Opposition says government economic policies to take Albania to cliff’s edge

TIRANA, Nov. 23 – The government is pledging to take the country again into economic growth next year but these move and the words are considered as false by the opposition Socialists.Socialist leader Edi Rama has said that such a false optimism will take the country into a deep recession that will be hard to cope with in the future.
The government is discussing the 2012 budget with a projected 4.5 percent GDP growth.Finance Minister Ridvan Bode said the country is not included in the global financial crisis and the Albanian banking system withstood the global financial and economic crisis.
Last week the parliament passed the law on banks aimed at keeping it safe in times of crisis.Bode said that the banks had a high performance due to the reforms and the standards they apply, adding that the “banking system consists of the most vascular system of the economy, most vital and stable segment. The global financial crisis tested the capacities of our financial system and the Albanian economy in facing dangerous developments.”
Albanian bank assets grew 5 percent at the end of the third quarter compared to the previous one and the banking system registered a net profit despite an increase in bad loans, the Albanian Association of Banks said on Monday.
Meanwhile all top officials are trying to raise the country’s image and attract foreign investment.This week Parliament Speaker Jozefina Topalli used the holding of the 38th session of the Parliamentary Assembly of the Black Sea Economic Cooperation (PABSEC) in the capital Tirana to tell foreign companies and officials present that in the face of the global crisis Albania would continue to implement low fiscal policies, provide favorable business climate and strengthen partnership with the business community as a way to provide momentum for the countryó sustainable economic development.
Albania’s 2012 state budget will be conservative due to a negative economic outlook for the region.
Meanwhile the country also gets help from the international institutions. It also gets annual assistance from the European Union.
Last week Albania’s Strategic Planning Committee discussed and approved a package of 83 million Euros in financial assistance from the European Commission. This money is usually aimed at reforms in different sectors, upgrading infrastructure and the building and consolidation of institutions in the country. Meanwhile the eurozone debt crisis is stoking growing fears of spillover in the small and vulnerable economies of the Balkans, with stricken Italy and Greece close neighbors and major trade partners.
A World Bank report earlier this month also warned that the debt crisis could see economic links under threat, with trade, direct investment, bank lending and foreign remittances all at risk. Trade with the EU is a key driver for exports and overall economic growth in the region, accounting in some cases for up to half of all activity, it said.