European Commission grants 245 million Euros to Albania’s reforms

TIRANA, Sep 23 – The European Commission on Tuesday approved an aid of 245.1 million Euros to Albania in a three-year program to help the country’s political and economic reforms, approximation to European standards and cross-border cooperation, its Tirana office said.
The 2008-2010 program in the form of grants “aims at supporting Albania in its Stabilization and Association process and preparing the country for future EU accession,” focusing on agriculture and rural development, transport and energy, environment and regional development, according to a statement.
Two years ago Albania, a Balkan country of about 3.2 million people, which is one of the poorest in Europe, signed the pre-membership Stabilization and Association Agreement with the EU, an initial step toward joining the 27-member union, which is to be ratified by all member countries before Tirana may apply for the candidate status.
The new aid aims at the public administration reform, good governance, European integration structures, financial control and decentralization of EU funds, judiciary and police reform, elections and census, social and economic inclusion of minorities and vulnerable groups, anti-corruption, media and civil society.
The aid package will focus on improvement of the socio-economic situation, implementation of structural reforms, functioning of the labor market, the education system, small and medium enterprises, trade, and social welfare services.
The program will also help the country align its laws with EU legislation.
The EC said it had coordinated its work with other international financial institutions and bilateral donors active in Albania in order “to ensure the maximum efficiency and effectiveness of the EU financial assistance, the definition of the major areas of intervention and the type of actions to be financed.”
“This assistance to Albania aims to help the country, on its path towards the EU, enhance political and economic reform, and approximation to European Standards in sectors related to the introduction and implementation of EU legislation,” according to the statement.
Financial support provided under the Instrument fro Pre-accession Assistance (IPA) aims at supporting Albania in its Stabilization and Association process and preparing the country for future EU accession. It reflects the priorities under the European Partnership, the assessment of the annual Progress Report, and the requirements of the Stabilization and Association Agreement (SAA) with the EU.
The main share of the budget is allocated to support activities under IPA Component I for Transition Assistance and Institution Building (EUR 214.7 million). A smaller share will be allocated to IPA Component II for Cross-Border Cooperation activities (EUR 30.4 million).
The separate major component on “Cross-border cooperation” will support Albania’s cross-border cooperation with its neighbor countries Montenegro, the former Yugoslav Republic of Macedonia and Greece and Albania’s participation in the European Regional Development Fund (ERDF) transnational programme “South East Europe”.
The EC also said that in order to ensure the maximum efficiency and effectiveness of the EU financial assistance the definition of the major areas of intervention and the type of actions to be financed has been closely coordinated with the International Financial Institutions and other bilateral donors, active in Albania.