TIRANA, April. With a minimum of votes that did not include all the DP members and the allies in the right wing collation, the government passed the controversial law on fines in the early hours of Tuesday. The discussion lasted beyond midnight on Monday and saw the most serious challenge to the coalition since its formation in 2005. a change in the percentage of the fines to be paid prior to the legal contestation was negotiated by Nikolle Lesi which lowered it from 25 to 15 percent as a final deal. The ad-hoc situation with legal amendments going back and forth in an informal discussion way was severely criticized by Bamir Topi, recently proposed as a candidate for President from the DP. Topi emphasized that the practice of circumventing commissions was setting a dangerous precedent. Berisha repeated that the fight against informality was the priority of the government and made a call for businesses to expose abuse from the tax authorities. He also mentioned his concern about rising level of copyright rules abuses.
Internal dissent
DP Member of Parliament Spartak Ngjela voted against and so did Bujar Leskaj, former Minister of Culture given his business background. Most importantly the fierce opposition of the Human Rights Union party was the strongest seen so far with s head Vangjel Dule speaking up t the prime Minister against the law which he judged as arbitrary and aiming at the consolidation of businesses affiliated with political power. Dule emphasized that his party will exploit all remaining legal spaces to oppose the law including the drafting of a memo to the president and the consideration of the Constitutional court. He had positive expectations that the law would be stopped by either of these institutions. This seems to be the start of a serious potential split of the HRUP from the governing coalition.
Even the Defense Minster, Fatmir Mediu that comes from the Republican Party, part of the right wing coalition expressed his concern abut a potential boomerang given the worsened relationship of the government with the only sector that guarantees economic growth.
Opposition: words and facts
Media noticed that though the opposition had been quite outspoken against this law, the absence of many of its deputies in the voting process had an effect on the approval. No less than 20 deputies of the left wing were absent and did not vote. Had they been in the Parliament hall the law could have had a more serious challenge. Nevertheless both SP leader Edi Rama and SP Parliamentary group new head, Ben Blushi promised the electorate that this would be the first law on their agenda to reverse upon taking power. The SMI has declared that the law infringes upon the principles of the Albanian Constitution.
Business reaction
Business took all the possible steps to lobby the prime minister in order at least to postpone the law. The last meeting before Berisha entered in the discussion and voting session was with the Association of Constructionists which repeated the plea for a postponement which was rebuked by Berisha. After the law approval Konfindustria warned again that many businesses risk bankruptcy. Earlier, Konfindustria had proposed an alternative legal package that aims at fighting fiscal evasion but respects the rights of business. It included the proposal of a special trade court to handle all disputes and formalize all business transactions borrowing form the experience of other European countries.
Special Administrative Court
It would require a compromise with the opposition to cerate a special structure that would solve the problem of lingering legal processes between businesses and tax authorities. The latter can go on for about 3-5 years and harm the normal flow of the trade activity. The new fines law makes it imperative on the administration to guarantee the protection of economic activity form abuse. The establishment f this curt would be operational only after 1 year in which abuse would go unpunished. The court will also face the problem of staff which needs to be appointed with a presidential decree. Te problematic relationship between the government and the president would impede any quick resolution while the harm would still be on the businesses.
Future steps
It seems the struggle of the government with the business community is just at the first steps. Another draft law has been proposed in the Parliament pertaining to the responsibilities of judicial persons, an article of which holds the company owners responsible for the legal misdeeds of their employees.
On another front, the creation of a special trade court, which would appease some of the fears f the business community seems to be a distant plan. Businessmen Pinguli from Birra Stela and Luigj Aleksi from the Construction Association have argued that the court should have preceded the fines law and not vice versa.
The business associations have also called for a responsible consideration of te law by the president and the Constitutional court.
One thing is certain; the battle is just in the beginning.
