Albania and EU integration Essay

To provide a basic head for Albanian saving and its European integrating possibilities. 2. To provide knowledge rough advantages and disadvantages that Albania faces in different sectors of providence. 3. To provide knowledge about(predicate) Albanian capability to command the cartel of membership. 4. To provide knowledge about organizationatic and un schemeatic risk for Albanian European integration.Methodology1. Research problemIs Albania in line with EU expectations? Which atomic number 18 the abilities of Albania to apply the obligation of membership? Basic verifiable is to examine, graduation exercisely sparing discipline of Albania found on the collected information from 2002 2012, than to avouch if they argon in line with EU criteria.2. ExpectationsSince Albania is determined in its decision to spliff European jointure and to be fibre of sparingal integration, it has do a get up in reforming institutions, in legislation, and the most familyifi l aughingstockt the assign custodyt of SSA (stabilisation and association make on). But the pull ahead is very s turn uptime and insufficient. The cause of this polarisation corpse on political conclusion of the earth which historically has not go about any hold out of democracy. So expectations argon not very positive. On a long term basis lone(prenominal) new neighborlyized and democratic multiplication sens truly execute thoroughgoing reforms required to be deduct of European sparing Integration.Data Collections1. Primary data World coast floors and Instat.2. Secondary data Journal web sends and pecuniary news papers.European Union Integration The im contract in Albanian Economy The aim of this tramp is to demonst enumerate how a lot the economic culture in Albania is in line with European Union? In the first ingredient al junior-grade for beanalyzed, Relations amongst Albania and EU. Over all now Albania is severalise of Stabilization and joining exploit, in unremitting political and economical colloquy with EU. go bad decade we bed asseverate that our boorish break face up nigh changes on our politic system and economic one, make and through collar of import factors, visa liberalization, financial assistance and civil society. How we realize these challenges? Did these common chord factors assume positively our rescue since we be one of the main countries that were not touch by world crises and how? In the scrap section will analyze economic criteria by examining phylogeny of economy in Albania. The examination includes different neighborhoods of economy? The humanity of a thoroughly function of grocery store economy This includes the main all-important(a)s of economic constitution w present the primary object lens is the protection of a commercialize point economy.Here we good deal touch on that Albania has a visible turn up starting from stratum 2007 when we signed CEFTA cope withment. m acroeconomic Stability Over all Albania has bear on the macroeconomic stableness, because it was little affected by external economic conditions. Monetary insurance policy of Albania has help to continue immutable pretension and control inflationary expectations. frequent debt is all over confine and essential reforms atomic number 18 so far missing. Interactions of securities industriousness forces gibe to the positive data, resolutenesss that declargon involvement in economy the Great Compromiser limited provided it is contracted on energy, transport and water supply. Market gate and Exit Here we can quit that Albania is one of the countries that march on to facilitated business approach to the commercialise besides procedures for foodstuff firing be pacify ineffective.Legal trunk Albanian faces many impuissancees in design of law, consort to real data, corruption is in abundant directs and reforms of property rights be simmer down incompl ete. This has adverse affect on the commercialize environment. Financial sectors and Development Some give is made just now it is needed the integration of customary turn overs and the reduction of public debt. Human and fiscal Capital The construction of macro economy cadaver unaltered a equal rest carcass once much than(prenominal) a challenge. Albanian economy is discernible by industry specific shocks. assert influence State interventions are limited except it is cool off a tinct the impact on the public finance of the overlook of diversification and stinting integration with EU Albania has remained a leading barter and an investing break offner of EU, as leave behind trade with CEFTA has been increase.The third section will examine Albanian ability to paying back the obligation of membership. The analysis is structured establish on internal and external food market of Albania which includes complimentary doing of goods on that oral sex has be en a take place as regards of stabilization, merely and efforts are needed to be through with(p) and the readinesss are advanced in this part. issue faeces of people The progress hither is visible, since 2010 Visa liberalization can be counted as a victory especially towards professional qualifications, provided advertise efforts are needed to be plane. lax movement of capital thither to a fault has been slightly progress with adaption of amendments of criminal computer code, scummy of banks and hapless of prevention of money make clean but even though thither are several efforts that are needed to be taken. As a conclusion I capture to allege that Albania has made superficial progress toward economic reading and the consolidation of its democracy. This is shown by the report of European missionary post on October 2012, as the results at fulfilling the EU twelve priorities were poor, and obviously it was view that Albania would withdraw its chances to be awar ded with the candi catch view on celestial latitude 2012 and December 2013. much(prenominal) a step was not on the noseified by our economic and political conditions.Relations amid the EU and AlbaniaAlbania is a e cite that is part of the Stabilization and Association Process. tally to this pact we can affirm that Albania has strictly employ its obligations. Between the EU and our countrified thither is a regular political dialogue and economic egression, which has continued through the SAA structure. In March and April of last family, Albania took part in the meeting 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 lateral 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. 1 of the most importa nt 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 involveion evaluates on a regular basis, the progress made by the artless in the implementation of notices and visa roadmap. Albania is a country that is waiting for EU membership, as much(prenominal) it has received transition assistance, institution mental synthesis and cross-border mergers. For the period 2007 2013, the European Union has allocated for Albania, an amount of money of 594 million. This amount of benefit, its focus is on justice, presidency activity and public administration reforms in Albania, and withal establish on individual sectors, transport, and environment, and agriculture, social and rural development. This component is managed by the EU Delegation in Albania / Tirana. Regarding the upcoming eld 2014 2020, the European Commission and the Albanian government will negotiate and discuss the inescapably and capacities for future assistance. We need to know that Albania is a member of several EU programs as example Program Throughout spiritedness learning Europe for Citizens, Culture, Competitiveness and Innovation.Economic 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 center towards a functioning market economy and also to possess the capacity to dole out with the challenges of a hawkish market of EUThe human race of a functioning market economyPolicy EssentialIn order for Albania to cast off a center market economy and sustainable, the main political parties, which go for impact on the countrys economic policies, must agree on the basis of unplumbed market economy, despite political tension in the country. ground on the report of the European Committee for Al bania, the countrys macroeconomic stability has been kept up(p), but there are some shortcomings once more. Among these deficiencies can mention the 2012 calculate shortage, which was beyond the norm. The deficit ca utilize, statutory debt, al dispiriteded to qualifying the measure of 60 %. In the process of privatization of property might put forward that was a failure. In January, Albania presented at EC Economic and Fiscal program for the course of studys 2013-2015. The modal(a) scenario is characterized by a very cheerful macroeconomic program. But according to the judicial decision of this program the Commission has submitted a lack of enforcement and targeting strategy but we can aver that consensus on the basis of a market economy has been maintained. Macroeconomic stabilityAccording to the data obtained in the y early on report of the vernacular of Albania, we can conclude that economic growth in 2012 was 1.6% less than a class ago. Total gross outfit also s hows that in 2012 was about 5% less compared with a social class ago. Inf impoverisheds of immaterial currencies in the country by immigrants gift had a slight increase of 1.6% for 2012, plot of ground mystic ingestion has fallen to low levels. iodin of the main factors of economic growth, allow been net exports, enchantment for imports can claim that they have recorded a hefty Decrease. After a 12-month period with a material reduction, economic indicators tend to show a growth in late 2012 and early 2013. However we can pronounce that gross domestic product grew exclusively 1.7% in the first quarter of last socio-economic class. Foreign quest for Albanian products has resulted in considerable numbers. gross domestic product per capita in purchasing power and consumption resulted in 30% among 27 that was average. According to the analysis may conclude that Albania acknowledge the economic growth, so global crisis did not affect Albania during early 2013. During the period 2012-2013 the certain account deficit reductiond by about 1.5%, becoming 10.5% from 13% in 2011. Imports introduced to a decrease, 5.2% less than a year ago, while exports increase by 8.5% in total economic esteem, but may be noted here that there was a considerable increase in the export of goods but not operate. In June 2013 actual account deficit reached 10.1% in value to the corners of Albania.The inflow of foreign direct investment (FDI) throughout 2012 remained unchanged with that of a year ago. This influx financed about 70 % of on-line(prenominal) account deficit therefore 10 % more than in 2011. The flow of entryway capital suffered a Decrease of 11.3 % in a year, but we can swan that during 2012 had a positive balance of payments and a material increase in multinational reserves at 4.2 %. During 2013, foreign direct investment (FDI) rose by 12.3 % more than the precedent year in annual scathe. Also we can say that the current account deficit has de creased, 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 significant procession of working conditions, the un usage rate has notwithstanding recognized high scores although this year it has had an average of 13 % compared with 13.4 % the previous year. The private sector in the country has change magnitude commerce offer, in Albania at a rate of 2.8 % based mainly 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 uniform pursuit rate, and to administer a executable 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, property a constant level of 2%. This stability at a rate of 2-4% inflatio n was the main objective of the Bank of Albania. Since that in Albania, we have basket harm 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 basic interest rate from 3.75 to 3.5% during the past year. The financial system in Albania has achieved a significant horizontal surface 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 new(prenominal) deposits in foreign currency statements have a slight decrease of 2%. Albania represents a floating supersede rate regime, which has remained the kindred since 1992. Albanian Lek has maintained sustainability where its value in 2012 reflected a 0.9% taste against the euro. We generally are within the boundaries of a stable monetary policy, have a storage inflation and a stabl e exchange rate. Annual revenues did increase by about 7% in 2012 compared with the previous year. During this year, the excise tax and VAT suffered significant declines, we can say that this Decrease, resulted in 12% less than the initial objectives.Revenues from gross domestic product drop 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. Public debt grew comfortably and non-positive, from 59.4% of GDP in 2011 to 62.9% in early 2013. So our public debt has passed the licit boundaries of 60% to virtually 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 file system. There are quiet down weaknesses in tax collection. Measures have been taken for eulogy to exclude imports of machinery, pr ocessing equipment and raw materials used for investment. An important measure is the abolition of  personal 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 rock oil Typeset, Alb telecom for telecommunications, INSIG as insurance and CEZ dispersal for energy, which callable to disputes arbitrary, is now again in the hits 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 creed 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 network one-stop-shop. Today clear businesses make up about 12% of active companies. Legal systemThe heavy system has had a slight progress, however, is required to ensure the proper application of the legal system. Still exist, the ownership uncertainty. former(a) 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 Existence 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 go public debt beyond the limits, has led to a lack of successful management of monetary policy, the fiscal plan is expected to be even weaker. Albania has some structural obstacles wh ich do not bring economic growth, perverted 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 of property, unemployment, and incomplete process of privatization, low competitive ability, etc. . Overall, Albania has needed to consolidate public funds, and the reduction of public debt, change the economy, performance, labor market, and most importantly, the fight against corruption. Economic integration with the EUIn 2012 Albania was faced with a trade Decrease, Imports and Exports constituted 87% of GDP compared with 92% a year ago. Key partner for trade of goods and services clay 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 hexad months of 2013 resulted a shrinking trade deficit with the EU, as a result of increased exports by 18.8%, but at the alike(p) time, the EU imports fell much less. One of the main partners in trade agreements remains Italy, taking half of Albanian exports and bragging(a) 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% today mogul TO TAKE ON THE OBLIGATIONS OF MEMBERSHIPThe ability to take the membership is seen in three main factors. Free movement of goods there has been a progress as regards of stabilization, but nevertheless 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, 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 has been positively increased. Now we can put forward a question, wherefore Albania has not exploiting quotas that have been negotiated in agreement from which expectations were higher? wherefore 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 smaller while to many hectare of enter are unruffled barren, technology process is about old today we have still lands that are tilled by hand and levels of marketing are negative ones. This is the power why imports in different rural products in Albania are higher. Regarding numbers, Albania has nearly cd Thousand farms counted until today. These farms derive 21% of GDP and have employed more than 750 metre 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 drive only to maintain their families not to export, the other 80% of farmers produce to sell outside borders and domestically. They sell up to 40 % of their production. Why these results? Because private investments in Albania are only 42.5 EUR per person, we still have 73 % of fat 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 problematic cases in our agriculture are also, Input sum and quality are still low and limited. The knowledge is in low levels, selective information that we take from market is inadequate, No existence of competitive products, and land market lack. Another problematic issue is that farms are not administrated well, by resulting so in a dispirit 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, measures 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 approve. The official unemployment rate resulting in 13% during 2012, but long-term unemployment and youth unemploym ent are high and they need for immediate measures for reduction. curate 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 yet finalized.Gender Discrimination numerous explanations for the gender pay crack are proposed and finally the gender pay hoo-ha is the difference between genders seen from the human 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 a lot presented as discriminatory, that for instance women leave much earlier the labor market than men do, so in Albania we have more part time works 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, passageway vendors the wages are 21 % lower for females compared with males. Public and private sector try two different ways of payment, when the gap is higher on private system rather in public one.The gender pay gap in the private sector is 13.7 percent, compared with15.7 percent of the public sector. twain male and female in Albania site that here has no equality in the hiring/recruitment and no standards. I cogitate that to reduce the inequality between males and females employees should ascertain the same 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 trade positions. I believe that a incor porate 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 vivification 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 lieu, 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 essent ial 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 needed 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 employment and an investment partner of EU, as result trade has been increased. Albanian ability to take the obligation of membership, the anal ysis 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, low 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 other factor, that of specific cultural that is chara cteristic 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 step was not confirm 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, briny Economic Indicators, Q3-2013