TIRANA, Jan. 21 – Frictions in the ruling coalition continued even this week after a senior official of the Socialist Movement for Integration, the ruling Socialist Party’s key ally, called on the government to seriously reflect on an IMF report unveiling the Albanian economy’s fiscal risks.
Speaking from the headquarters of SMI, Luan Rama, the secretary general of the SMI urged government to reflect on the IMF report with more caution compared to recommendations by the Venice Commission on the much-rumored justice reform which has been placed on top of the political agenda.
“The financial risk rings an alarm bell which requires concrete and accountable reflection. The Albanian government has faced crises and unpleasant economic developments as many times as it did not seriously consider IMF warnings,” said Rama.
“The government should seriously and responsibly reflect and read the report straightforward, and allow me to say that I am not exaggerating it when I say they should be read with more seriousness and consistency than the Venice Commission recommendations,” added the senior SMI official.
In its latest fiscal transparency evaluation report on Albania, the International Monetary Fund warned Albania faces a variety of significant fiscal risks, including claims for compensation for expropriated property of up to 70 percent of GDP, a large banking sector with a high proportion of non-performing loans and concession commitments of about 7 percent of the GDP.
Luan Rama’s morning press conference sparked media speculation of a new rift between the Socialists and the SMI.
Petrit Vasili, the head of the SMI parliamentary group, later reacted from the SMI headquarters describing Luan Rama’s stance as individual and not representing the official SMI stance.
“Mr. Luan Rama’s stance regarding the IMF report is not the official stance by the Socialist Movement for Integration. It is an individual interpretation of the report,” said Vasili in a statement, turning down allegations of possible new rift in the ruling Socialist Party-led coalition.
There was no reaction by the Socialist Party over the statements by the two senior SMI officials.
Last week, the Socialists and SMI clashed over the judicial reform with the junior partners insisting that the key reform should be all-inclusive and that it cannot be carried out without the consensus of the opposition Democrats although the ruling coalition has a comfortable majority 3/5 of votes in the 140-seat Parliament.
The opposition Democrats were in a coalition with the SMI from 2009 until 2013 when they lost by a landslide in the general elections after 8 years in power.
