Regulation is generally not too favourable to private enterprise in Albania. Starting a business is relatively easy regarding procedures and no paid-in minimum capital, but it is tied to high administrative fees. However, the government waived the taxes on new business ventures during their first year of operation, which has been a great boost to small and micro enterprises. Issuance of construction permits, which had almost stopped due to moratorium enacted in 2013 in order to combat illegal construction, has finally resumed. But the process is complicated by numerous procedures and long time limits. On the other hand, getting electricity is very expensive. Corruption remains widespread among public officials, undermining impartial

implementation of regulations. It is especially visible in public procurement. Legislation is often difficult to interpret – e.g. outright contradictory - which serves for manipulation and extortion, while regulatory changes are made without proper consultation with the business community. Tax regulations are overly complicated, with high number of annual payments and burdensome procedures. Those are top problems for business development, alongside tax rates. The newly introduced online system for filing and paying taxes is expected to improve the situation at least partially. Labour market regulations are a mix of flexible and inflexible traits. There are no limits to the maximum length of fixed-term contracts, but those are prohibited for permanent tasks. Working hours are not very flexible, with a low number of weekly working days. Notice periods are long and severance pay for redundancy workers is high. Both rise with the longer number of years in tenure, thus protecting more seasoned workers. The minimum wage is relatively high as compared to the average one, but it has stagnated since 2013. Collective bargaining is not imposing high costs to businesses since it is mostly concentrated in the public sector, and is prevalent in just some of the industries.