November 23 (SeeNews) - Albania should preserve and accelerate the momentum in EU-oriented reforms in order to meet the EU requirements for the opening up of accession talks, the European Bank for Reconstruction and Development (EBRD) said.
It is critical for the country's long-term prosperity that it does everything in the areas of public administration reform and rule of law (among other areas) to meet the EU requirements, the EBRD said in its Transition Report 2017-2018 published on Wednesday.
“The campaign against informality has yielded important results but extra efforts are needed to tackle deep-rooted problems such as getting electricity, registering property and enforcing contracts,” according to the report.
When it comes to Albania's power sector, the reform momentum should continue without interruption, the EBRD said, noting that steps already taken include increased bill collections and the related lowering of distribution losses and repaid arrears to the private sector.
“Further improvements in governance and operational practices of the state-owned enterprises (SOEs) in the power sector are needed to make their improved financial position sustainable.”
The EBRD also said that robust economic growth in Albania is continuing but significant downside risks remain, associated with the embedded structural weaknesses in public administration and infrastructure, as well as vulnerability to external shocks inthe euro area, Albania’s main market.
Albania's economy is expected to grow by 3.7% both in 2017 and 2018, "on the back of private domestic demand and major construction work on large energy-related foreign direct investment (FDI), such as the Trans-Adriatic gas Pipeline (TAP)," according to the report.