EN   EN EN 
EN   EN  EUROPEAN COMMISSION 
Brussels, 9.11.2010 
SEC(2010) 1335 final 
  
COMMISSION STAFF WORKING DOCUMENT 
ANALYTICAL REPORT  
 
  
accompanying the 
 
COMMUNICATION FROM THE CO MMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 
 
Commission Opinion on Albania 's applicatio n for membership of the European Union 
  
{COM(2010) 680 final} 
EN 2  EN TABLE OF CONTENTS 
A. Introduction................................................................................................................ .. 4 
a) Application for membership ........................................................................................ 4 b) Relations between the EU and Albania........................................................................ 5 c) Contents of the Analytical Report................................................................................ 8 B. Criteria for membership ............................................................................................... 9 1. Political criteria .......................................................................................................... .. 9 
1.1. Democracy and the rule of law .................................................................................... 9 1.1.1. The parliament .......................................................................................................... . 10 
1.1.2. The executive ........................................................................................................... .. 12 
1.1.3. Public Administration ................................................................................................ 15 1.1.4 . Judicial system (See also Chapter 23 — Judiciary and fundamental rights) ............. 17 
1.1.5. Anti-corruption policy (See also Chapter 23 — Judiciary and fundamental rights).. 21 
1.1.6. Civilian oversight of security forces .......................................................................... 23 1.2. Human rights and the protection of minorities (See also Chapter 23 – Judiciary and 
fundamental rights) .................................................................................................... 24 
1.3. Regional issues and international obligations............................................................ 33 1.4. General Evaluation..................................................................................................... 35 2. Economic Criteria ...................................................................................................... 37 2.1. Economic developments ............................................................................................ 38 2.2. Assessment in terms of the Copenhagen Criteria ...................................................... 39 2.2.1. The existence of a functioning market economy ....................................................... 39 2.2.2. Capacity to cope with competitive pressure  and market forces within the Union..... 45 
2.3. General evaluation ..................................................................................................... 49 3. Ability to assume the obligations of membership...................................................... 49 3.1. Chapter 1: Free movement of goods .......................................................................... 50 3.2. Chapter 2: Freedom of movement for workers.......................................................... 53 3.3. Chapter 3: Right of establishment and freedom to provide services ......................... 55 3.4. Chapter 4: Free movement of capital......................................................................... 56 3.5. Chapter 5: Public procurement................................................................................... 58 3.6. Chapter 6: Company law............................................................................................ 60 
EN 3  EN 3.7. Chapter 7: Intellect ual property law........................................................................... 61 
3.8. Chapter 8: Competition.............................................................................................. 63 3.9. Chapter 9: Financial Services..................................................................................... 64 3.10. Chapter 10: Information society and media............................................................... 66 3.11. Chapter 11: Agriculture and rural development......................................................... 68 3.12. Chapter 12: Food safety, veteri nary and phytosanitary policy .................................. 71 
3.13. Chapter 13: Fisheries.................................................................................................. 73  
3.14. Chapter 14: Transport policy ..................................................................................... 75 3.15. Chapter 15: Energy .................................................................................................... 77 3.16. Chapter 16: Taxation.................................................................................................. 79 3.17. Chapter 17: Economic and Monetary Policy ............................................................. 81 3.18. Chapter 18: Statistics.................................................................................................. 8 2 
3.19. Chapter 19: Social Policy and employment............................................................... 83 3.20. Chapter 20: Enterprise and industrial policy.............................................................. 87 3.21. Chapter 21: Trans European Networks...................................................................... 88 3.22. Chapter 22: Regional policy and coordi nation of structural instruments .................. 90 
3.23. Chapter 23: Judiciary an d fundamental rights ........................................................... 93 
3.24. Chapter 24: Justice, freedom and security ................................................................. 98 3.25. Chapter 25: Science and research ............................................................................ 103 3.26. Chapter 26: Education and Culture.......................................................................... 104 3.27. Chapter 27: Environment ......................................................................................... 106 3.28. Chapter 28: Consumer and health protection........................................................... 110 3.29. Chapter 29: Customs Union..................................................................................... 112 3.30. Chapter 30: External relations.................................................................................. 114 3.31. Chapter 31: Foreign, Secur ity and Defence Policy.................................................. 116 
3.32. Chapter 32: Financial Control.................................................................................. 117 
3.33. Chapter 33: Financial an d budgetary provisions...................................................... 119 
3.34. General Evaluation................................................................................................... 120 
Statistical Annex .............................................................................................................. ...... 122 
EN 4  EN A. I NTRODUCTION  
a) Application for membership 
Albania presented its application for member ship of the European Union on 28 April 2009. 
On 16 November 2009, the Council of the Eur opean Union requested the Commission to 
submit its opinion on this applica tion, in line with the procedure laid down in Article 49 of the 
Treaty on European Union, which states: ‘ Any European State which respects the values 
referred to in Article 2 and is committed to promoting them  may apply to become a member of 
the Union. The European Parliament and national  parliaments shall be notified of this 
application. The applicant state shall address its applic ation to the Council, which shall act 
unanimously after consulting the Commission and after receiving the consent of the European Parliament, which shall act by a majority of  its component members. The conditions of 
eligibility agreed upon by the European Council shall be taken into account. ’  
Article 2 states that ‘ the Union is founded on the values of respect for human dignity, 
freedom, democracy, equality, the rule of law and respect for human rights, including the 
rights of persons belonging to minorities. These values are common to the Member States in a 
society in which pluralism, non-discrimination,  tolerance, justice, solidarity and equality 
between women and men prevail. ’ 
This is the legal framework within which the Commission submits its Opinion
1 and the 
present analytical report.  
The Feira European Council in June 2000 had ac knowledged that Western Balkan countries 
participating in the Stabilisation and Associatio n Process were 'potential candidates' for EU 
membership. The European perspective of these countries was further confirmed by the Thessaloniki European Council in June 2003 wh ich endorsed the "Thessaloniki Agenda for 
the Western Balkans”. This agenda remains th e cornerstone of the EU policy towards the 
region.  
The European Council of December 2006 renewed the EU's commitment " that the future of 
the Western Balkans lies in the European Union"  and reiterated that "each country's progress 
towards the European Union depends on its indi vidual efforts to comp ly with the Copenhagen 
criteria and the conditionality of the Stabili sation and Association Process. A country's 
satisfactory track-record in  implementing its obligations under a Stabilisation and 
Association Agreement (SAA), including trade re lated provisions, is an essential element for 
the EU to consider any membership application". At the Sarajevo EU-Western Balkans 
ministerial meeting on 2 June 2010, the EU re iterated its unequivocal commitment to the 
European perspective of the Western Balkans and that the future of thes e countries lies in the 
European Union.  
In line with the Treaty requirements, the current  assessment is made in terms of the conditions 
of eligibility laid down by the European Council. In Copenhagen in June 1993, the European Council concluded that:  
"Accession will take place as soon as a coun try is able to assume the obligations of 
membership by satisfying the economi c and political conditions required. 
                                                
 
1 COM(2010) 680 of 09.11.2010 
EN 5  EN Membership requires: 
that the candidate country has achieved stability of institut ions guaranteeing democracy, the 
rule of law, human rights and respec t for and protection of minorities; 
the existence of a functioning market economy , as well as the capacity to cope with 
competitive pressure and market forces within the Union; the ability to take on the obligations of memb ership including adherence to the aims of 
political, economic and monetary union". 
The Union’s capacity to absorb new members, while maintaining the momentum of European 
integration, is also an important consideration in  the general interest of both the Union and the 
candidate countries. 
In December 1995, the Madrid European Council referred to the need "to create the 
conditions for the gradual, harmonious integrati on of [the applicant] c ountries, particularly 
through the development of the market economy , the adjustment of their administrative 
structures and the creation of a stab le economic and monetary environment." 
The Stabilisation and Association Process (SAP ) conditionalities were defined by the Council 
on 31 May 1999 and included co-operation with th e International Crimin al Tribunal for the 
Former Yugoslavia (ICTY) and regional co-operation. These conditions are a fundamental element of the SAP and are integrated into the Stabilisation and Association Agreement 
(SAA) with Albania, which en tered into force in April 2009. 
In December 2006, the European Council agreed that 'the enlargement strategy based on 
consolidation, conditiona lity and communication, combined  with the EU's capacity to 
integrate new members, forms the basis for a renewed consensus on enlargement'.  
In the present Opinion, the Commission analyses  Albania's application on the basis of the 
country’s capacity to meet the criteria se t by the Copenhagen European Council of 1993 and 
the conditionality of the Stabil isation and Association proce ss. Albania's track-record in 
implementing its obligations under the Stab ilisation and Association Agreement (SAA), 
including trade related provi sions, is also examined. 
In line with the renewed consensus on enlargement,  this analytical report also provides initial 
impact estimates with regard to key policy areas and sectors (freed om of movement of 
workers, agriculture and rura l development, regional policy  and financial and budgetary 
provisions). The Commission provi des more detailed impact assessments for these key policy 
areas at later stages of the pr e-accession process. In addition, an accession treaty for Albania 
would involve a technical adaptation of the EU institutions in the light of the Treaty on the 
European Union.  
b) Relations between the EU and Albania 
Following the first multi-party elections, the European Community established relations with 
the country in June 1991. In 1992, a Trade an d Cooperation Agreement between the EU and 
Albania entered into force. The country became eligible for funding under the EU financial assistance programme in December 1991. Economic cooperation was enhanced in 1999, when Albania started to benefit from  Autonomous Trade Preferences from the EU. As from 2000, 
Albanian products benefited from du ty-free access to the EU market.  
EN 6  EN A Stabilisation and Association Agreement (SAA)  between the EU and Albania2 was 
signed in June 2006 and entered into force in  April 2009, superseding the Interim Agreement 
on trade and trade-related aspects, which en tered into force in December 2006. Political 
dialogue meetings at ministerial level between the EU and Albania have been held since 2001. 
The entry into force of the Stabilisation a nd Association Agreement marked a qualitatively 
new stage in bilateral relations, entailing sign ificant new obligations and engagement for the 
country in the areas of justice, freedom and s ecurity, free movement of workers, right of 
establishment and free movement of capital and se rvices as well as on transport, audiovisual 
field and telecommunications. Furthermore, th e Stabilisation and Association Agreement 
provides for close cooperation between the EU a nd Albania in a number of EU policy areas. 
In most areas cooperation focuses main ly on priorities related to the EU  acquis  in the relevant 
field, with Albania committing to gradually introduce EU  acquis  in its legislation and to 
cooperate with the EU on joint policy objectives.  
Albania has, overall, smoothly implemented its obligations under th e Stabilisation and 
Association Agreement since the launch of the Interim Agreement. Albania has contributed to 
the sound functioning of the various joint inst itutions. The Joint Committee established under 
the Interim Agreement met in 2006, 2007 and 2008, and its related Working Parties met in 2007, 2008 and 2009. Meetings of the Stabilisa tion and Association Council took place in 
May 2009 and May 2010. The first meeting of the Stabilisation and Association Committee 
was held in March 2010. Subcommittee meetings were held in 2009 and 2010. 
Annual inter-parliamentary meetings between repr esentatives of the European Parliament and 
the Parliament of Albania have been held since 1993. The European Parliament adopted a 
resolution on Albania in July 2010.
3 
Albania participates in th e multilateral economic dialogue between the Commission, EU 
Member States and potential candidate countries in the context of the pre-accession fiscal 
surveillance. Since 2006, it prepares an annual Economic and Fiscal Programme (EFP), which 
aims at preparing the potential  candidate countries for participation in the multilateral 
surveillance and economic policy co-ordination pr ocedures currently in place in the EU as 
part of the Economic and Monetary Union. 
The first European Partnership  with Albania was adopted by the Council in 2004. In 
February 2008 the Council adopted a new European partnership with Albania4.  
In the framework of the visa liberalisation di alogue, Albania has made  important progress in 
the different areas of the roadmap. The Commi ssion therefore presente d a proposal on lifting 
the visa obligation for the citizens of Al bania on 27 May 2010, which was subject to the 
fulfilment of outstanding criteria. The proposal  was adopted by the Euro pean Parliament on 7 
October and by the Council on 8 November 2010. An agreement on readmission between the European Union and Albania is in force since 2006. 
Albania became a full member of the Energy Co mmunity of South East Europe following the 
entry into force of the Energy Community Trea ty on 1 July 2006. The Treaty aims at creating 
a regionally integrated energy market for electricity and natural gas, as part of the wider EU 
                                                
 
2 OJ L 107, 28.4.2009, p.166. 
3 The rapporteur for Albania is Mr Nikolaos Chountis.  
4 OJ L 080, 19.03.2008 p. 1. 
EN 7  EN market. Albania signed the Eu ropean Common Aviation Area (ECAA) agreement in June 
2006. 
The Albanian National Strategy fo r Development and Integration  (2007-2013) represents the 
key strategic policy document of the Albanian  Government outlining its long-term national 
development and EU integration objectives. The Strategy comprises a synthesis of the 
medium and long-term sector and inter-sector stra tegies. The majority of the sector strategies 
include action plans, laying out specific deadlines for the accomplishment of concrete activities in each sector within the period 2007- 2013.  
The European Union is by far the most important trading partner  of Albania. In 2009, the 
EU accounted for 80% of the total Albanian foreign trade volume. 
Albania's exports to the EU am ounted to about 86% of the c ountry's total exports in 2009, 
being of a value of €595 million. Albania's main exports are metals and minerals, textiles and 
footwear, processed agricultu ral products and beverages,  and building materials. 
In 2009, 73.1% of Albania's total imports cam e from the EU, being of a value of €2,166 
million. EU exports to Albania include goods under inward processing regime such as textiles 
and footwear, metal products, furniture and el ectronic goods, which ar e nearly entirely re-
exported to EU Member States. Other import ed goods of significance from the EU are 
machinery and equipment, electricity, pharmaceu ticals as well as tobacco and cigarettes.  
The trade deficit of Albania with th e EU amounted to €1,571 million in 2009.  
Albania joined the WTO in 2000 and ha s been a CEFTA member since 2007.  
Albania benefits from  EU financial assistance  since 1991. Overall, between 1999 and 2010 
the EU committed over €565.7 million to Albani a. From 1999 to 2006, Albania benefited 
from EU CARDS assistance worth €259.6 million. Since 2007, CARDS has been replaced by 
the Instrument of Pre-Accession (IPA) progr amme, under which Al bania has received 
assistance worth €306.1 million from 2007 to 2010.  
The CARDS programmes in Albania supported democratic stabilisation, good governance 
and institution building, administrative capacity  and justice and home affairs, economic and 
social development, environment, and th e participation of Albania in Community 
Programmes. 
In 2007-2010, the IPA programmes focus on key polit ical criteria areas such as judicial 
reform, police and penitentiary infrastructures,  civil service and public  administration reform, 
parliament, fundamental rights, as well as civi l society. In the area of the economic criteria 
and the EU membership criteria, IPA assist ance concentrates on small and medium size 
enterprises, education, taxati on, statistics, intellectual property rights, environmental 
infrastructure, transport (local/r ural roads), employment and so cial inclusion, and food safety. 
Albania participates in three cross border cooperation programmes at "internal borders" 
within the Western Balkans (Montenegro, th e former Yugoslav Republic of Macedonia, 
Kosovo
5; in one bilateral cross bor der cooperation programme w ith an EU Member State 
(Greece); and in several multilateral programmes (including EU Member States), e.g. in the 
                                                 
5 under UNSCR 1244/1999 
EN 8  EN ERDF European Trans-National Programmes Sout h East European Space and Mediterranean 
Space, as well as in the Adriatic regional programme. 
IPA assistance is centrally mana ged by the EU Delegation. Albani a is preparing accreditation 
for management of IPA funds. IPA assistance  builds on a number of strategic documents, 
such as the European Partnership and the SAA priorities; these are re flected in Multi-annual 
Indicative Planning Documents and the Mult i-annual Indicative Financial Frameworks. 
A Framework Agreement between the European Community and Albania on participation in 
EU Programmes was ratified in May 2005. Albania particip ates actively in three EU 
Programmes: the 7th Framework Programme (FP7 ) for research, technological development 
and demonstration activities (2007-2013), the Entrepreneurship and Innovation specific 
Programme (EIP) of the Competitiveness and Innovation Framework Programme (2007-2013) and the Europe for Citizens Programme. IPA funds are used to meet part of the costs of participation in all three programmes.  
c) Contents of the Analytical Report 
The analytical report takes account of the conclusions of the European Council in 
Copenhagen in 1993 and subsequent Europ ean Council conclusions. The report:  
Describes the relations betw een Albania and the Union; 
Analyses the situation in respect of the pol itical conditions established by the European 
Council (democracy, rule of law, human  rights, protection of minorities);  
Assesses the country’s situation and prospe cts in respect of the economic conditions 
established by the European Council (functioning market econom y, capacity to cope with 
competitive pressure); Addresses the question of the cap acity of the country to adopt the obligations of membership, 
i.e. the total body of EU legislation as expres sed in the Treaty, the secondary legislation, as 
well as the policies of the Union ( acquis of the European Union); 
In line with the December 2006 European C ouncil conclusions, provides initial impact 
estimates in the fields of freedom of movement  for workers (chapter 2), agriculture and rural 
development (chapter 11), regional policy and c oordination of structural  instruments (chapter 
22), and financial and budgetary provisions (chapt er 33). These have been identified as the 
main policy areas likely to require particular  attention in case of Albanian accession.  
In assessing Albania's situation in respect of the ec onomic criteria and its capacity to assume 
the obligations of the acquis , the Commission has also estimated the progress which could 
reasonably be expected in the years ahead, be fore eventual accession, taking account of the 
fact that the acquis itself will continue to develop.  
The Commission has drawn on a number of information sources: answers given by the 
Albanian authorities to  a detailed questionnaire and addi tional follow-up questions, expert 
missions, consultations with the EU Delegation in Albania, reporting by the Member States’ 
Embassies in Tirana, assessments by internat ional organisations (i ncluding the Council of 
Europe, OECD, OSCE, IMF, World Bank), as well as local and international non-
governmental organisations. 
This Opinion has been prepared following a methodology similar to that  used in previous 
Opinions with some adaptations reflecti ng the elements including the 2006 'renewed 
consensus on enlargement'. The Commission organised a number of expert missions in 
Albania concentrated mainly in  the field covered by the politi cal criteria. This methodology 
EN 9  EN allowed for a solid assessment of administrative capacities of Albanian institutions, of the 
way legislation is implemented and helped to  better identify rema ining challenges and 
priorities for future action. The Commission has analysed both the present situation and the 
medium-term prospects. For the purpose of this  Opinion and without prejudging any future 
date of accession, the medium-term perspective ha s been defined as a period of five years. 
B. C RITERIA FOR MEMBERSHIP  
1. POLITICAL CRITERIA  
The European Council in Copenhagen in 1993 set a number of political criteria for accession 
to be met by applicant countries. A country must have achieved ‘ stability of institutions 
guaranteeing democracy, the rule of law, human rights and respect for and protection of 
minorities ’. In the case of the Western Balkans the conditions defined by the Stabilisation and 
Association Process are also a fundamental el ement of EU policy, which will be assessed in 
this report. These include regional coopera tion, good neighbourly relations and compliance 
with international obligations. 
The political criteria established in Copenhagen are derived from the fundamental values on 
which the EU is founded, as set out in Artic le 2 of the Treaty on European Union. These 
principles are emphasised in the Charter of  Fundamental Rights of the European Union. 
Article 6(1) of the Treaty states that: ‘ The Union recognises th e rights, freedoms and 
principles set out in the Charter of Fundamen tal Rights of the European Union of 7 December 
2000, as adapted at Strasbourg, on 12 December 2007, which shall have the same legal value 
as the Treaties’ .  
The assessment set out below examines the main ways in which public authorities are 
organised and operate, and the situ ation with regard to the protect ion of fundamental rights. It 
is not confined to a formal de scription but seeks to ascertain the way in which democracy and 
the rule of law actually function in practice.  
1.1. Democracy and the rule of law 
Parliamentary democracy was established in  Albania following the March 1991 elections. 
These elections were preceded  by electoral law changes in December 1990 and January-
February 1991 which provided for political pluralism. 
In April 1991, Albania’s new multiparty legisl ature passed the Law on major constitutional 
provisions. This was in effect an interim c onstitution and laid the foundation for the modern 
democratic state. 
The current  Constitution  was adopted in November 1998 by referendum. The constitution 
provides the basis for a parliamentary republic, a unitary and indivisible state based on free 
elections. It recognises fundament al freedoms and human rights, not least political  pluralism, 
freedom of expression and religion, and respect for minorities, as well as prohibiting the death 
penalty. According to the Constitution, the gover nance system is based on the division and 
balance of powers among the legislative, executive and judiciary. The constitutional 
institutions are in place. 
EN 10  EN The Constitution has been amended twice, in 2007 and 2008. In 2007, small changes were 
made including lengthening the term of office of local government bodies and increasing the 
number of Central Electoral Commission member s. More substantial ch anges were made in 
April 2008. These included changing the electora l system from a mixed majority proportional 
to a regional proportional system, amending the procedure for electing the President of the 
Republic, removing the Central Election Commi ssion (CEC) from the Constitution as a 
constitutional body, limiting the previously indefi nite term of office of the Prosecutor General 
to five years, and changing some parliamentary rules.  
The Constitutional Court has asserted increasing independence since 2005. In several cases, it 
has invalidated or suspended approved laws . In the course of 2007–2010, 33 laws were 
subjected to constitutional review: 18 were  found partially unconstitutional, 2 entirely 
unconstitutional, and in 13 cases the Co urt rejected the petition on grounds of 
unconstitutionality. One of the recent pivotal de cisions of the Court wa s holding the so-called 
'lustration law', which was judge d to violate the separation of powers, to be unconstitutional. 
The Constitution sets out an adequate framewor k for a democracy run in accordance with the 
rule of law. However, there are a number of cases in whic h decisions and rulings of the 
Constitutional Court have been seriously chal lenged or even disregarded by governmental 
institutions.  
Overall , the Albanian Constitution sets out a reas onable framework for a democracy run in 
accordance with the rule of law. The C onstitutional Court has asserted increasing 
independence since 2005. However, respect for the Constitution has in  a number of cases 
been challenged by governmental  institutions notably by cal ling into question or even 
disregarding constitutional court decisions and rulings.  
1.1.1.  The parliament 
Albania has a unicameral parliamentary system. Parliament  (the assembly or Kuvendi ) is the 
highest body of state power and currently consists of 140 member s elected by direct, universal 
suffrage. It is elected every f our years. In 2008, the Albanian el ectoral system changed from a 
mixed (100 first-past-the-post constituency se ats and 40 national proport ional representation 
seats) to a regional proportio nal system (140 proportional repr esentation seats filled from 
party lists in regions corresponding to existing administra tive boundaries). The aim of these 
reforms was to make the political system more stable, to simplify the electoral machinery and to reduce the personalisati on of electoral contests. 
The June 2009 legislative elections  were assessed by the OSCE/ODIHR as an improvement 
on past practices and as meeting most interna tional standards. However, shortcomings were 
identified and a number of recommendations we re made for future elections. The report 
stressed that the elections demonstrated tangible  progress, in particular with regard to the 
voter registration and identification proce ss, the legal framework, voting, counting and 
adjudication of election di sputes. Nonetheless, the report adde d that the elections did not fully 
achieve the highest standards and that the politicisation of vote counting and tabulation 
undermined citizens’ confidence in the process.  Shortcomings also included non-transparent 
party financing and flawed media coverage.  
Parliament's organisation and functioning are g overned by rules of procedure adopted by the 
majority of its members. Parliamentary sessi ons are usually open to the public. The leading 
bodies of parliament are the Speaker, the Pa rliamentary Bureau and the Conference of 
EN 11  EN Chairmen of the parliamentary groups. Other bodies include standing committees, sub-
committees, special committees, investigative committees, the Council for Rules, Mandates 
and Immunities and the Council for Legislation. Parliament also has a Standing Committee on 
European Integration, which is currently chaired by the opposition. 
Parliament exercises a legislativ e role. The right to take a legi slative initiative rests with the 
Council of Ministers, every Member of Parlia ment, as well as on petition when signed by 
20,000 registered voters. A draft law goes first to  the parliamentary committee for review and 
then to plenary session for voting. Parliament, at the request  of the Council of Ministers or 
one fifth of its members, may deliberate and adopt a draft law by expedited procedure. The 
rules of procedure also provide for a system  of verification of compliance of Albanian 
legislation with the EU acquis . 
Under the Constitution, parliament exercises ove rsight over the executive and the institutions 
established and voted for by parliament. The ru les of procedure provide for a number of 
instruments to ensure its oversight role, in cluding investigative committees, interpellations, 
question and answer sessions, motions for debate s, motions of confidence, motions of no 
confidence, reporting and petitions. 
A considerable number of laws have been passed  by parliament in view of necessary social 
and economic reforms and to align Al banian legislation with the EU acquis . However, the 
quality of legislation passed has not always b een of an adequate standard. Parliamentary 
committees often work under severe time pressure. There are substantial differences in workload between the committees, with the lega l committee being particularly overburdened. 
Involvement of relevant interest  groups in parliamentary heari ngs and consultations is limited. 
The assembly’s legislative agenda is deci ded upon by the Conferen ce of Chairmen, which 
includes the parliamentary group chairmen but  not the individual committee chairs. As a 
consequence, there have been conflicts between  the committees' work plan and the assembly's 
legislative agenda. The position of parliamentary speaker has been misused, in particular by 
exerting disproportionate influence on the proce ss of establishing the le gislative agenda by 
frequently imposing short-term decisions as op posed to joint decisions of the conference of 
chairmen. 
Despite constitutional provisions, there is a lack  of effective parliamentary oversight over the 
executive and parliament does not function as an  independent institution. Interpellations and 
question times are rarely used a nd written questions are hardly ev er submitted. There is a very 
strong culture of partisan polit ics polarising stances in parlia ment, which hampers the proper 
functioning of the assembly and its committees . Investigative committees have often been 
forums for party political quarrel s, rather than instruments for parliamentary oversight. They 
have rarely produced results and thus have had limited impact on government policies. There 
is little consensus among the parties in par liament about its functioning and standards.  
Parliamentary work both on passing legislation and oversight functions has for years been 
strongly marked by difficult and often unconstruc tive political dialogue. Since the June 2009 
elections, parliamentary work ha s been overshadowed and obstruct ed by political stalemate. 
The opposition Socialist Party has boycotted the wo rk of parliament for long periods since the 
elections, calling for transparency and investigation of alleged irregularities in the elections. The government for its part has not shown readiness to compromise on proposals for 
overcoming the political deadlock made by the So cialist party. As a result, political dialogue 
has further deteriorated, being highly confrontational and u nproductive or else outright non 
existent. The political stalemat e and obstruction of parliament amplifies the existing weakness 
EN 12  EN in parliamentary oversight. Th e two opposing camps consisting of  the government parties and 
the Socialist Party have more than one year  after the elections not yet overcome their 
disagreements. This despite involvement from many parties, including the major parties in the 
European Parliament and the international co mmunity, aimed at paving the way for a solution. 
The political stalemate is damaging the func tioning of democracy in Albania and hindering 
important reforms, which are necessary for th e country’s progress on the path towards EU 
integration and the rule of law. Key pieces of legislation requiring a qualified majority (three 
fifths of all votes) could not be approved. Electoral reform n ecessary in view of upcoming 
local government elections is substantially delayed. This pol itical situation risks a profound 
and lasting polarisation of the political class with serious consequences in terms of its capacity for compromise and finding consensu s on key reforms. Constructive cross-party 
dialogue is necessary to ensure a smooth func tioning of Parliament based on its rules of 
procedure. 
Parliament’s structures are relatively weak a nd many activities are carri ed out on an ad hoc 
basis rather than in line with establishe d procedures. Politicisation of parliament's 
administrative and expert staff is detrimenta l to the overall organisation of activities. 
Moreover, staff capacities are limited and there is frequent turnover.  
Overall , Albania is a parliamentary democracy based on a constitutional and legislative 
framework, which is largely in line with Eu ropean principles and standards. However, 
parliament does not function properly as an i ndependent institution and accordingly does not 
exercise effectively and efficiently its oversig ht and control function over the government. 
Political culture is not conducive to constr uctive political dialogue. Since the June 2009 
elections, parliamentary work has been hampered  by political stalemate between the majority 
parties and the Socialist Party, which is in opposition. OSCE-ODIHR recommendations on 
the 2009 elections and their follow-up need to be  fully addressed with a view to upcoming 
elections. 
1.1.2.  The executive 
The President of the Republic is elected by parliament , by a qualified majority  of three fifths 
of 140 votes in the three first rounds and by simple majority in the last two rounds. The 
President has a limited executive role. The President promulgate s laws adopted by parliament 
and has the right to return them to the plen ary for reconsideration. He is the Commander in 
Chief of the armed forces. The President appoin ts the Prime Minister on the proposal of the 
party or coalition of parties th at has the majority of seats in the Assembly, he appoints and 
dismisses ministers on a propos al by the Prime Minister a nd he appoints and dismisses 
ambassadors and other diplomatic representative s. The President chairs the High Council of 
Justice. He appoints the member s of the Constitutiona l Court and High Court with the consent 
of parliament. 
The current President, Mr Bamir Topi, was elec ted in July 2007 for a five-year period. He has 
a constitutional role as a guarantor of consensu s, promoting party dialogue and compromise. 
However, on some of the major issues of public debate includ ing the political stalemate since 
2009, the effective role of the President of the Republic has remained limited. In 2010, some 
of the President's proposed appointments fo r the Constitutional Court and the High Court 
failed to receive the consent of parliament. 
EN 13  EN The Council of Ministers (CoM) is the basic executive body. Within 10 days of appointment 
by the President, the Prime Mi nister presents th e political programme of the Council of 
Ministers, together with its com position, to parliament for approval. 
The current government  is led by Prime Minister Sali Berisha. He was reappointed by 
parliament in September 2009 following the June elections and the form ation of a coalition 
government between the Democratic Party of outgoing PM Berisha and the Socialist 
Movement for Integration of Ilir Meta. There is  one Deputy Prime Minister (Ilir Meta, who is 
also Minister of Economy) and 14 mi nisters, one of whom is female. 
With regard to the government' s main task of law-making, the main planning tool is the 
annual Analytical Legislative Programme (ALP).  Before approval, the Programme is checked 
against the main priorities in the National Strategy for Development and Integration and the Stabilisation and Association Agreement, a lthough this linkage is not systematic, and a 
substantial number of laws put  forward by line ministries in recent years had not been 
included in the ALP. This reflects the governme nt's excessive and short-term ambitions for 
the legislative agenda. There is a mechanism fo r coordination of work planning in different 
institutions but it works in sufficiently in practice. 
 
Inter-ministerial consultation on draft legislati on is required by law. It is up to the line 
minister to organise inter-ministerial groups a nd to invite experts to discuss drafts laws. 
However, participants in inter-ministerial gr oups do not always have a mandate to negotiate 
agreements on behalf of their ministries, which reduces the effectivene ss of such procedures. 
There is a formal requirement to involve external consultation; however, broad-based 
consultations with the participation of representa tives from interest groups are rarely carried 
out.  
In general, capacities for legisl ative drafting in line ministries and administrative bodies are 
weak. One of the specific weaknesses is that in sufficient attention is given to implementation. 
This, in addition to limited consultation with interest groups and specialists, as well as the 
government's over-ambitious legislative agenda and limited parliamentary scrutiny, results in 
several pieces of legislat ion being of low quality. 
Proper implementation of, and respect for, legisl ation have been affected by its poor quality. 
Furthermore, implementation is hampered at ti mes by the lack of full understanding of the 
social and political role of laws by relevant public sector institutions; these disregard certain 
legal provisions as a result. Ther e have been cases in which resp ect for legislation and the rule 
of law have been put into question by the gov ernment, with Constitutional court decisions and 
rulings being challenged or even disregarded. 
The government has invested in an Integrated  Planning System (IPS) , which embodies the 
principles that the government s hould have a clear and coherent set of policy priorities that are 
linked to the budget process. The most influe ntial forum for minist erial discussions on 
priorities and key sector strategies is the Strategic Planning Committee, an inter-ministerial committee chaired by the Prime Minister, whic h is focusing increasingly on the linkage 
between policies/priorities and budgetary matters. Despite positive developments in this regard, the coherence between the IP S, the ALP and budgeting remains weak. 
The Ministry of European Integration (MEI) wa s established in 2004 w ith the core task to 
coordinate European integrati on work in the government. Directorates for EU integration 
were also established in relevant line ministries. 
EN 14  EN In order to streamline and improve coordinatio n of the European integration process, the 
Albanian government established the Inter–Institutional Coordinating Committee, chaired by the Minister for European Integration and com posed of the deputy ministers or secretaries 
general of each line ministry, as well as offi cials of relevant central institutions. The 
Committee meets at least once a month. 
More specifically, permanent inter-minis terial working groups covering various acquis  
chapters were established ahead of the Opinion questionnaire process. A new European Secretariat was establis hed within the MEI to coordinate the work of  these groups. The MEI 
together with the working groups have managed the process of replies to the questionnaire in 
a satisfactory manner. 
The Albanian Constitution provides that local governments  are founded on the principle of 
decentralisation and exercise their powers in ac cordance with the princi ple of local autonomy. 
The Constitution incorporates the basic principl es of the European Charter of Local Self-
Governance ratified by Albania in 1999. 
Communes and municipalities are the basic units of local governance. Co mmunal, municipal, 
and regional councils regulate and manage local issues within their jurisdiction. They exercise 
property rights, administer their revenue independently and are en titled to engage in economic 
activity, collect revenue and spen d the funds necessary for fulfillin g their duties. They are also 
entitled, pursuant to the law, to le vy local taxes and set their level.  
The heads of communes and municipalities may be  dismissed by the government in cases of 
serious breaches of duty. The government also appoints prefects to chec k the legality of acts 
adopted by local government. Prefects also ex ercise financial cont rol over these bodies, 
although the relationship between them is not one of subordination. The cooperation between 
local government and government appoint ed prefects overall functions smoothly. 
Despite much debate regarding the decentralisa tion process, few of the measures planned in 
the local government and decentr alisation strategy 2007-2010 were  implemented. The transfer 
of some competences was made at short noti ce and often without ade quate preparation. The 
Law on territorial planning and amendments theret o raised issues regard ing potential conflicts 
with the existing regional and local structures.  
The deterioration of the political atmosphere at  national level has affected relations between 
central and local government. It ha s also affected the activities  of the associ ation of local 
government representatives. A s econd association was created by lo cal elected offi cials of the 
opposition. 
Overall , Albania has an institutional system of g overnment institutions that broadly function, 
although with some deficiencies. These concern in  particular the low qua lity of legislative 
drafting and the limited process of policy consultati on with third parties. Th is in turn leads to 
serious shortcomings in the implementation and respect for legislation. The cases of non-respect of constitutional court decisions by govern ment in recent years and the politicisation 
of the vote on the President's Constitutional Court appointments are of concern. The President 
has not been able to fulfil his constitutional role  as a guarantor of consensus, promoting party 
dialogue and compromise. Albania’ s local government system is in  line with the principles of 
the European Charter of Local Self-Governan ce. The cooperation between local government 
and government appointed prefects overall f unctions smoothly. Planned decentralisation 
EN 15  EN measures in recent years have not been implem ented. Lack of constructive political dialogue 
at central level has affected relations  between the central and local level. 
1.1.3.  Public Administration 
The Albanian Constitution, the Law on the organisation and functioning of the Council of 
Ministers, and other special laws on the organisation and functioning of institutions 
subordinate to the Council of Ministers/Prime Minister, or line ministers, provide for the 
establishment and functioning of central ins titutions of the public administration. This 
legislation defines their mission, scope, powers,  activity, and manner of funding. Institutions 
created in this way include: political institutions  (parliament), judicial institutions (courts), 
independent institutions (Ombudsman, High Co mmissioner for Data Protection, High State 
Control Office, Civil Service Commission, etc. ) and administrative institutions (Department 
of Public Administration, Depa rtment of Internal Control and Anti-corruption, sectoral 
inspectorates, Public Procur ement Advocate, prefects).  
As there is no unified system and law on the general organisation and functioning of the 
public administration, there is a ri sk of fragmentation between di fferent pieces of legislation. 
These put in place administrative bodies and establish for each public administrative body individual provisions on issues of responsib ility, accountability and competences, without 
having to follow general rules at state administration level. 
The status of civil servants is regulated by the Law on civil service of 1999 as well as by 
several pieces of secondary legislation. The Labour C ode is also applicable to civil servants as 
supplementary legislation; it covers many area s related to working conditions in the civil 
service. The Labour Code is the basic law for pu blic employees who are not civil servants. As 
provided by the civil service la w, the civil service in Albani a is basically a position-based 
system with some elements of a career mechanism.  Such a system is subject to higher risks of 
politically motivated staff turn- over than in a fully career-based system. The total number of 
public employees is about 90,000, including 15,000 in  local and regional administrations. Of 
these, only about 5,000 are civil servants. 
The civil service law regulates civil servant recruitments. These are organised for each 
vacancy at a time, even though each institution has to communicate its forecasts for new recruitments a year in advance. The law provides for open competitions as the only means of recruiting civil servants. Most stages of open competitions are transparent. However, the final stage and the recruitment decision  is left exclusively to the di scretion of the line manager 
concerned. An exception to the rule of open co mpetitions is temporary employment. Over the 
last few years there has been a relatively high  share (on average more than 20%) of vacancies 
filled by employees under temporary contracts. Most staff recruited on a temporary basis tend 
to be confirmed subsequently in open competiti ons. The government has issued an order on 1 
October 2010, which aims at limiting the use of  temporary contracts for employment; this 
decision and its implementation need to be verifi ed in practice. There has in general been a 
high turnover of civil servants in recent years due to politicisation of recruitment practices. 
The existing position-based career system has provided for the possibility to make civil 
servants redundant as a result of restructuring of ministries by incoming new ministers. These 
practices undermine the procedures and principl es under the civil service law for merit-based 
appointments and lower the overall ca pacity of public administration. 
EN 16  EN The civil service law lays down procedures for horizontal mob ility and for promotion through 
competition of civil servants. However, these procedures have been applied rarely in recent years. 
Since 2006 the government has been implementing a policy to increase sa laries in the public 
service, applying different rates according to th e sectors (the largest increases were in the 
education and healthcare sector s). Salary increases have co ntinued in 2009 and 2010 despite 
global pressures for budgetary restraints, wh ich helps to reduce the income gap between 
public and private sector and staff turn-over as a result. 
There is a Code of Ethics da ting from 2003 which is binding on civil servants. However, part 
of the Code of Ethics is eschewed as not legally enforceable because some concepts are 
contradictory. The Code also regulates some pro cedures for dealing with conflicts of interest. 
Submitting conflict of interest declarations is a requirement strictly enforced by the 
Department of Public Administration (DoPA), but  the correctness of such  declarations is not 
checked. 
The strategy for public administration refo rm (PAR) and correspo nding action plan of 
September 2009 aim to address shortcomings in the functioning of the p ublic administration; 
they specifically include review of the civil service law and institutional strengthening of the management authorities implementing the civil service legislation. The necessary 
amendments to the civil service law need to be undertaken in a cooperative environment with 
involvement of all stakeholders. It will requ ire political will and political consensus on the 
need for and scope of public administration refo rm, as the law requires a qualified majority in 
parliament. 
Two institutions are responsible for managing and monitoring the management of the civil 
service at state level. Department of Public Administration has the task  of managing the civil 
service in central institutions, while in independent institutions the respective human 
resources units exercise this function. DoPA also  has a central role in public administration 
reform. The Civil Service Commission (CSC) supervises the legality of management 
decisions concerning the civil service and deci des on appeals by civil servants in all areas 
connected with the civil service law. In addition, the Training Institute for Public 
Administration (TIPA) is in char ge of training civil servants. 
The administrative resources and organisatio nal capacity of DoPA are insufficient and 
accordingly need strengthening in the light of its dual task of overseeing the PAR and 
monitoring implementation of the civil service law. Raising and maintaining the institutional 
capacity of the Civil Service Commission, as well as insuring better enforcement of the CSC decisions by the state administrative bodies are of particular importance for the enforcement 
of the rights and duties of Albanian civil servants. 
There are no specific administrativ e courts in Albania. Judicial  review of administrative acts 
is carried out by the administrativ e sections within the first inst ance courts, in accordance with 
the provisions of the Civil Pr ocedure Code. Appeals against decisions of the first instances 
can be lodged according to general procedural ru les, to appeal courts and the High Court. 
However, the existing mechanisms for judicial review of administrativ e acts are quite often 
inefficient. A draft law intended to form the basis for administrative courts in Albania is 
pending adoption in Parliament by qualified majority. 
EN 17  EN The High State Control (HSC) is the supreme a udit institution (SAI) in Albania (see also 
chapter 32 on financial control). The constituti on provides the HSC with a broad remit and the 
mandate to carry out different types of aud its. The HSC is a member of EUROSAI since 
1993. As the HSC is not legally required to audit a ll government entities annually, current 
resources are broadly satisfactory. In the long term the SAI needs to  develop its capacity 
further.  Reporting to the Parliament and the fo llow-up of audit recommendations by state 
institutions need to be improved. 
The Law on the Ombudsman (People's Advocate) gives the Ombudsman ’s Office the 
mission to safeguard the rights, freedoms and lawf ul interests of individuals from unlawful or 
improper actions or failure to act by institut ions of the public administration and private 
bodies acting on behalf of the state. More over, the Ombudsman’s Office monitors the 
implementation of laws on transp arency and internal control,  including the Law on access to 
public information. The Ombudsman’s Office has provided solid and timely recommendations in its areas of competence. However, these are insufficiently put into 
practice by government institutions. Its work is hampered by lack of resources and lately by 
budget reductions and the pending election of the new Ombudsman. (See also Section 1.2 on 
human rights and minorities)  
Overall , the general administrative la w framework and the civil serv ice system are mostly in 
line with European principles and standards, although some gaps exist.  Proper implementation 
of the legal framework remains a concern as doe s the lack of transparency and accountability 
in appointments and the politicisation of the pu blic administration. Political will and strong 
efforts are necessary for the full implementation of the civil service la w and progress with the 
public administration reform stra tegy, which are necessary for the establishment of a civil 
service that is independent, professional and based on merit. The pending election of a new 
Ombudsman as well as the insufficient respect of  this institution's recommendations is of 
concern. 
1.1.4.  Judicial system (See also Chapter  23 — Judiciary and fundamental rights)   
The judicial system is based on the Constitution of 1998, and is organised in three instances, 
courts of first instance , courts of appeal  and the High Court . Albania has 22 first-instance 
courts, six appeal courts, one first-instance serious crime cour t, one serious crimes appeal 
court, and one High Court.  
Judges of first instance and appeal courts are appointed by the President of the Republic on a 
proposal from the High Council of Justice. The President appoints the members of the High 
Court with the consent of parliament (by simple  majority). The President and members of the 
High Court hold office for nine years without th e right to reappointment. The High Court is 
the final national instance in civil and criminal cases. In addition, it has original jurisdiction 
when adjudicating criminal charges against the President of the Republic, the Prime Minister, 
members of the Council of Ministers, MPs, judges of the High Court, and judges of the 
Constitutional Court. Being the highest instance of  the judiciary in Albania, the High Court 
plays a specific role in ensuring unified application of case-law. 
The Constitutional Court  is composed of nine judges, who are appointed for a single term of 
nine years by the President of the Republic w ith the consent of parliament (by simple 
majority). The court decides on the conformity of  laws as well as other regulations, such as 
international agreements, with the Constituti on. Where judges consider a law unconstitutional, 
EN 18  EN they suspend the proceedings and send the quest ion to the Constitutional Court. Decisions of 
the Constitutional Court ar e binding on all courts. 
The Constitutional Court ha s asserted increasing independence since 2005, by issuing 
decisions that on several occasions annulled le gislative acts passed by majority. However, 
there are concerns, amplified by the current poli tical deadlock, over the politicisation of the 
consent vote in parliament of the Presiden t's appointment of judges to the Constitutional 
Court. This risks jeopardising the impartia lity and independence of this institution. 
The High Council of Justice  consists of the President of th e Republic, the President of the 
High Court, the Minister of Justice, three memb ers elected by parliament (by simple majority) 
and nine judges of all levels elected by the Nationa l Judicial Conferen ce. Elected members 
stay in office for five years. The  Council is responsible for the protection, appointment, 
transfer, dismissal and profe ssional evaluation of judges of first instance and appeal.  
Replacements of judges in the High Council are currently blocked by the suspension of the 
Law on the National Judicial Conference. Amendm ents to this law need to be adopted by a 
qualified (three-fifths) ma jority in parliament. 
The High Council of Justice does not have competence over the High Court, which is 
politically appointed and has an extraordin ary position within the judicial system. The 
exclusion of the highest instance court from the arrangements applicable to the lower courts 
weakens the independence of the judiciary as a whole.  
The Prosecutor’s Office conducts criminal inve stigations, brings prosecutions to court on 
behalf of the state and performs other duties laid down by law. Prosecutors are organised and 
operate as a centralised body attach ed to the judicial system. In the exercise of their powers, 
prosecutors are subject to th e Constitution and the laws. 
The General Prosecutor is appoint ed by the President of the Repub lic with the simple majority 
consent of parliament, for a five-year term, with the right to be reappointed. The other 
prosecutors are appointed by the President of the Republic on a pr oposal by the General 
Prosecutor. The prosecutor’s office operates acc ording to instructions  given by the General 
Prosecutor, as a centralised structure which includes the General Pros ecutor’s Office, the 
Prosecutorial Council as well as the prosecuto r’s offices within the judicial system.  
The Prosecutorial Council is composed of si x prosecutors and one re presentative of the 
Minister of Justice and carries  out advisory functions, assis ting the General Prosecutor. The 
prosecutorial system  is highly centralised and hierarchical . It is considered to belong neither 
to the judiciary nor to the executive. The autono my of prosecutors is guaranteed in the trial 
phase, but is limited in the investigative phase, which impairs its efficiency. A pro-active approach to investiga tions and more widespread use of modern investigation methods are 
both lacking. The General Prosecutor’s Offi ce has undertaken st eps to improve its 
functioning, with the approval of  several internal orders rega rding its internal organisation. 
Nonetheless, further efforts are needed to implement the new regulations. The independence and accountability of the prosecutorial system is weakened in particular by the fact that the 
General Prosecutor’s appointment depends on th e simple majority consent of parliament; 
moreover, there is a lack of sound evalua tion and inspection systems for prosecutors. 
The School of Magistrates is in charge of initial and continuous training of judges and 
prosecutors. Admission to the School is subject to a public competition with written and anonymous exams. The best candidates from the written competition have the right to 
EN 19  EN commence the initial training of three years towa rds obtaining the title of magistrate based on 
a decision by the Leading Council of the Magistrate s’ School. This system is helping overall 
to improve the qualification of magistrates and to increase th e transparency of recruitment 
procedures. 
The principle of independence of the judiciary is provided for in the Constitution and relevant 
legislation. The duration of th e office of judges (except Cons titutional Court judges) cannot 
be limited; their pay and other benefits canno t be lowered. However,  there are important 
obstacles to effective independe nce. The politicisation of the appointment of judges to the 
High and Constitutional Courts undermines th e neutrality and independence of these 
institutions.  
The independence and calibre of the judiciar y is also weakened by the lack of sound 
evaluation systems for judges as well as by the lack of merit-based appointments and 
transfers.  Appointments to the first and subsequent posit ions of judges in the district courts and 
the appeal courts are made by the Presiden t of the Republic on proposals by the High Council 
of Justice. Conditions and competitive procedures  for selection are laid down by law. One of 
the criteria for first appointment is that candidates must have graduated from the Magistrates’ School. However, 10% of all judges may be  appointed without having completed the 
Magistrates’ School, the only crit eria being that they must have previously worked as a judge. 
Promotions and transfer appointments to higher courts are based on evaluation systems, which 
lack transparency as well as a systematic and consistent application. In addition, when proposing candidates for appoint ment, transfers or directive posts, the Council does not 
provide any reasons for its deci sion. There are for candidates no procedures or provisions for 
an appeal against decisions or for a judicial review. The latter is also due to the absence of administrative courts, the establishment of whic h is foreseen through a draft law, which is 
pending qualified majority in pa rliament. Such a lack of acc ountability, transparency and 
possibility of appeal creates risks of  political interference and corruption. 
Courts have a separate budget which they propose pursuant to the law and administer 
themselves. However, budgetary appropriations fo r the judiciary overall remain insufficient. 
Accountability of the judiciary is ensured by inspections undertaken by two institutions. The 
inspectorate of the Hi gh Council of Justice ca rries out inspections both on own initiative and 
based on complaints from citizens. It also unde rtakes professional assessments/evaluations of 
judges every three years. The Ministry of Justic e conducts inspections of  first-instance courts 
and appeal courts focusing on th e organisation and work of judi cial services and judicial 
administration, according to specific th ematic or territorial programmes.  
However, there is overlap and lack of coordi nation between the two inspectorates. Both the 
Ministry of Justice and the HCJ have competen cies and apply procedur es that do not fully 
comply with European standard s regarding inspections of j udges and courts. The evaluation 
of judges lacks transparency. The initiative for disciplinary procedur es is in the sole hands of 
the Minister of Justice, without any balance or control. Due to the fact that the absence of 
disciplinary procedures is a key element for j udicial careers, there is  a concrete risk of 
interference from the government in this ke y area. As a result, accountable and efficient 
inspection systems and disciplinary proceedings for judges are not in place. In addition, 
preventive measures against corrupti on in the judiciary are insufficient. 
The principle of equality before the law and the right to trial by impartial courts is foreseen by 
the Constitution. The Code of Judicial Ethics was introdu ced by the National Judicial 
EN 20  EN Conference in 2000 and has been ov erseen by it since then. A co mputerised case management 
system and random allocation of cases in both cr iminal and civil proceedings are in place in 
most judicial offices. However, problems with  the random allocation of cases persist in 
practice notably due to a lack of  consistent approach in all courts, and a lack of necessary 
guidance and training. Further e fforts are needed to have a fully uniform and harmonised 
integrated case management system functioning and used in all courts. 
The judiciary suffers from problems of transp arency and efficiency. There are serious 
obstacles to the investigation of corruption cases in the judiciary notably due to the fact that, 
by law, judges enjoy full immunity. The immuni ty of judges can only be  lifted on a decision 
of the High Council of Justi ce, which substantially  reduces the effectiveness of possible 
investigation (See also Section 1.1.5 on corruption). Court management is poor due to the 
lack of human and financial resources, in particul ar in first-instance dist rict courts. There is no 
sound and adequate organisation and training of court administrators. Unreasonable delays in 
judicial proceedings are of c oncern as is the high backlog of  cases. Court proceedings are 
slow and the number of trial sessions for a ca se is high. In addition, proceedings are often 
delayed or outright stalled by defendants. Work ing conditions in courts remain poor and 
hearings often take place in judges’ offices, ha mpering transparency and efficiency. Concerns 
over the security of judg es persist. Currently, the Ministry of Justice is prep aring amendments 
to the Civil Procedure Code and the Civil C ode aimed at tackling these deficiencies.  
There is corruption in the judici ary, risks to the independence of judges, as well as a lack of 
transparency and accountability of many procedures and a lack of efficiency in general of the justice system. As a consequence, public percep tion indicators highlight a very low level of 
trust in the judiciary. High-profile  cases are rare and where they are prosecuted, they mostly 
do not lead to convictions. Th ere have been cases where th e General Prosecutor’s Office 
completed the investigation but the trial was delayed on procedural grounds and eventually 
suspended because of the immunity of the defendant. Such inertia contributes to the overall 
perception that high-level figures are not pros ecuted on the grounds of political and economic 
power. 
Albania has undertaken reforms in the judiciar y in recent years including both improving the 
justice infrastructure and drafting legislation aligned with European standards. However, 
Albania lacks a comprehensive long-term reform strategy for the judiciary. In this respect, 
consensus and inter-institutional cooperation on the need for judicial reforms are important. 
The lack of relevant resources at the policy and techni cal level within the Ministry of Justice 
hampers the effective implementation of reform s in the sector. Coordination with the High 
Council of Justice on judicial reform has been insufficient. Fu rthermore, adequate 
consultation mechanisms and assessments of the financial and institutional impact of legislation are not always impl emented. There can be confusion about the initia tor and drafter 
of laws in the justice sector . In December 2009, the Ministry of Justice created a working 
group to prepare the justice sect or strategy. Important pieces of  legislation to complete the 
legal framework have not been adopted, in cluding the Laws on th e National Judicial 
Conference, on administrative justice and on judi cial administration. In particular, the law on 
administrative justice should be finalised and passed in a reasonable timeframe, in order to 
fulfil the existing gaps in this area. 
The right to defence counsel is not mandatory in a very wide range of cases. This is a concern. 
The quality of services provided by lawyers is frequently cons idered insufficient by judges. 
There are numerous cases of lawyers using delayi ng tactics in court case s such as not showing 
up at hearings, without facing disciplinary procedures from the Chamber of Advocates. 
EN 21  EN Enforcement of decisions is weak, in particul ar in cases where state institutions are the 
defendants. The European Court of Human Rights in Strasbourg has ruled on several 
occasions against Albania for non-enforcement of  its judgments. The law on the new bailiff 
services, approved in 2008, has st ill not fully entered into effe ct. The private bailiff system 
has not yet started to function and no sound cas e management for bailiffs is in place. 
Provisions of relevant and fina ncial resources from the state budget for the execution of 
decisions against state bodies could also impr ove the enforcement of decisions. The recent 
appointment of the State Commission for Lega l Aid is a positive development to promote 
access to justice and will lead to enforcemen t of implementation of the Law on legal aid 
which was adopted in 2008.  
Overall , Albania lacks a tradition of j udicial independence. It needs to continue the process of 
reforming the judiciary, including the adoption of a comprehensive judicial reform strategy 
and key pending laws and the establishment of a sustained track record of implementation 
demonstrating the independence and efficiency of  the judiciary. It will need to address the 
lack of independence, transparency and accoun tability in the appointment, transfer and 
evaluation of judges as well as necessary im provements to the system for inspecting the 
judiciary. The fact that the parliament votes on the appointment of judges to the High Court 
and Constitutional Court entails strong risks of politicisation a nd hence of a weakening in the 
independence of the institutions. Adequate human and financial resources as well as infrastructure conditions are need ed to ensure the efficient func tioning of courts. Albania also 
needs to address corruption in the judiciary, taking into consideration all the relevant aspects, including salaries, immunity, security, and the politicisa tion of key appointments. 
1.1.5.  Anti-corruption policy (See also Chapter 23 — Judiciary and fundamental rights) 
In recent years, Albania has undertaken co ordinated efforts to establish a legal and 
institutional framework for fi ghting corruption in certain fi elds. However, corruption is 
prevalent in many areas and is a particularly serious problem. 
Albania has adopted several anti-corruption measures a nd laws. The Criminal Code 
criminalises the main forms of corruption and th e Criminal Procedure Code includes key tools 
for fighting corruption, including sp ecial investigative measures. Amendments to the Criminal 
Code introduced provisions on public sector br ibery as well as comp letely new provisions on 
private sector bribery an d trading in influence. 
In 2008, an intersectoral strategy on preventi ng and combating corruption was adopted. A 
general action plan to implem ent the strategy is drafted each year and endorsed by an 
interministerial working group. The 2010 acti on plan is more specific and includes 
measurable indicators, which should facilita te implementation and monitoring. Individual 
plans are also adopted by line mi nistries and their implementation is part of an overall annual 
reporting system.  
The Department for Internal Administrative Control and Anti-Corruption (DIACA) performs 
internal controls on the administration and is the ad ministrative body in charge of 
coordinating the activities decided by the inter-ministerial working group.  
Albania has a Law on the declara tion and auditing of civil servants’ assets and a Law for the 
prevention of conflicts of inte rest while engaged in public wo rk. The High Inspectorate for 
Declaration and Audit of Assets  (HIDAA) is in charge of re ceiving and verifying the asset 
declarations of public officials and checking that  their positions are compatible with the Law 
EN 22  EN on conflicts of interest. HIDAA can take administ rative measures against civil servants failing 
to submit their declarations and can notify the prosecutor’s office in case of non-compliance 
with the laws. HIDAA is starting to produce satisfactory results; however, further improvement of cooperation with law enforcemen t and prosecution offices is needed to make 
full use of analysis and investig ations into asset declarations. 
In the Ministry of the Interior , an Internal Control Service (ICS) has been established to 
investigate corruption cases in the police. It has produced some results. Several traffic police 
officers have been investigated and dismissed for taking bribes.  
Joint Investigative Units (JIUs) for economic crimes and corruption were established. They 
are based in Tirana and six other cities a nd are intended to improve th e coordination efforts of 
law enforcement agencies. The JIUs are composed of police staff from the prosecutor’s offices, the state, customs and tax police and other relevant institutions.  
E-procurement systems have been introduced in  the public administration in order to reduce 
personal contacts between contracting auth orities and bidders and therefore reduce 
opportunities for bribery. Reforms have been introduced in the e ducation sector (e.g. 
electronic database for enrolments and anonymous entry exams) and health sector (e.g. new regulation on the referral system) in a bid to st ep up the fight against co rruption in these areas. 
However, newly introduced measures and policie s will have to prove their effectiveness in 
practice. 
Despite an improved legal and institutional framework, corruption across many sectors and 
institutions remains at high levels, with certain sectors and areas particularly affected, notably 
the judiciary, the health sector and property rights, but also public procurement and party 
funding. 
There are gaps in the legal framework for the fight against corruption.  Cases of bribery of 
foreign public officials are not covered by the Cr iminal Code. More impo rtantly, even if the 
immunity granted to a large group  of public officials (MPs, ministers and judges) is meant to 
increase their independence, it  has proven to be a serious obs tacle to the investigation of 
corruption, which increases the risk for this phenomenon. Immunity can only be lifted by 
Parliament or High Council of Justice deci sions. This is complicated, time-consuming, 
prevents efficient investigati on and is rarely successful.  
There are gaps in the institutional set-up for the fight against corrupt ion. DIACA’s capacities 
for playing a coordination role in the context of  the strategy and action plan are limited due to 
lack of resources. Monitoring of implementati on of the action plan by  DIACA and corruption 
reporting and statistics in particular are insu fficient. In general, the entire sector of 
administrative inspections is a matter of concer n in terms of vulnerab ility to corruption and 
capacity to ensure integrity and transparency in  administrative practice.  The Internal Control 
Service of the Police has produced results mainly on petty corruption cases. Cooperation between the different institutions involved in fi ghting corruption outside the JIUs needs to be 
further strengthened. Resources for fighting co rruption remain limited. This includes the low 
salaries of prosecutors and judges, the number of qualified staff but also limited resources for 
investigation and proper court practice.  
An increasing number of corruption cases ha ve been investigated and prosecuted, but 
conviction rates remain very low. There is no track-record of investigation, prosecution and 
EN 23  EN conviction of high-level corrupti on cases. The immunity of judge s is lifted only rarely. These 
factors consolidate the general prevailing culture of impunity. 
Despite ministerial involvement in the anti -corruption task force and working group, and 
outspoken high-level political commitment, the act ual results of the fi ght against corruption 
do not live up to expectations. 
Outside the central institutional levels, there is a lack of general awareness of the legal 
framework and mechanisms in place to fight corruption. Also, the lack of public knowledge 
of the duties of certain institutions and the righ ts of citizens (e.g. health sector, judiciary) 
exacerbates the feeling of inevitability of corruption, particularly in certain areas. 
Overall , Albania has made efforts in recent year s to establish a legal and institutional 
framework for fighting corruption and has produ ced some initial results. However, corruption 
is prevalent in many areas and is a particularly  serious problem. Albania needs to complete 
the legal framework addressing GRECO recomm endations and concerns over the unlimited 
immunity of certain public officials. Efficient implementation of the anti-corruption strategy and action plan needs to be demonstrated an d a proven track record of convictions in 
corruption cases established at all levels. Areas  of particular concer n are the judiciary, the 
health sector, property rights a nd funding of political parties. 
1.1.6.  Civilian oversight of  security forces 
Civilian control over the armed and security forc es and intelligence services is regulated by a 
comprehensive legal and policy framework including the constitution and laws regulating the different forces. Parliament is the highest authority for civilian co ntrol over armed and 
security forces and intelligence services. Other important institutions with control functions provided by law include the president, the prim e minister, the High State Control, the Office 
of the General Prosecutor, the Om budsman, and the General Inspector. 
Security forces in Albania are divided into three main categories: the armed forces, police 
forces and security services. 
As regards the armed forces; the General Staf f Headquarters, the Albanian Joint Forces 
Command, the Albanian Suppor t Command and the Albanian  Training and Doctrine 
Command are all under the purview of the Ministry  of Defence. These all have military status 
and include a number of civilian employees.  
The police forces are composed of: the Albani an State Police, which is the national police 
force, tasked with the maintenance of public or der and the fight agains t crime; the Municipal 
Police Forces, which serve under the authority  of local government entities and the 
Republican Guard which is a constabulary forc e tasked with protect ing government property 
and dignitaries and which has military status and powers of arrest. There are inspectorates 
within line ministries, the members of which ha ve the attributes of Ju dicial Police officers 
(competent to identify and process violations of  laws and reporting to the Public Prosecutor). 
The security services are divided between the Inte rnal Security Service, which is tasked with 
confronting national security threats, and th e Military Intelligence Service, which deals 
primarily with external security threats. 
Parliamentary oversight over the security se ctor is executed through several committees 
within parliament, with the Security Comm ittee and the Laws Committee being the most 
EN 24  EN relevant ones. They conduct period ic hearings of officials on s ecurity sector issues. However, 
the capacity of these committees and their le gal powers to perform effective oversight 
functions in a system of check s and balances are insufficient.  In addition, while political 
direction or the development of security policies is indeed within the remit of ministers, 
political interference with the security sector stil l exists and extends to the lower grades of the 
hierarchy. 
Overall , civilian control ove r the armed and security forces  and intelligence services is 
regulated by a comprehensive legal and policy framework, which establishes the parliament 
as highest oversight institution. Parliamentary oversight over the security sector suffers from 
weaknesses and politic al interference. 
1.2. Human rights and the protection of mino rities (See also Chapter 23 – Judiciary 
and fundamental rights) 
Observance of international human rights law Respect for human rights and the protection of minorities are enshrined in the Constitution 
and in a number of le gislative provisions. Alba nia has ratified most human rights 
instruments ; these are part of the inte rnal judicial system and ar e directly applicable after 
publication in the Official Journal. Albania join ed the Council of Eur ope in 1995, and ratified 
the European Convention on Human Rights in 1996. To date, the European Court of 
Human Rights (ECtHR) has delivered 29 judgments c oncerning Albania. The Court mainly 
found breaches of the right to a fair trial within a reasonabl e time, the right to an effective 
remedy and the right to peaceful enjoyment of  possessions. As of September 2010, there were  
287
 cases pending before the ECtHR regarding Albania.  
As regards the promotion and enforcement of human rights , the Office of the Ombudsman 
(the People's Advocate) is the main domestic human rights institution. It has played an active 
role in monitoring the human rights situation in  the country, and has co ntributed to enhancing 
the accountability of state institutions. The Om budsman is elected by parliament by qualified 
majority. Due to the ongoing political stalemat e, election of the new Ombudsman has been 
pending since February 2010. The main fields in  which the Ombudsman has intervened relate 
to property disputes, police abuse, undue length  of judicial proceedings, non-enforcement of 
judgments in civil cases and unfair dismissals. He has also repeatedly  expressed particular 
concern over inadequate conditions in prisons, pr e-trial detention centres  and police stations, 
corruption in the judiciary and difficult liv ing conditions of the Roma minority. The 
Ombudsman’s recommendations are insuffici ently put into practice by government 
institutions. His annual report to parliament has been vehemently criticised by some MPs. The 
work of the Office is hampered by lack of re sources and recent significant budget reductions 
are a matter of concern. These constraint s have meant that the Ombudsman has only 
marginally used his ex officio power. The in dependence of this body needs to be ensured 
through appropriate allo cation of resources.  
The institutional framework on human rights has been reinforced through the creation of an 
equality body. In accordance with the Law on protection from discrimination, passed in February 2010, the Commissioner fo r protection from discrimination,  was appointed in April 
2010. The Commissioner has the aut hority to receive co mplaints relating not only to the 
public sector, but also to the private sector a nd individuals and has the power to impose fines 
for breaching the law. However, the Office is not  yet fully operational.. An adequate funding 
EN 25  EN of the Office is essential to ensure its capacity to examin e complaints and to undertake 
awareness-raising activities to implemen t the principle of equal treatment. 
Trainings on issues rela ting to human rights have taken place,  in particular for police officers, 
however, awareness and sensitivity to human ri ghts issues on the part of the administration, 
the judiciary and law enforcement authorities need to be reinforced. 
Civil and political rights 
The protection of the right to life  is enshrined in the Constitu tion. Albania rati fied Protocol 
No 13 to the European Convention on Human Rights abolishing the death penalty under all 
circumstances in 2007. The number of blood feud k illings has decreased, due notably to better 
policing. Specific criminalisation of blood feuds and blood feud killings, the creation of specialised police units and the establishment of a high-level Coordination Committee have 
been important steps in this field. However, the incidence of these killin gs continues to result 
in the families concerned being self-isolated due to  fear of reprisals, thus depriving children of 
basic rights such as inclusiv e education. The government has taken measures to improve 
access to education of isolated children not ably through its "second chance" programme. 
Additionally, several NGOs have been active in  this field, providing support to affected 
families and contributing to increased awareness of the need to eradicate this phenomenon. Collection of reliable data on blood feud killings is  required in order to measure the extent of 
the problem and address it adequately. Commun ity education, outreach and measures aimed 
at reconciliation of families are also needed.  
Albania has made efforts to ensure access to justice  with the adoption in December 2008 of 
the Law on legal aid, under which free legal serv ices in civil, crimin al and administrative 
proceedings are to be provided to different categories of persons. However, challenges remain 
in this area. The members of the State Commission for legal aid have been appointed, and 
have started work, although with much delay, th us hampering the effective implementation of 
the law. The substantia l increase in judicial  administration fees in troduced in March 2010 
risks limiting access to justice for the economi cally underprivileged, particularly since 
individuals benefiting from the free legal aid scheme are not exempt from the payment of 
court fees.  
The prison system  and pre-trial detention  in Albania have been considerably improved since 
the transfer of responsibility from  the Ministry of the Interior to the Ministry of Justice in 
2007. Investments have been made to develop pen itentiary facilities an d new administrative 
measures taken to improve food quality and the frequency of outdoor breaks, resulting in 
improved living conditions. Vocational training is  available for detainees in 15 of the 21 
penitentiary institutions, w ith 570 persons following such c ourses, notably juveniles. 
Overcrowding has been reduced, in particular  through the introduc tion of alternative 
sentencing and a probation system.  
Nonetheless, penitentiary centres continue operating permanently above capacity and overall 
conditions remain below standards, especially in some of the older prison s, pre-trial detention 
centres and police stations. Further efforts are needed to reach intern ational and European 
standards in the treatment of persons deprived of their liberty. In this respect, inspections of the activity of penitentiary institutions need to  be further strengthened and the training system 
for prison officers further developed. Also, the ex cessive use and length of pre-trial detention 
is worrying, especially in the case of juvenile  offenders. Access to adequate medical services, 
particularly psychological and psyc hiatric care, is not always ava ilable. Measures need to be 
EN 26  EN taken for the appropriate treatment of detain ees with mental health disorders and their 
placement in an adequate psychiatric institution needs to be ensured.  
Albania has taken measures to combat torture and ill-treatment by the police and prison 
staff, and to prosecute perpetrators. The country  is party to the UN C onvention against torture 
and other cruel, inhuman or degrading treatmen t or punishment and its optional protocol and 
it ratified the European Convention for the prev ention of torture and inhuman or degrading 
treatment or punishment in 1996. Following recommendations by the Ombudsman, a legal definition of the crime of torture was included in the Criminal Code (Article 86). Internal 
controls have been introduced within the prison system to prevent and detect cases of 
excessive use of force. Capacity-building training  sessions have been de livered to prison staff, 
in cooperation with NGOs. In June 2010 the Di rectorate General for Prisons renewed the 
memorandum signed with certain NGOs granting them access to penitentiary institutions.  
The National Prevention Mechanism, created  in 2008 within the Ombudsman’s Office, is 
responsible for monitoring places  of detention and treatment of  persons deprived of their 
liberty. The Ombudsman has competence over places of detention and pre- trial detention but 
also military bases, hospitals for quarantine, transit halls of airports and psychiatric facilities. However, the Office is underfunded and does not  have the necessary social, forensic, 
psychological and psychiatric expertise, whic h is often offered by NGOs. The issue of ill-
treatment remains a concern as cases of physical  and psychological ill-tre atment are still being 
reported, in particular in police custody. Despite increased visibili ty, such cases are still often 
resolved with administrative rather than penal sa nctions. Further measures need to be taken to 
implement recommendations of the Ombudsma n and of the European Committee for the 
Prevention of Torture.  
The Albanian government has adopted strategies  encompassing concrete measures regarding 
prevention of trafficking in human beings , protection and assistance to victims, and 
prosecution of perpetrators. The Office of  the National Anti-tra fficking Coordinator 
implements the strategy, and works to increas e public awareness in order to prevent people 
trafficking. Focus has been put on identification of victims and the functioning of the national 
victim referral mechanism. The government cooperates with NGOs for the provision of assistance to victims of tra fficking and provision of funds for NGO-run shelters. However, 
despite a decline in numbers, Albania still rema ins a country of origin for persons trafficked 
for sexual exploitation and forced labour. Internal  trafficking constitutes an issue of serious 
concern. Improved coordination among relevant au thorities and intensif ied cooperation with 
NGOs is needed to increase detection and referr al of victims. The effective prosecution of 
perpetrators needs to be ensu red through the development of pr oactive investigation methods 
and safety guarantees for victims who testify in court proceedings.  
The right to privacy is guaranteed by the Constitution and the Criminal Code; protection of 
personal data  is ensured by the Law on the protection of personal information. Pursuant to 
this law, the Office of the Commissioner for Data Protection was set up with the aim of 
reviewing complaints related to  personal data. Implementation of the law needs consolidation. 
Freedom of expression (including the media)  is guaranteed by the Constitution and relevant 
laws. The media in Albania is pl uralistic and presents a high nu mber of different outlets. Most 
newspapers, radio- and TV-stations are concentrat ed in the capital, with some recent attempts 
at developing local media. Political influences  over the media and their use as propaganda 
tools by political parties or influential busines smen create conditions for biased reporting and 
self-censorship of journalists. The climate in which the media operates remains an issue of 
EN 27  EN concern as it impedes the development of ed itorial independence. Political and economic 
pressures and occasional threats, added to the informality of work contracts, and the lack of adequate education and traini ng, have a negative effect on professional standards.  
The courts’ application of disproportionate and sometimes selective fines against media 
outlets in cases involving politicians is an issu e of concern. Increased transparency regarding 
media ownership would clarify political and busin ess implication in the sector. Provisions on 
libel and defamation in the Criminal Code have  yet to be repealed. However, a moratorium 
called by the Prime Minister preventing government officials from filing lawsuits against 
journalists for defamation is respected. The i ndependence of the public broadcaster and the 
National Council on Radio and Television (NCRT) is insufficient.  
The Albanian Constitution and the Electoral Code guarantee the right to vote  and stand for 
election for all persons having reached the age of 18 years. Reforms of the Electoral Code 
have changed voter identification rules, introducing the obligation to present an identity card or a valid passport rather than a birth certificate. Delays in the delivery of identity cards impeded some citizens from exercising their right to vote during the last parliamentary 
elections. The lack of civil registration of  many persons belonging to the Roma minority 
prevents them from participati ng in the democratic process. 
As regards freedom of assembly and association , the Constitution and legislation provide 
for the right to organise collec tively for any lawful purpose. Ci vil society actors operate in a 
non-restrictive environment and re gistration of new organisations  is not impeded by the state 
authorities. Progress has been made on buildi ng networks of organi sations dealing with 
domestic violence, Roma, child trafficking, le sbian, gay, bisexual and transgendered persons 
and people with disabilities, among others. Howe ver, notwithstanding the enhanced visibility 
of some civil society organisations , the sector still remains relatively weak, suffering from 
insufficient technical and fi nancial resources and depende nce on international donor 
assistance. Only a limited number of NGOs have  strong organisational capacity and most lack 
solid management structures.  
Despite the adoption of the Charter for Civ il Society, involvement of civil society 
organisations in policy making and parliamentary hearings and consultations is limited, thus 
undermining their counterbalancing power and role in democratic scrutiny. Civic engagement 
of the Albanian public remains limited and NGOs  are sometimes regarded with mistrust. The 
fiscal regulatory framework for
 non-profit organisations needs to be further clarified through a 
consultative process with all rele vant stakeholders. An Agency fo r the support of civil society 
tasked to allocate state funding to non-profit orga nisations has been established and the first 
call for proposals has been launched.  
Freedom of religion  is constitutionally guaranteed in Al bania. Interfaith relations are based 
on mutual respect and tolerance. Although Albani a has no official stat e religion, the largest 
religious communities (Sunni, Bektashi, Orth odox and Roman Catholic) enjoy a greater 
degree of official recognition (prioritised restit ution of property, tax exemptions) than other 
religious groups. Agreements regulating thei r relations have been  signed between the 
government and the main religious communities,  thus granting them access to state funding. 
Substantial efforts are needed to resolve th e issue of restitution of property belonging to 
religious communities. 
Economic and social rights 
EN 28  EN As regards anti-discrimination policies , Albania adopted a La w on protection from 
discrimination in February 2010. This law was dr afted in cooperation with the international 
community and civil society; it regulates the im plementation and enforcement of the principle 
of equal treatment in connection with a non-e xhaustive list of grounds including gender, race, 
disability and sexual orientation. The law also pr ovides for the establishment of the Office of 
the Commissioner for Prot ection from Discrimination (see above) . The Albanian Criminal 
Code provides that hate-based motivation of an offence constitutes a specific aggravating factor. Lesbian, gay, bisexual a nd transgendered persons (LGBT)  are protected under the new 
anti-discrimination legislation. However, despite increased awar eness of LGBT issues and the 
emergence of a community supported by NGOs, discrimination and intolerance remain widespread. There have been cases of violen ce, particularly targeting the transgender 
community. Respect for the fundamental rights and freedoms of LGBT people needs to be 
guaranteed by the authorities, in particul ar the Commissioner for Protection from 
Discrimination. 
As regards women’s rights , Albania has taken significant meas ures to strengthen the legal 
and institutional framework on gender equality a nd fighting domestic vi olence. Albania is 
party to the UN Convention on the elimination of all forms of discrimination against women. 
A national strategy on gender equality and the er adication of domestic violence was adopted 
for 2007-2010. A National Council on Gender Equality  was set up, as well as a network of 
gender equality employees in line ministri es and municipalities. A new mechanism for 
monitoring and evaluation of ge nder equality and violence against women, set out in adopted 
instructions of the Ministry of  labour, social affairs and equa l opportunities, will provide for 
the collection of disaggregated data and follo w the effective implementation of the Law on 
gender equality in society. A 30% gender quota has been introduced by this law and the 
Electoral Code, in order to boost participation of women in politics. The implementation of 
this quota is verified by th e Central Electoral Commission. In  the last general elections, 
although the main parties followed the letter of  the law, in many cases its spirit was not 
respected as women were relegated to unelectable positions. Despite these shortcomings, these legislative changes led to an increase in the number of women in parliament (from 
around 7% to 16%).  
Nonetheless, women are severely under-represe nted in parliament, top government posts and 
in decision-making positions in the local ad ministration and public undertakings. Women 
continue to be discriminated against in terms of access to employment, education and property. This is due in particular to insuffici ent allocation of human, technical and financial 
resources for effective implementation of laws and strategies. The gender wage gap needs to 
be addressed, notably through improved oversight  by the Labour Inspectorate. Further efforts 
are needed to promote the economic security and empowerment of women. Gender mainstreaming at all levels of the educationa l system is essential to change traditional 
attitudes and raise awar eness of women’s rights.   
Domestic violence is a persistent phenomenon th at affects numerous fa milies in Albania and 
is an issue of serious concer n. The introduction of the Law on measures against violence in 
family relations and the related strategy led to significant increases in the number of incidents 
being reported to the police and protection orde rs being delivered. Special units for dealing 
with such cases have been set up in police st ations at regional leve l and many police, court 
and other officials have received training on th e issue of domestic violence. However, cases 
continue to be largely under- reported and insufficiently i nvestigated and prosecuted, 
especially in rural areas. Relatively few compla ints lead to criminal prosecutions, as it is 
EN 29  EN generally the duty of the vic tim to initiate th is procedure. The duty only falls upon the 
prosecutor to initiate a prosecution in cases that resu lt in death, serious injury  or threats to life.  
The protection of women and other victims ag ainst all forms of violence needs to be 
considerably strengthened. Victims' access to ju stice needs to be guaranteed, in particular 
through granting of free legal assistance, as pr ovided for in the amendments to the Law on 
measures against violence in family relati ons. Enforcement of protection orders through 
allocation of additional resources and training for police officers on the handling of such cases 
is necessary. Coordination of the state author ities and other stake holders dealing with 
domestic violence cases, including civil soci ety organisations, needs to be enhanced, in 
particular through provision of public funds fo r NGO-run shelters in regions. Allocation of 
appropriate resources for the management of th e new national centre for rehabilitation of 
victims of domestic violence is key to ensure pr otection of victims. Social reintegration of 
victims requires increased atten tion, including thr ough the allocation of public resources for 
training, employment and access to long-term housing for abused women. 
Albania has ratified the relevant international conventions relating to children’s rights . The 
national strategy for children 2006-2010 aims  to fulfil the obligations under the UN 
Convention on the Rights of the Child. A national strategy for the fight against trafficking in 
children adopted in July 2008 supplements the national strategy against human trafficking. 
Child Rights Units are progressively being esta blished in all 12 Regional Councils and Child 
Protection Units exist in 15 loca l government units to promote and monitor children’s rights. 
The Law on civil status removes the 45-day d eadline for registration of births which has 
resulted in a temporary decline in the number of unregistered children, in particular Roma. 
Albania adopted a foster care strategy in 2008 ai med at the de-institutio nalisation of children 
without parental care. The juve nile justice system has been  reformed, including through 
implementing alternatives to detention for juve nile offenders, setting up new court sections 
and building a new detention centr e for juveniles in Kavaja.  
Despite these achievements a num ber of issues of concern re main. Albania still lacks a 
functional child protection system at national level. The adoption of an integral law on 
children’s rights establishing a national referr al mechanism will be essential for further 
progress in this area. Allocation of sufficient res ources at central and local level is essential to 
ensure comprehensive social protection for familie s. There is no system of child allowances in 
place. Shelter for children in need, notably those above the age of 15, is mostly being 
provided by NGOs. Street children and child lab our are issues of particular concern requiring 
more systematic attention from the authorities.  The lack of civil re gistration and low school 
enrolment make Roma children particularly vulne rable to human traffick ing and child labour. 
Support for families and identification of children at  risk of losing parental care are crucial to 
avoid children entering care. Violence against ch ildren in Albania is an issue of concern. Due 
to delays in the judicial pro cess, many juvenile offenders sp end their entire sentence in pre-
trial detention, thus breaching the principle that detention of child ren pending trial should be a 
measure of last resort. The Albanian juvenile justice system does not include provisions for 
children under the age of crim inal responsibility, set at 14. 
Governmental expenditure for education  in Albania is insufficient and recent cuts are a cause 
for concern. Albanian legisl ation provides for 9 years of compulsory education. School 
infrastructure remains below standard, with a substantial number of schools still lacking 
sanitation facilities and heating sy stems. Despite efforts to tackle  it, corruption co ntinues to be 
an issue in the educational system.  
EN 30  EN The situation of the socially vulnerable and persons with disabilities  in Albania is still 
problematic. Living conditions ha ve improved, poverty levels ha ve steadily decreased, and 
considerable measures have been taken toward s implementation of the cross-cutting social 
inclusion strategy for the period 2007-2013. Howe ver, due to limited financial and human 
resources, government structures at central and local level are s till not fully able to respond to 
the needs of marginalised a nd vulnerable groups. Although a sy stem of economic aid intended 
to support the poorer sections of the popula tion was set up by the Law on economic aid, the 
mechanism needs revising, in order to target not  only households but also individuals in need 
and to expand the categories of women eligible to be ‘heads of households’.  
Albania signed the UN Convention on the Rights of Persons with Disabilities in December 
2009. The government has started reviewing the nati onal legislation in this  field with a view 
to its ratification. The legislativ e framework still has some gaps which need to be remedied 
through a participatory and transp arent process focusing on the n eeds of disabled persons. The 
national strategy on persons with disabilities  adopted for the period 2004-2014 and aimed at 
improving living conditions through accessibili ty, support services, employment and 
education, is insufficiently implemented. The special legal status awarded to the blind, 
paraplegic, tetraplegic and work invalids, in the absence of an integral law covering all 
categories of disabled persons, leads to co ncerns over the risk of discrimination and 
differentiated treatment. Lim ited measures exist to support disabled persons; however, the 
means available are still insufficient. Persons with disabilities suffe r from insufficient and 
inadequate health, education, so cial and employment services, lead ing to a heightened risk of 
social exclusion. Children are often educated in special institutions because of the lack of capacity of the educational system  to integrate learners with di sabilities, thus denying them 
the right to inclusive e ducation. The level of inclusion of persons with disabilities in the 
labour market remains very low, and quotas introduced by the Law on employment promotion 
are generally not enforced.  
As regards mental health, Albani a has launched a process of de -institutionalisation of persons 
with mental disabilities and started develo ping community-based care homes. Appropriate 
regulation of admission to psychiatric institution s and monitoring of pati ents’ situations need 
to be addressed by the Albanian authorities. Further action is required to improve conditions 
in institutional healthcare settings, including access to educational facilities. Appropriate 
accommodation in adequate forensic psychiatri c facilities for offenders with mental 
disabilities is necessary.  
Albania has ratified the 8 core labour rights  conventions of the International Labour 
Organisation (ILO), as well as the revised Eur opean Social Charter. The right to create 
independent trade unions  and employer associations is guara nteed. Yet the large scale of the 
informal economy means that thes e organisations are st ill weak. Social dial ogue is still at an 
early stage and needs to be reinforced. The Labour Code r ecognises the right to bargain 
collectively at enterprise and se ctor level, but effective collective bargaining remains difficult 
and agreements are hard to enforce. Strengt hening of the mandate of the National Labour 
Council, as the main tripartite  consultation body, is needed. Th e Law on trade unions’ assets 
nationalising the proper ties inherited from the former Communist union, while approved by 
parliament, was finally overturned by the C onstitutional Court in Ap ril 2010. The conditions 
for prohibiting the right to strike  for civil servants need to be amended in order to comply 
with international commitments.  Despite the ratification of ILO conventions on minimum age 
and on the worst forms of child labour, employme nt of children remains an issue of serious 
concern, as a number of children leave school to work, sometimes in dangerous conditions. 
EN 31  EN Labour inspections need to be stepped up to fight this trend. (See also Chapter 19 — Social 
policy and employment)  
Since the fall of Communism in the early 1990s, Albania has undergone  a significant reform 
process concerning  property rights . These include the re-establishment of private immovable 
property, the reintroduct ion of civil law principles and tr ansactions and the acknowledgement 
of ownership rights of those that had b een unjustly expropria ted during Communism. 
Legislative and institutional measures were taken in three main interrelated areas: property 
registration, restitution and compensation, and legalisation. A number of laws were passed 
such as the Law on registrati on of immovable properties in 1994 (last amended in 2007), the 
Law on the verification of the legal validity of  property titles on arable land in 2008, the Law 
on restitution and compensation of property in 2004 (initial law of 1993), and the Law on 
legalisation, urban planning and integration of informal build ings in 2006 (initial law of 
2004). The Immovable Property Registration O ffice was established to undertake initial 
property registration across the country. The Pr operty Restitution and Compensation Agency 
was set up to prepare the restitution of expr opriated land and property and to provide 
compensation in case restitution is not possibl e. The Agency for legalisation of informal 
zones was established as the coordinati ng body for issuing legalisation permits.  
However, legislation was often developed in a piecemeal and uncoordinated manner, leading 
to a very complex legal framework often chal lenged for its legitimacy and fairness by people 
concerned. The property issue remains unresolve d. Difficulties include an artificially high 
number of agencies operating in an uncoor dinated, often inefficient and sometimes 
overlapping way, an improperly functioning land registry system in addition to widespread 
corruption. 
Albania’s courts suffer from a backlog of prope rty disputes that ofte n go through all instances, 
sometimes several times. The ensuing systemic  problem of the non-enforcement of final 
domestic judgments and administrative decisi ons ordering restitution of properties or 
compensation of former owners is of serious  concern. Cases relating to a breach of the 
principle of due process in prope rty disputes constitute the larg est amount of petitions to the 
European Court of Human Rights against Albania.  The lack of enforcement, especially of 
claims against the state, is particularly worrying. These are, among other things, caused by the inefficiency of the bailiffs in enforcing cour t decisions, the lack of necessary funds and the 
lack of an effective remedy system. 
The situation in Albania has reached a level of complexity which in some cases puts the 
principle of respect for human rights into question. Chronicall y unresolved disputes and legal 
uncertainty over title to land hinder economic a nd land market development, hamper foreign 
investment, undermine citizens’ confiden ce in democracy and tie up courts.  
Albania needs to tackle the manifold problems in the ailing immovable property sector as a 
matter of urgency. These problems require a co mprehensive approach and strong political 
support in order to improve the current situ ation by meeting constitutional requirements and 
those of public internatio nal law, and balancing interests and needs of different  interest groups 
in society aimed at preventing conflicts and so cial unrest in the long run. Clear property titles 
and legal certainty are essential prerequisites for prosper ous development of the country and 
attracting foreign investment.  
Respect for and protection of minorities, cultural rights 
EN 32  EN The Constitution provides for the protection of the civil, economi c, social and political rights 
of minorities . Albania has no specific framework law on minorities. The country historically 
defines minority groups in its territo ry as three "national" (Greek, Macedonian  and 
Montenegrin) that have a kin state, and tw o "ethno-linguistic" minorities (Aromanian and 
Roma). There is officially no distinction in a ccess to rights for persons of national and ethno-
linguistic minorities, however, th ere is differentiation in practice, notably as regards access to 
public education in minority la nguages. Clarification of the distinction between different 
national and ethno-linguistic mi norities would help avoid differentiated treatment for the 
persons belonging to the latte r category. The Egyptian commun ity seeks recognition as an 
ethno-linguistic minority and th e Bosniak community as a na tional minority. Inter-ethnic 
relations are generally good, although there has r ecently been a violent incident leading to the 
death of a Greek-speaking Alba nian citizen in Himara that  is under investigation by the 
authorities.  
There is a lack of accurate data on minorities in  Albania. This situation is expected to be 
addressed by the conduct of a population censu s in 2011, respecting international standards 
including the principle of free self-identifica tion. This census will include optional questions 
on the ethnic origin, religious affiliation and mother tongue of respondents. Establishing 
updated statistical data is important for the development of appropria te minority policies. 
Albania has ratified the Council of Europe’s  Framework Convention for the Protection of 
National Minorities but has not adopted the European Charter for regional or minority 
languages. Albanian legislation pr ovides for the rights of nati onal minorities to be respected 
throughout the entire territory. Agreements ha ve been signed at local level in some 
municipalities to display local names in minor ity languages; however, the implementation of 
these agreements is not always consistent. Th e availability of minor ity language education 
needs to be enhanced and rigi d regulatory provisions for access to it removed. Albania needs 
to ensure members of all minorities enjoy full access to their rights, taking into account the 
recommendations of the Advisory Committ ee of the Framework Convention for the 
Protection of National Minorities. 
The State Committee for Minorities,  under the authority of the Prim e Minister, is tasked with 
making recommendations to the government on measures related to minority groups. The 
Committee is composed of representatives of the five recognised minorities. Its chairperson is 
selected by the Prime Minister. The institutional capacity of the Committee remains weak and its performance as an effective advisory body can be questioned. The Albanian authorities 
need to ensure that the Committee has the necessary financial and human resources to 
effectively perform its tasks. The level of repr esentation of persons bel onging to minorities in 
public administration and politics needs to be enhanced.  
As regards the Roma , a national strategy to improve Roma  living conditions was adopted in 
2003 and is being implemented by the Minist ry of Labour, Social Affairs and Equal 
Opportunities. In 2008 Albania joined the Decade of Roma Inclusion 2005-2015 and adopted a national action plan focusing on education, employment and so cial protection, housing and 
infrastructure, health, social  inclusion and equal opportuniti es, and cultural heritage. 
Nevertheless, the Roma community constitu tes the most vulnerable minority group in 
Albania, facing widespread poverty, soci oeconomic marginalisation and frequent 
discrimination, particularly regarding access to education, social protection, health, 
employment and adequate housing. Implementati on of the national strategy has been slow, 
due to insufficient human and financial resources , inadequate coordinatio n of all institutions 
involved at local and central level, and de ficiencies in the m onitoring and evaluation 
mechanisms.  
EN 33  EN A registration campaign took place in 2009 to pr ovide ID cards to citi zens, including Roma. 
However, many Roma still lack civil regist ration, thus impeding the exercise of their 
fundamental rights. Access to health for this mi nority group is particularly problematic, and a 
number of Roma suffer from diseases associ ated with poverty. Many Roma live in poor 
conditions in settlements lacking basic sanitary  infrastructure. Although steps have been taken 
to favour inclusion of Roma in the school syst em, in particular thr ough the creation of pre-
school classes to enhance their knowledge of the Albanian language, school enrolment of 
Roma remains insufficient and th e drop-out rate high. Participa tion of the Roma minority in 
political and public life remains marginal, even at local level.  
Overall , a legal framework on human rights and re spect for and protecti on of minorities is 
largely in place and broadly corresponds to Eur opean standards. However, its implementation 
remains insufficient in a number of areas. The institutional framework is adequate but its appropriate functioning needs to be ensured. As regards civil and political rights in particular, 
access to justice for vulnerable groups needs to be ensured, ill-treatment in police custody and 
the situation of mentally ill prisoners ne ed to be addressed, and independence and 
transparency in the media sector increased. In the field of economic  and social rights, 
appropriate resources need to  be allocated for implementi ng the Law on protection against 
discrimination, a framework law on children’s right s needs to be adopted, the legal framework 
for persons with disabilities enhanced, and the existing strategies for gender equality and 
fighting domestic violence need  to be effectively implemen ted. Overlapping legislation and 
the resulting lack of legal certainty, unenforced court decisions and risks of corruption in the 
area of property rights need to be urgently  addressed. Respect fo r, and protection of, 
minorities needs to be enhanced through impr oved visibility of the State Committee for 
Minorities and increased access to minority la nguage education. Proper implementation of 
strategies and action plans pertaining to the Roma minority is necessary to improve their 
living conditions and facilitate th eir integration into society.  
1.3. Regional issues and international obligations 
The Parliamentary Assembly of the Council of Europe  has monitored Albania’s fulfilment of 
its membership obligations since 1995 and ha s recently closely followed developments 
relating to the political situation in the country. 
Regional cooperation  and good neighbourly relations  form an essential part of Albania’s 
process of moving towards the European Uni on. Albania actively takes part in regional 
initiatives, including the S outh East European Cooperation Process (SEECP), the Regional 
Cooperation Council (RCC), the Central Eur opean Free Trade Agreement (CEFTA), the 
Energy Community Treaty (ECT) and the Eu ropean Common Aviation Area Agreement. 
Albania is currently chairing the Migration, As ylum, Refugees Regional Initiative (MARRI).  
Concerning international judicial  cooperation in civil and crim inal matters, Albania concluded 
bilateral agreements w ith several neighbouring countries an d other countries in the region. 
Albania concluded bilateral agre ements on legal assistance in ci vil and criminal matters with 
Greece, the former Yugoslav Republic of Mace donia and Italy. Albania is a party to the 
European Convention on mutual legal assist ance in criminal matters and cooperates 
satisfactorily at regional and in ternational level. Albania c oncluded agreements on mutual 
enforcement of court decisions in criminal matters with Greece a nd the former Yugoslav 
Republic of Macedonia. A Law on jurisdiction al cooperation with fo reign authorities in 
criminal matters was adopted in December 2009. Albania is actively participating in regional 
police cooperation, either bilaterally or through  Europol and Interpol. Cooperation agreements 
EN 34  EN in the fight against organized crime, traffickin g of human beings, traffi cking of narcotics and 
terrorism were signed with Bosnia and Herze govina, Croatia, the former Yugoslav Republic 
of Macedonia, Montenegro and Serbia. Joint in ternational counter-narco tics operations have 
been successfully conducte d, notably with Italy. 
As regards extradition, according to the Constit ution, no Albanian citizen may be expelled 
from the territory of the State. Extradition may be permitted only when it is expressly 
provided for in international agreements, to which Albania is a party and only by judicial 
decision. The extradition procedures followed are pursuant to the 1957 European Convention 
on Extradition, as ratified, as we ll as bilateral agreem ents with effect on the field, with Greece 
and with the former Yugoslav Republic of Mace donia. The bilateral agreements with Croatia 
and Bosnia  and Herzegovina are de facto  not implemented  because both these countries are 
parties to the Convention on extradition procedures.   
Albania has very good bilateral relations with other enlargement countries and 
neighbouring EU Member States.   
Relations with Serbia  are constructive. Regardless of the se rious disagreement over the status 
of Kosovo, bilateral relations have normalised . In March 2010, the Albanian Minister of 
Foreign Affairs visited Belgrade for the ve ry first time since Kosovo’s declaration of 
independence and signed seve ral important bilateral agr eements, including on police 
cooperation. In April 2010 Albani a unilaterally lifted visa requi rements for Serbian citizens.  
Albania has good relations with the former Yugoslav Republic of Macedonia . Albania 
supports that country’s accession to NATO and has been supportive towards its integrity and ethnic stability. Albania has encouraged dialogue between different ethnic communities during meetings with Albanian political leaders from Skopje. 
Albania has traditionally very good relations with Kosovo  and was among the first to 
recognise its independence. Albania has activ ely backed Kosovo’s recognition within the 
Organisation of the Islamic Conference (OIC ) and recently sponsored the adoption of a 
resolution in support of the efforts undertaken by Kosovo for the establishment of peaceful 
and democratic institutions. Se veral agreements are in plac e for bilateral cooperation, 
including on border and police cooperation and the most recent ones regarding cooperation in 
the fields of education and science.  
Albania has established ve ry close relations with  Montenegro . A joint border crossing point, 
the first in the region, was recently opened in Muriqan and a number of agreements on border 
and police cooperation were signed.  
Relations with Bosnia and Herzegovina  have developed positively.  In November 2009, the 
visa-free regime with Bosnia and Herzegovina  entered into force and in February 2010 
parliament ratified the agreement between the two countries on the readmission of irregular 
migrants.  
Albania has good relations with Croatia.  Political dialogue has strong ly developed over recent 
years and has witnessed a partic ularly qualitative increase as a resu lt of both countries' 
accession to NATO in April 2009. Cooperation is  marked by a high number of bilateral 
agreements in fields such as economic and investment development and security. 
Relations with  Italy are very good. A large part of the Al banian diaspora lives in Italy. The 
two governments have established very close re lations and Italy strong ly supports Albania’s 
EN 35  EN EU integration efforts. Italy is the main tr ade partner and one of the main investors in 
Albania. On 12 February 2010, Italy and Albani a signed a strategic partnership agreement 
which provides that both countries will cooper ate on the implementation of joint projects 
including nuclear en ergy projects.  
Relations with Greece  are very good. Greece is a strong s upporter of Albania’s efforts for 
European integration. The two countries cooperate closely in many sectors. The main 
institutional basis for this cooperation is  the 1996 Agreement on friendship, cooperation, good 
neighbourliness and security. The Albanian C onstitutional Court judgment in January 2010 to 
annul the maritime border pact between the two c ountries has not affected bilateral relations. 
Greece is the main investor in Albania and the se cond largest trade partner. A large part of the 
Albanian diaspora lives in Greece. 
Albania maintains the 2003 bila teral immunity agreement with  the United States, granting 
exemptions from the jurisdiction of the International Criminal Court . This does not comply 
with the EU Common Position on the integrity of  the Rome Statute or with the related EU 
guiding principles on bilateral immunity agreements. Albania needs to align with the EU 
position . 
Overall , Albania generally satisfies the Stabilisation and Association Process  conditions for 
regional cooperation. The country is strongly committed to regional co operation; it plays a 
constructive regional role and participates actively in regional initiatives. 
1.4. General Evaluation 
The present assessment is made on the basis of th e Copenhagen criteria related to the stability 
of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities and the conditionality of the Stabilisation and Association Process. 
Albania is a parliamentary democracy  based on a constitutional and legislative framework, 
which is largely in line with European principl es and standards. There is a general consensus 
on the goal of EU membership. Yet, the effectiveness and stability of democratic institutions 
is not sufficiently achieved. Parliamentary institutions and procedures do not function 
properly. As a result, parliament does not exer cise effective oversight  and control over the 
government and its scrutiny of legislative de velopment is weak. Political dialogue is 
confrontational and unconstructive,  not least because of the political stalemate since the June 
2009 elections. This obstructs pa rliamentary work and preven ts necessary policy reforms 
based on consensus. The government together with the opposition share the responsibility for reaching, in a transparent way and in full respect of the constitu tion, solutions needed for the 
country to move forward on its EU  integration path. In addition, there are shortcomings in the 
implementation of legislation. The public admi nistration's legal framework and the civil 
service system are mostly in line with Eur opean standards and practices. However, proper 
implementation of the legal framework is a concer n, and the public service is very politicised, 
lacks transparency in appointments and is  marked by high turn-over of staff.  
The June 2009 legislative elections were as sessed by the OSCE-ODIHR as meeting most 
international standards and as  being an improvement over past practices. However, 
shortcomings were identified and a number of recommendations were made for future elections including addressing the politicisati on of processes such as the vote count. 
Recommendations have not yet b een translated into a satisfactory electoral reform, which is 
needed for upcoming elections. 
EN 36  EN Albania has in recent years strengthened rule of law , in particular by conducting legislative 
and institutional reforms of the judiciary and in  the areas of the fight against corruption and 
organised crime. Administrati ve capacity notably of law enforcement bodies has been 
strengthened. However, reforms remain incomplete, there are substantial shortcomings regarding the independence,  transparency and accountability of  the judicial system and a solid 
track record of effective fight against corruption and organised crime is missing. 
The reform process of the judiciary is on-goi ng. However, a comprehensive and coordinated 
judiciary reform strategy is pending as is the adoption of key laws including on the 
administrative courts and the organisation of th e High Council of Justice. Serious concerns 
remain on the overall functioning, the efficiency a nd independence of the judiciary. There is a 
lack of transparency in the appointment, promotion, transfer and evaluation of judges and 
there are considerable weaknesse s in the inspection sy stem of the judiciary. The cases of non-
respect of Constitutional Court decisions by gover nment in recent years and the politicisation 
of the vote on the President's Constitutional an d High Court appointments are of concern as 
they challenge fundamental principles such as the independence of the judiciary and the 
respect for the rule of law. Human and financial resources, as well as infrastructure conditions, are not adequate and need to be im proved to ensure the efficient functioning of 
courts. 
Albania has made efforts over recent years to es tablish a legal and institutional framework to 
fight corruption, which is now broadly in place. Despite these efforts, corruption is prevalent 
in many areas and constitutes a particularly se rious problem. Areas of particular concern are 
corruption in the judiciary and in relation to the system of restitution and compensation of 
property rights, and widespread bribery in the health sector. Absence of transparency in 
political party funding, allowing inappropriate  influence on politics, is a considerable 
problem. Albania needs to complete the lega l framework in the field of fight against 
corruption and to address obstacles to effective investigations notably of  judges, ministers and 
MPs related to the unlimited immunity of these public officials. Thorough implementation of 
the anti-corruption strategy and action plan need s to be ensured and a solid track record of 
pro-active investigations and prosecutions as  well as of conclusi ve indictments and 
convictions in corruption cases  at all levels established. 
In the area of the fight against organised crim e, Albania has establis hed a legislative and 
institutional framework which is largely adequate. Reform of law enforcements authorities, as 
well as their adequate resources and equipm ent contributed to counter this phenomenon. 
However, effective implementation of new legislation and the pr ofessionalism of new 
structures and systems need to further be proven in practice. Pr oactive investigation needs to 
be ensured and cases that have been successfully investigated need to be followed by convictions. Activities of orga nised crime groups in Albania, having impact outside of the 
country remain an issue of serious concer n. Further strengthening of cooperation at the 
international level is necessary, including in particular with neighbouring countries. 
The Albanian legal and policy framework regulating human rights  and the respect for and 
protection of minorities  is largely in place and broa dly corresponds to European and 
international standards. The institutional fram ework is adequate. However, there are some 
gaps in the legislation and implementation of existing strategies and action plans. Awareness 
and sensitivity to human rights' standards on th e part of the administration, the judiciary and 
law enforcement authorities need to be reinforced.  
EN 37  EN Human rights are broadly respected in Albania. However, some concerns remain. Restitution, 
legalisation and compensation of property is governed by piecemeal legislation and many 
agencies with overlapping competencies, reaching a level of complexity that puts at risk the 
effective enjoyment of human rights in this  area. There are seve ral judgements against 
Albania in the European Court of Human Rights for breach of the princi ple of due process in 
this field. Another serious co ncern relates to de tention conditions and the treatment of 
detained persons in police stations, pre-trial detention and prisons. Media independence is put 
at risk by the prevalence of political influences  and business interests. Domestic violence is a 
persistent phenomenon which affects numerous families and is not systematically addressed. The anti-discrimination legal and institutional framework has been substantially improved, 
notably with the creation of the Office of the Commissioner for Protection from 
Discrimination. However, Roma, persons with  disabilities and lesb ian, gay, bisexual and 
transgendered persons are still subject to discrimination. Gender equality is not fully guaranteed in practice, in particular in the field of employment a nd access to economic aid. 
There are some gaps in the legislation governin g human rights, notably since an integral law 
on children's rights is yet to be adopted. Add itionally, the operation of  national human rights 
institutions is hampered by the delays in a ppointment of a new Ombudsman, which is pending 
since early 2010.  
Although Albania has no framework law on mi norities, respect for and protection of 
minorities are broadly guaranteed. In practice, specific rights of three "national" and two 
"ethno-linguistic" minori ties, as defined by the country, ar e recognised. However, there are 
inconsistencies in the applica tion of these rights. The lack of accurate data on minorities 
impedes the development of appropriate policies.  This is expected to be addressed by the 
conduct of the next population census in 2011 in lin e with international standards. The level 
of representation of persons be longing to minorities in public administration and politics 
needs to be enhanced. The existing policy fram ework for improving the lives of the Roma is 
insufficiently implemented. The Roma minority  faces very difficult living conditions and 
limited access to employment, education and social services.  
Albania broadly satisfies the Stabilisation and Association Process  conditions. The country 
is strongly committed to regional cooperation;  it plays a constructive regional role and 
participates actively in regiona l initiatives. Bilateral relatio ns with neighbours are overall 
good. Albania is a party to the Rome Statute. However the country ratified a bilateral 
immunity agreement with the United States rega rding the International Criminal Court which 
does not comply with the rele vant EU Common Pos itions and guiding principles. The country 
needs to align with the EU position.  
2. E
CONOMIC CRITERIA  
In 1993, the European Council in Copenhagen set the following economic criteria for 
accession to the EU: 
- the existence of a functioning market economy; - the capacity to cope with competitive pr essure and market forces within the Union. 
These criteria are linked. A functioning market  economy will cope better with competitive 
pressure and, in the context of membership of the Union, the reference market is the internal 
market.  
EN 38  EN Following a brief overview of economic developments  and policies in a historical perspective, 
the report goes on to consider the extent to which Albania fu lfils the two ec onomic criteria 
established by the Copenha gen European Council. 
2.1. Economic developments 
Albania is a small and mountainous country , with a population of just over 3 million 
distributed on a territory of 28,750 square kilometres. The c ountry is well endowed with 
natural resources, mainly chrome, nickel, copper,  and small quantities of oil and coal. Albania 
enjoys a favourable climate for agriculture and t ourism and almost all of its electricity needs 
can be generated from hydropower sources. Albania has undergone a profound structural 
transformation over the past two decades, from a highly centrally planned to a free-market 
economy, which has resulted in high growth rate s. Average annual GDP growth was slightly 
more than 6% from 2000 to 2008, before slow ing down to just over  3% in 2009. Gross 
domestic product reached almost €9 billion (2009), or 0.07% of EU-27 GDP. Expressed in 
purchasing power standards, GDP per capita in 2009 amounted to €6,400, or 27.1% of the 
EU-27 average. Income disparities between Tirana, the capital, and the less developed 
mountain areas are signif icant, but declining, 
Macroeconomic background 
The first years of the transition that starte d in 1991 saw a drastic co ntraction in output, a 
ballooning budget deficit and inflation rising to triple digits. With the support of the 
international community, in 1993 the country  embarked on a programme to stabilise the 
economy that included fiscal cons olidation, tight mone tary targets and structural reforms. 
Progress towards macroeconomic stability was in terrupted in 1997 by the collapse of the so-
called pyramid schemes6 which had a significant adverse eff ect on the economy and gave rise 
to civil disorder. The opening of the country and the collapse of the pyramid schemes also 
resulted in mass emigration and workers remittan ces have become an important feature of the 
Albanian economy.  
In the aftermath of the pyramid schemes cris is, a new stabilisation programme was launched. 
This programme led to a notable improvement  in economic performance in 1998 and in 
subsequent years, underpi nned by gradual fiscal consolidation and a tight monetary policy. By 
2000, inflation had been brought down to single- digit levels. Macroeconomic stability has 
been broadly maintained since 2000 and steps ha ve been taken to inte grate Albania with the 
international economic system.  
Albania has undergone significant reforms aimed to enhance the quality of pub lic spending. 
Fiscal discipline improved during most of the 1990s in line with the various adjustment 
programmes. Since 2000, a medium-term budget programme, which consists of a rolling 
three-year expenditure plan, has been in place.  
In the first years of transition unemployment soared, reaching its peak at 23% in 1993. It was 
then slowly reduced mainly due to migration. In  the aftermath of the pyramid scheme crisis 
unemployment increased again. Since 1999 it has been progressively reduced, however, it 
remains high standing at 13.8% in 2009. 
                                                 
6 Investment arrangements whereby the money paid by the latest investors is used to pay artificially high 
interest to earlier investors 
EN 39  EN The moderate openness of the economy and the low level of integration of the financial 
system with the global market, together with the substantial, albeit  declining, share of 
agriculture have limited the impact of the globa l crisis on Albania. Macroeconomic policy has 
been instrumental in cushioning the effects of the turmoil. 
Structural change 
Since 1991, the economy has undergone a structural  transformation which has seen a decline 
in the dominance of industry and agriculture in favour of services and cons truction. Services 
are now the main driver of growth, accoun ting for around 54% of GDP. Manufacturing is 
characterised by a lack of diversification, both in terms of products exported and export 
markets. 
Privatisation featured high on the reform agenda from the early stages of transition. In the first 
stage, which started in 1991, sm all retail shops and other comm ercial services, agricultural 
land and housing were sold, mostly to th eir current employees. A mass privatisation 
programme to sell off large state-owned en terprises began in 1995 and proceeded with 
relative speed. Since 1999, around 340 public enterprise s have been partly or fully privatised 
through international tendering in strategic sectors. The share of the private sector is now 82% 
of GDP.  
Until 1991, prices at all levels of producti on were established by central planners. 
Comprehensive price liberalisation covering practically all consumer goods took place in 
1992 as part of the macroeconomic stabilisation and reform programmes. The authorities also 
adopted a policy of gradually freeing or raisin g some of the controll ed and administered 
prices to cost-recovery levels.  
In 1992, the authorities embarked on a programme  to establish a modern banking system. 
This was given a further impetus as a respons e to the pyramid scheme crisis. A new banking 
law was passed further strengthening the inde pendence of the Bank of Albania. Steps were 
also taken to improve banking supervision and introduce prudential regulations. In addition, a 
privatisation strategy was launched and the entry of new private banks encouraged. The 
reforms proved effective and led to an increase in formal private sector credit and a rise in the number of private banks. With full privatisatio n and the entry of inte rnational private banks, 
the banking sector has continued to develop in recent years.  
Significant progress, mainly in facilitating mark et entry, has led to an increase in foreign 
investment in recent years. However, it remains low by regional standards. This reflects a weak business climate which, among other thi ngs, suffers from incomplete recognition of 
property rights, shortcomings in the public ad ministration, weak enforcement of the law and 
bottlenecks in basic infrastructure, including as regards the reliability of power supply.  
2.2. Assessment in terms of the Copenhagen Criteria 
2.2.1.  The existence of a functioning market economy 
The existence of a functioning market economy requires that prices, as well as trade, are 
liberalised and that an enforceable legal sy stem, including property rights, is in place. 
Macroeconomic stability and consensus about economic policy enhance the performance of a market economy. A well-developed financial sect or and the absence of significant barriers to 
market entry and exit improve the efficiency of the economy.  
EN 40  EN Economic policy essentials 
Albania has implemented far-reaching market-ori ented changes, including price and trade 
liberalisation, privatisation and fiscal and mo netary reforms. These reforms have been 
supported, inter alia, by severa l financial and technical arra ngements with the EU, the IMF 
and the World Bank. There has b een over the years a consensus between the political parties 
about Albania’s integration with the EU. Overall, there is a broad domestic consensus on the 
fundamentals of economic policy. 
Macroeconomic stability 
Real GDP growth has been very strong since 1998, reflecting the continuation of resource re-
allocation from low to higher productivity sect ors. Consequently, Albania’s per capita GDP 
increased but remains very low. Private consumption remains the main component, 
representing some 80% of GDP, reflecting the significant boost given to household income by 
migrants' remittances. The role of remittances  in the development of the economy has been 
significant throughout the transition. Unlike most other countries, economic growth remained positive although decelerating to slightly above 3%  in 2009, owing to the impact of the global 
crisis. Overall, Albania has witnessed very strong ec onomic growth, exceeding 5% since 
1998, while economic activity slowed down but re mained positive in 2009 in spite of the 
global crisis.  
Since 2000, the current account deficit has been progressively rising, main ly due to a growing 
merchandise trade gap. It reached 15% of GDP in 2009. After posting a deficit between 2002 
and 2006, the services account tu rned into a surplus as expor ts — supported by a burgeoning 
tourism sector — increased rapi dly. Around half of the trade de ficit has traditionally been 
financed through current transfers from abroa d, amounting to approximately 13% of GDP in 
2009. A significant share of these transfers is accounted for by workers’ remittances which, 
after following an upward trend in the first half of the 2000s, have decl ined in the past few 
years. In the last decade, net capital inflows have broadly covered the current account deficit, 
contributing to higher foreign reserves. FDI, driv en by privatisation proceeds and representing 
around half of external financing, rose from  around 4% of GDP in 2000 to 7.6% in 2009. The 
high current account deficit represents a risk. In sufficient capital inflow s, specifically FDI, 
could lead to an abrupt adjustment with a ne gative feedback loop on the real economy and an 
adverse impact on public finances. Overall, the trade balance and the current account show 
significant and persistent deficits. 
The contribution of employment to GDP growth has been limited, partly due to unfavourable 
demographic shifts, a loss of skills spurred by mass emigration as well as a significant 
informal sector. Job growth was positive in the period 2002-08 but contracted in 2009 as a 
result of the crisis. Unemployment has been declining gradually along the years and stood at 
13.8% in 2009. The labour market is characterise d by a high inactivity rate, which in recent 
years stood at just below 40%. In formal work arrangements re main widespread across most 
economic activities notwithstanding several initiatives to tackle them, including a reduction in 
social contributions. High long-term unemplo yment, which accounts for around 65% of total 
jobseekers, is another characteri stic of the Albanian labour ma rket. Female participation and 
employment rates are significan tly lower than for males, while unemployment is higher. 
Although official labour market data comprise  a high degree of uncertainty, unemployment 
has remained persistently high reflecting the lo w education level, the outdated skills of the 
jobless and undeclared work, which help in  alleviating poverty but reduce job-search 
incentives.  Overall, the existence of widespread informal work arrangements continues to 
EN 41  EN severely distort the labour market whilst th e absence of reliable statistics hampers the 
analysis. Although declining, unemployment has remained stubbornly high.  
The Bank of Albania, a largel y independent institution, was mandated in 1997 to achieve and 
maintain price stability as a primary objective. Direct credit and administered interest rates 
were replaced in 2000 by repurchase agreements, which became the key policy instrument for 
controlling bank liquidity. In 2004, the Bank moved cl oser to an inflation targeting framework 
to achieve the price stability goal by keeping an inflation rate of 3%, w ithin a band of +/- 1 
percentage point. This publicly announced target  has been instrumental in anchoring inflation 
expectations.  
During the last decade, infla tion was brought progressively down and, except for 2002, was 
below 3%. Inflation started to pick up in Oc tober 2009, reflecting mostly the depreciation of 
the lek which raised import prices. It accelera ted in January and February 2010, primarily due 
to increases in administrative prices (water a nd electricity tariffs) but decelerated thereafter, 
reaching 3.4% in September. Overall, since 2003 annual inflation has remained below 3%, 
reflecting a monetary polic y conducive to a high le vel of price stability. 
The degree of euroisation in th e economy is high. The high in terest rate on lek-denominated 
loans, while essential for the stability of the currency, has resulted in more lending in foreign 
currencies. In July 2010, the share of forei gn-currency loans amounted to 70% of the total 
stock of loans, while their share of deposits was 48%. Such currency substitution places a constraint on the effectiveness of monetary policy. Furthermore, the high euroisation is a 
potential source of financial system instability since it may expose banks to currency risk. The 
BoA has taken prudential measures that have th e effect of encouraging borrowing in the local 
currency by, among other things, requesting banks  to weight foreign currency-denominated 
loans with an additional 50% when calculating capital adequacy ratios.
  
The weighted average interest rate spreads between loans and deposits are relatively wide, 
standing at about 8.4 percentage points for t hose denominated in lek, but have declined 
significantly during the past year s (from 16.5 percentage points in  the last quarter of 2000).  
Albania has established a loosely managed float as its exchange ra te regime with the value of 
the currency determined in the foreign exchange  market and interventions limited to softening 
sharp currency movements, while maintaining ad equate reserve cover. With the unfolding of 
the global crisis, the lek started to weaken a nd on average lost 7.5% of  its value against the 
euro in 2009. At the end of 2009, the BoA reserv es amounted to 4.3 months of imports of 
goods and services. Overall, monetary policy has been conduc ive to anchor inflationary 
expectations notwithstanding the important constraint placed on its effectiveness by the high 
euroisation.  
The government deficit which had followed a downward path until 2006, reached 7% of GDP 
in 2009. Until 2006, the overall improvement in the fiscal imbalance has been mainly 
expenditure-led, first relying on restraint of non-wage current spending and capital outlays 
while during the period 2000-05 the budgetary cons olidation reflected primarily lower interest 
payments. Total revenue only rose marginally in the period 2000-06, as the notable gains in 
direct and indirect taxe s were partially offset by lower fore ign project-related aid and customs 
duties, due to the alignment of tariffs with in ternational obligations. Th ereafter, following an 
increase in 2006-08, revenue dec lined in 2009 and stood at 26.2% of GDP as the government 
allowed the full play of automatic stabilisers, mostly through lower receipts from direct and 
indirect taxes, in the face of weakening econom ic performance. Total expenditure started to 
EN 42  EN rise in 2006, reaching 33.2% of GDP in 2009, driven mainly by higher capital spending — 
related to major road infrastruc ture projects — as well as an increase in the public service 
wage bill and pensions. This s uggests that a pro-cyclical stan ce, masked by tax-rich revenue 
in the boom period, started already in 2006 and contributed to aggravating the budgetary 
deficit and external imbalance, leading to re duced fiscal space in the post-crisis period. 
Overall, the public deficit has been brought down from  high levels but the trend was reversed 
in 2007-09, fed by pro-cyclical expend iture policies already as of 2006. 
The composition of government revenue remain ed practically unchanged during the period 
2000-09, with indirect tax revenue (VAT) represen ting the largest share (36.8% in 2009). As a 
result of the broadening of the tax base, the sh are of direct taxes (15.5% in 2009), particularly 
personal income tax, increased significantly over th is period, partly owi ng to the lowering of 
statutory tax rates to 10% and the establis hment of reference salaries and reference 
employment in 2008. While these measures help  to reduce tax evas ion, a fully-fledged tax 
compliance system is still lacking. Reforms over the years have led to improvements in the tax administration. However, gaps in term s of both revenue collection and continued 
administrative changes remain. In addition, corrup tion in tax and custom collection, as well as 
weak law enforcement, allow businesses to oper ate in the informal sector, which in turn 
results in a narrow tax base. The management of local government finances remains poor, resulting in low revenue collection (small busin ess, property and local taxes for which they 
are responsible account for some  4% of total government re venue), and limited spending. The 
structure of total expenditure is dominated by current transfers (30% ) and capital outlays 
(29%). Compensation of employees followe d a rising trend over the period 2000-09, now 
representing roughly a fifth of to tal spending. Interest payments declined progres sively, due to 
both lower interest rates and public sector bo rrowing requirements, but still represent some 
9.5% of total expenditure and therefore continue to crowd out primary spending. Overall , 
weak institutions and a large informal sector have resulted in a narrow tax base which 
constrains fiscal receipts, despite va rious measures in the past years. 
The fiscal consolidation brought about a decline in public debt, from 61% of GDP in 2000 to 
54.3% in 2007. This downtrend wa s reversed in 2008-09, when th e debt stood at almost 60% 
of GDP. While this is a relatively high public debt ratio, a risk-mitigating factor is the fact that some three-fifths of total public debt is dom estic, almost entirely denominated in lek. The 
public debt consists of central  government debt and while local governments can borrow, the 
use of this possibility has been limited so far.  However, around 60% of domestic debt is short-
term, i.e. with a maturity of 1 year and less, giving rise to refinanci ng risk. Commercial banks 
remain the main holders of domestic public de bt. External debt is composed of long-term 
loans of which slightly more than half is denominated in euro, while another 30% is denominated in Special Drawing Rights. Multila teral creditors represent approximately 53% 
of the external debt. Overall, the recently increasing and high le vel of public debt remains a 
source of macro-financial vulnerability.  
Appropriate fiscal and monetary  policies have been the main anchors of the policy mix and 
have underpinned the relative macroeconomic stabil ity in Albania. Howeve r, the pro-cyclical 
budget stance since 2006 has reduced the fiscal room for manoeuvre and reversed the decline 
in public debt. The monetary policy framework has anchored inflation expectations, despite 
the limitations arising from signi ficant euroisation. The flexible  exchange rate has supported 
adjustment to external shocks. 
Overall, rebuilding fiscal space so as to ensure medium-term 
budgetary sustainability and vigor ously accelerating reforms to c ontinue structural adjustment 
remain key macroeconomic policy challenges. 
EN 43  EN Interplay of market forces  
Price liberalisation has been largely complete d but price regulation pr otects a number of 
sectors. Around 4.3% of the items that co mpose the consumer price index remain 
administered or regulated. Administered prices  are set by sectoral regulators (electricity, 
telephony, water supply) or government bodies.  
State participation in the econom y has been progressively redu ced and as a consequence the 
private sector today accounts for around four-f ifths of GDP and 82% of total employment. 
This has been achieved largely through a widespr ead privatisation process. The sectors that 
are still owned or controlled by  the state include electricity generation, railways, ports and 
water supply utilities. The government is pla nning to continue with the privatisation 
programme by proceeding with the delayed selling of shares and assets in strategic sectors 
such as hydrocarbons, insurance, certain port serv ices, certain operations in rail transport and 
telecommunications. Overall, the privatisation process is advanced, while the contribution of 
the private sector in the ec onomy has reached a high level. 
Market entry and exit 
Significant progress in facilitati ng business start-ups has been ach ieved in recent years. In 
2007, a new law was approved on the National Bu siness Registration Centre (NRC) which 
provides for simultaneous registration in ‘one-stop-shops’ for the purposes of tax 
administration, social and health insuran ce, and labour inspectio ns. The streamlined 
procedures have made business start-up faster and cheaper. Desp ite an increasing number of 
electronic services and registra tion centres across the country, further effo rts are required to 
strengthen the NRC’s capacity in municipalitie s. In addition, with the establishment of a 
National Licensing Centre (NLC) in 2009, many li cences were abolished, while procedures 
for many sectors have been simplified and st reamlined, thereby reducing administrative 
barriers for businesses. Overall,  notable progress has been ach ieved in facilitating market 
entry at national level but more effort is needed at local level.  
The new law on bankruptcy procedures approv ed in May 2009 provides a more efficient 
framework for market exit. Moreover, courts will consider a case within 30 days, thereby 
speeding up bankruptcy procedures. However, implementation has been poor, the agency to 
deal with bankruptcy cases provided for in the amended law has not been established yet, and 
the number of companies declared bankrupt by th e courts has been minimal, despite several 
ongoing judicial proceedings. Overall, despite recent legislative changes, implementation of 
bankruptcy procedures remains largely ineffective. 
Legal system 
A legal system which supports the market economy has been evolving since the 1990s. 
However, the legislative process  is not fully transparent as proposed laws are not always 
subject to public cons ultation. Laws and regulations are so metimes inconsistent, incomplete 
or lack implementing regulations, leading to  unreliability in th eir interpretation.  
The functioning of Albania’s property market re mains inefficient, which adds to business 
uncertainty. One of the main issues relates to th e restitution of property and the regularisation 
of informal construction. About 80% of all pr operty has been register ed, but registration is 
less advanced in urban and coastal areas, th e latter having a high potential for tourism 
development. The land registration process is ta inted by lack of legal documents, delays and 
poor enforcement of court decisions, competi ng land ownership claims, corruption and weak 
EN 44  EN coordination among government agencies. This l eads to an informal exchange of property 
giving rise to disputes which further burdens the courts and causes an additional loss of tax 
revenue. Overall, although progress has been achieved in the past two decades, ownership 
transfer and recognition of property rights rema in incomplete and hamper the functioning of 
the land market.  
The judicial system suffers from undue political interference, corruption, lack of capacity and 
non-transparent and inefficient court proceedings. Informal methods of contract enforcement, 
by-passing the legal system, continue to be wi despread. The government took several steps to 
strengthen the judicial system and step up the fight against co rruption. A number  of electronic 
public services (including the el ectronic public procurement system) were introduced in order 
to increase transparency. Inspect ions of courts and public agen cies have been stepped up and 
legal proceedings initiated agai nst officials responsible for violations. However, the law 
establishing the administrative courts, that wi ll deal with commercial cases and disputes 
between companies and public institutions, has not  been adopted. The role of courts in the 
enforcement of contracts remains limited due to  weak administrative capacity and prevalent 
corruption. Overall, while some progress has been recorded, the business climate remains 
hampered by the weak rule of law.   
Financial sector development  
Although still low, banking intermediation has in creased rapidly during the past years. In 
2009, the loan-to-GDP ratio rose to slightly  above 41% from 7.3% in 2003. All 16 
commercial banks are fully privately-owned with  an asset-to-GDP ratio of approximately 
82%. The banking sector is characterised by a high degree of concentration, with the six 
largest banks having a share of 72%  for loans and 81% for deposits. 
Ownership of the banking sector is foreign- dominated. The capitalisation of the banking 
system has increased gradually, standing at ar ound 9.4% of banks’ balance sheets. The capital 
adequacy ratio stood at 16.2% in 2009 — well above the legal minimum of 12% imposed by 
the BoA and the 8% required under the Basel framework agreement. 
The structure of the banks’ as sets has undergone significant changes in recent years. The 
banking sector’s investment in government securiti es has declined from almost half the total 
assets in 2003 to 12% in 2009, giving way to an increase in the share of  the credit portfolio. 
The corporate sector share in total loans amounts to roughly 62%, households 33%, the public 
sector 2.7%, and financial institutions accounted  for the rest. In the past seven years, the 
maturity structure of loans has become increasin gly skewed toward long-term loans, i.e. loans 
with maturity of one year and above, which represent around 72% of the total.  
Banks’ profitability followed a general upward tr end on the back of increasing net operating 
income between 2004 and 2007, but declined in th e subsequent two years owing mainly to 
rising operational costs and the rapid growth  of expenses for provisioning due to the 
economic crisis. While non-performing loans (NPL s) increased at a moderate pace in the 
period 2005-07, this pace has accelerated since th e last quarter of 2008. In the first half of 
2010, NPLs continued to increase — reaching 12% in the second quarter of 2010 — although 
at a decelerating pace. Return on assets dr opped from 1.3% in 2004 to around 0.3% in 2009. 
However, the banking system remains well capitalised.  
Starting from a low base, credit expanded rapidly in the first half of the 2000s, driven mainly 
by heightened competition in the sector following  the privatisation of the Savings Bank. Most 
EN 45  EN of this expansion in lending was financed thro ugh domestic resources, in the form of domestic 
deposits and recapitalisation. During the past two decades, the Bank’s supervisory capacity has been significantly bolstered through the impl ementation of a more ri sk-based supervision 
process. Substantial progress has been made in  improving the legal fram ework for insolvency 
and bankruptcy procedures have been strengthened. Overall, the banking system has recorded 
rapid expansion in recent years as a result of privatisation and the entry of foreign players.   
The insurance market has registered gradual ex pansion, albeit from a low base. In 2008, total 
assets amounted to approximately 1.4% of GDP. All 10 licensed co mpanies active in the 
sector are domestic, but since 2007 Albania has attracted increased  foreign (EU) participation. 
In the voluntary insurance sect or, non-life insurance represents around 83% of turnover. The 
private pensions market is still underdeveloped. Three companies are lice nsed to offer private 
pensions. At the end of 2009, the legal framew ork for private pensions was amended by a new 
law on voluntary pension plans. The law opens up the possibility for the establishment of 
defined contributions third pill ar pension funds, but does not reflect all the provisions of the 
acquis . Overall, the non-banking financial sector is s till undeveloped and pl ays a negligible 
role as a source of private sector financing.  
The Tirana Stock Exchange was formally es tablished in 1996, but there are no companies 
listed on the stock exchange. 
2.2.2.  Capacity to cope with comp etitive pressure and market forces within the Union 
The ability to fulfil this criterion depends on the existence of a market economy and a stable 
macroeconomic framework, allowing economic ag ents to take decisions in a climate of 
predictability. It also require s a sufficient amount of human and physical assets. Enterprises 
need to invest to improve their efficiency a nd innovate to adjust to a globalised and highly 
competitive external environment. Overall, the mo re an economy is integrated with the Union 
before accession, the better will it be able to take on the obligations of membership. 
Existence of a functioning market economy 
Albania is a small and increasingly open economy with a large private sector that accounts for 
some 80% of GDP. Prices and trade have been  mostly liberalised. Th roughout the transition, 
Albania has broadly followed a policy mix pursuing macroeconomic stability. Economic 
growth has been strong while inflation has dec lined and remained low. However, the current 
account deficit has worsened throughout the ye ars, while unemployment, although declining, 
remains high. The pro-cyclical expenditure stance,  which started already in 2006, led to a rise 
in the budgetary deficit as of 2007 and was furt her aggravated by dete riorating revenue in 
2009. As a consequence, the decl ine in public debt was reversed, which, together with the 
build-up of external imbalances, poses a risk  to macroeconomic stability. Resuming fiscal 
consolidation, bolstering the stability of the ba nking sector, eliminating obstacles to market 
entry and exit and stepping up the enforcemen t of the legal system would improve the 
economy’s growth potential. Overall , Albania has achieved a degree of macroeconomic 
stability which broadly allows economic opera tors to make decisions in a climate of 
predictability. However, to become a functioni ng market economy, Albania needs to further 
strengthen governance, improve the performa nce of the labour market, complete the 
recognition of property rights and step up law enforcement.
 
Human and physical capital  
EN 46  EN Although public resources devoted to  education are significan t (3.8% of GDP in 2009), 
Albania faces a number of challenges. Demogra phic shifts brought about by the brain drain in 
the past years, a high incidence of informa lity as well as weaknesses in the education and 
skills system hinder the full realisation of human capital . The result is that firms face a dearth 
of skills that limits their growth. Educa tional attainment is weak notwithstanding 
improvements in the past years. On average, Al banian pupils complete 8.6 years of schooling, 
which is significantly low by international standards. However, drop-out rates have fallen in recent years, especially in primary educati on, and participation in secondary and higher 
education have increased. Reforms to make the vocational education system (VET) more 
responsive to changes in the labour market are relatively recent. University curricula, which 
were insufficiently linked  to labour market demand, are undergoing a thorough re-
organisation in terms of content and structure in accordance with the Bologna standards. On 
an institutional level, reforms are also in creasing the autonomy and self-governance of 
universities. The level of expenditure on resear ch and development in Albania remains low. 
Spending on scientific research was estimated at 0.2% of GDP in 2009. Overall,  while there 
are serious gaps in the knowledge, skills and or ientation of the labo ur force needed by a 
changing job market, recent reforms ar e a step in the right direction.  
In 2007, a strategy on employme nt and vocational training covering the period 2007–13 was 
adopted. The National Employment Service runs active labour market programmes by 
providing vocational counselling and training a nd job mediation and employment promotion 
programmes mostly targeting st udents, females and vulnerable groups. The coverage of these 
programmes remains inadequate. A comprehensive strategy on workforce skills is lacking, 
while on-the-job training is weak. Overall, active labour market programmes are insufficient 
compared with the level of unemployment, while work-related training remains a challenge.  
Burdened by a largely obsolete physical capital  stock, Albania faced co nsiderable investment 
needs after 1992 in view of its very poor endowm ent with basic infrastructure and productive 
capital. Expressed as a percentage of GDP, average annual total investment amounted to 
around 37% during the period 2000-08. However,  residential property, which saw rapid 
expansion during the past years sustained by strong inflows from migrants’ remittances, accounted for most of this high level of invest ment. Such investment, together with rather 
modest green-field inward investment whic h has been concentrated in capital-poor 
manufacturing activities in the past years, is unlikely to increase the economy’s productive 
capacity. Green-field investment is hampered by  the state of infrastructure which, although 
improving in the last two decades, still faces w eaknesses in terms of quality, reliability and 
affordability. Overall, investment has been high but im pediments to productive capital 
remain.  
The unreliability of electricity supply is one such constraint. Lack of investment in the 
transmission and interconnection grids as well as over-reliance on hydropower has led to 
periodic load-shedding. This, to gether with deficiencies in distribution, translated into 
financial losses for KESh, the power supplier, tr iggering the need for subsidies. However, the 
situation has improved since 2008 mainly because  of favourable hydrological conditions. In 
2003, a national energy strategy was launched with  the objective of transforming the sector 
along market-oriented principles. The government is seeking to divers ify energy sources by 
offering concessions to private investors for the construction and operation of hydroelectric 
plants and other alternative s ources of power. Interc onnection with neigh bouring countries is 
limited, although investment in  this area is ongoing. Overall, recent reforms have begun to 
address the bottlenecks in electricity infrastructure  but further investment is needed to ensure 
a reliable supply. 
EN 47  EN Telecommunications infrastructure is also in adequate and hampers bu sinesses. Fixed-line 
telephone penetration stands at  a low 11.3 per 100 inhabitants.  Broadband penetration remains 
significantly low at 2.5% of population as tariffs remain hi gh. Internet take-up by business has 
increased in recent years but remains particular ly low among micro-enterprises that comprise 
the largest proportion of firms. On the other ha nd, heightened competition has led to a rapid 
rise in mobile telephony density, which is co mparable with EU leve ls. Notwithstanding the 
competition and reductions in tariffs in 2008, m obile telephony charges remain at the high-
end by regional standards. Overall,  the performance of tel ecommunications is weak. 
Significant investment in recen t years has resulted in an en larged road network but the 
incidence of poor quality roads is high since spe nding allocated for road maintenance is low. 
Albania’s primary deep-sea ports in Durres a nd Vlora are undergoing upgrading works. The 
priority given by the government to road infrastruc ture has resulted in a lack of investment in 
the rail network. Overall, attention devoted to building transport infrastructure in the past 
years has not been matched with maintenance,  while rail transport remains inadequate. 
Sector and enterprise structure 
Most of manufacturing is classified as light in dustry and is almost entirely privately owned. 
Despite a notable expansion in  recent years, Albania's manufacturing base remains narrow 
and capital-poor. The textiles a nd footwear sub-sectors is a major sub-sector, representing 
some 15% of industry value adde d. A large part of output is de stined to foreign markets and 
constitutes around 43% of total export of goods . The extracting sector , composed of energy 
and non-energy production, represents around 14% of merchandise exports. The non-energy 
sector is composed of mini ng of metal ores and other mi ning. Given Albania's significant 
deposits, the non-energy subsector remains largel y below potential mainly as a result of poor 
institutions, a lack of regulatory effectiven ess and weak technical capacities. Services 
represent some 54% of GDP with trade, hote ls and restaurants accounting for the largest 
share. Tourism has been one of the most dynamic sub-sectors in the past decade.  
The significantly higher share of services in output is not mirrored in employment figures. 
The Albanian private sector economy is charac terised by a dichotomy;  a high proportion of 
employment (around 44%) is engaged in declini ng sectors, primarily ag riculture, with a low 
share of output, while growth sectors i.e. se rvices, industry and cons truction with a high 
proportion of GDP account for a lower weight of employment (38%). The public sector 
absorbed roughly 18% of total employment in 2008. The informal sector, fuelled by 
weaknesses in tax and expenditure policies, as well as in law enforcement, including the fight against corruption and organised cr ime, is large. It reduces the tax base and the efficiency of 
economic policies. Overall, despite sizeable structural shifts ov er the years, there is still ample 
scope for more labour inputs to move from low to the higher productivity activities. The 
informal sector is an important challenge. 
In recent years, regulatory reforms provided for the restructuring and the gradual liberalisation 
of the electricity market as well as promo ting regional trade in el ectricity. The government 
also decided to unbundle, commercialise the el ectric power provider and in 2009 privatised 
the electricity distribution arm. The sector’s  regulator was strengthened and given more 
powers including issuing licences to the differe nt market operators. Tariffs have been 
gradually increased but are not yet at a cost-r ecovery level. Strength ening the technical, 
financial and management situation of the provi der and making the privatisation effective by, 
amongst others, taking steps to reduce energy losses and enforce bill collection remain a 
challenge. The essential elements of the te lecommunications regulatory framework are in 
EN 48  EN place, i.e. a telecoms regulator and a privatised fixed-line operator, while legislation is partly 
in line with EU practise. Overall, recent steps in the electricity s ector are in the right direction 
but need further re-enforcement to ensure that the re-organisation of th e sector is effective.   
Albania’s transition process has resulted in a business sector dominated by SMEs which have 
a share of more than three-fifths of GDP and employ around four-fifth s of total workers. 
Micro and small enterprises dominate the services and trade sectors, while medium-sized firms are concentrated in construction and indus try. SMEs concentrate on the domestic market 
and lack export competitiveness. Support to e xport-oriented and innovative companies is 
weak. In 2007, the government established a €1.6 million export guarantee fund to export-oriented firms as well as a grant scheme as  part of a competitiveness fund. A strategic 
framework for SME development was launched in 2007 with the Business and Investment Development Strategy which is a long-term  strategy complemented by a medium-term 
programme. Overall, SMEs are mostly domestically-oriented as export promotion remains 
inadequate.   
Although access to finance has improved over th e years, own resources remain the main 
source of financing for most firms. This is particularly the case for micro, small businesses 
and start-ups, which face tough borrowing condi tions, especially in rural areas. Since 2009, 
credit conditions for SMEs have become more  restrictive, with lending rates charged by 
commercial banks on new lek-denominated loan s standing at around 15%. While companies 
continue to suffer from delays in the reimbur sement of overpaid VAT or export refunds, the 
situation has improved somewhat since the beginning of 2010. A public credit registry, 
established by the BoA in 2008, collects data from banks and makes them available to 
lenders. However, the exclusi on of micro-credit institutions from the credit registry is 
considered to be a bottleneck for the access to bank lending for SME. Overall , despite 
significant progress, access to finance remains a challenge to micro and small enterprises. 
State influence on competitiveness 
State aid (including for agricultu re and fisheries) has declined from 0.6% of GDP in 2006 to 
0.4% in 2008. Three-fifths of state aid is gran ted to support special sectors mostly providing 
public services including water supply and railw ays. The electricity sector has been a major 
recipient of state support in 2007 partly as a re sult of adverse weather conditions which led to 
a crisis in the sector. The level of subsidies granted to this sector has declined thereafter. No additional specific financial as sistance was awarded to compan ies to counter the economic 
crisis in 2009 and 2010. Overall, the amounts of state aid are limited..   
Economic integration and c onvergence with the EU  
During the past two decades, Albania has become  more integrated into the global economy 
and increasingly more open as trade in goods an d services reached more than 80% of GDP in 
2009 — almost double the corresponding figure in 1996. The EU is the majo r trading partner, 
representing roughly 70% of goods, followed by  the CEFTA countries (9.4%). In 2008, the 
largest share of merchandise trade with the EU  was directed to Italy (62% exports; 27% 
imports) and Greece (9% exports; 15% imports). Ho wever, the share of trade with both Italy 
and Greece has shown a generally declining trend. The increased in tegration and trade 
openness was achieved against a background of FDI inflows averaging 4.7% of GDP during 
the period 2003-08. During this pe riod, more than three quarters of FDI originated from EU 
countries, with Greece being the main source, accounting for more than half of the total, 
followed by Italy (11%) and Austria (8%). Alt hough the real effective exchange rate has 
EN 49  EN depreciated since mid-2008, contributing to an improvement in price competitiveness, limited 
quality upgrading of exports points to  weak non-price competitiveness. Overall,  trade and 
investment integration with the EU is high. The recent depreciation of the real exchange rate 
has supported price competitiveness, but structural factors constrain non-price competitiveness.  
2.3. General evaluation 
The present assessment is made on the basis of the Copenhagen criteria related to the 
existence of a functioning market economy , as well as the capacity to cope with 
competitive pressure  and market forces  within the Union. 
There is a broad consensus in Albania on the fundamentals of economic policy as well as a 
track record in the implementation of econo mic reforms. Albania achieved a degree of 
macroeconomic stability sufficient enough to allo w economic operators to make decisions in 
a climate of predictability. Th e macro policy mix in the past years has been appropriate, 
generating growth rates exceed ing 5% and activity, although sl ower, remained positive in 
2009 despite the crisis. Inflation has remained lo w. The free interplay of market forces has 
been developing through privatisation. Prices a nd trade have been mostly liberalised. Notable 
progress has been achieved in facilitating ma rket entry. The banking system has rapidly 
expanded as a result of privatis ation and the entry of foreign players. State aid has been 
reduced. The share of trade and investment  integration with the EU remained high. 
However, fiscal consolidation has been reversed  recently and the high level of public debt 
remains a source of macro-financial vulne rability. A narrow expo rt base and public 
investment have led to a signi ficant and persistent current account imbalance. The existence 
of widespread informal work arrangements cont inues to severely distort the labour market and 
unemployment remains high and stood at 13.8%  in 2009. Access to finance remains a 
challenge to small enterprises. Weaknesses in the rule of law hamper the business environment and ownership transfer and reco gnition of property rights remain a serious 
problem. The education system remains unable to equip the labour force with the skills 
needed by the changing j ob market. Infrastructure requires fu rther investment and institutional 
and regulatory steps are needed to ensure a reliable energy supply. The informal economy 
remains an important challenge.  
3. A
BILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP  
The European Council in Copenhagen in June 1993 included among the criteria for accession 
“the ability to take on the obligations of me mbership, including adherence to the aims of 
political, economic and monetary union”.  
In applying for membership on the basis of th e Treaty, Albania has accepted without reserve 
the basic aims of the Union, includi ng its policies and instruments.  
This part of the analytical report analyses Albania's ability to assume the detailed obligations 
of membership — that is, the acquis , as expressed in the Treatie s, the secondary legislation 
and the policies of the Union. This section follows  the structure of the 33 negotiating chapters 
into which the acquis has been divided for the purpose of conducting accession negotiations. 
Each chapter examines the current si tuation and prospects in Albania.  
EN 50  EN As the Union has developed, the acquis has become progressively mo re onerous and presents 
a greater challenge for future accessions than wa s the case in the past. The ability of Albania 
to implement the acquis will be central to its capacity to function successfully within the 
Union. 
In this respect, alignment with the acquis is a necessary but not sufficient condition to meet 
the obligations of EU membership. Albania must also take all necessary measures to create 
the necessary implementing structures, to bri ng its administrative capacities to the required 
level and to ensure effective enforcement. An  analysis and assessment of the country’s 
administrative capacities is therefore incl uded in each of the chapters below.  
For the purpose of this analyti cal report, and without prejudgi ng any future date of accession, 
the medium-term perspective in the assessments ha s been defined as a period of five years.  
3.1. Chapter 1: Free movement of goods 
The principle of free movement of goods means that products must be traded freely from one 
part of the Union to another. In  a number of sectors this gene ral principle is supplemented by 
a harmonised regulatory framework, following either the ‘Old Approach’ (laying down 
precise product specifications) or the ‘New Approach’ (settin g general product requirements). 
Transposition of harmonised European pr oduct legislation accounts for the bulk of the 
obligations under this chapter. Smooth impl ementation and proper implementation of the 
acquis  requires sufficient administrative capacity to  notify restrictions on trade and to apply 
horizontal and procedural measures in areas su ch as standardisation, conformity assessment, 
accreditation, metrology and market surveillance.  
The Stabilisation and Association Agreement  creates a number of oblig ations in the field of 
free movement of goods, such as establishment of a free trade area. It also provides for 
gradual alignment to EU technical regula tions and standards as  well as metrology, 
accreditation and conformity assessment procedures. 
Regarding the general principles , Albania needs to ensure that  its legislati on, including 
distinctly as well as indistinctly  applicable measures, is compatib le with Articles 34 to 36 of 
the Treaty on the Functioning of the European  Union and related case law of the European 
Court of Justice (with special emphasis on the principle of mutual recognition). 
In the area of horizontal measures , Albania adopted new le gislation on accreditation, 
standardisation and metrology during 2007 a nd 2008. The Law on general product safety, 
essential requirements and conformity assessm ent of non-food products aims at gradual 
harmonisation with the principles of the New and Global Approach . It will need further 
revision to comply fully with the general pr inciples of the New Approach and with the 
horizontal acquis  adopted in 2008.  
The framework Law on standardisation  was adopted in March 2008. However, Albania has 
not yet established the legal ba sis and administrative structure for adoption of ETSI (European 
Telecommunications Standards Institute ) standards as Albanian standards. 
The General Directorate of Sta ndardisation (GDS), a government  department reporting to the 
Minister of Economy, Trade and Energy, is responsib le for standardisation in all fields except 
telecommunications. The GDS is a correspondent member of the International Organisation 
for Standardization (ISO), an associate memb er of the International Electrotechnical 
Commission (IEC) and an affiliate member of both the European Committee for 
EN 51  EN Standardization (CEN) and the European Co mmittee for Electrotechnical Standardisation 
(CENELEC). It plans to apply for full membership of CEN and CENELEC in 2012. So far it has adopted around 92% of the European standards (ENs) pr epared by CEN and CENELEC 
as Albanian standards, thus meeting the sta ndard-related membership criterion. The GDS has 
a staff of 18. There are 60 technical co mmittees, all but one mirroring CEN/CENELEC 
committees. Sufficient translation and informa tion technology capacity, backed up by funding 
for promoting use of standards, will need to be ensured. The supervisory board provided for in 
the 2008 law on standardisation to monitor the wo rk of the GDS has not yet been established. 
As regards conformity assessment, the Albanian framework Law on general product safety, 
essential requirements and conformity assessmen t of non-food products need s to be revised to 
align it with the 2008 horizontal acquis . Current practices on use of the CE marking are not in 
line with the acquis . So far 17 conformity assessment bodi es have been accredited. By law, 
accreditation is a pre-condition for being desi gnated as a conformity assessment body.  
Albania’s accreditation  policy is broadly in line with the EU  principles, notably as regards the 
public, not-for-profit basis of the General Di rectorate for Accreditation (GDA) and its 
professional and financial inde pendence from possible clients.  The GDA is in charge of 
accreditation of conformity assessment bodies. It ha s a staff of 15 and its  rules of procedure 
are regulated by a government d ecision of October 2008 which aims at further alignment with 
the acquis. The GDA signed a contract of co-operati on with the European co-operation for 
Accreditation (EA) in 2006 and in 2008 it applied to be a signatory of the EA Multilateral 
Agreement (MLA) in the field of testing laboratories.  
The appeal procedures introduced by the 2008 law on metrology  were improved in 2010, 
granting economic operators recourse to court.  The General Directorate for Metrology (GDM) 
in the Ministry of Economy, Trade and Energy is in charge of legal, scientific and industrial 
metrology and acts as the National Metrology Institute. The law on metrology allows 
outsourcing of some verification activities to private bodies. The GDM is an institution 
funded from the State budget with 110 employees. Th e continuity of its staff will be essential 
to create an institutional memory and transf er knowledge. The GDM is a full member of the 
European Association of Na tional Metrology Institutes  (EURAMET) and an observer 
member of WELMEC, the organisation for Eu ropean cooperation in legal metrology. Two 
calibration laboratories are accredited in accord ance with EN ISO/IEC 17025 by the Albanian 
accreditation body. The GDM is working on implementation of the investment plan for the new areas of measurements, premises and equipm ent, as part of the National Strategy on the 
Metrology System in Albania for 2008–2012. A new National Metrology Centre is under 
construction.  
The Albanian market surveillance  system is based on many different pieces of legislation 
depending on the product in question. A pre-mark eting authorisation system based on permits 
or licences also exists for some products. Th e 2007 Law on general pro duct safety, essential 
requirements and conformity assessment of non-food products, one of the main pieces of 
legislation regulating market surv eillance of industrial products,  does not fully incorporate the 
requirements of the acquis .  
The Ministry of Economy, Trade and Energy plays a coordinating role in the area of market 
surveillance. Its Mark et Surveillance Directorate took on a wider remit by becoming the 
Directorate for Trade Mechanisms and Stat e Aid in June 2010. It s institutional and 
administrative capacity and resources need to be  increased in order to ensure efficient, 
coordinated market surveillance. Different in spectorates or agencies carry out market 
EN 52  EN surveillance activities, but they have had probl ems with the transition from State pre-market 
inspection bodies to market survei llance authorities required by the acquis . The 
comprehensive market surveillanc e structure required under the acquis  is not yet in place and 
existing inconsistencies will need to be repealed. Inter-institu tional coordination and 
cooperation, including with  customs authorities, needs to be enhanced.  
Albania has not yet transposed the vast major ity of the sector-specific legislation. Major 
discrepancies with the acquis  persist in sectors covered by the Old Approach product 
legislation . Albania has already partly aligned its legislation on de tergents, pre-packaging and 
legal units of measurement with the acquis. However, legislation applicable to motor vehicles, 
emissions of pollutants from non-road mobile engines, chemicals, me dicinal products for 
human use, medicinal products fo r veterinary use, cosmetics, aerosol dispensers, textiles, 
footwear and crysta l glass is not yet aligned with the acquis . 
Albania has already transposed many of the directives in areas covered by the New and 
Global Approach product legislation . It has adopted legislati on aiming at alignment on 
toys, simple pressure vessels, pressure equipment, gas applia nces, low-voltage equipment, 
electromagnetic compatibility, machinery, equi pment and protective systems intended for use 
in potentially explosive atmospheres, lifts a nd personal protective equipment. However, its 
alignment with the acquis  needs to be verified. The acquis  has not yet been  transposed as 
regards medical devices, recreational craft, cableway installations , construction products, 
explosives for civil uses, pyr otechnical articles, radio and telecommunications terminal 
equipment, eco-design requirements for energy- related products, noise emissions by outdoor 
equipment, non-automatic weighing inst ruments and measuring instruments. 
Regarding procedural measures , Albania has not yet transposed the acquis  on provision of 
information on technical standards and regulatio ns. The 1992 Law on weapons and the related 
implementing legislation are being amended with the aim of full compliance with the acquis  
on civil firearms.  The Law on cultural heritage is  not yet in line with the acquis on the return 
of cultural objects  unlawfully removed from the territory of EU Member States. As regards 
external border checks , the Albanian legislation is not in line with the acquis  on control of 
products coming from third countries. 
Conclusion 
Albania has started to harmonise its national legislation with the principles of free movement 
of goods. However, most provisions of the acquis  are not yet in place. Horizontal and 
procedural measures, including the framewor k legislation on techni cal regulations for 
products and conformity assessment procedures, and Old and New Approach product legislation need to be harmonised with the acquis . The basic separation of standardisation, 
accreditation and metrology functions has been  established, but further implementing 
measures are necessary. An adequate market surv eillance structure needs to be established in 
accordance with the acquis . Overall administrative capacity n eeds to be reinforced and proper 
coordination of measures on fr ee movement of goods is needed  at government level. Major 
efforts to transpose directives will be necessary. 
Overall , in the field of free movement of goods, Alba nia will have to make considerable and 
sustained efforts to align with the acquis  and to implement it effectively in the medium term.  
EN 53  EN 3.2. Chapter 2: Freedom of movement for workers 
The acquis  under this chapter provides that EU citizens of one Memb er State have the right to 
work in another EU Member State, to reside th ere for that purpose with their family and to be 
treated in the same way as nati onal workers in terms of worki ng conditions and social and tax 
advantages. Furthermore, the acquis  includes the EU instruments on coordination of different 
national social security systems. 
The Stabilisation and Asso ciation Agreement provides that, subjec t to conditions and 
modalities applicable, Albania and EU Member St ates ensure that nationals of the partner 
country who are legally employed on their territo ry are not subjected to any discrimination 
based on nationality as regards working conditions, remuneration or dismissal. 
Concerning access to the labour market , the current Albanian legislation is not in line with 
EU law on free movement of EU citizens. It requ ires EU citizens to apply for a work permit 
(pursuant to the Law on foreigners) which may be issued following a labour market test. No 
distinction is drawn between EU nationals and other foreign nationals in this respect. Families of EU migrant workers have the right to resi de in Albania for the same duration as the 
workers. EU nationals legally residing and em ployed in Albania enjoy equal treatment as 
regards employment, pay and working conditions , but employment in the public sector is 
restricted to Albanian nationals.  
By the time of its accession to the EU, Albania would have to implement the acquis  on 
freedom of movement for workers. Its national law will have to ensure that no work permit 
scheme applies to EU nationals and that EU wo rkers have the right to reside in the country 
and enjoy the same social advantages as Alba nian nationals. Furthermore, Albania’s national 
law will have to grant family members of EU  migrant workers the right to be employed 
without needing a work permit and their childr en the right to be admitted to educational 
institutions on the same conditions  as nationals of Albania.  
As regards employment in the public sector, Th e Albanian legislation on the status of civil 
servants stipulates that a general requirement for hiring in the civil service is to be an 
Albanian citizen.. Albania will ha ve to take into account the acquis (in particular, the case 
law) in this field, which allows EU Member States to restrict public service posts to their own 
nationals only if they are directly related to th e specific activities of the public service, i.e. 
involve exercising public authorit y and responsibility for safeguard ing the general interest of 
the State (including of local authorities).  
Preparation for future participation by Alba nia in the European Employment Services 
(EURES ) network will need to be verified. Beside s making sure that the vacancy database is 
available in English and checking the language skills of potential EURES advisors, attention 
needs to be paid to ensuring that local and regional offices have the possibility to share 
vacancies data not only with  the central employment agency but also with each other. 
As regards supplementary pensions , Albania’s pension scheme has two components: a 
compulsory public pension and r ecently adopted voluntary pensi on insurance (first and third 
pillars). Upon accession Albania will need to im plement measures in line with Directive 
98/49/EC to guarantee equal treatment betw een EU migrants and nationals regarding 
preservation of vested second- pillar supplementary pension ri ghts and payment thereof in 
another Member State. Moreover, posted workers must have the possibility to continue to 
make contributions to a supplementary pension scheme in their country of origin for the 
EN 54  EN duration of their posting, in which case they are exempt from contributing to such a scheme in 
the host Member State.  
As regards coordination of social security systems , the social security system in Albania 
includes all traditional branches of social security  which come within the scope of the rules on 
EU coordination and includes benefits and char acteristics similar to those in many EU 
Member States’ systems. The Albanian social security system is based on the principle of 
compulsory insurance in the country of work ( lex loci labori ). Albanian social security 
legislation provides for no discriminatory treatment with regard to nationals from other 
countries. Albania has concluded bilateral soci al security agreemen ts with three other 
countries, including two EU Memb er States, and negotiations ar e continuing with three more. 
In Albania, the Social Security Institute and Health Care Institute will be responsible for 
applying the European Union provisions on c oordination of social security schemes. 
Regulations 883/2004 and 987/2009 are directly  applicable upon acce ssion. Consequently, 
only technical adjustments to Albania’s social security legislation will be necessary. Application of these regulati ons could have some financia l implications for Albania, 
including export of pensions and reimbursement of medical expenses fo r Albanian nationals 
treated in another Member State. In additi on, preparations will have to be made for 
participation in the EESSI system (on electroni c exchange of social security information), 
implying additional costs for the necessary IT in frastructure. Albania will have to develop 
sufficient administrative capacity to apply the acquis  fully as from accession. Additionally, 
Albania will also have to introduce the European Health Insurance Card  upon accession. 
Impact 
The estimated impact of Albania's possible a ccession upon the EU labour  market has to be 
related to a number of factors,  such as the size of Albania's working population, age structure 
and migration movements.  
Albania's population is estimated to be around 3.2 million persons. The annual population 
growth until 2020 is estimated at 0.5%
7. As regards the age structure, the share of the 
youngest age groups (15 and less), around 23%, is higher than in the EU (15.4%).  
Albania's working age population (15-64) in 2009 was estimated at around 2.1 million, which 
represents 0.6% of the EU  working age population. The eco nomically active population was 
estimated to be around 1.3 million individuals. In  2009, the employment rate was estimated to 
be around 53.4% (compared to 65.9% in the EU ). Unemployment has been declining 
gradually, except in 2009, when it rose slig htly from 13% to 13.8%. Furthermore, an 
important number of persons work in the informal economy.  
Despite a strong annual growth of the GDP in th e last decade (always higher than 5% since 
1998, apart from 2002), there remain  very large differences in the level of GDP per capita 
between Albania and the EU. Albanian GDP per capita in purchasing power parity represents 
27.1% of the EU 27 average.  
Since the early 1990s there have been migra tion movements from Albania towards third 
countries including EU member states. It is es timated that around 1 million Albanian citizens 
currently live in the EU (mostly in Ital y and Greece) representing 3.2% of the foreign 
population living in the EU (and 0.2% of the EU total populat ion). There is a trend of 
reduction of the net migration rate from Albania in recent years.  
                                                 
7 United Nations Population projections. See: http://esa.un.org/unpp/index.asp?panel=2  
EN 55  EN Notwithstanding limits due to the lack of reliability and comp arability of Albania's labour 
market statistics with that of the EU, overa ll, the above preliminar y assessment tends to 
indicate that Albania's membership in the EU wo uld have a relatively minor impact on the EU 
labour market. However, this situation will have  to be closely monitored taking into account 
developments in Albania and the EU. 
Conclusion 
Overall , Albania will have to undertake a dditional efforts to align with the acquis  and to 
implement it effectively in the medium term in the field of freedom of movement for workers. 
With regard to coordination of social security, taking into acc ount that Albania has only three 
social security agreements, development of ad equate administrative capacity to apply the 
provisions on coordination with  all EU Member States wi ll be a major challenge.  
3.3. Chapter 3: Right of establishment and freedom to provide services 
Member States must ensure that the right of establishment of EU nationals and legal persons 
in any Member State and the freedom to provi de cross-border servi ces, as laid down in 
Articles 49 and 56 of th e Treaty on the Functioning of th e European Union (TFEU), are not 
hampered by national legislation, subject to the excep tions set out in the Treaty. The core 
piece of acquis in this area is the Services Directive. The acquis also harmonises the rules 
concerning regulated professions to ensure mutu al recognition of qualific ations and diplomas 
between Member States. For certain regulat ed professions a comm on minimum training 
curriculum must be followed in order to have th e qualification automatically recognised in an 
EU Member State. The EU postal reform aims  to ensure provision of a universal postal 
service, the establishment of an internal mark et for postal services and a high-quality postal 
service for end users. 
The Stabilisation and Association Agreement  provides for gradual liberalisation of the right of 
establishment and the freedom to provide servic es between the EU and Albania. It includes a 
standstill clause as regards restrictions to su pply of services by providers established in a 
country other than that of the person for whom the services are intended.  
As regards the right of establishment, the Albanian legislation does not discriminate against 
foreign operators or their subsidiaries or br anches. The procedures for registration in the 
commercial registry are non-discriminatory. 
Albania’s legislation on the freedom to provide cross-border services  is not in line with the 
acquis , particularly the Services Directive. It s current legislation regulates provision of 
services with an establishment in Albania, but not provision of cross-border services. Full 
implementation of the Services Directive w ill require significant strengthening of the 
administrative capacity. Furthermore, effective compliance with the acquis  will entail 
adequate coordination at nati onal level between all relevant  administrative bodies and, upon 
accession, with EU Member States.  
Albania’s primary legislation on postal services  follows the principles and objectives laid 
down in the acquis . A number of specific issues regard ing the universal service obligation 
will require particular attention, such as product range and minimum requirements, VAT 
exemption, exceptions to the obligation, and the period for designation and supervision of the 
service provider. Further efforts have to be ma de regarding provisions on  the reserved areas, 
licence requirements for the authorisation procedure, tariff regulation and accounting 
separation for the universal service along with complaints procedures. A new postal sector 
EN 56  EN development strategy, taking into account chan ges introduced by the Third Postal Services 
Directive, is at an early stag e of preparation. The Ministry for Innovation and Information and 
Communication Technology is responsible for po licymaking, including rules and procedures 
for setting tariffs and conditi ons for universal postal servi ces. The Electronic and Postal 
Communications Agency, an independent body not funded from the State budget, is the 
national regulatory authority (NRA). The current administrative capacity of the NRA is weak 
and its regulatory department for postal services has not b een established. This hampers 
effective separation of regulator y functions from policymaking.  
In the field of mutual recognition of professional qualifications, the scope and minimum 
training requirements for the regulated pr ofessions are broadly in line with the acquis.  
Minimum training requirements will need to be adjusted to ensure full alignment. Some 
requirements for EU professionals to practise in  the health sector are not in line with the 
acquis . Albanian legislation provides for the mutu al recognition of fore ign higher education 
and professional qualifications. However,  there is no clear differen tiation between recognition 
of professional qualifications and recogniti on of academic qualifications and some 
implementing legislation for the recognition of pr ofessional qualifications  is still outstanding. 
The Commission on Recognition in the Ministry of  Education and Science is responsible for 
both academic and professional qualifications. It processes all applications for recognition of 
certificates of first-level hi gher education, secondary-level higher education, second-level 
Master’s diplomas and specialist certificates obt ained abroad. Line mini stries are responsible 
for regulated professions in their fields. Admi nistrative capacity appears insufficient for the 
scope of the tasks. The Commission has five  members and is assisted by a technical 
secretariat which has a staff of two. Further efforts will be required to achieve full 
transposition of the acquis  and establish an adequate  institutional framework 
Conclusion 
There are no discriminatory legal barriers to th e right of establishmen t for EU operators in 
Albania. However, significant efforts need to be made regarding the alignment of legislation 
on the freedom to provide services with the acquis , as well as on administrative capacity and 
interinstitutional cooperation. Albania should have  no major difficulties to align its national 
postal legislation with the acquis in the medium term, but adequate capacity and full 
independence of the NRA will need to be ensu red. Legislation on recognition of professional 
qualifications needs to be further aligned with the acquis. The relevant structures and 
procedures for implementation need to be established.  
Overall , Albania will have to undertake a dditional efforts to align with the acquis  and to 
implement it effectively in the medium term. Earl y preparations and part icular attention will 
be needed in the area of fr eedom to provide services. 
3.4. Chapter 4: Free movement of capital 
Member States are expected to  remove all restrictions on capital movements and payments 
both within the EU and between Memb er States and third countries. The acquis  also includes 
rules on cross-border payments and execution of transfer orde rs concerning securities. The 
Directive on the fight against money laundering  and terrorist financing requires banks and 
other economic operators to identify customers and report certain transactions, particularly 
when dealing with high-value item s and large cash transactions. A key requirement in order to 
combat financial crime is creation of effective administrative and enforcement capacity, including cooperation between supervisory, la w enforcement and prosecution authorities.  
EN 57  EN The Stabilisation and Association Agreement  (SAA) sets out a timetable for capital 
liberalisation. It also provides for freedom and convertibility of current  account payments and 
transfers. 
In the area of capital movements,  the Regulation on foreign exchange activity adopted in 
September 2009 liberalised curren t account transactio ns between resident s and non-residents. 
It provides for unrestricted capital inflows a nd outflows. It also abolished previous 
prerogatives of the Bank of Albani a on control of capital outflows. 
Acquisition of real estate by foreig ners is subject to certain rest rictions: foreigners are not yet 
allowed to acquire agricultural land, forests,  meadows and pastures. The SAA provides for 
progressive adjustment of the legislation in  this area to ensure, by 1 April 2016, no less 
favourable treatment for EU nationals than accord ed to Albanian nationals. This will require 
enhancing current administrative capacity. Mo reover, Albania will need to solve existing 
uncertainties on real es tate ownership rights. 
The 1993 Law on foreign investments provides for a free investment arrangement for both 
non-residents investing in Albani a and residents investing abroa d. Foreign direct investment 
(FDI) has been one of the main factors in th e recent economic development of Albania. In 
2009, 304 foreign companies, 74 branches and 21 offices representin g foreign companies 
were established in the country. The estimate d value of FDI for 2009 totalled €695 million. 
Privatisation in key sectors (banking, teleco mmunications and energy) has been the main 
source of FDI. So far the government has retain ed no special rights or  ‘golden shares’ when 
privatising strategic companies, but the existi ng legislation allows it to. The legislation 
governing investment in the non-banking financia l market includes provisions which are not 
compatible with the acquis  and can only be justified on the grounds of imperative reasons in 
the public interest. 
The Albanian legislative framework on payment systems  is different and far less developed 
than the current EU framework. Substantial am endments and adoption of new legal acts will 
be needed to bring it into line with the acquis . Cross-border payments are not regulated and 
rights and obligations related to provision and use of payment services apply to national 
transactions only and do not cover many aspects a ddressed by the EU directive. For example, 
provisions on electronic payment instruments are limited in scope and do not provide for 
consumer protection (settlement of disputes).  The administrative structure necessary for 
transposition of the acquis  is in place. However, it will need to be reinforced to cope with the 
increase in supervisory and enforcement dutie s during transposition and after adoption of the 
EU payment legislation. 
The main legislative acts regulating the fight against  money laundering are the 2008 Law on 
the prevention of money laundering and financ ing of terrorism (the AML law) and its 
implementing regulations. They already cover a number of requirements of the acquis . 
However, there are shortcomings concerning defi nitions, particularly of  beneficial owners, 
shell banks and politically exposed persons. Ce rtain measures required from financial 
institutions to deal with c onsumer due diligence (CDD) remain vague and provisions on 
politically exposed persons will have to be amended.  
Implementation of the anti-money-laundering legi slation is steadily pr ogressing, with the 
latest initiatives focusing mainly on definition of suspicious transactions, CDD requirements, 
record-keeping obligatio ns and supervisory issues. The Oc tober 2009 national strategy paper 
EN 58  EN on investigation of financial crime lays the foundations for progress in the fight against 
money laundering and financing of terrorism. 
The number of cases referred by the Financial Intelligence Unit (FIU) to the Prosecutor’s 
Office and the Albanian State Police has incr eased, as have the number and quality of 
inspections. However, effective implementation a nd enforcement of the legislation is a cause 
for concern. So far there has been only one conviction for money laundering. Despite a slight 
upward trend, the overall number of  suspicious transaction reports (STR) sent to the FIU 
remains low and unsatisfactory. Electronic repo rting remains very limited. Reporting is also 
uneven as, with the exception of commercial  banks, most financ ial or non-financial 
institutions do not send STRs to the FIU. More outreach to the pr ivate sector will be necessary 
to increase awareness of repor ting obligations. Moreover, the extensive use of cash in the 
economy and the high levels of organise d crime and corruption are hampering the 
implementation of the framework to fight m oney laundering and financing of terrorism.  
The General-Directorate for the Prevention of  Money Laundering (GDPML) serves as the 
FIU. Its organisation and functions are regulated  by the AML law. It operates as the national 
centre for collecting and anal ysing information on potential money laundering and terrorism 
financing activities and disseminating it to la w enforcement agencies. The capacity of the 
GDPML has been improved with additional staff,  training and IT equipment, but its overall 
capacity remains limited, in particular on the analysis side. C ooperation between law 
enforcement bodies has improved and specialised training for all institutions has continued, 
but further efforts are still needed.  
Conclusion 
Capital movements in Albania are essentially li beralised and so far the country has met the 
deadlines for implementing its SAA commitments in this area. However, further efforts are 
still needed and the acquis  on payments will need to be transposed. Adequate human 
resources need to be made available. A sound legal framework is in place to fight money 
laundering and financing of terrorism. Legislat ion needs to be further aligned with the acquis, 
but it should be possible to solve the existing shortcomings in the medium term. Effective 
enforcement of legislation will require further efforts and political determination to address 
systemic issues such as the large cash econom y and the high levels of organised crime and 
corruption. An additional challenge will be to provide adequate training, guidance and 
supervision to the private sector.  
Overall , Albania will have to undertake a dditional efforts to align with the  acquis  and to 
implement it effectively in the medium term in the field of free movement of capital. 
3.5. Chapter 5: Public procurement 
The acquis on public procurement includes the genera l principles of transparency, equal 
treatment, and non-discrimination. In addition, specific EU rules apply to coordination of the 
award of public contracts for works, services  and supplies, for the classical sectors, for 
utilities and for the fields of defence and se curity. The scope of application is defined 
according to contracting entities, contracts c overed, application thresholds and specific 
exclusions. The acquis also lays down rules on review pr ocedures and the availability of 
remedies.  
EN 59  EN The Stabilisation and Association Agreement (SAA)  stipulates that EU companies, whether 
established in Albania or not, must have access to contract award proced ures in Albania based 
on treatment no less favourable than that accorded to Albanian companies.  
The Albanian legislation is broadly aligned with the general principles  applying to public 
procurement on the internal market. However, not  all the provisions of the public procurement 
directives have yet been transposed.  
Award of public contracts  is regulated by the 2006 Public Procurement Law (PPL), which 
was last amended in 2009. Detailed rules for imp lementing the law are in place. The PPL is 
aligned with the basic principles of the acquis . However, further alignment will be required in 
areas such as certain award procedures, remedi es and defence-related procurement. The 2006 
Concessions Law (CL) provides th e legislative framework for c oncessions. Detailed rules on 
the award procedures are in place. The CL is not aligned with the acquis and does not  include 
provisions relating to works and service con cessions. Albania has no specific legislation on 
public-private partnerships.  
As regards administrative capacity, the Public Procurement Agency (PPA) is the government 
authority responsible for policym aking and implementation in the field of public contracts and 
concessions. It also gives procuring entities a dvice and support to ensure proper application of 
the legislation. The PPA is no longer responsible for review  procedures, as a new body, the 
Public Procurement Commission (PPC), was es tablished for this purpose by the latest 
amendments to the Public Procurement Law. As a consequence, the staff of the PPA has been 
reduced from 36 to 18 and attention will be required to ensure that the PPA retains adequate capacity. The establishment of the PPC w ill ensure separation of policymaking and 
implementation from remedies  functions, bringing the system more into line with the EU 
rules. The PPC is responsible for remedies, bot h for public contracts and for concessions. Its 
members are elected by the Counc il of Ministers. At present the PPC has a staff of 18. There 
is a need to ensure that it has adequate re sources to carry out its functions effectively. 
Safeguarding the independence of the PPC will be  essential. Particular attention should be 
paid to avoiding conflicts of interest and pr eventing corruption. The re sponsibilities of the 
PPC and the PPA and the arrangements for inte raction between them need to be clearly 
defined. 
The Public Procurement Advocate came into opera tion in 2008 to perform functions similar to 
an ombudsman, safeguarding the right s and interests of suppliers against acts or omissions by 
contracting authorities. The PP Ad vocate is appointed by parliament for a five-year term, on a 
proposal by the Council of Mini sters. In the area of conces sions, the Concession Treatment 
Unit in the Ministry of Economy has certain functions for promo ting and assisting contracting 
authorities in evaluating and negotiating concessions. 
Conclusion 
So far Albania has fulfilled its SAA commitments in this area. The legislative and institutional 
framework provides a good basis for development of an effective publi c procurement system 
in line with EU rules. Adequate  capacity needs to be ensured in all public procurement bodies 
and clear definitions of respons ibilities and cooperation mechan isms need to be established. 
Safeguarding the independence and effectiveness of the review procedures will be essential. 
Overall , Albania will have to undertake a dditional efforts to align with the acquis  and to 
effectively implement it in the medium term, pa rticularly in the areas of concessions and 
remedies. 
EN 60  EN 3.6. Chapter 6: Company law 
The company law acquis  includes rules on disclosure re quirements, formation, maintenance 
and alteration of capital, mergers and divisions, takeover bids and shareholders' rights, as well 
as corporate governance principles. In  the area of financial reporting, the acquis  lays down 
rules on presentation of annual and consolidated  accounts, including simplified rules for small 
and medium-sized enterprises. Particular acco unting rules apply to the banking and insurance 
sectors. Application of Inte rnational Accounting Standards is mandatory for some public-
interest entities. In addition, the acquis  specifies rules on the approval, professional integrity 
and independence of statutory auditors.  
The Albanian legislation on company law is, overall, consistent with the acquis  on disclosure 
requirements, takeover bids, formation of public  limited liability companies and alteration of 
their capital and rights of shareholders in list ed companies. However, further alignment will 
be required on disclosu re of information, minimum subscrib ed capital requirements for public 
limited companies, cross-border mergers and on reporting and documentation requirements 
for mergers and divisions. Al bania has not yet adopted a corporate governance code.  
The establishment of the National Registration Centre (NRC) in 2007 marked a significant 
step towards simplification of the regulatory fra mework for registration of companies. The 
NRC functions as a one-stop shop and has 32 service desk s in operation throughout the 
country. The average time for effective regist ration is one day and a single registration 
number is valid for every step of the procedure.  At present, shortcomings in implementation 
of the legislation on electroni c signatures are hampering el ectronic applications for 
registration.  
The NRC maintains the commercial register, whic h is kept in electronic form. There is no 
legal condition that members of the public must have a legitimate interest before they can request information regarding files stored in th e register. Electronic access to the data in the 
company information register is possible. The law provides for compulsory annual disclosure 
of accounting documents. However, the low le vel of compliance point s to inappropriate 
penalties for the purposes of the EU directiv e. There is still no mechanism in place for 
coordination and cooperation with re gisters from EU Member States. 
Corporate accounting  is regulated by the Law on accounti ng and financial statements. The 
law entered into force in 2006 a nd is largely a ligned with the acquis . All companies listed on 
the stock exchange and their affiliates, togeth er with banks, financial institutions, insurance 
and reinsurance funds and securities and al l companies licensed to conduct investment 
activities are required to apply international fi nancial reporting standards (IFRS). This also 
applies to large economic entities meeting set criteria on their number of employees and bi-
annual revenue. Other entities are required to apply the 2008 national accounting standards. 
The National Accounting Council is responsible  for reviewing and advising on laws and 
regulations and for improving ac counting methods and qualificati ons. It also dr afts national 
accounting standards and translat es IFRS into Albanian.  
The Albanian legislation on statutory audits , organisation of statutor y audits and certified 
accountant professions is br oadly aligned with the acquis  as regards public oversight, 
registration of auditors, appr oval and withdrawal of approval, education and training. The 
Public Oversight Board (POB) for the audit profession was established in 2009. It will be 
necessary to guarantee its indepe ndence. The salaries of its me mbers are paid by the Ministry 
EN 61  EN of Finance and at present it depends on the Ins titute of Registered Chartered Accountants for 
administrative support. A system for investigations and discipli nary action in line with the 
acquis  is not yet in place. Further measures will be required to ensure independent supervision 
by the POB of the quality assurance work undertak en by the Institute of Registered Chartered 
Accountants. The current legisl ation and practices do not ensu re sufficient independence.  
Conclusion The Albanian legislation on corporate accounting a nd statutory audits is broadly aligned with 
the acquis . The national accounting standards are deve loped in accordance with the law and 
international accounting standards. However, furt her alignment is required in the area of 
company law, including adopti ng the corporate governance code  and operating the business 
register. Further efforts will be needed to en sure adequate capacity and independence on the 
part of the POB and guarantee its investigat ive and disciplinary powers and independent 
supervision of quality assurance.  
Overall , Albania will have to undertake a dditional efforts to align with the acquis  and to 
implement it effectively in the medium term. 
3.7. Chapter 7: Intellectual property law 
The primary objective of the EU acquis in the area of intellectual property rights is to ensure 
the proper functioning of the internal market while striking the right balance between the 
rights of right-holders and the interests of users and adapti ng the legal framework to the 
changing technological envi ronment. The copyright  acquis harmonises rules on legal 
protection of copyright and rela ted rights. Specific provisions apply to protect databases, 
computer programs, semiconductor topogra phies, satellite broa dcasting and cable 
transmission. The acquis on industrial property rights sets out harmonised rules for legal 
protection of trademarks and designs. Spec ific provisions apply to biotechnological 
inventions, pharmaceuticals and plant protection products. The acquis also establishes an EU 
trademark and EU design. Finally, the acquis contains harmonised rules for enforcement of 
copyright and related rights and industrial property rights. It re quires Member States to set up 
adequate implementing mechanisms, in par ticular effective enforcement capacity.  
The Stabilisation and Association Agreement states that Albania mu st take the measures 
necessary to guarantee, by 1 December 2010, a leve l of protection of intellectual, industrial 
and commercial property rights similar to that ex isting in the EU, including effective means of 
enforcing such rights.  
Albania acceded to the World Trade Organisa tion (WTO) in September 2000 and is therefore 
party to the TRIPS Agreement. It is also party to a number of international agreements, such 
as the Berne Convention on the protection of lite rary and artistic works,  the WIPO Copyright 
Treaty and the WIPO Performances and Phonograms Treaty, the Universal Copyright 
Convention and its two Additional Protocols, the Rome International Convention for the 
protection of performers, phonogram produ cers and broadcasting organisations, the 
Convention for the protection of phonogram pr oducers against unauthori sed duplications of 
their phonograms and the International Conventi on for the protection of new varieties of 
plants. Therefore, the country has fulfille d its SAA commitments in this respect.  
Albania has adopted a national strategy for th e enforcement of intellectual and industrial 
property rights (IPR) with the objective of achieving a level of IPR protection similar to that in the European Union countries. The strategy sets out the obligations and roles of all the 
EN 62  EN institutions involved. Its aims include build ing adequate administrative capacity, improving 
inter-institutional cooperation a nd coordination, and informing a nd raising the awareness of 
the public on the benefits of IPR.  
The current Law on copyright and neighbouring rights  entered into for ce in 2005 and is not 
compliant with a number of EU Directives. The new law on copyright, drafted with the 
assistance of the World Intellectual Property Or ganisation (WIPO), has not yet been adopted. 
A Law on administrative contraventions was adopt ed in 2010 to improv e collection of fines 
for infringements of copyright . The Albanian Copyright Offi ce (ACO) established in April 
2007 is the main institution responsible for monitoring and implementing the law on 
copyright. There are two Regional Copyright Offi ces, with ten more planned according to the 
IPR strategy. Information technology capacity of the copyright offices  and on-line copyright 
services need strengthening.  
As regards industrial property rights , the 2008 Industrial Prope rty Law complies largely 
with the acquis. A number of implementing regulations are also in place. In 2010 Albania 
became a contracting party to the WIPO Pate nt Law Treaty and a full member of the 
European Patent Organisation (EPO). The Gene ral Directorate for Patents and Trademarks 
(GDPT) is responsible for granting and admini stering patents, commercial trademarks and 
service marks, industrial desi gns and geographical indications . The IPR strategy foresees 
establishing a network of centres for tec hnical and scientific information under the 
responsibility of the GDPT. The administrativ e capacity of the GDPT needs reinforcing and 
the security of its IT syst ems needs to be upgraded.  
Regarding enforcement , the legal framework will have to be thoroughly revised and its 
alignment with the acquis  will need to be established. The main institutions active in IPR 
enforcement are the ACO, the GDPT, the Ge neral Directorate for Customs, the Tax 
Inspectorate, the Prosecutor’s Office, the polic e and the courts. The Ge neral Directorate for 
Customs includes a directorate fo r the protection of intellectual  property and has powers to act 
ex officio,  but not the ACO or the GDPT. The IPR st rategy foresees establishing a Market 
Inspectorate for Industrial Propert y to identify and monitor infr ingements of IPR legislation. 
However, the necessary legislation is still outstanding. 
The current legal and institutional set-up is weak  and implementation of IPR is hampered by 
many shortcomings. Both the ACO and the GDPT lack capacity, particularly for copyright 
inspection. Cooperation between enforcement inst itutions needs to be improved to ensure 
enforcement of IPR in practice. There are no specialised courts for IPR matters and the 
judiciary lacks appropriate experience and qua lifications. The number of infringement cases 
brought to court and the number of  convictions are low. Sanctions  are not effective, as the 
level of fines and collection rates remain low. Public awareness of IP R is poor. The collective 
management societies are not work ing appropriately. Their income is very low, as most users 
do not pay royalties.  
Conclusion 
Albania has drafted a new law to bring its legi slation on copyright and related rights into line 
with the acquis . This law is expected to be adopted before the end of 2010. Alignment with 
the acquis  on industrial property rights  needs to continue. Albani a adopted a na tional strategy 
for the enforcement of IPR aiming at further ap proximating its practices to those of the EU. 
EN 63  EN Shortcomings in human, technical and financial re sources, particularly at the level of the law 
enforcement bodies and the judiciary, are hamper ing effective enforcement of intellectual and 
industrial property rights. Overall , Albania will have to s how determination and make 
considerable and sustained efforts to align with the acquis  and to implement it effectively in 
the medium term. At present it is doubtful that  the country will be able to meet the 1 
December 2010 deadline to comply with its SAA obligations.  
3.8. Chapter 8: Competition 
The competition acquis covers anti-trust, merger  and State aid  control policies. It includes 
rules and procedures to fight anti-competitive behaviour by companies (restrictive agreements between undertakings and abuse of dominant pos itions), to scrutinise mergers and to prevent 
governments from granting State aid that dist orts competition on the internal market. 
Competition rules are directly applicable th roughout the Union and Member States must 
cooperate fully with the Co mmission on enforcing them. 
The Stabilisation and Association Agreement  (SAA) includes provisions  closely aligned with 
a large part of the competition acquis.  These cover anti-competitive agreements between 
undertakings, abuse of dominant positions a nd State aid distorting competition. The SAA 
includes rules applying to public undertakings and to undertaki ngs which have been granted 
special and exclusive rights and prohibits quantita tive restrictions on imports from the EU into 
Albania. The SAA provides for operationally independent public  authorities to supervise 
application of the competition rules. It also in cludes a protocol laying down rules on State aid 
in the iron and steel sectors. 
As regards anti-trust and mergers, the current Competition Law applies to all sectors of the 
economy and is modelled on the EU  rules. The law was amende d in September 2010 and is 
now in line with the esse ntial elements of the acquis. The amended law significantly lowers 
threshold values for prior notification of me rgers to the Albanian Competition Authority 
(ACA). This could lead to an increase in notifications making it important to ensure that the 
ACA has adequate administrative capacity  to deal with the increased caseload.   
As regards administrative capacity, the ACA is a public body and a separate legal entity 
which performs its tasks independently and re ports to parliament. The chairman and four 
members of the authority’s decision-ma king body - the Competitio n Commission - are 
appointed by parliament for a five-year term . The ACA has adequate investigative powers 
including requesting information and searching companies’ premises. It may impose fines on 
undertakings and public bodies. The thresholds for fines are being revised to bring them 
closer into line with EU policy. The ACA’s deci sions are subject to judicial review. The ACA 
may also intervene in regulated sectors by i ssuing policy recommendati ons. The ACA staff of 
35 appears insufficient, considering the numer ous tasks given to the authority and the 
lowering of the merger notification thresholds.  
The 2005 State Aid  Law was amended in 2009 to align it further with EU rules. The amended 
law includes rules on State aid for risk capital and for environmental protection. It allows 
State aid, including risk capital, to be grante d to SMEs under certai n conditions. A State aid 
inventory was compiled in January 2008. In 2007 Al bania confirmed that it had no intentions 
to grant state aid to its  iron and steel industry. 
As regards administrative capacity , the State Aid Sector (SAS ) under the Department for 
Market Mechanisms and State Aid in the Mi nistry for Economy, Trade and Energy (METE) is 
EN 64  EN the administrative body in Albania’s two-tier sy stem. The SAS carries out investigations and 
prepares proposals for State ai d decisions. Until early 2010, investigative and operational 
tasks were performed by a separate State Aid Department. The SAS has the same number of 
staff (four) as the former St ate Aid Department and has re portedly retained the same 
responsibilities and tasks. Howeve r, it needs to be established th at this apparent downgrading 
does not impinge on its operational capacity. The State Aid Commission (SAC) is the 
decision-making body for State aid control. It is chaired by the Minister of Economy. The 
SAC's four members are appointed by the Counc il of Ministers and ma y include nominees put 
forward by the METE, which is likely to be one of the main  granters of aid. The SAC 
authorises State aid schemes and individual aid and may r ecover unlawful aid. It also 
monitors the use made of St ate aid. The SAC may initiate ex officio  investigations and third 
parties have the right to submit complaints to it. To date, no ex officio  cases have been opened 
and no complaints have been received. 
Concerning liberalisation , the Competition Law incorporates the principles of the acquis  
regarding services of general economic interest. A number of undertakings in the transport, 
public utilities, postal services and energy sect ors enjoy special or ex clusive rights. Certain 
reserved sectors are supervised by sectoral re gulatory authorities. Fu rther analysis of the 
compatibility of these practices with the acquis will be  needed.  
Conclusion 
Albania’s legal framework for competition is largely based on EU rules and the necessary legal 
and administrative structures are in place. Howeve r, sufficient safeguards need to be put in 
place to guarantee the operational independ ence and administrative capacity of the 
Competition and State aid authorities so that they can enforce the legislation efficiently. The 
actual independence of sectoral regulators needs to be demons trated. Further monitoring and 
analysis of Albania’s progress towards market libe ralisation in reserved sectors in line with the 
acquis will be required. 
Overall , Albania will have to undertake add itional efforts to align with the a cquis  and 
implement it effectively in the medium term.  
3.9. Chapter 9: Financial Services 
The main objectives of the acquis as regards financial services  are to ensure financial 
stability, the financial soundness of companie s operating in the financial sector and 
appropriate protection of consum ers, investors and policy-holde rs. The aim is to build up 
confidence in the financial markets and to provide a level playing field. The acquis on 
financial services includes rules on author isation, operation and supe rvision of financial 
institutions in the areas of banking, insurance,  supplementary pensions, investment services 
and securities markets as well as on financial ma rket infrastructure. Financial institutions can 
operate across the EU in accordance with the ‘sin gle passport’ and the ‘home country control’ 
principle, either by establishing branch es or by providing cross-border services. 
As regards banks and financial conglomerates , the current Albanian legislation constitutes a 
solid ground for further alignment with the EU banking acquis , such as on calculation and 
adequacy of own funds, concentration of expos ures, capital requirements, deposit guarantee 
and supervision of financial conglomerates. Th e Bank of Albania is responsible for licensing 
and supervising banks and branches of foreign banks in Albania and the branches of licensed 
banks operating abroad. The Bank  of Albania has increased it s regulatory activity and 
EN 65  EN reinforced and restructured its Supervision De partment with special emphasis on risk-based 
supervision. It has signed memoranda of understa nding with other institutions on the domestic 
financial market and with fore ign supervisory authorities of banking entities  operating in 
Albania. There are 16 banks operati ng in Albania, all of which ar e totally or partially foreign-
owned. The Bank of Albania’s strategy of gra dual implementation of the Basel II Accord 
reflects the development of the domestic banking system.  
The capacity of the BoA is adequate to ad dress the challenges pos ed by approximation of 
Albania’s legislative and regulat ory framework to the EU rules.  The responsibilities of the 
Bank’s Regulation Office and of the Methodol ogy and Analysis Office include adoption of 
best practices and approximation of the legislative framework to the EU. 
In the field of insurance and occupational pensions , the 2004 Albanian Insurance and Re-
insurance Act is not aligned with the EU dir ectives on life and non-life insurance. Albania’s 
legislation on voluntary pe nsion plans does not reflect  all provisions of the acquis  as regards 
the activities and supervision of institutions fo r occupational retirement  provision. As regards 
motor insurance, tariffs for compulsory insuran ce and third party liability will need to be 
liberalised in line with EU rules.  
As regards securities markets and investment services , the Albanian regulated securities 
market consists of the Tirana  stock exchange and the governm ent securities retail market. 
There are no multilateral trading facilities in Albania and no specific rules are yet in place, neither on MTFs nor on trading on MTFs. Th e government securities retail market in 2008 
was dominated by short-term instruments. Th e Law on securities and the Law on collective 
investment are partly aligned with the acquis and provide a good basis for further alignment . 
The Law on corporate bonds and local government bonds of October 2009 regulates the issuance of bonds by joint stock companies resi ding in Albania and by local governments. 
Nevertheless there are discrepancies from the definitions and exemptions provided for in a number of EU directives (e.g. the Prospectus Directive, MiFID, the Market Abuse Directive 
and the UCITS Directive), and no system for judicial appeal is in place in the authorisation 
procedure. There is no legislation on investor  compensation schemes. Due attention will be 
required to take into account impending amendments to the acquis  on investment services.  
The Albanian Financial Supervisory Authority  (AFSA) is the regulatory and supervisory 
authority in the fields of insurance, occupa tional pensions and secu rities. AFSA is an 
independent body funded essentially by its own resources. It has ade quate oversight and 
investigative powers, but lack of adequate administrative sanctions for market abuse, inter 
alia, is limiting its capacity to ensu re market surveillance. AFSA became a full member of the 
International Organisation of Securities Commissions (IOSCO ) in 2009, thus paving the way 
for cooperation and exchanges of information with counterpart institutions worldwide. AFSA’s administrative capacity will need to be strengthened to cope w ith the challenge of 
alignment with the Solvency II framework.  
Conclusion 
Albania’s legislation in the field of financial services is partly in line with the acquis  and lays 
a solid foundation for further alignment. There is  adequate capacity in the banking sector, but 
further efforts will be need ed in the non-banking financial sector to enforce market 
surveillance and ensure adequate cap acity to face future challenges.  
EN 66  EN Overall , Albania will have to undertake a dditional efforts to align with the acquis  and to 
implement it effectively in the medium te rm, particularly in the non-banking sector.  
3.10. Chapter 10: Information society and media 
The acquis  on information society and media aims to  eliminate obstacles to the effective 
operation of the internal market  in electronic communication se rvices and networks, promote 
competition and safeguard consumer interests in the sector, including the universal availability of basic modern services. It also  includes rules on information society services 
and a transparent, predictable and effectiv e regulatory framework for audiovisual media 
services in line with European standards. 
The Stabilisation and Association Agreement  (SAA) calls for Albania to adopt the acquis  on 
electronic communications networ ks and services by April 2010.  
In the field of electronic communications and information technologies, the 2008 Law on 
electronic communications, which provides for broad approximation to the 2002 EU 
regulatory framework, will need to be amended to take into account re cent developments in 
the acquis  (in 2009). In addition, a number of relate d implementing regulations were adopted 
late and this has resulted in Albania not fulfilling its SAA commitments on time. The 1998 
Law on public and private radi o and television regulates ra dio and television activities, 
including satellite and cable services. Cable TV  operators still require individual licences for 
provision of telephony and internet services, ev en though a general au thorisation system 
applies to all other telephony providers under the Law on electr onic communications.  
Existing legislation lays dow n the conditions for liberalisation of the electronic 
communications and services market. Tariff  re-balancing is being applied, but key 
competitive safeguards, including local l oop unbundling, carrier selection, carrier pre-
selection and cost orientation of wholesale ch arges by the incumbent operator, have not yet 
been implemented. Number portability has not been applied within the timeframe set by the 
law. An updated regulation on access and interc onnection was adopted in June 2010. From 1 
November 2010 onwards the mobile operators w ith significant market power (SMP) will no 
longer have obligations on termination of intern ational calls. Competiti on is very limited on 
the fixed telephony market, with only one operator licensed to provide se rvices throughout the 
country. There is some competition on the provi sion of broadband internet market. Mobile 
telephony penetration is high, due in part to th e practice of having more than one SIM card. 
Overall, insufficient regulation and non-impl ementation of competitive safeguards are 
hindering effective competition.  
The Ministry for Innovation and Information a nd Communication Technology is in charge of 
policymaking and legislation. The Agency for El ectronic and Postal Communications (AKEP) 
is the regulatory authority and is also responsib le for market surveilla nce and implementation 
of legislation. The administrati ve capacity and technical expe rtise of the ministry and AKEP 
need to be strengthened to address the re sponsibilities introduced by the 2002 EU regulatory 
framework and its subsequent revision. Th e Albanian legislation provides for the 
independence of the national regulator, a key component of the EU regulatory framework. 
However, the circumstances surrounding the di smissal of the steering committee of AKEP 
and the appointment of new members in 2008 and 2009 cast doubts over its effective independence.  
EN 67  EN Legislation on information society services  is progressively bei ng approximated to the 
acquis.  In particular, legislatio n concerning eSignature is  a good approximation of the 
directive. Nevertheless, ther e are shortcomings, for exampl e regarding data retention, 
unsolicited communications, itemised billing and conditional access. The 2009 Law on 
electronic commerce will need to be amended to a ddress restrictions to the freedom to provide 
information society services. Overall, additio nal efforts are needed to ensure effective 
implementation of legislation and policies. Th e main priorities of the 2009 strategy on the 
information society cover infrastructure, e-go vernance and public services, education and 
knowledge, e-business and development of the le gislative framework. However, a broadband 
policy has not yet been develope d and investment in communication infrastructure is still 
poor.  
The National Agency for the Information Society (NAIS) has been integrated into the 
Ministry for Innovation and Information and Communication Technology which is 
responsible for reforms relating to the in formation society and for implementing the 
information society strategy. Other institutions relevant in this field are the Agency for 
Electronic and Postal Communications, the Co mmissioner for Personal Data Protection and 
the National Authority for Electronic Certif ication. The government has shown commitment 
to developments in this fiel d by allocating budgetary and human  resources, but administrative 
capacity to implement policies and legislation remains weak overall. A national contact point 
will also need to be established, as required by the Directive on e-commerce.  
The main legislative acts in the field of audiovisual policies  are the Law on public and 
private radio and television in the Republic of Albania, the Law on digital broadcasting, the 
Law on the press and the Law on the right to information on official documents. Albania’s 
legislative framework is only partly aligned w ith European standards on media regulation. In 
particular, it is not aligned w ith the Audiovisual Media Services Directive and it fails to 
ensure some of the main standa rds, such as guaranteeing the independence of th e broadcasting 
regulatory authority and of th e public service broadcaster. The legislation also lacks 
provisions for regulating on-demand and online a udiovisual services. Adop tion of the strategy 
for switching from analogue to digital broadcas ting is still pending. Othe r issues also require 
attention. In particular, there is  a need to ensure freedom of expression and a better media 
climate by decriminalising defamation and libel. (See Chapter 1.2 - Civil and political rights)  
Albania is party to the Council of Europe C onvention on trans-frontier television and to the 
UNESCO Convention on the promotion of  diversity of cultural expressions.  
Parliament is in charge of policymaking a nd the National Council for Radio and Television 
(NCRT) is the regulatory authority monitoring enforcement. The NCRT’s administrative and 
technical capacity is currently insufficient to meet the obligations imposed by the Audiovisual Media Services Directive. The NCRT is an independent authority. Ho wever, measures are 
required to guarantee its effective independen ce, including amendments to the existing 
legislation.  
Conclusion 
Albania’s legislation is partly aligned with the acquis.  However, effective implementation of 
legislation is lagging behind and will require  building adequate capacity in the national 
regulatory authorities and guaranteeing their i ndependence. The country failed to meet its 
SAA obligations on electronic communications ne tworks and services on time. The existing 
legislation on audiovisual media services fails to ensure some of the main EU standards on 
EN 68  EN media regulation. The overall climate for the media needs to be improved by adopting the 
draft law on audiovisual media services, decr iminalising libel and defamation, adopting the 
digitalisation strategy and increasi ng transparency of media ownership. 
Overall , Albania will have to make considerable and sustained efforts to align with the acquis  
and to implement it effectively in the medium term in the field of information society and 
media. The country needs to ensure implementa tion of its SAA commitments in the field of 
electronic communications ne tworks and services.  
3.11. Chapter 11: Agriculture and rural development 
The acquis  on agriculture and rural development covers a large number of binding rules, 
many of which are directly applicable. The proper application of these rules and their 
effective enforcement and control by an effici ent public administration are essential for the 
functioning of the common agricultural policy (CAP). Running the CAP requires the setting 
up of a paying agency and management and c ontrol systems, such as an integrated 
administration and control system (IACS), and the capacity to implement rural development 
measures. Member States must be able to appl y the EU legislation on direct support schemes 
and to implement the common market organi sation for various ag ricultural products.  
Gradual liberalisation of agricultural trade betw een the EU and Albania has been provided for 
by an Interim Agreement on trade and trade-related matters since December 2006 and, since April 2009, by the Stabilisation and Association Agreement . Albania is a member of the 
World Trade Organisation and Central European Free Trade Agreement and implements liberal arrangements for trade in agricultural and food products. Their main features are a 
simple tariff system with a maximum duty of 15% ad valorem  and the absence of incentives 
or support schemes for imports and exports of agricultural products. Albania has a free trade 
agreement with Turkey.  
Agriculture continues to be one of the main  sectors of the economy, generating about 18.5% 
of Gross domestic product (in 2008) and 48.3%  of total employment. Around 500,000 people 
work in agriculture, of whom 55% full tim e and 45% part time. Labour productivity in 
agriculture is only 30% of la bour productivity in the rest of the Albanian economy and 20% 
of the EU labour productivity in agriculture. More than  50% of the total population live in the 
rural areas where agriculture is  the main economic activity.  
The annual growth rate of agricultural production  during the last five years was around 3 to 
3.5%. Factors hindering the growth of this sector include the sm all size of farms (1.2 ha on 
average), land fragmentation (3.8 parcels per farm), underdeveloped i rrigation and drainage 
systems, deficient infrastructure, lack of access to markets, the low level of development of 
the agri-food industry, the low t echnological level, w eak farmers organisa tions and lack of 
access to financing. The land market lacks dynam ism and functions below its potential due to 
problems with registration and unsettled land ownership.  
The utilised agricultural area (UAA) tota ls approximately 1.15 million ha, of which 
697,000 ha are arable land. About 43% of the arab le land is in lowl and areas with high 
productivity, 34% is in hilly areas and 23% is in mountainous areas. Livestock production 
accounts for 46% of the total production of the sector, followed by crop s with 42% and fruit 
with 12%. Albania is a net importer of food pr oducts with a considerable negative trade 
balance. Around 80% of agricultura l exports go to the EU. As fo r imports, the EU share is 
60%.  
EN 69  EN The Ministry of Agriculture, Food and Cons umer Protection (MAFCP), responsible for 
agricultural policymaking, has a staff of 2,20 0. The Agency for Agricultural and Rural 
Development (AARD, the paying agency ) was established at the end of 2008 to implement 
the support measures in the agricultural, food and rural development sector. It has been 
designated as the future IPARD agency in charge of implementation of pre-accession 
measures. 
The general land register information exists only  in manual form and is not complete or up to 
date. The vineyard register was completed recently. An agricultural census is foreseen to take place in 2012. The results should provide a strong basis for designing agricultural and rural development policy. ( See Chapter 18 – Statistics ). 
Albania’s agricultural policy is based on the Agriculture and Food S ector Strategy for 2007-
2013. The strategic sectors are (i) fruit, olive an d grape production; (ii)  vegetable production; 
(iii) livestock products; (iv) pr ocessing of fruit and vegetables ; (v) processing of grapes; and 
(vi) processing of meat and milk.  
Support for production is provided by a series of  measures covering, in particular, subsidies 
for new plantations, drip irrigation, greenhou se equipment, headage payments for sheep, 
production aid for milk and olive oil, subsid ies for organic producti on and interest-rate 
subsidies for agriculture and th e agro-industry. The list of meas ures (some of which fall under 
the broad heading of rural devel opment) and the level of support can change from one year to 
the next. The budgetary expenditure on su ch support totalled €10 million in 2009. 
Direct payments  in Albania are not compatible with the EU rules. There are substantial 
differences in the way direct support to farmers is  delivered. Contrary to  the approach taken in 
the reformed CAP, direct aid payments are coup led and will therefore need to be brought into 
line with the EU acquis . Direct aid is currently granted to  Albania’s key pr oduction sectors: 
production aid for milk and o live oil and headage payments  for sheep and goat production. 
The aid rates are set annually. No obligations to comply with environmental standards or any 
other type of ‘cross-compliance’ standards have  been introduced so far. Albania will also 
have to put in place an information system for beneficiaries of CAP payments under shared 
management and ensure yearly publi cation of names of beneficiaries. 
There is no established structure equivalent to the integrated admi nistration and control 
system ( IACS ). Introduction of a functioning IACS, including a farm register, an IT system 
and a land parcel identificati on system, is a difficult and lengt hy task that will require 
extensive investment and institution-building we ll in advance of accession. Albania will also 
need a farm accountancy data network  (FADN ) in line with the acquis .  
With regard to State aid,  apart from market-related subsidie s and rural development measures, 
Albania applies a number of additional measures. Albania will need to br ing all its State aid 
measures into line with the EU rules and guidelines. 
Agricultural markets are vulnera ble and still under constructi on. The accent is being put on 
developing regional markets, predominantly served by small farmers. There is nothing 
comparable to the common mark et organisation under the EU acquis .  
Regarding  arable crops,  cereals  are grown on 628,000 ha, wheat and maize being the main 
crops. Potatoes are grown on 200,000 ha, show ing an upward trend in recent years. 
Production of other arable produc ts is of little significance in Albania. Albania’s self-
sufficiency rates are 56% for wheat, 81%  for maize and 91% for potatoes.  
EN 70  EN Cattle breeding is the largest sub-sector in animal production . Beef production is 
66,000 tonnes, sheep and goat  meat production 44,000 tonnes, poultry  17,000 tonnes and pig 
meat  16,000 tonnes. Albania’s self-sufficiency ra tes are 95% for beef, 99% for sheep and goat 
meat, 48% for poultry and 58% for pig meat. Total milk production was 1,045,000 tonnes in 2009, of which 87% was cow milk. About 10% of milk and milk products  consumed in the 
country are imported.  
As regards  specialised crops , in Albania about 30,000 ha are pl anted with vegetables and 
watermelons, cultivated in open fields, plus about 750 ha in greenhouses. Fruit trees occupy 
an area of 20,000 ha, olive trees 42,000 ha and vineyards 10,000 ha. Estimates for 2009 put 
production of vegetables  at 730,000 tonnes, of frui t at 47,202 tonnes and of olive oil  at 5,060 
tonnes. About 70% of farms produce vegetables, 80% cultivate fruit trees , 33% olive trees and 
19% vineyards.  
Production and yield of fruit and vegetables have been increasing year by year, but the sector 
is affected by the low collec tion and storage capacity and by the low level of producers' 
organisations. Despite the efforts made to promote and disseminate new production 
technologies and improve standards and market c onditions, the fruit and ve getables sector still 
does not meet the need to supply the local market all year long. 
Arboriculture and viticulture have been the fastest developing sectors over the last few years. 
Albania grants a per-hectare subsidy for planti ng new olive trees, fruit trees and vineyards. 
This measure is not in line with the acquis .  
Farmers organisations are very weak and no support is granted from the national budget to 
promote establishment of groups of producers, as is the case under the EU common market 
organisation for fruit and vegetables. Albania ne eds to set up the administrative structure and 
legal provisions which would allow it to opera te a system of producers' organisations, 
producer groups, associations of producers' orga nisations and inter-bra nch organisations in 
line with the EU acquis  (rules on recognition, operationa l programmes, operational funds, 
eligibility criteria, etc.).  
Particular attention needs to be paid to ali gning existing marketing standards to EU standards 
and to performing conformity checks in line with the acquis  (trader database, risk analysis, 
etc.). Development of the market information sy stem will be necessary in order to meet the 
obligation to notify the Commission of producer prices for fruit and vegetable products, based 
on type, variety, size and/or presenta tion at representative markets.  
Rural development  in Albania is based on the rural de velopment cross-cutting strategy for 
2007-2013. A range of foreign-fina nced stand-alone programm es, coupled with national 
support measures, have been completed or are in implementation or preparation stage. The 
primary focus within the rural development policy remains, however, on agriculture. In 
addition, the measures currently applied have li mited scope and there is  a need for additional 
alignment with the EU acquis. 
The strategic approach applied to rural development does not take sufficient account of agri-
environmental aspects, of the transition from agricultural to non-agricultural employment and 
of training and education for peopl e in rural areas. Participati on by sectoral stakeholders in 
strategic planning exercise s needs to be secured. 
Responsibility for implementation of the rural development policy lies w ith the Ministry of 
Agriculture, Food and Consumer Protecti on. The capacity for both programming (for 
EN 71  EN example, preparation and adaptation of the programme, monitoring and evaluation) and 
implementation (for example, selection of proj ects, authorisation and control of payments) 
needs to be enhanced. Extension services would ha ve to be strengthened in order to facilitate 
participation by farmers in implementation of rural development measures.  
As regards  quality policy , Albania protects geographical  indications and traditional 
specialities by means of trademarks and, in par ticular, certified trademar ks, which is different 
from the EU system of geographical indications  and traditional speciali ties. This would have 
to be brought into line with the EU acquis . 
Organic farming  is a relatively small sector, but can be  expected to grow in the future as a 
result of domestic support and ongoing internati onal projects and trends. The total surface 
area of certified organic farms in Albania is 89,000 ha, but more than 99% of this area is 
occupied by uncultivated products (such as me dicinal and aromatic plants). Over 99% of 
these products are exported. The number of op erators registered in 2009 was 61, seven of 
which are groups of farmers. Albania’s legisl ation on organic farming needs to be further 
aligned with the acquis . 
Impact 
The estimated impact  of accession by Albania on the EU common agricultural policy is 
commensurate to the structure and size of Alba nia’s agricultural sect or. Albania would add 
1.15 million ha of UAA to the EU agricultural se ctor (equal to 0.6% of the EU UAA). Crop 
production, like production of mil k, beef and sheep, would equal a very small percentage of 
current total EU-27 production. Overall, a prel iminary assessment suggests that Albania’s 
membership of the EU would have a very limited impact on the CAP. 
Conclusion 
Overall , in the field of agriculture and rural development, Albania will have to make 
considerable and sustained efforts to align with the acquis  and to implement it effectively in 
the medium term. Its agricultural policy will require adjustments, moving towards decoupled 
support. Albania will have to strengthen its ad ministrative capacity a nd focus on setting up 
basic instruments and institutions for management  and control of the funds available under the 
common agricultural policy. One important measure is timely preparation for implementation of the assistance for rural development ava ilable from the Instrument for Pre-accession 
Assistance (IPA). Albania needs to establish a solid basis of precise agricultural statistics. 
Particular attention must be paid to strength ening administrative capaci ty to manage common 
market organisation and rura l development activities.  
3.12. Chapter 12: Food safety, veterinary and phytosanitary policy 
The EU has an integrated approach aimed at ensuring a high level of public health, animal 
health, animal welfare and plant health by m eans of coherent farm-to-table measures and 
adequate monitoring, while ensuring effectiv e functioning of the internal market. The acquis 
lays down hygiene rules for food production and veterinary rule s, which are essential for 
safeguarding animal health, animal welfare and the safety of food of animal origin in the internal market. EU phytosanitary rules cover issues such as seed quality, plant protection 
products, harmful organisms and animal nutriti on. Member States must have appropriate 
administrative structures for inspection and co ntrol of food products, including appropriate 
laboratory capacity. 
EN 72  EN Albania has started to comply with the Stabilisation and Association Agreement  obligations 
regarding food safety and veterinary and phytos anitary policy, which aim at modernising and 
restructuring agriculture and the agro-indu stry in Albania and at supporting gradual 
approximation of the Albanian legislation with the acquis .  
In the area of  general food safety , overall responsibility for policymaking and coordination 
of the different institutions and regional auth orities involved lies with the Ministry of 
Agriculture, Food and Consumer Protection. Th e administrative structure in place until the 
end of 2009 was complicated, w ith an unclear chain of comm and, overlapping responsibilities 
and a lack of efficient controls, enforcemen t and registration of food establishments.  
In 2010 a National Food Authority was created with EU assistance, which, when fully 
operational, will assume all responsibilities for inspection, risk assessment and communication. As these are curre ntly spread among four differe nt ministries and regional 
offices, this will improve the overall administra tive set-up for the sector. However, it will not 
be fully functional until 2011 and its functioning will have to be monitored. Human resources 
at central level are extremely limited, with no indication of any plan to  increase administrative 
capacity and budgetary resources.  
Responsibility for drafting implementing legisla tion in this sector is shared between the 
Ministry of Agriculture and th e Ministry of Health. Limited progress has been made towards 
alignment with EU legislation. Legislation introducing the EU ‘hygi ene package’, setting 
general and specific hygiene cond itions for food establishments and food business operators, 
is still pending. Very substantial efforts will be necessary for progressive efficient 
implementation of hygiene rules and official controls on products of animal origin.  
A system of veterinary laborator ies is supervised by the Food Sa fety and Veterinary Institute. 
More efforts will be necessary on laborator y analysis for pesticide residues and on 
accreditation of laboratories. There is currentl y no rapid alert system for food and feed in 
place in Albania. Crisis management capacity wi ll need to be developed and adapted to the 
new administrative structures. Steps will also have  to be taken to ensure that all Albania’s 
bilateral international food agreements comply with EU requirements.  
The main legislative provisions on veterinary policy are the Law on the veterinary service 
and inspectorate and the Law on the identification and registration of animals  and livestock 
farms. Legislation establishing the control system for the internal market  and for imports  
transposes part of the acquis.  However, implementing capacity needs to be reinforced. 
Regarding animal registration, efforts are be ing made on compliance with EU standards: 
identification and registration of bovines is almost complete, but its operational character will 
have to be assessed, while registration of small ruminants has started in parts of the country.  
Albania has adopted legislation on measures to control animal diseases  (e.g. anthrax, 
tuberculosis, brucellosis, rabies and Newcastle disease), but effort s need to continue to ensure 
alignment with the acquis  and proper implementation, includi ng sampling and reporting. It is 
necessary to put in place a compliant and effec tive system for trade in live animals, semen, 
ova and embryos. There is no Albanian le gislation specifically on non-commercial 
movements of pet animals transposing the relevant  EU legislation. Basic principles of animal 
welfare have been introduced in the national legi slation, but will need to be further developed.  
As regards legislation on  placing on the market food and feed , hygiene rules  and specific 
rules for animal products  have been partly aligned. Howeve r, introduction of legal provisions 
EN 73  EN on hazard analysis and critical control points has not started yet and implementation of 
legislative measures is still incomplete. The microbiological quality of raw milk is below EU standards. There is no specific legislation on animal feed. Albania has no incineration 
capacity for high-risk material.  
Alignment with the acquis  on food safety is very limited and partial. In a number of areas, for 
example genetically modified organisms ( GMOs ), it has not started yet.  Significant efforts 
will be needed to implement legislation in th e sector, along with heavy investment to upgrade 
agro-food establishments.  
As regards specific rules for feed , relevant provisions are in cluded in the amended Law on 
livestock breeding, the Law on animal feed and the Law on nutrition. A considerable distance 
will need to be covered to achieve alignment with the EU legislation. Careful monitoring of 
implementation of laws and regulations in this sector will be necessary.  
The main legislative provisions governing phytosanitary policy  are set out in the Law on the 
Plant Protection Service. The Directorate for Food and Consumer Protec tion in the Ministry 
of Agriculture, Food and Consumer Protecti on is the competent authority for harmful 
organisms and seeds. It collaborates with th e Ministry for the Environment, Forestry and 
Water Administration and with the Ministry  of Health on plant protection products.  
Alignment with the relevant EU acquis  is very limited. Although regulated by national 
legislation, control of pesticide residues has not been applied for lack of laboratory facilities. 
Regarding the quality of seeds and plant propagating material , no distinction, uniformity and 
stability tests are performed fo r registration of plant varietie s, except for wheat. The country 
follows OECD, and not EU certification schemes.  
Conclusion 
Although Albania has made a start on alignment with and implementation of EU legislation, 
there are major concerns about food safety and veterinary and phytosanitary policy. Big 
efforts will need to be made to ensure gradual introduction of the acquis . Administrative 
capacity will need to be built up in view of the heavy worklo ad linked to preparation for the 
obligations which come with membership. Overall , implementation of the existing legislation 
is weak. Areas such as the hygi ene package, animal registrati on, food safety controls, GMOs, 
capacity for inspections and labor atory analysis and incinerati on of animal by-products will 
require particular attention from the national au thorities, with technical assistance from the 
EU. Albania will have to make considerable  and sustained efforts to align with the acquis  and 
to implement it effectively in the medium term.  
3.13. Chapter 13: Fisheries 
The acquis  on fisheries consists of directly applicable Regulat ions, which do not require 
transposition into national legi slation. However, it does require  the introduction of measures 
to prepare the administration and operators fo r participation in the common fisheries policy 
(CFP), which covers resource  and fleet management, inspectio n and control, structural 
actions, market policy and state aid control. In some cases, existing fisheries agreements and 
conventions with third countries or internati onal organisations will n eed to be adapted.  
The Stabilisation and Association Agreement  regulates preferential trade in fish and fishery 
products and encourages cooperation on fisheries.  
EN 74  EN Economic activity in this sector includes marine  fisheries, inland fisheries and aquaculture. 
Catches totalled 7,132 metric tonnes in 2008. Albani a has taken the first steps to improve its 
administrative capacity by setting up a Fisheries Inspectorate Sector in the Ministry of the 
Environment, Forests and Water Administra tion (MEFWA). To increase monitoring and 
control of the fisherie s sector, the Interinst itutional Maritime Opera tions Centre was brought 
into operation in January 2010. It currently has six staff. The Fisheries Inspectorate has 23 
local fisheries inspectors, with relevant qualifications and experience, who monitor 
application of fisheries legislation, but are also assigned tasks relating to aquaculture, veterinary and zoo- technical issues.  
There is a need to make the vessel monito ring system (VMS) compliant with the common 
fisheries policy by equipping the fishing fleet with bl ue boxes and by upgrading the 
infrastructure of the coastguard and of  the MEFWA. Substantial strengthening of 
administrative capacity is required, as the st aff at central and local levels with their 
rudimentary inspection equipment are insufficien t to take on the tasks imposed by the CFP 
acquis .  
Regarding resource and fleet management , the sector is not subject to any catch limitations, 
except for a quota on bluefin tuna. Alba nia has started implementing the CFP acquis , notably 
Regulation 1967/2006 on fisheries management measures (minimum size, technical 
characteristics and maximum dimensions of fishing gear, etc.) and Regulation 2371/2002 on 
fleet management. However, there is a need to ensure reliable, systematic and improved 
collection of data on the fishing fleet, catches,  landings and the biologi cal state of the fish 
stocks in Albanian waters and beyond.  
The fishing fleet consists of 280 vessels based in four fishi ng ports (Saranda, Vlora, Durres 
and Shengjin). The large majority of the vessels  are ageing, obsolete and in need of repairs 
and spare parts. In addition, ther e are 289 small fishing vessels (l ess than 8 metres long, using 
fixed gear or gill nets and fishing not more than  2 to 3 miles from the coast). Albania needs to 
complete the vessel register in accordance with CFP rules (Commi ssion Regulation 26/2004) 
and to make it compatible with the EU vessel register. There is no statistical monitoring or 
recording of catches and landings and only lim ited collection of catch data from logbooks. 
Compliance with these basic requirement s clearly needs to be addressed.  
Concerning inspection and control , Albania introduced logbooks for vessels longer than 
10 metres in 2009 (a simplified reporting system  is planned for vessels less than 10 metres 
long), but more efforts will be necessary to streamline logbook requirements (format of 
logbooks, collection and processing of data, introduction of electronic logbooks for larger 
vessels, etc.) and to put in place a fisheries information system for cross-checking catch and 
landing data. Albania needs to esta blish a fisheries monito ring centre or to sh are facilities with 
neighbouring countries.  
In order to reach an appropriate level of inspections, systematic training needs to be given to 
fisheries inspectors, particularly on pre-inspectio n preparation, vessel sel ection (risk analysis), 
maintaining control during an in spection, physical inspect ion of fish, fishing gear, fish holds, 
documents, VMS, completion of inspection re ports and post-inspec tion cross-checks.  
An electronic fisheries information system  performing cross-checks between quantities 
recorded in the logbook and the quantities record ed in the landing decl aration and/or sales 
notes is still lacking. The system must be able to detect discrepancies and missing 
documentation. It is very important to conduc t systematic physical inspections of catch 
EN 75  EN composition and logbook records du ring the landing procedure a nd to draw up an inspection 
report containing full details each time.  
In preparation for management of structural action , reinforcement and training of staff, 
backed up by EU expertise, wi ll be required. Measures on market policy  are at an embryonic 
stage, in particular concerning producers' orga nisations and collection of market data. There 
are no wholesale fish markets, al though investments are planned.  
In order to comply with the acquis  on combating illegal, unrepor ted and unregulated fishing, 
Albania has prepared catch certificates for fish eries products to be exported to EU countries 
and has notified the relevant EU authorities abou t the vessel register, licensing procedures and 
checks on the veracity of catch certificates.  
Albania provides State aid  to support development of fisher ies infrastructure in the four 
fishing ports and excise-free fuel for fishing vessels. Albania will have to comply with EU State aid rules for the fi sheries sector upon accession.  
Regarding international agreements,  Albania has been a party to the International 
Commission for the Conservation of Atlantic Tuna s since 2008. It is a member of the General 
Fisheries Commission for the Mediterranean a nd is participating in the FAO AdriaMed 
project (co-funded by the EU).  
The overall impact of Albania’s accession to the EU will be ne gligible in terms of trade 
balance, fleet, production and functioning of the CFP.  
Conclusion 
The Albanian fisheries sector  is gradually developing, with  catches increasing and some 
investment in infrastructure. Progress has been made on streamlining administrative structures 
and on resource management, fleet inspection and control. However, approximation to the EU 
acquis  is still at an early stage and policymaking and administrative capacity at central level, 
including for managing structural  actions, are inadequate. Furthe r investment and training will 
be necessary for local inspectors, as will  improvements in data collection and fleet 
monitoring, including satellite monitoring. Overall , Albania will have to make considerable 
and sustained efforts to align with the acquis  and to implement it effectively in the medium 
term.  
3.14. Chapter 14: Transport policy 
EU transport legislation aims at improving the functioning of the internal market by 
promoting efficient, environment- and user -friendly transport se rvices. The transport acquis  
covers road transport, railways, aviation, mar itime transport and inland waterways. It governs 
technical and safety standards, social standards and market liberalisation in the context of the 
single European transport market. 
The Stabilisation and Association Agreement  (SAA) places an obligation on Albania to grant 
unrestricted access to EU transit traffic to cros s its territory and provides for applying non 
discriminatory road charges as well as for a timetable for harmonisation of the road safety legislation with the EU.  
In the case of  road transport , legislative  alignment with the EU acquis  is fairly advanced and 
implementation has started in all areas, including on the implementation of the digital 
EN 76  EN tachograph. Adequate administrative capaci ty is in place to deal with the social acquis . Access 
to the market  for goods and passenger transport for both national and international services is 
regulated, however one of the four criteria for access to the occupation of road transport operator, namely the financia l standing criteria is lagging far behind EU requirements. 
Although some actions have been taken to ha rmonise the national legislation with EU 
requirements for vehicles' inspections, road safety remains a concern. 
In the rail transport  sector, Albania needs to step up its efforts, both on aligning and on 
implementing the EU acquis . The state owned Albanian railway company has separated its 
accounts for passenger and frei ght services to prepare for compensation for passenger 
transport and calculation of the costs involved in its pa ssenger operations. However, 
independent railway institutions, which are the precondition for the open access to the Albanian rail network, ar e not established. The infrastruc ture manager and the state-run 
railway undertaking (HSE) do not enjoy the in dependence required under the EU railway 
legislation and their unbundling remains a concern. The agreement on Albania’s sole international rail border crossing with Monten egro is under revision to align it with EU 
legislation.  
There is no inland waterways transport in Albania . 
As regards  combined transport, Albania  is in the initial phases of its development.  
As regards air transport , Albania is continuing the implem entation of the first phase of the 
European Common Aviation Area (ECAA)  Agreement. In this context, air safety  remains a 
continuing concern. Albania has transposed the EU acquis  in this field but has not yet ensured 
effective implementation of the legislation. Th e safety oversight by Ci vil Aviation Authority 
(CAA) over the country's carriers needs to be  improved. In spring 2010 Albania adopted a 
new air code and passed legislation aiming at increasing the human resources and improving 
the expertise in the field of air safety in the CAA as well as establishing an independent National Body for investigation of accidents a nd incidents in civil aviation. As regards 
aviation security , Albania needs to ensure compliance with  the latest version of the security 
requirements of the European Civil Aviation Conf erence (ECAC). In relati on to the air traffic 
management acquis , the single European sky, the four main  regulations have been adopted, as 
well the common requirements regulation and the fl exible use of airspace regulation. Further 
efforts are needed to complete regulatory alignm ent with the single Eu ropean sky within the 
ISIS Programme, in particular as regards the implementation of  a solid national supervisory 
authority. 
In the case of maritime transport, Albania is a member of the International Maritime 
Organisation (IMO) and of the International Labour Organisatio n (ILO). Albania's legislation 
is fairly in line with EU market rules , although some adjustments are necessary. References to 
authorisations and licensing schemes need to be removed from the legislation on market 
access to international transport. Cabotage is rese rved to national flag-carriers, which conflicts 
with European rules. Finally, there is a require ment that ship's captains must be Albanian 
nationals, whereas alignment with the EU acquis would require extension to all EU 
nationalities. The rules on vessel registration and establishment of  ship-owners are consistent 
with EU law.  
Substantial efforts will be needed to improve both flag State control and port State control. 
The rates of detention of the Albanian ve ssels pursuant to the Paris Memorandum of 
Understanding on Port State Control was 21% in  2009 compared with an EU average of 2.2% 
EN 77  EN and the Albanian flag is listed as very high  risk, being in the Black List of the Paris 
Memorandum. Concerning maritime security , Albania has already taken a number of steps to 
align with international and EU requirements. However, there is no indication as regards the 
alignment of domestic shipping with the EU acquis . A maritime administration was put in 
place in April 2009, with Port State and Flag State departments recently created, but adequate 
capacity to fulfil the required task s has not been developed yet.  
As regards satellite navigation , Albania does not currently plan to participate in the Galileo 
satellite navigation programme , once it is operational..  
Conclusion 
Overall , Albania will have to make considerable su stained efforts to align its legislation with 
the acquis and to implement and enforce it effectively in the medium-term. While it is well 
advanced in the case of road transport, serious e fforts need to be made to step up its action in 
the rail, maritime and aviation sectors. In order to ensure effective implementation of the acquis , Albania’s administrative structures in the di fferent transport sectors would need to be 
considerably strengthened.  
3.15. Chapter 15: Energy 
The EU’s energy policy objectives are to improve competitiveness, ensure security of supply 
and protect the environment. The energy acquis  consists of rules and policies covering 
competition and State aid, the internal energy ma rket (opening up electricity and gas markets 
in particular), promoting renewable energy sour ces, energy efficiency, crisis management and 
oil stock security obligations, nuclear energy and nuclear safety and radiation protection. 
Albania is a member of the Energy Community  and, as such, is legally bound to implement 
substantial parts of the energy acquis . The country has no integrated energy law. Different 
energy sectors are regulated by specific laws. The current national energy strategy is not 
compliant with the acquis.  A new national energy st rategy is being prepared. 
In 2008, Albania’s overall energy balance comp rised firstly oil products (64%) followed by 
electricity (23%), firewood (12%) and coal (1%) . The transport sector accounted for 42.3% of 
consumption, the residential sector 23.6%, indust ry 13%, services 10.8% and other sectors 
10.3%.Total energy consumption in 2008 was 10% higher than in 2007, mainly because of the 
increase in road transport. Domestic product ion of primary energy covered 62% of total 
primary energy consumption in 2008. Oil and gas made up 49.8% of domestic production, 
electricity 28% and firewood 18.5%. Imports  largely consist of oil products. 
As regards security of supply, the law places an obligation on Albanian oil refineries and 
wholesale companies to hold 60 days reserves of oil products, which wi ll increase to 90 days 
by 2011, in line with the EU Oil Stocks Directive.  Albania will need to demonstrate effective 
compliance with current and future oil stocks requirements. With respect to security of 
electricity supply, Albania’s 2009 security of supply statement takes into consideration the 
existing generation capacity and the current lim itations in interconnectio n and lack of energy 
diversification. The Power Sector Law, th e new market model and the National Energy 
Strategy cover basic provisions on the security of electricity supply. However, Albania needs 
to make further efforts to implement the acquis  on security of electri city supply as required 
under the Energy Community Treaty. The 2008 Law on natural gas defines se curity of natural 
gas supplies.  
EN 78  EN Albania depends almost exclusively on hydropower for its electricity  generation, making it 
vulnerable to unfavourable hydrological co nditions. The transmission network needs 
substantial investments. Its interconnections with neighbourin g countries are limited although 
developments are underway in priority infr astructure projects of  the Energy Community. 
Albania has some indigenous gas production, which is used only domestically for 
technological purposes. The count ry is not linked to any international gas pipelines. Coal 
(lignite and brown coal) produc tion is not significant and is  of poor quality. The government 
plans to discontinue coal production in the near  future. Current coal imports are very limited. 
No notifications of State aid for this s ector have been give n. Local production of crude oil  is 
significant and increasing. Explor ation and production are carried out with the involvement of 
foreign investors. The refini ng sector is 85% pr ivatised. Albania’s legislation on oil 
exploration is harmonised with the EU Hydrocarbons Directive. 
On the  internal energy market, the electricity sector is regulated by the Power Sector Law, 
which is largely in line with the Energy Comm unity Treaty. However, a number of obstacles 
still hinder full market openi ng. A substantial percentage of  transmission and distribution 
capacity is reserved for the wholesale suppl ier. The transmission system operator is 
unbundled and 76% of the shares of the distributi on operator have been pr ivatised. Electricity 
tariffs are not yet at cost-rec overy level. Illega l connections and high technical and non-
technical losses are undermining the viability of  the electricity market. Bill collection rates 
remain below the EU average. The 2008 Gas Law, based on the Energy Community Treaty, transposes a considerable  part of the relevant acquis but fails to provide for market opening. 
Albania has not yet started to implement the 2009 internal energy market acquis  for gas and 
electricity ("the third package of legislativ e measures"). A joint independent regulatory 
authority (ERE) for electricity and gas wa s established in 2008. Its monitoring and 
enforcement powers need to be strengthened. 
Albania’s renewable energy  law has not yet been adopted, but the country has transposed 
some provisions of the acquis  in its legislation on promoti ng use of biofuels and other 
renewable fuels in transport. Albania has al so taken measures to support development of 
electricity from renewable sources, partic ularly in the hydropower sector. Albania’s 
regulatory framework needs further development to meet the requirements of the Renewable 
Energy Directive in all sectors. Implementation of the legal framework will require particular 
attention. All contracting parties in the Energy Community will have to set a target for the 
minimum national share of renewable energy fo r 2020 based on the method applicable to EU 
Member States. One of the main challenges faci ng Albania is to establish a reliable value for 
the share of renewable energy in 2005, whic h is the base year for the calculation. 
The legal framework on energy efficiency  is partly aligned with the acquis  on the energy 
performance of buildings, ener gy labelling of household applia nces and energy services. 
However, overall implementation of legislat ion is poor, including on energy labelling of 
products. Alignment with the recast Eco-design Directive is being prepared and a new law 
which will cover the acquis  on cogeneration is being draf ted. The draft national energy 
efficiency action plan sets an indica tive target for energy savings by 2016.  
As regards nuclear energy, nuclear safety  and radiation protection , Albania has no nuclear 
power or research installations or other nucl ear fuel cycle facilitie s. The government is 
considering the possibility of  using nuclear technology for energy production. The National 
Agency on Nuclear Energy (AKOB) establishe d in January 2010 is  responsible for 
developing the nuclear programme , which is at a very early st age, including its financial 
aspects. The country has made progress on the nuclear regulatory  framework, although its full 
EN 79  EN compliance with the EU acquis  still needs to be verified  and a significant number of 
regulations and working proced ures need to be developed. Albania is a party to the 
Convention on physical protection of nuclear material. It has adopted a law to ratify the 2004 
Protocol Additional to its Comprehensive Safe guards Agreement with the IAEA, although the 
law has not yet entered into for ce. However, Albania has not yet ratified the Joint Convention 
on the safety of spent fuel management and th e safety of radioactive waste management and 
the Convention on nuclear safe ty . The regulatory authority  is weak and will require 
substantial financial and human resources to bu ild up its capacity to establish, implement and 
effectively enforce legislation in line w ith international standards and the Euratom acquis, 
including the 2009 Nuclear Safety  Directive. The arrangements for informing the public are 
incomplete. The environmental radiation monitoring programme needs to be put into action. Finally, measures will be required to guarant ee the financial independe nce of the regulatory 
authority from the Ministry of Health. 
The country has a centralised ra dioactive waste management fac ility with capacity of 300 m³ 
to store conditioned waste produced in various app lications of radiation sources. This facility 
needs to be properly licensed as it is currently licensed as a source. Furthermore, its safety 
analysis report needs to be (re)written. 
Conclusion 
Albania has aligned its legislation with a numbe r of aspects of the acquis  and amendments to 
the legislative framework are being prepared. However, the fields of energy efficiency, 
renewable energy and oil stocks as  well as ensuring the viability of the electricity market and 
the development of the gas market require further attention. The role of the electricity and gas 
regulatory authority needs to be strengthened. Energy diversification is  poor and the country 
is still vulnerable as regards security of electricity supply.  The capacity of the regulatory 
authority on nuclear safety and radiati on protection needs substantial strengthening. Overall , 
the country will have to undertake a dditional efforts to align with the acquis  and to implement 
it effectively in the medium term.  
3.16. Chapter 16: Taxation 
The acquis  on taxation covers the area of indirect  taxation as regards value added tax ( VAT) 
and excise  duties and lays down definitions and prin ciples of VAT. Excise duties on energy, 
tobacco products and alcoholic beverages are subj ect to EU Directives covering the structures 
of the duties, the levels of minimum rates and the holding and moveme nt of excisable goods. 
Regarding direct taxation, the acquis  covers some aspects of corporate taxes and aims mainly 
at removing obstacles to cross-bo rder activities between enterprise s. EU legislation in the area 
of administrative cooperation and mutual assist ance provides tools to prevent intra-EU tax 
evasion and tax avoidance.  
In the area of indirect taxation , Albania’s legislative framewor k is in line with the Capital 
Duty Directive. 
Albania’s 
VAT framework is fairly in line with the EU  rules, but some amendments will be 
required to bring the current legi slation into line with the VAT Directive, including as regards 
exemptions and special schemes.  
The excise system covers most products subject to ex cise in the EU. Excise duties are applied 
to tobacco products, alcoholic beverages and o il products. However, there are discrepancies 
with the EU system, including on sc ope, structures and rates.  
EN 80  EN On alcoholic beverages taxation, the duty cate gories and some provisions on preferential 
treatment of raki are not harmonised with the acquis . Albania’s tax structure and rates on 
tobacco differ from those in the EU. Furthermore, the tax on cigarettes is based on the nicotine content. This is not in line with the acquis . Energy products do not include 
electricity, coal, natural gas and LPG. The system  for travellers’ allowances is different from 
the EU system as regards the amounts that can be imported, allowances, value thresholds and 
minimum age of beneficiaries.  
Concerning direct taxation , Albania’s legislative framework is  not in line with the the main 
EU legislative acts in this area. Albania br oadly complies with the code of conduct on 
business taxation, although existing re strictions on shareholdings in resident entities will need 
to be assessed. As regards good governance on tax matters, there are some concerns about transparent identification of the final owner or be neficiary of assets, liabilities or transactions, 
as required under intern ational and EU standards. Future double taxation agreements being 
negotiated will be based on the OECD model whic h ensures full exchanges of information in 
all tax matters. 
On administrative cooperation and mutual assistance , Albania will need to implement the 
acquis on mutual assistance in direct tax matte rs, including the Savings Directive, upon 
accession. Central liaison offices for exchanges of information on VAT and excise will have 
to be set up and equipped with adequate personnel and procedures  to meet the deadlines set in 
the acquis  for providing information. Interconnectiv ity and interoperab ility with the EU 
excise movement and control systems and with  the computerised systems for exchanges of 
information on VAT and excise wi ll have to be put in place.  
As regards operational capacity and computerisation , the legislative and administrative 
framework to implement and enforce the tax legi slation is in place. Th e General Directorate 
for Taxation (GDT) in the Minist ry of Finance is in charge of implementation of national 
taxes, public charges and collection of c ontributions. Its administrative capacity and 
procedures are adequate for its current task s, although further efforts will be needed on 
training and working methods. The VAT system will need to be improved, mainly with regard 
to identification of traders. An effective excise control system, including electronic administration procedures, needs to be put in pl ace. Additional capacity w ill also be needed to 
comply, upon accession, with the requirements on administrative cooperation with other EU 
Member States on VAT, excises, direct taxes and taxation of savings. The perception of 
corruption in the Tax Administration is high and Albania will need to make particular efforts to address this issue.  
The Tax Administration has made significant efforts to enhance vo luntary compliance by 
taxpayers and manages to collect the bulk of ta x debts effectively. Curre nt legislation requires 
payment of the full amount of tax due before an appeal can be lodged against a decision of the 
Tax Administration and does not allow a bank guarantee to be used for this purpose. Risk 
analysis, inspection and interins titutional cooperation will requi re further stre ngthening to 
enhance enforcement and reduce the large informal economy.  
A Taxation Council has been established as an a dvisory body to the Ministry of Finance and 
to enhance technical cooperati on between the ministry, the GDT and taxpayers. However, it is 
not yet operational and its role needs to be fu rther defined. The Taxpayers’ Advocate became 
operational in June 2010 to provide information a nd assistance to taxpayers  and to assist the 
authorities in the fight against corruption a nd unethical behaviour among tax officials.  
EN 81  EN Computerisation is fairly advanced in the Tax Administration and the integrated tax system is 
operational throughout the country. Electronic tax procedures are in place for business 
taxpayers and implementation is being extende d. A cash register syst em has already been 
implemented for large and other VAT taxpaye rs, with 18,000 daily balances being filed 
electronically. However, the computer centre ne eds to be upgraded and human resources and 
systems development in the IT area need to be  reinforced, including wi th the aid of training. 
Upon accession, the country will be required to de velop and operate all the national parts of 
trans-European taxation and excise IT systems. 
Conclusion 
Albania’s tax legislation is partly aligned with the EU acquis . Further approximation is 
needed on indirect taxation, particularly on exci se, and Albania will need to implement most 
of the acquis on direct taxation. There are no potenti ally harmful tax measures, but the 
transparency of the tax system needs to be fu rther examined. The admi nistrative capacity of 
the Tax Administration will need to be strengthe ned, particularly as regards risk analysis, 
inspection, internal communica tion and communication with other agencies or public 
authorities. Particular efforts wi ll be needed to establish the administrative structures required 
by the acquis  upon accession and to achieve full connectiv ity with the EU’s computerised tax 
and excise systems. 
Overall , Albania still faces challenges with legisl ative alignment and administrative capacity, 
but should, in the medium term, have the capac ity to comply with the requirements of the 
acquis , provided it keeps up its efforts.  
3.17. Chapter 17: Economic and Monetary Policy 
The acquis in the area of economic and monetary  policy contains rules requiring the 
independence of central banks in Member States  and prohibiting both direct financing of the 
public sector by the central ba nks and privileged access for th e public sector to financial 
institutions. Member States are expected to coordinate their economic policies and are subject 
to the rules of the excessive deficit procedure as well as of the Stability and Growth Pact. The 
national central banks will  be subject to the Stat ute of the European System of Central Banks 
(ESCB). New Member States are also committed to complying with the criteria for adopting 
the euro. Until they join the euro area, they will participate in the Economic and Monetary 
Union as Member States with a derogation and must treat their exchange rate policy as a 
matter of common concern. 
In the area of  monetary policy, the Law on the National Bank is broadly in line with the 
acquis . It provides a large degree of independence for the Central Ba nk and sets it the primary 
objective of maintaining price stab ility. The law stipulates that the Bank must neither seek nor 
take instructions from other au thorities and that it is the sole institution responsible for 
monetary and foreign exchange policies in th e country. However, the law will need to be 
further aligned with the acquis , including on the personal inde pendence of Council members 
and the Central Bank’s accountabi lity. In particular, provisions on dismissal of the Governor 
will need to be brought more closely into line with the ESCB Statute. 
The Central Bank is financially independent and, overall, has sufficient administrative 
capacity to function effectively.  
Concerning  economic policy , the Law on the National Bank e xplicitly prohibits extending 
credit directly to the State, although not to other public institutions. Regarding the prohibition 
EN 82  EN of privileged access  by the public sector, existing legislatio n will need to be aligned with the 
acquis,  as there are acts that provid e specific rules or incentives for the financial sector to lend 
to the public sector or to purchase public secu rities. In particular, the Law on insurance and 
the Law on pension funds contain provisions which effectively give  the public sector 
privileged access to financial institutions. 
Since 2006, Albania has been par ticipating in the pre-accessi on economic policy surveillance 
which aims at strengthening economic planning capacity in the country to prepare it for 
eventual participation in the economic polic y coordination and budgetary surveillance 
mechanisms of the European Monetary Union (EMU). In this cont ext, Albania submits 
regular economic and fiscal programmes (E FP). The 2010 EFP covers the period 2010-2012 
and is based on several medium-term government  strategies. It broadly complies with the 
requirements on format and content, although the public finance data are not compliant with 
the ESA95 European system of accounts. There are some significant gaps in the data, which 
point to the need for further strengthening of  the statistical system , including statistical 
governance. All in all, the programme presents a very extensive but mainly descriptive outline 
of the structural reform agenda. It remains vague on the overall strategy and on the link between 
the reforms and the fiscal objectives and provid es no clear timetable for implementation of the 
reforms.  
Conclusion 
Albania’s legislation is not in line with the acquis  on central bank independence, monetary 
financing and privileged access for the pub lic sector to financial institutions. 
Overall , Albania will have to undertake a dditional efforts to align with the acquis in the field 
of economic and monetary policy and to implement it effectively  in the medium term. 
Preparation for participation in the third stage of EMU as a Member State with a derogation 
should pose no major problems prior to accession. 
3.18. Chapter 18: Statistics 
The acquis  on statistics consists almost  exclusively of legislation wh ich is directly applicable 
in the Member States, such as European Par liament and Council regulations and Commission 
decisions or regulations. It also includes a range of methodological handbooks and manuals. 
International agreements provide a furt her basis for production of statistics. 
In the area of statistical infrastructure , the statistical system in Albania is rather 
decentralised with many government agencies  producing official statistics. The Law on 
official statistics was adopted in 2004. The nati onal statistical institut e INSTAT has the co-
ordinating role. INSTAT is subordinate to th e Prime Minister’s Office and the appointment 
and dismissal of the General Director are subj ect to the approval of the Prime Minister. In 
order to strengthen the profe ssional independence of INSTAT, the Law on statistics needs to 
be revised to set a fixed term for the General Dir ector and to define more precisely the role of 
INSTAT as coordinator of the national statistical system. The composition of the statistical 
council should be changed to bette r represent all stakeholders of official statistics. The current 
level of human and financial re sources available for statistics is not sufficient for full 
compliance with the acquis . 
The area of statistical classifications  needs to be substantially improved. The translation and 
introduction of the new classification of econom ic activities (NACE Rev. 2) is particularly 
important and will require coordination with all pr oducers of official statistics. The quality of 
EN 83  EN the business register  is inadequate and requires regu lar updating. A regi onal statistical 
classification compatible with the NUTS classification is still not available. 
In the area of sector statistics , weaknesses persist, in particular in agricultural, social, 
business and macroeconomic statistics. Agricu ltural statistics needs to be upgraded and 
agromonetary statistics as well as a farm stru cture survey need to be introduced. Population 
statistics are based on the civil register, but that needs further impr ovements. The population 
and housing census in 2011 will allow an update of demographic statistics and more accurate 
population projections. Migr ation statistics are no t in line with EU requirements. The Labour 
Force Survey needs to be implemented on a quarterly basis. The Survey on Income and 
Living Conditions does not comply with the acquis.  Other social statisti cs, e.g. on education 
and health, are likewise not well developed. Furt her improvements are necessary concerning 
the methodology and the data sources of national  accounts. Statistics on government deficit 
and debt, foreign direct investme nts as well as monetary and fina ncial statistics need further 
improvement as well. This is especially valid for the measurement of the remittances. The consumer price index in Albania does not comply  with the EU harmonised index of consumer 
prices. External trade statistics partly comply with EU requirements, but closer collaboration 
between INSTAT, the Bank of Albania and the customs authorities is  necessary. Business 
statistics need further improvement. Limited st atistics are available on transport and energy. 
Fishery, environment and tourism statistics are not in accordance with EU standards. 
Conclusion 
Overall , the statistics produced by Albania are not yet satisfact orily aligned with the EU 
standards, particularly as regards classificati ons and registers and on agricultural, business and 
macroeconomic statistics. The professional in dependence of INSTAT is not sufficiently 
anchored in the legislation. Albania  will have to ensure that sufficient human and financial 
resources are made available and will have to undertake additional efforts to align with the  
acquis and to implement it effectively in the medium term.  
3.19. Chapter 19: Social Policy and employment 
The acquis  on social policy and employment includes minimum standards in areas of labour 
law, equal opportunities, health and safety at work and anti- discrimination. Member States 
participate in EU policy processes in the areas  of employment policy, social inclusion and 
social protection. The social pa rtners of Member States participate in social dialogue at 
European level. The European Social Fund (ESF ) is the main financial tool through which the 
EU supports the implementation of its employ ment strategy and contributes to social 
inclusion efforts.  
Albania’s labour market is marked by low activity (at 61.9% in 2009) and a low employment 
rate (at 53.4%) compared with the EU aver age and targets, reflecting the very low 
employment of women. Unemployment st ands at around 13.8%, but the official 
unemployment rate does not correctly reflect the actual unemployment in the country. The 
rate of long-term unemployed and discouraged jo bseekers is high, whilst at the same time the 
Albanian labour market experiences substa ntial skills mismatch problems. Informal 
employment is widespread.  
As regards labour law
, Albania’s legislative framework partly covers a number of basic 
principles laid down by the acquis . However, several adjustments to the national legislation 
will still be necessary in order to fully transpose and implement the acquis  in the field of 
EN 84  EN labour law. Legislation similar to the EU directives on in formation and consultation at 
national or transnational level is lacking (i.e . European Work Councils, European Company, 
European Cooperative Society). There is no legislation corresponding to the Insolvency 
Directive, nor to the directive on posting of workers. The general District Courts have specific 
sections to adjudicate industrial disputes . A specific law regulates the State Labour 
Inspectorate.  
The recently adopted Law on Health and Safety at Work  aims to transpose the Framework 
Directive 89/391/EEC. It introduces new concepts , such as employers’ obligations regarding 
risk assessment, along with prevention and prot ection measures, services  provided by external 
bodies with a view to protecti on from and prevention of health and safety risks and worker 
participation. It also introduces a classifi cation of accidents at work, depending on their 
consequences and the number of  persons involved. Its effective implementation remains to be 
seen. Considerable efforts will be needed to ensure proper transposition and effective 
implementation of the EU Directives in partic ular sectors and on specific subjects, such as 
carcinogenic substances, explosive atmospheres, health and safety  signs, artificial optical 
radiation, display screen equipm ent, vibration, chemical, physic al and biological agents at 
work and others.  
The State Labour Inspectorate (SLI ) is responsible for monitoring and enforcing legislation on 
health and safety at work. It has 12 regional di rectorates, but its capacity to enforce legislation 
throughout the country is hampered by lack of e quipment and by the fact that only one out of 
the 24 local offices planned has been establishe d. Certain sectors are ex cluded from the scope 
of authority of the SLI (such as agriculture and matters related to exposure of biological 
agents at work), which substantially affects th e uniform implementation of health and safety 
at work acquis .  
Social dialogue  in Albania is still developing. It takes place almost exclusively in the 
framework of the National Labour  Council (NLC), the main tr ipartite consultation body. The 
NLC is chaired by the Minist er of Labour, Social Affair s and Equal Opportunities and 
includes representatives from workers’ and empl oyers’ organisations. Both cross-industry and 
sectoral organisations are represented. Its aim is basically to examine draft proposals 
submitted by the government. A working group has been set up within the NLC to amend the current regulation of its functioning, but for th e time being the NLC has no explicit roles and 
responsibilities and lacks policym aking powers. In practice, soci al partners have very limited 
influence over policy- and decision-making. Im proving social dialogue in the country will 
require raising the profile of the NLC, determin ing the representativeness criteria to be met by 
social partners and improving the schedu ling and regularity of its meetings.  
Bipartite social dialogue is not very developed. Collective bargaini ng at sectoral level is still 
almost non-existent, with the exception of some  sections of the public sector. There is no 
national collective agreement in Albania.  
Albania has a Sector Strategy for Employme nt for 2007-2013 and is currently developing a 
national action plan for employme nt. Setting and monitoring feasib le objectives and ensuring 
the necessary commitment on the part of the entire government and social partners are key 
challenges. Employment policy  essentially consists of a nu mber of active labour market 
measures. Four active labour market policies (A LMPs) are in place: subsidised employment 
for women in need; work placements for university  graduates; subsidised on-the-job training; 
and training for people in need. Both the budget and the number of participants involved in 
such measures are small in relation to the needs for active support. Overall, the financial 
EN 85  EN resources put into active measures are very lo w (0.016% of GDP in 2009) compared with the 
EU average of 0.46% of GDP in 2008. No in -depth evaluation of ALMPs has been 
undertaken to date. The effectiveness of tr aining programmes in terms of integrating 
participants into the labour market is perceive d to be low, as training is often short and its 
quality remains an issue. Stre ngthening cooperation between employment offices and training 
institutions and continuing to survey skills need s on the labour market are important issues.  
The labour market measures are implemented by the National Employment Service (NES). 
Throughout 2009 and 2010 NES staff were trained and guidelines were issued for modern 
counselling services. However, regional and lo cal labour offices are st ill poorly staffed and 
equipped and can rarely offer e ffective counselling services. Cap acity-building is necessary in 
the employment service, especially at local level.  
In terms of preparations for the European Social Fund  (ESF), currently there is neither a 
social nor an employment fund in  Albania which would be simila r to the ESF. Measures will 
be needed to set up these structures and ensu re the required consistency between Albania’s 
national legislation and the cohesion policy framework. The Ministry of Labour, Social 
Affairs and Equal Opportunities is responsible for developing social policy in Albania, but 
other ministries and services also have specific  sectoral powers. Sector strategies exist, and 
inter-ministerial working groups ensure coordina tion. However, an integrated strategy for the 
medium term, with effective coordinatio n mechanisms and institutional set-up for 
management and implementation of funds, needs to  be put into place, involving all relevant 
stakeholders in the planning and programming process. Preparations for programming and 
implementation of IPA Component IV on human re sources development, in view of future 
implementation of the ESF are stil l at a very early stage. In this context, the quality and 
consistency with national prio rities of employment and soci al policies requires attention. (See 
also Chapter 22 - Regional policy and c oordination of structural instruments) 
The National Strategy on Social Inclusion  for 2007-2013 will need improving, especially in 
the form of clearer targets, budgets and respon sibilities. Coor dination of social inclusion 
initiatives by the government remains weak, bot h across sectors and between central and local 
government. Further efforts are ne eded to assess the level of poverty better and to align with 
the new concepts and approaches  developed at EU level.  
The 2009 Action Plan for the Decade of Roma Inclusion is structured around six priority 
fields (education, employment and social protec tion, housing and infrastructure, health, social 
inclusion and equal opportunitie s, and cultural heritage).  
Implementation of the National Strategy for People with Disabilities suffers from insufficient 
budget allocations at central and local government  levels. There is a lack of appropriate 
health, education, social and empl oyment services for people with  disabilities. Their level of 
inclusion in the labour market is very low. Quotas set by law to promote their access to 
employment are generally not met (not even in public institutions). The disability legislation 
is fragmented, with different categories bene fiting from special stat us. The government is 
working on a draft law which will cove r all people with disabilities.  
In the area of social protection , despite a favourable population structure (relatively low old-
age dependency ratio), the Albani an pension system has recorded  deficits in recent years. 
Weak links between contributions paid an d benefits received create incentives for 
contribution evasion, especially for those with higher earnings. The coverage of the pension 
system is relatively low by EU standards. Alba nia has implemented a number of reforms with 
EN 86  EN the aim of improving its adequacy and sustaina bility. Avoiding further deterioration of the 
replacement rate in the long term will need atte ntion. Health expenditure  is low compared to 
the needs.  
Regarding  anti-discrimination legislation , the Constitution prohib its discrimination on 
several grounds. The 2010 Anti-di scrimination Act significantly  improved alignment of the 
legislation with the acquis . Several issues remain to be correctly addressed, including the 
scope of the prohibitio n of discrimination and the excep tions to the prin ciple of equal 
treatment. Relations between the Anti-discrimi nation Act and other legi slation need to be 
further clarified. The Commissioner for Protecti on from Discrimination, a national equality 
body, has been established, but lacks adequate premises and budget. Establishing adequate 
administrative capacity for both anti-discriminat ion and gender equality measures is a major 
challenge.  
In the area of equal opportunities , the Labour Code and the Law on gender equality prohibit 
discrimination on grounds of gender in connecti on with employment. The Anti-discrimination 
Act also covers gender discrimination. Albani a is a party to a number of international 
conventions, including the UN Convention on the elimination of all forms of discrimination 
against women.  
Basic legislation is in place, including on equal pay, access to employment, maternity 
protection and maternity leave. Further lega l adjustments are necessary, e.g. introducing 
parental leave, removing the over-protec tion of women and improving the equal pay 
legislation. The different pension ages for me n and women will need to be adapted and the 
pension system will have to be further examined.  
The Law on measures against violence in family  relations is intended to prevent and reduce 
all forms of domestic violence and to protect family members who are victims of violence, 
paying special attention to women and children . A National Strategy fo r Gender Equality and 
Domestic Violence for 2007-2010 and an action plan to implement it were adopted in 2007. 
The action plan has eight strategic prioriti es and is implemented  by central and local 
government institutions in partnership with ac ademic institutions, media, civil society and 
international organisations.  
The Ministry of Labour, Social Affairs and Equa l Opportunities is the authority responsible 
for gender equality. The National Council for Gender Equality is an advisory body on gender policies and programmes. There is a network of gender officers in ministries and local 
government authorities and a na tional referral mechanism is be ing established to provide a 
coordinated response to domes tic violence. Public awarenes s campaigns on gender equality 
and domestic violence have been organised. Repr esentation of women in political decision-
making is low, but the introduction of a quota in  the Law on gender equality and the Electoral 
Code marked a step forward on promoting fe male participation in policy-making bodies.  
Conclusion 
Albania has started alignment with the acquis in the areas of labour law, equal treatment for 
women and men and anti-discrimination, but further efforts are necessary, in  particular in the 
area of health and safety at work. Effectiv e implementation of the legal framework and 
building adequate enforcement capacity remain ma jor challenges, particularly in the areas of 
anti-discrimination and health and safety at work. Social dialogue is still at an embryonic 
stage. A strategy is needed to improve the inst itutional framework and mechanisms for social 
EN 87  EN dialogue, alongside measures to build up soci al partners’ capacity and establish clear 
representativeness criteria. In the areas of la bour market, employment , social inclusion and 
social protection, capacity for policy development, implementation and monitoring remains a 
major challenge, not least with a view to Albania’ s participation in the European Social Fund. 
Developing reliable data and statistics remains an outstandi ng issue in several areas, in 
particular labour market analyses. Overall , Albania will have to make considerable and 
sustained efforts to align with the acquis and to implement it effectively in the medium term.  
3.20. Chapter 20: Enterprise and industrial policy 
The acquis under the enterprise and industrial polic y chapter consists largely of policy 
principles and policy recommendations, which are reflected in communications, 
recommendations and Council conclusions. The EU’s enterprise and industrial policy, 
including its small and medium-sized ente rprises (SME) policy, seeks to promote the 
competitiveness of the economy. It is strong ly driven by the Europe 2020 strategy, the 
successor of the Lisbon strategy for growth and jobs, and by the 2008 Small Business Act for 
Europe. Enterprise and industrial policy compri ses policy instruments, including financial 
support and regulatory measures. It also includes  sectoral policies, such as recommendations 
for more targeted policy analysis and for new initi atives and consultations at sectoral level.  
Albania has a relatively small and not very adva nced industrial base consisting mainly of low-
tech sectors (e.g. mining, textil es and clothing, footwear, food and beverages and furniture). 
In 2009 industry contributed 7.2% to GDP (out of  which 6.5% from th e processing industry). 
Textiles and footwear account for 1.6% of GDP and 30% of industr ial employment. Other 
major manufacturing sectors are food products , beverages and tobacco (1.3% of GDP and 
12% of industrial employment) and basic metals and metal items (1.3% of GDP and 8.4% of 
industrial employment). The chemicals, r ubber and plastics industry makes a modest 
contribution to the economy. Agriculture generates 16.2% of GDP and services 54.3%.  
The Business and Investment Development Stra tegy (BIDS) provides th e strategic framework 
for Albania’s enterprise and industrial policy. It aims at promoting steady growth and 
dynamic development of entrepreneurship, productivity and competitiveness, investment and better use of human, financial a nd natural resources. The industrial policy is built on analysis 
of competitiveness and includes broad consultati ons with stakeholders. During preparation of 
the policy, Albania followed the EU principles. In  general, the measures  taken are appropriate 
to the needs of industry, but attention needs to be paid to effective implementation. The 
Ministry of Economy, Trade and Energy (METE) is the main institution responsible for 
enterprise and industrial polic y. The Albanian Business and I nvestment Agency (Albinvest) 
has been replaced by the Albanian Investment Development Agency. Li ke Albinvest, the new 
agency depends of METE and is responsib le for promoting investment, improving 
competitiveness and providing professional support services to SMEs. 
Albania’s SME policy is based on the European Charter for Small Enterp rises and the country 
is committed to implementing the Small Business Act for Europe. Albania’s definition of ‘SME’ is in line with the EU’s  as regards the number of employees and autonomous partners 
and linked enterprise concepts. The share of SMEs in the economy is similar to that in the EU. 
In 2008 their value added to GDP stood at 63%, th eir contribution to exports at 69%, while 
their contribution to employment was 82.7%. Th e overall climate for business has improved 
as a result of developments in the regulator y framework. In particul ar, business registration 
and licensing procedures were improved a nd one-stop shops are in operation for these 
formalities. Positive measures were also taken in  the form of tax reforms, entrepreneurship 
EN 88  EN education and programmes to support SMEs and promote their competitiveness. Albania will 
need to step up its efforts to remove remaini ng obstacles to investment. In this context, 
fighting corruption and the informal economy, en suring the rule of law, in particular 
enforcement of contracts, raising the quali ty of exported products and improving human 
capital and infrastructure  will require attention.  
Albania currently has no cluste r policy, but clusters are being developed in several sectors 
with external assistance. Incuba tion and start-up support face chal lenges, mainly related to the 
lack of infrastructure and poor availability of bank loans for st art-up activities, particularly in 
rural areas.  
Only a few components of an innovation polic y and effective innovation support mechanisms 
are in place. Current initiatives related to  strategies, governance and support, such as 
establishment of the Agency for Resear ch, Technology and Innovation (ARTI) and the 
planned business relay innovation ce ntre (BRIC), are encouraging signs of development of the 
institutional framework fo r Albania’s innovation policy. 
As regards enterprise and industrial policy instruments, Albania is participating in the 
Entrepreneurship and Innovation Programme  (EIP) under the EU Competitiveness and 
Innovation Framework Programme, but not yet in the Enterprise Europe Network or EIP's 
financial instruments. In general, access to  finance remains limited. The banking system 
finances mainly large companies and tends to  be conservative towards SMEs. Credit to the 
private sector increased in 2009, but loans are st ill provided mainly for purchase of plants and 
equipment. Start-up businesses have almost no a ccess to financing from banks and rely on the 
non-banking sector and microcredi t providers. Bank requirements on loan collateral vary from 
120% to 150% of the loan and credit interest ra tes are high. Albania has not yet transposed the 
Directive on combating late payment in commercial transactions.   
On sectoral policies, Albania has launched initiatives  on mining, tourism and the clothing and 
footwear sectors. Mining gene rated 0.8% of GDP in 2008 and 9%  of employment in industry. 
However, it should be taken into account that  revenue from mining is very cyclically 
dependent. Textiles and footwear account for about 43% of total exports. However, the 
clothing and footwear sectors rely heavily on outward processing traffic based on assembly 
operations with low labour costs and e xporting mainly low value-added products. 
Tourism contributed approximately 4.1% to  GDP and 3.3% to employment in 2008. This 
sector is expanding rapidly. Al bania has adopted sustainabili ty as the general overarching 
principle in this sector, which is in line with EU policy.  
Conclusion 
Albania’s SME and industrial po licies are broadly in line w ith EU principles. However, 
remaining challenges to improve the business en vironment and remove remaining obstacles to 
investment will require particular attention an d the Directive on combating late payment in 
commercial transactions will need to be transposed. Overall , the country should, in the 
medium term, have the capacity to co mply with the requirements of the acquis  provided it 
continues its efforts.  
3.21. Chapter 21: Trans European Networks 
This chapter covers trans-European netw orks policy in the areas of transport, 
telecommunications and energy infrastructure, including the EU guidelin es on development of 
EN 89  EN trans-European networks and the support meas ures for developing projects of common 
interest. The aim of establishing and devel oping trans-European networks and promoting 
proper interconnection and interoperability of nati onal networks is to take full advantage of 
the internal market and contribute to economic growth and the creation of employment in the 
European Union. 
As regards  trans-European  transport networks  (TEN-T), Albania faces  a huge challenge due 
to limited financial resources, its mountainou s landscape and the concentration of the 
population and the main economic ac tivities in the wester n part of the country. As the country 
is experiencing rapid economic gr owth, parallel development of a sufficient transport network 
is very important. This needs to be done in th e framework of the Sout h-East European Core 
Network and the future TEN-T network. In the case of the road core network , huge progress 
has been made on its quality and density. The rail core network  has been disregarded so far 
and needs quick targeted improvements in order to ensure sustainabilit y in the medium and 
long run. Regarding sea port connections, rehabilitation of Du rres port, the main commercial 
port in Albania, must continue. Sufficient fi nancial resources need to be allocated to 
maintenance of transport infrastructure . Finally, access from the remote rural areas to the 
core network has to be ensured by conti nuing to improve the secondary network.  
In connection with trans-European  energy networks  (TEN-E) in Albania,  only the electricity 
transmission has been developed to date, wh ereas there is no gas market. The Albanian gas 
pipeline network consists of some 400 km li nking producing sites in the south with major 
domestic consumers, most of the infrastructu re is no longer in use. Numerous possible gas 
interconnectors have already been studied, al so in the context of  the Energy Community 
process and infrastructure priori ties have been identified. Despite  a gas act passed in 2008 for 
the development of a fully-fledged  natural gas sector in the c ountry, Albania needs to further 
develop the legislative framework for gas, as a precondition for further extension of the gas 
market and for participation in the regional gas network. Albania has expressed interest in two 
projects: the Ionian Adriatic ga s pipeline (along the Ad riatic coast to Croa tia, constituting an 
element of the Energy Community Gas Ring) and the Trans-Adriatic pipeline (which aims at 
linking Greece to the south of Italy). With regards to the electricity transmission system in 
Albania, voltage profile in the main networ k of 400kV and 220kV is almost in compliance 
with the criteria of UCTE. Nevertheless, the system needs overall network reinforcement and 
improvement of operational measures. The curr ent decrease in voltage in the transmission 
network limits the general net consumption and certain transm ission lines are overloaded. The 
Albanian system is connected with Greece (400kV) and Montenegro (220kV), and under construction with Kosovo (220 kV) and Monteneg ro (400kV), yet some interconnectors need 
to be upgraded and finalised. Access to importe d electricity is limited by the interconnection 
capacities and, to some extent, by the existing pr ocedures of capacity allocation, which need 
to be addressed. Two projects of common interest are identif ied in the TEN-E guidelines: 
"Electricity connection between  Elbasan/Albania and Podgorica /Montenegro" and "Electricity 
connection between Kardia/Greece) and Elbasan/ Albania". The former is nearing completion. 
It is essential to improve the coordination of  transmission system investments with the 
neighbouring countries, notably with Greece, the formerYugoslav Republic of Macedonia and 
Kosovo, bilaterally and in the fr amework of the Energy Community. 
Albania is not participat ing in the trans-European  telecommunication network . The 
government expresses interest in joining th e Information and Comm unication Technologies 
Policy Support Programme under the Compe titiveness and Innovation Programme (CIP). 
Conclusion 
EN 90  EN Overall , Albania will have to undertake additional efforts in the field of trans-European 
transport and to make considerab le and sustained efforts in the field of trans-European energy 
networks to align with the acquis  and to implement and enforce it effectively in the medium 
term. Albania needs to develop its transport infras tructure in line with the expected volume of 
traffic. Rail needs specific attention, as it could play an essential role in the medium-term and 
needs to be well connected with  the existing link w ith Montenegro. A balance needs to be 
struck between the necessary improvement of the core network and its connections on one 
hand and, on the other, the profitability of some  projects, which must be taken into account 
better. Albania has been actively participat ing in the South-East Europe Transport 
Observatory (SEETO) and must continue to coope rate with its neighbours with a view to 
jointly defining projects of regional interest. Albania needs to increase the security of 
electricity supply and to make the natural gas available to the Albanian economy in order to 
allow for efficient and stable infrastructure. 
3.22. Chapter 22: Regional policy and coordi nation of structural instruments 
The acquis  on regional policy and coordi nation of structural instru ments consists mostly of 
framework and implementing regulations, which do not require transposition into national legislation. They lay down the rules for drawing up, approving and implementing 
programmes financed by the Structural Funds (the European Regional Development Fund and 
the European Social Fund) and — for some Member States — Cohesion Fund programmes 
reflecting each country’s territorial organisa tion. These programmes are negotiated and agreed 
with the Commission. Implementation is a shared responsibility of the Member States and the Commission. Member States must co mply with the provisions of the acquis , for example in 
the areas of public procurement, competition and the environment, equality between men and 
women and non-discrimination, as well as sust ainable development, when selecting and 
implementing projects. 
As regards the legislative framework , the issue of regional devel opment is not regulated in 
any uniform manner. There is no specific la w on regional development, though it is not a 
requirement to have such a law to implem ent regional policy programmes. However, the 
Albanian authorities are curr ently preparing a law, whic h would lay the foundation for 
regional development policy in Albania. Currently, fragmented regional development 
operations are planned in a c oordinated way via a newly esta blished Regional Development 
Fund. 
Albania has three levels of governance: nationa l/central, county and lo cal (municipalities). 
Directly elected self-governmen t bodies exist at central and local levels only. County-level 
bodies consist of delegated representatives from local units. Albania’s territory is organised 
into 12 counties and 373 local government units. The State administration is divided into 36 
districts for the purpose of carrying out public  tasks under State supervision or State 
responsibility. There are neither  administrative nor self-gover ning regions in Albania that 
would correspond to level 2 in the NUTS classi fication, counties being the equivalent of 
NUTS level 3. 
The Law on the organisation and functioning of local government stipulates that 
municipalities are responsible for drawing up  development strategies and selecting and 
implementing projects related to them. Funds fo r financing municipalities are raised from 
local taxes and transfers from the central budget. Albania is in the process of decentralisation.  
EN 91  EN The Budget Law does not explicitly prov ide for multi-annual budget programming, but 
allocations for multi-annual policies and projects are coordinated in the three-year Medium-Term Budget Programme and transposed in the annual Budget Acts, thus securing financing 
for multi-annual investments. 
Albania is currently preparin g for components III (regional development) and IV (human 
resources development) of the Instrument  for Pre-Accession (IPA), which will become 
available once Albania is granted candidate co untry status. The main aim of IPA components 
III and IV is to prepare candidate countries fo r management of financial instruments under the 
Structural and Cohesion Funds following EU accession. During the first half of 2010, the 
Albanian authorities adopted a number  of decisions to put in place an institutional 
framework to plan, manage and monitor future a ssistance under IPA components III and IV. 
The strategic coordinator is the Deputy Minister  in the Ministry of European Integration, 
while the operating structures have been de signated in the Ministry  of Public Works, 
Transport and Telecommunications (for component III) and in the Ministry  of Labour, Social 
Affairs and Equal Opportunities (for component IV ). The heads of these structures have been 
appointed. Other structures es tablished for previous EU a ssistance under IPA component I 
will remain in place, namely the national IPA co ordinator, the national authorising officer and 
the National Fund. Capacity developed in the Central Finance and Contracts Unit (CFCU) 
will serve as a basis for implementing future programmes on IPA components III and IV. The 
Audit Authority is a newly established body. It s functional independence still needs to be 
verified and its capacity developed in order to fulfil its audit duties. 
Administrative capacity  to deal with the requirements of the EU’s structural policy need to 
be developed. Competent staff needs to be recru ited and solid managerial capacity needs to be 
developed at all levels of the administration dealing with the St ructural Funds. To manage this 
process, training and organisati onal development strategies remain to be formulated and the 
necessary financial resources to be allocated. Sound financial management, control and 
monitoring mechanisms will need to be given adequate human resources to deliver the 
expected results. 
Experience with pre-accession funding under com ponent I is limited and further efforts will 
be necessary to increase administrative capacity to allow smooth management and 
implementation of projects under IPA III and IV. A ttention must be paid in this context to 
build up a pipeline of eligible projects. The sa me applies to the capacity at local and county 
levels and in municipalities, which must be significantly strengthened. 
A number of programming  documents have been adopted by the government to implement 
and promote sectoral policie s for regional development pur poses. The National Programme 
for Development and Integration for 2007-2013 is the main national planning strategy for 
Albania. It synthesises the stra tegic priorities defined in vari ous sectoral strategies. These 
documents could provide a good basis for drafti ng a strategic coherence framework for the 
IPA. Drafting of the strategic coherence framework is ongoing and preparation of the 
operational programmes has recently commenced. 
Strategy-making, including for regional developm ent, is coordinated via the Integrated 
Planning System, which involves li ne ministries and other stakeholders in setting policies. 
Financing is budgeted under the Medium-ter m Budget Programme and implementation is 
coordinated and monitored by the Departme nt for Strategy and Donor Coordination. 
EN 92  EN Partnership needs to be ensured, as the pla nning and programming process should involve full 
participation by economic and social partners . Future policy instruments remain to be 
designed to ensure consistent  consultation of social and economic partners and broad 
participation by citizens and interest groups vi a open consultations and public meetings. 
Action under IPA components I and II has allowed the Albanian authorities to familiarise 
themselves with the monitoring and evaluation  requirements for EU co-funded programmes 
and projects. Evaluation capacity is very w eak in Albania. Proper national systems and 
mechanisms need to be put in place to ev aluate and monitor the quality and impact of 
development programmes. For decision-making  and reporting purposes, a management 
information system (MIS) is being currently introduced by the Albanian administration for 
IPA components I and II, which could be a good basis also for components III and IV. 
A law governing rules, met hodology, procedures and admini strative structures for financial 
management and control  activities in the public sector is planned. In the context of the IPA, 
the national authorising officer (NAO), as th e head of the Nationa l Fund (NF), will be 
responsible for sound financial management of EU funds once the country has been 
accredited to manage IPA funds in a decentralised  manner. This responsibility is assumed by 
the Deputy Minister of Fina ncial Affairs. The NAO assumes overall responsibility for 
financial management of EU funds and is res ponsible for the legality and regularity of 
financial transactions. The NAO is also respons ible for effective functioning of management 
and control systems under the IPA. 
An Audit Authority has just been set up as an independent agency reporting to the Minister of 
Finance. The High State Control Office plays no role in auditing of EU funds in Albania. 
Internal audit units and irre gularity officers in IPA bodies  need to be strengthened. ( See also 
Chapter 32 Financial Control ) 
Impact 
Albania had a nominal GDP of €7.8 billion in 2007. This equa ls about 0.06% of EU-27 GDP 
for about 0.6% of the EU-27 population. Consideri ng the size of its economy and population, 
Albania’s accession would marginally reduce th e EU’s average per capita GDP (PPS) figures 
and, hence, slightly influen ce the eligibility of regions. 
Given that its per capita GDP is considerably  below the EU average, Albania would be 
entitled to receive EU contributions from the Cohesion F und under the convergence objective. 
Following a preliminary assessment of Albani a's economic situation and considering the 
current capping rules of the structural funds, the estimated impact of Albania’s possible 
accession on EU cohesion policy is considered manageable. 
Conclusion 
Overall , cohesion policy instruments and structures are at a very early stage in Albania. 
Institutional structures need to be established and their administrative capacity will have to be 
considerably strengthened to allow successful participation in the IPA regional development 
component and EU cohesion policy. A positive star t has been made with preparations for IPA 
components III and IV, however, considerable  and sustained effo rts to set up sound 
procedures and competent administrative structures  will be necessary to allow Albania, in the 
medium term, to apply EU rules and channel the funds from the EU structural instruments.  
EN 93  EN 3.23. Chapter 23: Judiciary a nd fundamental rights 
EU policies in the area of the judiciary and f undamental rights aim to maintain and further 
develop the Union as an area of  freedom, security and justice. The establishment of an 
independent and efficient judici ary is of paramount importance . Impartiality, integrity and 
high standards of adjudication by the courts are essential for safeguarding the rule of law. 
This requires a firm commitment to eliminating external influences over the judiciary and to 
devoting adequate financial reso urces and training. Legal guarant ees for fair trial procedures 
must be in place. Likewise, Member States must fight corruption effectively as it represents a 
threat to the stability of democratic institutions  and the rule of law. A solid legal framework 
and reliable institutions ar e required to underpin a coherent policy of prevention and 
deterrence of corruption. Member States must ensure respect for funda mental rights and EU 
citizens’ rights as guaranteed by the acquis and by the Charter of Fundamental Rights.  
The principle of independence  of the judiciary  is enshrined in the Constitution and 
implemented in relevant legislation. However, th ere are obstacles to th e full independence of 
judges. 
Judges of the High Court and the Constitutional Court are appointed by the President of the 
Republic with the consent of the Assembly. The need for simple majority instead of qualified 
majority consent by parliament ha s led to the politicis ation of the appointment process of the 
two courts, which undermines the neutrality and independence of these institutions.  
The High Council of Justice (HCJ), as the body ad ministering the judiciary, is responsible for 
the protection, appointment, transfer, dismissal a nd professional evaluation of judges of first 
instance and appeal. The HCJ does not have competences over the High Court, which is 
politically appointed  and has an extra-ordina ry position within the ju dicial system. Such a 
disconnection of the highest instance court from the other instance courts weakens the 
independence of the whole system.  
The first appointment as well as the reassignment of judges of the distri ct courts and of the 
appeal courts is made by the President upon  the proposal of the HCJ based on criteria 
established by law and competitive procedures  for selection. However, the HCJ does not 
provide reasoned decisions, apart from in disc iplinary matters. There are also no procedures 
or provisions for candidates to appeal these de cisions. The lack of transparent decisions as 
well as the lack of appeal provi sions or other judicial review mechanisms entails the risk of 
political interference and possibl e susceptibility to corruption,  thus limiting the independence 
of judges. With a view to strengthening their independence, judges bene fit from full immunity 
by law. However, immunity can only be lifted upon decision of the HCJ, rendering 
investigations more diffic ult. In addition, it is on e of the main risk fact ors for corruption in the 
judiciary. 
The judiciary system in the Repub lic of Albania enjoys financia l independence. Courts have a 
separate budget which they propose pursuan t to the law and which they administer 
themselves. However, budgetary appropriations fo r the judiciary overall remain insufficient. 
Inspections  of the judiciary are undert aken by two institutions, th e inspectorates of the High 
Council of Justice and of the Minist ry of Justice. There is a cert ain degree of overlap and lack 
of coordination between the two inspectorates . The evaluation of judges by the HCJ lacks 
transparency. Disciplinary proce dures are launched solely by th e Minister of Justice without 
control mechanisms or balances; this bears the risk of political interference. 
EN 94  EN The General Prosecutor is appointed by the Pr esident of the Republic  by simple majority 
consent of the Assembly, making this appointme nt open to political influence. The other 
prosecutors are appointed by the President upon the proposal of the General Prosecutor. The 
prosecutorial system is highly centralized and pyr amidal. It is considered to belong neither to 
the judicial nor to the executive power. The autono my of prosecutors is guaranteed in the trial 
phase, but is limited in the investigativ e phase, thus reduci ng its efficiency.  
The School of Magistrates is in charge of initial and continuous training  of judges and 
prosecutors. 
The principle of equality before th e law and the righ t to process by impartial  courts is 
established by the Constitution. The Code of J udicial Ethics was introduced by the National 
Judicial conference in 2000 and overseen by this body since then. A computerised case 
management system and random allocation of case s in criminal and civil procedures are in 
place in most judicial offices. Further effort s are needed to have a fully uniform and 
harmonised integrated case management  system functioning in all courts.  
The judiciary suffers from problems of transparency  and efficiency . Court management is 
poor due to a lack of human and financial resources, in  particular in firs t instance district 
courts. There is no sound and adequate organi sation and training of court administrators. The 
backlog of cases is problematic, court proceedin gs are slow and the number of trial sessions 
for cases is high. Working conditions in courts generally remain poor and hearings often take place in judges' offices, hampering transparency and efficiency. Working conditions also raise 
concern over the security of judges. Curren tly, the Ministry of Justice is preparing 
amendments to the Civil Procedure Code a nd the Civil Code aiming at tackling these 
problems. 
Albania lacks a comprehensive long-term strategy for the judiciary sector  to continue and 
complete reform efforts in this area. 
Enforcement  of decisions is weak, in particular in cases where state institutions are the 
defendants. The new private bail iff system has not yet started to function and no sound case 
management for bailiffs is in place. 
Access to justice  has been improved by the Law on lega l aid of 2008, which provides for free 
legal assistance in civil, criminal and administ rative proceedings to different categories of 
persons. However, the law is not implemente d effectively yet. Fu rthermore, generally 
applicable judicial administration fees were increased substantially in March 2010, limiting 
access to justice for the leas t economically advantaged. 
(See also Political criteria — Democracy and the rule of law ) 
Concerning, anti-corruption policy and measures, Albania is  undertaking coordinated 
efforts. 
Albania has acceded to the Council of Europe  Criminal and Civil Law Conventions on 
Corruption and the Convention on Laundering, Sear ch, Seizure and Confiscation of Proceeds 
from Crime. Albania ratified the UN Conventi on against Corruption and has been a member 
of the Group of States agains t Corruption (GRECO) since Apr il 2001. Out of the thirteen 
recommendations of GRECO's report on Albania,  two recommendations regarding the rule on 
political party financing remain to be addressed. 
EN 95  EN Albania has adopted several anti-corruption measures a nd laws. The Criminal Code 
criminalises the main forms of corruption and th e Criminal Procedure Code includes key tools 
for fighting corruption, incl uding special investigative measures. A cross-cutting Anti-
corruption Strategy was prepared in 2008 as well as two action pl ans since then to implement 
the strategy. Albania has a law on declaration and audit of assets for civil servants and a law 
for the prevention of conflict of interest whil e exercising public office. Albania needs to 
vigorously implement the anti-corruption strate gy and action plans as well as relevant 
legislation. 
A number of key institutions and agencies have been established for the fight against 
corruption. The Department for Internal Administrative Control and Anti-Corruption 
performs internal controls on administration and is the administra tive body in charge of 
coordinating the anti-corruption strategy. The Hi gh Inspectorate for Declaration and Audit of 
Assets is in charge of  receiving and verifying the declaration of assets of public officials and 
the compliance of their positions with the law on conflict of interest. In the Ministry of 
Interior, an Internal Control Service was esta blished to investigate corruption cases in the 
police. Joint Investigative Units for economic and corruption crimes were established, which 
aim at improving the coordination efforts of law enforcement agencies. These units are 
increasingly effective in investigat ing and prosecuting corruption cases. 
Additional measures include the establishment of E-procurement systems to reduce personal 
contacts between contracting aut horities and bidders, and reforms in the education sector (e.g. 
electronic database for registra tions and anonymous entry exams)  and health sector (e.g. new 
regulation on the referral system). The effectiven ess of these measures still has to be proven 
in practice. 
Despite an improved legal and institutional fr amework, corruption remains widespread in 
Albania. Areas of particular concern are brib ery and corruption in th e judiciary, the health 
sector and in relation to the system of restitution and comp ensation of property rights. The 
absence of transparency in political party funding, allowing inappropriate influence on 
politics, is a considerable pr oblem. The main deficiencies in clude weaknesses in the legal 
framework for the fight against corruption, full  immunity granted to a large group of public 
officials (including judges, mini sters and MPs) posing a serious obstacle to the investigation 
of corruption and gaps in the in stitutional set-up and administ rative capacity. Resources to 
fight corruption remain limited. 
There are an increasing number of corruption cases been investigated and prosecuted, but 
conviction rates in such cases are low. There is no evidence that hi gh level corruption cases 
are investigated, prosecuted and adjudicated. There is a lack of a track record of convictions 
in corruption cases esta blished at all levels. 
(See also Political criteria — Democracy and the rule of law ) 
Albania is well advanced in setting up the  legal and institutional framework necessary for the 
protection of fundamental rights  and continues improving it. The Office of the Ombudsman 
(People's Advocate) functions well and is supplemented by the recently appointed 
Commissioner for the protection from discrimina tion. However, operation of these institutions 
is hampered by delays in the staffing of the Office of the Commissioner for protection from 
Discrimination and the appointment of a new Ombudsman, both pending since early 2010. 
Attention needs to focus on implementation of legislation and on genuine  independence of the 
Human Rights bodies, including through a ppropriate allocati on of resources.  
EN 96  EN Albania ensures the right to life  and has abolished the death penalty under all circumstances. 
However, despite a decrease in number, the in cidence of blood feud killings continues to 
affect some sections  of the population.  
As regards the prison system , there is a need to continue upg rading facilities to bring them in 
line with European standards and to urgently  ensure adequate treatment and appropriate 
placement of mentally ill detainees. Albania has an appropriate mechanism in place to prevent 
torture and ill-treatment , through the National Prevention M echanism and partnerships with 
NGOs. However, cases of ill-treatment remain an  issue of concern, in particular in police 
custody. Implementation of recommendations by the Ombudsman and prosecution of perpetrators needs to be enhanced.  
Despite constitutional guarantees covering freedom of expression (including the media)  and 
the existence of a pluralistic media, political and business pressures continue to impede media 
independence. The overall media climate needs to  be improved, in par ticular by addressing 
the issue of informality of contracts and th e lack of transparency in media ownership. 
Criminal Code provisions on defa mation need to be repealed. 
Freedom of assembly and association  is guaranteed and civil society operates in a non-
restrictive environment. However,  the NGO sector remains weak.  
Freedom of religion  is ensured by the Constitution and broadly respected, ensuring good 
inter-faith relations. Restitution of property be longing to religious co mmunities needs to be 
ensured.  
As regards anti-discrimination policies , the adoption of the Law on protection against 
discrimination  is a significant step in ensuring equa l treatment for all. Its implementation 
needs to be ensured, in particular through allo cation of appropriate funds to the Commissioner 
for protection from discrimination. The rights of lesbian, gay, bisexual and transgendered 
persons (LGBT) persons are protected through th is Law. However, this community continues 
to face widespread discrimination and some cases  of violence have been reported. This issue 
needs to be addressed.  
As regards women's rights , the legal framework is in place  and the introduction of a gender 
quota to enhance their participa tion in politics is a positive st ep. However, their effective 
participation remains limited. Many women are discriminated against in the field of employment and their equal access to econo mic aid is not fully guaranteed. Gender 
mainstreaming needs to be enhanced. Despite an increase in reported cases of domestic 
violence following to the introduction of the Law against violence in the family and the 
national strategy on gender equality and th e eradication of domestic violence, this 
phenomenon continues to affect many fami lies and cases are being under-reported, in 
particular in rural areas. Empha sis needs to be put on increased prosecutions, access to justice, 
victim protection and programmes for their social reintegration. 
As regards children's rights , Albania is progressively settin g up children's right units in all 
Regional Councils and has established Child prot ection units in 15 municipalities. However, 
Albania still lacks a national child protection sy stem and the integral law on childen's rights 
has yet to be adopted. The juvenile  justice system has b een reformed but it still lacks adequate 
measures for children under the age of 14. Street child ren and child labour remain issues of 
concern. 
EN 97  EN The implementation of the national strategy on persons with disabilities  remains slow and 
these persons continue to suffer from discri mination and social exclusion. A framework law 
covering all persons with disab ilities needs to be introduced and legal quotas for access to 
employment enforced. As regards mental health, the process of deinstitutionalisation needs to continue and conditions in  institutional he althcare facilities improved.  
As regards property rights , Albanian legislation is overlapping  and leads to low levels of legal 
certainty. The process of restitution or comp ensation for property nationalised under the 
previous regime is ongoing and progressing slowly. The incidence of corrupt practices 
impedes this process. The high number of pendi ng court cases and non-enforcement of court 
judgments puts into question the functioning of  the judicial system in this area.  
The constitution provides the protection of the rights of minorities . The current lack of data on 
minorities will be addressed by the 2011 census . The availability of minority language 
education needs to be enhanced and made accessible to all persons belonging to minorities 
(national and ethno-linguistic). Restitution of property belongi ng to minorities remains an 
issue. The State Committee for Minorities needs to  be substantially reinforced in order to 
ensure its representative and consultative ro le. The implementation of the Strategy on the 
Roma  minority and the Roma decade action plan need  to be accelerated. Focus needs to be put 
on improving the living conditions of the Roma  minority and decreasing discriminatory 
attitudes. Civil registration of Roma needs to be enhanced.  
(see also Political criteria - Human Rights and the protection of minorities) 
To ensure EU citizens' rights  to vote  and stand as a candidate in municipal and European 
Parliament elections , Albania will need to  amend its legal and c onstitutional framework. 
There are administrative structures in place to de al with electoral matters. There should not be 
any difficulties for Albania to transpose and implement EU law in this field.  
Regarding residence rights , the current Albanian legal framew ork is not in line with EU law 
on free movement of EU citizens and major am endments are necessary. However, this will 
only be a requirement in the later stages of th e EU accession process. There are administrative 
structures in place to deal with immigration matters and these structures are likely to be 
involved in implementation of EU law.  
Regarding diplomatic and consular protection , the current Albanian le gal framework is not in 
line with EU law. Amendments will be necessary  at a later stage. However, transposition and 
implementation of EU law should not be problematic.  
For access to justice, protection of personal data and the right to vote see Political criteria , 
for trafficking in human beings see Political criteria and Chapter 24, for labour rights and 
trade unions  see Political criteria and Chapter 19 .  
Conclusion 
Overall, Albania will have to make considerable and sustained efforts to align with the acquis  
in this chapter and to effectively implement a nd enforce it in the medium term. Considerable 
strengthening of administrative and implementation capacities will also be needed. 
(see the conclusion of Part 1 – Political criteria ) 
EN 98  EN 3.24. Chapter 24: Justice, freedom and security 
EU policies aim to maintain and further develop the Union as an area of freedom, security and 
justice. On issues such as external migrat ion, asylum, border control, visas, judicial 
cooperation in criminal and civi l matters, police coope ration, the fight against organised crime 
and terrorism, cooperation in the field of drugs and customs coope ration, Member States need 
to be properly equipped to adequately implem ent the growing framew ork of common rules. 
Above all, this requires str ong and well-integrated capacity within the law enforcement 
agencies and other relevant bodies to attain th e necessary standards. A professional, reliable 
and efficient police organisation is of paramount importance.  
The most detailed part of the EU’s policies on justice, freedom and security is the Schengen 
acquis, which entails lifting internal border cont rols in the EU. For new Member States 
substantial parts of the Schengen acquis  are implemented followi ng a separate Council 
decision taken after accession. 
Albania has made progress in a nu mber of key areas of this ch apter in the framework of the 
visa liberalisation dialogue with the EU, which set out benchmarks to be achieved in fields 
such as border security, migration, asylum and the fight against organised crime. The progress 
attained in these areas is a good basis on wh ich Albania can build further to meet the 
challenges of the enlargement process. 
As regards migration,  legislation on residence permits, family reunification, students and 
long-term residents is largely in place, alt hough it is not fully in line with the EU acquis . 
Some divergences remain in the scope of the right to family reunification and the rules on long-term resident status. Albania has no special  arrangements for highly-qualified workers. It 
has a sufficiently developed residence permits da tabase, but further alignment of penalties for 
smuggling people, employment of illegally reside nt foreign nationals or  the residence permits 
scheme for victims of trafficking will be necessa ry. Albania’s return policy is regulated by the 
Law on foreigners adopted in 2008, which addr esses the key issues of the EU Return 
Directive and is generally in line with the acquis . However, the detention process for persons 
subject to return decisions needs to be built  around a more individual case-by-case assessment 
and less coercive, alternative measures to detention need to be considered. 
The readmission agreement between the European Community and Albania has been 
implemented smoothly since 2005. Irregular mi gration from Albania remains a significant 
challenge, particularly across the land borde r with Greece. Cooperation between the Greek 
and Albanian police on this issue is good. In  2009, 64,625 return cases were recorded and 
47,239 Albanian citizens were returned.  Albania has developed a stra tegy and action plan for 
the period 2010-2015 to reintegrat e returned citizens and needs to pursue its implementation. 
Local employment bodies and migration count ers providing information about special 
services for returnees play an important role . Close cooperation with the border and migration 
police is to be pursued in this area. The To tal Information Management System (TIMS) at 
border crossing points provides data on visas, re sidence permits and work permits issued and 
on the migration statistics available. Risk analys is and monitoring of migration flows need to 
be further improved. 
In the area of asylum , the institutional and legal framework has been put in place. The Law 
on asylum was adopted in 2009 and is generally in  line with EU standards. Consistency needs 
to be ensured between the Law on asylum, the Law on integration and the Law on foreigners. 
Basic procedural guarantees in the appeal pro cess need to be regulated in the Law on asylum. 
EN 99  EN Albania needs to continue efforts leading to shor ter appeal procedures against decisions of the 
Department for Citizenship and Refugees. Training of the Department's staff, as well as of judges hearing asylum appeals, needs to continue. 
A reception centre for asylum seekers has been  fully operational since May 2010. The asylum 
system has sufficient human resources and capacity  to deal with its current low caseload. In 
February 2010, there were 69 re cognised refugees and 29 asyl um applicants. However, in 
case of a higher influx of asylum seekers, the Department for Citizenship and Refugees would need additional and more specialised staff. Alba nia is more of a transi t country for potential 
refugees on their way to the EU. The asylum  seekers are mostly ethnic Albanians from 
Kosovo. Provision of identity documents for re fugees needs to be ensured in order to 
guarantee them effective access to the rights c onferred by Albanian legislation, and their 
integration needs to be further improved. Legi slation should exempt asylum seekers and 
refugees from obligations to provide official documents issued in their country of origin. 
Legislation should specify an age limit for fing erprinting asylum seekers and migrants. More 
comprehensive statistical data needs to  be compiled in the field of asylum. 
As regards visa policy , Albania has created a legal fram ework, which needs to be brought 
fully in line with the acquis . The Law on foreigners was adopted in 2008, but further 
harmonisation with the EU Visa Code is needed. The Albanian visa lists are not harmonised 
with the EU lists. The legislation allowing Alba nia unilaterally to appl y a seasonal visa-free 
arrangement to citizens of certain non-EU countries is  not in line with the EU acquis . Issuing 
visas at the border needs to remain an exceptio n. Albania operates a visa-free regime for all 
EU Member States and unilate rally recognises Schengen visa s and residence permits as 
equivalent to short-stay visas issued by Albania. The visa facilitation agreement between the 
EU and Albania is being implemented. An e- visa information system is being set up 
Important elements to ensure in  this context will include owne rship, good managerial use and 
maintenance, security features and personal data  protection. The system w ill need to be in line 
with visa information system (VIS) requirements. 
In the area of external borders and Schengen , the border management system is generally in 
line with EU standards. The Law on state borde r control and surveillan ce was adopted in 2008 
and followed by several legal acts regarding the border and migra tion police (BMP). A 
national integrated border management strate gy was adopted in 2007 and the associated 
action plan has been was updated in 2009. The BMP is a clearly structured  department within 
the State Police with sufficient human resource s (1,539 staff), IT re sources and technical 
equipment to perform border checks. The trai ning curricula of the BMP were designed in 
cooperation with the Police Assistance Missio n of the European Community to Albania 
(PAMECA) and Frontex. Risk analysis capacity has been strengthened and is operational. 
Further upgrading of the infrastructure at bor der crossing points is continuing. All 24 border 
crossing points are connected to TIMS, providing access to the national database on travel documents and wanted persons and to the Inte rpol database. The BMP has limited access to 
the MEMEX criminal intelligence information sy stem. Further roll-out is needed, especially 
to border crossing points.  
The development of a fully civilian surveillance  of the blue borders is  continuing. An inter-
institutional maritime operations centre starte d work in January 2010 under the administration 
of the Ministry of Defence, ensuring clos e cooperation between the BMP, coastguard, 
customs authorities and Fisheries Inspectorate. The training system is being set up and the 
standard operating procedures are being fina lised. Albania should be able to patrol its 
EN 100  EN coastline effectively in the medi um term. At the moment, a three-year ban on speed boats is in 
force in order to facilitate the fight against trafficking. 
Cross-border cooperation is genera lly functioning well in the form of joint patrols, as well as 
one joint border crossing point (with Monteneg ro). A working arrangement with Frontex has 
been in place since February 2009 and cooperati on is good. Albania actively participates in 
the Western Balkans risk analysis network a nd draws on expertise a nd advice from Frontex 
for training. Inter-agency cooperation with th e customs authorities ha s been strengthened. 
However, further joint efforts are needed to fight against all types of cross border crime 
including trafficking of stolen vehicles. It is necessary that the customs authorities carry out 
systematic controls and make effective use of equipment.  
Regarding judicial cooperation in civil matters, recognition and enforcement of foreign 
judgments is incorporated in the Civil Pro cedure Code. The general system for civil and 
commercial matters is similar to that laid down in EU legislati on. Efforts are needed to ensure 
its efficient enforcement. No simplified debt re covery procedures are envisaged in Albanian 
legislation. Albania has acceded to a number of  relevant international instruments, for 
example the 1970 Hague Convention on the taking of evidence abroad. Accession to other conventions, such as the 2007 Convention on the in ternational recovery of child support, is 
still outstanding. 
In the field of judicial cooperation in criminal matters, Albania has ratified  the most 
important Council of Europe conventions and UN instruments. It needs to take steps towards 
acceding to the Additional Protocol to the Conve ntion on the transfer of sentenced persons. A 
new law on mutual legal assistance entered into force in February 2010. The provisions 
generally comply with EU standards, but eff ective implementation of the law by sufficiently 
trained personnel is needed. Judges and prosecutors also need to receive training in this field. 
In 2009, the number of transfers of convicts to and from other countries increased. Albania 
needs to take steps, particularly in the area of da ta protection, in order to  be able to  conclude a 
cooperation agreement with Eurojust. In order to be able to assume full membership of 
Eurojust in the future, further capacity building efforts are necessary in the field of judicial 
cooperation in criminal matters . Bilateral agreements are in place with a number of 
neighbouring countries on judi cial cooperation in criminal and civil matters. 
In the field of police cooperation and the fight against organised crime , important 
measures have been taken in recent years. The legal framework has been enhanced, with a new law enabling effective seizure and confiscati on of the illegal proceeds of crime. The so-
called "Anti-Mafia" Law entered into force in January 2010 together with the Law on 
protection of witnesses and informants. Their effective implementation, in particular the 
effective management of seized and confiscated assets, needs to  be ensured and demonstrated 
through a track record of final confiscations.  
A new police structure reflecting the priority given to organise d crime investigations is in 
place since July 2010. Human resources have been relocated in order to increase the number 
of staff dealing with organised crime invest igations and budgetary provision has been made 
for further investments. The introduction of jo int investigative units to fight economic crime 
and corruption has proved effective. Efforts have  been made to increase investigative capacity 
and a more pro-active and inte lligence-led approach is pr omoted. Common training with 
prosecution and other law enforcement agencies  needs to continue in order to further 
strengthen operational coopera tion between the police and pros ecution. Specialis ed training 
needs to be further developed, in particular on the international aspect s of organised crime. 
EN 101  EN The use of the MEMEX criminal intelligence sy stem has improved data exchange within the 
Albanian State Police. An upgr ade and the purchase of more licences are planned. For the 
moment, the system is not shared with other la w enforcement agencies. The transfer of data 
from archives has not been completed. The syst em contains police data but not information on 
investigations led by the pros ecution service. With the increased use of new databases, 
personal data protection within the police ne eds to be enhanced. Special investigative 
measures are increasingly use d, although line inte rcepts and the use of undercover agents are 
limited to central level. The division of task s between the Albanian State Police and the SIS 
(Security Service), particularly tasks such as the interception of tel ecommunications, needs to 
be clarified and streamlined in accordance with  European best practices and the relevant 
Council of Europe instruments. Forensic capaci ties, including management of forensic DNA, 
need to be improved. A reliable system  for reporting statis tics is necessary. 
Overall sustained and effective joint action by all stakeholders is necessary to dispel the 
general association of Albania with trafficking of human bei ngs, drugs, weapons, stolen cars 
and money laundering. Successful law enforcemen t operations need to be underpinned by 
convictions. In October 2010, an agreement esta blishing a regional office in Belgrade for 
improving cooperation in the fight against organi sed crime was signed with Albania, Bosnia 
and Herzegovina, Croatia, Montenegro an d the former Yugoslav Republic of 
Macedonia. Further strengthening of cooperation at  international level is necessary, including 
with Interpol. Albania needs to meet the requi rements for the conclusion of an operational 
agreement with Europol.  
In the fight against terrorism , Albania has revised and adapte d its national legal framework 
with the international regula tory framework, but still need s to fully comply with the acquis . A 
counter-terrorism strategy has not been adopte d yet. Information systems and databases, 
which would facilitate the cooperation and coordi nation of competent authorities, remain to 
be developed. 
The fight against drugs  remains an area of concern,  although recently a more active 
approach has been adopted by law enforcement agencies, resulting in drug seizures. Albania continues to be on one of the main Balkan dr ug trafficking routes. Cannabis is still being 
produced in Albania, but cultiv ation has largely moved to more  remote mountain regions. An 
action plan to fight cultivation of narcotics is being implemented. Programmes for cultivation of alternative crops need to be put in place. The National Strategy against Drugs will expire at 
the end of 2010. A new strategy needs to be dr afted based on lessons learnt. Some efforts 
have been made towards more  efficient investigation and prosecution of drug trafficking 
cases. Cooperation with foreign law enforcemen t agencies is good, but needs to continue. 
Further development of investigative methods  is required in order to conduct complex 
investigations. 
Albania’s capacity to deal with the demand fo r treatment and rehabilitation of drug addicts is 
still insufficient. Cooperation with the Europe an Monitoring Centre for Drugs and Drug 
Addiction (EMCDDA) produced some substantia l results in 2009; a first country overview 
and an Information Map were published and sc ientific activities organised. Overall, the 
institutional framework for cooperation with EMCDDA is still at a preliminary stage. 
Despite the good progress,  trafficking in human beings  continues to be an area of concern. 
Albania remains a source country for traffick ing for the purposes of sexual exploitation and 
forced labour. The implementation of the outgoi ng strategies needs to be evaluated and new 
strategies drafted. Albania is improving its capacity  to detect, protect a nd reintegrate victims. 
EN 102  EN However, there has been a drop in detection of cases, in line  with the regional trend. In 2009, 
very few trafficking cases we re prosecuted in court. Tr aining on identification and 
interviewing victims, as well as special inves tigative techniques, need to be further provided 
to law enforcement officers. Recruitment of sp ecially trained female police officers at the 
most sensitive crossing points needs to continue . International police cooperation needs to be 
stepped up.  
A new Law on social services was approved in March 2010, pr oviding financial support to 
victims. Financial and human resources need to be further improved and cooperation between 
the local authorities involved (schools, social services, municipalities) needs to be enhanced 
to better prevent trafficking and to reintegrat e victims, especially children. In 2009, day care 
centres and child protection units were esta blished. Effective protection of victims who 
collaborate with the law enfor cement authorities is needed.  
In the area of money laundering, Albania has put in place a legislative framework which 
however still needs to be fully aligned with international norms, FATF recommendations and 
the provisions of the acquis (see also Chapter 4 — Free movement of capital) . The minimum 
criminal penalties for money laundering n eed to be raised in line with the acquis.  Practical 
improvements have been made in recent years by decreasing reporting thresholds, introducing 
preventive measures and reducing cash transactions . Client identification is still inconsistent 
and needs to go hand in hand with the conso lidation of the Address and Civil Registry 
systems. The financial intellig ence unit (FIU) is in place and has improved its operational and 
analytical capacity through increased traini ng. The number of cas es referred to the 
prosecution services is increasing. Coopera tion with other nationa l and international 
institutions is satisfactory. Th e National Strategy and Action pl an are being implemented, but 
additional efforts are needed to tackle the phenomenon effectively. The quality and the low 
number of suspicious transaction reports sent to FIU remains a challenge. Electronic 
reporting, especially from the non-banking sector, needs to be promoted. A national register 
of bank accounts is not in place. More cross- checks with other institutions need to be 
performed by the FIU. The analytical staff and IT  tools of the FIU need to be reinforced. The 
Bank of Albania needs to play a more active role in this field, as a principal supervisor of the 
banking system. Albania needs to use powers to confiscate criminal assets more effectively. 
The central asset recovery office required by the EU acquis  has not yet b een set up in 
Albania. The low number of prosecutions and final convictions in money laundering cases 
remains a concern. 
Albania has put in place a range  of bilateral agreements on customs cooperation and needs to 
implement these effectively. It needs to start preparing for ratification and implementation of 
the Convention on mutual assistance and coopera tion between the Member States (Naples II) 
and the Convention on the use of information technology for customs purposes (CIS). The technical and administrative capac ity of customs services needs to be further enhanced, and 
their investigative powers used more proactivel y, in order that they can carry out effective 
operations to counter organised crime. 
For protection of the euro  against counterfeiting, 
see chapter 32 Financial control. 
Conclusion  
Albania has made considerable effort s to align its legislation with the acquis  in the field of 
justice, freedom and security. Positive result s have been achieved in reform of the law 
enforcement authorities and in providing them w ith adequate resources and tools to face the 
EN 103  EN challenges of organised crime. Ho wever, further steps are necessary to fully align legislation 
with the acquis  and international norms. A proactive ap proach by law enforcement authorities 
is key to tackling organised crime, which remain s a matter of concern. A solid track record of 
convictions needs to be built up. Overall , Albania will have to make considerable and 
sustained efforts to align with the acquis and to implement it effectively in the medium term .  
3.25. Chapter 25: Science and research 
The acquis in the field of science and research does not in principle require transposition of 
EU rules into the national legal order. Successful implementation of the acquis  in this domain 
therefore involves mainly fulfilling the necessary  conditions for participating effectively in 
the EU's Research Framework Programmes and c ontributing to the creation of the European 
Research Area. This requires good administra tive capacity (adequate staffing and knowledge 
of research cooperation) and scientific excelle nce in order to be su ccessful in carrying out 
research and innovation projects to gether with scientific partners  from EU Member States and 
in creating growth and jobs in an economically sustainable way. 
Albania, as a potential candidate country, has b een associated with the Seventh EU Research 
Framework Programme (FP7) since January 2008. 
National  research policy  is under the authority of the Ministry of Education and Science, 
which oversees the strategic planning and legi slative sides and national and international 
cooperation. Basic research prio rities are set by the government  and approved in parliament, 
following consultation of the Academy of Sc iences, the Council of Higher Education and 
Science and the Conference of University Rector s. In 2010 Albania established an Agency for 
Research, Technology and Innovation, which is res ponsible for evaluation of research funding 
at both national and internationa l levels. Albania has identified seven priority fields for 
research which should contribute to the economic development and competitiveness of the country.  
Albania started reforming its scientific resear ch system in 2006, with the integration of the 
former institutes of the Academy of Sciences in to the major public universities. The role of 
the Academy now consists, as in most European  countries, of representation and advice. The 
research institutes under the line ministries were  also restructured and merged into 12 newly 
created technology transfer centres and agencies.  
The current level of investment is very lo w (about 0.2% of GDP in 2009). Due to lack of 
statistics and systems to collec t data from the private sector, there are no means to monitor the 
targets set. Albania is activel y working on a reform of scien ce and research statistics to 
comply with EU criteria.  
In 2009, a Strategy on Science, Technology and Innovation (STI) was adopted for the period 
2009 to 2015, which maps out the reforms needed  to create a knowledge-based economy. The 
STI aims, among other things, to  increase public expenditure on research to 0.6% of GDP by 
2015, create centres of excellence, increas e the number of researchers and boost the 
innovation capacity of businesses with the ai d of partnerships between academics and 
industry.  
Effective participation in the EU research framework programmes  requires good 
administrative capacity (sufficient staffing and expertise on research  cooperation under the 
EU framework programmes ) and scientific excellence in order to be able to submit successful 
proposals for projects jointly w ith EU and non-EU research in stitutes. Since Albania first 
EN 104  EN became associated with FP7, it has become more familiar with cooperation under the EU 
research framework programme, but its rate of successful participation is still very low. 
Albania has started to take the necessary cap acity-building measures by nominating observer 
delegates to the FP7 management  committees and restructuring its  network of national contact 
points. The country is not engaged in nuclear  research and has not requested to become 
associated with the Euratom framework programme .  
Regarding policy initiatives to help create the European Research Area , the STI strategy for 
2010-2015 is fully in line with the ERA objectives , but serious efforts will be necessary to 
achieve the targets set. In addition, exact data on investment in research and the number of 
researchers in the country or the diaspora are lacking. Albania has star ted to take action to 
reverse the brain drain by attract ing scientists back to the country. It has announced an action 
plan on mobility of researchers, including m easures to attract young people to sciences and 
strengthen human capital-buildi ng. Albania is suffering from a lack of modern research 
infrastructure and state-of-the-art equipm ent, but efforts are underway to improve 
infrastructure, starting with support for deve lopment of communication networks and IT 
systems.  
Albania is participating in the work of the European Research Area Committee (ERAC, 
former CREST) and has nominated a delega te observer to the Standing Committee for 
Agricultural Research (SCAR). It has also been invited to nominate delegate observers to the 
different ERA governance bodies.  
International cooperation, particularly with EU partners, is high on the national agenda. 
Albania is actively participating in several regi onal projects with the other Balkan countries 
and has recently concluded science and t echnology agreements with several neighbouring 
countries and other inte rnational partners.  
Conclusion 
Overall , if it continues its efforts, Albania shoul d, in the medium term, have the capacity to 
comply with the requirements of the acquis . The National Science, Technology and 
Innovation Plan is fully in line with the targets se t at EU level in the co ntext of the European 
Research Area. Consistent implementation and cl ose monitoring of target s adopted at national 
level are, however, of key importance. Albania w ill have to undertake additional efforts for its 
effective participation in the research framew ork programmes and further integration in the 
European research area. This also requires strengthening the administrative capacity and 
increasing the currently very low level of investment.  
3.26. Chapter 26: Education and Culture 
The acquis on education and culture consists mainly  of a cooperation framework made up of 
programmes and the open method of coordinati on (OMC), which aims at convergence of 
national policies and attainment of shared obj ectives. In the field of education and youth, 
Member States need to ensure sound manage ment of decentralised EU programmes. The 
acquis  also requires Member States to facilitate the education of children of EU migrant 
workers and to prevent discrimination against EU  nationals. In the fiel d of culture, the 2005 
UNESCO Convention on the protection and pr omotion of the dive rsity of cultural 
expressions, ratified by the EU, is a major component of the acquis . The EU also contributes 
to promoting European sporting issues.  
EN 105  EN In the field of education and training , Albania is in the process of reforming its education 
system in line with the developments in th e EU. Efforts are being made to improve the 
education and training system and very ambi tious targets have been  set at national and 
regional levels. School cu rricula have been revised and prov ide some flexibility to meet the 
needs of minority and vulnera ble groups. Legislation on ensu ring inclusive education of 
vulnerable groups and children with special need s has to be enforced. Some quality assurance 
measures have been introduced or streng thened, such as new textbooks and school 
inspections. However, the quality  of education is affected by  the need for continuous school 
rehabilitation, equipment upgrad ing and teacher training. Albani a does not yet participate in 
international testing (OECD PISA test) or in data sources, such as the UNESCO database. The recently revised legislation and the ne w school curriculum implemented in 2009-2010 
aim at improving the level of education. The implementation of the reforms needs to be 
followed very closely and progress monitore d. Providing adequate human resources and 
material capacity and reforming the school gov ernance are major challenges. In terms of 
public spending on education, funding in 2009 was at 3.8% of GDP.  
The vocational education and trai ning (VET) system is under revi ew. In order to take into 
account labour market needs and social demands, the VET studies structur e is in line with the 
European Qualifications Framework (EQF). The recently established National Agency for 
Vocational Education and Training has been given a mandate to monitor quality assurance in 
VET.  
As a party to the Bologna process, Albania is  continuing its efforts in higher education 
reform. However, there is a need for assessmen t of recent reforms. Both third-level (PhD) 
degrees and a National Qualifica tions Framework (NQF) have been  introduced, but need to be 
further developed. Internal quali ty assurance systems are in place, but external quality 
assurance has still to be completed. Instit utional autonomy and good governance will require 
particular attention. Further efforts are required on integra tion of teaching and research, 
continued curricular reform, recognition of  prior learning, and increasing mobility.  
In Albania, responsibility fo r formulating and implementing youth policy  lies with the 
Ministry of Tourism, Culture, Youth and Spor ts. A National Youth St rategy was adopted in 
2006, followed by a National Youth Action Plan  for 2007-2013. A national youth centre is 
currently being established as  the main government body responsible for implementation of 
policies related to youth. However, much depends on the vision and commitment of non-
governmental youth organisations which, themselves , are struggling to establish a sustainable 
position in society. Albania will have to review  its strategy in line with  the EU Youth Strategy 
(2010-2018).  
As regards the Directive on education of ch ildren of EU migrant workers, Albanian 
legislation already covers mo st of its requirements.  
In order to fulfil the preconditions for participat ion in the decentralised EU programmes in the 
fields of education and traini ng and youth, the relevant author ities will need to develop 
capacities for sound financial management and financial control.  
In the area of culture , drawing on national and local public funds, Albania is supporting 
cultural institutions and artist ic and creative work and promo ting capacity-building, including 
international training. Albani a ratified the 2005 UNESCO Conve ntion on the protection and 
promotion of the diversity of cultural expressions in  2006 and subscribes to  the objectives of 
the European Agenda for Culture. A new nationa l strategy on culture is expected to be 
EN 106  EN adopted in 2010. Negotiations are u nder way for full participatio n of Albania in the Culture 
Programme.  
Conclusion 
Reforms in this sector need to be pursued and implementation monitored. Convergence with 
EU policies and promoting quality and good govern ance in education and training are major 
national priorities. Non-discrimination against EU nationals within the Albanian education 
system will need to be ensured. Albania will need  to significantly strengthen its administrative 
capacity in order to ensure sound financial management of  the decentralised education 
programmes. Overall , if it continues its efforts, Albania should, in the medium term, have the 
capacity to comply with the requirements of the acquis . 
3.27. Chapter 27: Environment 
EU environment policy aims to promote sustai nable development and protect the environment 
for present and future generations. It is based on integration of envir onmental protection into 
other EU policies, preventive action, the pollut er pays principle, fighting environmental 
damage at source and shared responsibility. The acquis  comprises over 200 major legal acts 
covering horizontal legislation, water and air quality, waste ma nagement, nature protection, 
industrial pollution and risk management, chemi cals and noise. Ensuring compliance with the 
acquis  requires significant investment, but also brings significant benefits. A strong and well-
equipped administration at national and local levels is imperative for application and 
enforcement of the acquis . 
The Constitution of Albania considers sustaina ble development and environmental protection 
one of the fundamental goals of the State. The 2002 Framework Law on environmental protection provides a basis fo r specific legal acts regula ting different components of 
environmental protection. Specific laws are in place to regulate air and water quality, waste 
management, chemicals, biodiversity, etc. Howeve r, considerable efforts are needed to revise 
the existing national legislative framework to  align it fully with the EU environmental acquis .  
Regarding the institutional and administrative fra mework, the Ministry of the Environment, 
Forests and Water Administration along with 12 regional environmen t agencies and the 
Environment Inspectorate cove r a considerable part of en vironment policy. However, the 
existing institutions are not fully operational and there are gaps and fragmentation of 
responsibilities, partic ularly in the waste and water se ctors. Further streamlining and 
consolidation of the existing institutional arrangements is required plus setting up new institutions, such as an environment and fore sts agency and inspection units. It is also 
essential to establish a clear division of responsibilities betw een different administrative 
bodies. Inter-institutional c oordination remains poor.  
The environmental inspection system is only partly  aligned with the acquis. There is a lack of 
administrative capacity, in particular enough well trained staff and appr opriate equipment for 
proper implementation of the whole environmenta l inspection cycle. Pa rticular efforts are 
needed on inspection planning, on effective co operation between environmental inspectors 
and other supervisory authori ties and on improving the system for reporting and evaluating 
the inspectorate’s work. A more effective syst em for prosecuting breaches of environmental 
law is required, including new legislation ta rgeting specific offences, proportionate and 
dissuasive sanctions, an effective enforcemen t system and proper prosecution. Overall, 
implementation and enforcement levels are low due to weak legislation, lack of human and 
EN 107  EN financial resources, lack of awareness in government, business and society in general, 
fragmented responsibilities a nd a weak judicial system. 
Environmental monitoring across all sectors is weak and inconsistent  and does not provide 
reliable data. Urgent efforts are needed to develop a consolid ated, properly equipped 
monitoring and information system.  
There is no overall environmental investment  strategy. Priority needs to be given to 
environmental spending from national resources, to complement international funding. In this 
context, the commitment to se t up an environmental fund is very welcome and should be met. 
A national environmental investme nt strategy needs to be prepared as soon as possible.  
Public awareness  and participation in environmental decision-making and public access to 
environmental information remain weak. Further efforts are needed to build a solid partnership between governm ent and civil society.  
Horizontal legislation  is weakly aligned with the acquis . Further efforts are needed to 
finalise alignment in the area of environmenta l impact assessment, including to remedy flaws 
in transposition. Transposition of the legisla tion on strategic environmental assessment and 
environmental liability is at an early stage an d needs to be speeded up. Further efforts are 
needed to improve access to justice and fac ilitate public participa tion, including better 
information, financial assistance, legal aid and making sure that procedures are not 
unreasonably long and expensive. Implementation a nd enforcement of legislation in this field 
require considerable strengthening. In pa rticular, environmental impact assessments, 
including due consideration of viable alterna tives, need to be carried out properly and 
coordination between authorities and with all stakeholders needs to be ensured.  
Air pollution is one of the main environmenta l concerns for Albania. However, there are 
neither a specific national strategy nor regi onal plans (except for Tirana) to address air 
quality . A 2008 cross-cutting strategy for the envi ronment sets a number of objectives for 
alignment with EU and WHO standards, but thes e are not yet operational. Air quality is now 
monitored in all the main cities, but monito ring is hindered by poor equipment and methods 
and no consistent data are available. Transposition and implementation of the acquis  in this 
sector remain at an early stage. The main ga ps to be filled include designating competent 
authorities, adopting a number of laws, includi ng the new Law on air protection, establishing 
a comprehensive monitoring programme and da tabase and making data available to the 
public.  
Alignment in the area of waste management  is moderate and needs to be considerably 
speeded up. In particular, a comprehensive wast e management strategy an d national as well as 
municipal waste management plans need to be rapidly developed. The waste management 
hierarchy needs to be brought into line with th e EU Waste Framework Di rective. A number of 
legislative acts transposing a large part of the EU waste legislation need to be adopted. 
Implementation and enforcement remain at a very early stage and investment needs to 
increase considerably. No permanent monitoring  takes place and no official database exists. 
Currently a solid waste collection system exists only in the main cities and towns. There is no 
safe landfill complying with EU standards. Most wa ste, particularly in rural areas, is disposed 
of in uncontrolled dumps or burnt. Substantial efforts are required to reduce waste generation 
and promote recycling. Rehabili tation of toxic hotspots is pr ogressing, but new ones are being 
identified.  
EN 108  EN As regards water quality,  alignment with EU standards is at an early stage. The national 
strategy for water supply and sewage, the new water law and most of the legislation for 
approximation with the Water Fram ework Directive and other direct ives in this sector have 
yet to be adopted. Albania is making steady pr ogress on improving waste water collection and 
treatment and its drinking water supply infrastr ucture, but very signific ant investment is still 
required. As regards the marine environment, Albania is involved in the work under the 
Barcelona Convention on protection against po llution in the Mediterranean Sea. Further 
efforts are needed, however, on aligning with  the Marine Strategy Framework Directive. 
Implementation and enforcement of the water le gislation also need to be considerably 
strengthened. Particular attenti on needs to be paid to clearly defining currently fragmented 
responsibilities and ensuri ng sound coordination between competent authorities.  
Albania is advancing on transposition of the nature protection legislation. Initial 
preparations are being made for establishment of the Natura 2000 network and accession to 
the key multilateral agreements  in the area of nature prot ection. A National Biodiversity 
Strategy and Action Plan are being implemente d. However, further monitoring is needed, 
targeted on adjustments to strategy related to the new EU biodivers ity target. Albania is 
progressing well on establishment of the Em erald network. However, implementation, 
enforcement and, in particular, management of the protected area s need considerable 
improvement. Illegal logging and hunting and unaut horised construction in  nature reserves 
remain significant concerns. Inspections and sanc tions have to be implemented. An effective 
monitoring and information system  has yet to be developed.  
As regards industrial pollution and risk management , the level of alignment is very low 
and needs to be speeded up. In particular, tran sposition of the Integrated Pollution Prevention 
and Control Directive and devel opment of a permit system based on best available techniques, 
including equipping environmental inspectorates with proper capacity to conduct control, 
verification and assistance functi ons, need to be addressed as early as possible. Transposition 
of the Large Combustion Plants, Seveso II, Waste Incineration and Solvents Directives is also 
at a very early stage. Serious efforts are needed on institutional capacity-building.  
Albania has national legislati on regulating management of chemicals and dangerous 
substances. However, it is only partly in line with the main EU legislation in the field of chemicals (REACH and the regulations on cl assification, labelling and packaging of 
substances and mixtures). In particular, there is no single competent authority. Responsibility 
in the field of chemicals is spread across a num ber of ministries, with unclear and overlapping 
responsibilities and weak administrative capacit y. The register of chemical substances and 
mixtures and the classification and labelling syst em need to be adjusted to EU requirements. 
The mechanism for evaluation of chemicals need s to be developed. As  regards control of 
hazardous materials, Albania applies the releva nt international conventions, but alignment 
with the EU legislation is still necessary. Direct ives on biocides and laboratory animal welfare 
have still to be adopted.  
As regards environmental audits  and eco-labelling, no specific sy stem exists in Albania and 
substantial efforts are needed to create the conditions for proper implementation of such 
schemes. 
Albania has been a ‘non-Annex I’ party to  the United Nations Framework Convention on 
climate change  since 1994 and also ratified the Kyoto Protocol in 2004. However, as a non-
Annex I party, Albania has no greenhouse gas (GHG) emission limit/reduction target. Albania has submitted two National Communications. The second, submitted in November 2009, 
EN 109  EN includes estimates for emissions of HFCs, PFCs and SF 6. At the moment, Albania is not ready 
to take on a legally binding greenhouse gas emission limit or reduction commitment under the 
post-2012 climate regulations. Albania is st riving to improve its GHG monitoring and 
reporting, on which much remains to be done. A GHG inventory fo r the period 1990-2000 
exists, but no more recent data are availabl e. Albania plans to in clude a GHG inventory for 
2001-2010 in its third National Communication. It has taken no measures to transpose and 
implement the EU emission trading system (E U ETS). Albania has ma de some efforts to 
address key sectors outside the EU ETS (e.g. tran sport and waste), but fu rther measures need 
to be envisaged to align with the acquis . 
Albania is party to the Montreal  Protocol on substances that deplete the ozone layer and has 
ratified all the amendments to it. Albania has to comply with less demanding phase-out 
schedules for the different groups of substances than the EU and its Member States and has a 
satisfactory level of compliance with the Prot ocol. Albania recently sent notification of a 
revision of its ozone legislation, which seems to  go further than required under the Protocol 
and further aligns this legislation with the EU acquis .  
Administrative capacity and technical and fi nancial resources need  to be strengthened 
considerably for Albania to be able to align with and implement all the requirements of the 
EU acquis  on climate change. 
As regards noise , transposition of parts of the acquis  is underway, but implementation is at an 
early stage. 
The Council of Ministers is responsible fo r planning and response measures regarding civil 
protection . To deal with any civil emergency, an  Inter-ministerial Committee for Civil 
Emergencies has been established. The Ministry of the Interior is responsible for preparing 
and implementing the National Civil Emergency Pla n. Albania also has seve ral related laws in 
place. International cooperation has been established. At the beginning of 2010 Albania used 
the Monitoring and Information Centre (MIC) operated by the European Commission to 
respond to the severe flooding. Furthermore, Al bania is supporting the regional cooperation 
on response to forest fires and has enhan ced its national capacity for fire-fighting.  
Conclusion 
Considerable efforts are needed to revise the ex isting national legislative framework to align it 
fully with the EU environmental acquis . The process of strategic pl anning in all sectors needs 
to be accelerated and sustainable funding for implementation needs to be secured, including 
by establishing a dedicated environment fund. Partic ular attention must be given to the quality 
of transposition of the EU legislation and to ensuring proper implementation and enforcement. 
The environment has to be integrated into ot her sectors, at both th e strategic and policy 
implementation levels. Development of a co mprehensive environmental monitoring and 
information system across all sectors needs to be addressed urgently.  
Administrative capacity needs to be significantly reinforced, including filling the existing 
gaps, streamlining management of currently fr agmented responsibilities and ensuring proper 
horizontal and vertical coordina tion. At local level particular ly, care needs to be taken to 
ensure that local authorities have the resource s necessary to discharge their responsibilities 
effectively. The implementation and enforcement capacity of the inspectorates needs to be 
considerably strengthened, by making the necessa ry legislative adjust ments, carrying out 
general capacity-building and ensuring effective cooperation with the judicial system. 
EN 110  EN Overall , Albania will have to make considerable a nd sustained efforts to align its legislation 
with the environmental acquis  and to implement and enforce it effectively in the medium 
term. It will be particularly important to create the conditions for building the necessary 
technical and human capacity and resources in th is area within the next few years. Effective 
compliance with EU legislation requiring a sustained high level of investment and 
considerable administrative efforts ca n only be achieved in the long term. 
3.28. Chapter 28: Consumer and health protection 
The acquis  on consumer protection covers the safety  of consumer goods, as well as the 
protection of the economic intere sts of consumers in a number of specific sectors. Member 
States need to transpose the acquis  into national law and to put in place independent 
administrative structures and enforcement power s which allow effective market surveillance 
and enforcement. Appropriate judicial and out-of-court dispute resolution mechanisms, 
consumer information and education and a role for consumer organisations should be ensured 
as well. This chapter also covers rules in the area of public health.  
The Stabilisation and Asso ciation Agreement  provides for enhanced cooperation in the area of 
consumer protection aiming at aligning the c onsumer protection standards in Albania with 
those of the European Union, including acti ve consumer protection and efficient law 
enforcement.  
The general framework for consumer protection  in Albania is enshrined in the national inter-
sectoral strategy on consumer protection and market surveillance, adopted in 2007 and 
covering industrial, food and pharmaceutical pro ducts. Policies are developed by the Ministry 
of Economic Affairs, Trade and Energy (ME TE). The Trade Mechanisms and State Aid 
Department, operating under the Regulatory Genera l Directorate in the METE, is responsible 
for preparing legislation and developing polic ies in this sector. A Central Technical 
Inspectorate (CTI) under the METE, with 67 in spectors in Tirana and the regional offices, 
carries out some market surveillance activities.  However, application of a strategic plan and 
appropriate methodology is still pending. The gove rnment has not yet allocated additional 
staff for enforcement of the General Product Safe ty Directive. Institutio nal and administrative 
capacity need to be increased in order to ensure efficient market surveillance.  
The Consumer Protection Commission is presently  chaired by the METE and its members are 
appointed by the Prime Minister. Its independ ence and impartiality as  a body responsible for 
protecting the economic interests of consumers will have to be reinforced. The Consumer Protection Council, established by law as  a consultative forum bringing together 
representatives of the governme nt, consumer organisations and businesses, has not yet met. 
There are currently two consumer orga nisations operating in Albania.  
Regarding product safety measures , the level of alignment of Al bania’s legislation with the 
General Product Safety Directive can be considered satisfactory  at the moment. However, in 
order to achieve full alignment with the secondar y EU legislation in this  sector, Albania will 
have to make further efforts, in particular by amending its general produc t safety legislation.  
In the case of non-safety-related measures , Albania has already adopted  legislation to ensure 
approximation with most of the consumer acquis , but the institutional framework necessary to 
enforce consumer rights has not yet been entire ly established. In some areas the responsible 
authority has still to be set up (e.g. on packag e travel, package holidays and package tours), 
while in others the powers of some enforcement authorities need to be defined more clearly. 
EN 111  EN In addition, enforcement and investigative t ools, along with the resources of certain 
authorities (e.g. the Consumer Protection Commissi on), need to be further enhanced so that 
they can address infringements of  consumer laws efficiently.  
Concerning public health , the overall aim of the EU’s policy is to improve health and prevent 
human illness and diseases. The EU acquis  in this area consists of a limited number of legally 
binding instruments and a larger body of non-binding measures and policy documents, as well as two international commitments on health.  
The Ministry of Health (MoH) is responsible for defining, c oordinating and directing public 
health policy. The Institute of Public Health assists the mini stry with monitoring, analysis, 
public information and awareness-raising. Curren t health policy priorities include upgrading 
emergency services, improving accessibility of  public health care throughout the country, 
developing capacity to address epidemics and fu rther computerisation of  health services.  
Government expenditure on health is low (2.8%  of GDP). Disparities in coverage by basic 
health services exist due to the geographical di stribution of service-providers, limited access 
in remote areas and requirements limiting enrolment in the insurance scheme. There is a significant problem with patients having to make informal payments in order to receive health 
care.  
The Health Services Law was adopted in Ma rch 2009 as a framework law defining the basic 
principles and regulatory framework for organisa tion and operation of the health care system 
in Albania. In May 2009, the Public Health Care  Law was adopted to de fine the activities and 
services of the public health sy stem, the role of the State in securing funding for public health 
services and the distribution of responsibil ities between the relevant institutions. The 
government is currently working on the specific by- laws to implement the Public Health Care 
Law, some of which are linke d to communicable diseases.  
In the area of tobacco  control, alignment with the acquis is incomplete, notably as regards 
oral tobacco, the detailed rules for health wa rnings and sponsorship. A clear timetable for 
complete alignment and implementation of tobacco control measures is missing. A clear 
commitment on restrictions to tobacco advert ising and tobacco produ cts remains necessary. 
As regards protection from envi ronmental tobacco smoke, unclear arrangements are creating 
difficulties with enforcement of legal provisions.  
Regarding communicable diseases , the necessary legal basis is in  place but needs to be further 
developed to comply fully with  the EU legislation. Communicab le diseases are not a major 
cause of mortality, but remain a significant mo rbidity burden. Vaccine-preventable diseases 
appear largely under control and the immunisatio n rate is very high (over 95%). Albania was 
declared polio-free in 2002. A lthough decreasing, waterborne dis eases are still a significant 
public health issue. There are emerging threats, such as HIV/AIDS and sexually transmitted infections, although the HIV/AIDS prevalence is low. A system  for initial notification of 
communicable diseases is in place, but needs to be aligned with the acquis .  
In relation to the safety and quality rules on blood, human tissues and cells , approximation of 
the legislation on blood with the EU acquis  is well advanced. The re organisation of the blood 
transfusion services is underway, as planned in the national strategy, which envisages five 
regional blood banks including the National Bl ood Transfusion Centre, 15 district blood 
banks and 11 hospital blood banks. To date, bl ood testing has been ce ntralised at national 
level at the National Blood Transf usion Centre, while blood pro cessing has been centralised 
EN 112  EN in two regional banks (Tirana and Vlora) out of the five c overed by the plan. The national 
strategy aims to switch from the existing paid  and replacement donation system to a full 
voluntary unpaid donation approach. In the case s of tissues and cells , alignment with the 
acquis  is at a very early stage.  
Prevailing conditions in the area of mental health  raise concerns, particularly about de-
institutionalisation of long-term residents of psychiatric hospitals. Policy commitments will 
need to be backed up by adequate provision of  community-based mental health care across 
the country.  
Regarding prevention of alcohol  and drug abuse, Albania has set up structures for developing 
public health policy, providing national leadership on health promotion and gathering public 
health information. First steps have been taken to develop services fo r treatment of alcohol 
disorders. A national drugs strategy has b een in place since 2004, but a national alcohol 
strategy is still at the planni ng stage. Given that alcohol is recognised as a key health 
determinant, accountable for 6% of the dise ase burden in Albania, approval and careful 
implementation and monitoring of such a strategy are very important, not least with a view to 
regulation of sales of alcoholic beverages.  
There is currently no specific national e-he alth policy document, although the plan and 
objectives to promote use of ICT in the health s ector are outlined in a separate chapter of the 
National Information and Communi cation Technologies Strategy.  
A national cancer  strategy is being prepared. Howeve r, screening progr ammes for breast, 
cervical and colorectal cancer have not yet been established. At present there is no legislative 
framework for protection against elec tromagnetic fields in Albania.  
Conclusion 
Consumer protection measures must be implem ented against a background of efficient public 
authorities and with the active involvement of non-govern mental consumer organisations. 
Completion of an adequate and updated legislat ive framework needs to be combined with an 
effective system for enforcement and monitoring.  Further measures will be needed to improve 
the efficiency of the health system for addressi ng public health issues and reducing social and 
regional disparities in acce ss to health services. Overall , Albania will have to undertake 
additional efforts to align with the acquis and to implement it effectively in the medium term.  
3.29. Chapter 29: Customs Union 
The acquis  in this sector consists of the EU Customs Code and its implementing provisions, 
the Combined Nomenclature, the Common Customs Tariff, including trade preferences, tariff 
quotas and tariff suspensions and other customs -related legislation outside the scope of the 
Customs Code. Member States must ensure th at the necessary implementing and enforcement 
capacities, including links to the relevant co mputerised EU customs systems (e.g. tariff-
related systems, NCTS, ECS, ICS and EOS) are in place. Th e customs administration must 
also ensure adequate capacity to implement and enforce special rules laid down in related 
areas of the acquis  such as the provisions on extern al trade, health and security.  
The Stabilisation and Asso ciation Agreement (SAA) provides for establishment of a free trade 
area with the EU and the immediate or progressi ve removal of customs duties on a wide range 
of products. It places an obligation on Albania to  adopt the Combined Nomenclature. It also 
EN 113  EN provides for administrative coope ration on customs matters, and rules of origin which have to 
be observed in order to benef it from the trade preferences. 
As regards customs legislation, Albania already applies the Combined Nomenclature and its 
classification rules are largely in line with the acquis,  although practice is not always 
consistent. Existing systems of binding tariff in formation, tariff suspensions, tariff quotas and 
duty relief are similar to those of the EU but  are not yet fully aligned. Upon accession Albania 
will need to ensure implementation of all EU customs-related legislation. Albania’s customs 
legislation does not yet include security measur es or the concept of the authorised economic 
operator (AEO). The system of administrative f ees for customs supervision and control will 
need to be analysed in depth, as some of th e charges applied may not be in line with the 
acquis.  Albania will need to align its transit pro cedures in preparation for accession to the 
Common Transit Convention. Temporary ad mission under the ATA carnet has been 
introduced, but is not yet a pplied in practice as ther e is no national guarantor. 
Albania’s system of preferential rules of or igin and methods of ad ministrative cooperation 
largely reflect those used by the EU in its fr ee trade agreements. Albania applies diagonal 
cumulation with the EU and other countries part icipating in the Stabil isation and Association 
Process. Due to concerns about under-invoicing, re ference prices are often used as alternative 
valuation methods. Currently the transaction value is recognised for only about 80% of 
imports, which is lower than the EU standards.  
Customs legislation and proced ures provide a level of prot ection for intellectual property 
rights which is broadly similar to the level in the EU, although more efforts will be needed to ensure effective enforcement, including by improving interinstitutional cooperation.  
Concerning administrative and operational capacity, the legal and admini strative structures 
to apply and enforce customs rules are in place.  An Internal Audit Unit plays a key role in 
homogeneous application of the rules thro ughout the country. Res ources are generally 
adequate, but infrastructure and equipment will need upgrading to address future challenges 
and more capacity will be needed to implement and enforce the EU acquis , including in the IT 
area. The stability and independence of the Cu stoms administration needs to be reinforced, 
especially with regard to the status of its  employees. The perception of corruption in the 
customs administration is high and Albania will need to continue, w ith determination, its 
efforts to address this issue. Enhanced interinstitutional cooperation and exchanges of 
information will be required, both internally and with neighbouring countries, to improve 
security at borders and the fi ght against illegal traffic.  
The risk management system is adequate in terms of system architecture, functions and 
governance structure, although improvements will be  needed in detection of irregularities. 
Post-clearance controls will need to be systemat ically developed to compensate for the lower 
percentage of physical and documentary check s and to strike a balance between trade 
facilitation and efficient controls.  
The legal basis for trade facilita tion needs to be established (s implified procedures and AEO) 
and more extensive use of simplified procedures will be necessary to enhance the practice of 
carrying out customs formalities on the premises of businesses. Overall, proper attention will 
need to be given to shifting the focus of the customs administration from collection of duties 
to trade facilitation and protecting the health and safety of citizens. 
EN 114  EN The current computerised  declaration and processing syst em (ASYCUDA) allows risk 
analyses of all documents l odged and also includes some basic measures to introduce 
performance-based management. The system in cludes web-based declaration lodging and pre-
arrival information. However, the Albanian IT system is not in line with the new 
computerised transit system (NCTS), the inte grated transit management system (ITMS) and 
other EU e -customs specifications. Infrastructure upgrades will be needed to ensure 
continuous operation of the Customs Computer  Centre, including establishing a disaster 
recovery centre. Additional effo rts on computerisation will be required to allow all customs 
formalities and exchanges between operators and customs to be completed electronically in 
line with the EU’s modernised Customs Code. Bu siness and IT strategies  still need to be 
adopted and the systems development methods w ill need strengthening in the medium term.  
Conclusion 
Customs legislation in Albania is partly aligned with the acquis . Further efforts are needed in 
a number of areas, along with overall alignment w ith the EU’s customs legislation. The 
administrative and operational capacity of the customs administration will need to be reinforced to improve implementation of the existing legislation and to address future challenges. IT capacity will need to be strengthened, with particular attention to interconnectivity and interope rability with the computer ised systems of the EU.  
Overall , Albania still faces challenges in the area s of legislative alignm ent and administrative 
capacity, but should, in the medium term, have th e capacity to comply with the requirements 
of the acquis , provided it continues its efforts.  
3.30. Chapter 30: External relations 
The acquis in the field of external relations consists  mainly of directly binding EU legislation 
which does not require transposit ion into national law. In the area of humanitarian aid and 
development policy, applicant co untries need to comply with the EU legislation and its 
international commitments and to ensure the cap acity to participate in the EU’s policies. 
The Stabilisation and Association Agreement  (SAA) includes a core trade part establish
ing a 
free trade area between Albania and the EU . It includes  provisions in several areas requiring 
the parties to act in accordance with the rules of the WTO or relevant international 
obligations. Albania shall enhance cooperation, including trade liberalisation, within the 
region and with other countries invo lved in the enlargement process. 
Upon accession, Albania will be bound by the common commercial policy . It will have to 
apply all the autonomous (preferential and non-pr eferential) trade arrangements that the EU 
grants to certain non-EU countries, including th e Generalised System of Preferences (GSP). 
At present Albania does not apply any GSP scheme . Albania will also have to terminate all its 
current preferential trade agreements with non- EU countries and bring all other agreements, 
including non-preferential  trade agreements, into line with the obligations of EU membership. 
Albania will also become party to the Eu ropean Economic Area (EEA) and, upon accession, 
will have to apply all EU inte rnational trade agreements.  
Albania is a member of the Ce ntral European Free Trade Agreement (CEFTA). It has a free 
trade agreement with Turkey. The free trad e agreement with the European Free Trade 
Association (EFTA) is awaiti ng ratification. The average Alba nian most favoured nation 
(MFN) ad valorem  tariff rates are 7.6% for agricultura l products, 0.0% for fish and fishery 
products and 4.44% for industrial goods, with an  overall average of 5.2%. The EU average 
EN 115  EN MFN ad valorem  tariff rates are 9.74% for agricultural products, 10.02% for fish and fishery 
products and 3.75% for industrial goods, with an  overall average of 4.83%. Upon accession to 
the EU, Albania will have to a pply the EU Common Customs Tariff. 
Albania has been a member of the WTO  since 2000. As far as the pl urilateral agreements are 
concerned, Albania is a party to the Agreement on trade in civil aircraft . Albania’s schedule of 
commitments under the General Agreement on Trade in Services (GATS), and both 
horizontal limitations and sector-specific commitments, generally differ from those 
undertaken by the EU. In general, Albania has fewer horizontal commitments than the EU in terms of the number of sectors or subsecto rs covered. The sectoral or subsectoral 
commitments from Albania and the EU do not ha ve the same level of limitations, either for 
market access or national treatment. Albani a has substantially fewer sector-specific 
commitments than the EU and the Albanian system is more liberalised. Albania also has fewer MFN exemptions than the EU. In orde r to avoid compensation under Article XXI of 
GATS, upon accession Albania will have to consider amending or withdrawing its 
commitments in some sectors sensitive for the EU. None of Albania’s GATS commitments 
hinder its ability to take on the obligations of EU membership. 
Albania has bilateral investment treaties (BITs)  in force  with 37 countries and a further 8 
agreements have yet to be signed. Moreover, Albania is currently negotiating 13 more BITs. 
Some of the provisions in Albania’s BITs will need to be aligned with the acquis to meet the 
obligations of the Treat y on the Functioning of the European  Union and rele vant case-law. 
Some BITs do not provide for exemptions to  free transfer of investment-related funds 
between the signatories and provi de for pre-establishment national treatment for third-country 
investors with respect to services.  
Albania has laws in place on an ti-dumping and countervailing meas ures to offset the damage 
caused by subsidised imports. Upon accession Albani a will have to repeal national legislation 
related to its trade defence instruments and measures based on this legislation. 
As regards administrative capacity, participatio n in the EU decision-making mechanisms on 
trade and implementation and enforcement of the acquis will require strengthening the Trade 
Policy Directorate in the Ministry of Economic  Affairs, Trade and Energy. The mechanism in 
place for coordination between ministries needs to be further strengthened.  
Albania has no export credit  scheme. The acquis  on export credits will need to be applied 
upon accession. 
Albania has legislation in place on dual-use  export controls, but it is not yet fully in line with 
the acquis . Some parts of this legisla tion are different from current EU law, in particular from 
the latest EU Regulation (Regulation 428/2009), and the list of items controlled prior to 
export is not based on that regulation.  
In relation to development policy and humanitarian aid , Albania is a signatory of the 
Millennium Declaration and supports the Mont errey Consensus on development financing. It 
is a recipient of aid and has neither a polic y framework nor administ rative structures for  
development and humanitarian aid policies. It has provided limited ad hoc  aid to non-EU 
countries in response to natural disasters. Alba nia will have to adopt a legal and material 
framework to cover humanitarian aid to non-EU countries and civil protection aid to Member 
States and non-EU countries in  accordance with the principles already adopted by the Union, 
notably Regulation 1257/96. Albani a will need to strengthen the administrative structure 
EN 116  EN inside the government and its ability to part icipate in the EU decision-making process  on 
development and humanitarian aid policies. The change from recipient to donor of external 
assistance will require the active support of informed civil society.  
Conclusion 
Overall , with regard to external re lations, Albania should be able to meet EU requirements in 
the medium term, provide d alignment with the acquis  continues and the institutional capacity 
to implement and enforce it is strengthened. In  preparing for membership, Albania will need 
to ensure that its action and commitments con cerning international orga nisations are aligned 
and coordinated with those of the EU. 
3.31. Chapter 31: Foreign, Security and Defence Policy 
The common foreign and security policy (CFSP) and the common security and defence policy 
(CSDP) are based on legal acts,  including legally bi nding international agreements, and on 
policy documents. The acquis  consists of political decl arations, joint actions, common 
positions and agreements. Member States must be able to conduct political dialogue within the framework of the CFSP, to align with EU d eclarations, to take part in EU action and to 
apply the restrictive measures agreed. Applicant countries are required to progressively align 
with EU declarations and to apply restrictive measur es as and when required. 
Albania fully supports the efforts of the European  Union to strengthen it s role as a cohesive 
force in international relations and its ability to promote European interests and values on the 
international scene. Albania is seriously committed to being ready and able to participate fully and actively in the EU’s CFSP and CSDP, as defined in the Treaty on European Union, by the date of accession. 
Albania’s administrative struct ures are generally adequate, although parts ar e still being 
developed or restructured. Al bania has 40 embassies (with six more being set up), six 
permanent representations and six consulates-gen eral. The diplomatic service consists of 615 
employees, of whom 187 are in Tirana. In order to  be able to participate fully in the CFSP and 
CSDP, development and restructuring of th e administration need to be continued. 
As regards political dialogue , Albania has established close political consultations with 
Member States of the European Union. Following the entry into force of the Stabilisation and 
Association Agreement, this takes place with in the SAA structures. Since January 2004, 
Albania has in most instances, when invited, aligned itself with Council decisions, EU 
demarches and declarations. However, it conclu ded the Agreement on Article 98 of the Rome 
Statute with the USA in June 2003, which is not  in line with the EU position. Albania will 
have to change legislation in  this field before its accession. 
Albania’s foreign policy  aims at building constructive bilateral and multilateral relations. In 
this context, Albania intends to increase its role  in promoting regional peace and stability. It is 
active in all multilateral organisations and initia tives with a focus on South-East Europe and 
plays a positive role. It holds the presidency of MARRI (the Migrati on, Asylum and Refugees 
Regional Initiative) in 2010/2011.  
Overall, Albania’s bilateral relati ons pose no significant problems.  
EN 117  EN As regards restrictive measures , Albania has implemented all United Nations Security 
Council restrictive measures and EU restrict ive measures and has adopted the legal acts 
necessary to this end.  
In relation to  non-proliferation  and the strategy on weapons of mass destruction/small arms 
and light weapons  (WMD/SALW), Albania is participatin g in international export control 
arrangements and instrument s concerning the non-prolifer ation of weapons of mass 
destruction. It has applied to become a party to the Wassenaar Arrangement on export 
controls for conventional arms and dual-use goo ds and technologies. Al bania’s national laws 
and control system comply with internati onal commitments on SALW, including the EU 
strategy. However, for the time being, Albani a has no national strategy on SALW. Albania 
has declared its intention to finalise and a dopt a national strategy on SALW by the end of 
2010. Further efforts are needed to develop th e online register of weapons and ammunition 
under the management of the State Police. De struction of surplus weaponry and ammunition 
is following an action plan due to be comple ted by 2013, but requires substantial funding.  
With regard to cooperation with international organisations , Albania is a member of the UN, 
the Council of Europe, the OSCE, NATO and many other international organisations and agreements.  
Albania has introduced the legal basis and prac tical arrangements necessary to comply with 
the Council decisions on information secur ity, including on handling of classified 
information. However, it has not ye t concluded a security agreement  with the EU on 
exchanges and mutual protecti on of classified information. 
Albania is ready to partic ipate actively in different civil and  military crisis management  
missions. The country already has a team of 12 taking part in ALTHEA ammunition and explosives disposal operations plus one officer  in HQ. In Chad, 63 military personnel from 
Albania took part in EU FOR Chad/RCA (now under MI NURCAT). Albania has been 
participating in UN peacekeeping missions in Iraq and Afghanistan and contributing to 
KFOR. Cooperation with the EU  rule of law mission (EULEX ) in Kosovo seems to have 
improved and raises no concerns at present. Several agreements in 2008 and 2009 laid a legal 
basis for this cooperation. 
Civil emergency services and disaster preparedness require further improvement. 
Conclusion 
Overall , Albania should be able to fulfil its ob ligations under the CFSP and CSDP in the 
medium term, provided it takes the necessary legal and administrative measures and makes 
the necessary adjustments. 
3.32. Chapter 32: Financial Control 
The acquis on financial control relates to  the following policy areas: public internal financial 
control (PIFC) , which covers internationally agreed  standards and EU best practice for 
implementation across the en tire public sector, and external audit , which covers the 
operational and financial independence of the exte rnal audit function (na tional audit office). 
Management and control of EU funds are discu ssed in the other releva nt chapters (e.g. on 
agriculture and rural developmen t, regional policy, coordination of  structural instruments or 
fisheries). This chapter covers the more general aspects of internal cont rol and external audit 
of national funds. It also cove rs protection of the EU’s fi nancial interests, including 
EN 118  EN administrative cooperation and criminal law protection (the PI F Convention and its 
protocols). Finally, the section on protection of the euro agains t counterfeiting deals with the 
first-pillar aspects of this issue.  
In Albania, the public internal financial control (PIFC) system is further developing. The 
first PIFC policy paper, adopt ed in June 2005, has been revi sed for the period 2009–2014 and 
highlights the importance of the managerial  accountability principl e, which goes beyond 
compliance with laws and regulations. This strategy maps out the future development priorities and actions necessary. The Budget Law  (last amended in 2008), the Law on 
Financial Management and Control  from July 2010 and the Internal Audit Law of 2007 (last 
amended in September 2010) provide the legal basis for development of PIFC. The Law on 
Inspection from July 2010 provides the legal basis for centralised budget inspection  in line 
with PIFC requirements. Updated implemen ting legislation will be required along with 
considerable further efforts to implement the legal framework.  
Financial management and control  (FMC) in Albania is currently primarily understood in 
terms of controls, but there is a recognised ne ed to strengthen managerial accountability. An 
FMC manual has been prepared and it has been approved by the Minister of Finance. There 
are no systematic audit trails. Risk management is not yet developed on a systematic basis. 
Considerable training and awareness-raising e fforts will be required to implement the legal 
provisions on managerial accountability and FMC principles. As regards the internal audit  
function, organisationally, internal audit has been develope d, though existing internal audit 
units perform primarily compliance audits. There have been only a few attempts at systems or 
performance audits. The roles of internal a udit and inspection have been legally clearly 
separated but awareness needs to be raised a nd financial inspection f unction to be set up. Two  
central harmonisation units  (one on FMC, the other on internal audit)  have been established in 
the Ministry of Finance to develop and coordi nate PIFC across the entire public sector.  
With regard to protection of the EU’s financial interests (PFI), the country is also at an 
early stage of legislative and administrative pr eparations. Albania’s na tional penal legislation 
already contains many elements of the PFI legi slation (the Convention on the protection of the 
EU’s financial interests and its protocols). In the medium term, Albania will need to ensure 
that the provisions enshrined in the Albanian Criminal Code and in the Albanian Criminal 
Procedure Code comply with EU requirements fo r protection of the EU’s  financial interests. 
Albania needs to set up an effective and effi cient coordination servi ce (AFCOS) to guarantee 
compliance with the obligations concerning on-the-spot checks and inspections by the 
European Commission, in particular the obligati on to assist Commission inspectors from the 
day of accession at the latest. The legal basis fo r that has been drafted and preparations for 
putting it into operation have already started. 
Concerning protection of the euro against counterfeiting , there is legislati on covering various 
types of counterfeiting (money, credit card s and securities). Albania is working on 
amendments to the Criminal Code to address provisions on criminal offences of counterfeiting money, as well as on import, e xport and transport of counterfeited money. The 
existing national legislation does  not regulate which authoritie s have been designated for 
centralisation, technical analys is and processing of informa tion on counterfeit bank notes and 
coins, both euro and other currencies. In the medi um term, Albania will have to ensure that its 
Criminal Code and other laws and regulations  on money counterfeiting comply with the EU 
requirements for protection of th e euro against counterfeiting. 
Conclusion 
EN 119  EN Overall , as regards financial control,  Albania has started preparati ons, but it will have to make 
considerable and sustained efforts to align with the acquis  especially in the areas of protection 
of the EU's financial interests and protection  of the Euro against counterfeiting  and to 
implement the acquis  in this chapter effectively in the medium term. Whereas the legal 
framework and institutional arrangements for public internal financial control  are largely in 
place, actual implementation of both financial management and control and internal audit 
principles still needs to be further develope d. Considerable further training and awareness-
raising efforts are required in order to embe d the new control environment and management 
culture. Regarding external audit , the independence of the SAI needs to be ensured and the 
SAI Law needs to be amended to bring it fully into line with INTOSAI standards. The SAI’s 
capacity needs further strengthening to ensure effi cient external audits of government activity.  
3.33. Chapter 33: Financial and budgetary provisions 
Chapter 33 covers the rules concerning the fina ncial resources necessary for funding the EU 
budget ('own resources'). These own resources ar e made up mainly of contributions from 
Member States based on (1) traditional own resources deriving mainly from customs duties 
and sugar levies, (2) resources based on VAT and (3) resources based on the level of GNI 
(gross national income).  
The acquis  under this chapter co nsists of EU legislation th at is directly binding on the 
Member States and does not require transpositio n into national law. However, all necessary 
steps should be taken to ensure, from accession, full and correct application of the rules on own resources. 
The basic principles and institutions for the underlying policy areas shap ing the own resources 
system are in place in Albania. A national VAT  system is in operation, customs duties are 
levied on imports and national accounts and GDP  estimates are based on ESA95 standards. 
The Institute of Statistics has not ye t developed an official version of GNI . Further efforts are 
needed to reach the full implementation of the ESA 95 standards to ensure that GNI resource 
is appropriately measured. 
As regards operational management of the own resources system, Albania will need to ensure, 
in due course, the human and administrative resources  necessary to apply the EU rules 
concerning payments to the EU budget. Albania needs to develop appropriate administrative 
capacity to coordinate adequately and ensu re correct forecasting, calculation, accounting, 
collection, payment and cont rol of own resources. 
Impact 
Given its GDP level, Albania’s accession is ex pected to have a limited impact on the EU 
budget. This applies both to its likely receipts under the various EU expenditure programmes 
and to its expected contributi on to the EU budget, based on a pplication of the rules on own 
resources. 
Conclusion 
There are no significant divergences between the systems in Albania and the EU in terms of 
the basic principles and instit utions for the underlying policy ar eas shaping application of the 
rules on own resources. Overall , if it continues its efforts,  Albania should, in the medium 
term, have the capacity to comply with the requirements of the acquis in the field of financial 
and budgetary provisions.  
EN 120  EN 3.34. General Evaluation 
Albania's ability to assume the obligations of membership has been ev aluated according to the 
following indicators: 
the obligations set out in the Stab ilisation and Association Agreement; 
progress with adoption, implementa tion and enforcement of the EU acquis . 
Albania has overall smoothly implemented the obligations under the Stabilisation and 
Association Agreement, although du e attention needs to be paid  to respecting the deadlines 
for its commitments. Until recently there have al so been some gaps in the implementation of 
certain trade provisions (notab ly the standstill clause re lated to taxation of imports).  
Albania adopted a National Strategy for Devel opment and Integration (2007-2013) which is a 
comprehensive and ambitious plan providing for the approximation of national legislation to 
the EU acquis.  It has in recent years made significant efforts in aligning its legislation with 
the EU acquis , particularly in some areas of the in ternal market, trad e-related provisions, 
customs and taxation. However the country f aces major challenges in implementing and 
enforcing legislation. Administ rative and judicial capacities remain overall limited and the 
country will need sustained effort s to strengthen them to be able  to assume the obligations of 
membership in the medium-term. 
If it continues its efforts, Albania should, in the medium term, have the capacity to comply 
with the requirements of the acquis  in the following fields: 
- Taxation - Enterprise and industrial policy - Science and research - Education and culture - Customs union - External relations  - Foreign, security and defence policy 
- Financial and budgetary provisions 
Albania will have to undertake addi tional efforts to align with the acquis  and to implement it 
effectively in the medium term in the following fields: 
- Freedom of movement for workers  - Right of establishment and freedom to provide services - Free movement of capital  - Public procurement - Company law 
EN 121  EN - Competition policy  
- Financial services  - Energy  - Economic and monetary policy - Statistics - Trans-European networks - Consumer and Health Protection  Further adjustments of the legal and institutional framework and in particular strengthening of 
administrative and implementation capacitie s are needed in the above areas. 
Albania will have to make considerable and sustained efforts to align with the acquis  and to 
implement it effectively in the medium term in the following fields: 
- Free movement of goods - Intellectual property law  - Information society and media - Agriculture and rural development - Food safety, veterinary and phyto-sanitary policy  
- Fisheries - Transport policy - Social policy and employment - Regional policy and coordinati on of structural instruments 
- Judiciary and fundamental rights  - Justice, freedom and security - Financial control  Considerable adjustments of the legal and institutional framework and significant 
strengthening of administrativ e and implementation capacities are needed in these areas. 
Regarding environment, very significant e fforts will be needed to align with the EU  acquis  
and to implement it effectively. These should include substan tial investments and 
strengthening of administrative capacity for the enforcement of legislation in order to achieve effective compliance on the most important issu es, including climate ch ange, in the medium 
term. Full compliance with the  acquis  could be achieved only in  the long term and would 
necessitate increased levels of investment.  
 
EN 122  EN Statistical Annex  
STATISTICAL DATA (as of 18 October 2010)            
Albania  
            
Basic data Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Population (thousand)  3 058 3 063 3 084 3 103 3 120 3 135 3 149 3 153 3 170 3 185 
Total area of the country (km²)  28 750 28 750 28 750 28 750 28 750 28 750 28 750 28 750 28 750 28 750 
            
National accounts Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Gross domestic product (GDP) (million national currency) 1) 523 043 583 369 622 711 694 098 751 022 814 797 882 209 967 670 1 088 132e  1 122 566e 
GDP (million euro) 1) 3 945 4 541 4 705 5 048 5 883 6 561 7 168 7 828 8 861e 8 500e 
GDP (euro per capita) 1) 1 289 1 477 1 521 1 622 1 881 2 088 2 275 2 476 2 785e 2 661e 
GDP (in Purchasing Power Standards (PPS) per capi ta)  : : : : : 5 000.0 5 500.0 5 800.0 6 500.0 6 400.0 
GDP per capita in PPS (EU-27 = 100)  : : : : : 22.2 23.2 23.3 25.9 27.1 
Real GDP growth rate (growth rate of GDP volume, national currency, % change on 
previous year)  6.7 7.9 4.2 5.8 5.7 5.7 5.4 5.9 7.7e 3.3 
Employment growth (national accounts, % c hange on previous year)  : : : : : : : : : : 
Labour productivity growth: GDP growth per person employ ed (% change on previous year)  : : : : : : : : : : 
Real unit labour cost growth (national accounts,  % change on previous year)  : : : : : : : : : : 
Labour productivity per person employed (GDP in PPS per person employed, EU-27 = 100)  : : : : : : : : : : 
Gross value added by main sectors (%)                      
Agriculture and fisheries  25.5 23.6 23.4 23.5 22.3 20.6 19.4 19.0 18.5e : 
Industry  7.8 7.3 6.9 8.7 10.0 10.6 11.1 9.4 9.8e : 
Construction  8.3 10.4 12.0 13.7 13.9 13.8 14.3 14.8 14.9e : 
Services  58.5 58.6 57.6 54.0 53.8 55.0 55.2 56.8 56.7e : 
Final consumption expenditure, as  a share of GDP (%)  86.0 80.9 86.0 86.1 89.0 88.9 87.4 90.4 89.6 : 
Gross fixed capital formation, as a share of GDP (%)  31.7 38.4 37.9 40.5 37.2 37.0 39.0 38.7 38.1 : 
Changes in inventories, as a share of GDP (%)  2.4 1.3 0.8 -1.8 -3.8 -1.2 -2.8 -2.4 -1.1 : 
Exports of goods and services, relative to GDP (%)  17.9 18.4 19.6 20.4 22.0 22.8 24.9 28.1 29.4 : 
Imports of goods and services, relative to GDP (%)  38.1 39.0 44.3 45.1 44.4 47.5 48.5 54.8 56.1 : 
            
Industry Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Industrial production volume index (2000=100)  : : : : : : : : : : 
            
Inflation rate Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Annual average inflation rate (CPI, % change on previous year)  4.2 3.5 1.7 3.3 2.2 2.0 2.5 3.1 2.2 3.5 
 
EN 123  EN             
Balance of payments Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Balance of payments: current account total (million eur o)  -185 -316 -444 -350 -340 -589 -471 -831 -1 370 -1 346 
Balance of payments current account: trade balance (million euro)  -897 -1 149 -1 218 -1 177 -1 277 -1 477 -1 659 -2 104 -2 431  -2 304 
Balance of payments current account: net services  (million euro)  12 100 -8 -72 -41 -140 -32 13 69 121 
Balance of payments current account: net income (million euro)  115 150 116 132 138 131 209 217 55 -101 
Balance of payments current account: net current transfers (million euro)  586 583 667 767 839 897 1 011 1 043 937 938 
of which government transfers (million euro)  105 31 41 53 61 61 43 60 31 27 
Net foreign direct investment (FDI) (million euro)  157 231 141 157 267 209 250 470 620 680 
Foreign direct investment (FDI) abroad (million euro) 2) 0 0 0 0 0 0 0 0 0 0 
of which FDI of the reporting economy in EU- 27 countries (million euro)  : : : : : : : : : : 
Foreign direct investment (FDI) in the reporting economy (million euro) 2) 157 231 141 157 267 209 250 470 620 680 
of which FDI of EU-27 countries in the reporting economy (million euro)  : : : : : : : : : : 
            
Public finance Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
General government deficit/surplus, rela tive to GDP (%)  -7.6 -6.9 -6.1 -4.9 -5.1 -3.5 -3.3 -3.5 -5.5 : 
General government debt relative to GDP (%)  60.2 58.5 63.9 61.5 58.3 56.8 56.8 54.8 53.9 : 
            
Financial indicators Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Gross foreign debt of the whole economy, relative to GDP (%)  17.0 17.2 22.1 21.1 19.0 16.7 17.2 16.6 17.1 : 
Gross foreign debt of the whole economy, relative to total exports (%) 3) 94.9 93.1 112.5 103.5 86.5 73.0 69.0 59.0 : : 
Money supply: M1 (banknotes, coins, overnight deposits, million euro)  936 1 113 1 102 1 033 1 332 1 801 1 969 1 963 2 303 2 15 4 
Money supply: M2 (M1 plus deposits with maturity up to two years, million euro)  1 995 2 376 2 430 2 555 3 080 3 434 3 879 4 09 4 4 520 4 378 
Money supply: M3 (M2 plus marketable instruments, m illion euro)  2 475 3 069 3 083 3 225 3 942 4 614 5 415 6 129 6 643 6 599 
Total credit by monetary financial institutions to resi dents (consolidated) (million euro)  175 217 302 381 566 1 007 1 590 2 3 77 3 227 3 335 
Interest rates: day-to-day money rate, per annum (%)  : : : : : : : : : : 
Lending interest rate (one year), per annum (%) 4) 24.0 11.9 15.0 12.2 15.5 12.4 12.9 11.7 11.8 12.5 
Deposit interest rate (one year), per annum (%) 5) 8.0 7.8 8.5 8.3 6.6 5.1 5.2 5.7 6.9 6.8 
euro exchange rates: average of period - 1 euro = … nat ional currency  132.580 128.470 132.360 137.510 127.670 124.190 123.080 123.62 0 122.800 132.060 
Effective exchange rate index (2000=100)  : : : : : : : : : : 
Value of reserve assets (incl uding gold) (million euro)  697 853 1 704 1 486 1 650 1 885 2 145 2 203 2 658 2 723 
            
External trade Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Value of imports: all goods, all partners (million euro)  : : 1 586.5 1 648.5 1 859.9 2 096.1 2 430.9 3 045.7 3 699.4 : 
Value of exports: all goods, all partners (million euro)  : : 348.3 396.2 485.0 530.1 628.1 786.1 784.3 : 
Trade balance: all goods, all partners (million euro)  : : -1 238.2 -1 252.3 -1 374.9 -1 566.0 -1 802.8 -2 259.6 -2 915.1 : 
Terms of trade (export price index / import price index)  100.2 101.5 99.9 98.2 99.0 80.3 100.6 98.1 96.0 97.6 
Share of exports to EU-27 countries in value of total exports (%)  : : 92.8 93.8 90.7 92.0 88.6 83.1 76.6 : 
Share of imports from EU-27 countries in value of total imports (%)  : : 77.0 74.6 70.4 70.6 65.5 59.8 62.2 : 
            
Demography Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Natural growth rate: natural change (births minus deaths) (p er 1000 inhabitants)  11.4 12.5 9.5 9.3 8.1 7.2 5.5 5.9 6.3 : 
Infant mortality rate: deaths of children under one year of age per 1000 live births  13.8 10.8 10.2 8.4 7.8 7.6 7.4 5.6 6.0 : 
Life expectancy at birth: male (years)  72.1 72.1 72.1 72.1 72.1 72.1 73.9 72.9 72.9 72.9 
Life expectancy at birth: female (years)  78.6 77.5 77.9 78.6 78.6 78.6 78.0 77.8 77.8 77.8 
 
EN 124  EN             
Labour market Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Population (15-64): total of population aged 15-64 (thousand) 6) 1 939.0 1 773.1 1 767.0 1 825.7 1 850.6 1 876.8 2 022.6 2 106. 0b 2 052.5 2150.6 
Population in economic activity  (15-64): total of population aged 15-64 that is economiclly 
active (thousand) 6) 1 283.3 1 101.1 1 092.5 1 089.3 1 088.2 1 085.4 1 084.5 1 373.1b 1 271.4 1331.9 
Total employment (15-64): total of population aged 15-64 that  is employed (thousand) 6) 1 068.2 920.6 920.1 926.2 931.2 932.1 9 35.1 1 188.3b 1 103.5 1147.8 
Economic activity rate (15-64): share of pop ulation aged 15-64 that is economically active 
(%) 6) 66.2 62.1 61.8 59.7 58.8 57.8 53.6 65.2b 61.9 61.9 
Employment rate (15-64): share of population aged 15-64 in em ployment (%) 6) 55.1 51.9 52.1 50.7 50.3 49.7 46.2 56.4b 53.8 53.4  
Employment rate male (15-64) (%) 6) 66.0 64.0 63.9 62.6 61.2 60.0 58.8 63.6b 63.0 64.3 
Employment rate female (15-64) (%) 6) 44.1 39.6 39.7 39.1 38.9 38.8 38.1 49.3b 45.6 43.6 
Employment rate of older workers (55-64):  share of population aged 55-64 in employment 
(%)  : : : : : : : 46.6 44.0 48.9 
Employment by main sectors (%)                      
Agriculture 6) 71.8 57.7b 57.7 58.2 58.5 58.5 58.0 47.9b 44.6 44.1 
Industry 6) 5.4 7.7b 7.6 7.2 8.1 7.9 8.0 10.4b 9.3 10.0 
Construction 6) 1.2 6.1b 6.1 6.0 5.5 5.5 5.7 8.2b 8.5 9.9 
Services 6) 21.5 28.5b 28.6 28.5 27.9 28.1 28.3 33.5b 37.6 36.0 
Unemployment rate: share of labour force that is unemployed (%) 7) 16.8 16.4 15.8 15.0 14.4 14.1 13.8 13.5b 13.0 13.8 
Share of male labour force that is unemployed (%) 7) 14.9 14.2 13.6 12.9 12.4 12.1 11.8 14.4b 12.5 12.2 
Share of female labour force that is unemployed (%) 7) 19.3 19.9 19.1 18.2 17.5 17.2 16.8 12.2b 13.5 15.9 
Unemployment rate of persons < 25 years:  share of labour force aged <25 that is 
unemployed (%) 7) : : 26.8 : : : : 20.1b 27.2 27.2 
Long-term unemployment rate: share of labour force that is unemployed for 12 months and 
more (%) 7) : : : : : : : 9.3b 8.5 9.1 
            
Social cohesion Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Average nominal monthly wages and salari es (national currency)  14 963.0 17 218.0 19 659.0 21 325.0 24 393.0 26 808.0 28 822.0 33 750 .0 36 537.0 40 874.0 
Index of real wages and salaries (index of nom inal wages and salaries divided by the CPI) 
(2000=100)  : 11.6 21.1 27.8 42.8 53.3 60.9 83.1 91.7 109.8 
Early school leavers - Share of population aged 18-24 with at most lower secondary 
education and not in further education or training (%)  : : : : : : : 42.0 39.0 : 
            
Standard of living Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Number of passenger cars per 1000 population  37.4 43.6 48.2 56.4 60.9 62.2 71.4 89.1 91.4 : 
Number of subscriptions to cellular mobile telephone se rvices per 1000 population  : 120.8 259.4 370.6 403.6 488.0 561.7 : : : 
            
Infrastructure Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Density of railway network (lines in operation, per 1000 km²)  13.9 14.3 15.0 15.0 15.1 15.0 13.9 13.9 13.9 13.9 
Length of motorways (thousand km)  : : : 0 0 0 0 0 0 : 
            
Innovation and research Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Spending on human resources (public expenditure on education in % of GDP)  3.1 3.3 3.0 3.1 3.2 3.2 3.1 3.2 3.5 3.4 
Gross domestic expenditure on R&D in % of GDP  : : : : : : : : : : 
Percentage of households who have Internet access at home (%)  : : : : : 1.5 : : 3.4 : 
 
EN 125  EN  
: = not available 
e = estimated value 
b = break in series 
1) 2009 values are based on the sum of quarterly dat a, transformed to current prices for 2009. 
2) The balance of payments sign conventions are used. For FDI abroad a minus sign means  investment abroad by the reporting econ omy exceeded its disinvestment in the period, while an entry without 
sign means disinvestment exceeded investment. For FDI in the repo rting economy an entry without sign means that investment into  the reporting economy exceeded di sinvestment, while a minus sign 
indicates that disinvestment exceeded investment. 3) Debt Outstanding Disbursed (DOD) cumulative stock coveri ng external public debt and external publicly guaranteed debt, but e xcluding IMF credit. Total exports are calculated according national 
accounts concepts. 
4) Average weighted rate applied on new 12-month loans over the respective month, on 12-month maturity. 
5) Deposit interest rate represents the average weighted rate fo r newly accepted deposits over t he respective month, on 12-mont h maturity. 
6) For 2001-2006 administrative data (information only for t he male population aged 15-59 and for the female population aged 15 -54); from 2007 onwards Labour Force Survey data. 
7) From 2000 to 2006 the unemployment indicators refer to adminis trative data; from 2007 on the unemployment indicators refer t o LFS data. 
             
Environment Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Greenhouse gas emissions, CO2 equivalent (tons, 1990=100)  : : : : : : : : : : 
Energy intensity of the economy (kg of oil equivalent per 1000 euro GDP)  400.5 386.5 356.3 370.6 384.0 366.5 328.9 306.6 259.2 e : 
Electricity generated from renewable sources in % of gross electricity consumption  : : : : : : : : : : 
Road share of inland freight transport (% of tonne-km)   : : : : : : : : : : 
            
Energy Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Primary production of all energy products (thousand TOE)  987 933 896 1 012 1 178 1 149 1 237 1 080 1 159 : 
Primary production of crude oil (thousand TOE)  314 335 308 359 443 418 500 564 578 : 
Primary production of hard coal and ligni te (thousand TOE)  20 15 5 19 19 15 15 15 20 : 
Primary production of natural gas (thousand TOE)  12 8 8 12 9 10 10 16 8 : 
Net imports of all energy products (thousand TOE)  858 1 001 965 1 043 1 080 1 130 826 1 020 1 033 : 
Gross inland energy consumption (thousand TOE)  1 845 1 934 1 861 2 055 2 258 2 279 2 156 2 130 2 119 : 
Electricity generation (thousand GWh)  4.7 3.7 3.2 4.9 5.5 5.5 5.6 3.0 3.9 5.2 
            
Agriculture Note 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Agricultural production volume index of goods  and services (produc er prices, previous 
year=100)  : : : 102.9 105.1 101.2 102.5 100.4 107.4 : 
Total utilised agricultural area (thousand hectare)  1 144 1 139 1 140 1 121 1 122 1 077 1 120 1 121 1 146 1 164 
Livestock: cattle (thousand heads, end of period)  728 708 690 684 654 655 634e 577 541 494 
Livestock: pigs (thousand heads, end of period)  103 106 114 132 143 147 152e 147 161 160 
Livestock: sheep and goats (thousand heads, end of period)  3 045 2 933 2 773 2 919 2 739 2 701 2 770e 2 729 2 620 2 540 
Production and utilisation of milk on the farm (total wh ole milk, thousand tonnes)  948 984 1 010 1 060 1 064 1 076 1 102e 1 01 6 1 040 1 045 
Crop production: cereals (including  rice) (thousand tonnes, harvested production)  566 503 519 489 499 511 508 494 609 : 
Crop production: sugar beet (thousand tonnes, har vested production)  42 39 39 50 40 40 : : : : 
Crop production: vegetables (t housand tonnes, harvested production)  620 677 669 675 678 685 688 672 715 730