Annex 4 – Format of the table of the adopted legal acts
17.3 Economic Policy
During the past eight years, the Albanian government has submitted to the European Commission its medium term Economic and Fiscal Program, in fulfillment of the requirements for pre-accession countries. Last year the country obtained candidacy status for EU membership, which entailed new requirements for reporting based on EU standards. In this context, Albania is required to annually submit to the European Commission the National Economic Reform Program (NERP).
Addressing the request on Subcommittee on Economic and Financial Issues and Statistics meeting 2014, Albania officially submitted the NERP 2015-2017 approved by the Council of Ministers on 28 of January 201559
NERP 2015-2017 presents the main priorities, policies and reforms of the Albanian government and the Bank of Albania on economic aspects. It is based on and in accordance with Law no. 160/2014 "For the Budget Year 2015" and with the Macroeconomic and Fiscal Framework 2016-201860.
Ministry of Finance (MF) appreciates all the valuable recommendations and assessment on NERP 2015-2017 that will be provided by DG ECFIN. In September 2015, MF is planning to start the work for the preparation of the next NERP 2016-2018. MF will make all the efforts to implement the recommendations of DG ECFIN while the policy guidelines of EC will be the main guide of our economic policies and reforms of the next programme.
During 2014, the Bank of Albania has continued to use forward guidance to steer the public and the financial markets expectations on the path for future monetary policy. The macro prudential measures have helped impeding the further increase of the NPL ratio but have proved little impact to generate new lending activity due to the subdued lending demand and the overall uncertainties perceived from economic agents and banks. The still high NPL ratio continues to burden balance sheets of the banking system.
Total revenues increased by 12.1% during 2014 compared to 2013. Tax and customs revenues experienced a growth of about 10.7% on annual terms during 2014. This is a considerable improvement compared to the negative trend of this indicator for the past two years. Total revenues and especially revenues from tax and customs shows a consistent increase for this period in annual terms. Part of this increase is probably driven by post effects of the new tax measures enforced in 1st of January 2014.
The continuing trend in tax collection during 2014 that had a turning point during Q4-2013 has been highly crucial for the public finances as well as the overall macroeconomic stability of the country. Furthermore, other kinds of current budget revenues (i.e. revenues from local power with an annual increase of 15% and social contributions with an annual increase of 16.5%) have performed better during 2014, with an exemption from the non-tax revenues that during this period have been declining (-4.1% in annual terms). Total revenues and tax and customs revenues in terms of GDP were respectively 25.9% and 17.9% for 2014, higher than the level for 2013, respectively 1.9 and 1.1 percentage point higher.
Overall fiscal deficit was lower in the end of 2014 than the target of the revised budget. Mainly due to the increase of revenues as well as lower than planned foreign capital expenditures and lower increase of current expenditures during the period January – December 2014, the fiscal deficit for January – December 2014 was about 5.1% of GDP, or 18.5% lower than it was planned for that period. Compared with the same period of last year (2014/2013) the fiscal balance shows a slight increase of 0.2 percentage points higher, even if the high commitment of the government in achieving a necessary fiscal consolidation, by taking into account also the IMF program. The fiscal deficit for 2014 was mainly financed through net new borrowing. About 3 percentage points of the overall deficit for that period was domestically financed and 2.1 % was mainly foreign financed.
Developments in revenues and expenditures during 2014 led to another important positive fiscal result regarding the current fiscal balance. In the end of 2014, the current fiscal balance was in surplus of about 1.6% of GDP or 1.7% percentage points higher than it was for 2013.
The primary balance was about -2.3% of GDP during 2014, showing a balance in deterioration which is almost a consequence of the previous year (-1.7% of GDP – on annual terms). The primary balance is 0.6 percentage point higher in absolute value compared with the last year (2013).
The public debt in the end of 2014 (excluding the stock of arrears) is estimated at 69.2% of GDP (if we add to this level the stock of total outstanding arrears as estimated, we will have a level of 71.8% of GDP of the total public debt). Compared to the level of debt at the end of 2013, there has been a slightly increase by 0.7 percentage point, mainly due to the paying of the arrears that has begun to happen by the government during that period.
In 2015 Ministry of Finance is targeting a fiscal deficit of 3.9% of GDP. About 5% of GDP will be financed through domestic and foreign debt, respectively 3.9% and 1.1% of GDP. The rest will be financed through smooth loans from IMF and WB. This part of financing will be in the form of “budget support” but at the same time an equivalent amount of budget expenditures is allocated toward the payment of arrears (infrastructure, tax and other arrears).
Annex 4 – Format of the table of the adopted legal acts
No
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Title
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Type of legal act
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Institution
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Act’s No
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Adoption date
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Implementation date
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Fiscal and Macroeconomic Framework 2016 - 2018
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Decision of Council of Ministers
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Council of Ministers (as decision maker)
Ministry of Finance (as appliance)
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68
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28.01.2015
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28.01.2015
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Conclusion
The expansionary stance of monetary policy was strengthened further in the last quarter of 2014 and beginning of year 2015. The policy rate was cut in 2 consecutive steps in November and January, bringing the policy rate down to a historically low level of 2.0%. Meanwhile, the Bank of Albania has continued to use its forward guidance to address the weakness of the domestic demand and firm inflation expectations. The overall monetary policy framework has remained unchanged from the previous year. The revised Monetary Policy Document provides slight refinements that help public understand the BoA’s inflation targeting regime. The tolerance band of +-/1.0 percentage point to the 3.0% target is removed in order to improve the anchoring of inflation expectations, while the document also communicates the principles of monetary policy pursued by BoA. The BoA’s monetary policy will continue to be accommodative in line with the achievement of price stability objective in the medium term.
CHAPTER 18: STATISTICS
Statistical infrastructure
The law no. 9180, dated 05.04.2004 “On official statistics”, amended is fully approximated with European Statistics Code of Practice and EC Regulation 223/2009
The professional independence is guaranteed by law. INSTAT as well as other statistical agencies are obliged to respect statistical principles and quality statistical principles provided in the Articles 4 and 4/1 of the Law. The articles are fully in line with 15 principles provided by European Statistics Code of Practice.
The existing law on official statistics predicts a 5 year mandate for the General Director.
With the entry into force of the Law no 152/2013 “On civil servants”, amended, the INSTAT’s General Director’s position is considered as high level civil servant, because INSTAT is a central public institution under Prime Minister.
The procedures for recruiting the civil servant of high level are implemented according to the new law on civil servants.
In addition, the Law no. 152/2013 “On civil servants”, amended, charges the responsible institutions to review the specific laws that affect this law. It means that the law on official statistics should be reviewed to be in line with recruitment procedures predicted by the new law on civil servants
The resources are partially adequate to meet current statistical needs and for the implementation of the acquis.
Data collected processed partially according to scientific principles and in a cost effective manner. INSTAT disseminate the statistical data at the same time to all users.
In the publication calendar INSTAT puts all press releases for the next year and this calendar is available on INSTAT’s website. INSTAT publish this calendar in the end of the previous year. The publication calendar is fully respected in practice and all users have access and verify if there are delays.
Annual work programme is in working progress. Multi annual work programme it is consulted with users and published.
The law on official statistics charges all providers of administrative data to give access to statistical agencies for statistical purposes.
In order to improve the quality of administrative data as well as to enhance the quality infrastructure for exchanging these data for statistical purposes, INSTAT had signed different Memoranda of Understanding with providers of data (like National Bank, Ministry of Finance, General Taxation Directory, etc).
Further steps are going to be taken by INSTAT in order to increase the awareness of the role of stakeholders within National Statistical System for improving statistical and data sources quality.
The new Memorandum of Understanding signed on 12 March 2015between INSTAT and General Taxation Directory can be taken as a concrete successful step regarding this issue.
NACE Rev.2, CPA 2008, ISCO-08, GEONOM and Statistical regions (NUTS level 3) are implemented. While the ISCED is not implemented yet. Starting from 2014 all economic statistics are published in NACE Rev.2.
Currently INSTAT manages one register which is Statistical Business Register. Statistical Business Register is updated yearly from administrative and statistical sources.
Additional administrative data are needed to enhance the quality of official statistics produced by INSTAT or other statistical agencies. In order to include other providers of administrative data within National Statistical System, INSTAT is communicating with other public institutions. INSTAT will improve the infrastructure technology through the support provided by the project IPA 2013, contributing this way guarantee access to the data.
This will improve the collaboration between parties for statistical production. New memoranda signed between statistical agencies and stakeholders will ensure the accession on administrative data or will charge the institutions to provide in time and in the right form the data needed for statistical production.
Macro-economic statistics
INSTAT has published time series of QGVA, 2008Q1-2014Q4, for 7 main branches of economy (NACE Rev.1.1), at current and constant prices (chain-linking data 2010=100), seasonally and not seasonally adjusted data.
Please refer to: http://www.instat.gov.al/en/themes/national-accounts.aspx.
Experimental estimation is done for Taxes and Subsidies on product, in time series, 2008Q1-2014Q4 and the results are not published yet.
Also INSTAT has implemented an independent method for the estimation of GDP by expenditure and has started to set up the compilation system. Actually are estimated main components in time series, 2008Q1-2014Q4, at current and constant prices (chain-linking data 2010=100). The results are not published yet.
Annual Gross Domestic Product is produced by production and expenditure approach, in current and in constant prices (at prices of previous year). ESA 2010 is implemented partially in AGDP data.
Annual sector accounts have been started to compile as an experimental version (non-financial accounts only) due to data constraints and we are now working with the intention to arrive to a final version.
General Government non-financial Accounts are compiled in an experimental method. Full Coverage with information for the GG sector is still an issue.
Moreover there are no quarterly sector accounts compiled.
INSTAT published for the first time, in year 2015, SUT at current prices for years 2009-2011 and IOT for year 2011 (see tables link below) according to the classifications NACE Rev 1.1 and CPA 2002.
http://www.instat.gov.al/en/themes/national-accounts.aspx?tab=tabs-5
For us now is important to produce annually consolidated SUTs in current and constant prices and IOT according to NACE Rev 2 and CPA 2008 classifications. Ongoing work is focused on 2012 SUT compilation at NACE Rev 2 at current prices and the experimental form of 2012 SUT at constant prices.
Regional Accounts (GVA and GDP), in current and constant prices are compiled by 12 statistical region levels 3 and by 7 industries, for years 2008 -2012. For more information consult the following link:
http://www.instat.gov.al/media/251339/press_release_gdp_by_regions_2012.pdf
Also the country doesn’t produce fiscal notifications.
There is a partial transmission of data following ESA2010 TP.
INSTAT:
Transmission: September 2014
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ESA2010 Questionnaire 0101 - Gross value added at basic prices and gross domestic product at market prices (Current prices (2008-2012) & Constant Prices (2009-2012))
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ESA2010 Questionnaire 0102 - GDP identity from the expenditure side (Current prices (2008-2012) & Constant Prices (2009-2012))
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ESA2010 Questionnaire 0110 - Population and employment (1995-2013)
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ESA2010 Questionnaire Table 0117 - Final consumption expenditure of households by durability (2008-2012)
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ESA2010 Questionnaire 0120 - Exports of goods (fob) and services by Member States of the EU / third countries (1,2) (2008-2012)
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ESA2010 Questionnaire 0121 - Imports of goods (fob) and services by Member States of the EU / third countries (1,2) (2008-2012)
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ESA2010 Questionnaire 0301- Output (2008-2012)
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ESA2010 Questionnaire 0501 - Final consumption expenditure of households by purpose (Current prices (2008-2012) & Constant Prices (2009-2012))
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ESA2010 Questionnaire 0502 - Final consumption expenditure of households (2008-2012)
Transmission: 3/11/2014
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ESA2010 Questionnaire 0200 - Main aggregates of General Government (2010-2013)
All the tables were transmitted using EDAMIS in SDMX format
In June 2014 BoA released the first set of quarterly balance of payments data (Q1 2014) according to the BPM6. In September 2014, BoA released back data from Q1 2013. Work is under way to release back data starting from Q1 2010.
The external trade statistics are produced in line with acquis. The memorandum of understanding with Custom authorities is in place.
Financial accounts are not produced in country level.
Outward FATS: BoA is responsible for the compilation of outward FATS. Until end of March 2015, BoA has finalized the register of companies with investments abroad. The next step is a survey of these companies which is expected to provide annual outward FATS data in the medium term.
Inward FATS: Is not fully implemented by INSTAT
EDP (GFS) tables were sent for the first time in October 2014 for the years 2010-2014. There is still work in process for the improvement of the coverage of GG. Accrual accounting is partially in place for expenditure but incomes are not yet fully in accrual.
The HICP is in process of implementation and it’s mostly in line with acquis. PPPs are in line with acquis
Partially as in SBS are implemented four first annexes in line with acquis from all 9 annexes of the Regulation on Structural Business statistics.
Latest version of PRODCOM is not yet implemented
Partially, as the Short Term statistics are not fully in line with acquis, the Service activities are not fully covered.
FATS data are not yet available.
The Tourism statistics are partially not fully in line with acquis. Data on net occupancy rates are not provided yet.
The road transport and water transport statistics are partially produced and for inland transport statistics are not covered.
Moreover INSTAT will conduct every two years the specific survey on R&D in all sectors, which will be implemented in September 2016
INSTAT will conduct every two years the specific survey on Innovation near enterprises. This year (2015) it will be implemented in September.
The specific annual survey on ICT near enterprises will be implemented in May 2015. Until now, the main indicators on ICT statistics for households have been drawn from living condition surveys. INSTAT is considering the implementation of a separate survey to produce ICT statistics for households, starting from this year.
Social statistics
13 publications in figures in national and regional level and depth analyses for different issues were published. Please consult the link form more information http://www.instat.gov.al/al/census/census-2011.aspx
During 2014-2015, a pilot income and living condition survey was planned to be implemented with the assistance of 2012 IPA Multi-Beneficiary. The pilot has been conducted in a sample of 600 households and the data are entered, cleaned and in the elaboration process until October 2015. The results of the pilot are foreseen to be the bases for the implementation of the full scale survey, planned to be conducted for the first time in spring 2016 in Albania
The current social protection statistics are not yet complying with ESSPROS but INSTAT is considering introducing the system in Albania.
The Labour Market Statistics implemented until now are following the recommendations of ILO and EUROSTAT. Actually, the Labour Force Survey is being conducted quarterly from 2012 and a Labour Cost Survey has been carried for the first time in the end of 2013 and planned to be repeated every four years.
There are not yet plans regarding the Structure of Earnings and Job Vacancy Statistics as this is to be in line with additional budget and additional staff while the Labour Cost Index has been planned to be supported by IPA 2013.
Public Health statistics are partially available and partially harmonized according to the acquis.
The data of asylum are collected according to the requirements of the acquis. The statistics on external migration are only estimation.
Statistics on education and vocational training implemented according to EU standards. In the future INSTAT will conduct CVTS and AES surveys.
Crime statistics are partially implemented. We are waiting for the new classification.
Agricultural statistics
Crop statistics are produced according to acquis Reg. EU 543/2009;
More detailed data on some fruits and vineyard are not yet collected, because Orchard survey and Vineyard survey are not yet in place. The data for total and production orchard area and vineyard area are collected in base of requirements of EU Reg. 543/2009. For production and yields the data are collected as well as in base of the same regulation.
Milk and dairy statistics are produced according to acquis (CD 97/80EC Annex I)
Slaughter statistics are produced to acuiqs ( Annex IV EU of Regulation EC 1165/2008)
Farm Structure survey is not implemented.
Supply Balance Sheets (SBS) are available in group products.
Economic Accounts for Agriculture are compiled for production account at gross value added level.
Data collection and system for calculating Absolute Prices is in place. The statistics are produced in line with “Handbook for EU Agricultural Price Statistics”.
System for calculating Agricultural Price Index developed, missing weighting scheme coming from EAA
Agricultural Labour index is not compiled yet.
The Agriculture Census is carried out in 2012. Results of this census are not published yet. It is noted a big discrepancy between census data and previous administrative data of the Ministry of Agriculture, Rural Development and Water Administration. Currently the work for analysis of discrepancies is ongoing.
Environment and energy statistics
INSTAT provide short term statistics of energy produced based on administrative sources. Related to annual structural it’s partially in line with acquis.
INSTAT provide twice per year the Balance of electricity based on administrative sources in line with acquis. The NANR (National Agency of Natural Resources) is responsible for the general balance of energy resources.
Waste statistics are produces for municipality solid waste only.
In 2014 INSTAT carried out first full-scale survey on municipality solid waste heaving so first data on over noted items by survey except waste treatment by waste categories.
Statistics for water are collected administratively in 2014 referred to year 2013.
For environmental account, air emission accounts, environment related taxes in total or by economic activity until now are not indicators produced.
Accounts and environmental protection expenditure are not produced yet. We intend to start with environmental account components this year producing so first usable data mentioned.
Like accounts the material flow balance has been not started yet. Data source identification and methodological issues are now in place for these items.
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Complementary crosscutting
All requested available statistical data are transmitted to EUROSTAT, using EDAMIS.
CHAPTER 19: SOCIAL POLICY AND EMPLOYMENT
Key achievements
The pension reform was concluded with the “Pension Policy Paper” and the preparation of the necessary changes in the new draft social insurance law. The reform process has continued with approval of Law No. 104/2014, “On some changes and additions to Law No. 7703, date 11.5.1993, “On social protection in the Republic of Albania, as amended”, which entered into force on 1 January 2015.
Regarding health and safety at work, a series of draft legal acts to the implementation of Law No. 10237, date 18.02.2010, “On safety and health in the workplace” were approved by the Council of Ministers pursuing alignment on the acquis in this field. Under the supervision of the Central Inspectorate, the Regional Directorate of Tirana of the State Labour and Social Services Inspectorate started to use the “e-Inspection” portal in June 2014. The National Register of Inspectors is being prepared.
During the reporting period, DCM No. 818, dated 26.11.2014, “On the approval of the National Strategy for Employment and Training 2014 – 2020 and respective action plan” was approved.
The Ministry of Social Welfare and Youth (MoSWaY), has submitted for consultation the final draft of the National Action Plan on Youth 2015-2020” to the line ministries. The goal of the National Action Plan on Youth is to create more opportunities for education, employment, culture and the full participation of young people in society and decision-making.
19.1 Labour legislation
Status of legal harmonization
To address the implementation of short term planned legal measures of the NPEI 2014 – 2020, the draft law “On some amendments to Law No, 7961, date 12.07.1995, “Labour Code of the Republic of Albania”, as amended, was prepared by the Working Group which included also representatives of trade unions, employer’s organisations and representatives of State and Tirana District Court. The Labour Code has been drafted according to the recommendations of the International Labour Office (ILO), where EU directives are transposed with the support and cooperation of the ILO and international experts selected by this organization.
In April 2014, the draft Labour Code was approved by the Council of Ministers and is expected in the coming months to be adopted by Parliament.
The draft of the labour legislation reflects the proposals submitted by the social partners, issues encountered during the practical implementation of the Labour Code provisions, some important elements of the acquis on the safety and health at work, prohibition of discrimination, as well as special protection of women and recommendations of the European Committee of Social Rights (ECSR) – Council of Europe – based on the national reports of Albania on the implementation of the Revised European Social Charter and the ILO Committee of Experts on the implementation of the ILO Conventions and Recommendations.
Economic and social aspects
As far as the economic and social aspects of the draft labour legislation are concerned, specific information can be found in Annex III.19.1.
19.2 Health and safety requirements at work
Status of legal harmonization
A series of draft legal acts to the implementation of Law No 10237 of 18.02.2010 “On safety and health in the workplace” were approved (minimal health and safety requirements at workplace on exposure to electromagnetic fields, optical radiation, to the risk arising from noise, to the risk arising from vibration) and six other regulations, transposing 6 others individual directives, related to protection of workers in the mineral-extracting industries through drilling, in surface and underground mineral-extracting industries, pregnant women, young workers, fishing vessels, on exposure to the risk from explosive atmospheres were finalized to be approximated following Council Directives, with IPA support, and we are in process of gathering all the recommendations from interested parties, as can be found in Annex III.19.2.
Institutional framework
On 21 October 2014 in Tirana a workshop on Movement of Labour Force in the region within Southeast Europe 2020 (SEE 2020) “Strategy for creating jobs and welfare in a European perspective” was organized. The Ministry of Social Welfare and Youth (MoSWaY), in cooperation with the Regional Cooperation Council (RCC) and the International Organization for Migration (IOM) were the organizers of the event.
Economic and social aspects
During the reporting period, the MoSWaY undertook the following activities:
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Identified and reported to the tax authorities, in 2886 subjects, completely developed informally during the action, in order to identify areas for inspection by any labour inspector. In these informal entities, resulting work completely unprotected, 4,638 employees.
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Identified informal employee in 1757 licensed entities - employees from 1031. In relation to the number of subjects - inspected, the respective comparative periods, we identified 26% more informal employee on the subject.
So, the MoSWaY recorded a total of 6,395 illegal workers, who are vulnerable but at the same time contributing to miss the social security scheme. In other words there are about 39 million, missing the state budget.
Increase of capacities of staff
During the reporting period the General Labour Inspectorate undertook a series of actions. Details can be found in Annex III.19.3.
19.3 Social dialogue
Status of legal harmonization
As regards promoting and developing social dialogue in the draft Labour Code is extended of the tripartite social dialogue even in a regional level. This provision foresees the establishment of Regional Tripartite Consultative Councils, which will have discussions especially on the regional policies related to the employment, vocational training, protection of employees, hygiene and technical safety, production, welfare, education and economic matters.
Institutional framework
The National Labour Council is the highest tripartite social dialogue institution in the country established and operating in pursuance of Article 200 of the LC and DCM No 1039/2013 On the Functioning of the National Labour Council and the appointment of the representatives of the Council of Ministers in this Council as well as its functioning standing orders. The National Labour Council (NLC) consists of 27 members where the Government is represented by 7 members (Ministers) and the employers’ and employees’ organizations are represented each by 10 members.
Two meetings of the National Labour Council were held during the reporting period.
Moreover, the following tripartite committee meetings were organized:
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Judicial Commission
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The Commission of Occupational, Health and Safety
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The Commission of Pensions and Social Security
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The Commission of Employment, Education and Vocational Training
In regard to the reorganization of the National Labour Council, there have been restructured the State Offices of Reconciliation and the State Network of Mediation and based on this on October 2014 there were drafted and adopted two orders and one directive of the Minister of Social Welfare and Youth as follows:
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Order of the Minister No. 203, dated 24.10.2014 “On the establishment and propulsion of the State Offices of Reconciliation”.
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Order of the Minister No. 204, dated 24.10.2014 “On the establishment of the State Network of Mediation”.
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Directive of the Minister No. 15, dated 24.10.2014 “On the organization and functioning of the State Network of Mediation”.
In the area of promotion and development of bipartite social dialogue, we were engaged in procedures of mediation and reconciliation which aimed to reach agreements to collective labour disputes at: electricity distribution operator for the rights of trade union representatives (the employer fired 2 of them without consent of Trade Union); and “Beralb” company- in case of collective redundancies and the improvement of working conditions. In all these cases the peaceful solution was reached between the parties.
Economic and social aspects
On 14 October 2014, in the NLC consulted the Reform of Vocational Education and Training and as well as there were reviewed four draft decisions for adoption of the following draft regulations:
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“On the protection of the safety and health of workers from risks associated with noise in the workplaces”.
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“On the protection of workers from risks associated with optical radiation in the workplace”.
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“On the protection of workers from risks associated with non-ionizing radiation in the workplace”.
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“On the protection of workers from risks associated with mechanical vibration in the workplace”.
On 6 February 2015, in the NLC it was consulted the Social Security Reform and the fight against informality and as well as were reviewed the following four draft decisions related to health issues at work:
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Draft DCM “On the adoption of the Regulation “On the minimum requirements for safety and health at work of workers at risk from explosive atmospheres”.
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Draft DCM “Amending the CoMD no. 108, dated 9.02.2011 “On the skills to be met by employers, individuals and specialized services that deal with issues of safety and health at work”.
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Draft DCM “On controlling the employees’ health at workplace”.
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Draft DCM “On the declaration, recording and reporting of occupational diseases”.
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