Constitutional source as a guarantee of the free market
Constitutional source as a guarantee of the free market
According to Article 11 of the Constitution, the free market may be subject to restrictions, but the freedom of economic activity is subject to the same conditions. Financial capital consists of a set of assets, which include movable and immovable property. This capital is also protected and regulated by the law in force, equally, both when this capital belongs to private entities and when this capital belongs to the state. The provision of Article 11 of the Constitution also applies to the ownership of economic prosperity, which can not be subject to restrictions, except by law and only for the substantial public interest. One of the levers used by the state in the economy is taxes. They directly affect the market economy.
Article 155 of the Constitution provides that: “Taxes, duties and national and local financial obligations, relief or exclusion from them of specific categories of payers, as well as the manner of their collection, are determined by law. In these cases, the law cannot be given retroactive effect. “This article is of great importance about the prohibition of state arbitrariness in setting national and domestic financial obligations and establishing the reserve criterion that taxes, fees, and other financial commitments will be public, after being approved by the assembly according to the procedure for the adoption of laws, including the guarantees that there is a legislative process regarding the involvement of interest groups and the publication of rules.
On the other hand, the fact that the Constitution categorically excludes the enactment of laws with retroactive effect about taxes, fees, and other national and local financial obligations means that the law acts on time, and any enterprise can do very well “accounts “her. Also, the Constitution of Albania guarantees every subject of law that the manner of determining financial obligations will be public after being approved by the assembly according to the procedure for the adoption of rules, including the guarantees that there is a legislative process regarding the inclusion of groups of interest and publicity of laws.
On the other hand, the fact that the Constitution categorically excludes the enactment of laws with retroactive effect about taxes and other national and local financial obligations is an additional guarantee that entities subject to fiscal burden will not be insecure in their activity but will always have the opportunity to be informed in advance about the budgetary obligations that weigh on them in the future.
Only the Constitutional Court has the right to make the final interpretation of the Constitution. Therefore, this court’s decisions have particular importance regarding rights, freedoms, and other guarantees established by the body. Business must understand the legal environment in which it operates. Above all, it must recognize the constitutional provisions regarding the state’s organization and various entities’ rights and freedoms.
The legislature must issue laws to establish rules and norms of mandatory behavior in various areas of social, political, military, etc., life. Entities operating in areas regulated by law are obliged to adapt their behavior to what is provided by law. The executive power is to control the implementation of laws and issue by-laws to deconstruct and detail the law’s abstract and hypothetical provisions.
This power is given to the state’s controlling authority, and that has direct links with business. In this case, the executive is the General Directorate of Taxation and must check the taxpayers about the correct profit declaration. If it notices irregularities, it takes punitive measures. Suppose the business has objections regarding the executive bodies’ activity. In that case, it has the right to appeal to the court for the latter to assess objectively, independently, and impartially whether the executive’s action in individual or concrete cases is or not. It is based on law. Punitive measures taken by tax authorities are obliged to carry out a regular legal process to take corrective actions against commercial entities that have not paid their obligations to the state.
Article 42 of the Constitution provides that “freedom, property, and rights recognized by the Constitution and law may not be violated without due process of law. Everyone has the right to a fair and public hearing within a reasonable time by an independent tribunal, in the protection of his constitutional and legal rights and freedoms, impartial determined by law”. In cases when commercial entities penalized for non-payment of taxes have objections regarding this aspect, then by the law, after exhausting the administrative appeal, they have the right to apply to the judicial jurisdiction so that the latter can finally decide on the violations alleged by the executive that, was committed by the commercial entity.
Of course, work is also an integral part of the economic system. The Constitution provides that everyone has the right to earn a living through lawful employment, which he has chosen or accepted. Every individual is free to choose his profession, place of work, and professional qualification system. Employees have the right to social protection at work. Employers, who are usually also entrepreneurs, have their primary goal, increasing their economic profits.
In making a profit, they sometimes violate employees’ rights, who have special tools at their disposal to put pressure on employers to protect the rights of employees. The fundamental rights of employees derive from the Constitution and the International Conventions ratified by the Republic of Albania and domestic legislation, such as the Labor Code, the law on employment protection, etc. Having the employee’s rights is associated, on the one hand, with economic costs for the employer and, on the other hand, with the benefits of a social environment with the right to organize collectively.
Article 50 of the Constitution stipulates that employees can freely join trade unions to protect their labor interests. Article 51 guarantees the right of the employee to strike in cases of employment. Thus, economic enterprise’s freedom is associated with rights and obligations, which must be well known and understood. For this, the Constitution provides initial assistance by defining the basic rules of functioning of the state, the rights, and freedoms of various entities operating in their economic life.
Constitutional provisions are abstract and general. They are detailed by-laws adopted by the assembly, which must be by the conditions.
Law and the market are inextricably linked. The market is the organization of capital and labor to produce products and services, where every aspect of this organization is regulated by law.
Buying, selling, hiring, and even the same business forms are examples of business activities controlled by law.
Understanding the free market economy
In this quarter of a century of the democratic history of Albanian society, the developments in the field of the economy are pretty impressive. It is important to emphasize that the balancing role and behavior of the state through various legal reforms is a matter of philosophy and conception. This role is constantly and continuously and is a product of the state’s people’s professional, individual training and runs the institutions.
Bringing the state in the service of promoting these deformations is another essential thing. Individuals with training from a lower centralized model school before the need to install the market model. From one extremism to another. From a wholly nationalized society to an organization possibly without the role of the state in the economy. Often, in economics, fair choices and decisions are very close to rational reasoning and judgment. Each socio-economic system has its characteristics in how it is implemented in a given society and at a given time. Economics is not a science; it more resembles a technique or way of thinking to solve problems at a given time. In democratic states and some communist states, the economy is organized according to the market economy system. This system is advanced and has influenced many countries of the world to develop through the market economy.
A market economy is defined in market liberalization and has several elements:
1. Everyone has the right to open a business authorized by law.
2. Every enterprise has the right to set the price of the product.
3. The market economy is characterized by real competition except when there is a lack of a particular product.
4. The opportunities to be monopolized in a market economy are smaller.
5. Products can be exported and imported freely except when the state has no diplomatic relations with one or more specific countries.
6. Public enterprises in a market economy are few; they do not exist much in capitalist systems; they can live in social democratic states.
During the whole period of communism in Albania, the economy was centralized, while today, we have a capitalist economy. The capitalist system supports private property and contains liberal forms based on complete market freedom.
The most developed free market is “Entrepreneurial Capitalism.” This organization of capitalism is based on Adam Smith’s principles, who claimed that the less the restrictions on economic freedom are affected, the better it develops. In the countries of the European Union, “social capitalism” plays an influential role. Many of the ruling parties in Europe are center-left parties, and the left invests more in social aspects than in capital aspects. What system of capitalism do we belong to?
We are not oriented because we are in transition, and economic policy is created by addressing the current circumstances.
Socialism supports public property supervised by the state, and I think Albania has converted a large part of “Public Enterprise” into private but with some preconditions.
1. Fight against corruption in that public enterprise;
2. Freedom of investment;
3. Financial freedom;
4. Free competition.