As Albania’s second largest trade partner, and a country with a huge investment commitment in Albania, Greece is vital to Albania’s economy, the neighboring country’s ambassador says.
TIRANA, Nov. 26 – Greek companies were among the first foreign investors in Albania and will continue to play a vital role in Albania’s economy, Greek Ambassador Nikolaos Pazios said this week.
Reducing corruption, proper state functioning and conditions that favor healthy competition are very important in attracting foreign investments, because simply lowering taxes won’t do unless these elements are also present, he added.
Mr. Pazios made the comments in an interview for the Albanian daily newspaper, Shqip, dealing mainly with economic issues.
An economic forum held on Nov. 27 will look at the role of Greek investors in the Albanian economy, EU’s economic impact on Albania and environmental protection.
Greece is Albania’s second largest trade partner. Greek exports to Albania in 2008 reached 555 million dollars, and Greek imports from Albania came to 144.5 million in 2008. They are mostly clothing, minerals, electricity, paper and paperboard, industrial articles as well as fertilizers, according the ambassador.
Although Ambassador Pazios said the data show there had been no decrease of Greek investments in Albania, he acknowledged that there are an increasing number of players in the market, coming both from inside and outside the EU.
“I think that in modern conditions of globalization, it is understandable that there will be investments from other countries. It depends on the institutional progress of Albania, but also on the general economic situation,” he said in the newspaper interview.
About 28 percent of foreign investment in Albania comes from Greek companies.
“Let us not forget that the Greeks were the first investors in Albania since the early 1990s,” the ambassador added.
Greek governments have funded investment projects in Albania through the Investment Law, which was in force in Greece until 2003. Also, through the Greek Plan for Economic Reconstruction of the Balkans, 50 million euros are made available to Albania, of which 9 million to finance private investment.
Greek investments are particularly important in Albania, according to the ambassador. “Many large Greek companies which have a special presence across Southeast Europe are located in Albania,” he said, adding there are banks — Alpha Bank, Emporiki, Tirana Bank, NBG, telecommunications companies — AMC, while new investment projects happen often — such as the construction of the Titan cement company, hospitals and others.
Ambassador Pazios said in addition to the important EU support for Albania, Greece has supported Albania by itself through the Greek Plan for Economic Reconstruction of the Balkans, an ambitious project, originally set for five years (2002-2006), but whose term was extended for another five years (2007-2011), in order to implement a comprehensive development policy for the Balkans.
“The objectives of this policy are the modernization of infrastructure, promotion of productive investments, support of democratic institutions and the rule of law,” he said.
The same plan funded a total of over 500 million euros for projects, studies and activities for other Balkan countries, including Kosovo, in order to encourage European perspective and consolidation of political stability, economic and social development in the entire Southeast Europe region.
“We have every reason to be active in this process, and to become the locomotive of progress toward European integration in our region,” Ambassador Pazios said.
Another issue that will be dealt with at the forum is climate change and environmental protection.
“Perhaps most Albanian companies are not yet aware of the importance of the environment issue. But progress in this field concerns in particular the EU, and international organizations,” the Greek ambassador told the Shqip newspaper. “UNDP made a study and concluded that there are ten environmental hot spots in Albania. Also of particular importance is the issue of waste management and disposal of industrial and urban waste. This is an issue that is directly related to public health and prospects for development of tourism in your country.”
