By ervin lisaku
TIRANA, September 13 – A draft law granting special legal protection to foreign investors in Albania has sparked harsh reaction by the opposition and the local business community claiming that the draft discriminates against local companies.
Last weekend, opposition members of the parliamentary law committee walked out of the session refusing to take part in the vote, saying that the draft, which protects foreign investments even from court decisions against them, is aimed at favouring special businesses close to government.
However, the majority insists the draft will have positive impacts on foreign investments in big energy, tourism and agriculture projects which will be protected even in case of property problems.
In a statement issued last Sunday, the business community represented by Konfindustria, called on government to also include Albanian businesses in this draft, a request which was not taken into consideration when the draft was discussed later this week in the economy committee.
The business association said that the draft should not make a difference between origin of capital, but focus on strategic importance of projects and the value of investment.
Appealing for the review of the draft, Konfindustria’s executive director, Gjergj Buxhuku said “if the special legal protection is granted only to foreign investors, fair competition would be ruined and there would be outflow of capital and barriers to investment initiatives in the country.”
However, the association said it supported the changes in principle as a temporary measure considering the “unacceptable situation of the court system and the necessity of attracting more foreign direct investment in Albania.
According to Konfindustria, Albanian court system suffers lack of professionalism and subjectivity while corruption is ruining citizens’ confidence in the rule of law values.
The draft law is also opposed by the Tirana Chamber of Commerce and Industry which says the bill is discriminative and that the opinion of domestic businesses should also be taken into consideration before the law is approved by Parliament.
The bill favours foreign companies in property disputes, allowing government to settle disputes with land owners.
“The draft law foresees stripping Albanian courts of the right to suspend or stop foreign investments and even starting procedures on expropriation for public interest when legally sought by third parties. Such a right is not foreseen for Albanian investors,” said Konfindustria earlier.
