EC unveils obligations for Albania’s economic criteria accession

TIRANA, Nov. 18 – Albania has achieved a certain degree of macroeconomic stability, but to become a functioning market economy, as set out by the 1993 Copenhagen European Council, the country needs to further strengthen governance, improve the performance of the labour market, ensure the recognition of property rights and strengthen the rule of law, said the European Commission in its latest analytical report on Albania’s economic criteria for accession.
In order to enable it to cope over the medium term with competitive pressure and market forces within the Union, Albania needs to strengthen its physical infrastructure and human capital and pursue further structural reforms, suggested the EC.
As regards the economic criteria, the report said Albania’s track record in implementing its obligations under the Stabilization and Association Agreement is positive overall.
The Commission says Albania would be in a position to take on the obligations of membership in the medium term in most of the acquis fields, provided that the alignment process continues and that considerable and sustained further efforts are made to ensure the implementation and enforcement of legislation. “Particular attention should be paid to the areas of free movement of goods, intellectual property law, information society and media, agriculture and rural development, food safety, veterinary and phyto-sanitary policy, fisheries, transport policy, social policy and employment, regional policy and coordination of structural instruments, judiciary and fundamental rights, justice, freedom and security and financial control.”
Full compliance with the Acquis in the field of the environment could be achieved only in the long term and would require substantial levels of investment. Efforts in this area should be accelerated, says the report.
The moderate openness of the economy and the low level of integration of the financial system with the global market, together with the substantial, albeit declining, share of agriculture have limited the impact of the global crisis on Albania. Macroeconomic policy has been instrumental in cushioning the effects of the turmoil.
However, fiscal consolidation has been reversed recently and the high level of public debt remains a source of macro-financial vulnerability. A narrow export base and public investment have led to a significant and persistent current account imbalance. The existence of widespread informal work arrangements continues to severely distort the labour market and unemployment remains high and stood at 13.8% in 2009
Albania’s accession would have a limited overall impact on European Union policies and would not affect the Union’s capacity to maintain and deepen its own development. The Commission considers that negotiations for accession to the European Union should be opened with Albania once the country has achieved the necessary degree of compliance with the membership criteria and in particular the Copenhagen political criteria requiring the stability of institutions guaranteeing notably democracy and rule of law.