Economic reforms have stalled

The latest progress report underlines that most of the economic areas have had no progress, while the areas that have seen changes have had limited progress. The hottest topic remains that of the property titles. The report says that Albania has not undertaken any strategy or national plan for resolving the property titles issue, which is one of the main concerns for the economy, since it is blocking the foreign and domestic investments.

The second stalemate is that of corruption and failure to implement law. According to the report, the corruption in Albania is widely spread. Together with the weak rule of law, these two elements continue to give negative effects for the business environment.

“The companies in Albania continue to face endless trials and weak execution of agreements and bank collaterals”, the EU notes.

This has made widely spread the informal methods of executions of the agreements. The lack of political consensus for establishing the administrative court has impeded the investors in the area. As for the taxes, the report highlights the government’s efforts for equipping businesses with fiscal cases, but it also notes that only half of the businesses have installed them, and this has made the informal economic sector to be sill very large. According to the report, the high debt level remains a weakness source for the economy and requires other coercive measures. As regards the finances, EU notes that the Banking System in Albania has good capitals, but the high level of bad loans is turning into a concern.

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