Within six decades, our economy moved from being a commodity-dependent nation to one that is successfully transformed. We subsequently elevated ourselves to where we are today, an economy that is open, diversified and competitive. This is only possible because of continuous investments in infrastructure over many decades. Rationalising tax incentives to be in line with international practices On the global regulatory front, as we had witnessed, the unfolding of the global financial crisis revealed the significant vulnerability of international financial markets to market dislocations. Calls for greater regulatory harmonisation and the adoption of international best practices have gathered speed, blurring the distinction between onshore and offshore regulatory requirements. Offshore financial centres which remain mired in the old model and thinking are set to become part of a sunset industry. There have also been significant advancements with respect to international taxation practices. Authorities are now more proactive in seeking to mitigate the distortionary effects of harmful tax competition on the allocation of resources and its negative implications on national tax bases. Malaysia, until early this year, has been an observer of the OECD’s Inclusive Framework on Base Erosion Profit Shifting (BEPS). Since January 2017, we have agreed to become a participating member in the Inclusive Framework. This will allow Malaysia to participate in the BEPS related work on equal footing with other OECD and G20 countries. We will also be able to provide direct inputs to shape the content of the BEPS related standards.
I would like to emphasise that undertaking such projects emphasises the mutual engagement of the EU and Albania with regard to deepening integration processes of our country, and reiterates Albania’s European perspective. Dear ladies and gentlemen, In the last decade, Bank of Albania has implemented a number of EU-funded projects. The first twinning project was implemented during 2012 – 2013. At that time, like now, Banca d’Italia – in partnership with Banque de France – contributed successfully to achieving concrete results in six areas of Bank of Albania’s activity. The second project – needs analysis for Bank of Albania’s approximation, funded by the EU – was led by the European Central Bank and was implemented during 2014. The aim of the sixmonth project was to assess the legal, regulatory and operational frameworks of the Bank of Albania vis-à-vis standards and best practices applied in European central banks. From this perspective, it should be underlined that the recommendations left upon the completion of this project are incorporated in the list of main priorities for Bank of Albania’s institutional approximation to the model applied in the European System of Central Banks. In addition, in light of addressing these priorities, the European Commission decided to allocate EUR 800 000 as under IPA 2015. After a long process of consultations and sharing information, for the first time, Bank of Albania’s experts put together a Twinning Project, which was submitted to the European Union Delegation to Albania.