The Democratic Party has denounced that manufacturing and exporting businesses in Albania are heading towards bankruptcy due to the devaluation of the euro currency.
“Businesses that have contracts in euros report increased costs and less income, something that has increased the pressure of survival in the market,” stated the deputy head of the Entrepreneurship Department at the Democratic Party, Blerina Gjyriqi.
She emphasized that the mining, energy, and especially the clothing and footwear industries have suffered the strongest declines.
Full statement:
The common European currency has suffered a noticeable depreciation in Albania for several years, but during 2024 the euro reached its minimum.
The euro is currently trading in our foreign exchange market at 98.3 ALL, a drastic drop compared to not long ago.
Businesses that have contracts in euros report increased costs and less revenue, something that has increased the pressure of survival in the market.
Most have chosen to sacrifice profit margins to remain competitive. Individuals have also been affected by this decline: around 51% of those who receive salaries in euros confirm that they have been negatively affected because their expenses are in lek.
Businesses that export goods have also suffered a decline, by over 14.3% compared to a year ago.
The mining, energy and especially the clothing and footwear industry, known as tailoring, have suffered the strongest declines.
Most businesses, both manufacturing and exporting, have gone bankrupt and others are on the verge of bankruptcy.
All this has led to an increase in unemployment: according to INSTAT, we have a 5% loss of jobs, but from our data this number is higher than 10 thousand employees, referring only to the tailoring industries.
The most affected group are businesses that had fewer than 100 employees.
The effect is the same for the tourism sector, which has contracts in euros.
This dire situation affecting these industries puts the Albanian economy in a major bind as it has a negative economic and social impact.
In April 2024, the Council of Ministers approved an aid package for businesses in crisis, but with a limited execution timeframe (only one month) of September-October 2024, limiting access to applications.
Even in this case, like all government work, this is just for show, to silence businesses.
The depreciation of the euro does not at all reflect a strengthening of the local currency, but rather is the result of the market being flooded with uncontrolled black finances, which are destroying any economic balance.
The euro’s decline and lack of reaction are related to the fact that the government is repaying cheaper public debt.
The large amount of uncontrolled money and the state’s inability or unwillingness to control it are disrupting economic balances, destroying the future of Albania.
Business believes that the Bank of Albania and the Government should urgently intervene to stabilize the exchange rate.
The Democratic Party, in support of business and a healthy national economy, calls for immediate measures to be taken, from fiscal relief to interventions that stop the artificial decline of the euro.
Minister Balluku does not need to show off in tailor shops for the next advertisement, but to take immediate measures and respond to the demands of businesses, as they are the promoters of the country’s development.
Together we save Albania!
