European Union vs. Albania

Following the two devastating World Wars in the first half of the 20th century, a number of far-sighted European leaders in the late 1940s sought a response to the overwhelming desire for peace and reconciliation on the continent. In 1950, the French Foreign Minister Robert SCHUMAN proposed pooling the production of coal and steel in Western Europe and setting up an organization for that purpose that would bring France and the Federal Republic of Germany together and would be open to other countries as well. The following year, the European Coal and Steel Community (ECSC) was set up when six members - Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands - signed the Treaty of Paris.

The ECSC was so successful that within a few years the decision was made to integrate other elements of the countries' economies. In 1957, envisioning an "ever closer union," the Treaties of Rome created the European Economic Community (EEC) and the European Atomic Energy Community (Euratom), and the six member states undertook to eliminate trade barriers among themselves by forming a common market. In 1967, the institutions of all three communities were formally merged into the European Community (EC), creating a single Commission, a single Council of Ministers, and the body known today as the European Parliament. Members of the European Parliament were initially selected by national parliaments, but in 1979 the first direct elections were undertaken and have been held every five years since.

In 1973, the first enlargement of the EC took place with the addition of Denmark, Ireland, and the UK. The 1980s saw further membership expansion with Greece joining in 1981 and Spain and Portugal in 1986. The 1992 Treaty of Maastricht laid the basis for further forms of cooperation in foreign and defense policy, in judicial and internal affairs, and in the creation of an economic and monetary union - including a common currency. This further integration created the European Union (EU), at the time standing alongside the EC. In 1995, Austria, Finland, and Sweden joined the EU/EC, raising the membership total to 15.

A new currency, the euro, was launched in world money markets on 1 January 1999; it became the unit of exchange for all EU member states except Denmark, Sweden, and the UK. In 2002, citizens of those 12 countries began using euro banknotes and coins. Ten new countries joined the EU in 2004 - Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. Bulgaria and Romania joined in 2007 and Croatia in 2013, but the UK withdrew in 2020. Current membership stands at 27. (Seven of the new countries - Cyprus, Estonia, Latvia, Lithuania, Malta, Slovakia, and Slovenia - have now adopted the euro, bringing total euro-zone membership to 19.)

In an effort to ensure that the EU could function efficiently with an expanded membership, the Treaty of Nice (concluded in 2000; entered into force in 2003) set forth rules to streamline the size and procedures of EU institutions. An effort to establish a "Constitution for Europe," growing out of a Convention held in 2002-2003, foundered when it was rejected in referenda in France and the Netherlands in 2005. A subsequent effort in 2007 incorporated many of the features of the rejected draft Constitutional Treaty while also making a number of substantive and symbolic changes. The new treaty, referred to as the Treaty of Lisbon, sought to amend existing treaties rather than replace them. The treaty was approved at the EU intergovernmental conference of the then 27 member states held in Lisbon in December 2007, after which the process of national ratifications began. In October 2009, an Irish referendum approved the Lisbon Treaty (overturning a previous rejection) and cleared the way for an ultimate unanimous endorsement. Poland and the Czech Republic ratified soon after. The Lisbon Treaty came into force on 1 December 2009 and the EU officially replaced and succeeded the EC. The Treaty's provisions are part of the basic consolidated versions of the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU) now governing what remains a very specific integration project.

UK citizens on 23 June 2016 narrowly voted to leave the EU; the formal exit took place on 31 January 2020. The EU and UK have negotiated and ratified a Withdrawal Agreement that includes a status quo transition period through December 2020, which can be extended if both sides agree.

Albania declared its independence from the Ottoman Empire in 1912, but was conquered by Italy in 1939 and occupied by Germany in 1943. Communist partisans took over the country in 1944. Albania allied itself first with the USSR (until 1960), and then with China (to 1978). In the early 1990s, Albania ended 46 years of isolated communist rule and established a multiparty democracy. The transition has proven challenging as successive governments have tried to deal with high unemployment, widespread corruption, dilapidated infrastructure, powerful organized crime networks, and combative political opponents.

Albania has made progress in its democratic development since it first held multiparty elections in 1991, but deficiencies remain. Most of Albania's post-communist elections were marred by claims of electoral fraud; however, international observers judged elections to be largely free and fair since the restoration of political stability following the collapse of pyramid schemes in 1997. Albania joined NATO in April 2009 and in June 2014 became an EU candidate. Albania in April 2017 received a European Commission recommendation to open EU accession negotiations following the passage of historic EU-mandated justice reforms in 2016. Although Albania's economy continues to grow, it has slowed, and the country is still one of the poorest in Europe. A large informal economy and a weak energy and transportation infrastructure remain obstacles.

under the EU treaties there are three distinct institutions, each of which conducts functions that may be regarded as executive in nature:
European Council - brings together heads of state and government, along with the president of the European Commission, and meets at least four times a year; its aim is to provide the impetus for the development of the Union and to issue general policy guidelines; the Treaty of Lisbon established the position of "permanent" (full-time) president of the European Council; leaders of the EU member states appoint the president for a 2 1/2 year term, renewable once; the president's responsibilities include chairing the EU summits and providing policy and organizational continuity; the current president is Charles MICHEL (Belgium), since 1 December 2019, succeeding Donald TUSK (Poland; 2014 - 2019)
Council of the European Commission - consists of ministers of each EU member state and meets regularly in 10 different configurations depending on the subject matter; it conducts policymaking and coordinating functions as well as legislative functions; ministers of EU member states chair meetings of the Council of the EU based on a 6-month rotating presidency except for the meetings of EU Foreign Ministers in the Foreign Affairs Council that are chaired by the High Representative for Foreign Affairs and Security Policy
European Commission - headed by a College of Commissioners comprised of 28 members (one from each member country) including the president; each commissioner is responsible for one or more policy areas; the Commission's main responsibilities include the sole right to initiate EU legislation (except for foreign and security/defense policy), promoting the general interest of the EU, acting as "guardian of the Treaties" by monitoring the application of EU law, implementing/executing the EU budget, managing programs, negotiating on the EU's behalf in core policy areas such as trade, and ensuring the Union's external representation in some policy areas; its current president is Ursula VON DER LEYEN (Belgium) elected on 16 July 2019 (took office on 1 December 2019); the president of the European Commission is nominated by the European Council and formally "elected" by the European Parliament; the Commission president allocates specific responsibilities among the members of the College (appointed by common accord of the member state governments in consultation with the president-elect); the European Parliament confirms the entire Commission for a 5-year term.

The 27 member states that make up the EU have adopted an internal single market with free movement of goods, services, capital, and labor. The EU, which is also a customs union, aims to bolster Europe's trade position and its political and economic weight in international affairs.

Despite great differences in per capita income among member states (from $28,000 to $109,000) and in national attitudes toward issues like inflation, debt, and foreign trade, the EU has achieved a high degree of coordination of monetary and fiscal policies. A common currency - the euro - circulates among 19 of the member states that make up the European Economic and Monetary Union (EMU). Eleven member states introduced the euro as their common currency on 1 January 1999 (Greece did so two years later). Since 2004, 13 states acceded to the EU. Of the 13, Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014), and Lithuania (2015) have adopted the euro; seven other member states - excluding Denmark, which has a formal opt-out - are required by EU treaties to adopt the common currency upon meeting fiscal and monetary convergence criteria.

The EU economy posted moderate GDP growth for 2014 through 2017, capping five years of sustained growth since the 2008-09 global economic crisis and the ensuing sovereign debt crisis in the euro zone in 2011. However, the bloc's recovery was uneven. Some EU member states (Czechia, Ireland, Malta, Romania, Sweden, and Spain) recorded strong growth, others (Italy) experienced modest expansion, and Greece finally ended its EU rescue program in August 2018. Overall, the EU's recovery was buoyed by lower commodities prices and accommodative monetary policy, which lowered interest rates and stimulated demand. The euro zone, which makes up about 70% of the total EU economy, performed well, achieving a growth rate not seen in a decade. In October 2017 the European Central Bank (ECB) announced it would extend its bond-buying program through September 2018, and possibly beyond that date, to keep the euro zone recovery on track. The ECB's efforts to spur more lending and investment through its asset-buying program, negative interest rates, and long-term loan refinancing programs have not yet raised inflation in line with the ECB's statutory target of just under 2%.

Despite its performance, high unemployment in some member states, high levels of public and private debt, muted productivity, an incomplete single market in services, and an aging population remain sources of potential drag on the EU's future growth. Moreover, the EU economy remains vulnerable to a slowdown of global trade and bouts of political and financial turmoil. In June 2016, the UK voted to withdraw from the EU, the first member country ever to attempt to secede. Continued uncertainty about the implications of the UK's exit from the EU (concluded January 2020) could hurt consumer and investor confidence and dampen EU growth, particularly if trade and cross-border investment significantly declines. Political disagreements between EU member states on reforms to fiscal and economic policy also may impair the EU's ability to bolster its crisis-prevention and resolution mechanisms. International investors' fears of a broad dissolution of the single currency area have largely dissipated, but these concerns could resurface if elected leaders implement policies that contravene euro-zone budget or banking rules. State interventions in ailing banks, including rescue of banks in Italy and resolution of banks in Spain, have eased financial vulnerabilities in the European banking sector even though some banks are struggling with low profitability and a large stock of bad loans, fragilities that could precipitate localized crises. Externally, the EU has continued to pursue comprehensive free trade agreements to expand EU external market share, particularly with Asian countries; EU and Japanese leaders reached a political-level agreement on a free trade agreement in July 2017, and agreement with Mexico in April 2018 on updates to an existing free trade agreement.

Albania, a formerly closed, centrally planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, the negative effects of the crisis caused a significant economic slowdown. Since 2014, Albania's economy has steadily improved and economic growth reached 3.8% in 2017. However, close trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of possible debt crises and weak growth in the euro zone.

Remittances, a significant catalyst for economic growth, declined from 12-15% of GDP before the 2008 financial crisis to 5.8% of GDP in 2015, mostly from Albanians residing in Greece and Italy. The agricultural sector, which accounts for more than 40% of employment but less than one quarter of GDP, is limited primarily to small family operations and subsistence farming, because of a lack of modern equipment, unclear property rights, and the prevalence of small, inefficient plots of land. Complex tax codes and licensing requirements, a weak judicial system, endemic corruption, poor enforcement of contracts and property issues, and antiquated infrastructure contribute to Albania's poor business environment making attracting foreign investment difficult. Since 2015, Albania has launched an ambitious program to increase tax compliance and bring more businesses into the formal economy. In July 2016, Albania passed constitutional amendments reforming the judicial system in order to strengthen the rule of law and to reduce deeply entrenched corruption.

Albania's electricity supply is uneven despite upgraded transmission capacities with neighboring countries. However, the government has recently taken steps to stem non-technical losses and has begun to upgrade the distribution grid. Better enforcement of electricity contracts has improved the financial viability of the sector, decreasing its reliance on budget support. Also, with help from international donors, the government is taking steps to improve the poor road and rail networks, a long standing barrier to sustained economic growth.

Inward foreign direct investment has increased significantly in recent years as the government has embarked on an ambitious program to improve the business climate through fiscal and legislative reforms. The government is focused on the simplification of licensing requirements and tax codes, and it entered into a new arrangement with the IMF for additional financial and technical support. Albania's three-year IMF program, an extended fund facility arrangement, was successfully concluded in February 2017. The Albanian Government has strengthened tax collection amid moderate public wage and pension increases in an effort to reduce its budget deficit. The country continues to face high public debt, exceeding its former statutory limit of 60% of GDP in 2013 and reaching 72% in 2016.

Albania's small telecom market has improved through signatory status of EU accession plan; EU financial aid will build infrastructure and enhance cooperation; operator committed _100 million to upgrade fixed-line infrastructure, supporting broadband services nationally; consistent with the region, fixed-line telephony use and penetration is declining as subscribers prefer mobile solutions; mobile sector is supported through LTE networks; operators have invested in 5G, including the intention to create a corridor with Kosovo; importer of broadcasting equipment from EU neighbors (2021)

the EU's Common Security and Defense Policy (CSDP) provides the civilian, military, and political structures for EU crisis management and security issues; the highest bodies are:

the Political and Security Committee (PSC), which meets at the ambassadorial level as a preparatory body for the Council of the EU; it assists with defining policies and preparing a crisis response

the European Union Military Committee (EUMC) is the EU's highest military body; it is composed of the chiefs of defense (CHODs) of the Member States, who are regularly represented by their permanent Military Representatives; the EUMC provides the PSC with advice and recommendations on all military matters within the EU

the Committee for Civilian Aspects of Crisis Management (CIVCOM) provides advice and recommendations to the PSC in parallel with the EUMC on civilian aspects of crisis management

the Politico-Military Group (PMG) provides advice and recommendations to the PSC on political aspects of EU military and civil-military issues, including concepts, capabilities and operations and missions, and monitors implementation

other bodies set up under the CSDP include; the Security and Defense Policy Directorate (SECDEFPOL), the Integrated approach for Security and Peace Directorate (ISP), the EU Military Staff (EUMS), the Civilian Planning and Conduct Capability (CPCC), the Military  Planning  and  Conduct  Capability (MPCC), the European Defense Agency, the European Security and Defense College (ESDC), the EU Institute for Security Studies, and the EU Satellite Center

as a political union, the EU has no border disputes with neighboring countries, but Estonia has no land boundary agreements with Russia, Slovenia disputes its land and maritime boundaries with Croatia, and Spain has territorial and maritime disputes with Morocco and with the UK over Gibraltar; the EU has set up a Schengen area - consisting of 22 EU member states that have signed the convention implementing the Schengen agreements or "acquis" (1985 and 1990) on the free movement of persons and the harmonization of border controls in Europe; these agreements became incorporated into EU law with the implementation of the 1997 Treaty of Amsterdam on 1 May 1999; in addition, non-EU states Iceland and Norway (as part of the Nordic Union) have been included in the Schengen area since 1996 (full members in 2001), Switzerland since 2008, and Liechtenstein since 2011 bringing the total current membership to 26; the UK (since 2000) and Ireland (since 2002) take part in only some aspects of the Schengen area, especially with respect to police and criminal matters; nine of the 13 new member states that joined the EU since 2004 joined Schengen on 21 December 2007; of the four remaining EU states, Romania, Bulgaria, and Croatia are obligated to eventually join, while Cyprus' entry is held up by the ongoing Cyprus dispute

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