Macroeconomics Policy and the Europeran Union Accession: Albanian Case

Abstract

The purpose of this paper is the analyze of the Albanian macroeconomic situation, its developments and policies through the
challenging way to the EU accession. Albania was the last of the central and eastern European countries to embark on democratic and
free market reforms. Although it might be early to say that everything was done in the proper way to establish the new market economy,
Albania is seriously involved in this transformation and has the chances to join Europe, and furthermore the worldwide economic
community. Albanian’s economic performance shows success story with many ups and downs. Even though Albanian economy has
improved substantially over years and outperformed many other countries in the Balkan region, according to major income indicator we
still remain the poorest country in Europe. Trying to be part of EU, Albania still has to perform many structural reforms with
macroeconomic and fiscal frameworks. A long way in reducing macroeconomic imbalances such as external deficit and the high
unemployment rate but also following a prudent monetary policy by reaching and maintain price stability and strengthening the
surveillance of financial system. It will be concluded that the developments of Albanian economy to fulfill the EU conditions, even though
in difficult situations, will lead on a proper way to the important goal, the EU accession, but would have the positive impact on Albanian
growth. This paper is based on real and official data taken from INSTAT and World Bank, which will be theoretically analyzed and it will
take place also a regression analyze.