Joint press conference by Prime Minister Edi Rama Edi Rama, the Minister of Finance and Economy, Anila Denaj, and the Minister of State for Reconstruction, also Coordinator of the National Plan Albania 2030, Arben Ahmetaj:
Prime Minister Edi Rama: I am glad that we meet in these premises after such a long time. Today I believe the reason is worth the symbolic and this reunion in this very hall, because, even though no priority is given to the good news stories by the media, especially when it comes to the good news about economy, yet, actually, we have actually received very good news from capital markets yesterday and the fact is that we have achieved a result which encourages us a lot and guarantees the new national plan ‘Albania 2030’ for further economic and social transformation by addressing reconstruction and recovery because Albania unlike other countries, received two consecutive blows, as well as our ambition for a fresh and strong impetus to take economy and employment forward in the next years.
Of course, as soon as the new National Plan completes in the next few weeks, a special event will be held to present the plan. As the Minister of State, also coordinator of the work of all ministries on the new National Plan, has already announced it won’t merely be a development document on paper, much less a strategy on a written document that has then to be translated into measures, but it will be a short-term, medium-term and long-term action plan.
What happened with Albania in the capital markets yesterday is actually precisely what happens with any country, when the turn to the international capital markets and which are first assessed in terms of the situation and all economic parameters and it is also very important to underline that the country is assessed over the risk. I am sorry that this extraordinary news has not received the proper attention, but I am also sorry about that part of the attention the opposition has paid to this news. The opposition is continuing to play their old tune, which is completely inappropriate in this case and during these times, because we are talking about Albania here, about the state and the Albanian people. Obviously it is the government’s merit that we received such an evaluation from the capital markets following two blows, which normally are a good reason to see things with a sense of hesitation in terms of the risk, but indeed we secured a zero prime rate.
On the other hand, it is deplorable that opposition remarks sound as if talking about the flat parafoil kites without a tail. I don’t know whether remember the childhood kites and our passion for the kites, with the tail being a very important element of the kite. Understandably the parafoil kites were much more beautiful and more effective than the sort of simple kites made out of an A4 paper. The parafoil kites had a symmetric body skeleton and an inviting shape, but they failed to take off and fly when lacking a tail and I am sorry that the opposition claims resemble to the flight of a simple paper kite and DP speaks about happiness for receiving a loan when they should grieve over the fact that we received a loan.
However, this is not the case. Quite the opposite is true.
We have received a confirmation from the international markets and it is a confirmation that makes Albania primarily a totally reliable country vis-à-vis the international institutions. Secondly, this provides us the opportunity to expand the base of financing the economy and investment. That’s why I stated this is a base that ultimately consolidates our new National Plan Albania 2030.
I won’t go into further details, but I would recall a single detail, which the cabinet members can further elaborate on, if you are interested in. When the country turns to the international capital markets, the process is an open one, with the goals not always being compatible with the market’s response and sometimes, as it was the case of Albania before we took over the government and when the country was government by those who lament the today’s result, but they subscribed for a 7% and instead secured a loan for a yield of 11%. So, the country emerged with a terrible debt burden.
All those now ridiculing by saying that we just received another loan, I would remind them any person having to do with a banking system, as well as with the household finance and income knows quite well that it doesn’t take the desire to apply for a loan, because they who provide a loan they do so based on trust and trust on its part is based on performance, figures, accounting books and other documents. This is a confirmation, downplaying all the opposite things that have been said and are being said on daily basis about the country’s financial situation. In other words, this is an appraisal of the country’s book of accounts.
Before I give the floor to the Minister of Finance firs and the Minister for Reconstruction then, who has played a specific role in whole this process in his capacity as a coordinator of the National Plan, but also thanks to his previous experience, I would like just to read the message that I was pleased to receive from the CEO of the Euro Child Bank, who also was our consultant.
There is always a bank that accompanies countries in these processes and I want to share it with you, not to add the deserved praise for the government, but for the common satisfaction at this crucial moment for the economy, for the future and the country’s economic prospects:
“Dear Prime Minister, together with the colleagues we have completed the Eurobond issuance. It is a 650 million-euro Eurobond with a seven-year maturity and a 3.625% interest rate.” I happen to hear something else and I want to share it with you so that we can laugh together. None of us, neither me, nor you are bankers, but everybody realizes and knows this. In her remarks, an opposition representative remarkably said: “the longer maturity the lower the interest rate.” Would you imagine turning to the market and apply for a loan and the bank tells you that the loan with a one-month maturity has a higher interest rate, whereas a loan with a maturity of 100 years has a lower interest rate. Can you imagine this?! This is the economic policy and the new vision of the old republic!
I apologize for this, but this was just for everyone to smile, because it is the day to smile, a friendly smile at our colleagues in opposition, whom we understand because they are out of the institutions, out of the procedures and processes and the memory is of course a valuable thing, yet one tends to suffer from the memory loss when being not in touch with the reality. Moreover, their memory weighs heavily when it comes to the past Eurobond issuance, which, if we were to compare them, would sound as if comparing the peacetime with the wartime.
Albania is the first among the Emerging Markets emerging with a zero prime rate from a new bond issuance. It is a tremendous success if we are to consider the today’s markets situation, as they remain quite volatile, as it as it constitutes a significant investment base. But investors or bidders offered 3.1 billion euros or around 4.8 times more than the country had subscribed. So we came up with a goal and they offered us 4.8 times more.
How an unreliable or a non-solid borrower was offered an amount 4.8 times higher that the borrower is seeking to borrow?
The answer is clear: this is because the borrower, the Albanian state in this case, is a credible and reliable one. The government’s financial performance and its books of accounts, not seen through the viewpoint of the political commentators who are recently dealing with the economic issues too or the politicians who are tasked with dealing with economy, even though they are totally incompetent in this domain.
“The same goes for the yield that dropped significantly from a 4.125% rate to 3.635%, allowing Albania to plan a very serious economisation for the debt settlement, which of course makes us very happy,” said the official of one the world’s most prestigious banks, who offered consultancy in this process. If we are to draw a comparison – he adds – the last Eurobond issues by North Macedonia 15 days ago with a yield rate of 3.95%, Albania’s case speaks for itself, given the fact the North Macedonia has a BB+ rating, much higher than Albania’s rating, but the country was assessed with an answer that speaks for a de facto better rating.
I providing this example, because I do not believe that these are the best comparisons to be drawn, but since comparing with other countries in the region has become a trend lately, I think this is example is simply worth it.
He concludes by saying that “as a reminder, the Albania’s Eurobond in 2018 was issues at a 3.55% interest rate and we are specifically happy about the fact that we stand very close to the country after sustaining two consecutive blows, namely the earthquake and the pandemic, which, if Albania had to have not a good performance of its parameters and macroeconomic indicators, the country would have also suffered another blow in terms of the evaluation by the international capital markets. I am also very happy about the cooperation with the two ministers.”
I will give the floor to the Minister of Finance to provide a brief technical description and then to the Reconstruction Minister. I am here available to take your questions if you have any.
The Minister of Finance and Economy Anila Denaj: The Republic of Albania successfully issued a 650 million-euro Eurobond in international markets with a 7-year maturity, with a coupon rate of 3.65% and interest rate of 3.625%.
To further clarify what Mr. Prime Minister said few minutes ago, I have to add that there were actually 190 investors in the international markets, in Europe and US, who bid more than four times amount we subscribed. In this transaction, Albania was assisted by the IMI bank, GP Morgan, City Bank, Reaiffeisen Bank International and two consultants, the financial consultant “Rothschild & Co” and legal consultant “Dekert LLP”.
As we have earlier announced, the funding secured through the Eurobond will be used to finance priority projects, repay the previous 250-million Eurobond issued in 2015 and meet the financing needs in 2020.
I would like to reiterate that the two-day experience of the Eurobond roadshow together with the Reconstruction Minister Ahmetaj confirmed once again, non only the increased interest of the international creditors, but also their evaluation for the government economic reforms and fiscal consolidation over the years, as well as the confidence in implementation of this fiscal consolidation over the next five years, despite the government’s recovery plans.
Minister of State for the Reconstruction, Arben Ahmetaj: I will focus on the Albania 2030 plan, by certainly associating the Eurobond process with the growing confidence and trust in the Republic of Albania and the Albanian government.
The June 9, when the Eurobond was issued, is equally successful as Feb 17, when the International Donors’ Conference was held. The Feb 17 this year showed trust of the international community and solidarity in support of the Albanian people and authorities to cope with the powerful earthquake, incomparable to any previous quake that has ever hit Albania. June 9 too was a reconfirmation of the trust and confidence in Albanian economy, the country and its authorities.
I would like to share with you two episodes from different times. One episode has taken place in 2010. The rhetoric question one would make is: Why back then Albania’s Eurobond was treated at a yield of 7.5% and was issued at a interest rate of 11%? Why didn’t they treat us at a 3% or 3.5% rate?
The simple answer is, because we are not trustworthy. Albania back then was seen as a high-risk country and authority. I want to remind you as economy reporters, many of you with a long working experience, why the World Bank refused to grant a loan of $300 million to Albanian government in 2012? Because the then authorities were not trustful, the country and its economy were plunging into crisis.
Let’s consider the year 2015, when this government launched its reforms? Why the risk premium was lowered? I would explain to citizens what a risk premium is. When someone, a country, an entity turns to the capital market to secure a loan, they are considered high-risk, low-risk and risk-free. We were classified as moderate risk premium, because we had yet to yield results and deliver on reform efforts.
What happened in 2018, when our reforms started to yield their fruits for the citizens and the economy? We are considered free-risk premium country.
What happened yesterday? Yesterday – and episodes are very important and should be shared with the citizens and then clarify whether it is a loan and, if yes, what kind of loan – Albania was for the first time classified a zero-risk country just because of the continued reforms, the transparency over Albania’s financial situation and the government’s leadership in delivering major economic and institutional reforms. The important episode was recorded a day ago –I want to share it with the citizens – as we started with an initial price of 4.125. Those running the household economy and involved in banking know it quite well, and our two attempts to lower the interest rate to 3.625 and zero risk premium, the investors withdrew. But then investors offered over 3 billion, which clearly shows their unwavering confidence in our reforms and fiscal consolidation.
Before coming to this press conference, I came across a statement issued by an opposition representative and it was only then I realized the seriousness this conference deserves. The Premier referred to North Macedonia- although it is not fair to compare with others since every country makes its own efforts – but North Macedonia has a BB credit rating, whereas Albania has a B1 rating, which means we are do not rank equally by the international ranking agencies, yet the capital market treated us better. But when I heard the opposition representative saying that the longer loan maturity date the lower the interest rate, I would to ask the citizens who have a bank loan or treasury bonds. Is the 12-month, the five-year or 10-year maturity date the same? I felt really sorry, because I will have to debate with these people for the country’s interest, but we should behave responsibly. It is not a loan in conventional terms, but a test for the country. Of course, every country turns to the international capital market. The United States issued a bond worth $2 trillion most recently. Countries like Croatia, North Macedonia, Zimbabwe, and Serbia have also turned to international market, but not everyone is treated equally by the market. What would have been saying if we were to return back home and tell that we were denied the Eurobond issue because we are not trustworthy, or we secured a Eurobond at an 11% interest rate?
The Eurobond, as the Premier said, will be used to back the 2030, finance the government’s operations, support high priority projects, support the expanded social package, the wage hike in various sectors, as the Premier has already announced. Thank you!
Prime Minister Edi Rama: Hoping that you will respect the reason why we are here today and you will not just try to get the scoop and report on the current political events. I can answer to other questions if you promise that the Eurobond issuance will be a separate news story. If you promise this, I will then answer to other questions too. However, as far as this topic is concerned, I would conclude by saying please help me and help us to disseminate and convey this news story to all of those who have just emerged from a very difficult situation and they are the generators of new jobs through a small business activity that employ themselves, their families and other people and who, according to me, are the most exemplary men of Albania we want, a country where it is difficult to find the job you want. It is not easy at all and this is the case everywhere, but whoever wants to earn a living through work he or she launches a small business.
To establish a direct correlation between the yesterday’s success and its direct impact on the daily life of those involved and running a small business, taking notice of what the Minister said a little bit earlier. What were we supposed to say and think and how complex our path towards the future would be if yesterday we were to emerge just like Albania emerged under the previous government with a Eurobond at a 11% interest rate.
We would have certainly found ourselves in a completely different situation and we would be unable to say everything from what we will be further saying and, above all, we would have been unable to do whatever we plan to do under the National Plan Albania 2030. The first thing I can say today, as I have already hinted earlier, we will forward the revised state budget to parliament before the summer recess. This is a normal thing because of the situation. We will revise the fiscal package to provide relief to small businesses by scrapping the profit tax and this is not a campaign pledge and the profit tax will be removed not only this year, but until 2029. No profit tax will be imposed on the small businesses and, as the Minister has clarified, we are also mulling plans to scrap VAT too.
With the yesterday’s outcome from the Eurobond, I can confirm to all those involved in small business that it is for sure we will also scrap the Valued Added Tax on small businesses. We will confirm the time and the annual turnover limit that small businesses be exempted from having to pay VAT, if not until 2029. This is will be stipulated by law due to be approved in parliament.
This means that all those who create jobs for themselves and their families will be the most favored people in Albania and all Albanian migrants who have savings should see Albania as an opportunity to return back and launch a small business, so that they and their families can generate income and earn better living. This means that all projects on the country’s agri-tourism industry will benefit a 100% tax relief.
The proposal doesn’t include local taxes and tariffs and the social insurance contributions. They should follow the lead of many other emigrants and do what they are already doing by turning their family, private homes in the countryside, right there where earning a living seems impossible, but they can actually generate more income for themselves and their families rather than working in Germany or Italy by investing and building an agri-tourism business. This is not a daydream, like the one I used to experience when we launched this project, but it is a dream that has come true for a small group of migrants who have already done so and are now reaping benefits.
It is definitely almost unimaginable that one can grow crops in the village of Kuc, which we visited recently, and send the locally-grown produces to the market. It is really difficult for a number of various reasons, including the terrain, the infrastructure, yet there would find yourself at the heart of a paradise, where it would take just establishing your agri-tourism business and the others will come to your business instead. You will no longer need to go to the market, but it is the latter that comes to you, it is the tourists and local visitors who will be coming to you thanks to the nature’s beauty, tradition and everything you offer. This is just an example and there are many other examples that can come true.
Most importantly, thanks to the Eurobond issuance yesterday, we can openly state today, yes, we can fully afford scraping profit tax and the Value Added Tax on the small business and the bill will be forwarded to parliament within this session. You are now simply in the position of the person who is respected and highly esteemed for generating job for yourself and others and you are the closest ally of the state to hold the tranche of the control over the big business that uses the small business to involve in evasion practices, and precisely because of the calculations, taxes and figures, inspectors and inspections, the small business often chooses to become a collaborator in fiscal evasion practices. You will no longer see inspectors, asking you whether ‘you issued the coupon or not.”
Free people in their homeland, individuals who generate employment, work and send home whatever they earn through work and we will charge not a single penny in profit taxes. No other country applies zero profit tax policy on small business. But we need such a policy today and for some years to come as part of this great national development plan.
I come across statements over alleged raised taxes on small business. We have raised taxes on higher earners. We haven’t increased taxes on small earners. All those involved in small business activities, even prior to the introduction of the zero profit tax rate, currently pay less in taxes than they used to pay when those who claim over alleged tax increase were in office. They applied a 10% flat tax rate that forced the sanitation worker of this building pay more in income taxes than the Prime Minister. But this is no longer the case today.
Today I pay much more than the sanitation worker and this is the most normal thing to happen in the world and history helps us put things in perspective.
All Albanians should realize that when I talk about accomplishments and successes in delivering economic reforms, I have in mind the progress compared with the past. I don’t mean that we have reached the horizons of our desires and ambitions and, of course the desires and ambitions of all people and I am not asking them to stand up and give us a standing ovation for these wonders, which are not wonders, but significant achievements through hard work and great sacrifices and the yesterday’s Eurobond was a confirmation.
Do you have any question about this issue, since many of you are economics reporters?
Mr. Prime Minister, given that you just announced the initiative to scrap VAT on small business, two years ago the government used to argue that VAT is a tax on consumption and not on business. Have you changed your position? As part of this question, I would like to ask you, what will happen with the fiscalization reform that you have been promoting for more than a year and a half, precisely to protect the VAT chain and fight evasion and how the budget revenue will be collected. I also have a question about the Eurobond, if I may.
PM Edi Rama: It is not the one to change our position, but it is Albania that has changed. If we were not to achieve such a result yesterday, but the one that the previous government achieved, I wouldn’t announce this initiative today. It is as simple as that. What we have received from the capital market yesterday provides us with the opportunity to expand our financing base for investment.
Will the fiscalization reform include big business only?
PM Edi Rama: Of course, completely removing the profit tax and VAT from the small business shoulders doesn’t mean that the small business will be removed from the system. It means a total readjustment of the system and the small business’ obligation to join a much bigger and reliable network of the state inspectors vis-à-vis the big business. This will be associated with a system, which doesn’t absolutely exclude the business-business fiscalization. Which means that the initial step towards fiscalization, i.e. the digitalization of the relations and transactions will be a business to business fiscalization and it won’t be a consumer to business or business to consumer relation, meaning that the small business will no longer be a kind of the Chinese boxes or the Russian stacking dolls of decreasing size placed one inside another by exploiting small business, but the latter will be the filter to check any transaction and move by the big business. In this aspect, it is a whole system that needs to be established, but this is the principle that I just announced, but will be formally launched as part of the national development plan. I pointed it out as a straightforward example.
Why what happened yesterday is a good thing? Someone at home may listen and say: “Well, we know all these things, yet neither the GDP growth rate, nor the deficit is eatable, in the sense that performance is a very good one, but we benefit nothing. I agree on this rating thing, but what do I personally benefit?” What happened yesterday comes with a guarantee for a package of more aggressive investment we plan to launch in the country’s economy, starting with the infrastructure, the energy sector, education and so on and so forth. Albania 2030 is a transversal program. It not simply just an economic program, but also a social one. The Minister for Reconstruction put emphasis on the expansion of the social support and we are seeking to expand social support, but all these plans can be implemented on secure financing and investment basis that lead to revenue growth.
How the revenues will increase? We believe that we will considerably lose in tax revenue. Scrapping the profit tax and VAT in small business will be translated into significant decrease in state budged revenue collections today, but this shouldn’t be seen as a loss, because we don’t consider as such what the job creators earn as common citizens in Albania.
On the other hand, we will significantly boost the control and inspection capacities on big businesses that make huge transactions and are to be blamed for the largest share of fiscal evasion. We have raised taxes on high earners. We don’t see the revenue growth as tax increase, but as an ever increasing formalization of the economy. The fiscal amnesty, due to be adopted by parliament soon, is part of this too. We will provide all Albanians the opportunity to legalize their income through earning wages by working, but the amnesty will be coupled with the precondition that harsher penalties will be imposed on evasion and hiding money. So it is all a system.
It will be a very ambitious program based on what have already created. Today we have solid foundations, which were best confirmed yesterday and which help us generate a bigger and stronger ambition in the future. We will go on with the reconstruction and recovery of the country.
Is there any other question?
Something about the Eurobond…
PM Edi Rama: Again?! Given what you heard today, you could actually produce a movie, not just a three-minute news story. Therefore, if you consider it necessary, then the two ministers will be available for exclusive interviews, since you are a rare species in the media market and deal with the economy and its performance seriously based on data and statistics, and not based on political and analytical way.
Mr. Rama, you and Minister Ahmetaj actually mentioned the Eurobond earlier, saying it will be used to support the recovery plan and several sectors. More concretely, will it be used to support infrastructure projects, increase salaries, as Mr. Ahmetaj hinted few minutes ago? Where exactly, on new roads? To support pension and salaries hike? Could you tell something more, except refinancing a part of the loan, as the Finance Minister Denaj said? How will you proceed?
PM Edi Rama: Such a younger economics journalist and such an old painter like me share the same level of understanding and knowledge over the economy, as far as I can see, hence I can afford answering to your question. The Eurobond is not a loan to support a certain project. In other words, we haven’t applied for a bank loan by presenting the project to the bank. The Eurobond is something completely different. It is an investment of the international capital markets in our country and based on this result the country has gained credibility, a very solid base to take the national development plan forward. The plan will be a detailed one and it won’t rule out any of the things you just mentioned, but the Eurobond will not directly finance reconstruction program, construction of schools and hospitals. The Eurobond represents the financing basis of Albania itself, so it finances the financing operations, if you will.
I have a final question, if I may, since we the economics journalists do not often attend press conferences with you.
PM Edi Rama: Appearing at meetings and conferences frequently it is something we the painters suffer from.
Have you received the MoneyVal’s consent about the fiscal amnesty draft, you just mentioned?
PM Edi Rama: We have held our informal discussions, but the procedure stipulates that we take the process forward and they make their objections then. We remain in touch, but no final consent is granted before the draft is forwarded to undergo the relevant procedure. In other words, they oversee the entire procedure. This is a sovereign right of the country and they assist the process through their general opinions and specific remarks about a certain draft. They intervene when the draft is public and undergoes procedure, so it is a correct institutional relationship. We have discussed with them, they do not oppose the project in principle, but of course they have their advice and they also have their principled concerns as a whole, not specifically, but the yesterday’s success will help also this process, because since yesterday we are a very reliable country in this aspect.
Mr. Prime Minister, what is the amount of funds allocated as part of the International Donors’ Conference pledges and what is the total amount that will add to the Albanian government funds after the yesterday’s success in Eurobond issuance?
You highlighted that the initiative to lift the profit tax on small business is designed to turn the latter into an ally of the government in its fight against the fiscal evasion committed by the big business. Aren’t you afraid that big Albanian companies may decide to invest in other Balkan countries other than Albania, since they pay more in taxes than they used to pay before?
PM Edi Rama: Who does pay more in taxes than before? Are them the so-called oligarchs? So the oligarchs now pay more in taxes than they used to pay previously? I know it, but I would like to thank you for confirming this, but, unfortunately, the true economics journalists are not allowed to appear on the TV screens and instead they are replaced by the math-illiterate individuals, so that people get more confused.
It is true that they pay more in taxes than they used to do previously, but we don’t see the small business’ complete liberation as a reason for the big businesses to leave Albania, because the small business will not allow them to commit fiscal evasion. I don’t think this will happen, or it doesn’t seem to be the case at least. However, this will be done. The job creators in Albania, the small business owners fully deserve the government’s concrete support. The Albanian citizens in Tirana, in the remotest and mountainous areas of the country, in the coastal areas and everywhere else will be the light in the eyes of our government until 2029.
The fiscal amnesty draft published by the Report TV yesterday envisaged the legalization of the wealth and the assets of former high-level officials who have been removed from their posts three years ago, even though you have stated that no pardon will be granted to politicians and the former government officials. Will you backtrack from this provision of the draft?
PM Edi Rama: I think you should show more attention and be more careful when it comes to the drafts already being circulated or the ones you publish to the public because it would not be the first time that false documents circulate as if being government drafts. We won’t backtrack from our commitment and the high-level politicians, government officials will be completely excluded from the amnesty and this is unquestionable. Anyone who has served a government term, members of the parliament, local government officials, any other appointed or elected official since the free pluralist elections were held for first time in Albania will not included in this fiscal amnesty.
Of course, it is a completely different thing when it comes to individuals who have been working inthe public administration or have held government jobs 10 years ago. But the high-level government officials in the true sense of this word, politicians, MPs, current government officials, directors of state institutions are absolutely excluded.
Whether someone worked in the state administration until the 1990s to continue then his private, this is completely something else. But none of those involved in Albania’s politics since the day of pluralism can be part of the amnesty.
No politician, judges, prosecutors who have been served even for a single day in such positions since 1990, will be pardoned.
You mentioned an expanded social support package. Could you provide some concrete details about this package and will it become applicable this year?
How do you plan to replace the state budget revenue you will be losing with the removal of the profit tax and VAT on small businesses and is this move a kind of correction to the fiscal policies you have launched over the past years?
PM Edi Rama: I will provide same answer I already provided to you colleague. This is not to correct what we have done previously, but time has changed and we are no longer the ones we used to be. I am saying this, not because it is a sin or a big mistake to change your opinion. Churchill used to say “only a fool is one who can’t change his mind during his entire lifetime.” Indeed, it is now a different time and we find ourselves in a different situation and we have to govern a country that has suffered two major blows, the earthquake, which, though it didn’t hit entire Albania physically, it hit badly the national economy, and in the meantime we are emerging from a very difficult situation due to the pandemic.
So, everything has changed and our opportunities have changed too. Today we are stronger than we used to be two, three or four years ago in terms of financing capacities. The yesterday’s Eurobond issuance confirmed that despite the two consecutive blows we are able and we can afford expanding financing. This is incredible news for us. This has provided such a great relief to us and it allows the government to see today the National Plan without the yesterday’s reserve. Until yesterday, the entire work on designing the National Plan always ended like ‘well, we need to see the Eurobond issue outcome and wait and see how the capital markets will react,” because, if we were to receive a different response then the Plan itself would have been a long-term and not a short-term one. We don’t want an Albania 2030 plan to start in 2025. No, this plan will begin right now.
This is a measure I discussed with you today and which we have already stated earlier, the complete exemption of the small business from the tax burden and the inspectors’ frequent inspections. But it is not only that. The expanded package, the Reconstruction Minister mentioned, involves an entire column of the plan concerning the social policies. Based on facts and figures, we are definitely the governing majority to endorse the largest social package compared to the previous administrations, but, compared to what we are seeking to achieve, this is certainly not enough. We know this very well and we want to further expand it.
We are currently making very important assessments since the lockdown period. We have learned a lot from the lockdown period and one of the most important things we have learned is “how much we can do” and how to structure the education system, the teaching process and the digital or online schooling. How to ultimately tackle the collective classrooms problem, a long-time inherited disease we have already started to gradually and step by step operate and heal by ultimately shutting down these classrooms, but making sure that the collective classroom pupils are delivered high quality teaching and learning. The online schooling is being offered by Albania’s best and most distinguished teachers. To this end, we need to fund their education in the country’s remotest villages and not simply rely on smart phones only for their education, no matter whether they do or do not possess a smart device. Though the data on the online schooling during the lockdown period showed extraordinary results in terms of the student’s participation and their access thanks to the smart phone devices and thanks to the web based platforms. Many keep complaining and the most interesting complaint is the one about the people’s woes. So, the ones complaining most are those who actually face no problem of whatsoever themselves, but “they are concerned about people.” They complain, for example, that people do not know how to use the web-based e-Albania platform. In fact, the truth is quite the opposite, that people are constantly using the e-Albania platform. If you are to take a look at the e-Albania platform applications for agricultural projects filed by farmers across the country, the number of applications that are now made via e-Albania is impressive. The number of applications lodged in a few days’ time, is much higher than the application numbers before the platform was launched. There are cases featuring individuals who live in remote mountains areas, yet they have turned out to be successful in beekeeping, in starting an agritourism business and they are doing everything via the e-Albania platform.
So, these are all lessons learned and they have been very useful in designing the 2030 Albania Plan.
June 5 was the last deadline when companies had to declare their workers in order to benefit the wartime payment of 40,000 lek. What is the number of companies that have respected this deadline? In addition to that, there is a number of employers who refuse to grant this payment to their workers, claiming they have already received it. Are there any elements that need to be adjusted in this process?
PM Edi Rama: Thank you very much, because it is a very important question. First of all, I have come across a series of speculations intentionally spread to create confusion, but I am not going to comment on them, because of the topic we are talking about today.
What have we done any time when people in a garment and footwear factory have claimed that they haven’t received the wartime payment? We have conducted full and elaborated analysis. To put it clearly, we cannot pay people who haven’t been forced to stay at home due to the lockdown measures and haven’t given up working for a single day and have been paid regularly. This is pointless. We will pay all of those who have been unable to go to work even for a single day because of the lockdown measures.
Secondly; how many of them have responded positively? They are many, while a total of around 4500 businesses and companies have failed to act and respond. We have certainly warned them several times so that they face no penalties. But, most importantly, the Tax Administration is currently transferring the payment to the workers’ bank accounts, whilst the last complaints are being reviewed. By the last complaints I mean the last bloc of some thousands of complaints. What I know and what I can say is that based on all […] – because the Tax Administration has done the work that companies should have done so that workers are not left alone in this process and we can’t penalize people by denying the payment and telling them that the company or the business they have been working for are to be blamed in this process. No, we will grant the wartime payment to everyone. We have been proactive in this process. The Tax Administration officials and specialists have verified each individual, each company, mainly those refusing to respond. What we have already stated is that the companies refusing to respond will face penalties for lack of solidarity and respect for other people’s work, but this is not enough, because workers, first and foremost, are not interested whether their employer is penalized or not, but whether they will receive the pledged payment. Around a quarter of a million of people will receive the wartime payment.
The recent video selfie stories in the face of “the unfulfilled promises politics” are really ugly, shameful and, above all, they are all made-up stories, because we do of course know that there are still many people who have yet to see the payment being transferred to their bank accounts. We have identified each and every one of them and they will all receive the payment. What I have already stated is that once the process is over, by mid-June so to say, we will publish the list of the beneficiaries. You and everyone else will know the names of around 250,000 people and you can check to find out whether they have received the wartime payment or not. The publication will be based on the data provided from banks. Once their names are revealed publicly, you can ask each of them whether they have received the payment and figure out whether they are lying or they are telling the truth. Again, we will be ready to transfer the due payment, if a single person – because nothing is 100% perfect – is still not included in the scheme or if for a reason or another turns out to have received it, yet he or she hasn’t. Yet, the truth is that a quarter of a million of Albanian citizens are entitled to benefit the payment, although we know quite well that the majority of them have already resumed working.
Recently you have launched the 2030 Albania project, whose implementation, according to you, will begin this year. In the meantime, you also stated that a part of the Eurobond will be used to finance this project. Is there any estimated value of this project and what is the share of the Eurobond earmarked for this project?
PM Edi Rama: What I said is actually quite the opposite, yet I can reiterate it. This is a 10-year plan, which is set to start this year under a series of defined measures and timelines, reforms and so on and so forth. So, I would like you not to ask about details today, because work on the plan is still underway and we will provide a lot of details when the plan is unveiled, hopefully within June. But again, what is important for everyone to understand is that it will include the state’s entire economic power and it is not merely a matter of one project or another. The state budgets, the state investment capacities, whole private investment capacities, everything related to the economy and every source of the country’s financing to the economy are included in this plan. It’s a pretty big plan or a Marshall Plan for Albania, so to say it modestly.
I won’t break my colleagues’ tradition by making questions about politics and instead I will continue to focus on the economy. In the wake of the powerful earthquake that hit the country, many foundations have collection millions of euros in donations. Apart from Marin Mema and his foundation “Albanian Roots” that have built three new homes and is currently working to build a fourth one in Shijak, none of the other foundations has been doing so. Have they submitted any reconstruction projects?
PM Edi Rama: Other foundations deserve a big thank and my deepest gratitude for the fact they have been ready to accept and swallow a lot of undeserved accusations for not starting construction work just to make sure that we carry out a joint and coordinated work. Joint and coordinated work implies identification of the problems – and by problems identification I don’t mean the quake-affected people only who need housing, but also identification of the problems in the sites that will host construction projects, ranging from property issues, the geology and other related aspects to the completion of the mandatory local development plans and their elaboration. This means that in order for us to finalize the contracts on building the private individual homes we need to have first the design of each individual house in a rugged terrain. It is a sort of ants-like work, because this is the only way to launch a tender and ask the wining builder to construct exactly what is needed depending on the site where the houses will be built. It is a voluminous work already underway. The process was long delayed because of the pandemic as whole tender procedures were suspended. However, I believe we will conclude all contracts this month and work to construct the individual homes will kick off shortly after. The foundations will finance their share of the projects, yet a joint investment is needed. The reconstruction projects are designed to significantly change not only the residents’ lives, but also the way a community is built and organized.
The electoral reform is apparently heading for failure as the system-change is the precondition set by the parliamentary opposition lawmakers in exchange for their vote in the parliament, though the June 5 agreement doesn’t include it. What are you doing in your capacity as the leader of the majority to convince the parliamentary opposition? The opposition lawmakers have even called for a meeting before the electoral reform or the amendments to the Electoral Code are adopted, as one of the 15 conditions before the first inter-governmental conference on the EU accession negotiations is held.
And a last question is about the recent spike in the number of new Covid-19 cases. Is the situation worrisome?
PM Edi Rama: I would like to make a correction. There are not 15 conditions to be fulfilled so that we press ahead with the first inter-governmental conference. They do not exist. I know you hear it repeatedly, you repeat it too, but don’t do it again; there are no 15 conditions so that we open the first inter-governmental conference. They do not exist. Yet, this is the least important part compared to the other part of your question. I know the situation is not calm. We have agreed on an accord. It is important that the agreement is not changed. The only satisfaction I have gained from that agreement is Luli’s satisfaction. In other words, what matters most is that Luli is pleased and the agreement, for the sake of truth, offers nothing more than that, because it reforms nothing, it doesn’t reform the system in terms of the election administration.
But this was precisely the goal of the agreement. It was not our impossibility to move forward on our own, but the goal was that we come together, including the world, just to offer some relief to Lulzim Basha, and everyone else after him, sooth their terrible fear from the elections and allow him have the changes he wants so that he can no longer complain. I know that we will face complaints, because they will lose the elections again, but we did it in view of a message of peace and interaction. I am convinced many people do not agree with me. I am convinced that many people would have wanted us to move forward and address our objective by really addressing the OSCE/ODIHR recommendations, but they too have to realize that in this situation, even because of the need to alter the political climate in the country, we should do our part. How much it will change is something that doesn’t depend on us only and we agreed on the accord just to deny them any excuse in the future. Of course, the agreement should be passed in Parliament. It won’t be easy at all, but we stick to the agreement and we will vote for it.
If there is any room, not to please, but respect the opposition lawmakers in parliament, who, in this case, won’t be voting for a law just like any other piece of legislation, but they will be voting a bill directly concerning their status and their future, we will explore any possibility, listen and be constructive with them. I think it would be best so that we all now move to a new level of maturity, where we no longer need to reach agreements in foreign embassies for the sake of people and for the sake of the country, especially when it comes to agreements that actually change nothing at all.
However, it is good that an agreement was reached. I see my friend, the chairman of the Democratic Party is now relieved and intensely involved in the mathematical economics and he is stress relieved, at least for now. This is very positive, but we will have to wait and see. I don’t know what to say, since I haven’t an answer today. We will see how the process will progress so that we approve the agreement through broader understanding. It really has come to a point that the Socialist Party, the country’s biggest political force is not entitled to ask for anything, but it has the obligation to distribute candies and other treats. It shouldn’t be this way, but everything remains to be seen.
Before concluding, I would like to add something. Please, whenever you speak about the lawmakers currently in parliament, please don’t forget that they are primarily there because they were on the candidate lists proposed by Lulzim Basha and Monika Kryemadhi. Whoever considers them as individuals who have made their way to parliament by using other ways, he or she simply forgets the very recent history. First, they are lawmakers picked by Lulzim Basha and Monika Kryemadhi. Second, when they talk about the open lists, I know that the overwhelming majority of the Albanians believe that open lists are a wondrous instrument to enhance quality, democracy and independence etc., but, if the lists were open, in this case, the lawmakers currently in parliament would have been part of the lists and the vote would have taken place not merely between DP and SP, but it would have included others too.
However, we feel the responsibility to take this process forward and conclude it in a fair, just and dignified way, and not by making up all kind of stories and efforts to convince this and that, because it wouldn’t be fit to reach a consensus on the road and dictate your will in parliament without considering other MPs there. Moreover, we don’t have the required number of votes to pass the electoral reform and we should work to secure them. We shouldn’t fight simply arithmetically, but we should fight to understand and reach understanding with others too. It still remains to be seen whether we will succeed.
Thank you very much!
