Honorable fellow ministers,

Honorable entrepreneurs,

Ladies and Gentlemen,

Last year I took part in celebrations marking the 101st anniversary of excellent relations between Albania and Austria. More than a century of friendly relations, a time during which Austria in particular has played a historic role, ever since the genesis of the Albanian state.

An old proverb says: a friend in need is a friend indeed. Well, since the efforts of Count Leopold Berchtold, a century ago, in support of the independence of Albania, to the tremendous contribution of Franz Vranitzky, during the tumultuous year ’97, Austria has stood beside Albania in some of its most difficult days.

Therefore, today, with the occasion of the Austrian President’s visit in our country, I consider the holding of such activity quite natural because I think the best way to intensify our two countries close historical relationship is by means of promotion and further development of economic relations, investments and entrepreneurship.

Honorable Austrian entrepreneurs welcome to Albania!

Through this event, the first of its kind, the MFA confirms its role not only as a promoter of the country’s economic interests, but also as a communication bridge between foreign businesses and the government.

I am therefore convinced that these meetings are the best way to present you, (potential Austrian investors) the opportunities and advantages for investments that Albania provides in various areas of the economy.

Ladies and Gentlemen,

Austria and Austrian entrepreneurs have been paying attention for a long time to the Western Balkans and Albania because of the historical, cultural and of course, because of Austria’s geographic proximity to the Western Balkans territories. From Shkoder, the city that inherits more than others of the Austro-Hungarian culture, to Graz, is less than 1000 km by road. After the 90s, Austria has been one of the countries that has given special contribution in various fields,

•    such as the rehabilitation of rule of law
•    the establishment of basic infrastructure
•    strengthening the institutional structure
•    and through significant investments in sectors of the economy.

We appreciate Austria’s role in the framework of the EU integration processes for Albania and more broadly for the entire region. This role has been significant and is expected to strengthen further, spurred by the fact that the Austrian Government has given priority to its projects in the Western Balkans.
At this point, I want to emphasize that of particular interest for Albania, but also for the region, is Austria’s immense experience regarding environmental sustainability and renewable energy, as matters of actuality and of great importance to the Western Balkans socio-economic development prospects and for structuring the energy market in particular.

Also, cooperation with Austria in the field of good governance is of particular importance, especially in e-government projects, aimed at a modern and innovative state in which quality, trust and speed are key elements.

For more than six years, Austria has been a part of the group of five countries with the highest FDI in our country and in 2012 it was ranked in 2nd place. The total Austrian FDI in Albania amounts to 2.6 billion Euros, ranking it in 3rd place.

Currently in economic terms, there are around 77 Austrian companies in Albania, which represent 2% of total foreign enterprises and joint ventures. They are present in key sectors, including energy, banking, the insurance sector, mining and tourism sectors.

But there is still untapped potential considering the logistical advantages and natural resources. Austrian experts themselves estimate Albania as a country with high interest for investments, mainly in the fields of infrastructure, energy, mining, environment and tourism.

In the framework of strategic investments in Albania, the TAP gas pipeline project undoubtedly remains of special importance, because above all it will create a positive synergy between the Middle East and Europe, between the Caspian and Adriatic. In other words, it will be a project of peace, economic and social transformation. Thanks to this project, Albania will provide energy; it will become gasified and connected to the international gas transmission network. The inter-connection of the TAP pipeline with the IAP pipeline will ensure energy security for the region and all across Europe, and will create new opportunities for Austrian companies to invest in Albania.

Also, no less important is the drafting of the fiscal package for active processing business that was recently adopted by the government. The new package made up of 42 administrative and fiscal support measures for the industry of active processing (fason industry) will turn this industry from a modest one, to one capable of generating employment and economic development. This is the first package of support for this sector. It is developed based on the demands of the sector itself and aims to address the concerns of businesses. This package is aimed at significantly improving the quality of exports, targeting an increase of more than 80% and tripling the number of employees within the next three years.

Also, one of the areas that look particularly important for Albania in terms of developing strategic sectors (and with great specific weight to the GDP) is tourism, which constitutes a ‘constant’ in Albanian-Austrian cooperation.

Honorable entrepreneurs,

Foreign investments can not be comprehended without the creation of a favorable environment for businesses. Despite the difficulties and challenges that the Albanian government has been facing these past eight months, it has taken emergency measures towards stemming the economic slowdown as well as developing a new economic model based on sustainable economic growth.
This, coupled with reforms in key sectors of the economy, to prioritize public investment, so that government support will go where it is needed and for a new approach towards state-investor relations.

This new economic model is associated above all with the rule of law in economy, with a new fiscal discipline, the fight against informality, with the encouragement of local production and transforming the country’s natural resources into a growth factor. Bearing this in mind some of the new government’s priorities are:

•    Fair taxation
•    support of entrepreneurship, by focusing on small and medium business ventures
•    ensuring free competition
•    As well as accountability in relations with the business community.

While in these few months of governance we have achieved:
•    reduction of personal income tax for 97% of Albanians, by removing the flat tax and the establishment of fair taxation,
•    Eliminating the small business tax as well as reducing the income tax for small businesses from 10% to 7.5%.

We believe that the full potential of trade relations between our countries has not yet been reached. Albania has much to learn from the Austrian example in terms of service, diversification, customer handling, nature and the environment in terms of developing sustainable tourism as an important source of national wealth. While much remains to be done, particularly in the absorption of Austrian investments in Albania. The challenges of foreign businesses in Albania including Austrian ones are under the focus of the Albanian government, which aims to improve the economic situation in the country and ensure a favorable environment to attract foreign investment.

These are important reforms for the rule of law in economy and a prerequisite to democratic transformation of living in our country.

•    fighting corruption, organized crime and informality in the economy,
•    addressing the issue of property titles,
•    improving the taxation and customs administration performance,
•    And by reforming the VAT reimbursement system.

Another indicator that best proves the government’s particular attention towards the business community is the creation of the Economic Council chaired by the Prime Minister and with the participation of representatives of state institutions and the business community itself. This council does not intend to replace rule of law institutions, which in turn would have to undergo serious reform in line with expectations imposed by the social and economic reality of the EU accession process. This Council will be a helpful instrument through which businesses could channel the problems and concerns which they may be facing to policymakers.

Now any business has the option of “online appeal” regarding legal and administrative procedures, on the official website of the Ministry of Economic Development, Trade and Entrepreneurship, as well as on the National Economic Council’s webpage. So, there is a serious commitment to create a regulatory system which facilitates the functioning of the market and protects the public interest, a system that derives and is administered by solid institutions.

We have taken the first steps towards economic growth recovery and we are encouraged by the response we have had from international institutions like the International Monetary Fund and World Bank. We have signed an agreement with the International Monetary Fund for a new program that will provide us with the necessary liquidity to repay outstanding debts, as well as careful monitoring of our public finances and public expenditure policies.

Very soon, with the support of the European Bank for Reconstruction and Development, the Albanian government will establish the Investment Council, an entity which will provide an institutionalized and stable platform of cooperation with investors in our country and in the region.

Honorable entrepreneurs,

The above was a general overview of the investment environment in Albania and some of the measures the government has undertaken to improve the economic situation in the country. Now allow me to give the floor to my colleagues, who will focus on more specific areas and issues of economy and investment opportunities. I wish you a pleasant stay in Albania.

Thank you!