COMMISSION STAFF WORKING DOCUMENT Albania 2020 Report Accompanying the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2020 Communication on EU Enlargement Policy
Date: 2020-10-06
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Albania, accession criteria, accession negotiations, coronavirus disease, epidemic, pre-accession strategy

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 6.10.2020  SWD(2020) 354 final  COMMISSION STAFF WORKING DOCUMENT Albania 2020 Report Accompanying the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions  2020 Communication on EU Enlargement Policy      {COM(2020) 660 final} - {SWD(2020) 350 final} - {SWD(2020) 351 final} - {SWD(2020) 352 final} - {SWD(2020) 353 final} - {SWD(2020) 355 final} - {SWD(2020) 356 final}  
 
 
1. 

1.1. 

1.2. 

2. 

Table of Contents 

INTRODUCTION 

Context 

Summary of the report 

3 

3 

4 

FUNDAMENTALS  FIRST:  POLITICAL  CRITERIA  AND  RULE  OF  LAW 
8 
CHAPTERS 

2.1. 

Functioning of democratic institutions and public administration reform 

2.1.1   Democracy 

2.1.2.  Public administration reform 

2.2.1.  Chapter 23: Judiciary and fundamental rights 

2.2.2.  Chapter 24: Justice, freedom and security 

8 

8 

14 

18 

37 

FUNDAMENTALS 
COMPETITIVENESS 

FIRST: 

ECONOMIC 

DEVELOPMENT 

AND 

The existence of a functioning market economy 

The capacity to cope with competitive pressure and market forces within the Union  57 

GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

Chapter 1: Free movement of goods 

Chapter 2: Freedom of movement of workers 

Chapter 3: Right of establishment and freedom to provide services 

 Chapter 4: Free movement of capital 

Chapter 5: Public procurement 

Chapter 6: Company law 

Chapter 7: Intellectual property law 

Chapter 8: Competition policy 

Chapter 9: Financial services 

3. 

3.1. 

3.2. 

4. 

5. 

5.1. 

5.2. 

5.3. 

5.4. 

5.5.  

5.6. 

5.7.  

5.8.  

5.9. 

5.10. 

 Chapter 10: Information society and media 

5.11.   Chapter 11: Agriculture and rural development 

5.12.   Chapter 12: Food safety, veterinary and phytosanitary policy 

5.13.   Chapter 13: Fisheries 

5.14.   Chapter 14: Transport 

5.15.   Chapter 15: Energy 

5.16.   Chapter 16: Taxation 

5.17. 

Chapter 17: Economic and monetary policy 

5.18.   Chapter 18: Statistics 

5.19.   Chapter 19: Social policy and employment 

1 

51 

51 

59 

62 

62 

64 

64 

65 

67 

69 

70 

71 

72 

74 

75 

77 

78 

79 

81 

84 

85 

86 

88 

 
 
5.20.   Chapter 20: Enterprise and industrial policy 

5.21.   Chapter 21: Trans-European networks 

5.22.   Chapter 22: Regional policy and coordination of structural instruments 

5.25.   Chapter 25: Science and research 

5.26. 

 Chapter 26: Education and culture 

5.27.   Chapter 27: Environment and climate change 

5.28.   Chapter 28: Consumer and health protection 

5.29.   Chapter 29: Customs union 

5.30.   Chapter 30: External relations 

5.31.   Chapter 31: Foreign, security and defence policy 

5.32.   Chapter 32: Financial control 

5.33.   Chapter 33: Financial and budgetary provisions 

ANNEX I – RELATIONS BETWEEN THE EU AND ALBANIA 

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104 

107 

109 

110 

112 

114 

116 

118 

2 

 
 
 
 
1. 

Introduction  

1.1.  Context  
Albania  has  continued  to  implement  the  Stabilisation  and  Association  Agreement  and  the 
meetings of the joint bodies under the agreement took place. In April 2018, the Commission 
issued its first recommendation inviting the Council to decide that accession  negotiations be 
opened with  Albania.  In its June 2018 Conclusions, the Council acknowledged the progress 
achieved  by  Albania  and  set  out  the  path  towards  opening  accession  negotiations  in  June 
2019.  In  line  with  the  Council  Conclusions,  the  Commission  started  the  preparatory  work, 
including  through  the  technical  explanation  of  chapters  of  the  EU  acquis.  In  light  of  the 
significant progress achieved and the conditions set unanimously by the Council in June 2018 
being met, the Commission recommended again in May 2019 to open accession negotiations 
with  the  country.  In  June  2019,  the  Council  postponed  the  decision  to  October  2019.  The 
European Council then decided to ‘revert to the issue of enlargement before the EU-Western 
Balkans summit in Zagreb in May 2020’.  

The Commission has continued to monitor thoroughly developments in Albania. The country 
has  continued  to  implement  reforms  related  to  the  EU  agenda.  On  26  November  2019, 
Albania  was  hit  by  a  devastating  earthquake  of  a  magnitude  of  6.3  Richter.  Despite  the 
challenge of dealing with the emergency situation, the Albanian authorities have maintained a 
constant,  strong  public  political  commitment  to  the  country’s  strategic  goal  of  European 
integration.  Overall,  Albania  has  increased  its  efforts  and  delivered  further  tangible  and 
sustainable  results  in  the  key  areas  identified  in  the  Council  Conclusions  of  June  2018. 
Consequently, in its update on Albania published in March 20201, the Commission confirmed 
that the bases of its 2019 recommendation to open accession negotiations with Albania remain 
valid. On this basis, on 25 March 2020, the Council decided – and European leaders endorsed 
this decision on 26 March 2020 – to open accession negotiations with Albania and tasked the 
Commission to report on a number of issues to be addressed by Albania prior to the first Inter-
governmental Conference, including progress regarding the track record2. The present Report 
also serves the purpose of reporting on the Council Conclusions on the conditions identified 
with  regards  to  the  first  Inter-governmental  Conference  (IGC)  as  well  as  other  important 
priorities and the issues to be reflected in the Negotiating Framework.  

The  COVID-19  pandemic  is  a  global  shock  that  has  not  spared  the  Western  Balkans.  It 
represents  an  unprecedented  burden  on  their  health  and  social  protection  systems.  The  final 
extent  of  its  footprint  in  terms  of  loss  of  human  lives  and  damage  to  the  economies  is  still 
difficult  to  assess,  but  early  Commission  estimates  foresee  a  drop  of  between  4  and  6%  of 
Gross Domestic Product (GDP) in the region. Thousands of citizens are at risk of losing their 
jobs, and temporary government support measures (unemployment benefits, deferrals/waivers 
to tax and social security contributions, etc.) have an important fiscal impact.  

While the EU is itself heavily affected by the pandemic, it has spared no time and effort  to 
provide  essential  and  unparalleled  support  to  the  Western  Balkans.  This  includes  financial 
support  of  more  than  EUR  3.3  billion  for  countries  in  the  region  to  address  the  immediate 
health crisis and resulting humanitarian needs, as well as longer term and structural impact on 
their  societies  and  economies.  Given  the  European  perspective  of  the  Western  Balkans,  the 
EU  is  also  treating  the  region  as  privileged  partners  by  associating  them  with  the  Union’s 
the  Health  Security  Committee,  Joint 
include 
mechanisms  and 
Procurement  Agreements,  Union  Civil  Protection  Mechanism,  Solidarity  Fund,  consular 
assistance  in  repatriation  or  exemption  from  temporary  EU  export  restrictions  of  medical 
equipment. These and other measures have provided immediate relief and are a clear message 
of the EU’s political commitment towards the region. 

instruments.  These 

1 https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/update-on-the-republic-of-albania.pdf 
2 https://www.consilium.europa.eu/media/43076/26-vc-euco-statement-en.pdf 

3 

 
                                                           
As  of  March  2020,  the  government  reacted  swiftly  to  the  COVID-19  pandemic  and  took 
stringent measures thus managing the crisis with limited human and financial loss. It issued a 
series  of  decrees  subsequently  endorsed  by  the  Parliament.  The  State  of  Emergency  for 
Natural Disaster, put in place after the November 2019 earthquake, was extended until June 
2020. The authorities notified a derogation from  the obligations under certain articles of the 
Convention for the Protection of Human and Fundamental Freedoms.  

The  European  Commission  recommended  that  emergency  measures  taken  in  the  context  of 
the COVID-19 pandemic are proportionate, restricted to what is necessary and limited in time 
so that rule of law and democratic and human rights standards are respected. 

As  of  18  May  2020  the  government  lifted  lockdown  measures.  All  public  and  economic 
activities  are  open,  except  public  transport,  sports  activities,  schools  and  mass  gathering 
activities. As of 1 June 2020 all movements in all territory are free without time limitations. 
All borders with the neighbouring countries are open. No quarantine is  required for persons 
entering in the country. Quarantine is implemented only for specific cases recommended by 
the  health  authorities  in  the  country  or  protocols  issued/approved  by  the  EU  Infections 
Control. 

Summary of the report  

1.2. 
As regards the political criteria, the political environment in Albania continued to be marked 
by intense polarisation. Parliamentary activities were affected by the opposition relinquishing 
their  mandates.  Institutional  continuity  was  still  ensured  through  gradual  filling  of  vacant 
parliamentary  seats.  At  the  end  of  the  reporting  period,  the  Assembly  had  122  out  of  140 
members.  The  opposition  decided  to  boycott  the  30  June  2019  local  elections.  These  were 
held,  while  the  President  had  issued  a  decision  to  postpone  the  vote  to  October.  The 
Parliament initiated an impeachment procedure on the President that was finalised in late July 
2020. The ad hoc inquiry committee of the Parliament concluded that while the President had 
overstepped  his  Constitutional  competences,  the  violations  did  not  justify  his  impeachment. 
The country's political  stalemate saw  an opening  in  January 2020, when the ruling majority 
and  the  parliamentary  and  extra-parliamentary  opposition  reached  an  agreement  to  take 
forward  the  electoral  reform,  by  establishing  a  Political  Council,  platform  to  complete 
technical and political talks and to implement the outstanding recommendations of the Office 
for  Democratic  Institutions  and  Human  Rights  at  the  Organisation  for  Security  and 
Cooperation  in  Europe  (OSCE/ODIHR),  ensuring  transparent  financing  of  political  parties 
and  electoral  campaigns.  On  5  June  2020,  the  Political  Council  reached  a  breakthrough 
agreement  to  gradually  introduce  a  depoliticised  electoral  administration,  in  line  with 
OSCE/ODIHR 
introduce  electronic 
identification of all the  voters (where technically  viable), to  restructure  the Central  Election 
Commission, and for the Electoral College to be comprised of vetted judges. The amendments 
to the electoral code were adopted by the Parliament on 23 July 2020, in accordance with the 
5 June 2020 agreement thus meeting the condition for first IGC.  In addition, the Parliament 
adopted  on  30  July  some  amendments  to  the  Constitution  relating  to  the  electoral  system. 
These  amendments  that  are  unrelated  to  the  implementation  of  the  OSCE/ODHIR 
recommendations  required  further  amendments  to  the  electoral  code  which  were  discussed 
among  parties  in  the  Political  Council,  but  without  reaching  a  compromise  before  the 
Parliament  voted  on  them  on  5  October.  Despite  the  positive  outcome  of  the  agreement 
reached  on  5  June  2020,  the  political  dialogue  in  the  country  needs  to  be  improved,  in 
particular on electoral reform and its implementation.  

recommendations.  The  parties  also  agreed 

to 

On 9 June 2020, the Government presented to an extended meeting of the National Council 
for  European  Integration  an  action  plan  to  address  the  conditions  and  priorities  set  by  the 
March  2020  Council  Conclusions  on  Albania.  On  6  May  2020,  the  Government  nominated 
the Chief Negotiator and the negotiating team. 

4 

 
Albania is moderately prepared in the reform of its public administration. Efforts continued 
in several related areas, resulting in some progress in enforcing the guidelines on regulatory 
impact  assessments  across  line  ministries,  in  developing  the  legislative  package  related  to 
policy  planning,  in  increasing  the  number  of  e-services  and  improving  transparency  in  data 
collection and human resources management between central and local level. These tangible 
achievements need further consolidation. Particularly the government needs to step up efforts 
towards  more evidence-based  policy  making,  by  building  administrative  capacity  in  line 
ministries on policy  planning  and monitoring, data collection as  well as usage of regulatory 
impact assessments to inform better policies. 

Albania's  judicial  system  has  some  level  of  preparation  /  is  moderately  prepared.  The 
implementation  of a comprehensive and thorough justice reform  has continued consistently, 
resulting  in  good  progress  overall.  The  new  institutions  for  the  self-governance  of  the 
judiciary  have  been  performing  their  duties,  including  managing  the  processes  to  fill  the 
vacancies at the High Court and the Constitutional Court. The High Judicial Council finalised 
the selection of three non-magistrate candidates  for the High Court, appointed on 11 March 
2019,  thus  allowing  one  of  the  chambers  of  the  Court  to  function  and  meeting  the  related 
condition  for  the  first  IGC.  The  selection  process  for  the  fourth  non-magistrate  member  is 
close  to  finalisation.  The  other  magistrate  candidates  are  in  the  process  of  being  promoted 
from  within  the  court  system.  Albania  is  making  progress  to  reconstitute  the  Constitutional 
Court  and  has  appointed  three  new  members.  This  provides  the  basis  for  the  Constitutional 
Court to regain functionality – a condition for the first IGC close to being met – and increase 
public trust. In December 2019, the Court had one judge in office out of nine as a result of the 
vetting.  The  Court  now  has  four  members.  There  was  a  dispute  about  the  appointment 
procedure  of  one  of  the  latest  judges  nominated.  The  Venice  Commission  has  issued  an 
opinion  on  the  matter,  providing  the  necessary  guidance  to  the  Albanian  authorities  to 
complete  the  outstanding  appointments  to  the  Constitutional  Court.  With  the  current  four 
members, the Court has the minimum quorum to adjudicate on the admissibility of cases. The 
selection process for three vacant posts is ongoing. The process has been affected slightly by 
the COVID-19 crisis, but is expected to be finalised as a priority. Completion of appointments 
at the Constitutional Court will proceed once the High Court reaches the required quorum of 
three fifths of members in office, as the latter is the third appointing authority alongside the 
Assembly and the President of the Republic. The new General Prosecutor has been appointed, 
for the first time based on the procedures established in the latest justice reform.  

The  establishment  of  the  Special  Anti-Corruption  and  Organised  Crime  Structure 
(SPAK)  was  finalised  in  2019  with  the  appointment  of  the  Chief  Special  Prosecutor  in 
December.  With  thirteen  out  of  fifteen  Special  Prosecutors  appointed,  the  Special 
Prosecution Office (SPO) is fully operational. On 30 July 2020 the Director of the National 
Bureau  of  Investigation  (NBI)  was  also  appointed  by  the  High  Prosecutorial  Council  and 
started performing his functions. The above developments fulfil the condition for the first IGC.  

The  temporary  re-evaluation  of  all  judges  and  prosecutors  (vetting  process)  has  advanced 
steadily, continuing to produce tangible results, hence meeting the condition for the first IGC. 
Under  the  aegis  of  the  European  Commission,  the  International  Monitoring  Operation  has 
continued  to  oversee  the  process.  More  than  286  dossiers  have  been  processed  thus  far, 
resulting  in  62%  dismissals,  mostly  for  issues  related  to  unjustified  assets  or  resignations. 
During the COVID-19 lockdown period, the vetting institutions have continued to perform a 
number of important investigative activities in remote modality. The vetting institutions have 
resumed public hearings in June 2020.  

Albania  has  some  level  of  preparation  in  the  fight  against  corruption.  Good  progress  was 
made in the reporting period. Albanian authorities strengthened operational, coordination and 
monitoring capacities in  the fight  against corruption, thus meeting the condition for the first 
IGC.  Albania  has  continued  its  efforts  towards  the  establishment  of  a  solid  track  record  on 

5 

 
investigating, prosecuting and trying corruption cases. Although the vetting of the members of 
the  judiciary  is  an  administrative  process,  it  is  relevant  to  assess  the  concrete  results  by 
Albania  to  fight  corruption.  These  have  included  the  dismissal  from  office  of  a  number  of 
high-ranking  magistrates,  including  at  Constitutional  Court  and  High  Court  level.  In  2019, 
there  were  two  final  convictions  for  passive  corruption  of  judges,  prosecutors  and  other 
officials of the judiciary. In 2019, there were 262 first-instance convictions involving lower or 
middle-ranking officials in addition to 294 first-instance convictions in 2018.  In 2019, there 
were  246  final  convictions  at  appeal  level  involving  lower  or  middle-ranking  officials  in 
addition  to  289  final  convictions  in  2018.  Further  efforts  towards  establishing  a  solid  track 
record  in  the  fight  against  corruption  have  been  made,  although  it  remains  a  long-term 
objective that continues to require further structured and consistent efforts. While the number 
of ongoing investigations remains high, to date, final convictions in cases involving high-level 
officials remain limited. The newly established specialised anti-corruption bodies (SPAK and 
the Anti-Corruption and Organised Crime Courts) are expected to significantly strengthen the 
overall capacity to investigate and prosecute corruption. However, overall, corruption remains 
widespread and is a serious concern.  

Albania  has  some  level  of  preparation  in  the  fight  against  organised  crime.  Albania  has 
made  good  progress  in  strengthening  the  fight  against  organised  crime,  including  through 
cooperation  with  EU  Member  States  and  through  the  action  plan  to  address  the  Financial 
Action Task Force (FATF) recommendations, hence meeting the condition for the first IGC.  
Police  operations  to  dismantle  criminal  organisations  have  further  intensified  and  good 
progress has been made. As in the past years, Albania showed also in 2019 a strong, constant 
commitment  to  counter  the  production  and  trafficking  of  cannabis.  Albania  allows  a  very 
intrusive monitoring mechanism by a third country (aerial surveys by the Italian  Guardia di 
Finanza,  co-financed  by  the  EU)  to  be  in  place.  International  police  cooperation,  especially 
with  EU  Member  States,  has  also  intensified,  leading  to  a  number  of  successful  large-scale 
law  enforcement  operations  in  the  course  of  2019,  also  continuing  in  2020.  Cooperation 
between  police  and  prosecutors  further  intensified.  The  SPO  was  established  and  provided 
with  a  set  of  important  investigative  tools.  These  steps  represent  some  tangible  progress  in 
meeting last years’ recommendations on improving the track record. Efforts need to continue, 
to ensure increased prosecutions and final convictions, as well tackling money laundering and 
confiscating assets stemming from crimes and other unjustified wealth.  On the fight against 
money  laundering,  the  Albanian  Parliament  adopted  a  ‘Moneyval  package’  in  July  2019 
aimed  at  addressing  the  recommendations  issued  by  Moneyval  in  their  report  on  Albania 
published in December 2018. On 21 February 2020, the Financial Action Task Force (FATF) 
however  listed  Albania  for  enhanced  monitoring  and  proposed  an  action  plan  focussing  on 
some outstanding recommendations. Albania has made a high-level political commitment to 
work with the FATF to address that action plan and has started implementing its measures. In 
that respect, a new law on the register of beneficial owners was adopted in Parliament in July 
2020. Good progress has been made in the fight against terrorism and preventing/countering 
violent  extremism  through  the  implementation  of  the  objectives  set  out  in  the  Joint  Action 
Plan  on  counter-terrorism  for  the  Western  Balkans  and  the  bilateral  implementing 
arrangement.  Implementation  efforts  should  be  sustained  notably  as  regards  anti  money-
laundering. 

On  fundamental  rights,  Albania  complies  with  international  human  rights  instruments  and 
has  developed  its  legal  framework  in  line  with  European  standards.  During  the  reporting 
period,  Albania  made  efforts  to  meet  obligations  that  arise  in  this  context.  The  overall 
implementation  remains,  however,  to  be  strengthened.  Regarding  the  implementation  of  the 
Law  on  Social  Housing,  nine  sub-legal  acts  were  approved  following  a  wide  consultation 
process.  The  legal  framework  in  the  areas  of  children  rights  and  juvenile  justice  was  also 
improved  by  sub-legal  acts.  Efforts  are  ongoing  to  implement  a  comprehensive  land  sector 

6 

 
reform  and  to  consolidate  property  rights.  The  Law  on  the  Finalisation  of  Transitional 
Ownership Processes was adopted in March 2020, taking into account the recommendations 
of the Venice Commission Opinion of October 2019. Efforts need to continue to advance the 
process  for  registration  and  compensation.  Albania  needs  to  swiftly  adopt  the  remaining 
implementing  legislation  related  to  the  2017  framework  Law  on  the  Protection  of  National 
Minorities. Albania is also in the process of preparing the  law on the implementation of the 
forthcoming census. Swift progress is needed on this, and on the advancement of the process 
of  registration  of  properties.  Concerns  have  been  raised  by  citizens  belonging  to  the  Greek 
minority in relation to property rights in the southern coastal region. As regards the freedom 
of  expression,  the  country  has  some  level  of  preparation  /  is  moderately  prepared.  In 
December 2019, the Parliament approved a set of amendements to the media law, aiming to 
regulate  online  media  and  some  aspects  of  defamation  on  which,  in  June  2020,  the  Venice 
Commission  issued  an  opinion.  The  amendments  fall  short  of  international  standards  and 
principles  of  media  freedom  and  raise  concerns  about  increased  censorship  and  self-
censorship,  and  about  possible  setbacks  on  freedom  of  expression  in  the  country. 
Representatives from the ruling majority publicly committed to follow up on the guidance of 
the Venice Commission opinion. The draft media law is currently being revised in light of the 
opinion of the Venice Commission.  

With regard to migration, some progress was made in improving the institutional capacity on 
border management and asylum. Reception capacity to deal with mixed migration flows was 
further enhanced and  remained sufficient to  accommodate the increased number of  arrivals. 
Albania  is  the  first  of  the  Western  Balkan  countries  where  the  European  Border  and  Coast 
Guard Status  Agreement  with  the EU has  entered into force (May 2019). The  Frontex joint 
operation,  deploying  teams  together  with  Albanian  border  guards  at  the  Greek-Albanian 
border, has proved successful in strengthening border controls, enhancing security at the EU’s 
external borders and combating migrant smuggling. 

The  number  of  unfounded  asylum  applications  lodged  by  Albanian  nationals  in  the  EU  has 
decreased  but  remains  high  and  requires  continuous  and  sustained  efforts,  including 
addressing the phenomenon of unaccompanied minors. Albania has maintained its efforts to 
tackle unfounded asylum applications lodged by Albanian citizens to EU Member States and 
Schengen-associated countries.  

In 2019 there were around 2.7% fewer of these unfounded asylum applications than in 2018 
and almost 20% fewer than in 2017. The decrease continued in the first two months of 2020 
(pre COVID-19), with 35% fewer than in the same period in 2019. In the period January-May 
2020, there were 3 305 applications lodged against 10 375 in the same period in 2019, which 
represents a decrease of around 74% in applications. The ‘recognition rate’ (i.e. the number of 
successful  applications  expressed  as  a  percentage  of  all  decisions)  was  around  6%,  1.6  pps 
less than in 2018. 

This issue has required and will continue to require substantial efforts by Albanian authorities. 
In  addition  to  information  campaigns  on  the  rights  and  obligations  of  the  visa-free  regime, 
thorough border checks, refusal of departure for citizens with insufficient means and actions 
on  addressing  the  underlying  reasons,  Albanian  authorities  have  strengthened  dialogue  and 
cooperation  with  the  most  affected  countries.  In  this  regard,  three  Albanian  police  liaison 
officers have been deployed to the EU to expedite repatriation to Albania, and a liaison officer 
from the EU is located in Tirana to assist on exit checks.  

As  regards  the  economic  criteria,  Albania  has  made  some  progress  and  is  moderately 
prepared in developing a functioning market economy. While GDP growth slowed down due 
to  lower  hydroelectric  power  production,  other  sectors  performed  well  and  unemployment 
continued to decrease to record lows. Exports grew solidly, and the public-debt-to-GDP ratio 
continued to decline but remained high during the reporting period. Banks continued reducing 

7 

 
the number of non-performing loans  and landing to  private sector picked up. Steps towards 
developing the financial market have been taken, but financial intermediation remained low. 
The implementation of comprehensive justice reform advanced well, but has not yet improved 
the  legal  certainty  for  business.  The  COVID-19  pandemic  has  exacerbated  the  structural 
weaknesses and its economic fall-out erases some of the progress. 

Albania  has  made  some  progress  and  has  some  level  of  preparation  in  terms  of  capacity  to 
cope with competitive pressure and market forces within the Union. Infrastructure on energy, 
transport  and  digital  communication,  as  well  as  educational  outcomes  have  improved,  but 
significant gaps remain compared to regional and European levels. Albania’s competitiveness 
is  hindered by lack of  entrepreneurial  and technological know-how, a significant  skills  gap, 
weak  institutions  and  low  levels  of  investment  and  infrastructure  quality.  Integration  into 
international value chains, and exports remained below potential. Furthermore, consolidation 
of  property  rights  and  a  fully  functioning  cadastre  are  critical  prerequisites  for  increasing 
investments  and  access  to  finance,  as  well  as  to  achieve  competitiveness  of  the  agricultural 
and tourism sectors.  

With  regard  to  good  neighbourly  relations  and  regional  cooperation,  Albania  has 
continued  to  participate  actively  in  regional  cooperation  and  maintain  good  neighbourly 
relations. 

Albania continued to align its legislation to EU requirements in a number of areas, enhancing 
its ability to assume the obligations of membership. The country is moderately prepared in 
many areas, such as financial control, education and culture and statistics, or has some level 
of  preparation,  including  in  the  areas  of  public  procurement,  social  policy  and  employment 
and trans-European networks. Albania will need to continue its efforts as regards the overall 
preparations for adopting and implementing the EU acquis. Adopting a comprehensive Public 
Internal  Financial  Control  policy  and  coordinating  its  implementation  with  ongoing  public 
administration  and  public  finance  management  reform  remains  key  towards  a  functioning 
system of internal control in public sector. Albania should continue work on the development 
of the transport and energy networks, and related connectivity reform measures,  also with  a 
view to improving connectivity throughout the region. Albania has to finalise the adoption of 
the  secondary  legislation  for  the  implementation  of  the  employment  reform  and  strengthen 
inter-institutional coordination on measures affecting the most vulnerable groups. 

The  administrative  capacity  and  professional  standards  of  bodies  charged  with  the 
implementation of the EU acquis need to be strengthened and the independence of regulatory 
bodies  safeguarded.  Enhancing  transparency  and  accountability,  in  particular  ensuring  the 
effective,  efficient  and transparent functioning of the public procurement  system  and public 
finance  management,  remains  essential.  Albania  has  continued  to  fully  align  with  all EU 
Common Foreign and Security Policy positions and declarations. 

2. 

Fundamentals first: political criteria and rule of law chapters 

Functioning of democratic institutions and public administration reform 

2.1. 
2.1.1   Democracy 

The  political  environment  continued  to  be  marked  by  intense  polarisation.  The  opposition 
decided to boycott the 30 June 2019 local elections. These were held, while the President had 
issued a decision to postpone the vote to  October. The Parliament initiated an impeachment 
procedure  on  the  President,  which  was  concluded  in  July  2020.  The  country's  political 
stalemate  saw  an  opening  in  January  2020,  when  the  ruling  majority  and  the  parliamentary 
and extra-parliamentary opposition reached an agreement to take forward the electoral reform, 
by establishing a platform to complete technical and political talks. An agreement was finally 

8 

 
  
reached on 5 June 2020. Amendments to the electoral code were adopted by Parliament on 23 
July  2020,  in  accordance  with  the  5  June  2020  agreement  and  implementing  the 
OSCE/ODIHR  recommendations.  In  addition,  the  Parliament  adopted  on  30  July  some 
amendments to the Constitution relating to the electoral system.  These amendments that are 
unrelated  to  the  implementation  of  the  OSCE/ODHIR  recommendations  required  further 
amendments  to  the  electoral  code  which  were  discussed  among  parties  in  the  Political 
Council,  but  without  reaching  a  compromise  before  the  Parliament  voted  on  them  on  5 
October. Despite the positive outcome of the agreement reached on 5 June 2020, the political 
dialogue  in  the  country  needs  to  be  improved,  in  particular  on  electoral  reform  and  its 
implementation.  

Elections 

On 30 June 2019, Albania held local elections in a strongly polarised political environment. 
Following its en bloc relinquishing of parliamentary mandates in February 2019 and months 
of street protests, the opposition decided to boycott the elections. On 8 June, on the grounds of 
security  threats,  the  President  decreed  the  cancellation  of  his  previous  decree  setting  the 
election date and announced 13 October as the new date. The President's decree was ignored 
by  the  ruling  majority  and  the  election  administration  bodies.  As  the  extra-parliamentary 
opposition  sought  to  delegitimise  the  elections,  the  international  community  warned  that 
violence during the electoral process would be considered unacceptable. Mayoral candidates 
from the ruling Socialist Party (SP) ran unopposed in 31 of the 61 municipalities, of which the 
SP  won  60  (the  remaining  one  was  won  by  an  SP-backed  smaller  party).  Following  the 
election,  the  Parliament  initiated  an  impeachment  procedure  against  the  President  on  the 
grounds of the unconstitutionality of his decision to cancel the date of the elections. The  ad 
hoc inquiry committee of the Parliament concluded that while the President had overstepped 
his  constitutional  competencies,  the  violation  did  not  provide  enough  grounds  for  the 
President's impeachment. The Parliament endorsed the ad hoc inquiry committee's finding on 
27 July 2020. 

The relevant ad hoc parliamentary committee is still ongoing. 

In  the  final  report  from  its  election  observation  mission,  the  OSCE/ODIHR  noted  that, 
although the June elections had been organised without major problems, they had been held 
with  little  regard  for  voters’  interests,  as  voters  did  not  have  a  full  choice  of  political 
alternatives. It further recommended: 

  an inclusive dialogue among political parties to carry out electoral reform;  

  measures to eliminate the misuse of state resources;  

  the  de-politicisation  of  the  civil  service,  including  the  establishment  of  independent 

election commissioners;  

  ensuring  the  independence  and  impartiality  of  the  Central  Election  Commission  and 

the judiciary;  

  swift and transparent investigation of alleged electoral violations. 

On 14 January 2020, the ruling majority and representatives of the parliamentary and extra-
parliamentary opposition reached a breakthrough agreement to take forward the longstanding 
electoral reform. The agreement set up a Political Council, a cross-party platform composed 
of the two co-chairs of the Ad Hoc Committee representing the parliamentary ruling majority 
and the opposition, and two representatives of the extra-parliamentary opposition, to steer the 
reform  on  a  consensual  basis  with  the  implementation  of  outstanding  OSCE/ODIHR 
recommendations, ensuring transparent financing of political parties and electoral campaigns. 
The target date to reach a consensus within this framework was set to 30 June 2020. 

9 

 
to 

recommendations.  The  parties  also  agreed 

After  lengthy  negotiations,  on  5  June  2020,  the  Political  Council  reached  a  breakthrough 
agreement  to  gradually  introduce  a  depoliticised  electoral  administration,  in  line  with 
OSCE/ODIHR 
introduce  electronic 
identification of all the  voters (where technically  viable), to  restructure  the Central  Election 
Commission, and for the Electoral College to be comprised of vetted judges. The amendments 
to  the  electoral  code  were  adopted  by  the  Parliament,  in  accordance  with  the  5  June  2020 
agreement,  on  23  July  2020.  In  addition,  on  30  July,  the  Parliament  adopted  some 
amendments to the Constitution, pertinent to the electoral system. The amendments introduce 
the  possibility  to  amend  the  electoral  code  concerning  open  candidates  lists,  a  national 
threshold and a ban on pre-electoral coalitions. The constitutional amendments adopted with 
cross-party  support  in  Parliament  were  met  with  criticism  by  the  extra-parliamentary 
opposition. These amendments that are unrelated to the implementation of the OSCE/ODHIR 
recommendations  required  further  amendments  to  the  electoral  code  which  were  discussed 
among  parties  in  the  Political  Council,  but  without  reaching  a  compromise  before  the 
Parliament  voted  on  them  on  5  October.  Despite  the  positive  outcome  of  the  agreement 
reached  on  5  June  2020,  the  political  dialogue  in  the  country  needs  to  be  improved,  in 
particular on electoral reform and its implementation.  

Parliament 

Parliamentary  activities  were  affected  by  the  opposition  relinquishing  their  mandates. 
However,  institutional  continuity  was  ensured  through  gradual  replacement  of  vacant 
parliamentary  seats,  resulting  in  a  new  parliamentary  opposition  working  with  the  ruling 
majority on a number of files. Although the situation had an impact on the Parliament's oversight 
functions, the Parliament managed to adopt new Rules of Procedure and increase its transparency. 
Involvement of the Assembly in the EU integration process remains to be strengthened. The 
control  of  political  party  financing  needs  to  be  improved.  Following  the  opposition’s  en bloc 
relinquishing of mandates in February 2019, the reporting period was marked by the gradual filling 
of  the  vacant  parliamentary  seats.  The  Central  Election  Commission  issued  mandates  to  40  new 
Members of Parliament (MPs) from candidates  remaining on the opposition parties’  proportional 
lists, bringing the total number of the MPs to 122 out of 140. Three new parliamentary opposition 
groups emerged from this process. The functioning of Parliament has therefore been ensured.  

The  Parliament’s  adoption  of  new  rules  of  procedure  in  July  2019  was  a  positive  development 
enhancing  its  functionality,  transparency  and  accountability.  Amendments  to  the  Rules  of 
Procedures  have  been  adopted  in  April  2020,  in  order  to  enable  the  Parliament  to  operate 
remotely and to continue its activities in the course of the COVID-19 crisis. Parliament also 
made efforts to comply with the code of ethics, in particular by making entries in the conflicts 
of interest register. 

In  July  2019,  and  ad  hoc  inquiry  on  the  legality  of  the  President’s  actions  was  established. 
The  committee  also  examined  the  procedures  followed  by  the  President  to  appoint  one 
Member of the Constitutional Court, taking into account the Venice Commission's opinion on 
the issue of appointments to the Constitutional Court. The Venice Commission also issued an 
opinion  in  October  2019  on  the  scope  of  the  power  of  the  President  to  set  the  dates  of 
elections.  

The  Parliament  adopted  more  acts  than  in  the  previous  reporting  period.  Of  the  91  laws 
approved, more than half were adopted by consensus between the ruling majority and the new 
parliamentary  opposition.  The  reporting  period  was  marked  by  the  highest  ever  number  of 
normative  acts  adopted,  the  majority  of  which  related  to  the  emergency  situation  following 
the  earthquake  and  more  recently  due  to  the  COVID-19  outbreak.  Urgent  legislative 
procedures  were  used  in  most  cases,  as  a  result  of  the  pandemic  situation.  The  Parliament 
reviewed  22  Presidential  decrees,  of  which  it  rejected  5.  In  March  2020,  the  President 
questioned the constitutionality of amendments to the Law of Constitutional Court, related to 

10 

 
appointments  and  swearing  in  procedure,  and  returned  such  legislative  measure  to  the 
Parliament.   

As regards its role in EU integration, in October Parliament adopted a Resolution supporting 
the  launch  of  accession  negotiations  and  expressing  its  commitment  to  implementing  the 
European  Commission’s  recommendations  and  European  Council  conclusions.  Parliament 
needs to improve its capacity to monitor the compliance of new legislation with the EU acquis 
and  ensure  its  implementation.  Of  91  laws  that  were  adopted,  15  were  aimed  at  partial 
alignment with the EU acquis. The EU Integration Committee held only three hearings in the 
reporting  period.  The  National  Council  for  European  Integration  still  has  to  consolidate  its 
role and guarantee its broader involvement in EU integration issues. With regard to EU-driven 
reforms, Parliament adopted the final laws making up the justice reform package and enacted 
the Constitutional Court’s decisions on the Law on the governing bodies in the justice system 
and the Law on the status of judges and prosecutors.  

With regard to Parliament’s oversight function, the new MPs made use of the instruments at the 
disposal  of  the  opposition,  tabling  eleven  ‘interpellations’  and  one  motion  for  debate.  MPs 
addressed  96  requests  for  information  to  executive  and  constitutional  institutions.  Parliament 
appointed two new members of the Constitutional Court, the Prosecutor General and the chair of 
the Energy Regulatory Authority. It failed to reach consensus on some vacancies on the steering 
board  of  the  public  broadcaster.  It  removed  a  member  of  the  Bank  of  Albania’s  Supervisory 
Council.  During  the  reporting  period,  the  Parliament  appointed  the  new  chair  of  the  Financial 
Supervisory Authority. The new chair of the State Audit Institution was voted by the Parliament in 
June 2020. 

On transparency and accountability, Parliament made some positive steps in addressing, in 
a  timely  fashion,  requests  based  on  the  right  to  information.  However,  parliamentary 
documentation,  such  as  minutes  of  plenary  sessions  and  committee  meetings,  should  be 
subject to greater transparency. Parliament continued to publish regular online data on MPs’ 
financial  benefits.  Research  staff  and  support  for  MPs  and  parliamentary  groups  need  to  be 
strengthened. 

The  administration’s  performance 
recommendations  from 
Discrimination and other independent institutions. 

the  Ombudsman, 

is  still  poor  when 

implementing 
the  Commissioner  for  Protection  against 

it  comes 

to 

Governance 

The government remained committed to the EU integration process and pursued good efforts 
to move essential reforms forward. The 26 November 2019 earthquake had a strong impact on 
the overall objectives of the executive’s action. The restructuring of ministries and agencies 
performed  in  2017  has  created  some  administrative  gaps  that  persist  to  date.  Coordination 
within the administration needs to be improved, especially regarding their involvement in EU 
integration  processes.  The  territorial  administrative  reform  continues  to  be  implemented 
successfully and should be further consolidated as part of the wider decentralisation agenda. 
This is particularly necessary to guarantee local fiscal autonomy and empower municipalities 
to provide standard quality public services.   

Albania  maintained  its  primary  ambition  opening  accession  talks  by  pursuing  EU-driven 
reforms  in  key  sectors  such  as  justice  and  home  affairs.  However,  extreme  political 
polarisation has affected the administration’s performances. This has been particularly visible 
at  local  level,  where  the  handover  of  municipalities  to  the  ruling  majority,  following  local 
elections without participation by the opposition, created some disruption. In the course of the 
COVID-19  crisis,  all  political  actors  demonstrated  a  certain  degree  of  unity  in  supporting 
government initiatives to counter the emergency.  

11 

 
In  April  2019,  the  government  approved  the  2019-2021  national  plan  for  European 
integration. In July, it adopted a decision establishing the arrangements for cooperation with 
local government in the EU integration process. Public administrations suffer from a general 
lack of capacity and resources, which has an impact on their capacity to plan, implement and 
monitor public policies. The government should allocate more human and financial resources 
to  EU  accession  work  and  put  more  emphasis  on  coherent  and  targeted  domestic 
communication on EU matters. 

In  November  2019,  Albania  was  struck  by  an  earthquake  of  6.3  magnitude,  which  left  51 
casualties,  around  1,000  people  injured  and  over  10,000  without  a  home.  A  Minister  for 
Reconstruction was appointed in December to oversee the reconstruction process.  

As  of  March  2020,  the  government  reacted  swiftly  to  the  COVID-19  pandemic  and  took 
stringent measures thus managing the crisis with limited human and financial loss. It issued a 
series  of  decrees  subsequently  endorsed  by  the  Parliament.  The  State  of  Emergency  for 
Natural Disaster was extended until June 2020. The authorities notified a derogation from the 
obligations  under  certain  articles  of  the  Convention  for  the  Protection  of  Human  and 
Fundamental Freedoms.  

On 9 June 2020, the Government presented to an extended meeting of the National Council 
for  European  Integration  an-action  plan  to  address  the  conditions  and  priorities  set  by  the 
March  2020  Council  Conclusions  on  Albania.  On  6  May  2020,  the  Government  nominated 
the  Chief  Negotiator  and  the  negotiating  team.  Following  the  June  2019  mayoral  elections, 
two mayors were dismissed based on the decriminalisation law.  

The inability of the Constitutional Court to issue rulings due to lack of quorum had an impact 
on  legal  certainty  during  the  reporting  period  and  exacerbated  a  number  of  constitutional 
disagreements  between  the  government  and  the  President  of  the  Republic.  Albania  made 
progress in reconstituting the Constitutional Court.  (see section 2.2.1 Chapter 23: Judiciary 
and fundamental rights). The territorial administrative reform needs to be further consolidated 
as  part  of  the  wider  decentralisation  agenda.  The  Ministry  of  Interior  revised  the  national 
cross-cutting  decentralisation  and  local  governance  action  plan,  extended  to  2022. Full 
political  support is needed to  bring the decentralisation reform  forward. The new legislation 
affecting  local  government  is  not  fully  harmonised  and  implemented.  While  municipalities 
have  been  given  greater  policymaking  powers,  local  government  units  (LGUs)  still  lack 
sufficient financial resources and administrative capacity to exercise them effectively. LGUs’ 
fiscal autonomy is also at risk, as most of their budget is dependent on national transfers. As a 
result,  although  the  municipalities  are  getting  better  at  collecting  own  revenues,  the  overall 
ability of local institutions to deliver quality public services remains limited. Implementation 
of the Civil Service Law (CSL) remains incomplete at local level.  

Municipalities have made further progress on public participation in local decision-making, 
especially  in  the  area  of  participatory  budgeting.  However,  the  institutional  framework  for 
effective and inclusive participation needs further strengthening. Local-level implementation 
of  the  Law  on  public  consultation  remains  unsatisfactory.  An  increasing  number  of 
municipalities  disclose  public  information,  with  all  61  having  appointed  a  local  coordinator 
for the right to information.   

The  Agency  for  the  Delivery  of  Integrated  Services  (ADISA)  expanded  its  presence,  with 
more  one-stop  shops  on  the  ground.  A  parallel  roll-out  of  ‘front  desks’  delivering 
administrative  services  at  local  level  now  covers  50  of  the  61  municipalities.  National 
minimum standards for services have still to be established.   

On  territorial  planning,  general  local  plans  for  the  remaining  16  municipalities  are  being 
drafted.  Coordination  of  the  national  sectoral  strategies  with  local  plans  is  weak.  On 
transparency, all municipalities publish regularly decisions of their municipal councils online. 

12 

 
Five  municipalities  have  piloted  and  adopted  integrity  plans  with  measures  to  combat 
corruption at local level.  

The  Consultative  Council  operated  as  the  main  forum  for  institutional  dialogue  and 
coordination  between  central  and  local  governments.  While  policy  and  legal  discussions 
would  benefit  from  an  earlier  involvement  of  the  local  level,  LGUs  and  their  associations 
rarely manage to come to the table with consolidated positions.         

A  'matrix  of  competences',  dividing  responsibilities  between  levels  of  governance  and 
recommending measures when gaps or overlaps are identified, was presented in April 2019. 
In  July  2019,  these  recommendations  became  the  subject  of  a  Prime  Minister's  order 
requesting  line  Ministries  to  take  the  related  actions;  implementation  is  on-going.  The 
network  of  EU  local  coordinators  has  strengthened  the  LGUs’  involvement  in  the  EU 
accession process, raising awareness of EU policies, the EU  acquis, funds and programmes. 
The  implementation  of  the  Decision  of  the  Council  of  Ministers  from  July  2018 
institutionalising and upgrading the so-called municipal "EU desks" into "EU Units" needs to 
be  completed.  A  second  report  on  the  performance  of  municipalities  on  EU  matters  was 
launched  in  January  2020,  with  the  Ministry  of  Interior  committing  to  make  this  exercise  a 
regular annual process under its own lead.    

Civil society 

No  progress  has  been  made  on  the  implementation  of  the  roadmap  on  an  enabling 
environment for civil society. The Law on the National Council for Civil Society needs to be 
amended to reflect changes in ministerial portfolios and provide for appropriate representation 
in  the  Council.  Substantial  efforts  are  needed  to  ensure  meaningful  and  systematic 
consultations  with  civil  society  as  part  of  an  inclusive  policy  dialogue  for  reforms.  These 
efforts  should  involve  comprehensive  feedback  and  follow  up  mechanisms.  The  financial 
sustainability of civil society organisations remains a challenge due to unfavourable fiscal and 
legal frameworks.  

An empowered civil society is a crucial component of any democratic system and should be 
recognised and treated as such by state institutions. 

During  the  post-earthquake  emergency  in  November  2019  and  again  in  the  course  of  the 
outbreak  of  the  COVID-19  pandemic,  Albanian  civil  society  provided  rapid  first  response, 
reaching  out  to  most  vulnerable  and  remote  citizens,  supporting  and  complementing  state 
interventions. 

Albania’s legal and regulatory framework on the right of freedom of association is generally 
in  line  with  international  standards.  However,  the  registration  process  continues  to  be 
problematic, due to the high costs of registration, lengthy procedures and lack of specialised 
judges. The legal framework on freedom of peaceful assembly needs improvement to clarify 
when only ‘notification’ is required, as opposed to ‘permission’. The law should also address 
the  right  to  spontaneous  assembly  and  counter-assembly,  and  make  notification  procedures 
easier to  complete and  more accessible. A revised roadmap on an enabling environment  for 
civil society was approved in July 2019, but its implementation depends to a large extent on 
donor funding. 

The 2014 Law on public consultation, laying down the procedural norms for transparency and 
public  participation  in  decision-making,  is  generally  in  line  with  European  standards. 
However, its scope should be extended to government decisions. It requires reporting on how 
inputs from civil society organisations (CSOs) are taken into consideration, but there is little 
evidence of the use and effectiveness of the feedback mechanisms. No progress was made on 
public consultation in the adoption of sub-legal acts and the implementation of the Laws on 
volunteerism and social enterprises. 

13 

 
The  National  Council  for  Civil  Society  met  only  once  in  2019  and  the  meeting  was 
inconclusive,  with  no  operational  follow-up.  The  Law  on  the  National  Council  has  still  not 
been  amended  to  reflect  changes  in  ministerial  portfolios  and  representation  in  the  Council, 
and  to  improve  its  functioning.  The  Council  should  engage  more  with  other  civil  society 
actors representing CSOs’ opinions in the policymaking processes. 

The  Agency  for  the  Support  of  Civil  Society  remains  the  main  public  body  providing 
financial  support  for  civil  society.  However,  public  funding  remains  insufficient  to  sustain 
CSOs’  activity,  in  particular  in  social  services.  Some  changes  were  made  to  the  tax 
arrangements  applying  to  CSOs,  e.g. a  new  instruction  aims  to  improve  the  VAT 
reimbursement situation for CSO beneficiaries of the Instrument for Pre-Accession and other 
donor  grants.  Overall,  the  lack  of  favourable  tax  arrangements  represents  a  significant 
financial  burden  for  CSOs  and  the  current  legal  environment  does  not  support  alternative 
funding  sources.  Tax  incentives  for  corporate  donations  do  not  promote  donations  to  CSOs 
and there are no tax incentives for individual donations. 

2.1.2.  Public administration reform 

Albania is moderately prepared with the reform of its public administration. Some progress 
was  made  in  enforcing  the  guidelines  on  RIAs  across  line  ministries,  in  developing  the 
legislative  package  related  to  policy  planning,  in  increasing  the  number  of  e-services  and 
improving transparency in data collection and human resources management between central 
and  local  level.  Implementation  of  the  public  administration  reform  and  public  financial 
management reform strategies has continued by extending the action plans until 2022. Some 
progress was made on the Commission’s 2019 recommendations, which remain largely valid.  

In the coming year, Albania should in particular: 

  continue  building  capacity  in  line  ministries  to  effectively  implement  regulatory  and 

budgetary impact assessments for not only legislative but all policy proposals;  

  upgrade further the regulatory framework on policy planning and monitoring, and roll out 

the integrated policy-making system; 

  advance  preparations  to  adopt  a  salary  policy  for  civil  servants  and  connect  the  human-
resource-management  information  system  with  the  treasury  to  provide  an  automated 
payroll. 

Policy development and coordination 

The  legal  basis  and  the  institutional  set-up  are  partially  in  place  to  ensure  a  consistent 
policy-making  system.  Some  progress  was  made  in  preparing  the  rollout  of  the  Integrated 
Planning  Information  System  by  setting  the  IT  foundations.  The  system  should  help  to 
automate  strategic  policy  planning  and  budgeting,  once  data  collection  and  processing  is 
ensured.  In  relation  to  this  process,  a  Council  of  Ministers  decision  was  adopted  to  guide 
ministries in data collection. Training modules were launched to support the administration in 
the usage of this IT system. The General Secretariat of the Prime Minister’s Office has issued 
further  guidance  to  improve  the  quality  of  the  Annual  Legislative  Plan  and  further 
harmonisation with the National Plan for European Integration (NPEI). To improve coherence 
of the strategic planning and monitoring system, the authorities should upgrade the existing 
regulatory  framework  on  medium-term  policy  planning,  improve  coherence  between  policy 
planning and the related budgeting, establish a dedicated central quality control function, and 
improve  the  effective  internal  control  of  the  policy  implementation  phase.  The  government 
needs  to  step  up  efforts  to  upgrade  administrative  capacity  in  both  line  ministries  and  the 
Prime Minister’s Office on data collection, as well as on defining better policy planning and 
monitoring functions. The Prime Minister’s Office needs to improve coordination with other 
centres of government institutions in policy processes, and promote managerial accountability 

14 

 
effectively (see Chapter 32). In June 2020, a Prime minister’s order was adopted to establish a 
technical level working Group to prepare a revised rulebook. The rulebook aims to improve 
the  overall  responsibilities  of  the  Prime  Minister’s  Office  to  increase  its  steering  role  and 
quality control of policy making processes.  

The  framework  and  guidelines  for  the  NPEI  are  in  place.  Some  progress  was  made  in 
developing  a new planning methodology for the  NPEI 2020-2022.  An inter-institutional  co-
ordination  structure  for  more  effective  implementation  of  the  NPEI  was  established  since 
2018 at both political and technical level. Overall, NPEI implementation rate has improved up 
to  60%.  A  stronger  coordination  between  the  Prime  Minister’s  Office  and  MEFA  would 
further support line ministries in the process of planning and implementation of the NPEI. The 
government needs to step up efforts in rendering the NPEI a more credible planning document 
for EU Integration and assign the right responsibilities at the Prime Minister’s Office level to 
guide the process. 

On  inclusive  and  evidence-based  policy  and  legislative  development,  the  administration 
needs to strengthen its capacity, particularly to harmonise the legislation with the EU acquis. 
Administrative  data  collection  and  its  systematic  use  for  policy  and  law-making  should  be 
improved  across  the  administration.  The  adoption  of  the  guidelines  on  regulatory  impact 
assessment (RIA) has helped line ministries to make more systematic impact assessments for 
legislative  measures.  Some progress  has  been made in  establishing quality criteria  for RIAs 
and  building  capacity  at  the  Prime  Minister’s  Office  level  to  guide  the  process.  The 
government needs to step up efforts in the institutionalisation of RIAs for all policy proposals 
and the consolidation of administrative capacities in line ministries.  

Public consultations are required for policy and legislative development. Some progress has 
been  achieved  to  train  line  ministries  to  better  use  public  consultations,  although  a 
methodology  on  public  consultations  has  not  been  adopted.  The  electronic  web-portal  for 
public  consultations  is  operational,  but  its  use  by  the  public  remains  limited.  The  quality 
control function on public consultation remains weak and focuses mostly on the process rather 
than on content. 

Public scrutiny of government work remains limited. The role of parliamentary oversight on 
government performance needs to be increased. Most government reports on various policies 
continue to present implemented activities rather than explain the actual results of government 
policies.  Coordination  structures  for  monitoring  policy  implementation  need  to  become 
operational through IPMGs. Communication to the citizen of the ongoing reforms needs to be 
enhanced.  

Public financial management 

The  Ministry  of  Finance  and  Economy,  which  leads  the  public  financial  management 
reform, underwent further restructuring in 2019. There are still several posts unfilled in the 
Ministry at present. The mid-term review of the PFM strategy was completed in March 2019. 
Following consultations from July to September 2019, the revised and extended PFM strategy 
for  2019-2022  was  approved  in  December  2019.  The  strategy  includes  a  new  specific 
objective on domestic revenue mobilisation and dedicated chapters on the governance of the 
reform  process  and  the  rolling-out  of  the  financial  IT  system  as  it  relates  to  the  objectives. 
Increased  attention  is  put  on  the  repayment  and  prevention  of  arrears,  the  reduction  of  the 
public  debt,  to  extending  fiscal  risks  management  to  include  SOEs,  arrears  and  those  risks 
embedded in Private Public Partnerships and concessions contracts.  

rogress was achieved with the preparation of the 2019 and 2020 budgets and the execution of 
the 2018 and 2019 budget in line with the revised Organic Budget Law. A budget revision in 
March  2020  reflected  COVID-19  expenditure  measures.  However,  revenue  and  growth 
figures  still  need  to  be  revised.  The  law  on  concessions  and    public-private-partnerships 

15 

 
(PPPs)  was  amended,  including  to  reduce  scope  for  unsolicited  offers  and  to  strengthen  the 
role of the Ministry of Finance and Economy in the assessment and approval of PPP contracts 
and  addenda.  Data  collection  for  and  preparation  of  a  medium  term  revenue  strategy  are 
ongoing, in view of changed assumptions due to COVID-19. (See also Chapters 5, 16, 29 and 
32).  

Budget transparency remains satisfactory with the publication of all key budget documents. 
The  annual  budget,  the  citizens’  budget,  and  the  list  of  public  investments  (including  PPPs 
under the medium-term budget programme) have been published. However, the timeliness of 
budget  execution  reports,  in  particular  reporting  on  arrears,  need  to  be  improved.  Also, 
information on state assets contained in this report does not allow for a full comparison with 
the  original  budget.  Public  participation  in  the  budget  process  needs  to  be  further 
strengthened. 

Public service and human resources management 

Due  to  a  fragmented  legislative  framework,  there  are  not  yet  uniform  standards  on  merit-
based  recruitment,  promotion  and  dismissal  across  the  whole  public  administration.  The 
Civil  Service  Law  (CSL)  provides  a  solid  basis  for  merit-based  recruitment  and  promotion. 
Mostly all of the planned vacancies in 2019, amounting to 95%, were filled, compared to 92% 
in  2018.  Overall  transparency  and  fairness  of  recruitment  at  the  central  level  has  improved 
thanks  to    introduction  of  a  full  digitalised  recruitment  and  selection  process  for  the  civil 
service,  further  harmonisation  of  job  descriptions,  improved  quality  of  examinations  and 
organisation  of  recruitments.  More  needs  to  be  done  in  these  areas.  Better  compliance  with 
the legal provisions regulating merit-based recruitment for senior ranks needs to be ensured. 
An  ad-hoc  selection  procedure  was  used  for  the  integration  of  highly  qualified  young 
graduates in the public administration. The initial Council of Minsters Decision was brought 
into  line  with  the  principle  of  merit-based  recruitment  enshrined  in  the  CSL.  Proper 
implementation of the CSL requires more efforts at the local level. There were 896 dismissals 
of civil servants in 2019, a substantial increase compared to the 568 dismissals in 2018. This 
was  mainly  due  to  restructuring  of  some  institutions  and  resulting  redefinition  of  their 
personnel as not part of the civil service. The backlog of court decisions confirming unlawful 
dismissal of civil servants was reduced. 

The human resources management information system (HRMIS) is not fully functional and 
remains to be extended to the local level. It now has more data on public-service organisations 
and  employees,  but  does  not  cover  the  whole  civil  service  yet.  The  Commissioner  for 
Oversight  of  the  Civil  Service  needs  more  staff  and  financial  resources  to  better  fulfil  its 
oversight  responsibilities.  The  government  is  stepping  up  efforts  to  establish  a  coordination 
mechanism  on  human  resource  management  between  central  and  local  level,  in  particular 
through the administrata.al porta, whichincreases transparency in data collection. 

The  remuneration  system  is  based  on  a  job  classification  system,  that  requires  further 
reform. The fairness and coherence of the system are impaired by the ongoing lack of a salary 
policy that would establish clear criteria for pay supplements and salary increases is still not 
adopted.  The  awarding  of  salary  supplements  is  not  consistent  across  institutions.  Inter-
operability  of  HRMIS  and  payroll  systems  needs  to  be  ensured  for  both  automating  payroll 
and improving the quality of data in the public service. 

The  Albanian  School  of  Public  Administration  training  programmes  contribute  to  the 
professional  development  of  civil  servants.  However,  an  integrated  training  management 
cycle remains to be established. The School’s budget remained at mantained the same level as 
in  2018.The  number  of  training  courses  has  increased.  Although  local-level  civil  servants 
received  more  training,  the  professional  administrative  capacity  at  this  level  needs  to  be 
strengthened.  A  law  is  in  place  to  prevent  corruption  and  to  ensure  the  integrity  of  public 

16 

 
officials  and  civil  servants,  but  institutional  capacity  for  verifying  assets  and  assessing 
conflict-of-interest declarations should be reinforced.  

Accountability of the administration 

The  legal  framework  for  the  organisation  of  the  central  administration  establishes 
accountability lines between institutions. The restructuring of the central government in 2017 
has created the need to better optimise the workflow and decision making processes. Further 
restructuring  of  subordinated  agencies  have  led  to  the  transfer  of  personnel  from  the  civil 
service into employment regulated by the labour code. Such human resource decisions are not 
consistent  with  institutional  development  plans  and  create  different  professional  human 
resource management standards. Administrative bodies subordinated to ministries, parliament 
and  prime  minister  have  been  created  in  the  last  years  without  strategic  planning.  Policy 
making  institutions  do  not  always  monitor  policy  implementation  of  the  subordinated 
agencies. A lack of strategic plans and a monitoring framework with performance indicators, 
hinders  the  functioning  of  internal  control  process.  Managerial  accountability  within 
institutions is still focused on processes rather than the achievement of results, and not much 
decision-making  is  delegated  from  top  to  middle  management.  However,  an  instruction, 
defining  the  process  of  delegation  of  tasks  within  government  units  was  issued    by  the 
Ministry of Finance and Economy (See Chapter 32).  

Citizens’  right  to  good  administration  is  limited.  Public  institutions  do not  systematically 
implement  the  recommendations  of  oversight  bodies.  The  number  of  Ombudsman 
recommendations  that  are  implemented  remains  low.  The  Law  on  the  Right  to  Information 
regulates  citizens’  right  to  access  public  information.  An  increasing  number  of  public 
authorities  have  adopted  transparency  programmes.  The  Commissioner  for  the  Right  to 
Information and the Protection of Personal Data should be given greater powers of oversight. 
There is a central registry for information requests, but its coverage should be expanded. 

A legislative framework is in place for the  right to administrative justice. The capacity of 
the  administrative  court  system  to  deal  with  the  backlog  of  cases  remains  weak.  There  is  a 
backlog at appeal-court level since Albania has only one administrative court of appeal. The 
capacity of appeal boards to process cases remains weak. Legislation is in place for protecting 
the right of citizens to seek compensation, but  court cases  remain rare due to  the public’s 
limited awareness of their rights. A lack of data collection makes it impossible to assess the 
effectiveness of the liability regime. 

Service delivery to citizens and businesses 

Institutions  and  laws  on  public-service  delivery  are  in  place  to  ensure  user-oriented 
administration. The Agency for the Delivery of Integrated Services continued to set up one-
stop-shops across the country. E-services were developed further and the level of automation 
increased. Public information  on public services  has been made more  accessible to  citizens. 
However, there is no overall plan for the extension of services.  

The  Code  of  Administrative  Procedures  provides  the  legislative  framework  for  simplifying 
administrative procedures. However, legal uncertainty for citizens and businesses persists, 
as  there  have  been  delays  in  adopting  the  implementing  legislation  and  amending  sectoral 
legislation.  Greater  coordination  and  training  are  needed  to  upgrade  the  administration’s 
capacities to harmonise and effectively implement the legislation. 

Strategic framework for public administration reform 

Throughout  2019,  the  Government  continued  to  monitor  implementation  of  the  2015-2020 
public  administration  reform  strategy  (PAR)  and  the  2014-2020  public  financial 
management 
the  COVID-19  crisis,  a  modest 
implementation record of the public administration reform strategy has been maintained and 

(PFM)  reform  strategy.  Despite 

17 

 
more needs to be done to achieve results-oriented monitoring. A new action plan on PAR and 
PFM  covering  the  period  2018-22  was  approved.  The  passport  of  indicators  of  the  PAR 
strategy should be accordingly updated.  

Political  responsibility  for  PAR  is  assigned  to  the  Deputy  Prime  Minister  and  technical 
support  continues  to  be  provided  by  the  Department  of  Public  Administration  and  the 
Department on Good Governance. However, the link between technical and political support 
for  PAR  needs  to  be  strengthened.  Financial  sustainability  needs  to  be  improved,  as  the 
overall reform of public administration is still dependent on external donor funding.  

2.2.1.  Chapter 23: Judiciary and fundamental rights 
The EU’s founding values include the rule of law and respect for human rights. An n effective  
(independent,  quality and efficient) judicial system and an  effective fight  against  corruption 
are of paramount importance, as is respect for fundamental rights in law and in practice.  

included 

implementation  of 

the  comprehensive 

justice  reform.  This 

Albania  has  some  level  of  preparation/is  moderately  prepared  in  implementing  the  EU 
acquis and European standards in this area.  Good progress was made, in particular through 
the 
continued 
establishment  of  the  Special  Anti-Corruption  and  Organised  Crime  Structure  (SPAK), 
composed  of  a  Special  Prosecution  Office  (SPO)  and  the  National  Bureau  of  Investigations 
(NBI). The Director of the NBI has been appointed and started performing his functions. The 
Anti-Corruption and Organised Crime Courts have also been established. Furthermore, a new 
General Prosecutor and the new High Justice Inspector were appointed. The vetting process 
continued to deliver tangible results. The legislative framework has been further strengthened 
to  fight  corruption  more  effectively.  Operational  efforts  against  corruption  are  bringing 
results. Due judicial follow up must be ensured to increase the number of final convictions in 
high-level  cases.  On  human  rights,  new  legislation  package  on  anti-defamation  raised 
concerns  as  to  its  potential  negative  impact  on  freedom  of  expression.  The  Albanian 
authorities  have  committed  to  follow  upon  the  guidance  of  the  Venice  Commission  on  this 
matter. On property rights, efforts should continue to bring tangible results on registration and 
compensation. As regards the protection of national minorities, Albania needs to swiftly adopt 
the remaining implementing legislation related to the 2017 Framework Law.  

Functioning of the judiciary 

Albania  has  some  level  of  preparation/is  moderately  prepared  on  the  functioning  of  the 
judiciary. Good progress was made, significantly advancing the conditions set by the Council 
Conclusions of 25 of March 2019, despite the impact of the COVID-19 pandemic. The vetting 
process has continued to render concrete and tangible results, under the thorough supervision 
of  the  International  Monitoring  Operation  (IMO).  To  date,  more  than  62%  of  the  vetting 
dossiers  processed  have  resulted  in  dismissals  or  resignations.  An  important  milestone  was 
reached on 11 March with the appointment of three new members to the High Court,  which 
has regained its quorum to adjudicate on cases. Albania is making progress to reconstitute the 
Constitutional  Court  and  has  appointed  three  new  members.  This  has  set  the  basis  for  the 
Constitutional  Court  to  regain  functionality  and  increase  public  trust.  Appointments  to  the 
Constitutional Court are ongoing. With four out of nine members in office, the Constitutional 
Court regained the quorum to review the admissibility of cases. The General Prosecutor has 
been appointed by the Parliament. The new specialised bodies in the area of anti-corruption 
and organised crime (SPAK) have been established. The new bodies for the self-governance 
of  the  judiciary  have  been  operating  effectively.  The  2018  recommendation  on  the  need  to 
make more effective use of an improved case management system remains outstanding.  

In the coming year, Albania should in particular: 

  further advance the process of re-evaluating judges and prosecutors; 

18 

 
  ensure the full functioning of the Constitutional Court and the High Court;  

  adopt effective measures to fill  the priority judicial vacancies and continue the progress in 

the recruitment of new magistrates; 

  continue efforts to strengthen the effective use of an improved case management system, 
with sound statistical capacity based on CEPEJ methodology, which ensures the random 
allocation of cases. 

The comprehensive transitional re-evaluation of all judges and prosecutors (vetting) advanced 
steadily  and  delivered  tangible  results.  The  International  Monitoring  Operation  (IMO), 
deployed  under  the  aegis  of  the  European  Commission,  continued  to  exercise  independent 
oversight. 

Until the end of the reporting period, of the total 805 magistrates that have to undergo vetting, 
the vetting institutions have completed 286 vetting cases at first instance, including all priority 
dossiers. Of the 286 decisions, over 186 vetting decisions are final (i.e. after appeal). Overall, 
62% of the vetting dossiers processed so far have resulted in dismissals or resignations by the 
assessees. The breakdown of first instance decisions is as follows: 

  117 dismissals, mostly for issues relating to unjustified assets;  

  105 confirmations in office;  

  62 decisions on termination of the vetting proceedings;  

  2 decisions to suspend the assessees, with an obligation to attend training.  

The first-instance vetting body (IQC) has formally initiated investigations regarding over 603 
assessees. The  IMO has  consistently performed its oversight  role in  the vetting process and 
issued opinions on first-instance assessments, including 12 recommendations for appeal and 
two dissenting opinions. The vetting institutions followed all recommendations for appeal. 

Due  to  the  restrictions  linked  to  the  COVID-19  pandemic,  during  the  lockdown  period,  all 
vetting  public  hearings  have  been  temporarily  suspended.  However,  the  vetting  institutions 
and  the  IMO  managed  to  pursue  investigations  on  dossiers  based  on  agreed  contingency 
measures. The vetting institutions resumed hearings on 3 June 2020. The vetting institutions 
are  expected  to  continue  to  systematically  transmit  to  prosecution  services  all  dossiers  in 
which  the  suspicion  of  commission  of  a  crime  has  emerged.  Due  investigation  and  judicial 
follow up, where necessary, shall be guaranteed. To date, 23 subjects have been submitted to 
prosecution,  including  10  former  high-level  judges  of  the  High  Court  and  Constitutional 
Court,  dismissed  following  vetting  procedures.  Out  of  23  cases,  21  investigations  are  still 
ongoing, one investigation was dismissed, one resulted in a conviction. 10 additional subjects 
have been referred by SPO to the competent district prosecutors’ offices for evaluation. Asset 
investigations are underway in the ongoing cases. 

Strategic documents 

The  cross-sectoral  2017-2020  justice  strategy  and  action  plan  were  updated  in  2019.  The 
Ministry of Justice has established the necessary inter-institutional coordination structures to 
support the implementation of the reform.  

The estimated budget for the implementation of the strategy is EUR 98 million, 35% of which 
is  provided  by  international  donors.  Monitoring,  evaluation  and  reporting  mechanisms  are 
weak. The independent commission for the coordination, monitoring, and enforcement of the 
Law on the Governance of the Judiciary has closed its mandate with the creation of the High 
Justice Inspector. It has issued 17 reports and held a final parliamentary hearings in February 
2020. 

New specialised bodies 

19 

 
The new Specialised Structure for Anti-Corruption and Organised Crime (SPAK), comprising 
the  Special  Prosecution  Office  (SPO)  and  the  National  Bureau  of  Investigation  (NBI),  has 
been  established.  With  13  out  of  15  prosecutors  appointed,  including  the  Chief  Special 
Prosecutor, the SPO is fully functional. The selection procedures for the remaining two SPO 
vacancies are well advanced. On 30 July, the Director of the NBI was appointed and started 
performing  his  functions.  The  EU  has  appointed  two  criminal  justice  experts  to  advise  the 
NBI.  The  special  anti-corruption  and  organised  crime  Courts,  of  first  and  second  instance, 
with  competence  to  hear  cases  referred  by  the  SPO,    have  also  been  established  and  are 
operational.  Upon  the  proposal  of  the  High  Judicial  Council  (HJC),  on  24  July  2020  the 
Assembly  has  adopted  amendments  to  the  law  on  the  status  of  judges  and  prosecutors 
regarding a 60% increase in the gross salaries of magistrates within the SPO and the  special 
anti-corruption and organised crime Courts. This measure is expected to further strengthen the 
independence, competence and professionalism of the new specialised bodies. 

New judicial governance bodies 

The new institutions for the self-governance of the judiciary, as established in 2018, include 
the  new  High  Judicial  Council  (HJC),  High  Prosecutorial  Council  (HPC)  and  the  Justice 
Appointment  Council  (JAC).  These  are  fully  functional  and  operated  effectively  throughout 
the reporting period. The new High Justice Inspector (HJI) has also been appointed.   

Independence and impartiality 

The  comprehensive  justice  reform  has  significantly  improved  the  independence  and 
impartiality of magistrates. Appointments of judges and prosecutors are exclusively managed 
by the new self-governing institutions of the judiciary, subject to completion of compulsory 
initial  training  at  the  School  of  Magistrates,  which  is  a  significant  additional  guarantee  of 
magistrates’  independence.  The  recruitment  process  for  the  School  of  Magistrates  has 
improved.  The  HJC  and  HPC  check  candidates’  merits  and  assets  prior  to  their  admission. 
The  reform  has  in  addition  strengthened  the  guarantees  of  independence  as  regards  career 
advancement  and  promotions,  which  are  managed  by  the  new  self-governance  institutions 
with  reinforced  independence  safeguards  in  place.  Judges  and  prosecutors  cannot  be 
transferred  without  their  consent,  except  in  the  event  of  disciplinary  measures,  structurally 
justified  changes  or  temporary  need.  Appeal  procedures  are  available  against  disciplinary 
measures concerning the magistrates. Judges can be dismissed only for serious misconduct or 
if sentenced for a criminal offence. They can also lodge appeals against dismissal decisions at 
the Constitutional Court. The reform has given prosecutors greater autonomy and has reduced 
the centralisation of the system around the Prosecutor General. 

Attempted  interference  with  the  judiciary,  including  by  authorities  within  the  judiciary,  and 
internal  and  external  pressure  on  prosecutors  remain  an  issue.  Many  shortcomings  have 
become  apparent  in  the  courts’  electronic  case-management  system.  The  latter  should  be 
significantly strengthened and effectively used, notably to ensure random allocation of cases. 
Cases  are  allocated  to  prosecutors  randomly,  but  prosecution  offices  often  fail  to  make  full 
use of the system to produce reliable data. The laws provide for administrative and criminal 
sanctions  in  cases  of  undue  influence  over  a  court  case  or  when  magistrates  consider  their 
independence to be jeopardised, falling under the jurisdiction of the SPO. 

Accountability 

The HJC and the HPC are responsible for approving and monitoring the ethics rules and code 
of  conduct.  The  HJC  has  improved  evaluation  forms  and  adapted  them  to  the  new  legal 
standards.  However,  regular  evaluation  of  judges’  performance  remains  to  be  implemented. 
The Code of Ethics for judges and prosecutors is now regulated by law. Despite the overall 
strengthening  of  independence  across  the  sector  through  the  comprehensive  justice  reform, 
the Minister of Justice still retains the right to submit complaints asking the HJI to investigate 

20 

 
on magistrates. This prerogative of the Minister has continued to be used during the reporting 
period. The legal definitions for the list of misconduct for judges and prosecutors, as a basis 
for  disciplinary  proceedings,  have  been  now  regulated  by  law.  Previous  definitions  were 
repealed  by  the  Constitutional  Court  decision  on  the  Law  on  the  status  of  judges  and 
prosecutors. 

Under the latest  reform, disciplinary proceedings have to be conducted by the HJI. The HJI 
has inherited a considerable backlog of complaints, of approximatively above 300 cases. The 
HJI  has  completed  the  verification  of  50  other  cases  and  started  investigations  in  35  cases. 
The  capacity  of  HJI  should  be  significantly  reinforced  to  effectively  verify  and  process  the 
high backlog of complaints.  

The  HJC  has  adopted  rules  and  procedures  for  the  regular  evaluation  of  judges.  Similar 
regulations have been adopted by the HPC. The HJC continues to suffer from an evaluation 
backlog inherited from the High Council of Justice, with the latest evaluation dating back to 
2012. The HJC and HPC should advance further the implementation of the new methodology 
for evaluation of judges and prosecutors, also in view of reducing the accumulated evaluation 
backlog.  

The Plenary sessions of the councils have been open to the public and recorded. The minutes 
are  publically  available,  thus  increasing  their  accountability  and  transparency.  This  practice 
needs to be continued and further consolidated.  

Professionalism and competence 

The  system  for  recruiting,  selecting,  appointing,  transferring  and  dismissing  judges  and 
prosecutors has improved. Constitutional  and legal  changes have reduced political  influence 
during  the  appointment  process,  ensuring  a  merit-based  career  system  exclusively  managed 
by the self-governing institutions of the judiciary. 

The  Justice  Appointment  Council  adopted  two  detailed  regulations  for  the  evaluation  and 
ranking  of  the  candidates  for  the  Constitutional  Court  and  HJI.  The  HPC  adopted  similar 
regulations for the appointment of the Prosecutor General.  

The  quality  of  first  year  initial  training  programme  of  the  School  of  Magistrates  was 
considerably improved. Continuous training requires further improvements, notably regarding 
the quality of curriculum and trainers. During the academic year 2018-2019, 134 judges and 
138  prosecutors  fully  attended  the  continuous  training  programme,  which  represents  the 
maximum number registered  yet.  The School  of Magistrates is  an observer of the European 
Judicial Training Network (EJTN). It should benefit more proactively of the EJTNs activities 
and from the expertise within the network. 

An  important  milestone  was  reached  on  11  March  2020  with  the  appointment  of  three  new 
non-magistrate  members  to  the  High  Court.  This  membership  allows  the  Court  to  function. 
The  nomination  of  the  candidate  for  the  remaining  non-magistrate  position  is  pending  final 
evaluation by the HJC. The other magistrate candidates are in the process of being promoted 
from  within  the  court  system.  The  HJC  is  currently  reviewing  the  first  applications  for  the 
appointment  of  11  magistrate  candidates  and  is  expected  to  open  subsequent  calls  for  the 
remaining  vacancies  in  a  gradual  manner.  In  June  2020,  the  High  Judicial  Council  has 
terminated the mandate of the fourth non-magistrate member, whose mandate had expired. In 
July 2019, the HJC also took the decision to temporarily appoint judges to the High Court for 
the  adjudication  of  the  most  urgent  cases  related  to  the  extradition  of  persons,  in  line  with 
obligations deriving from international conventions.  

Albania  made  progress  to  reconstitute  the  Constitutional  Court.  Due  to  the  outcome  of  the 
vetting and early retirements, up until December 2019, there was only one sitting judge. Four 
new members were appointed at the end of last year. Although one did not eventually pass the 

21 

 
vetting  process,  with  four  members  in  office,  the  Constitutional  Court  regained  basic 
functionality and the quorum to review admissibility of cases. There has been a dispute about 
one of the judges nominated by the President of the Republic, due to differing interpretations 
of the appointment procedure. The Venice Commission has issued an opinion on the matter, 
providing  the  necessary  guidance  to  the  Albanian  authorities  to  complete  the  outstanding 
appointments to the Constitutional Court. The Justice Appointment Council is managing the 
assessment of candidates for three vacant posts. The process has been slightly affected by the 
COVID-19 crisis, but is expected to be finalised as a priority. Completion of appointments at 
the  Constitutional  Court  will  proceed  once  the  High  Court  reaches  the  required  quorum  of 
three fifths of members in office, as the latter is the third appointing authority other than the 
Assembly and the President of the Republic. 

The  new  General  Prosecutor  has  been  appointed,  for  the  first  time  based  on  the  procedures 
established in the latest justice reform.  

Quality of justice 

Albania had 329 full-time judges (12 per 100 000 inhabitants) and 299 full-time prosecutors 
(11  per  100 000  inhabitants)  in  2019.  According  to  the  European  Commission  for  the 
Efficiency  of  Justice  (CEPEJ),  the  European  averages  are  21  judges/11  prosecutors  per 
100 000 inhabitants. The 2018 budgetary allocation for the justice sector was EUR 98 million, 
while in 2019 it was raised to about EUR 100 million. This amounts to around EUR 5.3 per 
inhabitant.  The  new  justice  institutions  and  the  vetting  process  are  supported  by  a  EUR  12 
million  budgetary  plan.  Court  infrastructure  remains  poor  overall  and  future  budget 
allocations  should  take  this  into  account.  In  July  2019,  the  School  of  Magistrates  has  been 
moved to significantly better premises in a new Justice Centre, along with the HPC, HJC and 
HJI.  It  continues  to  rely  heavily  on  donors’  support  and  has  limited  capacity  in  terms  of 
academic staff and qualified specialised trainers.  

The HJC and HPC set the number of candidates to be admitted in the 2020/21 academic year 
at 75 for judges and prosecutors and 25 legal advisors. The admission examination was held 
in June 2020, being slightly postponed due to COVID-2019 restriction measures. At the final 
exam, 68 judges and prosecutors and 12 legal advisors and assistants have been admitted. In 
2019, only 24 magistrates were appointed and 21 are expected to be appointed in 2020. There 
will be no magistrate graduates from the School for the year 2021 as the Parliament failed to 
adopt  the transitory legal  changes necessary to  increase the intake. A significant  increase in 
graduates of the School of Magistrates is expected in 2022 and 2023, with 46 and respectively 
70  candidate  magistrates  admitted,  as  defined  by  the  HPC  and  HJC.  The  HJC  has  been 
transferring judges to fill in most urgent vacancies for relevant positions. Decisive progress in 
the recruitment of new magistrates to fill in the positions made vacant by the vetting remains 
essential in the current stage of implementation of the justice reform. 

The HJC monitors and evaluates court activities on a monthly basis. All courts are required to 
send  a  monthly  report  to  the  HJC  and  produce  annual  activity  reports.  All  courts  have 
websites  that  are  publicly  accessible,  but  these  are  not  standardised.  The  electronic  case 
management  system  is  still  unable  to  produced  reliable  and  coherent  statistical  information. 
The current  budgetary and human resources allocated to  the Councils remain insufficient  to 
establish and maintain an adequate case management system.  

Court  decisions  are  reasoned  and  hearings  are  audio-recorded.  Publication  in  due  time  of 
courts’ decisions has slightly improved, but should still be addressed with priority.  

Efficiency 

There is still a lack of consolidated reporting on the efficiency of the justice system. Decisive 
effort is required to ensure an effective and reliable case-management system able to produce 
automatically  reliable  statistical  data  in  line  with  the  recommendations  and  methodology  of 

22 

 
the  CEPEJ  about  the  performance  of  both  judiciary  and  prosecution.  To  this  end,  it  is 
necessary  to  adopt  the  legal  basis,  ensure  appropriate  budgetary  allocation  and  human 
resources,  as  well  as  adopt  a  clear  roadmap  laying  out  concrete  steps  towards  the  effective 
functioning of the case management system. 

Efficiency  of  the  justice  system  is  affected  by  issues  such  as  the  length  of  proceedings,  the 
clearance rate and the backlog of cases at all court levels including the Constitutional Court. 
The clearance rate is lowest in the appeal courts and in particular at the Administrative Appeal 
Court (backlog of 12 798 cases in June 2019 compared to 11 401 in December 2018). This is 
due to a high number of appeals and the low number of judges allocated to the Administrative 
Appeal Court.  

Vacancies in the judiciary have contributed to an increased backlog of cases. The High Court 
has  made  some  progress  with  the  processing  of  pending  cases  after  resuming  its  judicial 
functions  in  March  2019,  however  its  backlog  remains  particularly  high,  with  over  35  000 
pending  cases.  A  comprehensive  strategy  is  necessary  to  address  this  backlog,  including 
effective measures to continue the progress in the recruitment of new magistrates. Measures 
for  re-distribution  and  transfer  of  judges  and  prosecutors  to  priority  vacancies  have  had 
limited impact. Further efficiency measures should be implemented with priority, including a 
new judicial map and measures to address the backlog of cases.  

There  are  36  cases  pending  before  the  Council  of  Europe  Committee  of  Ministers  for 
supervision of execution of final judgements of the European Court of Human Rights. 

Changes  in  the  procedural  codes  under  the  reform  have  provided  for  improved  legal 
provisions on the length of proceedings. However, correct implementation of these improved 
legal provisions requires more training for judges and lawyers.  

The  use  of  alternative  dispute  resolution  continues  to  be  limited  and  needs  to  be  further 
strengthened.  

In addition to the overall length of court proceedings, the execution of court decisions remains 
a cause of concern. Since the introduction of the private offices’ service, enforcement of court 
decisions has improved, but is should still be addressed as a priority.  

Fight against corruption 

Albania has some level  of preparation in  the fight  against corruption.  Good progress was 
made in strengthening the fight against corruption. Progress was achieved with the adoption 
of the new action plan 2020-2023 for the implementation of the Inter-sectoral Strategy against 
Corruption;  the  amendments  to  the  Law  on  Political  Party  Financing  and  Electoral  Code  as 
well as the adoption of a new Law on the Administration of seized and confiscated assets. The 
ongoing vetting of members of the judiciary as well as of the police are also bringing results 
in the fight against corruption.  The operational capacity for dealing with corruption cases is 
overall  sufficient  and  institutional  coordination  and  monitoring  structures  are  being 
strengthened.  The  establishment  of  an  Anti-corruption  Task  Force  has  increased  the 
proactivity  of  administrative  investigations  and  the  creation  of  a  dedicated  Anti-corruption 
Directorate  contributes  to  better  performance  on  investigating,  prosecuting  and  trying  high-
level  corruption  cases.  The  creation  of  a  network  of  anti-corruption  coordinators  in  16 
agencies  in  2019  has  also  contributed  to  improving  the  effectiveness  in  the  fight  against 
corruption.  An  Asset  Recovery  Office  still  needs  to  be  set  up.  The  recommendations  of  the 
last annual report were partially implemented. Efforts should continue towards consolidating 
a  track  record  of  seizure  and  confiscation/recovery  of  criminal  assets  resulting  from 
corruption-related  offences.  Direct  access  to  databases  for  prosecutors  and  the  police 
continued  to  improve.  Further  efforts  towards  establishing  a  solid  track  record  in  the  fight 
against corruption have been made. This remains a long-term objective. Overall, corruption is 
prevalent in many areas and remains an issue of concern. The justice response against high-

23 

 
level corruption has started to generate results, although convictions in cases involving high-
level officials remain limited.  

In the coming year, Albania should therefore: 

  keep  strengthening  the  fight  against  corruption;  further  progress  towards  establishing  a 
solid track record of corruption cases, seizure and confiscation/recovery of criminal assets 
resulting  from  corruption-related  offences;  further  increase  the  use  of  financial 
investigations; 

  ensure  that  recently  established  specialised  anti-corruption  bodies  of  the  Special  Anti-
Corruption  and  Organised  Crime  Structure  (SPAK),  i.e.  the  Special  Prosecutor's  Office 
(SPO) and the National Bureau of Investigation (NBI), as well as the Anti-Corruption and 
Organised  Crime  courts  are  operational  and  effectively  address  high-level  corruption; 
ensure  adequate  resources  and  cooperation  between  these  new  structures  and  with  other 
prosecution and judicial entities; 

  continue  to  improve  access  to  national  electronic  registries  for  law  enforcement 

authorities.  

Track record 

Further  efforts  were  made  as  regards  the  track  record  of  investigations,  prosecutions  and 
convictions  in  the  fight  against  corruption,  although  it  remains  a  long-term  objective  that 
requires further structured and consistent actions. There were 246 final convictions involving 
junior or middle-ranking  officials  in  2019 (289 in 2018). The overall number of referrals  to 
the prosecution increased to 2,257 in 2019 (2,126 in 2018). 

On convictions of high-level state officials, the judiciary has achieved some results. In 2019, 
three Judges of the Serious Crimes Court of Appeals were found guilty of passive corruption 
and a High Court Judge was sentenced to prison for falsification of documents. There were 98 
new  cases  opened  at  prosecution  level  against  high-level  state  officials  in  2019  (10  persons 
indicted)  against  102  cases  in  2018  (7  persons  indicted).  Investigations  have  so  far  not 
resulted  in  a  substantial  number  of  final  convictions  of  high-ranking  state  officials.  This 
fosters a culture of impunity within the higher levels of the State. 

The vetting of members of the judiciary has had an impact on the fight against corruption. Of 
the more than 286 magistrates that underwent vetting, so far 62% have been dismissed from 
office,  mostly  for  issues  related  to  unjustified  assets,  or  resigned.  Among  the  high-ranking 
magistrates, eight out of nine Constitutional Court judges and 15 out of 18 High Court judges 
have  been  dismissed  through  the  vetting  or  have  resigned.  The  SPO  has  started  criminal 
proceedings  against  23  former  magistrates,  including  9  cases  concerning  High  Court  and 
Constitutional Court judges. Asset investigations are underway in all cases. The vetting of the 
State Police, Guard of the Republic and Service for Internal Affairs and Complaints (SIAC) 
has  begun  with  the  first  45  out  of  300  high  level  officials  vetted,  leading  so  far  to  one 
dismissal  and  one  resignation.  The  vetting  process  and  its  results  remain  crucial  to  restore 
public trust in the judiciary and law enforcement bodies of the State.  

Reaching  final  convictions  in  high-level  corruption  cases  remains  an  important  priority  and 
data collection methodology for both corruption and organised crime cases is yet to be further 
improved. Ensuring efficient operation of SPAK and NBI work will be of key importance in 
the upcoming months in order to minimise the backlog of sensitive/high-level cases. District 
law  enforcement  authorities  will  have  to  be  strengthened  in  order  to  efficiently  deal  with 
special  cases  not  covered  by  the  SPAK  and  NBI  mandate.  Cooperation  between  these 
different instances must be effective. The newly created special Anti-corruption Directorate in 
the  Ministry  of  Justice  should  reinforce  internal  coordination  structures.  Inter-institutional 

24 

 
coordination  against  corruption  will  be  streamlined,  following  the  establishment  of  an  anti-
corruption and anti-evasion special unit within the Prime Minister’s office.   

On asset declarations by high-level state officials, in 2019 there were 7 cases referred by the 
High  Inspectorate  for  the  Declaration  and  Audit  of  Assets  and  Conflicts  of  Interest 
(HIDAACI) to the prosecution, one of which resulted in a conviction and a dismissal. In 2018 
there were 27 cases referred to prosecution that resulted in 6 convictions and 7 dismissals. In 
total, HIDAACI referred 12 low- and mid-ranking officials to prosecution services in 2019. In 
the  same  year,  12  final  convictions  occurred.  In  2018,  there  were  43  referrals  and  17  final 
convictions. 

Seizure and confiscation of criminal assets are not systematically  ordered and carried out in 
corruption-related  cases.  Risk  assessments  have  been  piloted  in  some  sectors  (Customs 
Administration, General Inspectorate) and should be further expanded.   

Some  progress  was  made  in  setting  up  an  interface  between  the  different  electronic 
case-management  systems  of  the  police,  prosecution  and  courts.  A  system  to  manage  the 
follow-up of denounciations of corruption is being set-up by the Ministry of Justice  

Implementation of the Law on whistle-blowing and whistle-blower protection continued and 
an  evaluation  on  its  implemenation  is  ongoing.  At  both  central  and  local  level,  166  units 
responsible  for  protecting  whistle-blowers  and  for  reporting  cases  to  HIDAACI  have  been 
established while 446 units responsible for the protection of whistle-blowers were established 
across  private  companies.  In  2019,  14  external  reporting  cases  were  registered  and 
investigated by HIDAACI, compared to 16 in 2018.  

On internal control mechanisms, the Anti-corruption Task Force carried out 26 inspections 
in  2019  leading  to  91  administrative  measures,  105  disciplinary  measures  and  no  criminal 
referrals, compared to 36 criminal referrals in 2018. The implementation rate of the proposed 
measures  is  low.  In  2019,  SIAC  has  referred  250  cases  involving  474  officials  to  the 
prosecution which resulted in 501 disciplinary proceedings. In 2018, 201 cases involving 265 
officials were referred to the prosecution resulting in 752 discliplinary proceedings.  The State 
Supreme  Audit  Institution  referred  28  cases  in  2019involving  40  executives  to  the 
prosecution.  The  rate  of  implementation  of  the  State  Supreme  Audit  Institution’s  general 
recommendations by public institutions remains low. 

On  access  to  information,  in  2019,  the  Commissioner  for  Information  and  Data  Protection 
received  786  complaints  and  issued  18  decisions,  while  820  complaints  were  received  in 
2018.  A  system  was  established  and  installed  in  31  public  institutions  to  record  the  overall 
number  of  requests  made  and  to  enable  citizens  to  submit  online  requests  for  public 
information. 

The  impact  of  anti-corruption  measures  in  particularly  vulnerable  areas  (customs,  tax 
administration,  education,  health,  public  procurement,  PPP  contracts  etc.)  remains  limited. 
Internal checks and inspection mechanisms within the public administration remain weak and 
ineffective.  

Institutional framework 

Prevention of corruption 

The capacity of the anti-corruption network in line ministries, at local level and in the Office 
of  the  National  Coordinator  against  Corruption  (NCAC)  is  weak.  The  Ministry  of  Justice, 
which serves  as  the NCAC also chairs the  Inter-ministerial  Coordinating Committee for the 
Implementation  of  the  Strategy,  which  monitors  the  progress  of  the  Strategy  and  is 
responsible for the enforcement of administrative sanctions taken by the Anti-corruption Task 
Force. In 2019, a separate Directorate for Anti-corruption was established within the Ministry 
of  Justice,  together  with  a  network  of  Anti-corruption  coordinators  in  16  agencies,  with  the 

25 

 
aim  of  preventing  and  attacking  corruption  in  state  administration  institutions  and  its 
structures.  Effective  coordination  should  be  ensured  between  the  new  structures  at  the 
Ministry  of  Justice,  the  Unit  for  Transparency  and  Anti-Corruption  at  the  Prime  Minister’s 
office, the Special Unit for Anti-Corruption and Anti-Evasion recently established also at the 
Prime  Minister’s  office,  as  well  as  the  Integrated  Policy  Management  Group  for  PAR  and 
Good  Governance.  The  impact  of  the  anti-corruption  structures  on  preventing  public  sector 
corruption remains unclear. 

The role of HIDAACI in detecting conflicts of interest and checking asset declarations was 
strengthened  by  the  adoption  of  the  Law  on  whistle-blowing  and  whistle-blower  protection 
and the implementation of the vetting process.  

The role of the State Supreme Audit Institution in the overall anti-corruption framework is to 
identify  and  effectively  address  systematic  weaknesses.  The  inspection  capacity  in  public 
procurement  needs  to  be  further  improved.  E-procurement  is  expected  to  achieve  more 
transparency and reduce opportunities for abuse. 

The  Council  of  Europe’s  Group  of  States  against  Corruption  (GRECO)  has  published  its 
Second  Compliance  Report  (fourth  round)  on  Albania  in  July  2018,  and  concluded  that 
Albania had dealt satisfactorily with only four of the 10 recommendations. GRECO undertook 
the  first  visit  of  the  fifth  round  dealing  with  the  prevention  of  corruption  and  promoting 
integrity  in  central  governments  (top  executive  functions)  and  law  enforcement  agencies  in 
November 2019.  

Integrity-related  secondary  legislation  is  in  place  but  an  overall  integrity  risk-management 
system  has  yet  to  be  established.  No  integrity  plans  have  been  developed  for  ministries.  A 
‘Manual of Ethics on Public Service Delivery’ has been adopted. 

In 2019, the online portal to promote ‘co-governance’ with citizens has received a total of 23 
605  complaints  related  to  public  administration  of  which  22  423  were  addressed  leading  to 
171  administrative  measures  and  20  cases  to  Anti-Corruption  Task  Forces.  There  were  28 
such cases reported in 2018 out of the 26 936 overall registered complaints.  

Law enforcement 

Specialised  bodies  in  charge  of  investigating,  prosecuting  and  adjudicating  complex 
corruption  cases  have  been  established,  such  as  the  Anti-Corruption  and  Organised  Crime 
courts  and  the  SPAK,  comprising  the  Special  Prosecution  Office  (SPO)  and  the  National 
Bureau  of  Investigation  (NBI).  A  Chief  Special  Prosecutor  and  thirteen  Special  Prosecutors 
have been appointed after passing the vetting. The SPO lacks guidelines and best practices to 
tackle complex high-level corruption cases. There is a lack of specialist knowledge necessary 
to ensure the quality of the investigation and prosecution work.  

The  transfer  of  16  Judges  to  the  first  and  second  instance  special  Anti-corruption  and 
Organised Crime courts that mirror the jurisdiction of the SPO has been completed.  

Police  and  prosecution  have  been  granted  direct  access  to  additional  private  and  public 
national registries. This has improved the capacity of law enforcement authorities to operate, 
and has also made investigations more efficient. Concerns remain over high staff turnover and 
insufficient  inter institutional  cooperation.  The  overall  resources  of  law  enforcement 
authorities are insufficient. 

Legal framework 

Albania  is  a  party  to  all  international  anti-corruption  conventions,  including  the  United 
Nations Convention Against corruption.  It  has  continued to  improve its legal  framework on 
the prevention and combatting of corruption.  

26 

 
In June 2019, the Parliament adopted a new law on the administration of confiscated assets as 
part  of  the  "Moneyval  package"  which  foresees  the  establishment  of  an  Asset  Recovery 
Office. Proposed amendments to the criminal code related to the criminal reliability of entities 
involved in the construction sector need to be adopted.  

Amendments  to  the  Law  on  political  party  financing  and  the  Electoral  Code  were 
thoroughly discussed at the ad hoc electoral committee within the Assembly, as well as in the 
context  of  the  political  platform  for  electoral  reform  gathering  representatives  from  the 
majority,  the  parliamentary  and  the  extra  parliamentary  opposition.  The  amendments  to  the 
electoral  code  were  adopted  by  the  Parliament  on  23  July  2020  (see  also  section  2.1.1 
Democracy). All the secondary legislation for the legal framework on integrity is in place but 
it remains highly complex and fragmented. While Albania has an increasingly comprehensive 
legal framework, effective and high-quality implementation is lacking. 

Strategic framework 

The  implementation  of  the  Inter-sectoral  Strategy  against  Corruption  is  overall  on  track, 
although  weaknesses  remain.  These  weaknesses  include  the  need  to  strengthen  ownership, 
strengthen  institutional  capacities,  ensure  proper  costing  and  budgeting  of  the  strategy’s 
activities. A new action plan for 2020-2023 for the implementation of the extended strategy 
was adopted in July 2020. A mid-term review of the Strategy has been undertaken. According 
to the 2019 draft annual monitoring report, 59 activities out of 97 planned have been realised 
(61%)  while  12  are  ongoing.  In  2018,  out  of  97  planned  activities,  55%  were  fully 
implemented.  The  monitoring  mechanism  and  its  accountability  need  to  be  strengthened. 
Consultations  with  relevant  stakeholders  before  the  approval  of  the  reports  have  improved.  
Feedback  is  not  systematically  provided  to  stakeholders  who  participate  in  developing 
anticorruption policies.  

The  comprehensive  performance  assessment  framework  has  been  updated  together  with  the 
new  action  plan  up  to  2023,  and  reporting  on  the  performance  indicators  is  included  in  the 
annual monitoring reports however not used as a tool to strive towards more progress. 

Fundamental rights  

Albania  complies  overall  with  international  human  rights  instruments  and  has  ratified  most 
international  conventions  related  to  the  protection  of  fundamental  rights.  During  the 
reporting period, Albania made some efforts to meet obligations that arise from international 
legal  instruments.  Regarding  the  implementation  of  the  Law  on  Social  Housing,  nine  sub-
legal acts were approved following a wide consultation process. The legal framework in the 
areas of children rights and juvenile justice has also been improved by sub-legal acts. Efforts 
are  ongoing  to  implement  a  comprehensive  land  sector  reform  and  to  consolidate  property 
rights.  

In the coming year, Albania should: 

  further  improve  institutional  mechanisms  for  protecting  children,  protecting  victims  of 
domestic violence, promoting the rights of persons with disabilities, guaranteeing gender 
equality and providing minimum health and social services, especially at the local level;  

  step  up  efforts  to  establish  solid  anti-discrimination  case-law;  enact  the  sub-legal  acts 
related to the Law on Social Housing, which also foresees 5% of housing to be reserved 
for the most vulnerable members of the Roma and Egyptian3 communities; 

  swiftly adopt the remaining five bye-laws to ensure full implementation of the legislation 

related to the 2017 framework Law on the Protection of National Minorities; 

3 All these groups are considered under the wider "Roma" umbrella term under the EU framework for National 
Roma Integration Strategies. 

27 

 
                                                           
  consolidate  the  entrenchment  of  property  rights,  notably  by  finalising  first  registration, 
advancing the registration of property deeds, implementing the compensation scheme, and 
continue making the necessary progress on the digitalisation and mapping of property.  

Albania complies overall with international human rights instruments and has ratified most 
international  conventions. Albania has  yet  to  ratify the Optional Protocol to  the Convention 
on  the  Rights  of  Persons  with  Disabilities  and  the  Optional  Protocol  to  the  International 
Convention on Economic, Social and Cultural Rights. Assessing the level of implementation 
of  human  rights  legislation,  policies,  analyses  and  strategies  remains  a  challenge  due  to  the 
absence  of  comprehensive  monitoring  and  data.  Albania  underwent  its  third  Universal 
Periodic Review cycle (UPR) in May 2019. In addition, Albania was granted Observer Status 
to  the  European  Union  Agency  for  Fundamental  Rights  by  decision  of  the  EU-Albania 
Stabilisation  and  Association  Council  of  28  November  2019.  Albania  is  in  the  process  of 
appoining an Observer, an alternate Observer and a National Liaison Officer for the Agency. 

Albania continues to ensure good cooperation with the European Court of Human Rights. 
The European Court of Human Rights dealt with 48 applications concerning Albania in 2019, 
of which 47 were declared inadmissible. The Court delivered one judgment (concerning one 
application)  finding  violations  of  procedural  rights  and  ill-treatment  guaranteed  under  the 
ECHR. A judgement was issued in January 2020 finding Albania in breach of the ECHR for 
ill-treatment  of  a  mentally  ill  individual.  In  March  2020,  Albania  notified  the  Council  of 
Europe  about  restrictions  of  human  rights  and  freedoms  due  to  COVID-19  outbreak.  By 
declaring  a  state  of  emergency  due  to  natural  disaster,  Albania  introduced  restrictions  on 
freedoms and fundamental human rights regarding movement, air, sea and land transport, the 
educational process, as well as the right to property. 

On  the  promotion  and  enforcement  of  human  rights,  the  Ombudsman  has  continued  to 
promote human rights. In 2019, the Ombudsman submitted a total of 213 recommendations, 
of  which  63  were  accepted,  10  were  rejected,  4  went  without  response,  and  23  remain  in 
process.  In  April  2019,  after  monitoring  the  protests  on  13  April,  the  Ombudsman  issued  a 
statement  indicating  that  violence  against  public  buildings  and  private  properties  during 
protests  must  not  be  tolerated.  The  Ombudsman  also  criticised  the  indiscriminate  use  of 
teargas by the police and deplored the fact that journalists were being discouraged via various 
means from fully covering the protest. In November 2019, the Ombudsman expressed support 
to  the  Astir  area  residents  protesting  against  the  destruction  of  their  homes  and  other 
properties  to  make  way  for  the  construction  of  a  ring  road  segment.  Following  the  protests 
against  the  demolition  of  the  National  Theatre  building  in  Tirana  on  17  May  2020,  the 
Ombudsman  called  on  the  state  authorities,  i.e.  the  structures  of  the  State  Police,  to  avoid 
extreme reactions, to maintain proportionality and to respectfully consider any legal form of 
expression of the will of the citizens, including the right  to  expressing their opinions or the 
right 
the 
Ombudsman’s recommendations by the public administration needs to be more systematic. A 
comprehensive approach is necessary to strengthen the capacity of the Ombudsman and of the 
Commissioner  for  Protection  from  Discrimination  (CPD)  in  handling  cases  of  human  rights 
violations. The budget for the CPD has been increased for 2020, while the amount allocated to 
the  Ombudsman  has  decreased.  Regarding  the  work  of  both  the  Ombudsman  and  the 
Commissioner  for  Protection  from  Discrimination,  the  2019  Universal  Peer  Review 
concluded  that  the  lack  of  sufficient  human,  technical  and  financial  resources  was 
undermining the work on human rights promotion and protection. 

their  dissatisfaction.  Effective 

to  protest  or  manifest 

implementation  of 

On  the  right  to  life,  in  November  2018,  Albania  ratified  a  cooperation  agreement  with  the 
International Commission for Missing Persons (ICMP), to help identify some of the missing 
victims  of  Albania’s  Communist  regime  and  collect  DNA  samples  with  financial  support 

28 

 
from  the  EU.  However,  by  November  2019,  the  remains  of  just  two  people  had  been 
identified due to insufficient cooperation by the Prosecution Offices of Tirana and Fier.  

On  the  prevention  of  torture  and  ill-treatment,  the  National  Preventive  Mechanism 
conducted 58 inspection visits to detention facilities and four to psychiatric hospitals in 2019, 
resulting  in  164  recommendations  concerning  the  prison  system.  The  percentage  of  fully 
implemented recommendations remains low and requires further efforts.  During this period, 
42 complaints relating to violence in police facilities were processed, two cases were brought 
to the courts, one was later dismissed and one is still pending. Another four recommendations 
are being prepared for the courts. In five other cases, investigations have been initiated by the 
Prosecutor's Office based on reports made by the injured parties. During the 2019 Universal 
Periodic  review,  States  expressed  concerns  about  allegations  of  torture  or  ill-treatment  in 
detention and recommended that Albania carry out prompt and effective investigation into all 
allegations ensuring that those responsible are punished with sanctions commensurate to the 
gravity of their crimes. Albania has been condemned for violations of the ECHR related to ill-
treatment in 2019 and 2020 (see above). 

In  September  2019,  the  Council  of  Europe’s  Committee  for  the  Prevention  of  Torture  and 
Inhuman  or  Degrading  Treatment  or  Punishment  (CPT)  published  the  report  on  its  visit  to 
Albania  (carried  out  in  November  2018).  According  to  the  CPT,  there  are  only  slight 
improvements  in  the  functioning  of  detention  facilities.  Particular  attention  was  paid  to  the 
treatment and conditions of detention of persons in police custody and the situation of remand 
prisoners and forensic psychiatric patients. In response to recommendations made by the CPT 
and  the  European  Commission,  the  government  has  started  preparing  plans  for  the 
establishment of a special institute for the treatment of persons with mental illness in prison 
and  has  renovated  premises  in  the  Lezha  prison  to  serve  as  an  intermediary  facility  to  treat 
people with mandatory medical treatment in prisons.  

After  inspection  visits  in  August,  the  Ombudsman  called  for  the  immediate  closure  of  the 
Saranda and Burrel prisons due to poor conditions, including overcrowding and low hygienic 
standards.  The  Ombudsman  also  requested  the  improvement  of  conditions  in  the  prisons  of 
Berat, Tirana (302 and Vaqarr), Tepelena, Lezha (Shënkoll), Tropoja, and the women’s prison 
in  the Ali  Demi neighbourhood in  Tirana. As  for the  prison system,  a new action plan has 
been drafted for 2019-2022.  Legislation on prisons and prison  police should  be amended to 
ensure  compliance  with  European  standards.  With  the  opening  of  the  EU-funded  prison  in 
Shkodra  in  July  2018,  there  has  been  progress  in  addressing  overcrowding.  Across  the 
country, the number of inmates is now under the capacity of the prison system (by 13%). The 
population  of  the  Zaharia  medical  facility  is  however  severely  overpopulated  with  284 
detainees  for  a  capacity  of  188.  The  MoJ  has  engaged  in  several  reforms  targeting  the 
professionalism  and  integrity  of  prison  personnel.  In  November  2019,  12  Prison  Police 
Directors  and  eight  employees  were  dismissed  for  "low  performance"  and  suspected  of 
committing criminal offences, including corruption related offences. By October 2019, 70 % 
of Prison Directors had been dismissed as a follow-up to the negative report delivered by the 
General Director of Prison to the Assembly. 

The  use  of  alternatives  to  custody  increased  in  2019  compared  with  the  previous  reporting 
period. There were 7,992 cases of non-custodial alternatives in 2019, compared to 6,171 cases 
in 2018 and 4,904 in 2017. The use of electronic monitoring has been suspended since 2017 
because  of  an  unresolved  legal  dispute.  The  new  Law  on  Probation  has  been  drafted  and  is 
pending approval by the Parliament. The increase in numbers of alternative sentences has also 
led to a reduction in prison overcrowding. 

In March 2020, about 600 detainees, 10% of the total prison population, have been transferred 
for three months to their homes. The decision was adopted by the government as a measure to 
prevent possible spread of the COVID-19 in penitentiaries. 

29 

 
On  the  protection  of  personal  data,  further  efforts  are  needed  to  align  the  personal  data 
protection  legislation  with  the  General  Data  Protection  Regulation  2016/679  and  the  Police 
Directive 2016/680. Albania has not  yet signed the 2018 Protocol amending the Convention 
for the Protection of Individuals with regard to Automatic Processing of Personal Data. The 
capacity of the office of the Commissioner for the Right to Information and Data Protection 
need  to  be  further  strengthened  so  that  it  can  perform  its  tasks  effectively.  In  2019,  the 
Commissioner  received  301  complaints  from  data  subjects  which  shows  an  increased 
awareness on personal data protection issues compared to previous years. The Commissioner 
carried out 142 inspections in both public and private entities and issued over the same period 
39  recommendations,  including  one  unifying  recommentation,  20  decisions  and  56 
administrative  sanctions.  This  represents  a  comparable  level  of  activities  to  2018.  The 
Commissioner  successfully  hosted  the  41st  International  Conference  of  Data  Protection  and 
Privacy Commissioners in October 2019.   

Freedom of thought, conscience and religion was generally upheld. Inter-religious harmony 
and cooperation continued with frequent joint appearances of religious leaders in public local 
and international platforms. As is the case every year, the government allocated EUR 890,000 
to support the five official religious communities in April 2019 with a core support dedicated 
to religious education. The religious groups – the Muslim Community, the Orthodox Church, 
the  Catholic  Church,  the  Bektashi  Community  and  the  Evangelical  Fraternity  –  continue  to 
express strong public support for Albania’s EU integration process. With the ongoing political 
stalemate  in  the  country,  religious  leaders  have  been  calling  for  dialogue  among  political 
parties.  Following  the  earthquake  in  November  2019,  some  religious  charity  organisations 
have  grown  close  and  are  supportive  of  the  Government’s  relief  efforts.  However,  the 
restitution of properties belonging to religious groups remains an issue.  

Freedom of expression 

The country has some level of preparation / is moderately prepared in the area of freedom 
of  expression.  There  was  no  progress  over  the  reporting  period.  In  December  2019,  the 
Parliament approved a set of amendements to media law, aiming to regulate online media and 
some aspects of defamation. The adopted amendments, which presented issues that required 
reconsideration in light of the relevant international and European standards, were returned by 
the President to the Parliament.  In June 2020, the Venice Commission issued an opinion on 
the amendments to the media law. The amendments fall short of international standards and 
principles  of  media  freedom  and  raise  concerns  about  increased  censorship  and  self-
censorship,  and  about  possible  setbacks  on  freedom  of  expression  in  the  country.  Albania 
must  ensure  that  European  standards  of  freedom  of  expression  and  media  are  upheld. 
Representatives from the ruling majority publicly committed to follow up on the guidance of 
the Venice Commission opinion. The draft media law is currently being revised in light of the 
opinion of the Venice Commission. Criticism and harsh language against journalists persisted. 
No  final  convictions  of  past  reported  attacks  against  journalists  were  recorded  during  the 
reporting  period.  Self-regulation  in  online  media  needs  to  be  ensured.  Albania  needs  to 
provide  for  more  stringent  criteria  regarding  transparency  of  ownership  and  media  funding. 
Legislation on public advertising needs to be introduced to improve transparency in line with 
international  best  practices.  Albania  is  expected  to  address  outstanding  recommendations 
from the 2019 Commission report, including by aligning to international  standards the legal 
requirements for transparency of media ownership and financing, and its limitations, as well 
as requirements on public advertising. Furthermore, Albania should: 

  ensure a policy of zero tolerance for intimidation and attacks against journalists, as well 

as for threats against the media, including in political discourse; 

 

review media legislation to bring it fully in line with international standards on freedom 
of expression, especially regarding online media; 

30 

 
  strengthen self-regulation mechanisms; 

  ensure  implementation  of  the  Labour  Code  and  strengthen  the  protection  of  Albanian 

journalists’ labour and social rights. 

Intimidation of journalists 

During  the  reporting  period,  no  final  convictions  of  past  reported  attacks  against  journalists 
were  recorded.  Some  reporters  were  injured  while  caught  between  protesters  and  police 
during  the  opposition  street  protests.  A  journalist  was  beaten  while  reporting  on  a  police 
operation  in  Dibra.  Police  apologised  for  what  it  considered  an  accident.  Intimidating 
language against journalists persisted. In the margins of the protest following the demolition 
of  the  National  Theatre,  police  used  force  during  the  arrest  of  a  journalist.  Media 
organisations strongly condemned the incident, which is being investigated by the authorities. 
Journalists critical to the Government and media organisations reported online harassment and 
smear  campaigns  against  them  leading  more  journalists  towards  self-censorship  and  some 
media towards closure of critical shows.  

Following  the  26  November  earthquake,  organisations  dealing  with  freedom  of  expression 
raised  concerns  about  Government  actions  towards  media.  On  grounds  of  generating  public 
panic in  the emergency  situation of the post-earthquake period, the regulatory Authority for 
Electronic  and  Postal  Communications  (AKEP)  closed  down  some  web  portals  broadly 
perceived  as  critical  to  the  government.  A  25-year-old  was  arrested  for  four  days  by  the 
counter-terrorism police directorate after sharing an article of a foreign media about a possible 
explosion of natural  gas  depots  during earthquake aftershocks and requesting authorities for 
an urgent assessment.  

Legislative environment  

The  amendments  to  the  media  law,  aiming  to  regulate  online  media  and  some  aspects  of 
defamation  were  adopted  by  the  Parliament  in  December  2019,  but  not  decreed  by  the 
President  of  the  Republic,  who  returned  the  package  to  the  Parliament  for  review. 
Representatives from the ruling majority publicly committed to follow up on the guidance of 
the  Venice  Commission  Opinion  adopted  in  June  2020.  The  amendments  fall  short  of 
international  standards  and  principles  of  media  freedom  and  raise  concerns  about  increased 
censorship and self-censorship, and about possible setbacks on freedom of expression in the 
country.  Representatives  from  the  ruling  majority  publicly  committed  to  follow  up  on  the 
guidance of the Venice Commission opinion. The draft media law is currently being revised 
in light of the opinion of the Venice Commission. 

Defamation remains a criminal offence, although it does not carry prison sentence. With the 
newly  adopted  anti-defamation  package,  journalists  convicted  of  defamation  are  at  risk  of 
disproportionate fines in comparison to the average salary and standard of living in Albania.  

Albania still needs to introduce legislation to strengthen transparency in public advertising.  

Access  to  information  about  procurement  contracts,  audits  and  salaries  of  officials  should 
also  be  strengthened.  Decisions  of  the  Commissioner  on  the  Right  to  Information  are  non-
binding on public administration officials.  

Implementation of legislation/institutions  

The  Audio-visual  Media  Authority  (AMA)  is  currently  operating  with  limited  human 
resources with three out of seven vacant board member positions. In October 2019, two AMA 
board members terminated their five years mandate and in July 2019 the Parliament removed 
from office a third board member on grounds of conflict of interest. In addition, the mandate 
of the AMA Chairman terminated in November 2019. The Parliament has initiated procedures 
to fill these vacancies.  

31 

 
With regard to digital switchover process, the digital infrastructure of the public broadcaster 
(RTSH)  has  been  completed  throughout  the  country.  Meanwhile,  the  private  national 
providers continue to develop their infrastructure in the few remaining regions in the country, 
mainly  in  the  north  of  the  country.  AMA  has  announced  that  it  will  conclude  the  digital 
switchover by the end of 2020.    

Public service broadcaster  

During the reporting period, the public broadcaster, RTSH, has made progress with regard to 
an  improved  programing,  content  and  technology.  This  is  also  due  to  support  and  expertise 
provided by international donors. It remains to be seen how these improvements will translate 
into  increased  audience  share.  RTSH  has  also  completed  the  construction  of  two  DVB-T2 
digital broadcasting networks, one for its own programmes and the other for broadcasting the 
signals of national private operators. However, RTSH still needs to ensure its overall financial 
sustainability. The mandate of 11 out of 12 board members of the public broadcaster steering 
committee has expired and the Parliament has initiated the replacement process. 

Economic factors 

The market and audience concentration of the media scene in the hands of few major owners 
with strong political affiliations remains a source of concern. Due to the pressure from media 
owners  and  their  political  and  economic  interests,  many  Albanian  journalists  resort  to  self-
censorship.  Transparency  of  media  funding  remains  a  key  challenge  to  improve  media 
freedom in the country.  

Internet  

Going  against  self-regulation  practices  advocated  by  the  Commission  for  online  media,  the 
new  media  package  under  revision  by  the  Parliament  may  have  adverse  effect  on  online 
freedom  of  expression.  The  package  puts  online  outlets  under  the  obligation  to  formally 
register with AMA. Representatives from the ruling majority publicly committed to follow up 
on  the  guidance  of  the  Venice  Commission  Opinion  on  this  matter.  The  draft  media  law 
adopted  by  Parliament  is  currently  being  revised  in  light  of  the  opinion  of  the  Venice 
Commission.  

Professional organisations and working conditions  

Many Albanian journalists lack a regular work contract, social and health insurance and face 
delays in the payment of salaries. Journalists are often unwilling to report such violations of 
their  labour  rights  out  of  fear  of  losing  their  jobs  and  lack  of  faith  in  the  justice  system. 
Unions of journalists and civil society organisations are mounting pressure on the authorities 
to  properly  implement  the  Labour  Code  for  journalists,  but  institutional steps  to  ensure  this 
insufficient.  In  February  2020,  16  media  outlets  signed  a 
implementation  remain 
memorandum of understanding pledging to apply self-regulation and comply with the code of 
ethics.  

The  COVID-19  crisis  had  an  impact  on  the  media  sector,  with  several  outlets  in  Albania 
reducing their ranks due to unexpected financial constraints.  

(See also Chapter 10 - Information society and media) 

Freedom  of  assembly  and  association  are  provided  for  in  the  Constitution  and  legislative 
framework and are broadly in line with international standards. Assemblies are regulated by 
the  Law  on  Assemblies  which,  although  largely  in  line  with  the  Guidelines  on  Freedom  of 
Peaceful  Assembly  of  the  OSCE/ODIHR,  needs  to  address  the  right  to  spontaneous 
assemblies  and  counter–assemblies.  During  the  reporting  period,  freedom  of  assembly  and 
association were generally respected. However, violent actions resulting in serious injuries of 
demonstrators  and  police  officers  and  damage  to  public  buildings  have  been  registered  in  a 
number of protests and political demonstrations. 

32 

 
Issues  of  labour  and  trade  union  rights  are  further  covered  in  Chapter  19  -  Social  policy 
and employment. 

On  property  rights,  continued  progress  is  needed  towards  advancing  the  process  for 
registration, digitisation and compensation. Albania should, as a matter of priority, conclude 
first registration of the immovable properties and titles in its territory. A new law on cadastre 
was  approved  in  February  2019  and  the  newly-established  State  Cadastre  Agency  (merging 
three  existing  agencies)  became  operational  in  April  2019.  The  Law  on  the  Finalisation  of 
Transitional Ownership Processes was adopted by Parliament and entered into force in May 
2020,  taking  into  account  the  recommendations  of  the  Venice  Commission  Opinion  of 
October 2019.  

For the three years 2016-2019, following the establishment of the Agency for the Treatment 
of Property (ATP), the financial assessment of 26,091 decisions has been completed resulting 
in the recognition of the right to compensation for property worth around 818,000,000 EUR. 
The ATP has further executed 678 claims out of a total of 2,128 claims, with a financial value 
of around 47,000,000 EUR, and distributed 612.3 ha from the physical land fund. The process 
is  ongoing  for  the  remaining  1,450  claims.  In  2020,  there  are  615  cases  pending  before  the 
ECtHR, many of which are related to property and due legal process in property-related cases. 

On  non-discrimination,  the  legal  and  policy  framework  is  generally  aligned  with  EU 
standards. However, the Law on protection against discrimination needs to be improved in a 
number  of  aspects,  including  terminology  used,  the  categories  of  discrimination  to  be 
mentioned  and  procedures.  The  implementation  of  the  anti-discrimination  legal  framework 
needs to be strengthened by the provision of specialised training to judges and prosecutors. In 
2019, the CPD continued handling a stable number of cases of alleged discrimination, mostly 
in  the  areas  of  employment  and  services.  The  three  local  offices  of  the  CPD  are  fully 
operational  and  have  started  filling  complaints.  The  capacity  of  the  CPD  has  been 
strengthened with additional staff and with an increased budget.  

Laws  on  hate  speech  are  in  line  with  international  standards.  Awareness  raising  campaigns 
were  organised  across  the  country,  but  much  remains  to  be  done  to  eliminate  hate  speech, 
particularly in rural and remote areas. 

On equality between women and men, there was moderate  progress  in  the reporting period. 
The effective implementation  of the national  strategy and action plan 2016-2020 on  gender 
equality is hampered by a persistent funding gap. More efforts are required to ensure that all 
sectoral  strategies  at  central  and  local  level  are  gender  mainstreamed  and  apply  gender 
responsive budgeting. The overall Gender Equality Index for the Republic of Albania reached 
60.4  in  2017,  indicating  a  gender  gap  of  7.4  points  below  the  EU-28  average  (67.4).  The 
largest gaps to the EU-28 are in the domains of knowledge, money and time, while scores are 
similar in the domains of work and health.  

The  Law  on  Reproductive  Health  regulates  the  activities  of  public  and  private  reproductive 
health  institutions;  some  areas  are  however  missing,  for  example:  referral  mechanisms 
between  different  levels  of  care;  training  for  health  care  providers;  youth  friendly  services; 
and  outreach  to  vulnerable  groups.  The  law  also  lacks  sub-acts  on  the  delivery  of  sexuality 
education and on reproductive technologies. 

Efforts to strengthen the legislation that addresses gender-biased sex selective abortion have 
been  taken  by  the  Ministry  of  Health  and  Social  Protection.  The  practice  continues 
nonetheless.  Efforts  should  thus  be  stepped  up  to  ensure  monitoring  of  the  practice. 
Improvements  have  been  made  in  the  availability  and  accessibility  of  contraception,  for 
example,  by  introducing  family  planning  services  as  part  of  the  general  health  services 
package and by offering modern contraceptive methods free of charge. 

33 

 
Regarding gender-based violence, during the period January-December 2019, 4,629 cases of 
domestic  violence  were  identified  and  processed.  Among  these,  2,836  cases  of  domestic 
violence  were  dealt  upon  filing  the  lawsuit  “On  issuance  of  Emergency  Protection 
Order/Protection Order”. According to Article 130/a “Domestic Violence”, 1,341 cases have 
been  identified,  where  1,439  perpetrators  have  been  prosecuted,  of  whom  535  have  been 
arrested,  76  detained,  68  dismissed  and  760  perpetrators  prosecuted  while  free.  During  the 
period January-December 2019, a total  of 103 victims/ potential victims  of trafficking were 
identified, of which 80 were women and girls. 67 of the victims were minors. The monitoring 
report on the implementation of the Inter-Institutional Action Plan “For the implementation in 
Albania  of  United  Nations  Security  Council  Resolution  1325  on  “Women,  Peace  and 
Security” 2018-2020” was prepared and published for the period October 2018-October 2019.  

Several  women’s  organisations  operate  shelters  for  victims  of  domestic  violence,  but  they 
have  limited  hosting  and  financing  capacity.  Women  from  disadvantaged  and  marginalised 
groups, such as women with disabilities, LGBTI community, Roma and Egyptian women, are 
often  unaware  of  their  rights  and  how  to  access  services,  including  shelters.  Effective 
implementation  of  the  free  legal  aid  system  and  the  promotion  of  legal  awareness  and 
empowerment will be essential to ensure women’s access to justice.  

The number of local referral mechanisms for reporting gender-based violence has increased to 
52 municipalities out of 61. Efforts should however be stepped up to set up and make referral 
mechanisms  functional  in  all  municipalities.  Emergency  shelters  have  been  set  up  in  some 
municipalities of the country. These services remain mainly donor-funded. 

Data  from  the  National  Population  Survey  (INSTAT  2019)  included  a  section  on  sexual 
violence which found that 8.6% of women aged 18-74 are currently experiencing one or more 
of  the  six  types  of  sexual  harassment  measured.  The  general  findings  show  an  alarming 
situation, where 38% of  the respondents  have been exposed to  harassment  or sexual  assault 
during their lifetime. 

During  the  Universal  Periodic  Review,  May  2019,  Albania  was  recommended  to  revise  the 
definition of rape and ensure protection, rehabilitation and reintegration measures for victims 
of all forms of sexual violence and to ensure the full implementation of the Law 47/2018 “On 
Measures against Violence in Family Relations’ through development of by-laws allocation of 
sufficient  resources  and  training  of  relevant  staff  to  ensure  adequate  support  to  victims  of 
violence.   

Reports  by  CSOs  and  observers  indicate  that  vulnerable  groups  have  been  particularly 
affected by the COVID-19 crisis, especially in remote areas. A number of measures have been 
adopted  by  the  government  to  mitigate  the  effects  of  the  pandemic  and  the  subsequent 
lockdown,  so  to  ensure  outreach  to  vulnerable  persons  and  groups  at  risk.  Effectiveness  of 
action will depend also on strenghened collaboration between the central governement, local 
governance units and the civil society. 

On the rights of the child, the adoption of the Law on the Rights and Protection of the Child 
in  2018  constituted  a  major  step  in  improving  the  legal  framework  for  child  protection. 
However,  the  resources  awarded  to  the  State  Agency  on  Child  Rights  and  Protection,  both 
financial  and  human,  do  not  correspond  to  its  increased  legal  responsibilities.  The  National 
Council  on  the  Rights  and  Protection  of  the  Child  was  also  created  in  2018.  Concrete 
measures to implement child protection legislation have been planned as part of the National 
Agenda  on  Child  Rights  2017-20,  which  contains  clear  objectives  and  budgeted  activities. 
However, little action has been taken so far to implement these actions. An inter-institutional 
National Action Plan (2019-2021) for the protection of children from economic exploitation, 
including  street  children  was  approved  in  October  2019.  Currently,  there  are  236  child 
protection  workers  in  total  (56%  of  the  required  number).  A  mid-term  review  on  the 

34 

 
implementation  of 
recommendations for its implementation in 2020.  

the  agenda  was  presented 

in  September  2019  with  concrete 

There is growing evidence of child abuse and exploitation through the Internet. In July 2019, 
the  Government  adopted  measures  to  protect  children  from  access  to  illegal  and/or  harmful 
content on the Internet. However, the capacity for investigation and prosecution needs to be 
strengthened. The practice of child marriage/union is  still present  in  Albania, particularly in 
the  Roma,  Egyptian  and  rural  communities.  There  is  a  lack  of  data  and  reporting  on  child 
poverty. 

Albania  has  advanced  the  policy  framework  and  taken  steps  to  strengthen  institutional 
capacities  to  address  the  various  barriers  Albanian  children  face  in  accessing  justice.  In  the 
framework of the implementation of the Juvenile Code and Juvenile Justice Strategy 2018-
2021, necessary bylaws were approved by six Decisions of the Council of Ministers in 2019. 
With  the  aim  of  treating  juveniles  with  alternative  measures  in  multidisciplinary  social 
centres, 11 new local cooperation agreements were signed in 2019, bringing the total number 
of cooperation agreements to 18 municipalities. All these municipalities have established the 
relevant structures/multidisciplinary centres which are functional and can treat the juvenile in 
conflict  with  the  law.  The  Kavaja  Detention  Centre  for  Minors  is  to  be  transformed  into  a 
Multidisciplinary  Institute  for  Juvenile  Rehabilitation"  following  a  decision  of  April  2019. 
The number of juveniles currently in the centre is 25, of which three convicted offenders. In 
addition,  the  “Juvenile  and  Youth  Crime  Prevention  Centre”  was  established  in  May  2019. 
The  Centre  is  conceived  as  a  subordinate  mechanism  to  the  Ministry  of  Justice  which  will 
develop preventive programmes and supervise a juvenile for a six-month period after the end 
of the sentence. 

In  2019,  the  government  publicly  committed  to  progressively  reorganising  the  child  care 
system, ending child institutionalisation and ensuring a transition from institutional to family 
and  community-based  care.  Further  efforts  are  needed  to  prevent  unnecessary  separation  of 
children  and  provide  appropriate  family  and  community-based  care  where  children  are 
separated, thus reducing and eliminating the use of large-scale institutions. 

Albania’s  framework  legislation  on  the  rights  of  persons  with  disabilities  is  partially 
compliant  with  the  UN  Convention  on  the  Rights  of  Persons  with  Disabilities.  However, 
Albania  has  yet  to  ratify  the  Optional  Protocol  to  the  Convention  on  the  Rights  of  Persons 
with  Disabilities.  In  September  2019,  the  UN  Committee  on  the  Rights  of  Persons  with 
Disabilities adopted concluding observations on the report submitted by Albania, expressing 
concerns on a number of areas, such as: insufficient efforts to bringing legislation in line with 
the CPRD, the lack of a harmonised  concept  of  disability, the absence of disability-specific 
services,  the  lack  of  consultations  with  organisations  of  persons  with  disabilities  and  the 
absence  of  a  comprehensive  gender  equality  policy  and  strategy  that  addresses  the  multiple 
and intersecting forms of discrimination faced by women and girls with  disabilities.  Further 
efforts are needed, among other things, to address violence against persons with disabilities, 
improve  overall  accessibility  (including  services  and  information),  to  promote  employment 
for  persons  with  disabilities,  and  to  collect  statistical  data  on  the  situation  of  persons  with 
disabilities. 

A  number  of  pieces  of  implementing  legislation  related  to  the  2014  law  on  inclusion  and 
accessibility are still outstanding. Despite efforts to ensure inclusive education, the quality of 
education for disabled children, especially deaf children, is a cause for concern. Children with 
disabilities  are  still  placed  in  residential  care  centres.  The  number  of  assistant  teachers  for 
children with disabilities in the pre-university education system increased over the years but 
the number and qualifications are not yet sufficient to meet the needs. In some municipalities, 

35 

 
more  than  65%4  of  children  with  disabilities  are  not  included  in  the  education  system. 
Monitoring of how disability-related measures are being implemented is hampered by a lack 
of data.  

Albania's  legislation  prohibits  discrimination  against  lesbian,  gay,  bisexual,  transgender 
and intersex (LGBTI) persons. However, more efforts are needed to protect LGBTI persons 
from  discrimination  when  it  comes  to  access  to  health  care,  education,  justice,  employment 
and housing. The national action plan for LGBTI persons, which comes to end in 2020, did 
not produce visible results, partially due to the lack of financial resources. An inter-ministerial 
team responsible for monitoring the action plan is operational and held its last meeting in May 
2019.  Police  officers,  prosecutors  and  gender  ‘focal  points’  in  line  ministries  have  received 
training on preventing discrimination on the basis of sexual  orientation and gender identity. 
The  shelter  for  LGBTI  persons  has  continued  to  provide  care,  support  and  advocacy  to 
homeless  LGBTI  individuals.  For  the  first  time,  the  shelter  received  state  funds  in  2019. 
However, it remains heavily dependent on donors' support. Public awareness and acceptance 
of  LGBTI  persons  remain  low,  particularly  in  rural  areas.  Hate  speech  and  discriminatory 
language  continue  to  be  a  problem  in  the  media,  especially  online  media.  Violence  and 
discrimination  against  members  of  the  trans  community  is  a  worrying  phenomenon  in  the 
country.  A  number  of  initiatives  and  awareness  raising  events  were  organised  during  the 
celebrations  of  the  IDAHOT  week.  In  2019,  the  8th  Tirana  Pride  was  attended  by  many 
government officials, CSOs, families and LGBT supporters, and the first Tirana Dyke March 
took  place. During the 2020  IDAHOT celebrations, the 9th Tirana Pride was replaced by an 
online  event,  called  "Pride  On",  which  gathered  support  from  the  LGBTI  community,  civil 
society, as well as government representatives and international organisations. 

On  procedural  rights,  following  the  adoption  of  the  new  scheme  on  free  legal  aid,  a  New 
Directorate has been set up at the Ministry of Justice to administer the free legal system. Six 
centres providing first legal aid services have been opened across the country since October 
2019.  Further  efforts  are  necessary  regarding  awareness  rising,  monitoring  and  reporting  of 
progress in the implementation of the rights enshrined in the procedural codes following the 
justice  reform.  The  legal  aids  scheme  should  further  progress  towards  design  and 
implementation of outreach mechanism to all related groups.  

Following  the  adoption  of  the  framework  Law  on  the  Protection  of  National  Minorities, 
Albania has adopted seven by-laws related to its implementation. Four of those were adopted 
in  2019.  The  remaining  five  by-laws,  including  on  self-identification,  use  of  minority 
languages  and  education  in  minority  languages  remain  to  be  adopted.  The  government’s 
Action Plan on European Integration outlines the measures and next steps to be taken to adopt 
the remaining five by laws in 2020. Two of them are currently in public consultation. These 
steps are necessary to ensure implementation of all the principles and rights enshrined in the 
framework law, including the right to free self-identification, the use of minority languages, 
and  the  right  to  education  in  minority  languages.  The  implementation  of  all  the  secondary 
legislation  will  require  strengthening  the  capacity  of  the  State  Committee  on  National 
Minorities  and  providing  sufficient  financial  resources.  The  Census  Law  covering  the 

4 The Regional Education Directorate (RED) data from the 10 municipalities where work efforts were made for 
drafting  of  the  local  plans,  showed  that  children  with  disabilities,  to  a  considerable  extent,  are  still  out  of  the 
education  system. In ten  municipalities, only 1,255 children  with disabilities,  that  have  obtained an attestation 
from the Medical Commission for Work Capacity Assessment, are enrolled in regular schools and kindergartens. 
The  level of involvement varies from one  area to another,  so in Lezha Municipality, 60% (n=165) of children 
with  disabilities of school age, are not part of the educational system.  Also in the Municipality of Vlora, 65% 
(n=173) children with disabilities, are not yet part of the education system. Children with disabilities, especially 
children  with  a  higher  degree  of  disability  or  those  with  multiple  disabilities,  experience  major  obstacles  in 
regard to access to schools.  

36 

 
                                                           
Population  and  Housing  Census  of  2020,  should  be  adopted.  Concerns  have  been  raised  by 
the Greek minority in relation to property rights in the southern coastal region. 

The implementation of the 2016-2020 national  action plan for the integration of  Roma and 
Egyptians reached its final year of implementation, however with limited progress.  

Preparation of the next one, in an inclusive manner, should start well on time to be adopted 
before the end of the year. The Declaration of Western Balkans Partners on Roma Integration 
within the EU Enlargement  Process  (Poznan Declaration)  was endorsed by  the  government. 
The structure of the Ministry of Health and Social Protection, in charge of the coordination of 
Roma-related policies, needs to be strengthened. The overall trend regarding the participation 
of Roma and Egyptians children in the education system has remained positive, with 14 515 
students in the pre-university education system and 2 996 children in kindergartens. However, 
the  gap  between  Roma/Egyptians  and  other  non-Roma  children  living  in  the  same  areas 
remains significant. Roma children continue to benefit from free textbooks and transportation 
to  remote  schools.  Segregation  in  schools  remains  an  issue  that  should  be  systematically 
addressed. The overall employment and labour force participation of Roma remains very low. 
Albania faces difficulties to ensure sustainable employment for Roma and Egyptians. One of 
the reasons for low employment levels is the fact that 94% of registered Roma with the labour 
offices  have  only  compulsory  education  or  less  which  causes  that  not  many  of  those 
completing  different  employment  promotion  programmes  become  employed.  This  indicates 
that  the  employment  programmes  do  not  sufficiently  increase  capacities  of  the  participating 
individuals. There is a need to review the national employment approach since it has not been 
producing the expected results. Health insurance coverage for Roma in Albania remains low 
and gaps persist between Roma and the majority population.      

Regarding  the  implementation  of  the  Law  on  Social  Housing,  Roma  and  Egyptians  are 
already benefitting from the 5% quota foreseen by the law. However, most of the secondary 
legislation  still  remains  to  be  adopted.  Out  of  the  40  sub-legal  acts  required  to  ensure  full 
implementation of the law, 23 Council of Minister’s Decisions were developed, out of which 
nine were approved following a wide consultation process. Regarding the implementation of 
investment  projects  (to  improve  housing,  infrastructure,  water  supply  and  sanitation),  about 
30%  of  beneficiaries  of  the  projects  put  in  place  in  2019  were  for  Roma  and  Egyptian 
families, while concerning the rent subsidy and lump sum subsidy programmes, 19% of them 
addressed members of the Roma and Egyptian communities. Anti-gypsyism and hate speech 
remain  issues  that  should  be  systematically  addressed  in  Albania  within  the  wider  society, 
equality bodies and government structures and systems. The Declaration of Western Balkans 
Partners on Roma Integration within the EU Enlargement Process (Poznan Declaration) was 
endorsed  by  the  government.  The  mapping  of  Roma  houses  has  started;  preparations  have 
also started for a Ministerial meeting in Tirana on achievements and deliverables for the next 
Prime  Ministers  Summit  in  October  2020.  The  Roma  Seminar  conclusions  are  yet  to  be 
implemented. 

On citizenship rights, in July 2020, the Parliament adopted a new Law on Citizenship, which 
includes  provisions  that  may  lead  to  the  establishment  of  an  investors’  citizenship  scheme. 
Such  schemes  pose  risks  as  regards  security,  money  laundering,  tax  evasion,  terrorist 
financing,  corruption  and  infiltration  by  organised  crime.  As  a  candidate  country,  Albania 
should refrain from any measure that could jeopardise attainment of the EU's objectives, when 
using its prerogatives to award nationality. 

2.2.2.  Chapter 24: Justice, freedom and security 
The  EU  has  common  rules  for  border  control,  visas,  residence  and  work  permits,  external 
migration and asylum. Schengen cooperation entails lifting border controls inside the EU. EU 

37 

 
 
Member  States  also  cooperate  with  Albania  in  the  fight  against  organised  crime  and 
terrorism, and in judicial, police and custom matters and are supported by the EU Justice and 
Home Affairs Agencies. 

Albania  has  some  level  of  preparation/is  moderately  prepared  to  implement  the  EU 
acquis  in  this  area.  Some  progress  was  made  by  improving  the  institutional  capacity  on 
border management, asylum, countering terrorism and violent extremism. Albania is the only 
country in the region to have established working agreements with all EU justice and home 
affairs  agencies.  Reception  capacity  to  deal  with  mixed  migration  flows  was  further 
improved and remained sufficient to accommodate the increased number of arrivals. Efforts 
are needed to strengthen financial investigations and the fight against money laundering. The 
issue of unfounded asylum applications lodged by Albanian nationals in EU Member States 
and Schengen-associated countries requires continuous and sustained efforts. Albania should 
keep addressing the phenomenon of unaccompanied minors. Financial investigations are not 
yet systematically conducted in parallel with criminal proceedings.  

In the coming year, Albania should in particular: 

  continue to  develop  the systematic use of parallel  financial investigations when dealing 

with organised crime, illicit trafficking, terrorism, and money laundering;  

  keep implementing swiftly the action plan agreed with the Financial Action Task Force 

on preventing money laundering and countering terrorism financing; 

  further  step  up  measures  to  address  effectively  the  issue  of  unfounded  asylum 
applications,  including  through  addressing  its  underlying  reasons,  improving  border 
checks  and  organising  further  information  campaigns  on  the  rights  and  obligations  of 
visa-free  travel.  Relevant  cooperation  and  dialogue  with  the  most  affected  EU  Member 
States should be continued. 

Fight against organised crime 

The country has some level of preparation in implementing the EU acquis in this area. Good 
progress  was  made  in  meeting  last  year’s  recommendations.  Further  tangible  results  were 
achieved  in  the  fight  against  organised  crime,  including  through  cooperation  with  EU 
Members  States,  and  through  the  action  plan  to  address  the  FATF  recommendations,  thus 
meeting the condition for the first IGC. Police operations to dismantle criminal organisations 
have  further  intensified.  Albania  has  continued  to  show  strong  commitment  to  counter  the 
production and trafficking of drugs. Albania allowed airborne monitoring by an EU Member 
State  (aerial  surveys  by  the  Italian  Guardia  di  Finanza,  co-financed  by  the  EU).  Police 
cooperation with EU Member States and Europol further intensified, leading to a number of 
successful large-scale law enforcement operations and the arrest of organised criminal group 
leaders.  Cooperation  between  police  and  prosecutors  further  intensified.  The  Special 
Prosecution's Office was established and provided with a set of important investigative tools. 
Efforts need to continue to ensure increased prosecutions and final convictions. More efforts 
are needed to tackle money laundering and confiscate assets stemming from crime and other 
unjustified wealth. 

In the coming year, Albania should in particular: 

  keep strengthening the fight against organised crime, including through cooperation with 

EU Member States, as well as Europol;  

  adopt  a  new  strategy  and  action  plan  on  drugs,  fill-in  the  legislative  gap  on  drug 

precursors, and intensify the fight against drug trafficking; 

38 

 
  adopt  a  cybercrime  strategy  and  establish  a  more  effective  law-enforcement  response 
focusing on the detection, traceability and prosecution of cyber criminals and address the 
growing  phenomenon of pedo-pornography online. 

Institutional set-up and legal alignment 

There  are  11,058  officers  in  the  ASP,  equivalent  to  247  officers  per  100,000  inhabitants, 
compared  with  an  EU  average  of  326  (Eurostat,  2017).  Some  100  additional  officers  were 
recruited  in  2019.  The  ASP  suffers  from  staff  frequent  rotation,  affecting  its  operational 
capacity. 

The ASP needs to be reorganised, following the establishment of the SPO and the transfer of 
some  of  the  Serious  Crime  Prosecution  Office’s  competences  to  local  prosecution  offices. 
Local judicial police officers need training to investigate new criminal, in particular financial 
and money laundering, offences. The ‘power of law’ action plan was operational throughout 
2019 and benefited from efficient cooperation between the ASP and the General Prosecution 
Office.  Law  enforcement  was  more  proactive  and  there  was  a  greater  capacity  to  conduct 
parallel  financial investigations. The SPO was  established in  December  2019 and took  over 
organised  crime  and  high-level  corruption  files  from  the  Serious  Crime  Prosecution  Office. 
The  Chief  Special  Prosecutor  is  currently  backed  by  twelve  special  prosecutors  and  two 
seconded  special  prosecutors.  The  support  staff  comprises  25  employees  on  temporary 
transfer  from  the  Serious  Crime  Prosecution  Office  pending  the  vetting  and  appointment  of 
permanent  support  staff.  Albania  should  provide  the  relevant  institutions  with  adequate 
resources and stability in order to ensure continuity in the fight against organised crime.  

Following amendment of the Law on re-evaluating (vetting) officers of the ASP, Republican 
Guard and SIAC at the Ministry of the Interior, the External Evaluation Commission (EEC) 
held  its  first  hearing  in  November  2019.  Evaluation  is  based  on  personal  integrity, 
professional  capacity  and  verification  of  officers’  assets.  By  June  2020,  21  of  300  high 
ranking officials had been vetted, of whom 13 had been confirmed in duty. Two had resigned 
before  a  hearing  took  place  and  five  are  awaiting  an  EEC  decision.  Due  to  the  COVID-19 
pandemic, hearings were suspended in March and resumed on 21 May 2020. 

The legal framework was further aligned with the EU acquis. In particular, the criminal code 
was  amended  to  align  further  with  the  EU  acquis,  including  on  environmental  crimes.  In 
December 2019, Albania adopted additional measures to prevent trafficking in human beings, 
notably  by  increasing  ASP  screening  of  minors  leaving  the  country.  In  January  2020,  it 
adopted a special package introducing temporary preventive measures to enhance its capacity 
to fight organised crime and terrorism (referred to as the anti “grab-what-you-can” package, 
or  “KÇK”).  The  measures  include  the  possibility  of  targeting  assets  through  seizure  and 
confiscation,  limiting  the  movements  of  suspected  criminals,  and  restricting  their  economic 
activities.  The  package  put  a  set  of  important  new  investigative  tools  at  the  disposal  of  the 
new  SPO  and  provides  for  amendments  to  the  anti-mafia  law,  ASP  law,  the  law  on  the 
administration  of  seized  assets,  the  criminal  code  and  the  criminal  procedural  code. 
Amendments to the law on administration of seized and confiscated assets have already been 
adopted, while the others are in parliamentary procedure.   

Albania now has a robust legal framework for confiscating criminal proceeds. The new Law 
on the administration of seized and confiscated assets, adopted in July 2019, provides for an 
asset recovery office to be set up, in line with the EU acquis. However, this has not yet been 
done.  Albania  should  establish  or  designate  an  office  in  charge  of  identifying  and  tracking 
criminal  assets,  as  provided  for  in  the  recently  adopted  legislation  and  in  line  with  the  EU 
acquis. 

Albania  has  yet  to  adopt  legislation  targeting  unjustified  wealth,  e.g.  as  regards  the 
introduction  of  the  concept  of  extended  confiscation  and  of  legal  financial  ceilings  in  cash 

39 

 
transactions;  the  admissibility  of  ‘suspicious  transactions  reports’  as  evidence  in  court;  and 
the  establishment  of  a  central  registry  of  bank  accounts.  The  Law  on  weapons  is  partially 
aligned  with  EU  provisions.  Albania  has  yet  to  harmonise  its  legislation  with  the  latest  EU 
acquis developments in this area.  

As  regards  the  strategic  framework,  Albania  has  a  cross-cutting  (2017-2020)  strategy  on 
organised crime, illicit trafficking and terrorism. It also has an action plan on the fight against 
organised crime (the ‘power of law’ action plan) and a strategy (2018-2020) and action plan 
on the fight against trafficking in human beings.  

Implementation and enforcement capacity 

In the fight against organised crime, Albania’s track record showed a steady increase in the 
number of new cases referred to prosecution, from 53 in 2018 to 79 in 2019. There were 13 
indictments  for  organised  crime  in  2019  (as  compared  with  five  in  2018).  There  were  20 
convictions at appeal level in 2018, and one in 2019. In addition, nine people were convicted 
at  first  instance  in  2019.  In  the  first  semester  of  2020,  the  number  of  new  cases  related  to 
criminal  organisations  and structured criminal  groups referred to  prosecution was 23. There 
were ten indictments for organised crime, six final convictions and one at first instance.  

As  regards  serious  crimes,  1,804  new  cases  on  trafficking  in  human  beings,  money 
laundering, and drugs production and trafficking were referred to the prosecution in 2018 (22, 
1,524  and  258  respectively)  and  a  similar  number  in  2019  (1,805  cases,  25,  1,548  and  232 
respectively).  Of  the  total  referrals  for  serious  crimes,  551  cases  resulted  in  indictments  in 
2018  and  507  in  2019.  As  for  final  convictions,  there  were  698  in  2018  and  308  in  2019. 
Narcotics-related cases accounted for 68.9% of the total in 2018 and 68% in 2019, followed 
by  money  laundering,  trafficking  in  vehicles,  money  counterfeiting  and  forgery,  and 
trafficking  in  human  beings.  In  the  first  semester  of  2020,  17  new  cases  on  trafficking  in 
human beings were referred to the prosecution, 126 on money laundering and 587 on drugs 
production  and  trafficking.  Of  the  total  number  of  referrals  on  trafficking  in  human  beings, 
money  laundering,  and  drugs  trafficking,  141  cases  resulted  in  indictments.  As  for  final 
convictions, there were two for trafficking in human beings, four on money laundering, and 
30 for drug production and trafficking.  

In June, the Anti-corruption and Organised Crime Court of Appeals overturned the ruling of 
the  first  instance  court  that  had  convicted  former  Interior  Minister,  on  account  of  abuse  of 
office, to three  years and four months on probation as well three-year ban from  running for 
public office. The case is expected to be retried.  

In October, the Serious Crimes Appeal Court upheld a first-instance court ruling sentencing 
the  head  of  a  transnational  drug-trafficking  gang  to  15  years  in  prison  (reduced  to  10  years 
through  abbreviated  proceedings)  for  establishing  a  structured  criminal  group,  trafficking 
narcotics, failing to declare assets and laundering money. 

Following  the  adoption  of  temporary  measures  to  prevent  crime  (anti  “grab-what-you-can” 
package),  the  ASP  new  ‘Power  of  Law  Operation’  Unit  seized  over  174  criminal  assets 
belonging to organised crime’s suspects. Since the entry into force of the temporary measures 
until  mid-June  2020,  84  organised  crime  cases  were  reported  to  the  SPO  that  involved 
seizures of assets. Since its establishment in December 2019, the SPO has taken over from the 
Serious  Crimes  Prosecution  office  215  criminal  proceedings  (167  investigations  are  still 
ongoing  under,  48  have  been  concluded).  The  SPO  has  also  taken  over  financial 
investigations under the 2009 anti-mafia law and conducted verifications on asset seizures.   

In June 2019, the ASP created a Fugitive Active Search Team for the most wanted national 
and international criminals. The unit is fully operational.  

40 

 
Albania  has  taken  further  steps  to  strengthen  international  police  cooperation.  Albania 
participates  in  Europol’s  operational  analysis  projects  (APs)  for  the  prevention  and 
combatting  of  crimes  involving  ethnic  Albanian  criminal  groups  and  associated  organised 
crime  groups.  Albania  also  participates  in  APs  regarding  cybercrime,  environmental  crime, 
organised  property  crime,  terrorism,  migrant  smuggling,  trafficking  in  human  beings, 
weapons and explosives. A Europol liaison officer was deployed to Tirana in June 2019. The 
Europol Liaison Office to Albania, officially opened in July, was the first to operate from the 
Western  Balkan  region.  The  liaison  officer  has  helped  to  strengthen  cooperation  between 
Albania and EU Member States’ police forces in the fight against organised crime, including 
drug  trafficking,  and  to  enhance  the  police’s  capacity  to  assess  the  main  organised  crime 
threats. Since the beginning of the deployment, Albania has increasingly shared information 
with  Europol.  Albania  joined  the  informal  Anti-Money  Laundering  Operational  Network  in 
2019, and became a strategic partner on ‘organised property crime’, one of Europol’s priority 
crime  areas,  and  a  priority  under  the  2018-2021  EU’s  Policy  Cycle/EMPACT  (European 
Multidisciplinary Platform against Criminal Threats) policy cycle. Albania has not published 
a national serious and organised crime threat assessment in recent years, but should do so on a 
regular basis so as to have a reliable picture of the threats it faces and decide on operational 
measures to address them. The number and quality of messages exchanged through the secure 
information exchange network application (SIENA) has improved significantly since the end 
of  2019.  Albanian  law  enforcement  agencies  should  make  full  use  of  the  operational 
agreement with Europol, including through more proactive and timely information exchange 
through  SIENA,  and  make  more  use  of  joint  investigation  teams  to  conduct  investigations 
with EU counterparts.  

Albania  has  yet  to  step  up  the  use  of  special  investigation  techniques  and  proactive 
investigations.  There  have  been  positive  developments  in  its  cooperation  with  Interpol,  in 
terms  of  information  exchanged  and  operations  to  execute  extradition  arrest  warrants.  The 
Albanian Security Academy cooperated with the EU Agency for Law Enforcement Training 
(CEPOL)  and  other  international  agencies  and  academies.  A  Working  Agreement  with 
CEPOL has been in force since 2013.  

On domestic operational capacity, legal and institutional reforms strengthened the capacities 
of the ASP’s Operational Directorate, which is responsible for special investigative measures 
throughout  the  country.  Law  enforcement  authorities’  response  to  organised  crime,  notably 
the  investigation  of  large  criminal  networks,  needs  to  be  more  proactive  and  systematic. 
Special  task  force  police  and  prosecutors  have  access  to  40  national  registers,  but  they  still 
lack direct access to the electronic register of mobile phone subscribers and IP addresses from 
internet  service  providers.  Steps  have  been  taken  to  improve  cooperation  and  mutual  trust 
between  police,  prosecutors  and  other  relevant  agencies  and  bodies  such  as  the  Financial 
Intelligence  Unit,  tax  office,  customs  and  HIDAACI  in  the  detection  and  investigation  of 
complex criminal cases. This has produced some operational results.  

Financial investigations are not systematically accompanying criminal proceedings from the 
start, and their effectiveness remains limited. Police and prosecutors should be given further 
training  to  improve  their  financial  investigation  techniques.  Some  progress  was  made  on 
seizures  and  the  confiscation  of  criminal  assets.  Albania  reported  estimated  seizures  of 
criminal assets and property  worth about  EUR 20 million under the anti-mafia law in 2019, 
against  about  EUR  7  million  in  2018.  Assets  worth  about  EUR  870,000  (estimated)  were 
confiscated in criminal proceedings under the same law, compared to only about EUR 26,600 
in 2018.  

There  is  no  strategic  or  systematic  approach  to  identifying  and  confiscating  criminal  assets 
located  abroad  or  not  reachable.  In  addition  to  the  tools  for  freezing,  managing  and 
confiscating  criminal  assets  under  the  anti-mafia  law,  Albania  should  adopt  and  implement 
rules on the extended confiscation and precautionary freezing of assets. It should also urgently 

41 

 
improve its capacity to manage frozen or confiscated assets so that they do not lose economic 
value.  

Albania  is  a  source,  transit  and  destination  country  for  trafficking  in  human  beings. 
Albanian women and children are subject to trafficking for sexual and labour exploitation to 
neighbouring  countries  and  EU  Member  States.  The  Prosecutor’s  Office  registered  22  new 
criminal proceedings for trafficking in 2018 and 25 in 2019. The number of cases with final 
convictions  remained  very  low  (three  cases  with  three  final  convictions  in  2018  and  three 
cases  with  five  final  convictions  in  2019).  The  national  referral  mechanism  for  (potential) 
victims  of  trafficking  is  fully  functional.  In  2019,  92  victims  were  identified  and  assisted, 
compared  with  95  in  2018.  Police  and  prosecutors  cooperated  more  effectively  on 
investigations  and  administrative  procedures  were  simplified.  NGO-run  shelters  remain 
underfunded. Victim-centred investigations and prosecutions are not conducted consistently. 
Albania  should  increase  efforts  on  the  early  identification  of  victims  and  potential  victims; 
intensify cross-border cooperation with neighbouring countries and international cooperation; 
and contribute to the successful reintegration of victims. It should pay particular attention to 
unaccompanied  children  and  child  victims  of  trafficking,  and  provide  them  with  adequate 
protection.  The  improved  legislative  framework  for  victims,  including  amendments  to  the 
Criminal Procedural Code, has yet to be implemented.  

On illicit trafficking on firearms, large numbers of firearms are available in Albania. These 
are  used  by  Albanian  criminal  groups  and  trafficked,  primarily  to  neighbouring  countries. 
Albania  is  both  a  destination  and  a  transit  country  for  light  firearms.  There  were  14  new 
criminal  cases  registered  at  the  Prosecutor’s  Office  in  2018  and  12  in  2019,  resulting  in  35 
final  convictions  in  2018  and  16  in  2019.  Albania  actively  participated  in  EU  Policy 
Cycle/EMPACT operational action plan on firearms. It adopted an action plan 2019-2021 on 
small  arms  and  light  weapons  and  explosives  control  and  appointed  a  firearms  focal  point. 
Albania  should  appoint  a  National  EMPACT  Coordinator.  It  should  adopt  standard 
procedures and mechanisms to counter the illicit trade of small arms and light weapons by air. 

On  cybercrime  and  internet  fraud,  in  2019,  47  criminal  offences  were  referred  to  the 
Prosecutor  Office  in  the  area  of  cybercrime,  compared  with  60  in  2018.  There  were  three 
convictions  at  first  instance  level  in  2018  and  three  in  2019.  Albania  has  not  yet  adopted  a 
cybercrime strategy, and should establish a more effective law enforcement response focusing 
on the detection, traceability and prosecution of  cyber criminals.  The 24/7  points of contact 
network  established  by  the  Council  of  Europe  Convention  on  Cybercrime  is  underused. 
Albania should raise awareness among the prosecutors to enhance the use of this network. It 
should swiftly tackle the growing phenomenon of online child pornography. In particular, it 
should  adopt  the  necessary  legislative  amendments  to  criminalise  all  forms  of  online  child 
sexual abuse. The ASP should increase its capacity to deal with such cases.  

Albania  has  a  large  informal  sector  and  its  economy  is  primarily  cash-based.  Crimes  that 
generate large amounts of money include drug trafficking, tax evasion, smuggling and human 
trafficking. As regards money laundering, the Parliament adopted a ‘Moneyval package’ in 
June  2019  to  address  the  recommendations  of  the  December  2018  Moneyval  report.  The 
package included amendments to four laws (on tax procedure, business registration, terrorism 
financing and the prevention of money laundering/terrorism financing), and the new law on 
the administration of confiscated  assets.  In  February 2020, the  Financial  Action Task  Force 
(FATF) placed Albania in the list of jurisdictions under increased monitoring. A FATF action 
plan  contains  actions  to  be  implemented  by  October  2021  to  allow  Albania  to  be  removed 
from  that  list.  Albania  has  made  a  high-level  political  commitment  to  implement  the  FATF 
action  plan,  covering  inter  alia  the  identification  of  money-laundering  risks,  mutual  legal 
assistance, the transparency of beneficial ownership,  prosecution and confiscation measures. 
The government has set up a working group chaired by the deputy prime minister to steer the 
necessary  reforms  at  political  level.  The  implementation  of  the  measures  identified  in  the 

42 

 
FATF action plan has started despite the COVID-19 pandemic, in particular by conducting a 
risk  analysis  regarding  banking  products  and  service  and  the  misuse  of  legal  entities.  The 
Albanian government has notified to the European Commission its commitment to align as a 
priority  with  the  body  of  EU  acquis  on  anti-money  laundering,  notably  by  developing  the 
legal  basis for the  establishment  of the beneficial  ownership  registry and  a centralised bank 
account register. The law on establishing a beneficial ownership registry was adopted in July 
2020. 

In  2019,  232  cases  of  money  laundering  were  referred  to  prosecutors,  against  257  in  2018. 
The  number  of  cases  with  final  convictions  for  money  laundering  remains  low  (10  in  2018 
and 8 in 2019).  

The ASP’s witness protection programme has worked satisfactorily. In 2019, it implemented 
20 witness protection operations, three more than in 2018. 

Proactively  fighting  organised  crime  and  corruption  remains  fundamental  to  countering 
criminal infiltration of the political, legal and economic systems. 

Cooperation in the fight against drugs 

Institutional set-up and legal alignment 

The  Ministry  of  the  Interior  and  the  Ministry  of  Health  and  Social  Protection/Institute  of 
Public  Health  are  the  main  lead  bodies  in  the  fight  against  drug  trafficking  and  drug  abuse 
respectively. Albania has not yet set up a national drug observatory or developed a functional 
early warning system on new psychoactive substances. The 1995 Law on narcotic drugs and 
psychotropic substances should be amended and the list of prohibited psychoactive substances 
updated in order to provide a legal framework to investigate and prosecute in relation to such 
substances.  A  new  national  drug  control  plan  (2019-2023)  and  action  plan  still  need  to  be 
adopted. The government has indicated its intention to propose a law for allowing the use of 
cannabis for medical purposes only. The 1961 Single Convention on Narcotic Drugs to which 
Albania is party sets strict requirements to control the production and regulate the supply of 
cannabis for medical use as well as to prevent its diversion to non-medical use. 

Implementation and enforcement capacity 

On  Albania’s  track  record,  in  2019  the  police  referred  1,989  cases  of  drug  production, 
cultivation and trafficking to prosecutors, involving 2,704 alleged offenders. This represents a 
slight  increase  compared  with  2018  (1,907  new  cases  referred  involving  2,357  possible 
offenders).  Of  the  1,989  cases,  1,548  (78%)  were  registered  by  the  prosecutors.  485  cases 
resulted  in  indictments.  290  offenders  received  final  convictions  at  appeal  level,  in 
comparison with 685 in 2018. As in 2018, none of the cases referred to prosecutors concerned 
the production and manufacture of narcotic and psychotropic substances. 

The  Albanian  authorities  further  consolidated  their  fight  against  cannabis  cultivation  and 
trafficking.  Increased  cooperation  with  EU  Member  States’  law  enforcement  authorities 
brought tangible results. Joint investigation teams, notably with  Italy, helped to identify  and 
prosecute  criminal  organisations  at  the  core  of  narcotics  trafficking  operations,  including 
those carried out by sea. The authorities assisted the Italian Ministry of Interior, Department 
of  Public  Security  and  the  Italian  Guardia  di  Finanza  in  the  seizure  of  speedboats  with 
cannabis heading from  Albania to  Italy. In June 2020, in an international operation with the 
Italian police, 37 people suspected of being part of an international drug trafficking ring were 
arrested. The police seized 3.5 tons of marijuana, cocaine and hashish, for an economic value 
of EUR 40 million. In March 2020, the ASP seized 613 kg of cannabis ready to be shipped to 
Italy.  Two  individuals  were  arrested.  In  February  and  March,  the  Albanian  authorities 
participated  in  several  successful  operations  with  Italian  law  enforcement  agencies  (in 
coordination with agencies from other Member States, including the Netherlands) in the fight 

43 

 
against  international  drug  trafficking.  One  operation  with  the  Italians  led,  inter  alia,  to  the 
seizure  of  450 kg  of  cannabis.  In  February  2020,  the  ASP  launched  a  large  operation 
involving  2,225  police  officers  to  prevent  the  cultivation  of  cannabis.  Searches  were 
conducted  in  greenhouses,  tunnels,  former  military  bases,  abandoned  dwellings,  and 
warehouses suspected of being used for cannabis cultivation.  

In August 2019, a major police operation in remote areas of Kruja resulted in 19 arrests for 
drug  cultivation.  Albania  is  the  only  country  in  the  region  that  allows  very  intrusive 
monitoring by another country: since 2013, Italy’s Ministry of Interior, Department of Public 
Security (with EU co-financing) has carried out aerial surveys to detect and monitor cannabis 
plantations  in  Albania.  The  results  of  the  airborne-remote  sensing  campaign  for  2019  show 
increases in the numbers of cannabis plantations identified and narcotic plants eradicated and 
destroyed.  In  all,  90,175  plants  were  destroyed,  compared  to  35,985  in  2018.  The  number 
remains at a negligible level compared with 2016, when 753,468 plants were destroyed.  

The quantity of cannabis seized in Albania fell from about 20 t in 2018 to 6.3 t in 2019, and 
from 3.8 tonnes in the period January-March 2019 to one tonne in the same period of 2020. 
Seizures  of  cannabis  oil  decreased  from  51.7 l  to  1 l.  There  was  a  substantial  increase  in 
hashish seizures (from 363.5 kg to over 1 t). No hashish was seized in the first three months 
of 2020. 

The lack of secure storage for drugs and drug precursors prior to destruction remains an issue 
of  concern.  The  practice  of  keeping  only  a  small  sample  as  material  evidence  for  court 
proceedings  (instead  of  the  entire  quantity  seized)  has  not  yet  taken  root.  Albania  should 
establish an appropriate process for the destruction of precursors.  

Albania carried out large scale law enforcement operations in relation to cocaine and heroin, 
some  in  cooperation  with  police  authorities  from  neighbouring  countries.  Overall,  cocaine 
seizures  fell  from  almost  630.5 kg  in  2018  (of  which  613.4 kg  detected  in  Durres  in  a  ship 
coming from Colombia) to 145 kg in 2019 (of which 137 kg in a single operation in the port 
of Durres). In September 2020, a 5-year long investigation led by  Italy, in cooperation with 
other  States,  including  Albania,  culminated  in  20  arrests  and  pre-trial  detentions  throughout 
Europe,  and  dismantling  of  one  of  Europe’s  most  active  networks  trafficking  cocaine  into 
Europe.  In  February  2020,  Albania  supported  to  the  Guardia  di  Finanza  in  the  seizure  of 
1.128 t  of  cocaine.  In  January  2020,  in  cooperation  with  the  Greek  authorities,  1.18 t  of 
cocaine  originating  in  the  Caribbean  and  destined  for  Europe  and  northwest  Africa  were 
seized in Greece. In September 2019, Albanian law enforcement authorities seized 137 kg of 
cocaine in the port of Durres, hidden in containers from Ecuador. The operation was carried 
out  in  cooperation  with  the  Greek  and  US  authorities.  Two  members  of  the  port’s  security 
staff were arrested. Heroin seizures increased from almost 24 kg in 2018 to 38 kg 2019 (about 
58%  more),  partly  thanks  to  more  thorough  police  inspections  and  increased  international 
cooperation.  

Cooperation continued with the European Monitoring Centre for Drugs and Drug Addiction. 
In  March  2019,  Albania  signed  a  working  arrangement  with  the  Centre,  which  gives  the 
Albanian  authorities  access  to  crucial  expertise  and  supports  further  approximation  of 
Albanian law and policies on drug-related issues with those of the EU.  

Fight against terrorism 

Institutional set-up and legal alignment 

Albania has a comprehensive legal framework for preventing and combatting the financing 
of terrorism and is fairly advanced in aligning with the main building blocks of the EU acquis 
on  the  fight  against  terrorism.  It  is  a  party  to  all  Council  of  Europe  counter-terrorism 
conventions, including  those covering  the seizure and  confiscation of the proceeds of crime 
and  the  financing  of  terrorism.  In  2019,  it  strengthened  its  legal  framework  with  legislative 

44 

 
amendments  to  implement  the  UN  Security  Council  sanctions  resolutions.  The  authorities 
should now ensure effective implementation of targeted financial sanctions by enhancing the 
involvement  of  financial  institutions  and  other  relevant  actors  and  through  effective 
inspections, in line with the FATF action plan. A Financial Investigation Unit was set up in 
the ASP’s Counter-Terrorism Directorate. The work on terrorism financing in the NGO sector 
has started with a risk assessment of all NGOs by the general tax authority, and now needs to 
be taken up by other services. So far, Albania has neither established a central bank account 
register  nor  a  beneficial  ownership  register.  Albania  has  national  strategies  on  countering 
terrorism  and  violent  extremism.  In  October  2019,  it  signed  an  agreement  with  the  EU  on 
implementing the 2019-2020 Joint Action Plan on counter-terrorism for the Western Balkans. 
In June 2020, it submitted its first interim report on the implementation of the arrangement. 
The report indicates areas where good progress has been made, especially on cooperation with 
Europol. 

The  ASP’s  Counter-Terrorism  Directorate  is  the  lead  body  on  counter-terrorism.  Other 
agencies active in the field are the State Intelligence Service and the Defence Intelligence and 
Security  Agency.  In  addition,  the  ASP’s  community  policing  personnel  are  involved  in 
preventing  and  countering  radicalisation  leading  to  violent  extremism  and  terrorism.  The 
Coordination Centre for Countering Violent Extremism (CVE), headed by the national CVE 
coordinator,  is  fully  operational  and  charged  with  capacity-building,  coordinating  CVE 
activities  across  government  institutions  and  overseeing  the  implementation  of  the  national 
CVE strategy.  

Implementation and enforcement capacity 

In 2019, there were 16 investigations into allegations of terrorist activity, against 12 in 2018; 
in  neither  years,  did  the  investigations  result  in  convictions.  An  estimated  81  Albanian 
nationals  remain  in  Syria,  45  returned  to  Albania  and  28  are  believed  to  have  died  in  the 
conflict  zone.  No  Albanians  left  for  Syria  in  2019.  The  authorities  have  sought  to  return 
mainly women and children from the camps in Syria since last year and in November adopted 
an inter-institutional action plan on the reception and treatment of returnees. 

The operational and logistical capacity of the Counter-Terrorism Directorate remains limited 
and  should  be  strengthened.  The  CVE  Coordination  Centre  should  be  given  sufficient 
funding, staff and political support to fulfil its tasks. In May 2019, it signed a memorandum of 
understanding with the five officially recognised religious communities on the prevention of 
radicalisation leading to  violent extremism and terrorism. More needs to  be done as regards 
reintegration  and  resocialisation  of  returnees  and  to  prevent  radicalisation  in  prisons.  There 
was progress on operationalising the local safety councils, however more efforts are needed to 
make them well prepared to deal with returnees. Training for district prosecutors dealing with 
terrorist related offences should be provided. 

Regional  cooperation  and  the  exchange  of  sensitive  information  with  international  partners 
remains  satisfactory.  In  cooperation  with  Interpol,  the  Albanian  authorities  arrested  and 
extradited  to  Germany,  Italy  and  Russia  three  individuals  suspected  of  participation  in  a 
terrorist  organisation.  While  progress  was  made  over  the  year,  Albania  should  make  more 
proactive use of the Europol European Counter-Terrorism Centre’s communication platforms 
products, services and capabilities. It started a collaboration with the Europol Internet Referral 
Unit  and  should  continue  it.  It  should  also  continue  to  investigate  links  between  organised 
crime and terrorism. It is actively participating in the implementation of the Western Balkan 
counter-terrorism initiative. 

Legal and irregular migration  

Institutional set-up and legal alignment 

45 

 
The Ministry of the Interior is the main actor in the field of migration. The main bodies under 
its supervision responsible for implementing migration policies are the Department of Border 
and  Migration  in  the  ASP  General  Directorate  and  the  Directorate  of  Anti-Trafficking  and 
Migration.  MOFE  and  employment  offices  address  legal  and  labour  migration  at  the  local 
level.  

The legal framework on migration is largely aligned with the EU acquis but needs updating 
in  line  with  recent  developments.  Negotiations  on  readmission  agreements  (to  return 
irregularly staying migrants with no right to stay to their country of origin) are ongoing with 
Russia  and  Pakistan,  while  draft  agreements  were  sent  for  approval  to  the  authorities  in 
Morocco,  Afghanistan,  Iraq  and  Iran.  Albania  has  readmission  protocols  with  12  Member 
States. In June 2019, it adopted a new national migration strategy and action plan for 2019-
2022,  providing  a  clear  framework  for  managing  and  coordinating  migration  flows.  A  first 
monitoring  report  on  the  implementation  of  the  strategy  and  action  plan  was  released  in 
March 2020. A new 2021-2025 draft national diaspora strategy and action plan were finalised 
in June 2019. Amendments to the Law on foreigners were adopted in February 2020, lifting 
working  permit  requirements  for  EU  citizens,  Western  Balkans  nationals  and  foreigners 
working for the post-earthquake reconstruction.  

Implementation and enforcement capacity 

Good  progress  has  been  achieved  in  tackling  irregular  migration  challenges,  including 
strengthened  border  controls.  Albania  continued  to  experience  a  growing  influx  of  irregular 
migrants, mostly from Greece and leaving Albania after a few days, on the way to other EU 
countries. The number of irregular migrants apprehended in Albania increased by almost 83% 
compared with 2018 (10,557 compared with 5,792). About 30% more migrants arrived in the 
first  five  months  of  2020  than  in  the  same  period  in  2019,  despite  the  COVID-19  outbreak 
(3,633  against  2,788).  A  gradual  increase  has  been  noted  in  the  number  of  arrivals  as 
movement restrictions in Albania were lifted. The nationalities represented most were Syrian, 
Iraqi, Afghan, Palestinian, and Moroccan.  

The migrant reception capacity increased in 2019 and 2020. However, the National Centre for 
Asylum Seekers in Tirana was filled to capacity on a number of occasions at the end of 2019 
and  beginning  of  2020.  The  asylum  centre  in  Babbru  can  host  240  people.  It  needs  proper 
maintenance and sufficient living conditions. A worsening security situation within the centre 
has remained unaddressed. Its closed reception centre for irregular migrants in Karreç, with 
a total capacity of 100 beds, also requires refurbishment. Albania should establish alternatives 
to  detention  for  children,  women  at  risk  and  people  with  serious  medical  conditions,  as 
provided for in the Law on foreigners. A new reception facility for 60 people established by 
the  International  Organisation  for  Migration  close  to  the  border  crossing  point  at  Kapshtica 
was opened in October 2019. A new facility to host 30 vulnerable persons in Erseka was also 
opened in June 2020 with the support of the office of the United Nations High Commissioner 
for Refugees (UNHCR). Overall, Albania has a total capacity of 490 beds. Albania does not 
have  separate  facilities  for  unaccompanied  minors.  Albania  should  approve  a  contingency 
plan  for  a  possible  substantial  number  of  arrivals  of  migrants  and  asylum  seekers,  with  a 
budget and clear modalities for its triggering.  

The  overall  staffing  of  the  ASP’s  Department  for  Border  and  Migration  is  limited  (1,635 
employees) and needs to be increased. Comprehensive training and joint exercises have been 
organised  for  key  border  officials  and  frontline  officers.  However,  permanent  training 
structures  should  be  established  in  compliance  with  basic  training  standards  for  EU  border 
guards. Specific training should be conducted on a regular basis. The high turnover of officers 
is a constraint that should be addressed. There were no cases of assisted voluntary return to 
countries of origin. Most irregular migrants returned to the country from which they entered 
Albania  (mainly  Greece),  but  the  overall  number  remained  low.  In  2019,  4,098  irregular 

46 

 
migrants received an order to return to their country of origin, almost four times more than in 
2018.  There  were  reports  of  migrants  being  returned  to  Greece  outside  a  legal  and/or 
procedural framework, before pre-screening could be conducted. Albania should apply return 
procedures in compliance with the Law on foreigners and ensure that its return mechanism for 
irregular migrants is in line with the EU acquis.   

The readmission agreement with the EU is functioning well, with Albania swiftly honouring 
requests from Member States for the readmission of both its own and third country nationals. 
The overall return rate was 66% in 2018, but it dropped to 47% in 2019. Since EU Member 
States  report  good cooperation, this decrease may  be due to  the processing of  exceptionally 
large volumes of decisions, a backlog in previous years and possibly secondary movements. 
Cooperation  between  Albania  and  the  European  Border  and  Coast  Guard  Agency  (Frontex) 
on  return  operations  is  very  good.  In  2019,  Frontex  coordinated  73  return  operations, 
returning  2 414  Albanian  citizens.  About  1,565  Albanian  citizens  were  readmitted  and 
returned  in  January  and  February  2020.  Albania  should  train  more  police  officers  to  escort 
returnees to Albania, step up its efforts to provide reintegration support for returned nationals 
and  improve  the  training  of  staff  working  at  the  migration  desks  and  regional  employment 
offices.  

Asylum 

Institutional set-up and legal alignment 

Legislation on asylum generally complies with European standards. However, gaps remain in 
the  development  of  secondary  legislation  and  internal  guidelines  to  regulate  procedures  and 
guide competent authorities. A new Law on asylum is under finalisation.  

Albania has the necessary institutions in place to handle asylum claims. In principle appeals 
can  be  lodged  with  the  National  Commission  for  Refugees  and  Asylum.  However,  the 
Commission was not functional in 2018 and 2019. This issue should be addressed swiftly and 
the Commission reactivated. Judicial appeals can be lodged at the administrative courts. The 
requisite resources should be allocated for full-time qualified interpreters during and after pre-
screening.  The  exclusion  of  refugees  from  social  housing  and  asylum  seekers  from  social 
assistance still needs to be addressed, as efforts to provide integration assistance remain rather 
limited.  

Implementation and enforcement capacity 

In 2019, 6,677 individuals applied for asylum in Albania, 52% more than in 2018 (4,386). In 
the first five months of 2020, there were 2,057 applications, 129 less than in the same period 
of 2019. Albania remains a transit country for asylum seekers. As most asylum seekers leave 
the  country  after  a  few  days,  the  vast  majority  of  asylum  applications  were  withdrawn.  In 
2019, 60 applications were formally lodged. One applicant was granted refugee status and 23 
were granted subsidiary protection. During the outbreak of the COVID-19 pandemic, asylum 
procedures and interviews have been limited. 

On  asylum  procedure,  the  Border  and  Migration  Police  registers  requests  during  pre-
screening  and  then  refers  them  to  the  Directorate  for  Asylum  and  Citizenship.  Although 
authorities’  response  to  the  sharp  increase  in  arrivals  in  2018  and  2019  was  generally 
adequate, the Directorate needs  greater  capacity  and more staff. More training is  needed on 
how to  assess individual claims, particularly the  information  on country  of origin  and cases 
involving vulnerable people. A database for managing registrations and allowing for follow-
up of individual cases became operational in 2019. However, data management still needs to 
be strengthened and border crossing points interconnected.  

The  pre-screening  instructions  should  be  amended  to  include  additional  safeguards,  in 
particular  for  vulnerable  people  and  those  with  specific  needs,  including  the  early 

47 

 
identification of children at risk. The whole asylum procedure could be improved with more 
direct input from the Directorate for Asylum and Citizenship, regular attendance at interviews 
and support for the police.  

The  status  of  about  2 700  Iranians  (from  the  People’s  Mujahedeen  of  Iran)  relocated  to 
Albania  in  2015  and  2016  has  yet  to  be  decided.  They  currently  hold  temporary  residence 
permits on humanitarian grounds.  

Albania cooperates with the European Asylum Support Office. 

Visa policy 

Albania’s visa policy is not fully aligned with the EU’s, e.g. as regards the lists of countries 
whose  nationals  require  a  visa  and  those  who  are  exempt.  Further  alignment  is  needed,  as 
Albania has visa-free arrangements with Kazakhstan, Kuwait, and Turkey, which are not on 
the EU’s visa-free list. In addition, between April and October each year, Albania lifts its visa 
requirement  for  nationals  of  Bahrain,  Belarus,  Oman,  Qatar,  Russia,  Saudi  Arabia  and 
Thailand,  which  is  not  in  line  with  the  EU  acquis.  In  December  2019,  it  also  decided  to 
exempt  Chinese  nationals  from  visa  requirement  with  no  time  limit.  The  country  needs  to 
ensure full alignment with EU visa policy. It has an e-visa system, based on total information 
management system (TIMS) software, which is used to register all foreign nationals applying 
for a visa when entering Albania.  
The  Commission’s  third  Report  under  the  Visa  Suspension  Mechanism  of  July  20205 
concluded  that  Albania  continues  to  meet  the  visa  liberalisation  requirements.  Albania 
stepped  up  actions  to  tackle  irregular  migration  and  continued  to  strengthen  operational 
cooperation  with  the  Member  States  most  affected  by  irregular  migration  from  Albania.  It 
also  strengthened  efforts  to  raise  awareness  among  the  population  on  the  rights  and 
obligations of the visa-free regime as well as penalties for their violations. 

The  issue  of  Albanian  nationals  making  unfounded  asylum  applications  to  EU  Member 
States6 and Schengen-associated countries remains  one that requires  substantial  efforts  from 
the  Albanian  authorities.  In  addition  to  information  campaigns,  thorough  border  checks, 
awareness-raising  on  rights  and  obligations  under  the  visa-free  regime  and  identifying  and 
addressing  the  underlying  reasons,  they  have  sought  to  improve  dialogue  and  cooperation 
with the countries most affected. They have deployed three police liaison officers to the EU 
and a liaison officer from the EU works in Tirana to help with exit checks. The cooperation 
and dialogue should be continued. The Commission is monitoring the trend very closely in the 
framework of the post-visa liberalisation monitoring mechanism. 

Eurostat data indicate that in 2019 there were around 2,7% fewer of these unfounded asylum 
applications than in 2018 and almost 20% fewer than in 2017. The decrease continued in the 
first two months of 2020 (pre COVID-19), with 35% fewer than in the same period in 2019. 
In the period January-May 2020, there were 3 305 applications lodged, against 10 375 in the 
same  period  in  2019,  which  represents  a  decrease  of  around  74%  in  applications.  The 
‘recognition rate’ (i.e. the number of successful applications expressed as a percentage of all 
decisions) was around 6%, 1,6 pps less than in 2018. 

Since a marked peak of applications in 2017 in the Member State most affected, Albania’s 
efforts have resulted in a 26,6% decrease from 7 633 applications in 2017 to 5 599 in 20197. 
In the first two months of 2020 the decreasing trend continued. In the period January-May 

5 COM(2020) 325 final 
6 Excluding the UK 
7 Data collected from the Member State most affected. Figures excluding accompanied minors and Albanian citizens under 
examination in “Dublin procedures”. 

48 

 
                                                           
2020, there were around 75% fewer unfounded asylum applications than in the same period in 
2019 (respectively, 1235 applications, compared to 4,370 in the same period of 2019).   

In  2019,  14,224  Albanian  nationals  were  refused  permission  to  exit  Albanian  territory  at 
border crossings compared, with 20 268 in 2018 (a reduction of about 30%). This decline can 
be explained by travellers’ increased awareness on the documents required to travel  abroad. 
Border surveillance was intensified to prevent illegal border crossing. In March 2019, Albania 
started a new project to facilitate the reintegration of returnees in 13 municipalities. It should 
maintain and step up its efforts to address the issue of unfounded asylum applications. 

There  was  a  sharp  increase  in  the  number  of  seized  forged  documents,  including  EU 
passports, used mostly by Albanian nationals to reach destinations in the EU. The detection of 
Albanian nationals using fraudulent documents increased by 64% between 2018 and 2019. In 
March 2020 in cooperation with Italian and UK law enforcement agencies, the ASP arrested 
12 people and seized a laboratory used for producing counterfeit ID documents to be used for 
travel to EU Member States and UK.  

Unaccompanied  minors  travelling  from  Albania  to  EU  Member  States  remain  a  source  of 
concern. The ASP continued to carry out tight checks on children travelling abroad with one 
or both parents. These were intensified following an order of the Minister for the Interior in 
January  2020.  The  Albanian  authorities  should  continue  to  work  closely  with  the  Member 
States  most  affected.  Greater  attention  should  be  given  to  the  successful  reintegration  of 
returnees, especially the most vulnerable, such as Roma and Egyptians. A new strategy on the 
reintegration  of  returnees  is  needed,  as  well  as  clear  attributions  of  responsibilities  for  its 
implementation. 

Schengen and external borders 

Institutional set-up and legal alignment 

The Law on border control and its implementing acts are broadly aligned with the EU acquis. 
The  amendments  to  the  Law  on  border  control  on  Advance  Passenger  Information  and 
Passenger Name Record (PNR) made in March 2020 are not in line with the EU acquis. The 
memorandum  of  cooperation  on  PNR  with  the  US,  signed  in  May  2020,  required  further 
analysis  as  regards  its  implications  for  Albania's  alignment  with  the  EU  acquis.   The 
legislative framework for the management of Albania’s external  borders is  not  yet  fully in 
line  with  EU  standards.  The  2014-2020  integrated  border-management  strategy  and  action 
plan are broadly in line with European standards.  

Implementation and enforcement capacity 

Implementation  of  the  integrated  border-management  strategy  and  action  plan  continued 
smoothly.  Albania  ratified  the  2018  agreement  on  border  checks  and  joint  control  activities 
with  Kosovo  in  April  2019.  The  integrated  radar  system  for  the  surveillance  of  the  ‘blue’ 
(sea)  border  is  operational.  Albania  should  invest  more  resources  to  modernise  border 
infrastructure  and  improve  surveillance  of  the  ‘green’  (land)  and  ‘blue’  borders.  The  TIMS 
database  system  is  connected  with  Interpol’s  system,  enabling  the  border  police  to  identify 
internationally  wanted  persons,  stolen  vehicles  and  lost/stolen  travel  documents.  Further 
risk-analysis  training  should  be  organised  for  the  border  police.  Albania  should  establish  a 
risk-analysis  system  based  on  the  Common  Integrated  Risk  Analysis  model  (CIRAM) 
developed by Frontex. It participates in the Western Balkan Risk-Analysis Network. 

Inter-agency  cooperation  improved.  The  Navy,  Coast  Guard  and  Border  and  Migration 
Police  conducted  regular  joint,  integrated  ‘blue’  border  patrols.  Cooperation  between  the 

 This designation  is  without  prejudice  to positions on status, and is line  with UNSCR  1244/1999 and the ICJ 
Opinion on the Kosovo declaration of independence. 

49 

 
                                                           
to  be  strengthened, 

Border and Migration Police and customs should be formalised in an agreement providing for 
structured  information  exchanges  and  mutual  access  to  databases.  The  border  police’s 
investigative  powers  need 
to  detect  cases  of 
people-smuggling and trafficking. Albania is the first of the Western Balkan countries to have 
signed the European Border and Coast Guard Status Agreement with the EU. With the entry 
into  force  of  the  agreement  in  May  2019,  Frontex  launched  its  first  fully-fledged  joint 
operation  outside  the  EU,  deploying  teams,  together  with  Albanian  border  guards,  at  the 
Greek-Albanian  border.  This  proved  successful  in  strengthening  border  controls,  enhancing 
security  at  the  EU’s  external  borders  and  combating  migrant  smuggling.  A  second  Frontex 
liaison officer to the Western Balkans with a mandate covering Albania, Kosovo, and North 
Macedonia will work in Tirana and be deployed in the course of 2020. 

in  particular 

Albania  participated  actively  in  the  Western  Balkan  risk-analysis  network.  Operational 
cooperation with neighbouring countries continued to be good, although it should step up 
its  efforts  to  improve  bilateral  cooperation.  In  January  2020,  it  started  to  deploy  the 
US-sponsored personal  identification secure comparison and evaluation system (PISCES) at 
its border crossing points. It will have to ensure that PISCES is operated in line with the EU 
acquis  on personal  data protection. Actions  to  reduce corruption at  the borders included the 
installation  of  cameras  at  crossing  points  and  the  adoption  and  application  of  standard 
operating procedures setting out detailed procedures and strict deadlines for service delivery. 
In 2019, the Department for Border and Migration issued 149 disciplinary measures against 
police and migration officers, 16 of  whom were  relieved of their duties  and 70 demoted. A 
total of 139 disciplinary measures were taken in 2018.  

Judicial cooperation in civil and criminal matters 

Albania continued to cooperate well on criminal matters, including with EU Member States. 
Its cooperation agreement with Eurojust, which entered into force on 1 November 2019, will 
further  facilitate  judicial  cooperation  between  EU  and  Albanian  practitioners,  and  the  fight 
against transnational organised crime. The appointment of an Albanian Liaison Prosecutor to 
Eurojust  should  be  finalised  shortly  in  order  to  ease  this  cooperation  further.  Albania  was 
involved in significantly more transnational cases at Eurojust level than in previous years (27 
as against nine in 2018). The top crimes featuring in Eurojust’s case-management system in 
relation to Albania are drug trafficking and organised crime. Albania participated in five joint 
investigation teams supported by Eurojust. It should appoint a liaison prosecutor to Eurojust 
as soon as possible. 

On  judicial  cooperation  in  civil  matters,  in  2018  Albania  received  383  requests  for  mutual 
legal  assistance and sent out  218 requests, as against 250  and 124 respectively in 2019. On 
judicial cooperation in criminal matters, in 2018 it received 1,096 requests and sent out 1,330 
requests (981 and 1,182 in 2019). It issued 160 extradition requests and received 115 in 2018 
(2019:  186  and  84).  There  were  22  incoming  and  14  outgoing  requests  for  transfers  of 
criminal proceedings in 2019 (eight for both kinds of request in 2018). 

On  civil  matters,  Albania  should  finalise  the  internal  procedures  for  acceding  to  the  2005 
Hague  Convention  on  Choice  of  Court  Agreements  and  the  2007  Protocol  on  the  Law 
Applicable  to  Maintenance  Obligations.  It  should  further  improve  international  cooperation, 
the  timely  implementation  of  multilateral  instruments,  and  its  institutional  capacity.  Further 
efforts are needed to align legislation with the EU acquis and promote the exchange of best 
practices in judicial cooperation.  

All aspects of customs cooperation are now covered in Chapter 29 – Customs Union. 

50 

 
3. 

Fundamentals first: economic development and competitiveness 

'In  line  with  the  conclusions  of  the  European  Council  in  Copenhagen  in  June  1993,  EU 
accession  requires  the  existence  of  a  functioning  market  economy  and  the  capacity  to  cope 
with competitive pressure and market forces within the Union. 

Economic  governance  has  become  even  more  central  in  the  enlargement  process  in  recent 
years.  The  Commission's  monitoring  takes  place  in  two  processes:  the  Economic  Reform 
Programme exercise and the below assessment of compliance with the economic criteria for 
accession.  Each  enlargement  country  prepares  an  Economic  Reform  Programme  (ERP) 
annually,  which  sets  out  a  medium-term  macro-fiscal  policy  framework  and  a  structural 
reform  agenda  aimed  at  ensuring  competitiveness  and  inclusive  growth.  The  ERPs  are  the 
basis for country-specific policy guidance jointly adopted by the EU and the Western Balkans 
and Turkey at ministerial level in May each year.' 

3.1.  The existence of a functioning market economy 
Albania has made some progress and is moderately prepared for developing a functioning 
market economy. In 2019, GDP growth slowed down due to lower hydropower production, a 
drop in investment following the conclusion of some very large infrastructure projects and the 
shock  of  the  strong  earthquake.  Unemployment  continued  to  decrease  to  record  lows,  even 
though  it  remains  high.  The  fiscal  deficit  remained  contained  and  the  public-debt-to-GDP 
ratio continued to decline but remained high. Banks further reduced non-performing loans and 
lending to the private sector picked up. The comprehensive judicial reform advanced well, but 
has not  yet  effectively improved the legal  security for businesses. Comprehensive structural 
reforms to support the business environment and the liberalisation of the energy sector have 
made limited progress.  The COVID-19 pandemic has  exacerbated the structural  weaknesses 
and its economic fall-out erases some of the progress described above.  

In order to improve the functioning of the market economy, Albania should in particular: 

51 

201720182019Albania - Key economic figuresGDP per capita (% of EU-28 in PPS)129.530.031.031.0Real GDP growth 2.03.84.12.2Economic activity rate of the population aged 15-64 (%), total64.266.868.369.6      female55.357.759.761.7      male73.375.876.977.6Unemployment rate (%), total15.914.112.812.0      female14.712.812.311.8      male16.915.113.212.2Employment (annual growth %)2.52.72.12.4Nominal wages2) (annual growth %)2.2*3.03.13.8Consumer price index (annual growth %)2.02.02.01.4Exchange rate against EUR139.48134.14127.57123.01Current account balance (% of GDP)-9.9-7.5-6.8-7.6Net foreign direct investment, FDI (% of GDP)8.08.68.07.6General government balance (% of GDP)-3.9-2.0-1.6-1.9General government debt (% of GDP)67.170.267.766.3Notes: 1) Eurostat 2) average gross monthly wagesSource: national sources2011-16 average 
 
 
  Keep  the  increase  of  fiscal  deficit  and  public  debt  temporary,  increase  revenue  in  a 

growth-friendly way and strengthen fiscal governance;  

  Resolve  legal  impediments  to  NPL  resolution,  collateral  execution  and  insolvency 

procedures; 

  Take  short-term  measures  to  preserve  employment  and  improve  active  labour  market 

policies and upskilling of adults.  

Economic governance  

Albania  remained  committed  to  strengthening  macroeconomic  stability  and  fiscal 
consolidation,  but  institutional  capacity  is  still  insufficient  to  provide  for  improved 
quality  of  governance.  In  2019,  the  government  continued  to  reduce  the  still-high  level  of 
public debt, albeit slowly. Frequent turnover in senior management positions in the Ministry 
of Finance and Economy and its sub-ordinated agencies and delays in filling vacancies in key 
departments  in  the  ministry  continued  to  weaken  administrative  capacity  for  more  credible 
and effective implementation of economic reforms.  

 On 26 November 2019, Albania was hit by a devastating earthquake that caused loss of lives 
and  substantial  damages  estimated  at  EUR  1  billion.  In  response  to  the  reconstruction  and 
humanitarian needs, the 2020 budget, which was amended and adopted in December and in 
the wake of the COVID-19 pandemic was revised again in March, in April and in July 2020.  

Faced  with  the  spread  of  COVID-19,  the  government  put  strong  social  distancing 
measures in place from March to June 2020, accompanied by financial support schemes 
for the economy. The state of emergency was announced on 24 March 2020. To counter the 
economic  impact  of  the  pandemic  and  the  resulting  confinement  measures,  the  government 
has  introduced  financial  support  schemes  for  affected  businesses  and  their  employees,  for 
low-income  households  and  for  the  health  sector  so  far  amounting  to  2.8  %  of  GDP.  The 
government  requested  financial  support  from  the  IMF  (EUR  174  million  from  the  Rapid 
Financing  Instrument)  and  the  EU,  which  approved  EUR  180  million  of  macro-financial 
assistance in the form of a loan to cover the increased external and budgetary financing needs.   
Albania  has  partially  implemented  the  policy  guidance  jointly  agreed  at  the  May  20198 
Economic and Financial Dialogue between the EU and the Western Balkans and Turkey.  

Macroeconomic stability 

Already  before  the  outbreak  of  the  COVID-19  crisis,  annual  GDP  growth  slowed 
considerably  in  2019  due  to  lower  hydro-electricity  production,  a  drop  in  investment 
and  the  fallout  from  the  earthquake.  Economic  growth  averaged  2.4 %  over  2013-2017, 
accelerated  to  4.1  %  in  2018before  it  slowed  to  2.2  %  in  2019,  mainly  because  of  low 
hydroelectric production due to below-
average  rainfall,  aggravated  by  the 
earthquake. In addition, the completion 
of  some  large  infrastructure  projects 
caused  a  contraction  in  investment. 
Household  consumption  continued  to 
be the main growth driver (+3.3 % y-o-
y),  based  on  growing  wages  and 
employment. 
of 
Strong 
services  exports  off-set  the  fall  of 

growth 

8  Western  Balkans  and  Turkey:  Joint  conclusions  of  the  economic  and  financial  dialogue,  2019, 
https://www.consilium.europa.eu/en/press/press-releases/2019/05/17/western-balkans-and-turkey-joint-
conclusions-of-the-economic-and-financial-dialogue-of-17-may-2019/ 

52 

-4-202468201420152016201720182019Graph: Albania -Real GDP growth and contributionsPriv. cons.Gov. cons.GFCFStocksNet exportsreal GDP growthSource: INSTAT, own calculations% y-o-y 
                                                           
 
electricity  exports  and  net  exports  contributed  0.6  pps  to  growth.  Per  capita  GDP  (at 
purchasing power parity) increased from 29 % of the EU-28 average in 2016 to 31 % in 2019, 
still representing a very slow pace of convergence.  

Subdued  economic  growth  and  the  earthquake  weakened  the  resilience  of  Albania, 
which  is  particularly  vulnerable  to  the  economic  fallout  from  the  pandemic.  High 
reliance  on  tourism  and  the  limited  capacity  of  the  health  sector  aggravates  the  situation. 
Albania faces a sharp economic contraction in 2020, because the domestic and international 
restrictions are depressing private consumption and tourism exports, with knock-on effects on 
investment.  

The  high  current-account  deficit  widened  slightly,  but  remained  fully  financed  by 
foreign  direct  investment  (FDI)  in 
2019.  In  2013-2018,  rising  exports 
helped  the  current-account  deficit  to 
narrow  gradually,  before  it  widened 
again to about 7.6 % of GDP in 2019, 
the  worsening 
mainly  because  of 
balance  of  –the  electricity 
trade 
compared  with  2018.  Remittances  fell 
steadily from 5.9 % of GDP in 2014 to 
5.2% in 2019. Net FDI inflows fell as a 
proportion  of  GDP,  from  8.7  %  in 
2018  to  7.9  %  in  2019,  but  still 
covered the current-account deficit. Foreign exchange reserves covering more than 6 months 
of imports at the end of 2019 provided some safeguard against adverse shocks. External debt 
declined by 2 pps to 60 % of GDP at the end of 2019.   

The recession in the EU in the wake of the pandemic affects remittances and FDI inflows 
and puts pressure on the balance of payments. FDI inflows dropped 18 % y-o-y in the first 
quarter  of  2020.  The  freely  floating  exchange  rate  of  the  Albanian  currency,  which 
appreciated  by  3.5  %  against  the  euro  in  2019,  lost  about  1  %  of  its  value  in  the  first  five 
months of 2020.  

Inflation remained below target and the central bank eased its policy stance. The annual 
inflation averaged 1.7 % over the last five years but dropped to 1.4 % in 2019, thus moving 
further  away  from  the  Bank  of  Albania’s  (BoA)  3  %  inflation  target.  Since  March  2020,  a 
strong rise in food prices in combination with the depreciation has pushed the inflation rate to 
2.1% (y-o-y), which lasted until May and later slowed down to 1.4% in July, reflecting also 
seasonal  effect.  The  BoA  maintained  its  very  accommodative  monetary  policy  stance 
unchanged over 2019, but lowered the already record-low key policy rate (the repo rate) of 1 
% to 0.5 % in March 2020 in view of the economic impact of the pandemic. 

In 2019, the fiscal deficit narrowed to less than half of its 2014-2018 average but fiscal 
governance still showed weaknesses and revenue mobilisation remained below potential. 
Lower  expenditure  and  higher  revenues  helped  to  lower  the  cash-based  deficit  in  the  last  5 
years. Expenditure declined from 31.5 % of GDP in 2014 to 29.2 % of GDP in 2019, while 
revenue increased from 26.2 % of GDP to 27.6 % over the same period, helped by increasing 
formalisation  of  the  economy  and  the  modernisation  of  tax  collection.  The  fiscal  deficit  in 
2019  turned  out  slightly  lower  than  planned  mainly  due  to  an  underspending  of  the  capital 
budget9 and savings on social insurance outlays. Revenue mobilisation also fell short of plans, 
because  of  an  increasing  number  of  tax  exemptions  and  slowing  reforms.  The  stock  of 
outstanding payments and in particular of VAT refunds in arrears declined moderately but the 

9 Expenditure to address the destruction caused by the earthquake will mostly occur in 2020. 

53 

-20-1001020152016201720182019Graph : Albania -Current account selected components and FDIGoods and services trade balance Workers' Remittances balanceCurrent account balanceNet FDI% of GDPSource: IMF and Central Bank of Albania 
                                                           
systemic  issues  of  weak  expenditure  plans  and  controls  and  too  optimistic  VAT  revenue 
forecasts remained unresolved.  

Additional expenses in response to the earthquake and the pandemic’s impact on both 
revenue and expenditure led  to an increase of the expected fiscal deficit.  In response to 
the earthquake, the government had planned to increase the fiscal deficit to 2.2% of GDP in 
2020. In view of the additional expenses related to the COVID-19 pandemic combined with 
the expected strong fall in revenue and GDP, the budget amendment of April 2020 projected a 
fiscal deficit of 3.9 % of GDP. In the first seven months of 2020, tax revenue fell by 12.3 % 
y-o-y.  

Following years of moderate debt reduction, high deficit financing needs and the fall in 
GDP  will  sharply  increase  the  public  debt  ratio  in  2020,  possibly  to  80%  of  GDP 
the 
according 
the 
Supported 
authorities. 
appreciation  of 
lower 
the 
primary deficit and decreasing  interest 
payments,  the  gross  public-debt-to-
GDP  ratio  declined  from  67.7  %  in 
2018  to  66.3  %  at  the  end  of  2019, 
broadly  in  line  with  the  government’s 
plans.  Between  2014  and  2019,  the 
government  reduced  the  high  annual 
rollover needs from 20.5 % of GDP to 
12.5  %,  and  reduced  the  share  of 

to  estimates  by 
by 
lek,  a 

external debt.  

Public  investment  management  remained  weak,  while  gaps  in  the  governance  of 
public-private  partnerships  (PPPs)  pose  continuing  risks  to  public  finances.  Between 
2014 and 2018, public investment increased from 5.2% to 5.7% of GDP, but declined to 5% 
in 2019. Public investment efficiency remained low, because the large number of PPPs is not 
integrated  into  the  overall  investment  management  framework  and  their  exemption  from 
regular public procurement rules in some sectors fails to secure appropriate value for money. 
In accordance with the amendment of the PPP Law in October 2019, the Ministry of Finance 
and  Economy  (MOFE)  has  begun  to  report  on  the  fiscal  implications  of  PPPs10,  but  a  full 
fiscal risk assessment might require additional institutional capacity. 

In  an  increasingly  difficult  environment,  the  macroeconomic  policy  mix  has  been 
broadly  appropriate  but  the  high  debt  burden  limits  fiscal  space.  In  2019,  Albania  has 
complied with the main fiscal rule, i.e. to ensure that the reduction of the public-debt-to-GDP 
ratio  continues  (until  it  reaches  45  %).  However,  the  lack  of  operational  rules  and 
intermediate  targets  on  the  pace  of  debt  reduction  or  on  the  fiscal  deficit  remains  a  major 
weakness of the fiscal rules. The high debt burden limits fiscal space to cope with shocks and 
finance  long-term  infrastructure  development.  The  BoA’s  loose  monetary  policy  stance  has 
been  appropriate  in  view  of  the  persistently  below-target  inflation  rate.  Considering  the 
limited fiscal and monetary policy space, the policy mix in response to the pandemic has so 
far been appropriate and supportive to economic stability.  

Functioning of product markets 

Business environment  

Moderate efforts to improve the business environment have yet to yield tangible results. 
The  overall  number  of  active  domestic  enterprises  hardly  increased  in  2018  and  new 

10 MOFE preliminary summary report on concession/PPP contract performance (2019). 

54 

020406080-10-50510201420152016201720182019Graph : Albania -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public Debt (rhs)Source: National sources% ofGDP 
                                                           
registrations  of  enterprises  were  18.6%  fewer  than  in  2017,  despite  the  introduction  of 
e-services  for  registering  businesses.  The  delivery  of  public  services  and  the  administrative 
burden on business continued to improve with the expansion of e-services in 2019, but it took 
longer  to  receive  tax  refunds.  Implementation  of  the  business  investment  development 
strategy progressed only slowly and most business surveys indicate that reforms have slowed 
down in the past 2-3 years. Businesses highlighted problems11 in finding skilled staff and still 
considered corruption and informality (despite its perceived decline) to be widespread. Other 
major concerns raised by the business  community include a failure to  implement  legislation 
effectively,  ad  hoc  regulatory  and  taxation  changes,  and  the  controversial  use  of  public 
procurement procedures. 

The far-reaching overhaul of the justice system progressed well, but is still to translate 
into  improved  legal  security  for  business.  In  addition  to  informality,  weak  contract 
enforcement  continued  to  pose  major  challenges  for  businesses.  The  controversy  over  the 
regulation  of  private  bailiff  services,  which  are  key  for  smooth  collateral  execution,  was 
brought to the High Court, which is expected to take a decision on the matter. Efficiency of 
in-court  dispute  resolution  is  affected  by  issues  such  as  the  length  of  proceedings,  the 
clearance  rate  and  the  backlog  of  cases  and  the  impact  of  alternative  dispute  resolution 
continues to be low. Delays in the courts persist, while the vetting of judges continues and the 
courts face staff shortages. The implementing legislation for the Bankruptcy Law is still not 
complete,  but  the  National  Bankruptcy  Agency  has  begun  to  process  applications  for 
bankruptcy.  Consultations  progressed  on  the  draft  Unified  Law  on  investment,  which  will 
align  Albanian  legislation  with  international  standards  and  improve  legal  certainty  for  both 
foreign and domestic investors. Despite recent institutional changes in the state cadastre, only 
limited progress has been made in clearing ownership conflicts over land titles. 

State influence on product markets 

State involvement in the economy is generally low, with the exception of certain markets 
where  the  growing  potential  for  state  influence  could  weaken  fair  competition.  The 
government has increasingly engaged in PPPs, which were involved in 222 projects in 201912 
for  a  total  contracted  investment  value  of  about  31%  of  GDP,  mostly  in  energy  (48%)  and 
transport  (38%).  These  contracts  typically  include  price  or  volume  agreements  for 
investments, services and goods, for which government payments reached 3% of the previous 
year’s  tax  revenue  in  2019  (5%  is  the  legal  limit).  Albania  adopted  the  legislation  for 
establishing  an  Albanian  Investment  Corporation,  with  vague  governance  and  oversight 
arrangements, which is supposed to be partly owned and funded by the state and to develop 
investment projects of public interest, in particular by making state-owned property available 
to private investors. The unclear delineation between public and private use and ownership of 
assets  in  such projects,  the large number of PPPs and the continued partial exemption  from 
regular public procurement rules of PPPs in the energy sector, as well as airports and ports, is 
likely to restrict fair competition in the respective markets. 

Albania  reported  very  low  levels  of  state  aid,  but  the  incomplete  recording  of  support 
and  implicit  subsidies  make  it  difficult  to  evaluate  their  effects  on  competition. 
According  to  the  State  Aid  Commission  (SAC)13,  State  aid  rose  to  0.22%  of  GDP  in  2018, 
from  0.14%  a  year  before,  with  the  majority  spent  on  tax  reductions  and  0.1%  of  GDP  on 
subsidies for railway and water-supply companies. In addition to the reported State aid, state-
owned enterprises  (SOEs), mostly in the electricity sector, benefited from  public guarantees 
amounting  to  3.3%  of  GDP  and  from  direct  budget  support,  and  the  MOFE  reported  tax 

11 Albania – enterprise survey 2019; www.enterprisesurvey.org  
12 MOFE preliminary summary report on concession/PPP contract performance (2019). 
13 As a secretariat within MOFE, the SAC is not independent and has limited capacity. 

55 

 
                                                           
expenditure  of  5.6%  of  GDP  for  2018  in  its  first  report  on  tax  expenditure14.  The  under-
reporting of state aid by SAC reflects its lack of capacity to monitor state aid appropriately. 

Privatisation and restructuring 

State-owned  enterprises  (SOEs)  lack  transparency  and  effective  oversight,  and  rely  on 
state funding; liberalisation of the energy market progresses with delays. Enterprises in 
public  ownership  are  concentrated  in  the  energy  sector,  but  the  inventory  of  state-owned 
assets and companies seems to be incomplete. Using ESA 2010 methodology, the Institute of 
Statistics identified about 17 non-financial public corporations15, not including about 53 joint 
stock  companies  with  state  ownership  in  the  energy  and  infrastructure  sectors  and  about  57 
municipal  water-supply  and  sewerage  companies.  The  SOEs  rely  on  the  budget  and  pose 
significant  fiscal  risks,  exacerbated  by  the  lack  of  oversight  of  their  financial  performance, 
with potential liabilities estimated by the IMF at about 18% of GDP in 201816.  

Functioning of the financial market 

Financial stability 

The stock of non-performing loans (NPLs) continued to decline and the banking sector 
remained well-capitalised, but the widespread use of the euro creates risks. The banking 
sector’s capital adequacy and liquidity ratios remained well above minimum regulatory levels, 
and return on equity increased by 2 pps year-on-year, to 15% at the end of 2019. The ratio of 
NPLs to total loans fell from 13 % in 2018 to a still relatively high 8.2 % by the end of 2019. 
Banks’ relatively large exposure to government securities (averaging 25% of their assets) and 
the  fact  that  about  half  of  all  bank  loans  and  deposits  are  denominated  in  euro,  continue  to 
pose  risks  to  the  banking  sector  and  complicates  the  transmission  of  monetary  policy.  The 
non-bank  financial  sector  with  about  31  institutions  (including  11  insurance  companies,  5 
investment funds and 3 pension funds) increased its share in total financial sector assets from 
6.7 % in 2014 to 7.5 % in 2019 but remains small.   

Access to finance 

Following several years of sluggish performance, credit growth picked up but financial 
intermediation  and  financial  inclusion  remained  very  low.  After  several  years  of  low 
growth  rates,  the  recovery  of  credit  growth  to  7.8%  by  the  end  of  2019  is  a  positive 
development. Lending to households and recently to SMEs has driven the credit growth, also 
stimulated by an increased weight of domestic banks, which doubled their share of the sector's 
assets to 21%, while the number of banks declined from 16 to 12. In response to the COVID-
19 pandemic, the BoA facilitated the temporary suspension of loan repayments and the use of 
internet  banking  to  support  social  distancing.  Two  sovereign  guarantee  loans  were  also 
mobilised and became operational.   

14   Tax expenditure is foregone tax revenue due to tax exemptions and reductions. MOFE published this report 

end of December 2019. 

15   There are no public financial corporations in Albania. 
16   IMF, FAD technical report – June 2019. 

56 

 
                                                           
The functioning of the labour market  

Despite  muted  GDP  growth,  employment  continued  to increase  in  2019,  but fell  in  the 
first  quarter  of  2020.  Solid  employment  growth  in  2019  (by  2.4%  year-on-year)  helped  to 
lower the unemployment rate from its peak of close to 18 % in 2014 to a record-low 12 % in 
2019, but preliminary data from the COVID-19-related wage support scheme indicate a stark 
increase  in  unemployment  in  2020.  The  high  youth  unemployment  rate  (15-29  age-group) 
decreased  even  more,  by  1.6 pps,  to  21.5  %,  from  as  high  as  32.5%  in  2014.  Rising 
labour-force  participation  (from  61.5  %  in  2014  to  69.6  %  in  2019)  has  driven  growth  in 
labour supply, as the working-age population continued to decrease from 2015 due to lower 
fertility  rates  and  emigration.  The  gap  between  the  participation  rates  of  men  and  women 
narrowed from 20.9 pps in 2014 to 16 pps in 2019.  

3.8  %,  but 

Nominal  wage  growth  accelerated 
to 
emigration 
continued  to  exacerbate  shortages 
of  skilled  staff.  Despite  solid 
employment  growth,  real  wages 
grew  by  only  about  1.3%  in  2018, 
but picked up to about 2.4 % in 2019 
supported  by  an  increase  in  the 
minimum  wage  and  public  wages. 
The  overall  moderate  wage  growth 
masks  wide  sectoral  variations, 
which might signal shortages of skilled staff.  

3.2.  The  capacity  to  cope  with  competitive  pressure  and  market  forces  within  the 
Union 
Albania has made some progress and has some level of preparation in its capacity to cope 
with  competitive  pressure  and  market  forces  within  the  EU.  Energy  and  transport 
infrastructure,  the  use  of  digital  communication  as  well  as  education  outcomes  have 
improved,  but  significant  gaps  to  regional  peers  and  European  levels  remain.  Albania’s 
competitiveness  is  hindered  by  a  lack  of  entrepreneurial  and  technological  know-how,  a 
significant  skills  gap,  weak  institutions  and  low  levels  of  investment  and  infrastructure 
quality.  These  factors  are  holding  back  industrial  and  agricultural  production  and  limit 
Albania’s integration into  global value chains.  Regional  integration and  exports increased 
but  remained  below  potential.  The  lack  of  product  and  geographical  diversification  of 
exports add to Albania’s vulnerability to external shocks such as the current pandemic. The 
hard  hit  SMEs  and  self-employed  receive  support,  but  the  effective  outreach  of  support 
measures is limited by the large informality in the economy.  

In order to improve competitiveness and long-term growth, Albania should: 

  Establish  effective  consultation  mechanisms  with  businesses  and  social  partners  to 

ensure the transparency and predictability of support measures and legislation;  

  Provide  incentives  for  businesses  and  employees  in  the  informal  economy  sector  for 

transferring to the formal economy;  

  Ensure  that  legislation  on  energy  efficiency  and  energy  performance  of  buildings  is 

applied to the earthquake-related reconstruction; 

  Improve the relevance of vocational education and training for employment.  

Education and innovation 

57 

4550556065707501020302013201420152016201720182019Graph : Albania -Labour market trends(15-64 age group)Unemployment rate (lhs)Participation rate (rhs)Employment rate (rhs)Source: Instat 
Secondary school and university enrolments and outcomes have improved steadily over 
the past decade, but overall education levels and public spending on education remained 
below OECD and EU averages. According to  the 2018 results of the OECD’s Programme 
for  International  Student  Assessment  (PISA),  outcomes  for  mathematics  improved  again 
compared with 2015’s assessment. However, outcomes in the competence of reading have not 
changed,  while they  got  worse in  science.  Over the last 2  years, enrolments  in  pre-primary, 
secondary and tertiary education have declined slightly. Albania has the lowest rate (24%) of 
tertiary-educated  young  adults  (30-34 year-olds)  in  the  Western  Balkans,  partly  due  to  the 
continuing emigration of educated Albanians (‘brain drain’). 

The capacity for research, development and innovation remained very low, as public spending 
on research (though up slightly) remained negligible at 0.03% of GDP and the proportion of 
companies investing in R&D (about 18%) was the second lowest in the region17. In the global 
competitiveness index, Albania ranks particularly low for innovation capability (110th of 141) 
and R&D (126th), with increasing numbers of publications in scientific journals and patents 
the only positive developments in this area.   

Physical capital and quality of infrastructure 

Albania’s  annual  public  investment  has  averaged  5.4  %  of  GDP  since  2014  and  its 
infrastructure  has  improved  significantly,  but  it  still  lags  well  behind  regional  and EU 
averages.  Investment has accounted for roughly  one quarter of GDP in the five  years up to 
2018 and has grown in  average 2 % p.a. in  the same period.  In 2019, it contracted by 4 %, 
reducing  its  share  to  22  %  of  GDP.  In  the  global  competitiveness  index,  Albania’s 
infrastructure  ranks  98  out  of  141,  despite  improvements,  with  transport  infrastructure  and 
road  connectivity  ranking  only  122nd.  On  the  positive  side,  digital  infrastructure  improved, 
with a growing proportion of households enjoying internet access (up from 80.7% in 2017 to 
82.2% in 2018), water supply extended in the coastal regions that attract the most tourists and 
installed  electricity  generation  capacity  increased  and  outages  declined  significantly. 
However, the implementation of the action plan to increase energy efficiency is delayed and 
Albania’s  economy  remains  three  times  more  energy-intensive  than  the  EU  average.  The 
inefficient use of energy, in particular in the transport and residential sectors, which account 
for up to 70% of energy consumption, weighs on energy security and on the trade deficit.   

Sector and enterprise structure 

The  Albanian  economy  shifted  further  to  services,  but  agriculture  remains  important. 
The relative weight of the agricultural sector in the economy declined from almost 19.6 % of 
GDP in 2014 to 18.3 % in 2019, but remained far greater than in the wider region and the EU. 
Services  further  increased  their  share  of  GDP  from  46  %  to  48.2  %,  led  by  trade,  tourism, 
education  and  health.  Tourism  has  continued  to  grow  steadily  over  the  last  3  years,  a  trend 
which is expected to be reversed in 2020 due to the COVID-19 pandemic while industry lost 
slightly  ground,  with  its  share  in  GDP  decreasing  from  12.6  %  to  12.3  %,  as  increasing 
manufacturing  and  the  recovery  of  construction  largely  offset  a    strong  decline  in  mining. 
More employment in services (up from 39.8% to 42.9%) and manufacturing (up from 8.6% to 
10.6%)  and  less  in  agriculture  (down  from  42.7%  to  37.4%)  also  reflect  the  continuing 
transformation of the Albanian economy.   

More SMEs engaged in exporting, but their entrepreneurial skills and financial literacy 
remained weak and public support insufficient. SMEs accounted for 99.8% of all firms in 
Albania,  with  a  very  high  proportion  of  micro-enterprises  (1-10  employees).  Between  2013 
and 2016, their contribution to exports increased from 41% to 61%18. In 2017 and 2018, the 
number of SMEs continued to grow, in particular in services, and they recorded strong growth 

17   World Bank / European Investment Bank / OECD, Enterprise survey – Albania (2019). 
18   OECD, SME policy index 2019 – Western Balkans and Turkey. The figures do not include agriculture. 

58 

 
                                                           
in  added  value  and  employment.  Low  levels  of  entrepreneurial  skills  and  financial  literacy 
remained  the  major  weaknesses,  exacerbated  by  a  paucity  of  public  support  services  for 
investment  and  exports.  Access  to  finance  has  begun  to  improve  and  a  few  initiatives  have 
been  launched  to  improve  lifelong  and  entrepreneurial  learning.  As  for  agriculture,  scarce 
technical support and unclear land titles are keeping investment, productivity and incomes of 
the mostly small farms at very low levels. 

Economic integration with the EU and price competitiveness 

Albania continued to narrow its large goods trade deficit with the EU, which remained 
its main trading partner. In 2019, the EU accounted for 76.6 % of Albania’s goods exports, 
a slight increase compared with 2018, and for 58.5 % of its goods imports, a 2.5 pps decline. 
The goods trade deficit with the EU narrowed from 10.6 % of GDP in 2014 to 9 % of GDP in 
2019 or to about EUR 1.2 billion, and was to some extent offset by Albania’s growing surplus 
in services.  Italy  remained the main destination  for Albanian exports and a major source of 
remittances. Overall trade remained well below potential, in particular for a small economy, 
and decreased slightly from 76.9% of GDP in 2018 to 76.7% in 2019 (in real terms), up from 

75.4 % in 2014. The appreciation of the real-effective-exchange-rate index practically halted 
in  2019  (+0.3  %),  after  the  steep  climb  of  9  %  in  2018.  Albania’s  comparatively  low 
integration into global value chains  is  based on textile and footwear manufacturing services 
and this is reflected in the limited diversification of goods exports.  

Exports  of  goods  to  Central  European  Free  Trade  Agreement  (CEFTA)  countries 
increased, while imports from CEFTA countries declined. Merchandise exports to CEFTA 
countries increased their share from 11.6% of exports in 2014 significantly to 17.2 % in 2019, 
while exports to the rest of the world (excl. EU) declined. In contrast, imports from CEFTA 
countries  gradually  declined  and  fell  back  from  7.9  %  in  2014  to  6.9%  of  total  Albanian 
imports, while the proportion of imports from other countries increased from 31% to 34.5%. 
The low imports from CEFTA countries reflect the dominance of machinery and equipment in 
the composition of Albania’s imports, which are not key export goods of CEFTA countries.  

Albania attracted increasing FDI flows from the EU and elsewhere, but only in a limited 
range of sectors. FDI inflows from the EU grew by 16% year-on-year in 2018, after a record 
44% increase in  2017.  Nevertheless, the EU lost  some of its dominant  position in  Albanian 
FDI stocks, accounting for only 53.9% in 2018 and 53% in 2019 (down from a peak of 66% 
in  2015),  partly  due  to  a  large  build-up  of  non-EU  FDI  stocks  in  the  energy  and  mineral 
sector. At the same time, the number of medium-sized and large enterprises from the EU (or 
with investment from a EU-based company) declined strongly. 

4. 

Good neighbourly relations and regional cooperation  

Good  neighbourly  relations  and  regional  cooperation  form  an  essential  part  of  the 
country’s process of moving towards the EU. They contribute to stability, reconciliation and a 
climate  conducive  to  addressing  open  bilateral  issues  and  the  legacies  of  the  past.  The 

59 

01020304050201120122013201420152016201720182019Graph : Albania -Exports of goodsEUCEFTAOtherSource: WiiW% ofGDP01020304050201120122013201420152016201720182019Graph : Albania -Imports of goodsEUCEFTAOtherSource: WiiW% ofGDP 
government  has  taken  a  positive  approach  to  regional  cooperation  and  good  neighbourly 
relations.  Albania  participates  actively  in  around  35  regional  organisations  and  initiatives, 
such as the Central  European Free Trade Agreement (CEFTA), the Energy Community, the 
Transport  Community,  the  South  East  European  Cooperation  Process  (SEECP)  and  the 
Regional  Cooperation  Council.19  In  April  2020,  Albania  hosted  the  Brdo-Brijuni  Summit  at 
the level of Presidents.  

With  the  outbreak  of  COVID-19  pandemic,  Albania  like  other  Western  Balkan  countries 
opted for temporary closure of the borders for passengers aiming at preventing the virus from 
spreading. Albania took  part in  EU-initiated "Green  Lanes" initiative, aimed at  ensuring the 
fast flow of essential goods across the region.  

During the COVID-19  crisis,  inclusive regional  cooperation has proven to be essential.  The 
establishment of green lanes within the region has proven the capacity of the region to address 
common  challenges  swiftly  and  efficiently.  Inclusive  regional  organisations  –  the  Regional 
Cooperation  Council,  the  Transport  Community,  and  CEFTA  –  have  been  instrumental  in 
responding  to  the  COVID-19  crisis.  These  achievements  need  to  be  turned  into  sustainable 
improvements. 

In  September  2019,  Serbia's  President  and  the  Prime  Ministers  of  North  Macedonia  and 
Albania agreed to launch an initiative to enhance regional cooperation. This was followed by 
leaders’ summits in October in Novi Sad, November in Ohrid and December in Tirana. The 
meetings produced Chairs’ conclusions on tripartite cooperation on free movement of people, 
goods, services and capital. The initiative provided a renewed impetus to regional cooperation 
and enhanced regional ownership. It is important that regional initiatives include all partners 
in the Western Balkans and are based on EU rules, building on commitments previously taken 
in  the  framework  of  CEFTA,  the  Regional  Economic  Area  (REA)  or  the  Transport 
Community  Treaty.  Many  commitments  and  decisions  have  already  been  taken  in  these 
regional frameworks and they need to be swiftly implemented.  

Building on the results of the previous summits with the region, the Western Balkans summit 
in Poznan focussed on strengthening regional cooperation in the fields of economy and trade, 
the  digital  agenda,  connectivity,  security,  fight  against  corruption,  promoting  reconciliation 
and youth. The summit endorsed a number of achievements in these fields, in particular the 
clean  energy  transition  declaration  signed  in  Podgorica,  the  regional  roaming  agreement 
signed  in  Belgrade,  a  substantial  connectivity  package  and  the  Roma20  integration 
declaration.  It was also the occasion to kick-start the preparation of a Green Agenda for the 
Western Balkans. 

At  the  Zagreb  Summit  on  6  May  2020,  EU  and  Western  Balkans  leaders  agreed  that 
deepening regional economic integration has to be a prominent part of recovery efforts of the 
Western Balkans. To do so, Albania needs to continue playing a constructive role in building 
a  common  regional  market,  which  will  be  critical  to  increase  the  attractiveness  and 
competitiveness  of  the  region.  It  will  help  Albania  to  speed  up  the  recovery  from  the 
aftermath  of  the  pandemic  –  notably  by  attracting  investors  looking  for  diversification  of 
supply and shorter value chains. Such a common regional market has to be inclusive, based on 
EU rules and built on the achievements of the regional economic area multiannual action plan. 

19  Albania  also  actively  participates  in  initiatives  such  as  the  Brdo-Brijuni  Process,  the  Central  European 
Initiative,  the  Adriatic-Ionian  Initiative,  the  South-Eastern  Europe  Cooperation  Process  (SEECP),  the  EU 
Strategies for the Danube Region and for the Adriatic-Ionian Region, the Migration, Asylum, Refugees Regional 
Initiative (MARRI), the Regional School of Public Administration (ReSPA), the  Regional Youth Cooperation 
Office in the Western Balkans (RYCO), the South East European Cooperation Process (SEECP) and the Western 
Balkans Fund.  
20  In  line  with  the  terminology  of  European  institutions  the  umbrella  term  ‘Roma’  is  used  here  to  refer  to  a 
number of different groups  without denying the specificities of these groups. 

60 

 
                                                           
Concerning the implementation of the multiannual action plan (MAP) for the development of 
a  regional  economic  area  (REA)  in  the  Western  Balkans,  despite  persisting  challenges, 
achievements have included the adoption of overdue decisions in the framework of CEFTA in 
Tirana  in  December  2019.  Albania  maintains  a  strong  commitment  to  the  successful 
implementation of MAP REA and is advised to continue implementing all measures under the 
MAP  REA  and  the  regional  investment  reform  agenda  to  reap  the  benefits  of  regional 
economic integration. This process is based on the EU acquis and the EU accession process, 
which are mutually reinforcing.  

Albania has continued to strengthen bilateral relations with the countries of the region. 

Relations with Bosnia and Herzegovina are friendly and without open issues, with occasional 
high-level  bilateral  visits.  The  countries  initialled  an  agreement  on  cooperation  in  the  EU 
accession process and an agreement on economic cooperation. Trade flows remain low.  

Overall, Albania continues to have good relations with Kosovo. In July 2019, an agreement on 
strategic  and  diplomatic  cooperation  was  signed  between  the  two  governments  aimed  at 
extending the mechanism of the joint diplomatic missions and economic diplomacy. Albania 
continued to advocate for Kosovo’s full participation to regional processes. In 2019, Kosovo 
and Albania signed a number of bilateral sectoral agreements (including on roaming, common 
border crossing points, mutual recognition of driver’s licences). However, the momentum of 
these relations fluctuated due to internal political dynamics in Albania and Kosovo, and to the 
positioning  of  respective  leadership  on  the  EU-facilitated  Dialogue  between  Belgrade  and 
Pristina.  

Relations with Montenegro remain good with some further improvement in infrastructure and 
cross-border  cooperation.  Maritime  delimitation  between  the  two  countries  remain  pending. 
The first meeting of the Interstate Commission for water management was held in September 
2019. 

Relations with North Macedonia have intensified. During the reporting period, the two sides 
agreed to establish a commission for joint management of natural and cultural heritage of the 
Ohrid  region,  and  to  improve  implementation  of  UNESCO  recommendations.  Frequent 
bilateral visits took place during the reporting period. In October 2019, President Pendarovski 
paid his first official visit to Albania in the context of the Southeast Europe Peace Summit. In 
November  2019,  Albania  opened  an  Honorary  Consulate  in  Bitola.  In  the  context  of  the 
COVID-19 crisis, the Presidents of both countries had a telephone conversation in February 
2020 and the Ministers of Foreign Affairs also maintained close communication. 

The  relationship  with  Serbia  are  good.  Leaders  of  both  countries  regularly  meet  in  the 
framework of regional and international events. The two countries signed a memorandum of 
understanding in the field of pre-university education.  

Albania  strengthened  its  relations  with  Turkey.  Turkish  President  Erdogan  met  Albania's 
President  Meta  in  May  and  July  2019  and  Prime  Minister  Rama  in  July  2019.  Economic 
cooperation  increased  in  areas  such  as  energy,  banking  system,  telecommunication  and 
infrastructure. In April 2019, the country's flagship airline, Air Albania, a joint venture with 
Turkish Airlines, started commercial flights. The two countries have strengthened cooperation 
in the security field and the 11th joint commissions meeting between ministries of interior took 
place in Tirana in September 2019. An agreement has been signed for Turkey to support the 
restructuring of the Albanian Army, for a  five-year span. Turkey  was  also very present  and 
supportive  of  Albania  in  the  aftermath  of  the  26  November  earthquake.  Turkey  has  been 
increasing pressure on Albania to deliver on dismantling the so-called Gülen movement in the 
country. In January 2020, a Turkish citizen was expelled from the country under controversial 
procedures. His lawyers claimed after the expulsion that he did seek asylum.   

61 

 
Relations with  Greece  remained  generally  good  and marked a peak with  the meeting of the 
two Prime Ministers in October 2019. Progress on outstanding bilateral issues has, however, 
been  limited.  Greek  minority  rights  in  general  and  more  particularly  property  rights  of  this 
minority  continue  to  remain  a  subject  of  disagreement  in  the  bilateral  relation.  Economic 
relations are to be improved. 

Relations with Italy remained very good. Political dialogue intensified with high-level visits 
on both sides. In April, Albania's Speaker of Parliament visited Rome. Italian Prime Minister 
Conte  visited  Tirana  in  October  and  Prime  Minister  Rama  visited  Rome  in  November. 
Cooperation  on  justice  and  home  affairs  was  further  strengthened,  in  particular  in  the  fight 
against organised crime, drug trafficking, trafficking of human beings, irregular migration as 
well as on asylum. Italy remained Albania's first trading partner and one of Albania’s leading 
bilateral  donors.  At  the  onset  of  the  COVID-19  crisis,  Albania  sent  support  to  Italy  by 
deploying doctors and a pool of nurses to the most affected areas in the north of the country.   

5. 

Ability to assume the obligations of membership 

5.1.  Chapter 1: Free movement of goods 
The free movement of goods ensures that many products can be traded freely across the EU 
based on common rules and procedures. Where products are governed by national rules the 
principle of the free movement of goods prevents these creating unjustified barriers to trade. 

Albania has some level of preparation/is moderately prepared in the area of free movement 
of  goods.  There  was  limited  progress  over  the  reporting  period  on  the  sectoral  alignment 
with  the  "new  and  global  approach"  product  legislation  and  the  accreditation  of  additional 
conformity assessment bodies. However, last year’s recommendations remain valid, as efforts 
are needed to ensure more legislative alignment and to strengthen enforcement. 

In the coming year, the country should in particular: 

→ continue to align its legislation with both the horizontal and sectoral acquis; 

→ further strengthen the enforcement capacity of the Market Surveillance Inspectorate. 

General principles 

Albania still has measures in place that affect the production, distribution and marketing of 
industrial  products,  in  particular  as  regards:  (i)  price  of  products;  (ii)  import  licences  or 
permits for imported goods; and (iii) the obligation to have storage facilities in specific areas. 
Plans for further alignment with the EU acquis are set out in the 2019-2021 national plan for 
European integration, and the 2020 consumer protection and market surveillance strategy. 

Non-harmonised area 

Albania  still  has  no  action  plan  for  screening  national  technical  regulations  for  compliance 
with Articles 34-36 of the Treaty on the Functioning of the European Union (TFEU) in 
place, despite having completed a methodology for comparative analysis in 2019. There were 
no developments in the reporting period. 

Harmonised area: quality infrastructure 

Albania’s legislation on accreditation and market surveillance is partially aligned with the EU 
acquis.  Administrative  structures  exist  to  deal  with  technical  regulations,  standardisation, 
conformity assessment, metrology, accreditation, and market surveillance. The recruitment of 
specialised staff to the Market Surveillance Inspectorate is still ongoing. Albania has mutual 

62 

 
 
 
 
cooperation  agreements  on  accreditation,  standardisation  and  conformity  assessment  with 
countries in the region and other non-EU countries. 

On  standardisation,  the  General  Directorate  of  Standardisation  (GDS)  is  a  full  member  of 
the  European  Telecommunication  Standards  Institute  (ETSI),  an  affiliate  member  of  the 
the  European  Committee  for 
European  Committee  for  Standardisation  (CEN)  and 
Electrotechnical  Standardisation  (CENELEC),  and  an  associate  member  of  the  International 
Electrotechnical  Commission  (IEC).  National  standards  are  adopted  in  conformity  with 
European  standards  (CEN,  CENELEC  and  ETSI  standards).  In  the  reporting  period,  over 
3,300  European  and  international  standards  were  adopted  (including  1,148  CEN,  678 
CENELEC, 700 ETSI, 646 ISO, and 188 IEC standards). In total, the GDS has adopted about 
98% of all standards issued by CEN and CENELEC. 

National legislation on the accreditation of conformity assessment bodies is partially aligned 
with  the EU acquis.  It  regulates the functioning  of the General  Directorate of Accreditation 
(GDA),  its  accreditation  board,  its  technical  committees  and  various  procedural  matters.  In 
2019,  there  were  83  accredited  conformity  assessment  bodies  (compared  with  73  in  the 
previous reporting period): 52 laboratories, 21 inspection bodies and 10 certification bodies. 
The  GDA  is  a  signatory  of  the  European  Cooperation  for  Accreditation  Multilateral 
Agreement  (EA  MLA)  in  the  fields  of:  inspections  and  management  systems  certification, 
testing  and,  since  26  May  2020,  certification  of  persons.  It  is  also  a  full  member  of  the 
International  Laboratory  Accreditation  Organisation  Mutual  Recognition  Agreement  (ILAC 
MRA) in the field of inspection and has a mutual recognition agreement with ILAC. Albania 
launched  an  electronic  system  for  accreditation  procedures  in  October  2018  and  five 
applications  were  submitted  online  in  2019.  The  General  Directorate  of  Metrology 
maintained its capacity of 104 employees.  

The  State  Inspectorate  for  Market  Surveillance  (SIMS)  had  54  staff  against  45  in  the 
previous year. It should continue to increase staff numbers, including inspectors. It carried out 
in  total  1  151  inspections  in  2019,  as  a  result,  191  administrative  measures  were  taken, 
including  22  fines  and  56  emergency  measures  that  led  to  dangerous  products  (mainly  toys 
and electrical goods) being withdrawn from the market. 

Harmonised area: sectoral legislation 

Albania’s  ‘new  and  global  approach’  product  legislation  is  designed  to  be  fully  aligned 
with  the  EU  acquis  on  non-automatic  weighing  instruments  and  low  voltage  equipment 
(following  government  decisions  adopted  in  the  reporting  period).  However,  alignment  has 
not  yet  started  on  cableways,  aerosol  dispensers,  explosive  atmospheres  equipment, 
construction products, recreational craft, and eco-design. 

As  regards  ‘old  approach’  product  legislation,  some  positive  steps  were  taken  towards 
further  aligning  the  legal  framework  with  the  EU  Regulation  on  Registration,  Evaluation, 
Authorisation  and  Restriction  of  Chemicals  (REACH)  and  other  related  parts  of  the  EU 
acquis.  National legislation on chemical classification, labelling and packaging is designed 
to  be  aligned  with  the  United  Nations  (UN)  Globally  Harmonised  System  of  Classification 
and Labelling of Chemicals. There were no other developments in the reporting period. 

On drug precursors, the list of controlled substances tallies with the relevant lists in the EU 
acquis.  Partial  alignment  was  achieved  in  the  area  of  procedural  measures,  notably  on 
firearms, textile labelling and mixtures, and the pricing of medicinal products. The legislation 
on  defence  products  and  the  return  of  cultural  objects  unlawfully  removed  from  the 
territory of a Member State is still not aligned with the EU acquis. 

As response to COVID-19, upon joint initiative by the Permanent Secretariat of the Transport 
Community and the CEFTA Secretariat, Albania, alongside all the other governments in the 

63 

 
Western Balkans, has successfully implemented measures to facilitate the transport and trade 
of essential goods within the region. 

5.2.  Chapter 2: Freedom of movement of workers 
Citizens of  one Member  State have the right to  work in  another Member State and must be 
given the same working and social conditions as other workers.  

Albania  is  at  some  level  of  preparation  in  freedom  of  movement  for  workers.  Some 
progress  was  achieved  on  implementing  recommendations  of  the  previous  report,  when  it 
comes to free movement of family members of EU citizens, conclusion of new social security 
bilateral  agreements  and  with  preparation  for  joining  the  European  network  of  employment 
services (EURES) upon accession.  

In the coming year, Albania should: 

  adopt  the  law  amending  the  law  on  foreigners  and  enabling  family  members  of  EU 
citizens to work in Albania without a work permit in line with the EU acquis in the area of 
freedom of movement for workers; 

  continue  negotiating  and  implementing  new  bilateral  agreements  on  social  security, 

notably with EU Member States; 

As regards access to the labour market, EU citizens are eligible to work in Albania without 
a work permit. This is in line with the Law on foreigners (as amended) under which nationals 
of an EU Member State or Schengen country, legally residing in Albania do not need a work 
permit  or  business  registration  certificate.  Immigration  admission  policies  do  not  present 
obstacles  to  the  permanent  settlement  of  EU  workers’  family  members.  The  draft  law 
amending the law on foreigners and enabling family members of EU citizens, who are not EU 
nationals, to work in Albania without a work permit, was adopted by the government and is 
currently undergoing the legislative procedure in the Parliament.  

In  preparation  for  joining  European  network  of  employment  services  (EURES),  Albania 
has set -up an integrated database for its employment services. This will facilitate exchanges 
of  information  between  IT  departments  on  civil  status,  the  tax  system,  the  compulsory 
healthcare  system  and  the  economic  assistance  system.  A  new  service  system  will  be 
developed to enable connection to EURES, upon accession. The Unit for Migration Services 
and  Labour  Relations  under  the  newly  established  National  Agency  for  Employment  and 
Skills  will  have  also  tasks  related  to  EURES  participation.  There  are  plans  under  the  new 
system  of  employment  services  to  supplement  the  national  list  of  occupations  with 
competencies  in  line  with  European  skills/competences,  qualifications  and  occupations 
(ESKO).   

On  the  coordination  of  social  security  systems,  Albania  has  bilateral  agreements  with 
Belgium,  Czechia,  Germany,  Luxembourg,  Hungary,  Austria,  Romania,  North  Macedonia, 
Turkey  and  Kosovo.  It  has  concluded  new  agreements  with  Switzerland  and  Canada  and 
negotiations  with  Bulgaria  for  a  new  agreement  started.  There  have  been  exchanges 
Montenegro, Spain, France and Croatia on coordinating social security schemes. A technical 
cooperation agreement is in place to continue negotiations for a bilateral agreement with Italy. 
Negotiations  and  implementation  of  new  bilateral  agreements  on  social  security  between 
Albania and EU Member States remain to be fostered.  

5.3.  Chapter 3: Right of establishment and freedom to provide services 
EU natural and legal persons have the right to establish themselves in any Member State and 
to provide cross-border services. For certain regulated professions, there are rules on mutual 
recognition of qualifications. Postal services are open to competition since 2017. 

64 

 
Albania  is  moderately  prepared  in  the  right  of  establishment  and  freedom  to  provide 
services.  Limited progress was achieved in  the  reporting period, in  particular on preparing 
the  screening  exercise  of  the  legislation  to  be  aligned  with  the  acquis.  The  country  should 
focus on fully implementing the following Commission’s recommendations from 2019, which 
still remain valid. 

  finalise  screening  of  the  existing  legislation  to  identify  barriers  to  the  freedom  of 
establishment and free movement of services with a view to further aligning its legislation 
with the Services Directive; 

  step  up  efforts 

the  EU  acquis  and  ensure 
legislation  with 
appropriate   institutional  capacity  in  the  area  of  mutual  recognition  of  professional 
qualifications. 

to  align 

its 

On  the freedom  of  establishment  and the  free  movement  of  services,  the  legislation  on 
mining  and  social  policy  is  broadly  in  line  with  the  Services  Directive.  However,  the 
legislation  on  the  veterinary  sector  still  requires  amendment  to  allow  for  the  licensing  of 
private  veterinary  clinics  and  hospitals.  The  legislation  regulating  the  legal  profession  is 
partially aligned with the EU acquis while remaining restrictions apply in particular for public 
notaries  and  private  bailiffs.  The  screening  of  legislation  is  managed  and  monitored  by  the 
Ministry  of  Finance  and  Economy  (MOFE),  which  follows  a  sector-by-sector  approach 
whereby it has identified 34 service sectors and around 125 subsectors. Currently, the process 
is focusing on sectors covered by MOFE, the Ministry of Agriculture and Rural Development 
(MARD) and the Ministry of Tourism and Environment. The first legislative, institutional and 
administrative gap analyses under this chapter were finalised in April-May 2020, paving the 
way to prioritisation of further alignment actions. 

On the freedom to provide cross-border services, the National Business Centre functions as 
a one-stop-shop for registering businesses and issuing licences, authorisations and permits. It 
operates through service desks throughout the country and virtual desks on the government`s 
e-Albania  portal.  In  the  reporting  period,  around  a  million  registered  e-Albania  users 
benefited from over 500,000 electronic services per month. 

On  postal  services,  the  legislation  is  aligned  with  EU  acquis  except  for  the  Regulation  on 
cross-border parcel delivery services. The postal  market has been open to competition since 
2017. There is one universal service provider (Albanian Post S.A.) and 17 other postal service 
providers on the market. The Electronic and Postal Communication Authority (AKEP) is the 
independent  national  regulator  for  the  postal  market.  A  new  postal  strategy  2020-2025  is 
being prepared. 

No progress was made during the reporting period on aligning the professional qualifications 
framework  with  the  EU  acquis  on  the  mutual  recognition  of  professional  qualifications. 
Albania needs to strengthen institutional capacity in this area.  

 Chapter 4: Free movement of capital 

5.4. 
In  the  EU,  capital  and  investments  must  be  able  to  move  without  restriction  and  there  are 
common rules for cross-border payments. Banks and other economic operators apply certain 
rules to support the fight against money laundering and terrorist financing. 

Albania is moderately prepared in the area of free movement of capital. Some progress was 
made  in  the  reporting  period,  particularly  in  the  area  of  payment  systems,  through  the 
adoption  of  the  Law  on  Payment  Systems,  which  aims  at  alignment  with  the  Payment 
Systems  Directive  II.    Some  of  the  Moneyval  report  recommendations  were  implemented, 
while no progress can be reported with the liberalisation of acquisition of land by EU citizens. 

In the coming year, Albania should in particular: 

65 

 
  continue implementing the recommendations of the Moneyval report and continue to align 

with the EU acquis on anti-money laundering/countering terrorism financing;  

  take short- and medium-term measures to address the commitment under the Stabilisation 
and  Association  Agreement  (SAA)  on  granting  rights  to  acquisition  of  land  by  EU 
citizens, which is outstanding since 2016. 

Regarding  capital  movements  and  payments,  the  expiry  date  for  the  Law  on  strategic 
investments  which  provides  special  protection  to  foreign  investments  was  extended  until 
December 2020. The unified Law on investments remains to be adopted. The acquisition of 
real estate by foreigners remains subject to restrictions: foreigners including EU citizens are 
not allowed to acquire agricultural land, forests, meadows or pasture lands. Albania is late in 
delivering on its commitment under the 2006 Stabilisation and Association Agreement (SAA) 
to amend the arrangments for the acquisition of property by EU nationals/entities, which is a 
step  due  since  2016.  An  inter-institutional  working  group  is  foreseen  to  be  established,  to 
ensure the implementation of the national commitments under the SAA. Provisions regulating 
the  acquisition  of  real  estate  by  foreigners  remained  unchanged  and  uncertainties  over 
ownership rights continued to discourage investment. 

As regards payment systems, foreign banks have the right to open branches and agencies in 
Albania and to offer cross-border payments. Non-cash payments are governed by the Bank of 
Albania  (BoA)  Regulation  on  the  payment  system  and  instruments.  In  March  2020,  due  to 
COVID  19  state  of  quarantine,  the  BoA  adopted  measures  to  reduce  the  costs  of  payment 
systems  services,  and  promote  home  banking.  The  legal  and  regulatory  framework  for 
electronic  payments  in  Albania  is  the  same  for  national  and  cross-border  payments.  The 
National  Payment  System  Committee  is  open  to  representatives  of  non-bank  financial 
institutions  and from  the payment system operators and presented the strategy on  Albania’s 
national  retail  payments  strategy  (NRPS)  for  2018-2023.  Implementation  of  the  strategy 
continued with the adoption of the Law on Payment Services, which aims at alignment with 
the  Payment  Service  Directive  II.  Part  of  the  NRPS  objectives  is  the  increase  of  financial 
literacy to Albanian population, aiming at achieving an adult account ownership ratio of 70% 
by 2023 from about 40% that is currently.  

Regarding  the  fight  against  money  laundering,  Albania  made  efforts  to  address  the 
deficiencies  on  technical  compliance  identified  in  the  2018  Moneyval  mutual  evaluation 
report  on  Albania  which,  notwithstanding  deficiencies  in  relation  to  effectiveness,  triggered 
Albania’s  referral  to  the  International  Cooperation  Review  Group.  Albania  intensified  its 
efforts to address most of the Moneyval's recommendations during 2019. The Committee for 
Coordination in the Fight against Money Laundering, chaired by the Prime Minister, adopted 
an action plan in September 2018. A "Moneyval package" was adopted in Parliament in June 
2019 which included amendments to four existing laws, related to i) the prevention of money 
laundering  and  financing  of  terrorism,  ii)  measures  against  terrorism  financing,  iii)  tax 
procedures  and  iv)  the  National  Registration  Centre.  It  also  included  the  adoption  of  a  new 
law  on  the  administration  of  seized  assets.  A  new  law  on  international  restrictive  measures 
was  adopted  in  November.  In  recognition  of  these  efforts  Albania  was  upgraded  on  six 
recommendations  at  the  Moneyval  plenary  in  December.  The  National  Business  Centre 
worked on an assessing the best practices on establishment of beneficial ownership register. 
Preparations for establishment of Beneficial Owner register were at the initial stage. The law 
on establishing a beneficial ownership registry was adopted in July 2020. Due to the fact that 
not sufficient positive and tangible progress  could be demonstrated in relation to addressing 
all  the  identified  strategic  deficiencies,  also  relating  to  the  effective  implementation  of  the 
framework in place, the FATF has placed Albania in the 'grey list', which means the country 
has committed to resolve the identified strategic deficiencies within agreed timeframes and is 
subject  to  increased  monitoring.  A  draft  law  on  fiscal  amnesty  is  under  preparation. 

66 

 
Consultation  with  Moneyval  on  this  initiative  is  needed  as  Albania  needs  to  fulfil  its 
recommendations swiftly and to insure that the activities subject to anti-money laundering and 
financing of terrorism and organised crime do not benefit from the proposed fiscal amnesty. 
In view of the  Moneyval  recommendations,  the  BoA approved a  regulatory package, which 
aims at strengthening the risk management standards and licensing requirements of financial 
institutions, including non-banks and foreign exchange bureaus. As a response to the amended 
Law  on  prevention  of  Money  laundering  and  terrorism  financing,  in  December  the  BoA 
adopted  three  regulations  related  to  the  prevention  of  money  laundering  and  terrorism 
financing; consolidated supervision and to the supervision of electronic banking transactions. 

The BoA inspected 97 foreign exchange offices during 2019, and concluded with 7 cases of 
proposed license revocation and 23 cases with substantial discrepancies, as a result of which it 
took  some administrative measures and provided relevant  recommendations and appropriate 
assistance  for  the  correct  implementation  of  the  anti-money  laundering/counter  terrorism 
obligations.   

Albania  ratified  in  November  2019  the  International  Convention  for  the  Suppression  of 
Counterfeiting Currency. 

The  General  Directorate  for  the  Prevention  of  Money  Laundering  (the  Albanian  Financial 
Intelligence  Unit  or  FIU)  received  six  new    posts,  bringing  the  number  of  staff  to  45  as 
compared to 39 in the previous reporting period. Recruitmentfor the new posts has started.  

The FIU received for 2019  1424 suspicious transaction reports (1525 in 2018 ) and referred 
266  cases  to  law  enforcement  authorities  in  2019  (376  cases  in  2018).  The  decrease  in  the 
number  of  suspicous  transaction  reports  is  mainly  due  to  fewer  reports  from  the  notary 
offices, reflecting better the understanding on what a suspicious transaction is, in line with the 
training provided by the FIU.  

5.5.   Chapter 5: Public procurement 
EU rules ensure that public procurement of goods, services and works in any Member State is 
transparent  and  open  to  all  EU  companies  on  the  basis  of  non-discrimination  and  equal 
treatment. 

Albania is moderately prepared in public procurement. Some progress was made in the past 
year, in particular by amending the law on concessions and public-private partnerships (PPPs) 
to remove the bonus for unsolicited proposal in line with Commission recommendations and 
the adoption of the new law defence and security procurement. Further efforts are needed to 
improve  compliance  with  procedures  and  prevent  corruption  in  the  procurement  cycle.  The 
Commission’s recommendations from 2019 were not fully implemented and remain valid. 

In the coming year, Albania should in particular: 

  adopt the planned new law on public procurement and the law on defence procurement in 

order to further align the legal framework with the EU Directives; 

  adopt  the  prepared  public  procurement  strategy  in  line  with  the  overarching  public 

financial management strategy; 

  ensure  adequate  administrative capacity in contracting  authorities and the supreme audit 

institution. 

Institutional set-up and legal alignment 

The  legal  framework  on  public  procurement  is  largely  in  line  with  2004  EU  directives  on 
public procurement and procurement of utilities as well as relevant administrative and budget 
provisions. The Law on public procurement refers explicitly to the principles of transparency, 
equal  treatment  and  non-discrimination.  Further  alignment  with  the  2014  EU  public 

67 

 
procurement directives is planned through the adoption of a new law on public procurement 
for which public consultation ended in March 2020. In July 2019, the Law on concessions and 
public-private  partnerships  (PPPs),  partly  aligned  with  the  EU  Directive  on  the  award  of 
concession contracts, was amended to abolish bonuses for unsolicited offers, to limit the use 
of unsolicited offers in specific sectors and to strengthen controls on the fiscal implications of 
concessions/PPP  contracts.  All  legal  and  financial  instruments  in  the  area  of  public 
procurement  and concessions, including inter-governmental agreements  with  other countries 
on  the  implementation  of  joint  projects,  should  comply  with  the  principles  of  transparency, 
competition,  equal  treatment  and  non-discrimination.  A  new  law  on  defence  and  security 
procurement was adopted in April 2020 intended to largely align the framework in this area 
with the relevant EU Directive. In response to the Covid-19 situation, procurement procedures 
were conducted mostly under the rules of competitive procedure, direct award procedure, and 
negotiated procedure without prior publication alongside instructions to delay or cancel non-
essential procurements. 

The 2019-2022 public financial management (PFM) strategy was adopted in December 2019. 
The revised public investment management guidelines (approved in March 2018) still require 
full  and  effective  implementation.  A  strategic  framework  for  public  procurement  was 
published for public consultation in June 2020. 

The Public Procurement Agency (PPA) is the central public procurement entity mandated to 
propose  regulatory  measures  and  monitor  compliance  with  public  procurement  rules.  It 
provides contracting authorities with information, support and guidance. Its staffing remains 
at 44 posts, three of which are vacant.  

Implementation and enforcement capacity 

Albania’s  public  procurement  market  represented  4.7  %  of  the  GDP,  slightly  below  the 
2018  level.  The  average  number  of  bids  per  tender  was  2.37,  as  compared  to  3.05  in  2018. 
The planning and preparation of public procurement procedures are generally transparent and 
efficient principles, and public procurement forecasts are published regularly. 

On the monitoring of contract awarding and implementation, following new instructions 
and  close  monitoring  by  the  PPA,  the  number  of  negotiated  procedures  without  prior 
publication continued to fall significantly  in 2019 (to  192, from  531 in 2018 and 2,234 in 
2017). In terms of volume, these represented 2.8% of all awarded procedures. From January 
to  May  2020,  the  number  of  negotiated  procedures  without  prior  publication  related  to 
COVID-19 procurements was 122, which accounted for 0.8% of value of all procurements in 
that period. The use of framework agreements expanded further (to 763, from 627 in 2018). 
For  categories  of  common-use  goods  and  services,  the  centralised  procurement  body  in  the 
Ministry of the Interior became an agency in 2018, thus providing intermediary functions in 
line with EU directives. 

Albania has a  central electronic public procurement portal  on which it  publishes tender  and 
contract  notices,  and  other  important  information  and  guidance.  Use  of  the  portal  is 
mandatory, including for low-value procurement. Standard tendering documents for each type 
of  procedure  and  contract  are  published  on  the  PPA  website,  and  the  procurement  forecast 
register is prepared and posted online. 

By  the  end  of  2019,  the  concessions  registry  contained  information  on  224  PPPs,  five  of 
which had been signed in 2019. Although required by law, value-for-money analysis is still 
not  systematically  carried  out  before  approval  of  all  PPPs.  MOFE  made  initial  attempts  to 
establish  regular  monitoring  and  reporting  on  PPPs.  The  technical  skills  and  capacity  to 
design and assess concessions and PPPs require further development.  

The  PPA  has  recently  strengthened  its  monitoring  role,  and  applies  a  monitoring  system  to 
assess  procurement  performance,  procurement  compliance  and,  since  2019,  contract 

68 

 
implementation,  with  information  available  for  1,006  contracts.  The  monitoring  system  is 
based on a variety of performance indicators. There is still a need for: (i) further support for 
contracting  authorities;  (ii)  a  strengthening  of  the  e-procurement  system;  (iii)  monitoring  of 
contract implementation; and (iv) analysis of market trends in public procurement. 

The  contracting  authorities  lack  the  capacity  to  manage  public  procurement  processes 
effectively. Compliance is still generally weak, especially in more complex procedures. Some 
progress  was  noted  regarding  integrity  and  conflicts  of  interests.  The  PPA  has  already 
issued  instructions  on  the  declaration  of  conflicts  of  interest  by  procurement  officials.  In 
addition it adopted a regulation on prevention of conflicts of interest in the exercise of public 
functions  in  the  PPA.  The  State  Audit  Institution  (SAI)  reported  a  substantial  number  of 
irregularities in public procurement, with an estimated loss to the state budget of around EUR 
13.9 million21 in 2019 (as compared with € 9.4 million in 2018 and € 12 million in 2017).  

Efficient remedy system  

The Constitution and the Law on public procurement contain provisions on the right to legal 
remedy  that  are  mostly  in  line  with  the  Remedies  Directive.  Albanian  law  still  has  no 
provisions on the ineffectiveness of contracts, alternative punishments and ex ante voluntary 
transparency notices. The remedy system is easily accessible to economic operators, without 
discrimination. However, the complainant must pay a fee equal to 0.5% of the budget for the 
procurement  procedure,  which  is  refunded  once  the  complaint  is  accepted  and  granted.  For 
refused complaints, the fee is transferred to the state budget. 

The  Public  Procurement  Commission  (PPC)  is  an  independent  review  body  dealing  with 
complaints related to public procurement procedures. Its decisions can be challenged before 
the Administrative Court.  

Most  initial  complaints  lodged  with  contracting  authorities  are  dismissed,  complainants  are 
therefore forced to appeal to the PPC. The processing of complaints within the legal time limit 
improved in 2019, but remains a challenge. An electronic database for PPC decisions would 
improve the transparency of the review system. 

Although  the  remedy  procedure  is  largely  in  place,  the  capacity  of  the  PPC  and  the 
Administrative Court to deal with a high number of appeals needs to be improved. There are 
no specialised training courses on public procurement. 

5.6.  Chapter 6: Company law 
The  EU  has  common  rules  on  the  formation,  registration  and  disclosure  requirements  of  a 
company,  with  complementary  rules  for  accounting  and  financial  reporting,  and  statutory 
audit. 

Albania is moderately prepared in the field of company law. Some progress was made in 
the implementation of the 2018 law on accounting, which aimed at further alignment with the 
acquis in the corporate accounting area. Recommendations from the previous year were only 
partially met and remain valid. 

In the coming year, Albania should in particular: 

  review  the  existing  legislation  in  the  area  of  company  law  with  a  view  to  identifying 

amendments needed to complete alignment with the EU acquis,  

  ensure full transparency of company financial statements in the business register; 

Although  there  is  some  alignment  with  the  EU  acquis  in  a  range  of  company  law  areas, 
including  on  takeovers  and  cross-border  mergers,  there  was  no  legislative  progress  in  the 
reporting  period.  The  National  Business  Centre  is  responsible  for  company  registration, 

21 LEK 1,678,989,000; exchange rate EUR/LEK on 31/12/2019 = 120.562 

69 

 
                                                           
allowing  free  online  registration  and  online  access  to  data  (business  registration  is  offered 
only  online  on  the  e-Albania  electronic  service  window  since  1  January  2020.)  In  February 
2020,  it  signed  an  agreement  for  participation  in  the  South-East  Europe  Regional  Business 
Registries Portal. 

In the area of corporate accounting, the 2018 Law on accounting and financial statements is 
partially  aligned  with  the  EU  Accounting  Directive  (e.g.  on    company  size,  management 
report  requirements,  exemptions  for  small  companies  from  the  obligation  for  detailed 
disclosures, and rules for large and public interest economic entities active in the extractive or 
logging  industries).  Albania  needs  to  further  align  its  legal  framework  in  the  area  of  non-
financial  reporting  in  line  with  the  Directive  on  disclosure  of  non-financial  and  diversity 
information  by  certain  large  undertakings  and  groups.  In  November  2019,  the  Minister  for 
Finance  and  Economy  appointed  members  to  the  National  Accounting  Council,  which 
monitors the enforcement of financial reporting and accounting standards. Albania also took 
some  steps  to  ensure  transparency  of  financial  statements.  In  April  2019,  the  National 
Business Centre received a modernised electronic reporting system for filing and publishing 
financial statements. 

On  auditing,  the  Public Oversight  Board  (POB)  is  the  independent  competent  authority  for 
quality  assurance  (with  its  own  budget).  In  July  2019,  it  adopted  a  decision  regulating  the 
investigation and discipline of statutory  auditors/auditing firms, and certified accountants. In 
the  reporting  period,  the  Investigation  and  Disciplinary  Commission  issued  10  disciplinary 
measures  (nine  fines  and  one  temporary  licence  suspension).  Albania  should  continue  to 
strengthen POB capacity and align with EU statutory audit rules. 

5.7.   Chapter 7: Intellectual property law 
The EU has harmonised rules for the legal protection of intellectual property rights (IPR) and 
of  copyright  and  related  rights.  Rules  for  the  legal  protection  of  IPRs  cover,  for  instance, 
patents and trademarks, designs, biotechnological inventions and pharmaceuticals. Rules for 
the legal protection of copyright and related rights cover, for instance, books, films, computer 
programmes and broadcasting. 

Albania  has  some  level  of  preparation/is  moderately  prepared  on  intellectual  property 
rights.  Limited  progress  was  made  during  the  reporting  period,  in  particular,  with  the 
legislative alignment with the EU acquis in the area of trade secrets. Recommendations from 
the previous year were partially met and remain valid. 

In the coming year, Albania should in particular: 

→ intensify the efforts to align its legislation on copyright and neighbouring rights with the 

EU acquis;  

  further  improve  the  functioning  of  collective  management  agencies  and  the  payment  of 

royalties to right holders; 

  further align legislation on industrial property rights and the IPR enforcement system.  

In the area of  copyright and neighbouring rights, the two main bodies responsible are the 
General  Directorate  of  Industrial  Property  (GDIP),  which  is  in  charge  of  registering, 
administrating  and  promoting  IP  objects  and  the  Copyright  Directorate.  The  National 
Copyright  Council,  consisting  of  five  members  appointed  by  the  Minister  for  Culture,  is 
responsible for certifying the tariff methodology. 

No further legislative alignment was achieved in the reporting year. Following the decision of 
the  National  Council  of  Copyright  of  May  2020,  the  one-stop-shop  set  up  to  increase  the 
contribution base of tariffs collected by collective management organisations (CMOs) is now 
administered  by  the  CMO  “F.M.A.A”.  Both  the  National  Council  of  Copyright  and  the 

70 

 
Copyright  Directorate  supervise  the  system.  The  functioning  of  the  collective  management 
system and the payment of royalties to right holders needs to be further improved. 

On industrial property rights, the GDIP has prepared a draft Law on trade secrets in order to 
align the with the EU acquis. It is scheduled for adoption by the end of 2020. 

The  number  of  applications  to  register  industrial  property  continued  to  rise  with  2,654  new 
applications  (including  1,475  trademarks  and  1158  for  patents)  in  the  reporting  period.  The 
GDIP participated in 17 court proceedings. 

The  SIMS  Copyright  Division  of  the  State  Inspectorate  for  Market  Surveillance  (SIMS) 
carried  out  496  inspections  resulting  in  48  administrative  measures.  The  activities  of  the 
SIMS  Industrial  Property  Division  took  74  administrative  measures  (69  warnings  and  five 
fines). 

The customs administration suspended the release of 23,440 products suspected of infringing 
IPR. The high number of counterfeit products in the country remains a cause for concerns. 

5.8.   Chapter 8: Competition policy 
EU rules protect free competition. They include antitrust rules against restrictive agreements 
between companies and abuse of dominant position, and also include rules on concentrations 
between  companies  which  would  significantly  impede  competition.  EU  rules  also  set  out  a 
system  of  State  aid  control.  Governments  are  only  allowed  to  grant  State  aid  if  restrictive 
conditions are met, with a view to preventing distortion of competition. 

Albania  has  some  level  of  preparation  /  is  moderately  prepared  in  competition  policy. 
There was some progress during the reporting period, in particular in the area of application 
of the competition rules. However, no progress was made in improving legislative alignment 
with  the  acquis  and  enforcement  of  State  aid  rules.  Despite  previous  recommendations,  the 
operational  independence  of  the  State  aid  Commission  (SAC)  has  not  yet  been  ensured. 
Furthermore, the SAC needs to redouble efforts to improve its enforcement record. 

In the coming year, the country should in particular: 

 

 

 

significantly increase the administrative capacity of SAC’s secretariat, which currently 
raises serious concerns; 

ensure the operational independence of the SAC; 

raise  awareness  of  the  SAC  with  respect  to  line  ministries,  regional  and  local 
authorities  in  order  to  ensure  prior  notification  of  aid  measures  and  strengthen  the 
enforcement of State aid rules. 

Antitrust and mergers 

Albania’s legislative framework is broadly in line with the EU acquis and the Stabilisation 
and  Association  Agreement  (SAA).  The  Law  on  the  protection  of  competition  is  largely 
aligned  with  Article  101  TFEU  (restrictive  agreements)  and  Article  102  TFEU  (abuses  of 
dominant  position).  It  also  provides  for  prior  control  of  mergers,  in  line  with  the  Merger 
Regulation. Implementing legislation is broadly in line with the relevant EU regulations and 
Commission guidelines. In the reporting period, the Albanian Competition Authority (ACA) 
approved guidelines and procedures protecting those who have suffered damage as a result of 
breaches of competition rules. 

As regards the institutional framework, the ACA is responsible for implementing the Law 
on  the  protection  of  competition.  It  is  an  operationally  independent  authority  reporting  to 
Parliament.  It  can  adopt  implementing  legislation,  impose  fines  and  remedies,  prohibit 
mergers or authorise them with or without conditions. It can conduct sector enquiries and, on 
its  own  initiative,  issue  opinions  and  recommendations  on  draft  laws  that  may  affect 

71 

 
competition. A leniency programme is in place for companies providing information on cartel 
cases.  Parties  may  appeal  against  the  ACA’s  decisions  before  the  courts.  The  ACA  took 
several  initiatives  to  raise  awareness  among  companies  about  the  existence  of  competition 
rules,  these  initiatives  have  targeted  to  specific  sectors,  for  instance  trainings  on  the  mobile 
phones  industry  market.  Further  initiatives  should  be  taken  in  the  future  in  order  to  raise 
awareness on the work of the ACA. 

RAs regards enforcement capacity, the ACA has increased its number of staff to 46. Its level 
of  expertise  has  benefited  from  a  series  of  training  courses  organised  with  the  European 
Commission,  the  REKABET,  UNCTAD,  OECD,  EBRD  and  the  Italian  Competition 
Authority.  On  implementation,  in  the  reporting  period  ACA  took  116  decisions,  including 
nine  on  prohibited  agreement,  13  on  abuse  of  dominant  position  and  36  authorising 
concentrations.  No  fines  were  imposed.  The  ACA  should  continue  to  strengthen  the 
enforcement of competition rules. 

State aid 

The legislative framework on State aid is broadly in line with the EU acquis and the SAA. 
The  Law  on  State  aid  largely  reflects  Articles  107  and  108  TFEU.  The  implementing 
legislation  is  partially  aligned  with  the  EU  acquis  in  some  areas  e.g.  the  General  Block 
Exemption  Regulation.  Further  alignment  with  EU  implementing  legislation  on  State  aid 
control is needed. 

As regards the institutional framework, the State Aid Commission (SAC) is responsible for 
implementing  the  Law  on  State  aid.  As  MOFE  (an  aid-granting  institution)  continues  to 
determine  its  organisational  arrangements,  the  SAC  cannot  be  considered  an  operationally 
independent authority, as required by the SAA. Under the Law on State aid new aid measures 
must  be  notified  to  the  SAC,  which  must  find  them  compatible  before  they  can  be  put  in 
place. The SAC can order the recovery of illegal and incompatible aid but has not done so to 
date. Its decisions are subject to court appeal. 

The  enforcement  capacity  of  the  SAC  secretariat  continues  to  raise  serious  concerns;  it  is 
currently insufficient  and needs to  be significantly strengthened.  It  has  yet  to  be shown that 
the Law on State aid is being implemented effectively. The track record on State aid control 
is very poor. In the reporting period, the SAC adopted seven decisions on State aid schemes 
notified  by  aid  grantors.  No  negative  or  recovery  decision  was  taken.  The  final  draft  of  the 
2019-2022 PFM strategy sets  the objective of strengthening  effectiveness  of State Aid.  It  is 
also  important  to  expand  the  SAC’s  role  in  advising  line  ministries  and  regional  and  local 
authorities. Implementation of the State aid rules in large projects involving Albania and other 
countries should be monitored more closely. Advocacy among aid  grantors must be stepped 
up to ensure prior notification of aid measures to the SAC. 

Liberalisation 

The Law on State aid applies to all legal and natural persons perform an economic activity. 
There  has  been  no  investigation  of  State  aid  for  public  undertakings  or  undertakings  with 
special or exclusive rights. 

5.9.  Chapter 9: Financial services 
EU rules aim at ensuring fair competition between and the stability of financial institutions, 
namely  banking,  insurance,  supplementary  pensions,  investment  services  and  securities 
markets. They include rules on authorisation, operation and supervision of these institutions. 

Albania is moderately prepared in the area of financial services. Some progress was made 
in  addressing banking supervision and in  further  aligning the legislation with  regards to  the 
bank  recovery  and  resolution.  There  was  limited  progress  on  the  finalisation  of  the 

72 

 
implementation  of  the  non-performing  loans  stategy  and  no  progress  on  the  compulsary 
insurance in the transport sector. 

In the coming year, Albania should: 

 

 

 

align  its  legislation  with  the  EU  capital  requirements  framework  corresponding  to 
Basel  III  and  continue  with  the  implementation  of  macro-prudential  policy  and  the 
resolution framework; 

ensure  the  full  implementation  of  the  non-performing  loan  resolution  strategy  by  all 
relevant actors; 

accelerate the adoption of the amendments to the Law on compulsory insurance in the 
transport sector. 

Regarding banks and financial conglomerates, the Bank of Albania (BoA) has continued to 
align the banking regulation with Basel III, notably the liquidity coverage ratio and the macro-
prudential  framework.  There  was  further  progress  made  by  the  Albanian  regulator  during 
2019  in  approving  a  number  of  regulations  and  progressing  on  finalising  the  rulebook  for 
recovery  and  resolution  of  banks.  Regarding  the  state  of  play  of  the  strategy  on  non-
performing  loans,  in  July  2019  a  new  regulation  on  out-of-court  treatment  of  distressed 
borrowers by banks was adopted, aiming at a more prudential approach towards restructured 
loans,  including  their  classification  and  provisioning.  In  October  2019,  all  the  banks  signed 
the  framework  agreement  on  out-of-court  restructuring.  The  non-performing  loan  ratio 
continued to decrease from 11.08% in December 2018 to 8.37% in  December 2019, mainly 
due  to  write-offs  and  some  loan  restructuring.  Further  actions  with  regard  to  credit  scoring 
will  be  needed.  Full  implementation  of  the  Non-performing  Loans  Resolution  Strategy 
requires the further improvement of the credit registry, as well as the full implementation of 
the  bankruptcy  law.  Part  of  the  collateral  execution  system  is  currently  the  subject  of  court 
proceedings, which reduces its efficiency.  

In 2019, the Supervisory Council of BoA adopted the Medium Term Development Strategy 
2019-2021, with  specific objectivities in  the field  of supervision of the  entities that conduct 
banking  and/or  financial  activities.  Albania  has  a  system  of  identification  of  systemically 
important  banks  similar  to  EU  practice.  BoA  approved  the  investment  policy  for  the 
administration of the financial assets of the Resolution Fund. In April 2020, the Supervisory 
Board amended the regulations on capital adequacy ratio and on risk management from large 
exposures  of  banks  to  allow  preferential  treatment  of  banks’  exposures  in  Albanian 
government debt securities in foreign currency, which were issued later during April.  

In  response  to  the  COVID-19  emergency,  BoA  announced  a  temporary  change  on  the 
provisioning  requirements  in  March  2020,  enabling  clients  to  ask  banks  and  other  financial 
institutions  to  defer  loan  instalments  without  penalties.  It  suspended  the  requirements  for 
classification and provision of loans until end of August 2020, and also introduced relaxation 
measures on loan classification and provisioning for loans restructured between 12 March and 
December 2020. BoA also temporarily suspended the dividend distribution for 2019 and 2020 
for banks  in  order to  boost  capital  and support lending. The implementation  deadline of the 
regulation “On out-of-court treatment of distressed borrowers by banks” has been postponed 
until January 2022. BoA also postponed by one year, until January 2022, the entry into force 
of tighter requirements for the classification and provision of restructured loans. 

In the area of insurance and occupational pensions, amendments to the Law on compulsory 
insurance in the transport sector still need to be adopted.  Implementation of the Strategy on 
consumers and investors' confidence in the supervised markets continued through activities to 
improve  public  financial  education  and  consumer  awareness.  The  Albanian  Financial 
Supervisory Authority (AFSA) is a member with full rights of international organisations of 

73 

 
regulators  for  insurance,  securities  and  pension  funds.  Following  the  26  November 
earthquake, the Albanian authorities drafted legal provisions to allow for the establishment of 
a national insurance agency on earthquake and the introduction of a mandatory insurance for 
buildings.  

In  the  area  of  financial  market  infrastructure,  the  Albanian  Stock  Exchange,  a  private 
entity, continues to operate with government securities only, while the public stock exchange 
remains suspended. A Central Securities Depository (AFISAR) is in place, which supports the 
process of settlement and registration of Government securities. It is operated by BoA, while 
the settlement of non-government securities is enabled by the Albanian Securities Registry, a 
private company, which since December 2019 fully operates as a registrar and a clearing and 
settlement system. According to the agreement between the Bank of Albania and the Albanian 
Financial Supervisory Authority, BoA is responsible for minimising the systemic risk, while 
AFSA is responsible for investor protection. The expiry period of the privatisation vouchers 
has been extended until December 2020. The Law on collective investments was adopted in 
April 2020.  The law on capital markets was adopted in May 2020 and will enter into force on 
1  September  2021.  These  laws  partially  align  Albania’s  framework  with  MiFID  II,  the 
transparency directive, the market abuse regulation, the prospectus regulation, the regulation 
on  settlement  and  central  securities  depositaries  (capital  markets  law)  and  the  directives  on 
Undertakings  for  Collective  Investments 
in  Transferable  Securities  and  Alternative 
Investment Fund Managers (collective investment law).  

As regards securities markets and investment services, companies were authorised to issue 
bonds  for  private  offerings  to  institutional  investors,  their  shareholders  or  individuals.  The 
liquidity requirements for investment funds were strengthened.   

 Chapter 10: Information society and media 

5.10. 
The  EU  supports 
for  electronic 
communications, electronic commerce and audio-visual services. The rules protect consumers 
and support the universal availability of modern services. 

internal  market 

functioning  of 

the  smooth 

the 

Albania is moderately prepared in the field of information society and audio-visual media. 
Some progress was made on implementing the recommendations of the previous report, with 
the adoption of part of the necessary amendments to the Law on Electronic Communication. 
Progress  was  made  on  the  digital  agenda  strategy  and  e-government  services,  and  with  the 
signature of the Regional Roaming Agreement. The finalisation of the digital switchover was 
postponed  and  further  financial  efforts  are  required  to  implement  the  European  emergency 
number 112. 

In the coming year, Albania should in particular: 

 

 

 

continue to adopt the necessary amendments to the Law on Electronic Communication, 
in alignment with the new European Electronic Communications Code, and approve the 
action plan for the digital agenda;   

finalise and adopt the national cybersecurity strategy; 

draft a digital skills strategy. 

On electronic communications and information and communications technologies (ICT), 
no  progress  was  made  in  implementing  the  single  European  emergency  number  112  as 
planned in the 2015-2020 public order strategy. The unified 112 emergency number currently 
operates in the region of Tirana only, and further efforts are required to extend it to the whole 
country.  The  current  structure  of  the  Authority  of  Postal  and  Electronic  Research  has  85 
employees, including five board members.  

74 

 
Fixed  internet  broadband  penetration  is  low,  with  436,192  subscribers  connected  in  the 
December of 2019, a 20% increase from 2018, with a penetration rate of about 15.24% of the 
population  and  60%  of  the  households  being  covered.  There  is  a  considerable  gap  in  fixed 
internet-broadband penetration between urban and rural areas. Rural areas account for 40% of 
the population, but only 5% are connected to the internet. The mobile penetration rate at the 
end of 2019 was 61.8% compared with 63% at the end of 2018. In 2019, there were about 1.7 
million active users of mobile broadband, about 1.2 % compared with 2018. The volume of 
data usage during 2019 increased by 15% compared with 2018. 

In the area of information society services, the revised 2015-2020 digital agenda action plan 
was updated in July following public consultation, revised in March 2020 but remains to be 
approved by the Council of Ministers. There is no digital skills strategy in place. 

In 2019, the National Agency for the Information Society (NAIS) launched "TechSpace", an 
ICT  Lab  to  support  start-ups  and  students  with  education  in  the  latest  technologies,  and 
continues to manage the e-government portal offering 627 on-line public services (29 more 
than in 2018 for a total of 1818 services as of 8 June 2020). There are over 1 500 000 uses of 
electronic services each month on the e-Albania portal. Over 12.7 million uses of electronic 
services  were  registered  during  January  –  May  2020  (compared  to  2  947  000  in  the  same 
period one year ago). In 2019, the government interoperability platform (allowing interaction 
between  53  electronic  systems  owned  by  public  institutions)  registered  a  35%  increase  in 
activity.  

A  new  National  Broadband  Plan  2020-2025  was  approved  in  June  2020.  The  Plan  aims  to 
develop  the  broadband  infrastructure  for  a  gigabit  society.  A  feasibility  study  for  the 
preparation  of  the  National  Framework  Programme  for  the  Development  of  Broadband 
Infrastructure in areas lacking sufficient commercial interest for investment was completed in 
June  2020.  In  addition,  a  draft  5G  road  map  is  being  prepared.  The  authorities  signed  the 
regional  roaming  agreement  in  April  2019.  The  Electronic  Postal  and  Communication 
Authority approved the final decisions on Western Balkans roaming in June 2019. 

The Law on cybersecurity is partly aligned with the EU Directive on the security of network 
and information systems. Albania has established a list of critical information infrastructures 
and  the  necessary  implementing  legislation.  In  2019,  the  National  Authority  for  Electronic 
Certification and Cyber Security (NAECCS) drafted a national cybersecurity strategy that still 
needs to be adopted.  

In order to monitor progress on compliance with the EU rules  on electronic communications 
and  information  society  services  and  convergence  with  the  internal  market,  as  well  as  the 
alignment  with  the  Digital  Agenda  for  the  Western  Balkans,  Albania  needs  to  improve  the 
collection of statistical data on digital performance and digital competitiveness. 

In the field of audio-visual policy, the digital switchover continues to be postponed and the 
Audio-visual Media Authority (AMA) announced the end of 2020 as the new deadline for the 
conclusion  of  the  process.  The  digital  infrastructure  of  the  public  broadcaster  (RTSH)  has 
been  completed  throughout  the  country.  The  private  national  providers  continue  to  develop 
their  infrastructure  in  the  few  remaining  regions,  mainly  in  the  north.  On  1  October  2019, 
analogue broadcasting was switched off in the regions of Tirana and Durrës, with 80% of the 
population  now  having  access  to  digital  broadcasting.  An  analogue  switch-off  process 
continues  in  the  remaining  regions  that  still  receive  both  analogue  and  digital  broadcasting. 
The timeline might be influenced by the process of electing the new AMA chair, replacing the 
two AMA members whose mandate has expired and adopting the new media legislation.    

5.11.   Chapter 11: Agriculture and rural development 

75 

 
The  common  agricultural  policy  (CAP)  supports  farmers  and  rural  development.  This 
requires  strong  management  and  control  systems.  There  are  also  common  EU  rules  for 
quality policy and organic farming. 

Albania  has  some  level  of  preparation  in  agriculture  and  rural  development.  During  the 
reporting  period,  there  was  some  progress  in  adopting  and  implementing  the  new  legal 
framework for quality policy; ensuring administrative capacities for the implementation of the 
instrument  for  pre-accession  assistance  for  the  rural  development  programme  (IPARD  II). 
Albania submitted a new measure ‘Technical Assistance’ for entrustment. The Commission’s 
recommendations from 2019 were not fully implemented and remain valid. 

In the coming year, Albania should in particular:  

 

 

 

set  up  as  a  priority  a  farm  register  by  the  end  of  2020,  further  improve  the  animal 
registers  and  adopt  an  implementation  plan  to  establish  the  farm  accountancy  data 
network (FADN) to provide validated data for policy-making;  

ensure  administrative  capacity  required  to  fully  implement  available  IPARD  II 
funding  and  to  prepare  for  the  entrustment  of  the  remaining  measures  under  the 
IPARD II programme; 

complete the legal framework for organic products and quality schemes, as well as on 
vineyards  and  wine,  and  ensure  the  institutional  and  administrative  capacity  for  its 
implementation. 

As  regards  horizontal  issues,  continuous  capacity  building  of  the  IPARD  authorities  is 
required  to  receive  entrustment  for  implementation  of  new  measures  under  the  IPARD 
programme. Strong cooperation among responsible national authorities should be ensured to 
facilitate the successful implementation of the IPARD programme.  

Priority should be given to establishing a farm register by the end of 2020. This is an element 
of  the  integrated  administration  and  control  system  (IACS),  but  can  be  of  assistance  to 
implement  the  IPARD  II  programme.  Albania  registered  no  progress  in  establishing  a  land 
parcel  identification  system  (LPIS)  and  has  no  farm  accountancy  data  network  (FADN). 
However,  it  started  basic  preparatory  work  on  the  latter  and  this  should  be  stepped  up  by 
adopting an implementation plan with a concrete timeline.  

Direct  payments  coupled  to  production  and  not  subject  to  cross-compliance  rules  decreased 
overall,  but  still  accounted  for  85%  of  the  farm  support.  The  decrease  in  the  national 
agriculture budget is of concern, as IPARD II should not be seen as a substitute for national 
support. The farm advisory service at regional level was reorganised in four main regions. A 
clear strategy is yet to be adopted to complete the reform of the advisory system. 

No progress can be reported on the common market organisation (CMO). Draft legislation 
on wine remains  to  be  adopted and Albania should  take additional steps to  align this sector 
with the EU acquis. 

On  rural  development,  on  3  April  2020,  the  Commission  granted  Albania  conditional 
entrustment  of the  ‘Technical Assistance’  measure under the  IPARD programme, subject  to 
fulfilment  of  certain  conditions.  The  IPARD  implementation  in  Albania  had  a  good  start  in 
terms of number of contracts signed as well as their corresponding contracted value. Albania 
should make use of the list of short-term actions made available by the Commission in order 
to  counter  the  negative  effects  of  the  COVID-19  crisis,  avoid  de-commitment  of  funds  and 
ultimately increase the number of IPARD-funded investment projects finalized and paid. The 
national authorities mobilised the resources to avoid de-commitment of IPARD II programme 
funding  at  the  end  of  2019.  However,  extra  effort  is  needed  as  the  risk  of  de-commitment 
remains high for 2020.  

76 

 
Albania adopted a new Law on quality policy, which is partly aligned with the EU acquis and 
requires subsequent implementing legislation. It establishes quality schemes and  responsible 
bodies for the recognition and protection of quality terms.  

The  level  of  alignment  with  the  EU  acquis  on  organic  farming  remains  low.  Albania  re-
introduced support for organic farming in 2020. 

5.12.   Chapter 12: Food safety, veterinary and phytosanitary policy 
EU hygiene rules for  foodstuff production ensure a high  level  of  food  safety. Animal health 
and welfare and the safety of food of animal origin are safeguarded together with the quality 
of  seeds,  plant  protection  material,  protection  against  harmful  organisms  and  animal 
nutrition. 

Albania  has  some  level  of  preparation  in  this  area.  Albania  made  some  progress  in 
implementing  relevant  measures  in  the  food  safety  and  veterinary  sectors,  as  well  as  in  the 
animal  register.  However,  so  far,  the  restructuring  of  the  veterinary  sector  is  still  to  be 
implemented. Albania needs to design a coherent roadmap to ensure the alignment, capacity 
building  and  implementation  of  the  EU  acquis  on  official  controls,  animal  health  and  plant 
health  in  the  frame  of  a  consolidated  national  food  safety  policy.  The  Commission’s 
recommendations from 2019 were not fully implemented and remain valid. 

During 2020, Albania should in particular:  

 

 

 

 

complete  the  reorganisation  of  the  veterinary  service  to  enhance  the  efficiency  and 
ensure a suitable level of administrative capacity; 

continue to efficiently implement the new rabies vaccination programme (2020-2021);  

adopt a new risk-based methodology for the planning of official food safety controls; 
implement official controls according to the updated annual inspection plans based on 
an improved risk -based methodology for the planning of official food safety controls; 

improve the control of plant protection products and consolidate the pesticide residues 
monitoring capacity in food products. 

On general food safety, the National Food Authority carried out regular official controls in 
line with an annual risk-based plan, and took relevant measures, including warnings, fines, the 
seizure  and  disposal  of  non-consumable  food,  and  activity  suspension.  However,  risk 
assessment capacity based on scientific opinion remains weak and must be improved.  

At the current stage, it is important to: enhance official controls by adopting an improved risk-
based methodology, produce clear and detailed official control statistics that are based on the 
relevant  information  system  assisting  in  the  preparation  of  annual  inspection  plans  and  the 
design  of  specific  policies  in  the  sector,  establish  internal  audits,  and  continue  ensuring 
training of staff.  

As  regards  veterinary  policy,  following  the  approval  of  the  disease  control  strategies,  the 
Ministry of Agriculture and Rural Development (MARD) continued to work on a regulation 
establishing criteria for national programmes to accelerate the eradication of certain diseases 
in cattle (e.g. brucellosis, tuberculosis and leucosis).    

Implementation  of  programmes  for  the  monitoring  of  brucellosis  and  tuberculosis  in  cattle 
herds  of  over  10  heads  continued,  as  did  vaccination  against  lumpy  skin  disease  in  cattle, 
brucellosis on replacement animals in small ruminants and anthrax.  

Animal  numbers  were  verified  and  registered  countrywide,  but  the  animal  register  still 
requires updating. The new data are expected to improve information on the real number of 
animals and help the veterinary service to plan the measures and budget for registration and 
animal disease control.  

77 

 
The  amendments  to  the  veterinary  law  approved  in  June  2020  are  expected  to  improve  the 
structure  and  functioning  of  the  Veterinary  Service  by  avoiding  fragmentation  and  improve 
the  chain  of  command  and  communication.  However,  the  reform  is  yet  to  be  completed. 
Problems  identified in  the previous report should be addressed,  and adequate administrative 
capacities should be ensured.  . 

With  regard  to  the  placing  on  the  market  of  food,  feed  and  animal  by-products,  the 
national  residue  monitoring  plan  (covering  veterinary  medical  products,  pesticide  residues, 
heavy metals and mycotoxins in live animals and products of animal origin) was implemented 
in line with the requirements and validated analytical methods.   

Albania implemented the annual national plan for official controls based on risk and sampling 
of food, feed, plants and agriculture inputs, and the sampling plan in border control posts. In 
addition  to  adoption  of  a  risk-based  approach  to  inspections,  in  conjunction  with  the  other 
areas of food safety and veterinary policy, attention should be paid to investments in border 
control posts facilities. 

Actions  under  the  Instrument  for  Pre-Accession  Assistance  (IPA),  including  equipment  and 
staff training, have enhanced the capacity to monitor pesticide residues in food products.  

As regards food safety rules, the Council of Ministers endorsed amendments to the Law on 
food and these were approved by the Parliament  in February 2020. One of the amendments 
concerns exemptions from the hazard analysis and critical control points (HACCP) system for 
producers of traditional products and small producers of primary products selling directly to 
consumers.  

On phytosanitary policy, MARD continued with the approval of active substances of plant 
protection products under the 2016 Law on plant protection. In line with the EU  acquis, the 
government  approved an implementing regulation on the sustainable use of plant protection 
products and eligibility criteria for users.  

As  regards  the  legislation  on  feed  and  genetically  modified  organisms  (GMOs),  the 
regulation  on  the  “Rules  for  labelling  of  feed  for  animals  used  for  food,  including  those 
consisting of or containing GMOs” was approved by the government in May 2020, following 
earlier notification to the World Trade Organization (WTO).   

5.13.   Chapter 13: Fisheries 
The  common  fisheries  policy  lays  down  rules  on  fisheries  management,  protects  living 
resources  of  the  sea  and  limits  the  environmental  impact  of  fisheries.  This  includes  setting 
catch  quotas,  managing  fleet  capacity,  rules  on  markets  and  aquaculture  and  support  for 
fisheries and coastal communities.  

Albania  is  still  at  an  early  stage  of  preparation.  Albania  made  some  progress  in  the 
preparation  and  approval  of  regulations  regarding  data  collection,  management  of  small 
fisheries  and  fishing  efforts  for  some  species  in  the  Adriatic  Sea.  Albania  also  launched 
procurement procedures that would allow starting the necessary works to reactivate the vessel 
monitoring  system.  However,  recommendations  of  Commission's  latest  reports  on  efficient 
and effective implementation of the fishery sector strategy as well as inspection and control 
capacity to fight illegal fishing remained to be addressed.  

During 2020, Albania should in particular:  

 

take steps to complete and strengthen the administrative capacity of the fishery sector 
to  ensure  an  appropriate  management  of  fisheries  resources  in  line  with  the  national 
strategy and international obligations;  

78 

 
 

 

continue  with  the  implementation  of  the  Regional  Plan  of  Action  for  small-scale 
fisheries including the improving of data collection  and landing statistics from  small 
fisheries;  

finalise  the  process  of  reactivation  of  the  vessel  monitoring  system  (VMS)  and 
strengthen inspection and control capacity to deter illegal, unreported and unregulated 
fishing. 

As regards resource and fleet management, the vessel register is regularly updated, e.g. with 
data  on  engine  power  (KW  and  GT),  which  are  reported  regularly  to  General  Fisheries 
Commission for the Mediterranean (GFCM) for all fleet segments.  

In  February  2019,  Albania  amended  its  Fishery  Law  to  include  provisions  on  resource 
management  involving  fisheries  organisations  in  small  costal  fisheries.  Also,  to  ensure  the 
long-term  sustainability  of  the  fishing  resources  in  the  Adriatic  Sea,  in  line  with  the 
recommendations  of  the  GFCM,  an  amendment  to  the  Fisheries  Law  approved  by  the 
Parliament  in  April  2020  includes  measures  to  impose  limits  on  the  number,  engine  power 
and gross tonnage of fishing vessels.  

Inspection  and  control  capacity  has  not  improved.  The  Department  for  Fisheries  Services 
and Aquaculture lacks the capacity means and resources to fight illegal fishing, especially in 
marine  waters,  with  inspections  and  controls  enforced  mostly  in  small  coastal  or  inland 
fisheries.  The  vessel  monitoring  system  (VMS)  is  not  yet  in  operation.  Despite  the  efforts 
made,  the  procurement  procedures  for  its  reactivation,  which  were  launched  during  the  last 
months  of  2019,  have  not  been  completed. Albania  shall  take  appropriate  action  to 
complete the procurement procedures and reactivate the VMS during 2020. 

Fisheries  statistics  for  vessels  over  12  metres  are  collected  from  logbooks  submitted  to 
inspectors.  In  accordance  with  the  amended  Fisheries  Law,  since  October  2019  seven 
observers were recruited to monitor and provide information on catches, the biological status 
of stocks and the management of marine resources.  

A regulation on collection, management and use of data in the fisheries sector was approved 
in early 2019. Also, a draft plan on designated zones for aquaculture on the south coast was 
prepared with IPA support.  

The fisheries service is  not  yet  in  line  with  the recommendations of the  government’s 2016 
sector strategy.  

On  market  policy,  the  government  approved  two  regulations  on  the  organisation  of  the 
markets and the sale of fishery and aquaculture products.   

As  regards  international  agreements,  Albania  is  a  contracting  party  to  the  GFCM, 
participates  regularly  in  its  activities  and  implements  its  recommendations,  including 
measures  to  limit    fishing  effort  on  small  pelagic  stocks  and  adoption  of  multi-annual 
management plans for the conservation and sustainable exploitation of the European eel, and 
demersal fishing activities in the Adriatic Sea. It has applied the GFCM Recommendation on 
the  International  Maritime  Organisation  (IMO)  number  assigned  to  metallic-hull  fishing 
vessels  over  24  metres  and  will  soon  adopt  the  GFCM  Recommendation  on  multi-annual 
management plan for sustainable demersal fisheries in the Adriatic.  

Albania  complied  with  the  recommendations  of  the  International  Commission  for  the 
Conservation of Atlantic Tunas. 

5.14.   Chapter 14: Transport  

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The EU has common rules for technical and safety standards, security, social standards, State 
aid  and  market  liberalisation  in  road  transport,  railways,  inland  waterways,  combined 
transport, aviation and maritime transport.  

Albania has some level of preparation in the area of transport policy, although only limited 
progress was achieved in the past  year. The recommendations of last year have been partly 
addressed with the adoption of the revised national transport plan (ANTP3). Efforts to comply 
fully  with  the  requirements  under  the  first  transitional  phase  of  the  European  Common 
Aviation Area Agreement remain to be made. 

In the coming year, Albania should in particular: 

  implement  the  revised  national  transport  plan  (ANTP3)  and  start  developing  a  national 

strategy for intelligent transport systems; 

  adopt legislation to implement the railway sector reform; 

 

start preparations for the National Transport Strategy for 2021-2026. 

As regards the general transport acquis, the inter-institutional working group monitoring the 
implementation  of  the  national  transport  strategy  and  action  plan  for  2016-2020  and  the 
sustainable  transport  plan  for  all  transport  modes  published  its  second  monitoring  report  in 
June 2019. Albania continues to  participate actively in the EU strategy  for the Adriatic  and 
Ionian  Region  (EUSAIR).  The  second  review  of  the  national  transport  plan  (ANTP3)  was 
adopted in January 2020 by order of the Minister for Infrastructure and Energy. Albania now 
needs to prepare the national transport strategy and action plan for 2021-2026, in line with the 
ANTP3.  It  should  make  further  efforts  to  align  its  transport  policy  with  public-service 
obligations  and  the  acquis  on  public-service  contracts.  Further  efforts  are  required  to 
transpose  fully  the  Intelligent  Transport  Systems  (ITS)  Directive  and  implement  relevant 
national  laws.  It  has  yet  to  adopt  an  overall  ITS  strategy  and  allocate  resources  for  its 
implementation. 

Administrative capacity needs to be strengthened throughout the transport sector, particularly 
in  rail  transport,  for  which  several  capacity-building  events  were  organised.  Independent 
bodies  have  not  yet  been  set  up  to  investigate  railway  accidents  and  waterborne  accidents. 
Funding for road and railway infrastructure maintenance is insufficient, resulting in continued 
deterioration  of  that  infrastructure.  Further  efforts  are  needed  to  support  the  2018-2022  rail 
maintenance plans. 

Albania has made further progress in aligning its national legislation on road transport with 
the  acquis.  The  General  Directorate  for  Transport  Services,  tasked  with  implementing  the 
Law  on  dangerous  goods,  has  yet  to  adopt  and  apply  rules  and  guidelines  on  training  and 
sanctions. It has not yet strengthened its inspection capacity. More efforts are needed to align 
Albania’s  legislation  on  traffic-management  systems  and  road  safety  (including  road-safety 
education and  enforcement).  Pilot  road-safety inspections and audits are  being implemented 
on  the  ‘core’  road  network,  but  these  should  be  extended  to  the  entire  network.  The 
government declared 2020 as the ’Year of Road Safety’. 

Albania  further  aligned  its  legislation  establishing  common  conditions  for  practising  the 
profession of road transport operator. It is preparing draft guidelines on the criteria, rules and 
procedures  for  the  issuance  of  licences,  authorisations  and  certificates  for  the  operation  of 
international transport of passengers by road. These are partially aligned with the acquis and 
should be adopted in the second quarter of 2020. In May 2020, Albania adopted legislation on 
technical  roadside  inspection  of  roadworthiness  of  commercial  vehicles,  in  line  with  the 
acquis. It needs to improve the national system for continuous road-crash data collection, in 
line with recommendations under technical assistance (Connecta TA).  

80 

 
 
The  January  2018  Railway  Code  aims  to  regulate  rail  transport  in  line  with  the  acquis. 
However, it only partially transposes the recast Directive on a single European rail area and 
the EU Safety and Interoperability Directives. As a result, train operations have not yet been 
unbundled  from  infrastructure  management.  A  2019  technical  assistance  project  analysed 
options  for  the  restructuring  of  the  whole  railway  sector.  Implementing  legislation  for  the 
establishment  of  relevant  structures  and  agencies  (separation  of  infrastructure  management 
and operation, national safety authority, accident investigation body, regulatory authority) has 
been prepared, but is still under consultation with line ministries. Further efforts are needed to 
draw up the strategic framework for implementing ITSs on the core rail network. 

On  maritime  transport,  significant  efforts  are  needed  to  reduce  the  detention  rate  of 
Albanian-flagged  vessels  and  follow  up  on  the  country’s  application  for  membership  of  the 
Paris  Memorandum  of  Understanding  on  Port  State  Control.  Since  September,  a  working 
group made up of representatives of all interested Albanian institutions has been examining 
the  current  situation  and  future  steps  to  improve  the  performance  of  the  maritime  fleet. 
Further efforts  are needed to  draw up  a strategic  framework to  implement  ITSs on the core 
maritime network.  Legislation  on EU vessel-traffic monitoring and information  systems  has 
not  yet  been  aligned.  A  project  establishing those systems  in  Albania is  expected to  start  in 
2020. 

Albania  needs  to  align  with  the  acquis  on  ports  and  enact  legislation  based  on  the  Port 
Services Regulation ((EU) 2017/352). 

There  were  no  new  developments  regarding  inland  waterway  transport.  Albania  and 
neighbouring  Montenegro  continued  to  implement  their  July  2018  agreement  on  the  Ckla-
Zogaj  lake  border  crossing.  Inland  waterway  transport  is  limited  to  two  lakes  shared  with 
neighbouring countries and regulated by bilateral agreements. 

On  aviation,  Albania  continued  preparations  for  the  assessment  visit  requested  under  the 
European Common Aviation Area Agreement (ECAA), which will take place after adoption 
of  the  relevant  national  legislation.  On  air-traffic  management,  it  adopted  in  April  2020 
legislation  laying  down  airspace  usage  requirements  and  operating  procedures  concerning 
performance-based navigation, in line with the acquis.  

Although the national transport strategy includes some priority actions for the development of 
combined transport, there is still no legislation in this area.  

Albania should increase efforts to implement EU passenger rights legislation in all modes of 
transport. 

5.15.   Chapter 15: Energy 
EU  energy  policy  covers  energy  supply,  infrastructure,  the  internal  energy  market, 
consumers,  renewable  energy,  energy  efficiency,  nuclear  energy  and  nuclear  safety,  and 
radiation protection. 

Albania  is  moderately  prepared  in  this  area.  There  was  some  progress  in  the  renewables 
and  gas  sectors  as  well  as  on  interconnection  lines.  However,  last  year’s  recommendations 
were only partly  addressed with  the unbundling  of the distribution system  operator OSHEE 
SA.  Plans  for  establishing  a  non-mandatory  Energy  Efficiency  Fund  were  abandoned.  The 
country  has  again  delayed  electricity  market  reforms.  Implementation  of  the  connectivity 
reform  measures  should  be  accelerated,  especially  by  removing  legal  and  contractual 
obstacles to the integration of energy markets.  

In the coming year, Albania should in particular: 

  further  diversify  electricity  production  away  from  hydropower  and  promote  alternative 
sources of renewable energy while complying with environmental standards, and establish 
an organised day-ahead electricity market;   

81 

 
  finalise  the  legal  and  functional  unbundling  of  energy  companies  and  abolish  legal 

obstacles to the right of customers to change their electricity supplier;  

  fully align its Energy Efficiency Law with the acquis and adopt implementing legislation 

related to the Energy Performance of Buildings Directive. 

On security of supply, Albania is at a moderate stage of preparation. Its oil-stock legislation 
is not in line with the acquis. There was no progress in creating a central stockholding body 
for  oil.  The  inter-institutional  working  group  for  analysing  and  developing  a  plan  for  re-
designing the emergency stockholding system has been working for several years on a model 
for  an  emergency  oil-stock  reserve  and  on  a  draft  law  on  the  minimum  stocks  of  crude  oil 
required  for  security  of  supply.  Albania  must  complete  alignment  with  the  acquis  on 
minimum oil stocks of crude oil and/or petroleum products. It must also amend its emergency 
oil-stock model. 

Albania’s  electricity  system  has  been  connected  with  neighbouring  systems  in  Greece  and 
Montenegro since 2014. The connection between Tirana and Pristina was completed in 2016, 
but has still not been put into operation due to an ongoing dispute between the transmission 
operators of Serbia and Kosovo. However, thanks to new developments this stalemate should 
be solved in due course (see Chapter 21 – Trans-European Networks). The construction of a 
connection with North Macedonia is under preparation. In 2019, Albania made some progress 
in reducing electricity distribution losses in the power grid (23.03%, compared with 24.4% in 
2018).  Work  on  the  trans-Adriatic  pipeline  (TAP)  project,  a  major  natural  gas  connection 
between Greece and Italy through Albania, was 99% completed in June 2020 in the onshore 
Albanian  part  (see  Chapter  21  –  Trans-European  networks).  Currently,  TAP  is  starting  the 
introduction  of  hydrocarbons  into  the  pipeline  system.  In  January  2019,  the  Albanian 
Regulatory Authority licensed TAP AG Albania as transmission operator. 

On the internal energy market, the mandatory unbundling of OST itself was not achieved by 
the  December  deadline,  despite  the  full  separation  of  the  ownership  of  the  Albanian  Power 
Corporation  (KESH  SA)  from  that  of  the  transmission  system  operator  OST  SA.  In  June 
2020,  an  amended  Law  on  power  sector  entered  into  force.  The  Council  of  Ministers 
approved  several  implementing  acts  that  provide  a  legal  basis  for  setting  up  the  market 
operator  and  establishing  the  Albanian  Power  Exchange  (APEX).  A  first  meeting  of  the 
APEX  Steering  Committee  was  held  in  October.  A  special  commission  was  tasked  with 
preparing  the  selection  of  shareholders.  The  procedure  was  slowed  down  also  due  to  the 
situation created by the Covid-19 pandemic. An Energy Regulatory Authority (ERE) decision 
postponed the completion of functional unbundling to 29 June 2020. 

As  of  1  January  2020,  the  legal  and  functional  unbundling  of  distribution  system  operator 
OSHEE  SA  from  its  supply  activity  is  completed.  Three  new  companies  responsible  for 
electricity distribution, universal supply and free market supply were established and are now 
operational,  but  effective  unbundling  is  pending  due  to  delayed  transfer  of  activities,  assets 
and staff to the new companies.  

Electricity  prices  are  still  regulated,  but  should  be  gradually  liberalised  once  legislation  is 
implemented.  The  freedom  for  all  customers  to  switch  suppliers  is  effectively  prevented  by 
amendments  to  the  Power  Sector  Law;  implementation  is  still  lacking  since  all  eligible 
customers,  except  those  connected  to  high  voltage,  can  be  supplied  at  regulated  prices  by 
OSHEE (as last-resort supplier) for two years. As a result, all distribution customers, except 
some of those connected to 35kV, effectively remain under regulated supply. The electricity 
market  is  dominated  by  a  regulated  contract  between  state-owned  generation  and  supply 
companies. This contract should be terminated urgently. 

ERE’s legal framework is generally in line with the acquis, except for a few (albeit crucial) 
missing  competences:  the  right  to  impose  measures  to  promote  competition,  to  require 

82 

 
transmission  and  distribution  system  operators  to  change  their  terms  and  conditions,  and  to 
raise  the  level  of  the  penalties  that  ERE  can  impose.  On  the  practical  side,  ERE  should 
develop into a well-equipped and skilled independent institution that addresses shortcomings 
in  the  national  energy  markets  more  actively.  A  new  organisational  structure  has  been 
approved in April 2020. 

The  Vlora  thermal  power  plant,  built  with  financing  from  the  European  Bank  for 
Reconstruction and Development (EUR 40 million), the European Investment Bank (EUR 40 
million) and the World Bank (EUR 20.5 million), has never been put into operation since its 
completion in 2011. This is due to a failure in its cooling system that has not been repaired. 
The  planned  conversion  of  the  plant  from  oil  to  gas,  once  connected  to  the  TAP,  is 
encouraged. This would stabilise the generation of electricity during droughts in the southern 
part of Albania. Albania adopted acts implementing the 2015 Law on the natural gas sector. 

Albania has not aligned its legislation with the Hydrocarbons Licensing Directive, but it has 
made  some  progress  on  its  secondary  legislation.  It  has  not  transposed  the  Directive  on  the 
safety of off-shore oil and gas installations. 

Albania  has  made  some  progress  in  preparing  the  regulatory  framework  for  renewable 
energy.  The  revised  national  renewable  energy  action  plan  (NREAP)  for  2018-2020 
envisages that 38% of the gross final energy consumption will come from renewable sources 
by 2020. With the adoption of the 2017 Law promoting renewable energy, Albania improved 
its  compliance  with  the  acquis.  The  Law  introduced  schemes  to  support  renewable-energy 
producers above 2MW (for solar power) and 3MW (for wind power) through a competitive 
procedure based on ’contracts for difference‘ support, to be paid on top of the market price for 
electricity. The Law incorporates a feed-in tariff and net metering scheme for photovoltaic or 
wind  energy  with  a  capacity  of  up  to  500kW.  The  revised  NREAP  provides  for  generation 
from renewable sources, especially photovoltaics. However, urgent efforts are needed to reach 
the new targets by the end of 2020.   

Albania  depends  almost  exclusively  (98%)  on  hydropower  for  its  electricity,  making  it 
vulnerable  to  unfavourable  hydrological  conditions  in  the  summer.  In  addition,  electricity 
from hydropower is not sufficient to meet its needs. It is a net importer of electricity and an 
integrated  regional  energy  market  will  ensure  security  of  supply.  It  has  made  several 
investments  in  (local  and  foreign)  renewable  energy  through  concession  contracts  for  the 
construction and operation of hydroelectric power plants. However, around 20% of the 500+ 
contracts  concern sites in protected areas, and some plants have had a significant impact on 
local biodiversity. Plans for future plants have generated debate and protests about the need to 
address ecological and water rights considerations.  

Doubts have been expressed about the quality of strategic environmental and environmental 
impact assessments (SEAs and EIAs) for energy projects. Investments in hydropower should 
be  compliant  with  the  environmental  acquis.  Hydropower  plants  in  protected  areas  and 
sensitive locations should undergo all necessary legal procedures, i.e. they should be subject 
to public consultation (Aarhus Convention), comply with national legislation and be subject to 
properly conducted EIAs and SEAs. 

The main target of the energy efficiency action plans for 2017-2020 is a cumulative saving of 
6.8%  of  the  energy  used  in  Albania  by  2020.  The  Energy  Efficiency  Agency  was  set  up  in 
2016 to implement energy efficiency policies and measures, but it was not fully staffed and 
became operational only in late 2018. It reports to the Ministry of Energy and Infrastructure. 
Plans for establishing an Energy Efficiency Fund, which is recommended but not mandatory 
under  the  Energy  Efficiency  Directive  (EED),  were  abandoned.  Full  compliance  with  the 
Energy  Community  acquis  has  still  not  been  achieved  and  the  Energy  Community’s 
Ministerial  Council adopted a decision stating that Albania was in  breach of its obligations. 
Albania still needs to start amending its Energy Efficiency Law to align with the EED. It only 

83 

 
submitted its second annual report under the EED (due in June 2018) in March 2019. It still 
needs to adopt the necessary legislation to achieve full compliance with the acquis in the area 
of energy performance in buildings. 

Albania  has  made  little  progress  on  nuclear  energy,  nuclear  safety  and  radiation 
protection. In December, it adopted a Regulation on the protection of public and employees 
professionally  exposed  to  ionising  radiation  and  safety  from  medical  exposure  to  ionising 
radiation sources, which is partly aligned with the 2013 Council (Euratom) Directive setting 
out basic safety standards for protection against the dangers arising from exposure to ionising 
radiation. 

5.16.   Chapter 16: Taxation 
EU rules on taxation cover value added tax and excise duties as well as aspects of corporate 
taxation.  They  also  deal  with  cooperation  between  tax  administrations,  including  the 
exchange of information to prevent tax evasion. 

Albania is moderately prepared in the area of taxation. Some progress was made through 
joining  the  OECD  inclusive  framework  on  base  erosion  and  profit  shifting  (BEPS)  and 
through  establishing  a  central  liaison  office  to  automatically  exchange  financial  account 
information.  Revenue  performance  in  2019  was  above  the  2018  levels  (+  1.7%)  but  below 
target (-4.9%), largely due to underperformance of  VAT, customs duties, national taxes and 
excise.  

In the coming year, the country should in particular: 

 

 

simplify the taxation system by encouraging enhanced tax compliance; 

continue addressing systematically the recurrence of delays in VAT refunds and avoid 
large backlogs.  

On indirect taxation, the standard VAT rate is 20% and the reduced rates are 6% and 10%. 
However, there is further increase in the number of exemptions, including exemptions related 
to  the  construction/re-construction  activities  in  the  areas  affected  by  the  26  November 
earthquake. Albania accelerated the VAT refund and therefore the stock of VAT arrears was 
cleared by March 2020 with the exception of three large taxpayers with whom the Directorate 
General on Taxation (GDT) has a special arrangement, approved in February 2020.  

Excise  taxation is  partially  aligned  with  the  acquis.  Mineral  oils  are  marked  for  some  uses. 
Tobacco excise duties are set to increase in annual steps, from EUR 49.8 per 1,000 cigarettes 
in  2019  to  EUR  51.25  in  2020.  Favourable  excise  taxation  for  manufactured  tobacco  with 
tobacco  leaves  cultivated  in  Albania  persists.  Small  producers  of  alcoholic  beverages  enjoy 
reduced tax rates. There are tax exemptions for up to 100 litres for spirits and up to 200 litres 
for  wine  for  personal  consumption.  The  excise  Law  taxes  all  energy  products  listed  in 
Directive 2003/96/EC.  

Regarding  direct  taxation,  financial  institutions  are  legally  required  to  calculate,  withhold, 
and declare income tax on income from savings. In response to the COVID-19 situation, the 
deadline  to  submit  the  financial  statements  was  extended,  exemption  of  profit  tax  for  small 
businesses,  and  deferral  of  and  profit  tax  payments  for  all  other  businesses  with  few 
exceptions were introduced. Albania does not allow deferral of taxation as provided for in the 
Merger Directive. In May 2019, Albania joined the OECD inclusive framework on anti-base 
erosion and profit shifting and started developing legislation  to  implement  its  obligations in 
that respect. 

The  general  directorate  of  taxation  (GDT)  has  started  to  facilitate  the  communication  with 
taxpayers  through  wider  electronic  methods  and  by  simplifying  regulations  and  taxpayers 
registration  procedures.  As  a  result  of  GDT  sending  personalised  letters  to  employers  and 

84 

 
employees in selected sectors, contributions and personal income tax in January and February 
2020 increased. Real-time monitoring of invoices and receipts is going to become operational 
in mid-2020, following the adoption of the so-called Law on fiscalisation in December 2019, 
which aims to increase the formalisation of economic operators and improve VAT collection. 
However, different thresholds to categorise economic operations apply for income and VAT, 
making the system more complicated to administer and probably encouraging tax avoidance 
and evasion. 

As  regards  tax  compliance,  the  GDT  identified  a  considerable  number  of  taxpayers  who 
under-declare  the  salaries  of  their  employees  and  drafted  the  strategy  for  addressing  labour 
market informality.  

On  administrative  cooperation  and  mutual  assistance,  Albania  is  yet  to  sign  double 
taxation  agreements  with  Denmark,  Cyprus,  Lithuania,  Portugal,  Slovakia  and  Finland.  In 
April 2019, four additional staff in the GDT were approved to act as central liaison officers to 
exchange  financial  account  information  automatically  based  on  the  OECD  single  Global 
Standard.  In  2019,  the  data  exchange  infrastructure  has  been  developed  but  no  automatic 
exchange has been conducted yet.  

As regards operational capacity and computerisation, in March 2020 the personnel of the 
tax administration was further reduced from 1,512 to 1,450. In spite of this decrease of staff, 
as of June 2020 the number of vacancies remained very high at 193 (13.3%) compared with 
206 in 2018 (13.1%). The annual training programme, approved in 2019, is needs-based and 
1,081 employees of the GDT were trained in 2019.  

In  January  2020,  the  Law  on  automatic  exchange  of  information  on  financial  accounts  was 
adopted,  aiming  at  alignment  with  Conformity  Reporting  Standards  and  partial  alignment 
with  the  relevant  2014  EU  Directive.  Albania  does  not  yet  have  the  technical  capacity  to 
facilitate the efficient exchange of information, nor the appropriate infrastructure to apply EU 
IT  standards.  The  electronic  tax  administration  system  has  been  operational  since  January 
2015,  but  there  are  no  deadlines  to  achieve  interconnection  and  interoperability  with  EU 
systems. 

The implementation of the legal basis for the fiscal cadastre, approved in 2018, was delayed, 
due  to  incomplete  data,  impeding  its  functionality.  The  municipalities  continued  compiling 
the necessary information, while the legal base is planned to be amended. 

5.17.  Chapter 17: Economic and monetary policy 
EU rules require the independence of central banks and prohibit them from directly financing 
the public sector. Member States coordinate their economic policies and are subject to fiscal, 
economic and financial surveillance. 

Albania is moderately prepared in the area of economic and monetary policy. No progress 
was  made,  in  particular,  in  complying  with  the  EU  acquis  regarding  the  Bank  of  Albania’s  
independence and its accountability to the Parliament, and government’s policy coordination 
and consultation mechanism with non-governmental stakeholders.  

Albania should take further measures to: 

  align  with  the  EU  acquis  the  legislation  on  the  Bank  of  Albania’s  independence  and 

accountability to the Parliament; 

  improve  the  government’s  policy  coordination  and  consultation  mechanism  with 
non-governmental stakeholders when formulating sector policies and economic reforms. 

In  the  area  of  monetary  policy,  the  primary  objective  of  the  central  bank,  as  set  out  in  the 
Law  on  the  Bank  of  Albania  (BoA),  is  to  achieve  and  maintain  price  stability.  BoA  is 
financially  independent  and  has  sufficient  instruments,  competence  and  administrative 

85 

 
capacity to function effectively and to conduct an efficient monetary policy. The Supervisory 
Council of BoA is operational and has one vacant post, for which the recruitment process has 
begun. The monetary policy is conducted with a standard set of instruments: i) open market 
operations;  ii)  standing  facilities;  iii)  required  minimum  reserves  and  within  a  free-floating 
exchange rate regime. The alignment of the 1997 Law on the Bank of Albania with the acquis 
as regards the personal independence of the Supervisory Council members, especially of the 
governor, and BoA’s accountability to the Parliament remains incomplete. On 27 November 
2019,  the  Supervisory  Council  of  BoA  approved  the  Medium-Term  Development  Strategy 
2020-2022  of  BoA,  which  confirms  the  aim  to  fully  harmonise  its  organic  Law  with  the 
Statute of the European System of Central Banks. In response to the economic effects of the 
COVID-19  crisis,  BoA  cut  the  policy  rate  to  a  new  historic  low  of  0.5%  and  lowered  the 
overnight lending rate from 1.9% to 0.9% on 25 March 2020. In addition, BoA is providing 
unlimited liquidity to the banking system to keep up lending to the private sector, enhanced its 
operational  capacities to  guarantee the sufficient cash supply to  the economy  and facilitated 
electronic payments. 

In  the  area  of  economic  policy,  further  alignment  with  the  Directive  on  Requirements  for 
Budgetary Frameworks is needed. Albania has complied with the fiscal rule since its adoption 
in 2016. Excessive Deficit Procedure notification tables are submitted regularly to Eurostat on 
a best-effort basis, but they are not complete and not fully in line with the European System of 
National and Regional Accounts (ESA 2010) requirements. Following the completion in July 
2019  of  the  pilot  project  on  source  data  required  for  the  calculation  of  the  macroeconomic 
imbalance procedures  (MIP) indicators, Albania has reported to Eurostat and has shared the 
metadata  for  14  available  MIP  scoreboard  indicators.  Further  progress  is  needed  on  the 
calculation of nominal unit labour costs and house price index deflated.  

In  April  and  May  2020,  the  government  ammended  the  2020  budget  to  include  additional 
expenditure to buffer the economic fall-out of the pandemic, adjust the planned fiscal deficit 
from  2.2%  to  3.9%  in  view  of  the  expected  drop  in  revenue  and  plan  the  additional  deficit 
financing.  The  budgetary  measures  intend  to  provide  additional  funds  to  the  health  sector, 
support small businesses and self-employed affected by the lock-down and cushion the socio-
economic impact of the pandemic.  In addition, the government  allowed to postpone certain 
tax payments, waived penalties for late utility payments and issued two sovereign guarantees 
for loans to businesses.  

Albania submitted its Economic Reform Programme 2020-2022 on time, but the COVID-19 
crisis  rendered  its  macro-fiscal  projections  and  policy  priorities  largely  obsolete.  Albania 
needs to strengthen its inter-institutional coordination mechanism for comprehensive strategic 
policy  planning,  including  for  the  preparation  of  the  programme.  It  needs  to  increase  its 
administrative  capacities  and  human  resources  for  designing  and  coordinating  economic 
policy and for monitoring the implementation and impact of structural reforms in consultation 
with local stakeholders.  

5.18.   Chapter 18: Statistics 
EU  rules  require  that  Member  States  are  able  to  produce  statistics  based  on  professional 
independence,  impartiality,  reliability,  transparency  and  confidentiality.  Common  rules  are 
provided for the methodology, production and dissemination of statistical information. 

Albania  is  moderately  prepared  on  statistics.  Some  progress  was  made,  notably  on  the 
alignment  with  ESA  2010  standards,  and  faster  and  new  publications  of  statistics  and 
increased transmission to Eurostat. The role of the National Statistical System (INSTAT) was 
further strengthened and its resources improved; however, the methods of data collection need 
to  be  modernised  and 
improved. 
Communications with stakeholders improved for some statistical domains. 

the  statistical  production  processes  should  be 

86 

 
In the coming year, Albania should in particular: 

 

 

 

 

appoint a Director General and continue to reinforce INSTAT’s resources; 

adopt the Law on Population and Housing census and continue the preparation of the 
population  and  housing  census  in  line  with  the  relevant  EU  legislation  and  UN 
standards; 

prepare  the  action  plan  and  the  detailed  estimated  budget  for  the  2022  census  of 
agriculture; 

implement the amended Law on Official Statistics and continue to expand the scope of 
official statistics in line with the EU acquis. 

As regards statistical infrastructure, Albania’s Law on Official Statistics is in line with the 
European Statistics Code of Practice and most classifications are in  line with  EU standards. 
The  annual  work  plan  for  2020  for  the  implementation  of  the  5-year  programme  on  the 
official statistics for 2017-2021 further to the Law on Official Statistics is not adopted by the 
Parliament  and its  draft will need to  be revised due to  the Covid-19 crisis.  The  Institute for 
Statistics  (INSTAT)  has  continued  its  organisational  restructuring  following  the  2018 
amendments to the Law on Official Statistics. In 2019, 62 employees were recruited while the 
recruitment process for the 30 remaining vacancies is ongoing. INSTAT’s budget and staffing 
continued to be insufficient for fully implementing the EU acquis in the field of statistics. The 
position  of  the  General  Director  of  INSTAT  is  still  vacant.  An  additional  memorandum  of 
understanding  was  signed  during  2019  with  data  custodians  on  access  to  statistics,  and 
another one with the General Prosecutor Office. The ones signed before 2018 were adapted to 
be in line with the Law on Official Statistics.  

On macroeconomic statistics, annual and quarterly GDP data are produced according to the 
production and expenditure approach, in current and previous year prices as well as in chain-
linked volume and seasonally adjusted. Supply and use tables and derived input-output tables 
are  harmonised  with  the  definitions  of  the  European  System  of  National  and  Regional 
Accounts  (ESA  2010).  Further  efforts  are  needed  to  improve  the  completeness  of  the 
excessive deficit procedure notification tables, which are sent regularly to Eurostat on a best-
effort basis. Further improvements are needed in government finance statistics in order to meet 
legislative requirements. INSTAT produces and publishes the harmonised index of consumer 
prices and since May 2018 the production accounts generation of income accounts.  

As  regards  structural  business  statistics,  data  collection  and  production  have  further 
improved. Albania carried out an industrial production survey, although data is not collected 
by  the  PRODCOM  list  in  force,  nor  transmitted  to  Eurostat.  In  addition,  Albania  is  partly 
compliant for all Short Term Statistics domains (industry, construction, retail trade and other 
service), but some important indicators are still not transmitted to Eurostat, in particular the 
index  of  industrial  production  and  the  services  price  indices.  A  special  publication  was 
finalised  in  cooperation  with  the  Bank  of  Albania  on  the  main  tourism  indicators  for  the 
period  2014-2018  and  has  completed  the  data  collection  for  the  enterprise  tourism  survey 
"Accommodation  structures  survey"  (to  be  published  in  2020).  INSTAT  has  good 
relationships  with  respondents,  and  achieves  quite  high  response  rates  in  both  business  and 
household surveys.  

On  social  statistics,  the  labour  force  survey  is  conducted  regularly  and  micro-data  are 
provided  to  Eurostat.  INSTAT  does  not  produce  job  vacancy  statistics  yet.  Labour  cost 
statistics  are calculated  on the basis of  a labour  cost  survey. A Structure of Earning Survey 
was conducted for the first time in 2019 (data to be published in 2020). INSTAT conducted 
the survey of income and living conditions wave 3 (SILC 2019) between April and July 2019, 
and published the 2017 and 2018 SILC results on 26 December 2019.  

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INSTAT  published  in  2020,  for  the  first  time,  the  gender  equality  index  for  Albania.  The 
index measures gender equality in six core domains: work, money, knowledge, time, power, 
health, and two additional domains: intersecting inequalities and violence. 

Statistics on external migration and asylum are partly aligned with the EU legislation. Crime 
statistics are published on a quarterly basis.  

The  preparatory  work  for  the  population  and  housing  census  continued.  During  October-
November 2019, INSTAT carried out the pilot population and housing census. However, the 
law  on  population  and  housing  census  has  not  been  adopted  yet.  Albania  should  ensure 
funding for its full implementation. 

Agricultural statistics are partially aligned with the EU acquis. It is essential to improve the 
quality of the data of the administrative registers, such as the farm register, individual register 
of  animals  and  the  animal  holding  registers,  among  others.  INSTAT  should  start  the 
preparation of the strategic document for the census of agriculture holdings, planned for 2022, 
including  a  corresponding  action  plan  and  the  budget.  INSTAT  is  working  to  introduce  the 
possibility  to  move  from  a  system  based  on  an  expert  estimates  to  survey-based  agriculture 
statistics. 

Environmental  statistics  are  in  line  with  the  EU  acquis  to  a  very  limited  extent,  while 
energy  statistics  are  moderately  aligned.  INSTAT  produces  the  balance  of  electricity  on  a 
quarterly basis and publishes the general energy balance produced by the National Agency of 
Natural  Resources.  Short-term  energy  statistics  are  still  produced  as  volume  data  for 
electricity only. Detailed data on municipal waste statistics is provided. Air emission accounts 
are  partially  in  compliance  with  the  EU  requirements.  INSTAT  continues  to  publish 
environment-related taxes by economic activity on its website; the 2017 data were published 
in 2019. 

5.19.   Chapter 19: Social policy and employment 
EU rules in the social field include minimum standards for labour law, equality, health and 
safety at work and non-discrimination. They also promote social dialogue at European level. 

Albania  has  some  level  of  preparation  on  social  policy  and  employment.  Some  progress 
was made on implementing recommendations of the previous report, especially on increasing 
labour market participation and on improving the quality and effectiveness of labour market 
institutions  and  services.  Albania  has  continued  the  restructuring  of  its  employment 
governance  system,  in  line  with  the  laws  on  vocational  education  and  training  and 
employment  promotion.  The  employment  rate  and  labour  market  participation  remain  low, 
and  the  informal  economy  is  still  a  significant  job  provider.  Social  services  reform  is 
progressing  but  financial  and  administrative  efforts  should  be  stepped  up  to  strengthen  the 
local  level.  No  progress  was  achieved  regarding  the  tripartite  social  dialogue,  as  clear 
representativeness criteria are still under discussion and have not yet been set in the law. 

In the coming year, the country should: 

 

 

continue  the  operationalisation  of  the  employment  and  vocational  education  and 
training (VET) structure, following the establishment of the new National Agency for 
Employment  and  Skills  (NAES),  and  finalise  the  adoption  of  the  necessary 
implementing legislation for the employment reform;  

ensure implementation of the National Strategy on Social Protection (2020-2023) and 
the  social  inclusion  policy  document  (2015-2023)  and  strengthen  inter-institutional 
coordination on measures affecting the most at risk groups;   

88 

 
 
 

adopt  the  implementing  legislation  on  representativeness  criteria  for  membership  in 
the  National  Labour  Council  and  the  bylaws  for  the  establishment  of  the  tripartite 
regional council. 

Regarding  the  labour  law,  the  amended  Labour  Code  is  being  implemented,  but  its 
implementation and enforcement still needs to be monitored more closely. Some progress was 
made as regards the number and impact of inspections and the training of labour inspectors. 
However, the capacity of the State Labour Inspectorate needs to be further strengthened when 
it comes to human resources, as the staffing decreased in 2019. The labour inspectors should 
continue to receive regular training and adequate resources to perform their duties. Additional 
efforts are needed to ensure sound coordination with the State Health Inspectorate and social 
partners to  ensure proper enforcement and monitoring of the occupational  health and safety 
legislation.  

The  informal  economy  remains  significant  with  the  share  of  informal  employment  in  the 
non-agricultural sector at 30% (LFS 2019). The highest percentage of informal employment 
was  reported  in  trade  activities  (42.2%),  manufacturing  (17.3%)  and  construction  (16.6%), 
according  to  the  Labour  Inspectorate.  During  2019,  10,042  inspections  were  carried  out 
(9,994  in  the  private  sector)  in  both  private  and  public  sectors.  2,879  (out  of  which  994 
female)  uninsured  employees  were  identified,  of  which  2,794  (of  which  970  female)  were 
formalised.  The  sectors  in  which  irregularities  were  assessed  are:  manufacturing,  mining, 
construction, trade and hospitality.  

Albania  adopted  the  2019-2021  National  Action  Plan  for  the  Protection  of  Children  from 
Economic Exploitation. It still needs to strengthen the system for monitoring child labour and 
other  forms  of  exploitation.  Albania  has  become  a  pathfinder  country  under  the  global 
Alliance 8.7 with a goal to eliminating child labour. 

On health and safety at work, Albania is implementing the 2016-2020 occupational, safety 
and health policy document and action plan. Albania progressed on the legal framework with 
the adoption of most of the legislation transposing the EU Framework Directive on health and 
safety  at  work.  However,  the  implementation  and  enforcement  of  health  and  safety  at  work 
legislation  is  limited  due  to  insufficient  financial  and  human  capacities.  This  remains  a 
particular  issue  in  the  shoe/textile  and  mining  sector.  Reported  accidents  at  work  decreased 
from 195 in 2018 to 176 in 2019, while fatalities at work increased from 27 to 38 in the same 
timeframe.  

Bipartite social dialogue remains weak in both the private and the public sector, mainly due 
to insufficient experience of trade unions, lack of a culture of dialogue, as well as employers’ 
scepticism towards the trade unions. Coverage by collective bargaining agreements is higher 
in  the  public  sector  in  comparison  with  the  private  sector,  with  73.7%  of  public  sector 
employees, 28% of private sector non-agricultural employees and 3.8% of private agricultural 
employees being covered (2018 data). The union freedom  and the  right  to  strike need to  be 
guaranteed  to  all  workers,  and  trade  union  members  shall  not  be  discriminated.  Also,  the 
amicable  labour  disputes  resolution  system  needs  further  consolidation.  Regarding  tripartite 
social  dialogue,  the  mandate  of  the  National  Labour  Council  (NLC)  was  renewed  in  2018. 
However, clear representativeness criteria have not yet been set in the law. Significant efforts 
are  still  needed  to  transform  the  NLC  into  an  effective  and  regular  social  dialogue  forum, 
aiming  at  improving  collective  bargaining.  To  be  effective,  work  and  regular  meetings  of 
committees established under NLC shall be promoted in order to prepare meaningful plenary 
meetings  of  the  NLC.  At  regional  level,  the  decision  on  tripartite  Regional  Consultative 
Councils,  consisting  of  representatives  of  employers’  organisations,  trade  unions  and 
representatives  of  state  structures,  expected  to  be  established  by  the  end  of  2018,  is  still 
awaiting adoption.  

89 

 
On  employment  policy,  the  administrative  reform  and  the  reduction  in  human  capacities 
continues  to  affect  the  design,  implementation  and  monitoring  of  employment  policies  and 
measures.  While  the  labour  market  participation  has  improved,  efforts  are  still  needed 
regarding  the  alignment  of  education  and  training  (including  adult  education  and  lifelong 
learning) to the needs of the labour market and the provision of targeted support to low skilled 
people.  Employment  and  labour  market  participation  continued  to  grow  in  2019,  but  these 
figures hide a high underemployment. In 2019, job creation remains one of the major cross-
sectoral priorities of the current government. Following the mid-term review of the National 
Employment and Skills Strategy (NESS) conducted at the end of 2018, a revised action plan 
was  completed  in  2019  and  the  policy  framework  extended  by  two  years  in  view  of  the 
limited progress on the promotion of employment services at local level and social cohesion. 
The Institute of Statistics has sufficient resources to contribute to policies with comprehensive 
and  reliable  data.  Special  focus  should  be  placed  on  urban/rural  ratios  in  all  labour-related 
statistics.  

There  was progress  regarding the adoption of the  Law on employment promotion in  March 
2019  and  the  establishment  of  the  National  Agency  for  Employment  and  Skills  (NAES) 
through  a  bylaw  in  July  2019.  The  new  Agency  will  manage  the  implementation  of 
employment  and  skills  policies  and  administer  the  employment  offices  at  the  regional  and 
local  level,  as  well  as  the  network  of  public  vocational  education  and  training  (VET) 
providers  (VET  high  schools,  training  centres).  It  is  crucial  that  the  new  agency  is  fully 
equipped financially and in terms of human resources to implement its mandate. In December 
2019, a new structure of NAES was adopted with a significant increase in human resources, 
but still pending enforcement with financial support.  

Existing  employment  promotion  programmes  (EPPs)  were  revised  to  better  address  the 
needs  of  unemployed  people  and  two  new  EPPs  were  developed  (on  self-employment  and 
community  employment)    and  .Operational  guidelines  for  the  implementation  of  new  and 
revised EPPs  have been developed and their implementation is to be launched in autumn.  A 
good  sign  is  the  incorporation  of  support  measures  in  terms  of  transport  compensation  or 
childcare  provision  for  beneficiaries  of  EPPs.  The  implementation  of  EPPs  in  the  coming 
years  will  show  whether  the  2019  policy  guidance  to  better  target  those  measures  will  be 
achieved,  especially  when  it  comes  to  vulnerable  groups  such  as  long-term  unemployed, 
young  people  neither  in  employment  nor  in  education  or  training,  women,  low-skilled  and 
Roma and Egyptian communities.  

As a reaction to lay-offs due to Covid-19 crisis, the Council of Ministers approved on 29 July 
2020  two  additional  and  temporary  employment  promotion  programmes  for  recently 
unemployed  jobseekers  laid  off  during  the  peak  period  of  quarantine  measures  between  10 
March  and  23  June.  One  of  the  programmes  targets  people  who  self-declare  as  informal 
workers prior to their lay-off. The overall budget for active labour market measures for 2020 
was increased by more than 50% from 390 million Lek to 590 Lek.    

Some  progress  was  made  in  strengthening  linkages  between  the  active  labour  market 
policies  and  the  social  assistance  scheme,  with  the  adoption  of  the  operational  plan  for 
labour market integration of cash assistance beneficiaries for the year 2019-2020. Emphasis is 
however missing as regards social care services in the absence of which it is often impossible 
to  enable  labour  market  integration  of  cash  assistance  beneficiaries.  In  addition,  social 
inclusion through labour market integration will only be possible for a part of cash assistance 
beneficiaries and it remains unclear what will happen with those beneficiaries who phase out 
from  the programme after five  years without having been integrated into the labour market. 
Close  monitoring  of  this  programme  alongside  with  the  employment  promotional  measures 
will be crucial to ensure a long-term solution for beneficiaries of the economic aid scheme.  

90 

 
Public  employment  services  made  progress  in  establishing  performance  indicators  and 
procedures, improved visibility and outreach services for vulnerable groups. Work is ongoing 
on the development of an information system that will enable automation of many processes 
now done manually and will assist in better profiling the job seekers and ensuring traceability. 
Efforts are needed to introduce new technologies, including self-service tools and innovation 
methods.  Work  is  also  needed  to  finalise  the  reorganisation  of  the  remaining  employment 
offices  and  ensure  that  their  services  remain  relevant  for  local  jobseekers  especially  those 
having  a  higher  level  of  education  and  young  people  because  only  less  than  half  of  the 
unemployed seek help to find employment through public employment services.  

In  2019,  there  were  70,930  registered  unemployed  jobseekers  (out  of  which  52%  women). 
Labour  offices  do  not  succeed  in  attracting  a  significant  part  of  unemployed  people,  whose 
number  in  2019  was  164,160  according  to  Labour  Force  Survey,  in  particular  those  with 
upper secondary and university education. The profile of registered jobseekers tends to be the 
one of lower educated people, having at most primary education (39,582 or 56% of registered 
unemployed), with a lower proportion of people having upper secondary education (26,062 or 
37%)  and  a  very  low  coverage  of  unemployed  having  university  education  (5,286  or  7%). 
This is in stark contrast with the composition of unemployed work force according to Labour 
Force Survey: 52,859 people having at most primary education (32%), 73,932 people having 
upper  secondary  education  (45%)  and  37,369  people  having  university  education  (23%).  In 
addition, almost two thirds of young people not being employment, educated or trained were 
not actively seeking a job and are out of reach of the labour offices. In 2019, 30,391 registered 
unemployed  (out  of  which  49%  women)  found  a  job  through  labour  offices  (LOs).  The 
number of vacancies announced in LOs reached 50,785 in 2019 (minus 17% compared to the 
previous  year).  Only  a  very  low  proportion  of  registered  unemployed  (4%  or  2,781)  were 
receiving  an  unemployment  benefit  and  48%  were  long-term  unemployed.  To  support  the 
transition  to  the  labour  market  of  the  unemployed,  a  training  on  soft  skills  (so-called  Start 
Smart)  was  delivered  to  12,327  unemployed  jobseekers  in  2019,  especially  young  people. 
Other  8,714  unemployed jobseekers were participants 
training  courses 
(comparable to the previous year) and 5,338 unemployed jobseekers were beneficiaries from 
EPPs, of whom 2,589 started benefitting from it in 2019.   

in  vocational 

Despite  some  improvement,  the  overall  unemployment  rate  remains  high,  particularly 
among women,  young people, Roma and Egyptians, and people with disabilities. According 
to annual LFS data, the unemployment rate (15-64 age range) fell to 12% in 2019 (11.8% for 
women), from 12.8% 2018 (12.3% for women). Meanwhile, labour force participation rose to 
69.6% (61.6% for women), 1.9 pps more compared to the same period in 2018. However, this 
remains below European averages, with a significant difference between males and females. 
The  youth  unemployment  rate  (15-24  age  range)  was  27.2%  in  2019  down  from  28.3%  in 
2018.  Young  people  aged  25-29  presented  significantly  better  figures,  with  a  16.7% 
unemployment rate. Although it decreased as compared to the previous year, it remains high. 
There  was  a  high  percentage  of  young  people  not  being  educated,  employed  or  trained 
(NEET) at 25.5% (15-24 age range) and 26.6% (15-29 age range). There is a big challenge in 
the  transition  of  upper-secondary  (VET  and  gymnasia)  and  university  graduates  from 
education to jobs as attested by a higher NEETs rate for these groups as compared to lower 
NEETs rates for young people having primary education. These trends and developments are 
likely to be obscured by the impact of the COVID-19 pandemic on growth and employment in 
2020, with  a particular emphasis  for services industries, which constitute a large size of the 
Albanian economy.   

Long-term unemployment  remains a challenge that Albania should to  address  through more 
flexible and tailored policy interventions. Labour force participation rates (15-64 age range) 
kept increasing (69.6% in 2019) and approaching the EU-28 average (74.0% in 2019), with a 
notable  difference  of  16  percentage  points  between  males  and  females,  significantly  more 

91 

 
pronounced than in the EU-28 where it was 10.8 percentage points. In 2019, the labour force 
participation rate of  young people  aged 15-24  was lower than  for the rest  of the  population 
(36.7%), which can be explained by attendance in education as well as a high share of young 
people not being employed, educated or trained in this age group. However, for the age group 
25-29, the labour force participation rate was very high (82.0%) and comparable to the EU-28 
average (82.8%).  

There were no developments as regards preparations for the European Social Fund. 

On social protection and inclusion, the 2015-2020 national strategy on social protection was 
revised and extended until 2023. Public spending on social inclusion programmes is modest 
and  all  too  often  the  government  structures  fail  to  address  adequately  the  needs  of 
marginalised and vulnerable groups, since there is no mechanism for monitoring the situation 
of  those  who  are  vulnerable  and/or  excluded  from  society,  including  those  affected  by 
emigration. 

As  a  response  to  the  COVID-19  crisis,  the  Government  undertook in  March  several 
emergency  measures  to  respond  and  protect  the  most  vulnerable  groups.  Around  70,000 
vulnerable families are benefiting a relief package (food and hygiene items) for a period of 3 
months.  In  addition,  around  63,251  families  on  cash  assistance  scheme  are  benefiting  the 
double amount of cash assistance for 3 months. People with disabilities and invalids of work 
will  continue  to  benefit  the  monthly  entitlements  without  going  through  the  evaluation 
commissions.  

Without cash transfers, the social care services accounted for only 0.40% of the government 
budget  in  2018.  Cash  transfers  continue  to  constitute  about  95%  of  the  social  protection 
sector’s  overall  budget.  The  needs  assessment  for  social  services  conducted  in  2019  by  the 
State  Social  Service  in  the  12  regions  of  Albania  highlights  that  34%  of  municipalities  (21 
municipalities) do not provide any social care services. 62% or 38 municipalities do not have 
services  for  elderly  and  61%  or  37  municipalities  do  not  provide  services  for  people  with 
disabilities.  Local  social  care  services  are  undeveloped  and  lack  investments  and  human 
resources in many municipalities. According to Social Services data, social care coverage  is 
critically  low,  with  only  about  10,000  users  in  2019  (0.35%  of  the  population).  Increased 
investment in the development of new social care services and wider geographical coverage 
are  urgently  needed.  Local  government  units  (LGUs)  are  expected  to  assess  needs  in  their 
territory and prepare local  social  care plans, but  they lack human and  financial resources to 
deliver  on  this  task.  Only  24  municipalities  approved  and  budgeted  for  social  care  plans 
outlining the needs of vulnerable communities and the services that need to be established in 
response. The work also involves assessing the costs for services and identifying the costs that 
can be supported by the municipality budget.  

Secondary legislation implementing the Law on social care services adopted in 2019 specifies 
that  central  government  will  have  to  resource  the  social  fund  with  central  budget  allocating 
such budget to the approved local social care plans. In April 2019, the government set up the 
Social Fund Mechanism as a transitory measure to distribute funding from the state budget to 
municipalities. The Ministry of Health and Social Protection has started to operationalise the 
social  fund  by  awarding  14  projects  to  support  establishment  of  social  care  services  at  the 
local level. Application is open only to municipalities with an approved and budgeted social 
care plan underlining the need to increase the number of municipalities with an approved and 
budgeted plan. 

The implementation of the reform of the disability assessment system on the basis of a ‘bio-
psycho-social’  model  is  continuing  and  was  extended  from  two  administrative  units  of  the 
capital  to  the  whole  municipality  of  Tirana  covering  about  one  third  of  the  Albanian 
population. Some progress was achieved with the initial (pilot phase) implementation of the 
management information system for people with disabilities. The accessibility of many public 

92 

 
services is still a critical issue. Access to services for people with disabilities in rural areas is 
significantly  lower  than  for  those  living  in  urban  areas  and  in  particular  for  those  over  21 
years of age. The state social services promote foster care and other forms of alternative care 
for  children  without  parental  care  but  more  emphasis  should  be  put  on  preventing 
institutionalisation  of  children,  and  targeted  support  for  parents  suffering  from  poverty  is 
critical  in  many  cases.  In  addition,  more  state  financial  and  human  resources  should  be 
allocated to alternative care services.  

As regards the 2016-2020 cross-sectoral document on social inclusion policy, little progress 
was made in setting up the necessary structures at central level or clarifying arrangements for 
implementing the policy. The SILC statistics on income and living conditions were published 
for  the  first  time  in  December  2019.  In  2018,  half  of  the  population  (49%)  was  at  risk  of 
poverty or social exclusion (AROPE), which is more than double the EU average (22.4% in 
2017). The at-risk-of-poverty rate was 23.4%, while 38.3% of the population was estimated to 
live in severe material deprivation and 13.3% of individuals aged 18-59 were estimated to live 
in households with very low work intensity. 

The implementation of Social Housing Law of May 2018 addresses shortcomings in the field 
of  housing  and  forced  eviction  and  introduces  key  social  housing  concepts  and  principles. 
Although,  some  progress  was  made  in  the  preparation  and  adoption  of  sublegal  acts, 
implementation of the law hinges on the adoption of the full legal framework. 

On  non-discrimination  in  employment  and  social  policy,  legislative  amendments  were 
adopted  on  employment  and  the  workplace  environment  for  women,  defining  sexual 
harassment and reversing the burden of proof. 

As regards equality between women and men in employment and social policy, according 
to  2019  LFS  data,  employment  rate  for  the  population  aged  15-64  is  68.2%  for  men  and 
54.4%  for  women.  The  structure  of  employees  indicates  that 29.0%  of working  women 
engage in  unpaid  work in the family business,  compared to  only  16.4%  of working men.  A 
significant  percentage  (39.6%)  of  working  men  are  self-employed,  compared  to  23.1%  of 
working  women.  The  gender  pay  gap  amounted  to  10.1%  in  2019  compared  to  10.7%  in 
2018.  

According  to  the  2019  World  Economic  Forum’s  gender  gap  index  report,  Albania 
ranked 20 out of 153 countries, improving in particular in areas of political empowerment and 
economic  participation  and  opportunities.  Albania  published  for  the  first  time  the  Gender 
Index measuring gender equality in six core domains: work, money, knowledge, time, power, 
health, and two additional domains: intersecting inequalities and violence. The overall Gender 
Equality Index for the Republic of Albania reached 60.4 in 2017, indicating a gender gap of 
7.4 points below the EU-28 average (67.4). The largest gaps to the EU-28 are in the domains 
of knowledge, money and time, while scores are similar in the domains of work and health.  

According to the labour force survey 2019 on causes of inactivity, women remain out of the 
labour force mostly because they are busy with unpaid work at home (21.4%) or are attending 
school (22.0%). On the other hand, only 1.0% of men declare housework as the reason behind 
their inactivity, while 30.4% are students or pupils. 

The changes to the Labour Code introduced more measures to support gender equality in the 
labour  market,  mainly  related  to  raising  the  awareness  and  supporting  the  economic 
empowerment  of  women  in  the  labour  market,  but  there  is  no  monitoring  of  the 
implementation  of  these  changes.  Concerns  remain  over  the  proportion  of  women  in  the 
informal labour market, especially the textile and shoe industries, without appropriate labour 
and  social  protection.  There  are  also  concerns  over  the  lack  of  disaggregated  data  on  the 
number of working women in the informal economy. 

5.20.   Chapter 20: Enterprise and industrial policy 

93 

 
industrial  policy  strengthens  competitiveness, 

EU 
facilitates  structural  change  and 
encourages  a  business-friendly  environment  that  stimulates  small  and  medium-sized 
enterprises (SMEs). 

Albania  is  moderately  prepared  in  the  area  of  enterprise  and  industrial  policy.  Some 
progress  was  made  with  the  endorsement  of  the  Investment  Policy  Reform  Action  Plan  as 
part  of  the  MAP-REA  regional  efforts  on  investments,  maintaining  incentives  to  stimulate 
investment  in  the  tourism  sector  and  implementing  an  innovation  support  programme. 
Legislative work  for  approximation with  the  Late Payments  Directive has started, while the 
implementation of the triple-helix action plan continues to face delays. Efforts to improve the 
business environment continue, but have limited impact. 

In the coming year, Albania should, in particular: 

  effectively implement the triple-helix action plan; 

  accelerate the full alignment of its legislation with the Late Payment Directive; 

  address  the  main  challenges  to  the  business  environment,  notably  reducing  regulatory 
burden more vigorously and enhancing participation in the available funding programs for 
businesses; 

  prepare  the  next  Business  Investment  Development  Strategy  to  address  challenges  to 
competitiveness  and  growth  as  stressed  in  the  May  2019  joint  recommendations  of  the 
Economic Reform Program 2019-2021. 

The  2014-2020  business  and  investment  development  strategy  (BIDS)  sets  the  strategic 
framework for Albania’s enterprise and industrial policy. A monitoring report, finalised in 
February  2020,  identifies  the  challenges  to  progress  in  implementing  and  monitoring  the 
BIDS. Work to draft a new BIDS 2020-2025, covering SMEs skills development, innovation, 
sustainable growth, and conditions for attracting foreign investment, started in February 2020. 
The  BIDS  will  also  incorporate  the  strategy  on  development  of  the  non-food  industry.  The 
government  has  initiated  the  drafting  of  the  Economic  Recovery  Plan  -  2030  with  the 
intention  to  supplement  the  post-November  earthquake  2019  and  post-COVID-19  crisis 
economic  recovery  measures  and  to  extend  them  until  2030.  This  action  plan  needs  to  be 
aligned with the national strategic documents for development and integration as well as  the 
Economic Reform Program 2020-2022. 

Albania  continues  to  implement  the  South-East  Europe  2020  regional  initiative  and  actions 
under  the  Western  Balkans  Multi-Annual  Action  Plan  for  the  development  of  Regional 
Economic Area (MAP-REA). As part of the MAP-REA Investment pillar, Albania has been 
involved  in  the  Investment  Policy  Reform  Action  Plan,  analysis  and  reporting  on  issues 
related  to  investment  entry  and  establishment,  investment  protection  and  retention  and 
investment  attraction and promotion.  Albania has adopted in  principle at the WB6 level  the 
standards  on  International  Investment  Agreement,  and  procedure  for  internal  adoption  has 
been initiated. Some progress has been made on the implementation of the action plan based 
on a ‘triple helix’ model that incorporates measures requiring the involvement of the public 
and private sectors together with universities, mainly related to drafting of innovation start-up 
legislation.  Albania  is  behind  schedule  with  the  overall  implementation  of  the  'triple  helix' 
action  plan.  It  started  to  implement  the  national  Strategy  on  Innovation  and  Technology 
adopted in 2017 and established a TechSpace for start-up and innovation in ICT in February 
2019. 

Albania follows the implementation of the Small Business Act. Despite some improvement in 
the  business  environment,  SMEs  continue  to  identify  their  main  challenges  as  being:  the 
informal  economy  (particularly  in  tourism),  a  lack  of  transparency  in  public  procurement 
especially as regards Public Private Partnerships (PPPs), the need for stable state institutions, 

94 

 
unclear ownership of property titles, and the enforcement of the rule of law. Concerning the 
combating  of  informal  economy,  Albania  continued  to  implement  measures  to  expand  the 
taxpayer bases aiming to enforce compliance and contribute to creating a level-playing field 
for economic operators. It also continued to privatise state assets, partly through privatisation 
vouchers; some of these assets were purchased by land -owners exercising their pre-emption 
right.  A  Law  on  the  Establishment  and  Operation  of  Economic  Zones  exists  but  no 
development  can  be  reported  regarding  their  establishment.  A  Technological  Economic 
Development  Area  (TEDA)  for  the  construction  of  the  Industrial  Plant  for  the  integrated 
processing  and  management  of  metal  scrap  in  Rrashbull,  Durres,  is  still  in  a  development 
phase.  The  contract  for  construction,  maintenance  and  operation  of  the  technology  and 
economic development zone in Elbasani was signed in March 2020. Following the application 
by  the  Tirana  Municipality,  in  May  the  TEDA  Kashar  was  granted  the  status  of  strategic 
investor. The issue on the expiry of the 2015 Strategic Investments Law has been postponed 
to  the  end  of  2020,  while  the  draft  unified  law  on  investments  is  being  finalised.  Since  the 
adoption of the law, 15 investment projects have obtained the status of 'strategic investment', 
the majority of which are in the tourism sector, followed by agriculture and energy. A further 
23 applications are under consideration. A new Law on establishing an Albanian Investment 
Corporation was adopted in December 2019, and the main implementing regulations are to be 
adopted by the Council of Ministers in 2020. 

In  the  area  of  enterprise  and  industry  policy  instruments,  the  Albanian  Investment 
Development  Agency  (AIDA)  continued  to  offer  funding  instruments  to  stimulate  start-ups 
and  entrepreneurship  in  tourism,  handicrafts  and  innovation,  as  well  as  competitiveness. 
Overall, the absorption capacity improved compared with the previous year, reaching 78% of 
applications  and 92% of fund disbursement, while the funds remain limited. No funds were 
distributed  during  the  first  half  of  2020,  as  the  government  re-oriented  the  funds  towards 
COVID-response measures for businesses. The authorities are drafting new regulations on the 
competitiveness fund and on the creative economy fund. Access to finance remains a serious 
challenge  for  businesses.  As  part  of  response  to  COVID-19  measures,  two  sovereign 
guarantee loans were adopted by the government and agreements were signed with second tier 
banks  to  enable  liquidity  for  businesses  to  cover  salaries  of  their  employees  and  to  finance 
their operational costs. With donor support, the National Agency for Information Society has 
established  in  February  2019  the  TechSpace,  aiming  to  set  up  a  creative  environment  for 
developing  start-ups.  TechSpace  is  dedicated  to  training  on  technology,  innovation  and 
entrepreneurship  activities,  mentoring  start-ups  in  the  field  of  ICT.  Since  its  establishment, 
100  start-up  ideas  have  been  registered  and  there  have  been  over  1,000  visitors.  The 
“Roadmap  to  Silicon  Valley”  pilot  program  for  start-ups  –  launched  in  January  2020  – 
includes an incubation phase at TechSpace, workshops, extensive research and a combination 
of  lean  start-up  methods.  Cooperation  agreements  were  signed  with  public  universities,  and 
public and private vocational high schools. A new Law on Start-Ups is being drafted. 

Albania  participates  in  the  EU’s  COSME  programme  for  SMEs  with  participation  in 
COSME’s major actions like Erasmus for Young Entrepreneurs (EYE) with the intermediary 
organisation  Protik  and  the  Enterprise  Europe  Network  (EEN)  through  a  consortium  led  by 
the  AIDA.  The  second  and  third  EEN  projects  were  completed  by  the  end  of  2018  and  in 
2019. A new consortium with  three new organisations led by AIDA started the fourth  EEN 
project  for  the  operation  period  2020-2021.  Ten  new  partnership  agreements  were  signed 
during 2019 and two more during the first quarter of 2020, 53 companies have registered their 
profiles in the EEN database and 50 new profiles were published to attract business partners. 
Two  financial  intermediaries  were  selected  to  provide  COSME  financial  instruments  to 
SMEs.  The potential of COSME to assist SMEs in accessing markets remains underused. The 
relevant  Albanian  legislation  is  partially  aligned  with  the  2011  Late  Payment  Directive  and 
full alignment should be accelerated. Albania has partly aligned its definition of SMEs with 

95 

 
the EU Recommendation. The national capacity for policy making and implementation in the 
field of SME policies and support remains very limited.  

As  regards  sectoral  policies,  a  fiscal  incentive  package  adopted  in  2018  for  4-5  star  hotels 
remained  in  place  in  2019.  Incentives  for  the  agro-processing  industry  continued  to  be 
implemented.  The  2019-2023  national  strategy  for  the  sustainable  development  and  tourism 
and  action  plan  were  adopted  in  June  2019  and  its  implementation  is  underway.  The 
regulatory  framework  on  classification  and  categorisation  of  accommodation  structures  was 
adopted  in  July  2019  following  the  adoption  of  the  tourism  strategy.  A  law  on  activities  of 
maritime  tourism  was  adopted  in  June  2020,  followed  by  a  law  on  introducing  VAT 
exemptions  for  the  imported  tourism  boats/yachts.  A  ministerial  guideline  on  recovery 
measures in tourism was adopted in March, focusing on the areas affected by the November 
2019 earthquake, and a protocol of tourism services for the post COVID-19 period to ensure 
the safety for all the guests and the employees was endorsed. AIDA worked on an investment 
and  export  outreach  campaign  for  the  agribusiness  sector,  including  support  for  Albanian 
enterprises  in  preparing  project  proposals  and  finding  foreign  partners  targeting  the  country 
and  potential  interested  stakeholders.  Preparations  started  for  the  launch  of  the  second 
outreach  campaign  for  light  manufacturing  and  the  automotive  industry  at  the  beginning  of 
2020.  To  respond  to  the  COVID-19  crisis,  the  government  introduced  financial  support 
measures for small businesses. The fiscal policy was relaxed, including the postponement of 
tax filing and tax payment  in the end of 2020; removal of corporate tax for SMEs for 2020 
and  the  postponement  of  profit  tax  installments  to  2021  for  some  other  business  categories 
and  some  relaxation  meassures  under  local  taxes;    salary  payment  support  schemes    were 
introduced  for  the  categories  most  at  risk  of  unemployment  due  to  closure  of  businesses, 
bonus payment for employees of other businesses affected by confinement. Specific measures 
are planned to address the needs of businesses in the most affected sectors such as tourism, 
inward processing and manufacturing. 

5.21.   Chapter 21: Trans-European networks 
The  EU  promotes 
transport, 
telecommunications  and  energy  to  strengthen  the  internal  market  and  contribute  to  growth 
and employment. 

trans-European  networks 

the  areas  of 

(TENs) 

in 

Albania  has  some  level  of  preparation  in  the  area  of  trans-European  networks.  Some 
progress was made in developing transport and energy networks, including operationalisation 
of its power connection with Kosovo and developing its gas connections with completion of 
the trans-Adriatic pipeline (TAP) project. 

In the coming year, Albania should in particular: 

 

 

 

continue  developing  the  core  transport  and  energy  networks  in  line  with:  (i)  the 
national  strategies  for  transport  and  energy;  (ii)  the  infrastructure  investment 
prioritisation under the single project pipeline; and (iii) the connectivity agenda; 

harmonise  the  legal  framework  with  the  EU  acquis  and  the  regulations  on  TEN-T 
(trans-European  transport  networks)  and  TEN-E  (trans-European  energy  networks), 
including transposition of guidelines for trans-European energy infrastructure; 

implement  connectivity  reform  measures  and  strengthen  the  institutional  framework 
and administrative capacity to develop and monitor TENs. 

Albania  is  making  good  progress  on  its  strategic  framework  for  transport  networks.  It 
continued  to  harmonise  its  legal  and  institutional  framework  with  the  EU  Trans-European 
Transport  Networks  (TEN-T)  Regulation  and  the  Transport  Community  Treaty  (TCT).  It 
participates  actively  in  TCT  Regional  Steering  Committee  (RSC)  meetings  and  the  TCT 
Secretariat’s technical committees on railways, roads and road safety transport facilitation. In 

96 

 
2020, it holds the RSC presidency. The Albanian authorities are encouraged to maintain and 
intensify cooperation in the framework of the TCT. 

The  2016-2020  national  transport  strategy  and  action  plan  provide  for  the  extension  of  the 
TEN-T  comprehensive  and  core  networks  to  Albania  and  its  alignment  with  TEN-T 
guidelines and EU standards and regulations. Albania has made progress in drafting a Council 
of Ministers Decision to transpose the guidelines for the development of the TEN-T; adoption 
is expected by the end of 2020. The second review of ANTP3 was completed in January 2019 
and adopted in January 2020 by order of the Minister for Infrastructure and Energy. Albania 
needs to start preparations for the 2021-2026 national transport strategy and action plan in line 
with ANTP3 (see Chapter 14 - Transport).  

Albania has made some progress in repairing and maintaining its core road infrastructure. It is 
progressing with the preparation of road, rail and port infrastructure projects, especially along 
the  Adriatic-Ionian  corridor  and  corridor  VIII  (Varna–Durrës).  The  construction  of  Fieri, 
Tepelena and Vlora bypasses is progressing, but expropriation issues still hamper the speed of 
works.  Works  to  rehabilitate  the  Durrës-Tirana  rail  line  and  construct  a  new  line  to  the 
international  airport  are  due  to  start  by  mid-2020.  Albania  should  ensure  that  its  transport 
network projects are implemented in line with the TEN-T regulatory framework. Current and 
future  infrastructure  investments  should  comply  with  EU  standards  on  public  procurement, 
State aid and EIAs. Also, investments need to be implemented in accordance with cost/benefit 
analyses  carried  out  in  line  with  EU  best  practice.  Projects  are  channelled  through  a  single 
project pipeline, confirming the country’s strategic orientation towards TENs. Further efforts 
are needed on road safety. More serious measures should be taken to eliminate ‘blackspots’ 
identified  on  stretches  with  high  accident  rates  resulting  in  fatalities  and  injuries.  The 
adoption  of  the  multiannual  maintenance  plans  for  the  entire  (rail  and  road)  core  network 
remains a challenge. 

Albania is partially aligned with the acquis on a single European railway area, railway system 
interoperability and rail freight corridors for competitive freight. It should make further efforts 
to  fully  align  the  country  with  the  ITS  Directive,  develop  a  national  strategy  on  the 
deployment of ITS and prepare for the implementation of the strategy.  

On  energy  networks,  further  efforts  should  be  made  to  adopt  the  strategic  environmental 
assessment (SEA) and project identification plan under the gas master plan. This will help the 
development of TEN-E projects. The trans-Adriatic pipeline is on schedule, with 99% of the 
project completed in June 2020. The pipeline is  expected to be operational in autumn 2020. 
The gas master plan provides for major gas interconnector projects such as the Ionian-Adriatic 
pipeline  and  the  Albania-Kosovo  gas  interconnector  pipeline  (ALKOGAP)  which  are  at  an 
early stage of planning.  

Progress  was  made  on  improving  the  infrastructure  for  power  transmission.  Albania  has 
functional power interconnection lines with Greece and Montenegro. A technically functional 
400kV line Between Albania and Kosovo was completed in June 2016, but has not been put 
into  operation,  thus  representing  a  huge  financial  drain  for  both  parties.  In  April  2020,  the 
Kosovo  transmission  system  operator  KOSTT  SA  concluded  a  new  connection  agreement 
with  the  European  Network  of  Transmission  System  Operators  ENTSO-E.  With  this 
agreement,  KOSTT  and  Kosovo  will  finally  leave  the  Serbia,  Montenegro  and  North 
Macedonia  control  block  and  join  the  Kosovo-Albania  control  block.  This  should  pave  the 
way  for  KOSTT  to  integrate  into  the  regional  energy  market,  participate  in  the  Albanian 
Energy Exchange (APEX) and finally put into operation the connection.  

The government approved the construction of a 400kV line between Elbasan in Albania and 
Bitola  in  North  Macedonia  in  June  2016.  Selection  of  the  winning  bidders  for  the  pre-
qualification phase was completed in 2019. The technical stage procedure is still ongoing. The 
line is projected to cost €70 million and the project is scheduled for completion in 2021. 

97 

 
Albania participates in EUSAIR, under which the improvement of connectivity (transport and 
energy networks) is a top priority. 

5.22.   Chapter 22: Regional policy and coordination of structural instruments 
Regional  policy  is  the  EU’s  main  tool  for  investing  in  sustainable  and  inclusive  economic 
growth.  Member  States  are  responsible  for  its  implementation,  which  requires  adequate 
administrative capacity and sound financial management of project design and execution. 

Albania is moderately prepared in the area of regional policy and coordination of structural 
instruments.  Limited  progress  was  made,  in  particular  with  the  signature  of  the  Financing 
Agreement  for  the  2017  IPA  national  programme  and  the  completion  of  the  IPA  2018 
programme.  

In the coming year, the country should in particular:  

 

 

 

strengthen its administrative capacity, especially the Central Finance and Contracting 
Unit  (CFCU)  of  the  Ministry  of  Finance  and  Economy,  the  National  Authorising 
Officer’s  Support  Office and the Audit  Authority as well as the Ministry  for Europe 
and Foreign Affairs; 

accelerate the preparation of project documentation to avoid delays in the use of EU 
funds and difficulties in meeting contracting deadlines, as observed in the 2013, 2014, 
2015 and 2016 programmes; 

increase programming capacity in line with the sectoral approach and sectoral policies, 
and improve the design of mature sector project pipelines. 

As  regards  the  legislative  framework  for  regional  policy,  Albania  has  adopted  and  is 
implementing a national strategy for development and integration, and several sectoral reform 
strategies.  It  has  yet  to  establish  adequate  co-financing  capacity  for  EU  programmes  at 
national and local levels. 

On the institutional framework, Albania should ensure coordination on EU integration and 
EU assistance between national entities such as the Albanian Development Fund, the Ministry 
for Europe and Foreign Affairs, MOFE, the Prime Minister’s Office and line ministries. 

On  administrative  capacity,  the  staff  of  the  structures  involved  in  indirect  management 
received  further  training.  A  proper  retention  strategy  needs  to  be  developed  for  all  indirect 
management structures. The administrative capacity for coordinating and monitoring sectoral 
reform  through  the  integrated  policy  management  groups  and  sectoral  steering  committees 
needs  to  be  improved.  Staffing  of  the  relevant  secretariats  needs  to  be  confirmed.  The 
involvement  of  development  partners,  local  governments  and  civil  society  organisations  in 
sectoral dialogue should be improved. 

Programming  of  IPA  2019/2020  was  completed,  but  efforts  are  still  needed  to  address 
strategic planning beyond 2020 and strengthen sectoral programming in line with the sectoral 
approach  under  the  2014-2020  IPA  framework  and  in  preparation  for  IPA-III  (2021-2027). 
The national project pipeline of investments, including those for regional development, is not 
yet fully aligned with the medium-term budget programme and the planning and management 
of nationwide public investment.  

On monitoring and evaluation, the sectoral monitoring committees have been formally set 
up and convened, and they have issued operational recommendations. They ensure the proper 
monitoring of EU pre-accession assistance and should continue to meet twice a year.  

On  financial  management,  control  and  audit,  the  Audit  Authority  has  improved  its 
contradictory  procedure.  In  March  2020,  a  new  structure  of  the  Central  Finance  and 
contracting unit was adopted by Order of the Prime Minister.  The prolonged absence of the 

98 

 
national  authorising  officer  after  tendering  his  resignation  had  an  adverse  effect  on  the 
functioning of internal control systems. The national authorising officer’s support office needs 
to improve the quality of its management declaration and the reliability of its self-assessment 
of management and control systems. Its monitoring of control activities and its management 
of irregularities need to be stepped up. 

Since the transfer of functions from the regional development agencies (RDAs), the Agency 
for Regional Economic Development, and the National Agency for Regional Development to 
the  Albanian  Development  Fund  (ADF)  in  July  2018,  the  ADF  has  been  the  sole  executive 
agency for regional development at national and regional level. The Prime Minister’s Office 
is leading regional development reform and is responsible for the policy framework. 

The adoption of the draft Law on regional development and cohesion policy was delayed due 
to  the  need  for  revision  to  reflect  the  above  institutional  and  procedural  changes.  It  is 
currently  undergoing  consultation  with  relevant  stakeholders  and  is  due  to  be  submitted  to 
Parliament by April 2020. In the meantime, the ADF has drafted a national development and 
cohesion strategy and plan for 2021-2027 and four regional development plans (2021-2024). 
As  managing  authority  for  regional  development,  it  is  also  preparing  a  multi-annual  (2021-
2027) operational programme for regional development.  

The  ADF  strengthened  its  regional  structures  and  implemented  the  Regional  Development 
Fund  (RDF)  budget  allocations,  the  main  beneficiaries  of  which  are  the  local  government 
units.  The  RDF  focused  on  supporting  the  completion  of  on-going  interventions  and  the 
government’s  ’programme  of  100  villages‘.  In  parallel,  the  ADF  and  the  regional 
development units (former RDAs) implemented a pilot grant scheme, based on rules similar 
to those in the European Commission’s practical guide. 

5.25.   Chapter 25: Science and research 
The  EU  provides  significant  support  for  research  and  innovation.  All  Member  States  can 
benefit  from  the  EU’s  research  programmes,  especially  where  there  is  scientific  excellence 
and solid investment in research. 

Albania  is  at  an  early  stage  in  the  area  of  science  and  research.  Some  progress  was  made 
over the reporting period, especially with the completion of the mapping phase of the Smart 
Specialisation Strategy. However, last year’s recommendations have not been fully addressed 
and therefore remain valid. 

In the coming year, the country should in particular: 

 

 

 

increase  investment  in  research,  in  line  with  its  own  commitments  and  European 
research area priorities; 

progress on the development of the Smart Specialisation Strategy; 

ensure higher participation in Horizon 2020.  

On research and innovation policy, the implementation of the 2017-2022 national strategy 
for  scientific  research,  technology  and  innovation  was  monitored  for  the  first  time  in  2019. 
Key  recommendations  included  carrying  out  a  review  of  resources  planned  in  the  draft 
midterm 2020-2022 budget planning for increasing scientific research funds to 1 % of GDP 
by  2022.  Despite  a  significant  increase    in  national  resources  for  research  and  innovation 
(from ALL 62.12 million for 2018 to ALL 227.34 million for 2019), this is still well below 
the target  and still needs to step up  investments in scientific research and other measures to 
strengthen research and innovation capacity at national level. 

Albania  does  not  have  a  clear  methodology  to  establish  funding  for  research  and  science. 
Despite  attempts  to  map  the  research  infrastructure  since  2018,  which  is  expected  to  be 
updated again  in  2020, Albania has  not  yet  developed a roadmap to  address  this at  national 

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level.  In 2019 the Prime Minister’s Office initiated a plan to  continuously  update Albania’s 
research  infrastructure  data,  based  on  Frascati  indicators.  However,  to  date,  no  survey  has 
been circulated for such data collection.  

Limited progress was made with the implementation of the 2017-2021 action plan to support 
the  development  of  innovative  policies,  which  is  aimed  at  promoting  better  links  between 
academia,  industry  and  government.  Now  that  Albanian’s  National  Research  and  Education 
Network  is  connected  to  the  pan-European  GÉANT  network  for  scientific  excellence, 
research,  education  and  innovation,,  national  efforts  should  be  made  in  the  fields  of  open 
access and open data. 

The  Law  on  the  Academy  of  Sciences  was  adopted  in  September  2019,  regulating  the 
functioning  of  the  Academy  of  Science,  the  Youth  Academy  and  aiming  at  increasing  the 
integrity of the scientific research system. The new draft law on scientific research has been 
finalised but is still pending adoption.  

The development of a Smart Specialisation Strategy (S3) started in 2017 under the lead of 
the Ministry of Education, Sports and Youth, in cooperation with the European Commission; 
a  road  map  for  the  S3  process  was  drafted  and  the  mapping  phase  of  the  S3  process  was 
completed  in  December  2019  with  EU  support.  Further  steps  on  the  S3  in  2020  should 
involve  finalization  of  the  qualitative  analysis  phase  and  the  launch  of  the  Entrepreneurial 
discovery process.  

As  regards  EU  framework  programmes,  Albania  participates  in  Horizon  2020  as  an 
associated country. Its participation in Horizon 2020 has improved and shows a good trend for 
2019, nonetheless its performance continues to be low. Albanian entities have participated in 
40  actions  of  Horizon  2020,  receiving  4.2  million  euros  of  direct  EU  contribution.  The 
success rate of proposals with Albanian participation is  of  8.1 % (up from 7.8 % since last 
year)  compared  to  15.6%    Horizon  2020  success  rate.  Private  sector  participation  in  the 
programme  continues  to  remain  particularly  low.  A  further  positive  trend  is  an  increased 
number  of  publications,  842  publications  per  1000  researchers.  The  National  Agency  for 
Scientific Research and Innovation (NASRI) has strengthened its efforts to raise awareness on 
Horizon  funding  opportunities.  Apart  from  awareness  raising  events,  no  other  measure  to 
support participation in Horizon2020 are present. 

On  integration  into  the  European  research  area,  Albania  should  be  more  active  in  all  six 
priority  areas,  and  should  improve  its  networking  with  European  partners  to  engage  in 
international cooperative research, where there is already active engagement in COST. 

As regards the innovation Union, the National Agency of Scientific Research and Innovation 
has  financed  six  national  research  projects  for  a  total  of  around  €400  000  in  six  priority 
research areas and is currently funding bilateral technological and scientific research projects 
with Italian and Austrian support.  

The  European  Innovation  Scoreboard  is  not  yet  available  for  Albania,  however  a  plan  to 
provide indicators showed that eight indicators from international sources are already present. 
Albania should make efforts to produce statistics and reliable data on science and technology, 
including the indicator on gross domestic expenditure on R&D, with a view to participating in 
the European Innovation Scoreboard. 

On brain circulation, considering that the human capital in the diaspora is an important asset 
for Albania, work on building a platform for brain circulation has started with the gathering of 
data on the Albanian specialists/researchers/experts working abroad. 

 Chapter 26: Education and culture 

5.26. 
The EU supports cooperation in education and culture through funding programmes and the 
coordination of Member State policy through the open method of coordination. The EU and 

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the Member States must also prevent discrimination and ensure quality education for children 
of migrant workers, including those from disadvantaged backgrounds. 

Albania  is  moderately  prepared  in  the  field  of  education  and  culture.  Some  progress  was 
made  on  implementing  recommendations  of  the  previous  report  in  this  area,  especially  on 
establishing  a  policy  framework  for  pre-school  education  Concerning  vocational  education 
and  training  (VET),  some  progress  was  registered  with  the  establishment  of  the  National 
Agency  for  Employment  and  Skills,  the  restructuring  of  National  Agency  for  Education, 
Vocational  Training  and  Qualifications,  the  implementation  of  the  Albanian  Qualification 
Framework Law and in the adoption of the implementing legislation for the VET Law. Also, 
the strategy on culture for 2019-2023 was adopted.                                                                                                                                                                                      

In the coming year, Albania should in particular: 

 

 

 

draft the new strategy on education, covering all levels; 

finalise  the  implementing  legislation  of  the  VET  Law  and  continue  with  the 
optimisation of the VET system to develop services and competences in line with the 
needs of the private sector; 

fully  adopt  the  implementing  legislation  on  the  Law  on  Cultural  Heritage  and 
Museums. 

On  education  and  training,  progress  was  made  with  the  appraisal  of  the  current  policy 
framework, the implementation  of curricular and legislative frameworks and  the delivery of 
free textbooks to  pupils in  primary  education. About 225,000 free textbooks were delivered 
for the 2019/2020 academic year, including 155,000 for primary school children and 70,000 
students from the most vulnerable groups. Around 3,000 early childhood education teachers 
and directors were trained on the new competence-based curricula.  

Progress  was  noted  on  enrolment  in  the  preparatory/pre-school  classes  for  5-6  year-olds  – 
only  10%  of  boys  and  11%  of  girls  country  wide,  are  not  yet  enrolled  in  formal  education. 
Moreover, the enrolment rate in early childhood education and care for 3-4 year-olds reached 
73%, in the school year 2017-2018 compared with 55% in 2008. It also marks an increase in 
participation  of  children  from  disadvantaged  backgrounds  (66  %  in  2018  against  26  %  in 
2017).  

According to LFS data of 2018, adult (25-64) participation in formal or non-formal education 
and training was extremely low (0.9%) compared to the EU-28 average (11.1%). The Adult 
Education Survey (AES), which measures participation over a longer time span of one year, 
also  shows  a  significant  gap  between  Albania  (9.2%)  and  the  EU-28  average  (45.1%).  In 
2019, 19,589 people (including 8 480 women) were registered in vocational courses, of whom 
8,714 unemployed from the employment offices. In total, 13,570 people were certified during 
this period. 

A new Agency for Quality Assurance in Pre-University Education was established in 2019 to 
strengthen quality performance. It is responsible for development of the school curriculum in 
line with the competence-based approach, in-service teacher training policy, and monitoring 
of  performance  in  pre-university  education.  As  a  result  of  piloting  and  implementing  a 
competency-based  curriculum  system,  the  Agency  conducted  an  external  evaluation  of  the 
new curriculum.  

Although very low overall, the enrolment rates of Roma people and Egyptians increased from 
the previous academic year in both pre-university (+6 %) and early childhood education and 
care.  Their  access  to  higher  education  also  improved,  by  13.8%  in  the  2018/2019  academic 
year. Nevertheless, the  gap in  access  to  education between Roma/Egyptian children and the 
rest of children living in the same areas remains very large. The measures planned to facilitate 

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access  to  universities  (a  quota  system  and  university  fee  waivers)  are  in  general  not 
implemented.  

Under  the  curriculum  reform,  in-service  teachers  received  basic  training  before  the 
introduction  of  a  new  curriculum  for  each  grade.  However,  the  new  competence-based 
approach requires pedagogical skills that current teachers did not acquire at university, as well 
as  further  training,  adequate  ongoing  mentoring,  and  support.  Such  support  should  be 
arranged  in  order  to  ensure  effective  and  meaningful  implementation  of  the  reform,  help 
teachers  make  the  shift  from  memorization  type  of  learning  and  teacher-centred  learning  to 
the child-centred approach and embrace the concept of formative assessment. The review of 
the  content  and  structure  of  curricula  for  initial  teacher  training  in  higher  education 
institutions has started but the study programmes have not yet been aligned with the curricula 
in  pre-university  education.  In addition,  teachers and principals  are trained at  least  3 days a 
year and the trainings are conducted according to the "on-demand" system, based on the needs 
of teachers and offers from accredited training agencies.  

However, this is not sufficient to ensure a consistent upscale of pedagogical skills, especially 
those related to the implementation of the competence-based approach and overall skills in the 
thematic  areas  of  competence  of  teachers  and  directors.  The  school  interruption  occurred 
toward  the  end  of  2019  due  to  the  tragic  earthquake  in  central  Albania  and  during  the  first 
quarter  of  2020  to  the  COVID-19  pandemic  outbreak,  clearly  highlighted  the  shortcomings 
and  the  challenges  in  the  provision  of  distance  learning  at  all  levels  of  education.  Due  to 
financial resource and capacity constraints, the  quality of education remains  an issue  across 
the  country.  Inclusive  pre-university  provision  is  particularly  inadequate  in  rural  and 
isolated  areas  where  school  premises,  often  in  poor  conditions,  are  used  for  both  early 
childhood education and care and primary education, and it is difficult to attract qualified 
teachers. In general, the education budget should be increased and used more transparently, 
including for private higher-education institutions. 

The revised Qualification Framework Law, adopted in 2018, was complemented by secondary 
legislation  on  establishing  sectoral  skills  committees.  Albania  is  currently  preparing  its 
referencing  to  the  European  Qualification  Framework,  expected  to  take  place  in  2021. 
Validation of non-formal and informal learning is one of the priority measures in the national 
strategy for employment and skills 2014-22 and provided for in both the VET and AQF laws. 
Implementation so far has been confined to pilots and has not yet been applied countrywide. 

Despite some progress in 2019, the implementing legislation of the 2017 VET Law is not yet 
fully adopted. Qualification standards and framework curricula for most VET programmes are 
being modernised, but some schools lack the teaching skills and equipment to put them into 
practice.  The  government  has  recently  rationalised  VET  institutions,  by  establishing  of  the 
National  Agency  for  Employment  and  Skills  and  further  restructuring  the  National  Agency 
for VET and Qualifications. However, implementation  challenges persist  and much remains 
to be done before these important modernisation efforts have a positive impact on the labour 
market. Qualification standards and framework curricula for most VET programmes are being 
modernised,  even  though  some  Albanian  schools  lack  the  teaching  skills  and  adequate 
equipment  to  put  them  into  practice.  Despite  promotional  activities  and  support  to  students 
from  rural  areas  in  following  VET  education,  participation  in  VET  is  low  in  regional 
comparison  with  only  18.2%  of  upper  secondary  students  enrolled  in  vocational  schools  in 
2019. 

Despite  demonstrated  faster  transition  into  employment  for  VET  graduates  as  well  as 
promotion  efforts,  the  enrolment  into  this  learning  path  is  not  increasing.  Teacher 
professionalization,  curricula  design,  VET  centre  management,  inclusion  and  quality 
assurance  all  need  to  be  significantly  strengthened  so  that  learner’s  aspirations  and  labour 
demands are properly addressed. Albania is  an active member of the European Alliance for 

102 

 
Apprenticeships  (EAfA)  which  aims  to  strengthen  the  quality,  supply  and  image  of 
apprenticeship  in  Europe,  and  more  recently  the  mobility  of  apprentices.  The  country  is 
committed  to  implement  and  monitor  the  2015  Riga  Conclusions  on  Vocational  Education 
and  Training.  Although  the  number  of  VET  students  with  disabilities  rose  recently,  more 
efforts are needed to ensure inclusion of populations at risk of exclusion.  

A  working  group  was  established  to  draft  a  strategy  on  education  from  early  childhood  to 
higher education for the coming years and the first draft should be ready by the first quarter of 
2021.  

Albania  maintained  its  efforts  on  automatic  diploma  recognition;  it  joined  Bosnia  and 
Herzegovina,  Croatia,  Italy  and  North  Macedonia  in  the  network  of  Adriatic  national 
information centres on the recognition of qualifications. The country will host the Secretariat 
of  the  Bologna  Process  from  the  end  of  2020  until  the  following  ministerial  conference. 
Albania  continued  to  participate  actively  in  EU  programmes,  in  particular  Erasmus+  ,  with 
very good results in 2019, especially in terms of mobility (6,067 students, as against 4,028 in 
2018)  and  capacity  building  in  higher  education  projects,  where  five  Albanian  higher 
education institutions were selected as lead project coordinators.  

The results of Albania’s 2018 participation in the OECD Programme for International Student 
Assessment (PISA) were published in December 2019. Despite steady improvement over the 
previous  four  testing  rounds  (2000,  2009,  2012  and  2015),  Albania  continued  to  perform 
poorly in 2018: 50.3 % of 15-year olds underperformed at PISA levels I or II in reading and 
53.3  %  in  mathematics.  Preparations  are  ongoing  for  Albania’s  participation  in  PISA  2021. 
The country participates in the trends in international mathematics and science study (TIMSS) 
2019  and  progress  in  international  reading  literacy  study  2021  international  assessments 
(PIRLS).  

Regarding the culture sector, the national strategy for culture for 2019-2025 was adopted in 
December 2019.  A law on cultural heritage and museums was adopted in May 2018, but the 
implementing  legislation  needed    is  not  yet  fully  in  place.  The  demolition  of  the  National 
Theatre in May 2020 came at a moment when the European Union had consistently called for 
dialogue  between  authorities,  civil  society  and  other  stakeholders,  before  an  irreversible 
decision was taken. Albania is invited to respect and exploit fully the potential of its existing 
cultural heritage. Albania needs to continue to cooperate with UNESCO on the management 
of its World heritage sites and progress in elaborating the integrated management plans for its 
sites  following  a  participatory  approach.  Cross-border  cooperation  on  the  preservation  of 
Ohrid with the authorities of North Macedonia should be encouraged.   

In line with the 2017 Law on the protection of national minorities, the government adopted in 
2019  two  implementing  laws  on  the  participation  of  national  minorities  in  public,  cultural, 
social  and  economic  life  and  on  the  conditions  for  national  minorities  to  use  fundamental 
elements of minority identity, including their language. 

Albania  continued  to  participate  in  the  EU  Creative  Europe  programme.  In  2019,  Albania 
benefited  of  three    projects  under  this  programme,  and  during  the  reporting  period  the 
Ministry organised two information sessions about the programme. Albania has better success 
rates  projects  under  the  Culture  strand  of  Creative  Europe  (and  particularly  with  Literary 
Translations)  but  could  improve  participation  in  the  MEDIA  strand.  In  the  new  mobility 
action, i-Portunus, 4 artists from Albania were funded.  

The  Law  on  youth  (adopted  on  4  October  2019),  is  expected  to  enhance  the  role  of  youth 
organisations  in  decision-making  and  ensure  the  efficiency  of  state  institutions  working  on 
issues affecting young people. The criteria for national  youth representative organisations to 
be recognised by the institution responsible for youth have to be approved by decision of the 
Council of Ministers. Youth organisations expressed concerns about the new Law, especially 

103 

 
the representativity of the structures to be put in place. Three youth centres were established 
in 2018 in Lac, Lushnja and Elbasan, but no further steps were taken during 2019 to establish 
the  remaining  youth  centres.  Regional  youth  centres  should  provide  young  people  with 
services  and  develop  cultural,  social  and  sporting  activities  in  line  with  policies  and 
programmes approved by  the Ministry, but  the Law on  youth  makes no provisions for such 
structures.  

The Regional Youth Cooperation Office (RYCO) has its headquarters in Tirana and continues 
to  be  active  in  the  region.  Good  level  of  participation  of  Albania  was  noted  in  2019  in  the 
three first calls of RYCO with seven projects selected from Albania.    

Albania made considerable progress on comprehensive sexeducation. A thorough curriculum 
reform including the evaluation of teaching and materials is underway, with a target date of 
2020 for full implementation. However, there are no specific strategies to reach young people 
who do not attend school.  

Albania actively joined the fifth edition of European Week of Sport (23-30 September 2019), 
under the framework of the Commission’s initiative European Week of Sport beyond Borders. 
Sport and healthy lifestyle activities were organised across the country. 

5.27.   Chapter 27: Environment and climate change 
The  EU  promotes  strong  climate  action,  sustainable  development  and  protection  of  the 
environment. EU law contains provisions addressing climate change, water and air quality, 
waste  management,  nature  protection,  industrial  pollution,  chemicals,  noise  and  civil 
protection. 

Albania shows some level of preparation in this area. Limited progress was made in further 
aligning  the  policies  and  legislation  with  the  acquis,  in  areas  such  as  waste  and  water 
management, environmental crime and civil protection. However, significant efforts are still 
needed on implementation and enforcement, especially on waste management, water and air 
quality and climate change.  

The  2019  recommendations  remain  valid  and  in  the  coming  year,  Albania  should  in 
particular: 

  align  further  with  key  water  directives,  and  accelerate  capacity  development  of  the 
national  agencies  for  Water  Resource  Management  and  for  Water  Supply,  Sewerage 
and Waste; 

  take  immediate  measures  to  review  and  improve  environmental  and  strategic  impact 
assessments on existing and planned projects, plans and programmes, especially in the 
hydropower, construction, tourism and mining sectors; 

  implement the  national strategy on climate change and related action plans on mitigation 
and  adaptation,  adopt  the  relevant  legislation  and  develop  its  integrated  National 
Energy and Climate Plan in line with Energy Community obligations. 

Environment 

As regards horizontal issues, Albania needs to step up efforts to achieve full alignment and 
implementation  in  most  areas.  Its  implementation  of  the  Environmental  Impact  Assessment 
and  Strategic  Environmental  Assessment  Directives  needs  to  be  strengthened,  especially  in 
the  energy  and  mining  sectors.  In  decision-making,  public  participation  and  consultation 
needs  to  be  improved,  particularly  at  local  level.  In  July  2019  Albania  adopted  a  Law 
amending  the  Penal  Code  fully  transposing  the  Directive  on  protection  of  the  environment 
through criminal law. However, implementation remains an issue as only a small fraction of 
those crimes reported end with conviction. Some efforts were made to further implement the 
INSPIRE Directive. Further progress is needed to achieve full alignment with the directive on 

104 

 
environmental  liability.  Between  January  and  October  the  State  Environmental  Inspectorate 
carried out over 3,300 environmental inspections. After the earthquake in November 2019 and 
during the COVID-19 pandemic in spring 2020, inspections were suspended. The Inspectorate 
is  currently  being  reorganised  in  line  with  a  July  2019  Council  of  Ministers  decision, 
according  to  which  the  National  Environment  Agency  received  responsibilities  for  the 
inspection and control in the environment and the water sector. The Ministry of Interior was 
apparently  also  granted  competence  in  this  field  in  early  2020.  Responsibilities  for 
environmental  enforcement  should  be  clarified  and  enforcement  itself  should  be  rapidly 
strengthened,  especially  to  address  environmental  crimes  effectively.  The  already  limited 
State  budget  for  environment  and  climate  change  was  further  reduced  in  2019.  It  needs  to 
increase to meet all requirements of transposed EU directives. 

More  efforts  are  needed  to  align  with  the  air  quality  acquis  and  improve  the  monitoring 
system. Implementation of the 2014 national air quality strategy is still pending. The national 
plan on air quality management adopted in June 2019 mostly focuses on transport measures 
and  does  not  provide  for  improving  the  monitoring  system  and  making  it  fully  and 
continuously functional. Currently, due to a lack of funding, air monitoring equipment is not 
being maintained and calibrated, and all stations have been turned off. Information on ambient 
air quality and pollution levels is limited, infrequently updated and difficult for the public to 
access. Work on the preparation of air quality plans for the main agglomerations and sensitive 
areas  is  yet  to  start.    Albania  has  put  efforts  into  building  its  administrative  capacities  to 
prepare  and  submit  emission  inventories  as  requested  by  the  UNECE  Convention  on  Long-
range  Transboundary  Air  Pollution.  The  alignment  with  the  National  Emissions  Ceiling 
Directive has also not started.  

The  legal  framework  for  waste  management  is  partially  aligned.  The  new  2020-2035 
national  strategy  for  integrated  waste  management  has  been  approved  on  27  May  2020.  It 
aims  incorporating  circular  economy  principles  in  the  national  waste  management  system. 
Closing  of  numerous  non-compliant  landfills  and  dumpsites  remains  a  challenge.  Separate 
collection of waste streams and economic instruments to promote recycling and reuse and to 
prevent waste generation remain limited. The construction of new incinerators poses concerns 
in terms of compliance with the EU waste acquis including the waste hierarchy principle and 
the recycling targets. The enforcement and policing institutions roles and function should be 
clarified and strengthened. 

On water quality, the level of alignment remains unchanged and partial, inter alia in relation 
to certain important directives. A legal package is in preparation for increasing transposition. 
Having  been  set  up  in  2018  under  the  Prime  Minister’s  Office,  the  Water  Resource 
Management  Agency  (AMBU)  recruited  staff  in  2019,  but  needs  rapidly  to  build  its 
administrative capacities for river basin management and implementing the EU water acquis. 
In February 2020, the National Water Council endorsed the Drini-Buna and Seman river basin 
management plans and started the procedure for  their adoption by the Council of Ministers. 
Albania  should  proceed  with  the  completion  and  adoption  of  the  remaining  river  basin 
management plans, including the transboundary consultations. The water quality monitoring 
and reporting system  and the licensing system should  be further  enhanced and  aligned with 
the  acquis  requirements.  The  water  monitoring  network  is  extended  to  rivers,  lakes,  coastal 
area  and  lagoons.  The  National  Environmental  Agency  should  be  urgently  strengthened  for 
this  purpose.  The  water  supply  and  sewerage  sub-sector  is  still  underperforming.  Some 
progress was made through performance contracts signed with utilities, the regularisation of 
illegal connections, a revised subsidy scheme, and the adoption of a staff certification scheme. 
However, greater efforts are needed to strengthen the capacity, performance and sustainability 
of utilities. In order to consolidate progress, the draft Law on water supply and sewerage and 
the  2020-2030  national  strategy  for  water  supply  and  sewerage  should  be  adopted.  The 
National  Agency  for  Water  Supply,  Sewerage  and  Waste  Infrastructure  should  increase  its 

105 

 
capacity, especially in the waste-water and waste sectors. While waste-water treatment plants 
cater  for  only  about  15%  of  the  population,  they  still  face  key  concerns  such  as  lack  of 
licencing and tariffing for waste-water treatment, insufficient operation and maintenance and 
limited  environment  impact  due  to  underdeveloped  networks  and  connections.  There  is  an 
urgent need to ensure full alignment with the Urban Wastewater Treatment Directive, extend 
sewerage  networks,  license  and  apply  tariffs  for  all  waste-water  treatment  plants  and  build 
new ones, in particular in urban and coastal areas and those popular with tourists.  

Alignment  with  the  acquis  in  the  field  of  nature  protection,  in  particular  the  Habitats  and 
Birds  Directives,  is  well  advanced,  but  policy  and  law  enforcement  remain  generally  weak 
despite numerous capacity building activities and technical assistance. The Law on protected 
areas was amended in 2018 to put greater emphasis on the planning and development of such 
areas.  The  legislation  on  strategic  investment  raises  concerns  for  the  protection  of 
biodiversity, as it may allow large tourism and industrial investments in protected areas, e.g. 
the proposed airport in the Vjosa-Narta area. This conflicts with other national laws and with 
international  biodiversity  protection  conventions  that  Albania  has  ratified.  The  National 
Protected  Areas  Agency  still  has  very  limited  capacities  and  financial  instruments,  as  it  is 
forbidden by law from becoming financially autonomous. 

Albania  should  ensure  enforcement  of  the  deforestation  and  logging  laws,  and  prosecute 
offenders  and  arsonists.  Environmental  crime  reports  have  increased  in  the  last  6  months, 
especially on deforestation, logging, arson, hunting and sale of wildlife and protected species, 
gravel  extraction  from  riverbeds,  dumping  of  waste  in  rivers.  Investments  in  hydropower 
should  comply  with  national  and  international  environmental,  nature  protection  and  water 
management obligations, involve proper public participation and consultation, and are subject 
of EIA reports that include high quality assessment on the cumulative impacts on nature and 
biodiversity.  EIA  reports  are  still  lacking  despite  the  high  number  of  existing  and  planned 
hydropower  installations  in  all  river  basins.  They  should  be  conducted  before  any  approval 
may be granted for single projects. Inspection and monitoring of the environmental flow from 
the current HPPs is still lacking. 

Alignment with the EU legislation on industrial pollution and risk management is still at 
an early stage. Capacity constraints are hampering progress in implementing legislation on the 
prevention of major accidents involving dangerous chemicals. The limited data on industrial 
pollution  rely  on  companies’  self-monitoring  and  declarations.  The  enforcement  capacity  of 
the Environment Inspectorate is very limited. 

On chemicals, some positive steps have been taken to  align with  the EU Regulation  on the 
registration,  evaluation,  authorisation  and  restriction  of  chemicals  (REACH)  and  with  other 
instruments.  However,  the  implementing  legislation  remains  to  be  adopted  and  adequate 
administrative  structures  to  be  established.  In  February  2020  Albania  ratified  the  Minamata 
Convention on mercury. 

Albania should strengthen its administrative capacity for preparing strategic  noise maps and 
action plans. 

A civil protection strategy is in place. The new Civil Protection Law approved in July 2019 
provides for the General Directorate of Civil Emergencies to become the National Agency for 
Civil Protection (NACP). The strategy and national plan are outdated and do not take account 
of recent institutional and organisational changes. The administrative capacity, infrastructure 
and  systems  for  early  warning,  prevention,  preparedness  and  response  are  inadequate.  The 
2019  earthquakes  highlighted  the  urgency  of  building  efficient  civil  protection  and  disaster 
risk  reduction  (DRR)  systems,  and  mainstreaming  DDR  in  key  sectors.  The  Covid-19 
pandemic highlighted the need to strengthen the legal framework and institutional capacities 
as  well  as  human  and  financial  resources  of  civil  protection  authorities  also  with  regard  to 
health  emergencies.  Albania  is  encouraged  to  accelerate  preparations  for  joining  the  Union 

106 

 
Civil  Protection  Mechanism  (UCPM).  It  should  build  institutional  capacity  and  seek  to 
establish  secure  trans-European  services  for  telematics  between  administrations  (STESTA), 
which  is  a  pre-condition  for  connecting  to  the  Common  Emergency  Communication  and 
Information  System  (CECIS).  The  NACP  should  be  provided  with  full  capacity  for  this 
purpose. In view of the high Donors’ pledges resulting from the post-earthquake conference 
organised by the Commission in Brussels on 17 February 2020, Albania should also urgently 
put  a  financing  and  action  plan  in  place  for  implementing  the  Civil  Protection  and  DRR 
measures  of  the  post-earthquake  recovery  strategy,  which  include  key  national  structuring 
action as well.  In addition to  earthquakes, floods are  a major hazard, but  Albania has made 
only little progress in aligning with the Floods Directive, and still needs to regulate its early 
warning and hydrometric-meteorological services. 

Climate change 

Albania  has  achieved  some  level  of  preparation  for  tackling  climate  change,  but  alignment 
with  the  acquis  is  still  limited.  It  made  progress  by  ratifying  the  Kigali  Amendment  to  the 
Montreal  Protocol.  In  July  2019,  Albania  adopted  a  national  strategy  on  climate  change  for 
2019-2030, with  objectives for 2050. The strategy  focuses on  energy, transport, agriculture, 
land use and forestry, with a 32% renewable energy target. However, it will require updating 
if Albania comes closer to accession, due to the new climate targets set by the EU. Lack of 
specific administrative structures and available staff for handling climate change issues are a 
matter of serious concern. 

As regards its reporting under the UN Framework Convention on Climate Change, Albania is 
preparing its fourth national communication and its first biennial update report. 

5.28.   Chapter 28: Consumer and health protection 
EU rules protect consumers’ economic interests and in relation to product safety, dangerous 
imitations and liability for defective products. The EU also ensures high common standards 
for tobacco control, blood, tissues, cells and organs, and medicines for human and veterinary 
use.  The  EU  also  ensures  high  common  standards  for  upholding  patients’  rights  in  cross-
border healthcare and tackling serious cross-border health threats  including  communicable 
diseases. 

Preparations are at an early stage in the area of consumer and health protection. There was no 
progress on last year’s recommendations although there was some progress on strengthening 
the  effectiveness  of  the  Consumer  Protection  Commission  (CPC).  On  public  health, 
significant  progress  needs  to  be  made  to  implement  the  policy  framework  and  ensure 
everyone in Albania has healthcare coverage.  

In the coming year, the country should in particular: 

  strengthen the implementation and enforcement of the policy framework on public health 

and ensure the sustainability of interventions; 

 further  align  its  legislation  with  the  EU  acquis  on  substances  of  human  origin  and  on 

medicines for human and veterinary use; 

  continue  to  improve  access  to  health  and  services  for  disadvantaged  populations, 
including:  Roma  and  Egyptian  minorities;  people  with  disabilities;  and  populations  in 
rural or remote areas. It is of particular importance to improve the access of women and 
girls  belonging  to  these  groups,  who  are  often  subjected  to  multiple  forms  of 
discrimination.  

Consumer protection 

On  horizontal  aspects,  the  capacity  of  the  Consumer  Protection  Commission  (CPC)  and 
other consumer protection bodies were strengthened through the appointment of a new CPC 

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chairman and new members and training on EU legislation and enforcement practices. In the 
reporting period, the CPC handled 66 complaints (60 from individual consumers or consumer 
organisation and local governments, and 6 from businesses). The legal framework in the area 
of  consumer  credit  and  distance  marketing  of  financial  services  needs  to  be  further  aligned 
with the acquis.  

On  product  safety,  the  State  Inspectorate  for  Market  Surveillance  (SIMS)  carried  out  over 
477  inspections  on  toys,  detergent  products,  electrical,  textile  and  mechanical  goods,  as  a 
result,  over  150  products  were  withdrawn  from  the  market.  The  SIMS  should  further 
strengthen its operational capacity. National legislation is partly aligned with the EU acquis in 
this  area.  On  non-safety-related  issues,  a  legal  gap  analysis  was  produced  and  awareness-
raising materials and reports were made available on the CPC’s website.  

Public health 

On public health, the 2016-2020 national health strategy seeks to ensure universal healthcare 
coverage.  However,  public  spending  on  health  remains  low  at  2.9  %  of  GDP  with 
disproportionately low resource allocations to primary health care, especially in maternal and 
child health. In particular, neonatal mortality (6 per 1,000 live births), under 5 mortality (9 per 
1,000  live  births)  and  infant  mortality  rates  (8  per  1,000  live  births)  remain  high.  The 
governance of public hospitals and healthcare quality should be strengthened.  

Albania has ratified most international conventions relating to the protection of fundamental 
rights but obstacles to the exercise of the right to health and to sexual and reproductive health 
services, particularly for vulnerable groups, persist across the country. While abortion care is 
guaranteed by law, women from vulnerable groups, especially Roma women, face barriers in 
accessing it. 

The Ministry of Health and Social Protection and NAIS are the authorities responsible for e-
health. The relevant legislation on blood, tissues, cells and organs is still not fully aligned 
with the acquis on blood safety.  

On  tobacco  control,  the  Law  to  protect  public  health  against  tobacco  products,  which  is 
designed to be aligned with the EU acquis, is being implemented. Albania should accede as 
soon as possible to the Illicit Trade Protocol of the World Health Organization’s Framework 
Convention on Tobacco Control and start work on establishing a tobacco traceability system. 

In the field  of  serious cross-border health  threats  including communicable diseases, the 
legal basis for communicable disease prevention and control is designed to be in line with the 
EU acquis. However, it still needs to be implemented through secondary legislation. Albania 
has a national alert, response and surveillance system for communicable diseases. However, 
no  national  plan  for  implementing  international  health  regulations.  It  still  does  not  have  an 
antimicrobial resistance action plan. 

In response to the COVID-19 outbreak, the Albanian Ministry of Health and Social Protection 
adopted a decision on health surveillance and other measures for preventing the transmission 
of  the  pandemic.  A  national  coordination  body  was  established  to  coordinate  the  national 
response  to  the  pandemic  and  take  adequate  precautionary  measures.  These  included  a 
nationwide  curfew,  social  distancing,  a  ban  on  public  gatherings  and  public  and  religious 
ceremonies, and a country lockdown during weekends and most critical days. All sports and 
recreational activities were banned; flights, buses and taxi services were suspended. Schools, 
restaurants, and cafés were closed and the number of customers in supermarkets limited. Self-
isolation  and  quarantine  periods  were  imposed  initially  to  people  arriving  from  affected 
countries and subsequently to all individuals at epidemiological risk. 

108 

 
Albania  has  been  associated  to  the  work  of  the  Health  Security  Committee,  and  received 
material  from  JRC  to  control  COVID  tests,  as  well  as  EUR  4  million  in  EU  funding  to 
enabling it to buy urgently needed medical equipment and supplies.  

National  legislation  on  patients’  rights  in  cross-border  healthcare  has  yet  to  be  aligned 
with the EU acquis.  

There was some progress on standards in the pharmaceutical sector with the approval of the 
Convention  on  the  Elaboration  of  a  European  Pharmacopeia.  However,  the  legislation  on 
medicines for human and veterinary use is not aligned with the acquis. Additional efforts 
are needed to develop cross-border cooperation for sustainable access to and the proper use of 
medicines.  

On preventive measures, there is a national cancer control plan. Appropriate structures for 
cancer  screening  services  have  been  put  in  place,  especially  in  the  main  urban  areas,  but  a 
cancer registry is yet to be set up. The Ministry of Health and Social Protection endorsed the 
national  plan  for  cervical  cancer  screening,  but  a  lack  of  integration  in  health  care  services 
limits its effectiveness.  

On nutrition and physical activity, malnutrition is a critical issue, especially for children and 
pregnant  women.  Albania  is  encouraged  to  develop  a  nutrition  plan  and  raise  awareness  in 
schools  and  community  centres  of  the  risks  of  malnutrition.  The  national  legislation  on  the 
pricing of medical devices is designed to be partly aligned with the EU common procedural 
framework and legislation. 

On  drug  abuse  prevention  and  harm  reduction,  prevention  activities  have  taken  place 
sporadically,  mainly  initiated  by  the  Department  of  Health  Promotion  and  the  Institute  of 
Public Health, should be conducted in a more systematic way.  

On health inequalities, the national community health care programme continues to provide 
residential health care mainly for marginalised Roma and Egyptian minorities. The number of 
Roma and Egyptians provided with free health cards increased substantially as did the number 
of people in informal settlements benefiting from health services delivered by mobile teams. 
However,  Roma  people  and  Egyptians  continue  to  face  barriers  and  no  decision  has  been 
taken on appointing health mediators in public hospitals. HIV awareness activities have been 
conducted for those communities but further efforts are needed to improve access to services 
for  them  and  other  vulnerable  groups,  including  women,  people  with  disabilities  and 
populations in rural or remote areas. 

5.29.   Chapter 29: Customs union 
All Member States are part of the EU customs union and follow the same customs rules and 
procedures.  This  requires  legislative  alignment,  adequate  implementing  and  enforcement 
capacity, and access to the common computerised customs systems. 

Albania  is  moderately  prepared  in  the  area  of  the  customs  union.  Limited  progress  was 
made,  in  particular  on  improving  control  of  cash  movement  at  border  crossing  points  and 
stepped-up  efforts  to  enforce  intellectual  property  rights.  Preparatory  work  started  for  the 
development of the New Computerised Transit System and the information campaigns on the 
authorised economic operator status continued. 

In the coming year, the country should in particular: 

→ approve legal provisions and develop the New Computerised Transit System;  

→ advance the registration of authorised economic operators; 

→ pursue the fight against smuggling, corruption and imports of counterfeit products. 

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As regards customs legislation, Albania’s customs code is broadly aligned with the  acquis. 
Its  system  for  customs  debt  and  guarantees  is  harmonised  with  EU  rules.  However,  the 
levying of “scanning fees” per customs declaration  continue to contravene the Stabilisation 
and  Association  Agreement  which  prohibits  customs  duties  or  charges  having  equivalent 
effect  on  trade  between  the  EU  and  Albania.  The  adoption  by  Parliament  of  national 
legislation  and  procedures  to  implement  common  transit  is  still  pending.  Albania  is 
implementing its Authorised economic operator programme but without any registrations to-
date.  Awareness  raising  activities  regarding  the  benefits,  procedures  and  programmes  are 
taking  place,  but  capacity  still  requires  development.  In  September  2019  and  May  2020 
implementing  provisions  for  free  zones  were  approved.  In  February  2020  exemptions  from 
import  duties  were  approved  for  construction  materials  and  equipment  for  reconstruction 
following the November 2019 earthquake.  As repose to  COVID-19, upon joint  initiative by 
the  Permanent  Secretariat  of  the  Transport  Community  and  the  CEFTA  Secretariat  the  six 
governments  in  the  Western  Balkans  have  implemented  measures  to  facilitate  the  transport 
and trade of essential goods within the region. 

Binding  tariff  information  and  explanatory  notes  are  published  by  the  Albanian  Customs 
Authority (ACA), and anonymised decisions on administrative appeals by the relevant court. 
The Customs Code contains rules of non-preferential origin and Albania applies the Regional 
Convention on Pan-Euro-Mediterranean preferential rules of origin and follows the European 
Commission guidance related to the COVID-19 crisis period. 

The customs code's provisions on valuation are aligned with EU rules. The risk management 
system is automated and compares import, export and transit data against active risk profiles. 
The  legislation  on  customs  enforcement  of  intellectual  property  rights  (IPRs)  is  harmonised 
with  the  acquis.  The  customs  control  system  for  drug  precursors,  dangerous  chemical 
products  and  ‘controlled  substances’  is  harmonised  with  the  1988  UN  Convention  against 
Illicit Traffic in Narcotic Drugs and Psychotropic Substances. The national rules on cash and 
goods transported in travellers’ baggage still differ from the acquis as, as regards amounts to 
be  declared  and  the  declaration  form.  In  June  2019  the  law  was  amended  to  allow  ACA  to 
impose sanctions for non- or mis-declarations of cash at the border. Implementing provisions 
are  pending  approval.  In  2019,  the  importation  of  a  total  of  23,273  goods  suspected  of 
infringing IPRs were suspended and 4149 goods destroyed following confirmation by right-
holders. 

On administrative and operational capacity, the Customs Authority business strategy sets 
out  its  mission  and strategic objectives for the period between 2017 and  2021, including an 
objective  of  improving  the  IT  systems  and  platforms.  Electronic  local  customs  clearance  is 
functioning, but the IT systems are fully interconnected only with the General Directorates of 
Taxation and of Road Transport, while police and prosecution officials have to meet certain 
conditions  to  gain  direct  access.  While  the  number  of  staff  appointed  in  the  Customs 
Administration under the Civil Service Law increased, the staff turnover remained very high. 

5.30.   Chapter 30: External relations 
The  EU  has  a  common  trade  and  commercial  policy  towards  third  countries,  based  on 
multilateral and bilateral agreements and autonomous measures. There are also EU rules in 
the field of humanitarian aid and development policy. 

Albania  is  moderately  prepared  in  the  area  of  external  relations.  During  the  successful 
chairmanship  of  the  Central  European  Free  Trade  Agreement  (CEFTA)  by  Albania,  some 
progress was made with the adoption of CEFTA Additional Protocol (AP) 6 on liberalisation 
of trade in services and on the mutual recognition of national Authorised Economic Operators 
(AEOs), and with the ratification of CEFTA AP 5.  

In the coming year, Albania should in particular: 

110 

 
 

 

 

 

strengthen the overall administrative capacity of the Ministry of Finance and Economy 
dealing with trade with the EU, WTO and CEFTA;  

continue  implementing  the  national  action  plan  on  trade  policy  coordination  and 
facilitation; 

adopt the relevant legislation in the field of export control of dual-use goods;  

implement  actions  under  the  multi-annual  action  plan  for  the  development  of  a 
Regional Economic Area, in particular on implementation of CEFTA AP 5 on Trade 
Facilitation  and  AP  6  on  liberalisation  of  trade  in  services  and,  respectively,  on  the 
AEOs,  negotiate  and  conclude  the  CEFTA  AP  7  on  dispute  settlement;  and  adopt 
regional  standards  for  International  Investment  Agreements  and  pursue 
the 
implementation of the individual reform action plan on investment (IRAP). 

On the common commercial policy, Albania continued to coordinate its positions and align 
its  policies  closely  with  those  of  the  EU,  including  within  the  World  Trade  Organization 
(WTO) as regards the dispute settlement understanding (DSU), proposed mechanisms of the 
DSU  and  the  Joint  statement  on  Services  Domestic  Regulation.  It  ratified  the  WTO  Trade 
Facilitation Agreement and notified its list of commitments, which still needs to be reviewed 
in order to speed up implementation. Due to COVID-19 crisis measures, Albania adopted in 
March the order on prohibition of export of medicines and medical equipment. 

Further approximation of legislation on the control of exports, transfer, brokering and transit 
of dual-use items and on the Common Military List of the European Union (EU Regulation 
2017/2268) was reached through a February 2019 Government Decision. Albania adopted its 
national control list of dual-use goods in line with EU Regulations. The CoM adopted a the 
regulation on organization, functioning and status of the State Export Control Authority, the 
procedure for sharing information and gathering opinions with other institutions involved in 
the  international  transfer  of  controlled  goods,  and  the  procedures  for  state  guarantees  and 
controls. Further alignment is still needed with the EU acquis on export controls of dual-use 
goods. A specific unit dealing with dangerous goods, dual use and illegal trafficking was set 
up in the anti-trafficking directorate in the General Directorate of Customs. While there was 
no  progress  on  its  participation  in  the  multilateral  export  control  regimes,  such  as  the 
Wassenaar  Agreement,  Albania  aligned  with  the  EU  lists  of  dual  used  goods  and  military 
items deriving from those regimes. Albania did not align its legislation the EU’s on trade in 
certain  goods  that  could  be  used  for  capital  punishment,  torture  or  other  cruel,  inhuman  or 
degrading treatment or punishment.  

12 

third 

signed 

countries 

new  bilateral 

agreements  with 

Albania 
on 
economic/trade/technical cooperation. It now has 36 such agreements, including 13 with EU 
Member  States.  In  July  2019,  Albania  concluded  a  Memorandum  of  Understanding  with 
Croatia on the cooperation in the field of enterpreneurship. Albania has Bilateral Investment 
Treaties  with  45  countries  and  7  more  are  under  negotiation  with  Slovakia,  Iran,  Canada, 
Morocco,  Lebanon,  Saudi  Arabia  and  Iceland.  Negotiations  for  amending  the  free  trade 
agreement  with  Turkey  continued,  with  a  focuse  on  trade  in  services  and  investments  and 
implementation  of  rules  of  origin  under  the  Pan-Euro-Med  Convention  as  well  as  on  furthe 
mutual concessions for agricultural products. Interest was expressed bilaterally in establishing 
joint committee/economic cooperation agreements with Algeria, Egypt, Cuba, India, Norway, 
Georgia, Ukraine, Liban and recently negotitaions for a free trade agreement with the United 
Kingdom are ongoing and a draft agreement is under finalisation. Negotitations have started 
with  Kazakhstan  for  possibe  revision  of  the  2015  agreement  on  trade  and  economic 
cooperation. 

In  2019,  Albania  held  successfully  the  chair  of  CEFTA,  at  the  end  of  which  the  joint 
committee  successfully  endorsed,  among  others,  the  adoption  of  the  CEFTA    Additional 

111 

 
Protocol 6 on trade in services and the decision on establishing the validation procedure for 
the mutual recognition of CEFTA Parties’ national Authorised Economic Operators. Albania 
continued  to  work  in  line  with  the  commitments  under  the  Western  Balkans  Multi-Annual 
Action Plan for developing a Regional Economic Area (REA). The government established a 
mechanism  for  implementing  and  monitoring  the  REA.  CEFTA  Additional  Protocol  6  was 
ratified by parliament in April 2020. 

Administrative and operational capacity needs to be strengthened. The Ministry of Economy 
and Finance still lacks  a unit dealing with trade policiy including with the EU, CEFTA and 
the  WTO.  Despite  the  increased  workload  in  2019  of  chairing  CEFTA,  Albania’s  limited 
administrative resources consisted of one expert and one director who also covered economic 
development policies, internal market issues and the functions of the Technical Secretariat for 
the National Committee for Trade Policy and Facilitation. Partial support from donor funded 
assistance  in  the  sector  proved  useful  but  cannot  substitute  the  need  for  permanent  staff.  A 
stable administrative structure dealing with trade-related issues was not in place.   

Albania  has  no  development  policy  framework  for  cooperation/aid  or  agency  for 
development cooperation. The country is encouraged to establish a legal framework covering 
international  cooperation  and  development  policy  as  well  as  humanitarian  aid  towards  non-
EU  countries,  in  accordance  with  EU  policies  and  principles.  The  2001  Law  on  Non-Profit 
Organisations recognises such organisations’ potential activities in the field of humanitarian 
aid and allows them to carry out development and humanitarian aid activities in Albania and 
elsewhere.  

5.31.   Chapter 31: Foreign, security and defence policy 
Member  States  must  be  able  to  conduct  political  dialogue  under  EU  foreign,  security  and 
defence policy, to align with EU statements, to take part in EU actions and to apply agreed 
sanctions and restrictive measures. 

Albania has a good level of preparation. The country assumed the OSCE’s Chairmanship-in-
Office in 2020, demonstrating its commitment to multilateral cooperation. Albania continued 
to  participate  in  EU  crisis-management  missions  and  operations  and  to  fully  align  with  EU 
positions. Some progress was made through the ongoing security upgrade of storage facilities 
for  armaments  and  ammunition.  The  EU-Albania  agreement  on  the  exchange  of  classified 
information  entered into force after the  final  implementing  arrangements were concluded in 
2019.  The  hybrid  risk  survey  was  launched  with  Albania  and  answers  to  the  survey  were 
provided. 

In the coming year, the country should in particular: 

 

make the firearms focal point in the Albanian State Police fully operational, continue 
to  implement  the  national  strategy  on  small  arms  and  light  weapons,  and  further 
improve the security of storage facilities for armaments and ammunition. 

The  political  dialogue  between  the  EU  and  Albania  on  foreign  and  security  policy  issues 
continued, including through Albania’s active engagement in the EU’s regional dialogue with 
the Western Balkans at political directors’ level (for more information on relations with other 
enlargement  countries  and  EU  Member  States,  see  Political  criteria  —  Regional  issues  and 
international obligations). 

Albania’s  Ministry  for  Europe  and  Foreign  Affairs  and  the  Ministry  of  Defence  have 
appropriate  structures  to  participate  in  the  common  foreign  and  security  policy  and  the 
common security and defence policy. On the common foreign and security policy (CFSP), 
Albania supports the Global Strategy for the EU’s foreign and security policy. When invited, 
Albania aligned with all relevant Council decisions and High-Representative declarations on 
behalf  of  the  EU  (100%  alignment).  In  October  2019,  the  country  adopted  a  law  on 

112 

 
international restrictive measures, which provides a new legal basis for the implementation of 
EU, UN and other international sanctions. 

Albania  maintains  a  2003  bilateral  immunity  agreement  with  the  United  States,  granting 
exemptions  for  US  citizens  from  the  jurisdiction  of  the  International  Criminal  Court.  In 
doing  so,  it  does  not  comply  with  the  EU  common  positions  on  the  integrity  of  the  Rome 
Statute  or  with  the  related  EU  guiding  principles  on  bilateral  immunity  agreements. 
Alignment with the EU position is therefore needed. 

Albania continued to implement its national strategy and action plan on small arms and light 
weapons adopted in February 2019. It also remained actively engaged in the implementation 
of the 2018 Regional Roadmap for a sustainable solution to the illegal possession, misuse and 
trafficking  of  small  arms  and  light  weapons  and  their  ammunition  in  the  Western  Balkans. 
Also, the authorities continued to actively participate in regional and international processes 
for  the  exchange  of  information  and  good  practices  in  the  field  of  small  arms  and  light 
weapons.  Albania  also  participates  in  Europol  operational  activities  within  the  European 
multidisciplinary platform against criminal threats (EMPACT) on firearms.  

Albania made further progress on improving the security of storage facilities for armaments 
and ammunition. Security upgrades of the Ministry of Defence’s ammunition and armament 
storages  in  Miraka  and  Zall-Herr  have  been  completed.  Security  upgrades  of  the  State 
Police’s  storage  facility  in  Mullet  are  ongoing.  Albania  made  further  progress  on 
implementing  the  action  plan  for  destroying  surplus  weaponry.  Clearance  of  hotspots 
contaminated with unexploded ammunition continues.  

The  firearms  focal  point  set  up  within  the  Albanian  State  Police  in  2018  remains  a  virtual 
entity only and its full establishment is pending. It is important that  Albania fully integrates 
the focal point in the police structures and makes it fully operational as soon as possible. This 
would  improve  the  ability  of  law  enforcement  and  the  judiciary  to  analyse  and  coordinate 
actions  against  firearms  misuse  and  trafficking.  A  national  electronic  registry  for  weapons 
was set up in 2015 and is fully functional. 

Albania  continued  to  participate  in  some,  but  not  all,  international  export  control 
arrangements  and  instruments  on  non-proliferation.  The  next  step  would  be  for  Albania  to 
start complying with the Wassenaar Arrangement.  

Albania  continued  to  engage  actively  with  international  organisations.  It  took  over  the 
Chairmanship-in-Office  of  the  Organisation  for  Security  and  Cooperation  in  Europe  in 
January  2020  and  is  a  candidate  for  a  non-permanent  seat  in  the  United  Nations  Security 
Council in 2022/2023. Albania maintained a robust presence in a number of NATO missions, 
including  some  of  strategic  importance  for  the  EU,  and  contributed  to  the  United  Nations 
Mission in South Sudan. 

On  security  measures,  negotiations  were  completed  on  the  arrangements  for  implementing 
the 2016 agreement between the EU and Albania on security procedures for exchanging and 
protecting classified information, allowing the agreement to enter into force in 2019. In July 
2019,  Albania’s  Council  of  Ministers  adopted  the  necessary  rules  for  protecting  classified 
information22. A hybrid risk survey was launched with Albania submitted its contribution to 
the  EU  hybrid  risk  survey  in  August  2019  as  part  of  a  process  aimed  at  identifying 
vulnerabilities to hybrid threats and mobilising possible EU instruments to build capacity and 
strengthen resilience. 

Albania  continued  to  actively  participate  in  EU  crisis  management  missions  and  operations 
under the common security and defence policy (CSDP), notably EUFOR Althea in Bosnia 

22 In accordance with EU Council Decision 2013/488 

113 

 
                                                           
and Herzegovina and EUTM Mali. The country plans to contribute to the EU battle groups in 
2024. 

5.32.   Chapter 32: Financial control 
The  EU  promotes  the  reform  of  national  governance  systems  to  improve  managerial 
accountability, sound financial management of income and expenditure, and external audit of 
public funds. The financial  control  rules further protect  the EU’s financial interests against 
fraud in the management of EU funds and the Euro against counterfeiting. 

Albania is moderately prepared in this area. Some progress was made during the reporting 
period, especially with the ratification of the international  convention for the suppression of 
counterfeiting  currency  and  the  adoption  of  a  revised  methodology  for  performance 
monitoring of internal control. However, Albania has not yet adopted a comprehensive public 
internal  financial  control  (PIFC)  policy  paper,  focusing  on  managerial  accountability  and  it 
has  not  introduced  the  required  amendments  to  the  legislation.  The  proper  and  effective 
functioning  of  internal  control  is  not  yet  ensured  across  budget  entities.  The  timely 
implementation  of internal  and external  audit recommendations should be further improved. 
Since  only  partial  progress  was  made  with  the  Commission’s  2019  recommendations,  these 
remain valid. 

In the coming year, Albania should in particular: 

 

 

 

adopt  and  start  implementing  a  comprehensive  PIFC  policy  paper  with  the  specific 
focus  on  the  definition  and  implementation  of  managerial  accountability  and 
monitoring  framework  coordinating  PIFC  with  public  administration  and  public 
financial management reforms; 

improve the implementation of the annual PIFC report across budget entities;  

increase  parliamentary  scrutiny  of  audited  bodies  in  the  implementation  of  external 
audit  recommendations,  through  more  frequent  parliamentary  hearings  and  the 
establishment  of  a  parliamentary  monitoring  framework 
to  regularly  assess 
government’s follow-up action. 

Public internal financial control  

A strategic framework for PIFC is partially in place. PIFC measures are currently included 
only  in  the  PFM  Strategy  2019-2022.  A  comprehensive  policy  on  internal  control  with  a 
specific focus on the definition and implementation of managerial accountability still needs to 
be approved. Some enabling conditions for PIFC implementation are addressed in the public 
administration reform strategy and its action plan. The functionality of the integrated policy 
management group for good governance to improve coordination, monitoring and reporting of 
PIFC reforms still needs to be strengthened.  

Managerial accountability is not yet enshrined in the legislation and administrative practice. 
Decision-making  in  the  institutions  is  centralised  and  a  very  small  number  of  decisions  are 
delegated in practice. Vertical accountability is very weak between policy-making and policy 
implementing  entities.  Governance  arrangements  ensuring  strategic  plans  with  defined 
objectives,  performance  indicators  and  clear  monitoring  and  reporting  lines  between  parent 
ministries  and  sub-ordinated  agencies  are  still  lacking.  The  reoccurence  of  and  increase  in 
arrears is an indicator for not yet fully effective attribution of responsibilities and commitment 
controls.  The  law  on  state  administration,  law  on  civil  servants  and  relevant  laws  on  policy 
planning and the budget system law need to be assessed and if necessary  amended to ensure a 
consistent basis for implementation of managerial accountability. (See Public administration 
reform). 

114 

 
The legislation on internal control is largely in line with international standards. Declarations 
of  assurance  are  systematically  signed  by  senior  management,  but  in  the  absence  of  a 
delegation  framework,  this  remains  more  of  a  formal  exercise.  In  April  2019,  a  new 
methodology was approved that should improve the effectiveness of the Ministry of Finance 
to  monitor  the  performance  of  the  internal  control  systems  of  public  units.  Sub-ordinated 
agencies and local government units remain the weakest institutions as regards functioning of 
internal control systems. At all levels, risk management is still at an early stage and needs to 
be better incorporated in the management of financial and operational processes. .  The budget 
inspection function is centralised within the Ministry of Finance and Economy performs ex-
post  activities  upon  request.  The  number  of  requests  introduced  by  internal  audit  units  is 
relatively low. 

The legislation on internal audit practice is in line with international standards. In 2019, the 
number  of  certified  auditors  in  the  public  sector  increased.  The  internal  audit  function    still 
does  not  issue  audit  opinions  on  the  effectiveness  of  the  internal  control  systems  across 
budget entities.  The internal audit quality control procedures still need to become generally 
compliant  with  the  standards  and  fully  operational  .  The  monitoring  of  the  effectively  and 
timely implementation of internal audit recommendations should be improved. 

The central harmonisation unit (CHU) provides methodological guidance and monitors the 
performance of internal control and internal audit in the public seector on the basis of  quality 
reviews  and  self-assessment  reports  from  institutions.  In  2019,  the  CHU  developed  a 
methodology for internal control quality reviews and started to undertake such reviews. The 
capacity  of  CHUs  needs  to  be  strengthened.  The  annual  PIFC  report  is  presented  to  the 
Council of Ministers and discussed in the Parliament.  

External audit 

In  line  with  the  standards  of  the  International  Organisation  of  Supreme  Audit  Institutions 
(INTOSAI) Albania’s constitutional and legal framework provides for independence of the 
State  Audit  Institution  (SAI)  .Adoption  of  proposed  legal  amendments  is  pending  to 
strengthen the scope of the audit mandate to cover all public entities. 

In accordance’ with its 2018-22 strategic development plan, the SAI is implementing actions 
to improve its institutional capacity. The current legislation should be strengthened to ensure 
continuity  after  the  end  of  mandate  of  the  SAI  chair.  In  recent  years,  the  SAI  has  taken 
measures  to  improve  the  professional  development  of  its  audit  staff.  The  SAI  has 
implemented the 2017-19 communication strategy, and has raised awareness among academia 
and civil society on the importance of external audit. 

The  quality  of  audit  work  needs  to  be  further  improved,  as  the  audit  activities  do  not  yet 
fully comply with the INTOSAI standards, specifically regarding quality control procedures. 
The SAI audit objectives have started to shift from compliance and regularity audits towards 
audits  that could  help prevent  economic damage  and violation of rules .  Financial audits do 
not yet result in professional and qualified audit opinions, even though the SAI issued for the 
first  time  in  2018  an  opinion  on  the  execution  of  the  2017  state  budget.  The  SAI  follows  a 
risk-based  external  audit  approach.  The  number  of  performance  audits  has  increased 
accounting for  approximately 10% of all conducted audits in recent years. 

The impact of audit work is limited. Audit reports are summarised quarterly and published 
on a regular basis on the SAI website. The 2017 Memorandum of Understanding between the 
SAI  and  the  Ministry  of  Finance  on  monitoring  the  follow-up  of  audit  recommendations 
resulted  in  the  creation  of  a  technical  secretariat  with  representatives  of  both  parties.  Such 
secretariat  has  not  not  yet  become  fully  operational.  The  monitoring  of  the  effectively  and 
timely implementation of audit recommendations should be improved. At the end of 2019 the 
electronic platform for the follow-up of audit recommendations became functional. 

115 

 
Protection of the EU’s financial interests  

Albania has ensured some level of acquis alignment, yet still needs to fully harmonise with 
the  EU  Directive  on  the  fight  against  fraud  to  the  EU’s  financial  interests  by  means  of 
criminal  law.  The  national  anti-fraud  coordination  service  (AFCOS)  is  a  unit  within  the 
Directorate  of  Financial  Inspection  in  the  Ministry  of  Finance  and  Economy.  An  AFCOS 
network, involving other relevant authorities, has been set up and it meets regularly. A manual 
for the management of irregularities in EU funds was adopted during the reporting period. 
Albania cooperates with the European Commission during investigations and reports to the 
Commission  on  irregularities  and  suspected  fraud  cases.  Albania  reported  three  cases  via 
the  online  Irregularity  Management  System  in  2019.  So  far,  only  four  cases  have  been 
reported  through  the  system  since  2006.  There  is  no  national  anti-fraud  strategy  yet  in 
place.  Although  cooperation  on  investigations  has  improved,  Albania  needs  to  develop  a 
solid track record on investigations and reporting on irregularities. 

Protection of the euro against counterfeiting 

In November 2019, Albania ratified the 1929 International Convention for the Suppression of 
Counterfeiting Currency. Albania is partially aligned with the acquis regarding the definition 
of  counterfeiting  banknotes  and  coins,  as  well  as  the  procedures  for  gathering,  storing  and 
withdrawing  them  from  circulation.  Technical  analysis  is  performed  by  the  National 
Analysis Centre of the Bank of Albania. Cooperation at the national and international level is 
ongoing.  In  August  2018,  the  Bank  of  Albania  joined  the  Europol  Platform  for  Experts.  A 
cooperation agreement between European Commission and the Bank of Albania on coins is in 
place, while an agreement on banknotes with the European Central Bank is pending. Albania 
participates in the actions of the Pericles 2020 programme. 

5.33.   Chapter 33: Financial and budgetary provisions 
This  chapter  covers  the  rules  governing  the  funding  of  the  EU  budget  (‘own  resources’). 
These  resources  mainly  consist  of:  (i)  contributions  based  on  the  gross  national  income  of 
each  Member  State;  (ii)  customs  duties;  and  (iii)  a  resource  based  on  value-added  tax. 
Member  States  must  have  the  appropriate  administrative  capacity  to  adequately  coordinate 
and ensure the correct calculation, collection, payment and control of own resources.  

Albania  has  some  level  of  preparation  in  this  area.  Some  progress  was  made  in  the 
underlying  policy  areas  that  affect  the  functioning  of  the  EU  funding  system,  through  the 
progress  in  implementation  of  the  2016  Organic  Budget  Law,  the  fiscal  rule  and  the 
continuation  of  the  public  finance  management  reform.  Alignment  with  EU  acquis  in  the 
underlying policy fields continued. 

Albania needs to make further progress on last year’s recommendations and should therefore 
make efforts to: 

 

continue  aligning  data  on  National  Accounts  to  ESA  2010  (European  System  of 
Accounts), and improving the comprehensivenes of data transmission to Eurostat. 

 

align its legislation with the EU provisions on VAT and customs duties; 

There  was  some  progress  on  the  underlying  policy  areas  indirectly  affecting  the  own 
resources  system  (see  chapters:  16  Taxation,  18  Statistics,  29  Customs  Union  and  32 
Financial control). 

Albania has structures in place for levying customs duties at the point of import. It operates a 
national  VAT system.  Albania has started drafting a Mid-Term Revenue  Strategy  to  outline 
the taxation reform and adoption is expected in 2020. 

As  regards  the  Gross  National  Income  (GNI)  resource,  further  progress  was  made  on 
alignment  with  ESA  2010  standards,  in  methodological  improvements,  faster  publication  of 

116 

 
statistics and increased number of statistical tables reported to Eurostat. Currently INSTAT is 
working on the next benchmark revision of national accounts, and has prepared a harmonised 
revision policy in coordination with the Central Bank of Albania and the Ministry of Finance 
and Economy (MOEF).  

Preparations continued for improving the estimation of Non-Observed Economy in Albania. 
A  pilot  project  to  improve  the  Exhaustiveness  Adjustments  of  GDP/GNI  estimates,  in 
particular to develop new experimental estimates on illegal activities and fiscal audit is under 
implementation.  A  statistical  project  on  improving  the  exhaustiveness  of  national  accounts 
estimates  is  being  carried  out  in  the  years  2019-2021.  Albania  needs  to  further  improve 
compliance  with  ESA  2010  and  to  start  drafting  the  GNI  Inventory,  on  the  basis  of  the 
existing  description  of  sources  and  methods  used  to  compile  National  Accounts.  Continued 
efforts are needed to ensure that effective measures are taken to formalise the grey economy, 
improve the exhaustiveness  of the national  accounts  and GDP/GNI calculations and combat 
fiscal evasion and customs duty fraud. 

On  administrative  infrastructure,  MOEF  has  overall  responsibility  for  financial  and 
budgetary issues. Albania will need to work on establishing the relevant institutions involved 
in  the  own  resources  system,  an  own  resource  coordination  body  and  implementing  rules. 
These  are needed to ensure that, on accession, it will be  able to calculate, forecast,  account 
for, collect, pay, control, and report to the EU, on own resources in line with the acquis. 

117 

 
 
 
Annex I – Relations between the EU and Albania 

The  Stabilisation  and  Association  Agreement  (SAA)  between  Albania  and  the  EU  came 
into force in  April 2009.  In the  reporting period, Albania continued to  implement  the SAA. 
Regular political and economic dialogue has continued through the relevant joint bodies under 
the SAA. Discussions focused on the progress made in advancing EU reforms, in particular in 
the  areas  identified  by  the  June  2018  Council  Conclusions  and  the  strengthening  of  good 
neighbourly  relations.  Albania  also  participates  in  the  ministerial  dialogue  between  the 
economic  and  finance  ministers  of  the  EU  and  the  candidate  countries,  where  joint 
recommendations are adopted. 

Albania is a candidate country since 2014. In 2018, the Commission issued an unconditional 
recommendation  to  open  accession  negotiations.  On  26  March  2020,  the  European  Council 
endorsed the Council’s decision to open accession negotiations with Albania.  

Visa liberalisation for citizens of Albania travelling to the Schengen area has been in force 
since  December  2010.  A  readmission  agreement  between  the  EU  and  Albania  has  been  in 
force  since  2006.  The  Commission’s  July  2020  third  report  under  the  visa  suspension 
mechanism concluded that Albania continues to meet the visa liberalisation requirements. 

On  1  May  2019  the  status  agreement  for  operational  cooperation  with  Frontex  has  entered 
into force.  Frontex launched its first  fully-fledged joint operation outside the EU, deploying 
teams,  together  with  Albanian  border  guards,  at  the  Greek-Albanian  border.  Albania 
continued to cooperate with the European Monitoring Centre for Drugs and Drug Addiction 
(EMCDDA) under the working arrangement signed in March 2019 on drug related issues,  

Albania  has  continued  to  fully  align  with  all EU  common  foreign  and  security  policy 
positions and declarations. Albania continued to actively participate in EU crisis management 
missions and operations under the common security and defence policy.  

The  bilateral  EU  support  for  Albania  under  the  Instrument  for  Pre-accession  Assistance 
(IPA II) in 2014-2020 amounts to EUR 758 million. The 2019 and 2020 action programmes 
include an EU contribution amounting to EUR 173.95 million. The assistance is implemented 
mainly under direct management by the EU Delegation in Tirana, as well as through budget 
support  operations,  including  for  justice  reform.  To  support  the  recovery  following  the 
November  2019  earthquake,  EUR  115  million  have  been  provided  for  reconstruction  of 
schools and the rehabilitation of cultural heritage sites. As part of the response to the COVID-
19  pandemic,  EUR  4  million  have  been  refocused  for  urgent  medical  equipment  and  EUR 
46.65  million  for  socio-economic  recovery  measures  under  IPA  II.  Other  programmes  have 
also been reoriented to help reduce the impact of the pandemic. Albania will also receive up 
to  EUR  180  million  in  loans  for  macro  financial  assistance.  Furthermore,  Albania  benefits 
from  the  IPA  multi-country  and  regional  programmes  and  participates  in  five  cross-border 
cooperation programmes, as well as in transnational cooperation programmes.  

Albania  participates  with  IPA  support  in  the  EU  programmes  Erasmus+,  Creative  Europe 
(Culture  and  Media  strands),  Employment  and  Social  Innovation,  Horizon  2020,  Customs 
2020, Fiscalis 2020, Competitiveness of Enterprises and Small and Medium-Sized Enterprises 
Programme  (COSME)  and  Europe  for  Citizens,  and  is  an  observer  to  the  EU  Fundamental 
Rights Agency. 

118 

 
 
 
 
 
Note 

Note 

STATISTICAL DATA (as of 03.04.2020) 
Albania 

Basic data 
Population (thousand) 
Total area of the country (km²) 

National accounts 
Gross domestic product (GDP) (million national currency) 
Gross domestic product (GDP) (million euro) 
GDP (euro per capita) 
GDP per capita (in purchasing power standards (PPS)) 
GDP per capita (in PPS), relative to the EU average (EU-27 = 100) 
Real GDP growth rate: change on previous year of GDP volume (%) 
Employment growth (national accounts data), relative to the previous year (%) 
Labour productivity growth: growth in GDP (in volume) per person employed, relative to the 
previous year (%) 
Unit labour cost growth, relative to the previous year (%) 
**3 year change (T/T-3) in the nominal unit labour cost growth index (2010 = 100) 
Labour productivity per person employed: GDP (in PPS) per person employed relative to EU 
average (EU-27 = 100) 
Gross value added by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
Final consumption expenditure, as a share of GDP (%) 
Gross fixed capital formation, as a share of GDP (%) 
Changes in inventories, as a share of GDP (%) 
Exports of goods and services, relative to GDP (%) 
Imports of goods and services, relative to GDP (%) 
Gross fixed capital formation by the general government sector, as a percentage of GDP (%) 

Business 

Industrial production volume index (2015 = 100) 
Number of active enterprises (number) 
Birth rate: number of enterprise births in the reference period (t) divided by the number of 
enterprises active in t (%) 
Death rate: number of enterprise deaths in the reference period (t) divided by the number of 
enterprises active in t (%) 
People employed in SMEs as a share of all persons employed (within the non-financial 
business economy) (%) 
Value added by SMEs (in the non-financial business economy) (EUR million) 

Note 

1) 2) 

2) 

2) 

2007 
2 982 
28 748 

2007 
965 528 
7 810 
2 630 
5 750 
23.4 
6.0 
: 
: 

: 
: 
: 

19.7 
10.8 
18.3 
51.2 
92.2 
36.4 
: 
28.2 
55.0 
: 

2007 
33.4 
60 573 
15.6 

: 

82.3 

2014 
2 892 
28 748 

2015 
2 886 
28 748 

2016 
2 876 
28 748 

2017 
2 877 
28 748 

2018 
2  870 
28 748 

2014 
1 395 305 
9 969 
3 450 
8 070 
30.4 
1.8 
: 
: 

2015 
1 434 307 
10 264 
3 560 
8 380 
30.5 
2.2 
: 
: 

2016 
1 472 479 
10 720 
3 730 
8 400 
29.8 
3.3 
: 
: 

2017 
1 551 281p 
11 564p 
4 020p 
8 960p 
30.7p 
3.8p 
: 
: 

2018 
1 630 907e 
12 782e 
4 460e 
9 290e 
30.8e 
4.1e 
: 
: 

: 
: 
: 

22.9 
14.8 
9.9 
52.4 
92.2 
24.2 
1.5 
28.2 
47.2 
: 

2014 
102.1 
78 920 
15.4 

: 

80.1 

: 
: 
: 

22.5 
14.6 
10.1 
52.8 
91.8 
24.4 
1.4 
27.3 
44.5 
: 

2015 
100.0 
95 184 
: 

: 

81.7 

: 
: 
: 

22.6 
14.0 
10.2 
53.2 
92.2 
24.4 
0.9 
29.0 
45.8 
: 

2016 
82.0 
98 262 
19.5 

: 

81.4 

: 
: 
: 

21.8p 
12.8p 
10.5p 
54.9p 
91.2p 
24.5p 
0.5p 
31.6p 
46.6p 
: 

2017 
81.4 
97 352 
15.3 

: 

80.5 

: 
: 
: 

21.0e 
13.9e 
10.4e 
54.7e 
90.8e 
24.1e 
: 
31.7e 
45.4e 
: 

2018 
96.6 
: 
12.5 

: 

: 

: 

1 129 

1 949 

2 083 

2 276 

2 520 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total value added (in the non-financial business economy) (EUR million) 

2) 

1 810 

2 871 

3 124 

3 388 

3 687 

: 

Inflation rate and house prices 
Consumer price index (CPI), change relative to the previous year (%) 
**Annual change in the deflated house price index (2015 = 100) 

Balance of payments 
Balance of payments: current account total (million euro) 
Balance of payments current account: trade balance (million euro) 
Balance of payments current account: net services (million euro) 
Balance of payments current account: net balance for primary income (million euro) 
Balance of payments current account: net balance for secondary income (million euro) 
Net balance for primary and secondary income: of which government transfers (million euro) 
**3 year backward moving average of the current account balance relative to GDP (%) 
**Five year change in share of world exports of goods and services (%) 
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 
Foreign direct investment (FDI) abroad (million euro) 
of which FDI of the reporting economy in the EU-27 countries (million euro) 
Foreign direct investment (FDI) in the reporting economy (million euro) 
of which FDI of the EU-27 countries in the reporting economy (million euro) 
**Net international investment position, relative to GDP (%) 
Year on year rate of change in gross inflow of remittances (in national currency) from migrant 
workers (%) 

Public finance 
***General government deficit / surplus, relative to GDP (%) 
***General government gross debt relative to GDP (%) 
Total  government revenues, as a percentage of GDP (%) 
Total government expenditure, as a percentage of GDP (%) 

Financial indicators 
Gross external debt of the whole economy, relative to GDP (%) 
Gross external debt of the whole economy, relative to total exports (%) 
Money supply: M1 (banknotes, coins, overnight deposits, million euro) 
Money supply: M2 (M1 plus deposits with maturity up to two years, million euro) 
Money supply: M3 (M2 plus marketable instruments, million euro) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
**Annual change in financial sector liabilities (%) 
**Private credit flow, consolidated, relative to GDP (%) 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, per annum (%) 

Note 

Note 
3) 
3) 
3) 
3) 
3) 
3) 
3) 

Note 

Note 
3) 
3) 

4) 

2007 
2.9 
: 

2007 
-824.2 
-2 104.0 
18.9 
218.0 
1 042.9 
60.5 
-8.8 
: 
463.7 
17.5 
: 
481.1 
: 
: 
2.0 

2007 
-3.5 
50.7 
26.1 
29.6 

2007 
28.8 
101.9 
1 963.1 
4 094.3 
6 128.5 
2 413.1 
: 
: 
: 
5.68 

2014 
1.6 
: 

2014 
-1 076.3 
-2 215.6 
323.2 
91.5 
724.6 
9.4 
-10.1 
-18.5 
811.5 
25.1 
: 
836.6 
: 
-42.9 
8.0 

2014 
-5.2 
66.1 
26.3 
31.5 

2014 
69.5 
246.3 
2 524.3 
5 160.8 
8 538.2 
3 995.9 
: 
: 
: 
2.92 

2015 
1.9 
: 

2015 
-883.6 
-2 298.9 
524.7 
122.2 
768.4 
5.5 
-9.6 
-17.4 
818.4 
34.0 
: 
852.4 
: 
-43.2 
1.2 

2015 
-4.1 
68.8 
26.4 
30.5 

2015 
74.4 
272.7 
2 748.7 
5 173.6 
8 703.1 
3 983.1 
: 
: 
: 
2.26 

2016 
1.3 
: 

2016 
-811.7 
-2 602.8 
796.6 
174.0 
820.5 
47.8 
-9.0 
-2.2 
936.5 
57.9 
: 
994.4 
: 
-44.3 
0.9 

2016 
-1.8 
68.6 
27.6 
29.5 

2016 
73.5 
253.5 
3 170.1 
5 365.1 
9 198.2 
4 046.4 
: 
: 
: 
1.49 

2017 
2.0 
: 

2017 
-866.0 
-2 824.2 
1 081.8 
28.7 
847.7 
69.6 
-7.9p 
14.5 
993.8 
23.2 
: 
1 017.0 
: 
-47.1 
1.0 

2017 
-2.0 
66.9 
27.7 
29.7 

2017 
68.7p 
217.6 
3 440.8 
5 508.2 
9 444.2 
4 086.0 
: 
: 
: 
1.34 

2018 
2.0 
: 

2018 
-866.4 
-2 871.1 
1 111.0 
-13.8 
907.5 
67.1 
-7.3p 
21.6 
1 022.2 
69.9 
: 
1 092.1 
: 
-49.4 
0.1 

2018 
-1.6 
65.1 
27.6 
29.2 

2018 
65.3 
205.8 
3 752.1 
5 732.2 
9 906.4 
4 223.7 
: 
: 
: 
1.24 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending interest rate (one year), per annum (%) 
Deposit interest rate (one year), per annum (%) 
Euro exchange rates: average of period (1 euro = … national currency) 
Trade-weighted effective exchange rate index, 42 countries (2005 = 100) 
**3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries 
(2005 = 100) 
Value of reserve assets (including gold) (million euro) 

External trade in goods 
Value of imports: all goods, all partners (million euro) 
Value of exports: all goods, all partners (million euro) 
Trade balance: all goods, all partners (million euro) 
Terms of trade (export price index / import price index * 100) (number) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 
Crude rate of natural change of population (natural growth rate): number of births minus 
deaths (per thousand inhabitants) 
Infant mortality rate deaths of children under one year of age (per thousand live births) 
Life expectancy at birth: male (years) 
Life expectancy at birth: female (years) 

Labour market 
Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that 
is economically active (%) 
*Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are 
in employment (%) 
Male employment rate for persons aged 20–64 (%) 
Female employment rate for persons aged 20–64 (%) 
Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are 
in employment (%) 
Employment by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
People employed in the public sector as a share of total employment, persons aged 20–64 
(%) 
People employed in the private sector as a share of total employment, persons aged 20–64 
(%) 
Unemployment rate: proportion of the labour force that is unemployed (%) 
Male unemployment rate (%) 

5) 
6) 

7) 
7) 

Note 

Note 

Note 

8) 

11.73 
5.67 
123.62 
100 
: 

7.66 
1.92 
139.97 
112 
-1.4s 

7.77 
1.35 
139.74 
114 
0.2s 

5.89 
0.80 
137.36 
110 
-3.1s 

5.98 
0.75 
134.15 
105 
-6.3s 

5.66 
0.73 
127.59 
97 
-15.2s 

1 459.8 

2 191.7 

2 880.0 

2 945.0 

2 995.9 

3 399.0 

2007 
3 046 
265 
-2 260 
92.0 
58.9 
59.5 

2007 
6.7 

6.2 
: 
: 

2007 
72.2 

62.7e 

71.4e 
54.2e 
46.6e 

: 
: 
: 
: 
: 

: 

13.5e 
14.4e 

2014 
3 941 
1 827 
-2 114 
119.3 
77.2 
60.1 

2014 
5.2 

7.9 
76.4 
80.1 

2014 
68.6e 

56.6e 

65.2e 
48.5e 
51.2e 

42.7e 
11.0e 
6.4e 
39.9s 
17.5e 

82.5e 

17.5e 
19.2e 

2015 
3 882 
1 728 
-2 154 
119.6 
75.2 
60.8 

2015 
3.6 

7.1 
76.3 
79.7 

2015 
71.3e 

59.3e 

68.1e 
50.7e 
53.6e 

41.3e 
11.6e 
6.9e 
40.2s 
16.7e 

83.3e 

17.1e 
17.1e 

2016 
4 169 
1 771 
-2 399 
115.9 
77.7 
62.4 

2016 
3.6 

8.7 
77.1 
80.1 

2016 
73.3e 

62.1e 

69.4e 
55.0e 
54.8e 

40.2e 
12.8e 
6.5e 
40.5s 
15.6e 

84.4e 

15.2e 
15.9e 

2017 
4 648 
2 026 
-2 622 
119.3 
77.0 
60.8 

2017 
3.0 

8.0 
77.1 
80.1 

2017 
73.9 

63.9 

72.1 
55.6 
55.5e 

38.2e 
12.5e 
6.9e 
42.4e 
16.4e 

83.6e 

13.7e 
14.6e 

2018 
5 026 
2 431 
-2 595 
123.9 
75.9 
60.0 

2018 
2.5 

8.9 
77.4 
80.5 

2018 
74.8 

65.6 

73.9 
57.4 
58.2e 

37.4e 
12.7e 
7.0e 
42.9e 
15.9e 

84.1e 

12.3e 
12.7e 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 
Long-term unemployment rate: proportion of the labour force that has been unemployed for 
12 months or more (%) 
Unemployment rate for persons (aged 25–64) having completed at most lower secondary 
education (ISCED levels 0-2) (%) 
Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED 
levels 5-8) (%) 

12.2e 
20.1e 
9.4e 

9.7 

: 

15.2e 
39.0e 
11.2e 

13.4e 

: 

Social cohesion 
Average nominal monthly wages and salaries (national currency) 
Index of real wages and salaries (index of nominal wages and salaries divided by the 
inflation index) (2010 = 100) 
GINI coefficient 
Poverty gap 
*Early leavers from education and training: proportion of the population aged 18–24 with at 
most lower secondary education who are not in further education or training (%) 

Standard of living 
Number of passenger cars relative to population size (number per thousand population) 
Number of mobile phone subscriptions relative to population size (number per thousand 
population) 
Mobile broadband penetration (per 100 inhabitants) 
Fixed broadband penetration (per 100 inhabitants) 

Infrastructure 
Density of railway network (lines in operation per thousand km²) 

Length of motorways (kilometres) 

Innovation and research 

Public expenditure on education relative to GDP (%) 
*Gross domestic expenditure on R&D relative to GDP (%) 
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP 
(%) 
Percentage of households who have internet access at home (%) 

Environment 
*Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 
Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2010 constant 
prices) 
Electricity generated from renewable sources relative to gross electricity consumption (%) 
Road share of inland freight transport (based on tonne-km) (%) 

Note 
9) 
10) 

2007 
33 750e 
88.3e 

2014 
45 539be 
111.2e 

Note 

Note 

Note 

Note 

: 
: 
42.0e 

2007 
79.8 
785.8e 

: 
: 

2007 
14.6 

: 

2007 
3.3 
: 
: 

: 

2007 
88.0 
260.9 

51.5 
: 

: 
: 
26.0e 

2014 
130.7 
1 706.0 

7.2 
: 

2014 
12.6 

: 

2014 
3.3 
: 
: 

: 

2014 
: 
244.0 

60.6 
: 

17.1e 
39.8e 
11.3e 

12.0e 

: 

2015 
47 900e 
111.1e 

: 
: 
21.3e 

2015 
139.9 
1 658.6 

8.4 
: 

2015 
13.8 

: 

2015 
3.1 
: 
: 

: 

2015 
: 
223.5 

80.8 
: 

14.4e 
36.5e 
10.1e 

11.8e 

13.3e 

2016 
47 522e 
110.7e 

: 
: 
19.6e 

2016 
151.6 
1 836.2 

9.3 
: 

2016 
12.2 

: 

2016 
3.1 
: 
: 

: 

2016 
: 
223.0 

100.5 
: 

12.6e 
31.9e 
8.9e 

11.2 

11.9e 
28.3e 
8.3e 

9.2 

11.7e 

11.5e 

2017 
48 967e 
118.8e 

37 
33.4 
19.6 

2017 
146.7 
1 934.4 

10.6 
: 

2017 
12.2 

: 

2017 
3.1p 
: 
: 

: 

2017 
: 
223.9 

60.8 
: 

2018 
50 589e 
119.2e 

35 
32.4 
17.4 

2018 
160.3 
1 445.6 

12.6 
: 

2018 
12.2 

: 

2018 
3.2p 
: 
: 

80.7 

2018 
: 
213.6 

111.9 
: 

Energy 

Note 

2007 

2014 

2015 

2016 

2017 

2018 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary production of all energy products (thousand TOE) 
Primary production of crude oil (thousand TOE) 
Primary production of solid fuels (thousand TOE) 
Primary production of gas (thousand TOE) 
Net imports of all energy products (thousand TOE) 
Gross inland energy consumption (thousand TOE) 
Gross electricity generation (GWh) 

Agriculture 
Agricultural production volume index of goods and services (at producer prices) (2010 = 100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand heads, end of period) 
Livestock numbers: live swine (thousand heads, end of period) 
Livestock numbers: live sheep and live goats (thousand heads, end of period) 
Raw milk available on farms (thousand tonnes) 
Harvested crop production: cereals (including rice) (thousand tonnes) 
Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

Note 

11) 

Source: Eurostat and the statistical authorities in Albania 

1 050 
564 
11 
14 
1 011 
2 057 
2 860 

2007 
: 
1 121 
577 
147 
2 729 
1 016 
494 
0 
672 

2 013 
1 368 
0 
25 
682 
2 355 
4 724 

2014 
: 
1 178 
500 
172 
2 800 
1 133 
700 
0 
950 

2 073 
1 279 
34 
27 
280 
2 199 
5 895 

2015 
: 
1 175 
504 
171 
2 751 
1 131 
696 
0 
1 030 

1 961 
1 056 
2 
35 
465 
2 272 
7 782 

2016 
: 
1 174 
492 
181 
2 913 
1 145 
698 
0 
1 129 

1 634 
959 
68 
37 
920 
2 368 
4 526 

2017 
: 
1 174 
475 
180 
2 859 
1 156 
702 
30 
1 157 

1 998 
911 
144 
32 
504 
2 351 
: 

2018 
: 
1 174 
467 
184 
2 782 
1 144 
678 
28 
1 166 

: = not available 
b = break in series 
e = estimated value 
p = provisional 
s = Eurostat estimate 
* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator 
*** = The government deficit and debt data of enlargement countries are published on an "as is" basis and without any 
assurance as regards their quality and adherence to ESA rules. 

  Footnotes: 

1)  The Albanian Government is implementing an action plan to reduce the informal economy. As result, 56 787 active 

enterprises were registered for the first time in the statistical business register in 2015. Most of them are not new 
entities for 2015. 

2)  2006: based on NACE Rev. 1.1; coverage is Divisions 10 to 74. 2013-2016: based on NACE Rev. 2; coverage is 

Divisions 05 to 82 and 95. 

3)  2006: based on balance of payments manual edition 5 (BPM5). 
4)  Annual average of the Tribor rate – interbank rate for overnight loans. 
5)  Average weighted rate applied on new 12-month loans over the respective month, on 12-month maturity. 
6)  Deposit interest rate represents the average weighted rate for newly accepted deposits over the respective month, 

on 12-month maturity. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7)  2013 and 2014: including persons who have not or could not be classified to a particular activity. 
8)  2006: administrative data. 
9)  Public sector. 
10)  Excluding rice.