“Standard and Poor,” one of world’s leading financial search and analysis companies, notes that the prolonged Albanian political crisis is turning into the main economic danger for the country.
The “Standard and Poor evaluation report on Albanian Economy, sent some days ago to the Finance Ministry,” says that the extreme polarization of the political climate has seriously damaged the government’s ability to undertake effective policies and reforms.
According to their experts, this situation not only seriously endangers Albania’s progress towards European Union, but it is also a threat to the economical growth and public finance stability.
The company has left unchanged the “B+” evaluation, with a steady perspective on the government’s debt. But, as the report explains, Albania’s public debt level is very high and this evaluation could be under pressure, if the government will deviate from the actual debt program, or by outside factors.
“Standard and Poor” evaluates that the relatively high economic growth, in comparison to other regional countries, is a positive factor for the public finances.
But their experts also emphasize that the budget could turn under the pressure of other factors, that include increasing pension expenses, especially after the contribute reduction on May 2009.
Other dangers, according to the report, are high governmental expenses on the verge of elections. In the view of these dangers, the report proposes the enactment of a fiscal law that limits the government to deviate from the approved fiscal programs.
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