The European Commission's latest report on Albania states that the country has a moderate and good level of resilience in development and a functional public sector. It also makes some recommendations in this area.
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Economic issues caused by air strikes and Russia's aggression against Ukraine have shown the Albanian economy's elasticity and a strong increase in GDP in 2022. Inflation exceeded the target in 2022, but shifted slightly and increased at the beginning of 2023.
The report evaluates that the public debt report is more than expected, at a higher level than before the 2019 crisis, but higher in the area.
It has implemented reforms to improve expenditures and investments, planning and execution, and fiscal oversight, but the Commission believes that challenges persist in these two areas.
It has made some recommendations related to reforms and associated with implementation, but a strategy for long-term implementation of associated measures has not been developed.
In another area, the level of investment continues to stimulate the economy, which is very necessary. The financial sector is growing and decreasing, but intermediation is increasing.
Businesses benefit from a higher level of digitalization of public services. However, there are challenges related to a large informal economy and the absence of qualified employment. There has been no overall improvement for consultations with the public by the government.
The report is critical of the lack of transparency in the process of restructuring and the need for mechanisms to enforce control over projects and public-private partnerships (PPP).
"Revenues from restructuring at the end do not have transparency as they have not been integrated into the public financial procedures and regulations."
A publicly published request in December 2022 presented a further request for reporting on all public bodies for possible fiscal risks, including those related to PPPs, but the report states that these capacities and mandates have not been updated to use this information fully.
The report suggests that there has been an increase in the number of new PPPs. The use of PPPs has also been curbed. At the end of 2022, the PPP/concession registry contained information for 228 contracts.
The report states that qualified employment is deteriorating.
"There is a perception of worsening in recruitment and employment of qualified workers that is harmful to businesses and employers seek more work from the government to help with the management of employees and to offer incentives for the return of the diaspora."
Corruption is a serious issue in many areas of public life and business, the report states.
The SPAK bodies have carried out investigations on several high-level issues, leading to some arrests and high-level investigations.
In general, corruption is spreading in many areas of public life and business, and limited impact is being made, especially in vulnerable sectors.
The increase in the number of final audit opinions at a high level is a priority to further develop the culture of integrity.
Sources:
► https://commission.europa.eu/publications/implementation-reports-2022_en
► Monitor: https://www.monitor.al/raporti-i-komisionit-europian-ka-mungese-transparence-ne-fondet-e-termetit-forconi-kontrollin-per-ppp-te/
► https://www.eeas.europa.eu/delegations/albania/key-findings-2022-report-albania_en?s=214