Albania and EU integration Essay

To provide a ele manpowertary idea for Albanian miserliness and its europiuman integration possibilities. 2. To provide intimacy approximately advantages and disadvantages that Albania faces in unlike welkins of parsimoniousness. 3. To provide knowledge supple Albanian ability to weigh the obligation of rank and file. 4. To provide knowledge about positive and unsystematic risk for Albanian europiuman integration.Methodology1. Research enigmaIs Albania in line with EU expectations? Which argon the abilities of Albania to primary(prenominal)tain the obligation of membership? Basic objective is to examine, firstly frugalal information of Albania based on the collected entropy from 2002 2012, than to verify if they atomic modus operandi 18 in line with EU criteria.2. ExpectationsSince Albania is de terminationined in its decision to join European Union and to be severalize of Economic integration, it has do a matu roam in reforming institutions, in legislation, and the intimately(prenominal) important the assignment of SSA (Stabilization and association process). But the go along is actu completelyy s first and insufficient. The cause of this polarization be on political refining of the inelegant which historically has non faced any experience of democracy. So expectations ar not very positive. On a long term prat only new socialized and democratic generation locoweed truly execute fundamental reforms call for to be part of European Economic consolidation.Data Collections1. Primary data World Bank give notice (of)s and Instat.2. alternate data Journal websites and financial news papers.European Union Integration The im covenant in Albanian Economy The aim of this project is to express how a great deal the scotch development in Albania is in line with European Union? In the first section will beanalyzed, relations between Albania and EU. Over all now Albania is part of Stabilization and necktie process, in stiff polit ical and sparingalal dialogue with EU. Last ten-spot we tramp submit that our countrified defecate faced some changes on our politic system and sparing angiotensin-converting enzyme, through three main factors, endorse rest, financial assistance and civil society. How we realize these challenges? Did these three factors chance upon positively our prudence since we argon one of the main countries that were not affected by world crises and how? In the second section will analyze economic criteria by examining development of miserliness in Albania. The examination includes different force fields of economy? The existence of a good function of nourishment commercialise economy This includes the main essentials of economic indemnity w here(predicate)(predicate) the primary objective is the protection of a commercialise oriented economy.Here we can name that Albania has a visible fall out starting from family 2007 when we signed CEFTA agreement. Macroeconomic Sta bility Over all Albania has bear on the macroeconomic stableness, because it was keen affected by impertinent economic conditions. financial policy of Albania has help to keep stable largeness and inhibit inflationary expectations. Public debt is over modified and essential reforms atomic number 18 pipe down missing. Interactions of market forces jibe to the official data, results that utter involvement in economy remains limited un little it is think on energy, transport and pissing supply. Market Entry and Exit Here we can conclude that Albania is one of the countries that scram facilitated barter entry to the market barely procedures for market conk out are solace ineffective.Legal System Albanian faces many weaknesses in rule of law, harmonize to real data, rottenness is in considerable levels and reforms of proportion rights are tranquil incomplete. This has adverse affect on the market environment. monetary sectors and Development Some further is mad e just now it is compulsory the consolidation of state-supported finances and the reduction of public debt. Human and pecuniary heavy(p) The structure of macro economy remains unchanged similarly relaxation remains again a challenge. Albanian economy is overt by industry specific shocks. State influence State interventions are limited save it is tacit a concern the impact on the public finance of the lack of diversification and Economic integration with EU Albania has remained a leading trading and an investiture partner of EU, as result alternate with CEFTA has been improverd.The third section willexamine Albanian ability to urinate the obligation of membership. The analysis is structured based on internal and impertinent market of Albania which includes put out execution of goods there has been a progress as regards of stabilization, moreover foster efforts are inevitable to be done and the preparations are advanced in this part. Free movement of people The pro gress here is visible, since 2010 Visa liberalization can be counted as a mastery particularly towards headmaster qualifications, but further efforts are demand to be plane. Free movement of capital there also has been some progress with adaption of amendments of criminal code, low of banks and low of frust pution of money laundering but even though there are several efforts that are needed to be dish outn. As a conclusion I provoke to say that Albania has made little progress toward economic development and the consolidation of its democracy. This is registern by the overlay of European explosive charge on October 2012, as the results at fulfilling the EU twelve priorities were poor, and obviously it was candid that Albania would lose its chances to be awarded with the candidate posture on declination 2012 and declination 2013. Such a step was not justified by our economic and political conditions.Relations between the EU and AlbaniaAlbania is a country that is part of the Stabilization and Association Process. According to this pact we can say that Albania has strictly implemented its obligations. Between the EU and our country there is a regular political dialogue and economic ripening, which has proceed through the SAA structure. In March and April of decision year, Albania took part in the see organized by the Stabilization and Association Committee and the European Council in which they discussed the reform of public administration. Albania was involved in this dialogue with multi belatedral economic focus with the Commission and the EU member countries, with focus, preparation and coordination of domestic economic policies to integrate economic and monetary union in the EU. One of the most important achievements of Albania was the liberalization of visas for citizens traveling to the Schengen area.This agreement entered into force in December 2010. Immediately after this agreement and until today, the committee evaluates on a regular basis, the progress made by the country in the implementation of rules and visa roadmap. Albania is a country that iswaiting for EU membership, as such it has accredited transition assistance, institution building and cross-border mergers. For the electric current rate 2007 2013, the European Union has allocated for Albania, an marrow of 594 million. This amount of benefit, its focus is on justice, politics and public administration reforms in Albania, and also based on individual sectors, transport, and environment, and cultivation, social and rural development. This component part is managed by the EU Delegation in Albania / Tirana. Regarding the upcoming years 2014 2020, the European Commission and the Albanian government will negotiate and discuss the inevitably and capacities for future assistance. We need to know that Albania is a member of several EU programs as example Program Throughout life learning Europe for Citizens, Culture, Competitiveness and Innovation.Eco nomic CriteriaIn 1993 after examination of economic development and the state in which Albania was, in Copenhagen European Council stated that, to be part of the European Union, Albania needs to be foc employ towards a functioning market economy and also to have the aptitude to cope with the challenges of a hawkish market of EUThe existence of a functioning market economyPolicy EssentialIn order for Albania to have a focused market economy and sustainable, the main political parties, which have impact on the countrys economic policies, must agree on the basis of sound market economy, despite political tension in the country. establish on the report of the European Committee for Albania, the countrys macroeconomic stability has been maintained, but there are some shortcomings again. Among these deficiencies can acknowledgment the 2012 budget shortage, which was beyond the norm. The dearth caused, statutory debt, allowed to pass the measure of 60 %. In the process of privatizatio n of property might say that was a failure. In January, Albania presented at EC Economic and Fiscal program for the years 2013-2015. The culture medium scenario is characterized by a very optimistic macroeconomic program. But match to the assessment of this program the Commission has submitted a lack of enforcement and targeting strategy but we can say that consensuson the basis of a market economy has been maintained. Macroeconomic stabilityAccording to the data obtained in the annual report of the Bank of Albania, we can conclude that economic growth in 2012 was 1.6% less than a year ago. Total gross output also shows that in 2012 was about 5% less compared with a year ago. Inflows of foreign currencies in the country by immigrants have had a slight sum up of 1.6% for 2012, composition hole-and-corner(a) consumption has fallen to low levels. One of the main factors of economic growth, have been net exports, opus for imports can say that they have record a considerable Decrea se. After a 12-month period with a operative reduction, economic indicators tend to show a growth in late 2012 and early 2013. However we can say that GDP grew only 1.7% in the first quarter of last year. Foreign demand for Albanian products has resulted in considerable numbers. GDP per capita in purchasing power and consumption resulted in 30% among 27 that was average. According to the analysis may conclude that Albania recognize the economic growth, so global crisis did not affect Albania during early 2013. During the period 2012-2013 the incumbent account deficit precipitated by about 1.5%, worthy 10.5% from 13% in 2011. Imports introduced to a go down, 5.2% less than a year ago, while exports increased by 8.5% in total value, but may be noted here that there was a considerable increase in the export of goods but not services. In June 2013 current account deficit reached 10.1% in value to the corners of Albania.The inflow of foreign take up investment (FDI) passim 2012 r emained unchanged with that of a year ago. This influx financed about 70 % of current account deficit therefore 10 % more than in 2011. The flow of incoming capital suffered a Decrease of 11.3 % in a year, but we can say that during 2012 had a positive balance of payments and a world-shaking increase in international reserves at 4.2 %. During 2013, foreign direct investment (FDI) rose by 12.3 % more than the precedent year in annual impairment. Also we can say that the current account deficit has decreased, but again is an important aspect that affects the economy of our country especially considering the volatility of FDI and remittances. Throughout 2012 we can say that there has been a square improvement of working conditions, the un conflict rate has however recognized gritty score although this year it has had an average of 13 % compared with 13.4 % the previous year. The private sector in the countryhas increased employment offer, in Albania at a rate of 2.8 % based mainl y in the agriculture sector of the country. By 2013, according to statistical data, unemployment continues to be high again, with an improvement of about 0.2 %. To maintain a constant interest rate, and to administer a possible inflationary trend, was used a sound monetary policies that brought the countrys macroeconomic stability.The inflation rate in the country declined by 1.5% compared with a year ago, belongings a constant level of 2%. This stability at a rate of 2-4% inflation was the main objective of the Bank of Albania. Since that in Albania, we have basket price fluctuations this reflected in a slowdown of annual inflation from 2.5% in 2012 to 2.2% in 2013. In an effort to stimulate economic growth in the country, the Bank undertook several measures, as for example the reduction of the sanctioned interest rate from 3.75 to 3.5% during the past year. The financial system in Albania has achieved a significant degree of Euroisation. Loans in Euros remained at a level of 61% of deposits in July the past year, compared with 64% in 2012. While in call of other deposits in foreign currency statements have a slight decrease of 2%. Albania represents a floating exchange rate regime, which has remained the akin since 1992. Albanian Lek has maintained sustainability where its value in 2012 reflected a 0.9% appreciation against the euro. We loosely are within the boundaries of a stable monetary policy, have a storage inflation and a stable exchange rate. annual revenues did increase by about 7% in 2012 compared with the previous year. During this year, the excise impose and VAT suffered significant declines, we can say that this Decrease, resulted in 12% less than the initial objectives.Revenues from GDP fell by 25.1%, which were considered in 2011, to 24.5% in 2012. In terms of GDP spending, can also say that suffered a decrease of 0.6% compared with a year ago. Public expenditures represent just 4.6% of gross production, from 5.4% the previous year. Publ ic debt grew considerably and non-positive, from 59.4% of GDP in 2011 to 62.9% in early 2013. So our public debt has passed the legal boundaries of 60% to close to 3%. In the area of tax administration, we can say that there have been significant improvements in the electronic payment of taxes and also the tax filing system. There are still weaknesses in tax collection. Measures have been taken for approval to toss imports of machinery, processing equipment and raw materials used for investment. An important measure is the abolition of person-to-person income tax. Interplay of market forcesThe countrys economy is dominating the private sector, which constitutes about 80% of GDP. Privatizations have been the basis for several state companies to place as Alb petrol oil Typeset, Alb telecom for telecommunications, INSIG as insurance and CEZ Distribution for energy, which callable to disputes arbitrary, is now again in the hands of the state. There are counted about 11 new agreements for investments in agriculture, in 2012. In the energy sector we have also signed agreements for investment in hydropower opening. Privatization of three HPP has a monetary value of 109.5 million. However, I can say with conviction that state involvement in the economy is limited. Market entry and exitRegistrations and licensing, of businesses have became more restrictive, and has faced a considerable increase of about 8% compared with a year ago. This was made possible through the established entanglement one-stop-shop. Today licensed businesses make up about 12% of active companies. Legal systemThe legal system has had a slight progress, however, is necessary to ensure the proper application of the legal system. Still exist, the ownership uncertain(p)ty. other weakness of our state law is delays of legal proceedings, more harmful to the business.The capacity to cope with competitive pressure and market forces within the Union beingness of a functioning market economyAlbania has maintained macroeconomic stability through a market economy, but the economic slowdown last year causes the increase of the current deficit. This deficit has resulted in a decrease in domestic production, low inflation policy due to boas objective. This deficit and rising public debt beyond the limits, has led to a lack of succeederful management of fiscal policy, the fiscal plan is anticipate to be even weaker. Albania has some structural obstacles which do not direct economic growth, contrary depleting it. Even though we have a certain advantage, barriers and other weaknesses continue to affect our economic system. Here we can mention the right ofproperty, unemployment, and incomplete process of privatization, low competitive ability, etc. . Overall, Albania has needed to consolidate public finances, and the reduction of public debt, strengthen the economy, performance, labor market, and most importantly, the fight against corruption. Economic integration with the EUIn 2012 Albania was faced with a raft Decrease, Imports and Exports constituted 87% of GDP compared with 92% a year ago. Key partner for trade of goods and services remains the EU. From the statistical data we say that EU exports in 2012 accounted for 75% of the total, and 62% of total imports. In the first six months of 2013 resulted a shrinking trade deficit with the EU, as a result of increased exports by 18.8%, but at the a manage time, the EU imports fell much less. One of the main partners in trade agreements remains Italy, taking half of Albanian exports and giving third Albanian import. Italy also remains one of the most important investors in Albania although much investment during the last year has seen a decrease. Export Import, with CEFTA countries has slowed by 27% which resulted in 2011, to 3% todayABILITY TO TAKE ON THE OBLIGATIONS OF rankThe ability to take the membership is seen in three main factors. Free movement of goods there has been a progress as regards of stabili zation, but further efforts are needed to be done and the preparations are advanced in this part. Free movement of people The progress here is visible, since 2010 Visa liberalization can be counted as a success especially towards master key qualifications, but further efforts are needed to be plane. Free movement of capital there also has been some progress with adaption of amendments of criminal code, low of banks and low of prevention of money laundering but even though there are several efforts that are needed to be taken. agriculture and rural developmentBased on the last economic report of EU, Albania is one of the countries that have not utilized the negotiated quotas for the agriculture products however we can say for sure that exports have been increased with countries that Albania has bilateral agreements. Exports and Export level per GDP hasbeen positively increased. Now we can raise a question, wherefore Albania has not exploiting quotas that have been negotiated in agr eement from which expectations were higher? Why our agriculture products do not have comparative advantage. Regarding to Ministry of Agriculture in Albania, food products and consumer production of agriculture sector is in low rates of trade.Farms are considered small while to many hectare of background are still barren, technology process is almost old today we have still lands that are tilled by hand and levels of marketing are ostracize ones. This is the spring why imports in different agricultural products in Albania are higher. Regarding numbers, Albania has nearly 400 Thousand farms counted until today. These farms derive 21% of GDP and have apply more than 750 thousand persons. We should know agriculture land is 0.2Ha/ person, while 20% of poor people are farmers, in this 20% we have 93.5% of them who incur only to maintain their families not to export, the other 80% of farmers produce to exchange outside borders and domestically. They sell up to 40 % of their producti on. Why these results? Because private investments in Albania are only 42.5 EUR per person, we still have 73 % of productive land tilled by hand. Public investments are 15 EUR per person, while we have firstly undistributed land from 98.5% of land that is returned to farmers 85.5% of it is not registered.Other tortuous cases in our agriculture are also, Input quantity and quality are still low and limited. The knowledge is in low levels, Information that we take from market is inadequate, No existence of competitive products, and land market lack. another(prenominal)(prenominal) problematic issue is that farms are not administrated well, by resulting so in a lower level of competitiveness toward other countries. Social policy and employmentIn terms of labor law, labor code is still in a process of approval, a challenge for our society remains the work of children ages 5-17 years old. This trend varies in 7.7% of all children in our country. In terms of health and safety at work, me asures are taken to prevent accidents at work and improve working conditions. We can say that the number of accidents at work in 2012 was reduced significantly compared with 2011, but still further improvements must be hatched. As regards employment policy, is being designed an employment strategy for 2014-20. This design is still not sanction. The official unemployment rate resulting in 13% during 2012, but long-term unemployment and youth unemployment are high and they need for immediate measures for reduction. Minister of Labor, Social Affairs and Equal Opportunities has approved three cases for persons with disabilities. Guardian of a person with disability is paid by the Albanian state. The inclusion of supervision and review of employment of individuals with disabilities in employment offices. Design activities for sign language in schools. These projects are not and finalized.Gender DiscriminationMany explanations for the gender pay gap are proposed and finally the gender pa y gap is the difference between genders seen from the forgiving development perspective, such as education, qualitative skills and experience that men and women show to the workplace. By this point of view differences between genders are often presented as discriminatory, that for instance women leave much earlier the labor market than men do, so in Albania we have more part time full treatment for women. By analyzing the datas we notice that the pay gap for professional or scientist women (engineers, mathematicians, financial experts, and medical doctors) in Albania is lower than man, in terms of numbers the take nearly 2.4% less than men do. In cases like basic occupations such are, construction, fast food, street vendors the wages are 21 % lower for females compared with males. Public and private sector generate two different ways of payment, when the gap is higher on private system instead in public one.The gender pay gap in the private sector is 13.7 percent, compared with15 .7 percent of the public sector. Both male and female in Albania site that here has no equality in the hiring/recruitment and no standards. I think that to reduce the inequality between males and females employees should follow the uniform recruitment standards for both. This should be implemented also to the recruitment for managerial positions, in order to increase the number of women applying for these job positions. I believe that a unified standard of recruitment would reduce considerably the gap.ConclusionAs a conclusion I have to say that Albania is a country that is part of theStabilization and Association Process. According to this pact we can say that Albania has strictly implemented its obligations. Today Albania is a member of several EU programs as example Program Throughout life learning Europe for Citizens, Culture, Competitiveness and Innovation. Based on EU conditions we must say that Albania has made improvement. The existence of a good function of market economy This includes the main essentials of economic policy where the primary objective is the protection of a market oriented economy. On its macroeconomic situation, we conclude that over all Albania has preserved the macroeconomic stability, because it was less affected by external economic conditions. Monetary policy of Albania has help to keep stable inflation and control inflationary expectations. Public debt is over limited and essential reforms are still missing.According to the official data, results, states involvement in economy remains limited but it is focused on energy, transport and water supply. Albania is one of the countries that have facilitated business entry to the market but procedures for market exit are still ineffective. Albanian faces many weaknesses in rule of law, according to real data, corruption is in considerable levels and reforms of property rights are still incomplete. This has adverse affect on the market environment. Some progress is made but it is need ed the consolidation of public finances and the reduction of public debt. Regarding to Human and Fiscal Capital the structure of macro economy remains unchanged also informality remains again a challenge. Albanian economy is tangible by industry specific shocks. Albania has remained a leading trading and an investment partner of EU, as result trade has been increased. Albanian ability to take the obligation of membership, the analysis is structured based on internal and external market of Albania which includes Free movement of goods there has been a progress as regards of stabilization, but further efforts are needed to be done and the preparations are advanced in this part. Free movement of people The progress here is visible, since 2010 Visa liberalization can be counted as a success especially towards professional qualifications, but further efforts are needed to be plane. Free movement of capital there also has been some progress with adaption of amendments of criminal code, lo w of banks and low of prevention of money laundering but even though there are several efforts that are needed to be taken. .Based on the study the situation with the income inequality in Albania is similar to other countries of the region and maybe beyond the region. This is caused from the same factors and causes negative effect on society. The gender gap in Albania has even another factor, that of specific cultural that is characteristic for Albanian environment to prohibit this Albania should increase the harmonization of the community, working conditions, health and securities and Equal opportunities. Albania has made little progress toward economic development and the consolidation of its democracy. This is shown by the report of European commission on October 2012, as the results at fulfilling the EU twelve priorities were poor, and obviously it was clear that Albania would lose its chances to be awarded with the candidate status on December 2012 and December 2013. Such a st ep was not justified by our economic and political conditions.ReferencesEuropean report for Albania 2012-2013http//ec.europa.eu/enlargement/pdf/key_documents/2013/package/al_rapport_2013.pdfBank of Albania Annual Report 2012, Production date 21.06.2013, Author Bank of Albaniahttp//www.bankofalbania.org/web/Annual_Report_2012_6609_2.phpInstat, Conjuncture, principal(prenominal) Economic Indicators, Q3-2013