Prime Minister Edi Rama at annual year-end press conference:
Good afternoon everyone!
This is the traditional year-end news conference and, with your permission and my plea for patience, I would like to provide a brief overview, but, of course, given that I would try to touch upon all areas, the overview won’t actually be that brief.
I would like to start with the Justice Reform, taking notice of the fact that citizens rightly have a high expectation over so many years. After strongly supporting the Justice Reform process, citizens are understandably impatient for the fact that the country’s justice system still faces problems and the justice system has yet to reach the point of its reaction to scumbag and wrongdoing in order to help citizens breathe freely.
Having said this, I’d point out the fact that building a new justice system is not a process that could take place in the blink of an eye or without facing its obstacles. However, if you take stock of the process, I think there is reason to be really optimistic about the future.
The justice reform process kicked off with the overhaul of the entire scumbag accumulated over the decades in the justice system. If we are to take a look at the data on this process, they confirm what I already said, I mean the cause for optimism about the future. As of today, a total of 322 judges and prosecutors have undergone assessment and re-evaluation process through the vetting filter, with most of them being fired or removed from the system rather than confirmed; a total of 128 individuals have been fired and 74 others have resigned from the process, most likely aware of the impossibility to succeed in the vetting process; only 118 of them have been confirmed.
So, 202 individuals have been removed and 118 judges and prosecutors have been confirmed. It is a significant and meaningful figure to create a clear picture of the overhaul of the justice system.
This is just one side of the coin. The other side of the coin has to do with what is now a frequent question made by the citizens; what is going to happen with the individuals removed from the justice system? Is it as easy as that? Was it just firing them from their jobs?
No, because the process of establishing the new justice bodies has continued in tandem with the overhaul of the justice system, and undoubtedly, those who have failed to justify their incredible wealth in many cases, or much more wealth than they could have amassed legally in most cases, will definitely be sent before justice. And sending those who took the justice system hostage over decades will also confirm the historic turn in the justice system.
Therefore, patience is the key word in this process.
It is all about patience, because it is a process designed to build from the ground up one of the three powers that also determine the three pillars of the democratic system.
The fight against organized crime has continued intensively in parallel with the overhaul of the justice system. The climax of the government’s fight against organized crime was the Power of Law Operation, which has seized 1713 proceeds and assets of crime and some 223 cases have been referred to the Special Prosecution Office; 103 members of criminal organizations have been arrested; 30 criminal bands have been dismantled and 628 assets have been sequestered.
This year too, Albania has seen a downward trend in the intentional homicide rate. A total of 45 homicide deaths were recorded in the January-November period, down by seven homicides compared to the same period of the previous year. For all those who are interested in learning the truth summarized in a single figure, taking notice of the media bombardment that creates a disproportionate space for the murder news stories, creating a perception that is strongly inconsistent with reality, as many as 126 homicides were registered in 2012. The today’s homicide rate is 2.5 times lower. And if we were to refer to the average homicide rate over several years before we took office, this rate has more than halved. Of course, people tend to quickly forget bad things, and everyone desires the good, but from a country where a murder was committed every two or three days, Albania is today a country that is reaching the European Union’s average rate.
I would no longer comment on the security and justice system, but I would be glad to provide answers if you have any question on this issue.
I would now usher in the main topic of today, the main area of our common activity, my and your activity, as well as the main activity of the entire society, primarily focusing on the fight to protect health.
I would like to start with the government’s response to support the most affected people by this war. I want to make a brief summary for those who are indirectly affected, not in their health, thank God, but in their household economy. I can openly state that around 300.000 Albanians, citizens of this country, have directly benefited “the wartime salary” under the first or second relief package.
The direct support for the business has been materialized through a courageous and quite progressive step, not only during this phase, but in a long run, by scraping tax on small business, becoming the only country in the region – as we can draw no comparisons with Europe since very high tax rates are applied there. So, we have scrapped profit tax on small business and VAT on all small businesses with an annual turnover up to $100.000.
I believe you all remember the controversy over the two instruments of the sovereign guarantee fund, which was designed to support big business to finance the payment salaries of their employees and, on the other hand, the government support for some fragile enterprises, fragile sectors of the economy and all manufacturing enterprises, including clothing and footwear industry and tourism operators. As we speak, some 560 enterprises have benefited an amount of 53 million euros under the first sovereign guarantee fund and 200 other enterprises have benefited around 51 million euros under the second guarantee fund.
Most importantly, these figures show that a total of 53.000 employees have benefited under the sovereign guarantee instruments.
Another meaningful data based on the employment registers and payrolls – not on surveys or speculations – show that a total of 33.000 people became instantly jobless when Albania went to a total lockdown because of the coronavirus pandemic between March and June 2020, but 20.000 of them have already returned to their job positions. In the meantime, we have prepared a special program to promote and support employment of the remaining group of people who became jobless because of the pandemic.
I would like to recall the fact that the government has doubled the unemployment benefit and the economic assistance, a decision that will remain into effect for all families benefiting economic assistance during next year until this fight against the invisible enemy is over, regardless of whether or not their family members have been directly affected by COVID.
We have written off almost $120 million in unpaid electricity bills and small businesses and in March-June alone, if we are to consider all direct support measures totalling over $450 million, Albania ranks among the countries providing a considerable support considering their GDP ratio.
As I have stated earlier, the figures are stubborn. And I am talking about disbursed money, and not speculations. I am talking about money transferred to the workers’ bank accounts and to the coffers of private companies, and I am not talking about plans or unenforced decisions. We rank second after Serbia in region, a country which coped with the first phase along with an electoral process. This is a very important fact to be kept in mind.
According to the World Bank and not according to the Albanian government, thanks to the measures taken by the government, the Albanian and Montenegrin economy will recover faster from the pandemic-related crisis. The World Bank projects a 5% growth in, 1.5% higher than the region’s average.
The International Monetary Fund projects a 6% growth rate.
What matters most beyond these figures, which are sometimes quite abstract to many, is that thanks to the fact that in addition to the fight against pandemic, we have supported financially those who were directly affected from this war ramifications, pressing ahead at the same time with several important processes, with the reconstruction programme being the most important one, and therefore our economy has an inherent basis to grow and continue to grow steadily after this blow.
Considering the aspect of the directly affected people, I would like to underline that according to the World Health Organization – and I am not referring to the government figures, but serious independent sources – Albania has recorded 405 COVID-19 deaths per one million population. The COVID-19 death rate in Bosnia and Herzegovina and North Macedonia is three times higher, or more than 1200 deaths, and 1000 deaths in Montenegro. Albania currently registers an acceptable and reasonable rate to motivate us to move forward together and emerge victorious without sustaining catastrophic wounds, although each lost life is extremely painful.
On the other hand, I want to draw attention to the fact that it is precisely the measures we put in place, the strategy we pursued and, of course, overwhelmingly correct compliance with it, that have helped Albania to be the country with the lowest COVID-19 fatality rate in our region.
As far as the system’s management is concerned, I think, again, facts speak for themselves. In this case too, it would suffice to draw a comparison between the state of the hospital infrastructure in the past and today. Just imagine for a moment if this shocking blow was to hit and find us with the hospital infrastructure of seven years ago, or this pandemic was to happen seven years ago when the hospital infrastructure was in a lamentable state.
The today’s hospital infrastructure is neither more nor less, but the same as in all other countries; Our hospital infrastructure has an extra 1600-bed capacity that would be used if necessary; Albania has four COVID-designated hospitals to treat coronavirus patients, with two of them being brand new facilities specifically built to cope with this situation.
The laboratory capacities to diagnose COVID-19 have increased and the number of daily tests has also increased gradually in line with the strategy drafted since the very beginning and fanatically implemented to yield positive results, despite disputes and useless speculations. As many as 400.000 more rapid test kits will be delivered to Albania soon and the number of tests will grow significantly.
We have approved the reimbursement scheme for the medicines of citizens diagnosed with COVID-19 being treated at home.
In the meantime, we have carried out an influenza vaccination campaign for 368.000 citizens to reduce vulnerability at this delicate stage, when, if mixed together, seasonal flu and the coronavirus can lead to higher fatality rates.
We have provided a monthly bonus of 1000 euros for each doctor and 500 euros for the frontline medical workers since day one of the pandemic.
An amount of 30 million euros has been made available to strengthen the frontline capacities.
I would like to inform you that intense efforts are underway to secure coronavirus vaccine deliveries. I feel really sorry when I come across all sorts of daily claims, speculations or theories, because the overall situation is indeed very meaningful in terms of a general stalemate in the supply and demand ratio. Keep in mind a figure that could help you to figure out the entire picture. Italy launched the inoculation process two or three days ago and the country has only 9700 vaccine doses available as of today. This is the first batch of vaccine doses Italy, a EU member state with a huge population, has received; 9700 doses only.
What has happened at European level is that the whole first batch of available doses, which are incredibly less than needed, has been divided in one way or another between EU member countries and in the meantime countries have been allowed to negotiate with countries, other parties, to share their package.
On the other hand –since people can come across any sort of speculations – I would like to inform you that the vaccine producers, starting with Pfizer Company, sign deals which are nonetheless related to the states. In other words, there is for now no deal, which is reached directly with the company and bilaterally, and you purchase according to what the company offers you. The agreement is indeed signed with states with which Pfizer has established communication first. By states I mean the EU members as a single entity. Keep also in mind the fact that in the United States too, the country where the largest vaccine producing capacity is operational, the US President has issued a decree to ban export of a single vaccine dose.
This stalemate marks the first stage only, because the vaccine production expected to increase exponentially in the coming months. However, what I would like to say is that we are confident that the inoculation process will start without having to wait for this stalemate to be tackled. Albania will start vaccination within January and I am inclined to believe that we will definitely commence the vaccination process by mid-January and do the same thing every other country does by administering the vaccine doses first to doctors and nurses and continue then with the vulnerable groups, including teachers, police workers and the older adults.
We are currently negotiating with AstraZeneca and Moderna and I am confident a deal will be finalized with Pfizer soon, given that the Pfizer company requires certain capacities to be built. This is the reason why intense diplomatic efforts and communications are being made at this stage. It is impossible, it has been actually impossible since day one, that direct contracts and deals are signed without an overall vaccination strategy. All those who enjoy access have been included in the overall strategy framework. We are very close to finalizing a written agreement, on which we have been working since the New York meeting with the company’s CEO. Our team and Pfizer representatives exchange relevant draft agreements. Meanwhile, we are making political and diplomatic efforts to harmonize Pfizer’s readiness to deliver the vaccine doses and readiness of a country or another to clear the way to such agreements, because otherwise it won’t work.
There were rumours suggesting that North Macedonia has started the vaccination process. What did it start? It is all about a total of 100 vaccine doses provided in principle by Bulgaria in a token gesture of solidarity and friendship with North Macedonia.
However, this is important for everyone to figure out how the mechanism works. I would beg each and every one of you to ensure clarity in this process, because it is really an extremely complicated process and, as I already said, the process has been currently gripped by an overall stalemate, because the demand is gigantic, whereas the supply is extremely limited because of the production capacities. All countries are receiving the first doses in order to administer the vaccine to the doctors, nurses and the oldest people, but the needs they should address are actually extremely high.
The situation is expected to change by February and it would be much easier for every country to secure vaccine deliveries in the second quarter of the next year. However, my ambition and our goal is that we don’t fall behind others for a single second and access this process just like any other country by starting administering the doses to the first priority groups within January. We will all be here to see this happening in January. There is no way it can happen otherwise, because when it comes to begging for Albania and for Albanians – I apologize for the modesty – but I am the number one.
Reconstruction
The post-earthquake reconstruction programme is progressing at a pretty positive pace. Unfortunately, the dramatic intervention of COVID in March-June period this year slowed down many aspects of the reconstruction programme. However, we are working hard to make up for lost time.
We have disbursed a total of 289.5 million euros in grants and another fund of 250 million euros in loans under the International Donors’ Conference, without including 25 million euros in direct transfers to the budget from the international dpnors; The state budget meanwhile has earmarked a total of $280 million, or 28 billion lek to support the reconstruction programme in 2021; some 28 sites of public infrastructure have been launched or are in the process to ensure full access to services.
The reconstruction programme will have an impact on a much larger number of people than the quake-affected families only, also because of the transformation the infrastructure will undergo. There are around 500.000 residents who are directly affected, be it through the children’s access to better kindergartens and schools, or the access to infrastructure or health care system. New regional hospital in Laç, 6 large health care centres will be built from ground up in that area.
Another important fact is that as many as 450 Albanian companies and around 25.000 people are currently employed under the reconstruction process.
A total of 158 educational facilities are being rebuilt for around 25.000 schoolchildren.
In the meantime, a total of 1000 newly-built homes will open their doors as of the day after tomorrow to allow 1000 quake-affected families to celebrate the New Year’s Eve in new, much stronger and larger houses than the ones they lost due to the earthquake last year. Construction of 2500 new houses will complete by March and a total of 4500 houses will complete within the first six months of next year.
Meanwhile, work is also underway to construct the new residential buildings. As many as 13.000 quake-affected families benefit from the rental bonus until the day when they will move into their new apartments. Note that the estimated financial effect for this is $ 26 million in state budget money for these families.
As many as 29.000 families have received compensation grants worth $100 million to cover rebuilding and repair work costs.
I believe the reconstruction will turn out to be a colossal transformation, as it is the case with the new schools, kindergartens, and houses, and this is going to be the case with the new residential neighbourhoods that will be reconstructed.
Public investments
We have launched a very intense public investments process and we expect more to come as a result of a series of agreements already in the development process.
The agreement on Karavasta Photovoltaic Park, the first solar park in Albania, will be materialized in the beginning of the next year. An international tender has been also launched for construction of the second photovoltaic park in Spitalle.
We are closely cooperating with the United States government to materialize the construction of Skavice hydropower plant, the long-waited and long-dreamed solution to regulate the Drin river cascade and will create the required reserve, where we will no longer be forced to conduct controlled water discharges due to the torrential rains and water inflows, while maintaining an adequate water reserve in the case of prolonged drought. The project will help us develop a completely different strategic capacity in the power sector.
The interconnection line with Kosova has been finally made operational.
The Albanian power exchange has been established.
Further investments have led to a reduction in power losses to 20%, an unimaginable figure just a few years ago, when losses were estimated at 50% and half of the generated electricity was wasted, from a technical point of view, and then the losses from the electricity theft and from unpaid bills had created a huge hole in the power sector.
Many projects on road infrastructure are underway. As of today, construction of some 250 kilometres of national roads has completed up to highest European standards. A number of more infrastructure projects are underway, and I am not going to name them one by one.
Work to construct Kukes airport is progressing very well and I am confident that the new airport, the second international airport in Albania, will launch operations and first inaugural flight in spring. In the meantime, I wish and pray to God that we will overcome the final hurdle standing on the way to the Vlora international airport and the international tender reopens in the first half of January after being suspended for several months due to the pandemic. We then expect to launch work to construct the largest international airport in Albania’s south by summer.
Once the process on construction of Vlora airport is launched, we will seek to kick off procedures for construction of another international airport in Sarande to complete a full picture of four international airports, which are crucial to development of the country’s tourism industry and usher in a new decade of this century.
As far as maritime transport is concerned, the most important is the agreement we have signed with the government of the United Arab Emirates to transform the existing Port of Durres into a tourist port, which is designed to be one of the largest tourist ports in the Mediterranean and for the relocation of the cargo port in the north-western area of Durrës, where the ambition is to build a new freight port up to European standards, not like this one which is a disgrace right at the heart of Albania’s second largest city.
We are on the right track regarding public investments in Vlora and transformation of the existing cargo seaport into a tourist port and creation of a fantastic attraction in the coastal city, as well as construction, in addition to relocation of the cargo port to the Triport area, where a seaport with smaller capacities than the Durres port will be build, and a fishing port as well.
Social policies
I would like to conclude these opening remarks with the key social policies during this year, which will be also pursued next year.
Zero tax rate on around 91% of businesses in the country. Some 91% of the country’s entrepreneurship will be exempted from having to pay profit tax as we have scrapped it totally. 91% of the entrepreneurship has an annual turnover of $140,000. Meanwhile, the decision to scrap VAT on businesses with an annual turnover up to $100,000 will have a fantastic impact along with the decision to scrap the profit tax on small businesses.
The minimum wage will be increased to 30,000 lek and the decision enters into force on January 1.
The electricity subsidies for retired people are estimated at $24 million a year and we will continue to subsidize it next year with 154,000 families benefiting under this policy.
The decision to subsidise the fuel price for farmers will enter into force next year with around 70,000 farmers entitled to benefit.
The two-fold increased economic assistance will continue to be paid until pandemic is over.
The government has been providing and will continue to provide the baby bonus for every newborn in the Republic of Albania, or the children who register in the Republic of Albania. And you know that the baby bonus is 40,000 lek for the first child, double to 80,000 lek for the second child and treble to 120,000 lek for the third.
More than 250,000 schoolchildren have benefited text schools for free this school year.
All debts of the former servicemen have been pardoned according to the law, finally addressing the issue of hundreds of servicemen who have been referring their case to the court.
More than 21,333 people were granted the oilmen status until December 28, 2020, with 619 of them benefiting early retirement at the age of 60 years. Some 20 714 people, who used to work in old and mining industry, have benefited extra pension payment. Some 13 075 miners benefit supplementary pension, 6 171 oilmen and 1 468 metallurgists.
In the meantime, we will continue to intensively strengthen the entire social support network, after which, despite all the claims, the truth is that largest volume of financial support for the neediest people has been granted over the past seven years.
This is the overall overview. I am not going to annoy you with Albania’s historic year at the helm of the OSCE. I believe it has been a fantastic year in terms of Albania’s contribution and our foreign policy.
–Mr. Prime Minister, my first question has to do with the COVID-19 vaccine. Russian embassy expressed a day ago its readiness to help Albania get access to the vaccine produced in Russia. Will you answer positively to this readiness?
As of today, you have replied to the political rivals only, namely the President, the opposition, regarding Greece’s presidential decree to expand territorial waters by 12 nautical miles in Ionian Sea. Will you also formally respond to the Greek state?
In was actually a curiosity, since the end of the year always serves to take stock of what each of us has accomplished, and I wanted to know, Mr. Prime Minister, if you take stock of your accomplishments, do you see as a victory the long-time goal of yours for the Socialist Party to run alone in the upcoming general elections after all the constitutional changes adopted in July that no longer allow the classic coalitions we are used to so far?
PM Edi Rama: Thank you Elja! As for the first question, what I saw, I actually thought it was merely a meme. The Russian embassy had re-twitted a post by the Director of Communication at the Prime Minister’s office, who had actually shared a post by the European Commission President. I thought it was a meme, because it is completely inappropriate for a serious state to provoke this way. And by calling it a provocation, I am not acting in advance to any demarche at the Russian state, because this is a ridiculous provocation and it is not appropriate that a serious country like Russia becomes ridiculous by taking to social networks to post such texts and an embassy like the Russian embassy in Albania, which is a very important one, behaves as if being a section of the sketch comedy and variety show “Portokalli”, or a rival competitor to this show. Therefore, I am not going to comment further. I regret this because I see no reason for the Russian embassy to involve in creating memes.
As for the other aspect, we are focused on Pfizer, AstraZeneca and Moderna vaccines. We are communicating with these companies. In fact, the countries with which we communicate in the European Union are eyeing these companies. We have no reason to express reservations or prejudice either the Chinese vaccine or the Russian vaccine, respect, there is no problem. But for now, following the others’ lead, we are focused on these directions. If necessary and if we see it as reasonable, of course, without any prejudice, we will see other alternatives too. For now, we are not focused on these alternatives and the post of the Russian embassy, on my part, is considered absolutely inappropriate. An apology from the Russian embassy, even for the misunderstanding would be very welcome.
As for the next question, you are asking – if I understood you well – that we react to the Greek state. What for should we react to the Greek state? What is yet to be understood, because I believe that any normal mind would suffice to concentrate, not much, but a little and clearly understand what it is about? I believe that those who are seeking to kindle this fire are doing so intentionally; be it either from Lalzi bay, or the Presidency or from Pristina, they are intentional. I find it hard to believe that those behind these claims are so deficient in their mind, but what they do, to me, is intentional.