Republika e Shqipërisë

Government: Parliamentary democracy with unicameral parliament
Head of State: President Afred Moisiu
Head of Government: Prime Minister Sali Berisha
Foreign Minister: Lulzim Basha

Population: 3.087 million
Capital: Tirana
Area: 28 748 km2
Currency: Lek; 1 EUR= 130.07 Lek (Dec. 2006)

GDP in real terms: 8.36 billion US$ (2005)
GDP per capita: 2 575 US$ (2005)
Economic growth: 5.5% (2005)
Unemployment: 14.2% (2005)

Main export markets: Italy, Greece, Germany
Main exports: Textiles, shoes, fruit, early vegetables
Main source of imports: Italy, Greece, Turkey
Main imports: Food, machinery, vehicles
Major economic sectors: Farming, construction industry, clothing, ethereal oils, herbs, early vegetables, fruit

Albania drawing closer to the EU

• 1992: Trade and Co-operation Agreement is concluded between the EU and Albania. Albania becomes eligible for funding under the EU PHARE programme.
• 1996: Regional approach: the Council of the European Union establishes political and economic conditionality for the development of bilateral relations.
• 1999: The EU proposes a new Stabilization and Association Process (SAP) for five countries of South Eastern Europe, including Albania.
• 2000: Extension of duty-free access to the EU market for products from Albania.
• 2000: The Feira European Council states that all the SAP countries are potential candidates for EU membership.
• 2001: Start of the new CARDS programme, an EU programme specifically designed to provide financial assistance to the Stabilization and Association Process countries.
• 2001: The European Commission recommends the beginning of negotiations on a Stabilization and Association Agreement (SAA) with Albania.
• 2003: Negotiations on a Stabilization and Association Agreement begin on 31 January.
• June 2003: The Thessaloniki European Council confirms the Stabilization and Association Process as the EU policy for the Western Balkans. The EU perspective for these countries is confirmed.
• June 2004: Council of the European Union decides on a European Partnership for Albania.
• January 2006: The Council of the European Union decides on a revised European Partnership for Albania.
• February 2006: Stabilization and Association Agreement initialled.
• March 2006: The meeting of the EU's 25 Foreign Ministers with the states of the Western Balkans reconfirms the EU perspective for the SAP countries.
• June 2006: Signing of the SAA.
• December 2006: Entry into force of the Interim Agreement, which anticipates the trade section of the SAA.

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