Integrity of elections puts Albania’s EU membership at risk
Political risk is skyrocketing in Albania ahead of parliamentary elections in June, with rumours spread of potential vote rigging.
The election looks set to be closely contested by the country’s two main political parties, the ruling Democratic Party (DP) and the opposition Socialist Party (SP).
A new Maplecroft risk report says recent claims by the SP that the DP is planning to rig the results of the upcoming election raise the spectre of political standoff and unrest in June, should allegations of electoral fraud emerge.
According to the report, a number of investment risks arise as a result of the ongoing, albeit slow-paced, harmonisation of Albania’s environmental legislation with that of the European Union.
While companies may find it difficult to comply with increasingly onerous requirements – due to necessary investments in control technologies, new internal procedures and/or skilled staff – the regulatory authorities are also likely to struggle to implement and enforce the new rules.
The perceived integrity of the nation’s parliamentary elections will also have significant influence over the speed at which the country can move toward membership of the EU.
Extreme exposure to the eurozone crisis combined with high levels of debt and key structural challenges mean that the Albanian economy is volatile.
Reforms necessary to stabilise the macroeconomic environment appear unlikely to be adopted in the short term as the government is unlikely to jeopardise its re-election prospects by introducing unpopular policy initiatives.
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