EU funds 13 million euro financial assistance to Albania

TIRANA, Aug. 7 – The European Commission gave Monday a 13 million euro grant to Albania, the second part of a 25 million euro funding to assist the country’s macro-financial sphere aiming to support economic reform and stabilization. In November 2005 there was the first installment of 3 million euro and in March the other 9 million euro.
“This assistance was approved by the European Union in April 2004 and is provided in the context of the stabilization programmed supported by the International Monetary Fund. Its objective is to ease the Albania’s external financing constraints, strengthen its balance of payments position and to underpin the reform process towards a market-oriented economic system. This requires continued efforts by the Albanian authorities to establish strong and modern institutions and a continuation of stability-oriented macroeconomic policies,” said Hubert Petit, Acting Head of the European Commission Delegation in Albania. The disbursement of the last part was made possible after the fulfilling of a series of preconditions, which included a favorable track record of the economic stabilization programme supported by the IMF and the progress in reforming key areas such as public finance management, public administration, financial sector, business environment and private sector development, he said.
The IMF Executive Board made a favorable review of Albania’s current three-year Poverty Reduction and Growth Facility arrangement, whereas the European Commission positively assessed the efforts made by Albania, in particular during the recent months, in the above-mentioned areas.
Petit said that this event came only some weeks after the signature of the Stabilization and Association Agreement with the EU (June 12) and showed that the agreement is the beginning of a new and more difficult phase. As President Manuel Barroso said during his visit in Tirana “This is no time for Albania to relax its efforts. The real work begins after the Agreement has been signed. Albania has to establish a track-record in implementing this Agreement, in order to move closer to the EU”. But, this also shows that efforts pay and are recognized.
Petit used the opportunity to remind Albanian politics as well. “I take this opportunity, however, to say that the EU integration process requires joint efforts of all Albanian political forces. Successful efforts in the field of economic reform should be carried out in a sounder political environment, which is conducive to more progress. The latest events in Parliament have unfortunately showed a lack of political maturity. A more constructive stance and shared responsibility are crucial features in this context. It is also important to intensify efforts to build consensus on reforms through dialogue between all forces and stakeholders of the Albanian society and to avoid unnecessary confrontational political climate.”
Albanian Prime Minister Sali Berisha said that aid was a confirmation of the success of the reforms undertaken from his government in improving the management of the public finances, public administration, consolidation of finances, and promoting a favorable climate for investment and the business. “I would express the deep gratitude of the Albanian government to the European Commission, European Union and member countries for this generous aid and for the colossal investment they have made during these years,” said Berisha at the ceremony. The premier reassured Europe of the government’s determination to continue reforms and get integrated into the block. “Once again I would like to guarantee that Albania’s integration into the EU and NATO remain the most major goal of the government and the Albanian society,” said Berisha.