Warning of capital flight from Albania, domestic companies want the same benefits and protections granted to foreign investors.
TIRANA, Dec. 1 – Members of Albania’s business community have asked for improvements on a draft law on foreign investors, asking for equal treatment of domestic and international companies and warning of capital flight from Albania if the draft stands.
The Albanian Confederation of Industries, better known as Konfindustria, has asked the Economy Minister, who serves as the head of the Business Advisory Council, to improve the draft law prepared by the Justice Ministry, because it gives a significant advantage to foreign investors over domestic companies in agreements where one party is the Albanian state.
Konfindustria says it wants all companies to be treated equally, regardless of where they are based. The draft law, for example, gives preferential treatment to foreign investors in cases of expropriation of property for public interest.
Gjergj Buxhuku, Konfindustria’s chief executive, said in a press conference that all businesses should be granted the same legal protection, regardless of where they are based.
“If we give special legal protection only to foreign investors, and not to the locals, we will create damage to commercial competition, move capital abroad, undermining investment initiatives in the country,” Mr. Buxhuku said.
He added that Albanian companies would simply move their capital to another country simply to artificially create a “foreign investor” in order to gain the same privileges as true foreign companies.
Konfindustria represents the interests of production and service industries in Albania, and its members are the most important representatives in the food and beverage industries as well as the production of paper, cosmetics, wood treatment, tourism and air services.
The organization says it was born as a necessity in the period of Albania’s integration in the European Union. Konfindustria says it represents the economical interests of Albania and all Albanians.
