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IMF deal approved amid harsh debate

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Socialist-led majority approves agreement as the opposition walks out, following marathon debate.

TIRANA, April 7 – In a marathon debate held in Albania’s parliament last week, Albania’s main political parties clashed over the approval of the 331 million euro deal with the International Monetary Fund.
While the governing majority of the Socialist-led coalition of Prime Minister Edi Rama holds a clear the majority and approved the agreement, the debate and the bill’s passing was an indication there is little consensus in Albanian politics, as the opposition did not take part at the vote, walking out of parliament.
Opposition MPs had been prodding the government over what they saw as “secret deal” approved behind closed doors. They said it was a bad deal for Albanians, which would force the government to increase taxes, utility prices and the retirement age.
The government says the deal will help the country get back from the economic ruin the previous government had involved it by helping Albania lower its public debt, which currently stands at 72 percent of the GDP.
The premier said there will be no tax increases as the result of the tax collection has improved so far, bringing $150 million more to state coffers than the comparative period a year ago.
Rama said that the deal would guarantee the economic recovery, “bringing the nation out of the abyss into which it has plunged.”
The government has started paying back outstanding payments it owed to private companies, which go up to $720 million. They will pay half of them this year and the next over the years to come.
Albania’s economy has taken a dive, with average GDP growth plummeting from highs of 6-8 percent before 2008 to 0.4 percent by 2013.
Albania’s economy grew 0.4 percent in 2013, less than forecast by the government and the International Monetary Fund, although the pace picked up in the final quarter, the state-run Institute of Statistics said on Monday.
The political fight also continues with the media coverage. The parliament has started procedures to change the make-up, or the members of the main media executive, the AMA. The opposition says that the new government is blackmailing the media outlets.
The opposition also continues to say that the country has been involved in an insecure period with the new government, with large increases in crimes.
The governing Socialists called on the opposition to turn into a partner on issues of national concern, and not only resort to defamation and attacks on government policies.
EU officials say that Albania has made significant progress and therefore deserves the candidate status. But they also add that the political situation and relations majority-opposition are a problem.

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