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Truthmeter – 365 days of Governance Report on the performance of the government for 365 days of governance January 17, 2015

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Truthmeter – 365 days ofGovernance

Report on the performance of the government for365 days of governance

January 17, 2015

Introduction The general elections of June 23, 2013 provided to the public some innovations regarding thepolitical vocabulary, used by the political parties’ representatives, such as the term “the firstone hundred days” and “the first three hundred days”, through which they promised radicalchanges. During the presentation in the Albanian Parliament, regarding the four yearsgovernmental programs of the first mandate, Prime Minister Rama articulated a number ofpromises and reforms that the government will undertake during this mandate. Some of themain promises are the following: the promise for the creation of 300 thousand new jobs, freehealth service, supply of the citizens with potable water, free legalisation of dwellings, etc.

During July, 2014, the government published a document of 40 pages, which included thework during the first 300 days of the governance.i

Aims This report, prepared by the ‘Mjaft’ Movement, aims to compare the initial promises of thegovernment, covering the period of the first year of governance with the real work performedduring 2014 and with the document of the government.

Limitations The report does not consider the whole performance of the government, but only that partrelevant to the pre-election promises due to be achieved during the first year of mandate,identified by the working group. Its promises are considered as such once they become publicthrough a written form or through different clips.

Data The declarations of the government promises are published in different web pages, includingwww.PS.al, Facebook webpage of the leaders of the Socialist Party and the media.

The performance of the government will be considered by the decisions published in the officialwebpage www.kryeministria.al or in Official Journal www.qbz.gov.al

ConventionsA promise is a commitment to a deadline, within the first year, with the exception of certain promises already related to the state budget, expected to be achieved “within the first year”, but achievements thereof depend on whether or not they are included in the state budget of 2014-2015.

The first year of the governance means the period from December 2013 to the end of 2014. This is not exactly a 300 days period, but this division is conducted to include the State Budget and Fiscal Package as well, in order to analyse the promises on the frame of budgetary planning.

Executive SummaryBased on the public declarations of the Socialist Party and the commitments undertaken inthe Albanian Parliament, through legal initiatives, are identified 25 promises closely related tothe performance of the government during the first 365 days. Out of them, 6 promises resultfulfilled in com-pliance with the promises, 7 promises are assessed as partially fulfilled, 2others are considered as immeasurable and 9 are considered as not fulfilled.

Part of the report are some promises that logically could have been included in a singlepromise, due to the fact that they belong to the same field and purpose, but the team oftruthmeter has decided to analyse them separately, because the promises have beenmentioned in different electoral speeches.

Part of this report are not the promises analysed during the last 3 months of 2013, because wedid not want to create confusion between the timelines of the promises, and because we wantto be coherent with the periods of the promises that have been declared during the electionperiod by the Socialist Party, periods that coincide with the first 100 days and the first year ofthe governance January 2014-December 2014. Despite this time element we would like tomention some of the unfulfilled promises that coincide with the last 3 months of 2013, whichhave been subject to ongoing monitoring and verification by the truthmeter team, in order toidentify the level of their fulfilment.

On this frame, it is worth mentioning the promise on “Putting the Institute of Statisticsunder the control of the Parliament”. Referring to the facts, it results that INSTAT continuesto be under the subordination of the Prime Ministers’ Office, by not fulfilling this promise yet.For similar institutions that remain public capitals in order to provide services, protection andproper information to the public, a good political will is not enough in order to be objectiveand independent, but first is required institutional independence by the executive bodies andsubsequently integrity and good will by the leaders.

Another unfulfilled promise, on the frame of 100 first days of the governance, it is the one on“Reestablishment of legal benefits for disabled persons”. Even for this promise, still no legalinitiative or any change of the actual legal frame has been taken to re-establish the legalbenefits for this category of people. Another unfulfilled promise, is the one on “Review of theConcession for the Harbour of Durrës”. There are too many arguments and facts held byindependent institutions of control, KLSH, regarding the incorrect process, performed in thisconcession. In the report of High State Control (KLSH), on this issue it results that theprocedures of granting the Harbour by concession, as well as implementation of procedureswith the private sector, are performed in violation of the law. In this context, the High StateControl has filed a lawsuit against the former general director of the portual authority inDurrës, and also against 4 former directors of this authority and 4 workers of the Ministry ofTransport and Infrastructure, for abuse on duty and infringement of equality on tenders,causing a damage of 16.9 million euro to the state economy and budget. Even though an auditprocess was conducted by KLSH, the concession of the Durrës portual authority still continuesto be on the same contractual conditions and on the same concessionary firm in possession ofthis concession.

i List of promises for the 365 days, according to the topics:

1. Decrease by 6% of the electricity bill for family consumers;

2. Territorial reform;

3. Return of TVSH and ATSH to the public;

4. Problem of immigrants, children born in Greece;

5. Establishment of the National Coast Agency;

6. Pension Reform;

7. Support for pension for the policemen killed on duty;

8. Normalisation of the energy system is a priority of crucial importance;

9. Elimination of monopolies;

10. Radical improvements in the Health System;

11. Employment based on merit and competitiveness;

12. Attacking corrupted workers in Public Institutions;

13. Formalisation of Economy;

14. Package on Justice Reform;

15. Taking national assets under control;

16. Starting the legalisation process of illegal constructions;

17. Reduction of the pension age for people working on rough/difficult jobs, miners, etc.;

18. A system for the future, whereby everyone will benefit free health service while thehospital boards themselves shall decide on equipments;

19. Within the first 9 months, all the public works debts will be paid;

20. No new debts;

21. Reimbursement of VAT is your request, and our reflection is that only the unreimbursedVAT, unliquidated fines and public obligations, lead the flat tax to 22% of the tax incomesand we shall reconceptualise the whole chain of VAT and there will be no more delays ofthe administration to business which shall be liquidated on time;

22. Products “Made in Albania”. We want conditions and standards to be European ones.Together we shall immediately identify the fiscal barriers already delaying exports and weshall eliminate all the taxes on import;

23. “Fight against organised crime and trafficking of narcotic substances”;

24. Education Reform;

25. We will create 300 thousand new jobs.

1. Decrease by 6% of the electricity bill for family consumers

Promise: During the electoral campaign in the elections of June, 23 rd, representatives of SocialistParty promised to decrease the electricity bill by 6%, for the family consumers.

General description: On each verge of the general elections, one of the main promises of everypolitical force has been the electricity, focused mainly on the regular supply with energy,investments for service improvement, as well as decrease of the tax for family consumers. Despitethe main focus of the politics and successive governments, the electro-energy system in Albaniahas never been efficient and self-sufficient. The abuses with the purchase of energy, the lack oninvestments, consumer abuses (energy stealing) and failure to pay the consumed energy, make upthe main reasons of the almost collapsed energy system in Albania.

Fact: Following several months of discussions and debates with the stakeholders, the Albaniangovernment through the OSHEE, requested to the Electrical Energy Regulatory Entity an increaseof the energy price with 12 ALL per kWh and removing the division of 300 kWh. ERE fully approvedone of the requests, that of removing the division of 300 kWh and approved a fixed tariff forfamily consumers of 9.5 ALL per kWh, compared to the current system of two tariffs, bringing in anet increase of 500 up to 650 ALL for the poor consumer, as well as a price decrease about familiesconsuming over 600 kWh per month.

For the family consumers consuming over 800 kWh that correspond with families of the highmiddle and richer classes, the charge to be paid to OSHEE will be lower.

Pursuant to the approved changes on December, 26 2014 made by the Energy Regulatory Entity,families with an average consumption of 300 kWh shall face an increase of their monthly bill of650 ALL. This amount shall be compensated by the government through a state-funded budget,approved in December, which amounts to 16 million dollars.

Based on assessment of the above facts, it appears as if the change of the energy price shall nothave an adverse impact on society, and this fact is relatively real. We believe relatively due to thefact that there are too many other poor families not included in the reimbursement scheme of thegovernment, because they have 1 person in the family, employed with a minimal salary, in a familyof at least 4 members. These families are automatically excluded from the reimbursementscheme, which leaves them unprotected by the change of the energy price, thus increasing theconsumption cost with 650 ALL.

Price for businesses:

By decision of ERE of December, 26 2014, it was decided that the energy price for the consumerssupplied with 35 kilovolt shall be 9.5 ALL per kWh, while for consumers supplied with 20/10/6

kilovolt the price shall be 11 ALL per kWh. For bakeries and flour production, supplied with 20/10and 6 kilovolt, the price shall be 7.1 ALL. For more information, refer to the following table.

Conclusion:

Even though the financial impact on an Albanian family budget may be considered as minimal,referring to the above mentioned facts, the promise of the Socialist Party during the electoralcampaign in 2013 is controversy with ERE decision for the change of energy price for families.Hence, this promise is considered as untrue/unfulfilled.

2. Territorial Reform

Promise: One of the main electoral promises for the general elections of June, 23, articulated bythe Prime Minister Edi Rama and officials of the Socialist Party, was the compilation andimplementation of the Territorial Administrative Reform.

General description of the promise and the arguments of the Socialist Party: Socialist Party andits head Edi Rama, promised during the electoral campaign that the country needs a radical andintegral reformation of the current system of administrative division. The process of discussing thenew territorial division started with the “Territorial Administrative Reform” Conference, organisedon October 2013 by the Ministry of State for Local Government as well as the Presence of OSCE inTirana. The main argument, presented by Edi Rama for this initiative, is related with thesimplification of territorial division, strengthening of economic, social and cultural space of localunits, regarding comprehensive strengthening of the country. The Prime Minister mentioned alsothat with through the new reform nearly 25 million USD expenditures of local administration,financial incomes that are saved by the tax payers’ budget shall be saved. Another supportiveelement of the government in this reform, has been the study published in 2012 of the SwedishInternational Development and Cooperation Agency, whose conclusions suggested a newterritorial and administrative division with no less than 100 local units and 6 regions, a resultdrawn after an assessment of the features and division of local power at that period.

Data on the local government under the old territorial division:

384 local units throughout the country;

65 municipalities of the first and second category;

309 communes with a population of 500-10 thousand people;

Communes, 2.5 milliard new ALL per year for the salaries;

200 communes spend over 40% of the budget for the administration salaries;

100 communes spend over 80% of the budget for the administration salaries;

70% of workers in 80 communes lack higher education;

50% of communes do not make any investment in the community;

50% of communes levy 0-2% of the budget, from the local taxes.

Fact: On January, 23 2014, the Parliament approved the request of the Ministry of State for LocalGovernment for the establishment of the special commission on “TERRITORIAL ADMINISTRATIVEREFORM IN THE REPUBLIC OF ALBANIA”, with a deadline of 3 months. Based on the decision,approved by the Parliament of Albania, the commission was chaired by two Co chairmen, frommajority and opposition, while it consists of 16 members, 8 of them as representatives of themajority (6 SP and 2 SMI) and 8 as representatives of the opposition (6 DP, 1 RP and 1 PJIU).

The representatives of the opposition did not accept and failed to become part of the discussionprocess for the territorial reform claiming that there is lack of trust and there is no will on themajority side for a real consensus. Meanwhile, the actual attitude of the opposition was related tothe inacceptance of the option proposed by its representatives, a proposal that was not taken intoconsideration by the majority.

Following 7 months of intensive work of this commission and public hearings, organised by thiscommission and the Ministry of State for Local Government, on July, 17, the members of themajority, together with the members of PJIU, decided to approve the option with 61 local units,out of 5 options proposed by the Ministry of State for Local Government.

Despite the political opposition of the opposition and theirs arguments on the lack of trust and willof the majority to consider the opposition viewpoints, the commission for the TerritorialAdministrative Reform, approved the option with 61 local units, an oprion which was materialisedin the Parliament upon approval of the Law No. 8653/2000 on “Territorial administrative divisionof local government units of the Republic of Albania”.

In conclusion, this promise is evaluated as: true/fulfilled.

3. Return of TVSH and ATSH to the public

Promise: At the beginning of October 2013, in a an open conference with the media, the PrimeMinister Edi Rama responded to journalists’ questions regarding the reform processes that areexpected to be undertaken by the government and the commitments on the frame of fulfilling theelectoral campaign promises. One of the commitments undertaken by the Prime Minister Edi

Rama, articulated during the conference, was the one of “returning” the Albanian Public Televisionand the Albanian Telegraphic Agency, to the public service.

Fact: In the course of 14 months of the Alliance for European Albania governance, still we do notsee any concrete action for the reformation of TVSH and ATSH, which makes this promise to beconsidered as untrue/unfulfilled.

4. Problem of immigrants, children born in Greece (toponyms).

Promise: In June, 10, 2013, at a meeting organized by the Albanian immigrants inGreece/Igumenice, the Emigration Secretary of the Socialist Party, Erion Veliaj, today the Ministerof Social Welfare and Youth promised in front of the Albanian immigrants that the problem oftoponyms will be settled, if the Socialist Party wins the elections in June, 23rd.

Fact: Settlement of toponyms problem started since June, 11th 2013, a few days before theelectoral elections in June, 23th. An agreement facilitating the free movement of the Albaniancitizens, residents in Greece, avoiding the barrier of toponyms written in Albanian in theirpassports, or for the children already born in Greece, was concluded during the elections period inJune, 23th. According to the agreement, there will be no barriers in border checkpoints for theAlbanians, residents in Greece.

While on May, 8th, 2014, another important agreement was concluded, regarding the toponyms.Albanian emigrants shall use their present passports until January, 1st, 2015, despite the problemsthey had previously with toponyms therein. Settlement was reached after the agreementconcluded between the two respective Ministers of Foreign Affairs, namely of Greece and Albania.Both parties agreed to provide a proper solution to this problem according to the officialcatalogues of both countries, deposited in the UNO. However, until January, 1st, 2015, all theAlbanian citizens facing problems with toponyms have to issue a new passport. In order not toprevent the free movement of citizens between the two countries, was approved the moratoriumfor the free movement and without any bureaucratic barriers for the people with problems oftoponyms in their documents, a decision expected to remain into force until January, 1 st, 2015, anagreed deadline between the two countries for the final settlement of the problem.

Approval of the DCM.

By a decision of the Council of Ministers of august, 27 th, 2014, it was decided to change the fillingout of the rubric “Place of birth” in the National Register of the Civil Service and in the certificatesthat are going to be used by the foreign authorities, therefore solving the issue of toponyms inpassports and other identification documents of thousands of Albanian emigrants facing suchproblems, especially with the Greek authorities. This change has to do with some appendices inthe former decision of the government, No. 332, dated March, 17th, 2010, where it stipulates that:“In all the models of certificates to be used by foreign authorities, which are issued by the civilservice offices in local government units, the information in the rubric “place of birth” should befilled out, in writing according to the following cases:

a) For countries that have deposited to the UNO the official catalogues of Romanised geographicalnames (toponyms), according to the list made available by the Ministry of the Foreign Affairs, aswell as the 3-characters code of the respective country, in accordance with the standards of theInternational Civil Aviation Organisation (ICAO), i.e. GRE for Greece;

b) For countries that have not deposited to the UNO these catalogues, according to the writing inthe document compiled from the origin country, but with symbols, Latin/Roman letters, as well asthe 3-characters code of the respective country, in accordance with the same standard;

c) The other rubrics of the certificates, for use by foreign authorities, should be filled in the officiallanguage, “Albanian”.

After this change in filling the rubric “Place of birth” in the National Register of the Civil Service,the passports shall be corrected, thus definitely solving also the problem of the biometricpassports.

Even though this promise covers all the real and legal elements, in order to be true/fulfilled, it stillremains to be verified the fulfilment of the duties the Albanian state has undertaken, untilJanuary, 1st, 2015.

5. Establishment of the National Coast Agency

Promise: On June, 6th, 2013, in an electoral meeting organized in the city of Lezha, Edi Ramapromised the establishment of the National Coast Agency, which shall have the whole institutionalauthority to treat all the problems of coastline.

Fact: At the meeting of the Council of Ministers of January, 22nd, 2014, with the proposal of theMinister of the Urban Development and Tourism, the Council of Ministers decided for theestablishment of the National Coast Agency, in charge of which is Auron Tare.

Despite this fact, there have been too many problems in this touristic season with the NCA,because a certain number of promises are not met by it. First of all, the comprehensivespecialization of the stakeholders for touristic guides was not carried out. It was also promisedthat observation towers for 7 pilot beaches shall be installed, but not all of them are fulfilled.However, in terms of the institutional and structural respect, this agency is established and thispromise results as true/fulfilled.

6. Pension Reform

Promise: The government has promised the compilation and implementation of the new pensionreform, which shall guarantee the increase of contributors in the social insurance scheme and shallguarantee higher pensions for citizens, based on the individual history of contributions.

Description of the situation: Compilation and implementation of the new pension reform is anecessity for Albania, taking into consideration the actual scheme with a small number ofcontributors as compared to the beneficiaries. Based on the data of the Ministry of Finance, thisdeficit is covered every year by the state budget with a sum amounting to 430 million dollars.Accordingly, the reduction of this deficit, guaranteeing of higher benefits, as well as compilation of

a more attractive scheme for the contributors, remains urgent.

Fact: Two months after coming into power, Rama government declared that it will draw up thenew pension reform. The draft was prepared by the Ministry of Social Welfare and Youth, incooperation with the World Bank. The draft was finalized on February 2014 and on April of thesame year it was discussed with the stakeholders, despite their preliminary scepticism andobjection. On July, 31st, 2014, the pension’s reform was ratified by the parliament, making it enterinto force since January, 1st, 2015.

The new pension reform provides some significant changes compared to the existing one. Thus,the pension age for men remains unchanged, 65 years until 2032 and following this year, it shallbe increased with a month per year until reaching the limit of 67 years. For women, the age will begradually increased with two months per year, reaching the age of 63 in 2032. The amount ofpension will depend on the insurance period and the salary on which social insurancecontributions were made. The reform provides even the removal of the ceiling maximumcompensation of 24.000 ALL, according to the alleged philosophy, that the more the contributions,the greater the pension amount. The reform also provides removal of compensations and theirintegration in the pension amount, the unification of minimal salaries into a single one, theunification of the pension calculation, despite the type of job (agricultural co-operative or stateand private enterprise). Regarding the Ministry of Social Welfare and Youth, the reform is targetedlink the pension amount proportionally with the contributions already paid and no provision wasmade on any decrease of the pension amount. But, irrespective of the new scheme, the pensionamount is individual and it depends on the individual contributing history.

The reform provides for the first time the social pension. This means that from the January, 1 st,2015 approximately 5 thousand elder people over 70 years old actually that today do not have anyincomes for different reasons, will benefit a monthly pension of 6500 ALL. Nevertheless, it is notsufficient to pay for the basic expenditures of life, such as: water, energy, medications and food.

The increase of the contribution years in the social insurance, from 35 to 40 years until 2025, isanother change made to the pension scheme. This change of the government, related to the yearsof social contributions, is assessed as having an adverse impact for the future beneficiaries ofpensions, because it decreases the number of people that benefit full pension. This happens forsome reasons. Based on the current scheme, (not changed) in order to benefit the pension, youhave to reach the age of pension, as well as the years of the social contributions, actually 35 years.The scheme provides that if you have reached the age of pension, but not the years ofcontribution, you benefit a partial pension and if you have not reached the age of pension, but youhave reached the years of contributions needed, you benefit a penalizing partial pension. In thelatter category comprises the majority of Albanians currently that have worked in a transitionperiod and find it difficult to reach the working years. These measures the government isundertaking may be interpreted as coercive measures to regulate a system, almost collapsed.These measures, in the future may save the system, but not the beneficieries. Removal of privileges for recognizing the insurance periods, without paying contributions forwomen, such as recognition of studies years as insured years. It is unclear what impact shall bringin the system the removal of contributions recognized by law, for the four years of study for

women. The impact of this legal intervention and the rationale behind it is confusing.

The increases of the contribution rate for rural areas equating the farmers’ contributions withthe ones of the urban areas until 2017. This change, undertaken by the government for thiscategory, is by no means real in the social-economic context, in which our farmers live today invillages with minimal incomes. Based on the new scheme, a self-employed person in rural areasshould pay 31.500 ALL contributions per year from 17.280 he/she paid pursuant to the oldscheme, while a self-employed person in mountainous areas should pay 24.150 out of 11.232 ALLper year he/she paid pursuant to the old scheme. Based on the scheme, it is expected thedifference of the contributions to be reduced that is covered by the state budget, namely in plainareas, it will be 59%, covered nearly 21.534 ALL, while for mountainous areas it will be 455,covered nearly 28.884 ALL by the state budget. This change will bring the decrease of thebudgetary burden, exceeding the difference already decresed to the farmer. Even though thegovernment seems to be optimistic regarding the success of the scheme, in terms of thiscomponent, the fact shows that there is minimal likelihood for success, because the farmer’seconomic situation in plain and mountainous areas is not likely to be improved in the followingyears, to the extent necessary to face the increased contribution payment and their equalizationwith the urban areas contributors.

The new pension reform unifies the method of benefits calculation from the scheme, for all theprotected categories as employed, self employed, employed and self employed in villages andcities. Starting from January, 1st, 2015, it will begin the equalization of contribution in villages andcities, a process due to end in 2018. On the frame of the new reform, December 31 st, 2014 wasdecided as the deadline for the amnesty of default interests for the self employed in villages, ifthey pay their contributions. After January, 1st, 2015 starts the application of default interest.

Also, under the frame of the new pension reform, in November 2014, the parliament passed thedecrease of pension age for miners, aged 60 to 55. According to the official data of the Ministry ofSocial Welfare and Youth, from the review of this law, 3850 miners will benefit.

It is still unclear how this reform will be implemented from January, 1st, 2015 on and how theabove mentioned changes will be really implemented. Taking into consideration these elements,this promise is considered as true/fulfilled/for verification in terms of the legal change aspect(reform), but it will be under follow up and verification process, in order to assess the progressof the implementation.

7. Support for pension for the policemen killed on duty

Promise: In January, 23rd, 2013, during a visit in one of the families of the policemen killed on duty,in Rashbull, district of Durrës, the head of the SP, Edi Rama, today the Prime Minister of thecountry, promised the review of the financial support for the families of the policemen killed onduty, as well as a life insurance for policemen are actually part of the state police.

General description: A series of promises are said since September-October 2013, related to thefinancial support of the policemen killed on duty. These promises vary from the support of

donating dwellings, to the support with considerable pensions for a dignified life. However, a smallpart of the family members of the policemen killed on duty receive more than just a condolencenotice at Christmas and New Year.

Fact: The approval in July, 31st, 2014 of the new law for the State Police, No. 108/2014, did notbring any change regarding the promises for the pension review or a special pension for thepolicemen killed on duty, as well as life insurance for the policemen still working in the policedepartment.

As a conclusion, this promise remains untrue/unfulfilled.

8. Normalisation of the energy system is a priority of crucial importance;

Promise: The government has determined the normalization of the energy system as its priority ofcrucial importance. It has promised a radical reform to get the energy system out of the crisis andto return it in a profitable sector for the economy.

Description of the situation: Energy sector remains one of the weakest points of the Albanianeconomy, having greater effects not only for public finances, but even for the economic and sociallife of the citizens. This sector carries inherited problems over the years, reflected later on a highlevel of losses and in a low level of encashment.

According to the data of the Electrical Energy Distribution Operator (ex CEZ Delivery), at the end of2013, the level of losses was calculated to be nearly 45%, while the encashment was less than70%. Meanwhile, the level of debts among companies in the energy sector, but even to the thirdparties, is evaluated, according to the data of the Ministry of Energy and Industry, approximately 1milliard dollars. A great part of the family consumers do not have electricity meter and are actuallyflat rate invoiced. On the other hand, in addition to the family and businesses consumers, even thecentral and local state institutions result debtors of the energy payment. Electricity supply remainsdependent on the import, which means that it is a permanent threat to the state budget. Acontinuous problem has been even the relation between the Albanian Electro-Energy Corporationand private hydropower plants. KESH is obliged by law to buy the energy produced by these plantsat a price that varies according to the data of the Electro-Energy Corporation, from 7-9 ALL perkWh, while it sells it to OSHEE much cheaper. This resulted in a financial deficit for KESH and in anaccumulated debt which the corporation has to pay to the private HEC, and at the end of 2013 itreached nearly 60 million euro, according to the official data of the Albanian Electro-EnergyCorporation.

A heavy burden for the energy sector has also been the failure in the privatization process of theEnergy Distribution Operator by the Czech company CEZ. The conflict between the Albaniangovernment and the Czech group reached its climax in January, 21st, 2013, when the EnergyRegulatory Entity banned its licence and delegated its competences of managing the company to atemporary state administrator. Despite the above mentioned problems, the energy sector is facinga high level of the network amortization, as a result of the lack of investments for many years. Thisis the cause of defects and the lack of electricity supply for the citizens. To survive despite the

debts, but even to provide energy to distribution companies, KESH was obliged to receive manycredits in banks, while the guarantor was the Albanian government. This increases even more theimpact the crisis on energy sector has over the state budget.

Fact: The first step undertaken by the government to normalize the situation in the energy sectorwas the approval of the Council of Ministers Decision, in December 2013, to establish a Task Force,headed by Deputy/Prime Minister Niko Peleshi. This Task Force started its work on 15 January2014 and it will end in May, 2015. Its duty was to perform a better management of the situation inthe energy sector as well as improvement of main indicators, among others, reduction of lossesand increase of encashment. Even though these two indicators were improved a bit by the end of2014, the problems in the energy sector were obvious. The next step the government undertook,was the negotiations with the Czech company CEZ, in order to solve the problem based onunderstanding and to avoid international arbitration. At the end of June, 2014, was reached aagreement with CEZ for solving the problem in understanding. The government promised a radicalreform in the energy sector, which was the same condition of the three-year agreement ofcooperation with the IMF. On March, 2014, the Parliament passed the changes in the CriminalCode, whereby stealing of energy was considered as a crime and was sentenced to 3 yearsimprisonment, while for the collaborator 5 years of imprisonment. In parallel with this measure,the government managed to ensure 150 million dollars of credit from the World Bank for theenergy sector recovery. This agreement was signed on November, 3rd, 2014. The reform providesinterventions in some aspects, one of which is the price. The Energy Regulatory Entity is expectedto make a decision within December, concerning the new tariffs which will enter in force onJanuary, 1st, 2015, while the Prime Minister, Edi Rama declared that in November will beconducted a price restructuring. This means the removal of the protective division of consumptionof 300 kWh per month, on the grounds that it is a source of abuse. On the other hand, at the endof October, the government began the nationwide operation against electrical energy stealing.This operation provides prison arrest for all those stealing the electrical energy, break of energysupply for the consumers proved to be debtors and prison arrest if they tend to illegally reconnectthe electricity. In order to encourage the citizens to pay their charges, the government decided togrant amnesty of 80% of the default interest if the citizens pay fully their obligations, and alsooffered the opportunity to pay the debits by installment. This was followed by an influx of peoplerushing to the OSHEE Customer Care Offices, to pay the overdue bills. According to OSHEE officialdata, encashment for November increased by 49% compared to those for November 2013. Theincrease of encashment is stated for current bills and even for the debtor ones. Also, duringNovember 7555 new contracts were signed, 51592 illegal connections were suspendedthroughout the country and the level of losses decreased by 34.5%. The Energy DistributionOperator has filed 611 denouncements for energy stealing with the Prosecution, while 48 workersof OSHEE are arrested as collaborators of energy abuse. The measure recently undertaken by thegovernment is the dismissal of the workers who have not paid the electricity bill. On December,6th, the Minister of Justice decided the dismissal of 131 policemen working in the prison system, onthe grounds that they were debtors of energy for 13 years, while on December, 8 th, 234 workers ofOSHEE, who have not paid the energy bills for more than 2 months, were dismissed.

The last measure undertaken by the government for the dismissal of the public administrationworkers resulting as debtors is considered as the most punitive measure undertaken by thegovernment. Also, this measure has no legal reference on which it can be based, on the contrary,it interferes with several laws that protect and guarantee the rights of the employees in thepublic administration.

Furthermore, in this operation of the government for the dismissal of the public administrationworkers, there is a reasonable nonsense in the subsequent actions, because a few days followingthe dismissal of the first workers, the government disclosed its decision for the payment of theunpaid bills, by amnestying 80% of the default interest, a rule which is not available to thoseworking in the public administration.

It is still to be verified how this reform in the energy sector shall proceed. Based on the changesaccomplished by far, this promise is considered as partially fulfilled.

9. Elimination of monopolies

Promise: The government has promised to fight against monopolies, which implies guaranteeing afair competitiveness between businesses on the market, but even benefits to the citizens.

Description of the situation: The monopolies remain one of the main concerns of markets inAlbania, resulting in negative consequences for the normal operation of the markets, but even forthe citizens whot do no benefit qualitative services and with competitive prices. Monopolies arepart of certain markets through the signed concessionary contracts, such as the concession offiscal stamps, marking of gas stations, scanning of containers, concession of the Harbour of Durrës,as well as the one of commissioning the cars.

Fact: Since the electoral campaign, the government promised elimination of the monopoles. Thisattitude was stressed out by the Prime Minister, Edi Rama after winning the elections and cominginto power. At the plenary session of October, 31st, 2013, he declared that: “We shall ruin everymonopoly we have found so far and will still find: on the air, sea and ground. Free competitivenesswill be placed and every monopoly will be ruined. Every company will be respected by us and willbe obliged to respond to every single obligation.”

The first concession the government suspended was the one of the containers scanning and onaugust, 14th, 2014, Rapiscan Company appealed the case to the international arbitration. Thisconcessionary agreement foresaw financing, building and operation of the containers scanningservice and of the other vehicles in the Republic of Albania, as well as the scanning service tariff.Since the beginning, the concession faced with the objection of the businesses, while in June thisyear, the Competitiveness Authority recommended to the Ministry of Finance and the Council ofMinisters, the review of the concessionary contract, on the ground tha it interferes with the Article

33 of the Stabilisation and Association Agreement (SSA).

Another concession, warned by the government to be suspended is that of the commissioning ofcars. On January, 24th, 2014, the Prime Minister, Edi Rama revealed that the liberalization of themarket of the commissioning of cars, without excluding the possibility of suspending theconcessionary contract. But, in this respect, no concrete steps are taken.

Another concession the government was committed to suspend was that of the fiscal stamps. OnNovember 12, 2014, the Minister of Finance, Shkëlqim Cani stated that the government has begunthe negotiation with the company in charge of the concession, and it should be expected theresults of such negotiations.

Monopoly concessions due to be suspended:

1. Concession of containers scanning;

2. Concession of commissioning of cars;

3. Concession of fiscal stamps;

4. Concession of marking the gas stations.

It is still to be verified, what concrete measures are going to be taken in the future. Based on thechanges accomplished by far, this promise is considered as untrue/unfulfilled.

10. Radical improvements in the Health System

Promise: The reform on health system is one of the most important points of the electoralprogram of the Socialist Party. Calling the health care service as one of the worst public services ofthe Albanian citizens, the Socialists stated since the beginning of the electoral campaign that theAlbanian health system does not fulfil any of its functions: it does not prevent, it does notdiagnostify, it does not cure and it does not rehabilitate.

The reform was based on:

1. Changing the contributing system of the health care provision, thus “free health” throughfinancing out of the general taxation.

2. Removal of value added tax in medical services and goods, as effective since the beginningof 2014.

3. Enhancing the role of the public health, as well as health prevention and promotionprograms.

4. Development of national programs of early preventing and discovering tumor andcardiovascular diseases. The implementation of a national program on the primary care forthe group aged 40-60 as well as for younger people of some specific categories of society

will start within 2014. 5. Correct compilation and implementation of contemporary protocols of medication. 6. The establishment of the National Service of Medical Emergency, in order to provide faster

and professional presence throughout the territory of the country, setting the samestandards in all the admission centres, responding to the changeable needs during theseasons of the year for care to diseases and traumas.

7. Correct compilation and implementation of the medication protocols and standardprocedures at work make up a necessary step with regard to the increase of thetransparency, verification, responsibility and accountability, finally aimed at gradualincreasing and improving of hospital service quality.

8. Hospitals will be administrated efficiently and will be financed based on the servicepackages that the single payer will contract for the necessary hospital care of each person.

9. All public and non-public hospitals will be subject to the initial accreditation process andthe periodical reassessment. University hospital services will have a primary role, even inthe professional mentoring of hospital services throughout the country.

10. Professional standards will be set for providing dental service; the safety of dental andmedical materials will be guaranteed, and periodical reassessment of the stomatologists’professional skills will be required.

11. We will lower the price of selling medications in Albania. There will be no registeredpharmaceutical product that will be sold in our country with a higher price than that in theorigin country. The Medications Control Center will be transferred into the National Agencyof Medications and Medical Materials.

Fact: Over the course of more than one year of governance, the left wing party has fulfilled theseaspects in the health system:

1. On April 1 2014 the VAT for medications was removed, while 55 new products were addedto the list of reimbursable medications. This list of medications, approved by thegovernment was focused mainly on the patients suffering from cancer, anaemia, diabetes,cardiac diseases and neurology. For the first time, in the list were included medicationsused to cure the alcohol addiction. Removal of 10% VAT for the medications resulted in areduction of their price.

2. In June, 2014, the Minister of Health, Ilir Beqaj stated that the regular supply of thehospitals with medications is still going on. According to Mr. Beqaj, the Ministry managedto make available the mechanism, which guarantees a continuous supply of hospitals withmedications. Also, long term contracts for maintaining important bio-medical equipmentwere concluded.

3. Even though proposed at the end of September, 2014, the Ministry of Health and the Fundof Insurances and Health Care decided to apply for the first time, on November, 2014, freehealth packages. A coronary graphic analysis, bypass interventions or dialysis is free ofcharge even in the private hospitals. Ministry of Health conducted the procedures forpurchasing 10 service packages, for which, patients kept waiting for months in the publichospitals. Costs were assessed by the Fund of Insurances and Health Care and contractswith 5 private hospitals in the country were concluded.

4. Launching of the campaign “How are you”, started since January, 2014. For the first time,in the whole country is provided a free entire health control for the age group 40 to 65years.

Despite the interventions on the medications price, health packages, public hospital supply withmedications, as well as the launching of the “check up” campaign, the interventions in the systemare considered to be superficial/correcting and not essential for radical change or reformation ofthe system.

Hence, this promise is considered as untrue/unfulfilled.

11. Employment based on merit and competitiveness

Promise: Employment based on merit and competitiveness has been one of the electoral promisesof Socialists before the parliamentary elections in June, 23, 2013. The Prime Minister Ramaspecified this promise even during the online conference on October, 1, 2013 stressing out that:“Every servant of this country that is employed based on merit will be on duty and will berespected even more than he/she was respected so far”, responding to the concern related to fearof dismissal. Regarding Rama’s promise, all will have the opportunity to compete and there will becontinuous public announcements, in compliance with the law.

Fact

1. On October 18, 2013, the government through the Minister of Innovation and PublicAdministration, Milena Harito, announced the start of organizing open competitions, togive the opportunity to everyone, who is able to work in the Public Administration. Thesecompetitions were firstly opened in the National Agency of Information Association(AKSHI), and in some institutions under the subordination of the Ministry of Culture. Thecandidates were announced through the official websites of institutions, but also throughthe online database;

2. In February, 2014, the government sent for discussion in the Parliament, the draft law “Onsome amendments on the law of Civil Servant”, after the decision of the ConstitutionalCourt that abolished the Normative Act of the Government. Two of the most importantarticles of the draft law were relevant to the job suppression and the compensation whichin this draft law was stipulated to be 1 to 3 monthly salaries. These amendmentssubsequently approved by the Parliament, without voting of opposition, inflicted debatebetween both parties. According to the opposition, the amendments made to the law onCivil Servant were anti-constitutional and also legalized dismissals;

3. In August, 2014, the Public Administration Department announced for the first time thenumber of 113 vacancies out of 157 positions at the specialist level, for the whole StateAdministration. The process was suspended until the fulfilment of the new law for the civilservant with the necessary bylaw acts, the effects of which started in February, 26, 2014. Itwas the first time that the State Administration did not organize competition for jobvacancies, instead, competitions for a group of positions, which means massivecompetitions and grouped for similar positions. The winners of these competitions weregranted the opportunity to choose where they would like to work, unlike earlier practiceswhere the heads used to choose by the list of winners. The applications were made on theonline webpage of the Public Administration Department.

4. Following inspections of the Ministry of Education in November, 2014 where 2056 teachersresulted irrelevant to their professional profile, the institution announced 1984 freevacancies, remaining vacant due to the dismissal of the teachers irrelevant to theirprofessional profile. The test was carried out on 6 December, in 12 districts of the country.

Conclusion: The applications for job position within the State Administration, for the first time,following the Socialists arrival to power, started to be transparent through online webpages of therespective ministries, which still remain the same. The amendments made on the law of “civilservant” marked positive developments as to the transparency, too. But whether or notemployment following the relevant application and test through merit and competition is truly assuch, it remains an immeasurable issue.

This promise is considered as immeasurable.

12.Attack of corrupted workers in Public Institutions

Promise: On October, 1, 2013, the Prime Minister Edi Rama, held his first online conference as thehead of the government. Among the numerous questions asked by the citizens, he stated that heis determined to “impinge” all the corrupted workers in the public institutions. Asked whetherthere would be any criminal charges against any of the former high rank officials in case ofverifying corruptive affairs, the Prime Minister Rama, responded: “Undoubtly, yes.”

Facts

Dossier “Arben Imami”The former Defence Minister is the only minister directly denounced by his successor, MimiKodheli. In December 2013, she accused Imami of abuse with advertisement tenders, the purchaseof C-4 (explosive), transfer under his ownership of the sports-club ‘Partizani’, and even ofeavesdropping equipment for SHIU (Military Informative Service). But, in September, 2014, theProsecution Office of Tirana decided to close the investigation process for the dossier Imami. Theclosure of the investigation process against Imami and the other accused officials, resulted due tothe fact that during investigations no evidence of criminal precedent were found, more specificallyno abuse with duty. Imami’s legal activity was based on a DCM of 2008, even though this decisionis inconsistent with the law on Public Procurements. The Prosecution Office referred to this DCMto quash the case, while the DCM is still in force.

Dossier of Sea Pact with Greece On 28 May 2014, the Minister of Foreign Affairs, Ditmir Bushati submitted to the ProsecutionOffice information concerning abuses of sea agreement with Greece in 2009, concretely thecriminal offence of ‘alienating territories.’ At that time, this pact was signed by Lulzim Basha, in theposition of the Minister of Foreign Affairs, and was prepared by a negotiating group. Only onNovember, 22, 2014, the Prosecution Office of Tirana seized the whole dossier of this pact. TheProsecution Office is expected to interrogate also the negotiating group, composed of 11 people,but still is unknown whether the former Minister of Foreign Affairs, Lulzim Basha shall be asked toparticipate in the interrogation process.

Dossier “Ridvan Bode”

After a criminal offence of the Minister of Finance, Shkëlqim Cani, Anticorruption Task Force Unit,in the Prosecution Office of Tirana, received in October, 15, 2014 a criminal offence against RidvanBode and Sherefedin Shehu for a credit with 13.5 % interest rate, withdrawn in 2009 for theconstruction of Durrës-Kukës road. The Prosecution Office is still on the phase of searchinginformation by the Ministry of Finance, the second-tier Banks that participated in tender, as wellas from the former Minister of Finance, Ridvan Bode himself, and his deputy, Sherefedin Shehu.

Dossier of the former head of the cabinet of Spiro KseraThe High State Control and a former worker of the Ministry of Labour and Social Affairs, filed alawsuit in October, 2013 with the Prosecution Office of Tirana, at the time when this institutionwas headed by the minister Spiro Ksera, against four high officials of this ministry. They wereaccused of corruption, as they prearranged a tender of 20 million ALL for a television spot, whichwas never realized. All the four accused persons were given the measure of “arrest into jail”, buttwo of them Kleves Bitro, the former Director of the Cabinet and Murat Mehmeti are still declaredas being under search.

Dossier “Hysni Burgaj”On February, 2014, the Ministry of Interior, accused the former General Director of the StatePolice, Hysni Burgaj for infringement with regard to television advertisements, related to a tenderof 3.1 million dollars at the expense of the state budget. In addition to Burgaj, nine other formerhigh rank officials of the police department were denounced with the Prosecution Office with thesame accusation. Eight months after the investigation process, in September 2014, theProsecution Office of Tirana, quashed the case on the grounds that that the procedure alreadyfollowed comprised no elements of law infringement.

Other facts:

Dossier of “January, 21”Reopening of the case on the serious events of January, 21, 2011 protests that led to the killing of4 citizens by the Guard forces of the Republic and putting before justice the persons who orderedthe killings of 4 citizens, is one of the electoral promises made by Edi Rama and Socialist Party.Even after 1 year and four months of the Socialist Party governance, there is still no officialpronouncement by the executive institutions to request officially reopening of the dossier ofJanuary, 21.

Dossier of “Gërdec” The serious event on 15 March 2008 in Gërdec, where 26 citizens lost their lives and too manyothers were severely damaged, is one of the most serious events that have happened in Albania,not just for the fact that 26 people lost their lives, but also for the fact that this event revealed amega corruption among the higher officials of Berisha government and the businessmen whot ledthe illegal activity of military weapons dismantling, without meeting the technical conditions. Theweak and problematic progress of the judicial process for putting the real culprits of the tragedybefore the justice bodies, made the officials of the Socialist Party to declare permanently thatdoing justice for the explosion vicitims in Gërdec, would be one of the main commitments of theSocialist Party, mentioned also during the last elections on June, 23, 2013. Even in this case of aspecial importance, still there is no official pronouncement by the central institutions, to requestreopening of the Gërdec case as a whole, including also the main accused person of this case,Fatmir Mediu.

Conclusions: As already understood by description of the above facts, ‘elimination’ of corruptioncharacterizing former high officials of Berisha government, has remained at the level of thecriminal denouncement, which then are qashed by the Prosecution Office, while for some other,silence was the option.

This promise is considered as untrue/unfulfilled.

13. Formalisation of Economy

Promise: The government was committed to formalize the economy, by expanding the taxpayers’sbasis.

Description of the situation: The Albanian economy still faces problems of formalism. Accordingto the data from the World Bank, the “grey” part of the economy is assessed about 30%. Due tothe relatively high level of the informal economy, the state budget looses millions of ALL everyyear, while this causes problems on preservation of fair competitiveness in the market, because abusiness that does not pay taxes and duties is favoured in profits compared to a fair business.

Fact: In the first year of the governance, the government aimed to fight the fiscal evasion throughits policy of taxation and duties. For the first time in the budget of 2014 it was applied theprogressive tax which provided the reduction of the fiscal burden for low-salary employees. Bysuch a measure, the aim was not only to help the poor classes, but also to encourage thebusinesses disclose their low-salary employees. On the other hand, in the fiscal package of thisyear was provided increase on income tax from 10 to 15%. According to the businessrepresentatives, such as the Confindustry, Chamber of Commerce and Industry of Tirana, etc., thismeasure will affect the increasing of the evasion, given that increased taxes will cause businessesto avoid disclosure.

Official data of the Ministry of Finance show that for 2014, nearly 8.7% of the increase on incomesis a result of well-administration and this is an indicator of the fight against evasion. It is worthstressing out that the majority of the incomes of the state budget results from tax increase in thefiscal package, provided for this year up to 23 milliard ALL. Even in the fiscal package of 2015, thegovernment has provided increased taxes and duties, which will ensure 16 milliard ALL in the statecash desk. At the same time, due to well-administration it has planned to acquire nearly 30milliard ALL.

Meanwhile, a problem of concern for the market remains still malfunctioning of fiscal cash registerand the issuing of tax invoice. The General Taxation Directorate and the Ministry of Finance havestated that in July this year a National Lottery shall be organized, whereby citizens can earnvarious presents by collecting tax invoices and using them on the lottery. This project aimed atreceiving the invoice and fighting against evasion has still remained on paper.

It is to be seen how the fiscal well-administration and the other measures to be taken in the fightagainst fiscal evasion shall continue. Based on the progress made so far, this promise is consideredas untrue/unfulfilled.

14. Package on Justice Reform

Promise: Justice and its reformation is one of the most important duties that should be fulfilled,and even a major challenge in the work of the new government.

General description: Justice in Albania has been the lost challenge of each government in thecourse of 25 years of democracy. Every government that has governed the country during the past25 years, both the Democratic Party and the Socialist Party have demonstrated their unwillingnessto undo and rebuild a justice system capable of being independent, free from corruption andequal for everyone.

Fact: During this period, which corresponds to the 1 year and four months of governance,too little was done in this respect, almost nothing at all in the context of essentialreformation of the justice system. During this period were noticed certain marginalinterventions in the system, without direct impact on improving the judicial systemperformance. Some of the legal interventions and measures subject to verification anddenunciation of corruption cases are as follows:

Approval of the anticorruption legislative package, making amendments in the CriminalProcedure Code, classifying corruption as a serious crime, when committed by seniorofficials, judges, prosecutors, etc., and we decided that these cases shall be judged by theCourt of Serious Crimes;

2 judges have been arrested for the criminal offence of corruption;

3 judges are under investigation for concealment of property in millions of Euros (GjinGjoni case);

Setting online portal on the webpage of the Ministry of Justice for denouncing corruptioncases in the judicial system;

Digital Notary Register through ‘One Stop Shop’ system, for transactions with immovableproperties by avoiding corruption phenomena in this system;

Registration and digitalization of the whole AKKP decision-making process over the years,through scanning and registration in a unified database.

Despite the above mentioned interventions, a lot remains to be done in comprehensivereformation of the justice system in Albania. Hence, this promise still remains untrue/unfulfilled

15. Taking national assets under control

Promise: In May, 21 2013, in the Election Convention of the Socialist Party, the ParliamentMember Eduard Shalsi stated that a point of the socialists’ mission after winning elections in June,23, was putting and taking all the Albanian assets under control. According to Mr. Shalsi, the pastgovernment has barbarously exploited the natural resources and the beneficiaries were only aclique close to the government.

Fact

1. Shortly after official start at work, on 1 October 2013, the Council of Ministers annulled 25decisions of Berisha cabinet, mainly taken during the last months of the governance. Thesedecisions dealt with the concessions in the field of energy and natural resources, as well asgranting public assets to be used by private entities. The concessionary permission wasbanned for seven hydropower plants. The decision for the reconstruction of the Harbour ofYachts, in Porto Palermo, Himara was also annulled.

2. On 23 January 2014, the Council of Ministers abolished the decision taken in august, 2012,which granted for 30 years by concession, nearly 3 km of the Albanian coastline, from thebeach of Dhërmi to the beach of Perivolli. The Minister of Tourism and UrbanDevelopment, Eglantina Gjermeni, explained at that time that this decision was taken onthe frame of the necessary legislative interventions, considered as urgent for freeing theseareas from illegal constructions and interventions, to the detriment of the citizens’interests.

3. On March, 7 2014, the Minister of Energy and Industry, Damian Gjiknuri signed the start ofthe procedures for revoking of 121 mineral permissions that comprise nearly 16% of thetotal number of the issued permissions. The Order of Minister was issued following thecontrol exercised by the structures of the Ministry of Energy and Industry to the entitiesprovided with relevant permission for the development of their mining activity. During thisaudit it was identified the lack of implementation of the rules and financial obligations tothe state.

4. Transfer of the Electrical Energy Distribution Operator from the private administration tothe public one. On October, 17 20014, the Albanian State concluded the final agreementwith the Czech of CEZ, to pass 100% of the shares of OSHEE company to the state. Theconclusion of this battle, according to the Minister of Energy, Mr. Gjiknuri paved the way toinvestments and network interventions, which had been hostage to a failed privatizationprocess. Based on this agreement between the Albanian government and the CEZCompany, the latter benefited 95 million Euros.

By considering the actions of the majority so far, the promise to take the national assets undercontrol seems partially fulfilled. However, it still remains to be seen, in the future years of thegovernment mandate, what will happen to the ‘Albpetrol’ company, for which the MinisterGjiknuri has stated that “the Albanian government will try to resell it, but under new privatizationconditions”.

This promise is considered as partially fulfilled.

16. Starting the legalization process of illegal constructions

Promise: The government promised to fulfil the legalization process of the illegal constructionsand urbanization of these areas, as a method to put an end to urban chaos and to develop theterritory according to urban plannings. According to the promise, legalization will be free ofcharge.

Description of the situation: Informal and not legalized dwellings are one of the most acuteproblems of the Albanian society and the economy over the past 24 years. Despite eachgovernment’ promises, this process was never fulfilled, due to the large number of the objects tobe legalized, but even due to the numerous problems of this process. Based on the data of

ALUIZNI, until the end of 2013, nearly 22 thousand legalization processes were carried out and 293thousands of applications for legalization were submitted.

Fact: The first step undertaken by the government to solve the legalization issue was theamendment of the law No. 9482, dated 3.4.2006, “On legalization, urbanization and integration ofillegal constructions”, which entered in force in April, 2014. The relevant amendments providedinclusion of illegal constructions built on the territory of the Republic of Albania, in the legalizationprocedures, until the amendments of the Criminal Code of the Republic of Albania would enter inforce, regardless of the function and the fact whether or not self-disclosure was done during thespecified deadline. This enables the identification of illegal constructions, built after thelegalization period/deadline and treating them finally, through the administrative and legalprocedures.

In addition, the amendments of the law included creation of fiscal facilities for entities inpossession of illegal constructions, used as living environments dispensing them from service feefor the legalization procedures (identification on-site ofillegal constructions, preparation of thetechnical and legal documents) and providing free service. Accordingly, the dwellings legalizationprocedures were provided free of charge for the citizens. Amendments of the law provided evenother alternative ways of payment, such as partial payment through privatization vouchers,stimulation for immediate repayment of the obligations through reduction of the amount andinclusion of the construction parcel into alternative payment schemes for entities upon impossibleconditions to pay or in possession of illegal constructions used as living environments.

In addition, the government passed several DCMs to complete the legal package of the legalizationprocess. One of the main DCMs was the amendment of the assessment scheme of land, so thatthe land shall not have the same price in Tirana, Kukës, or Gjirokastra, etc.

Another measure taken by the government was the increased cooperation between ALUIZNI,Immovable Property Registration Offices and the Agency for Property Restitution andCompensation, in order to shorten the operation peroid. ALUIZNI decided December, 31 as thedeadline for self-disclosure. Following this date, all illegal constructions that are not under theprocess of legalization will be destroyed.

It still remains to be seen how the legalization and the issuing of property certificates processeswill proceed. Based on the progress so far, this promise is considered as partially fulfilled/forverification.

17. Reduction of the pension age for people working on rough/difficult jobs, miners, etc.

Promise: The present majority, promised during the electoral campaign of June, 23 2013 increaseof the pension age for people working on rough/difficult jobs, mainly the miners. Miners retire atthe age of 60.

Description of the situation: Reduction of the pension age for miners has been an early request ofthe Union of Independent Trade Unions of Albania and of the Independent Trade Union of Minersof Albania. They requested reduction of the pension age to 55 years, with 25 years of work, out ofwhich 12.5 years underground and 12.5 on the surface. The head of the Independent Trade Unionof Miners, Mr. Gëzim Kalaja has held continuous negotiation, not only with the currentgovernment, but even with the previous ones in order to reduce the pension age and increase thepension payment.

Fact: On 3 September 2014, spanning to a period of one year of governing mandate, the Council ofMinisters adopted a draft law compiled by the Ministry of Social Welfare and Youth on thereduction of the pension age for miners. The draft law “On pensions of workers who have workedin underground mines”, following submission before the parliamentary commissions, was adoptedin the parliamentary session on November, 6 2014 in the Parliament. Therefore, this meansreducing the pension age for the underground miners to 55 years old from 60 it previously was.Reduction of the pension age, in this way fulfils the request of the miners’ union, as a needrelevant to the difficult/rough work conditions in this sector. Under the law, the social insuranceperiod is predicted 30 years in total, of which 12 years and 6 months make up workingunderground. In his statements, the Minister of Social Welfare and Youth, Mr. Erion Veliaj, stated:“upon reduction of the pension age for miners, we kept our promise, since the first year of ourgovernance. We apologize about the past 8 years of the previous governance, during which theprevious government disregarded miners, who work everyday under rough/difficult conditions.”

Who benefits: By decreasing the retirement age for miners to five years, 3 thousand and 840workers in this sector benefit, of whom 3690 people are actually beneficiaries of the specialfinancial treatment scheme, in reliance of the law No. 8685, dated 9.11.2000, “On a specialtreatment of workers who have worked in mines, underground”, as amended; and the rest arenew beneficiaries. Under the law, based on the actual number of employees working undergroundmines, it was predected that for four years the number of people to benefit from the reduction ofthe retirement age, shall actually reach this figure. People due to be treated based on this newlaw, despite the predicted retirement pension, will benefit even the compensation on lowincomes, as well as the compensation resulting from the increase of the electrical energy price,similar to other people who benefit retirement pension. According to the Ministry of SocialWelfare and Youth, the law will bring increase of the retirement pension, not only for those due toretire under the new law, but also for those actually retired. The latter, based on the new law, willbe paid 5500 ALL more than they actually receive at the end of each month, i.e. 9 thousand ALL.While the miners’ retirement pension already calculated by the new formula will be up to 21thousands ALL. In total, the annual financial effect for 3 thousand and 840 beneficiaries, willamount to 739 million ALL.Pursuant to the procedure, following approval in the Parliament of Albania, the new law should bepublished in the Official Journal and shall enter in force after this publication. The law is publishedin the Official Journal on December, 1 2014, so it enters in force on December, 16 2015.

This promise is considered as true/fulfilled.

18. A system for the future, whereby everyone will benefit free health service while thehospital boards themselves shall decide on equipments

Promise: On February 16, 2013, the actual Prime Minister, at that time the Head of the SocialistParty, Edi Rama, stated in Elbasan that in the electoral program of the left wing about thehealthcare in the new system proposed, everyone would benefit free health service and thehospital boards would chose what equipment to buy. Therefore, after coming into power theSocialist Party would overthrow the current scheme of the system operation where every personpays 1.7% of his/her own salary which is as much as the employer pays as a contribution, too. TheSP Parliament Member, Klodiana Spahiu who led the compilation group of healthcare program,stated in September, 2013 that you just need the Albanian citizenship in order to benefit freehealth service. Thus, Albanians would pay no more health insurances in order to acquire thenecessary service. On the other hand, the hospital boards themselves would decide for purchasinglarge hospital equipments, and not the Ministry of Health. This promise comprises two sub-promises.

Fact: To say that every citizen benefits free health service means that he/she will not pay healthinsurance contributions, so they will be covered by the general taxation. In the television program“Kapital” of December 5, 2014, the Minister of Health, Ilir Beqaj stated that this scheme, thus theremoval of the health insurance, will start on January 1, 2017. According to the Minister, thescheme “the more you earn, the more you pay”, will bring incomes in the state budget, that shallbe used about the health funding. This scheme will be functional following approval of a new law,stated Mr. Beqaj. On the other hand, the opposition considered this promise of the majority a bigelectoral “manipulation”.

On the other hand, the government has undertaken for the first time the campaign of the freeHealth Control, for all Albanians aged 40-65 to visit once a year their health center near theirresidence and to perform their primary care free of charge. According to the Ministry of Health,this control will start in January, 2015. The 415 health centres all around Albania, will face theinflow of those asking to have their control. “We are drawing a relatively large map, which willfunction as a mobile unit. There will be five mobile units in about 15% of the Albanian territorywhich shall not be subject to their control in January, but shall have it from May to September,30”, stated Mr. Beqaj on December 5, 2014.

One of the steps undertaken by the government, on the frame of fulfilling this promise, relates tothe proposed initiative by the end of September, 2014. The Ministry of Health and the Fund ofInsurance and Health Care started to apply, for the first time in November, 2014 the free healthpackages. A coronary graphic analysis, by-pass interventions or dialyses are free even in theprivate hospitals. The Ministry of Health followed the procedures to purchase 10 service packagesfor the patients who kept waiting for months in public/state hospitals. The costs were calculatedby the Fund of Health Care Insurance and contracts with 5 private hospitals in the country wereconcluded.

As to the sub-promise, where the hospital boards will decide for the equipments they choose tobuy, still nothing has changed from the actual scheme and the large hospital equipment continueto be purchased by the Ministry of Health.

Assessing the above facts, it can be concluded that neither of the two promises was fulfilled. Eventhough the government, through the Ministry of Health introduced the package for free of chargevisits in the private hospitals, this cannot be considered as a radical change of the system or asustainable policy. This is still on the frame of the tendency to consider this process completed.Thus, this promise is considered as untrue/unfulfilled.

19. Within the first 9 months, all public works’ debts will be paid

Promise: Since the electoral campaign the current majority promised to repay public works’debts within the first 9 months of its governance, in an attempt to establish new relations withthe business in order to return the trust of undertaking to the public institutions and torepresent itself as a responsible government which accepts its own responsibilities (eventhough they were created by the previous government) and respects the contracts.

Description of the situation: Outstanding obligations to the business were created duringthe period of former Berisha government due to failure to pay contracts concluded mainly onpublic works during the three year period 2011-2013. The business suffered liquiditystagnation as a result of not paying the invoices and it was forced to continue its works onpublic works already commenced by taking credits from a bank or loans from other entities.This created a network of debts in the economy resulting in the decrease of money incirculation. Facing a financial difficulty, many companies could not repay their credits tobanks. Accordingly, the indicator of problematic credits was raised significantly by reachingaccording to the data of Bank Association a record of 24.4% by the end of 2013.

Considering this economic stagnation and also the difficult situation of the businesses, as themain contributor of economic growth by 80% and the main producer of employment, theactual government stood firm on its promise about repayment of obligations.

Fact: According to the government, the total amount of debts to business amounts to 72.6billion ALL. In order to certify this figure, the government contracted in October 2013, theDeloitte Company to assess the debts which in turn was paid 85 thousand euros. In the budgetof 2014 adopted by the parliament in December 2013, it was provided an amount of 35 billionALL about the repayment of obligations to entrepreneurship. In February 2014, by Decision ofthe Council of Ministers no. 50, dated 5.02.2014, the government adopted the Strategy ofRepaying Overdue Obligations and also the action plan to business and individuals. Thestrategy provided the repayment of these obligations within a three year period, starting from2014. For the next year, the budget of 2015 provided for repayment of obligations to businessan amount of 20 billion ALL or 15 billion ALL less than the amount planned in the budget of2014.

On the frame of the strategy, based on the official data of the Ministry of Finance until July 29,2014 about 30 billion ALL of outstanding obligations have been allocated according to thefollowing categories: (i) public investments (9.5 billion ALL, were allocated), (ii) currentspending on goods, services and other categories (about 6.7 billion ALL were allocated), VAT’sreimbursement (13.5 billion ALL were allocated) and in the energy sector about 4.4 billionALL. By calculating even the obligations paid in December 2013 to disabled persons whereabout 2 billion ALL were paid back and also 3 billion ALL for the road infrastructure sector,the total amount of inherited debts allocated so far goes up to almost 35 billion ALL.

Concerning VAT reimbursement, after the collaboration with the General Taxation Directorate,the Ministry of Finance has announced the list of entities subject to obligations which belongsto the period till December 31, 2013; for these entities it allocated about 13.5 billion ALL.

The activity about repaying outstanding obligations on the “public investment” has proceededsince 2012 and now it is continuing with the repayment of 2013’s outstanding obligations. Asto the repayment of outstanding obligations on “current expenditures”, actually outstandingobligations in the health sector have been taken under consideration and repayment of

obligations regarding other sectors is under way. In the “other” category, are proceededoutstanding obligations about court decisions and expropriation.

It should be observed how the repayment of outstanding obligations will proceed during 2015and 2016. Taking into consideration that the actual majority considered as its first promisethe repayment of these obligations within the first 9 months, this promise is consideredpartially fulfilled.

20. No new debts

Promise: The government has promised that it will not create new outstanding obligationsfor the business and that it will repay on time the obligations provided in the contracts withthe business, as well as VAT reimbursement.

Description of the situation: Payment on time of obligations to bussines and the preventionof creating new debts will lead to a reliable atmosphere between the government and theprivate enterprise will enable the business to continue its projects and to meet the fiscalobligations or those to third parties on time. This will enable the development of economy inline with the normal cycle and without unpleasant unexpected situations.

Fact: The prevention of recreating outstanding obligations is considered by the governmentas important as the repayment of inhereted debts. The Ministry of Finance has drawn ananalysis on the causes of delayed payments and will adopt specific measures to strengthen thebudgetary discipline, especially with respect to the budget planning. These measures requirerigorous implementation of the legal demands by the officials, the authorizing employees. Thestatutory sanctions provided on the legal framework in force will be implemeted if there isany infringement of legal and sublegal provisions. Measures on strengthening the financialdiscipline include the acquirement of necessary financing for the experimental year as well asthe next years prior to procurement start. As a necessary control measure, the procurementregister is officially and electronically deposited at the Treasury branch, at the beginning ofeach budgetary year as well as every relevant review during the year. In any case, the totalamount of procurements must be equal to or less than the funding approved for the budgetyear or for more than one year (multi-year investment contracts).

In addition, it is announced that the Council of Ministers will adopt the multi-year limits ofcommitments as part of the midterm budget documents and in the year 2015, these limitsshall be adopted by the Assembly, as part of the annual budget law, following review of thelegal base for the management of the budget system in the Republic of Albania. Regarding thismatter, even the adherence to the commitments will be monitored and controlled through theFinancial Computing System of the government (FCSG). Since January 2014, all procurementorders for goods, services or investments obtained during the year, except urgent buyingscosting less than 10,000 ALL, should be in compliance with the procurement registersubmitted at the Treasury and will be sealed by the district’s treasury branch if there arebudget funds available for the institution, before proceeding pursuant to the publicprocurement rules. As for goods, services, for which the tender process has begun before thestrategy entered in force, contracts will be presented at the treasury branch in order tocompare them with funds available.

So far, the government has not created any new debts. It must be observed how the approvalof the legal amendments and the repayment of business obligations will progress. Based onthe recent progress, this promise is considered true/fulfilled/for verification.

21. Reimbursement of VAT is your request, and our reflection is that onlyunreimbursed VAT, unliquidated fines and public obligations, lead the flat tax to 22%of the tax incomes and we shall reconceptualise the whole chain of VAT and there willbe no more delays of the administration to bussines which shall be liquidated on time.

Promise: The present majority promised during the election campaign of June 23, thesolution to the problem for VAT reimbursement of the businesses, which is considered one ofthe greatest economic deadlocks in the relation business-tax.

Description of the situation: VAT reimbursement has been an early problem businesseshave faced in Albania especially those who export. Tax Administration did not reimburse ontime the Value Added Tax, which often went up to millions of ALL per entity, by plunging thelatter one into a liquidity crisis. According to the data of Ministry of Finance, at the end ofDecember 2013, the total value of unreimbursed VAT went up to 78.4 billion ALL.

Fact: Concerning this case, in March this year, the government changed procedures of VATreimbursement. Through a directive published in the Official Journal, the Ministry of Financespecifies that “VAT reimbursement should be directly conducted from the Treasury system,

whereas until now it was conducted from tax bodies. The directive also defined the termswhen the reimbursement should be made. Districts’ tax branches, within 2 working days sincethe conclusion of the process for the verification of reimbursement requirements, delivers theannouncement for each Treasury branch respectively through the postal service. Theresponsible structure of the Treasury in the center takes precautions to ensure the necessaryliquidity for paying the reimbursement amount by the Regional Tax Office within 30 daysfrom the date of presenting the request for reimbursement for exporters and within 60 daysfrom the date of presenting the request for reimbursement for other taxable people.

Another initiative, undertaken by the government in order to facilitate this process evenmore, is VAT reimbursement according to risk analysis. This is provided in the draft law “Ontax procedures”, as adopted by the Parliamentary Commission of Economy and is expected, toenter soon on the agenda for discussion and approval in plenary session.

The risk analysis provides that VAT reimbursement be conducted automatically and withoutcontrol for those businesses with a good history of relations with taxes and result to becorrect in paying their tax obligations. Therefore, it is aimed at eliminating bureaucracy andminimizing time in conducting the reimbursement process as well as stimulating business tocreate a regular profile in their relation with the tax administration. In the draft law “On taxprocedures”, it is also specified that VAT reimbursement period for exporters should bereduced from the current 90 days to 60 days due to the specificities of this sector.

It must be observed how this draft law will be implementedd in practice. Based on thechanges accomplished by now, this promise is considered immeasurable.

22. Products “Made in Albania”. We want that condition and standards to beEuropean ones. Together we shall immediately identify the fiscal barriers delayingexports and we shall eliminate all the taxes on import

Promise: The government has announced as one of her priorities the creation of “Made inAlbania” products, as a menas to create the Albanian brand and to stimulate thecompetitiveness of the Albanian economy.

Description of the situation: Our economy suffers from the lack of Albanian brands orproducts “Made in Albania”. Only a few companies carry out the whole production cycle in thecountry, by ensuring even the selling markets. What is strongly developed in Albania is thefason industry, where businesses import raw material and produce their products there,especially textiles and shoes according to the models order by the contractor and after this,they export them. The flourishing of the fason industry in Albania is correlated with theexploitation of the cheap labor force in our country. According to the data of the Institute ofStatistics, exports of the textile and shoes group reached the value of 72.4 billion ALL for theperiod January-October 2014, by marking a rise of 25.5% compared with the same period ofone year ago. The former period resulted in 34% of the total amount of Albanian exports.

Fact: The government has announced as its own priority the transition from the fasonproduction towards the closed cycle, or in other words, the creation of “Made in Albania”products. To support this industry, the government adopted in April 2014 the package ofmeasures in support of the fason sector, drawn up by the Ministry of Economic Development,Trade and Entrepreneurship. The package concerning fasons provides 32 measures. Most ofthem provide the reduction of administrative bureaucracy. Among the main measures are:

The Decision of the Council of Ministers on the reduction of the land’s price for rent up to 1euro and which is an initiative which will influence the budget of 24 million ALL.

The solution to the problem about the technological wastes through the approval of the newGuideline on January 2014 and which will enable the reduction of the administrative cost andalso of the time for businesses.

The reduction of the deadlines on VAT reimbursement within 30 days in the case of exportingtaxpayers.

The simplification of the procedures at the Labor Office and stimulation to the insurancecompanies created by the Ministry of Youth and Social Welfare through approval ofamendments of four CMD and also the creation of the online portal about application fromentities.

Arben Ahmetaj, the Minister of Economic Development, Trade and Entrepreneurship, statedon November 5, 2014 at a plenary session of the parliament that out of 32 undertakenmeasures about the fason industry, 23 of them have been implemented by far. Among them,there are 14 legal acts and government decisions.

Furthermore, during this year the Ministry of Economic Development, Trade andEntrepreneurship has provided 3 programs worth 36 million ALL, including the CompetitionFund, Innovation Fund and that of Creative Industry, which also aim at developing “Made inAlbania” products.

In the 2015 budget, the government has provided an amount of 2.5 million dollars as asupport for the fason sector. Following the supportive package of measures about the fasonsector, the government will approve a similar package about the agricultural sector, againintented to promote also “Made in Albanian” products.

In order to facilitate trade exchanges, on November 24, the Ministry of Finance and theGeneral Directorate of Customs presented the draft law of Simplified Procedures, where areprovided some measures, such as the arrival of the goods directly in the facilities of theEconomic Operator, without needing to carry out formalities in an internal customs office andtheir release in these facilities. It also includes accomplishment of the whole procedure of thegoods exportation within the same facilities of the Economic Operator; and that the storagecost shall be reduced to 0 (zero) etc.

It should be observed how the implementation of the measures about the fason sector andthose for facilitating trade will progress. Based on the current progress, this promise isconsidered partially fulfilled /for verification

23. “Fight against organised crime and trafficking of narcotic substances”

Promise: During the parliamentary electoral campaign of 2013, order and restoration ofsecurity in the country were among the main promises of the socialists’ electoral program.The alarming numbers of the internationals, especially those of U.S State Departmentconcerning human trafficking, were a main factor in prompting the socialists to consider thefight against crime and mafia as a “national emergency”. This was described even in the firstparliamentary plenary session on September 14, 2013 by Saimir Tahiri, the Minister of

Interior.

Facts: Operation “End to Madness”On October 15, 2013, the State Policy began for the first time an operation all over the countryrelated to the blocking of gambling machines. 6 thousand police forces were dispatched in thefield based on the argument that illegal entrepreneurship, which provided money to the worldof crime should be removed from market. During only the first 5 hours of the operation wereblocked 540 facilities supplying gambling machines that did not possess regulardocumentation and avoided tax obligations. At the end of this operation, which according tothe State Policy was concluded on December 31, 2013, it resulted that among other things,over 3700 gambling machines’ equipment were confiscated. Also, based on the Police data,the amount of taxes unpaid by gambling machines’ businesses reached about 110 milliondollars per year.

Operation in Lazarat: After more than 20 years of resistance against the State Policy, theinternationally famous village about the cultivation and trade of narcotic substances becamepart of a massive operation which commenced on June 16, 2014. 800 police forces wereinvolved in the operation. According to the final data of the State Policy, during the successivedays of this operation were destroyed around 133.567 narcotic plants and was alsoconfiscated an amount of 71.087 tons of cannabis sativa. Furthermore, during theseinspections were found 5 laboratories 2 of which served for processing narcotic plants andthe 3 others for processing cannabis oil. In the operation which lasted more than 5 days werealso confiscated guns, C4 (explosive) and gambling machines.

Operation in Dukagjin: After the operation in Lazarat, during August 2014, the State Policystarted another operation about the identification and destruction of narcotic plants’ parcelsin Dukagjin, Shkodër. In the end, during the 8 days of the police operation there werediscovered 313 parcels and were destroyed 136.468 narcotic plants.

Fight against human trafficking: In a recent television interview (October 2014) of theInternal Affairs deputy/minister, Elona Gjebrea, during the period September 2013-October2014, it was stated that in Albania were found 88 trafficking victims for the purpose of sexualexploitation. According to Mrs. Elona Gjebrea, in the latest report of U.S Department of State,Albania is described as a country of source and destination, but not as a transit one of humantrafficking. Hence, it is not on the observation list anymore, but it has ascended to a highercategory.

Conclusions: In the progress report that the EU ambassador in Tirana, Romana Vlahutin,handed to the Albanian government in October 8, 2014, among others, was emphasized that“the Government has shown a strong will in the fight against organized crime, especially in thefight against narcotic substances, economic crime and human trafficking”. Actually, thisprogress report was the epilogue of receiving the candidate status for EU membership, whichcame immediately after the operation in Lazarat. The government intervention in Lazarat is afulfilled promise, thus giving it the right to declare that it has reestablished the State Police onduty. However, it must also be emphasized that the successful operation, appeared after adifficult period related to the order situation, after the frequent explosions by C4 (explosive)as well as after the debate initially political about narcotic substances trafficking by air. Thisdebate culminated on May 10, 2014, with the fall of an airplane in Divjakë transporting drug.

This promise is considered partially fulfilled /for verification.

24. Education Reform

Promise: During the electoral campaign for the elections of June 23, in some meeting held indifferent Albanian areas, the Prime Minister Edi Rama, emphasized the need for an urgentimprovement of the education system in Albania. Some of the interventions that Ramapromised are related to the change of law regarding higher education, state graduationreform subject to fair competition and meritocracy, schools as community centers and theclosing of universities that do not fulfil the relevant criteria.

The State Graduation will be reformed for the purpose of meritocracy:Prime Minister Edi Rma declared in one of his first conferences as the head of the newgovernment that the State Graduation reform was necessary. The statements made by the endof 2013, were intensified at the beginning of 2014 when the Prime Minister and the Ministerof Education, Mrs.Lindita Nikolla stated that “we need to grant more credit to meritocracy andto create more space for the competitors. By granting more credit to meritocracy we will bemore successful, not only individually, not only for you, but also for others, who in amotivating system are much closer to success than failure. Our current system is one whichdoes not motivate success and hides failure. One who receives the highest grade is notsatisfied either with himself or with the surrounding environment and one who has faileddoes not know he has already failed”.

Facts: On April 2014, after the online registration of the State Graduation, the Ministry ofEducation stated that it had increased the passing threshold. In other words, in StateGraduation tests, students had to take 10 points which is 20% in order to pass. Meanwhile,the evaluation of the average grade for the 3 year period in the State Graduation was changedfrom 20% to 26%. For 2013-2014 SG comprised around 14.350 State Graduation students.

In conclusion of the exams, the Education Ministry, declared that for the first time the StateGraduation was well managed. According to the minister, Lindita Nikolla, the increase of thepassing threshold resulted in public universities with a better quality of the students in thenew academic year than in the previous academic year.

On November 24, 2014, the Ministry of Education and Sport, presented a public report of2013-2014 State Graduation. Considering it a scientific study, Mrs. Lindita Nikolla stated thatthis public report served as an indicator for the reform and also for the need of a unique test.For the first time, in this study were presented numbers related to the results according to thecountry’s District, or to the optional subjects which brought good results and those whichcaused problems for graduated pupils.

The closing of the private universities that do not fulfil the relevant criteria:In March 2014, in implementation of the Order no. 106, 03.28.2014 of the Minister ofEducation and Sport “On checking the application of law in public and private institution ofhigher education”, the Department for Supervising Implementation of the Legislation inHigher Education, near ISHA, was engaged in the process of inspecting 59 higher educationinstitutions exercising their academic activities in the territory of the Republic of Albania.

The inspection carried out by AME in April 2014 resulted in:

18 higher privat education institutions having their licenses revoked;

13 higher private education institutions having suspended their activity until fulfillingthe respective recommendations;

7 branches of public education institutions which failed to guarantee a good service inhigher education, having their license revoked;

Schools as community centers:At the beginning of the Socialist Party mandate, in November 2013, the Ministry of Educationand Sport, introduced the new concept about Albanian schools which was “schools ascommunity centers”. This new innovative concept for Albania, is intended to transform theschool environment into a dynamic, recreational, progressive space for youngsters, a space ofnew collaboration between teachers, families and community.

The project “School as a Community Center” has now been implemented in 66 schoolsthroughout the country, following more than 1 year since the launching of the initiative.

Drafting a new law on Higher Education:In January 2014, was set up the Commission on the Reform of Higher Education which wasproposed by Minister of Education and Sport. Tthe most important purpose of thiscommission was drafting of proposals on legal amendments and the consultations with theinterest groups and other actors of the academic world to receive their suggestions andopinions.

In April 2014, the commission released its first report on suggestions about legalamendments, suggestions which were immediately opposed by the University of Tirana andUT students. The official attitude of UT students was pretty clear; the proposed draft does notfulfil the demands about a complete reform of higher education and scientific research. Thedraft must necessarily represent the proposals of the interest groups. Some of the items whichfailed to reach an agreement with UT are related to the model of financing, the integration ofthe boards into the universities’ structures, the way of admitting new students as well as theincrease of the tuition fee. These were among the items which were not welcomed by themanaging staff of 16 higher education public institutions.

ConclusionThe policies and legal amendments undertaken by the government during this 1 year and ahalf of governance on the framework of improving the educational system in Albania can beconsidered positive, but not adequate to solve the qualitative and structural problem carriedout for years. Discussions concerning the new law about education are expected to reopen inJanuary 2015. This would be a good opportunity for the interest groups to advocate and lobbyfor designing a stable and qualitative law. Considering the facts mentioned above, it resultsthat some of the policies are under implementation, whereas some others are expected to beimplemented. Thus, this promise is considered partially fulfilled /for verification.

25. We will create 300 thousand new jobs.

Promise: One of the main promises of the actual majority was creation of 300 thousand newjob positions within the first governance mandate. The Socialist Party promised that the mainsectors due to offer new job positions were: agriculture, fasons and tourism.

Description of the situation: Unemployment remains one of the main problems in Albania.According to the official data of the Institute of Statistics about the population aged 15-64,during the third quarter of 2014 the unemployment rate reached 17.4 %. Compared with theprevious quarter, the unemployment rate was decreased by only 0.3 %. Unemployment is stilla problem, especially for youngsters. According to INSTAT data, during the third quarter ofthis year, the level of unemployment is estimated to be 32.4 % for youngsters aged 15-29.

Fact: Employment is assessed through two ways: The administrative data, which provide dataabout employment (job positions) in enterprises with declared taxes in the General TaxationDirectorate, employment in the public sector and the recorded unemployment. Meanwhile thesecond way is the Labor Force Questionnaire, which is a statistical observation, carried out ina selection of 5040 families via questioning all people aged 15 and older. Different from theadministrative data, the questionnaire enables the estimation of the economically non-activenumber of the population, which is comprised of pupils/students, pensioners, discouragedunemployed persons, housewives etc.). However, according to the questionnaire’smethodology a student or a person at the age of pension declaring that in the reference weekhas worked in a certain job (even for an hour) is classified as employed. The group of peoplework as voluntary employees in their family businesses is not declared at the General TaxationDirectorate. This category, according to the Labor Force Questionnaire amounts up to about32 % of the total employment. Based on the above reasoning, the Questionnaire does notprovide a clear and all-inclusive view of both unemployment and employment across thecountry.

The government contends that during the first year of its seat, it has created 81 thousand newjob positions. This is a declaration given in the parliament during the approval of 2015’sbudget by the Prime Minister Edi Rama in November 27, 2014. However, according to theadministrative data published by the Institute of Statistics, the increase in the number ofemployees in the private, non-agricultural sector for the period December 2012-September2013 was around 10.3000 people. Meanwhile the increase in the number of employees in theprivate, non-agricultural sector for the period December 2013-September 2014 was around11.400 people, i.e only 1100 higher. Additionally, in the public sector no significant increase isobserved.

In order to observe the increase of the new job positions, let us assess also budget incomesfrom taxation over personal incomes. According to the data of the Ministry of Finance,covering the period January-October 2014, incomes from TAP have decreased by 5.6%. Thisdecrease is the result of the change from the flat tax to the progressive one. Meanwhile thelabor force questionnaire, according to its methodology figures out even those who do not paytaxes. The Ministry of Finance data also show that for the period January-October 2014,incomes from social and health insurances have risen respectively by 8.9% and 11.1% with anannual base, which do not correspond to the increase of 81 thousand job positions. Even thenumber of the contributors to the social insurance scheme is not in compliance with suchincrease. According to the official data of the Social Insurance Institute, the number ofcontributors to the insurance scheme for the 9 months of this year has been 658,239 people,meanwhile, during the same period of a year before, the contributors’ number has been636,954 people. Thus, it is a rise of about 21,285 people. In the increased number ofcontributors are also included new employees as well as those who have previously worked

illegally and now have been formalized and have been included in the scheme.

It must be observed how the creation of new job positions will progress over the followingperiod. Based on the current progress, this promise is considered untrue and unfulfilled.

Sources of Information:

Promise 1- http://time.ikub.al/6b7e39c074/99a55311d51ab8fa58122f14f24263c9/Lajm_Rama-Do-ulim-ne-6-TVSH-ne-e-energjise-per-familjaret.aspx

Promise 2- http://koha.net/?id=27&l=19986 (found: 1.11.2014)

http://www.panorama.com.al/2013/10/18/ndarja-e-re-reforma-shkrihen-284-bashki-dhe-komuna/

http://www.reformaterritoriale.al/reforma/kush

Promise 3-http://gazeta-shqip.com/lajme/2013/10/02/rama-sdo-te-pastrojme-administraten-por-shtetin-shqiptar-nga-korrupsioni/

Premtimit 4- http://www.shqiptarja.com/aktualitet/2731/emigrantet-ne-greqi-s--39-kane-me-pengesa-per-toponimet-ne-pasaporta-161846.html (found: 13.10.2014);http://www.panorama.com.al/2014/05/13/toponimet-deklarate-e-perbashket-shqiperi-greqi/ (found:13.10.2014)

http://www.gazetadita.al/veliaj-me-emigrantet-pa-pengesa-ne-pikat-kufitare-per-zgjedhjet-premtimi-yne-i-mbajtur/

http://albanians.gr/toponimet-zgjidhje-deri-me1-janar-2015-levizje-e-lire-e-emigranteve-deri-ate-date-2.html

Promise 5- http://top-channel.tv/new/lajme/artikull.php?id=283508 (found: 13.11.2014)

http://grid.al/read/news/156242704/3286843/lezhe-rama-do-te-krijojme-agjenci-kombetare-per-bregdetin

http://www.kryeministria.al/al/newsroom/vkm/vendime-te-keshillit-te-ministrave-miratuar-ne-mbledhjen-e-dates-22-janar-2014&page=4

Promise 6- www.sociale.gov.al; www.issh.gov.al; www.minfin.gov.al

Promise 7- http://vizionplus.al/be-refuzon-statusin-kandidat-vendimi-ne-qershor/

Promise 8- http://www.balkanweb.com/shqiperi/2685/polic-t-e-r-n--n--detyr--rama-sht-pi-familjeve-t--tyre-s-tradhtojm--gjakun-155549.html (found: 18.10.2014)

http://www.gazetatema.net/web/2013/01/23/rama-do-rishikojme-pensionin-per-familjet-e-policive-te-rene-ne-detyre/

Promise 9- www.oshee.al; www.ere.gov.al

Promise 10-www.shqiptarja.com; www.monitor.al

Promise 11-www.ps.al; www.kryeministria.al ; www.isksh.com.al, www.top-channel.tvwww.shqiptarja.com

Promise 12-www.kryeministria.al; www.dap.gov.al; www.inovacioni.gov.al; www.vizionplus.tv;www.shekulli.com.al; www.ballkanweb.com

Promise 13-www.kryeministria.al; www.gjykatatirane.gov.al; www.klsh.org.al www.punetejashtme.gov.al; http://www.drejtesia.gov.al/al/newsroom/lajme/arritjet-e-300-diteve-te-para-te-punes-se-ministrise-se-drejtesise&page=2

Promise 14-www.minfin.gov.al

Promise 15- http://www.aluizni.gov.al/

Promise 16-www.kryeministria.al; www.energjia.gov.al; www.ata.gov.alwww.panorama.com.al

Promise 17-www.aluizni.gov.al

Promise 18-www.vizionplus.tv; www.panorama.com.al; www.sociale.gov.al; www.parlament.al;www.legjislacioni.gov.al

Promise 19-www.shqiptarja.com; www.vizionplus.tv; www.shendetesia.gov.alwww.isksh.com.al

Promise 20- www.minfin.gov.al

Promise 21-www.monitor.al; www.minfin.gov.al

Promise 22-www.instat.gov.al ; www.ekonomia.gov.al

Promise 23-www.ps.al; www.punetebrendshme.gov.al; www.asp.gov.al; www.integrimi.gov.alwww.gazetatema.net; www.top-channel.tv; www.vizionplus.tv

Premtimi24-www.arsimi.gov.al, http://darberat.arsimi.gov.al/, www.gazeta-shqip.com; www.shekulli.com,www.oranews.tv

Promise 25-www.instat.gov.al; www.minfin.gov.al; www.issh.gov.al

Promise 26-http://www.gazetatema.net/web/2013/07/25/rama-ofron-formule-te-re-per-instat-in-dhe-perserit-audit-nderkombetar-per-financat/