Full speech of Prime Minister Edi Rama at the annual FIAA reception held in Tirana, 27 January 2015.

Full speech of Prime Minister Edi Rama at the annual FIAA reception held in Tirana, 27 January 2015.

January 23, 2015
/ /
in News
/
Comments Closed

“I would like to thank you very much for the invitation, giving me the pleasure to addressing you and thank you to Foreign Investors Association of Albania that organises this annual event.

The year we are leaving behind, was a year of tough challenges for the government and I am aware it was the same for the business community.
I hope that, since our first meeting in the previous event, you might see that the government is more reliable and attentive, because we really want to cooperate in order to keep our promises and to provide an entirely predictable and favourable investment environment in Albania.
During these weeks, in co-operation with EBRD, we will assemble the first Investment Council. The National Economic Council is the introduction of a new chapter in the relations with economic actors in Albania, while the Investment Council is a step further, because it will represent a section of economic policy-making in our country.
Consequently, it will also constitute a call to investors, in order to be more active and engaged, to work with us, to liberalise the market, to attract foreign direct investments, and of course, to see potential in different sectors. Thus, we will see each other more often, of course you will not simply listen to us, but in order that we listen to what you have to say.
Among the many lessons we have learned, last year gave us a very important lesson. In order that policies are effective, especially those that facilitate and provide support for the economic sector, we need to compile packages and policies that are based on your suggestions. We are not thinking of fiscal incentives, however the success of fashion industry package drafted last April, is the result of a very close co-operation with this industry. Primarily, it is the result of attention and the adoption of ideas that come from the industry itself.
Over the past year, exports from this industry grew by over $150 million. The first figures show that the package in agriculture, again, drafted in close co-operation with stakeholders in the sector and that affects 40% of our labour force, is also a promising success story.
In fact, we expect to use this model of co-operation and support with other sectors. We want to establish with you the content, form and its implementation.
Since the beginning, our economic programme was built on two main pillars. On one hand, our awareness that it was time to turn the page and keep responsibility as a government on any debt to the private sector and, on the other hand, based on our conviction that very difficult times for the economy could be overcome by building partnerships.
We and even I in your presence have stated that we can overcome a dangerous economic legacy and take the basics of a new economic model, only in co-operation with the business community and with our international partners, many of whom are represented in this association. Our action for a new economic model is not based solely on our analysis or our efforts, but also on the joint work carried out by international organisations like the IMF and the World Bank, and with the other partners.
The starting of new programmes with them was an essential help for us, but also extremely important for you, especially with the aim to create a control system that will not let us repeat mistakes of the past. I think that the figures are encouraging. The liquidation of inherited obligations not only was a way to inject money into the economy, but above all, a basic principle of the government’s obligation to you. Something that we knew was the first condition to create a sustainable partnership, to end an era which was defined by the abuse of power that led to a lessening of companies, as well as freedom and space of action of the private sector.
Consequently, legislation will provide that no Albanian government may create more arrears. The monitoring system, which is divided between the Ministry of Finance and Ministry of Economy, will provide double check to avoid this phenomenon, which, as you know quite well had paralysed the business community for years in row.
As we all know, at the beginning of our mandate we found overdue liabilities and political fines. Today we are paying all those arrears and we might say that there is no political fine on the companies operating in Albania, either domestic or foreign.
I hope that we have removed once and for all this obstacle in the way of Albanian development, by improving it and by expanding and improving the modern administrative structure, taxes and customs, and providing an open and competitive market.
In order that you do not misunderstand me, improving the rules for me and for us means more reduction of rules and improvement of modern tax infrastructure, does not mean that we can set or further increase the taxes, but to ensure that infrastructure provides more and more equality among all taxpayers and less and less informality, which harms competition, and the trajectory of the success of the companies that are used to respect the law.
Standard & Poor’s in fact reported us as improved twice last year, while the EBRD report claimed that we were leading reformers in the region. World Bank and IMF analysis confirmed our expectations with over 2% growth over the previous year. Meanwhile, 2013-2014 are two years that Albania could attract over $1 billion in foreign direct investments.
Although these are very significant improvements, our goals are much more ambitious and go beyond. Thus, foreign investments remain our focus in this year. We are very keen to share with you two very important draft laws, which will be adopted soon by the parliament; one for investments, and the other for tourism, focusing again on investments.
After a few weeks, we will also be able to give you a third draft law, which will be very important for a structural change in the relationship between government and the private sector, which is in fact the draft law on public private partnership.
Strategic investment law would allow foreign investments in key sectors to move more quickly and avoid downtime numerous obstacles that arise, or “parkour”, as your French President says. Meanwhile, the law on tourism, which will be followed by tourism packages, will give a further impetus to the development of the sector.
In implementing economic policies we are focused on a broader picture of prosperity and equality of opportunity for our citizens. From the beginning I have insisted that business, the environment, business community should give importance to its social and cultural role, because a country with higher incomes helps the business.
In my view, the ratio of partnership with the government has also affected in the public profile of businesses and investors. It is a positive change that inspires people, which promotes enthusiasm and, given the numbers, it is good for business. We are very happy to see that based on the recent evaluation of Doing Business, Albania has made very important steps forward. But being happy about it does not mean to be satisfied with it. We must and we need to do more. We are quite confident that during the next assessment report of doing business this will be shown.
The United Nations Conference on Trade and Development predicts a growth of foreign direct investment in 2015. According to their report, many companies will share their manufacturing processes by setting worldwide, according to various advantages they offer. I hope that in 2015 Albania will be considered as a destination for restoration of investments. I think that it would be not only to the benefit of citizens, but also in your acquisition. I believe that our country is ready to open more and offer more.
However, again the key word is to talk to, listen to and cooperate with each other. Let me conclude by wishing to all parties, stakeholders, investors and government, a year of very fruitful co-operation, which means, of course, more money for you and I hope more revenue for the state budget”.