N ATIONAL E CONOMIC C OUNCIL (NEC) L ONDON, N OVEMBER 4, 2014

What is the National Economic Council (NEC)? Institutionalization of the consultation process between the business community and the government A discussion platform for economic policies and development reforms in Albania It is not an organization or institution but a process

NEC Purpose The National Economic Council ensures:  Institutional cooperation and the public-private partnership;  Dialogue and consultation between the government and the private sector;  Transparency on public decision-making and the representation of the public sector in this process. Law on Establishment and Operation of the National Economic Council (law no. 57/2014, art. 1)

The Secretariat of NEC Headed by the Secretary General  Supports, coordinates and organizes NEC activities  Operates a web portal ( for receiving from business organizations comments, observations, proposals and denunciations on arbitrary practices, analyzes and distributes to the relevant authorities the processed informationwww.kek.al  Monitors and mediates the dialogue between the public authorities and the private sector

Consultation Process Consultation is mandatory  Publication  Consultation  Engagement of interest groups

High representation periodic meetings Exchange of comments, suggestions or proposals via Other forms of meetings, subcommittees, etc. A Three Way Consultation Process:

NEC Interactive Portal  is freely accessible by everyone but only business organizations can upload comments, proposals and denunciations  Drafts of laws and secondary legislation affecting the economy of the country should be published for sixty (60) days in the web portal for review and comments of the business community

Periodic Meetings  Periodic meetings are held every month led by NEC Chairman, the Prime Minister of Albania.  Once in three months, special meetings are conducted with the participation of foreign representatives and academics of economic background.

NEC Participants Permanent participants are:  The Minister responsible for the economy  The Minister responsible for finance  Secretary General  The Governor of the Bank of Albania  Six personalities of national and world economy  Six largest taxpayers of the business community, domestic or foreign (rotated on semestral basis)  Four business organizations (rotated on semestral basis)

Other Participants The representatives of international organizations permanent members of NEC, including but not limited to:  International Monetary Fund - IMF  International Financial Corporation - IFC  World Bank - WB  European Bank for Reconstruction and Development – EBRD  The Director General of Taxation  The Director General of Customs

The Investment Committee  Supported by EBRD  Provides NEC with:  Studies  Reports  Recommendations  Operates as an economic ombudsman

Key policy issues covered 9 monthly meetings so far, where many issues of importance to business were discussed and consulted:  The Agreement of Albania with World Bank and IMF  The payment of arrears to private businesses  EU negotiation process  New VAT law  Structural reforms  Pension reform  Reduction of Informal Economy  Challenges in the Energy Sector  Tourism  The draft budget for the year 2015  2015 Fiscal package

Challenges for the future  Optimise NEC's role  Increase the efficiency of NEC and the quality of the dialogue  Improve NEC's representativeness and credibility  Raise the profile of NEC

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