domestic market as a result of their demand coverage with an ever - growing supply. the return of inflation within the targeted band was not only conditioned by the relaxation of supply - side shocks but also by the adequate monetary conditions which provided room for the balancing of demand and supply - side factors. monetary policy stance was neutral throughout 2008 and the key interest rate was kept unchanged at 6. 25 percent. in tandem with the strengthening of several banking supervision measures in terms of credit risk management, the monetary policy has led to a more balanced credit growth and has transmitted the appropriate stimuli for consumption and savings. the adequate monetary policy and the keeping of inflation under check by the bank of albania have been also reflected in the anchoring of economic agents ’ inflationary expectations close to the 3 percent target of the central bank. in absence of unexpected shocks on financial stability, inflationary expectations or other supply - side factors, the balance of risks on inflation over the period to follow seems to be shifting downward. in this context, worth noting is the contribution of fiscal policy which has ensured the preservation of macroeconomic balances by keeping the budget deficit at adequate levels. the carrying out of public spending in line with the budget plan has facilitated the control of domestic demand pressures and has bolstered confidence in the country ’ s macroeconomic stability. budget revenues collected as of end november have met the 11 - month plan of the ministry of finance by about 96. 4 percent, while expenditures met 92 percent of the plan. following the developments in the first half of 2008, budget performance for the period july to november 2008 was characterized by a more active carrying out of expenditure. budget deficit created after the first half of 2008 was mainly financed through foreign resources. on the other side, the external sector of the economy continued to be characterized by the deepening of current account deficit, which in annual terms, increased by 48 percent in the third quarter of 2008 to about 252 million euros. as a share of gdp it accounted for 13. 7 percent which is about 5 percentage points higher than the same period the previous year. in addition to the trade deficit widening, the deepening of current deficit was also triggered by the narrowing of the positive balance of revenues and current transfers ’ account. its stability is imperative to ensure albania ’ s financial stability and a stable and long - term economic growth. therefore, the dynamics in the balance of payments developments remains an area which needs constant monitoring by the bank of albania. monetary indicators had a stable performance in the second half

structural reforms requires courage and leadership. especially, they may temporarily be perceived negatively by some economic agents. however, after some time, employment is expected to increase, as new products and services are being introduced and fresh energies are being unleashed and made productive. the liberation of large segments of activity that were previously suppressed will soon create a potent constituency for reform and european commission ( 2003 ) : “ jobs, jobs, jobs. creating more employment in europe ”, report of the employment taskforce chaired by wim kok, november. structural advancement. importantly, all consumers and firms which in a regulated environment had to bear the cost of financing the subsidies will immediately enjoy the benefits from the reform. these prospective gains and the tilting of the balance of social preferences that these gains will bring about are often overlooked in the public debate. in fact, for the time being, the challenge to gain the support of parliaments and the public for implementing structural reforms is formidable. it is therefore imperative to make it clear to the public that, if governments and social partners deliver those reforms, the net benefits will be significant for the public at large. fiscal policy implementing structural reforms to raise potential growth is a major challenge for the european economies. but it is not the only one. in any economy, achieving sustainable, non - inflationary growth also requires fiscal soundness. in the absence of such fiscal soundness, price stability can only be maintained at a higher cost in terms of interest rates, and thereby lower growth and employment. what is appropriate for all economies is all the more necessary at the euro area - wide level, where, in the absence of a federal budget, a credible framework ensuring fiscal discipline is a key component for the consistency and the cohesion of our monetary union. sound fiscal policies implying safe budgetary positions in good times are necessary to ensure that fiscal policy has room to cope with asymmetric shocks, which can no longer be addressed by monetary policy. not least for these reasons, it is a matter of concern to the ecb that in a number of member states abnormally large fiscal deficits have persisted over years. the commission has tabled some proposals and a discussion has been launched to consider how to strengthen and clarify the implementation of the stability and growth pact. we can find common ground between some of the commission ’ s proposals and our own thinking, namely, as regards the preventive arm of the pact. we agree that the implementation of the stability and growth pact should be improved. we agree that