Forslag til RÅDETS AFGØRELSE om principperne, prioriteterne og betingelserne for det europæiske partnerskab med Albanien {SEK(2004) 374}

(forelagt af Kommissionen)

BEGRUNDELSE

Det Europæiske Råd gentog på sit møde i Thessaloniki den 19. og 20. juni 2003, at det er fast besluttet på fuldt ud og effektivt at støtte det europæiske perspektiv for landene i det vestlige Balkan, og erklærede, at disse lande "vil blive en integrerende del af EU, når de opfylder de opstillede kriterier". Det tilsluttede sig Rådets konklusioner af 16. juni 2003 om det vestlige Balkan, herunder bilaget "Thessaloniki-dagsordenen for det vestlige Balkan: På vej mod europæisk integration", der sigter mod en yderligere styrkelse af forbindelserne mellem EU og det vestlige Balkan, idet man også bygger på erfaringerne med udvidelsen ved bl.a. at indføre europæiske partnerskaber. Kommissionen er blevet opfordret til at fremlægge et første sæt europæiske partnerskaber for Rådet til godkendelse sammen med de næste årsberetninger om stabiliserings- og associeringsprocessen inden udgangen af marts 2004.

Det europæiske partnerskab med Albanien bygger på bestemmelserne i Rådets forordning (EF) nr. 533/2004. Det angiver prioriteterne for Albanien på kort og mellemlang sigt for forberedelserne til videre integration med Den Europæiske Union, som Kommissionen har indkredset i sin årsberetning 2004, og det skal anvendes som en checkliste til at måle, hvilke fremskridt der gøres. Det Europæiske partnerskab for Albanien afspejler, hvor langt forberedelserne er kommet, og det er specielt afstemt efter landets behov. Albanien forventes at reagere på det europæiske partnerskab med en plan sammen med en tidsplan for og nærmere enkeltheder om, hvorledes det agter at tage fat på partnerskabets prioriteter. Fremskridtene i gennemførelsen af prioriteterne vil blive overvåget løbende af Kommissionen, navnlig i forbindelse med årsberetningerne om stabiliserings- og associeringsprocessen, og gennem de strukturer, der er oprettet i forbindelse med stabiliserings- og associeringsprocessen.

Prioriteterne i det europæiske partnerskab vil skulle danne grundlag for programmeringen af de finansielle ressourcer, som udgør Fællesskabets bistand, og som fremover fortsat vil være den bistand, der bevilges i henhold til eksisterende finansieringsinstrumenter, særlig Rådets forordning (EF) nr. 2666/2000 af 5. december 2000 (CARDS).

Den foreslåede rådsafgørelse har ingen finansielle virkninger.

På baggrund af det ovenfor anførte opfordrer Kommissionen Rådet til at vedtage vedlagte afgørelse.

Forslag til RÅDETS AFGØRELSE om principperne, prioriteterne og betingelserne for det europæiske partnerskab med Albanien

RÅDET FOR DEN EUROPÆISKE UNION HAR -

under henvisning til traktaten om oprettelse af Det Europæiske Fællesskab,

under henvisning til Rådets forordning (EF) nr. 533/2004 om etablering af europæiske partnerskaber inden for rammerne af stabiliserings- og associeringsprocessen [1], særlig artikel 2,

[1] EUT L

under henvisning til forslag fra Kommissionen, og

ud fra følgende betragtninger:

(1) Det Europæiske Råd tilsluttede sig på sit møde i Thessaloniki den 19. og 20. juni 2003 "Thessaloniki-dagsordenen for det vestlige Balkan: På vej mod europæisk integration", i hvilken europæiske partnerskaber nævnes som et af midlerne til at intensivere stabiliserings- og associeringsprocessen.

(2) Rådets forordning (EF) nr. 533/2004 fastsætter, at Rådet med kvalificeret flertal på forslag af Kommissionen træffer afgørelse om principperne, prioriteterne og betingelserne for de europæiske partnerskaber og om enhver efterfølgende tilpasning af disse.

(3) I Rådets forordning (EF) nr. 533/2004 nævnes det, at opfølgningen af de europæiske partnerskaber sker gennem de mekanismer, der er etableret i forbindelse med stabiliserings- og associeringsprocessen, navnlig ved hjælp af årsberetninger.

(4) I Kommissionens årsberetning for 2004 gives der en analyse af Albaniens forberedelser til videre integration i Den Europæiske Union og indkredses der en række prioriterede områder, hvor der kræves en yderligere indsats.

(5) Albanien bør med henblik på forberedelserne til den videre integration i Den Europæiske Union opstille en plan med en tidsplan og nærmere enkeltheder om de foranstaltninger, som Albanien påtænker at træffe i denne forbindelse -

TRUFFET FØLGENDE AFGØRELSE:

Artikel 1

I overensstemmelse med artikel 1 i Rådets forordning (EF) nr. 533/2004 er principperne, prioriteterne og betingelserne for det europæiske partnerskab med Albanien som anført i bilaget til denne afgørelse, som udgør en integrerende del heraf.

Artikel 2

Gennemførelsen af det europæiske partnerskab undersøges gennem de mekanismer, der er etableret ved stabiliserings- og associeringsprocessen.

Artikel 3

Denne afgørelse træder i kraft på tredjedagen efter offentliggørelsen i Den Europæiske Unions Tidende.

Udfærdiget i Bruxelles, den [...] 2004.

På Rådets vegne

Formand

BILAG

1. INDLEDNING

Thessaloniki-dagsordenen fastlægger metoder og midler til styrkelse af stabiliserings- og associeringsprocessen, bl.a. gennem etablering af europæiske partnerskaber.

På grundlag af Kommissionens årsberetning er målet for det europæiske partnerskab med Albanien at fastlægge prioriteter for foranstaltninger for at støtte Albaniens bestræbelser for at tilnærme sig Den Europæiske Union inden for sammenhængende rammer. Prioriteterne er afpasset efter Albaniens særlige behov og efter, hvor langt landet er nået i sine forberedelser, og vil blive ajourført som nødvendigt. Det europæiske partnerskab indeholder også retningslinjer for den finansielle bistand til Albanien.

Det forventes, at Albanien vil vedtage en plan, der indeholder en tidsplan og nærmere oplysninger om, hvordan det agter at gribe partnerskabets prioriteter an. I planen skal der også beskrives tiltag til gennemførelse af Thessaloniki-dagsordenen, prioriteterne for bekæmpelse af organiseret kriminalitet og korruption fra London-konferencen i 2002 og ministermødet i Bruxelles den 28. november 2003 inden for rammerne af EU-Vestbalkan-Forummet og de foranstaltninger, som hvert af landene på Vestbalkan præsenterede på mødet den 5. november 2003 i Beograd til opfølgning af Ohrid-konferencen om integreret grænseforvaltning.

2. PRINCIPPER

Stabiliserings- og associeringsprocessen udgør fortsat grundlaget for de vestbalkanske landes tilnærmelse til EU hele vejen indtil deres fremtidige tiltrædelse.

Hovedprioriteterne for Albanien vedrører landets evne til at opfylde de kriterier, som Det Europæiske Råd fastlagde på mødet i København i 1993, og betingelserne for stabiliserings- og associeringsprocessen, navnlig dem, som Rådet fastsatte i sine konklusioner af 29. april 1997 og af 21. og 22. juni 1999, samt indholdet af sluterklæringen fra Zagreb-topmødet den 24. november 2000 og Thessaloniki-dagsordenen.

3. PRIORITETER

Kommissionen vurderer i sin årsberetning, hvilke fremskridt der er gjort, og angiver områder, hvor landet skal øge sin indsats. Prioriteterne i dette europæiske partnerskab er blevet udvalgt på grundlag af, at det er realistisk at forvente, at Albanien kan realisere dem helt eller i væsentligt omfang i løbet af de kommende år. Der sondres mellem kortfristede prioriteter, som forventes realiseret i løbet af et til to år, og mellemfristede prioriteter, som forventes realiseret i løbet af tre til fire år.

Det europæiske partnerskab anviser de vigtigste prioriterede områder, hvor Albanien skal træffe forberedelser til den videre integration med Den Europæiske Union, på basis af analysen i årsberetningen for 2004. Det skal bemærkes, at indarbejdelse af EU-retten i lovgivningen ikke i sig selv er tilstrækkeligt, når det drejer sig om lovgivningstilnærmelse; den skal også kunne gennemføres i sin helhed.

3.1 PÅ KORT SIGT

Den politiske situation

Demokrati og retsstatsforhold

* Fokusere på reformer og garantere, at demokratiske institutioner fungerer ordentligt - Garantere politisk fokus på gennemførelsen af de reformer, som er nødvendige for fremskridt i stabiliserings- og associeringsprocessen. Forbedre reglerne for parlamentariske udvalg og parlamentariske undersøgelsesudvalg. Fuldt tilslutte sig forfatningen og overholde og gennemføre forfatningsdomstolens afgørelser. Fremme udviklingen af det civile samfund og dets aktive deltagelse i beslutningsprocessen.

* Forbedre den offentlige forvaltnings funktionsmåde - Sikre håndhævelse af loven om offentligt ansatte og tage skridt til at forbedre den. Træffe foranstaltninger til at forhindre utilbørlig politisk indblanding i den offentlige forvaltnings funktionsmåde. Udarbejde og gennemføre klare retningslinjer for rekruttering, forflyttelse og afskedigelse for alle offentligt ansatte. Sikre, at kommissionen for den offentlige tjeneste udfører sine hverv i overensstemmelse med lovgivningen. Styrke generalsekretærens funktion i ressortministerierne, ministerrådet og den lovgivende forsamling. Forbedre koordinationen mellem ressortministerierne og Ministeriet for Europæisk Integration. Sikre, at Uddannelsesinstitutionen for Offentlig Forvaltning (TIPA) er finansielt bæredygtig, og styrke dens uddannelseskapacitet. Udarbejde skræddersyede uddannelsesprogrammer for lokale forvaltninger. Sikre, at den planlagte undersøgelse af de nuværende albanske territoriale enheder og etableringen af nye territoriale inddelinger gennemføres korrekt med inddragelse af alle interesserede parter.

* Forberede de næste parlaments- og lokalvalg korrekt og rettidigt - Rettidigt gennemføre de OSCE/ODIHR-henstillinger, der blev udstedt efter lokalvalgene i 2003.

* Styrke retssystemet - Træffe foranstaltninger til at øge gennemsigtigheden og forbedre forvaltningen i forbindelse med den straffe- og civilretlige procedure. Fremme dommernes status og deres uafhængighed og beskyttelse i forfatningen. Sikre, at dommeres og anklageres ret til indledende og fagrelevant uddannelse fastslås i dommernes statusbeskrivelse. Sikre, at domstolen for alvorlig kriminalitet fungerer effektivt. Garantere, at dommere og anklagere udvælges og udpeges gennem udvælgelsesprøver i overensstemmelse med forfatningen og lovgivningen. Yderligere sikre, at dommere og anklagere forfremmes med passende kontrolforanstaltninger og gennem upartiske procedurer. Forbedre inspektoraters funktionsmåde i såvel det øverste justitsråd og det generelle anklagekontor samt sikre, at dommere og anklagere ikke har straffrihed; tilvejebringe klare retningslinjer for separate inspektoraters rolle i Justitsministeriet og det øverste justitsråd. Vedtage hensigtsmæssig lovgivning om vidnebeskyttelse. Løbende forbedre fuldbyrdelsen af afsagte domme. Udarbejde en fornuftig mellem/langfristet strategisk plan for skolen for underretsdommere med henblik på at forbedre såvel dens funktionsmåde som dens finansielle bæredygtighed. Sikre korrekt opfølgning (efterforskning og eventuelt retsforfølgning) af offentligt fremsatte påstande om kriminel adfærd fra bestemte personers side.

* Forbedre bekæmpelse af korruption - Vedtage nødvendig lovgivning med henblik på at harmonisere den albanske rammelovgivning med de europæiske konventioner om korruption (både strafferetlig og civilretlig), som Albanien har ratificeret. Forbedre den nuværende lovgivning om bestikkelse og gennemføre den. Sikre håndhævelse af loven om opgivelse af aktiver. Gennemføre handlingsplanen for korruptionsbekæmpelse for 2003-2004 og sikre, at planen for 2004-2005 indeholder realistiske, præcise og målelige foranstaltninger til bekæmpelse af korruption. Styrke den institutionelle kapacitet til at efterforske og retsforfølge korruption; sikre, at den specialenhed for økonomisk kriminalitet i almindelighed, der er tilknyttet Tiranas offentlige anklagers kontor, også tager sig af sager om korruption. Nedbringe antallet af embedsmænd, der er omfattet af immunitet, og indrømme immunitet i nøje overholdelse af internationale regler og international praksis.

Menneskerettigheder og beskyttelse af mindretal

* Forbedre lovhåndhævelsesorganers overholdelse af menneskerettighederne - Sikre, at politi, dommere, anklagere og andre lovhåndhævelsesorganer er fuldt ud bekendt med deres forpligtelser med hensyn til menneskerettighederne, og at de gennemfører dem i overensstemmelse med internationale konventioner ratificeret af Albanien og særlig den europæiske menneskerettighedskonvention (ECHR). Behandle sager om lovhåndhævelsesorganers mishandling gennem effektiv retsforfølgning af de ansvarlige. Forbedre forholdene for internerede og varetægtsfængslede fanger på politistationer og tage skridt til at efterleve de internationale krav på dette område.

* Garantere ytrings- og pressefriheden - Træffe foranstaltninger til at forhindre chikane af pressen og/eller utilbørlig politisk indblanding i dens anliggender. Bringe Albaniens lovgivning om æreskrænkelse i overensstemmelse med EU's standarder og gennemføre den. Vedtage passende lovgivning for trykte medier og forbedre lovgivningen for elektroniske medier under hensyntagen til EU's standarder. Træffe foranstaltninger til at sikre gennemsigtighed med hensyn til mediers ejendomsforhold. Sikre uafhængigheden af det regulerende organ for medier (det nationale radio- og fjernsynsråd). Færdiggøre den nationale plan for radio- og fjernsynsfrekvenser. Opmuntre efterforskningsjournalistik og træffe foranstaltninger til at støtte journalisters uafhængighed og professionalisme.

* Sikre overholdelse af mindretals rettigheder - Tilvejebringe nøjagtige oplysninger om størrelsen af mindretallene i Albanien. Forbedre de retlige rammer for mindretal, så de opfylder kravene i Europarådets rammekonvention om nationale mindretal, og sikre, at de gennemføres på hele Albaniens område. Gennemføre den nationale strategi for sigøjnerne.

Regionalt og internationalt samarbejde

* Styrke regionalt samarbejde - Overholde stabiliserings- og associeringsprocessens krav og Thessaloniki-tilsagnene med hensyn til regionalt samarbejde. Sikre gennemførelse af alle regionale frihandelsaftaler, der er indgået inden for rammerne af aftalememorandummet af 2001 om lettelse af handelen under stabilitetspagten.

* Opfylde internationale forpligtelser - Bringe Albaniens situation med hensyn til opfyldelse af dets WTO-forpligtelser i orden. Når situationen er bragt i orden sikre gennemførelsen af den reviderede tidsplan uden yderligere undtagelser. Garantere overholdelsen af forpligtelser, som Albanien har påtaget sig inden for rammerne af forbindelserne med Fællesskabet.

Den økonomiske Situation

Fri markedsøkonomi og strukturreformer

* Sikre vedvarende makroøkonomisk stabilitet - Opretholde stabile makroøkonomiske rammer i forbindelse med IMF-programmet. Påvise overholdelse af internationale finansieringsinstitutioners henstillinger.

* Forbedre erhvervsmiljøet - Gennemføre handlingsplanen for afskaffelse af administrative hindringer for investeringer og for forenkling af administrative procedurer. Vedtage forbedret handelslovgivning. Fastsætte klare regler og procedurer vedrørende betingelserne for etablering, registrering og drift af nationale og udenlandske selskaber og sikre, at de er forenelige med stabiliserings- og associeringsaftalens krav. Sikre en korrekt, ikke-vilkårlig og ikke-diskriminerende gennemførelse af erhvervsrelaterede love, regler og procedurer. Gennemføre det europæiske charter for små og mellemstore virksomheder, især målene for 2004. Sikre, at SMV-agenturet er fuldt funktionsdygtigt. Reformere ordningen med forudbetaling af skat, så den bliver mindre ugunstig for nystartede virksomheder. Fortsætte forberedelsen af en national garantifond. Gøre det muligt at registrere selskaber overalt i landet.

* Udvikle et stabilt og fungerende jord- og ejendomsmarked - Vedtage ny lovgivning om tilbagegivelse af eller kompensation for ejendom konfiskeret i kommunisttiden. Sikre, at denne lovgivning giver en tilfredsstillende løsning på langt de fleste krav, og i nært samarbejde med alle relevante politiske aktører og ejersammenslutninger tage de nødvendige skridt til at sikre dens gennemførelse. Navnlig tilvejebringe alle oplysninger, der er nødvendige for at identificere land, der kan tilbageleveres eller erstattes, klart identificere udestående krav om tilbagelevering og udarbejde en troværdig finansieringsplan, der sikrer dækningen af eventuelle kompensationsomkostninger.

* Fremme beskæftigelse og social samhørighed - Med inddragelse af alle relevante aktører udarbejde en strategi for fremme af beskæftigelsen og den sociale samhørighed samt påbegynde gennemførelsen af denne strategi. Træffe foranstaltninger til at forbedre sociale beskyttelsesordninger og sociale standarder og til at bekæmpe social udelukkelse og diskrimination. Respektere centrale arbejdsstandarder og håndhæve dem effektivt.

Forvaltning af offentlige finanser

* Forbedre forvaltningen af de offentlige finanser - Forbedre budgetlægningsprocedurer gennem realistiske indtægtsoverslag, bedre prioritering af udgifter og styrkede forbindelser mellem politiske mål og budgetplanlægning. Udvikle en samlet socioøkonomisk strategi, der omfatter den nuværende nationale strategi for økonomisk og social udvikling og udgiftsrammerne på mellemlang sigt, som al finansiel bistand derefter kan knyttes til; i denne forbindelse sikre, at der tages behørigt hensyn til de områder, der prioriteres i stabiliserings- og associeringsprocessen.

Udarbejde et samlet strategidokument for offentlig intern finanskontrol under hensyntagen til Fællesskabets krav.

Håndhæve loven om intern revision. Sikre, at den statslige revisionsinstitution fungerer tilfredsstillende, herunder opfølge dens konklusioner og henstillinger, samt sikre retsforfølgning af kriminalsager.

Europæiske standarder

Det indre marked og handel

* Varebevægelser - Gøre yderligere fremskridt med vedtagelse af europæiske standarder. Vedtage udkastet til dekret om akkrediteringsdirektoratets organisering og funktion og sikre, at adskillelsen af akkrediteringsfunktionen fra standardiserings- og certificeringsfunktionen finder sted. Træffe foranstaltninger til at øge økonomiske aktørers opmærksomhed om disse begreber samt deres betydning for international handel.

Forbedre plantesundhedsmæssige og veterinære forhold i overensstemmelse med EF-kravene, særlig for varer med stort eksportpotentiale.

* Told - Stabilisere og forbedre den albanske toldforvaltnings administrative kapacitet på alle områder. Særlig sikre personalets stabilitet og forvalte menneskelige ressourcer i nøje overensstemmelse med den relevante lovgivning. Styrke de tolddepartementer, der er involveret i gennemførelsen af handelsaftaler, særlig afdelingen med ansvar for varers oprindelse. Styrke det administrative samarbejde i toldsektoren. Sikre, at procedurer vedrørende transit, værdiansættelse, toldoplag, risikovurdering og selektivitet samt (intern og ekstern) revision gennemføres i overensstemmelse med EF's standarder og, hvor det er relevant, internationale konventioner. Sikre, at toldforvaltningen opfylder sin indtægtsopkrævningsforpligtelse i overensstemmelse med lovgivningen. Træffe konkrete foranstaltninger til at forbedre kampen mod smugleri og ulovlig handel. Gennemføre ASYCUDA-systemet i Tiranas toldbygning og havnen i Durres. Sikre en ikke-diskriminerende anvendelse af toldlovgivningen, -reglerne og -procedurerne i hele landet.

* Beskatning - Påbegynde en revision af den nuværende skattelovgivning og de administrative procedurer samt sikre en effektiv og ikke-diskriminerende håndhævelse af skattelovgivningen. Intensivere kampen mod skattesvig. Fortsætte den igangværende reform af skatteforvaltningen, herunder udvikling/udstrækning af et integreret edb-system. Betale alle udestående fordringer vedrørende skattefritagelse for EF-finansierede projekter og etablere et effektivt system til at sikre faktisk skattefritagelse for EF-finansierede projekter i overensstemmelse med rammeaftalen af 1992.

* Konkurrence og statsstøtte - Vedtage de gennemførelsesbestemmelser, som er nødvendige for gennemførelsen af den nye konkurrencelov, og påbegynde gennemførelsen heraf. Forberede etableringen af en uafhængig konkurrencemyndighed, bl.a. ved styrkelse af den administrative kapacitet. Fremme konkurrencepolitikken ved at befordre liberalisering, forbedre praksis for offentlige indkøb og sikre en konkurrencepræget fremgangsmåde for privatisering. Vedtage de nødvendige lovrammer for statsstøtte og fremme gennemsigtighed og basal håndhævelse af statsstøtteprincipperne.

* Offentlige indkøb - Håndhæve den gældende lovgivning om offentlige indkøb og tage skridt til at tilpasse denne lovgivning til EF's standarder. Undgå undtagelser fra princippet om åbne udbud og sikre nøje overholdelse af udbudsprocedurer. Styrke agenturet for offentlige indkøb og offentlige indkøbsenheder i ressortministerier. Træffe foranstaltninger til at sikre en passende behandling af klager.

* Intellektuelle ejendomsrettigheder - Vedtage ny lovgivning om industriel ejendomsret. Tiltræde den internationale konvention om beskyttelse af plantenyheder. Vedtage den nødvendige lovgivning og styrke den administrative kapacitet med henblik på en forbedret ophavsretsbeskyttelse. Tage skridt til yderligere at øge økonomiske aktørers, lovhåndhævelsesorganers og retsvæsenets bevidsthed om intellektuelle og kommercielle ejendomsrettigheder. Træffe foranstaltninger til at forbedre håndhævelsen af intellektuelle ejendomsrettigheder.

Sektorpolitik

* Miljø - Begynde at løse giftproblemerne i Durres og Vlora og spørgsmålet om radioaktivt affald i Tirana og Fier. Sikre håndhævelse af lovgivningen om vurdering af virkninger på miljøet og miljøafgifter. Forbedre samordningen mellem Miljøministeriet og andre forvaltninger, der beskæftiger sig med miljøspørgsmål. Fremskynde gennemførelsen af den nationale strategi for vandforsyning og sanitet samt vandforsynings- og kloakeringsstrategien for landdistrikterne.

* Energi - Gennemføre handlingsplanen for 2003-2005 og begynde at gennemføre den albanske energistrategi. Efterleve de forpligtelser, landet har påtaget sig inden for rammerne af Athen-aftalememorandummet af 2003 om det regionale energimarked i Sydøsteuropa.

* Telekommunikation - Sikre, at sektoren for elektronisk kommunikation liberaliseres effektivt, herunder styrke tilsynsorganer og vedtage passende love og politikker for sektoren.

Samarbejde om retlige og indre anliggender

* Grænseforvaltning - Som opfølgning af den regionale konference i Ohrid i maj 2003 om grænsesikkerhed og -forvaltning gennemføre de foranstaltninger, der er vedtaget af regeringen og præsenteret på ministermødet om retlige og indre anliggender i EU-Vestbalkanforummet i november 2003. Udarbejde en strategi for integreret grænseforvaltning i overensstemmelse med EF's krav. Styrke lovhåndhævelsesorganer med ansvar for grænseforvaltning og forbedre forvaltningsstandarderne. Etablere et passende system for risikoanalyse med henblik på at forbedre grænseforvaltningen ved grænseovergangssteder og "grønne" og "blå" grænser. Øge samarbejdet med nabolandene og mellem nationale lovhåndhævelsesorganer, der beskæftiger sig med grænseforvaltning, ved grænsen og i forbindelse med efterfølgende kontrolaktiviteter. Forbedre udstyr og færdigheder hos albanske lovhåndhævelsesorganer for at sikre, at forfalskede/falske rejsedokumenter opdages.

* Migrations- og asylpolitik - Vedtage og påbegynde gennemførelse af den nationale migrationsstrategi. Sikre, at de procedurer, som er nødvendige for at undertegne og ratificere tilbagetagelsesaftalen mellem EF og Albanien, afsluttes så hurtigt som muligt i 2004.

Formelt vedtage den nationale handlingsplan for asyl. Dække de resterende huller i Albaniens asylrelaterede lovgivning. Gennemføre, især i grænseområder, forhåndsscreeningssystemet med henblik på at identificere personer, der ulovligt befinder sig på albansk område. Respektere "non-refoulement"-princippet. Sikre, at behandlingen af asylansøgninger sker i overensstemmelse med lovgivningen, og at tidsfrister overholdes.

* Politi - Fuldt ud gennemføre loven om politigrader. Udvikle og påbegynde gennemførelsen af et gennemsigtigt disciplin- og forfremmelsessystem. Forbedre politiets efterforskningsmæssige færdigheder. Udarbejde en samlet procedurevejledning for alle kriminalbetjente. Fastlægge klare regler for at sikre et tilstrækkeligt samarbejde mellem forskellige politienheder og den offentlige anklagers kontor. Styrke lokalpolitiet. Sikre retsforfølgning af politibetjente, der er involveret i korruption og andre kriminelle aktiviteter.

* Organiseret kriminalitet, ulovlig handel, narkotika, pengevask og terrorisme - Gennemføre de handlingsorienterede foranstaltninger mod organiseret kriminalitet, der er vedtaget af regeringen og fremlagt på ministermødet mellem EU og Vestbalkan om retlige og indre anliggender i november 2003. Sikre, at den albanske lovgivning klart definerer begrebet "organiseret kriminalitet", så det er foreneligt med EU-lovgivningen og generelt accepterede internationale standarder. Vedtage og gennemføre lovgivning om tyvekoster, der tager hensyn til internationale standarder og også dækker effekter stjålet i udlandet. Sikre samarbejde og informationsudveksling mellem lovhåndhævelsesorganer, ministerier og lovgivere, der er involveret i kampen mod organiseret kriminalitet. Inden for lovens rammer og med fuld respekt for internationale standarder udstrække brugen af særlige efterforskningsmetoder til alle områder i forbindelse med organiseret kriminalitet. Gennemføre den strategi for bekæmpelse af ulovlig handel, der blev vedtaget i 2003. Tage de nødvendige skridt til at forberede indgåelsen af en aftale med Europol.

Styrke den gældende narkotikalovgivning. Sikre en vedvarende indsats i kampen mod dyrkning af og handel med cannabis. Udarbejde en national narkotikastrategi i overensstemmelse med EU's narkotikastrategi og -handlingsplan.

Styrke kapaciteten hos de institutioner, der er ansvarlige for at bekæmpe hvidvaskning af penge. Sikre tilstrækkeligt samarbejde mellem disse institutioner, etablere effektive arbejdsprocedurer og udvikle et passende sagsforvaltningssystem. Håndhæve den gældende lovgivning om hvidvaskning af penge.

Øge det internationale samarbejde og gennemføre relevante internationale konventioner om terrorisme. Forbedre koordinationen og informationsudvekslingen mellem politiet og efterretningstjenesterne internt i Albanien og med andre lande. Forhindre finansiering og forberedelse af terrorhandlinger.

3.2 PRIORITETER PÅ MELLEMLANG SIGT

Den politiske situation

Demokrati og retsstatsforhold

* Yderligere forbedre den offentlige forvaltnings funktionsmåde - Sikre, at de sektorer i forvaltningen, der er ansvarlige for gennemførelsen af bestemmelserne i stabiliserings- og associeringsaftalen, og de sektorer, der er involveret i gennemførelsen af Fællesskabets finansielle bistand, er tilstrækkeligt uddannede og udstyrede til at udføre deres arbejde. Sikre, at lovgivningen for den offentlige forvaltning og dermed forbundne procedurer, herunder i forbindelse med karriereudvikling, forbedres i overensstemmelse med de krav, der stilles til en moderne offentlig forvaltning, og at de nøje gennemføres for at støtte udviklingen af en velforberedt, professionel, gennemsigtig og stabil forvaltning. Sikre, at lokale forvaltninger er i stand til at gennemføre decentraliserede politikker.

* Gennemføre de næste parlaments- og lokalvalg i overensstemmelse med internationale standarder.

* Yderligere styrke retssystemet - Sikre retsforfølgning af alvorlige forbrydelser, særlig organiseret kriminalitet, med særlig opmærksomhed på grænseoverskridende samarbejdsmekanismer. Reducere den nuværende sagsophobning betydeligt og sikre rettidig fuldbyrdelse af domme. Sikre bred offentliggørelse af domstolsafgørelser. Sikre fortsat og tilstrækkelig uddannelse af dommere og anklagere, herunder i menneskerettigheder, etik og handelsmæssige anliggender samt spørgsmål i forbindelse med samarbejds- og associeringsaftalen. Håndhæve lovgivningen om beskyttelse af vidner. Yderligere styrke retsvæsenets uafhængighed ved effektivt at overføre inspektionen af dommeres retlige aktiviteter fra Justitsministeriet til det øverste justitsråd.

* Udvide indsatsen for bekæmpelse af korruption yderligere - Gennemføre de europæiske konventioner om korruption (både strafferetlig og civilretlig), som Albanien har ratificeret, samt GRECO-henstillingerne. Opnå betydelige resultater i kampen mod korruption på alle niveauer og alle områder gennem håndhævelse af hensigtsmæssig lovgivning.

Menneskerettigheder og beskyttelse af mindretal

* Sikre, at lovhåndhævelsesorganer respekterer menneskerettighederne - Sikre, at tilbageholdte og varetægtsfængslede behandles i overensstemmelse med internationale standarder. Garantere, at menneskelig værdighed og personlig sikkerhed respekteres i tilbageholdelsesanstalter, fængsler og institutioner for sindslidende i overensstemmelse med internationale konventioner. Etablere et fyldestgørende ungdomsretssystem. Sikre overholdelse af Europarådets konvention til forebyggelse af tortur og umenneskelig eller vanærende behandling eller straf.

* Sikre ytrings- og pressefriheden - Håndhæve ny lovgivning for trykte og elektroniske medier under hensyntagen til EU's standarder. Sikre, at tildelingen af tv-frekvenser sker på en retfærdig og ikke-diskriminerende måde i overensstemmelse med den nationale plan, og at krav fuldt ud overholdes af tv- og radiostationer. Afslutte det albanske RTV's overgang fra at være et statsejet tv-selskab til en neutral offentlig tjeneste. Opmuntre til fortsat forbedring af den journalistiske kvalitet.

Regionalt og internationalt samarbejde

* Styrke regionalt samarbejde - Indgå og gennemføre en række aftaler med nabolandene om organiseret kriminalitet, grænseforvaltning og tilbagetagelse. Gennemføre aftalememorandummet om det sydøsteuropæiske regionale net af basale transportforbindelser. Fortsætte efterlevelsen af de forpligtelser, som Albanien har påtaget sig inden for rammerne af Athen-aftalememorandummet af 2003 om det regionale energimarked, og gøre fremskridt med hensyn til etableringen af dette marked. Sikre et tilstrækkeligt regionalt samarbejde om miljøspørgsmål.

* Gennemføre internationale forpligtelser - Fuldt ud gennemføre internationale aftaler og konventioner ratificeret af Albanien, særlig konventioner på området for retlige og indre anliggender, menneskerettigheder og mindretals rettigheder samt handel.

Den økonomiske Situation

Fri markedsøkonomi og strukturreformer

* Afslutte privatiseringsprocessen - Navnlig ved at privatisere INSIG (finanssektoren), Albtelecom (telekommunikationssektoren), Servcom, Albpetrol, Armo og KESH (energisektoren).

* Forbedre erhvervsmiljøet yderligere - Håndhæve forbedret handelslovgivning. Sikre, at dommere er veluddannede i handels- og selskabsret. Opnå væsentlige resultater med hensyn til bekæmpelse af svig og korruption. Udarbejde en strategi til bekæmpelse af den uformelle økonomi for bl.a. at sikre redelig konkurrence mellem virksomheder.

* Opnå et fungerende jord- og ejendomsmarked - Håndhæve lovgivningen om tilbagegivelse af eller kompensation for ejendom konfiskeret i kommunisttiden. Færdiggøre kortlægningen og registreringen af jord. Sikre, at overdragelse af ejendom sker i overensstemmelse med lovgivningen, og træffe foranstaltninger til, at alle organer involveret i processen (notarer, ejendomsregistre osv.) fungerer korrekt. Sikre, at bestemmelser vedrørende klassificering og anvendelse af jord overholdes. Udarbejde og vedtage lovgivning om beskatning af jord og fast ejendom.

Forvaltning af offentlige finanser

* Forbedre forvaltningen af de offentlige finanser yderligere - Gennemføre strategien for offentlig intern finanskontrol. Styrke den eksterne revision yderligere og sikre, at både finanskontrolforvaltning og intern revision fungerer korrekt. Etablere effektive procedurer for påvisning, behandling og opfølgning af tilfælde af (formodet) svig og andre uregelmæssigheder, der påvirker nationale og internationale midler.

Europæiske standarder

Det indre marked og handel

* Varebevægelser - Sikre den administrative kapacitet til at gennemføre stabiliserings- og associeringsaftalens krav på dette område. Gøre yderligere fremskridt med vedtagelse af europæiske standarder. Etablere et markedstilsynssystem. Sikre, at organerne med ansvar for standardisering, akkreditering og certificering samt organerne med ansvar for metrologi og kalibrering fungerer bedre under hensyntagen til praksis i EF.

Opnå betydelige forbedringer med hensyn til fødevaresikkerhed samt plantesundhedsmæssige og veterinære forhold i overensstemmelse med EF's krav.

* Told - Sikre den administrative kapacitet til at gennemføre stabiliserings- og associeringsaftalens krav. Sikre en betydelig tilpasning af toldlovgivning og -procedurer og deres gennemførelse til EF's lovgivning og praksis. Garantere korrekt gennemførelse af oprindelsesregler. Fortsætte med at sikre personalestabilitet i toldforvaltningen og forbedre effektiviteten i dens forvaltning. Forbedre resultaterne med hensyn til bekæmpelse af svig, smugleri og ulovlig handel samt nedbringe antallet af sager, hvor toldembedsmænd er involveret i ulovlige aktiviteter, betydeligt. Afslutte gennemførelsen af ASYCUDA i hele landet og fortsætte datamatiseringsbestræbelserne.

* Beskatning - Fortsat styrke skatteforvaltningen. Sikre fuld og effektiv gennemførelse af momssystemet. Forbedre kommunikationen med skatteyderne og forenkle skattestrukturer og -procedurer, herunder procedurer for tilbagebetaling. Give alle skatteydere et unikt identifikationsnummer for skattemæssige formål. Fortsat styrke skatteopkrævningen og -kontrollen samt udarbejde en revisionsstrategi.

* Konkurrence og statsstøtte - Etablere en uafhængig konkurrencemyndighed i overensstemmelse med stabiliserings- og associeringsaftalens krav. Håndhæve konkurrencelovgivningen og forberede etableringen af en operationelt uafhængig statsstøttestruktur. Styrke de strukturer, der er ansvarlige for statsstøtte, og sikre fremskridt i retning mod afslutning af en samlet statsstøttefortegnelse og udarbejdelse af BNP-oplysninger på NUTS II-niveau.

* Offentlige indkøb - Sikre en betydelig grad af tilpasning mellem Albaniens retlige rammer og EU-retten. Opnå fuldt operationelle strukturer for offentlige indkøb, der sikrer, at procedurerne for offentlige indkøb gennemføres i nøje overensstemmelse med lovgivningen og stabiliserings- og associeringsaftalens krav.

* Intellektuelle ejendomsrettigheder - Korrekt gennemføre internationale konventioner, der er ratificeret på området for intellektuelle, handelsmæssige og industrielle ejendomsrettigheder. Sikre en høj grad af beskyttelse af intellektuelle ejendomsrettigheder og opnå resultater med hensyn til bekæmpelse af piratkopiering og efterligning. Sikre en tilstrækkelig administrativ kapacitet for at overholde stabiliserings- og associeringsaftalens krav på dette område.

Sektorpolitik

* Miljø - Fortsætte bestræbelserne for at løse problemerne i stærkt forgiftede områder. Nedbringe støv- og luftforureningsniveauet i byområder. Begrænse forureningen fra Balsh-raffinaderiet, herunder udledningen i Gjanica-floden, og træffe foranstaltninger til at gøre en indsats mod vandforurening generelt. Fortsætte med at gennemføre regionale og internationale forpligtelser på dette område. Styrke miljøkontrollen og sikre tilstrækkeligt effektive sanktioner mod forurenere. Sikre gennemførelsen af den nationale strategi for vandforsyning og sanitet samt vandforsynings- og kloakeringsstrategien for landdistrikterne. Udarbejde og påbegynde gennemførelsen af en strategi for gradvis tilpasning til EU-retten på dette område.

* Folkesundhed - Styrke overvågnings- og indberetningssystemerne for overførbare sygdomme. Lette et tættere samarbejde med de offentlige sundhedsnetværk.

* Transport - Gennemføre den overordnede transportplan. Fortsætte bestræbelserne for at fuldende øst/vest- og nord/syd-korridorerne. Gøre betydelige fremskridt med moderniseringen af Tirana lufthavn og havnene i Durres og Vlora, herunder ved forbedret sikkerhed og grænseforvaltning. Færdiggøre privatiseringen af havnen i Durres. Opnå bedre resultater med hensyn til vejsikkerhed og tage skridt til yderligere forbedringer. Gennemføre aftalememorandummet om det sydøsteuropæiske regionale net af basale transportforbindelser.

* Energi - Fortsætte med at sikre en korrekt gennemførelse af handlingsplaner for energisektoren og gøre yderligere fremskridt med gennemførelsen af den albanske energistrategi. Sikre rettidig gennemførelse af de forskellige projekter, der skal forbedre instrastrukturen for elektricitetsproduktion, -transmission og -distribution. Fortsætte med at gennemføre regionale og internationale forpligtelser på dette område med henblik på at etablere et konkurrencedygtigt regionalt energimarked.

* Telekommunikation - Vedtage og gennemføre de nye EU-rammer for elektronisk kommunikation.

Samarbejde om retlige og indre anliggender

* Grænseforvaltning - Gennemføre den integrerede grænseforvaltningsstrategi og alle internationale forpligtelser, som Albanien har påtaget sig på området for grænseforvaltning. Foretage en effektiv risikoanalyse i forbindelse med grænseforvaltning. Fortsætte med at styrke grænseforvaltningskapaciteten; navnlig sikre, at grænseforvaltningen i Tiranas internationale lufthavn og havnene i Durres og Vlora overholder internationale standarder. Sikre forbedrede sikkerhedsmæssige egenskaber i nye albanske rejsedokumenter. Opnå væsentlige resultater med hensyn til minerydning.

* Migrations- og asylpolitik - Gennemføre Albaniens nationale migrationsstrategi. Sikre, at Albanien er i stand til at opfylde stabiliserings- og associeringsaftalens krav vedrørende EF-borgere, der arbejder og/eller bor i Albanien. Sikre håndhævelse af alle tilbagetagelsesaftaler, som Albanien har indgået; forsøge at indgå tilbagetagelsesaftaler med alle lande i regionen og med oprindelseslandene for migranter, der benytter Albanien som transitland. Gradvist indgå, ratificere og gennemføre alle de vigtigste internationale konventioner på migrationsområdet.

Gennemføre den albanske nationale handlingsplan for asyl. Håndhæve asylrelateret lovgivning og etablere et komplet asylsystem, der efterlever internationale standarder.

* Politi - Fortsætte med at styrke alle politienheder, navnlig gennem passende uddannelse og udstyr. Sikre, at der forefindes et korrekt sagsforvaltningssystem, så der er en veldokumenteret sporingsproces for sager fra den indledende rapport til den endelige afslutning. Opnå betydelige resultater med hensyn til bekæmpelse af kriminalitet samt begrænsning af korruption og anden kriminel adfærd inden for politiets rækker.

* Organiseret kriminalitet, ulovlig handel, narkotika, pengevask og terrorisme - Øge det internationale samarbejde yderligere. Opnå væsentlige resultater med hensyn til hastigheden, antallet og kvaliteten af retsforfølgelser for lovovertrædelser i forbindelse med organiseret kriminalitet og ulovlig handel samt med hensyn til beslaglæggelse af indtægter fra kriminalitet.

Gennemføre den nationale narkotikastrategi. Sikre væsentligt forbedrede resultater med hensyn til bekæmpelse af narkotikahandel, særlig hårde stoffer som heroin og kokain.

Styrke kampen mod økonomisk og finansiel kriminalitet (herunder pengevask og falskmøntneri). Etablere et tværministerielt agentur, der skal beslaglægge indtægter fra kriminalitet. Opnå mærkbare resultater i kampen mod hvidvaskning af penge, både i og uden for finanssektoren.

4. PROGRAMMERING

EU's bistand inden for rammerne af stabiliserings- og associeringsprocessen til landene i det vestlige Balkan ydes gennem de relevante finansieringsinstrumenter, navnlig Rådets forordning (EF) nr. 2666/2000 [2]; nærværende afgørelse får derfor ingen finansielle virkninger. Albanien har desuden adgang til finansiering via multilandeprogrammer og horisontale programmer. Kommissionen arbejder sammen med Den Europæiske Investeringsbank og de internationale finansieringsinstitutioner, navnlig Den Europæiske Bank for Genopbygning og Udvikling og Verdensbanken, med henblik på at lette samfinansiering af projekter med relation til stabiliserings- og associeringsprocessen.

[2] EFT L 306 af 7.12.2000.

5. BETINGELSER

Fællesskabets bistand som led i stabiliserings- og associeringsprocessen for landene på Vestbalkan er betinget af videre fremskridt med opfyldelsen af de politiske kriterier fra København og særlig fremskridt med at realisere de specifikke prioriteter for dette europæiske partnerskab. Indfries disse almindelige betingelser ikke, vil Rådet kunne træffe passende foranstaltninger om suspension af den finansielle bistand på grundlag af artikel 5 i Rådets forordning (EF) nr. 2666/2000.

Fællesskabets bistand er desuden underlagt de betingelser, som Rådet fastlagde i sine konklusioner af 29. april 1997 og 21. og 22. juni 1999, særlig hvad angår modtagernes tilsagn om at ville gennemføre demokratiske, økonomiske og institutionelle reformer.

6. OPFØLGNING

Opfølgningen af det europæiske partnerskab sker gennem de mekanismer, der er etableret som led i stabiliserings- og associeringsprocessen, navnlig ved hjælp af årsberetningen om stabiliserings- og associeringsprocessen.

COMMISSION STAFF WORKING PAPER - ALBANIA - Stabilisation and Association Report 2004 {COM(2004) 203 final}

ALBANIA

Stabilisation and Association Report 2004

EXECUTIVE SUMMARY

Reform in Albania over the past twelve months has been limited. Despite some progress in specific areas, many of the recommendations included in the 2003 Stabilisation and Association Process (SAP) report have not been properly implemented.

The political climate has not allowed for sound reform implementation. The fragile political stability achieved in 2002 has been replaced by tensions between the main political parties and within the ruling Socialist Party (SP) itself. The fight for SP leadership has adversely affected Government stability. With Government attention increasingly focused on these internal difficulties, and with an increasingly obstructive opposition, the reform programme has continued to suffer delays. As a consequence, many shortcomings identified in the 2001 High Level Steering Group Report, the 2002 and 2003 SAP reports, and in subsequent political dialogue with Albanian authorities have not been addressed. The local elections of 12 October were carried out on the basis of a new electoral code. However, serious deficiencies were observed during the elections, and required international standards were not met. The ability of the public administration to implement commitments in respect of the Stabilisation and Association Agreement (SAA) remains an issue of concern.

In the economic field, real GDP growth in 2003 has been estimated at 6.0%, up from 4.7% in 2002. At the end of 2003, inflation reached 3.3%, in line with the Government's target. Privatisation of the largest bank of the country, the Savings Bank, has been a notable achievement. Preliminary steps have been taken towards addressing the land ownership issue. However, the medium-term sustainability of economic growth as well as the country's ability to alleviate poverty are being jeopardised by political uncertainty and limited reform focus. The Albanian economy remains informal to a considerable extent. The business environment is inadequate and offers little to encourage investment. Corruption, organised crime, deficient law implementation and administrative inefficiency continue to place barriers to business and to hinder legal security. Despite its achievement in establishing Free Trade Agreements (FTAs) with countries of the region, Albania has been unable to fully implement all its WTO accession obligations.

The Government has continued to state that Albania's progress in the Stabilisation and Association Process is a top priority. However, its actions have not always supported this. Despite progress made during SAA negotiations in discussing the text of the future agreement, many of the reforms necessary to guarantee its proper implementation have not been carried out. Of particular concern are those issues central to the rule of law. These include the fight against organised crime and corruption and the functioning of the judicial system. Albania deserves credit for a number of initiatives, including its generally constructive role in the region, the reduction of smuggling/trafficking in human beings over the Adriatic/Ionian Seas and the initialling of a Community Readmission Agreement. But results have fallen short of expectations in the key areas of organised crime, corruption, judicial system and public administration reform. Since Albania wishes to progress on its path towards the EU, it is crucial that it demonstrates the political will, the determination and the capacity to address the key issues identified in this report without delay.

POLITICAL SITUATION

Democracy and rule of law

Albania remains a young and rather unstable democracy. The medium-term interest of the country is often sacrificed to shorter-term, narrower political interests. Consolidation of democratic culture is essential to bring about necessary reforms.

Albania has adopted a new electoral code based on recommendations formulated by the international community. However, the conduct of the local elections in October 2003 did not meet international standards. Further political will is needed to ensure that elections are free and fair.

Some steps have been taken to improve the functioning of the judicial system, but considerable efforts are still necessary to ensure law enforcement, in particular as regards serious crime. Public administration reform has also seen some progress. However, more determination and political will is necessary to create a modern, independent and efficient public administration. Some encouraging efforts have been made to strengthen civil society, but these will need to be intensified.

The rule of law in Albania remains deficient. Albanian law enforcement bodies do not yet guarantee consistent enforcement of the law, in accordance with international standards. Widespread corruption and organised crime continue to be serious threats to the stability and progress of the country. Further efforts are needed to ensure full respect of human rights.

Assessment of democratic institutions and attitudes to the state

Constitution: The Constitution of Albania was passed by referendum in November 1998 and is an adequate basis for proper development and implementation of democratic principles and fundamental freedoms, including political pluralism, freedom of expression and religion, and respect of minorities. Albania has continued to strengthen its institutional and legal system. Institutions and authorities should ensure that constitutional provisions are properly implemented in all circumstances. They should also accept and implement the decisions of the Constitutional Court.

President of the Republic: The President is the Head of State and, according to the Constitution, plays only a limited executive role. He/she is elected by the Parliament for a period of five years. In June 2002 the current president, Mr Alfred Moisiu, was elected by broad-consensus by the political parties. He has made considerable efforts to facilitate the political process and mediate cross-party agreement on fundamental reform issues such as electoral reform, property legislation and judicial reform. His initiatives, though formally limited by the Constitution, have had significant impact.

Parliament: The Assembly of Albania (unicameral parliamentary system) has 140 members: 100 are elected by a first-past-the-post system and 40 by proportional representation. The main political parties remain the ruling Socialist Party (SP, 75 seats), and the Democratic Party (DP, 45 seats). A number of smaller parties have formed alliances with the main parties, creating sometimes unlikely coalitions. General legislative elections are expected to take place in 2005. The Albanian Parliament has increasingly taken central stage in political life, and has become the main forum for political debate. The opposition has generally striven to impose its will within the bounds of legitimacy. However, the temptation to resort to boycott remains present, and the DP seriously obstructed the work of the Parliament at the end of 2003 as a protest at both the government's behaviour, and the outcome of the local elections. Despite the often low brow debates held in plenary sessions and proceedings thereafter, a greater quantity of important issues have been discussed or reviewed by the Parliament than before, including by ad hoc parliamentary committees on electoral reform, property-related legislation, the national intelligence service, the "pyramid schemes" crisis, etc. Nonetheless, there remains considerable room for improvement in relation to the operation of Parliamentary Committees, and in particular investigative Parliamentary Commissions. The parliamentary debate session on the 2003 Stabilisation and Association Process (SAP) Report, and the joint majority-opposition resolution adopted accordingly, firmly placed the Parliament as a central actor on SAP-related issues. However, this resolution has not been properly implemented. Furthermore, in order to better support Albania's commitment to the SAP, the ad hoc Committee on European Integration should be transformed into a permanent committee with well defined responsibilities.

Executive: The Government underwent a new period of instability over the second half of 2003, due to the revival of internal quarrels between Prime Minister Fatos Nano and former Deputy Prime Minister and Minister of Foreign Affairs Ilir Meta. The latter's sudden resignation in July and the dismissal of the Minister of Public Order for an alleged assault on a TV journalist led to these two key ministerial posts becoming vacant for a number of months. Conflicts within the ruling party worsened with the approach of the SP national congress at the end of 2003, and a return to inflammatory rhetoric by both the opposition and the majority, contributed to a deterioration of the political situation. As a result, the Government has been, once again, more focused on internal issues than on the important reforms that should be imperatively undertaken in order for the country to improve its socio-economic situation and to make progress in its path towards the EU. Areas of particular concern falling directly under the Government's remit remain the fight against organised crime and corruption, proper implementation of legislation and stability of administration. Considerable efforts need now to be made in view of drastically speeding up the pace of reforms after the re-establishment of the ruling majority in Parliament and a new Government at the beginning of 2004.

Public Administration: There has been some progress in public administration reform over the reporting period, but sustained efforts remain necessary. The adoption of the law on control of officials' assets in April 2003, the adoption of a new Code of Ethics, the recovery by the Department of Public Administration (DoPA) of its competence on fixing public administration's salaries have all been positive steps. Steps towards improving the career and salaries system, as well as the various training organised by the Training Institute for Public Administration (TIPA) are also positive elements. Nonetheless, further efforts are necessary in all these areas in order that laws and codes answer to the expectations through proper implementation. TIPA needs to ensure its long term financial sustainability, and progressively to enhance its training capacities to meet the challenge of substantially upgrading Albania's public administration.

Measures have been taken aimed at extending the scope of the Civil Service Law (CSL), so as to create an overall legal framework with common principles for all civil servants. Civil servants belonging to both the Albanian Public Procurement Agency and Tax Administration are now covered by the CSL and, in addition, steps are being taken to ensure that CSL principles are also applied to customs officials. The Civil Service Commission (CSC) now appears to function better, but should make further efforts to ensure that all its duties under the law are properly implemented. A clearer division of responsibilities and better understanding between Department of Public Administration (DoPA) and the CSC has been established. Progress in the dispute settlement function and in the monitoring of CSL implementation at local level is now crucial.

Despite these steps, long-standing issues such as corruption, political interference, chronic lack of adequate human resources, high turn-over, and insufficient implementation of the public administration-related legal framework, continue to hamper the consolidation of a professional and independent civil service. In 2003, not all reform objectives were met. Amendments to the CSL were not adopted, contrary to the government's plans, and DoPA was unable to produce very much needed guidelines in respect of recruitment procedures, the career system and disciplinary measures. Progress regarding strengthening of the function of Secretary General in line Ministries, Council of Ministers and the Assembly has been limited. This is a key function which should help to consolidate a clearer separation between the administrative leadership (represented by the Secretary General) and the political leadership. Further progress in this area is deemed essential to the proper functioning of the Albanian public administration.

Although the use of fair and professional selection procedures has seen some progress, subjective nominations remain far too frequent. There have been reports that strong pressure had been exerted by local and central political authorities on civil servants in the months preceding and following the local elections of October 2003. Clearly, this has an adverse effect on the stability and efficiency of the public administration. Albania should therefore make determined efforts to address the above-mentioned problems, and to strive to create a professional and well equipped public administration capable of responding to the many challenges - both present and future - that it faces.

Local government: The decentralisation process has continued to make slow but constant progress, and additional autonomy has been granted to local government units. However, there has also been a tendency to increase too much the role of prefects as a local arm of government. The exclusive functions of municipalities and communes have become clearer. Substantial fiscal authority has been assigned to local government structures. In relation to competences, a number are now decentralised. Nevertheless, important areas such as water and sewage, and education and social protection, remain mainly under control of the central authority. The success of decentralisation depends very much on the proper and continuous strengthening of local capacities accompanied by adequate training programmes. In this respect, the proposal to establish a new training centre for public administration officials including locally elected government members and employees is a commendable initiative. The review of the existing administrative map and the new territorial division to be launched in 2004 is a very important step in the framework of the territorial administrative reform. Local government boundaries will be redrawn with many smaller communes merging to create fewer and larger units. This process has significant political implications and should be carried out in a constructive political climate, with the involvement of all stakeholders.

The local elections of October 2003 were carried out on the basis of a new electoral code, which was adopted in June 2003 thanks to exceptionally constructive co-operation between Albania's two main political parties. The new code integrates many of the recommendations made by the international community in the aftermath of the 2001 Parliamentary elections, including the recommendation that a special judicial body responsible for addressing complaints be set up. However, substantially improved elections did not materialise. While the elections process was praised in respect of the adoption of a new legal framework, the behaviour of the police, the improved appeal system and generally balanced media coverage, serious shortcomings were also observed. Concerns focused particularly on areas such as voter registration and voter lists, delays in the release of campaign funds to political parties, the lack of effective rules of procedure within the Central Electoral Commission, the low level of knowledge prevalent amongst mid- and lower- level election commission members (especially at local level) as to the new code, and unacceptable delays and interferences in the counting and tabulation of results. Furthermore, the percentage of female candidates continued to decrease, and "family voting" prevented many (especially women) from properly exercise their rights. During crucial moments, political parties did not show sufficient commitment to democratic principles. The post-electoral phase was particularly difficult. Results in Tirana were only made available weeks after the voting, and were heavily contested by the opposition. The Electoral Court requested a re-run of the elections in over 30% of the voting centres in the capital, i.e. in 118 voting centres. Despite very low participation (27%), the re-run process in December was calm and orderly, and confirmed initial results. On the other hand, the re-run of elections in the Himara region and other areas proved highly problematic. In Himara, the occurrence of serious manipulations obliged the Central Electoral Commission to take the drastic decision of reversing preliminary results. The final conclusion is that more efforts and political will by all actors are necessary in Albania in order to ensure fully democratic elections.

Civil Society: Some progress has been made over the reporting period. Various actions have been implemented by civil society organisations in order to contribute to the development of the country. Initiatives have been undertaken to encourage collaboration between state institutions and civil society organisations. For example, the Ministry of Labour and Social Affairs signed an agreement of cooperation with representatives from some 110 NGOs in the fields of social services delivery and poverty reduction. Civil society organisations have been involved in the drafting of national strategies in relation to important social areas such as children and anti-trafficking. There are also other cases of cooperation with trade unions or employers associations. The Assembly of Albania has approved an internal regulation allowing attendance of civil society organisations at sessions of parliament. Public campaigns organised by civic movements, such as the "Mjaft!' (Enough!) campaign countering public apathy, as well as other actions addressing local community needs, have achieved a certain degree of success. Strong pressure from civil society organisations also contributed to the resignation of the Minister of Public Order following an incident with a TV journalist. The participation of these organisations in monitoring the local government elections of October was also a positive step.

Nonetheless, civil society in Albania remains weak. Professional organisations, think-tanks, and both civic and grass-root associations remain limited and lacking in the organisational experience, financial resources and advocacy skills necessary to influence decision-making. NGOs are more numerous, but have similar problems and are considerably dependent on foreign funding. Trade Unions are also weak, with limited affiliations. Concrete initiatives combined with a more proactive government role remain essential to civil society development in Albania.

Armed Forces: The Albanian authorities have continued to show willingness to co-operate actively with the international community, and a limited number of Albanian troops are participating in the ongoing operations in Afghanistan and Iraq. Albania has continued to implement its 2002 Military Strategy on Defence, which is aimed at progressively meeting NATO standards.

Assessment of judicial system, law enforcement and respect for the rule of law

Judicial System: Despite some limited improvements, the Albanian judicial system remains weak. Recommendations included in the 2003 SAP report have only been partially implemented. The professional capacities of judges, prosecutors, judicial police and administrative staff remain limited, and infrastructures and equipment are inadequate. As a consequence, the overall performance of the judicial system is poor, as is its perception amongst the general public. According to surveys of the Southeast European Legal Development Initiative (SELDI), corruption encompasses all actors of the judicial system, including judges, prosecutors, administrative staff and lawyers.

In terms of legislation, a number of amendments to existing laws have addressed issues such as judge and prosecutors' salaries and court organisation, including the High Council of Justice, which is the authority responsible for the protection, nomination, transfer, discharge, career, education, professional evaluation and inspection of activities of judges. Some legislative improvements have also taken place regarding the prosecution office and judicial police. In addition, a number of international conventions have been ratified such as: the European Convention "On the international Validity of Criminal Judgments"; an additional protocol to the European Convention "On Cyber-crime, concerning the criminalisation of acts of racist and xenophobic nature committed through computer systems"; and an Additional Protocol to the "Criminal Law Convention on Corruption". At the EU-Western Balkan Forum JHA ministerial meeting of November 2003, Albania, together with the other Western Balkan countries, presented a commitment to establish regional co-operation amongst prosecutors with the aim of facilitating proof-taking.

However, the career structure and salaries of judges and prosecutors needs further improvement, as well as legal provisions on the transfer and promotion of magistrates. Appointments to senior positions are often arbitrary. The direct appointment of judges and prosecutors, although provided for by law, constitutes a serious subject of concern, particularly since this tends to be the norm, rather than the exception. Only transparent and competitive examinations can help to guarantee the selection of skilled and independent judges and prosecutors, based on objective and impartial criteria. The same overall lack of transparency and impartiality affects other important aspects of judicial operations including case management within prosecution offices and courts, and the assignment of cases to judges and prosecutors. Moreover, the courts do not regularly publish court decisions, and the availability of those published is not sufficiently wide. The systematic publication of court sentences would increase transparency and contribute to decisions of higher quality.

The system of internal control of the performance and ethical conduct of judges and prosecutors is assigned respectively to the High Council of Justice and the General Prosecution Office. Nonetheless, the Ministry of Justice is also empowered to carry out inspection activities, which may pose a threat to the independence of the judiciary. In addition, the internal inspectorates of both the High Council of Justice and the General Prosecution Office are not sufficiently effective and immunity for judges and prosecutors can easily convert into impunity. In 2003, a total of twenty five disciplinary proceedings were concluded against nineteen prosecutors and six judges, leading to the dismissal of eleven prosecutors and three judges. However, practically no criminal proceedings have been initiated against judges and prosecutors. More attention should be paid to the ethical training of the judiciary.

The School of Magistrates, which is entrusted with the selection and training of judges and prosecutors, continues to carry out its tasks with relative success, and has implemented training activities focused on EC legislation and international conventions. However it chronically lacks budgetary resources and its operation is crucially dependent on the continuing financial and organisational support of international donors and partners. The adoption of a well-thought out medium/long term strategic plan is particularly important.

The limited prosecution of serious crimes continues to be a matter of concern. Albania has taken steps to address this issue through the establishment of a Serious Crimes Court. Measures should now be taken to ensure the adequate functioning of this Court. In this context, the adoption of adequate legislation on witness protection is seen as a crucial element to support the proper functioning of criminal justice. In addition, it is also important that serious public allegations of criminal behaviour against specified persons be investigated and lead, where appropriate, to prosecution.

Some progress has been made regarding the execution of court sentences. The execution rate during the first six months of 2003 reached 52% (execution rate in 2002 was 48%). Nonetheless, efforts should continue in order to further improve the functioning of the Bailiffs Office and to accelerate the execution of sentences, particularly when the state is the losing party.

Prison system: According to the Albanian authorities, the Albanian prison population stands at approximately 2 200. Despite completion of the Rogozhina prison and Kruja Mental Institute in 2002, Albania's prisons generally remain in poor condition. There is a persistent problem with overcrowding and, as a result, approximately 300 convicted prisoners are still being held in police stations. The prison at Peqin was completed in mid-2003. The completion of the Lezha and Fushe-Kruja prisons in 2004 should help improve the situation.

Albania has been unable to address the situation of prisoners held at pre-detention facilities (mainly police stations - approximately 1300 on remand and 300 already sentenced). Responsibility for this matter has been legally transferred from the Ministries of Public Order to the Ministry of Justice but practical results have so far been very limited. Concrete action in this area remains a matter of urgency. Measures should be taken to ensure the respect of basic human rights principles in pre-trial detention procedures. In addition, Albania should take steps towards the establishment of an adequate juvenile justice system.

Rule of law: Little progress has been made in Albania as regards general respect for the rule of law. The rule of law remains adversely affected by the weaknesses of the judicial system and public administration, as well as by organised crime and corruption.

Corruption in Albania remains a serious problem. According to the 2003 Transparency International Corruptions Perceptions Index, Albania has a score of 2.5 out of 10 (where a country free of perceived corruption receives 10 points on the scale), ranking 92 out of 133 countries.

Albania participates in the Council of Europe's Group of States against Corruption (GRECO) and other international anti-corruption initiatives. The Government has continued with the design and implementation of Action Plans against corruption. The 2003-2004 Plan was adopted in August 2003. In September, a Triangular Commission involving the Government, Civil Society and the General Prosecution was set up. The "Law on the Declaration and Control of Assets, Financial Obligations of the Elected and some Public Officials" was enacted. As far as Criminal Law provisions dealing with corruption are concerned -following Albania's ratification of the European Conventions on Corruption (in criminal and civil matters)- a working group of national and international experts has been set up in order to work out proposals to harmonise the provisions of the Conventions with existing Albanian legislation. In this respect, it is expected that a package of draft legislation will be adopted by the Parliament during the first half of 2004.

In relation to the organisation of law enforcement bodies, a specialised unit attached to the Tirana Prosecution Office has been set up, with the responsibility of dealing with crimes related to the areas of Taxation, Customs, Public Procurement and financial crimes in general. Albania needs to ensure that this unit also covers corruption cases. The unit reportedly consists of three prosecutors and five judicial police officers specialised in investigating crimes in the aforementioned areas.

However, despite the above-mentioned developments, concrete results in the fight against corruption remain very limited. According to the General Prosecutor's Office, in the first half of 2003 there were a total of 271 proceedings in relation to corruption. However, most of these proceedings related to a Criminal Code provision ("Abuse of Office"), which is less serious and more leniently punishable than bribery-taking. The problem in Albania is not the absence of strategies and legislation, but rather deficiencies in their implementation and enforcement. Anti-corruption action plans should be better designed and implemented in order to address effectively Albania's corruption problems. In particular, measures should be realistic, precise and measurable, and should not only deal with good governance, but should also include specific anti-corruption actions. Communication and coordination between the ministries, institutions and organisations represented in the Anti Corruption Monitoring Group (ACMG) should also be improved. Furthermore, the adoption and implementation of more effective legislation against bribery, as well as the reduction of the list of officials covered by immunity and the strict compliance with immunity-related international rules and practices, would also contribute to fighting corruption more efficiently.

Human rights and protection of minorities

Human rights and fundamental freedoms are guaranteed by the Albanian legislation. However, efforts to ensure their enforcement should be further enhanced. Law enforcement bodies remain insufficiently acquainted with human rights obligations, and serious allegations of mistreatment continue to be made against the police. The judiciary needs to be better prepared in order to deal properly with human rights cases. Attempts by the Government to interfere with the media have reportedly continued. In respect of economic rights, some progress has been made regarding the issue of the restitution/compensation of confiscated land through the preparation of new legislation.

Albania should also make further efforts to reach higher standards concerning the protection of minority rights. In particular, it needs to meet requirements regarding the accurate evaluation of the size of minorities in Albania, and to improve the minority-related legislation so that it supports the implementation of international conventions ratified by Albania in this area.

Civil, political, economic and social and cultural rights

The Albanian Constitution remains an adequate basis for the proper implementation of human rights and fundamental freedoms. Albania ratified the European Convention on Human Rights (ECHR) in 1996. Some efforts towards approximating Albanian legislation with this convention have been made over the reporting period, with for example the adoption of a new Family Code claimed to be compatible with ECHR. Nevertheless, Albania should be more ambitious in attempting to improve its human rights record. More convincing steps should be taken to address cases of police maltreatment or to tackle properly the deplorable conditions faced by people detained in police stations. Further action aimed at tackling human rights-related issues such as the enforcement of court decisions, the protection of the right to property, and the compensation of formerly prosecuted groups should be taken. Trafficking in human beings remains a serious problem and should be addressed more vigorously (see also item 4.4.5 on Organised Crime).

The rights to seek redress, a fair trial or protection against arbitrary arrest or detention all exist in law. However, implementation and enforcement of these rights remains poor, and a much more proactive attitude is necessary from the Government. The right to vote is guaranteed by the 1998 Constitution. Nonetheless, the structural shortcomings of Albania's electoral system, most notably the inaccuracies of the voter's register and the practice of group/family voting, have led to difficulties in properly exercising this right. In September 2000, Albania abolished the death penalty in peacetime. The right of assembly and demonstration is generally respected and opposition rallies normally take place without major incident. However, efforts should be made to improve the police preparation to handle in an adequate manner tense or violent situations which may occur during demonstrations.

The freedom of the media in Albania is guaranteed by the Constitution. In July 2003, the Assembly approved amendments to the Law on Public and Private Radio and Television aimed at fighting piracy. However, despite the large number of newspapers and other written/broadcast media in Albania, none are completely immune from political or financial pressure. Increased transparency regarding media ownership is crucial. Allegations of Government attempts to influence media reporting, through generally subtle forms of pressure (financial and fiscal pressure for example), or through systematic recourse to defamation suits, have continued. In this regard, the Government should refrain from any attempts to use pressure or harassment against media outlets, and should bring defamation law into full compliance with European standards.

Albania should also take further steps to encourage the development of a sustainable and professional media. It needs, in particular, to: update and enhance legislation relating to printed and electronic media, taking into account EU standards as appropriate; finalise the National Plan for Radio and Television Frequencies; take concrete action aimed at ensuring the independence of the National Council on Radio and Television; and complete the transition of the Albania RTV from a state television to a neutral public service broadcaster. Moreover, measures should be taken in respect of improving journalists working conditions, as the current situation does not promote the development of objective and professional journalism.

During 2003, the office of the People's Advocate (Ombudsman) dealt with about 4000 complaints. However, 40% of the cases were found to be outside the competences of the office. From those admitted, 25% were resolved in favour of the complainant. Although, public awareness of the Ombudsman's function has continued to grow, further efforts should be made in order to promote this institution and to broaden its competences. While the most common complaints examined by the office have concerned police behaviour and the lack of enforcement of court decisions, it has also been dealing with issues related to the electoral process and to the improvement of public services for citizens.

The right to property remains legally guaranteed. With the support of OSCE, new legislation has been prepared in order to address the long overdue constitutional requirement concerning the restitution/compensation of land confiscated during the communist period. The final draft of this law on Recognition, Restitution and Compensation of Property was delivered to the Assembly in November 2003. The two major political parties have supported in principle this draft legislation, but smaller opposition parties and ex-owners associations have expressed strong objections in respect of provisions dealing with restitution and financial compensation. Although the legislation will not be able to satisfactorily address all claims by all parties, this draft law - if properly implemented - would be a solution to resolve this issue to a large extent, which continues to hamper Albania's socio-economic development. In any event, the Albanian Government should make available, as soon as possible, all necessary data to determine the land available for restitution or compensation; identify clearly all outstanding restitution and compensation claims; and develop a credible financial plan capable of covering of possible compensation costs.

The relative progress achieved in the field of social dialogue can be seen in increased collaboration between state structures and workers' organisations at institutional level. For example, this progress can be seen in the participation of trade unions and employers' associations in important institutions such as the National Council of Labour or the state Social Insurance Institute which is in charge of the pension systems management. Also, the signing of a memorandum of understanding between the Ministry of Labour and Social Affairs on behalf of the Albanian Government and the two main Albanian trade unions was a positive step. The memorandum is aimed at improving labour legislation, including the Labour Code, in accordance with international labour standards. However, insufficient implementation due, amongst other things, to a lack of adequate structures and capacities remains an important issue to be addressed. There is much to be done regarding rights of workers in the private sector. Trade union organisations still remain weak in organisational and training terms. Efforts aimed at increasing affiliation numbers as well as de-politicisation need to be further enhanced.

Despite initiatives such as the establishment of a Committee for Equal Opportunities and the endorsement by the government of a Gender platform for women based on the Beijing Platform for Action (1995), gender equality is not yet sufficiently enshrined in Albanian society. While it is possible for women to accede to important political, social and economic posts, the tradition of a male-dominated society remains predominant particularly in rural areas. Actual progress in this area, if any, remains limited. For example, even though already poorly represented in politics, there was a minimal representation of women as either candidates or electoral commission officials during the 2003 local elections (indeed the female presence was lower than it has ever been since the fall of the communist regime). Concrete steps should be taken to improve this situation.

Academic and religious freedoms are guaranteed by the Albanian Constitution and are generally exercised without particular limitations. Albania continues to be a good example of religious harmony. However, sustained efforts should be made in order to reform the education system and enhance its quality. The issue of education in minority languages deserves continued attention.

Minority rights and refugees

Under the existing legislative framework, there are three recognised national minorities (Greek, Slav-Macedonian and Montenegrin), and two cultural minorities (Vlach and Roma) in Albania. However, the largest group is the Greek minority, found principally in southern Albania. Albania's legislative framework is not sufficient to comply fully with the requirements of the Council of Europe's Framework Convention on the protection of National Minorities, to which Albania is a party. The provision of primary and secondary legislation in minority languages is still required in order to fully implement all constitutional provisions and laws. Albania should therefore take determined steps to improve its minority-related legislation so as to ensure the implementation of the relevant constitutional provisions, as well as the respect of the obligations resulting from the international conventions that Albania has ratified.

Albania should aim at higher standards in the protection of minority rights. It should devote more attention properly to address the claims of its minorities (for example, incidents leading to justified complaints by the Greek minority have occurred in relation to the conduct of the last local elections). Despite Albanian commitments in the framework of its political dialogue with the EU, a government report outlining with precision the size of each national minority in Albania remains overdue. The staff dealing with minority issues also remains very limited. Some progress has been made in finalising and adopting the National Strategy for the Improvement of Roma Living Conditions, but implementation is still inadequate, and concrete action in favour of this minority remains limited.

In conclusion, Albania should be more ambitious and strive to ensure adequate protection of minority rights throughout the whole Albanian territory in conformity with the Council of Europe's Framework Convention on the protection of National Minorities.

The number of refugees in Albania continues to be small and does not constitute a great problem.

Regional and international co-operation/obligations

Albania has maintained a generally constructive attitude towards its regional and international relationships.

Albania's relations with neighbouring countries have continued to improve. Albania has concluded all the required Free Trade Agreements (FTAs), in accordance with the Memorandum of Understanding for Trade Facilitation under the Stability Pact and has ratified most of them.

In the multilateral field, Albania has remained an active member of the Council of Europe (CoE) and OSCE, and has contributed to the main initiatives for regional co-operation in South-East Europe. However, international obligations have not always been met due to the general difficulty Albania has in implementing and enforcing legislation. The ongoing negotiations for a Stabilisation and Association Agreement (SAA) have revealed that Albania is encountering certain difficulties in fully implementing all its WTO accession obligations. Albania is now taking steps properly to address this issue.

Regional co-operation

Albania is a member of many of the initiatives currently taking place in the Balkans, including the Stability Pact for South Eastern Europe and the South-Eastern European Cooperation Process (SEECP). Albania has been co-chairing the Stability Pact's Working Table on "Local Democracy, the Media, and Cross Border Cooperation" and, in December 2003, it hosted the Stability Pact Regional Table. Albania also participates in the South East European Cooperation Initiative, the Adriatic-Ionian Initiative and the Black Sea Economic Forum. Albania is an active participant in these initiatives.

Albania has played an ever increasing role in encouraging inter-regional stabilisation, political dialogue, and trade and economic co-operation. It has generally maintained a non-interfering and neutral stance concerning Albanian minorities in neighbouring countries. Albania has successfully completed the negotiations for Free Trade Agreements (FTAs) with the signatories of the 2001 Memorandum of Understanding for Trade Liberalisation and Facilitation [3], although only the FTAs with Croatia, FYROM, Bulgaria and Romania are currently in force. Albania has also concluded an FTA with UNMIK/Kosovo and has started FTA negotiations with Turkey. In addition to trade, Albania also aims at further enhancing relations with its neighbours in relation to other important areas such as the fight against organised crime, judicial co-operation, border and visa-management, readmission, environment, transport and energy. These efforts should be pursued with vigour.

[3] Albania, Bosnia Herzegovina, Bulgaria, Croatia, Macedonia, Moldova, Romania, Serbia and Montenegro.

Relations between Albania and the Former Yugoslav Republic of Macedonia (FYROM) have continued to improve. The FTA between both countries is producing its first results with bilateral trade increasing. Political dialogue has been very active between both countries. Many ministerial meetings have taken place, discussing political, economic and social developments. These contacts have provided the platform for the planned Agreement on Neighbourhood and Friendship. Border incidents have been limited over the reporting period, which is a positive step. However, cross border relations and border management should be further enhanced in order to fight successfully against organised crime and all types of trafficking, as well as to prevent new border incidents.

Relations with the State Union of Serbia and Montenegro (SCG) are reasonable, despite some tension following the signature of a FTA between Albania and UNMIK/Kosovo and declarations by the Albanian and SCG's Parliaments related to Kosovo's future. Due to the restructuring of the Serbian and Montenegrin state, some outstanding agreements have not yet been ratified by both states, namely the agreement to avoid double taxation, and agreements in the fields of health, tourism and investment. In November 2003, the FTA between SCG and Albania was finally signed. Preparations are also underway for a bi-lateral Agreement on Organised Crime and Illegal Trafficking.

Relations between Croatia and Albania have continued to be positive. The FTA between the two countries entered into force in spring 2003, although some difficulties in implementation have been experienced at customs points due to poor knowledge of the agreement's provisions. In 2003, bi-lateral agreements were signed in the areas of health, customs cooperation and readmission. Steps have also been taken towards easing visa policy between both countries. High level political dialogue has continued.

Relations with Bosnia and Herzegovina (BiH) have also developed in the right direction, although bilateral contacts are limited. A FTA was signed in November 2003 and its entry into force is expected during the first half of 2004. Agreements on transport, education and science, as well as on visa liberalisation for owners of diplomatic and service passports, have also been signed.

Relations with acceding and candidate countries are constructive and have mainly focused on their experience of striving for EU integration. Several agreements have been signed with Bulgaria (on transport, health, customs). Relations with Turkey are good and co-operation has focused on defence, air transport and public order. As indicated above, the FTAs with Bulgaria and Romania are already in force, and an FTA with Turkey is under negotiation.

Relations with Italy have continued to strengthen. This has been confirmed by the number of high level visits paid to the country during the year. Italy is Albania's main trade partner. Albanian imports from Italy represent over 30% of total imports. Albania exports to Italy represent over 70% of total Albanian exports. Given the strength of these economic relations, a pilot project for a central office, composed of all public and private Italian entities active in Albania, has been established. Italy has also remained Albania's primary donor. The implementation of the 2002-2004 Co-operation Protocol between both countries (EUR 205 million during a three-year period, in addition to EUR 160 million for programmes already underway) has continued, with emphasis on roads and transport, water and sanitation, energy, agro-industry, public heath, private sector development and social and institutional support. Co-operation between Italian and Albanian local and regional entities has also increased, as has Italian support in key JHA-related areas through the establishment of police liaison officers in Tirana, and the involvement of both the "Guardia di Finanza" and the Italian army.

Relations with Greece have remained positive. A Programme for Cultural Co-operation has been ratified, as have several other bilateral agreements, most notably in the areas of health and military co-operation (e.g. and agreement for the reconstruction of the naval base at Bisti i Palles was ratified). Trade relations have remained strong, with Albanian imports from Greece rising to about 22% of total imports. On the other hand, Albanian exports to Greece represented approximately 13% of the country's exports. Along with a number of small and medium size assistance programmes already underway, another EUR 50 million has been earmarked for a five-year period of assistance to Albania, in the context of the Greek Plan for Economic Reconstruction of the Balkans. Economic co-operation covers many sectors. Greek direct investments are estimated to be over EUR 500 million. A new border crossing point was inaugurated at Tri Urat, while it is foreseen that another one at Qaf Bote-Konispoli will be constructed with Greek aid in order to improve the overall management of common border-crossing points.

International co-operation and obligations

Albania is member of a number of international organisations, including the Council of Europe (CoE), the Organisation for the Security and Co-operation in Europe (OSCE) and the World Trade Organisation (WTO). Albania has also ratified a considerable number of international conventions in all areas. However, actual implementation remains deficient. In this respect, it is important that the Albanian authorities take determined action in order to improve Albania's overall implementation record.

Albania joined the Council of Europe in 1995. The consequent legal commitments of membership are being fulfilled. However, this process is being carried out at far too slow a pace. Enhancing implementation of the CoE conventions should be a priority for the Albanian authorities, as these conventions address issues of particular importance such as, for example, the protection of human and minority rights, and the fight against corruption.

Albania acceded to the Organisation for Security and Cooperation in Europe (OSCE) in 1991, and in 1997 the OSCE began its work in Albania when an office ("The OSCE Presence in Albania") was established in Tirana. The 15 field stations initially established have been reduced to 5. The OSCE's original mandate has been amended several times. In the second half of 2003, this mandate was updated and renegotiated with the Albanian Government. It will now focus on specific issues such as property, regional administrative reform, elections, the Parliament, and sectoral-related issues. In line with its current mandate, the OSCE is assisting the Albanian authorities in important areas such as the development of the property-related legislation, the continuation of electoral reform, the improvement of the Albanian civil registry and the functioning of democratic institutions. The OSCE has also proved to be an important actor in facilitating inter-party cooperation. Encouragingly, Albania successfully chaired the Forum on Security and Co-operation, one of the pillars of the OSCE, between January and April 2003.

Albania has been a member of World Trade Organisation (WTO) since September 2000. Despite relatively rapid general liberalisation and claims by the authorities that Albania had no particular problem in complying with its WTO schedule, it has since become clear in the context of the ongoing negotiations for a Stabilisation and Association Agreement, that Albania has indeed had difficulties in meeting all of its WTO commitments and that occasionally, it has even introduced measures contrary to them. Albania has now taken steps to regularise this situation. It is important that, in future, these occurrences are avoided. Otherwise, they risk undermining Albania's credibility as a serious trade partner.

Albanian efforts to become a member of the North-Atlantic Treaty Organisation (NATO) are ongoing. Albania has been party to regional collaboration in creating a NATO strategy for membership with its neighbours. In May 2003, Albania signed, together with Croatia and FYROM, an Agreement with the US (the "Adriatic Charter") - the main objective of which is to facilitate NATO accession.

As regards the International Criminal Court (ICC), Albania ratified in June 2003 a bilateral immunity agreement with the United States which regretfully runs contrary to the "EU guiding principles concerning arrangements between a state party to the Rome Statute of the ICC and the United States regarding the conditions of surrender of persons to the court" [4].

[4] The guidelines were adopted by the Council on 30 September 2002.

ECONOMIC SITUATION

Current Economic Situation

Following reduced GDP growth in 2002, the economic situation in 2003 points to sustained growth of about 6%. A number of elements, notably political instability, uncertain electricity supply and pending structural reforms could however weigh against current performance.

Export performance improved in 2003, but the trade deficit, estimated at some 21.5% of GDP remains very large. As usual, a substantial and stable inflow of remittances from Albanians living abroad (estimated at 12% of GDP) has compensated for the trade figures, whilst the current account deficit is projected to have decreased slightly, to around 8.5% of GDP.

On the basis of preliminary data, real GDP growth in 2003 is estimated to have reached the 6% target, compared to an estimated 4.7% growth in 2002. This increase in growth has been supported by improvements in power supply, allowing for higher levels of economic activity, as evidenced by increased industrial sales indices in almost all major sectors. A modest increase was also registered in agricultural production, following the repair of the irrigation system which had been damaged by the floods of September 2002. However, these developments remain subject to downside risks, such as political instability, uncertain electricity supply and pending structural reforms. Another concern relates to the concentration of economic growth in few sectors, such as services and construction. Albania's GDP per capita amounts to about EUR 1600.

According to the Albanian statistical office (INSTAT), unemployment reached about 16% at the end of 2003, which represents a slight increase compared to 2002 (15.8%). Unemployment figures should however be treated cautiously, as an important number of those people unemployed do not register with social security services and are active in the shadow economy. According to the International Labour Organisation (ILO) the level of unemployment in the country was higher and reached about 38% at the end of 2003.

Supported, as in the recent years, by cautious monetary policies, inflation was kept under control in 2003. It reached 3.3% at the end of the year, a figure in line with the 2-4% target, while average inflation stood at 2.3%. This allowed the central bank to ease its monetary policy by lowering its repo rate by 200 basis points between April and December 2003. The key instrument of monetary policy continues to be the repurchase agreement rate. Its impact on market rates should however be improved through open market operations. Given the quasi monopolistic character of the banking sector, the authorities have developed a new marketing channel for treasury bills outside of the banking system, which should contribute to a diversification of the demand and, thereby, to a reduction over time of the important interest margin relative to deposit rates.

The current exchange rate of Albania is still classified as independently floating. However, given that Albania's exchange market is quite narrow and can be easily affected by large transactions, the Bank of Albania intervenes when necessary to smooth the exchange rate fluctuations of the Lek versus the US dollar and the Euro. During 2003, the Lek remained quite stable compared to the Euro and appreciated by about 20% compared to the US dollar.

On the fiscal side, total tax revenues, including social security contributions, are estimated to have reached about EUR 1,100 million, representing some 20.1% of GDP. This corresponds to a one percentage point increase, compared to 2002. Nevertheless, tax revenues collection is estimated to have been below the target by at least 0.5% of GDP in 2003. With a view not to endanger the budget deficit ceiling, fixed at 6.4% of GDP in the programme, expenditure cuts were necessary, consistent with the contingency plans prepared by the authorities in June 2003. These cuts consisted mainly in savings on electricity subsidies (helped by improved supply) and personnel spending. According to recent estimates, the fiscal deficit, before grants, reached 5.6% of GDP. Public debt is estimated to have decreased to 61% of GDP in 2003, from 63% the year before. Out of this, domestic debt represented 38% of GDP, both in 2003 and 2002.

On the external side, the 2003 current account deficit, excluding official transfers, narrowed to 8.5% of GDP, from 9.1% in 2002. This improvement is based on a significant narrowing of the trade deficit, estimated to have reached 21.5% of GDP, compared to 22.8% in 2002. The improved supply of electricity has apparently supported a relative improvement in export performance. Albania's trade deficit with the EU is estimated at around EUR 750 million in 2003, with industrial products representing the bulk of EC/Albania bilateral trade. Foreign exchange reserves reached the equivalent of four months of imports, a figure in line with those registered in previous years.

At the end of 2003, the external debt reached about 23% of GDP. This debt level can be considered as relatively low by international standards and in comparison with other Western Balkan countries. The debt service reached the equivalent of 5.5% of exports of goods and services, compared to 6.4% in 2002.

As regards relations with IFIs, in June 2002, the International Monetary Fund (IMF) approved a new 3-year programme covering the period June 2002-June 2005 and supported by a Poverty Reduction and Growth Facility (PRGF) arrangement for a total of Special Drawing Rights (SDR) 28 million (some EUR 40 million). In April 2003, in the context of second review discussions - the first review had been successfully completed in January 2003-, the IMF staff mission agreed with the authorities that the second year of the programme (June 2003-June 2004) be given a strong focus on strengthening governance and the integrity and competence of public institutions, particularly the tax administrations. Other main priorities for the second year of the programme are fiscal consolidation, the improvement of the business environment, the implementation of the energy sector action plan and the strengthening of the financial sector. The second review was successfully completed in July. In October 2003, the Albanian government concluded negotiations with the IMF on the economic and financial framework for 2004 in respect of the PRGF arrangement. In January 2004, the IMF Board completed the third review under the programme, despite the non-observance of a structural reform criterion relating to the regularisation of inter-enterprises arrears.

In June 2002, the World Bank (WB) adopted its new Country Assistance Strategy (CAS) for Albania, which focuses on reducing poverty by supporting the country's (NSSED). To this end, the Bank is supporting the government