Albanian Government Council of Ministers

Traditional year-end press conference by Prime Minister Edi Rama:

 

Good afternoon! This is the traditional year-end press conference and I would like to first and foremost wish you and your families a happy and healthy new year ahead!

I would also like to thank each and every one of you for providing coverage of every event and activity concerning this building. I thought it would be appropriate to comment on few key issues instead of providing a an overly lengthy overview of the too many that have taken place in the course of this year, and leaving you more room for your questions and address through your questions some other components of a presentation that would otherwise be long and perhaps boring waiting for me to finish before you take the floor.

It would probably be appropriate to begin with an universally known fact about a global energy crisis that is challenging every nation and a raging price wave with the electricity price rising above 450 euros per megawatt hour from a maximum of 100 euros per megawatt during the same period of the previous year. In other words, the electricity price has increased by 50 euros per megawatt in annual terms.

The energy crisis, which I already announced a few times ago and my warning was commented as a false alarm, seems to have not a clear end in sight.

Some expect the energy crisis to end in June, but no one can confirm it today whether it is a fact or a hypothesis, while the crisis effects range from geopolitics to climate change.

While other countries in the region have increased the electricity prices for consumers, or are preparing to do so in the near future, we have stuck to our idea and commitment to become a shield to the households and small business consumers.

But as we speak, a meeting is taking place between the Minister of Energy and Infrastructure and the representatives of several companies operating in the medium voltage system and for which, complete liberation in these circumstances, means exponential increase in the electricity price. To this end, we are preparing to introduce a relief scheme. Why are we succeeding in the efforts to maintain these parameters? We have addressed the crisis by overhauling the electricity supply scheme. We are hopeful to be able to resist at least until June, as we expect that the crisis in the region will relax by March and April, although we can’t say for sure whether this will happen.

I am not going to list the reasons, but we will keep protecting the household consumers.

Governments are judged on what happens, but in the medium and long term they are also judged on what they prevent from happening. For me, not letting the tide of this crisis grip household consumers, small businesses, even companies operating in medium voltage systems, is one of the amazing accomplishments of this very young government that has four years ahead.

It would suffice taking a look at Kosovo. Kosovo has been gripped by an energy crisis for objective reasons, according to me. I don’t want to go over other reasons that could be also related to certain policies, but the fact is that Kosovo has been gripped by the energy crisis and the country has to choose between an increase in the electricity price or drastic power outages.

This comment is for all of those who claimed this is a false alarm, or an attempt to deflect attention.

I am very glad that today we are able not only to guarantee electricity supply, not only for our country, citizens and companies, but to do so without being forced to apply power outages, as well as without increasing the electricity price and provide uninterrupted electricity supply to Kosovo during the two days of the year-end holidays.

This is not easy at all, but I think and I believe we should share both joy and difficulties with Kosovo.

I would also like to briefly comment on the ways towards a long-term solution to the energy issue.

We have announced our ambition to make Albania a net energy exporter during this decade as part of the Albania 2030 vision, and this means becoming a country that meets its domestic needs for electricity, but also exports it to other countries, and this would mark an epochal leap for Albania.

How would we deliver on this goal? We will do so by enhancing the country’s generation capacities.

–By ultimately tackling the inherited problem of water discharge, when we lack the capacity to reserve water during drought periods, we would be able to do so by constructing Skavica hydropower plant, which is already under construction.

–By eventually making the Vlora thermo power plant operational under a new scheme in collaboration with a leading American company.

–By diversifying sources of electricity generation through construction of photovoltaic parks and wind farms, a series of projects are underway.

–By also enhancing power generation from hydro resources a major project is being assessed and it is designed to significantly increase generation capacities.

All these projects will help us deliver on an epoch-making transformation of the country’s power sector and energy will turn from a problem into a sector that pumps the heart of the Albanian economy.

We move on to the ongoing pandemic crisis.

I am convinced we have reasonably succeeded in making sure that everyday life goes on free from the restrictions, allowing the economy to recover and grow rapidly from the edge of the abyss we found ourselves in last year.

I want to point out the fact that we should prepare for a fresh wave of infections because of a new Covid variant, which is causing many countries to reinstate lockdown and restriction measures. You have already seen that the Netherlands has enacted a strict lockdown until March 14. It is unimaginable! Other countries are also enacting lockdown and other restriction measures. We will not haste, but we should also know we can’t afford pretending as nothing is happening and probably some restriction measures should be reinstated, without impacting the everyday life and economy chain. As you have already seen we have secured all the needed vaccine doses and the immunisation program is progressing, yet not the way it should.

We are making an assessment as it turns out that a considerable number of people living and working in other countries, mostly in Italy and Greece, have already been vaccinated.

We are ready to build a new infectious diseases hospital, which means complete reconstruction and modernization of the existing hospital facility. A total of 57 ambulance vehicles were added to the ambulance fleet, which includes practically an optimum number of vehicles to guarantee health emergency services in line with highest European standards.

The other challenge we face is the post-earthquake reconstruction programme. We are now pleased and proud to return the families to their newly-built homes in all affected areas. However, the reconstruction process goes on. Work is underway at the construction sites where two large residential complexes are being built, namely in the May 5 and Kombinat neighbourhood, with the process taking longer time in Kombinat area, because of the property issues, whereas this problem has been already resolved and totally freed from all the bureaucratic hurdles in the May 5 area.

Work is also underway on construction of a new residential complex in Durres, and construction of a number of apartment buildings has already kicked off or will begin in early next year.

Work has finally started to build a new residential neighbourhood in Kruje, after a complicated situation that required solution of the property ownership issues. Construction of the so-called Laç 2 residential neighbourhood has yet to complete, where, among many other things, we encountered a problem, which is one of the ugliest examples of the situation of confronting the bastards, who are still part of the justice system and have yet to go through the vetting process and are taking advantage of this period to baffle everyone.

I am not going to focus on this ugly episode, with justice people taking advantage of their position to hinder construction of homes for the needy families.

The reconstruction project in Vora has been delayed too. However, we are convinced that the reconstruction programme will complete within 2022, when we expect all the wounds brought upon us by the earthquake will eventually heal next year, although small patches of reconstruction may take a bit longer.

We remain optimistic about the country’s economic growth as all indicators suggest a strong and quick recovery economy following the significant decline last year. It would suffice the fact that the state budget collections recorded a year-on-year surplus of $750 million dollars in the 11-month period of 2021, an indicator clearly showing that Albania works hard, unlike the perception and different from what the public opinion is fed with.

Of course, this is a year when the economy, not only in our country, but in every other country, is recording higher growth than what is considered a normal growth following last year’s fall. However, economic growth has allowed us to project a 7.8% increase in the next year’s state budget revenue collections like never before.

We are witnessing a significant growth in the country’s exports.

It is enough to highlight the fact that the seafood, vegetable and fruit exports and agro-industry exports have registered a significant growth of around 15%. This is what the country’s agriculture produces and which many consider “a dead or a dying sector.”

This is the part indicating that two clear lanes are created in the agricultural and agro-food sector, both from sea and land, namely the agriculture and livestock growing lane that is increasingly encouraging farmers and entrepreneurs to join forces and a second lane, mainly featuring individuals seeking to engage in agricultural activities by cultivating small fragmentized land plots, while hoping for the state to give them a hand. This lane has no future.

Therefore, the answer to development of agriculture is that people should join forces and create synergies and we will focus on this aspect to promote farmers unification.

A heinous and disturbing incident has taken place recently as data on salaries of many people leaked. However, it is up to the prosecutors to look into this crime and prosecutors are actually investigating intensively. I hope and I have reasons to believe that results will be announced soon and whoever has committed such a crime will be held accountable and will be brought before justice.

However, let me say that in the medium term, this event can also be called, as the English phrase has it, “a blessing in disguise,” which would be translated “an apparent misfortune that eventually has good results.”

Of course, revealing personal data on salaries is an acceptable action, but, on the other hand, there is today a clear panorama in the eyes of all Albanians and nobody will now be able claim that we are attacking anyone, starting with the media and your own salaries.

It is not that it took for the data on salaries to be leaked for us to figure this out, as we already know. This is not a situation similar to what it used to be, in terms of wages, but it is unacceptable.

No one can now claim that we are attacking the media, demanding from them and not only from them, but from all those companies that give fictitious salaries, to self-regulate the salary statements.

As far as I have been informed, the General Taxation Directorate has prepared and has sent a letter to all taxpayers that have submitted troubling statements, with some of them showing flagrant inconsistencies with their capacities, asking them to self-regulate and submit new salary statements as of January 20 as the final deadline. If they fail to react and regulate themselves, an in-depth investigation into fiscal evasion charges will be launched and if incorrect declaration comes with a fine, fiscal evasion comes with prison sentence. We have readied a plan before the data leak was to happen and it is not a coincidence this is one of the points included in the National Counselling form.

We can’t afford waiting for the system to self-regulate gradually, as we have done year after year in order to avoid creating suffocating feel for the business, yet we can’t keep waiting for gradualism so that workers can receive legally what they are entitled to, involuntarily giving up their future, because by paying the minimum salaries, accompanied with cash money, their future is uncertain, as their insurance contributions are very low. Such actions also hurt the pension scheme and allow no room for pensions increase.

How a country is supposed to increase pensions, when the companies offering high-paying jobs, actually declare low salaries? This is impossible.

The process will start with property investigation into all companies and businessmen, who declare minimum wage for their employees.

The process will normally be accompanied by a new and rapid reform as part of a preparatory process to technically distinguish between true small business from those who take advantage of legal loopholes to earn a lot more while pretending to be and acting like small business.

In the meantime, on the other hand, this will help us guarantee employees the real minimum wage. Because the inverse happens, unfortunately, with the employees being given the minimum wage and then taken back a part of it, and this is slavery, it is like slave owners abuse.

This government will totally side with workers and we will encourage workers no to remain silent.

I am very glad that a new taxation regime enters into force, with no personal income tax being applied to the monthly salaries of up to 40,000 lek. The employees with a monthly salary of up to 50,000 lek will pay half of personal income tax rate, and salaries up to 1.5 million will see personal income tax reduced.

All these measures are to the benefit of workers, but it is also time for us to build a protective wall for the employees and this will not happen gradually, as it has been the case in the past 8 years, but it will happen intensely, just like it happened with the post-earthquake reconstruction.

I would briefly comment on the major infrastructure projects. Vlora international airport project is already underway. We are close to finalization of important accords on flights from and to Kukes airport. The latest information is very encouraging and I don’t want to speculate over certain dates, but I very much hope that Kukes airport will become fully operational by spring at most and it will host mostly low-cost flights.

Flight ticket prices at Tirana international airport have been cut drastically. I think you have all noticed we are no longer experiencing the terrible situation with the most expensive flight ticket prices in Europe, but lower fares are now applied at Tirana airport.

This is a result of the transfer of the airport’s administration into the hands of an Albanian private company. We plan to construct a second terminal and extend the existing runway, in an estimated investment of about 100 million euros. Two more sections of the Tirana Ring road have already been opened to traffic. Other important social issues need to be settled for the project to progress, including a considerable number of dwellings that should be demolished to clear the way to construction of the Tirana Big Ring Road and this is the case to reiterate what we learned and were inspired by the post-earthquake reconstruction programme. We have built the capacities, the know-how and confidence to embark on a new National Housing Programme.

All these projects and public works speak for themselves and they meet new urban, safety and security standards in terms of social support for the needy and homeless people and they provide us the opportunity to launch a new national housing programme and other construction and infrastructure projects despite earthquakes and other natural disasters. In other words, we will not wait for earthquakes to happen so that we can embark on helping the families and young couples that need housing. This will of course be finalized through soft bank loans.

It is about two social categories and all the dwellings that will be demolished to clear the way to construct the Big Ring Road project, as well as in other areas across the country, where it is not about demolition, but it is a matter of homeless people, who need a new shelter and who will be treated under this programme.

The families due to be affected by the programme will benefit from the rental bonus, as we have already done with the families affected by the earthquake. A contract will then be signed to provide them with new social housing based on the size of their families.

Arberi Road is now open to traffic and has incredibly eased movement of people and goods between the region of Diber and Tirana. However, traffic on this road is congested on the weekends, as many travellers and visitors from Tirana head to Diber to visit the region for the first time, and once the Murriz Tunnel finally opens by spring or early summer, after encountering unexpected geological problems, Diber will somehow become a Tirana suburb.

Quite the contrary is the case with the Skerfice tunnel along Kardhiq-Delvine road, where new sections have been already opened. The geological formation there has turned out to be very favourable and we expect to significantly shorten the distance between Tirana and Saranda by next summer season.

The work on construction of new ports will hopefully kick off in January, as procedures on construction of a new tourist port in Saranda and new commercial port in Vlora have been completed. Tomorrow we will start preparation work on the first construction phase of new tourist port in Durres, whereas a detailed project design is being drafted on construction of new cargo port in Durres, due to be built by one of the world’s largest companies, namely Royal Haskoning that has been declared winner of the international tender.

Work is underway on construction of a new tourist port in Saranda and the procedures have been launched for construction of a tourist port in the coastal town of Shengjin too.

The tender procedures for construction of Saranda airport will be reopened after the failure of previous international tender procedures, but I am confident that work on this project will begin very soon.

The work on construction of the major highway, namely the Blue Corridor is set to begin next year, with initial sections connecting Murriqan, Milot, Thumane, Kashar, Rrogozhine and Fier. The new highway project also includes construction of access roads.

As far as European integration is concerned, everyone clearly knows that the process has been absurdly blocked due to the veto imposed by Bulgaria on North Macedonia. Through the National Counselling process we have asked for the citizens’ opinion whether they support our foreign policy approach. In other words, if no progress is made by the end of the six-month presidency of France in the next six months and if Bulgaria insists on its veto against North Macedonia, we will openly start demanding that Albania’s EU integration process is decoupled from that of North Macedonia.

It is a decision of important strategic nature. Most importantly, it is important for us that the country scores higher assessment points in this process and two components play an important role in this respect, namely the steps already launched by the new justice system and the Special Prosecutor’s Office in particular that has already sent clear signals it is a politically independent prosecution body and totally an anti-corruption office in the Republic of Albania.

Second component is the anticrime operation and particularly taking the joint operations into a whole new level with the Special Prosecution Office playing a specifically important role. I would like to congratulate SPAK prosecutors and encourage them to look neither on the left nor on the right, but instead just straight forward.

I would like to assure them of our full moral support and reconfirm again the fact that many, even within our ranks, were sceptical about our success when the judiciary reform was launched as the overhaul of the country’s justice system required constitutional changes. It was my conviction that time was high to carry out a thorough justice system reform and nothing would stop it and I have always believed that if there is something of important and historic value this ruling majority can ever deliver on is absolutely laying the foundations of a new and fair justice system. A fair justice system leaning neither on the left nor on the right and whoever on this part of the camp I head has to settle accounts with the justice system, it is clear that he or she has nothing to do with us.

It is pretty clear and many actually describe this aspect as something we should worry about. It is actually completely the opposite. I encourage the prosecutors to fully perform their task without reserves. No one can hide behind the Socialist Party logo. We cannot cover anyone with the Socialist Party flag and in no way can the Socialist Party become a law firm for anyone. Whoever has been comfortably thinking to personally benefit from the goals, from the plans, from our affairs will personally face justice. I have no doubt about that.

I would like to conclude my opening remarks by focusing on the current political situation and my only advice is: “just ignore them!” And for this reason, our trajectory will be completely different, starting now until the end of this term in office. I will do utmost efforts to stand close to the ordinary people and I will make whatever it takes to make sure that politics increasingly becomes a tool to help people, totally beyond the left and right when it comes to the government’s relation with the citizens, as we are already doing and reaping the fruits of such relation in the moral and spiritual aspect and in terms of the energies from the reconstruction programme, totally focused on Albanians who need protection and housing.

So, we will strengthen such a relationship as much as possible by totally abandoning the trench of absurd clashes and political confrontation with parties that are gripped by chaos. The situation is as serious as it is ridiculous. A very grotesque situation where stupidity and savagery come together, but we stand no chance of changing that course of stupidity and the only thing we have to do is reaching out to the common citizens of this country.

The National Counselling will be one more instrument and the year 2022 with all the work on all sides; will be primarily the year of children and services.

On the one hand we will make an important leap with the approach to the daily life of children and young people, by funding and motivating them to engage with arts, craft, sports and technology in the afterschool period. More technology to enable more young people to gain access to the high-paying labour market, using technological know-how and skills to take up jobs in the international labour market without having to leave Albania. The public services delivery will change radically in 2022, because the service windows will be shut down completely and the state will be in the citizens’ pocket.

This was what I call a short presentation and now I am ready to take your questions.

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