EU Urges Albania to Reform Judicial System and Corrupt Governance

As a precursor for acceptance into the European Union, Eurozone leaders require that Albania improve its judicial branch and foster government transparency, according to the Associated Press. EU authorities granted Albania candidate status and they are expected to enter negotiations for full membership this year. The United States has also pressed the Balkan nation for similar reforms.

As a precursor for acceptance into the European Union, Eurozone leaders require that Albania improve its judicial branch and foster government transparency, according to the Associated Press. EU authorities granted Albania candidate status and they are expected to enter negotiations for full membership this year. The United States has also pressed the Balkan nation for similar reforms.

Albania’s economy struggles, but the Southeast European nation receives support from the U.S. so it can enter the EU with ease. U.S. officials gave Albania $20 million for reform efforts, including an additional $5 million for 2016. The United States, however, has another motive in boosting Albania’s success, hoping officials would honor an agreement accepting opposition members in Iraq who are no longer welcome due to objections from the Iraqi government. With that, the Albanian government must clean its own house and aid citizens before lending refuge to others.

Albania has come a long way since its Communist past, but the economy is one of the poorest in Europe. Albania’s finance minister has pressed the country’s central bank to keep interest rates low this year to get the economy above 4.0% growth. Policymakers also believe lower rates would attract more investors, but the country’s unstable track record has proved to be a detriment to flourishing business activity, and Albania was considered one of the most dysfunctional governments in Europe.

The good news is that Albania has made vast improvements, while attracting a great number of investors, including a sovereign ratings upgrade from Standard & Poor in February, notes Reuters.

In recent years, Albania’s economy has been hit hard from multiple angles, most notably lower oil prices, the Greek financial crisis and the Eurozone downturn. Further, Albania is one of many nations in the region facing an overwhelming number of refugees and migrants from the Middle East and Africa. One reason why Albania is concerned about the migrant crisis is its location between Macedonia and Greece, where many new arrivals gain entry into Europe. Officials fear that Macedonia will close its border, causing migrants to use Albania as gateway into the EU.

While such a situation could affect Albania on a negative level, authorities should be worried about in-house problems that could lower economic output and prevent EU membership. Aside from corruption, Albania also has a tax evasion problem, which is a major issue for a government that needs all the revenue it can muster to sustain operations.

Further, aid packages and financial support from outside nations means little unless Albania has an efficient system that can move the nation forward. Albania stands to benefit a great deal by joining the EU, but a failure to achieve reform is the sole barrier to EU membership. Authorities also wish to boost tourism, combat organized crime, and cut red tape as additional measures.