Such reforms have ripple effects that go beyond economic benefit of a long run stable growth and financial stability. I believe that positive spillovers will be materialized in the South East European region’s prosperity and its economic and political integration in European Union. The Bank of Albania has been a constant generator and supporter of reforms both institutionally and as the provider of stable prices, sound macroeconomic conditions and financial stability. It makes an undeniable fact that financial integration which we are experiencing will be to the forefront of European Union integration process. It will ease the challenges and speed up the process of European integration which Albanians have embraced by wide popular consent. Like in many other transition economies banking reforms in Albania were implemented as an integral part of the structural reforms undertaken to transform the Albanian economy in a market oriented economy. Continuous improvement, along with approval and implementation of new banking legislation and supervisory regulation; liquidation and privatization process of the state owned banks; and foreign ownership; have change banking and financial markets. Foreign banks have been an important push factor toward increasing efficiency, number, quality, and coverage of financial intermediation. New entries, mergers and acquisitions are recently altering the market structure in both asset and liabilities. Reforms that brought big European players and their capital in the market, have further increased confidence in our economy and in the region as whole. However, the presence of foreign banks does not replace the need for legal and institutional framework.

This is particularly important given the lack of well-developed road and rail networks of the region. Countries in the GMS are addressing this through various projects, the main one being the road corridors. The North-South Corridor which connects Yunnan in China, with Myanmar, Laos and Thailand has been completed. Also, the East-West Corridor which links Vietnam, Laos, Thailand and Myanmar is near completion. This will make the whole region more closely interconnected, hence investments in any of the GMS country stand to benefit the rest. 11. The final point is on the demand side. The GMS will enjoy a larger consumer market base with distinct needs and increased purchasing power. The AEC is home to over 600 million people. In tandem with this is the significant rise of the middle class population. The Asian Development Bank estimates that the share of ASEAN’s middle class is expected to increase to 65% by 2030.3 Moreover, ASEAN continues to pursue closer integration into the global economy through various Free Trade Agreements. This includes China and India, both superpowers at the crossroads of the GMS. Therefore, the AEC will also be an important gateway, connecting the GMS to major markets of the Asia-Pacific region. 12. The bright future is ours for the making. The GMS economies are blessed with abundant resources and promising growth prospects. With the realization of the AEC, the region’s opportunities will be multiplied. Yet there remain important challenges. The bright future is ours only if we work to overcome the challenges together.