YESTERDAY IN THE PEOPLE'S ASSEMBLY Yesterday at 10:00, the Assembly continued its work on the agenda item concerning the formation of the Government and its program. The President of the Republic of Albania, Ramiz Alia, was also present. At the outset, the Chairman of the Presidium of the People's Assembly, Kastriot Islami, announced that a very large number of letters had arrived expressing the view that, in general, the proceedings of the first pluralist Assembly were commendable and that a spirit of understanding had prevailed. At the same time, great concern was expressed that the discussions should be more constructive and that the pace of the Assembly's work should be accelerated. He then gave the floor to the Chairman of the Council of Ministers, Fatos Nano, who presented the Government's program platform and its composition. Islami, told the deputies to submit in writing to the secretariat any questions they had for the Prime Minister. After the break, the Chairman of the Presidium of the People's Assembly gave the floor to Prime Minister Fatos Nano to answer the questions. Meanwhile, deputy Sali Berisha asked to be allowed to make a statement addressed to Parliament, but the Chairman of the Presidium told him to wait until after the Prime Minister had answered. Following deputy Sali Berisha's insistence, the Chairman of the Presidium of the People's Assembly suspended the proceedings and, after consulting the chairmen of the parliamentary groups, announced that the People's Assembly would resume its work today at 10:00. (Photo: ATSH)

Honorable deputies, Today's session marks a new and important step in the proceedings of this first pluralist Assembly. The need to resume the activities of the executive power, from the center to the local level, on new foundations under the new conditions that involve implementing and deepening economic reform in the country, as well as expanding The country's financial situation is very strained. We inherited major financial problems from last year, a deficit of situation is being further aggravated by mass workers' strikes and a deficit of political cooperation with all countries that respect mutual well-being and interests, etc. Having assessed the programs of all political parties and consulted with them, the Government presents as the most realistic and credible alternative for overcoming this situation the regulatory and supervisory role of the state. the economy and the legal and practical guarantee of the entrepreneurial initiative of in the legal sphere; as the first phase, small-scale privatization The extremely grave economic situation we are going through makes it an imperative of the day that, from this Assembly, we address a clear patriotic appeal to all the workers of the country, to all political, trade-union and social forces, urging them to commit themselves to cooperate genuinely to lead the country out of the crisis and open new paths of development. The need to cooperate, inside and outside Parliament, to overcome this grave situation, stabilize democratic developments in the country and intensify relations with the world has become an imperative of the day. Charged by the President of the Republic with forming the new Government, before presenting its composition and program to this Assembly, allow me to report to you on the work carried out so far by the Council of Ministers, organized as a working Government. The main problems on which we have focused our great responsibilities during this period have been halting the further deterioration of the economic situation, preserving the stability of the country's political and social life, and intensifying relations with states and international organizations. The Government has worked with particular concern to meet the most essential needs of the people and the economy with domestic and imported products. With concern, the Council of Ministers undertook to maintain law and order, making every effort to avert social conflicts and create the necessary conditions for the most normal possible development of democratization processes and the election campaign for deputies to the People's Assembly. Nevertheless, excesses, unlawful actions and grave events have not been absent during this period, despite the major commitments, among which the most tragic are those involving the loss of human life. Regarding the explosion and earthquake in Lezhë, the Government specifically undertook an analysis of the events and asked the judicial authorities to determine the legal responsibility of the persons involved. The Council of Ministers has not limited its activities solely to the problems of the day. It adopted a series of measures concerning the implementation and deepening of economic reform in the country, as well as the expansion of economic and political ties with various states and international organizations. Historic steps undoubtedly include the re-establishment of relations with the United States of America on 15 March this year, entering a new phase of close cooperation with neighboring and friendly states such as Italy and Turkey, and initiatives to establish new contacts with other countries in the region and the world, particularly in Europe and the Middle East. Alongside these developments, official ties have been established and are being developed with the International Monetary Fund and the World Bank, and work is under way to conclude the relevant agreements for our country's admission to these organizations and to secure the foreign-currency funds needed to restructure the economy. Work has also been undertaken to reach agreements with other states and companies within the framework of technical, economic and financial cooperation. Honorable deputies! Our economy is in a complex crisis, which is the consequence of problems accumulated over many years. This crisis is reflected in the marked decline in the growth rates of social product, national income, investment and exports and imports, as well as in a significant fall in labor productivity. In the January–March period, compared with the first quarter of last year, production was lower by 22 million m³ of natural and associated gas, 65,000 tons of chromium ore in total, 53,000 tons of chemical powder, 45,000 tons of cement, 7.5 million linear meters of fabric and tablecloths, 386,000 pairs of shoes in total, etc. In agriculture, deliveries were lower by 18,000 tons of milk, 600 tons of meat, 14 million eggs and 10,000 tons of vegetables. The volume of cash retail trade was lower by around 140 million lekë. In 1990, foreign-currency earnings fell short of forecasts by around 316 million dollars. This deepened the negative balance-of-payments position, which, from 96 million dollars at the beginning of the year, reached 254 million dollars. The shortfall in exports and the increase in imports have caused the balance-of-payments deficit to reach measures relating to caused the balance-of-payments deficit to stand at 73 million lekë. The stock of goods in the state reserve is now at its most critical point, or six times smaller than it should be under normal conditions. This situation is being further aggravated by mass workers' strikes, work stoppages for other reasons, and ultimatum-like demands for wage increases and immediate improvements in working conditions from entire enterprises and branches of the economy, without taking into account the conditions, possibilities and consequences they bring for the economy. Serious consequences for current and future agricultural production and market supplies have also been caused by work stoppages in some agricultural cooperatives, which have demanded a review of their economic and financial relations with economic enterprises and the state budget, established over many years, while insisting without any legal basis that any possible improvements be applied retroactively. Also contributing have been indiscriminate distributions and the theft of livestock from communal herds by individuals and groups of cooperative members and workers at some agricultural enterprises, the indiscriminate slaughtering and, in some cases, illegal sale of the animals abroad by individuals. These phenomena are the consequence of confusion and uncertainty created by the many alternatives put forward in various electoral platforms, as well as by the actions of unscrupulous elements seeking to profit at others' expense during this transitional period of implementing economic reform and strengthening the rule of law. It is a fact that the rapid process of broad democratic transformations, which brought about political pluralism, the definition of a new platform for economic reforms in Albania, and the expansion of human freedoms and rights and European standards, has unfolded amid these major economic and social difficulties. The new concepts and programs presented by the country's political and social forces, despite their variety, essentially converge on several fundamental points: political pluralism, a market economy, the rule of law, fundamental human rights and freedoms, integration into European forums, and the model of an economy open to joint ventures with foreign partners. First, the decline of the economy must be halted and it must be put on a path to stabilization. This will be achieved through measures such as encouraging workers' material interests by means of wage increases and participation in profits, based on increased production; securing the necessary supply of consumer goods and raw materials; and making intensive use of the country's natural and human resources. To this end, the process of attracting foreign capital and investment into joint activities and enterprises will be accelerated, and economic, manufacturing, financial and trade cooperation with other countries will be expanded, in particular by obtaining aid and loans from states and international financial institutions, from other institutions and companies, as well as from our compatriots and various associations. This is supported by the new climate of mutual trust created by the fundamental legislative and economic reforms in Albania, by our commitment to preserving the stability and irreversibility of these democratic processes, and by other measures to be introduced for foreign capital and approved by this pluralist Assembly. Second, the gradual and complete transition to a market economy must be carried out, in which all forms of ownership coexist and compete, under the state's regulatory and supervisory role. The essence of the reform measures is the privatization of the economy and the legal and practical guarantee of entrepreneurial initiative for all entities. Some steps have been taken in this field in the legal sphere. First, small-scale privatization is being extended and will expand throughout the retail trade, municipal and artisan services, road transport, including the sale of residential apartments, etc. This will begin on a large scale in June this year through auctions and other forms that prevent corruption and give priority to capable workers and those who pay immediately, creating equal conditions for all entrepreneurs wishing to buy with their own funds, with credit or on lease. The state will protect the private sector and help it consolidate as quickly as possible, including by supporting it through contracts with foreign private investors. The second phase will include the privatization of medium-sized and large enterprises in the production of consumer goods, construction, services, etc., by dividing them into manageable and competitive units. It is essential that state ownership be retained in branches that are crucial to the development of the economy. However, state enterprises will be reorganized, administered and structured in a new way. They will be independent of the state in making decisions about the direction of production and sales, the setting of prices and wages, etc., while responding directly to contractual and fiscal requirements. This arrangement will begin this year, with the aim of radically improving their administration, enabling them to operate under competitive economic conditions, and adapting them effectively to various forms of cooperation and integration with foreign companies. The state will continue to limit the independence of those enterprises that still hold a monopoly position in the market, such as water utilities and electricity production, hydroelectric and thermal power plants, oil, etc., in order to control and prevent any speculative abuse at the expense of domestic consumers. Alongside these, there will be (Continued on page 2)

The extremely grave economic situation we are going through makes it an imperative of the day that, from this Assembly, we address a clear patriotic appeal to all the workers of the country, to all political, trade-union and social forces, urging them to commit themselves to cooperate genuinely to lead the country out of the crisis and open new paths of development.