Interview of Albanian Free Press with the head of the leading business organization, Konfindustria, Gjergj Buxhuku

Interview of Albanian Free Press with the head of the leading business organization, Konfindustria, Gjergj Buxhuku
Mr. Buxhuku, after the floods, you have demanded an urgent revision of the 2018 budget. What do you base this on?

We based this on the fact that the budget has insufficient funds for the management of natural disasters. These funds are minimal. This has also been the case in previous years. A slight change was made in the 2016 budget, following the floods that took place in 2015. Should the need arise, all state funds must be reallocated as soon as possible in order to come with the floods, because damages are colossal.

In fact, the Prime Minister has suggested obligatory home insurance against floods.

This cannot be a solution. I would even say that this is the wrong solution. This is a story which must be put to an end as soon as possible. It is true that the insurance market in developed countries works out in such cases, but not in cases of natural disasters. Even these countries do not fully cover these damages caused by natural disasters. The insurance market here has been wrongfully perceived in its very essence. It is a market which, first of all, doesn’t have minimum capacity to cover such disasters which cause lots of damages that cost a lot of money. It is also a market where 60-70% of it consists of car insurances. Such move would be more of a lobbying move to gain out of natural disasters, rather than offer a real solution to this problem.

What has happened with indemnities offered by the state in previous years, at least for the business sector, given that you represent it?

In general, compensation schemes from the government have not worked out or they have been very small in value.

According to you, who should find a solution about this situation?

We must bear in mind the fact that the state is fully responsible for the prevention and limitation of the consequences of these natural disasters, because, first of all, according to the information that we receive, all government projects have had a very poor result in practice. The fact that floods are repeated is mainly due to the low efficiency of investments in this sector. Although we’re talking about large investments, they have been inefficient. We must also bear in mind the fact that the state must take drastic measures in relation to constructions without permits. Last but not least, if the state wants to offer a solution to this problem, it must punish those who have abused with public funds. The state must also allocate considerable funds to make sustainable investments as soon as possible. Urgent action is needed through the state budget.


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