Speech of Prime Minister Edi Rama at the meeting with Italian investors:

I obey the request of the ambassador to speak in Italian, so that we can continue on this path that we started together and for which I am very grateful to you. On this path where we have tried, from the very beginning, and will always try to convey a loud and clear message to Italian entrepreneurs who dream of a country with a low tax system, with a minimum workforce cost, with the lowest possible presence of unions, and so on, to understand that such a country does exist and that it is not an impossible dream for you, but a very close reality. You just need to take the plane and travel less it takes than from the north to south of Italy, and come to Albania which welcomes you warmly and where the government is willing to pave the way for anyone who wants to invest in this country. The history between Albania and Italy is known. Our two countries are very close, not only from a geographical point of view, for the historical ties, but also for the era in which we live, for the fact that hundreds and thousands Albanians live in Italy as if it were their country.

Many are those who pay contributions to the Italian tax authorities as small and medium entrepreneurs. And a lot of us are happy when you win against Real Madrid. In addition, we share a treasure as far as football is concerned; someone who is both Italian and Albanian, has two passports, dual citizenship, and who coaches our national football team. This is not something to take for granted, because I cannot imagine that a German would ask for the Albanian passport to coach our national team. Only an Italian can do such a thing, and only to an Italian we can grant the Albanian passport looking at him as if he was an Albanian.

Anyway, if we look at these optimal opportunities for integration and collaboration from all points of view, we cannot but be satisfied with the number of Italian companies that are here. There are 900. But they are still very few if we take into account our ambitions and the real potential of our country, which offers many more spaces and opportunities, both in terms of numbers and quality.

Italy is the partner with the biggest and most important weight for export in Albania. We achieved 52% of the volume in 2014, but we believe there are still many opportunities to do even more. Obviously, the private sector has a fundamental impact since it has the ability to invest in this country. I am pleased to tell you that we are in a situation where there have been improvements from all points of view with regard to the space and climate of doing business in Albania.

For example, in 18 months only, since we took the reins of this country, we have been dealing with a mountain of debts that the previous government had to private companies. $ 720 million of debt is a lot for our economy and our ability as a government, as a state. In addition to non-refunded VAT, it was money due to private companies for services in health, education, etc. We have addressed this problem very seriously, because we wanted to give since the beginning a very clear message, which is: if we want a strong country from the economic point of view, but also from the point of view of the law, we must know and respect the rights of every one investing in this country. It is unacceptable that the government treats entrepreneurs as if they were its employees, and not pay contracts due to them. We have started the process of paying off debts, and we are well under way. Our goal is to be able to pay it all, throughout this year and up to half of the next year.

In addition, we have created appropriate institutions to work together, starting with the Economic Council where the Government takes part, to continue with the banks, entrepreneurship, international financial institutions with whom we are working, to continue with the Board of Investments which is a new mechanism created in cooperation with EBRD. These institutions will give us the opportunity to address in real-time every problem with contractors, as well as every problem that prevent us from moving forward quickly.

On the other hand we can say that we are in a situation that makes us optimistic, since there is no limit to the percentage of foreign capital in a company, which means that the capital can be owned 100%. The profit tax is only 15% and businesses can be registered within 24 hours. In addition, we have improved by 40 positions in the ranking of doing business within the first year; as well as our position in the assessment by the international rating agencies has improved from B- to B+ in less than 12 months.

Our workforce is young and qualified. We are a young country where everyone understands the Italian language, many speak it and where, as every Italian company working in Albania can testify, there is no problem of integration with the culture and the discipline of the company, and neither are there problems in relations between the employer and employees.

We realized that our economic model that for many years has led to an unsustainable growth which was not accompanied by employment growth, was a model that could not take us forward, because the two great resources for economic growth do not exist any longer.

On the one hand remittances of immigrants, for many years the largest source of development and economic growth for Albania, have suffered a drastic decline. Suffice it to say that the two major communities of Albanian immigrants live in Italy and Greece, countries where the financial crisis has contributed in the acceleration of this natural process of decrease in remittances. On the other hand there was the construction boom, which is now over.

So, we have started working on new development resources and on a model of sustainable economic growth, which is based more on production and processing. Our country is rich in natural resources. Energy is undoubtedly one of the greatest potentials of the country, and the hydroelectric potential is very important because we are the second richest country in Europe for water resources, after Norway.

Our country has great tourism resources, and it is beginning to be very attractive for tourists, especially for tourists from Northern Europe. Suffice it to say that this year demand has been 25% higher, but we are not able to respond with an offer that satisfies it, because the hotel industry needs new structures. So, we need to contact and speak with Italian entrepreneurs and investors, because there is still much to be done in this respect. Italian investors have a long experience that can be a very important capital to start big and serious projects.

In parliament there are three very important laws that unhinge the bureaucratic system in favor of investors. There is a law on strategic investments which creates a totally different situation in favor of those who want to invest in Albania in the fields that we have defined as strategic sectors, and for investments that that exceed a certain amount of money. The other law is on tourism, and it provides new spaces to work on projects for developing facilities and infrastructure. The third law is on the public-private partnership, on which we want to put a strong emphasis, especially with regard to services, because this partnership can really save Albania from mismanagement.

The data of recent months are very encouraging with regard to agriculture and manufacturing, and we believe that for the latter we can do more and offer more to investors coming to Albania from Italy.

There are many convincing examples of entrepreneurs who have moved here their businesses from other parts of the world, such as Romania and Libya, and who are very happy to work with our young people, in addition to the fact that products have the required quality.

In the sector of manufacturing we have started a special program to stimulate investment and support investors. Exports have increased by 30% in 7 months only, with an approximate value of $ 110 million, which is not little for this country and for this sector. But the potential is much greater and growth can reach 500 million dollars if the necessary investments are made.

The same applies to agriculture, where there has been a change of course. We have tried in every way to support entrepreneurs in the food industry, because we can radically change the pattern of growth of this sector.

I would conclude by saying that beyond all these programs, beyond the legislation in this direction, and beyond all good intentions, there is also total availability, in the highest institutional levels, to accompany every entrepreneur who wants to do business in Albania. We have a system of escort, in the sense of accompaniment, not in the Berlusconi sense, in order to prevent entrepreneurs from falling into the trap of bureaucracy.

Let me recall a beautiful quote by Henry Ford who would say: “Coming together is the beginning. Keeping together is progress. Working together is success”. It’s a bit like marriage, isn’t it?

Thank you and I hope that after we have come together and understood that we are fine with one another, we will work together for success. Success for you and for your enterprises means also success for us, for Albania.

Thank you!