EUROPEAN UNION – ALBANIA STABILISATION AND ASSOCIATION COMMITTEE 11 March 2015 TABLE OF CONTENTS 3. POLITICAL CRITERIA ..................................................................................................................................... 4 PROGRESS ON MEETING THE POLITICAL CRITERIA, WITH FOCUS ON THE COMMISSION PROGRESS REPORT PRIORITIES , IN PARTICULAR : .......................................................................................................................................................... 4 Political dialogue ....................................................................................................................................... 4 Functioning of parliament ......................................................................................................................... 4 Implementation of the five key priorities: ............................................................................................... 14 KP 1: Public administration reform, including follow-up to the 4th PAR Special Group and the workshop on independent institutions ........................................................................................................................................... 15 KP 2: Reform of the justice system ............................................................................................................................ 25 KP 3: Fight against corruption ................................................................................................................................... 37 KP 4: Fight against organised crime ............................................................................................................................. 3 KP 5: Human rights, including property rights ........................................................................................................... 30 Regional issues and international obligations ......................................................................................... 40 4. ECONOMIC CRITERIA ................................................................................................................................. 42 FOLLOW UP OF THE OCTOBER 2014 SUBCOMMITTEE MEETING ............................................................................. 42 ECONOMIC OUTLOOK IN ALBANIA .................................................................................................................... 68 NATIONAL ECONOMIC REFORM PROGRAMME ................................................................................................... 71 5. FINANCIAL ASSISTANCE ............................................................................................................................. 74 INSTRUMENT FOR PRE -ACCESSION ASSISTANCE : STATE OF PLAY ............................................................................. 74 PROCESS THE PROGRAMMING OF THE IPA ANNUAL ACTION PROGRAMMES 2015 AND 2016 ..................................... 75 6. IMPLEMENTATION OF THE STABILISATION AND ASSOCIATION AGREEMENT ............................................. 79 6.1 JUSTICE, FREEDOM AND SECURITY ............................................................................................................. 79 Follow-up of visa liberalisation ................................................................................................................ 79 Follow-up of the 2014 Progress Report and the conclusions of the May 2014 Subcommittee meeting, (Except issues already discussed under point3), with particular focus on the implementation of the law against discrimination, progress in the areas of gender and children's rights, protection of minorities including Roma. 81 6.2 TRADE, INDUSTRY, CUSTOMS AND TAXATION............................................................................................ 85 Follow-up of the 2014 Progress Report and the conclusions of the October 2014 Subcommittee meeting with focus on: ............................................................................................................................................................... 85 VAT refund ..................................................................................................................................................... 104 Customs valuation ......................................................................................................................................... 105 Inter-institutional coordination on trade policy issues .................................................................................. 107 6.3 AGRICULTURE AND FISHERIES (INCLUDING FOOD SAFETY) ...................................................................... 109 Follow-up of the 2014 Progress Report and the conclusions of the February 2014 and March 2015 Subcommittee meetings with focus on: .............................................................................................................. 109 Progress in the implementation of the National Inter-Sectoral Strategy for Agriculture and Rural Development, 2014 – 2020 ..................................................................................................................................... 109 National support measures to the agricultural sector ................................................................................... 110 Preparations for IPARD .................................................................................................................................. 114 6.4 INTERNAL MARKET AND COMPETITION ................................................................................................... 119 Follow-up of the 2014 Progress Report and April 2014 and March 2015 Subcommittee meetings with focus on ............................................................................................................................................................................ 119 Protection of intellectual and industrial property rights ............................................................................... 156 Update on liberalisation of purchase of real estate by EU citizens ............................................................... 174 Update on the establishment of the Market Surveillance Inspectorate ........................................................ 178 2 6.5 INNOVATION, INFORMATION SOCIETY AND SOCIAL POLICY .................................................................... 179 Follow-up of the 2014 Progress Report and the conclusions of the November 2014 Subcommittee meeting, with focus on the digital switchover, as well as the functioning, capacity and independence of the regulator and of the public broadcaster; ....................................................................................................................................... 179 Up-date on decriminalisation of defamation and libel ....................................................................................... 224 6.6 TRANSPORT, ENVIRONMENT, ENERGY AND REGIONAL DEVELOPMENT .................................................. 225 Follow-up of the 2014 Progress Report and the conclusions of the May 2014 Subcommittee meeting with focus on: ....................................................................................................................................................................... 225 connectivity agenda: state of progress in the preparation of the core network and extended corridors; update on Albania's participation in SEETO and latest development regarding regional connectivity policies; ..... 245 alignment with EU acquis in the area of energy (including adoption of power sector law, and gas sector law), environment (update on the environmental cross-cutting strategy) and climate change ...................................... 246 state of play as regards the implementation of the EU assistance in the water sector ................................. 256 3 3. POLITICAL CRITERIA Progress on meeting the political criteria, with focus on the Commission Progress Report priorities, in particular: Political dialogue Strengthening the constructive political dialogue between the parliamentary majority and the opposition has been Parliament’s priority for 2014. The European Parliament was strongly committed to facilitate the political dialogue between the parliamentary majority and the opposition, following the findings of the 2014 Progress Report. With the beginning of the new parliamentary Session in January 2015, the opposition has returned in Parliament and is active part of parliamentary life. Parliament has also established all inquiry parliamentary committees requested by the opposition (please refer below). Following the national round tables for the judiciary reform, held on 6 and 31 October 2014, initiated by the President of the Republic and the Ministry of Justice, Parliament of Albania, on 27 November 2014 has adopted the decision no. 96/2014 “On the establishment of the Ad Hoc Parliamentary Committee on the Reform to the Justice System”, (Ad Hoc Committee). The Ad Hoc Committee is composed of 11 members, 6 out of which are representatives of the parliamentary majority (5 PS, 1 LSI) and 5 are representatives of the parliamentary opposition (3 PD, 1 RP and 1 PDIU). The Ad Hoc Committee will conduct its activity in a six months period (please refer to priority 2 for further information). Functioning of parliament The legislative function During this period Parliament has discussed