As part of Albania's EU accession process, an independent expert mission was conducted through the European Commission's Technical Assistance and Information Exchange (TAIEX) instrument. The team, led by the former Governor of the Central Bank of the Netherlands, Klaas Knot, is currently in Tirana and is holding meetings with the Governor of the Bank of Albania as well as with the highest state leaders.
The mission aims to assess the independence of the central bank and provide high-level strategic advice to strengthen the implementation of European standards in this area. The background of the mission is directly related to the EU enlargement process and the need for full alignment with the acquis and best practices of the Member States.
The European Commission considers central bank independence to be a necessary precondition for price stability, the credibility of monetary policy and the functioning of financial markets. This approach was recently emphasised by Christine Lagarde, President of the European Central Bank, and Kristalina Georgieva, Managing Director of the International Monetary Fund, in their messages to the recent conference of the Bank of Albania, where central bank independence was underlined as a cornerstone for macroeconomic stability and long-term growth.
An independent central bank minimizes the risk of influences on monetary decision-making, increases institutional transparency and accountability, and helps maintain macroeconomic stability, all essential elements for economies aiming for EU membership.
During the meeting with the Governor, concrete steps to align the legal framework with the acquis, and to strengthen guarantees of institutional and financial independence were discussed. “The Bank of Albania remains fully committed to further strengthening our institutional independence and governance, in line with the EU acquis and best European practices,” said Governor Sejko.
The Commission's recent assessments have underlined the continued importance of strengthening the independence of the Bank of Albania, including the full update of the Law on the Bank of Albania and the harmonisation of aspects of the personal independence of directors with the requirements of the acquis.
The Progress Reports 2023-2024 assessed that full alignment of the law with the acquis remains a priority, especially in this regard. The reports emphasized that the main objective of the BoA is price stability and that the bank should enjoy institutional and financial independence, but noted that the personal independence of the Governor remains only partially aligned with the acquis.
After the meetings in Tirana, the team is expected to prepare a package of recommendations that will be presented to the European Commission and then communicated to the Albanian authorities for further action, in view of preparations for membership.
