Albanian crisis will hold off reform needed for EU

Significance

In the political battle between Prime Minister Edi Rama and President Ilir Meta, parliament -- which is dominated by Rama’s Socialist Party (PS) -- wants to impeach the president following his attempt to cancel the June 30 local elections. Meta’s move was prompted by the decision of the main opposition parties, including the centre-right Democratic Party (PD), to boycott the poll.

Impacts

• Failure to resolve the political crisis will delay the opening of Albania’s accession talks with the EU.
• The political uncertainty will dampen economic growth, which slowed markedly in the first quarter of 2019.
• A deteriorating business environment will weaken foreign direct investment inflows.
• If economic performance remains subdued, it could result in more Albanian migrants seeking work abroad.