one euro.
Albanian businessmen also asked Berisha that there should be no discrimination between the domestic and foreign investors in the application of the project. “We remind the government to take into consideration domestic business,” said Albanian businessman Edmond Leka.
Albanian Finance Minister Ridvan Bode was also among ther speakers at the forum. Bode mentioned the sustainability of the macroeconomic indicators in the country for many years. He also noted his government’s last results in collecting more taxes and registering more businesses along the efforts to wipe out informal economy in the country. “Domination over informality and corruptive abuse remains an open challenge,” he said.
Economist Conferences organizes open and independent events to provide an impartial platform for discussion between business and government – the Albanian Round-table will be no exception. Since 1956, Economist Conferences has held these exclusive events on four continents, in both emerging and developed economies. Government Roundtables are deliberately informal. To foster a climate of openness and frank debate, most discussions are firmly off-the-record. Participants will benefit from insights into Albania, benchmarking with other markets in the region and discussing issues that will be the key to Albania’s transformation.
Some of the issues discussed included: What are the ground-level realities of doing business in Albania? Where will the government focus its energies? What are the government’s spending priorities and financial plans? How can policy-makers make Albania more attractive to international business? Is there a timetable for Albania’s eventual accession to the EU?
The opposition, on the other hand, responded negatively to the 1 euro project calling it a fake show from the government. Speaking at a plenary session in parliament Dritan Prifti of the Socialist Movement for Integration considered it a “non-transparent step, confusing one open to abuse. Albania is threatened from a great danger: not less than 25 percent of its territory may be granted.”
‘Albania 1 euro’ project proposal to be ready by end of month
Prime Minister Sali Berisha said when speaking to participants of the conference that his government would make ready the project proposal for the ‘Albania 1 euro’ project by the end of the month. Berisha said the package which is being prepared will include the entire 1 euro contract, offering by concession from 50 years to 99 years not only the land, but also industries, mines, power stations that may be built, banking sector, and so on.
Albania to get U.S. money for fight against corruption, fiscal evasion
In the context of the fight against corruption Berisha also said that the Millennium agreement with the Untied States would be signed Friday. The agreement will offer to Albania 13.4 million dollars which will be used in different projects to update the administration capacities, and a special attention will be paid to the ways how to fight money laundry, informal business and corruption.
Property ownership
One of the key elements where the Albanian government will insist to have successful result in the near future is the property titles, according to Prime Minister Sali Berisha. “The fight against informality and extra legality are the two main directions of the government,” he told participants. Albania has undertaken the legalization process this summer. The government has also asked for international counseling on the issue. “Very soon Albania will be a country with clear and safe property titles though even at this moment there is no obstacle for foreign investors,” said Berisha.
Albania and internet
‘Albania in the internet age’ is the last initiative launched by Berisha at the Economist Conference meeting. “Albania will soon overcome big problems inherited at the IT and we have already established links with Microsoft,” he said. Microsoft manager participating at the conference, Silviu Hotaran, spoke about the possibilities of developing the IT service in Albania pleased with the government support. He offered access to the technology of the world giants in the sector.
Albania soon with a flat tax
Albania would soon have a flat tax, the lowest in Europe, according to Berisha. “We are working to install a new mode based on fiscal performance. We had 30 percent more revenue this year,” said Berisha, adding that was achieved through better tax administration, tax cut, lower social insurance payment, lifting taxes for the machinery and other steps. The flat tax model will be conducted in two stages. The first will lower tax level to that of the region and after 18 months it will be further down. Berisha added, however, they had agreed with the International Monetary Fund not to have any tax cut until mid-2007 in order to check the fiscal performance.
Vlora power station to start soon
Prime Minister Sali Berisha said that the government was working fast enough toward new resources and alternatives of energy, even with private investment. Berisha said that the new power station in Vlora would start to be built by the end of autumn and a series of smaller hydropower stations would be given by concession. He also highly evaluated a liquid gas supplied power station in Fier funded and generally managed by a Swiss group.
IMF: Albania becoming interesting country for investment
The IMF official Istvan Szekely, who is on a mission to the country to evaluate the 2007 budget with the government, said at the Economist Conferences roundtable that “Albania is becoming an interesting country for investment.” “There is progress and we are pleased with the application of reforms undertaken from the government and prime minister,” he said. The IMF official highly evaluated the improvement of administration of the fiscal sectors but he repeated what he said a day earlier that the government should install equal opportunities to the domestic business like those for the international investors.
