COMMISSION STAFF WORKING DOCUMENT Albania 2022 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2022 Communication on EU Enlargement policy
Date: 2022-10-12
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Albania, accession criteria, accession negotiations, pre-accession strategy

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 12.10.2022  SWD(2022) 332 final  COMMISSION STAFF WORKING DOCUMENT Albania 2022 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2022 Communication on EU Enlargement policy               {COM(2022) 528 final} - {SWD(2022) 333 final} - {SWD(2022) 334 final} - {SWD(2022) 335 final} - {SWD(2022) 336 final} - {SWD(2022) 337 final} - {SWD(2022) 338 final}  
 
 
1. 

INTRODUCTION ...................................................................................................... 3 

1.1. 

1.2. 

CONTEXT ................................................................................................................. 3 

SUMMARY OF THE REPORT  ..................................................................................... 3 

2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ................. 8 

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM
 .................................................................................................................................. 8 

2.1.1 Democracy ......................................................................................................... 8 

2.1.2. Public Administration Reform ........................................................................ 13 

2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS.................................................................. 17 

2.2.1.  Chapter 23: Judiciary and fundamental rights ............................................ 17 

2.2.2.  Chapter 24: Justice, freedom and security .................................................. 37 

2.3. ECONOMIC CRITERIA .................................................................................................... 51 

2.3.1. The existence of a functioning market economy ............................................ 51 

2.3.2. The capacity to cope with competitive pressure and market forces within the 

Union .......................................................................................................... 59 

2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL ........................................ 62 

Chapter 5: Public procurement ................................................................................. 62 

Chapter 18: Statistics ................................................................................................ 64 

Chapter 32: Financial control ................................................................................... 66 

3. 

4. 

GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION 68 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP ................. 71 

CLUSTER 2: INTERNAL MARKET ........................................................................................ 71 

Chapter 1: Free movement of goods ......................................................................... 71 

Chapter 2: Freedom of movement of workers .......................................................... 73 

Chapter 3: Right of establishment and freedom to provide services ........................ 74 

Chapter 4: Free movement of capital ........................................................................ 75 

Chapter 6: Company law .......................................................................................... 77 

Chapter 7: Intellectual property law ......................................................................... 78 

Chapter 8: Competition policy .................................................................................. 79 

Chapter 9: Financial services .................................................................................... 80 

Chapter 28: Consumer and health protection ........................................................... 82 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH ................................................ 85 

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Chapter 10: Digital transformation and media ......................................................... 86 

Chapter 16: Taxation ................................................................................................ 87 

Chapter 17: Economic and monetary policy ............................................................. 88 

Chapter 19: Social policy and employment .............................................................. 90 

Chapter 20: Enterprise and industrial policy ............................................................ 94 

Chapter 25: Science and research ............................................................................. 96 

Chapter 26: Education and culture ............................................................................ 98 

Chapter 29: Customs union ..................................................................................... 100 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY ............................ 102 

Chapter 14: Transport ............................................................................................. 102 

Chapter 15: Energy ................................................................................................. 104 

Chapter 21: Trans-European networks ................................................................... 107 

Chapter 27: Environment and climate change ........................................................ 109 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION ................................................ 113 

Chapter 11: Agriculture and rural development ..................................................... 114 

Chapter 12: Food safety, veterinary and phytosanitary policy ............................... 115 

Chapter 13: Fisheries .............................................................................................. 116 

Chapter 22: Regional policy and coordination of structural instruments ............... 118 

Chapter 33: Financial and budgetary provisions .................................................... 119 

CLUSTER 6: EXTERNAL RELATIONS .................................................................................. 121 

Chapter 30: External relations ................................................................................ 121 

Chapter 31: Foreign, security and defence policy .................................................. 122 

ANNEX I – RELATIONS BETWEEN THE EU AND ALBANIA .................................. 125 

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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.  

Albania has continued to maintain overall focus on the EU reform agenda, despite the challenge 
of addressing the economic and social consequences of the triple shock of the 2019 earthquake, 
the pandemic and of the Russian war of aggression against Ukraine. It has continued to meet all 
the conditions set out in the Council Conclusions of March 2020 for the first Inter-governmental 
Conference1. On 19 July, the Intergovernmental Conference on accession negotiations took place 
with Albania. The Commission immediately launched the screening process. 

Albania’s  maintained  its  record  of  full  alignment  with  the  EU’s  common  foreign  and  security 
policy  (CFSP).  As  a  non-permanent  member  since  January  2022,  Albania  has  been  actively 
engaged in the UN Security Council as a co-penholder of resolutions condemning the aggression, 
thus aligning with the EU position when co-sponsoring and voting on UN resolutions on Russia's 
invasion  of  Ukraine  and  its  humanitarian  impact,  and  also  when  voting  on  the  suspension  of 
Russia in the Human Rights Council. Albania’s stance is a strong signal of its strategic choice of 
EU accession and of its role as a reliable partner. 

1.2. 

SUMMARY OF THE REPORT2  

As regards the political criteria, in the new legislature, resulting from the 2021 elections, which 
were  held  following  the  cross-party  agreement  of  5  June  2020  the  elected  members  from  the 
largest opposition parties took their seats in parliament. The parliament elected the new President 
of the Republic. Internal conflict within the largest opposition party (DP), affected parliamentary 
life.  On  EU  oriented  reforms,  parliament  passed  a  time-limited  constitutional  extension  of  the 
vetting bodies mandate and nine laws aimed at alignment with the EU acquis. The government 
maintained a focus on reforms related to the country’s EU path and reinforced its coordination 
structure for EU integration, but it needs to further advance the EU reform agenda, together with 
the  opposition  and  all  segments  of  society.  The  establishment  of  several  government  agencies 
around the Prime Minister’s Office, without a comprehensive steering framework and without a 
systematic attention to oversight and reporting lines, raises questions in relation to the standards 
of  public  administration.  A  new  decentralisation  strategy  beyond  2022,  remains  to  be  adopted 
and upstream consultation at local level will be essential. Despite funding improvements, limited 
progress  was  made  to  implement  the  roadmap  on  creating  an  enabling  environment  for  civil 
society. 

1 https://data.consilium.europa.eu/doc/document/ST-7002-2020-INIT/en/pdf and 
https://www.consilium.europa.eu/en/meetings/european-council/2020/03/26/ 
2 This report covers the period from June 2021 to June 2022. It is based on input from a variety of sources, including 
contributions from the government of Albania, the EU Member States, European Parliament reports and information 
from  various  international  and  non-governmental  organisations.  It  also  includes  the  results  of  comparative 
assessments and indices produced by other stakeholders, in particular in the area of rule of law. 
The report uses the following assessment scales to describe the state of play: early stage, some level of preparation, 
moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting 
period, it uses the following scale: backsliding, no progress, limited progress, some progress, good progress and very 
good progress. Where appropriate, also interim steps have been used. 

3 

 
 
                                                           
Albania  is  moderately  prepared  in  the  area  of  public  administration  reform.  It  made  limited 
progress  in  strengthening  line  ministries’  capacity  to  implement  regulatory  impact  assessments 
and  hold  public  consultations.  It  started  preparations  for  the  salary  reform  and  expanded  the 
automated  payroll  system.  Implementation  of  the  2015-2022  public  administration  reform  and 
the  2014-2022  public  financial  management  reform  strategies  continued.  The  IT  systems  for 
integrated  planning  are  not  yet  fully  functional.  However,  bodies  subordinate  to  ministries 
(agencies)  continued  to  be  created  without  a  comprehensive  steering  framework,  systematic 
attention  to  oversight  or  clear  reporting  lines.  They  also  further  exacerbated  the  issue  of  tasks 
entrusted to staff hired under the Labour Code, instead of to civil servants. Provisions on merit-
based recruitment in the civil service law remain to be fully implemented, especially for senior 
level positions. The number of provided online services continued to increase, but this also raises 
questions about equitable access for citizens with limited digital skills.  

Albania’s  judicial  system  has  reached  a  moderate  level  of  preparation.  Comprehensive  justice 
reform  continued,  resulting  in  good  progress  overall.  Two  new  judges  were  appointed  to  the 
Constitutional Court in March and September 2022, further improving the court’s ability to carry 
out its mandate. There was also progress with the High Court, which now has 15 sitting judges, 
enabling it to reduce the case backlog for the first time in six years, to start unifying the case law 
and  to  appoint  judges  to  the  Constitutional  Court.  Further  appointments  to  the  High  Court  are 
expected. However, long proceedings, a low clearance rate and a large case backlog continue to 
negatively impact the efficiency of the judicial system. To tackle these problems, a new judicial 
map was adopted following consultations. Additional efforts are still required to put it into effect, 
as well as to improve the case management system and the training system for magistrates.  

The temporary re-evaluation of all judges and prosecutors (the vetting process) has continued to 
advance  steadily.  Under  the  aegis  of  the  European  Commission,  the  International  Monitoring 
Operation  has  continued  to  oversee  the  process  independently.  By  12  September,  the  vetting 
institutions  had  completed  554  first-instance  cases.  Around  64%  of  the  vetting  dossiers 
processed  so  far  resulted  in  dismissals,  resignations  or  the  termination  of  mandate  of  vetted 
magistrates.  The  vetting  institutions  must  continue  to  refer  cases  to  the  prosecution  services 
where there are indications of criminal offences. 

The  Specialised  Structure  for  Anti-Corruption  and  Organised  Crime  (SPAK),  comprising 
the Special Prosecution Office (SPO) and the National Bureau of Investigation (NBI), continued 
its  operations.  After  a  budget  increase  in  2021,  the  SPO  now  has  17  prosecutors  in  place,  the 
recruitment of eight financial investigators is underway and the NBI reached its full operational 
capacity of 60 investigators after a second round of recruitment.  

Albania has some level of preparation in the fight against corruption. It continued its efforts to 
build  on  its  track  record  of  investigation,  prosecutions  and  convictions  in  the  fight  against 
corruption and delivered some results. These efforts need to continue. However, greater political 
will,  further  structured  efforts,  and  adequate  resources  and  skills  remain necessary.  The  SPAK 
Court  delivered  several  important  final  decisions  on  high-ranking  state  officials,  including  a 
former  Minister  of  the  Interior  and  a  former  Prosecutor  General.  Although  the  vetting  of 
members  of  the  judiciary  is  an  administrative  process,  it  continues  to  bring  results  in  the  fight 
against corruption within the judiciary. A new General Anti-Corruption Directorate was created 
in the Ministry of Justice. Overall, despite some progress, corruption remains an area of serious 
concern. Increasing the number of final convictions of high-level officials remains an important 

4 

 
 
priority to further tackle a culture of impunity. The sectors that are most vulnerable to corruption 
require targeted risk assessment and dedicated measures. 

Albania  has  some  level  of  preparation  in  the  fight  against  organised  crime.  It  made  some 
progress  in  meeting  last  year’s  recommendations.  Strong  and  fruitful  cooperation  with  EU 
Members  States,  Europol  and  Eurojust  has  led  to  tangible  results.  Albania  continued  to  show 
commitment to counter the production and trafficking of cannabis. Good progress was made on 
the seizure and confiscation of assets related to organised crime. This effort must continue in the 
future.  Efforts  also  need  to  continue  to  ensure  increased  prosecutions  and  final  convictions, 
especially  at  high-level.  Countering  cybercrime,  trafficking  in  human  beings  and  money 
laundering remain areas in which additional results are needed. The phenomenon of child sexual 
abuse online remains a concern. The country progressed steadily in the implementation of  the 
Financial Action Task  Force (FATF) Action Plan to  improve effectiveness  in  the field  of anti-
money laundering, but Albania remained on the list of jurisdictions under increased monitoring. 
Financial  investigations  need  to  accompany  systematically  criminal  proceedings.  Albania 
adopted  a  new  national  cross-sector  counter-terrorism  strategy  and  action  plan  in  December 
2020. 

On fundamental rights, Albania  complies overall with  international  human rights  instruments 
and  has  ratified  most  international  conventions  on  the  protection  of  fundamental  rights.  Some 
progress  was  made  in  using  alternatives  to  detentions  and,  in  particular,  in  developing  the 
probation  service,  which  remains  fully  operational,  including  for  juvenile  offenders.  Albania 
adopted  a  new  lesbian,  gay,  bisexual,  transgender,  intersex  and  queer  (LGBTIQ)  action  plan, 
which  includes  measures  to  fight  discrimination,  improve  access  to  services  and  approve  the 
legal gender recognition law and a national action plan for equality, inclusion and participation 
of Roma and Egyptians. Enhanced efforts to consolidate property rights through the registration 
and digitalisation of cadastral data are needed and the sector remains prone to corruption, while 
the compensation process has stalled. On the protection of national minorities, Albania adopted a 
new piece of implementing legislation that creates a fund for civil society projects in support of 
minority  rights.  However,  adoption  of  the  remaining  implementing  legislation,  including  on 
freedom  to  self-identify  as  a  member  of  a  national  minority  and  on  the  use  of  minority 
languages,  is  still  pending.  Preparations  for  the  long  awaited  population  and  housing  census 
continued, including  with  pilot  censuses in  minority population  areas, however the census  was 
postponed  to  2023.  Further  actions  need  to  be  taken  to  strengthen  data  protection  and  align 
national legislation with the EU General Data Protection Regulation (GDPR).  

Albania  has  some  level  of  preparation/is  moderately  prepared  in  the  area  of  freedom  of 
expression.  No  progress  was  made  in  the  reporting  period.  The  intersection  of  business  and 
political  interests  continued  to  hamper  media  independence  and  the  quality  of  journalism. 
Disinformation including smear campaigns are recurrent, especially in online media whose self-
regulation needs to be ensured. The atmosphere of verbal attacks, smear campaigns and acts of 
intimidation against journalists has not improved. Any changes to the Media Law need to be in 
line  with  the  Venice  Commission  opinion  and  must  be  submitted  for  consultation  with  media 
organisations. It remains important to ensure that the media have direct and transparent  access to 
governmental  institutions  and  their  activities.  The  regulatory  performance  of  the  Audio-visual 
Regulatory Authority (AMA) needs to be  improved and the independence and resources of the 
public service broadcaster should be strengthened.  

5 

 
 
Albania adopted a new and better-budgeted national strategy on gender equality and continues 
its efforts to ensure adequate state funding to implement it at central and local level. Efforts are 
needed to  ensure that all national  strategies  at  central  and local  level  are  gender mainstreamed 
and spend budget in ways that take gender into account. On citizenship, Albania should refrain 
from  developing  an  investors’  citizenship  scheme  (golden  passports)  as  it  would  pose  risks  as 
regards security, money laundering, tax evasion, terrorist financing, corruption and infiltration by 
organised crime, and would be incompatible with the EU acquis. 

On migration, the legal framework on migration is largely aligned with the EU acquis but needs 
updating,  and  must  provide  a  clear  framework  for  managing  and  coordinating  migration.  The 
number of irregular migrants apprehended in Albania in 2021 decreased by about 15% compared 
with  2020.  No  progress  was  made  in  referrals  to  asylum  procedure  and  the  implementation  of 
return procedures in line with the legal framework. Albania’s visa policy should be aligned with 
the EU one. 

The  number  of  Albanian  citizens  lodging  asylum  requests  in  EU  Member  States  remains  
lower than the peak of 2015,  but  increased sygnificantly in  the summer of 2021, and thus  still 
requires  continuous  and  sustained  efforts.  Dialogue  and  cooperation  with  the  countries  most 
affected have continued, in addition to thorough border checks and awareness-raising on rights 
and obligations under the visa-free regime. Albania should keep addressing the phenomenon of 
unaccompanied minors. The Commission is monitoring the trend very closely in the framework 
of the post-visa liberalisation monitoring mechanism. 

On  the  economic  criteria,  Albania  made  good  progress  and  is  moderately  prepared  for 
developing  a  functioning  market  economy.  The  impact  of  the  COVID-19  pandemic  on  the 
economy, the budget deficit and the public debt ratio were lower than expected, but Russia’s war 
against Ukraine caused price increases and lower trade. Fiscal space remains limited. Revenue-
related reforms progressed, but investment expenditure remains weak. Frequent budget revisions 
weaken fiscal credibility. Inflation increased above target. Increased public service digitalisation, 
financial  inclusion,  and  labour  inspections  benefitted  the  business  environment  and  the 
formalisation of the economy, but the informal economy remains significant. Public consultation 
remains  weak.  Albania  made  some  progress  and  is  at  some  level  of  preparation  to  cope  with 
competitive  pressure  and  market  forces  within  the  EU.  Energy  and  transport  infrastructure, 
digitalisation and education  improved, but  entrepreneurial  and technological  know-how  remain 
low, with unmet investment needs in human and physical capital, skills and education gaps, and 
low  R&D  spending.  Low  export  diversification  increases  vulnerability  to  external  shocks. 
Regional integration and exports increased but remained below potential.  

On public procurement, Albania is moderately prepared, the country has made good progress, 
in  particular  by  adopting  further  implementing  legislation  and  launching  an  electronic  appeals 
and  complaint  system.  On  statistics,  Albania  is  also  moderately  prepared,  it  made  limited 
progress on aligning with ESA 2010 standards, faster publication and transmission to Eurostat, 
but  the Population  Census  Law  has been further postponed. Albania is  moderately prepared in 
most  areas  on  financial  control,  where  the  country  made  some  progress,  notably  on  public 
internal financial control and internal audit. 

Albania  is  moderately  prepared  in  most  of  the  areas  of  the  internal  market,  namely  the  free 
movement  of  goods,  services  and  capital,  company  law  and  competition  policy.  The  same 
applies to financial services and to intellectual property law, both chapters where the country has 

6 

 
 
made  good  progress  thanks  to  the  reduction  of  non-performing  loans  and  to  the  adoption  of 
legislation on copyright and on industrial property rights. Albania has made some progress with 
the adoption of a new law on foreigners as well as by fulfiling some of the recommendations of 
the Moneyval report. However, in the area of competition policy, the State aid authority needs to 
be made independent and sufficiently resourced. Preparations are at an early stage on consumer 
and health protection, where the country made limited progress. 

Albania has achieved a moderate level of preparation in many areas linked to  competitiveness 
and  inclusive  growth,  namely  digital  transformation  and  media,  taxation,  economic  and 
monetary policy, enterprise and industrial policy, education and culture.  The same goes for the 
customs  union,  where  the  pan-Euro-Mediterranean  area  rules  of  origin  are  applied,  and  bodies 
involved  in  the  fight  against  smuggling  and  counterfeit  goods  are  strengthened  and  cooperate 
better. The adoption of a tax and criminal amnesty against the advice of the EU and Moneyval 
could jeopardise progress in this area as well as in the fight against money laundering. Albania 
has  some  level  of  preparation  in  social  policy  and  employment,  and  research  and  innovation. 
Albania has made some progress in education in particular with the adoption of the new National 
Strategy  for  Education  and  Action  Plan  2021-2026,  but  progress  was  limited  on  the  economic 
and monetary policy.  

As  regards  Green  Agenda  and  sustainable  connectivity,  Albania  is  moderately  prepared  on 
energy,  environment  and  climate  change.  It  has  some  level  of  preparation  in  the  areas  of 
transport policy and of trans-European networks and some progress was achieved in developing 
transport  and  energy  networks.  It  made  progress  on  civil  protection  and  is  ready  to  join  the 
Union  Civil  Protection  Mechanism.  The  country  has  made  limited  progress  in  the  other  areas 
covered by this cluster and ongoing efforts to address issues with vessels Flag State Control and 
to  align  legislation  need  to  continue.  Limited  progress  was  made  in  further  aligning  the  EU 
acquis  on  water  management,  chemicals  and  environmental  crime.  The  impact  of  strategic 
investments on biodiversity and nature protection requires attention. This cluster and the reforms 
concerned have significant links to Albania’s Economic Reform Programme, the Commission’s 
Economic  and  Investment  Plan  and  the  Green  Agenda  for  the  Western  Balkans  endorsed  by 
Albania in December 2020.  

Albania  has  some  level  of  preparation  in  most  areas  linked  to  resources,  agriculture  and 
cohesion,  namely  agriculture  and  rural  development,  food  safety,  veterinary  and  phytosanitary 
policy,  fisheries,  and  financial  and  budgetary  provisions.  It  is  moderately  prepared  as  regards 
regional policy  and coordination  of structural  instruments. Albania has  made  some progress in 
agriculture and  rural  development, notably with  the establishment of a farm  register and better 
administrative capacity for rural development. Good progress was observed on fisheries, with the 
continued  operationalisation  of the Vessel Monitoring  System  (VMS)  and allocation of human 
resources to monitor and report on the activities of fishing vessels. Albania as a contracting party 
of  the  General  Fisheries  Commission  for  the  Mediterranean  (GFCM)  is  fully  implementing 
fishing effort recommendations. Some progress was made on financial and budgetary provisions. 
Progress  was  however  limited  on  food  safety,  veterinary  and  phytosanitary  policy,  on  regional 
policy  and  coordination  of structural  instruments.  In this respect,  inter-agency  coordination for 
pre-accession assistance needs improvement, and issues need to be addressed as regards strategic 
planning, implementation and monitoring capacity of infrastructure projects under the Economic 
and Investment Plan.  

7 

 
 
Albania has reached a good level of preparation as regards external relations, foreign security 
and defence.  On the external relations chapter of negotiations, Albania made some progress as 
it  continued  alignment  of  legislation  in  the  field  of  dual  use  goods  and  to  implement  CEFTA 
additional  protocols.  As  regards  the  EU’s  Common  Foreign  and  Security  Policy,  Albania 
maintained full alignment with all relevant EU decisions and declarations, including with the EU 
restrictive  measures  following  Russia’s  unprovoked  aggression  against  Ukraine.  As  a  non-
permanent member since January 2022, Albania has been actively engaged in the UN Security 
Council in promoting and defending the rules-based international order. 

2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM  

2.1.1 Democracy 

In the new Assembly, resulting from the 2021 general elections, which were held following the 
cross-party agreement of 5 June 2020, the elected members from the largest opposition parties to 
parliament  took  their  seats  in  Parliament.  With  the  gradual  improvement  of  the  pandemic 
situation, parliament slowly returned to in-person meetings. As regards EU-related reforms, the 
Assembly reached cross-party consensus on constitutional amendments to extend the term of the 
judicial  vetting  bodies.  The  Assembly  also  elected  the  new  President  with  the  votes  of  the 
majority.  The  deep  division  within  the  largest  opposition  Democratic  Party,  dominated  the 
political environment and has hampered legislative work, such as furthering electoral reform.  

Elections 

On  February  2022,  the  Parliament  decided  to  set  up  an  ad  hoc  parliamentary  committee  on 
electoral reform, which is meant to follow-up on OSCE/ODIHR recommendations for the April 
2021 elections and had a term of six months. The committee was constituted on 17 June. At the 
expiry of its term in August 2022, it had only held its constitutive meeting.  

During the  reporting period,  the Constitutional Court ruled against a provision of the Electoral 
Code according to which electoral  subjects need to pass a national threshold of 1% in order to 
enter  parliament,  arguing  that  it  discriminates  against  independent  candidates.  Earlier,  the 
Constitutional  Court  had  ruled  to  abrogate  the  provision  related  to  the  distribution  of 
parliamentary seats in view of the preferential vote. The impending electoral reform will need to 
address these decisions. 

In line with ODIHR recommendations, the Central Election Commission has continued efforts to 
strengthen  its  oversight  role  over  campaign  financing.  In  addition,  the  CEC  has  initiated  high-
level discussions on the implementation of out-of-country vote. 

On 6 March 2022, Albania held by-elections in six municipalities. The President of the Republic 
decreed by-elections on 20 January, after a ruling of the Constitutional Court on the validity of 
the  2019  local  elections.  Vacancies  were  created  in  the  municipalities  of  Shkoder,  Vore  and 
Lushnje  after the mayors  were discharged, in  application of the law on the integrity of elected 
officials. In Durres and Diber the mayors had resigned, and in Rrogozhine the mayor had passed 
away. Eleven political parties registered to take part in the by-elections, fielding 19 candidates, 
out of which three were women. Electronic voting and counting was piloted in one municipality 
and  biometric  identification  of  voters  was  implemented  in  all  polling  stations.  The  ruling 
Socialist  Party  won  five  municipalities,  while  a  coalition  of  two  opposition  parties  won  the 

8 

 
 
remaining one. Two out of six mayors are women. No electoral subject contested the results. The 
newly elected mayors will be in office for nearly one year, as regularly scheduled local elections 
are expected to be held in 2023. 

Parliament 

The  new  Parliament  was  constituted  on  10  September  2021,  following  the  25  April  2021 
legislative  elections.  In  these  elections,  preferential  voting  was  implemented  for  the  first  time 
and  three  MPs  were  elected  through  this  mechanism.  Additionally,  three  party  leaders  won 
mandates  in  two  constituencies,  following  a  provision  of  the  Electoral  Code  allowing  party 
chairs  to  run  in  multiple  districts.  The  rule  has  been  criticised  by  OSCE/ODIHR  in  their  final 
report on the April 2021 elections. 

Out of 140 Members of Parliament, 50 are women (35%) and 47% of all MPs are elected for the 
first time. Thirty-three MPs are under 40 years old. 

In  the  new  legislature,  the  elected  MPs  from  the  largest  opposition  parties  took  their  seats  in 
contrast with the relinquishing of mandates that took place in 2019. Internal conflict within the 
largest opposition party (DP) affected parliamentary life, stalling notably the work on electoral 
reform.  This  has  also  weakened the role of the  Parliament in  exercising its main constitutional 
functions. Still, the Parliament found the necessary wide basis to pass a time-limited constitutional 
extension  of  the  mandate  of  the  vetting  bodies.  Important  committees  continue  to  be  chaired  by 
opposition MPs. 

Over the reporting period, the opposition sought the setting up of three inquiry committees, with 
two  of  them  being  approved.  Out  of  these  two,  the  one  dealing  with  the  incinerators  contracts 
brought its work to completion. 

Concerning its oversight function, MPs filed 21 requests for interpellations, out of which four 
with the Prime Minister who nonetheless did not attend in person. The parliamentary oversight 
of  the  work  of  independent  institutions  remains  limited  to  the  consideration  of  their  annual 
reports. 

Higher  ethical  standards  in  Assembly  proceedings  are  needed  to  foster  more  constructive 
political dialogue between opposition and majority. 

As regards Parliament’s role in the EU integration process, 9 of the laws passed in Parliament 
were aimed at alignment with the EU acquis. The National Council for European Integration has 
made efforts to further consolidate its role in EU integration issues. 

With  the  improvement  of  the  pandemic  situation,  the  Parliament  resumed  meetings  in  person. 
Parliamentary  proceedings  continued  to  be  livestreamed  on  social  media.  Under  the  new 
legislature, the Parliament has increased its efforts towards more transparency by offering more 
statistical  data  on  parliamentary  activity.  Parliament  held  consultations  with  civil  society  and 
media  on  transparency  standards,  which  need  to  be  adopted.  However,  the  publication  of 
parliamentary  documentation,  such  as  minutes  of  plenary  sessions  and  committee  meetings, 
should be more timely, and more user friendly. Public consultation with civil society and interest 
groups remained formal. 

On  4  June  2022,  Parliament  elected  Mr  Bajram  Begaj,  former  Chief  of  Defence,  as  the  new 
President of the Republic, without the support of the opposition, who refused to vote. Mr Begaj, 
the sole candidate, was elected on the fourth round by a simple majority vote, after the first three 

9 

 
 
rounds requiring a qualified majority of 3/5 of the MPs failed. Shortly before the Assembly vote, 
the incumbent President released Mr Begaj from the Armed Forces.  

Parliament also elected the incumbent Governor of the Bank of Albania for a second term, filled 
vacancies in the Audio-visual Media Authority (AMA) and in the steering board of the National 
Broadcaster despite considerable delays. Hearing sessions were held with the candidates for the 
position  of  the  Ombudsperson  but  the  vote  was  postponed  until  after  the  reporting  period. 
Parliament  also  elected  the  new  chair  of  the  Competition  Authority,  without  conducting  a 
hearing session with the candidate. 

Governance  

The Albanian government has continued to maintain overall focus on reforms on the country’s 
EU path, despite the challenge of addressing the economic and social consequences of the triple 
shock of the 2019 earthquake, the COVID-19 pandemic and, more recently, of Russia’s war of 
aggression against Ukraine. The government needs to continue, through its policy priorities and 
its  communication,  to  focus  firmly  on  advancing  the  EU  reform  agenda,  together  with  the 
opposition and all segments of society. When it comes to preparations for accession negotiations, 
there is a need to enhance communication, coordination, and expertise within the administration 
as well as EU compatibility checks of all draft legislation.  

The establishment or reinforcement of several government agencies around the Prime Minister’s 
Office  (Agency  for  co-governance,  Agency  for  Media  and  Information,  Agency  for  Strategic 
Programming  and  Aid  Coordination  -  SASPAC)  without  a  comprehensive  steering  framework 
and without a systematic attention to oversight and reporting lines, raises questions in relation to 
the effective coordination and service delivery of public administration bodies.  

Following  the  first  Intergovernmental  Conference  on  accession  negotiations  of  July  2022,  the 
government  appointed  a  new  Chief  Negotiator,  at  Minister  of  State  level  and  with  increased 
resources. In the context of accession negotiations, there is a need to achieve sound coordination 
among subordinated bodies and line ministries, enhance capacities of agencies working towards 
EU integration and  to  ensure the alignment of the National  Plan for European  Integration with 
sectoral  strategies.  The  EU  integration  structures  within  the  government  had  already  been 
substantially modified in October 2021, following the decision to set up a new agency for donor 
coordination,  the  State  Agency  for  Strategic  Programming  and  Assistance  Coordination 
(SASPAC).  The  head  of  this  new  agency  took  over  the  role  of  National  IPA  Coordinator,  a 
function hitherto directly fulfilled by the previous Chief Negotiator for Accession of Albania to 
the EU. Under the new set up, the political steer, the strategic planning and the coordination of 
EU-related matters are shared among the Ministry for Europe and Foreign Affairs, the Minister 
of State and Chief Negotiator, and SASPAC. As a new body, SASPAC needs to ensure a more 
systematic  coordination  on  EU  integration  and  EU  assistance  with  IPA  Units,  the  Central 
Finance and Contracts Unit (CFCU), and local government units. Strong cooperation as well as 
expertise  and  among  responsible  national  bodies  should  be  ensured  to  facilitate  the  successful 
implementation of the IPA programmes, including IPARD. 

In  2021,  progress  was  made  in  monitoring  the  execution  of  the  National  Plan  for  European 
Integration  and  the  new  plan  for  2022-2024  was  adopted  in  February  2022  and  is  being 
monitored on a weekly basis. In May 2022, the government decided to close all the front offices 
delivering  national  administrative  services  at  local  level  and  decided  to  move  towards  100% 

10 

 
 
online services at short notice. The rapid shift has raised, however, questions in terms of quality 
and accessibility in the transition.  

The  territorial  administrative  reform  needs  to  be  further  consolidated  as  part  of  the  wider 
decentralisation agenda.  During  the reporting period,  the annual  monitoring  report  for the  year 
2020  on  the  implementation  of  the  decentralisation  and  local  governance  strategy  has  been 
issued.  A  systemic  monitoring  and  the  related  mechanisms  need  to  be  ensured.  The  new 
decentralisation strategy beyond 2022, remains to be adopted. Consultation at local level, during 
its elaboration, will be essential for the strategy to capture and address the priority needs. 

In  February  2022,  the  Parliament  decided  to  set  up  an  ad  hoc  committee  on  the  territorial  and 
administrative divisions in the country, the term of which ran until 30 September.  

Local  government  units  (LGUs)  still  lack  sufficient  financial  resources  and  administrative 
capacity  to  exercise  their  greater  policy  making  powers  effectively.  Women  representation  in 
local government continues to require improvement. The LGUs’ fiscal autonomy remains at risk, 
as most of their budget is dependent on national transfers. The delivery of quality public services 
at local level remains limited. The financial situation of municipalities has been made ever more 
complicated by the economic shocks, with further shrinking own resources available to LGUs. 

Implementation of the Civil Service Law remains to be improved at the local level.  Temporary 
employment  contracts  for  civil  service  positions,  although  decreasing,  continue  to  be  rather 
frequent in the LGUs.  

Despite  the  COVID-19  pandemic,  municipalities  have  encouraged  public  participation  in  their 
decision-making, by organising online Council meetings open to the public and other innovative 
means.  However,  the  institutional  framework  for  effective  and  inclusive  participation  needs 
further strengthening. On transparency, some improvement has been noted, as all municipalities 
are now publishing online their Council’s decisions. As regards the transparency programme to 
be adopted by each municipality, shortcomings have been identified regarding the publication of 
mandatory information in its rubrics.  

The Consultative Council continues to operate as the main forum for institutional dialogue and 
coordination between central and local governments. The network of EU local coordinators has 
strengthened the  LGUs’  involvement in  the EU  accession process.  However, the  frequent  staff 
turnover  in  the  EU  municipal  units  endangers  their  ability  to  perform.  Co-  and  pre-financing 
issues persist at  local  level,  despite the creation of a fund of 200 million  Albanian  LEK in  the 
state  budget  for  2022.  Complex  procedures  for  opening  dedicated  bank  accounts  as  well  as 
receive  VAT  refund  also  represent  serious  obstacles  to  Albanian  municipalities  accessing 
funding from the Instrument for Pre-Accession (IPA).   

On  territorial  planning,  the  need  to  revise  local  plans  to  account  in  particular  for  civil 
protection elements remains. Coordination of the national sectoral strategies with local plans is 
weak. 

Civil society 

The implementation of the new Law on registration of Non-Profit Organisations adopted in June 
2021 has not started yet. The High Judicial Council received a budget allocation to procure the 
electronic register of Non-Profit Organisations and concluded a contract  for its implementation 
in May 2022. There has been no progress in the implementation of the roadmap on an enabling 

11 

 
 
environment  for  civil  society,  notably  as  regards  the  law  on  voluntarism.  The  institutionalised 
cooperation  between  civil  society  and  the  Government  still  needs  to  be  strengthened  to  ensure 
meaningful  participation  of  Civil  Society  Organisations  (CSOs)  in  decision-making  processes, 
including in the context of the EU accession negotiations. Progress, albeit limited, has been made 
in the field of VAT refund. 

An empowered civil society is a key component of any democratic system and continues to be 
recognised as such by the State institutions.  

Albania’s legal and regulatory framework on the right to freedom of assembly and association is 
generally  in  line  with  international  standards.  Restrictions  related  to  the  COVID-19  pandemic 
that brought limitations to the freedom of assembly were waived in early 2022. The new Law on 
Registration  of  Non-Profit  Organisations  adopted  in  June  2021  is  expected  to  ease  the 
registration process and enhance transparency, but its implementation has not started yet. It also 
aims at fulfilling the FATF Action Plan (see Chapter 24 – Justice, Freedom and Security). The 
establishment  of  a  national  electronic  register  under  the  responsibility  of  the  High  Judicial 
Council, foreseen under the new law, is due by end of 2023.The High Judicial Council has now 
received  a  budget  allocation  to  procure  the  electronic  register  and  concluded  a  contract  for  its 
implementation in May. In the meantime, CSOs continue to register as per the old law of 2001 
and its lengthy registration process.   

There has been no progress in the implementation of the roadmap on an enabling environment 
for  civil  society.  It  remains  strongly  dependent  on  donor  support.  Additional  efforts  and 
resources are required to advance its implementation. No progress has been made regarding the 
law  on  voluntarism  listed  as  one  issue  to  be  addressed  under  the  roadmap.  The  monitoring 
mechanism of the roadmap is not fully functioning.  

While 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, 
consultations often remain formal rather than meaningful exercises. In addition, the scope of the 
law still needs to be extended to government decisions (see also Public Administration reform).  

The  ability  of  the  National  Council  for  Civil  Society  to  voice  priorities  of  CSOs  in  policy-
making processes remains weak. 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 Agency for the Support of Civil Society remains the main public body providing financial 
support for civil society. Its budget is now back at pre-COVID levels, but public funding remains 
insufficient to sustain CSOs’ activities, in particular in social services. 

Limited  progress  has  been  made  in  the  field  of  VAT  refund,  with  the  implementation  of  the 
instructions on VAT reimbursement for CSO beneficiaries of EU funding and other donor grants. 
There is now evidence of the first cases of successful VAT refund. However, the process remains 
lengthy and cumbersome. Improvements are needed for a more efficient implementation of VAT 
reimbursement.  

There  is  still  no  progress  as  regards  tax  incentives  for  corporate  donations  as  these  do  not 
promote company donations to CSOs and as there are no tax incentives for individual donations. 

12 

 
 
 
2.1.2. Public Administration Reform  

Albania  remains  moderately  prepared  in  the  area  of  public  administration  reform.  It  made 
limited  progress  in  delivering  on  last  year’s  recommendations.  Capacities  for  public 
consultations  and  regulatory  impact  assessments  were  strengthened,  preparations  for  the  salary 
reform  started,  and  the  automated  payroll  system  was  expanded.  Implementation  of  the  2015-
2022  public  administration  reform  and  the  2014-2022  public  financial  management  reform 
strategies  continued.  However,  bodies  subordinate  to  ministries  (agencies)  continued  to  be 
created without a comprehensive steering framework, systematic attention to oversight or clear 
reporting lines. They also further exacerbated the issue of tasks entrusted to staff hired under the 
Labour  Code,  instead  of  to  civil  servants.  Provisions  on  merit-based  recruitment  in  the  civil 
service  law  remain  to  be  fully  implemented,  especially  for  senior  level  positions.  Albania  has 
rolled  out  a  comprehensive  platform  for  digital  services  –  a  rapid  shift  towards  100%  online 
services  took  effect  on  1  May  2022.  However,  it  needs  to  ensure  equitable  access  for  citizens 
with limited digital skills.  

The  Commission’s  2021  recommendations  remain  mostly  valid.  In  the  coming  year,  Albania 
should, in particular:  

  increase  the  capacities  for  policy  planning  and  monitoring  and  ensure  that  the  central 
administration’s supervisory and subordinated bodies are well-structured and assigned clear 
roles;  

  prepare  new  public  administration  and  public  financial  management  strategies  in  line  with 
while 

strategies, 

same 

time 

at 
relevant 
the effectiveness of the current monitoring structures; 

sectoral 

the 

review                                                                                   

  effectively implement the provisions on merit-based recruitment in the civil service law at all 
levels,  especially  at  senior  level;  reform  the  salary  system  for  civil  servants  and  further 
expand the automation of the payroll system.  

Strategic framework for public administration reform  

Throughout  2021,  the  government  continued  to  monitor  the  implementation  of  the  2015-2022 
public  administration  reform  strategy  and  the  2014-2022  public  financial  management 
reform strategy. Despite the COVID-19 crisis, the Albanian institutions made substantial efforts 
to  maintain  a  good  implementation  of  the  public  administration  reform  strategy.  Progress  has 
been  achieved  in  results-oriented  monitoring,  including  performance  analysis.  However,  the 
implementation  of  the  public  administration  reforms  requires  a  continued  political  steer. 
Financial  sustainability  needs  to  be  improved  through  better  reviewing  of  overall  financial 
resources,  as  currently,  the  reform  implementation  depends  heavily  on  funding  from  external 
donors. 

Policy development and coordination  

The  legal  basis  and  the  institutional  set-up  for  coherent  policy  making  system  are  partially  in 
place. The quality of performance and the regularity of the integrated policy management groups 
mechanism vary across sectors. Albania should strengthen its efforts to improve evidence-based 
policy making by  increasing  the administrative capacities of line ministries  in policy planning, 

13 

 
 
monitoring,  and  data  collection.  The  three  pillars  of  the  integrated  planning  system3  must 
become  fully  functional  and  the  user  training  for  civil  servants  must  continue,  in  particular  on 
data quality and indicators.  

The National Strategy for Development and Integration, which is the top reference document for 
the planning system, expired in 2020. The new strategy, covering the period up to 2028, needs to 
be drafted and adopted. The authorities need to improve coherence between policy planning and 
budgeting by making full use of the Integrated Planning System Information System. The newly 
created  state  Agency  for  Strategic  Programming  and  Aid  Coordination  has  the  mandate  to 
enhance  coordination.  However,  the  roles  and  responsibilities  of  the  Agency  and  the 
Department  for  Policies  and  Good  Governance  in  the  Prime  Minster’s  Office  need  to  be 
clarified. Further efforts are needed to improve the administrative capacity of line ministries and 
the Prime Minister’s Office. (See Chapter 32 -  Financial control). The Prime Minister’s Office 
rulebook still needs to be adopted.  

The  administration  needs  to  further  strengthen  its  capacity  in  inclusive  and  evidence-based 
policy and legislative development. Progress was achieved in increasing the use and quality of 
regulatory  impact  assessments  for  legislative  proposals  and  trainings  on  these  issues  were 
delivered  across  the  administration.  The  government  needs  to  continue  its  efforts  to  improve 
regulatory impact assessments. 

On public consultation, the electronic web-portal is operational, and the regulatory framework 
has  been  improved.  The  usage  of  the  electronic  register  continued,  but  the  share  of  legal  acts 
undergoing public consultation and usage of the electronic register decreased in 2021 to 65.8% 
from  79.6%  in  the  previous  year.  The  quality  control  of  public  consultations  needs  to  be 
strengthened to focus on content rather than on process.  

Public scrutiny of government work needs to be further improved. Parliamentary oversight 
of  government  performance,  including  sub-ordinated  agencies,  needs  to  be  strengthened. 
Regulatory  and  institutional  monitoring,  and  the  reporting  framework  for  government 
performance  continue  to  be  fragmented.  Communication  to  citizens  about  ongoing  reforms 
efforts  needs  to  be  improved.  The  harmonisation  of  reporting  practice  requires  the  Integrated 
Planning System Information System to be fully rolled out.  

Public financial management  

The  Ministry  of  Finance  and  Economy  is  in  charge  of  the  public  financial  management 
reform.  Several  posts,  including  at  management  level,  remain  unfilled  in  the  Ministry.  The 
2019-2022 public financial management strategy is expiring, and the government needs to draft 
and  adopt  a  new  programme.  The  new  reform  programme  should  be  developed  following  a 
detailed  analysis  of  the  implementation  of  the  current  strategy  and  after  conducting  extensive 
public  consultations.  The  finalisation  and  publication  of  the  2021  report  on  public  financial 
management monitoring report was delayed.  

During the reporting period, the 2022-2024 medium-term budget programme was adopted, based 
on  the  newly  developed  Albanian  financial  management  information  system.  The  2022  budget 
and  the  execution  of  the  2021  budget  were  in  line  with  the  revised  organic  budget  law. 
Integration of the e-procurement and treasury system made progress on improving commitment 

3 These are: the Integrated Planning System Information System, the Albanian Financial Management Information 
System, and the External Assistance Management Information System. 

14 

 
 
                                                           
checks.  Consultation  on  the  medium-term  revenue  strategy  was  launched  in  January  2022,  but 
the final version has not yet been produced.  

Budget  transparency  remains  satisfactory  with  the  publication  of  all  key  budget  documents, 
which  allows  for  sufficient  public  debate.  More  timely  publication  of  the  budget  execution 
reports  and  the  audit  report,  in  particular  reporting  on  arrears,  is  needed.  Albania  further 
strengthened  its  capacity  for  gender-responsive  budgeting,  based  on  a  legal  obligation  to  this 
effect in the central and local government finance management cycle.  

Public service and human resources management  

Progress  on  merit-based  recruitment,  promotion  and  dismissal  needs  to  be  consolidated  by 
applying consistent standards across the public administration.  

Greater  legal  compliance  is  needed  in  recruitment  procedures.  The  merit  principle  needs  to  be 
complied  with  both  for  senior  and  entry  level  positions.  Across  the  public  administration,  job 
descriptions are not yet fully in line with the categories set out in the civil service law.  

In 2021, the number of dismissals of civil servants decreased to 346 from 619 in 2020 and the 
authorities  explained  that  these  were  in  compliance  with  the  civil  service  law.  The  backlog  in 
implementing court decisions confirming dismissal of civil servants as unlawful has been further 
reduced during the reporting period. A system to monitor and follow up the final court decisions 
has been created and is managed by the Department of Public Administration. 

The  human  resources  management  information  system  continues  to  be  filled  with  the 
necessary data, although at a slow pace. It does not yet cover the entire public sector, does not 
include completely up-to-date data on civil servants and it still needs to be extended to the local 
level. The data it contains on civil servants needs to be up-to-date. The government has managed 
to put in place measures to create a coordination mechanism between central and local level to 
monitor and evaluate human resource management.  

The  remuneration  system  is  based  on  a  job  classification  system  that  needs  to  be  revised 
including with a broad public consultation. The lack of a salary policy based on clear criteria for 
pay  supplements  and  salary  increases  weakens  the  fairness  and  coherence  of  the  system.  The 
automation of the payroll system through the human resources management information system 
needs to be extended to the whole public sector.  

The  Albanian  School  of  Public  Administration  continued  to  adapt  its  training  programmes  for 
professional development in line with the COVID-19 measures. Compared to the previous year, 
it increased the thematic scope and the number of trained public servants. However, the lack of 
infrastructure  hinders  its  capacity  to  deliver  online  courses.  A  training  cycle  on  quality 
management has not yet been set up. The administrative skills of local-level civil servants need 
to be improved.  

Accountability of the administration  

The  legal  framework  for  the  organisation  of  the  central  administration  does  not  provide  a 
comprehensive and coherent framework to ensure that supervisory and subordinated bodies are 
held accountable. Agencies such as the State Agency for Strategic Programming and Assistance 
Coordination, the Agency for Media and Information and the Co-Governance Agency need to be 
better  structured  and  assigned  clear  roles.  The  law  on  the  organisation  and  functioning  of  the 
state  administration  does  not  set  a  clear  typology  and  criteria  for  the  creation  of  subordinated 

15 

 
 
bodies. Additionally, policy-making institutions do not always monitor policy implementation by 
their subordinated agencies and these agencies do not always report on their performance.  

Legal changes are needed to improve how policy-making functions are defined, including setting 
requirements  for  planning  and  performance  reporting  by  subordinated  bodies  and  supervisory 
ministries.  State  administration  workflow  and  decision-making  processes  should  be  more 
transparent. The legal framework for ensuring managerial accountability needs to be improved. 

The citizens’ right to good administration needs to be strengthened. The implementation rate 
of the Ombudsman’s recommendations fell to 50% in 2021, from 55% in 2020 and 62% in 2019. 
The Assembly should strengthen its cooperation with the Ombudsman and address the problem 
of  the  lack  of  responsiveness  of  public  administration  bodies.  In  December  2021,  a  public 
consultation  was  launched  to  amend  the  law  on  the  right  to  information,  which  regulates 
citizens’ right to access public information. An increasing number of public authorities have 
adopted and published transparency programmes (300 in 2021, up from 239 in 2020).  

A legislative framework is in place for the right to administrative justice. The capacity of the 
administrative court system and the appeal panels to deal with cases is limited, which led to an 
increased  backlog  in  2021.  Legislation  is  in  place  to  protect  the  right  of  citizens  to  seek 
compensation and is applied in practice in judicial cases. However, there is no mechanism for 
regular monitoring and analysis of the administrative and judicial practice in such matters, and 
the government does not gather data on payments made in public liability cases and reasons for 
them. 

In November 2021, Parliament adopted the law on co-governance, thus giving substantial powers 
to  the  Agency  for  Dialogue  and  Co-governance,  which  previously  administered  an  online 
platform  for  citizens’  complaint.  The  agency  reports  directly  to  the  Prime  Minister.  It  can 
conduct 
institutions,  based  on  citizens’  complaints,  and  apply 
administrative sanctions or propose disciplinary measures. This reform has raised concerns about 
(i) the agency’s impact on policy planning and coordination, (ii) the impact of the new law on the 
code of administrative procedures, (iii) the agency’s impact on the separation of powers between 
the executive branch and the judiciary. 

inspections  on  public 

Service delivery to citizens and businesses  

The institutional and legal frameworks for public service delivery are in place to ensure a user-
oriented public administration. In 2021, the number of one-stop-shops and e-services, even if 
at  different  levels  of  automation,  continued  to  increase,  and  information  to  citizens  on  public 
services became more accessible. The new e-government law is in public consultation. On 1 May 
2022,  the  government  decided  at  short  notice  to  close  the  ‘front  desks’  delivering  national 
administrative  services  at  local  level,  with  a  view  to  moving  towards  putting  100%  of  service 
online, with the declared aim of improving service delivery and reducing corruption. The rapid 
shift  has  raised  questions  about  the  quality  and  accessibility  of  service  to  citizens  with  limited 
digital skills. Some business associations have reported technical difficulties, in particular when 
submitting mandatory files.  

The  Code  of  Administrative  Procedures  provides  the  legislative  framework  for  simplifying 
administrative  procedures  in  line  with  international  standards.  The  process  of  legal 
harmonisation with the Code must be completed.  

16 

 
 
 
2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS  

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  effective 
(independent, high quality and efficient) judicial system and an effective fight against corruption 
are of paramount importance, as is the respect for fundamental rights in law and in practice.  

Albania has some level of preparation/is moderately prepared in implementing the EU acquis 
and European standards in the area of the judiciary and fundamental rights. Good progress was 
made,  in  particular  through  continued  implementation  and  consolidation  of  the  comprehensive 
justice reform. There have been two additional appointments to the Constitutional Court, which 
further  enhance  the  court’s  ability  to  perform  its  mandate.  The  High  Court  has  increased  its 
efficiency with the appointment of six additional judges, and has started to reduce its backlog of 
cases and to unify the case-law. The vetting process for judicial appointments has continued to 
advance  steadily.  Operational  efforts  to  fight  corruption  are  delivering  some  results,  including 
criminal procedings and financial investigations in several high-level cases, which resulted in a 
few final convictions. These efforts need to continue and intensify. On fundamental rights, there 
was  some  progress  in  a  number  of  areas,  but  efforts  to  implement  policies  should  continue. 
Faster  progress  should  be  made  on  the  first  registration  of  properties  and  other  transitional 
processes.  Albania  has  adopted  another  piece  of  implementing  legislation  related  to  the  2017 
framework  law  on  the  protection  of  persons  belonging  to  national  minorities;  the  remaining 
implementing legislation needs to be adopted not least to ensure self-identification. On personal 
data protection, Albania should take measures to prevent the recurrence of massive breaches of 
personal data and accelerate efforts to align its legislation with the EU  acquis on personal data 
protection.  

Functioning of the judiciary 

Albania is moderately prepared on the functioning of the judiciary. Good progress was made, 
with the continued implementation of justice reform. A time-limited constitutional extension of 
the term in office of the vetting bodies was adopted, thus ensuring uninterrupted and consistent 
continuation of the vetting process. To date, 64 % of the vetting dossiers processed have resulted 
in  dismissals,  resignations  or  termination  of  mandate  of  vetted  magistrates.  Following  new 
appointments of judges, the High Court has reduced the backlog of cases for the first time in six 
years  and  reached  the  quorum  to  make  appointments  of  judges  to  the  Constitutional  Court, 
proceeding  with  one  such  appointment.  The  Specialised  Structure  for  Anti-Corruption  and 
Organised  Crime  (SPAK)  Court  delivered  several  important  decisions  pertaining  to  high-level 
officials,  including  a  former  Minister  of  the  Interior  and  a  former  Prosecutor  General.  Limited 
progress  was  made  on  the  recommendation  to  improve  the  case  management  system  and  the 
legal  training  system,  which  has  been  pending  for  some  years.  The  efficiency  of  the  judicial 
system is negatively affected by the length of proceedings, the low clearance rate and the large 
backlog of cases. 

Recommendations for the coming year: 

  further  advance  the  process  of  re-evaluating  judges  and  prosecutors  (vetting)  and,  where 
possible, increase the pace of procedures with due regards to the quality of the process;  

  consolidate efforts to  enhance the efficiency  and transparency  of all courts and prosecution 
offices,  including  through  fast  and  decisive  action  to  set  up  a  modern  Integrated  Case 

17 

 
 
Management System and with the rollout of a solid implementation plan for the new judicial 
map;  

  continue to consolidate the capacity of the judicial system and its self-governing institutions, 

while making quality and efficiency improvements at the School of Magistrates.   

The comprehensive transitional re-evaluation (vetting) of all judges and prosecutors continued to 
advance at a steady pace. The International Monitoring Operation, deployed under the  aegis of 
the European Commission, continued to exercise independent oversight.  

By 12 September 2022  the vetting institutions had completed 554 vetting cases at first instance. 
Of these, 405 decisions are final. Overall, around 64 % of the vetting dossiers processed so far 
have  resulted  in  dismissal  or  termination  due  to  resignations  by  the  assessees  or  reaching  the 
retirement  age.  The  outcome  of  decisions  of  the  first-instance  vetting  body,  the  Independent 
Qualifications Commission and, where applicable, of Appeal Chamber decisions, is as follows: 
228 dismissals, mostly for issues relating to unjustified assets; 195 confirmations in office; 128 
decisions on termination of the vetting proceedings; and three decisions to suspend the assessees. 
The Independent Qualification Commission  has formally initiated investigations in all pending 
vetting cases. The International Monitoring Operation has continued to perform its oversight role 
in  the  vetting  process  and  has  issued  opinions  on  first-instance  assessments,  including  23 
recommendations for appeal, and five dissenting or concurring opinions after the final decisions. 
The vetting institution of Public Commissioners has followed all recommendations for appeal. 

In  the  same  period,  the  Appeal  Chamber  delivered  157  decisions  and  registered  291  cases.  Of 
these, 67 were appealed by the Public Commissioner, 227 by the assessees themselves, and three 
cases were appealed by both the assessees and the Public Commissioner. Overall, there are 134 
pending  vetting  cases.  However,  6048  cases  were  registered  and  treated  based  on  information 
from the public. 

The  vetting  institutions  are  expected  to  continue  to  refer  cases  to  prosecution  services  where 
there are indications of criminal offences. By 12 September 2022, 30 files had been submitted to 
the  Special  Prosecution  Office,  including  12  cases  involving  former  judges  of  the  High  Court 
and  the  Constitutional  Court.  Of  these,  two  investigations  have  resulted  in  convictions,  the 
remaining being either pending or were discontinued. 

Strategic documents 

The new cross-sector justice strategy and its action plan for 2021-2025 have been adopted by the 
Council  of  Ministers  and  need  to  be  implemented  effectively.  The  Ministry  of  Justice  has 
strengthened its internal  capacities to  collect  and report data.  The Sectoral  Steering Committee 
for  Justice  Reform  operates  at  the  technical  level  through  two  thematic  groups.  Further 
improvement of coordination between the justice institutions remains necessary.  

New specialised bodies 

The  Specialised  Structure  for  Anti-Corruption  and  Organised  Crime  (SPAK),  comprising  the 
Special  Prosecution  Office  (SPO)  and  the  National  Bureau  of  Investigation  (NBI)  is  now 
operational.  In  a  context  of  workload  increase,  staff  shortages  has  been  one  of  SPAK’s  main 
challenges. The SPO has 17 prosecutors in place, and a budget allowing for 20. The recruitment 
of eight financial investigators is underway and a media coordinator took up duty in September 
2021. Following a second round of recruitment, the NBI reached its full operational capacity of 

18 

 
 
60  investigators  in  June.  As  provided  by  law,  an  International  Commission  consisiting  of  two 
criminal  justice  experts  nominated  by  the  EU  and  two  by  the  US  government,  continued  to 
monitor the development of the NBI.  

Management bodies 

The  judiciary  self-governing  institutions  have  continued  to  fully  exercise  their  functions.  The 
High  Judicial  Council  (HJC)  and  High  Prosecutorial  Council  (HPC)  partially  renewed  their 
membership,  including  both  magistrates  and  lay  members.  Parliament  and  lay  member 
appointing  bodies  should  ensure  greater  competition  and  transparency  in  the  appointment 
process. Two vacancies for non-magistrate members remain open at the HPC.  

The HJC advanced with the appointments of judges to vacant positions and continued to approve 
a  significant  amount  of  pieces  of  secondary  legislation  regulating  the  activities  of  the  judicial 
system  and  courts.  The  HPC  has  continued  to  promote  district  prosecutors.  The  HPC  needs  to 
ensure  the  implementation  of  rules  for  the  promotion  and  evaluation  of  prosecutors.  The  HPC 
should  ensure  close  cooperation  with  the  General  Prosecution  Office  in  view  of  correctly 
implementing  the  legal  framework  in  place.  This  increased  cooperation  would  be  of  particular 
importance when evaluating and promoting prosecutors. 

Independence and impartiality 

The  2016  justice  reform  created  the  legal  and  institutional  framework  to  guarantee  the 
independence and impartiality of magistrates. The independence of the judiciary is guaranteed by 
the  Constitution.  However,  concerns  continued  to  be  raised  about  alleged  attempts  to  interfere 
and exert pressure on the judicial system. The training of magistrates should remain focused on 
integrity and judge-craft.  More work to  raise awareness  on integrity  and  judicial independence 
should take place at all levels. Legal provisions are in place to guarantee independent procedures 
to appoint, promote, evaluate and dismiss judges and prosecutors, and to ensure that is possible 
to  appeal  all  related  decisions.  The  remuneration  of  judges  and  prosecutors  meets  the  highest 
public salary standards for the country. However, the lack of transparent procedures to promote 
prosecutors remains a priority issue.  

The rollout of a modern Integrated Case Management System has been pending for many years 
and is necessary to improve the efficiency and transparency of the justice system. Since several 
courts  have  very  few  judges  and  the  Integrated  Case  Management  System  is  not  used,  the 
random allocation of cases is not widely applied.  

It  is  a  criminal  offence  to  exert  undue  influence  over  a  judge  or  a  prosecutor.  However,  in 
practice there have been no reports from judges or prosecutors of such attempts. No measure has 
been taken against public officials or politicians waging accusations against magistrates, but to 
address them the independent institutions governing the justice system have proactively reacted 
against such public accusations, classifying them as undue influence and pressure.  

Accountability 

The  High  Justice  Inspector  (HJI)  continued  to  be  fully  operational,  initiating  and  conducting 
disciplinary investigations against magistrates. The HJI continued to be understaffed and could 
not reduce the accumulated backlog, despite the allocation of additional staff and premises, and 
an  increased  budget.  The  recruitment  of  additional  inspectors  and  improvement  of  HJS’s 
capacity  remain  necessary.  During  the  reporting  period,  the  HJI  received  1  257  complaints.  It 

19 

 
 
processed  4  124  complaints  in  total  and  started  22  investigations,  of  which  17  resulted  in 
disciplinary proceedings.  

The  HJC  budget  has  been  gradually  increased,  and  all  minutes  of  meetings  and  decisions  are 
being made public. Outreach to the media and distribution of materials to the public need to be 
stepped up to proactively inform people about the HJC’s activities.  

The  HJC  made  progress  in  evaluating  judges  at  all  levels.  Evaluations  are  now  conducted 
regularly,  and  the  backlog  of  evaluations  is  being  steadily  reduced.  The  HJC  suspended  one 
judge based on HJI investigations. The HPC should swiftly finalise all the necessary secondary 
legislation for evaluating prosecutors. Most HJI requests to dismiss prosecutors were rejected by 
the HPC in 2021. Close cooperation between the institutions governing the justice system should 
continue.  The  HJC  and  HPC  held  their  first  joint  meeting  during  the  reporting  period. 
Coordination on a regular basis is needed.  

The  HJC  adopted  three  strategic  documents  on  the  administrative  investigation  of  whistle-
blowers  and  the  review  of  corruption  cases  within  the  HJC.  The  HPC,  HJC  and  HJI  regularly 
published their decisions and the minutes of their plenary meetings.  

Professionalism and competence 

The  system  for  recruiting,  selecting,  appointing,  transferring,  and  dismissing  judges  and 
prosecutors is managed exclusively by the self-governing institutions of the judiciary. Continued 
implementation of judicial reform further reduced political influence throughout the appointment 
process, thus ensuring a merit-based career system.  

Two  new  judges  were  appointed  to  the  Constitutional  Court  in  March  and  September  2022, 
bringing the current number of judges in office to eight out of nine, five of whom are women. 
The appointment process for the remaining Constitutional Court position is underway. The legal 
provisions  in  place  define  the  criteria  to  become  a  judge  of  the  Constitutional  Court.  The 
evaluation  process,  including  the  ranking  of  candidates  needs  to  be  more  transparent  and  take 
into account the Venice Commission recommendations. 

The number of judges at the High Court increased to 15, with six new judges appointed during 
the  reporting  period.  The  High  Court  can  now  work  in  three  chambers  and  adjudicate  all 
categories of cases. It also reached the quorum to make appointments to the Constitutional Court. 
It  started  to  reduce  its  backlog  of  cases.  However,  this  backlog  remains  very  high,  and  more 
judges and legal advisers are necessary to help reduce it further.  

Quality of justice 

The  quality  of  the  initial  and  continuous  training  at  the  School  of  Magistrates  (SoM)  requires 
improvement and a further increase in the cohorts of students, and therefore graduates, is needed 
in  light  of  the  continued  dismissals  arising  from  the  vetting  process.  The  HPC  and  HJC,  in 
cooperation with the SoM, approved the training calendar for the 2022-2023 academic year. For 
the 2022-2023 academic year, the intake of new students only increased by 20 people compared 
with the previous term, which seems insufficient in the light of the number of judicial vacancies. 
The SoM needs to intensify its efforts to strengthen its academic staff and to ensure competitive 
and transparent recruitment procedures. The periodic evaluation of judges and prosecutors takes 
into  account  the  continuous  training  of  judges  and  prosecutors  and  includes  assessments 
provided by the SoM. The continuous training should improve its methodology and focus more 
on daily needs as well as on case studies for judges and prosecutors. On the other hand, the initial 

20 

 
 
training  requires  a  substantial  revision,  consistent  with  the  objective  of  training  specialised 
judges in various field of law, while enhancing its practical focus, notably with courses on legal 
writing  and  reasoning.  The  total  budget  allocated  to  training  initiatives  at  the  SoM  in  2021 
amounted  to  EUR  2,101,845,  an  increase  of  27%  compared  with  the  previous  year.  The  SoM 
needs to  coordinate  assistance from donors  and  CSOs  more proactively.  As  an observer of the 
European Judicial Training Network (EJTN) it should benefit more proactively from the EJTNs 
activities and the expertise within the network. 

Albania  had  307  full-time  judge  positions  (10.8  per  100,000  inhabitants)  and  300  full-time 
prosecutor  positions  (10.5  per  100,000  inhabitants)  in  2021.  According  to  the  European 
Commission for the Efficiency of Justice (CEPEJ), the European averages are 21 judges and 12 
prosecutors per 100,000 inhabitants. The 2021 budgetary allocation for the judicial system was 
about  EUR  40 million. This  amounts to  EUR  14.5 per inhabitant.  Court infrastructure  remains 
poor  overall  and  future  budget  allocations  need  to  address  with  greater  determination  the 
pressing needs of the judicial institutions. 

Court activity is monitored through quarterly reporting of the courts and data is made public in 
the annual reports of the HPC and HJC.  

Alternative  dispute  resolution  continues  to  be  limited  and  needs  to  be  further  reinforced. 
Awareness of the citizens about the alternative dispute resolution service is low and needs to be 
improved.  

Efficiency 

The  length  of  proceedings,  the  low  clearance  rate  and  the  high  number  of  unresolved  cases 
continue to affect the efficiency of the judicial system.  

Appeal  courts  continue  to  have  a  high  number  of  inherited  cases  and  are  affected  by  the  high 
number of judicial vacancies, with only 30 out of 78 appeal judges in office. Albania adopted a 
new judicial map as per the legal requirements, following a consultation process and the support 
from  international  experts,  including  through  EU  funding.  The  new  judicial  map  aims  to  re-
distribute the backlog among the courts more fairly by reallocating judges and courts to the areas 
with the greatest backlog. In addition, it intends to create the possibility for more specialisation 
of judges in specific areas of law in order to improve quality. A solid implementation plan for the 
new  judicial  map  will  be  needed.  The  average  length  for  a  case  at  appeal  level  is  893  days. 
However, at the Tirana Appeal Court, the average length for a criminal case is 5 820 days.  

The  courts  with  the  highest  backlog  are  the  High  Court,  the  Tirana  District  Court  and  the 
Administrative Court of Appeal. The latter has 18 415 cases, of which 9 938 are older than two 
years. The High Court has the highest backlog with over 35 822 cases, of which 27 843 are older 
than  two  years  (77%).  However,  following  the  new  appointments  to  the  High  Court,  the 
clearance  rate  has  increased  considerably  to  117%  for  criminal  cases  and  193%  for 
administrative cases. The recruitment of new administrative and legal experts, the improvement 
of working methods and the increase of communication and transparency remain key tasks. 

Further efforts are required to improve the collection and reporting of judicial statistical data. It 
is  urgent  to  set  up  a  new  Integrated  Case  Management  System  through  determined  policy, 
planning and budgetary efforts, and ensure its inter-operability across the entire justice system, in 
line with CEPEJ methodology.  

21 

 
 
Progress continued by the HJC on the measurement of court efficiency through the adoption of 
the  necessary  regulation  and  statistical  charts  for  the  evaluation  of  the  performance  of 
magistrates based on CEPEJ indicators. The HJC approved new rules for satisfaction surveys as 
a means to monitor the performance in all courts. More rules and indicators on efficiency should 
be promptly approved by the HJC.  

There are 18 cases pending before the Council of Europe Committee of Ministers for supervision 
of execution of final judgments of the European Court of Human Rights. 

Despite  COVID-19,  all  institutions  proceeded  with  their  regular  work,  including  improving  IT 
tools to hold online meetings. In 2021, COVID-19 did not affect court proceedings, and hearing 
were held in camera during all the reporting period.  

Fight against corruption 

Albania has some level of preparation in the fight against corruption. Despite some progress, 
increased efforts and political commitment in fighting corruption, it remains an area of serious 
concern.  Overall,  corruption  is  prevalent  in  many  areas  of  public  and  business  life.  The 
Specialised  Anti-Corruption  and  Organised  Crime  Structure  (SPAK)  conducted  criminal 
proceedings  and  financial  investigations  in  several  high-level  cases.  Some  final  convictions  of 
high-ranking  state  officials  have  been  pronounced.  The  vetting  of  members  of  the  judiciary 
continues  to  bring  results  in  the  fight  against  corruption  within  the  judiciary.  A  new  General 
Anti-Corruption Directorate was created at the Ministry of Justice to improve coordination at the 
central  level;  its  efficiency  remains  to  be  demonstrated.  Increasing  the  number  of  final 
convictions  of  high-level  officials  remains  an  important  priority  to  further  tackle  a  culture  of 
impunity. Sectors most vulnerable to corruption require targeted risk assessments and dedicated 
actions. Since the 2021 recommendations were only partially implemented, these remain valid. 

In the coming year, the country should in particular: 

  further progress towards establishing a solid track-record of investigations, prosecution, and 
adjudication  of  corruption  cases,  and  seizure  and  confiscation/recovery  of  criminal  assets 
resulting from corruption-related offences; 

  ensure  that  the  Specialised  Structure  for  Anti-Corruption  and  Organised  Crime  (SPAK) 
further  addresses  high-level  corruption,  enhances  its  staff  and  resources,  as  well  as  its 
coordination with law enforcement, prosecutorial and judicial entities in charge of corruption 
prevention;  

  ensure that criminal proceedings are consistently and systematically  initiated against judges 

and prosecutors accused of criminal conduct during the re-evaluation process; 

  effectively address the recommendations of the Council of Europe’s Group of States against 
action  plan;  adopt 

Corruption 
integrity/prevention of corruption plans within all line ministries and State authorities. 

(GRECO)  and 

implement 

related 

timely 

the 

Track record 

Efforts  continued  on  improving  the  track  record  of  investigations,  prosecutions  and 
convictions in the fight against corruption. However,  greater political will and more structured 
and  consistent  efforts,  including  adequate  resources,  tools  and  skills,  remain  necessary.  The 
number of corruption cases sent to court was 440 in 2021, including 31  cases sent by the SPO. 

22 

 
 
Final convictions of persons for corruption offences amounted to 235 at first instance and 99 at 
appeal  and final  court level.  The overall number of cases referred  for prosecution in  2021 was 
3 351.  

On  high-level  state  officials,  there  was  some  progress.  In  2021,  89  cases  were  opened  (73  in 
2020)  and  2  indictments  were  issued  involving  5  people  (against  11  indictments  involving  20 
people  in  2020).  There  were  no  convictions  of  officials  on  high-level  corruption  charges.  A 
former Prosecutor General was given a final sentence of two years inprisonment and five years 
probation for concealing assets. A former Minister of Interior received a final sentence of three 
years and four months imprisonment for abuse of power. 

Criminal  proceedings and parallel  financial investigations were conducted by  SPAK in  several 
high-profile  cases,  involving  politicians  and  members  of  Albanian  institutions,  the  judiciary, 
local authorities and the business sector. This includes notably the arrests of a former Minister of 
Environment  and  of  a  member  of  Parliament  as  part  of  an  investigation  into  the  concession 
contracts on urban waste treatment (the incinerators’ affair). After approval by the SPAK Court 
of Appeal, the investigation against a former Minister in relation to the fatal Gërdec explosions 
in 2008 was reopened. 

Investigations  should  result  in  a  substantial  number  of  final  convictions  of  high-ranking  state 
officials.  Continued  efforts  are  needed  to  tackle  the  culture  of  impunity  for  high-level  state 
officials. 

In  2021,  the  network  of  Anti-corruption  coordinators,  responsible  for  administrative 
investigations,    presented  12  reports  on  criminal  activities  concerning  4  institutions  (State 
Cadastre Agency, General Directorate of Road Transport Services, National Food Authority and 
General  Directorate  of  Customs)  while  85  administrative  measures  were  taken  against  11 
institutions. 

The vetting of members of the judiciary continued to have a positive impact on the fight against 
corruption.  The  SPO  has  followed  up  criminal  investigations  for  vetted-out  High  Court  and 
Constitutional  Court  judges  and  prosecutors.  Efforts  to  ensure  that  dismissed  magistrates  are 
brought to justice should continue. Of the 300 high-level officials of the  state police, Guard of 
the Republic and Service for Internal Affairs and Complaints (SIAC) 66 were vetted, leading so 
far to 6 dismissals and 7 resignations. The vetting process remains crucial to restore public trust 
in the judiciary and the law enforcement bodies of the state. 

In 2021 SPAK Courts continued to build the track record in the field of corruption with 52 final 
convictions  (136  people)  at  first  instance  and  22  convictions  against  (44  people)  in  corruption 
cases. Some progress was made in 2021 on the seizure and confiscation of assets in corruption 
cases,  with  assets  seized  amounting  to  a  total  value  of  around  EUR  21.5  million.  However, 
additional  efforts  are  needed,  in  particular  on  effective  follow  up  through  confiscation.  In  the 
first  half  of  2022,  almost  37  million  worth  of  assets  were  seized,  but  only  minor  amounts 
confiscated. 

On  asset  declarations  by  high-level  state  officials,  15  cases  were  referred  by  the  High 
Inspectorate for the Declaration and Audit of Assets and Conflicts of Interest (HIDAACI) to law 
enforcement agencies in 2021, down from 72 in 2020. There were no final convictions on cases 
referred by HIDAACI.  

23 

 
 
The  law  on  whistle-blowing  and  whistle-blower  protection  continued  to  be  implemented.  In 
2021,  11  cases  were  registered  and  adminstrativly  investigated  and  one  request  for  protection 
against  retaliation  was  received  by  HIDAACI.  The  public  and  private  sector  made  progress  in 
creating respectively, 362 and 527 units responsible for adopting internal regulations on whistle-
blowing, and continued to submit reports to HIDAACI. 

In 2021, HIDAACI issued fines as an administrative measure in 82 cases of refusal to declare, 
conflict  of  interests  and  failure  to  comply  with  the  law  on  whistleblowing  and  whistle-blower 
protection. The large majority of these measures were upheld by the administrative courts. 

As regards internal control mechanisms, the state Supreme Audit Institution reported estimated 
damages and financial losses to public finances in 2021 of almost EUR 18 million. In 2021, the 
institution referred 14 cases involving 62 executives for prosecution, including a former Minister 
of Health and a former director of the Port Authority in Durrës. A case refered for prosecution in 
2020, on a tender of EUR 27 million for the supply of police uniforms, led to arrests by SPAK of 
public officials in July 2021. (See also Chapter 32 – Financial Control).  

On access to information, the Commissioner for Information and Data Protection administered 
992  complaints,  and  continued  the  review  of  44  complaints  carried  over  from  2020.  In  698  of 
those  cases  the  applicant  was  provided  with  the  information  requested,  as  a  result  of  the 
administrative  inquiry  process.  As  for  the  institutional  framework,  the  law  on  the  right  to 
information envisages administrative accountability of public officials who fail to  comply with 
its obligations, sanctioned by fines of up to EUR 2 500 and the possibility for the Commissioner 
to take disciplinary actions against the person responsible. 

Anti-corruption  measures  continue  to  have  a  limited  impact  in  particularly  vulnerable  areas 
(roads,  cadastre,  property,  customs,  tax  administration,  education,  health,  public  procurement, 
PPP  contracts,  etc.).  More  action  is  needed  and  a  strategy  based  on  a  general  analysis  of  the 
problem  should  be  adopted.  Internal  checks  and  inspection  mechanisms  in  the  public 
administration  remain  weak  and  ineffective.  Corruption  remains  prevalent  in  the  health  and 
property sectors and within the police. It particularly affects women as regards access to justice, 
in social services and higher education.  

Institutional framework 

Prevention of corruption 

With  the  aim  of  improving  the  central  anti-corruption  coordination,  a  new  General  Anti-
Corruption Directorate was created within the Ministry of Justice, incorporating competences 
and functions that were previously part of the Prime Minister’s Office. Its mission is to conduct 
administrative  investigations  on  denunciations  for  abusive,  corrupt,  or  arbitrary  practices 
regarding law enforcement, as well as to identify violations of law by public officials. Effective 
inter-institutional  coordination  should  be  ensured  between  the  new  governmental  structures 
involved  in  fighting  against  corruption.  The  efficiency  of  the  new  anti  corruption  directorate 
remains to be assessed. 

The institutional and operational capacity of the anti-corruption network in line ministries, at the 
local and the central coordination level continued to increase slightly.The recruitment of staff in 
the General anti-corruption directorate in the Ministry of Justice still needs to be completed. The 
network  of  anti-corruption  coordinators  at  national  and  regional  level  has  grown  to  78 
coordinators in 44 state institutions. 

24 

 
 
HIDAACI made progress in its work by establishing an Electronic System of Declaration of 
assets and private interests, which is now fully operational. HIDAACI  postponed the deadline 
for submitting declarations until October 2022, while providing trainings on the system to those 
concerned. 

Within  the  overall  anti-corruption  framework,  the  role  of  the  State  Supreme  Audit  Institution 
remains to provide recommendations to the government to address systematic weaknesses. The 
e-procurement, e-appeals and e-complaints systems helped to increased transparency in the area 
of  public  procurement.  In  April  2022,  the  Ministry  of  Justice  submitted  its  self-assessment 
compliance report to the Council of Europe’s Group of States against Corruption (GRECO), as a 
follow  up  to  GRECO’s  first  report  of  the  fifth  round.  The  report  deals  with  preventing  
corruption  and  promoting  integrity  in  central  government  and  law  enforcement  agencies,  and 
lists  24  recommendations  for  Albania.  The  12  subordinate  institutions  and  agencies  of  the 
Ministry of Justice have finalised the process  of  integrity risk assessment  and have  approved 
their integrity plans. Besides the Ministry of Justice, the Ministry of Interior and the Ministry of 
Finance and Economy have also adopted their integrity plans.  

In November 2021,  Parliament adopted the law on co-governance, which provided the Agency 
for  Dialogue  and  Co-governance  with  substantial  new  powers  (see  above  on  Public 
Administration  Reform).  Since  the  Agency  is  also  mandated  to  follow  up  on  corruption 
complaints,  its  interaction  with  the  network  of  anti-corruption  coordinators  and  the  division  of 
roles between the two organisations need to be clarified.  

Law enforcement  

The  specialised  bodies  in  charge  of  investigating,  prosecuting  and  adjudicating  complex 
corruption cases – the Anti-Corruption and Organised Crime Courts and the SPAK, comprising 
the Special Prosecution Office (SPO) and the National Bureau of Investigation (NBI) – remained 
fully operational during the reporting period. 

Legal framework 

Albania  remains  a  party  to  all  international  anti-corruption  conventions,  including  the  United 
Nations  Convention  against  Corruption.  It  has  continued  to  improve  its  legal  framework  for  
preventing and combating  corruption.  

The  Albanian  parliament  still  needs  to  adopt  a  unified  law  on  political  party  and  campaign 
financing, and also address remaining OSCE/ODIHR recommendations. As electoral campaigns 
are  moving  increasingly  online,  special  attention  should  be  paid  to  online  and  third-party 
campaigning.  

Concerns  about  the  misuse  of  state  resources  during  electoral  campaigns  persist.  The  Central 
Election Commission  fined the mayor of Durreës  for using public resources during her electoral 
campaign  for  the  March  2022  by-elections.  Such  incidents,  and  others  related  to  vote-buying 
practices  in  April  2021  elections,  confirmed  the  need  for  more  transparent  political  party 
finances in line with international and European standards.   

Albania’s  legislation  is  partially  in  line  with  the  OECD  Convention  on  Combating  Bribery  of 
Foreign Public Officials in International Business Transactions.  

Strategic framework 

25 

 
 
Overall,  the  implementation  of  the  inter-sectoral  strategy  against  corruption  is  still  on  track. 
However,  weaknesses  as  regards  the  need  to  improve  ownership,  to  strengthen  institutional 
capacities  and  increase  the  budget  for  the  strategy’s  activities  are  still  present.  Although  the 
strategy  includes  monitoring  indicators,  the  impact  of  anti-corruption  structures  on  preventing 
public sector corruption remains difficult to measure. The  2022-2023 action plan to implement  
the  extended  strategy  remains  in  place.  Consultations  with  relevant  stakeholders  before  the 
approval  of  the  reports  have  improved,  including  the  use  of  the  public  consultation  platform. 
Some progress was made in awareness-raising and efforts in this area need to be sustained. 

Fundamental rights  

Albania  generally  complies  with  international  human  rights  instruments  and  has  ratified  most 
international  conventions  on  the  protection  of  fundamental  rights.  During  the  reporting  period, 
some progress was made, notably with the adoption of a new and better-budgeted national action 
plan for LGBTIQ persons, a national strategy on gender equality and a national action plan for 
equality, inclusion and participation of Roma and Egyptians in Albania. The use of alternatives 
to detention and, in particular, the probation service have also made some progress. On property 
rights,  the  registration  and  digitalisation  of  cadastral  data  continued,  but  at  a  slow  pace.  The 
compensation process for property unjustly expropriated during the communist area has slowed 
down  during  the  year,  pending  amendments  to  legislation.  The  sector  remains  prone  to 
corruption.  Efforts  must  intensify,  including  on  completing    the  legislative  framework  and  by 
making further progress  in   first  registration and  compensation  processes.  On the protection of 
national  minorities,  one  additional  piece  of  implementing  legislation  was  adopted  and 
preparations  for  the  long  awaited  population  census  continued.  However,  the  adoption  of  the 
implementing  legislation  on  the  most  sensitive  issues  is  still  pending  and  the  population  and 
housing census was postponed to 2023. On the protection of personal data, Albania needs to take 
measures to prevent massive breach of personal data from happening again and must accelerate 
efforts to align its legislation with the EU General Data Protection Regulation (GDPR). Overall, 
the recommendations from last year were partially implemented. 

Recommendations for the coming year: 

  adopt pending implementing legislation on minority rights, particularly on self-identification 
and  the  use  of  minority  languages,  and  increase  the  capacities  of  the  state  Committee  on 
National Minorities; 

  allocate  sufficient  resources  and  finalise  the  legal  framework,  to  complete  the  transitional 
processes in the area of property rights, and to improve the transparency and quality of the 
property register; 

  improve data protection, in particular by adopting the revised law on personal data protection 
aligning with the EU General Data Protection regulation, by strengthening the Office of the 
Information  and  Data  Protection  Commissioner,  and  by  raising  awareness,  including  in 
public institutions; 

  implement  the national  strategy for  gender  equality, the law on  gender  equality  and  ensure 

gender mainstreaming and gender-responsive budgeting for sectoral strategies. 

Overall,  Albania  continues  to  comply  with  international  human  rights  instruments  and  most 
international conventions have been ratified. However, the Optional Protocol to the Convention 

26 

 
 
on  the  Rights  of  Persons  with  Disabilities  and  the  Optional  Protocol  to  the  International 
Convention on Economic, Social and Cultural Rights have not yet been signed.   

In  March  2022,  the  Committee  of  the  Convention  on  the  Elimination  of  all  Forms  of 
Discrimination  against  Women  adopted  a  list  of  areas,  where  Albania  needs  to  demonstrate 
progress,  including  the  legislative  framework  and  definition  of  discrimination  against  women, 
employment, gender-based violence, and disadvantaged and marginalised groups of women.  

Albania submitted its first report on the implementation of the Council of Europe Convention on 
preventing  and  combating  violence  against  women  and  domestic  violence  (the  Istanbul 
Convention).  The  conclusions  of  the  Committee  of  the  Parties  to  the  Istanbul  Convention, 
published in December 2021, noted the urgency of increasing resources to  put legal provisions 
into practice.  

As  part  of  Albania’s  participation  in  the  European  Union  Agency  for  Fundamental  Rights 
(FRA), assessing the level of implementation of human rights legislation, policies, and strategies 
remain a challenge due to the absence of comprehensive monitoring and data.  

Albania  continues  to  ensure  good  cooperation  with  the  European  Court  of  Human  Rights 
(ECtHR).  On  15  June  2022,    there  were  400  cases  against  Albania  (19  of  which  were 
communicated cases) pending before the court.  The court delivered four judgments  concerning 
Albania during the reporting period, of which three found breaches of the European Convention 
on Human Rights (ECHR). Four judgments are under supervision by the Committee of Ministers 
on  inter  alia  the  prohibition  against  ill-treatment,  the  length  of  judicial  proceedings,  the  non-
enforcement  of  judicial  decisions  and  the  right  to  property.  There  were  75  new  applications 
allocated  to  a  judicial  formation  of  the  ECtHR  and  the  court  dealt  with  224  applications 
concerning Albania in 2021, of which 220 were declared inadmissible or struck out.  

The Ombudsman (People’s Advocate) continued to promote and enforceme human rights. The 
institution’s  budget  was  slightly  raised  in  2021.  Of  the  267  recommendations  issued  in  2021, 
almost  half  were  accepted  and  at  least  partially  implemented,  22%  remained  unanswered  and 
several  late  and/or  incomplete  answers  negatively  affected  the  work  of  the  Ombudsman. 
Progress needs to continue on improving the follow-up to these recommendations.  

During  the  state  of  emergency  related  to  the  COVID-19  pandemic  in  2021,  the  Ombudsman 
raised concerns about democratic participation, freedom of movement and assembly, restrictions 
on  the  right  to  family  life  and  privacy,  and  proactively  promoted  principles  of  legality  and 
proportionality  with  regards  to  legislation  in  light  of  the  pandemic.  The  significant  and  stable 
number of discrimination cases filed with the Commissioner for Protection from Discrimination 
(CPD) shows the public’s increased  awareness and trust in this institution. The ECtHR upheld a 
claim based on a binding decision of the CDP from 2015, although the case was never tried in 
national courts, contrary to Albania’s claim. The ECtHR ruled that it was not necessary to seek 
redress in courts if there is an enforceable and binding decision of the Commissioner. In 2021, 
324 cases were filed with the CDP, of which 168 were in the field of employment and 143 in the 
field of goods and services. The CDP issued  four main recommendations. Two related to draft 
laws to combat sex crimes. Another was on the implementation of the national gender equality 
strategy.  Another  recommendation  was  on  the  2021-2025  national  action  plan  for  equality, 
inclusion and participation of Roma and Egyptians. 

27 

 
 
On  the  right  to  life,  limited  progress  was  made  in  investigating  cases  and  strenghten  the 
institutional and legislative framework on missing persons since the communist era. In October 
2021, the Fier district prosecutor ordered the exhumation of a secret grave in the former prison 
camp  in  Ballsh,  a  known  grave  site.  The  order  has  not  yet  been  implemented.  Implementing 
legislation  amending  the  law  on  the  right  to  information  about  the  former  state  security 
documents of the Socialist People’s Republic of Albania remain to be adopted. In March 2022, 
the new structure of the authority for information on the documents was approved by Parliament 
and cooperation agreements on the identification and recovery of missing persons were signed 
between  the  authority  and  the  state  police.  Additionally,  a  new  directorate  was  created  with  a 
clear mandate to enhance inter-institutional cooperation on the identification and recovery of the 
bodies of  missing persons. Continued political will is important to increase the number of cases 
solved and to raise public awareness on this matter.  

On  the  prevention  of  torture  and  ill-treatment,  in  November  2021  the  European  Committee 
for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT) carried 
out  an  ad  hoc  visit  to  Albania.  The  CPT  reviewed  progress  made  in  transferring  forensic 
psychiatric patients to proper facilities, and examined the conditions of the prison hospital. The 
medical  and custodial staff were assessed to  be generally satisfactory  and no allegations of ill-
treament of patients by staff were reported. However, poor material conditions remain, as well as 
structural deficiencies, including the lack of communal spaces for group activities and of outdoor 
yards. A memorandum of understanding with a joint action plan was signed by the Minister of 
Justice and the Minister of Health and Social Protection to implement recommendations of the 
CPT and judgments of the ECtHR concerning forensic psychiatric patients and prisoners with a 
mental disorder. Following an additional agreement, the Zaharia prison was closed, and forensic 
psychiatric patients were transferred to the Lezha prison. Progress in the renovation of the Lezha 
prison continued. However, it remains over-populated and conditions in its forensic psychiatric 
facility  need  to  be  brought  up  to  a  satisfctory  standard.  Efforts  are  also  needed  to  increase  the 
number of staff and their competence.  

The  National  Preventive  Mechanism  (NPM)  carried  out  68  periodic  inspections  which  were 
followed by 76 recommendation and handled 38 complaints, and nine ex officio cases concerning 
conditions in prisons and treatment of prisoners. The NPM also handled four complaints against 
the state police for violence and unjustified  escorting. According to  the  Ombudsman’s reports, 
most of these cases occurred during arrest and interrogation, especially in  the context of public 
protests.  

The  prison  system  and  detention  centres  remain  an  issue  of  concern.  Long  standing  issues 
include political influence, corruption, and poor management, as well as shortage of staff, poor 
infrastructure, lack of healthcare and security. Lack of inspections, employment and reintegration 
programmes for prisoners are other issues of concern.  

Across the country, the number of inmates is now below the capacity of the prison system, with 
95% of the capacity used.  

The  General  Director  of  Prisons,  appointed  in  December  2021,  has  demonstrated  a  proactive 
commitment  to  improve  prison  facilities,  including  review  of  prison  security  and  the 
rehabilitation  of  prisoners.  Special  attention  should  be  paid  to  de-radicalisation  in  prison  and 
post-releases.  

28 

 
 
Although  the  2019-2022  action  plan  for  the  development  of  the  prison  system  will  soon  no 
longer  apply,  it  remains  relevant  as  the  new  penitentiary  legal  package  still  needs  to  be 
effectively implemented. A sub-legal act on the employment of prisoners was adopted in October 
2021 and the Minister of Justice has undertaken efforts to provide employment to 580 prisoners.  

In  2021,  the  use  of  alternatives  to  custody  continued  to  grow.  The  probation  service  remains 
fully operational in the whole country and  provides alternatives to imprisonment, including for 
juvenile  offenders.  However,  the  use  of  electronic  monitoring,  has  been  suspended  since  2017 
because of an unsettled legal dispute.  

Legislation on protection of personal data still needs to be further aligned with the EU General 
Data Protection Regulation (GDPR) and the related “law enforcement” directive4. The process of 
modernization  has  been  launched.    A  draft  law  aiming  to  achieve  this  alignment  has  been 
submitted  to  public  consultations,  which  lasted  from  half  June  to  half  July  2022.  Additional 
human and financial resources will need to be allocated to the Office of the Information and Data 
Protection  Commissioner  (IDP)  for  the  effective  performance  of  its  tasks  and  exercise  of  its 
powers,  to  fulfill  its  expanded  role.  On  22  July  2022,  Albania  ratified  the  2018  Protocol 
amending  the  Council  of  Europe  Convention  for  the  Protection  of  Individuals  with  regards  to 
Automatic Processing of Personal Data (CETS 223). 

By 19 May 2022, the IDP received 496 complaints and carried out 56 administrative inspections, 
which  represents  a  slighlty  higher  level  of  activity  compared  to  2020.  The  IDP  issued  42 
recommendations  and  34  administrative  sanctions.  After  the  personal  data  leak  that  emerged 
during the 2021 general elections, a new serious and massive breach of personal data occurred in 
December 2021, when a database containing personal data of more than 600 000 employees in 
the  private  and  public  sector  was  leaked.  The  Commissioner  launched  an  administrative 
investigation  of  this  in  the  General  Directorate  for  Taxation  on  the  matter.  One  cross-cutting 
finding of the IDP during its administrative inspections has been the lack of awareness in public 
institutions of the obligations set out in the law on personal data protection.  

Overall,  freedom  of  thought,  conscience  and  religion  was  generally  upheld.  The  state 
continued to provide the same level of financial support to religious communities. In May 2022, 
the  state  allocated  EUR  935 000  to  the  Catholic,  Sunni  Muslim,  Orthodox,  and  Bektashi 
communities for the administrative functioning of the communities and religious education. The 
dependence  of  some  religious  groups  on  financial  support  from  third  parties  creates 
vulnerabilities. The restitution of properties belonging to religious groups and taken by the state 
during communism remains an unresolved issue.  

Freedom of expression 

The country has some level of preparation / is moderately prepared in the area of freedom of 
expression.  No  progress  was  made  over  the  reporting  period.  The  independence  of  media  and 
the quality of journalism remain hampered by the intersection of business and political interests. 
Disinformation  campaigns  are  recurrent  especially  in  online  media.  The  reporting  period  saw 
cases of threats, intimidation, and online smear campaigns against journalists reporting on rule of 
law, corruption and justice issues.  

4 Law Enforcement Directive 2016/680. 

29 

 
 
                                                           
Last  year’s  recommendations  still  need  to  be  implemented  and  therefore,  remain  valid.  In 
addressing the persisting shortcomings, Albania should:  

  adopt a policy of zero tolerance for intimidation and attacks against journalists, as well as for 
threats  against  the  media,  including  in  political  discourse  and  in  the  margins  of 
demonstrations; 

  ensure that the legal requirements for transparency of media ownership and financing, and its 
limitations thereto, as well as requirements on public advertising, are aligned to international 
standards; 

  implement  the  Labour  Code  and  strengthen  the  protection  of  Albanian  journalists’ 

employment and social rights. 

Intimidation of journalists 

Political  actors  continued  to  voice  anti-media  sentiments  and  use  denigrating  language  against 
journalists,  on  a  number  of  occasions.  During  the  reporting  period,  four  new  cases  of  alleged 
physical  violence  against  journalists  in  the  exercise  of  duty  were  formally  registered  with  the 
prosecutor's offices of general jurisdiction. Two of the cases were closed and two are still subject 
of  preliminary  proceedings.  In  July  2021,  police  detained  two  journalists who  were  filming  an 
ongoing  operation  against  narcotics.  In  November  2021,  an  investigative  journalist  and  a 
cameraman were almost pushed into a ravine by a police officer as they approached the murder 
site  of  a  case  they  were  reporting  on.  In  January  2022,  nine  journalists  and  media  crews  were 
impacted  by  the  police  response  to  a  protest  in  Tirana,  but  authorities  argued  that  the  police 
actions  did  not  target  the  media.  In  the  same  month,  a  cameraman  was  arbitrarily  forced  by  a 
municipal  police  to  leave  a  local  protest  he  was  covering.  In  March  2022,  the  Audio-visual 
Media Authority (AMA) issued a statement condemning threats  by business actors against two 
journalists.  In  February  2022, online media claimed that cyber-attacks targeted them following 
the publication of a taped conversation between a mayor and local football authorities. In April 
2022,  two  journalists  reporting  on  the  vetting  process  received  threats  and  were  intimidated, 
allegedly on behalf of an official with vested interests. Overall, the atmosphere of verbal attacks, 
smear campaigns and acts of intimidations against journalists has not improved.  

Legislative environment 

It  is  essential  that  any  possible  change  to  the  media  law  should  be  in  line  with  the  Venice 
Commission  Opinion  and  submitted  to  proper  consultation  with  media  organisations.  Albania 
still needs to introduce legislation to strengthen transparency in public advertising.  

Implementation of legislation/institutions 

In February 2022, Parliament filled six vacancies out of the seven members of the audio-visual 
regulatory  authority,  thus  making  the  authority  fully  operational.  The  independence  of  some 
AMA members has been questioned due to their political links.  

It remains important to ensure direct and transparent media access to governmental institutions 
and  their  activities  and  to  factual  non-partisan  public  information.  Some  media  organisations 
have  encountered  difficulties  in  accessing  factual  government  information  and  have  expressed 
concerns  about  the  common  practice  of  the  authorities  and  political  parties  of  providing  pre-
prepared  written  or  audio-visual  content.  This  notably  stems  from  the  need  for  all  government 
public relations to be handled by the newly created Media and Information Agency.  (MIA). 

30 

 
 
Public service broadcaster 

In  March  2022,  Parliament  formally  launched  the  process  to  fill  two  vacancies  on  the  steering 
board of the public broadcaster, which is composed of 11 members. The vacancies have yet to be 
filled.  

In October 2021, the anti-corruption special prosecution body, SPAK, issued arrest orders for the 
former  Director  General  of  the  Public  Broadcaster  and  three  members  of  the  Commission  for 
Offer Evaluation,  who are charged with  breaching public procurement rules.  In June 2022, the 
Special  Appeal  Court  against  Organised  Crime  and  Corruption,  sentenced  the  former  Director 
General to two years in prison. He was also stripped of the right to exercise public functions for 
5  years.  In  November  2021,  the  public  broadcaster’s  steering  board  elected  a  new  Director 
General of Albanian Radio and Television.  

Economic factors  

High-profile  business  group  have  increased  their  economic  penetration  in  the  media  market 
during the reporting period. Media organisations and activists have continued to raise concerns 
about  the  use  of  media  channels  to  promote  owners’  economic  interests  and  political  agendas. 
Market  and  audience  concentration  and  lack  of  transparency  of  media  funding  continue  to 
remain  issues  of  concern  as  regards  media  freedom  in  the  country.  Tax  evading  practices  by 
media owners have been denounced by media freedom organisations.  

Internet 

Indicatively,  there  are  around  800  online  media  outlets  operating  cross  Albania,  with  most  of 
them registered outside the country and a more limited number registered with the Electronic and 
Postal Communications Authority under the domain .al.  

The state generally refrains from filtering and blocking online content. However, media freedom 
organisations  claim  that  there  are  no  specific  legal  provisions  to  enforce  and  protect  the  net 
neutrality. Albania has signed up to the Declaration for the Future of Internet of 28 April 20225. 
Signed  by  more  than  60  international  partners  to  date,  the  Declaration  sets  out  the  vision  and 
principles of a trusted Internet. 

Digital media are still under strong influence by political actors, businesses and by third parties 
in  terms  of  funding  and  content.  Media  freedom  organisations  have  highlighted  the  lack  of 
regulation to ensure transparency in online advertising by political parties and candidates during 
electoral campaigns. 

The development of a Strategy on better internet for kids aimed, among others, at facilitating a 
child-led process, as well as detecting and retorting child sexual abuse material online should be 
considered.  

Freedom of artistic expression 

Freedom of artistic expression is broadly guaranteed. In the first quarter of 2022, the government 
removed the ban imposed on artistic and cultural activities due to COVID-19 restrictions. 

Professional organisations and working conditions 

5 Declaration for the Future of Internet | Shaping Europe’s digital future (europa.eu) 

31 

 
 
                                                           
Professional  associations  of  journalists  face  many  hardships  in  terms  of  limited  financial 
resources,  personal  skills,  and  the  overall  ability  to  set  up  a  structured  dialogue  with  the 
government to advocate in support of the media community.  

Lack  of  job  security  and  poor  working  conditions  have  made  journalists  and  media  workers 
vulnerable to self-censorship and less resilient against disinformation. 

The  lack  of  enforceable  employment  contracts  continues  to  remain  an  issue  of  concern, 
especially in local and online media. Many media employees do not have employment contracts, 
while many journalists do not receive their salaries on time or are dismissed without respecting 
the procedures of the Labour Code. According to data provided by the Union of Journalists, one 
quarter of media workers are working without a contract. Reportedly, about 80% of reporters are 
paid minimum wages and almost 48 % of wages were delayed by 2 to 6 months. 

Self-regulating  activities  need  to  be  stepped  up,  in  particular  by  the  Alliance  for  the  Ethical 
Journalism,  a  group  that  brings  together  stakeholders,  including  online  ones,  who  pledge  to 
comply with the Code of Ethics.  

Freedom  of  assembly  and  association  is  guaranteed  by  the  Constitution.  Civil  society 
organisations  and 
their  concerns  about  disproportionate 
interventions by police forces in March 2022 during civil protests against the increase in fuel and 
food  prices.  Detention  and  arrests  of  protesters  were  criticised  by  human  rights  organisations, 
who argued that they were not carried out in line with Albanian law and international practices. 

the  Ombudsperson  expressed 

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

Challenges  remain  in  the  area  of  property  rights.  Further  efforts  are  needed  to  finalise  the 
transitional  ownership  processes  and  registration  of  property  deeds,  and  the  restitution  of  and 
compensation for property unjustly expropriated  during the  communist era.  It  is estimated that 
approximately  80%  of  the  data  on  registered  properties  is  incorrect  and  almost  10%  of  the 
country’s  territory  remains  unregistered.  An  efficient  and  transparent  property  registration  and 
integrated land management system, which offers clear and secure property titles, needs to be in 
place to ensure the right to property in practice.  

Several  acts  of  implementing  legislation  provided  by  the  law  on  cadastre  and  by  the  law  on 
transitional  ownership  processes  are  still  absent.  These  should  be  finalised  and  adopted  as  a 
matter of priority.  

There was some progress as regards the process  of registration and digitisation in the cadastre. 
By 10 June 2022, first registration had been completed in 2 758 cadastral zones, compared with 2 
717 reported last year and there are currently 12 zones where the process is ongoing. There was 
progress  in  digitizing  property  files  through  the  scanning  and  uploading  of  kartelas.  Over  1.9 
million    files  are  now  digitised,  although  2.3  million  files  awaits  digitlisation.  Around  300 
cadastral zones still lack first registration, comprising around 300 000 properties. Furher efforts, 
including allocating the necessary resources, are needed to complete the first registration.  

There  is  a  high  turnover  of  employees  in  the  state  Cadastre  Agency  (SCA),  including  in 
managerial posts, and serious allegations of corruption seem to be supported by arrests made by 
the SPAK. The property sector has been identified by the General Directorate of Anti-Corruption 
as one of the most exposed to corruption. The SCA needs to urgently conduct a risk assessment 
and  adopt  a  subsequent  action  plan  to  adress  corruption  and  other  irregularities  related  to 

32 

 
 
property  registration.  The  transparency  of  the  SCA  should  be  further  improved,  including  by 
publishing annual reports on its activites.  

In 2021, the Agency for the Treatment of Property (ATP) executed 6 decisions corresponding to 
a  value  of  almost  EUR  2.4  million.  Since  February  2021  no  decisions  on  the  right  to 
compensation have been issued and the  execution of final decisions has been  suspended, due to 
a  review  of  the  law  on  the  compensation  process  by  the  Constitutional  Court.  The  expired 
mandate of the ATP left just under 7 000 requests of ownership recognition to be dealt with by 
the courts. As of today, just under 800 decisions with a financial evaluation have been executed, 
with total compensation awarded corresponding to EUR 65 million. Even with the compensation 
scheme adapted to standards set by the ECtHR and the Constitutional Court, additional measures 
should be taken to ensure the effective application of the current law, including a review of the 
compensation funds and a clear regulation of the use of alternative forms of compensation.  

Legislative  amendments  in  2018  ensure  joint  registration  of  marital  property.  However,  data 
shows  that  men  possess  and  administer  property  to  a  much  greater  extent  than  women,  and 
women still lack basic information on their property rights. Data reported by the Ombudsperson 
shows  a  high  numbers  of    complaints  from  members  of  the  Roma  and  Egyptian  communities 
about violations of  property rights. 

On non-discrimination, the legal and policy framework is generally aligned with EU standards. 
Its implementation needs to be further strenghtened including by providing specialised training 
to judges and prosecutors. In 2021, the Commissioner for Protection from Discrimination (CPD) 
continued  to  handle  a  stable  number  of  cases  of  alleged  discrimination,  mostly  in  the  areas  of 
employment  and  services.  Laws  on  hate  speech  are  in  line  with  international  standards.  Better 
enforcement  and  greater  awareness  raising  are  needed  to  eliminate  hate  speech,  particularly  in 
rural and remote areas. In 2021, the CPD handled seven cases regarding the use of hate speech, 
including on the grounds of race, gender or sexual orientation. On hate crime, some progress was 
made  in  building  the  capacities  of  law  enforcement  agencies  to  responde  to  this  phenomenon. 
However, further awareness-raising and capacity-building among criminal justice officials about 
hate crimes is still needed. Moreover, the ODIHR recommendations on the collection of data and 
statistics  on  hate  crimes  have  yet  to  be  fully  implemented.  Eight  cases  of  hate  crimes  were 
reported to the police.  

The 2021-2030 national strategy on Gender Equality and its action plan are well aligned with 
the  EU  Gender  Action  Plan  III6.  The  strategy  has  become  more  affirmative  in  addressing  the 
rights of all women and men, focusing on people who face intersecting forms of discrimination 
and  vulnerability,  young  people  and  social  reforms  and  has  introduced  a  dedicated  section  on 
humanitarian emergencies.  

Albania  pursues  its  efforts  to  ensure  adequate  state  funding  to  effectively  implement  the  new 
strategy at central and local level. All activities have been costed and the overall funding gap has 
been significantly reduced. Efforts are needed to ensure that all national strategies implemented 
at central and local level are gender mainstreamed and apply gender-responsive budgeting.  

Provisions  on  referral  mechanisms  between  different  levels  of  care,  training  for  healthcare 
providers, youth friendly services, and outreach to vulnerable groups remain unaddressed in the 
law  on  reproductive  health.  The  Ministry  of  Health  and  Social  Protection  has  made  efforts  to 

6 Gender Action Plan III – a priority of EU external action (europa.eu). 

33 

 
 
                                                           
monitor  and  provide  training  to  health  personel  on  identifying  and  addressing  the  issue  of 
gender-biased sex selective abortion. However, efforts should continue to ensure monitoring of 
the  practice.  Women  living  in  rural  and  remote  areas,  Roma,  and  Egyptian  women,  but  also 
LGBTIQ individuals, face limited access to primary health care, and to sexual and reproductive 
healthcare services. 

On  gender-based  violence,  in  February  2022,  Albania  ratified  the  International  Labour 
Organisation Convention on Violence  and  Harassment  in  the World of Work  (Convention  No. 
190). However, the national legal framework  needs to be further harmonised with its provisions 
to  ensure  full  implementation.  The  current  legal  framework  is  not  fully  aligned  with  key 
international standards, including the Istanbul Convention, and lacks a focus on the reintegration 
of, and access to services for, victims and survivors of violence.  

In 2021, the police identified and treated 5 312 cases of violence and other crimes committed in 
domestic relations, a 13% increase against 2020. Among them, 3 266 cases of domestic violence 
were handled with a request for a protection order and 1 630 cases were referred to prosecution 
offices. In both instances, a slight increase on the 2020 figures was recorded. 638 perpetrators of 
domestic  violence  were  arrested  and  123  detained.  Domestic  violence  increased  during  the 
lockdown period. Eighteen women and girls were murdered within family relationships in 2021, 
compared with six in the previous year. More efforts are needed to reverse this trend, including 
through better law enforcement, institutional messages on ending violence against women and by 
increasing  women’s  awareness  of  their  rights  and  available  services.  Currently,  there  are  local 
referral mechanisms for reporting gender-based violence in all 61 municipalities. However, these 
mechanisms,  andrehabilitation  and  integration  programmes  for  vulnerable  women,  need  to  be 
reinforced.  

The legal framework governing the rights of the child is in place and some progress was made 
in institutional capacity-building for its effective implementation. The practice of child marriage 
still exists, and is primarly driven by gender inequality, poverty and social exclusion. The lack of 
official data does not make it possible to provide an accurate picture of the prevalence of child 
marriage.  Laws  to  protect  adolescents  from  child  marriage  are  ineffective  or  applied 
inconsistently. However, throughout 2021 the government prioritised addressing child marriage 
in its budgeted national policy framework for the first time, and the 2021-2026 national agenda 
for  the  rights  of  the  child,  approved  in  2021,  contains  objectives  and  measures  to  combat  this 
harmful  practice.  The  national  deinstitutionalisation  plan  was  included  in  Albania's  2021-2023 
economic reform program with a financial package to develop alternative childcare services and 
to close social care institutions. Additional efforts are needed to further implement and tackle all 
violations of children’s rights. 

Violence  and  sexual  violence,  including  online,  remains  a  concern.  In  2021,  Child  Protection 
Units managed 2 389 cases of children in need of protection. There was a slight increase in the 
number of child protection workers (up from 223 to 241), but this remains vastly below the total 
number  needed.  A  comprehensive  legal  framework  on  the  status  and  responsabilities  of  social 
workers  needs  to  be  adopted.  Further  efforts  are  needed  to  ensure  an  adequate  and  systematic 
response to all types of violence against children. 

For  children  in  conflict  with  the  law,  pre-trial  detention  continues  to  be  the  main  reason  for 
depriving them of their liberty. However, progress was  made with an increased use of diversion. 
in  12  police 
The  Albanian  state  police  has  created  child-friendly 

interview  units 

34 

 
 
departments/stations.  Efforts  are  ongoing  to  train  police  personnel  in  using  the  child-friendly 
interview  units  in  these  twelve  police  departments/stations  and  in  conducting  professional 
forensic  child-friendly  interviews.  In  February  2022,  the  Director  of  the  Juvenile  Criminality 
Prevention Centre was recruited. With the staff now fully in place, the centre needs to advance in 
carrying  out  its  mandate  and  demonstrate  its  effect  on  the  situation  of  children  in  conflict  or 
contact with the law.  

No  progress  was  made  on  the  rights  of  persons  with  disabilities.  Albania’s  framework 
legislation on the rights of persons with disabilities remains only partially in compliance with the 
UN  Convention  on  the  Rights  of  Persons  with  Disabilities  (UNCRPD)  and  gaps  must  to  be 
addressed. Albania still needs to ratify the Optional Protocol to the Convention on the Rights of 
Persons  with  Disabilities.  The  40%  gap  in  funding  for  the  2021-2025  national  action  plan  for 
people with disabilities remains to be addressed  – without which it cannot be comprehensively 
implemented.  More  robust  efforts  are  needed  to  address  discrimination  and  violence  against 
persons  with  disabilities,  to  improve  overall  accessibility,  promote  employment,  and  to  collect 
statistical  data  on  their  situation.  Adults  and  children  with  disabilities  continue  to  be  placed  in 
residential care centres, in violation of their rights under the UNCRPD. The quality of education 
for children with  disabilities, especially  children  with  a hearing impairment, continued to  raise 
concern. Although numbers increased in 2021, there remain an insufficient number of teaching 
assistants for children with disabilities in the pre-university education system. Additional efforts 
are  needed  to  provide  training  on  inclusive  education  approaches  for  all  teachers  and  on  early 
detection of disabilty. 

In  Albanian  society,  discrimination  against  lesbian,  gay,  bisexual,  transgender,  intersex  and 
queer  (LGBTIQ)  persons  is  still  very  prevalent,  especially  as  regatds  access  to  healthcare, 
education, justice,  employment  and housing.  Members of the  LGBTIQ  community  continue to 
experience  physical  aggression  and  hate  speech,  particularly  in  social  media.  Albania  does  not 
have  legislation  recognising  civil  cohabitation  or  same-sex  marriage,  which  would  require 
amendments to the family code. 

In  November  2021,  the  new  national  action  plan  for  LGBTIQ  persons  (2021-2027)  was 
approved,  based  on  an  inclusive  and  participatory  consultation  process.  It  is  essential  that  the 
plan is adequately financed and that political will for its enforcement is demonstrated to make up 
for  the  deficiencies  in  implementing  the  previous  plan.  The  new  action  plan  includes  various 
measures  to  fight  discrimination,  improve  access  to  services  and  to  approve  the  legal  gender 
recognition law.  In 2021, police officers, prosecutors and gender focal points in line ministries 
continued to receive training on preventing discrimination on the basis of sexual orientation and 
gender  identity.  The  shelter  for  LGBTIQ  persons  continued  to  provide  care,  support  and 
advocacy  to  homeless  LGBTIQ  individuals.  State  funding  continues  to  cover  only  40%  of  the 
shelter’s budget  and the fact that it remains very dependent on   donors  creates uncertainty for 
the continuation of services. 

Among other initiatives, the tenth Tirana Pride was organised on 21 May but public awareness 
and  acceptance  of  LGBTIQ  persons  remain  low,  particularly  in  rural  areas.  Hate  speech  and 
discriminatory  language  in  the  media,  especially  online,  and  from  politicians  and  criminal 
offences and discrimination against members of the trans-community remain a problem. In 2021, 
the  CPD  handled  four  cases  of  hate  speech  against  the  LGBTIQ  community.  According  to 
CSOs’  data,  only  7.1%  of  people  in  the  LBGTIQ  community  reported  incidents  of 

35 

 
 
discrimination,  of  which  5.8%  were  reported  to  the  police.  Of  the  total  number  referred  cases, 
only 20.3% were resolved.  

On procedural rights, the legal basis for free legal aid is complete and is being applied. Primary 
and secondary legal aid are delivered at central and local level. The number of people that have 
benefited from free legal aid has increased considerably since the approval of the law  in 2017. 
Despite the legal  framework on free legal  aid  and institutional  set  up to guarantee it, only few 
children benefit from legal aid compared with the number of children involved in criminal law, 
family and civil law and administrative law processes. The budget allocated for legal aid in 2021 
amounted  to  EUR  547 696,  an  increase  of  31%  against  the  previous  year.  The  budget 
implemented in 2021 amounted to EUR 245 739 (up from EUR 140 488 in 2020). However, the 
dedicated state budget should be further increased to make the legal clinics fully functional. The 
staffing of the free legal aid directorate is now complete, and 10 centres are in operation across 
the  country.  It  remains  important  to  improve  the  collection  and  reporting  of  statistical  data  on 
free legal aid. Awareness raising efforts should continue at all levels. Some progress was made 
on standards for interviewing children in conflict with the law.  Limited progress was made on 
other  procedural  rights.  There  was  no  progress  on  addressing  remaining  issues  with  regard  to 
other procedural rights of suspects and accused persons. Concerning the right to information in 
criminal  proceedings,  the  refusal  or  failure  to  grant  access  to  a  case  file  should  be  subject  to 
judicial  review,  with  effective  remedies.  On  access  to  a  lawyer,  adequate  facilities  for 
confidential  client-lawyer consultations need to be ensured by  courts, prosecutors’ offices, and 
the police. On the presumption of innocence, there should be a clear legal prohibition on public 
references to guilt made by public authorities. 

On the adoption of the remaining implementing legislation related to the 2017 framework law on 
the  protection  of  national  minorities,  in  December  2021  the  Government  adopted  additional 
legislation to  create  a fund for  civil  society projects  in  support to  minority  rights,  bringing  the 
number  of  pieced  of  implementing  legislation  adopted  to  nine.  However,  to  date,  the 
implementing  legislation  on  the  crucial  issues  of  free  self-identification  of  national  minorities 
and the use of languages remains to be adopted. The state Committee on National Minorities was 
created. A series of pilot censuses were conducted during the reporting period, including in areas 
populated by minorities, ahead of the full-scale population and housing census expected to take 
place  in  2023.  It  is  important  for  Albania  to  conduct  the  national  census  in  a  smooth  and 
transparent manner and in line with international standards. 
Overall  limited  progress  was  achieved  in  the  social  inclusion  of  the  Roma  and  Egyptian7 
minorities.  In  november  2021,  the  new  national  action  plan  for  equality,  inclusion  and 
participation  of  Roma  and  Egyptians  in  Albania  (2021-2025)  was  adopted,  following  an 
inclusive  and  participatory  consultation  process.  The  action  plan  is  funded  by  the  state  budget 
(78.8%), municipalities (13.7%) and donors (0.7%). The gap in financing of 6.8%, needs to be 
addressed. The institutional capacity of the Ministry of Health and Social Protection, in charge of 
the coordination of Roma-related policies, remains weak. The human resources capacity of the 
social  inclusion  department  needs  to  be  strengthened.  Participation  of  Roma  in  the  local 
administration  needs  to  be  improved,  and  inter-ministerial,  national  and  local  coordination  on 
Roma inclusion should be further strenghtened. 

7 In line with the use in the EU Roma Strategic Framework, ‘Roma’ is used as an umbrella term, without denying 
the specificities of different groups. 

36 

 
 
                                                           
Following  the  removal  of  distant  learning  and  quarantine  measures  related  to  the  COVID-19 
pandemic,  the  participation  of  Roma  and  Egyptian  children  in  the  education  system  slightly 
improved.  Roma  and  Egyptian  children  have  also  continued  to  benefit  from  scholarships  and 
part-time education programmes, as well as free textbooks and transportation to remote schools. 
However,  segregation  in  schools  remains  an  issue  that  should  be  systematically  addressed.  In 
May  2022,  the  ECtHR  noted  that  Albanian  authorities  had  failed  to  take  steps  to  desegregate 
Roma and Egyptian children in a primary school in Korça and to implement the decision of the 
CPD  ordering  the  Ministry  of  Education  and  Sports  to  improve  the  situation.  The  overall 
employment  rate  of  Roma  and  Egyptians,  already  very  low,  continued  to  worsen  due  to  the 
COVID-19 pandemic. Efforts to safeguard and improve the socio-economic standards of Roma 
and Egyptian minorities, in line with the Poznan Declaration and the Western Balkan Investment 
framework should be put to the forefront. After two years of delay due to COVID-19 restrictions, 
the  Fifth  EU-Albania  Policy  Dialogue  on  Inclusion  of  Roma  and  Egyptian  Communities  (aka 
Roma Seminar) took place in April. Health insurance coverage for Roma and Egyptians remains 
low. Roma and Egyptians continue to benefit from a 5% quota through  implementation of the 
law  on  social  housing.  Access  to  personal  documents  has  improved  for  both  communities. 
However,  other  barriers  such  as  the  lack  of  digital  skills  and  access  to  technology  continue  to 
prevent Roma and Egyptian people from fully enjoying their rights and accessing  most public 
services,  which  are  now  digital  (healthcare,  education,  employment,  social  protection  etc.). 
Additional efforts and resources are required to accelerate the inclusion of Roma and Egyptians, 
tackle antigypsyism and discrimination as well as educational and spatial segregation, and reduce 
the gap with the rest of the population. 

On citizenship rights, the agency in charge of special citizenship programmes, set up under the 
authority of the Minister of  the  Interior,  has  been staffed during the reporting period with  four 
employees.  In  March  and  April  2022,  the  Council  of  Ministers  decided  to  create  two 
programmes for acquiring Albanian citizenship on the basis of special merit in the fields of arts, 
culture, education, science and sports, without requiring applicants to have a prior residency in 
Albania to be eligible. In late July 2022 the Council of Ministers adopted a decision allowing the 
Ministry  of  the  Interior  to  launch  a  tender  for  a  public-private  partnership  that  would  serve  to 
rollout an investors’ citizenship scheme (golden passports). Such a scheme would pose risks as 
regards security, money laundering, tax evasion, terrorist financing, corruption and infiltration by 
organised  crime,  and  would  be  incompatible  with  the  EU  acquis.  As  a  candidate  country, 
Albania should refrain from developing such a scheme. 

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. 
Member States also cooperate with Albania in the fight against organised crime, corruption and 
terrorism, and on judicial, police and custom matters all with the support of the EU Justice and 
Home Affairs Agencies, which have the most advanced level of engagement with Albania. 

Albania has some level of preparation/is moderately prepared to implement the EU acquis in 
the  area  of  Justice,  freedom  and  security.  Some  progress  was  made  overall.  The  Specialised 
Structures against Organised Crime and Corruption (SPAK) are building an initial track-record 
of  law  enforcement  cases  and  implementation  of  the  Financial  Action  Task  Force  (FATF) 
Action Plan has progressed significantly. The track-record on money-laundering and high-level 
corruption cases remains insufficient, financial investigations need to be further developed, and 

37 

 
 
the FATF Action Plan must be completed. Albania has continued its positive engagement with 
all  the  EU  Justice  and  Home  Affairs  agencies.  No  progress  was  made  in  referrals  to  asylum 
procedure  and  the  implementation  of  return  procedures  in  line  with  the  legal  framework.  The 
number  of  asylum  applications  lodged  by  Albanian  nationals  in  EU  Member  States  and 
Schengen-associated  countries remains lower than the pre-pandemic level, but  increased since 
the  summer  of  2021,  and  thus  still  requires  continuous  and  sustained  efforts.  Albania  should 
keep  addressing  the  phenomenon  of  unaccompanied  minors.  Albania’s  visa  policy  should  be 
aligned  with  the  EU’s.  Since  only  partial  progress  was  made  with  the  Commission’s  2021 
recommendations, these remain valid. 

In the coming year, Albania should in particular: 

  continue developing the systematic use of parallel financial investigations when dealing with 

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

  swiftly achieve the overdue completion of the action plan agreed with the Financial Action 
Task  Force  (FATF)  on  preventing  money  laundering  and  countering  terrorism  financing 
with a view to delist Albania from the FATF list of jurisdictions under increased monitoring 
for strategic deficiencies; 

  implement  the  asylum  law  and  resume  referrals  to  the  asylum  procedure;  align  return 
procedures  with  the  existing  legal  framework;  continue  to  address  the  issue  of  unfounded 
asylum  applications  and  fully  align  national  legislation  with  the  EU  list  of  visa-required 
third countries. 

Fight against organised crime 

The country has some level of preparation in implementing the EU acquis in this area. Some 
progress was made in meeting last year’s recommendations. The cooperation with EU Members 
States,  Europol  and  Eurojust  has  remained  strong  and  fruitful.  Albania  continued  to  show 
commitment to counter the production and trafficking of cannabis. Good progress was made with 
regards to the seizure and confiscation of assets linked to organised crime, and must continue in 
the future. Efforts also need to continue to ensure increased prosecutions and final convictions, 
especially  at  high-level.  Countering  cybercrime,  trafficking  in  human  beings  and  money 
laundering remain areas in which additional results are needed. All forms of child sexual abuse 
online should be criminalised and persecuted. 

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  EU  agencies,  including  Europol  and  Eurojust  and  increase  the 
proactive use of Europol’s Secure Information Exchange Network Application (SIENA) for 
the  exchange  of  information  and  its  practical  extension  to  additional  law  enforcement 
agencies; 

  establish without delay an asset recovery office in line with the EU acquis that is in charge of 

the identification and tracing of criminal assets, as foreseen by national legislation;   

  ensure that the Special Procecution Office and National Bureau of Investigation continue  to 

increasde operational access to all relevant databases.  

Institutional set-up and legal alignment 

38 

 
 
The  Albanian  State  Police  (ASP)  has  a  total  of  11 804  officers,  equivalent  to  260  officers  per 
100 000  inhabitants,  compared  with  an  EU  average  of  333  per  100  000  inhabitants  (Eurostat, 
2018-2020).  Staff  rotations  are  frequent,  affecting  the  ASP  operational  capacity.  After  the 
transfer  of  some  of  the  former  Serious  Crime  Prosecution  Office’s  competences  to  local 
prosecution offices, judicial police officers need  further training to investigate, in particular on 
financial  crime,  money  laundering  and  illicit  trafficking  offences.  Albania  should  provide  the 
relevant  institutions  with  adequate  resources  in  order  to  ensure  continuity  in  the  fight  against 
organised crime.  

The Specialised  Anti-corruption  and Organised Crime Structures (SPAK)  have started to  build 
track record of investigations and convictions on organised crime with 48 new investigations and  
128  convictions  (for  418  persons)  at  first  instance  and  41  final  convictions  (116  persons)  at 
appeal  level  in  2021.  The  Special  Prosecution  Office  now  has  17  prosecutors  in  place.  NBI 
currently  has  access  to  five  databases  and  has  engaged  in  bilateral  agreements  to  access  nine 
additional ones by the end of 2022. This trend should continue and NBI should be given access 
to all databases bringing value to their investigations.   

The  second  batch  of  investigators  for  the  National  Bureau  of  Investigation  (NBI)  –  32 
individuals - have been selected and vetted. They completed their four months of initial training 
and took up duty in June 2022, thus filling the 60 positions of NBI investigators. NBI has signed 
a  number  of  agreements  with  other  law  enforcement  agencies  allowing  in  particular  access  of 
NBI  investigators  to  databases  of  the  Albanian  State  Police  and  of  the  General  Directorate  for 
Taxation.  

The  legal  framework  was  further  aligned  with  the  EU  acquis,  especially  in  the  field  of  anti-
money laundering. The beneficial ownership (BO) register was further populated with data and 
comprised  96% of businesses and 86% of NGOs as of March 2022. However, no sanctions were 
applied for those who have not complied with this reporting obligation as the initial deadline for 
registration has been extended to end of June 2022 and the sanctions regime has been updated in 
the context of amendments made to the Law on the establishment of the BO register in March 
2022.  The  further  application  of  administrative  sanctions  in  case  of  violations  against  the 
transparency obligations by obliged entities needs to be monitored. The central register of bank 
accounts which became operational at the end of July 2021 has allowed for faster investigations.  

Albania progressed in  the harmonization of legislation  of firearms and  explosives  with  the EU 
acquis,  howeover  it  should  make  progress  in  the  establishment  of  necessary  infrastructure  and 
legal  basis  for  the  deactivation  of  firearms  and  allowing  the  voluntary  surrender  and/or 
legalization of firearms as an important means for reducing illegal possession of firearms.  

Albania  has  a  robust  legal  framework  for  confiscating  criminal  proceeds.  However,  the 
establishment of an asset recovery office, as required by the Law on the administration of seized 
and confiscated assets from 2019, is overdue.  

Albania still needs to adopt legislation targeting  unjustified wealth, for example by introducing 
the measure of extended confiscation and by introducing financial ceilings for cash transactions. 
Albania should further allow ‘suspicious transactions reports’ as evidence in court.  

The  use  of  surveillance  videos  by  police  forces  in  several  cases  has  demonstrated  the  need  to 
strengthen  legal  safeguards  and  ensure  legal  consistency.  Surveillance  data  have  been  used 
outside control from the judiciary. The right to privacy should be enforced.  

39 

 
 
While Albania is party to the Budapest Convention on cybercrime, it has yet to sign the Second 
Additional  Protocol  to  the  Convention  on  enhanced  co-operation  and  disclosure  of  electronic 
evidence, which has been opened for signature on 12 May 2022. In relation to negotiations for a 
United  Nations  convention  on  cybercrime  based  on  resolution  74/247  of  the  United  Nations 
General  Assembly,  Albania  demonstrated  voting  patterns  that  are  fully  convergent  with  the 
position taken by the EU and its Member States.  On the basis of the National  Cyber Security 
Strategy 2020-2025, new legal  and sub-legal  acts  on cybercrime remain to  be adopted.  In July 
2022, Albania was a victim of a large-scale cyberattack, which led to the temporary disruption of 
most public online services. (See also chapter 31 Foreign Security and Defense Policy) 

The strategic framework consists of the Strategy against organised and serious crimes for 2021-
2025 and its Action Plan for 2021-2022 as well as a new cross-cutting anti-corruption Strategy 
for  2015-2023  and  its  Action  Plan  for  2020-2023.  A  new  Action  Plan  2021-2023  for  the  fight 
against trafficking in human beings was adopted in November 2021.                                   

Implementation and enforcement capacity 

Albania  pursued  its  efforts  towards  building  a  track  record  on  fighting  organised  crime.  In 
2021, there were 41 new cases referred to prosecution (up from 22 in 2020); 14 indictments for a 
structured criminal group in 2021 (against 15 in 2020) and 19 cases were closed with 75 persons 
with final convictions at appeal level (compared with 13 persons in 2020).  

In  2021  the  Special  Prosecution  Office  (SPO)  initiated  304  criminal  proceedings  –  92  for 
organised crime and 212 for corruption, which represents an increase of 50% compared with the 
year before. During the same period, 31 criminal procedures for corruption and 15 procedures for 
organised  crime  were  sent  to  trial.  23(against  94  defendants)  convictions  at  first  instance  were 
reached by the special court and 52 (against 136 defendants) at  appeal level in 2021.  

As regards the track record for serious crimes, there was a further increase in 2021 with 3 913 
new  cases  referred  to  prosecution,  up  from  2  838  in  2020;  this  increase  is  mostly  due  to  an 
increase  of  referrals  of  drug  trafficking  cases  (3 078  referrals  in  2021  compared  with  2 086  in 
2020). New referrals for trafficking in human beings and money laundering remained at similar 
levels  in  2021,  compared  with  2020.  For  serious  crimes,  791  cases  resulted  in  indictments  in 
2021,  compared  with  581    in  2020.  In  2021,  there  were  375  people  with  final  convictions  for 
serious  crimes  compared  with  261  in  2020.  The  use  of  special  investigation  techniques  and 
proactive investigations should be stepped up. 

On  international  police  cooperation,  a  Europol  Liaison  Officer  was  deployed  in  Tirana  until 
the end of 2021 and allowed to  further develop  cooperation between Albania and EU Member 
States’  police  forces.  In  2021,  95  police  operations  were  carried  out  in  cooperation  with 
international  partners:  78  of  them  were  in  the  field  of  narcotics,  14  in  the  field  of  illicit 
trafficking, and 3 in the field of cybercrime.  

In  2021,  there  were  eight  joint  investigation  teams  (JITs)  with  the  involvement  of  Albanian 
partners  (4  in  2020),  resulting  in  30  joint  operational  meetings.  Albania  has  a  police  liaison 
officer in Europol and is planning to deploy a second one.  

Compared  with  2020,  in  2021  there  were  3 143  fewer  Secure  Information  Exchange  Network 
Application  (SIENA)  messages  shared  by  the  Albania  State  Police  with  international  partners, 
representing  a  35%  decrease.  This  drop  can  be  explained  by  the  re-centralisation  of  access  to 
SIENA channel within one Directorate of the Albanian State Police. An agreement was signed in 

40 

 
 
November 2021 between the Albanian State Police and the Special Prosecution Office  and the 
National  Bureau  of  Investigation  respectively  to  allow  them  to  access  SIENA.  A  similar 
agreement had been made in January 2021 between the Albanian State Police and the Customs. 
However,  these  connections  have  still  not  been  made  operational.  This  should  be  tackled  as 
matter  of  priority  by  relevant  actors  involved.  The  General  Directorate  for  Taxation  and  the 
Financial Intelligence Unit have not made the necessary steps to obtain access to SIENA.  

Albania  continued  to  cooperate  with  EU  police  services  through  the  European  Network  of 
Fugitive  Active  Search  Teams  (ENFAST),  in  which  it  has  an  observer’s  status.  The  country 
stepped up its participation in the European Multidisciplinary Platform against Criminal Threats 
(EMPACT). In 2022, Albania committed to participate in 120 operational actions in 10 of the 15 
EMPACT  operational  action  plans  (OAPs),  including  as  action-leader  for  one  and  co-action-
leader  for  two  operational  actions.  In  2021,  Albania  participated  in  61  EMPACT  operational 
actions, including as action leader in one. Albania appointed a National EMPACT Coordinator.  

Albania continued to participate actively in EMPACT Joint Action Days promoting cooperation 
in  against  firearms  trafficking,  the  smuggling  of  migrants  and  drugs  trafficking,  motor  vehicle 
crime, and trafficking in human beings and document fraud. 

The  cooperation  with  Interpol  has  continued  to  yield  positive  results.  The  flow  of  information 
sent via the Interpol global police communication channel 24/7 system to the National Contact 
Bureau  Interpol  Tirana  has  grown  by  14 %  in  2021.  The  cooperation  between  the  Albanian 
Security  Academy  and  the  EU  Agency  for  Law  Enforcement  Training  (CEPOL)  is  well 
established and based on a working arrangement. A dedicated contact point is in place. Albania 
continues  to  benefit    full  access  to  the  CEPOL  Exchange  Programme  and  to  participate  in  the 
CEPOL-led Partnership against Crime and Terrorism project in the Western Balkans, which runs 
until October 2023. 

On  domestic  operational  capacity,  legal  and  institutional  reforms  have  strengthened  the 
capacities  of  the  ASP’s  Operational  Directorate.  During  2021,  special  investigative  measures 
were used in 301 cases as regards money laundering investigations. Albania should continue to 
use and develop the use of special investigation techniques and proactive investigations. 

Law  enforcement  authorities’  response  to  organised  crime,  notably  the  investigation  of  large 
criminal networks, needs to be more proactive and systematic. Special units within the police and 
prosecution 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.  

The planned reform of the Security Academy for police training has not progressed. The frequent 
alterations  of  the  legal  framework  in  a  very  short  period  of  time  in  2021  suggest  that  the 
direction of such reform is still not clear.  

Financial  investigations  are  not  systematically  accompanying  criminal  proceedings  from  the 
start,  and  their  effectiveness  remains  limited.  Financial  investigation  techniques  of  police  and 
prosecutors still needs  improvement.  However,  progress  in asset seizures was notable in 2021. 
For 2021, Albania reported that close to EUR 50 million worth of assets were seized based on 
Article  287  of  the  Criminal  Code  “laundering  the  proceeds  of  crime  of  criminal  activity” 
(compared  with  EUR  15  million  in  2020),  and  EUR  21.5  million  worth  of  assets  were  seized 
based on the “anti-mafia law” (but none confiscated), compared with EUR 4.8 million in 2020 of 
which  150  000  had  been  confiscated.  For  the  first  6  months  of  2022,  assets  of  value  of  about 

41 

 
 
EUR  178  000  were  confiscated  in  money  laundering  cases.  For  organised  crime  in  2021,  the 
value  of  the  asset  seizures  was  high  at  EUR  28  million  (only  EUR  12  000  worth  of  assets 
confiscated),  but  confiscations  picked  up  in  the  first  half  of  2022  with  more  than  EUR  1.7 
million worth of confiscated assets. 

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

Albania  continues  to  be  a  coutry  of  origin,  transit  and  destination  of  trafficking  in  human 
beings, but the numbers of victims of trafficing of Albanian origin has significantly decreased in 
2020-2021  period.  Albanian  women  and  children  are  subject  to  trafficking  for  sexual 
exploitation, forced labour and criminal exploitation to neighbouring countries and EU Member 
States.  There  are  indications  of  increased  trafficking  of  women  and  children  for  sexual 
exploitation and begging in Albania. Children placed in institutions and children from the Roma 
and  Egyptian  communities  are  particularly  vulnerable  to  trafficking.  The  Prosecution’s  Office 
registered 10 new criminal proceedings for trafficking in human beings in 2021, compared to 28 
in  2020.  The  number  of  final  convictions  remained  very  low  with  two  cases  with  three  final 
convictions,  same  as  in  2020.  The  national  referral  mechanism  for  (potential)  victims  of 
trafficking  remained  functional.  Assistance  was  provided  in  all  cases.  In  2021,  159  victims  or 
potential  victims  were  identified  and  assisted,  compared  with  86  in  2020.  Identification  of 
potential  victims  remains  insufficient  within  the  Albanian  territory,  also  among  vulnerable 
migrants  entering  Albania.  The  national  Action  Plan  against  trafficking  in  persons  2021–2023 
was adopted in November 2021 as a part of the National Strategy against Organised Crime 2021-
2025.  Its  implementation  should  be  supported  by  adequate  funding.  NGO-run  shelters  remain 
underfunded.  Victim-centred  investigations  and  prosecutions  are  not  conducted  consistently. 
Anti-trafficking  efforts  should  increase,  in  particular  by  strengthening  the  child  protection 
system.  Successful  reintegration  remains  difficult  because  core  protection,  care  and  social 
insufficient.  Prevention  efforts,  especially  on  strategic 
services 
communication, should be steppedup. 

the  state  are 

from 

Dedicated  awareness  raising  campaigns  should  be  developed  to  target  communities  at  risk  of 
trafficking  in  human  beings.  The  hotline  116 006  for  victims  of  trafficking  should  be  made 
functional.  The  improved  legislative  framework  for  victims,  including  amendments  to  the 
Criminal  Procedural  Code,  is  yet  to  be  implemented.  Police,  prosecutors  and  judges  should 
receive dedicated training on these changes and the rights of victims.  

On trafficking in 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 39 new criminal cases registered 
at  the  Prosecutor’s  Office  in  2021,  compared  to  7  in  2020  and  17  persons  final  convictions  in 
2021,  a  similar  level  to  2020.  There  was  a  significantly  higher  number  of  seizures  inland 
compared  to  those  at  the  border.  The  exchange  of  information  among  different  national 
stakeholders  (law  enforcement  agencies,  prosecution  and  judiciary  system)  is  still  low,  which 
clearly jeopardizes the receipt of unified data from the police and prosecution office. 

42 

 
 
The track record on fighting cybercrime and internet fraud in 2021 remains limited with 79 
cases referred to the Prosecutor’s Office compared to 56 in 2020 with one final conviction, same 
as in 2020. Albania should establish a more effective law enforcement response focusing on the 
detection, traceability and prosecution of cyber criminals. Albania should raise awareness among 
the  prosecutors  to  enhance  the  use  of  the  24/7  points  of  contact  network  established  by  the 
Council of Europe Convention on Cybercrime. The ASP Cybercrime unit has a central forensic 
laboratory but should increase its capacity to deal with such cases.  Capacities for investigating 
and prosecuting crimes against children committed through the internet need to be strengthened. 
Legislative  amendments  to  criminalise  all  forms  of  online  child  sexual  abuse  remain  to  be 
adopted. 

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 trafficking 
in human beings. As regards money laundering, Albania is on the Financial Action Task Force 
(FATF)  list  of  jurisdictions  under  increased  monitoring  since  February  2020  and  in  spite  of 
significant  progress,  did  not  complete  the  implementation  of  the  FATF  Action  Plan  by  the 
February  2022  deadline.  Amendments  to  the  law  on  anti-money  laundering  aimed  at  aligning 
with  the  EU’s  fourth  and  fifth  anti-money  laundering  directives  were  adopted  in  Parliament  in 
December 2021. Both the centralised bank account register and the beneficial ownership register 
are now in place. The beneficial ownership registry has now been largely populated but sanctions 
have not yet been imposed on non-registered legal entities. Amendments to the law on notaries 
and a new law for the supervision of real estate agents were adopted in January 2022, as well as 
the necessary by-laws.. In July 2021, the General Prosecution introduced a dedicated electronic 
register  “PRESTO”  to  ensure  all  money  laundering  cases  are  tracked  with  a  view  to  increase 
effectiveness in the seizure and confiscation of criminal proceeds.  

The adoption of a tax  and criminal amnesty against the advice of the EU and Moneyval  could 
jeopardise  progress  in  this  area  –  see  also  chapter  4  –  Free  Movement  of  Capital  and  16  – 
Taxation. 

In  2021,  317  cases  of  money  laundering  were  referred  to  prosecutors,  against  280  in  2020. 
Despite  this  increase,  the  track  record  of  persons  with  final  convictions  for  money  laundering 
remains almost inexistent (four in 2020 and only one in 2021). 

The  ASP’s  witness  protection  programme  has  worked  satisfactorily.  In  2021,  24  witness 
protection operations were performed, compared to 19 in 2020. 

Cooperation in the field of 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  lead  bodies  in  the  fight  against  drug  trafficking  and  drug  abuse  respectively. 
Albania does not have a specific National drugs strategy. The Strategy against Organised Crime 
adopted in  December 2020 foresees to  improve the legislation on psychoactive substances and 
precursors and to update the list of prohibited psychoactive substances.  The establishment of a 
National Centre of Information on Drugs (national drug observatory) is overdue. Albania has not 
yet  established  a  national  early  warning  system  on  the  information  exchange  about  new 
psychoactive substances. Consultations for establishing the Early Warning System and updating 
the  legislation  regarding  psychoactive  substances  and  precursors  started.  Albania  continues  to 

43 

 
 
implement the working arrangement with the European Monitoring Centre for Drugs and Drug 
Addiction (EMCDDA) and makes efforts to increase its reporting capacity on drug-related issues 
in  line with  EMCDDA  guidelines/protocols and needs sufficient  resources  for this task.  Under 
the Strategy Against Organised Crime 2021-2025, the Albanian State Police approved in January 
2022  an  Action  Plan  for  2022  on  the  “Prevention  and  crackdown  on  criminal  activity  of 
cultivation of narcotics plants”.  

Implementation and enforcement capacity 

Drug trafficking is the most common form of serious criminal offence in Albania and the number 
of identified cases continued to increase. In 2021, the police identified 3 168 offences related to 
drug  cultivation,  production,  sale  and  trafficking  of  narcotics  compared  to  2  086  in  2020, 
involving 3 927 alleged offenders (3 205 in 2020). 

Albania’s  law  enforcement  authorities  have  maintained  a  good  level  of  cooperation  with  their 
counterparts  in  EU  Member  States  in  tackling  the  trafficking  of  narcotics.  During  2021,  212 
police  operations  in  the  field  of  narcotics  took  place,  out  of  which  78  saw  the  cooperation  of 
Albania’s international partners.  

National Police Operations 

Albania remains the only country in the region that allows monitoring by another country: since 
2013, Italy’s Ministry of Economy and Finance Enforcement Agency (Guardia di Finanza) has 
carried  out  aerial  surveys  to  detect  cannabis  plantations  in  Albania.  70  flight  missions  were 
operated by Guarda di Finanza in 2021, surveying 6.5 million km2 and allowing 92 500 plants 
to  be  found  and  destroyed,  which  represents  about  35%  increase  compared  with  2020.  In 
addition,  ASP  continued  monitoring  by  drones.  The  quantity  of  cannabis  seized  in  Albania 
continued to decline, from about 4.3 tons in 2020 to 3.6 tons in 2021. However, the number of 
cannabis plants seized increased from 137 000 to 166 000 between 2020 and 2021.  

All other drugs saw an increase in amounts seized in 2021 compared to 2020: from 1 kg to 208 
kg of hashish, from 51 kg to 8 1kg of heroin and from 6 kg to 725 kg of cocaine.  

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) is not yet established. Albania needs to establish the legal 
base for an appropriate process for the destruction of precursors.  

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. 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. The authorities 
should  ensure  effective  implementation  of  targeted  financial  sanctions  mandated  by  the  UN 
Security  Council,  inter  alia  by  enhancing  the  involvement  of  financial  institutions  and  other 
relevant actors and through effective inspections, in line with the FATF action plan. The work on 
preventing  risks  of  terrorism  financing  in  the  case  of  instrumentalisation  of  non-profit 
organisations by radicalised groups  needs to continue. 

44 

 
 
The  national  cross-sector  counter-terrorism  strategy  and  action  plan  from  December  2020 
continue to be implemented. The national Action Plan on Countering Violent Extremism (CVE) 
is outdated and its action plan has expired and Albania should adopt the new strategy and action 
plan as a matter of priority. The new strategy should be fully aligned with the EU policy and key 
principles on CVE.  

Albania has continued to make good progress in implementing the bilateral arrangement with the 
EU on operationalising the Joint Action Plan on Counter-Terrorism for the Western Balkans.  

The    Counter-Terrorism  Directorate  of  the  Albanian  State  Police  is  the  lead  body  on  counter-
terrorism,  under  the  jurisdiction  of  the  Special  Prosecution  Office  and  Special  Courts.  State 
Intelligence  Service  and  the  Defence  Intelligence  and  Security  Agency  are  also  active  in  the 
field.  The  ASP’s  community  policing  personnel  is  involved  in  preventive  and  early-warning 
efforts.  The  Coordination  Centre  for  Countering  Violent  Extremism  is  in  charge  of  capacity-
building,  coordinating  CVE  activities  across  government  institutions  and  overseeing  the 
implementation  of  the  national  CVE  strategy.  The  CVE  Coordination  Centre  was  moved  from 
the Prime Minister’s Office to the Ministry of Interior in April 2022. Albania should ensure that 
the new set-up provides for the continuity of the centre’s work and that the centre will continue 
to  have  the  authority  and  resources  to  carry  out  its  important  inter-ministerial  coordination 
function. The work done in the last years to improve the capacities to prevent Violent Extremism 
at  local  level  should  be  continued;  local  communities  and  local  security  councils  should  be 
further  empowered  in  their  preventive  capacities.  Measures  and  capacities  to  address  terrorist 
content online should be improved. 

Implementation and enforcement capacity 

The  police  referred  ten  cases  of  terrorist  offences  and  financing  of  terrorism  to  the  Special 
Prosecution  Office  and  the  judicial  district  prosecution  offices  in  2021,  involding  11  suspects. 
There  were  no  court  convictions  for  terrorist  offences  or  terrorism  financing  in  2021.  The 
authorities repatriated ten adult women and 27 minors from the camps in Syria in October 2020, 
August  2021  and  May  2022.  The  CVE  Coordination  Centre  and  the  ASP’s  Counter-Terrorism 
Directorate  have  led  the  inter-institutional  work  on  their  reintegration  and  rehabilitation  in  an 
effective  and  professional  manner,  with  the  Counter-Terrorism  Directorate  also  carrying  out 
criminal investigations and ensuring monitoring. No criminal charges have been brought against 
any  of the  returnees  so far.  In total,  81 Albanian nationals  returned to  Albania from Syria and 
Iraq.  Around  35  to  45  Albanian  nationals  are  estimated  to  remain  in  Syria;  at  least  45  are 
believed  to  have  died  in  the  conflict  zone.  The  authorities  continue  to  seek  to  return  the 
remaining  women  and  children  from  the  camps  in  Syria.  The  CVE  Coordination  Centre  has 
engaged  in  capacity  building  at  local  and  national  level  on  preventing  and  countering  violent 
extremism, including in cooperation with civil society. 

Regional  cooperation  and  the  exchange  of  sensitive  information  with  international  partners 
remains satisfactory. While progress was made, Albania should make more proactive use of the 
Europol European Counter-Terrorism Centre’s communication platforms products, services and 
capabilities. It should continue to collaborate with the Europol Internet Referral Unit. It actively 
participated in the implementation of the Western Balkan counter-terrorism initiative, under the 
Integrative Internal Security Governance (IISG).  

Albania should continue to focus on the reintegration and rehabilitation of returnees from Syria, 
and  on  the  investigation  and  prosecution  of  those  suspected  of  criminal  offences.  It  should 

45 

 
 
strengthen the case management and referral mechanisms for returnees and individuals at risk of 
radicalisation.  Prison  radicalisation  and  online  terrorist  content  continue  to  require  attention. 
Albania should also continue to investigate links between organised crime and terrorism, as well 
as ensure the alignment with the EU legislation on explosive precursors and update the indicators 
for Firearms Focal Point on the base of Council recommendations of July 2021. 

Judicial cooperation in criminal and civil matters 

In  2021,  the  Albanian  Liaison  Office  to  Eurojust  registered  21  cases  at  the  request  of  the 
Albanian  authorities,  16  of  which  have  been  completed.  51  new  cases  have  been  opened  with 
Albania  Liaison  Office  at  the  request  of  EU  Member  States  competent  authorites.  Five  new 
Agreements for setting-up Joint Investigation Teams (JITs) were concluded.  

Amendments  to  the  Law  on  judicial  cooperation  in  criminal  matters  with  foreign  jurisdictions 
adopted in July 2021, have proved useful to facilitate the setting-up of joint investigation teams, 
but further efforts will be needed to align the national legislation with the EU acquis.  

A bilateral extradition Agreement was signed between Albania and Spain in September 2021 and 
entered into force in February 2022. 

On judicial cooperation in civil matters, in 2021 Albania received 273 requests for mutual legal 
assistance and sent out 97 requests, numbers similar to 2020. On judicial cooperation in criminal 
matters,  in  2021  Albania  received  913  requests  and  sent  out  870  requests  (981  and  1 182  in 
2020).  

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.  

Legal and irregular migration  

Institutional set-up and legal alignment 

The  Ministry  of  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 
at the Ministry of Interior. The Ombudsman and the child protection unit under the Ministry for 
health and social affairs play an important role in monitoring and providing services to incoming 
migrants.  The  National  Agency  for  Employment  and  Skills  also  covers  services,  employment 
programmes and vocational training programmes for foreigners, stateless persons and refugees.  

The legal framework on migration is largely aligned with the EU acquis but needs updating in 
line with recent developments on the EU side. Albania has a readmission agreement with the EU 
and  implementing  protocols  are  in  place  with  12  Member  States.  Albania  has  reiterated  its 
interest to conclude an implementing protocol with Greece. Draft readmission agreements have 
been sent by the Albanian authorities to several countries of origin, so far to no avail. New draft 
of  readmission  agreements  was  sent  to  Egypt.  Drafts  have  also  been  prepared  to  be  sent  to 
Tunisia  and  Bangladesh.  In  2022,  negotiations  started  on  a  Bilateral  Partnership  Agreement  in 
the field of migration with India, which would include provisions on readmission.   

46 

 
 
The  implementation  of  the  national  migration  strategy  and  action  plan  for  2019-2022  has 
continued, with  monitoring reports being issued  regularly  and  a mid-term  review conducted in 
2021 with IOM support.  

Implementation and enforcement capacity 
In 2021, 10 1028 irregular migrants were detected in the country, compared to almost 12 000 in 
2020. The nationals most represented were from Syria (52%) and Afghanistan (14%). 

Reception  capacities  have  increased  in  2021  with  the  refurbishment  of  Babrru  National 
Reception Center allowing for up to 250 beds, and a dedicated family friendly space. The only 
closed  reception  center  for  third-country  nationals  who  are  the  subject  of  return  procedures  in 
Karreç, with a total capacity of 150 beds, still requires urgent refurbishment. The total capacity 
of  all  reception  facilities,  State-run,  NGO-run,  or  run  by  local  municipalities  is  approximately 
580 beds. Albania does not have separate facilities for unaccompanied minors. The Ministry of 
Interior has updated its contingency plan for a possible substantial number of arrivals of migrants 
and asylum seekers, but the plan has not  yet been adopted at Council of Minister level. Such a 
plan needs to include appropriate budget allocations and clear modalities for its triggering. The 
case management of unaccompanied children is not handled as an integrated process, as required 
by the law on asylum.  

The  overall  staffing  of  the  ASP’s  Department  for  Border  and  Migration  remains  limited,  with 
1 663  employees,  an  increase  of  25  staff  compared  to  2020.  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. The high turnover of officers continues and should be addressed. Border 
and Migration Police officers should increase their capacities to identify refugees  and migrants 
with specific needs. Coordination with child protection and anti-trafficking departments should 
also improve. Reports of refugees and migrants being returned to Greece outside a legal and/or 
procedural  framework,  without  adequate  pre-screening,  have  continued  over  the  reporting 
period.  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 including as 
regards fundamental rights. 

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. In 
2021,  22  025  return  decisions  were  issued  to  Albanian  nationals  and  8  555  were  effectively 
returned.  Cooperation  between  Albania  and  Frontex  on  return  operations  is  very  good.  On  25 
January 2022, Frontex organised in Albania its first fully-fledged Frontex-led return operations, 
returning  approximately  50  Albanian  irregular  migrants  from  several  EU  Member  States  with 
support of Albanian authorities  

In 2021, there were two cases of voluntary return to countries of origin. 

In  August  2021,  Albania  started  temporarily  hosting  Afghan  evacuees.  Up  to  2 500  have  been 
hosted in open facilities near the coast line in Albania, with the support of international NGOs. 
All  Afghan  evacuees  applied  for  temporary  protection  in  the  country,  granted  to  them  by  a 
Council of Ministers decision adopted on 25 August 2021. Most of them have now been resettled 
to other countries, mostly to Canada (1374), US (315), and EU countries (73).  

8 UNHCR figures 

47 

 
 
                                                           
As  of  March  2022,  the  Albanian  authorities  granted  the  right  of  residence  in  Albania,  for  a 
period of up to one year without the need of obtaining residence permit, or the right to request 
temporary  protection  status  to  refugees  from  Ukraine.  From  24  February  8  763  Ukrainian 
citizens have entered Albania while 6 991 have left. All have been hosted in Albania in private 
accomodation. None of them have applied to benefit from temporary protection. Only a few have 
applied for asylum in the country, but all of them withdrew their request.  

Asylum 

Institutional set-up and legal alignment 

The  law  on  asylum  is  largely  aligned  with  the  EU  acquis.  Efforts  have  been  focused  on 
developing by-laws for its implementation with all 15 by-laws adopted. Efforts should continue 
and appropriate consultations should be held with the European Union Asylum Agency (EUAA) 
on the  practical guidelines for their implementation. Although the law grants asylum seekers the 
right  to  access  public  services  at  the  same  level  as  Albanian  nationals,  lack  of  alignment  with 
other legal acts prevents an effective access. An efficient and quality implementation of the law 
remains to be achieved and would require additional administrative capacities.  

Albania has the necessary institutions in place to handle asylum claims. Administrative appeals 
may be lodged with the National Commission for Refugees and Asylum.  

Implementation and enforcement capacity 

Albania continues to be primarily a transit country, considered as such both among the refugee 
and  migrant  community  and  by  the  Albanian  authorities.  In  2021,  10 102  migrants9  were 
apprehended  in  the  country,  compared  with  almost  12 000  in  2020.  In  2021,  only  85  persons 
made a claim for asylum with the Border and Migration Police, compared with 2 102 persons in 
2020, whereas more than 80 % of all arrivals in 2021 were self-reportedly from countries with 
high  protection  rates.  This  confirmed  the  change  of  practice  noticed  since  the  reopening  of 
borders in June 2020, by which referrals to asylum procedures  are not implemented. Access to 
asylum procedures should be restored.  

As most asylum seekers leave the country after a few days, most asylum claims are not pursued. 
In  2021,  nine  applications  were  formally  lodged.  No  applicant  was  granted  refugee  status,  but 
seven were granted subsidiary protection. 

On  asylum  procedure,  the  capacities  of  the  Border  and  Migration  Police  to  identify  persons 
with specific needs remain insufficient. The Directorate for Asylum, Foreigners and Citizenship 
also  needs  capacity  and  training  assessing  individual  claims,  particularly  the  information  on 
country of origin and cases involving vulnerable people. The lack of qualified interpreters at the 
temporary receptions centers during and after pre-screening should be addressed and the hiring 
of female interpreters encouraged to increase reporting on violence and on potential trafficking 
cases. A pre-screening instruction which is under revision to ensure coherence with the existing 
legal framework should be adopted swiftly.  

Shortcomings  have  remained  in  the  implementation  of  return  procedures  at  the  border  with 
Greece and should be addressed.  

9 UNHCR data 

48 

 
 
                                                           
The increased monitoring by the Ombudsperson’s Office in border areas and their engagement 
with  the  Border  and  Migration  Police  on  their  findings  reinforces  Albania’s  rights-based 
approach towards asylum seekers.  

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. 

Visa policy 
The Commission’s August 2021 fourth report under the visa suspension mechanism10 concluded 
that Albania continues to meet the visa liberalisation requirements. Abania’s visa policy is still 
not fully aligned with the EU’s, as regards the list of countries whose nationals require an entry 
visa.  Albania  has  all  year  round  visa-free  arrangements  with  Armenia,  Azerbaijan,  Belarus, 
China,  Guyana,  Kazakhstan,  Kuwait,  and  Türkiye,  which  are  not  on  the  EU’s  visa-free  list.  In 
December 2021, Albania revised the decision to grant visa-free access to third country nationals 
who are residents in the United Arab Emirates (UAE) by allowing access only to those with a ten 
year residence permit in UAE Nationals from Bahrein, Egypt, India, Oman, Qatar, Russia, Saudi 
Arabia  and  Thailand,  who  need  a  visa  to  travel  into  the  EU,  still  benefit  from  seasonal  visa 
lifting.  This  was  extended  from  30  of  September  until  the  end  of  2022,  except  for  Egypt  and 
Russia. Overall, the practice of temporary lifting visa requirement is in not in line with the EU 
acquis.  

According  to  Eurostat  data,  the  number  of  Albanian  citizens  lodging  asylum  requests  in  EU 
Member States increased by 63% in 2021 compared to 2020, from 6 925 to 11 300 applications, 
but remains below the pre-pandemic level (20 415 in 2019).  This sharp increasing trend started 
in July 2021, corresponding to the lifting of travel restrictions to the EU linked to the COVID-19 
pandemic.  This  increasing  trend  continued  in  the  first  half  of  2022  with  4  995  applications 
lodged in the period January-May. The recognition rate of asylum increased from 4.5% in 2020 
to 5.8% in 2021 (5.2% in 2020 and 9.0% in 2021 including humanitarian status). 

In 2021, 4 611 Albanian nationals  were refused  permission  to  exit Albanian territory at  border 
crossings compared to  6 180 in  2020. This  decrease by 25% can be attributed to  the increased 
awareness  about  these  measures  among  the  population.  Beyond  thorough  border  checks, 
awareness-raising  campaigns  on  rights  and  obligations  under  the  visa-free  regime,  and 
the 
the  underlying  reasons,  dialogue  and  structured  cooperation 
addressing 
implementation  of  action  plans  with  the  most  affected  EU  countries,  should  continue.  The 
Commission  is  monitoring  the  trend  very  closely  in  the  framework  of  the  visa  suspenssion 
mechanism. 

through 

Unaccompanied  minors  travelling  from  Albania  to  EU  Member  States  remain  a  source  of 
concern. Greater attention should be given to the successful reintegration of returnees, especially 
the most vulnerable, such as Roma and Egyptians, where no notable actions were taken in 2021. 
Migration  counters  established  in  municipalities  should  be  formalised  and  strengthened  to 
facilitate  their  reintegration  and  more  police  officers  should  continue  to  be  trained  to  escort 
returnees to Albania. 

10 COM(2021) 302 final and SWD(2021) 206 final 

49 

 
 
                                                           
Schengen and external borders 

Institutional set-up and legal alignment 

The Law on Border Control introducing Advance Passenger Information  and Passenger Name 
Record (PNR) in Albanian legislation is not in line with the EU acquis. A passenger information 
unit was established in February 2022 within the Albanian State Police. The Albanian authorities 
are  aware  that  the  transfer  of  PNR  data  from  the  EU  to  Albania  is  not  possible  in  the  current 
legal framework. The legislative framework for the management of Albania’s external borders 
is  not  yet  fully  in  line  with  EU  standards,  while  its  IBM  strategy  2021-2027  and  action  plan 
2021–2023 are broadly aligned.  

Implementation and enforcement capacity 

The  EU  is  assisting  Albania  in  building  an  integrated  radar  system  for  the  surveillance  of  the 
‘blue’  (sea)  border.  Albania  has  committed  to  invest  significant  resources  to  modernise  border 
infrastructure  and  improve  surveillance  of  the  ‘green’  (land)  and  ‘blue’  borders.  The  total 
information management system database system is connected with Interpol’s system, enabling 
the border police to identify internationally wanted persons, stolen vehicles and lost/stolen travel 
documents.  Albania  should  establish  a  risk-analysis  system  based  on  the  Common  Integrated 
Risk Analysis model  developed by Frontex. 

Inter-agency  cooperation  continued  to  improve.  The  Navy,  Coast  Guard  and  Border  and 
Migration  Police  conducted  regular  joint,  integrated  ‘blue’  border  patrols.  The  Albanian  State 
Police and the General Directorate of Customs signed in April 2022 a Joint Order to strengthen 
joint inspections with a view to crack down on narcotics trafficking, smuggling and other cross-
border crimes. The border police’s investigative powers need to be strengthened, in particular to 
detect cases of people-smuggling and trafficking in human beings.  

Albania  participated  actively  in  the  Western  Balkan  Risk-Analysis  Network.  Operational 
cooperation  with  neighbouring  countries  continued  to  be  good,  while  bilateral  cooperation 
should be further stepped up. The agreement with Greece on the establishment of a police and 
customs cooperation centre on the Greek side of the border was ratified by Albania in February 
2022. Albania has to ensure that the US-sponsored PISCES system for personal identification is 
operated  in  line  with  the  EU  acquis  on  personal  data  protection.  In  2021,  the  Department  for 
Border  and  Migration  issued  16  serious  disciplinary  measures  against  border  police  for 
corruption and abuse of office, slightly more than in 2020. 

50 

 
 
    
 
 
 
 
 
 
 
2.3. ECONOMIC CRITERIA 

'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 Türkiye at ministerial level in 
May each year. 

2.3.1. The existence of a functioning market economy 

Albania has made good progress and is moderately prepared for developing a functioning 
market  economy.  Supported  by  a  broadly  appropriate  policy  mix,  the  Albanian  economy 
showed resilience and rebounded faster than expected in 2021, making up for most economic 
losses caused by the COVID-19 pandemic. Russia’s war against Ukraine has hit the Albanian 
economy indirectly through higher commodity prices and lower growth in its main EU trading 
partners, but  did  not  translate into a negative impact  on  growth in  the  first  quarter of 2022. 
However, risks are clearly on the downside ahead. The budget deficit and the public debt ratio 
increased  less  than  projected  in  2021,  but  fiscal  space  remains  limited,  heightening  the 

51 

Table 1.1:201920202021Albania - Key economic figuresGDP per capita (% of EU-27 in PPS)1)30303032Real GDP growth 2.72.1-3.58.5Economic activity rate of the population aged 15-64 (%), total64.469.669.169.3      female55.461.761.261.4      male73.877.677.177.3Unemployment rate of the population aged 15-64 (%), total15.712.012.212.1      female14.411.812.412.4      male16.712.112.111.8Employment of the population aged 15-64 (annual growth %)3.02.4-1.9-0.4Nominal wages (annual growth %)2)2.6*3.82.76.3Consumer price index (annual growth %)1.81.41.62.0Exchange rate against EUR136.5123.0123.7122.5Current account balance (% of GDP)-8.4-7.9-8.7-7.7Net foreign direct investment, FDI (% of GDP)8.57.56.76.4General government balance (% of GDP)-3.3-1.9-6.7-4.5General government debt (% of GDP)69.865.874.573.2Notes: 1) Eurostat2) average gross monthly wages, average of 2015-2018 Source: national sources2013-18 average 
 
 
country’s  vulnerability  to  external  shocks.  There  was  good  progress  on  revenue-related 
reforms,  but  weaknesses  persist  on  investment  expenditure  planning  and  execution.  The 
regular use of normative acts for frequent revisions to the budget and the budget law weakens 
fiscal credibility. Inflation has increased to above the target, which prompted the central bank 
to  raise the policy rate  in  several  steps..  The business environment  benefitted from  a higher 
level of digitalisation of the public services. This also contributes to the formalisation of the 
economy,  along  with  the  rising  financial  inclusion  and  successful  activities  to  reduce 
underreported labour, although a large part of the economy remained informal. Consultations 
of  the  public  by  the  government  did  not  improve  significantly.  As  some  of  last  year’s 
recommendations  to  improve  the  functioning  of  the  market  economy  were  not  fully 
implemented, in the coming year Albania should in particular: 

  provided  the  economic  recovery  is  well  entrenched,  foresee  in  the  medium-term  fiscal 
plan a gradual reduction of the public debt ratio and arrears, using the regular legislative 
process when amending the budget,  

  implement the reform of public investment management procedures; 

  begin implementing the medium-term revenue strategy after broad public consultation and 

based on an operational plan. 

Economic governance 

Albania  remained  committed  to  stability-oriented  policies  but  some  weaknesses  in 
economic governance persist.  Following the sharp increase in Albania’s public debt and deficit 
in  2020,  due  to  the  COVID-19  pandemic,  the  IMF  and  the  EU  provided  financial  support  to 
cover financing needs. EU support included EUR 180 million macro-financial assistance, which 
were fully disbursed in 2021 following Albania’s fulfilment of the policy conditions attached to 
the  assistance,  including  public  finance,  good  governance  and  social  policy.  The  government 
used normative acts instead of the regular legislative procedure (i) to amend the 2021 and 2022 
budgets multiple times, (ii) to suspend the fiscal rule requiring a decreasing debt ratio and (iii) to 
postpone  the  new  primary  balance  rule  to  2024.  This  practice,  which  is  contrary  to  jointly 
adopted  policy  guidance,  which  Albania  partially  implemented.  Post-earthquake  reconstruction 
progressed. 

Albania submitted its Economic Reform Programme 2022-2024 to the European Commission at 
the end of January 2022, in  which it confirmed its commitment to  return to  its pre COVID-19 
fiscal  consolidation  path  as  soon  as  the  economic  recovery  allows,  and  underlined  its  plan  to 
achieve a positive primary  balance in  2024.  In  March  and September 2022 Albania revised its 
budget  to  accommodate  the  high  cost  of  energy  subsidies  and  the  social  support  extended  in 
relation to the price hikes in the wake of the impact of the Russian aggression against Ukraine. 

Macroeconomic stability 

the 

COVID-19 

showed  resilience 
Albania’s  economy 
pandemic. 
during 
real  GDP  growth 
Previously,  Albania’s 
(2013-18).  Following  a 
averaged  2.7 % 
smaller-than-projected  contraction  of  3.5 % 
in  2020,  a  stronger-than-expected  economic 

52 

 
 
recovery  pushed  real  growth  of  GDP  to  8.3 %  in  2021.  Most  expenditure  categories  exceeded 
their  2019  levels,  driven  by  both  public  and  private  investment,  private  consumption,  and 
external demand. The continuing post-earthquake reconstruction and a stable and liquid financial 
sector  supported  exceptionally  strong  investment  growth  (negative  since  2019).  Increasing 
employment in the second half of 2021 helped the labour market to recover almost all the ground 
lost  during  the  COVID-19  pandemic.  This,  coupled  with  increasing  wages,  fuelled  private 
consumption. Goods exports, mainly electricity and construction material, exceeded 2019 levels, 
while  exports  of  services  remained  slightly  below  their  pre-pandemic  level,  despite  growing 
tourism  from  neighbouring  countries.  Growth  in  investment  and  consumption  drove  a  rise  in 
goods imports, leading to a negative real growth contribution of net exports in 2021.  

Russia’s  war  against  Ukraine  is  indirectly  hitting  Albania’s  economy.  The  economic 
importance  of  rainfall-dependent  hydroelectric  production  remains  a  key  contributor  to  the 
volatility  to  GDP  growth.  A  real  growth  rate  of  6%  in  the  first  quarter  of  2022  showed  the 
continuing  recovery  of  the  Albanian  economy,  supported  by  private  consumption,  exports  and 
investment. Business and consumer confidence remained upbeat in April and May, despite even 
more  strongly  increasing  transport  and  food  prices.  The  price  hikes  have  prompted  the 
government  to  provide  about  2%  of  GDP  in  support  for  pensioners,  vulnerable  households, 
farmers and transport companies in addition to the general support to keep regulated electricity 
prices stable. Eurostat data shows that convergence to EU income levels has been slow, with per-
capita GDP (at  purchasing power parity)  remaining  at  30  % of the EU average until  2020  and 
increasing to 32 % in 2021. 

A smaller trade deficit, coupled with high GDP growth and rebounding remittances, helped 
to  narrow  the  current  account  deficit  in  2021.  In  2016-2020,  rising  service  exports  and 
remittances helped the current-account deficit to narrow from an average 10.9 % of GDP in the 
five-year  period  2010-2014  to  an  average  of  7.7 %  in  the  2015-2019  period.  Following  the 
widening  of  the  current  account  deficit  in 
2020  to  8.7 %  of  GDP,  due  to  the  drop  in 
the  export  of  services  (i.e.,  tourism)  and 
private transfers from Albanians abroad, the 
rebound  in  exports  and  remittances,  in 
combination  with 
high  GDP 
denominator,  reduced  the  current  account 
deficit by 1 ppt.  to  7.7 % of  GDP in  2021. 
In  the  first  quarter  of  2022,  the  same 
elements  continued  to  support  the  further 
decrease  of  the  4-quarter  moving  average 
current  account  deficit  to  about  7 %  of 
GDP.  

the 

FDI  remained  below  pre-crisis  levels  and  debt-creating  capital  flows  continued  to 
contribute to financing the current account deficit. Foreign direct investment (FDI) inflows, 
which already started to decrease from their peak levels above 8 % of GDP in 2015-2019, due to 
the  completion  of  a  few  large  energy  projects,  fell  to  6.4%  of  GDP  in  2021,  but  it  started  to 
recover in the second half of 2021, and rose by 24% year-on-year in the first quarter of 2022. In 
the  five  years  until  2020,  FDI  fully  financed  the  current  account  deficit,  but  since  2020  debt-
creating inflows contributed to around 15 % of its financing. These flows included two EUR 650 

53 

 
 
million sovereign Eurobonds issued in 2020 and 2021, the latter  lasting 10  years11, the longest 
maturity  bond  issued  so  far.    External  debt,  mostly  consisting  of  long-term  government  debt, 
climbed from 60 % end-2019 to 64.3% of GDP in 2020, then fell to 63.1 % in 2021 (due to the 
high GDP). Foreign exchange reserves rose from EUR 3.9 billion in 2020 to EUR 4.9 billion in 
2021 and continued to increase in 2022, supported by interventions of the Bank of Albania. Their 
import coverage increased from an average equivalent of about 7 months in 2015-2019 to almost 
9  months  of  imports  in  2021  and  continued  to  provide  an  adequate  safeguard  against  external 
shocks in the first quarter of 2022. In 2021 the Albanian lek’s exchange rate to the euro returned 
to  its  pre-2020  trend  of  continuous  appreciation,  albeit  at  a  very  moderate  pace.  Except  for  a 
short period of volatility in March 2022 the moderate appreciation to the euro continued in 2022, 
whereas the Lek depreciated to the USD by 10.8 % year-on-year in June 2022. 

Annual inflation has accelerated sharply  since end-2021 and led the central  bank to start 
raising its policy rate. The monetary and exchange rate policy framework has not changed. The 
Bank  of  Albania  (BoA),  which  operates  under  an  inflation-targeting  regime  (with  a  target  of 
3 %) coupled with  a floating  exchange  rate,  supported the  economy  with  its  record low policy 
rate of 0.5 % (set in March 2020) during the pandemic-induced slowdown and the large gap to 
the  inflation  target.  Annual  inflation  averaged  1.8 %  over  the  last  five  years,  edging  slightly 
higher to 2 % in 2021, but still below the BoA’s target. Prices rises for food and transport pushed 
the inflation rate towards the central bank’s target at the end of 2021 and accelerated strongly in 
the  first  half  of  2022,  in  particular  as  of  March,  pushing  the  overall  inflation  rate  to  a  historic 
high of 7.5 % in July, more than double the target. In response to the persisting price pressures, 
the central bank began a gradual policy normalisation in March 2022 and raised the policy rate in 
several steps to 1.75% in August 2022.  

High GDP and revenue growth helped to 
lower fiscal deficit and public debt ratios 
in  2021.  The  fiscal  deficit  remained  below 
2 %  of  GDP  in  2015-19,  supported  by 
increasing  revenue  and  decreasing  interest 
expenditure,  but  increased  sharply  in  2020 
to  6.8 %  of  GDP,  due  to  the  impact  of  the 
pandemic.  The  strong  economic  rebound 
fostered 
revenue 
higher-than-expected 
growth  (19.3 %  y-o-y )  in  2021,  which, 
along  with  high  GDP  growth,  and  lower-
than-planned public investment spending, helped to reduce the public deficit to 4.5 % of GDP, 2 
pps. lower than expected. The high GDP denominator also led to a decrease of the public debt 
ratio  from  its  peak  of  74.5 %  in  2020  to  73.1 %  in  2021,  compared  to  its  pre-crisis  level  of 
65.8 %  in  2019.  Revenue  growth  remained  strong  in  the  first  half  of  2022,  while  expenditure 
lagged slightly behind  plan resulting in  a fiscal  surplus in June 2022.   Revenue reforms have 
investment  management  persist.  Revenue 
progressed,  but  weaknesses 
administration  reforms  in  2021  erased  the  high  VAT  refund  arrears,  sped  up  the  VAT  refund 
process, and increased collection efficiency. Public consultations on the long foreseen medium-
term revenue strategy (MTRS) began at the end of 2021 but were suspended by the government 
in March 2022, reportedly because of the impact of the Russian invasion of Ukraine. The MTRS 

in  public 

11 With an initial yield of 3.75%, just 0.1 pp. higher than for the 7-year maturity Eurobond issued in June 2020. 

54 

 
 
                                                           
aims to  increase revenue and collection effectiveness,  reduce  exemptions, and make tax policy 
more  reliable  and  balanced  in  its  distributional  effects.  It  should  also  contribute  to  reducing 
informality  and  the  use  of  cash  and  overall  will  be  a  crucial  tool  for  a  sustainable,  growth-
friendly  increase  in  revenue  needed  to  finance  the  large  spending  needs  on  health  social 
protection,  education  and  research.  Although  investment  spending  has  increased  strongly  since 
2017, it lagged behind the frequently revised plans, and remained very much backloaded, with a 
third of total capital expenditure in 2021 executed in December alone. This signals a continuing 
weakness  in  public  investment  management,  which,  in  combination  with  the  related  contract 
arrears and the frequent budget revisions by normative act, weakens the credibility of the budget.   

The macroeconomic policy mix supported the strong recovery. The original fiscal plans for 
2021, and the decision to advance the Eurobond placement to pre-finance the 2022 deficit, were 
prudent.  Good  revenue  performance  and  the  decrease  of  the  still  high  debt  ratio  have  slightly 
improved the limited fiscal space to deal with the initial economic fallout of Russia’s invasion of 
Ukraine, but tightening financing conditions may restrict the budgetary room for a more active 
fiscal policy. The BoA’s continuation of a very loose monetary policy stance until March 2022 
was  appropriate  in  view  of  the  persistently  below-target  inflation  rate  and  supported  the 
economic  recovery.  Its  provision  of  liquidity  and  its  temporary  money  market  intervention 
supported financial and external stability. The policy response to the in 2022 has so far proven 
effective in limiting the increase in the inflation rate compared to regional peers. However, this is 
also  due to  the costly  general  electricity, support for the energy sector which has constituted a 
volatile  and  non-transparent  fiscal  liability  already  before  the  recent  energy  price  increase 
because  of  the  rainfall-dependency  of  Albania’s  hydro-electricity  production  and  low  energy 
efficiency.  

Functioning of product markets  

Business environment 

A higher level of digitalisation supports the formalisation of the Albanian economy. Pushed 
by  the  COVID-19  pandemic,  e-learning,  digital  training  services  and  e-commerce  are  rising 
among  businesses.  More  online  public  and  financial  services  are  being  made  available  as  the 
government  aims  to  offer  95  %  of  public  services  online  (though  the  rapid  shift  has  raised 
questions  on  delivery  and  accesibilty).  This  goes  hand  in  hand  with  efforts  of  the  Bank  of 
Albania and commercial banks to increase the digitalisation of payment services, which already 
strongly increased the use of payment cards.Efforts to digitalise the Albanian cadastre within the 
next two years are ongoing, however so far delays and discrepancies regarding the information 
on  property  deeds  persist.  In  line  with  the  recommendations  of  FATF/ICRG,  Albania  has 
established  a  “Beneficial  Ownership  Registry”,  in  which  all  owners  of  existing  commercial  or 
non-profit entities  have to be registered by 30 June 2022. The registry adds to  transparency of 
economic actors and implements a key requirement of the EU anti-money-laundering directive. 
Nevertheless, the informal economy remains large  – is the IMF estimated that it accounted for 
about one third of GDP12 in 2019, and it is most widespread in trade, tourism, manufacturing and 
construction. 

Progress on improving legal certainty for businesses has been mixed, while concerns about 
the  effective  consultation  and  implementation  of  legislation  and  strategies  persist.  The 

12 IMF 2019, WP 19/278, “Explaining the Shadow Economy in Europe: Size, Causes and Policy Options” estimates on shadow 
economy in 2016 in Albania between 28% and 30% depending on the model. 

55 

 
 
                                                           
adoption of the new “Unified Law on Investment”, originally planned to be adopted in 2020, has 
been  further  postponed,  delaying  the  expected  improvement  of  legal  security  of  investors.  In 
mid-2021  Albania  adopted  a  new  “Business  Investment  Development  Strategy”  (BIDS)  2021-
2027. This provides the basis for the government’s support to SMEs and investment and foresees 
progress  in  deregulation  by  eliminating  licenses.  Businesses  increasingly  report  challenges  in 
finding  skilled  staff,  and  a  low  level  of  know-how  and  digital  skills,  which  has  led  to  strong 
salary  increases  in  some  sectors.  The  introduction  of  an  online  consultation  platform  as  the 
government’s main channel to consult the public on draft legislation and strategies has actually 
reduced  effective  consultation  when  the  public  does  not  use  it,  which  was  the  case  for  the 
Economic Reform Programme 2022-2024.  

State influence on product markets 

High food and energy prices triggered increased government support and intervention in 
the price-setting mechanism of the private sector. In the last quarter of 2021 food and energy 
prices were already rising in response to high demand, strong growth and supply chain problems, 
but  the  prices  jumped  even  higher  following  Russia’s  invasion  of  Ukraine.  Albania  adopted  a 
financial  support  package  (“social  resiliance  package”)  in  March  2022  and  extended  it  in  July 
2022  of  estimated  2%  of  GDP  for  targeted  cash  assistance  and  for  the  long-established  but 
increasingly costly subsidisation of the electricity prices13. In the face of popular protests against 
steep  fuel  and  food  price  increases,  the  government  established  two  temporary  boards 
(“Transparency Boards”) with representatives of the government and the private sector in March 
2022,  which  are  empowered  to  set  ceilings  for  wholesale  and  retail  prices  of  selected  petrol-
based and food commodities. These are updated regularly to reflect international price changes 
while keeping the profit margin stable. 

The state’s presence in the economy is limited  and Albania’s reported state aid fell below 
0.5%  of  GDP.  According  to  recently  established  sector  accounts,  the  public  sector’s  share  of 
gross  value  added  of  the  economy  was  about  10.5 %  in  2018.  The  share  of  public  sector 
employment14  decreased  from  16.3 %  of  total  employment  in  2014  to  14.3 %  in  2017  before 
picking up to 15.3 % in December 2021. Following an increase in tate aid in 2020 to about EUR 
248.5 million, or 1.96 % of GDP, almost triple the level in 2019 (5 % of GDP), it then reportedly 
dropped to 0.25 % of GDP in 2021. The share of horizontal aid in particular dropped in 2021 to 
about  50  %  of  its  level  in  2019.  However,  the  State  Aid  Office  still  lacks  insititutional 
independence and the comprehensiveness of the data reported remains therefore unclear.  

Privatisation and restructuring 

Efforts to define and monitor public sector corporations and their fiscal risks are ongoing. 
Using ESA2010 methodology, in 2020 the Institute of Statistics distinguishes between 167 extra-
budgetary units of the central (including some enterprises) and local government (water utilities 
and football clubs) and 26 non-financial public corporations and 2 public financial corporations, 
not  including  the  Albanian  Investment  Corporation  (AIC)  which  is  owned  and  funded  by  the 
state  to  manage  state  assets  and  mobilise  private  capital  for  the  development  of  investment 
projects  of  public  interest.  The  last  budget  amendment  of  2021  allocated  a  capital  transfer  of 
ALL (Albanian lek) 2 billion (about EUR 16 million) to the AIC, but the 2022 budget foresees a 

13 The increasing international prices for electricity imports are so far not reflected in the prices for households and SMEs. The 
state budget balances the differences for the state-owned electricity distributor. 
14 As a share of total employment of the 15–64-year-olds, according to LFS (INSTAT) 

56 

 
 
                                                           
return of these  funds to  the budget.  Established  end 2019,  the  AIC  became operational  in  July 
2021 and has begun to review state assets, formalise partnerships with governmental institutions 
and to prepare a project pipeline.  

Albania reports that it has initiated a valuation of the state’s shares in 21 corporations, with less 
than  50 %  state  capital  in  2022,  in  order  to  evaluate  the  State’s  voting  power  in  these 
corporations.  It  has  reportedly  merged  6  state-owned  companies  in  2021,  and  prepared  the 
privatisation, restructuring and liquidation of several other state-owned companies for 2022. The 
Ministry  of  Finance  and  Economy  (MOFE)  continued  its  regular  monitoring  of  public-private 
partnerships  (PPPs),  for  which  the  direct  budgetary  liabilities  remained  stable15  below  3%  of 
revenue, and expanded its fiscal risk assessment to state owned enterprises (SOEs) in the water 
and energy sectors. 

Functioning of the financial market  

Financial stability 

The  financial  sector  remained  stable  and  asset  quality  improved  in  2021,  though  risks 
persisted from the high use of the euro in the domestic economy. In 2021 the BoA ended the 
temporary measures it had introduced in view of the impact of the COVID-19 pandemic without 
a negative impact on key indicators. The ratio of non-performing loans to total loans continued to 
decline from 8.4 % in 2019 to a historic low of 5.3 % by the end of the second quarter of 2022. 
Banking sector  profitability improved during 2021, but  fell sharply in  the first  quarter of 2022 
(with return on equity decreasing to  7.4 % in  March 2022 from  an average  of 12.2 % in  2021, 
and  return  on  assets  falling  from  average  1.3 %  to  0.8 %  in  the  same  period),  but  overall  the 
banking sector remained stable, sufficiently capitalised and liquid. The banking sector’s capital 
adequacy remained well above the regulatory requirement at average 18.1 % in 2021 and 17.9 % 
in  March 2022, and the liquidity ratio16   fell from average 33.6 % in  2021 to  28.0 % in March 
2022.  However,  the  banks’  relatively  large  exposure  to  government  securities  (about  25 %  of 
bank assets) and the ongoing high use of euro in the domestic economy17 continue to pose risks, 
although the share of loans not hedged against security risks decreased compared with 2020. The 
small but growing non-bank financial sector expanded to 38 institutions18 but its share of GDP 
was unchanged at 12 %. This includes the insurance market, which is estimated at about 2.3 % of 
GDP, dominated by non-life insurance. 

Access to finance 

Favourable  financing  conditions  and  the  modernisation  of  payment  systems  improved 
access  to  finance.  Total  credit  growth  averaged  6.9 %  in  2021,  up  from  6 %  in  2020,  and  it 
accelerated further to 11.9 % (y-o-y) in the first quarter of 2022. Lending to the private sector19 
also accelerated, to 13.8 % year-on-year in June 2022, increasing the private credit-to-GDP ratio 
from  average  37.8 %  in  2020  to  38.5 %  in  March  2022.  The  implementation  of  the  “National 

15 According to the budget law, budgetary expenses related to PPPs are to be limited to below 5% of previous year’s revenue. 
However, this does not include PPP related liabilities, which are below the line, e.g. linked to powere purchasing agreements  
and the like.  

16   Liquid assets as share of total assets 
17   Foreign currency loans accounted for 51% of the loan portfolio end-2021, while the share of unhedged loans decreased by 

4.9pps. 

18   Including 12 insurance companies, 8 investment funds, and a number of institutions providing microcredit, financial leasing, 

factoring, money transfer and electronic payment services. 

19   Annual average growth adjusted for written-off loans and exchange rate impacts 

57 

 
 
                                                           
Retail Payment Strategy20” progressed well and led to an increase in financial inclusion (around 
69 % of adults had a bank account in 2021, up from 40 % in 2017) and in electronic payments 
(up by 29.5 % in 2021). The creation of a depository of biometric data of the population supports 
the  security  of  the  rapidly-increasing  online  banking  sector.  In  addition,  the  BoA  initiated  an 
enhanced  regulation  of  consumer  loans  and  consumer  protection  from  unjustified  or 
intransparent  interest  rates,  based  on  EU  best  practice.  The  operation  of  a  new  domestic 
settlement platform for interbank euro payments since January 2022, is also part of the strategy, 
and  is  expected  to  reduce  costs  for  payment  sevices.  Following  a  positive  assessement  of  its 
supervisory  framework  in  2021,  BoA  requested  the  formal  equivalence  process  with  the  EU 
framework, which would further reduce costs and support the competitiveness  of the Albanian 
banking sector.  

Functioning of the labour market  

a 

lower 

slight 

period 

helped 

increase 

inactivity 

labour  market 

of 
Following 
unemployment  and 
in  2020, 
rebounding growth supported the recovery 
of  the 
in  2021.  Solid 
employment  growth  averaging  3.7 %  in  the 
the 
2015-2019 
unemployment  rate  (age  group  15-64)  from 
17.5 % to a record-low of 11.7 % by Q1 2022. 
Following a deterioration of all labour market 
indicatorsin  2020,  the  reboundig  economy 
2021 improved the situation on the labour market: the unemployment rate returned to 12.05 %, 
the inactive population decreased by 1.5 pps and labour-force participation increased to 69.3 % 
but remained slightly below the average 2019 level of 69.6 %. The gap between male and female 
labour  force  participation  remained  large  and  unchanged  at  15.9  pps  since  2019.  However,  in 
2020 and 2021 there were some structural changes in the labour market. The unemployment rate 
of  tertiary  educated  persons  dropped  strongly,  while  it  increased  for  workers  with  primary 
education  and  also  for  young  people  (15-24).  Emigration  dropped  by  almost  50  %  in  2020 
compared  with  2019  due  to  international  COVID-19-related  mobility  restrictions,  but  jumped 
back  in  2021,  in  particular  the  number  of  young  people  (20-29)  dropped  more  than  double  as 
much as in 2020. Coupled with a falling birth rate this led to a high population decrease of 1.3 % 
in 2021. However, due to the rising participation rate, the decrease in the labour force (- 0.5 %) 
was more moderate, roughly at the same level as in 2020 and 2019.  

Nominal wage growth accelerated to 6.6 % in 2021 from 2.4 % in 2020, partly reflecting a 
reduction in under  reported wages.  Shortages  of skilled labour  and increases of public setor 
wages, mainly in health and education, pushed the average nominal monthly wage to EUR 465 
in 2021. A leak of salary data of about 630 000 citizens in 2021 enabled a  recently established 
special  anti-informality  unit  of  the  government  to  target  the  widespread  practice  of  under 
reporting  salaries  on  individual  business  level,  a  and  the  tax  authorities  repeated  their  call  on 
businesses  and  self-employed  to  correct  their  respective  revenue  declarations.  These  measures 
significantly reduced the number of employees receiving the minimum wage (about EUR 243) 
and contributed to the statistical wage increase. 

20   The implementation of the strategy achieved key legislation for transposing the EU Payment Services Directive 2, including 
low cost basic current accounts and licensing and supervision of payment services providers by the BoA as of January 2022. 

58 

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

Albania has made some progress and has some level of preparation to cope with competitive 
pressure and market forces within the EU. Energy and transport infrastructure, the digitalisation 
of  the  economy  and  education  outcomes  have  improved,  but  significant  gaps  to  regional  and 
European levels remain. Albania’s competitiveness is hindered by a lack of entrepreneurial and 
technological know-how, significant levels of informality, unmet investment needs in human and 
physical  capital,  and persistently low spending on R&D. Efforts to improve vocational training 
and  to  address  the  skills  mismatch  continued  and  institutional  preparations  for  the  Youth 
Guarantee  Plan  progressed.  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.  

As some of the Commission’s 2021 recommendations to improve competitiveness and to sustain 
long-term growth were not fully implemented, in the coming year Albania should in particular: 

  Finalise the Youth Guarantee Implementation Plan and begin its implementation;  

  Improve  business  support  services  as  well  as  consultation  mechanisms  with  businesses  and 
social  partners  and  with  their  cooperation  develop  a  strategic  action  plan  for  implementing 
anti-informality policies; 

  Continue  to  increase  the  shares  of  spending  in  total  public  expenditure  on  education  and 
R&D,  as  well  as  on  health  and  social  protection  to  fund  the  agreed  improvement  of  social 
services and the higher reimbursement of medical costs for vulnerable groups.  

Education and innovation 

Efforts  to  improve  the  labour  market  relevance  of  education  and  vocational  training 
progressed but skill mismatches and high unemployment of young people persist. The share 
of  young  people  in  tertiary  education  among  the  20-24  age  group  gradually  increased,  from 
12.3% in 2016 to 14.9% in 2021, but the shares of young people in vocational training or upper 
secondary  education  hardly  changed.  In  contrast  to  2020,  the  unemployment  rate  of  tertiary 
educated persons fell below the total rate (15-64 age group) and that of low educated increased. 
Simultaneously,  businesses  reported  increasing  shortages  of  skilled  labour,  while  the  still  high 
unemployment rate of secondary educated jobseekers indicates that skill mismatches and quality 
issues  of  vocational  training  persist,  and  the  ongoing  reforms  of  the  vocational  education  and 
training (VET) system have still to show results. In 2021, Albania updated the professional and 
qualification  standards  and  the  respective  curricula  for  three  of  the  eight21  of  its  National 
Catalogue of the professional qualifications, in cooperation with vocational training facilities and 
business  representatives,  to  better  reflect  market  needs  and  to  encourage  a  diversified  offer  of 
qualifications. Albania also progressed in aligning the Albanian qualification framework with the 
22  and  receive  the  approval23  of  the  EQF  Advisory 
European  qualification  framework  (EQF) 

21  So  far  levels  2-4  (of  8  levels)  were  revised,  they  describe  skills  comparable  to  lower  secondary  (2),  upper  secondary  and 
vocational diploma (3 and 4).  
22 The EQF helps to understand and compare the skill levels of national qualifications across countries, and promotes lifelong 
learning. Since 2012 all new qualifications carry a EQF reference in the EU.   
23  This  means  that  certificates  and  diplomas  awarded  according  to  the  Albanian  framework  can  include  the  reference  to  the 
corresponding EQF level. 

59 

 
 
 
                                                           
Board for its framework. Preparations for drafting and coordinating the implementation plan of a 
Youth Guarantee Scheme in Albania have started. 

Statistics on research and innovation remain below standard and funding of education and 
research  below  needs.  Data  availability  related  to  the  research  and  innovation  capacity  of 
Albania is very limited, and therefore, unlike its regional peers, the country is not included in the 
European  Innovation  Scoreboard.  In  addition,  Albania  does  not  report  reliable  comprehensive 
data of public expenditure on research and development, because of institutional weaknesses in 
reporting. However, the allocated budgetary funds of the main ministries remain negligible and 
below 1 % of GDP as do the planned budget allocations. Although Albania was ranked one place 
higher  in  2021,  the  Global  Innovation  Index  (GII)  still  assigned  it  the  lowest  rank  among  39 
European  countries.  This is  mainly the result of low scores in  the areas of “human capital  and 
research” and in “knowledge and technology outputs” (below the average of the upper middle-
income group) in combination with low secondary schooling expenditure and university ranking. 
Albania  continued  to  participate  in  the  Horizon  2021  programme,  however  it  had  the  second 
lowest number of projects and funding in the region (after Montenegro) and was ranked 15th of 
214 countries. In 2021, Albania became a member of the EUREKA network and under the “EU 
for Innovation” project Tirana universities established “Tirana Inc.” to support entrepreneurship 
and innovation among students, while a governmental working group is about to draft a follow-
up national strategy on scientific research.  

Physical capital and quality of infrastructure 

Following  several  years  of  decline,  investment  recovered  in  2021,  benefitting  mainly  real 
estate  and  ICT.  Private  investment  fell  from  19.1 %  of  GDP  in  2015  to  16.8 %  in  2019,  and 
15.7 %  in  2020  while  total  investment  decreased  from  an  average  of  24.5 %  of  GDP  in  2015-
2017 to 22.3 % of GDP in 2019. However, from mid-2020 investment started to recover and in 
2021  real  gross  fixed  capital  formation  (GFCF)  rose  to  24.1 %  of  GDP,  fuelled  by  public-
financed post-earthquake reconstruction, but also private and foreign investment in other sectors, 
such  as  trade,  hospitality  and  ICT  picked  up.  Public  investment  (including  that  of  local 
governments) averaged 5.4 % of GDP over the 2015-2019 period, before jumping to 7 % of GDP 
in 2020 and 2021. FDI-inflows, which contracted by 13 % in 2020, rose by 10 % in 2021, mainly 
in the mining and real estate sectors, but remained slightly below 2019 levels. The revival of the 
deteriorated  railways  network  started  with  support  of  multilateral  development  banks  in  2021, 
when a contract was signed to restore the connection between Tirana and Durres, the main port. 
Digital  infrastructure  continued  to  improve  and  the  share  of  enterprises  with  faster  (>10MB/s) 
network  connection  increased  from  79.8 %  in  2020  to  90.5 %  in  2021,  but  internet  use  and 
websites of enterprises show only small growth. In June 2022, the government adopted a digital 
agenda with a corresponding action plan for 2022 – 2026. 

Albania has started to establish a power exchange and adopted a new national energy and 
climate plan. Following the amendment of the power sector Law, which improved compliance 
with  the  EU  acquis  on  energy  and  allowed  for  the  effective  separation  of  the  electricity 
distribution  system  operator  from  the  production  operator,  Albania  was  ranked  25th  in  the 
Energy  Transition  Index  (WEF)  in  2021,  the  highest  in  the  Western  Balkans.  Early  2022,  it 
began to establish the Albanian power exchange, another milestone for an integrated organised 
electricity  market  agreed  with  the  energy  community.  Almost  all  electricity  in  Albania  is 
produced  from  hydropower,  which  creates  a  dependency  on  unpredictable  rainfall  exacerbated 
by climate change. This in turn results in fluctuating electricity import needs and calls for more 

60 

 
 
efforts  to  diversify  electricity  sources,  for  which  the  government  mainly  involves  private 
investors, as is the case for two new photovoltaic parks it agreed on in 2022. In December 2021, 
the Government adopted a draft National Energy and Climate Plan 2020 – 2030, but has yet to 
substantially improve the plan by addressing the comments of the Energy Community Secretariat 
regarding  a  missing  link  between  the  targets,  policies  and  measures,  the  lack  of  public 
consultation, and to base it on sound cost-benefit analysis.  

Sectoral and enterprise structure 

The  economic  struture  continued  to  shift  gradually  away  from  agriculture  and  towards 
services  and  industry.  The  weight  of  the  agricultural  sector  in  GDP  gradually  declined  from 
19.7 %  in  2015  to  its  lowest  level  in  the  last  decade  of  17.7 %  in  2021,  when  the  sector 
experienced a 1.5 pps drop in investment and a 3.2 % drop in real growth. Manufacturing’s share 
in GDP recovered in 2021 to 6.2 % while that of industry as a whole rose by 1.3 pps to 13.3%. 
Construction’s  share  climbed  from  9.0  to  9.5 %  of  GDP  in  2021.  Services  gradually  increased 
their value added in real GDP to 48.4 % in 2020 but decreased to 47.7 % in 2021, and they also 
represent the largest share of employment (44.3 % in 2021). Employment in the manufacturing 
sector,  which  had  gradually  increased  to  11.2 %  in  2020,  remained  at  the  same  level  in  2021, 
whereas  the  decline  in  agricultural  employment  accelerated  by  2.4  pps  to  33.7 %  of  total 
employment  in  2021.  Agricultural  employment  decreased  in  almost  all  parts  of  the  country, 
however,  in  more  than  half  of  the  Albanian  prefectures  it  still  accounted  for  over  50 %  of 
employment  and  agricultural  wages  remained  the  lowest  of  all  sectors,  reflecting  the  still  low 
productivity.  Business  registrations  recovered,  and  the  number  of  enterprises  with  more 
than  five  employees  increased.  Following  a  1.5 %  decrease  in  2020,  the  overall  number  of 
active non-agricultural enterprises increased by 1.1 % in 2021, and new registrations were 20 % 
higher  than  in  2020.  Continuing  the  trend  seen  in  2016-2019,  the  number  of  enterprises  with 
more  than  five  employees  rose  significantly  in  2021.  In  particular,  enterprises  with  5-49 
employees  increased  their  share  from  8.8 %  to  12.7 %  of  all  enterprises  and  played  a  stronger 
role  in  terms  of  investment  and  value  added.  The  share  of  enterprises  with  more  than  50 
employees  climbed  by  0.5  pps  to  1.7 %  and  they  employed  more  than  half  of  all  employees. 
Although  microenterprises  with  1-4  employees,  mostly  farms  and  small  traders,  remained  the 
vast majority, their share decreased to about 85.6 %, down from 90 % in 2020.  

Economic integration with the EU and price competitiveness 

The EU remained Albania’s main trading and investment partner, despite Albania’s 
gradual diversifcation of trade partners. Overall external trade averaged 77.3 % in GDP 
2015-2019,  dropping  to  61 %  of  GDP  in  2020  before  re-bounding  to  76.4 %  of  GDP  in 
2021.  Exports  remain  dominated  by  services,  and  the  EU  remained  the  main  destination 
for both goods and services exports. Due to faster growth in trade with non-EU countries, 
the EU’s share in Albania’s foreign trade has decreased somewhat,  with exports to the EU 
accounting  for  72.2 %  of  the  total  in  2021  (down  from  an  average  of  76.4 %  in  2015-
2019),  while  the  share  of  imports  from  EU,  which  averaged  60 %  in  2015-2019,  fell  to 
54.4 %  in  2021.  On  the  other  hand,  the  goods  trade  volume  with  CEFTA  countries 
gradually  increased  from  5.7%  in  2019  to  7.6 %  of  GDP  in  2021.  Kosovo  remained 
Albania’s main export destination in CEFTA, whilst most of its imports in CEFTA came 
from Serbia. FDI flows to Albania from the EU increased by 26.5 % in 2021, much more 
than from the rest of the world (7.8 %), and they made up 59.7 % of all FDI inflows. The 

61 

 
 
EU’s share in FDI stocks remained high at 54 %. The index of the real effective exchange 
rate of the Albanian lek continued to increase, by 1.8 % in 2020 (3.5 % in 2019) albeit at a 
slower pace than its 2015-2019 average of 3.7 %.  

2.4. Public procurement, statistics, financial control  

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.  Good  progress  was made during the 
reporting  period,  in  particular  by  adopting  further  implementing  legislation  to  the  new  law  on 
public  procurement,  launching  an  electronic  appeals  and  complaint  system,  developing  and 
implementing  of  certified  training  course  on  public  procurement,  publishing  first  monitoring 
reports on the public procurement strategy and deploying real time “open data” on procurement 
activities,  and  including  procurement  related  corruption  risks  in  institutions’  integrity  plans. 
Further efforts are needed to improve compliance with procedures and prevent corruption in the 
procurement cycle. The Commission’s recommendations from 2021 were largely implemented. 
In the coming year, Albania should in particular: 

  monitor the implementation of the new public procurement law, in particular increase use of 

the most economically advantageous tender (MEAT) award criterion; 

  step up efforts on alignment of the legislative framework with the EU acquis in particular the 

area of concessions and public-private partnerships (PPPs); 

  ensure  that  conditions  of  intergovernmental  agreements  concluded  with  third  countries 
comply  with  EU  acquis  requirements  contained  in  the  SAA,  notably  in  the  area  of  public 
procurement. 

Institutional set-up and legal alignment 

The legal framework  on public procurement is largely in  line with  the 2004 EU directives on 
public  procurement  and  procurement  of  utilities  as  well  as  relevant  administrative  and  budget 
provisions.  The  new  law  on  public  procurement,  which  entered  into  force  in  2021,  further 
aligned  the  framework  with  the  2014  EU  public  procurement  directives,  but  thresholds  set  for 
competitive procurement of goods and services remain higher. The implementing legislation of 
the  new  law  was  adopted  in  2021.  The  Law  on  concessions  and  public-private  partnerships 
(PPPs) is partly aligned with the EU Directive on the award of concession contracts. 

62 

 
 
 
The  Public  Procurement  Agency  (PPA)  is  the  central  public  procurement  entity  mandated  to 
propose regulatory measures and monitor compliance with public procurement rules, and since 
the  new  law,  also  to  verify  the  compliance  of  cancelled  procedures  and  to  monitor  contract 
implementation.  The  PPA  also  provides  contracting  authorities  with  information,  support  and 
guidance  as  well  as  manuals  for  economic  operators.  In  December  2021,  the  PPA  introduced 
“open  data”  with  real  time  information  on  public  procurement  procedures,  and  archives  as  of 
2010. 

Implementation and enforcement capacity 

Albania’s public procurement market represented about 10.7 % of GDP in 2021 as compared 
to  9.4 %  (in  2020)  and  4.8  %  (in  2019).  Increases  in  2020-2021  were  largely  driven  by  post-
earthquake  reconstruction  and  a  decline  in  GDP  due  to  COVID-19  economic  impact.  In  2021, 
the average number of bids  per tender was 2.5 as  compared to  2.57  in  2020 and 2.37 in  2019. 
The  planning  and  preparation  of  public  procurement  procedures  are  generally  transparent  and 
efficient. Public procurement forecasts are published regularly. 

In December 2021, the procurement regime for social services was approved. Capacity building 
in contracting authorities on the new bylaws is ongoing. 

All  legal  and  financial  instruments  used  in  the  area  of  public  procurement  and  concessions, 
including inter-governmental agreements concluded with third countries for the implementation 
of joint projects, should comply with the principles of transparency, competition, equal treatment 
and non-discrimination. 

On the monitoring of contract awarding and implementation, following close monitoring by 
the PPA, the number of negotiated procedures without prior publication continued to fall in 2021 
to 143 as compared to 151 (not considering COVID-19 and reconstruction) in 2020, accounting 
for 3.4 % in terms of value of all procurements in that period. The use of framework agreements 
increased further in terms of numbers (873 compared to 677 in 2020) with a similar total value 
procured through framework agreements (approx. EUR 354 million in 2021). 

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. The procurement forecast  register is prepared and posted 
online. 

By the end of 2021, the PPPs/concessions registry contained information on 229 contracts, six of 
which  had  been  signed  in  2021.  The  technical  skills  and  capacity  to  design  and  assess 
concessions and PPPs require further development.  

The  PPA  applies  a  monitoring  system  to  assess  procurement  performance,  procurement 
compliance  and  contract  implementation.  In  2021,  in  line  with  the  new  law,  contracting 
authorities  submitted  contract  implementation  plans  for  signed  contracts  to  the  PPA.  The  new 
contract management electronic system, covering the full lifecycle of contracts, is being piloted. 

The contracting authorities need to continue to build capacity to manage public procurement 
processes in line with the new law through training of more officials in contracting authorities 
than in the previous year (1 555 persons trained in 2021 as compared to 970 in 2020). Regarding 
integrity and conflicts of interests, the PPA issued instructions on the declaration of conflicts 
of  interest  by  procurement  officials  and  adopted  a  regulation  on  prevention  of  conflicts  of 
interest in the exercise of public functions in the PPA. The State Audit Institution (SAI) reported 

63 

 
 
irregularities in public procurement, with an estimated loss to the state budget of around EUR 3.1 
million (as compared to EUR 2.8 million in 2020, based on a smaller sample). In 2021, the PPA 
imposed fines on 102 employees and proposed disciplinary measures for 145 employees.  

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.  The  remedy  system  is  easily 
accessible to economic operators, without discrimination, though subject to a fee.  

The  PPC  is  an  independent  review  body  with  36  posts,  six  of  which  are  vacant,  dealing  with 
complaints related to public procurement procedures. Its decisions can be challenged before the 
Administrative  Court  of  Appeals.  The  processing  of  complaints  within  the  legal  time  limit 
improved  further  in  2021  to  89.2 %  (as  compared  to  78 %  in  2020)  with  a  similar  number  of 
complaints  received  (768,  as  compared  to  741  in  2020).  In  October  2021,  the  PPC launched  a 
new e-appeals and e-complaints management system for electronic submission and management 
of  cases  as  well  as  e-signature  of  documents  and  acts.  The  new  system  provides  real-time 
statistics,  monthly  bulletins  and  information  for  interested  parties,  including  for  visually 
impaired people through a special access engine. 

The  capacity  of  the  PPC  and  the  Administrative  Court  to  deal  with  a  high  number  of  appeals 
needs to be further improved. As a result of a cooperation agreement concluded by the PPC with 
the University of Tirana to develop specialised training courses on public procurement, PPC staff 
completed a 13-week certified training course (on various topics) from September to December 
2021.  

Chapter 18: Statistics 

EU  rules  require  that  EU  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. Limited progress was made to address last year’s 
recommendations. There was also progress on further alignment with ESA 2010 standards, faster 
publication of statistics, and increased transmission to Eurostat. The official statistics programme 
2022-2026 was  also approved and the preparations for the Population  and Housing Census  are 
ongoing. The role of Albania’s National Statistical System (INSTAT) was further strengthened, 
and  its  resources  improved;  however,  data  collection  methods  need  to  be  modernised  and  the 
statistical production processes improved.   

In the coming year, Albania should in particular: 

  implement  the  Population  and  Housing  Census  2023  and  prepare  the  plan  and  secure  the 
resources  for  the  census  of  agriculture  holdings  in  line  with  the  relevant  EU  acquis  and 
international standards;  

  improve the role of Albania’s National Statistical System (INSTAT) as the coordinator of the 

national statistics and expand the number of statistical agencies;  

  INSTAT should increase the production and transmission of timely and high-quality data to 

Eurostat. 

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On the 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 
Programme  on  Official  Statistics  2022-2026  was  approved  in  March  2022  and  Albania’s 
National Statistical System (INSTAT) has started its implementation. The Annual Plan for 2022 
was not yet approved in June 2022. In August 2022, INSTAT announced that the Population and 
Housing Census would be postponed to 2023 due to technical issues. While it made some effort 
to fill the vacancies, further efforts need to be made to reduce the turnover and to ensure that the 
staffing levels are sufficient to ensure production needs and that staff are well trained in the latest 
statistical developments. 

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).  On  national  accounts,  data  transmission  to  Eurostat  has  gradually  improved  in 
terms  of  timeliness,  mainly  regarding  the  length  of  time  series  for  annual  national  accounts. 
However,  significant  improvement  is  still  needed  to  achieve  full  compliance  (mainly  quarterly 
GDP  by  income  approach  as  well  as  population  and  employment  data).  Despite  progress  on 
alignment with ESA 2010 standards, Albania still needs to further enhance compliance with the 
methodological  requirements,  implementing  achieved  improvements  in  the  next  benchmark 
revision in 2024. Gross National Income (GNI) Inventory describing sources and methods used 
to  compile  national  accounts,  is  then  to  be  updated.  Efforts  are  also  needed  to  ensure  the 
completeness  of  the  excessive  deficit  procedure  notification  tables,  which  are  sent  regularly  to 
Eurostat on a best-effort basis. Improvements are also needed in government finance statistics to 
meet the requirements of the EU acquis. INSTAT produces and publishes the harmonised index 
of consumer prices and ensures the generation of income accounts.  

On  business  statistics,  data  collection  and  production  have  improved.  Albania  carries  out  an 
industrial production survey, although data is not currently collected or transmitted to Eurostat. 
Albania  is  partly  compliant  for  all  short-term  statistics  domains  (industry,  construction,  retail 
trade and other service). However, some important indicators are still not transmitted to Eurostat, 
in particular on industrial production, industrial turnover, and services producer prices. INSTAT 
continues to achieve quite high response rates in both business and household surveys.  

On social statistics, INSTAT continues to conduct the labour force survey regularly, and micro-
data  are  provided  to  Eurostat,  but  it  still  does  not  produce  job  vacancy  statistics.  Labour  cost 
statistics are calculated based on a labour cost survey. INSTAT continues to conduct the survey 
of income and living conditions wave (SILC) and the data has been validated and published by 
Eurostat. Data on households and children poverty has been released using the EUROSTAT EU-
SILC survey. Statistics on external migration and asylum are partly aligned with the EU acquis. 
Crime statistics are disseminated on annual basis and are fully based on administrative sources. 
Crime statistics in Albania are classified based on national criminal code and laws, but INSTAT 
is working on the mapping with the International Classification of Crime for Statistical Purposes 
(ICCS).  Collection  of  gender-disaggregated  data  has  improved  -  the  new  official  statistics 
programme  includes  provisions  to  collect  and  analyse  gender  statistics.  Further  efforts  are 
needed to produce disaggregated data for certain groups, especially  prevalence of violence and 
harassment  at  work;  and  on  data  disaggregated  by  both  sex  and  geographical  location,  age, 
ethnicity, disabilities, and migratory status. The  population  and housing  census  was  previously 

65 

 
 
postponed  to  2022  due  to  the  impact  of  the  COVID-19  pandemic  and  the  national  elections, 
however it has now been postponed to  2023 due to  technical  issues. Progress  was made in  the 
preparation of this census, including communication activities and a second pilot census, Albania 
needs  however  to  ensure  funding  for  its  full  implementation,  and  to  use  administrative  data 
where possible.  

Agricultural  statistics  are  partially  aligned  with  the  EU  acquis.  The  quality  of  the  data  still 
needs  to  be  improved  on  the  administrative  registers,  such  as  the  farmer  register,  individual 
register  of  animals  and  the  animal  holding  registers.  INSTAT  also  needs  to  finalise  necessary 
documents  for  the  census  of  agriculture  holdings,  which  is  still  planned  for  2024,  including  a 
corresponding  action  plan  and  budget,  and  ensure  the  necessary  funds  for  its  successful 
implementation.  

Environmental statistics are only very partly aligned to the EU acquis, while energy statistics 
are moderately aligned. INSTAT and the national Agency of Natural Resources produce monthly 
and  annual  energy  statistics  for  commodity  balances  for  all  energy  products  (fuels)  used  in 
Albania as well as prices of electricity for households and industry. Material flow accounts are 
well  aligned  to  the  EU  acquis.  Air  emission  accounts,  physical  energy  flow  accounts  and 
environmental  taxes  by  economic  activity  remain  partially  in  compliance  with  the  EU 
requirements.  Waste  statistics  have  improved  but  they  are  not  fully  aligned  yet.  Data  on 
packaging  waste  are  increasingly  substantial  as  they  are  the  basis  for  a  new  EU  Budget  own 
resource  on  non-recycled  plastic  packaging  waste.  Albania  already  collects  data  on  municipal 
waste.  

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  the  area  of  financial  control.  Some  progress  was  made 
during the reporting period, especially with  the  implementation  of the  policy document for the 
strengthening of public internal financial control (PIFC), guidelines for auditing arrears, approval 
of revised  performance  audit  manual,  and further alignment with  the EU  acquis on  counterfeit 
banknotes and coins.  Internal  control is  not  yet  ensured  across budget  entities and it should  be 
enhanced  through  a  stronger  engagement  between  the  Supreme  State  Audit  Institution,  the 
Parliament and the Ministry of Finance and Economy.  

Since  only  partial  progress  was  made  with  the  Commission’s  2021  recommendations,  these 
remain valid. In the coming year, Albania should in particular: 

  implement  the  instructions  on  financial  delegation  of  responsibilities  and  issue  instructions 
on  delegation  of  management  responsibilities  with  a  view  to  improving  managerial 
accountability; 

  monitor  and  follow-up  the  implementation  of  recommendations  made  in  the  annual  PIFC 

report across budget institutions;  

  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. 

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Public internal financial control  

A strategic framework for PIFC is in place. PIFC measures are included in the public financial 
management  and  the  public  administration  reform  strategies,  and  further  defined  in  the  2021-
2022  PIFC  policy  document.  The  Ministry  of  Finance  and  Economy  is  responsible  for 
monitoring  implementation  but  strengthened  efforts  are  needed  on  implementation  of  PIFC 
reforms beyond the Ministry. 

Managerial  accountability  is  not  yet  fully  embodied  in  the  legislation  and  administrative 
practice.  The  adopted  instructions  on  the  delegation  of  financial  responsibilities  need  to  be 
implemented and accompanied by delegation of operational and administrative responsibilities in 
order  to  improve  overall  managerial  accountability.  In  practice,  a  very  small  number  of 
administrative  decisions  are  delegated  to  lower  levels  due  to  the  centralised  decision-making 
system. The reoccurrence of arrears is  an indicator for  the not  yet fully  effective  attribution of 
responsibilities and commitment controls (See also section: Public administration reform). 

The legislation on internal control is largely in line with international standards. In December 
2021, the methodology for monitoring the performance of the internal control systems of public 
entities  and  the  financial  management  and  control  manual  were  approved.  In  2021,  more 
institutions defined mission statements, objectives and outputs. During the reporting period, the 
Central Harmonisation Unit supported five institutions in finalising books of business processes, 
implementing  delegation  instruction  and  reporting  lines,  and  establishing  risk  registers.  Risk 
management  is  still  at  an  early  stage  at  all  levels  and  needs  to  be  better  incorporated  in  the 
management  of  financial  and  operational  processes.  The  budget  inspection  function,  which  is 
centralised  within  the  Ministry  of  Finance  and  Economy,  performs  ex-post  activities  upon 
request.  

The legislative framework on internal audit practice is in line with international standards. In 
2021, the number of certified auditors in the public sector  increased to 342, from 318 in 2020. 
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 
comply with the standards and become fully operational. 

The Central Harmonisation Unit provides methodological guidance and capacity building and 
monitors  internal  control  and  internal  audit  performance  in  the  public  sector  on  the  basis  of 
quality reviews and self-assessment reports from institutions. In 2021, the Central Harmonisation 
Unit  issued  an  opinion  of  compliance  of  the  internal  audit  activity  for  25  assessed  units,  with 
only  36%  found  partially  or  fully  compliant.  The  annual  PIFC  report  was  presented  to  the 
Council of Ministers  and  is  being  discussed in  Parliament  as  part of the approval  of the actual 
2021 budget.  

External audit 

In  line  with  the  standards  of  the  International  Organisation  of  Supreme  Audit  Institutions, 
Albania’s  constitutional  and  legal  framework  provides  for  independence  of  the  State  Audit 
Institution. Legal amendments are required to strengthen the scope of the audit mandate to cover 
all public entities. 

In  accordance  with  its  2018-2022  strategic  development  plan,  the  State  Audit  Institution  is 
implementing actions to improve its institutional capacity. It needs to prepare and adopt a new 
development plan for 2023 and beyond. It implements annual professional development for audit 

67 

 
 
staff,  focusing  in  2021,  among  others,  on  public  procurement,  concessions/PPPs,  and  the  new 
performance audit manual.   

The quality of audit work needs to be further improved to fully comply with the International 
Organisation  of  Supreme  Audit  Institutions’  standards.  In  November  2021,  the  revised 
performance  audit  manual  was  approved.  The  State  Audit  Institution  audit  objectives  have 
shifted  from  compliance  and  regularity  audits  towards  performance  audits.  It  follows  a  risk-
based external audit approach.   

The  impact  of  audit  work  has  shown  some  progress.  The  Albanian  Supreme  State  Audit 
Institution  continues  to  compile  annual  reports  on  their  performance,  publishes  them  on  its 
website and reports accordingly to the Parliament. In 2021, the State Audit Institution reported 
that  80%  of  accepted  recommendations  are  in  the  process  of  being  implemented,  and  some  of 
them  have  been  fully  implemented.  Despite  the  high  rate,  with  more  than  90%,  of  the 
recommendations  having  been  accepted  by  the  relevant  institutions,  the  rate  of  fully 
implemented recommendations needs to be further improved (in 2021 the rate was only 50%).  

Protection of the EU’s financial interests  

Albania has ensured some level of acquis alignment in the area. However, it still needs to fully 
harmonise its legislation 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,  has 
established  a  network  involving  other  relevant  authorities  such  as  the  Specialised  Structure 
against  Corruption  and  Organised  Crime  and  meets  regularly.  The  manual  of  procedures  for 
irregularities was revised and approved in December 2021. A national anti-fraud strategy still 
needs  to  be  adopted.  Albania  cooperates  with  the  European  Commission  on  investigations 
and in 2021, it reported five cases of irregularities and suspected fraud. Although cooperation 
with  the  anti-fraud  coordination  service  on  investigations  has  improved,  more  efforts  in 
developing  a  solid  track-record  on  reporting  of  irregularities  and  on  cooperation  on 
investigations are still needed in particular regarding law enforcement authorites. 

Protection of the euro against counterfeiting 

Albania further 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. In 
August  2021,  the  Bank  of  Albania  approved  regulations  on  medals  and  tokens  similar  to  euro 
coins, and on the reproduction criteria for banknotes and coins. Technical analysis is performed 
by the national analysis centre of the Bank of Albania and the Scientific Police Institute. Formal 
cooperation between the Bank of Albania, the State Police in the Ministry of the Interior and the 
General Prosecutor’s Office should be established.  In 2021, Albania seized 569 euro coins and 
banknotes  totalling  approximately  EUR  9 600,  representing  38%  of  all  seized  counterfeit 
currencies in the country, as compared to 18% in 2020. 

3. 

GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION  

Good  neighbourly  relations  and  regional  cooperation  form  an  essential  part  of  Albania’s 
European integration process and contribute to stability, reconciliation and a climate conducive 
to addressing open bilateral issues and the legacies of the past. 

Albania maintained its engagement in  a number of regional cooperation initiatives, such as the 
Central European Free Trade Agreement (CEFTA), Energy Community, Transport Community, 

68 

 
 
the South  East  European Cooperation Process  (SEECP) and the Regional Cooperation Council 
(RCC)24.  In  May  2022,  Albania  concluded  one-year  long  Chairmanship-in-Office  of  the  the 
EUSAIR-AII  (the  EU  Strategy  for  the  Adriatic-Ionian  Region)  and  hosted  the  Forum  of  the 
Foreign  Ministers  of  the  members  of  the  region.  In  June  2022,  Albania  hosted  the  Ministerial 
Meeting of the Western Balkans Platforms on Culture & Research and Innovation & Education 
and  Training.  Albania’s  wider  engagement  in  the  field  of  youth,  education,  culture,  as  well  as 
civil society reached another momentum in the context of the activities of Tirana as the European 
Youth Capital for 2022. 

Following the May 2022 Foreign Affairs Council, EU foreign ministers held, for the first time, 
an  informal  exchange  of  views  with  Western  Balkans  counterparts.  The  EU  and  Western 
Balkans Leaders Meeting on 23 June 2022 reaffirmed their EU perspective of the region and 
gave impulse to intensify cooperation, in particular on integration into EU measures on food and 
energy supplies and independence, as well as to support capacity building for cyber security and 
the social agenda, notably involving youth in the economy. The meeting was also an opportunity 
to  discuss  closer  political  cooperation,  including  foreign  policy  alignment  of  the  Western 
Balkans with EU positions and restrictive measures. 

At  the  EU-Western  Balkans  summit  in  Brdo  pri  Kranju  in  October  2021,  the  six  Western 
Balkans  leaders  reaffirmed  their  commitment  to  inclusive  regional  cooperation,  strengthening 
good  neighbourly  relations  and  investing  more  decisive  efforts  in  establishing  the  Common 
Regional Market. The summit announced a range of concrete deliverables benefiting the Western 
Balkans, including the first set of actions under the Economic and Investment Plan; the pledge to 
boost COVID-19 vaccination rates; the path towards lower roaming costs; an innovation agenda 
for the Western Balkans; green lanes to reduce border waiting times and Transport Community 
action  plans  for  smart  transport  and  sustainable  connectivity.  The  Common  Regional  Market 
(CRM), as agreed by the leaders of the Western Balkans at the 2020 Berlin process summit in 
Sofia,  will be critical  in  increasing the  attractiveness  and competitiveness of the region.  It  will 
help  Albania  to  speed  up  the  recovery  from  the  aftermath  of  the  pandemic,  notably  to  attract 
investors  looking  for  diversification  of  supply  and  shorter  value  chains  and  to  maximise  the 
benefits of the infrastructure investments under the Economic and Investment Plan. A number of 
important decisions to facilitate the movement of workers remain blocked. It is important that all 
parties  play  a  constructive  role  in  building  the  Common  Regional  Market  and  deliver  on  their 
joint commitments set out in the CRM action plan.  

Albania, North Macedonia and Serbia seek to deepen regional cooperation in a number of areas, 
notably  economic  integration  through  the  Open  Balkan  Initiative  (OBI),  implementing  some 
elements of the common regional market on which no formal agreement has been reached  yet. 
Three OBI summits have been held over the reporting period. 

In October 2021, Albania along with other Western Balkan partners endorsed the action plan for 
the Green Agenda for the Western Balkans, which aims at reflecting the European Green Deal 
and  contributing  to  the  sustainable  socio-economic  development  and  the  green  recovery  of  the 
region  after  the  pandemic.  Albania  should  contribute  to  successfully  implement  this  joint 
regional  vision,  with  high  level  of  ambition,  putting  sustainable  development,  resource 
efficiency, nature protection and climate action at the centre of all economic activities. 

24 Albania actively participates in around 35 regional organisations and initiatives. 

69 

 
 
                                                           
Albania  generally  maintains  good  bilateral  relations  with  other  enlargement  countries  and 
neighbouring EU Member States.  

Relations  with  Bosnia  and  Herzegovina  remained  friendly  and  without  open  issues,  with 
occasional high-level bilateral visits. The two countries are still to establish full-fledged bilateral 
embassies, as agreed the previous year. Trade flows remain low.  

Albania’s relations with Kosovo remained good overall. During the reporting period, the 7th and 
8th government-to-government meetings with Kosovo took place, respectively in November 2021 
and  in  June  2022,  where  32  bilateral  agreements,  protocols  and  memoranda  of  understanding 
were  signed  mainly  on  facilitating  free  movement  of  people  and  trade  exchange,  education, 
infrastructure,  and  culture.  The  two  governments  agreed  to  waive  requirements  for  granting 
temporary  (5  years)  residence  permits,  and  a  new  border  crossing-point  has  been  opened  in 
Shishtavec,  easing  control  procedures  for  customs.  The  two  governments  also  signed  a 
memorandum of cooperation for a feasibility study for a Durrës-Pristina railway segment and an 
agreement  on  natural  gas  supplies  from  the  Vlora  thermal  power  plant.  Numerous  high-level 
visits  of  government  members  as  well  as  parliamentary  committees  took  place  during  the 
reporting period. In November 2021, the President of Albania made an official visit to Kosovo. 
In  April  2022,  Albania  and  Kosovo  conducted  a  joint  police  operation  to  tackle  corruption  in 
their joint border crossing-point in Vërmicë. Albania has continued to support the EU-facilitated 
Belgrade-Pristina dialogue. 

Relations with Montenegro remained good overall. In December 2021, the Foreign Minister of 
Montenegro visited Albania. Cross-border cooperation was strengthened,  in  particular  after the 
opening of the joint border point Grabom-Zatrijebačka Cijevna. 

Relations with North Macedonia remained good, including with frequent high-level visits from 
both  sides.  In  February  2022,  new  joint  border  crossing  points  between  Albania  and  North 
Macedonia were opened. The agreement between the  government  of North Macedonia and the 
Council  of  Ministers  of  Albania  on  mutual  recognition  of  approvals  for  Authorized  Economic 
Operator for Security and Safety (AEOS) has been signed in December 2021. 

Relations with Serbia remained good. In November and December 2021, the Prime Minister of 
Albania  and  the  Serbian  President  paid  reciprocal  visits  in  the  context  of  the  Open  Balkans 
initiative (OBI). In the context of tensions on agricultural trade due to Russia’s war in Ukraine, 
Serbia announced its decision to export 30,000 tonnes of wheat to Albania and in return, Serbia 
would use the port of Durrës to import oil from the Gulf countries. 

Relations  with  Türkiye  have  continued  to  strengthen,  as  notably  reflected  in  the  exchange  of 
high-level visits. The President of Türkiye, accompanied by seven ministers, visited Albania in 
January 2022.  A number of bilateral  agreements  were signed in  the  fields of law enforcement, 
culture,  youth,  and natural  disaster management. In December 2021, Albania’s Speaker visited 
Ankara,  and  in  March  2022,  the  Prime  Minister  of  Albania  subsequently  visited  Istanbul. 
Türkiye continues to exercise pressure on Albania to deliver on dismantling the so-called Gülen 
movement in the country. 

Relations with Greece remained good with continued political dialogue. Greek minority rights, 
in  particular,  property  rights  of  the  Greek  minority  remain  a  subject  of  disagreement  in  the 

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

70 

 
 
                                                           
bilateral relations. On the issue of the delimitation of the maritime border, both sides agreed  to 
jointly refer the case to the International Court of Justice .  

Relations with Italy remained very good. Political dialogue intensified with high-level visits on 
both sides. In November 2021, the Prime Minister of Albania visited Rome. The cooperation in 
the field of defence, civil emergencies, justice and home affairs further strengthened, including 
the  fight  against  cybercrime,  trafficking  in  human  beings,  illegal  migration  and  asylum.  As  of 
2022, Albanian immigrants that have worked in Italy will be able to receive pensions based on 
their Italian contributions.     

4. 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP  

CLUSTER 2: INTERNAL MARKET  

This  cluster  covers:  free  movement  of  goods  (Chapter  1);  freedom  of  movement  for  workers 
(Chapter 2); right of establishment and freedom to provide services (Chapter 3); free movement 
of  capital  (Chapter  4);  company  law  (Chapter  5);  intellectual  property  law  (Chapter  7); 
competition  policy  (Chapter  8);  financial  services  (Chapter  9);  and  consumer  and  health 
protection (Chapter 28). This cluster is key for Albania’s preparations for the requirements of the 
EU’s internal  market  and is  of high relevance for early integration and the development  of the 
Common Regional Market. 

Albania  is  moderately  prepared  in  most  of  the  areas  of  the  internal  market,  namely  the  free 
movement  of  goods,  services  and  capital,  intellectual  property  law,  competition  policy,  and 
financial  services,  whereas  its  preparations  are  at  an  early  stage  on  consumer  and  health 
protection.  Albania has  some level  of preparation regarding freedom  of  movement  of workers, 
with some progress registered with the adoption of a new law on foreigners. Good progress was 
made  in  intellectual  property  thanks  to  the  adoption  of  legislation  on  copyright,  as  well  as  on 
industrial  property  rights.  There  was  also  good  progress  on  financial  services  by  the 
implementation of the non-performing loan (NPL) resolution strategy, leading to their reduction. 
Albania  has  made  some  progress  in  particular  by  implementing  legislation  on  compulsory 
insurance in transport and in fulfiling some of the recommendations of the Moneyval report, but 
the State Aid Commission needs to be made independent and sufficiently resourced. Preparations 
are at an early stage on consumer and health protection, as the country made limited progress; it 
needs to align to EU health acquis and learn lessons from the COVID-19 pandemic to strengthen 
health emergency preparedness.  

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  overall  and  on  last  year’s  recommendations,  notably  on 
alignment  with  the  EU  "new  and  global  approach"  product  acquis.  Despite  progress  on  the 
general  principles  and  on  structures  related  to  the  quality  infrastructure,  last  year’s 
recommendations remain valid, as efforts are still needed to ensure legislative alignment and to 
strengthen enforcement. 

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In the coming year, the country should in particular: 

  complete  the  alignment  of  its  legislation  with  the  EU  acquis  relevant  to  the  quality 

infrastructure; 

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

General principles 

Albania  removed  the  remaining  measures  in  place  that  affected  the  production,  distribution, 
and  marketing  of  industrial  products  in  the  previous  reporting  period.  Plans  for  further 
alignment with the EU acquis are set out in the 2022-2024 national plan for European integration 
adopted  in  February  2022,  and  in  the  current  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).  

Harmonised area: quality infrastructure 

Albania’s  legislation  on  accreditation  and  market  surveillance  is  partially  aligned  with  the  EU 
acquis. Administrative structures already exist to deal with technical regulations, standardisation, 
conformity  assessment,  metrology,  accreditation,  and  market  surveillance,  but  recruitment  of 
specialised  staff  to  the  Market  Surveillance  Inspectorate  is  still  ongoing.  Albania  has  mutual 
cooperation  agreements  on  accreditation,  standardisation,  and  conformity  assessment  with 
countries in the region and other non-EU countries. 

On standardisation, Albania adopted implementing legislation in  November 2021  designed to 
align  with  the  EU  acquis.  Albania’s  General  Directorate  of  Standardisation  (GDS)  is  a  full 
member of the European Telecommunication Standards Institute (ETSI), an affiliate member of 
the  European  Committee  for  Standardisation  (CEN)  and  the  European  Committee  for 
Electrotechnical  Standardisation  (CENELEC),  and  an  associate  member  of  the  International 
Electrotechnical Commission (IEC). It applied to become a full Member of CEN/CENELEC in 
July  2021.  National  standards  are  adopted  in  conformity  with  European  standards  (CEN, 
CENELEC and ETSI standards). During the reporting period, 2 225 European and international 
standards  were  adopted  (including  844  CEN,  454  CENELEC,  400  ETSI  ones,  as  well  as  336 
ISO,  and  191  IEC  standards).  100 %  of  the  harmonised  European  standards  were  adopted  as 
harmonised  Albanian  Standards  in  implementation  of  technical  harmonised  Directives  and 
Regulations.  

Albanian  legislation  on  the  accreditation  of  conformity  assessment  bodies  is  partially  aligned 
with the EU acquis. Staff at the General Directorate of Accreditation (GDA) increased from 14 
to  20  employees,  but  two  positions  are  still  vacant.  There  are  97  accredited  conformity 
assessment  bodies  (47  testing  laboratories,  4  medical  laboratories,  1  calibration  laboratory,  6 
certification bodies of management system, 11 certification bodies of persons and 28 inspection 
bodies).  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  certification  of  persons,  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.  The  General  Directorate  of  Metrology  (GDM) 

72 

 
 
 
maintained  its  capacity  of  104  employees  and  is  fully  operational.  It  is  a  full  member  of  the 
International  Organization  of  Legal  Metrology  (OIML),  European  Association  of  National 
Metrology Institutes (EURAMET) and International Measurement Confederation (IMEKO), and 
an associate member of the European Legal Metrology (WELMEC) and International Bureau of 
Weights and Measures (BIPM-CGPM).  

The  state  inspectorate  for  Market  Surveillance  (SIMS),  which  was  restructured  in  June  2020 
with  an  increase  of  the  number  of  possible  employees  from  69  up  to  80  staff  (currently 
employing  65  staff),  should  continue  to  increase  actual  staff  numbers,  including  inspectors.  In 
the  reporting  period,  SIMS  carried  out  more  than  1  700  inspections,  leading  to  152 
administrative  measures,  including  86  fines  and  25  urgent  measures.  In  total,  31  different 
products (3 697 units), have been taken off the market.  

Harmonised area: sectoral legislation  

In the area of  ‘new and global  approach’ product legislation  Albania adopted implementing 
legislation in the reporting period designed to be fully aligned with the EU  acquis on personal 
protective  equipment.  It  also  adopted  a  law  that  only  allows  pyrotechnical  articles  that  have 
fulfilled conformity procedures and have  the CE marking affixed to be placed on the Albanian 
market.  However,  alignment  has  not  yet  started  on  cableways,  gas  appliances,  simple  pressure 
vessels,  outdoor  equipment  noise  emissions,  explosive  atmospheres  equipment,  construction 
products, recreational craft, or on eco-design and energy labelling. 

As  regards  the  ‘old  approach’  product  legislation,  Albania  evaluates  that  its  legislation  is 
partly  aligned  with  the  EU  acquis  on  pre-packaging,  textiles,  footwear,  crystal  glass,  aerosol 
dispensers,  and  units  of  measurement.  Its  legislation  is  designed  to  be  fully  aligned  on 
Registration,  Evaluation,  Authorisation  and  Restriction  of  Chemicals  (REACH),  on  chemical 
classification,  labelling  and  packaging  (CLP)  and  on  detergents.  Implementing  legislation  was 
adopted in June 2021 designed to be aligned with the EU acquis on measuring bottles. Albania is 
not aligned on Good Laboratory Practice (GLP).  

Albanian legislation is not aligned on drug precursors, though the list of controlled substances 
complies  with  the  relevant  lists in  the  EU  acquis.  On  procedural  measures,  Albania  is  partly 
aligned  on  firearms,  crystal  glass,  footwear,  textile  labelling  and  mixtures,  and  the  pricing  of 
medicinal  products.  Albania  remains  partially  aligned  with  the  EU  acquis  on  defence  and 
security  procurement,  on  defence  products,  and  on  the  return  of  cultural  objects  unlawfully 
removed from the territory of a Member State. 

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  has  some  level  of  preparation  in  freedom  of  movement  for  workers.  Some  progress 
was  made  on  the  implementation  of  the  2021  report’s  recommendations  regarding  free 
movement  of  family  members  of  EU  citizens,  strenghtening  of  social  security  bilateral 
agreements  and  the  development  of  the  IT  system  for  mapping  job  seeker  vacancies  that  is 
preparing the implementation of the European network of employment services (EURES) upon 
accession. In the coming year, Albania should: 

  continue the development of the IT system to enable connection to EURES; 

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  adopt the implementing legislation for the new law on foreigners’; 

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

with EU Member States.  

As regards access to the labour market, Parliament adopted a new law on foreigners, enabling 
simplified procedures for EU citizens settling in Albania, in line with the EU acquis in this area. 
Further steps need to be taken to finalise the adoption of the related implementing legislation. 

In preparation for joining the European network of employment services (EURES), Albania 
has established an integrated database for its employment services that will facilitate exchanges 
of information between IT departments on civil status, the tax system, the compulsory healthcare 
system  and  the  economic  assistance  system.  The  IT  system  to  enable  connection  with  EURES 
needs to continue to be developed.  

On the coordination of social security systems, Albania has bilateral agreements in place with 
Austria, Belgium, Czechia, Germany,  Hungary,  Luxembourg, North Macedonia, Romania,  and 
Türkiye. The agreement with Kosovo was ratified by Albania in March 2022. The negotiations 
with  Bulgaria  for  a  new  agreement  were  concluded  in  2021,  and  its  entering  into  force  was 
postponed  to  2023.  Exchanges  on  coordinating  social  security  schemes  have  taken  place  with 
Croatia,  Greece,  Serbia,  and  Montenegro.  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 further EU Member States have 
yet to be fostered.  

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. 

Albania is moderately prepared in the right of establishment and freedom to provide services. 
Some progress was achieved in the reporting period, in particular in the field of postal services 
through  the  legal  alignment  made  in  the  area  of  cross-border  parcel  delivery  services.  The 
screening exercise of the legislation to be aligned with the Services Directive continued and its 
scope  was  widened.  The  country  should  focus  on  fully  implementing  the  Commission’s 
recommendations from 2021 which still remain valid. 

In the coming year, Albania should in particular: 

  finalise  the  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 to align its legislation with the EU acquis and ensure appropriate institutional 

capacity in the area of mutual recognition of professional qualifications. 

On  the  freedom  of  establishment  and  the  free  movement  of  services,  the  screening  of  the 
existing legislation - to identify barriers with a view to aligning it with the Services Directive  - 
continued  during  the  reporting  period.  So  far,  the  exercise  was  completed  for  20  sectors 
involving  the  review  of  151  pieces  of  legislation,  which  resulted  in  identifying  80  pieces  of 
legislation  that  will  need  to  be  revised  to  remove  provisions  that  are  contrary  to  the  Services 

74 

 
 
Directive.  In  total,  18  sectors  are  still  in  the  screening  process.  The  National  Business  Centre 
functions as a one-stop-shop for registering businesses and issuing licences, authorisations  and 
permits.  The  e-Albania.al  governmental  portal  serves  as  a  single  contact  point  for  electronic 
public services and as of May 2022, almost 95% of services are offered online. 

On  postal  services,  the  national  legislation  is  aligned  with  the  EU  postal  acquis.  Albania  is 
aligned  with  the  Postal  Services  Directive  since  2017,  when  the  postal  market  was  opened  to 
competition,  and  with  the  Regulation  on  cross-border  parcel  delivery  services  since  January 
2022.  Supporting  bylaws  were  adopted  in  June  2022,  as  regards,  for  example,  parcel  delivery 
services and transparency on cross border tariffs. Albania also adopted a new policy document 
on postal services, setting objectives to improve future postal sector performance in line with the 
EU  postal  acquis.  There  is  currently  one  universal  service  provider  (Albanian  Post  S.A.) 
designated for a period of 5 years, starting from July 2020, and 33 other postal service providers 
on the market.  

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.  A 
roadmap  on  professional  qualifications  is  yet  to  be  finalised.  Institutional  capacity  in  this  area 
still needs to be strengthened.  

Chapter 4: Free movement of capital  

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  on  the  implemention  of  Moneyval  recommendations  and  of  the  FATF  Action  Plan,  but 
limited progress was made on enabling EU citizens to acquire land. There was also progress on 
increasing financial literacy and in implementing the national payment system legislation. 

In the coming year, Albania should in particular: 

  finalise the implementation of the FATF Action Plan and continue to address the Moneyval 

recommendations;  

  avoid jeopardising the progress in this area by adopting a  tax and criminal amnesty against 

the advice of the EU and Moneyval; 

  progress in the adoption of the relevant legislation that would provide EU citizens with the 

right to  acquire land, which is outstanding since 2016. 

On  capital  movements  and  payments,  Albania  is  late  in  delivering  on  its  commitment  under 
the  2006  Stabilisation  and  Association  Agreement  (SAA)  to  amend  the  arrangements  for  the 
acquisition of property by EU nationals/entities, a step due since 2016. Provisions regulating the 
acquisition  of  agricultural  real  estate  by  foreigners  remain  unchanged  and  uncertainties  over 
ownership rights continue to discourage investment.  

On payment systems, foreign banks can open branches and agencies in Albania and offer cross-
border payments. In October 2021 Albania adopted legislation to partly align with the EU acquis 
on direct debits and credit transfers. The measures introduced by BoA in the context of COVID-

75 

 
 
19 restrictions in  March 2020 to  reduce the costs of payment systems  services and to  promote 
home banking remain in place. 

The  National  Payment  System  Committee,  which  is  open  to  representatives  of  non-bank 
financial institutions and payment system operators, is implementing the national retail payments 
strategy (NRPS) 2018-2023. The law on payment services, designed to be aligned with the EU 
Payment  Service  Directive  II  (PSD  II)  provisions  on  transparency  conditions  and  information 
requirements for payment services, came fully into effect in July 2022. Implementing legislation 
for this law was adopted in the reporting period, regulating the public register of payment service 
providers, amending the existing regulations on licensing of payment institutions and electronic 
money institutions, regulating the banking activities of banks and foreign banks’ branches. It also 
sets strong customer authentication requirements and common and secure open communication 
standards.  In  May  2022,  the  scope  of  application  of  the  regulation  on  International  Payment 
Account Number was extended to other payment service providers beyond banks in cases when 
the  IBAN  is  used.  The  financial  literacy  of  the  Albania’s  adult  population  is  increasing  (67  % 
now have a payment account of which 55 % are held by men, 45 % by women, compared to 40 
% in 2014), as is the use of electronic payments (12 electronic transactions per capita per adult, 
compared to 4 in 2016).  

On the fight against money laundering, Albania continues its efforts to address the deficiencies 
in  technical  compliance  identified  by  the  2018  Moneyval  mutual  evaluation  report.  Albania  is 
still  on  the  Financial  Action  Task  Force’s  (FATF)  list  of  jurisdictions  under  increased 
monitoring. There was steady progress in the implementation of its FATF Action Plan, though its 
completion is overdue since February 2022. The final pending action items from the Action Plan 
relate to sanctions with regard to beneficial ownership information/transparency obligations and 
increased convictions and confiscations. Amendments to the law on money laundering designed 
to  align  it  with  the  EU  acquis  were  adopted  in  December  2021.  The  Register  of  beneficiary 
owners  became  operational  at  the  end  of  June  2021  with  data  registered  by  businesses  and 
NGOs, though amendements extended the registration deadline to June 2022.  

Albania  has  legislation  in  place  on  risk  management  standards  and  licensing  requirements  of 
financial  institutions,  including  non-banks  and  foreign  exchange  bureaus,  following  the 
Moneyval  recommendations.  The  latest  Moneyval  report  (June  2022)  noted  improvements  on 
technical compliance with FATF recommendations and led an upgraded rating for three of them, 
i.e.,  the  transparency  of  beneficial  ownership  of  legal  persons,  supervision  of  financial 
institutions,  and  the  legal  framework  for  mutual  legal  assistance  with  foreign  counterparts  on 
non-conviction-based  confiscations.  Although  the  IMF  reiterated  in  May  2022  its  advice  to 
Albania  not  to  engage  in  a  possible  tax  amnesty,  given  concerns  about  its  impact  on  tax 
compliance as well as money laundering and governance risks, in June the government published 
for consultation a draft law on fiscal and criminal amnesty to those who will do voluntary assets 
disclosure.  The  adoption  of  such  a  law  against  the  advice  of  the  EU  and  Moneyval  could 
jeopardise progress in this area – see also chapter 24 – Justice Freedom and Security and 16 – 
Taxation. The Albanian Financial Intelligence Unit (FIU) has increased its staff, and trained its 
employees  on  financial  investigation  techniques,  asset  tracing,  seizure  and  confiscation,  risk-
based  implementation  techniques,  and  cybercrime  prevention  indicators.  The  head  of  the  FIA 
was changed twice in a short period by the government.  

In  2021  the  BoA  increased  its  inspections  on  foreign  exchange  offices  (FEO)  by  22 %  to  (90 
FEOs inspected, compared to 74 in 2020). Substantial discrepancies were identified in 26 FEOs, 

76 

 
 
which  led  to  12  license  revocations  –  the  others  received  recommendations  and  penalties.  The 
Public  Oversight  Board  carried  out  three  thematic  inspections  focused  on  preventing  money 
laundering  and  the  financing  of  terrorism,  identified  irregularities  were  refered  to  the  Finance 
Intelligence  Unit.  In  2021,  the  Financial  Supervisory  Authority  started  an  assessment  on  the 
Virtual Assets  and Virtual Asset Service Providers  and regulations on cryptocurrencies in order 
to  adjust  them  according  to  the  FATF  recommendations.  The  Albanian  Financial  Intelligence 
Unit (FIU) received 1 581 suspicious transaction reports in 2021, 12 % more than in 2020; 247 
of which were referred to law enforcement agencies, slightly less than in 2020.  

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.  No  progress  was  made  in  the 
reporting period, therefore the recommendations of last year remain valid.  

In the coming year, Albania should in particular: 

  Finalise  the  review  of  the  existing  legislation  in  the  area  of  company  law  to  identify 
amendments  needed  to  complete  alignment  with  the  EU  acquis  and  makes  progress  to 
introduce such amendments,   

  further  align  the legal  framework on accounting, transparency  and  audit  with  the latest  EU 

acquis in these areas.  

Although there is  some alignment with  the EU  acquis in  a range of  company law areas, there 
was  no  legislative  progress  in  the  reporting  period.  Further  alignment  is  needed  with  the  2019 
company law acquis on the use of digital tools and on cross-border operations, as well as with 
rules on the encouragement of long-term shareholder engagement. A corporate governance code 
for listed companies still needs to be developed. The National Business Centre is responsible for 
company registration, allowing free online registration and online access to data. Many services 
are offered only online through the e-Albania electronic service window, in particular since May 
2022.  Electronic  exchange  of  data  between  the  Albanian  business  register  and  EU  Member 
State’s  business  registers  is  possible,  while  proper  integration  among  these  databases  requires 
further development. 

On  transparency,  the  2020  Law  on  capital  markets  provides  specific  transparency  rules  for 
listed  companies  in  areas  related  to  initial  reporting  and  financial  reporting  including  fines  in 
case of non-compliance.  A regulation concerning listed  companies aiming  at  further alignment 
with  the  relevant  EU  acquis  on  transparency  requirements  was  drafted  and  published  for 
consultation. 

In the area of company reporting, the Law on accounting and financial statements is partially 
aligned  with  the  EU  Accounting  Directive.  The  National  Accounting  Council  (NAC)  monitors 
the  enforcement  of  financial  reporting  and  accounting  standards.  On  non-financial  reporting, 
there  are  only  guidelines  to  comply  with  the  EU  Directive  on  disclosure  of  non-financial  and 
diversity information by certain large undertakings and groups. On statutory audit, the Public 
Oversight  Board  (POB)  is  the  independent  competent  authority  for  quality  assurance  (with  its 
own budget). Since June 2021, the POB conducted 9 inspections of statutory auditors/audit firms 

77 

 
 
Albania should further strengthen POB capacity and align its framework with EU statutory audit 
rules. 

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  IPR  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. 
Good  progress  was  made  during  the  reporting  period,  in  particular  with  the  adoption  of  the 
National Strategy for Intellectual Property 2022 – 2025 and the legislative alignment with the EU 
acquis in the areas of copyright and other related rights as well as industrial property rights. In 
the coming year, Albania should in particular: 

  adopt  the  implementing  legislation  for  the  amendments  to  the  law  on  copyright  and  other 

related rights;  

  continue to improve the functioning of collective management organisations 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 intellectual property objects and the Copyright Directorate of the 
Ministry of Culture. The National Copyright Council, comprises five members appointed by the 
Minister for Culture, is responsible for certifying the tariff methodology.  

In April 2022, the Parliament adopted amendments to the “Law on copyright and other related 
rights”, which further aligns  the legal  framework with  the EU  acquis  in  the areas of a) certain 
permitted  uses  of  orphan  works;  b)  certain  permitted  uses  of  certain  works  and  other  subject 
matter protected by copyright and related rights for the benefit of persons who are blind, visually 
impaired or otherwise print-disabled, and c)  on the term  of protection of copyright  and  certain 
related  rights.  The  amendments  also  regulate  the  functioning  of  Collective  Management 
Organisations (CMOs) including the distribution manner and percentage of the fee as well as the 
remuneration collected by the CMOs. 

On industrial property rights, a law on trade secrets was adopted in July 2021 to align the legal 
framework with the EU acquis in this area. The new National Intellectual Property Strategy 2021 
– 2025 passed the phase of public consultation. 

In  2021,  there  were  1 404  national  and  2  107  international  applications  for  registration  of 
trademarks  (compared  to,  respectively,  1 164  and  2 936  in  2020).  In  2021,  49  applications  for 
registration  of  industrial  designs  were  submitted  to  the  GDIP  (compared  to  15  in  2020).  The 
number of applications for national  patents amounted to  23 for 2021, almost  the double of the 
applications recorded in 2020. 

The State Inspectorate for Market Surveillance  (SIMS) is responsible for the monitoring of the 
enforcement of intellectual property rights. In 2021, the Copyright Division of the SIMS carried 

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out  501  inspections  resulting  in  80  administrative  measures  (53  fines  and  27  warnings).  The 
SIMS  industrial  property  division  carried  out  11  inspections,  resulting  in  8  administrative 
measures (7 fines and one warning) in 2021. 

In  2021,  the  customs  administration  suspended  the  release  of  3 000  products  suspected  of 
infringing IPR (compared to over 23,000 such products in 2020).  

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 effetive 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 limited progress during the reporting period, in particular with the adoption of guidelines 
by  the  Albanian  Competition  Authority  (ACA)  on  best  practises  in  the  area  of  merger 
procedures. However, no progress was made in legislative alignment with the EU acquis in the 
area of State aid.  Despite recommendations  in  previous  years, the operational  independence of 
the State aid  Commission (SAC) has  not  yet  been ensured.  Its  enforcement  record needs to  be 
significantly  improved.  Recommendations  from  the  previous  year  were  not  met  and  remain 
valid. 

In the coming year, the country should in particular: 

  ensure the operational independence of the SAC and significantly increase the administrative 

capacity of SAC’s secretariat; 

  further align the legislative framework in the area of State aid with the EU acquis; 
  step  up  efforts  to  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  on  best 
practices in cases of implementation of procedures for the control of concentrations, in line with 
the EU best practices in this area. 

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. Parties  may appeal  against the ACA’s decisions 
before the courts. As regards enforcement capacity, the ACA has maintained its number of staff 
to 46 and its staff has benefitted from relevant training. On implementation, in 2021 the ACA 
took 94 decisions, including 28 on prohibited agreement, 16 on abuse of dominant position, 33 

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authorising  concentrations.  In  the  first  half  of  2022  ACA  took  37  decisions,  including  3  on 
prohibited agreement, 4 on abuse of dominant position and 24 authorising concentrations. In the 
reporting period, the ACA concluded sector enquiries in the hospital services market, fertilisers 
and  LNG  instruments.  The  ACA  should  continue  its  positive  efforts  to  strengthen  the 
enforcement of competition rules. 

State aid 

On  legislative  framework,  the  Law  on  State  aid  largely  reflects  Articles  107  and  108  TFEU. 
The implementing legislation is partially aligned with the EU acquis only 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. Its operational independence, which is required by the SAA, 
remains to be ensured given that it still depends on the Ministry of Finance. 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 remains insufficient as the staffing of its secretariat needs 
to be significantly increased. On implementation, the track record on State aid control remains 
very poor. The State Aid Commission approved only one decision in 2021 and 3 decisions in the 
first half of 2022 on the authorisation of State aid. No negative or recovery decision was taken. 
Advocacy activities among aid grantors need to be stepped up to ensure prior notification of aid 
measures.  

Liberalisation 

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

Chapter 9: Financial services 

EU  rules  aim  at  ensuring  fair  competition  among,  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. Good progress was made on 
last  year’s  recommendation  on  further  alignment  with  Basel  III,  the  resolution  plans  and  the 
retail  payments,  and  by  the  partial  implementation  of  the  policy  guidance  on  non-performing 
loans (NPL), leading to a reduction in NPLs. Progress was also made on the operationalisation of 
the bankruptcy legislation, and on compulsory insurance and collective investments. 
In the coming year, Albania should: 
  finalise the drafting and adopt the strategic documents on financial education and on capital 

market development; 

  improve  collateral  execution,  including  through  solving  the  impasse  on  private  bailiff 

services;  

  increase the use of the national currency. 

On  banks  and  financial  conglomerates,  the  Bank  of  Albania  (BoA)  continued  to  align  its 
banking  regulation  with  Basel  III,  notably  on  the  capital  adequacy  ratio.  It  adopted  legislation 

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designed to be aligned with the EU acquis on the internal liquidity adequacy assessment process, 
which provides a regulatory framework to ensure adequate levels of liquidity reserves. National 
legislation on the capital adequacy ratio and on the net stable funding ratio of banks were both 
amended in order to further align with the EU acquis on new credit risk requirements, the latter 
enters into force on 1 January 2023. National legislation designed to further align with the EU 
acquis was also adopted on establishing and operating asset management companies, and on the 
conditions for the types of agreements to be protected in partial asset transfers and liabilities of 
banks under resolution. For the first time since the establishment of the Resolution Authority and 
in line with regulatory deadlines, BoA completed resolution plans for all banks. 

The non-performing loan (NPL) ratio continued to decrease, to 5.42 % in April 2022 compared 
with  7.9 %  in  April  2021,  and  remained  at  a  similar  level  in  the  second  quarter  of  2022.  BoA 
adopted  a  decision  on  consumer  credit  and  mortgage  credit  in  September  2021  to  ensure  fair 
market  practices  with  regards  to  interest  rates,  commissions  and  penalities  applied  on  loan 
products,  especially  by  non-bank  financial  entities.  It  amended  national  legislation  on  the 
functioning of its credit registry and on conditions and  procedures on information and data use 
and  revision,  but  further  action  on  credit  scoring  is  still  needed.  National  legislation  was 
amended in November 2021 on transparency of banking and financial products and services to 
align  with  the  worldwide  reform  on  reference  indexes,  including  the  EU’s.  While  the  full 
implementation of the bankruptcy law enables further execution of the NPL Resolution Strategy, 
part of the collateral execution system is currently subject to court proceedings, which reduces its 
efficiency.  

Albania has a system to identify systemically important banks that is similar to EU practice, and 
the BoA has an investment  policy  for  the  financial  assets of the resolution  fund. New national 
legislation on the leverage ratio of banks and on the net stable funding ratio of banks, designed to 
further align bank legislation with Basel  III,  entered into force in January 2022.  In response to 
the  impact  of  the  COVID-19  pandemic,  BoA  also  temporarily  suspended  the  2019  and  2020 
dividend  distribution  for  banks,  in  order  to  boost  capital  and  support  lending.  It  renewed  this 
decision in January 2022.  

In  the  area  of  insurance  and  occupational  pensions,  national  legislation  on  compulsory 
insurance  in  the  transport  sector  is  designed  to  align  with  the  relevant  EU  acquis,  the  law 
provides  for  voluntary  implementation  of  the  bonus  malus  system  by  insurance  agencies. 
Implementing legislation was adopted during the reporting period enabling full implementation 
of the Law, including an application for personal injury calculation in cases of road accident. The 
insurance  market  continues  to  be  dominated  by  the  non-life  insurance  companies  (8  out  of  12 
companies).  In  February  2022,  the  Albanian  Financial  Supervisory  Authority  (AFSA)  lifted 
measures  taken  to  ensure  financial  sustainability  during  the  COVID-19  pandemic  to  require 
insurance companies to suspend the distribution of profits for 2020 via dividends or other forms 
of  payment.  In  March  2022,  the  AFSA  became  a  member  of  the  International  Association  of 
Insurance  Supervisors  (IAIS)  Multilateral  Memorandum  of  Understanding,  an  international 
supervisory cooperation and information exchange agreement   

Regarding  the  financial  market  infrastructure,  the  Albanian  Stock  Exchange,  which  is  a 
private entity, continues to only trade government bonds. Following its suspension in April 2022, 
the  public  stock  exchange  is  no  longer  registered  as  a  licensed  financial  subject  and  is  not 
operational. A Central Securities Depository (AFISAR) remains in place, operated by the BoA. 
The Albanian Securities Registry (ALREG),  a private company, ensures the settlement of non-

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government  securities.  The  agreement  between  BoA  and  AFSA,  stipulates  that  BoA  is 
responsible  for  minimising  the  systemic  risk,  and  AFSA  is  responsible  for  investor  protection. 
Since March 2021, ALREG is an indirect participant in the BoA’s Albanian Interbank Payment 
System. The guarantee fund’s regulation was adopted by the Board of AFSA. This means tha the 
post-trade  infrastructure  is  fully  operational.  Albania’s  legal  framework  on  capital  markets  is 
partially  aligned  with  MiFID  II,  as  well  as  the  EU  acquis  on  transparency,  market  abuse, 
prospectuses, settlement and central securities depositaries. Albania’s capital market consists of 
two segments: i) government securities and ii) bonds issued through private placement. During 
the  reporting  period,  AFSA  has  licensed  two  banks  to  perform  investment  services.  Currently 
there are 13 entities which operate in the capital market, mainly banks, and one central securities 
depository  and  one  securities  exchange.  Implementation  of  the  compliance  and  risk-based 
supervision  of  the  collective  investment  undertakings  will  be  based  on  the  manual  adopted  by 
AFSA in May 2022. Relevant entities are required to increase the frequency of their reporting to 
AFSA on net redemptions and liquidity indicators. 

The expiry period of the privatisation vouchers was extended until  December 2023. Regarding 
securities markets and investment services, AFSA continues to supervise regulated markets in 
accordance with the Law on capital markets.  

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 
limited progress on last year’s recommendations with the adoption of the new policy framework 
for  health  2022-2030.  The  policy  addresses  not  only  emergency  preparedness  but  all  aspect  of 
the  health  system.  Significant  progress  still  needs  to  be  made  to  implement  the  One  Health 
approach and all-hazard health preparedness, to strengthen the policy framework and ensure that 
everyone in  Albania has quality healthcare coverage, as revealed by the  COVID-19 pandemic. 
There was some progress on alternative dispute resolution of consumers. 

In the coming year, the country should in particular:  

  further  align  its  legislation  with  the  EU  health  acquis  on  substances  of  human  origin,  on 
medicines for human and veterinary use, and on tobacco control, and accede to the WHO’s 
Framework Convention Protocol to Eliminate Illicit Trade in Tobacco Products; 

  increase the allocations of financial and human resources in the health sector, specifically in 
primary health care, and use the lessons learnt from the COVID-19 pandemic to strengthen 
all-hazard health emergency preparedness, including threats beyond communicable diseases 
and responses both at central and local level, and increase quality and consistency of data; 

  guarantee equal access to quality health services for vulnerable populations, including Roma 
and Egyptian minorities, older people, people with pre-existing mental health problems, with 
disabilities,  rural  or  remote  populations,  notably  for  women  and  girls  belonging  to  these 
groups who are often subjected to multiple forms of discrimination. 

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Consumer protection  

On  horizontal  aspects,  in  the  reporting  period  Albania’s  Consumer  Protection  Commission 
(CPC)  met  seven  times  and  took  five  decisions  related  to  misleading/unfair  commercial 
practices.  During  the  same  period,  CPC  received  65  complaints  (58  by  individual  consumers, 
consumer organizations or local government, 7 from businesses).  30 complaints were resolved, 
28  were  referred  to  competent  authorities,  and  the  others  are  being  processed.  Implementing 
legislation  adopted  in  July  2021  completes  the  legal  basis  for  the  General  Directorate  on 
Alternative Dispute Resolution of consumers, setting the criteria for the functioning of structures 
for alternative dispute resolution.  

National legislation is partially aligned with the EU acquis on product safety. In the reporting 
period  the  State  Inspectorate  for  Market  Surveillance  (SIMS)  carried  out  more  than  1  700 
inspections,  checking  more  than  7 000  products  of  which  441  were  found  in  non-conformity, 
leading to 152 administrative measures (51 warnings, 86 fines and 25 urgent measures). In total, 
31  different  products  (3 697  units),  have  been  banned  from  trading.  On  non-safety-related 
issues, progress was made towards partial alignment to the EU acquis on distance marketing of 
consumer  financial  services  by  the  adoption  of  implementing  legislation  in  December  2021 
designed to improve the rules on the information to be provided to consumers by traders. 

Public health 

On public health, a new policy framework covering the period 2021-2030 was adopted in April 
2022 and the 2020-2025 action document on primary health care is  being implemented. Public 
spending  on  health  remains  low  overall,  with  disproportionate  allocations  for  primary  health 
care, especially maternal and child health. Further investment is needed to progressively ensure 
universal health coverage, especially to address the needs of hard-to-reach groups and the most 
disadvantaged.  The  mortality  rate  remains  high,  particularly  neonatal,  under  5,  and  infant 
mortality  (at  8,  9,  and  11  per  1 000  live  births  respectively).  The  quality  of  neonatal  care  is  a 
particular  concern.  Health  governance  remains  unclear,  and  the  inadequate  quality  of  primary 
health  care  services  is  a  key  bottleneck.  Among  cases  reported  in  2021  by  the  State  Supreme 
Audit Institution to the prosecution, one case involved a former Minister of Health. Albania has 
ratified  most  international  conventions  related  to  the  protection  of  fundamental  rights,  but 
obstacles persist across the country on the right to health and to sexual and reproductive health 
services, particularly for vulnerable groups. Abortion care is guaranteed by law, but women from 
vulnerable groups, especially Roma and Egyptians, face barriers getting it.  

The Ministry of Health and Social Protection (MHSP) and the National Agency of Information 
Society  (NAIS)  are  responsible  for  e-health.  MHSP  implements  and  operates  an  electronic 
system  for  collecting  and  reporting  health  information  of  medical  records  based  on  European 
Core Health Indicators (ECHI), but the system is still not operational. An e-register (available 
on the e-Albania portal), upgraded with more functions in 2021, is used for the identification of 
insured  persons  and  the  generation  of  health  cards.  It  enables  the  registration  of  patients  to 
healthcare  centres  and  determines  their  benefit  category  based  on  its  interaction  with  other 
institutional  databases.  A  new hospital  information  management  system, which will include an 
electronic database of patients’ medical records, is being implemented in four regional hospitals. 
Despite  progress  in  statistical  governance,  technological  health  infrastructure/equipment  and 
human resources remain inadequate, especially in rural areas.   

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Albania’s legislation on  blood, tissues, cells and organs is  not  fully aligned with  the  relevant 
EU acquis, and there is no system in place to report alerts, serious adverse reactions, events or 
provide feedback. On tobacco control, the law to protect public health against tobacco products, 
designed  to  be  aligned  with  the  EU  acquis,  is  being  implemented,  but  Albania  still  needs  to 
accede to the World Health Organization’s Framework Convention Protocol to Eliminate Illicit 
Trade in Tobacco Products, and to further align its legislation with the EU acquis. In the field of 
serious  cross-border  health  threats  including  communicable  diseases,  the  COVID-19 
pandemic  has  shown  significant  shortcomings.  The  legal  basis  for  communicable  disease 
prevention  and  control  is  designed  to  be  in  line  with  the  EU  acquis,  but  the  implementing 
legislation has still not been adopted. Albania has an antimicrobial resistance (AMR) action plan. 
Though  Albania  strengthened  its  national  alert,  response  and  surveillance  system  for 
communicable  diseases  during  the  COVID-19  pandemic,  no  national  plan  for  implementing 
international  health regulations was in  place when  the pandemic broke out, and its impact  was 
exacerbated by a lack of systemic preparation and low public health resilience.  

During  the  COVID-19  pandemic,  Albania  made  some  progress  on  vaccine  distribution  and 
coordination,  although  the  vaccination  rate  is  lower  than  expected.  The  pandemic  further 
stretched  the  health  care  system’s  capacities  to  provide  immediate  access  to  medical  supplies, 
protective  equipment,  and  the  digital  infrastructure  required  to  maintain  essential  services  and 
protect  health  care  personnel  and  patients,  showing  it  lacks  resources.  In  2021  Albania  took 
adequate measures to respond to the pandemic, moving from a lockdown approach to a regulated 
one,  with  schools  remaining  open,  although  education  was  partially  disrupted.  Maternal  and 
child  health  service  delivery  were  negatively  affected  due  to  temporary  shortages  of  health 
personnel. The pandemic highlighted weaknesses in the area of health emergency management 
and preparedness, especially in infection prevention and control (IPC) and epidemiological data. 
Albania  should  invest  in  epidemiological  research  and  monitoring  to  capitalise  on  the  lessons 
learnt from the COVID-19 pandemic, in terms of health system resilience and coordination, and 
in  staff  training.  The  capacities  of  the  health  personnel  as  well  as  system-related  challenges  in 
ensuring 
interventions,  and 
development  of  the  IPC  protocols  officially  endorsed  by  the  Ministry  of  Health  and  Social 
Protection in March 2021. Albania continues to participate in the EU Health Security Committee 
as  an  observer,  and,  as  a  signatory,  makes  use  of  the  EU  Joint  Procurement  Agreement  on 
medical counter-measures. It is part of the European COVID-19 Surveillance Network, reporting 
COVID-19 data to the European Surveillance System (TESSy) managed by the European Centre 
for Disease Prevention and Control (ECDC), and is part of viral respiratory disease surveillance 
networks managed by European Centre for Disease Prevention and Control (ECDC) and reports 
to  it  on  several  communicable  diseases,  though  it  should  improve  the  timeliness  and 
completeness of the reported data it provides.  

IPC  standards  were  addressed 

through  capacity-building 

Albania’s legislation on patients’ rights in cross-border healthcare has not yet been  aligned 
with the EU acquis, while its legislation on medicines for human and veterinary use is partly 
aligned.  There  was  no  significant  progress  on  standards  in  the  pharmaceutical  sector.  There  is 
still no specific legislation to address the risk of falsified medicine in the legal supply, although 
some provisions are in  place. Additional  efforts  are needed to  protect  the public from  falsified 
medical  products  and  cross-border  cooperation  for  sustainable  access  to  medicines  and  their 
correct use. There were no developments or expertise available on paediatric medical products, 
medical  products  for the diagnosis, orphan medical  products,  medical  products  based on genes 

84 

 
 
(gene  therapy),  cells  (cell  therapy)  or  tissues  (tissue  engineering).  Albania  needs  to  increase 
investment and capacity building in this sector. 

On preventive measures, a national cancer control plan is in place. Appropriate structures for 
cancer  screening  services  are  in  place,  but  a  cancer  registry  has  still  not  been  established.  A 
breast cancer screening programme is in place, which includes systematic examinations for 50-
60  year  old  women,  along  with  free  clinical  breast  examinations.  There  is  a  national  plan  for 
cervical  cancer  screening,  but  health  care  service  integration  issues  limit  its  effectiveness. 
COVID-19 severely impacted the prevention and control of non-communicable diseases, though 
essential treatment services were ensured. 

On nutrition and physical activity, malnutrition is a critical issue, especially for children and 
pregnant women. Albania needs to develop a nutrition plan and raise awareness in schools and 
community centres on the risks of malnutrition. National legislation on the pricing of medicinal 
products  is  partly  aligned  with  the  EU  common  procedural  framework  and  acquis.  On  drug 
abuse  prevention  and  harm  reduction,  prevention  activities  are  only  sporadic,  and  should  be 
conducted  in  a  more  systematic  way.  The  National  Drug  Observatory,  established  in  2011, 
should be given adequate resources for it to function fully.  

On health inequalities, implementation of the 2020-2025 Primary Health Care Strategy should 
provide better access to health care services for vulnerable communities, as well as an increased 
community  primary  health  care  coverage,  giving  priority  to  vulnerable  groups.  The  national 
community  health  care  programme  continues  to  provide  residential  health  care  mainly  for 
marginalised Roma and Egyptian minorities. While there was an increase in the number of Roma 
and Egyptians in informal settlements benefiting from health services delivered by mobile teams 
and  HIV  awareness  activities  were  conducted  for  Roma  and  Egyptians  communities.  Health 
insurance  coverage  for  Roma  and  Egyptians  remains,  however,  low.  A  National  Plan  for 
Equality,  Inclusion  and  Participation  for  Roma  and  Egyptians  2021-2025  was  approved  in 
November  2021  to  facilitate  their  access  to  healthcare.  The  health  mediator  should  also  help 
decrease  healthcare  barriers  for  Roma  and  Egyptians.  Further  efforts  are  needed  to  improve 
access to services for other groups, including women, people with disabilities and populations in 
rural or remote areas, and for mental health for children. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH  

This  cluster  covers:  digital  transformation  and  media  (Chapter  10);  taxation  (Chapter  16); 
economic  and  monetary  policy  (Chapter  17);  social  policy  and  employment  (Chapter  19); 
industrial policy (Chapter 20), science and research (Chapter 25); education and culture (Chapter 
26); and customs (Chapter 29).  

There is a moderate level of preparation in Albania in many areas linked to competitiveness and 
inclusive  growth,  namely  digital  transformation  and  media,  taxation,  economic  and  monetary 
policy,  enterprise  and  industrial  policy,  education  and  culture.  The  same  goes  for  the  customs 
union, where the pan-Euro-Mediterranean area rules of origin are applied, and bodies involved in 
the fight against smuggling and counterfeit goods are strengthened and cooperate better. Albania 
has  some  level  of  preparation  in  social  policy  and  employment,  and  research  and  innovation. 
Albania  has  made  progress  in  particular  with  the  adoption  of  the  new  National  Strategy  for 
Education and Action Plan 2021-2026, but progress was limited on the economic and monetary 
policy.  

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This  cluster  and  the  reforms  concerned  have  significant  links  to  Albania’s  Economic  Reform 
Programme.  Socio-economic  reforms  must  be  pursued  to  help  address  the  existing  structural 
weaknesses,  low  competitiveness,  high  unemployment,  as  well  as  the  impact  of  both  the 
COVID-19 pandemic and of the Russian war in Ukraine.  

Chapter 10: Digital transformation and media 

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

Albania  is  moderately  prepared  in  the  field  of  digital  transformation  and  media.  Limited 
progress  was  made  on  implementing  the  recommendations  of  the  previous  report.  The  112 
emergency number was activated in Tirana and resources were allocated for its extension to 12 
additional  regions.  Further  progress  was  made  with  the  adoption  of  the  2022–2026  Digital 
Agenda  and  on  e-government  services.  The  Law  on  e-on  Electronic  Document,  Electronic 
Identification  and  Trust  Services  in  Electronic  Business  was  adopted  in  2021,  fully  aligning 
national legislation with the EU eIDAS Regulation.   

In the coming year, Albania should in particular: 

  complete the extension of the 112 emergency number to 12 additional regions;  

  adopt relevant legislation in line with the new European Electronic Communications Code;  

  improve the collection of statistical data on digital performance and digital competitiveness. 

On  electronic  communications  and  information  and  communications  technologies  (ICT), 
some  progress  was  made  in  implementing  the  single  European  emergency  number  112.  As 
planned  in  the  medium-term  budget  programme  2021-2023,  the  deadline  for  the  unified 
emergency number 112 to be extended to 12 other regions of Albania is end of 2022.  

In 2021, fixed internet  broadband penetration  covered 559 394  subscribers (508 254 household 
subscribers  and  51 140  businesses),  which  is  a  10 %  increase  from  2020.  The  penetration  rate 
was about 20 % of the population with 58.7 % of the households being covered. The gap in fixed 
internet-broadband  penetration  between  urban  and  rural  areas  remains.  Rural  areas  account  for 
40 % of the population, but only 109 652 subscribers are connected to the fixed broadband, while 
in urban area 449 472 subscribers are connected. The mobile penetration rate at the end of 2021 
was 73 % compared with 70 % at the end of 2020. In 2021, there were 2 million active users of 
mobile broadband, which is the same as in 2020. The volume of data usage during 2021 are 155 
million GB from mobile network and 952 million GB from fixed network.  

In  the  area  of  information  society  services,  the  National  Agency  of  Information  Society  has 
finalised the 2022–2026 Digital Agenda of Albania, which was adopted in June 2022. The law 
on e-on Electronic Document, Electronic Identification and Trust Services in Electronic Business 
was adopted in 2021, fully aligning national legislation with the EU’s eIDAS Regulation.  

The  revised  Action  Plan  2020–2022  of  the  Digital  Agenda  continued  to  be  implemented  and 
some of the completed activities included the digitisation of Archives for General Directorate of 
Civil  Registry,  the  National  Employment  Service  System  “Dua  Pune”  (I  need  a  job),  the 
electronic platform e-Transport, the digitalisation of customs services, the e-Invoice system and 
the National Forest Information System. 

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Regarding the on-line public services, during the reporting period, 95 % of the applications for 
1 217 public services were done online, with 6 295 567 e-sealed documents downloaded in 2021 
by  2 537 042  registered  users  (2 336 510  citizens  and  200 532  businesses)  on  the  e-Albania 
portal. This adds up to 13 771 931 e-services uses in 2021. 

Regarding the establishment of a multiannual radio spectrum policy program, the deadline to free 
up the 700 MHz for 5G networks initially set up for 30 June 2022, was postponed because the 
National  Frequency  Plan  is  not  yet  finalised.  The  new  draft  national  frequency  plan  was 
approved in  November  2021, introducing important  changes to  the spectrum  available for new 
services and technologies, mobile broadband including bands for 5G. The process for spectrum 
coordination with neighbouring countries is not yet finalised; Montenegro, Italy and Croatia are 
still pending. A Memorandum of Understanding on 5G for digital transformation in the Western 
Balkans  was  signed  in  Tirana  on  2  November  2020  by  ministers  of  Western  Balkans  and  in 
2021, a draft 5G roadmap was prepared by the Albanian authorities but still needs to be adopted.  

The National Authority on Electronic Certification and Cybersecurity has taken some new steps 
to align further the Law on cybersecurity 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. The National Strategy for Cyber Security 2020–2025 and its 
Action Plan are in place since 2020.  

Albania still needs to improve the collection of statistical data on digital performance and digital 
competitiveness. 

On  audio-visual  policy,  in  February  2022,  the  parliament  filled  6  vacancies  out  of  the  7 
members  of  the  audio-visual  regulatory  authority  (AMA),  thus  making  the  authority  fully 
operational and ending a long institutional deadlock. The independence of some of the members 
has been questioned due to their alleged political links.  

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.  Limited  progress  was  made,  in 
particular  by  addressing  last  year’s  recommendations,  including  compliance  with  agreed 
payment  schedules  for  VAT  refunds  and  reducing  the  stock  of  arrears  in  VAT  refunds,  the 
approval  of  a  new  calendar  on  tobacco  excise,  and  consultation  of  the  draft  medium  term 
strategies  which  includes  proposals  to  address  tax  expenditures.  The  adoption  of  a  tax  and 
criminal amnesty against the advice of the EU and Moneyval  could  jeopardise progress  in  this 
area – see also chapter 4 – Free Movement of Capital and 4 – Justice Freedom and Security. 

In the coming year, Albania should in particular: 

  Implement measures to reduce tax expenditures, in particular due to exemptions;  

  simplify the taxation system to further encourage enhanced tax compliance; 

  provide  the  needed  capacities  and  undertake  the  measures  to  ensure  the  effective 
implementation of the automatic exchange of tax information with EU Member States in line 
with the OECD Global Standard 

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On indirect taxation, the standard VAT rate is 20 % and the reduced rates are 6 % and 10 %. In 
2021, Albania restricted its VAT exemption on the import of machinery and equipment to apply 
only  where  said  imports  exceeded  a  value  of  approx.  EUR  4.2  million. The  quarterly  stock  of 
VAT refund arrears is regularly published. Repayment of large taxpayers and faster VAT refund 
payments resulted in a stock reduction to EUR 4 million by end-2021 as compared to EUR 80 
million by end-2020. The COVID-19 response remains in place until 2029, according to which 
only  taxpayers  with  annual  turnover  above  EUR  81 750  (the  previous  threshold  was  EUR 
16 350)  are  subject  to  VAT  and  those  with  annual  turnover  above  EUR  40 870  can  opt  to  be 
subject to VAT.  

Excise  taxation  is  partially  aligned  with  the  EU  acquis.  As  of  July  2022,  the  excise  level  for 
liquefied  gas  is  unified,  irrespective  of  purpose  of  use.  In  November  2021,  a  new  calendar  on 
tobacco excise rates was approved. It envisages a 15 % increase over four years to approx. EUR 
65 per 1 000 cigarettes by 2026, thus gradually aligning with the EU minima. Small producers of 
alcoholic beverages continue to enjoy reduced tax rates.  

Regarding direct taxation, financial institutions are legally required to calculate, withhold, and 
declare income tax on income from savings. Following changes made in direct taxation in 2020 
to  support  taxpayers  affected  by  the  COVID-19,  since  January  2021,  taxpayers  with  a  total 
annual income up to ALL14 million (approx. EUR 115 000) are subject to a 0 % rate on profit 
tax,  while  those  whose  total  annual  income  exceeds  the  threshold  are  subject  to  a  15 %  rate. 
Albania has a partially aligned framework with the Merger Directive. Anti-corruption measures 
continue to have a limited impact in tax administraion, which remains a particularly vulnerable 
area in this respect.  

On  administrative  cooperation  and  mutual  assistance,  Albania  is  yet  to  conclude  double 
taxation agreements with Denmark, Cyprus, Lithuania, Portugal, Slovakia, and Finland. The law 
on automatic exchange of information on financial accounts is partially aligned with the relevant 
2014 EU Directive. For the first time, in 2021, Albania had reciprocal automatic exchange with 
17 jurisdictions. 

As  regards  operational  capacity  and  computerisation,  the  personnel  structure  of  the  tax 
administration has been kept stable at 1 450 since March 2020. As of April 2022, the number of 
vacancies was further reduced, yet still high, to 155 (10.7 %) as compared to 168 (11.6 %) in last 
year’s report. The annual training programme is needs-based and 1 370 employees of the GDT 
participated  in  trainings  in  2021,  including  on  the  new  fiscalisation  process.  In  addition  to 
electronic invoices for cashless transactions between businesses and government (since January 
2021), those between businesses (since July 2021), and between businesses and consumers (since 
September  2021)  became  mandatory  in  an  effort  to  increase  tax  compliance  and  reduce 
informality. 

Albania  does  not  yet  have  the  technical  capacity  to  facilitate  the  efficient  exchange  of 
information for tax purposes with the EU countries. The electronic tax administration system is 
operational,  but  there are no deadlines  to  achieve interconnection and interoperability with  EU 
systems. 

Chapter 17: Economic and monetary policy 

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EU  rules  require  the  independence  of  central  banks  and  prohibit  them  from  directly  financing 
the public sector. EU 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  and  has  made 
limited progress on last year’s recommendations to improve government’s policy coordination 
and  consultation  mechanism  with  non-governmental  stakeholders.  Although  the  Bank  of 
Albania’s  governor  was  re-appointed  for  his  second  mandate  and  monetary  policy  was 
appropriate and effective, no progress was made in fully aligning the Law of the Bank of Albania 
with the EU acquis. There was some progress in providing data required for the calculation of 
the macroeconomic imbalances procedure (MIP) indicators, in aligning government and national 
accounts to  ESA2010, and Excessive Deficit Procedures notifications,  which Albania regularly 
submits on a best-effort basis. However, significant improvements are still needed to achieve full 
compliance with ESA 2010.  

Albania should therefore: 

  align  the  legislation  on  the  personal  independence  of  the  Bank  of  Albania’s  governor  and 
council  members  as  well  as  regarding  the  possible  monetary  financing  of  the  public  sector 
with the EU acquis;  

  improve  the  government’s  economic  policy  planning  capacity  and  its  coordination  and 

consultation mechanism with non-governmental stakeholders; 

In the area of monetary policy, the central bank’s primary objective, set out in the Law on the 
Bank of Albania (BoA), remains to achieve and maintain price stability. The BoA is financially 
independent,  with  sufficient  instruments,  competence  and  administrative  capacity  to  function 
effectively  and  to  conduct  an  efficient  monetary  policy.  It  has  a  fully  operational  supervisory 
council, appointed by and accountable to the parliament. Monetary policy is conducted within a 
free-floating exchange rate regime using a standard set of instruments: i) open market operations; 
ii)  standing  facilities;  and  iii)  required  minimum  reserves.  The  Albanian  legislation  allows  the 
BoA to provide limited financing to the government under certain conditions, which is not in line 
with the EU acquis. 

In  view  of  increased  inflationary  pressures  due  to  global  price  increases,  the  BoA  started  the 
normalisation of its monetary policy since March 2022 by increasing the main policy rate from 
its record low 0.5% (unchanged since March 2020) in steps to 1.75% in August 2022, in addition 
to  raising  the  rates  for  overnight  deposit  and  lending  facilities  by  0.65pps  and  1.85pps 
respectively. The BoA continued to provide liquidity to the economy, and to publish quarterly its 
interventions in the money market.  

The BoA updated and extended its Medium-Term Development Strategy for 2022-2024, which 
includes  the  objective  to  strengthen  the  Bank’s  independence  to  conform  with  the  gradual 
approximation of the EU legislation. The strategy foresees to enhance the effectiveness and pass-
through  of  the  BoA’s  monetary  policy  by  developing  the  financial  market  (interbank  money 
market, forward market, more SWAP instruments, secondary market for government securities). 
The BoA also announced to gradually conclude its intermediary activity in buying and managing 
the Albanian Government’s securities accounts within 2022 and to further improve its statistics.  

89 

 
 
 
In the area of economic policy, further alignment with the EU acquis on budgetary frameworks 
is needed. Albania has a set of fiscal rules, which it complied with since their adoption in 2016, 
except in 2020 when the escape clause was activated due to the state of emergency following the 
outbreak of COVID-19. A new numerical rule to achieve a neutral or positive primary balance 
from 2023 was added to the budget legislation in 2020, which considerably strengthens the fiscal 
rules framework. However, in July 2021 the application of this rule was postponed to 2024 and 
the  other  fiscal  rules  were  suspended  by  a  normative  act,  which  accompanied  a  budget 
amendment to increase the fiscal deficit. Albania has no independent fiscal institution to monitor 
compliance with its fiscal rules and the quality of its forecast. However, it is obliged by law to 
use  the  IMF’s  forecast  for  nominal  GDP  as  basis  for  calculating  the  public  debt-to-GDP  ratio, 
which  the  debt  rule  requires  to  be  lowered  every  year  until  the  prescribed  ceiling  of  45%  is 
reached.  Albania  used  normative  acts  to  amend  its  2021  budget  six  times  to  address  the 
economic fall-out of the COVID-19 pandemic. The frequency of budget amendments and the use 
of  normative  acts  instead  of  the  regular  legislative  process  highlights  weaknesses  in  planning 
capacity and compromises the credibility of the budget preparation process.  

The presentation and publication of the annual budget includes a medium-term fiscal framework 
with a horizon of more than 3 years on a rolling basis, a forecast of government debt and of the 
macroeconomic  development.  This  framework  is  not  always  updated  and  published  when  the 
annual  budget  is  amended.  The  government  presents  fiscal  risk statements and tax expenditure 
reports  with  the  support  of  technical  assistance.  The  budgetary  framework  needs  to  be  more 
comprehensive and would benefit from an improved macro-fiscal analysis, a more detailed and 
consistent  breakdown  of  budget  headings  and  the  addition  of  long-term  fiscal  sustainability 
indicators. Albania regularly submits most of the Excessive Deficit Procedure notification tables 
to Eurostat on a best-effort basis, but the data are not yet fully in line with the European System 
of  National  and  Regional  Accounts  (ESA2010)  requirements,  and  the  questionnaires  are  not 
complete. Work on the delineation of the public sector in line with ESA2010 and data on extra-
budgetary  units  is  in  progress,  but  not  yet  complete.  The  budget  preparation  involves  all 
governmental  units,  but  the  expenditure  plans  of  local  governments  are  not  detailed  in  the 
framework.  

The  budget  planning  is  not  based  on  estimates  of  last  year’s  actual  fiscal  outcome  but  on  the 
previous  year’s  budget  plan,  which  requires  a  first  budget  revision  shortly  after  parliamentary 
budget  approval,  when  the  fiscal  implementation  and  debt  data  become  available.  Albania 
submitted its Economic Reform Programme (ERP) 2022-2024 on time but its fiscal framework 
was  not  based  on  up-to-date  budget  figures,  and  it  did  not  include  any  proceeds  from 
consultations  with  non-governmental  stakeholders,  because  these  are  not  using  the  new  online 
public  consultation  platform  to  which  the  consultation  of  the  ERP  was  restricted.  Albania 
remains  in  need  of  effective  stakeholder  consultation  processes  as  well  as  of  strengthening  its 
inter-institutional  coordination  mechanism  for  comprehensive  strategic  policy  planning  and  its 
capacities to ensure the efficient implementation of reforms.  

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 in implementing recommendations of the previous report, especially by strengthening the 

90 

 
 
quality and effectiveness of labour market institutions and providing employment services to the 
most  vulnerable  groups.  During  2021,  Albania  continued  restructuring  its  employment 
governance. The social care reform is progressing, but financial and administrative efforts need 
to  be  stepped  up  to  strengthen  the  local  level  capacities  for  service  delivery  and  the  links  to 
active labour market measures. Albania needs to address the coverage and financial allocation of 
the Social Fund, ensure implementation  of legislation on public procurement of social services 
and of the management information system for social care. The triple shock stemming from the 
2019 earthquake, the COVID-19 pandemic, and the consequences of the war against Ukraine has 
negatively impacted the most vulnerable categories, which needs to be assessed and mitigated. 

In the coming year, Albania should:   

  adopt the 2023-2030 strategy for employment and skills, incorporating the objectives of the 
decent work agenda, the Youth Guarantee scheme, as well as green and digital transition and 
provide adequate human and financial resources for its implementation;  

   increase  budget  allocation  for  the  Social  Fund  to  finance  social  care  services  and  improve 
operational modalities for distribution and implement the legal framework on procurement of 
social care services; 

  adopt  the  action  plan  and  the  costing  of  the  Youth  Guarantee  scheme  in  line  with  the  EU 
model  and  guidance,  incorporating  its  objectives  in  the  new  strategy  on  Employment  and 
Skills. 

Regarding  the  labour  law,  the  implementation  of  the  amended  Labour  Code  is  under  way. 
Twenty-five  (25)  EU  regulations  in  the  field  of  occupational  safety  and  health  have  been 
transposed as well, covering areas such as: safety at work, equal treatment between women and 
men etc. 

After  the  significant  slowdown  of  inspection  activities  during  the  COVID-19  pandemic,  the 
number of inspections has significantly increased in 2021 (from 5 994 in 2020 to 7 039 in 2021, 
and  over  184 000  jobs  verified).  Progress  was  made  on  the  promotion  on  the  e-inspection 
platform. In 2021, the restructuring of the State Labour Inspectorate and Social Services (SLISS) 
entered into force both centrally and at local level, with 165 positions overall (+11 compared to 
the previous year), but further steps are needed to strengthen its capacities on human resources, 
regular training and adequate means to perform duties. In particular, it is essential to enhance the 
tripartite collaboration among SLSSI, trade unions and business organisations in designing  and 
conducting the company visits and in addressing issues impacting the observance of the labour 
relations and working conditions in companies and institutions. 

On child labour, the system for monitoring child labour and other forms of exploitation, as well 
as  the  coordination  of  law  enforcement  between  the  Agency  for  the  Protection  of  Children’s 
Rights and the Labour Inspectorate still need to be strengthened.  

On health and safety at work (OSH), a new policy framework has to be adopted based on a gap 
analysis  and  in  line  with  the  new  EU  OSH  strategic  priorities,  with  a  focus  on  strengthening 
institutional capacity to effectively enforce compliance with the legislation.  

On  bipartite  social  dialogue,  some  progress  was  made  with  the  ratification  of  the  ILO 
Convention  190  on  “Violence  and  Harassment  in  the  World  of  Work”.  It  is  important  that  the 
government  undertake  concrete  measures  and  revise  the  legislation  in  alignment  with  the  ILO 

91 

 
 
convention.  Regarding  tripartite  social  dialogue,  good  progress  was  made  to  strengthen  the 
capacities  of  the  newly  assigned  staff  of  the  National  Labour  Council  (NLC)  Secretariat.  The 
NLC met only once during 2021. The mandate of the former NCL  ended in 2021 and the new 
NCL  needs  to  be  established  and  convened.  There  is  currently  no  meaningful  dialogue  at  any 
level.  

On employment policy, Albania is implementing the last year of the National Employment and 
Skills  Strategy  (NESS)  2014-2022  and  already  started  the  preparation  of  the  new  policy 
framework 2023-2030.  

Labour force participation for the 15-64  year  olds  reached  69.3 % in  2021, a  0.2 percentage 
point higher compared to the same period in 2020 and reflects the ongoing slow recovery from 
the  COVID-19  pandemic  and  other  external  shocks.  The  female  labour  force  participation  rate 
reached 63.2 % at the end of the year, whereas for men this indicator is 77.7 %. The male labour 
force participation rate is 15.9 percentage points higher than women, showing a systemic gender 
gap that should be structurally addressed.  

Major losses were registered in the agriculture sector, with a decrease in employment by 5.3 %.  

The unemployment rate (15–64 years) is 11.5%, decreasing by 0.2 percentage points compared 
to 2020. The rate was 11.3 % for males and 11.8 % for females, showing that there is still a gap 
between the two groups. Due to the effects of the prolonged pandemic and the fragile economic 
system,  unemployment  increased  more  among  vulnerable  groups  including  women,  young 
people, Roma and Egyptians, and people with disabilities.  

In  2021,  job  creation  remained  one  of  the  major  cross-sectoral  priorities  of  the  government, 
along with structural measures aimed at  expanding social protection and preserving jobs in the 
context  of  recovery  from  the  COVID-19  pandemic  and  under  the  pressure  of  increased 
commodity prices and inflation.  

In 2021, 24,158 registered unemployed jobseekers found a job through labour offices compared 
to  17  934  in  the  previous  year,  reflecting  the  labour  market  conditions  still  affected  by  the 
challenges resulting  from  the COVID-19 pandemic and the impact  of external  shocks over the 
Albanian economy.  

The  employment  rate  for  the  population  aged  15-64  years  old  is  60.9  %  in  2021,  slighting 
improving by 0.2 % of points compare to 2020.  The employment rate for females is 53.8 % and 
for males 68.2 %. The gender gap in employment for this age-group is 14.4 percentage points. 
The  major  improvement  is  registered  in  the  industrial  sector  (+7.5 %),  followed  by  services 
(+7.2 %). The major losses were  registered in  agriculture, with  a decrease in  employment by  -
5.3 %.    The  long-term  effects  of  the  COVID-19  pandemic,  increase  of  commodity  prices  in 
international markets and higher overall imported inflation, risk to moderate the pace of recovery 
and impact the employment rate, especially of informal workers and the most vulnerable groups. 
The capacity and staffing of the National Agency for Employment and Skills (NAES), still needs 
to be increased.  

Public  employment  services  made  further  progress  in  establishing  and  following  performance 
indicators and procedures, improved visibility and outreach services for vulnerable groups.  

In  2021,  Albania  continued  the  implementation  of  the  reformed  Employment  Promotion 
Programmes (EPPs) packages in all regions with a focus on the most vulnerable ones. A total of 
4835 jobseekers benefited from the EPPs during 2021 (60.2 % women and 39.8 % men).  

92 

 
 
During  2021,  326  former  beneficiaries  of  social  assistance  benefited  from  the  employment 
promotional  programmes.  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. 

According  to  the  Labour  Force  Survey  of  2021,  the  percentage  of  young  people  neither  in 
employment,  nor  in  education  or  training  (NEET)  in  2021  is  26.1  %.  In  February  2022,  the 
government  established  an  inter-ministerial  working  group  responsible  for  providing  guidance 
and overseeing the process of implementation of the Youth Guarantee scheme in Albania. As a 
starting point, Albania has drafted an action plan for the implementation of the Youth Guarantee 
and steps need to be taken for its costing and adoption by the Government. The plan will become 
part  of  the  new  strategy  on  Employment  and  Skills  (2013-2030).  It  is  critical  that  Albania 
prepares  the  adequate  institutional  framework  and  allocates  human  and  financial  resources  to 
ensure the implementation of this plan.   

Long-term  unemployment  remains  a  challenge  that  Albania  should  address  through  more 
flexible, tailored and integrated policy interventions.  

There  were  no  developments  as  regards  preparations  for  the  European  Social  Fund.  (See 
Chapter 22 - Regional policy and coordination of structural instruments). 

On  social  protection  and  inclusion, there  is  some  positive  progress  on  the  implementation  of 
the  strategy  on  social  protection,  in  particular  regarding  the  roll-out  of  the  reform  on  the  bio-
psychosocial assessment of people with disabilities and outreaching more beneficiaries through 
social  care  services.  Another  positive  step  during  2021  was  made  on  the  establishment  of  the 
legal framework for the Order of Social Workers, which will help speed up efforts to strengthen 
social  care  and  social  protection  workforce.  However,  public  spending  on  social  care  services 
programmes for Albania continues to be modest and there is  yet no  mechanism for monitoring 
the situation of those who are vulnerable and with no access to such services.  

According to SILC 2020, published by  INSTAT (Institute of Statistics) in December 2021,  the 
ratio of population at-risk of poverty rate in Albania, in 2020, is 21.8 % compared with 20.6 % 
2019, This remains below the EU 27 average. Changes in the Law on Social Assistance, adopted 
in in December 2021 aim to increase the targeting of poor families and children by increasing the 
amount  of  cash  assistance.  Cash  transfers  continue  to  constitute  about  95 %  of  the  social 
protection sector’s overall budget. There has been an expansion in service delivery with eleven 
new  municipalities  during  2021  providing  -  for  the  first-time  social  care  services,  bringing  the 
total  of  16  social  care  services  funded  through  the  Social  Fund.  However,  there  are  still  2 
municipalities which do not provide any social care services. 

The  Ministry  of  Health  and  Social  Protection  and  Ministry  of  Finance  and  Economy  signed  a 
joint  order  to  establish  coordination  and  a  referral  mechanism  with  a  view  to  integrate  in  the 
labour  market  the  beneficiaries  of  the  economic  aid  of  active  working  age.  Furthermore,  a 
protocol  for  integrated  case  management  between  employment  offices  and  local  social  care 
services is established and started its implementation in Elbasan municipality.  

60 municipalities out of 61 have adopted social care plans with the support of donors and civil 
society organisations.  

Monitoring of implementation of the local social plans, budget allocation to social services from 
the  local  government  and  guidance  to  local  government  are  crucial.  The  social  care  services 

93 

 
 
National  Electronic  Register  (NERSCS)  is  not  yet  fully  operational  and  the  procurement 
processes associated with installing the register have been delayed.  

The total  fund disbursed for the local  government  by the Social Fund during 2021 is  EUR  1.5 
million allocated to 16 municipalities for 16 new and ongoing social care services. During 2021, 
there  are  339  social  care  services  provided  compared  to  229  in  2019.  In  spite  of  positive 
progress, the government needs to step up efforts in further consolidating the mechanism of the 
Social  Fund  ensuring  adequacy,  equity  and  transparency  of  the  implementation  of  the  fund, 
alongside  the  increased  budgeting  of  the  social  fund  in  the  midterm  budget  in  order  to  ensure 
sustainability of services.   

Regarding people with disabilities, the accessibility and availability of public services, such as, 
socio-health,  employment  and  vocational  education  and  in  particular  of  specialised  services  in 
the area of disability, is still limited.  

On  non-discrimination  in  employment  and  social  policy,  in  February  2022  the  Albanian 
Parliament  ratified  the  ILO  Convention  190,  “On  Violence  and  Harassment”.  However,  the 
implementation requires revising legislation in line with the convention.  

As regards equality between women and men in employment and social policy, according to 
2021  there  is  a  gender  employment  gap  of  14.4  percentage  points.  According  to  INSTAT’s 
women’s  labour  force  participation  for  the  group  age  15-64  years  old,  according  to  the  LFS 
(2021) continues to be lower by 15.9 percentage points compare to males. The gender pay gap in 
2021 is 4.5 percentage decreasing by 2.0 percentage points, compared to 6.6 percent in 2021.  

According  to  the  2022  World  Economic  Forum’s  gender  gap  index  report,  Albania  ranked  18 
out of 146 countries (compared to 25 out of 153 countries for 2021), reflecting the continuous 
consequences  created  by  the  earthquake  and  the  COVID-19  pandemic.  The  changes  to  the 
Labour  Code  introduced  more  measures  to  support  gender  equality  in  the  labour  market; 
however,  there  is  no  monitoring  of  the  implementation  of  these  changes  in  practice. 
Furthermore,  there  is  still  a  need  to  harmonise  legislation  with  the  EU  work-life  balance 
directive.  

Chapter 20: Enterprise and industrial policy 

EU industrial policy strengthens competitiveness, 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 by the adoption of the Law on micro, small and medium enterprises, the adoption of 
the  Law  on  start-ups  and  establishment  of  the  Start-Up  Council,  and  continuation  of  the 
assistance programmes to provide business support services and access to finance in line with the 
business  and  investment  development  strategy  (BIDS),  adopted  in  July  2021.  The  measures  to 
reduce  informal  business  activities  and  corruption  continued  to  yield  results  although  with 
limited impact on the business environment. 

In the coming year, Albania should, in particular: 

  address the main challenges to the business environment, by reducing the regulatory burden, 
enhancing the participation in the available funding programmes for businesses strengthening 
the  efforts  to  tackle  informality  and  corruption,  increase  business  support  services,  and 
implement the Law on start-ups;  

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  accelerate the full alignment of national legislation with the EU acquis on late payments; 

  adopt the unified investment Law and address the challenges to competitiveness and growth 
as  stressed  in  the  joint  recommendations  of  the  Economic  Reform  Programmes  of  2022-
2024. 

Albania  finalised  and  adopted  its  2021-2027  business  and  investment  development  strategy 
(BIDS)  in  July  2021.  The  BIDS  sets  the  strategic  framework  for  Albania’s  enterprise  and 
industrial  policy,  covering  SME  skills  development,  innovation,  sustainable  growth,  and 
conditions  for  attracting  foreign  investment.  It  also  adopted  a  2020-2024  programme  for 
inclusive  and  sustainable  industrial  development  (ISID),  with  three  main  pillars:  industrial 
competitiveness and market access; productive employment and entrepreneurship development; 
and sustainable energy for productive uses and environmental management. 

Albania  is  implementing  its  2017  national  Strategy  on  Innovation  and  Technology.  A 
programme on Urban Partnership Acceleration was also adopted to connect Albanian innovation 
organisations, including universities, industries and start-ups that are committed to solving urban 
challenges.  After  several  delays,  Albania  adopted  the  Law  on  start-ups  in  March  2022  and  in 
April 2022 a Law on micro, small and medium enterprises (MSMEs), followed by the adoption 
of a grant scheme for start-ups in July.  

Albania  follows  the  implementation  of  the  Small  Business  Act  and  has  reflected  upon  its 
recommendations on policy formulation as regards the BIDS, the Law on start-ups and the Law 
on  MSMEs.  SMEs  identify  their  main  challenges  as  the  informal  economy  (particularly  in 
tourism), corruption and lack of transparency in public procurement (especially as regards Public 
Private Partnerships (PPPs)), the need for stable state institutions, unclear ownership of property 
titles,  and  the  need  to  enforce  the  rule  of  law.  Despite  some  improvements  in  the  business 
environment,  the  COVID-19  pandemic  highlighted  structural  challenges,  and  the  global  price 
increase  due  to  ongoing  Russian  military-aggression  on  Ukraine  is  revealing  weak  export 
diversification and a high dependency on imports. Enhancing good governance and the quality of 
institutions and product diversification, while maintaining macro-economic stability, are crucial 
to  supporting  economic  growth.  However,  businesses  also  face  obstacles  related  to  a  lack  of 
workforce  skills  and  financial  resources,  as  well  as  challenges  to  adjust  to  modernisation, 
digitisation,  and  e-commerce.  Albania  is  focused  on  combatting  the  informal  economy  by 
expanding the taxpayer  base, enforcing compliance and  working  to  create  a level-playing  field 
for economic operators, including in the tourism sector and the re-construction programme,  yet 
without  considering  the  administrative  burden  and  formalisation  incentives.  Sectors  identified 
with  the highest  exposure to  informal employment  are trade and tourism (almost  50 % of total 
identified cases) followed by manufacturing (20 %) and construction (18 %).   

Albania continued to privatise state assets, partly through privatisation vouchers. The validity of 
privatisation vouchers, due to expire in December 2021, was extended until December 2023. A 
law  on  the  establishment  and  operation  of  economic  zones  exists,  though  none  has  been 
established.  A  Technological  Economic  Development  Area  (TEDA)  with  an  industrial 
processing  plant  is  still  in  its  development  phase.  The  2015  Strategic  Investments  Law  was 
extended until the end of 2023 due to delays in the adoption of the unified investment law. Since 
its  adoption,  22  investment  projects  have  been  adopted  (10  during  the  reporting  period), 
dominated  by  domestic  investors  that  received  'strategic  investment'  status,  mostly  in  the 

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tourism, agriculture and energy sectors. In spite of a noteworthy overall FDI inflow, cluster-like 
linkages and trade in high technology remain weak relative to peers. 

In  the  area  of  enterprise  and  industry  policy  instruments,  the  Albanian  Investment 
Development  Agency  (AIDA)  launched  an  online  access  to  finance  platform  to  enable 
businesses to access information on available financing opportunities. Access to finance remains 
a  serious  challenge  for  Albanian  businesses.  No  state  funds  were  distributed  by  AIDA  during 
2020-2021,  as  they  were  re-oriented  to  measures  to  alleviate  the  impact  of  COVID-19  on 
businesses. An advisory instrument that provides training and advisory services to MSMEs has 
been available since February 2021, providing opportunities for small grants to help  businesses 
to  adapt  to  the  impact  of  COVID-19.  Extraction  industry  companies  were  given  a  three-year 
royalty tax exclusion to boost pre-export mineral processing. The Albanian information society 
agency  offers  “TechSpace”,  a  creative  environment  for  start-ups  for  training  on  technology, 
innovation  and  entrepreneurship  activities.  The  “Roadmap  to  Silicon  Valley”  pilot  programme 
for  start-ups  offers  an  incubation  phase  at  TechSpace,  in  cooperation  with  public  universities, 
and public and private vocational high schools.  

The Albanian legislation on late payments was further aligned with the EU acquis in May 2021 - 
full alignment should be ensured as soon as possible, including issues related to title retention, 
and  recovery  procedures  for  unchallenged  claims.  Albania’s  SMEs  definition  is  partly  aligned 
with  the  EU  definition  as  regards  the  number  of  employees,  however,  national  capacity  in  the 
field of SME policies and support remains very limited. Formal negotiations on an Association 
Agreement  with  Albania  to  participate  in  the  EU  Single  Market  Programme  (SMP)  started  in 
June 2022.  

On sectoral policies, Albania continues to implement the 2019-2023 national strategy and action 
plan  for  sustainable  development  and  tourism.  In  March  2022,  the  government  adopted  a 
resilience package to help cope with the consequences of the Russian military-aggression against 
Ukraine,  which  includes  support  packages  for  economic  operators  in  the  transport  and 
agriculture  sectors.  Albania  continued  to  implement  incentives  for  agro-processing  industry, 
however  the  demand  in  this  sector  seems  to  be  for  more  budget  support  and  subsidies.  Work 
continued on drafting the Smart Specialisation Strategy (S3), completing both the qualitative and 
quantitative analysis phases, but the Entrepreneurial Discovery Process remains to be launched. 
A  cross-sectoral  strategy  and  Action  Plan  2022  –  2026  on  “Digital  Agenda  of  Albania”  was 
adopted in June 2022.  

Chapter 25: Science and research 

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

Albania has some level of preparation in the area of science and research. Some progress was 
made over the reporting period, with the establishment of the Inter-Institutional Working Group 
for monitoring the implementation of the 2017–2022 National Strategy for Scientific Research, 
Technology  and  Innovation.  Last  year’s  recommendations  have  not  been  fully  addressed  and 
therefore remain valid. 

In the coming year, Albania should in particular: 

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  increase  investment  in  research,  in  line  with  its  own  commitments  and  the  new  European 

Research Area priorities; 

  complete the Smart Specialisation Strategy and adopt the law on scientific research; 

  produce  statistics  and  reliable  data  on  science  and  technology,  including  the  indicator  on 

gross domestic expenditure on Research and Innovation 

On  research  and  innovation  policy,  an  inter-institutional  working  group  was  established  in 
2021,  to  monitor  the  implementation  of  the  National  Strategy  for  Scientific  Research, 
Technology and Innovation 2017–2022. The new strategy on Research has to be developed and 
adopted. 

As for scientific research funds, various estimates indicate that Albania allocated 0.2 %-0.4 % of 
GDP to research and development for 2021, which is far below the targeted 1 % of GDP by 2022 
(state budget funds for the Ministry of Education and Science (MoES) for research were in the 
amount of 0.05 % - 0.06 % of GDP). 

Albania needs to step up investments in scientific research and associated measures to strengthen 
research and innovation capacity at national level, also given the relevance of innovation to the 
Economic and Investment Plan for the Western Balkans and its direct relevance for the country’s 
economic  recovery,  while  helping  address  the  issue  of  brain  drain  of  researchers  and  young 
people. 

The methodology to establish funding for research and science remains to be developed. In 2021, 
the National Statistical Institute of Albania conducted surveys in four sectors (private businesses, 
non-profit  organizations,  government  institutions  and  higher  education  institutions)  to  collect 
administrative  data  on  the  budget  funds  allocated  for  R&D,  but  data  collection  was 
unsatisfactory  as  both  public  and  private  entities  did  not  report  data,  or  values  were  not 
representative. 

Efforts are still needed in the development of innovative policies aimed at promoting better links 
between academia, industry and government, and in the fields of open access and open data.   

Both qualitative and quantitative analysis phases were completed on the development of a Smart 
Specialisation Strategy (S3) but the Entrepreneurial Discovery Process remains to be finalised.  

As  regards  EU  framework  programmes,  Albania  is  fully  associated  to  Horizon  Europe.  Its 
participation  in  the  programme  in  2021  has  been  the  best  ever  since  Albania  has  been 
participating in the EU’s Framework Programmes for Research and Innovation (9 projects with a 
total  funding  of  EUR  1.9  million).  Private  sector  participation  in  the  programme  continues  to 
remain low. A positive trend is the new national support measure facilitating academia-business 
cooperation.  Albania  should  continue  its  efforts  to  raise  the  awareness  on  participation  in  the 
new Horizon Europe programme. 

On  integration  into  the  European  Research  Area,  Albania  should  improve  its  linkage  with 
European  partners  to  engage  in  international  cooperative  research.  There  is  already  active 
engagement in European Cooperation in Science and Technology with impressive increases over 
the past  two  years. However, we are still to  see  the results of Albania’s  recent  participation  in 
EUREKA. 

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Albania  needs  to  continue  to  make  further  efforts  to  produce  statistics  and  reliable  data  on 
science and technology, including the indicator on gross domestic expenditure on Research and 
Innovation.  Its  inclusion  in  the  European  Innovation  Scoreboard  (in  2022  for  the  first  time)  is 
already a tangible outcome of these efforts. 

Chapter 26: Education and culture 

The  EU  supports  cooperation  in  education  and  culture  by  funding  programmes  and  the 
coordination of Member State policy through the open method of coordination. The EU and the 
EU 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 
with the adoption of the 2021-2026 National Strategy for Education and the related action plan; 
the  strengthening  of  the  new  National  Agency  for  Employment  and  Skills;  the  continued 
restructuring of the National Agency for Education, Vocational Training and Qualifications; and 
the implementation of the Albanian Qualification Framework and the Vocational Education and 
Training Law. Further efforts are required to strengthen quality and inclusiveness of education, 
with  a  special  focus  on  the  proper  implementation  of  the  competence-based  approach  and 
digitalisation. Appropriate resources should also be allocated to ensure the implementation of the 
new  policy  reform.  Further  efforts  are  required  to  finalise  the  implementing  legislation  of  the 
Law on Cultural Heritage and Museums.  

In the coming year, Albania should in particular: 

  ensure the optimisation of the VET system to develop services and competences in line with 

the needs of the labour market; 

  improve professional development and training of teachers and trainers, with a specific focus 
on  pedagogical  skills  related  to  the  implementation  of  the  competence-based  inclusive 
approach and digitalisation from pre-primary to university level, including VET education; 

  adopt the 2022-2029 National Youth Strategy. 

On education and training, 2021 was a year of adjustment and planning after the shocks due to 
the  2019  earthquake  which  damaged  24 %  of  educational  facilities  and  the  impact  of  the 
COVID-19 pandemic. As a consequence of the earthquake, 21 000 children in 11 municipalities 
were moved to host schools and attended classes in shifts, straining resources and affecting the 
quality of teaching. At the end of 2021, 87 schools damaged by the quake reverted to normal. 

As last year report notes, both the consequences of the earthquake and the prolonged COVID-19 
had  an  impact  on  the  educational  system,  which  was  not  equipped  with  adequate  teachers’ 
training  and  teaching  practices  to  ensure  effective  blended  education.  The  results  of  the  skills 
gaps analysis conducted in 2021 show that 60 % of the teachers still lack the necessary IT skills 
to  ensure  meaningful  digitalisation.  Albania  started  training  2 362  teachers  in  2021  out  of 
30 000,  but  more  efforts  are  needed  to  increase  the  level  of  investment  in  teachers’  ICT 
education.  In  terms  of  equipment,  on  average,  Albania  provides  one  computer  for  26  pupils 
according to UNICEF, which is inadequate to ensure digitalisation and remains much lower than 
the EU average of five pupils on one computer.  

With regard to  quality  in  education, progress  was made with  the adoption of the new National 
Strategy of Education and Action Plan 2021-2026 with clear pillars on quality, inclusiveness and 

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equity in education, and covering all levels, from primary education to university. Despite these 
objectives, Albania’s budget allocation to education in 2021 remains low, estimated at 3.6 % of 
GDP,  only  0.9  pps.  higher  than  in  2020.  Overall,  more  resources  are  needed  to  modernise  the 
educational system and ensure quality, equity and inclusiveness in education for all pupils. The 
school  financial  autonomy  has  not  progressed  in  2021,  as  the  sublegal  acts  and  provisions  for 
providing actual financial autonomy in the school were not developed, despite legislation exists 
since  2018.  Anti-corruption  measures  continue  to  have  a  limited  impact  in  education,  which 
remains a particularly vulnerable sector in this respect. 

Albania has adopted a new competence-based curriculum and developed a set of textbooks from 
grade  1  to  12  in  pre-university  education  system  to  match  the  new  content  and  methodology, 
which  were  successfully  implemented  in  2021.  The  number  of  students  benefiting  from  free 
textbooks increased during the year to 260 953, including vulnerable children.  

On  inclusive  education,  the  2020  guidelines  on  assistant  teachers  decreasing  the  ration 
teacher/pupil with disabilities to 1 for 2 to 3 pupils, at national level is under implementation but 
there is still an insufficient number of teaching assistants in regions where the number of pupils 
with  disabilities  per  teacher  is  higher,  such  as  Tirana,  Tirana  District,  Durrës  and  Kamëz. 
Meanwhile, additional efforts are also needed to shift from a system with dual education towards 
a system where children with disabilities are integrated into inclusive mainstream schools.  

No  progress  was  registered  for  the  implementation  of  preschool  reform.  Resources  remain 
inadequate with only 0.5 % of GDP allocated for pre-primary education in 2021. ICT standards 
for teachers were quickly developed and over 600 teachers benefitted from ICT training in 2021. 
Furthermore, partnership with local authorities is essential, to avoid school disruption and ensure 
useful cooperation in education.  

Enrolment  rates  in  the  pre-university  education  system  decreased  to  72.9 %,  with  a  notable 
decrease of 9 % in the preparatory/pre-school education for five to six years old, most probably 
due  to  the  persistent  impact  of  the  COVID-19  crisis.  286  486  pupils  are  currently  enrolled  in 
basic  education  158  528  in  primary  education,  and  127  958  in  lower  secondary  education. 
Attendance in basic education dropped by 2.5 % compared to the previous academic year.  

Although  already  very  low,  the  participation  rates  of  Roma  and  Egyptian  children  declined  in 
both  pre-university  (13 086  against  14 515  in  2019-2020)  and  early  childhood  education  2 514 
against 2 996 in the year 2019-2020) and care. The gap in access to education between Roma and 
Egyptian children and other children living in the same areas remains very large.  The situation 
has  worsened  due  during  the  COVID-19  crisis  and  the  lack  of  possibilities  to  follow  online 
classes. The measures planned to facilitate access to universities (a quota system and university 
fee waivers) are in general not implemented.  

Implementing legislation on establishing sectoral skills committees is in place and an ICT skills 
committee was initiated. The first meeting took place in April 2022. Albania has also prepared 
the  referencing  of  its  National  Qualifications  Framework  to  the  European  Qualifications 
Framework.  This  is  a  step  forward  on  aligning  the  Albanian  Qualification  System  with  the 
European  Qualification  System.  In  May  2021,  the  National  Catalogue  of  the  Professional 
Qualifications  was  approved  for  the  levels  2-5  of  the  AQF,  including  122  professional 
qualifications. Validation of non-formal and informal learning has so far been confined to pilot 
projects. 

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Regarding Vocational Education and Training (VET), the legislation implementing the 2017 
VET  Law  is  still  not  yet  fully  adopted,  and  the  legislation  on  financial  autonomy  of  VET 
providers  still  needs  to  be  adopted.  The  government  consolidated  the  VET  institutional 
framework,  by  further  reinforcing  the  National  Agency  for  Employment  and  Skills,  keeping 
restructuring  the  National  Agency  for  VET  and  Qualifications,  including  through  provision  of 
additional  human  resources  to  cover  the  function  of  continued  professional  development. 
Nevertheless, further efforts are needed to finalise the VET related staffing of both agencies, to 
reinforce the quality assurance framework and to strengthen planning, monitoring and evaluation 
functions at central level.  

The Optimisation Plan of VET providers, endorsed in 2020, is not yet implemented. Albania has 
to adopt the implementing legislation on organisation, functions and activities of VET providers 
as  well  as  on  their  financial  autonomy,  and  fully  implement  this  Plan  by  2023  to  ensure  the 
rationalisation  and  modernisation  of  the  VET  offer.  In  2021,  66  VET  teachers  received  “basic 
didactics” training, covering pedagogical, assessment, soft and digital skills, from 22 teachers in 
2020.  Further  training  is  required  in  2022  and  2023  to  ensure  the  implementation  of  digital 
education  and  ensure  digital  competences  for  online  teaching  in  VET.  Despite  promotional 
activities and support to students from rural  areas in following VET education, participation in 
VET is low with only 17.7 % of upper secondary students enrolled in vocational schools in 2021 
(18 279 students out of 103 467), 0.5 pp less than the previous year. 

Albania benefits from the international dimension of the Erasmus+ programme. The ring-fenced 
support for the four Western Balkan countries non-associated to the programme provided by the 
Instrument  for  Pre-Accession  assistance  III  (IPA)  amounts  to  EUR  374  million  for  2021-2027 
programme period. 

Albania  continued  to  participate  actively  in  EU  programmes,  in  particular  Erasmus+  and  the 
European Solidarity Corps.  

Regarding the culture sector, the national strategy 2019-2025 is under implementation, focused 
on  cultural  education  for  child  and  youth;  creative  industry  in  music  and  dramaturgy;  and 
international cooperation. During 2021, the ministry adopted implementing legislation regarding 
the creation and administration of the database of stolen cultural assets, rules of monitoring and 
evaluation  of  entities  that  have  cultural  assets  under  administration.  From  June  to  December 
2021, 108 internal projects were carried out, while for 2022, 185 projects are approved.  

In  March  2022,  Albania  ratified  the  agreement  to  participate  in  the  new  EU  Creative  Europe 
programme  2021-2027,  for  which  the  Ministry  of  Culture  has  established  the  adequate 
administrative structures. 

The  remaining  bylaws  were  approved  for  the  implementation  of  the  law  on  youth  but  further 
efforts should be made for the establishment of relevant youth structures. No new youth centres 
have been established during 2021.  

The  Ministry  of  Education,  Sports  and  Youth  has  to  finalise  and  adopt  the  National  Youth 
Strategy for the period 2022-2029 and the action plan. 

Chapter 29: Customs union 

All EU 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. 

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Albania is moderately prepared in the area of the customs union. Limited progress was made, 
notably  by  applying  the  transitional  rules  of  origin  in  the  pan-Euro-Mediterranean  area  and  by 
strengthening capacities and improving cooperation among bodies involved in the fight against 
smuggling and import of counterfeit goods, Authorised Economic Operators obtaining validation 
by  CEFTA,  and  digitalising  of  services.  Some  of  last  year’s  recommendations  were  not  fully 
addressed and remain valid. In the coming year, the country should in particular: 

  approve legal provisions and develop the New Computerised Transit System;  

  continue  efforts  in  pursuing  the  fight  against  smuggling,  corruption  and  imports  of 
through  strengthening  administrative  capacities  and 

counterfeit  products, 
improving cooperation among the bodies involved; 

including 

  accede to the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products. 

As regards customs legislation, Albania’s customs code is broadly aligned with the EU acquis. 
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. Preparatory work for the development of 
the New Computerised Transit System continued through cooperation with international experts 
in this area. Albania is implementing its authorised economic operator  (AEO) programme with 
the first eight registrations in 2021, and successful validation of safety and security standards in 
line  with  CEFTA  Additional  Protocol  5.  Awareness  raising  activities  regarding  the  benefits, 
procedures and programmes continued. 

The  Customs  Code  contains  rules  of  non-preferential  origin  and  Albania  applies  the  Regional 
Convention  on  Pan-Euro-Mediterranean  preferential  rules  of  origin.  Since  September  2021, 
Albania has been the first country in the region to apply the new transitional rules of preferential 
origin of the PEM Convention for bilateral trade with the EU, as an alternative to existing rules. 

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  EU  acquis.  Cross-border  smuggling  of  tobacco  products  and  other  illicit  activities  in  the 
border regions continue to be an important area, where further improvements in cooperation and 
antifraud tools are needed. As part of the antifraud effort, the accession to the WHO Framework 
Convention  on  Tobacco  Control  (WHO  FCTC)  Protocol  to  Eliminate  Illicit  Trade  in  Tobacco 
Products  is  recommended.  The  national  rules  on  cash  and  goods  transported  in  travellers’ 
baggage  still  differ  from  the  EU  acquis  as  regards  amounts  to  be  declared  and  the  declaration 
form. ACA can impose sanctions for non- or mis-declarations of cash at the border.  

On  administrative  and  operational  capacity,  five  officials  of  the  Customs  authority  were 
certified by EUROPOL as users and trainers for the SIENA platform, following the completed 
optical fibre connection with the police for access  to SIENA for exchange of information. The 
launch  of  a  national  customs  enforcement  network  (nCEN)  database  resulted  in  an  increased 
registration  of  seizures  in  the  system  and  is  supporting  analyses  and  reporting.  In  November 
2021, the INES+ system became operational for managing cases of infringement of intellectual 
property rights with a view to stepping up fight against imports of counterfeit products. By end 
2021, 34 out of 41 customs services were accessible online through the e-Albania portal. A new 
customs organisational structure entered into force in May 2022 to address observed challenges, 

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such as reporting lines of the anti-corruption coordinator. In an effort to improve transparency, 
Customs published in April for the first time a “green book” reporting on progress in 2021, and 
highlighting priorities for the following year. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

This cluster covers: transport policy (Chapter 14); energy (Chapter 15); trans-European networks 
(Chapter 21); and environment and climate change (Chapter 27). Albania is moderately prepared 
on energy and environment and climate change. It has some level of preparation in the areas of 
transport and of trans-European networks. The country has made limited progress in these areas 
and  ongoing  efforts  to  address  issues  with  Flag  State  Control  and  to  align  legislation  need  to 
continue, while nature protection requires attention.  

Addressing  the  issues  of  climate  change  by  strengthening  green  transition  policies,  pursuing 
efforts  in  sustainable  hydropower  generation  and  ensuring  sustainable  connectivity,  constitute 
fundamental priorities for economic integration within the region and with the European Union. 
This  cluster  and  the  reforms  concerned  have  significant  links  to  Albania’s  Economic  Reform 
Programme,  the  Commission’s  Economic  and  Investment  Plan  and  the  Green  Agenda  for  the 
Western Balkans.  

Chapter 14: Transport  

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,  with  limited  progress 
achieved in the past year. The recommendations from last year have been partly addressed with 
implementing legislation in the rail sector and with further measures to improve the quality and 
performance of the vessels under the Albanian flag. Efforts to further align the legislation and to 
move the Albanian flagged fleet out of the black list of the Paris Memorandum of Understanding 
on port state control need to continue. The recommendations of last year remain partly valid. 

In the coming year, Albania should in particular: 

  adopt the new National Transport Strategy 2021-2025 and prepare and adopt the new Road 
Safety Strategy in compliance with the Transport Community Road Safety Action Plan;  

  implement  legislation  on  the  railway  sector  reform  in  compliance  with  the  Transport 

Community Rail Action Plan and ensure full operability of the network; 

  accelerate concrete measures to improve the performance of maritime transport vessels under 

the Albanian flag. 

As  regards  the  general  transport  acquis,  the  new  National  Transport  Strategy  and  its  Action 
Plan for 2021-2025 still needs to be adopted. The strategy is expected to be finalised by the end 
of  2022  and  should  be  reflected  in  the  mid-term  budget  programme  2022-2024.  During  the 
reporting period, there was no progress on alignment of the transport policy with public-service 
obligations  and  the  acquis  on  public-service  contracts.  Continued  efforts  are  required  to  fully 
implement the intelligent transport systems (ITS) directive, foster multimodality and implement 
relevant national laws in compliance with the Transport Community Action Plans. Albania has 
started  the  preparation  of  a  national  ITS  strategy  for  rail  and  maritime  modes.  On  combined 

102 

 
 
 
transport,  Albania  has  yet  to  provide  references  to  national  legislation  alignment  with  the  EU 
acquis.  

Administrative capacity  needs strengthening throughout  the transport sector, particularly in  the 
rail  sector.  Several  capacity-building  initiatives  took  place  on  transport  of  dangerous  goods, 
railway and asset management plans. Legislative updates are required to complement the reform 
of the Albanian Road Authority. The law on the establishment, organisation and functioning of 
the National Investigation Authority for Rail and Maritime Accidents and Incidents was adopted 
on 1 July 2021. The Authority was set up but is not yet operational. Available funds for road and 
railway  infrastructure  maintenance  remain  insufficient,  resulting  in  continued  deterioration  of 
infrastructure conditions. Among cases reported in 2021 by the State Supreme Audit Institution 
to the prosecution, one case involved a former director of the Port of Dürres. Continued efforts 
are required to support the 2018-2022 rail maintenance plans.  

Albania made further progress in aligning its national legislation on road transport by adopting 
a piece of implementing legislation on technical inspection of motor vehicles in November 2021. 
This  piece  of  legislation  is  designed  to  fully  align  with  the  EU  acquis.  In  April  2022,  an 
agreement  was  signed  with  Germany  on  the  mutual  recognition  of  driving  licenses.  The  Road 
Code was amended in December 2021 to improve the procedures for obtaining a driving license 
after  rehabilitating  from  alcohol  or  psychotropic  substances.  The  rules  on  electric  scooter  and 
bicycle  traffic  were  unified  to  strengthen  road  safety  of  such  new  category  of  vehicles  on  the 
road. Further efforts are needed to align with the EU acquis on electronic road toll systems and 
on  road  fee  enforcement.  Road  Safety  remains  a  serious  concern.    Although  the  number  of 
fatalities  fell  between  2019  and  2021,  work  is  needed  to  tackle  the  discrepancy  between  the 
national  statistics  and  the  significantly  higher  WHO  estimate.  During  2021,  the  fatalities  per 
100 000  inhabitants  increased  by  8.8%  compared  to  2020.  Albania  should  intensify  efforts  to 
improve its road safety through effective policies and measures. Albanian authorities have yet to 
prepare  and  adopt  a  new  Road  Safety  Strategy  and  its  Action  Plan  2021-2030,  in  compliance 
with  the  Transport  Community  Road  Safety  Regional  Action  Plan  for  the  Western  Balkans. 
Albania completed the alignment of its legislation on periodic roadworthiness tests, but still has 
to  further  strengthen  its  inspection  capacity.  Some  efforts  were  made  regarding  road  safety 
education.  Some  road  safety  interventions  have  been  implemented  to  improve  safety  on  road 
intersections.  On the implementation  of the law  on dangerous  goods,  Albania has adopted two 
pieces of implementation on drivers certificates and safety advisers certificates.    

As regards railway transport, the National Accidents Investigation body for Rail and Maritime 
was  established.  Albania  needs  to  ensure  full  operability  of  the  rail  network  and  complete  the 
institutional  framework  of  the  four  new  rail  companies  (infrastructure  manager,  passenger 
transport operations, freight transport operations and maintenance) based on the law adopted in 
July  2021.  In  this  respect,  Albania  needs  to  finalise  and  adopt  the  strategic  framework  for 
implementing  ITSs  on  the  core  rail  network.  No  progress  was  reported  on  passenger  rights. 
Albania has published its Network Statement in 2022 both in Albanian and in English. Albania 
needs  to  complete  the  establishment  of  the  Electronic  Register  of  Vehicles  and  the  Rail 
Infrastructure Asset Management System (RIAMS) needs to be established. Some progress was 
achieved  on  regional  cooperation  with  the  signature  of  a  memorandum  of  understanding  by 
Western Balkans infrastructure managers and with a Declaration on Rail at ministerial level. 

On maritime transport, Albania approved a regulation on the organisation and functioning of 
the  flag  state  control,  which  is  designed  to  be  fully  aligned  with  the  acquis  on  flag  state 

103 

 
 
requirements and flag state control of the 2006 Maritime Labour Convention. Continued efforts 
are  required  to  substantially  reduce  the  detention  rate  of  Albanian-flagged  vessels  in  order  to 
leave the current “Black List” of poor flag performance, considered at high risk, and to resume 
the  country’s  application  for  membership  of  the  Paris  Memorandum  of  Understanding  on  port 
state  control.  Ful  alignment  with  the  acquis  on  EU  vessel-traffic  monitoring  and  information 
system (VTMIS), based on the strategic framework for implementing ITSs on the core maritime 
network still needs to be ensured. Alignment with the acquis on ports and enaction of legislation 
based  on  the  EU  Port  Services  Regulation  still  needs  to  be  put  in  place.  There  were  no  new 
developments regarding inland waterway transport, which is limited to two lakes shared with 
neighbouring countries, and regulated by bilateral agreements. 

On  aviation,  Albania  needs  to  address  the  findings  raised  by  the  European  Union  Aviation 
Safety Agency (EASA) during the standardisation inspection in 2022 in the domain of air traffic 
management (ATM) and air navigation services (ANS), in order to comply with the requirements 
for the first transitional phase under the European Common Aviation Area Agreement (ECAA), 
It  should  take  immediate  actions  to  reinforce  the  regulatory  capacities  of  the  Civil  Aviation 
Authority  (CAA)  of  Albania  –  including  on    the  availability  of  competent  staff  -  to  ensure 
effective oversight of the air navigation service provider (Albcontrol). The transposition of EU 
ATM/ANS  acquis  is  not  completed.  The  new  management  of  CAA  Albania  appointed  in  late 
2021 is expected to address these issues. The government adopted a decision on the investigation 
and prevention of accidents and incidents in civil aviation, designed to fully align with relevant 
EU  regulation.  In  addition,  the  government  adopted  in  May  2022  an  order  on  civil  aviation 
incident reporting, which is partially aligned with the EU acquis. 

On combined transport, there is a slight improvement of legislation in this area. The definition 
of multimodal transport in the 2016 Railway Code is partly in line with the EU  acquis and the 
National Transport Strategy 2021-2025, which contains parts of combined transport, is yet to be 
adopted. 

Albania should increase efforts to align with and implement EU passenger rights legislation in 
all modes of transport. Further progress is needed on adopting relevant legislation and setting up 
systems for electronic freight transport information exchange.  

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 limited progress on the reform of the 
electricity market and connectivity measures in the renewables and gas sectors and on  regional 
interconnection lines, as well as in diversifying from hydropower generation to other renewable 
energy  sources.  In  the  context  of  the  global  energy  crisis,  such  efforts,  as  well  as  energy 
efficiency measures, should be accelerated taking into account Albania’s commitments under the 
Paris  Agreement  and  the  need  to  engage  in  the  clean  energy  transition,  in  line  with  the  Green 
Agenda  for  the  Western  Balkans.  Albania  made  some  progress  on  the  legal  framework  for 
energy  efficiency  (EE)  but  still  needs  to  adopt  all  missing  bylaws.  No  new  energy  efficiency 
funding mechanisms have been put in place. The energy efficiency agency’s role, capacities, and 
operations need further improvement. Albania has adopted its National Energy and Climate Plan 
2030, to be implemented in 2022.  

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Last  year’s  recommendations  have  not  been  completely  addressed  and  remain  valid.  In  the 
coming year Albania should in particular:  

  ensure the Power Exchange (ALPEX) and day-ahead electricity market are fully operational  

and continue strengthening the electricity transmission network;  

  complete  the  functional  unbundling  of  energy  operators  and  ensure  full  access  to  the 
liberalised  market  for  all  customers  connected  to  20kV  in  2022,  as  well  as  the  progressive 
extension of this access to all customers;  

  implement  the  updated  National  Energy  and  Climate  Plan  (NECP)  2020-2030,  including 
renewable  energy  and  energy  efficiency  action  plans,  ensure  all  enabling  institutional  and 
legislative as well as funding and certification and audit measures are in place, including by 
shifting  renewable  electricity  production  away  from  hydropower,  taking  into  account  the 
energy crisis. 

  Utilize  benefits  in  the  Energy  Community  guarantees  of  origin  and  sign  direct  agreement 
with  the  service  provider  to  use  national  electronic  register  for  issuance,  cancellation  and 
trade of guarantees of origin, in line with the EU standards. 

On security of supply, Albania is still moderately prepared but its oil stock legislation is not in 
line with the EU acquis. Progress is needed to create a central stockholding body for oil. Albania 
should align with the acquis on minimum oil stocks of crude oil and petroleum products required 
for  security  of  supply.  Furthermore,  Albania’s  emergency  oil  stock  model  has  not  yet  been 
amended. 

Albania’s electricity system has been connected with systems in  Greece and Montenegro  since 
2014.  The  Power  Exchange  (ALPEX)  is  established  and  is  expected  to  be  fully  operational  in 
2022. The construction works of the interconnector with North Macedonia are expected to start 
at the end of  2022 . In 2021, Albania’s electricity distribution losses in the power grid remained 
at 20 %, the same level as in 2020  

Albania intends to connect the Vlora thermal power plant with the Trans-Adriatic Pipeline (TAP) 
through a natural gas pipeline, as well as through an LNG terminal to enhance the country and 
the regional energy security. The decision for licencing Albpetrol as a gas supplier was approved 
by the Energy Regulatory Authority (ERE) in August 2021, while Albgas is expected to fulfil all 
conditions on ownership unbundling to be certified as Transmission System Operator at the end 
of  2022    (partly  fulfilled  by  ERE  decision  of  January  2022).)  (see  also  Chapter  21  –  Trans-
European networks).   

On  the  internal  energy  market,  the  complete  unbundling  of  the  distribution  system  operator 
OSHEE SA is still pending. 

Electricity  prices  are  not  fully  liberalised.  Since  1  January  2021,  all  distribution  customers 
connected to 35kV benefit from an unregulated market. The next step of de-regulating supply at 
all  voltage  levels,  except  the  0.4  kV  level,  remains  to  be  completed.  The  electricity  market  is 
dominated by the regulated wholesale contract between state-owned generation company KESH 
and OSHEE companies (distribution and supply). This contract is to end after ALPEX becomes 
operational  in  2022. Given the  global energy crisis,  a transitionary mechanism has been put  in 
place  to  allow  Kesh  to  purchase  electricity  abroad  and  a  price  cap  on  electricity  for  domestic 
customers has been introduced from Autumn 2021.  

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The Energy Regulatory Authority (ERE) legal framework is in line with the EU acquis, except 
for the regulator’s right to impose measures to promote competition, to require transmission and 
distribution system operators to change their terms and conditions, and to raise the level of the 
penalties that ERE can impose. ERE still needs to develop its capacity to address shortcomings 
in the energy markets. The approval in 2021 of REMIT rules is a necessary but insufficient step 
forward. 

Albania’s  legislation  is  partly  aligned  with  the  hydrocarbons  licensing  directive.  It  has  not 
harmonised with the directive on the safety of off-shore oil and gas installations.  

On renewable energy, Albania adopted amendments to the 2017 law in January 2021. The feed 
in tariff (FIT) support scheme has been transformed into a contract for difference (CfD), while a 
renewable  energy  operator  (REO)  should  be  established.  The  CfD  support  scheme 
implementation regulation and the REO are expected to be in place by the end of 2022. A pricing 
methodology  for  consumers  with  installed  capacity  up  to  500kW  was  adopted  in  2021  and 
should  be  implemented  by  the  end  of  2022.  The  establishment  of  an  agency  responsible  for 
renewable  energy  has  not  yet  been  accomplished.  The  National  Agency  of  Natural  Resources 
was appointed to perform this role for the time being.  

The  target  of  the  National  Consolidated  Renewable  Energy  Action  Plan  (NCREAP)  for  2019-
2020,  extended  to  2021,  of  a  38 %  renewable  energy  sources  share  in  total  consumption 
throughout 2020 was not reached. Two contracts for solar photovoltaic farms were signed, which 
will become operational in 2023, and an auction on wind farms has been launched in 2021, while 
an auction is planned for Hybrid Photovoltaic To accelerate renewable electricity production and 
facilitate  the  transition  from  hydropower  to  other  renewables,  more  auctions  should  be 
conducted.  Financing  agreements  for  two  renewable  energy  flagship  projects  under  the  EU 
Economic Investment Plan for the Western Balkans have been signed in 2021 and Albania could 
therefore accelerate the development of renewable energy projects.    

Albania  depends  almost  exclusively  on  hydropower  for  electricity  generation,  making  it 
vulnerable  to  climate  impacts.  It  is  a  net  importer  of  electricity  at  a  rate  of  30 %  per  year,  as 
hydroelectricity  is  not  sufficient  to  cover  its  needs.  Progress  in  power  interconnection  with 
neighbouring  countries  and  setting  up  an  integrated  regional  energy  market  is  needed  to 
strengthen  the  security  of  supply  and  create  opportunities  for  green  energy  development  and 
trading.  The  deployment  of  its  vast  solar  and  wind  resources  would  significantly  improve 
Albania’s energy security and reduce its energy system vulnerability to climate impacts. Albania 
plans to use more photovoltaic and renewable energy from wind and this trend should be pushed 
forward given the NECP 2030 targets and the energy crisis.  

The concession contracts for hydroelectric power plants  (HPP) are not sustainable for Albania. 
The small HPPs have a significant impact on the biodiversity and local communities, notably in 
protected  areas  where  around  100  concessions  are  located  or  planned.  Plans  for  hydroelectric 
power  plants  have  been  challenged,  questioning  the  regularity  of  concession  processes  and  the 
validity  of  environmental  impact  assessments  (EIAs).  Moreover,  no  strategic  environmental 
assessments  (SEAs)  have  been  conducted.  Two  large  HPPs  on  the  Vjosa  River  and  the  Drin 
River  have  generated  opposition  from  communities.  Such  investments  require  full  compliance 
with the national legislation and the environmental and Energy Community acquis, notably with 
regards to public consultations and the quality of EIAs and SEAs. Further efforts are needed on 
framing HPP developments and on strictly enforcing environmental legislation. 

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The  implementation  of  the  national  energy  efficiency  action  plan  (NEEAP)  2017-2020, 
extended to 2021, has not met its targets in terms of 6.8% energy saving by 2021. The Energy 
Efficiency Agency, operational since 2018, is still not fully operational. No EE incentives are in 
place and EE financing mechanisms still need to be promoted. Nevertheless, some progress has 
been  made  towards  compliance  with  the  Energy  Community  acquis  by  amending  the  energy 
efficiency  law  in  March  2021  to  align  with  the  Energy  Efficiency  Directive,  and  several 
procedural  and  legal  acts  have  been  adopted  in  the  area  of  energy  performance  of  buildings. 
Pending  implementing  legislation  related  to  the  Energy  Efficiency  and  Energy  Performance  of 
Buildings  Directives  should  be  adopted  in  2022,  the  certification  of  energy  auditors  and 
managers should be continued, and financing incentives and mechanisms  for energy efficiency 
should be put  in place. Energy  efficiency  projects should also be accelerated, given the targets 
and the ongoing energy crisis. 

Albania  has  adopted  in  December  2021  its  National  Energy  and  Climate  Plan  (NECP)  2020-
2030.  This  Plan  complements  the  Energy  Strategy  2018-2030  and  is  to  replace  the  National 
Energy Efficiency Action Plan (NEEAP) and Regional Energy Efficiency Action Plan (REEAP), 
setting new short and medium-term EE and RE targets and measures. Therefore, Albania needs 
to  ensure  that  implementable  RE  and  EE  action  plans  are  adopted  within  the  scope  of  the 
NECP2030. Albania still needs to make sure that a fully operational energy agency is in place in 
2022, to implement promptly the measures of the plan.  

Albania  has  made  no  further  progress  on  nuclear  energy,  nuclear  safety  and  radiation 
protection. 

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. Albania needs to make further efforts to 
address the recommendations of last year which remain valid. 

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 Economic and Investment Plan for the Western Balkans 
while contributing to the Green Agenda;  

  continue  to  harmonise  the  legal  framework  with  EU  acquis  and  the  regulations  on  TEN-T 
(trans-European 
transport  networks)  and  TEN-E  (trans-European  energy  networks), 
including  full  harmonisation  of  guidelines  for  trans-European  energy  infrastructure 
andcontinue  implementing  Transport  Community  Treaty  action  plans  on  road,  road  safety, 
rail  and  transport  facilitation  and  strengthen  the  institutional  framework  and  administrative 
capacity to develop and monitor TENs.  

Albania  has  made  some  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).  The 

107 

 
 
Albanian authorities are encouraged to strengthen their close cooperation in the framework of the 
TCT and to progress with implementing the action plans on road, road safety, rail and transport 
facilitation. Albania has continued its active involvement in the EU strategy for the Adriatic and 
Ionian region (EUSAIR) and has chaired its Governing Board since 1 June 2021. 

The National  Transport  Strategy  for 2021-2025  and its  Action  Plan have been prepared by the 
Ministry  of  Infrastructure  and  Energy  and  need  to  be  adopted  (See  Chapter  14  -  Transport). 
Albania  has  further  aligned  the  national  legal  framework  with  TEN-T  Regulation  through  an 
additional implementing decision. 

Albania  has  made  progress  in  repairing  and  maintaining  its  core  road  infrastructure  as  road 
maintenance practices have been implemented throughout the country’s national roads network. 
Work  for  the  preparation  of  road,  rail  and  port  infrastructure  projects,  especially  along  the 
Adriatic-Ionian  Corridor  and  Corridor  VIII  (Varna–Durrës)  has  shown  progress.  The  Vlora 
bypass  has  been  permanently  open  for  traffic  in  July  2022.  Concerning  rail,  works  for  the 
rehabilitation  of  the  Durrës-Tirana  rail  line  and  for  the  construction  of  a  new  line  to  the 
international  airport  started  in  October  2021.  The  design  study  for  the  segment  Durrës-
Rrogozhine, in Rail Corridor VIII, was completed in October 2021.  

The government decided to relocate the cargo activities of the ports of Durrës and Vlora. In the 
context of a 10-year agreement on economic cooperation with a third country (See also Chapter 
5  –  Public  Procurement),  in  June  2021,  the  Council  of  Ministers  decided  to  change  the 
designation  of  Porto  Romano,  transforming  it  from  a  MBM  (multi-buoy  mooring)  port  to  an 
open port for international cargo traffic. In December 2021, the Port of Durrës Authority signed 
a service contract to prepare the detailed design for cargo activities in another location at Porto 
Romano, transferred from Durrës Port.  

The Kukës  airport  in  the north of Albania started normal  operations  in July 2021,  focusing on 
low-cost  airlines.  After  an  interruption,  flights  resumed  in  February  2022.  In  November  2021, 
the  government  inaugurated  the  works  for  the  construction  of  a  commercial  airport  within  the 
Vjosa-Narta  protected  landscape,  which  raises  important  concerns  due  to  threats  to  the 
environment, the habitat, migratory birds and other living species.  

Albania is  partially  aligned with  the acquis on  a  single European  railway area, railway system 
interoperability  and  rail  freight  corridors  for  competitive  freight.  Progress  has  been  made  for 
adopting the roads ITS strategy. Nevertheless, further efforts are needed to align the country with 
the  ITS  directive,  develop  a  national  strategy  on  the  deployment  of  ITS  and  prepare  for  its 
implementation.  

Albania should ensure that its transport network projects are aligned with the TEN-T regulatory 
framework and the TCT  action  plans, while contributing to  the Green Agenda for the Western 
Balkans.  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.  Serious  measures  on  road  safety 
should be taken, particularly to eliminate ‘blackspots’ identified on stretches with high accident 
rates,  which  lead  to  fatalities  and  injuries.  The  road  core  network  is  now  covered  by  5  year 
maintenance programmes. Adoption of the multiannual maintenance plans for rail core network 
remains a challenge taking into consideration the state of rail infrastructure.   

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On  energy  networks,  further  efforts  are  still  necessary  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 agreement signed in July 2021 for the construction of the 
TAP  Fier  exit  point  is  key  for  the  implementation  of  the  above  pipelines,  as  well  as  for  the 
development  of  a  gas  market  in  Albania.  The  planned  development,  and  interconnections  of  a 
LNG terminal in Vlora to regional gas pipelines (Trans-Adriatic Pipeline TAP,  Ionian Adriatic 
Pipeline  IAP,  Kosovo  gas  interconnector  pipeline  ALKOGAP  would  increase  regional  energy 
security. 

Progress  was  made on  the improvement of the infrastructure for  electrical  power transmission. 
Kosovo entities joined the Kosovo-Albania control block and participate in the Albanian Energy 
Exchange  (ALPEX).  This  should  become  operational  by  November  2022,  further  to  the 
successful tendering of the platform operator.  

Concerning  the  construction  of  a  400kV  interconnection  line  between  Fier  in  Albania  and  the 
North Macedonia border, works are expected to start in the second half of 2022, with completion 
scheduled in third quarter of 2023.  

Albania’s participation in the EU Strategy for the Adriatic-Ionian Region (EUSAIR), remains a 
priority  for  both  transport  and  energy  networks.  It  contributes  to  strengthening  ties  through  its 
action plan composed of four pillars: blue growth, connecting the region, environmental quality 
and sustainable tourism.   

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  EU  acquis,  in  areas  such  as  water  management, 
chemicals and environmental crime. Albania made progress in the area of  civil protection and is 
ready  to  join  the  Union  Civil  Protection  Mechanism.  Albania  needs  nevertheless  to  continue 
working  on  further  improving  its  civil  protection  system.  Significant  efforts  are  needed  on 
implementation  and  enforcement,  especially  on  waste  management,  water  and  air  quality  and 
climate change.  

The 2021 recommendations remain valid and in  the coming  year, in addition to addressing the 
shortcomings set out below, Albania should in particular:  

  adopt  the  new  law  on  water  services  and  the  new  strategy  for  water  supply  and  sewerage 
2021-2030, and approve a national road map on utilities aggregation; substantially increase 
the  budgetary  resources  and  implementation  capacity  of  its  key  national  water  agencies; 
finalise and adopt the River Basin Management Plans (RBMP) for the Ishem, Erzen and Mati 
rivers and complete the initial stage for Vjosa River;  

  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, transport and mining sectors; take immediate measures to 
fight  environmental  crime  and  increase  policy  and  law  enforcement  for  nature  and 
biodiversity protection, especially in the protected areas; 

109 

 
 
  adopt  a  new  national  disaster  risk  reduction  strategy  and  action  plan,  and  set  up  flood 
vigilance mechanisms and risk management plans in all river basins; implement the National 
Strategy on Climate change and related Action Plans on mitigation and adaptation, adopt the 
relevant  legislation  and  implement  its  integrated  National  Energy  and  Climate  Plan  in  line 
with Energy Community obligations.  

Environment horizontal issues  

Albania needs to step up efforts to achieve full alignment and implementation in most areas. The 
implementation  of  the  Environmental  Impact  Assessment  (EIA)  and  Strategic  Environmental 
Assessment (SEA) Directives needs to be significantly improved with regard to concrete projects 
before construction and operation, in particular for HPPs. The EIA quality and processes have to 
improve.  Recommendations  from  EIAs  are  rarely  implemented,  and  should  be  enforced  and 
monitored.  The  EIA  for  Vlora  Airport  was  widely  criticised  by  civil  society  and  other 
stakeholders inter alia for not considering the protected area status of the selected site. In some 
cases,  the  EIA  was  approved  after  the  contruction  was  already  underway.  Public  participation 
and  consultation  in  decision-making  need  to  be  improved,  particularly  at  local  level. 
Implementation of the  EU directive on protection of the environment through criminal law has 
to  be  improved,  although  environmental  crimes  convictions  increased  to  65  from  45  in  2020. 
These  crimes  relate  in  particular  to  deforestation,  illegal  logging,  arson,  hunting  and  sale  of 
wildlife and protected species, gravel extraction from riverbeds, and dumping of waste in rivers. 
The implementation  of the polluter-pays  principle in  implementing  legislation is  weak. Further 
progress  is  needed  to  achieve  full  alignment  with  the  directive  on  environmental  liability. 
Inspections  and  enforcement  capacities  should  be  rapidly  strengthened,  especially  to  address 
environmental  crimes  more  effectively.  The  state  budget  for  environment  and  climate  change 
remains  very  limited  in  2022,  and  not  sufficient  to  implement  the  EU  acquis.  Frequent  staff 
turnover  and  hiring  of  staff  without  necessary  expertise  has  further  eroded  the  capacity  of  the 
central administration in this area. The Specialised Anti-Corruption Structure (SPAK) arrested in 
mid-December  2021  the  former  Minister  of  Environment,  on  corruption  charges  during  the 
award procedures for the construction concession of the incinerator  in Elbasan. SPAK has also 
requested  the  arrest  of  two  directors  of  concession  companies.  It  arrested,  in  April  2022,  the 
former Secretary General of the Ministry of the Environment on charges of corruption during the 
award procedures for the Fier waste incinerator.  

More  efforts  are  needed  to  align  with  the  air  quality  acquis,  including  on  extending  and 
improving  the  air  monitoring  system.  The  implementation  of  the  2014  national  air  quality 
strategy is still pending and the 2019 national plan on air quality management does not provide a 
functional  monitoring  system.  It  focuses  mostly  on  transport  measures,  while  air  monitoring 
continues to be not in line with the EU standards on air quality. The implementation of the action 
plan for air quality and of Directive (EU)  2016/802  on sulphur content in certain liquid fuels are 
ongoing,  while  the  implementation  of  Directives  94/63/EC  on  the  control  of  volatile  organic 
compound (VOC) emissions and 2009/126/EU on stage II petrol vapour needs to start.  

The  legal  framework  for  waste  management  is  partially  aligned  and  substantial  efforts  to 
achieve  alignment  are  needed.  Closing  of  non-compliant  landfills  and  dumpsites,  as  well  as 
littering,  remain  a  significant  challenge.  Separate  collection  of  waste  streams  and  economic 
instruments to promote recycling, reuse and to prevent waste generation are still insufficient. The 
construction of a new incinerator in Tirana poses growing concerns in terms of compliance with 

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the  EU  waste  acquis,  including  on  the  waste  hierarchy  and  recycling  targets.  Moreover,  the 
waste  management  policies  do  not  aim  to  reach  EU  2030  recycling  targets.  Albania  should 
promote  circular  economy  and  should  incentivise  preventing,  reducing  and  recycling  waste, 
especially  composting,  to  cut  down  landfilling.  The  implementation  of  the  waste  streams 
legislation  should  be  speeded  up.  The  enforcement  and  compliance-checking  role  of  the 
institutions should be clarified and strengthened, with appropriate staffing and budget. In March 
2022, Albania adopted a legislation that bans the use of certain categories of plastic bags, and has 
partially aligned with the directive on single-use plastics. Further alignement with this directive 
is needed, by banning the other single-use plastic items.  

On water quality, the level of alignment remains  incomplete and two laws on water resources 
and  marine  waters  should  be  adopted  in  2022.  Directive  specific  implementation  plans  for  the 
Drinking Water Directive and Urban Wastewater Treatment Directive, where major investments 
are required for compliance, are under preparation.  Following the 2020  adoption of the Drini-
Buna and Semani River Basin Management Plans, Albania should proceed with the completion 
and  adoption  of  the  remaining  five  RBMPs:  the  Ishem,  Erzen,  Mati,  Shkumbini  and  Vjosa.  In 
line  with  the  Green  Agenda  for  the  Western  Balkans,  Albania  should  increase  efforts  in 
strengthening  transboundary  basin  management  with  neighbouring  countries,  which  concern  to 
Drini-Buna and Vjosa river basins. A transboundary approach with Greece is encouraged during 
the  future  development  of  the  Vjosa  RBMP,  aknowledging  the  high  ecological  value  and  eco-
tourism potential of the river, rin 2021 through a natural river park status.  

To  ensure  progress  with  regards  to  the  EU  water  acquis  as  outlined  above,  Albania  needs  to 
substantially increase the budgetary  resources  and implementation  capacity of  the key  national 
water agenciesand adopt a capacity development plan. In addition, the water quality and quantity 
monitoring  is  insufficient  compared  to  the  current  compliance,  management  and  protection 
needs.  The  Water  Resources  Management  Agency  (AMBU),  together  with  the  Nationa 
Environment  Agency (NEA) and other  water monitoring  agencies, should urgently programme 
and implement a national water monitoring programme with sufficient resources.  

The performance of the water supply and sewerage services sub-sector remains globally low.  

Albania should amplify and accelerate further the water reform measures. The new law on water 
supply  and  sewerage,  the  new  national  strategy  for  water  supply  and  sewerage  2030,  and  the 
revised water code should be adopted and implemented in 2022, and Albania should approve a 
road map on aggregation. There is also a need to ensure full alignment with the urban wastewater 
treatment directive, extend sewerage networks, license and apply adequate tariffs for all waste-
water  treatment  plants  and  build  new  ones,  in  particular  in  urban  and  coastal  areas  with  high 
tourism development. The AKUM strategic institutional development plan, needs to be adopted 
and implemented to drive and support the implementation of the water reform and new strategy 
2030.   

Alignment with the acquis in the field of nature protection, in particular the Habitats and Birds 
Directives, is advanced. The legislation on strategic investment raises concerns for the protection 
of  biodiversity,  as  it  may  lead  to  large  tourism  and  industrial  investments  in  protected  areas. 
Construction works for the new Vlora Airport within the Vjosa-Narta Protected Area started in 
December  2021,  in  contradiction  with  national  laws  and  international  biodiversity  protection 
conventions  that  have  already  been  ratified.  The  government  declared  in  December  2021  the 
status  of  Vjosa  River  as  a  Protected  Area  of  protection,  as  one  of  Europe’s  last  wild  rivers 

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(excluding however its tributaries). Good progress was made with the adoption of the set of rules 
for the management of revenues generated by fees paid in Protected Areas, and the establishment 
of the Special Fund for Protected Areas. An acceleration in the implementation of the set of rules 
should  be  considered.  In  January  2022,  the  government  of  Albania  approved  the  revised 
delimitation of 34 protected areas. Although the total of the area under protection has increased 
to  21 %  of  the  territory,  this  increase  has  happened  in  the  interior  of  the  country,  while  the 
coastal area under protection has shrank. Albania does not adequately ensure enforcement of the 
forest and logging laws, and prosecuted records of offenders and arsonists are little, considering 
the high number of intentional and unintentional fires in 2021 and 2022. No convictions on these 
cases have been reported. The moratorium on hunting was extended by an additional 5 years but, 
for  conservation  purposes,  a  law  and  plan  enforcing  the  moratorium  should  also  be  adopted. 
Capacity for prevention and inspection of wildlife crimes should be ensured. 

The  Skavica  hydropower  plant  project  under  preparation  is  expected  to  have  a  large 
environmental and socio-economic impact on the area, and impact the Balkan lynx populations 
that use this corridor for migration between Albania and North Macedonia. Therefore, adequate 
attention  should  be  brought  to  the  project  design  and  EIA  quality  to  minimise  these  impacts. 
Investments in the road sector rarely implement the obligatory planting and restoration of road 
slopes, and no wildlife crossing has so far been planned and implemented in Albania.  

Albania joined in February 2022 the High Ambition Coalition for Nature and People, pledging to 
protect  at  least  30 %  of  land  and  seas  and  promote  nature-based  solutions  within  the  UN 
framework convention on climate change. 

Alignment with the EU legislation on industrial pollution and risk management is still at an 
early  stage.  Capacity  and  financial  constraints  are  hampering  progress  in  implementing 
legislation on the prevention of major accidents involving dangerous chemicals.  

On  chemicals,  Albania  has  a  legislative  basis  for  alignment  with  the  EU  regulation  on  the 
registration, evaluation,  authorisation  and restriction  of chemicals  (REACH), the implementing 
legislation remains to be adopted and adequate administrative structures to be established.  

Albania  performed  urban  noise  monitoring  in  several  cities  and  municipalities  in  line  with  the 
national  monitoring  programme  and  according  to  WHO  and  national  standards.  It  should 
strengthen its administrative capacity for preparing strategic noise maps and action plans. 

On civil protection, Albania made progress in building its civil protection capabilities and has 
undergone a comprehensive reorganisation of its national civil protection system. In June 2022, 
the  Prime  Minister  submitted  to  the  European  Commission  the  government’s  expression  of 
interest to join the UCPM, demonstrating its commitment for contribution to the Mechanism and 
further progress on civil protection. The country should nevertheless work on further improving 
its civil protection system. considering the multiplication of national disasters in the last decade 
and the increased impacts of climate change, Albania should adopt a new  national strategy and 
national  plan,  review  the  emergency  plans,  and  substantially  enhance  operational  capacities, 
infrastructure  and  systems  for  early  warning,  prevention,  preparedness  and  response.  Albania 
needs  to  build  efficient  civil  protection  and  disaster  risk  reduction  (DRR)  systems  in  order  to 
increase the country’s resilience to natural disasters and crisis. The country should improve the 
management of flood risks in accordance with the EU floods directive, and towards formulating 
new  measures  for  the  reduction  in  damage  caused  by  flooding.  The  country  should  boost 
implementation by developing and adopting flood risk management plans in all basins. It should 

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further  enhance  flood  forecast  and  sustainability  of  national  monitoring  stations  network,  and 
urgently  regulate  its  early  warning  and  hydrometric-meteorological  services.  Albania  is  also 
encouraged to develop river basin droughts management plans, and forest fires risk assessments 
and  management  plans.  Albania  should  also  proceed  with  establishing  secure  trans-European 
services for telematics between administrations (TESTA).  

Climate change  

Albania  has  some  level  of  preparation  for  tackling  climate  change,  but  alignment  with  the  EU 
acquis still remains limited. Albania pledged climate neutrality by 2050 at COP26 in November 
2021, in line with the EU ambition. It also joined the Global Methane Pledge. Good progress was 
done  by  adopting  a  revised  National  Determined  Contribution  (NDC)  in  October  2021, 
increasing the ambition from 11.5 % to 20.9 % of emissions reduction for the period 2021-2030, 
and by adopting a National Energy and Climate Plan (NECP) in December 2021. However, the 
emission reductions foreseen for 2021-2030 in the NECP go up to 18.7%, lower than the pledge 
in the revised NDC.  The plan relies significantly on sequestration of CO2 by forests, however 
there are very limited financial means and capacities allocated to the protection of forests and to 
forest  management  including  reforestation  and  forest  fires  risks  management  measures.  This 
should  be  urgently  tackled.  An  overall  lack  of  a  specific  administrative  structure  for  handling 
climate change issues remains a matter of serious concern. Significant efforts are also needed to 
green the transport sector. 

The  National  Strategy  on  Climate  Change  will  require  updating  to  take  into  account  the  new 
climate targets set out in the revised NDC and, closer to accession, the new climate targets set by 
the EU. The implementation of the 2020 Climate Law requires further implementing measures to 
be initiated under the Minister in charge of environment. Capacities in the public administration 
to  understand  the  climate  change  impacts  on  Albania  and  to  mainstream  climate  change  in 
sectoral strategies and plans remain very limited, and capacity building is very much needed  in 
this regard. No emissions register is in place. 

Substantial  investments  and  efforts  are  needed  for  climate  adaptation,  as  Albania  is  highly 
exposed  to  the  consequences  of  climate  change.  Sea  level  rise  as  well  as  floods/droughts  is 
expected  to  increasingly  affect  people  substantially,  public  infrastructures  and  economic 
activities.  Climate  risks management  plans  need  therefore  to  be  adopted  at  all  levels  and  large 
and  vital  infrastructures  to  be  climate-proofed  in  order  to  increase  the  country’s  resilience  to 
climate change impacts.   

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION  

This cluster covers: agriculture and rural development (Chapter 11); food safety, veterinary and 
phystosanitary  policy  (Chapter  12);  fisheries  (Chapter  13);  regional  policy  and  coordination  of 
structural instruments (Chapter 22); and financial and budgetary provisions (Chapter 33).  

Albania  has  some  level  of  preparation  in  most  areas  linked  to  resources,  agriculture  and 
cohesion,  namely  agriculture  and  rural  development,  veterinary  and  phytosanitary  policy, 
fisheries  and  financial  and  budgetary  provisions.  It  is  moderately  prepared  as  regards  regional 
policy and coordination of structural instruments. Albania has made good progress in agriculture 
and  rural  development,  notably  with  the  establishment  of  a  farm  register  and  better 
administrative  capacity  for  rural  development.  Good  progress  was  also  observed  on  fisheries, 
with  the  operationalisation  of  the  Vessel  Monitoring  System  (VMS)  and  allocation  of  human 

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resources to monitor and report on the activities of fishing vessels. Progress was however limited 
on  food  safety,  veterinary  and  phytosanitary  policy,  on  regional  policy  and  coordination  of 
structural instruments while some progress was made on financial and budgetary provisions. 

This cluster comprises policies linked to sustainable and inclusive territorial development as well 
as  the  EU’s  funding  system,  requiring  particular  preparation  for  developing  the  capacities  to 
assume responsibilities of a future Member State. 

Chapter 11: Agriculture and rural development 

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.  Some  progress 
was  achieved  with  regard  to  the  establishment  of  a  farm  register  and  the  development  of 
administrative  capacities  for  the  preparation  of  the  instrument  for  pre-accession  assistance  for 
rural development programme (IPARD III). Some of the Commission’s recommendations from 
2021 were not fully implemented and remain valid. 

In the coming year, Albania should in particular:  

  complete  the  farm  register  and  adopt  an  implementation  plan  for  the  establishment  of  the 

farm accountancy data network (FADN) to provide validated data for policy-making;  

  Ensure  the  administrative  capacity  required  to  submit  for  entrustment  relevant  measures 

available under IPARD III programme; 

  complete the legal frameworks on wine quality schemes and organic production; ensure the 

institutional and administrative capacity for their 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. 

The  strategy  for  agriculture  and  rural  development  2021-2027  was  adopted  providing  strategic 
background for implementation of national policy and IPARD III. 

A farm register is being put in place. Registration of farms is required and performed both under 
national schemes and under relevant IPARD measures and is performed by the advisory services. 
The farm register is an important first element of the future integrated administration and control 
system (IACS) and it will support the implementation of the IPARD III programme. There was 
no progress in establishing a land parcel identification system  (LPIS). For the establishment of 
the FADN an implementation plan with a concrete timeline and resource allocation remains to be 
adopted. 

Direct payments under national schemes remain coupled to production and not subject to cross-
compliance rules. The national agriculture budget continues to be low, and IPARD should not be 
used as a substitute  to national  support.  A strategic Action Plan  was adopted to  implement the 
reform of the advisory system.  

There  was  no  progress  on  the  establishment  of  a  common  market  organisation  (CMO). 
Legislation on wine remains to be adopted. Institutional capacity is still at a low level. 

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On rural development, IPARD implementation continued in a satisfactory manner in terms of 
contracting targets. It implemented a 4th call for applications under IPARD II. However, efforts 
are  needed  to  avoid  de-commitments  in  2022  and  in  2023,  due  to  delays  in  project 
implementation.  

Legislation  on  quality  policy,  is  partly  aligned  with  the  EU  acquis.  On  organic  farming, 
additional effort is needed to bring the legislation on organic production in line with the recent 
reform of the EU organic legislation. Albania continued the national support for organic farming. 

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 quality of seeds, plant 
protection material, protection against harmful organisms and animal nutrition.  

Albania has some level of preparation in the area of food safety, veterinary and phytosanitary 
policy and made limited progress. Albania has not made significant steps to design and adopt a 
coherent  sector  policy.  Albania  has  initiated  the  alignment  with  the  EU  acquis  on  official 
controls, animal health and plant health but the progress is modest so far.  

Some of the Commission’s recommendations from 2021 were not fully implemented and remain 
valid, as more progress is needed.  

In the coming year, Albania should in particular:  

  adopt a consolidated national food safety policy and align relevant laws on official controls, 

animal health and plant health under this framework;  

  complete the staffing of the veterinary service to make the service fully operational in line 
with tasks and functions defined by relevant  regulations; establish an effective surveillance 
capacity on main infectious animal diseases including rabies; 

  continue to efficiently implement the rabies vaccination programme covering 2023.  

On general food safety, the National Food Authority has carried out regular official controls in 
accordance with the annual risk-based plan. There is some progress regarding the preparation of 
an  improved  risk  assessment  methodology.  Albania  needs  to  enhance  official  controls  by 
adopting the upgraded methodology and train sufficient staff to implement the annual inspection 
plans.  The  National  Authority  has  yet  to  improve  the  quality  of  the  inspection  statistics,  not 
limiting it to the number of inspections or measures taken on infringements. Data management 
needs to be improved to increase efficiency, and reduce the administrative burden for planning 
and reporting on risk based official controls and ensure transparency of national data. 

There was some progress on convening the Board for National Food Authority and establishment 
of the Scientific Panel from June 2022.  As regards the veterinary policy, there was progress by 
National  Veterinary  and  Plant  Protection  Authority  (NVPPA)  on  recruitment  of  veterinarians. 
The  reform  of  the  veterinary  sector  should  be  completed  by  filling  all  vacancies  and  by 
establishing  the  necessary  capacities  on  passive  and  active  surveillance  including  reliable 
assessments  of  the  prevalence  of  diseases,  thorough  data  analysis  and  appropriate  design, 
planning and implementation of effective systems for disease prevention and/or eradication.  

The Government approved in May 2022 the re-organisation of the Ministry of Agriculture and 
Rural  Development  by  establishing  directorates  dealing  with  food  safety,  veterinary  and 

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phytosanitary.  Albania  needs  to  ensure  the  establishment  of  a  structure  coherent  with  the  EU 
acquis, with a clear chain of command, line of communication and reporting. 

The programmes for the monitoring of brucellosis and tuberculosis in cattle herds with more than 
10  heads,  anthrax,  lumpy  skin  disease  in  bovine  have  continued.  During  2021,  vaccinations 
campaigns against rabies for the period 2020-2022 were completed including post monitoring of 
vaccination.  Albania should take full ownership of these vaccination campaigns and transition to 
using its own means for such future vaccination campaigns, in line with obligations to harmonise 
with the relevant EU acquis. Countrywide verification and registration of the number of animals 
in Albania has continued. From October 2021, official controls have been implemented, by the 
National Veterinary and plant Protection Authority, in live animal markets and slaughterhouses, 
thus  improving  reporting  animal  disease  and  animal  movement.  The  animal  register  needs  to 
include more information on other animals, such as swine, equine, poultry and other animals as 
referred to in the EU acquis, to ensure that solid traceability systems are established for food of 
animal origin. 

With regard to the placing on the market of food, feed and animal by-products, the National 
Residue Monitoring Plan including veterinary medical products, pesticide residues, heavy metals 
and mycotoxins in live animals and products of animal origin has been launched. Nevertheless, 
Albania  should  implement  in  full  the  National  Residue  Monitoring  Plan  by  using  validated 
screening methods to  ensure the reliability of results for the relevant species and commodities. 
The  laboratory  network  of  Albania  should  be  improved  including  management,  capacities, 
accreditation and validation of methods within a consolidated framework.  

As regards animal by-products legal basis there was no progress.  

Concerning  food  safety  rules,  Albania  has  continued  to  align  with  the  EU  acquis  on 
microbiological  criteria  of  food  products;  specific  hygiene  requirements  for  meat  and  meat 
products;  establishment  of  detailed  rules  concerning  the  market  standard  and  trade  in  eggs; 
maximum level of pesticide residues in fruits, vegetables, fresh and/or processed seeds; on food 
additives. 

On the phytosanitary policy, the Ministry of Agriculture and Rural Development has continued 
approving  active  substances  of  plant  protection  products  in  line  with  the  EU  acquis.  The 
National Veterinary and Plant Protection Authority (NVPPA) has performed the monitoring and 
verification of the phytosanitary condition for any plant pests in the country, supervising the use 
of hazardous plant  protection on products  posing high  risks  to  human health and environment, 
and  issuing  phytosanitary  certificates  for  export.  National  Food  Authority  has  also  performed 
inspections on plant protection and agriculture inputs.  

With regard to legislation on feed or genetically modified organisms, there is no progress. The 
legislation on genetically modified organisms (GMOs) needs to be adopted.  

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  has  some  level  of  preparation/is  moderately  prepared  in  fisheries.  Albania  made 
good  progress,  specifically  on  maintaining  operational  the  Vessel  Monitoring  System  (VMS) 

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and  allocating  human  resources  to  monitor  and  report  on  the  activity  of  fishing  vessels.  There 
was progress  on  recruitment  of inspectors;  but the administrative capacities of the inspectorate 
and  central  administration  should  be  further  enhanced.  Albania  as  a  contracting  party  of  the 
General  Fisheries  Commission  for  the  Mediterranean  (GFCM)  is  fully  implementing  its 
recommendations to  control the fishing effort.  The Commission’s recommendations from 2021 
were adapted to reflect new specific priorities. 

In the coming year Albania should in particular:  

  build up the necessary  administrative capacity of the fishery sector, notably by  completing 
the staffing, strengthening data collection and scientific advice, implement national policies 
in line with EU Common Fisheries Policy (CFP) and international agreements;  

  take concrete steps for implementing the Regional Plan of Action for small-scale fisheries; 

  participate actively in the GFCM inspection scheme in the Adriatic Sea.  

Regarding  resource  and  fleet  management  and  structural  actions,  the  vessel  register  and 
fishery production data are regularly maintained and updated. A number of legal acts were issued 
to  regulate  the  management  of  commercial  fishing  capacities.  The  agreement  between  Albania 
and North Macedonia for joint fisheries management in Lake Ohrid and Lake Prespa is in force. 
Ministerial orders have been issued in line with the recommendations of GFCM for sustainable 
exploitations  of  fish  stocks.  With  regard  to  small-scale  fisheries,  no  significant  step  has  been 
taken  since  the  amendments  to  the  Fishery  Law  in  2019.  The  government  has  introduced  new 
financial  supporting  measures  to  fishery  sector  as  part  of  national  funding  programme  for 
agriculture and rural development 2022.  

Inspection  and  control  capacity  has  improved.  The  vessel  monitoring  system  (VMS)  is  fully 
functional as of May 2021. In addition, tests on a pilot electronic reporting system (ERS) started. 
The legal basis on the establishment of the full ERS system remains to be prepared. The Ministry 
of  Agriculture  has  recruited  six  system  operators  who  monitor  and  report  on  the  activity  of 
fishing  vessels  in  addition  to  the  Fishery  Monitoring  Centre  (IMOC).  Progress  took  place  on 
recruitment  procedures  of the new fishery inspectors. The total  number of inspectors increased 
from 21 to 28 into four ports offering the service 24/7.  

As part of the May 2022 re-organisation of the Ministry of Agriculture and Rural Development, 
adequate  human  resources  in  the  Directorate  of  Fisheries  and  Aquaculture  Policies  and 
Programmes has to be ensured. The capacity to interpret and implement the national legislation 
or  the  EU  Common  Fisheries  Policy  (CFP)  remains  weak  and  has  consequences  on  data 
collection,  which  needs  further  strengthening,  in  particular  in  terms  of  scientific  capacity  and 
data management. 

The  government  approved  the  first  plan  of  allocated  zones  for  aquaculture  (AZA)  in  Saranda 
region. The Government needs to adopt such plans also for the remaining Shengjin, Durrës and 
Vlora AZAs.  Efforts on preparation of AZA for inland waters have started. 

On market policy, a wholesale market for the fishery products in Shengjin fishing port has been 
completed.  The  legal  basis  for  the  transfer  of  market  management  has  been  drafted.  The 
construction of the wholesale fish market in Vlora was completed. On State aid, support is made 
available for replacement of fishing vessels and equipment (50 % co-funding).  

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Regarding  international  agreements  for  fisheries  management,  a  cooperation  agreement 
between Albania and North Macedonia is in force. Albania is a contracting party of GFCM and 
has fully implemented its recommendations to control the fishing effort. Albania should continue 
to  actively  participate  and  implement  actions  and  recommendations  of  GFCM,  notably  the 
implementation  of  the  multi-annual  management  plans  for  the  conservation  and  sustainable 
exploitation of small pelagic and demersal fishing activities in the Adriatic Sea and by increasing 
activities to implement the regional plan of action for small-scale fisheries in the Mediterranean 
and the Black Sea (RPOA-SSF). 

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.  EU  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  over  the  reporting  period,  particularly  with  the 
adoption of the implementing legislation to the Law on Regional Development and Cohesion.  

The  recommendations  for  2021  remain  partly  valid.  In  the  coming  year,  the  country  should  in 
particular:  

  prepare  for  effective  implementation  of  the  EU  acquis  under  chapter  22  and  factor  the 
requirements of the future structural/cohesion funds in the institutional set-up, the financial 
management  and  control  systems,  and  the  administrative  capacity,  ensuring  that  all  its 
instruments  and  funds  are  gradually  made  compliant  with  EU  requirements  in  terms  of 
programming and partnership principles;  

  proceed  with  the  national  strategy  and  plan  for  regional  development  and  cohesion  (2021-
2027)  and  complete  the  regional  development  plans  (2021-2024)  which  should  foster  the 
development  potential  through  decentralised  interventions  based  on  local  and/or  regional 
integrated plans and strategies; finalise and approve the National Strategy for Development 
and Integration 2020-2030; 

  clarify  responsibilities  between  central  and  local  authorities  in  line  with  the  progress 
achieved  on  decentralisation,  and  further  strengthen  the  administrative  capacity  of  central, 
regional  and  local  bodies,  especially  at  central  level,  in  particular  by  ensuring  adequate 
staffing  and  revising 
local  government  salary  structure  and  keeping  fiscal 
decentralisation high on the agenda. 

the 

As regards the legislative framework for regional policy, following the approval of the Law on 
Regional  Development  and  Cohesion  in  September  2020  and  26  consultative  meetings,  five 
implementing  acts  were  developed,  including  on  defining  development  regions  in  Albania  and 
their prerogatives. The other acts, still pending approval, are to establish the policy for regional 
development  and  cohesion,  the  national  committee  as  well  as  the  regional  boards,  and  the 
procedures for drafting the national and regional plans. The drafting of by-laws for the managing 
authority  and  for  the  establishment  of  the  database  and  monitoring  system  for  regional 
development and cohesion is ongoing.  

On  the  institutional  framework,  relevant  by-laws  on  establishing  a  comprehensive  regional 
development system need to reflect the role and responsibilities of each of the actors involved. In 

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terms  of  indirect  management  of  EU  funds,  decisions  on  the  appointment  of  institutions  and 
bodies that will implement the EU’s Instrument for Pre-accession Assistance (IPA III) should be 
made taking into account their future role in cohesion policy. (See above under Political Criteria 
- Governance).  

Albania  also  needs  to  address  issues  with  strategic  planning,  implementation  and  monitoring 
capacity of infrastructure projects financed under the Economic and Investment Plan.  

On  administrative  capacity,  the  staff  of  the  structures  involved  in  indirect  management 
continued  to  receive  training  and  this  should  remain  a  focus.  The  administrative  capacity  for 
coordinating  and  monitoring  sectoral  reform  through  the  integrated  policy  management  groups 
and  sectoral  steering  committees  has  slightly  improved.  The  involvement  of  development 
partners, local governments and civil society organisations in sectoral dialogue still needs some 
improvement. 

As regards programming, efforts are needed to  develop autonomous programming capacity in 
the period ahead (2023-2027). 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. A key element for the success of the 
regional development process will be to build ownership of public and private actors at national 
and sub-national levels.  

Albania  continues  to  gain  experience  in  programming  and  implementation  of  regional  policy 
territorial  cooperation  through  the  participation  in  cross  border  cooperation  and    transnational 
and  interregional  cooperation  programmes.    Albania    participates  in  the  EU  Strategy  for  the 
Adriatic  Ionian  Region  (EUSAIR)  which  promotes  cooperation  and  synergies  among  the 
participating EU and non-EU countries. 

On  monitoring  and  evaluation,  the  sectoral  monitoring  committee  issued  operational 
recommendations for all IPA sectors, however SASPAC  should ensure adequate monitoring of 
all programme activities on a daily basis. The support offices of the National Authorising Officer 
and  the  National  IPA  Coordinator  has  yet  to  establish  a  list  of  key  performance  operators  to 
evaluate the performance.  

On financial management, control and audit, an evaluation of IMBC under IPAII found that 
the law on the  audit  authority needs to  be amended to  ensure that management  powers remain 
with  the  General  Director,  and  are  not  subordinated  to  the  Supervisory  Council.  The  National 
Authorising  Officer  needs  to  ensure  that  its  management  declaration  adequately  reflects  the 
results  of  its  supervision  and  monitoring  of  management  and  control  systems.  The  Officer’s 
support  office  has  yet  to  establish  procedures  to  ensure  immediate  dissemination,  and  the 
implementation  throughout  the  institutions,  regarding  internal  control  by  the  Commission. 
Irregularities  are  still  to  be  registered  completely  and  without  delay  in  the  irregularity 
management  system,  and  internal  control  weaknesses  and  non-compliance  events  should  be 
systematically reported in a dedicated registry. 

Chapter 33: Financial and budgetary provisions 

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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;  (iii)  the  non-recycled  plastic  resource  and  (iv)  a  resource 
based on value-added tax. EU 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 the area of Financial and budgetary provisions. Some 
progress was made in aligning with the EU acquis in the underlying policy fields that affect the 
functioning  of  the  EU  funding  system.  Albania  continued  to  regularly  publish  the  Gross 
Domestic Product and Gross National Income Indicators following ESA 2010 methodology and 
methodological  improvements  continued  as  regards  the  alignment  with  ESA  2010  standards, 
however  last  year’s  recommendations  remain  valid  as  more  progress  is  needed.  In  the  coming 
year, the country should in particular: 

  continue aligning data on National Accounts to ESA 2010 (European System of Accounts), 
and  improving  the  comprehensiveness  of  data  transmission  to  Eurostat  including  on 
Excessive Deficit Procedure (EDP); 

  align its legislation with the EU provisions on VAT and customs duties and strengthen the 

efforts to tackle fiscal evasion. 

  enhance 

the  administrative  capacities  and  co-ordination  mechanisms  among  key 

stakeholders in the own resources system.   

There  was  some  progress  in  the  underlying  policy  areas  indirectly  affecting  the  own  resources 
system (for progress in these areas, see Chapters 16  – Taxation, 18 – Statistics, 29 – Customs 
union, and 32 – Financial control).  

With regard to traditional own resources, Albania has structures in place for levying customs 
duties at the point of import. It operates a national VAT system. However, the mid-term revenue 
strategy (MTRS) that was planned to be adopted in 2020 still needs to be finalised. 

As regards the Gross National Income (GNI) resource, Albania continued its efforts to align its 
legislation with ESA 2010 standards and in publishing the inventory of resources and methods 
used in the national accounts. However, further efforts are needed to improve compliance with 
ESA  2010  and  to  start  the  work  on  establishment  of  the  GNI  Inventory  in  full  alignment  with 
Eurostat recommendations. Due to the COVID-19 pandemic, the benchmark revision of national 
accounts planned to be adopted in 2020 was postponed to 2024. INSTAT has continued its work 
in improving the EDP data, following the ESA 2010 and the manual on government deficit and 
debt,  and  pilot  estimations  were  transmitted  to  Eurostat.  In  May,  INSTAT  released  the 
publication on Generation of Income Accounts by Institutional Sectors for the year 2019, while 
data  series  for  the  period  2013  –  2019  are  transmitted  based  on  ESA  2010  Transmission 
program. 

Albania continued its preparations for improving the estimation of its non-observed economy. A 
pilot  project  to  improve  the  exhaustiveness  adjustments  of  GDP/GNI  estimates,  designed  in 
particular  to  develop  new  experimental  estimates  on  illegal  activities  and  fiscal  audit,  was 
implemented.  Efforts  to  improve  the  exhaustiveness  of  national  accounts  estimates  are  being 
undertaken. The general tax directorate and the general customs directorate have continued their 
work on identification of fiscal evasion and fraud. Staff continued to receive training through the 

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Fiscal  Academy,  including  on  fiscalisation  process,  and  since  January  2022  a  special  Anti-
Informality  Unit  is  established  in  the  Ministry  of  Finance  and  Economy.  However,  continued 
efforts are needed to ensure formalisation of the informal economy, improve the exhaustiveness 
of the national accounts and GDP/GNI calculations and combat fiscal evasion and customs duty 
fraud. 

On  administrative  infrastructure,  the  Ministry  of  Finance  and  Economy  has  overall 
responsibility  for  financial  and  budgetary  issues.  Albania  will  need  to  continue  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,  upon 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 EU acquis.  

CLUSTER 6: EXTERNAL RELATIONS  

There  are  two  chapters  in  this  cluster:  external  relations  (Chapter  30);  foreign,  security  & 
defence policy (Chapter 31). Albania has a good level of preparation in both. A regards the latter 
chapter, Albania made good progress, maintaining full alignment with all relevant EU decisions 
and  declarations  of  the  EU’s  Common  Foreign  and  Security  Policy,  including  with  the  EU 
restrictive  measures  following  Russia’s  unprovoked  aggression  against  Ukraine.  As  a  non-
permanent member since January 2022, Albania has been actively engaged in the  UN Security 
Council in promoting and defending the rules-based international order.  

For the external relations chapter, which covers the EU’s common trade and commercial policy 
towards third countries as well as its humanitarian aid and its development policy, Albania made 
some  progress  and  reached  a  good  level  of  preparation.  Albania  has  in  particular  continued 
alignment  of  legislation  in  the  field  of  dual  use  goods  and  to  implement  CEFTA  additional 
protocols. 

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. 

Concerning  the  acquis  on  external  relations,  Albania  has  a  good  level  of  preparation.  Some 
progress was made during the reporting period, particularly as regards continuation of alignment 
of the legislation in the field of dual use goods with the relevant EU acquis.  

Last year`s recommendations were not fully implemented and remain largely valid: 

  align the relevant legislation with the EU acquis on trade in certain goods that could be used 
for  capital  punishment,  torture  or  other  cruel,  inhuman  or  degrading  treatment  or 
punishment; 

  establish  a  legal  framework  covering  international  cooperatin  and  development  policy  as 
well as humanitarian aid towards non-EU countries in line with EU policies and principles  ;  

  further implement CEFTA Protocol 6 on trade in services, and  conclude and adopt CEFTA 

Protocol 7 on dispute settlement. 

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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. With regards to the later, in November 2021 
Albania  notified  the  WTO  on  the  revised  schedule  of  specific  commitments.    The  order  on 
prohibition  of  export  of  medicines  and  medical  equipment  linked  to  the  COVID-19  pandemic 
were lifted in July 2021.  

In November 2021, Albania amended its national control list of dual-use goods in line with the 
EU  regulation  on  control  of  exports,  transfer,  brokering,  and  transit  of  dual-use  goods  and 
technologies. A specific unit dealing with dangerous goods, dual use and illegal trafficking was 
set  up  in  the  anti-trafficking  directorate  of  the  General  Directorate  of  customs.  During  the 
reporting  period  the  export  control  authority  carried  out  verification  procedures  together  with 
customs authority and issued fines for 10 companies for non-compliance with the legislation on 
dual  use goods.   Albania has  yet  to align its legislation with  the EU  acquis on trade in  certain 
goods  that  could  be  used  for  capital  punishment,  torture  or  other  cruel,  inhuman  or  degrading 
treatment or punishment.  

There  is  no  progress  in  the  area  of  export  credit  guarantee  while  the  second  tier  banks  do 
provide  guarantees  such  as  payment  guarantee,  performance/contract  guarantee  and  bid 
guarantee. There is no state-supported export credit insurance provider.  

As  regards  bilateral  agreements  with  third  countries,  Albania  is  negotiating  with  China  a 
memorandum  of  understanding  concerning  investment  cooperation  in  the  digital  economy  and 
with  India  an  agreement  on  establishing  the  inter-governmental  Commission  on  economic 
cooperation. 

Albania continued to implement CEFTA commitments related to additional protocols (AP) 5 and 
6.  Albania  continued  its  awareness  campaign  with  private  sector  representatives  as  regards  the 
Authorised Economic Operators (AEOs)  application procedures and benefits, and has registered 
16  applications  from  local  businesses.  The  first  eight  authorised  economic  operators  were 
certified  by  the  General  Directorate  of  Customs  and  were  positively  assessed  by  the  CEFTA 
validation committee.  Albania  continued to  participate in  the negotiations on  CEFTA AP  7 on 
dispute settlement. 

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  the  potential  activities  of  such 
organisations in the field of humanitarian aid, and allows them to carry out development and 
humanitarian  aid  activities  in  Albania  and  elsewhere.  Two  decisions  of  Council  of  Ministers 
were adopted in Marcha and June 2022 to address humanitarian aid issues for Ukrainans coming 
to Albania due to the Russia`s agression on Ukraine, and on the financial aid to be provided to 
the Ukrainian government for country’s reconstrution.  

Chapter 31: Foreign, security and defence policy 

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EU Member States must be able to conduct political dialogue under the EU foreign, security and 
defence policy, align with EU statements, take part in EU actions, and apply agreed sanctions 
and restrictive measures. 

Albania  has  a  good  level  of  preparation  in  the  field  of  foreign,  security  and  defence  policy. 
Good  progress  was  made  as  the  country  continued  its  track-record  of  full  alignment  with  the 
EU’s common foreign and security policy, including with the EU restrictive measures following 
Russia’s  unprovoked  aggression  against  Ukraine.  Furthermore,  as  a  non-permanent  member 
since January 2022, Albania has been actively engaged in the UN Security Council in promoting 
and defending the rules-based international order, in particular in the context of Russia’s war of 
aggression against Ukraine. Some progress was made on implementing the national strategy on 
small  arms  and  light  weapons,  and  on  aligning  with  the  EU  acquis  in  this  field,  but  Albania 
remains both a destination and a transit country for light firearms.  

In the coming year, Albania should in particular: 

  maintain its full alignment with the EU foreign, security and defence policy; 

  continue to implement the national strategy on small arms and light weapons as well as the 
corresponding  action  plan,  and  step  up  the  investigation  and  prosecution  of  firearms 
trafficking. 

The  political  dialogue  between  the  EU  and  Albania  on  foreign  and  security  policy  issues 
continued,  including  through  Albania’s  active  engagement  in  the  EU-Western  Balkans  CFSP 
dialogue  at  political  directors’  level.  Albania  has  expressed  its  support  for  the  EU  Strategic 
Compass for Security and Defence.  

Albania’s Ministry for Europe and Foreign Affairs has appropriate structures to participate in the 
common  foreign  and  security  policy  (CFSP)  while  the  Ministry  of  Defence  deals  more 
specifically with the common security and defence policy.  When invited, Albania aligned with 
all  relevant  Council  Decisions  and  High-Representative  declarations  on  behalf  of  the  EU, 
including  on  restrictive  measures,  despite  increasing  pressure  from  third  parties.  Albania 
continues to align 100 % with the EU foreign and security policy. This is a strong signal of the 
country’s strategic commitment to its EU path. Albania notably aligned with the EU position in 
the  UN  General  Assembly  (UNGA)  when  co-sponsoring  or  voting  on  resolutions  regarding 
Russia’s  aggression  against  Ukraine  and  its  humanitarian  impact.  Albania  also  voted  for  the 
suspension of the Russian Federation in the UN Human Rights Council. 

On  restrictive  measures,  Albania  implements  EU  sanctions.  The  authorities  have  cooperated 
with the EU in strengthening their capacity to implement and enforce international sanctions. 

Albania’s priorities as a non-permanent member of the UN Security Council in 2022-2023 are in 
line  with  important  EU  priorities,  including  women,  peace  and  security,  human  rights  and 
international  law,  countering  violent  extremism,  and  climate  and  security.  It  has  closely 
cooperated  and  coordinated  with  the  EU,  respectively  EU  Member  States  in  the  UN  Security 
Council, including on the international response to Russia’s aggression against Ukraine. 

Albania maintains a bilateral  immunity agreement  with  the United States, granting US  citizens 
exemptions 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 

123 

 
 
therefore needed. 

Concerning  non-proliferation,  Albania  continued  to  implement  its  national  strategy  on  small 
arms and light weapons (SALW) adopted in February 2019. A new action plan to implement the 
strategy  in  2022-2024  was  adopted  in  December  2021.  The  action  plan’s  implementation  has 
begun.  Albania  also  remained  actively  engaged  in  the  implementation  of  the  2018  regional 
roadmap  and  other  regional  forms  of  cooperation,  such  as  the  European  multidisciplinary 
platform against criminal threats (EMPACT) on firearms.  

Albania continued to participate in some, but not all, international  export control arrangements 
and  non-proliferation  instruments.  It  started  procedures  to  join  the  Wassenaar  Arrangement  in 
September  2020  and  should  conclude  the  process  rapidly.  Albania  continued  to  implement  the 
national  strategy  against  proliferation  of  weapons  of  mass  destruction  and  its  action  plan, 
adopted in January 2020. In May 2022, Albania initiated its membership of the Organisation for 
the  Prohibition  of  Chemical  Weapons  (OPCW)  Executive  Council  (2022-2024),  actively 
contributing to the effective implementation of the Chemical Weapons Convention.  

Albania  continued  active  cooperation  with  international  organisations  and  maintained  a 
robust presence in a number of NATO missions, including some of strategic importance to the 
EU, and contributed to the United Nations Mission in South Sudan. 

In  terms  of  security  measures,  a  by-law  on  the  selection  and  installation  of  equipment  that 
processes classified information was adopted by the Council of Ministers in April 2022. Albania 
continued  to  participate  in  EU  crisis  management  missions  and  operations  under  the  common 
security and defence policy (CSDP), notably EUFOR Althea in Bosnia and Herzegovina. The 
country pledged to contribute to the EU battle groups in 2024. 

Regarding hybrid threats, Albania completed the EU’s hybrid risk survey with the objective of 
identifying  systemic  vulnerabilities  which  should  be  addressed.  In  July  2022,  a  large-scale 
cyberattack took place in Albania, which led to the disruption of most public online services and 
government e-mail systems. In September 2022, the Albanian government attributed the attack to 
Iran and, consequently, decided to sever its diplomatic ties with that country. 

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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. The transitional period of the SAA ended on 31 March 2019 and that since 1 
April  2019,  Albania  is  thus  fully  associated  with  the  EU.  In  the  reporting  period,  Albania 
continued  to  implement  its  commitments  under  the  SAA.  Regular  political  and  economic 
dialogue has continued through the  relevant  joint  bodies under the SAA.  The Stabilisation and 
Association  Parliamentary  Committee  met  on  23-24  February  2022.  The  Stabilisation  and 
Association  Committee  took  place  on  15  February  2020.  Discussions  focused  on  progress  in 
SAA implementation as well as of the most important reforms developments. The Stabilisation 
and Association Council did not meet during the reporting period.  

The  SAA  and  its  Interim  Agreement,  applied  since  2006,  have  allowed  progressive  trade 
liberalisation  and  mutual  duty-free  access  for  most  goods.  Since  2000  Albania  has  also  been 
benefiting from the ‘Autonomous Trade Measures’. Albania is a WTO member since 2000, and 
joined  the  Central  European  Free  Trade  Agreement  (CEFTA)  in  2007.  The  EU  is  the  main 
trading partner of Albania, followed by CEFTA countries. Trade integration with the EU is high. 
In 2021 the EU remained the main trading partner of Albania, accounting for 60% of Albania’s 
total trade in goods (72% of total exports and 54% of total imports). EU-Albania trade rose by 
27.3%  in  2021,  demonstrating  a  recovery  from  the  impacts  of  the  COVID-19  pandemic. 
Albania’s  total  trade  in  2021  was  worth  €10  billion.  The  country’s  trade  deficit  with  the  EU 
amounted to EUR 1.6 billion in 2021. In comparison, Albania’s trade with CEFTA represented 
aound  10.1%  of  total  trade,  a  similar  level  to  2020,  which  demonstrates  ongoing  regional 
integration. 

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. On 12 May 2021, 
the Commission informed the Council that all conditions to be fulfilled prior to the holding of the 
first Inter-Governmental Conference of accession negotiations were met, since the Constitutional 
the  Intergovernmental 
Court  regained  functionality 
Conference on  accession  negotiations  took  place  with  Albania.  The  Commission  launched  the 
screening process on the same day. 

in  December  2020.  On  19  July, 

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  August  2021  fourth  report  under  the  visa  suspension  mechanism25 
concluded that Albania continues to meet the visa liberalisation requirements. 

Albania  is  the  only  country  from  the  region  that  has  signed  cooperation  agreements  with  all 
justice and home affairs  agencies of the EU.  A Europol  liaison  officer was deployed  in  Tirana 
until February 2022. This further intensified the cooperation with Europol. A liaison prosecutor 
was deployed to Eurojust in the Hague in January 2021. The first Frontex joint operation outside 
the EU deployed at the Greek-Albanian border in May 2019 was supplemented in March 2021 
with  a  sea  border  joint  operation  deployed  near  Durres.  In  March  2021  a  new  working 
arrangement  was  signed  with  FRONTEX.  A  second  FRONTEX  liaison  officer  to  the  Western 
Balkans  with  a  mandate  covering  Albania,  Kosovo,  and  North  Macedonia  was  deployed  in 

25 COM(2021)602 final and SWD(2021)206 final 

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Tirana  in  January  2021.    Albania  continues  to  cooperate  with  EMCDDA  under  the  working 
arrangement signed in March 2019 on drug related issues. Albania was granted Observer Status 
to EU Fundamental Rights Agency by decision of the EU-Albania Stabilisation and Association 
Council in November 2019. Albania appointed an Observer to the Agency in 2020 and a positive 
engagement with Albanian stakeholders started. 

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, notably EUFOR Althea in Bosnia 
and Herzegovina.  

Under  the  Instrument  for  Pre-accession  Assistance  2021  –  2027  (IPA  III),  a  first  financing 
decision  of  EUR  64.9  million  was  adopted  at  the  end  of  2021,  providing  support  for  EU 
accession and post-country’s COVID recovery and enhancing the country’s reforms in the areas 
of  rule  of  law,  nature  protection,  green  growth  and  innovation.  This  first  set  of  programmes 
complemented by a significant package of multi-country programmes and the rural development 
programme IPARD II, provide a significant contribution to kick-start the implementation of the 
Economic  and  Investment  Plan  for  the  Western  Balkans  and  the  Green  Agenda.  Albania 
participates also in cross-border cooperation programmes, transnational cooperation programmes 
and Union programmes. 

The new activities will complement the on-going programmes under IPA II (2014-2020), which 
are  still  providing  significant  support  for  the  social  and  economic  development  of  the  country 
and contribute to key reforms. On the fundamentals, progress was made with the implementation 
of the justice reform, capacities of the justice and law enforcement agencies in the fight against 
corruption,  organised  crime  and  money  laundering.  EU  programmes  have  supported  public 
administration  reform,  public  finance,  decentralisation  and  service  provision  to  the  citizens.  In 
addition,  civil  society  has  been  a  strong  partner  in  advancing  the  priority  areas  of  the 
fundamentals  agenda.  Significant  EU  financial  assistance  has  been  allocated  to  Albania  for 
protecting the environment and boosting the connectivity with the EU transport systems. 

In  response  to  the  COVID-19  outbreak,  EUR  50.65  million  was  reprogrammed  from  the  IPA 
2019  and  2020  envelopes,  to  allow  provision  of  urgent  medical  supplies  and  support  for  the 
mitigation of socioeconomic impact of the crisis. Other programmes were also reoriented to help 
reduce  the  impact  of  the  pandemic  and  Albania  signed  a  loan  of  EUR  180  million  in  Macro 
Financial Assistance, of  which  the 1st tranche of  90 million  were disbursed on 31 March  2021 
and the balance in November 2022.  

The Commission set aside 70 MEUR in grants from IPA II for the Western Balkan partners to 
reimburse  the  Member  States  for  the  resale  of  doses  they  obtained  under  the  EU  Advance 
Purchase Agreements with COVID-19 vaccine producers or bilateral orders of EMA authorised 
vaccines, of which Albania received EUR 11.2 million. Albania has received just over 1 million 
doses  via  the  use  of  the  IPA  grant,  including  over  188  000  via  COVAX  initiative,  which  is 
significantly  supported  by  the  EU.    COVAX  also  delivered  a  further  over  143    000  doses  to 
Albania by the same date. 

Following the November 2019 earthquake, the EU pledged EUR 115 million, which have been 
translated into two programmes.  

126 

 
 
While the recent focus has been on mobilising and delivering support to Albania in response to 
the triple shock of the 2019 earthquake26, the COVID-19 pandemic, and the consequences of the 
aggression against Ukraine, IPA has also continued to help the country to deliver on key reforms 
such as the justice reform, for instance in the process of reevaluation  of judges and prosecutors 
(“vetting”), and in supporting the specialised structures against corruption and organised crime. 

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),  Justice,  Europe  for  Citizens  and  EU  Fundamental  Rights 
Agency (FRA) (observer). 

26 The EU4Schools programme supports reconstructing and rehabilitating education facilities damaged by the 
earthquake. The EU4Culture supports the rehabilitation of the cultural heritage sites gravely damaged by the 
earthquake, as well as related economic activities to support the tourism related to these sites 

127 

 
 
 
 
 
 
                                                           
STATISTICAL DATA (as of 01.09.2022) 
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 (2015 = 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 (%) 

Note 

Note 

2009 
2 936 s 
28 750 w 

2009 
1 143 937 
8 662 
2 960 
6 654 
27.7 
3.4 d 
: 
: 

2016 
2 876 s 
28 748 w 

2016 
1 472 479 
10 720 
3 730 
8 387 
29.7 
3.3 
: 
: 

2017 
2 877 s 
28 748 w 

2017 
1 550 646 
11 559 
4 020 
8 770 
29.9 
3.8 
: 
: 

2018 
2 870 s 
28 748 w 

2018 
1 636 731 
12 828 
4 480 
9 155 
30.2 
4.0 
: 
: 

2019 
2 862 s 
28 748 w 

2019 
1 691 903 
13 754 
4 820 
9 524 
30.4 
2.1 
: 
: 

2020 
2 846 s 
28 748 w 

2020 
1 644 077 p 
13 283 p 
4 680 p 
9 109 p 
30.4 
-  3.5 p 
: 
: 

: 
: 
: 

19.4 
10.9 
17.3 
52.4 s 
91.9 
32.7 
1.8 
25.2 
49.9 
: 

: 
: 
: 

22.6 
14.0 
10.2 
53.2 s 
92.2 
24.4 
0.9 
29.0 
45.8 
: 

: 
: 
: 

21.8 
12.8 
10.5 
54.9 s 
91.1 
24.6 
0.5 
31.6 
46.6 
: 

: 
: 
: 

21.1 
14.1 
10.3 
54.6 s 
90.4 
23.9 
0.0 
31.6 
45.2 
: 

: 
: 
: 

21.0 
13.8 
9.8 
55.4 s 
91.3 
22.3 
0.7 
31.3 
45.0 
: 

Note 
1) 
2) 3) 
4) 

2009 
41.8 w 
70 890 w 
13.8 w 

2016 
82.0 w 
98 262 w 
19.5 w 

2017 
81.4 w 
97 352 w 
15.3 w 

2018 
96.6 w 
97 272 w 
12.5 w 

2019 
95.5 w 
93 563 w 
10.8 w 

: 
: 
: 

22.0 p 
12.6 p 
10.3 p 
55.2 ps 
92.4 p 
22.8 p 
0.4 p 
22.7 p 
37.2 p 
: 

2020 
89.5 w 
: 
10.4 w 

: 

: 

: 

: 

: 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2) 3) 

82.7 sw 

81.4 sw 

80.5 sw 

80.2 sw 

81.2 sw 

1 383 sw 
1 994 w 

2 276 sw 
3 388 w 

2 520 sw 
3 687 w 

2 881 sw 
4 187 w 

3 263 sw 
4 511 w 

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) 
Total value added (in the non-financial business economy) (EUR million) 

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) 

2) 3) 
2) 3) 

Note 

Note 

Note 

Note 

2009 
: 
: 

2009 
: 
: 
: 
: 
: 
: 
: 
: 
688.7 w 
28.2 w 
: 
716.9 w 
: 
: 
9.1 sw 

2009 
-  7.1 w 
55.7 w 
26.1 w 
33.2 w 

2009 
41.5 sw 
164.4 w 
2 154.4 w 
4 378.2 w 
6 599.0 w 

2016 
1.5 w 
: 

2016 
-  811.5 
- 2 602.5 
796.5 
174.0 
820.4 
47.8 
: 
: 
935.4 s 
58.0 
9.9 w 
994.4 w 
163.0 w 
-  44.3 w 
5.7 s 

2016 
-  1.8 w 
68.7 w 
27.6 w 
29.5 w 

2016 
73.5 s 
253.5 w 
3 170.1 w 
5 365.1 w 
9 198.2 w 

2017 
3.2 w 
: 

2017 
-  870.6 
- 2 823.1 
1 086.8 
18.3 
847.5 
69.6 
-  7.9 
: 
992.4 s 
23.4 
14.6 w 
1 017.0 w 
404.7 w 
-  47.1 w 
5.5 s 

2017 
-  2.0 w 
66.9 w 
27.8 w 
29.8 w 

2017 
68.8 s 
217.6 w 
3 440.8 w 
5 508.2 w 
9 444.2 w 

2018 
1.8 w 
: 

2018 
-  865.7 
- 2 869.7 
1 110.3 
-  13.6 
907.2 
67.1 
-  7.3 
: 
1 023.6 s 
69.1 
32.4 w 
1 092.1 w 
248.0 w 
-  49.4 w 
5.2 s 

2018 
-  1.6 w 
64.9 w 
27.5 w 
29.1 w 

2018 
65.1 s 
205.8 w 
3 752.1 w 
5 732.2 w 
9 906.4 w 

: 

: 
: 

2020 
2.2 w 
: 

2020 
- 1 153.3 
- 2 982.1 
1 056.2 
-  227.6 
997.1 
58.2 
-  7.8 
: 
893.6 w 
76.6 w 
28.6 w 
970.2 w 
535.6 w 
-  55.0 w 
5.1 ps 

2020 
-  6.8 w 
72.7 w 
26.3 w 
33.2 w 

2019 
1.7 w 
: 

2019 
- 1 089.2 
- 3 144.1 
1 263.8 
-  180.3 
971.3 
67.1 
-  7.4 
: 
1 037.1 s 
114.2 
39.1 
1 150.5 w 
649.4 
-  50.1 w 
5.1 s 

2019 
-  1.9 w 
63.3 w 
27.2 w 
29.1 w 

2019 
59.9 s 
191.3 w 
4 259.5 w 
6 160.4 w 
10 717.6 w 

2020 
64.3 ps 
283.8 w 
5 149.2 w 
6 967.3 w 
11 771.8 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (%) 
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 (2015 = 100) 
**3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries 
(2015 = 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 (%) 

5) 
6) 
7) 

Note 

Note 

3 192.2 w 
: 
: 
: 
5.51 w 
12.46 w 
6.78 w 
132.060 
: 
: 

4 046.4 w 
: 
: 
: 
1.49 w 
5.89 w 
0.80 w 
137.360 
: 
: 

4 086.0 w 
: 
: 
: 
1.34 w 
5.98 w 
0.75 w 
134.150 
: 
: 

4 223.7 w 
: 
: 
: 
1.24 w 
5.66 w 
0.73 w 
127.590 
: 
: 

4 514.3 w 
: 
: 
: 
1.10 w 
6.27 w 
0.49 w 
123.010 
: 
: 

4 760.5 w 
: 
: 
: 
0.73 w 
6.10 w 
0.40 w 
123.770 
: 
: 

1 646.2 w 

2 945.0 w 

2 995.9 w 

3 399.0 w 

3 359.6 w 

3 942.4 w 

2009 
3 259 
780 
- 2 479 
102.3 sw 
79.2 s 
64.0 s 

2009 
4.7 

10.3 
: 
: 

2016 
4 169 
1 771 
- 2 399 
96.9 sw 
77.7 s 
62.4 s 

2016 
3.6 

8.7 
77.1 
80.1 

2017 
4 648 
2 026 
- 2 622 
99.8 sw 
77.0 s 
60.8 s 

2017 
3.0 

8.0 
77.1 
80.1 

2018 
5 026 
2 431 
- 2 596 
103.6 sw 
75.9 s 
60.0 s 

2018 
2.5 

8.9 
77.4 
80.5 

2019 
5 269 
2 426 
- 2 843 
99.2 sw 
76.4 s 
57.7 s 

2019 
2.3 

10.3 
77.6 
80.7 

2020 
4 860 
2 190 
- 2 670 
104.1 sw 
74.7 s 
57.9 s 

2020 
0.2 

10.0 
75.2 
79.6 

Note 

2009 
69.6 ew 

2016 
73.3 ew 

2017 
73.9 w 

2018 
74.8 ew 

2019 
75.9 ew 

2020 
75.3 ew 

60.4 ew 

62.1 ew 

63.9 w 

65.6 ew 

67.1 ew 

66.3 ew 

73.2 ew 
48.9 ew 
48.9 ew 

69.4 ew 
55.0 ew 
54.8 ew 

72.1 w 
55.6 w 
55.5 ew 

73.9 ew 
57.4 ew 
58.2 ew 

74.7 ew 
59.7 ew 
60.4 ew 

74.0 ew 
58.8 ew 
60.3 ew 

: 
: 

40.2 ew 
12.8 ew 

38.2 ew 
12.5 ew 

37.4 ew 
12.7 ew 

36.4 ew 
13.1 ew 

36.1 ew 
13.4 ew 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (%) 
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) (%) 

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) (2016 = 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 (%) 

: 
: 
: 

: 

6.5 ew 
40.5 ew 
15.6 ew 

6.9 ew 
42.4 ew 
16.4 ew 

7.0 ew 
42.9 ew 
15.9 ew 

7.0 ew 
43.5 ew 
15.3 ew 

7.0 ew 
43.5 ew 
15.5 ew 

84.4 ew 

83.6 ew 

84.1 ew 

84.7 ew 

84.5 ew 

13.8 ew 
12.2 ew 
15.9 ew 
27.2 ew 
9.1 ew 

15.2 ew 
15.9 ew 
14.4 ew 
36.5 ew 
10.1 ew 

13.7 ew 
14.6 ew 
12.6 ew 
31.9 ew 
8.9 ew 

12.3 ew 
12.7 ew 
11.9 ew 
28.3 ew 
8.3 ew 

11.5 ew 
11.6 ew 
11.4 ew 
27.2 ew 
7.3 ew 

11.8 ew 
11.6 ew 
12.0 ew 
26.5 ew 
7.0 ew 

10.3 ew 

11.8 ew 

11.2 ew 

9.2 ew 

8.6 ew 

9.6 ew 

: 

13.3 ew 

11.7 ew 

11.5 ew 

9.7 ew 

10.0 ew 

Note 
8) 9) 
9) 

2009 
40 874 ew 
: 

2016 
47 522 ew 
100 ew 

2017 
48 967 ew 
101 ew 

2018 
50 589 ew 
102 ew 

2019 
52 380 ew 
105 ew 

2020 
53 662 ew 
105 ew 

: 
: 
35.5 ew 

: 
: 
19.6 ew 

37 
33.4 
19.6 w 

35 
32.4 
17.4 w 

34 
28.6 
16.3 w 

33 
26.0 
15.6 w 

Note 

10) 

10) 
10) 

Note 

Note 

2009 
95.8 sw 
1 444.0 ew 

2016 
152.0 
1 836.2 w 

2017 
147.0 
1 934.4 w 

2018 
161.0 
1 445.6 w 

2019 
176.0 
1 183.8 w 

2020 
191.0 
1 176.2 w 

: 
: 

2009 
13.9 sw 

: 

2009 
3.3 sw 
: 

: 
9 w 

2016 
11.6 sw 

: 

2016 
3.1 sw 
: 

: 
11 w 

2017 
11.6 sw 

: 

2017 
3.1 sw 
: 

: 
13 w 

2018 
11.6 sw 

: 

2018 
3.2 psw 
: 

62.7 w 
15 w 

2019 
5.9 sw 

: 

2019 
3.3 psw 
: 

70.4 w 
17 w 

2020 
7.8 sw 

22 

2020 
3.3 sw 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 2015 constant 
prices) 
Electricity generated from renewable sources relative to gross electricity consumption (%) 
Road share of inland freight transport (based on tonne-km) (%) 

Energy 
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) 

Source: Eurostat and the statistical authorities in Albania 

: = not available 
  d =  definition differs 
  e = estimated value 
  p = provisional 

s = Eurostat estimate 

Note 

Note 

Note 

: 

: 

2009 
90.0 w 
239.7 

70.7 
: 

2009 
1 251 
577 
2 
7 
1 007 s 
2 171 
5 202 

2009 
: 
1 200.9 
: 
: 
: 
: 
629.9 
: 
: 

: 

: 

2016 
: 
217.4 

82.1 
: 

2016 
1 961 
1 056 
2 
35 
464 s 
2 271 
7 782 

: 

: 

2017 
: 
219.2 

91.0 
: 

2017 
1 642 
959 
76 
37 
920 s 
2 375 
4 526 

: 

: 

: 

84.0 

85.0 

87.0 

2018 
: 
209.4 

92.5 
: 

2018 
2 015 
911 
161 
32 
503 s 
2 366 
8 553 

2019 
: 
204.2 

93.0 
: 

2019 
1 736 
1 005 
52 
58 
753 s 
2 355 
5 206 

2020 
: 
196.3 

100.0 
: 

2020 
1 494 
758 
69 
41 
793 s 
2 183 
5 313 

2016 
: 
1 181.7 
497.0 p 
183.6 p 
2 912.7 ps 
: 
698.4 
29.6 
1 129.0 w 

2017 
: 
1 174.1 
475.2 
180.1 
2 858.6 s 
: 
: 
0.0 
1 157.1 w 

2018 
: 
1 174.0 
467.3 
184.1 
2 781.0 s 
: 
678.2 
27.5 
1 166.3 w 

2019 
: 
1 174.1 
415.6 
183.9 
2 621.2 s 
: 
666.1 
30.7 
1 258.0 w 

2020 
: 
1 165.7 
362.6 
158.4 
2 332.2 s 
: 
684.0 
27.0 
: 

  w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and without any assurance as regards their quality 

and adherence to EU statistical methodology 
* = Europe 2020 indicator 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
** = Macroeconomic Imbalance Procedure (MIP) indicator 

  Footnotes: 
1)  Activity  B_D 
2)  Based on NACE Rev. 1.1. Coverage is Divisions 10 to 74. 
3)  Based on NACE Rev. 2. Coverage is Divisions 05 to 82 and 95. 
4)  A Directive made some farmers part of the SBR. Reform by the Albania Government to reduce the informal economy as well as the registration of farmers resulted in the 

SBR keeping just enterprises registered within the year and not newly created enterprises. As a result the birth rate can not be calculated from these data. 

5)  Annual average of the Tribor rate – interbank rate for overnight loans. 

6)  Average weighted rate applied to new 12-month loans over the respective month, on 12-month maturity. 

7)  Deposit interest rate represents the average weighted rate for newly accepted deposits over the respective month, on 12-month maturity. 
8)  Public sector only. 
9)  Source of information: General Directorate of Taxation, social insurance contributors; INSTAT's calculation 

10)  The data are updated with the average population data for 2020.