COMMISSION STAFF WORKING DOCUMENT Albania 2023 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 2023 Communication on EU Enlargement policy
Date: 2023-11-08
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Albania, accession criteria, accession negotiations, pre-accession strategy, regional cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 8.11.2023  SWD(2023) 690 final  COMMISSION STAFF WORKING DOCUMENT Albania 2023 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 2023 Communication on EU Enlargement policy                     {COM(2023) 690 final} - {SWD(2023) 691 final} - {SWD(2023) 692 final} - {SWD(2023) 693 final} - {SWD(2023) 694 final} - {SWD(2023) 695 final} - {SWD(2023) 696 final} - {SWD(2023) 697 final} - {SWD(2023) 698 final} - {SWD(2023) 699 final}  
 
 
TABLE OF CONTENTS 

1.  

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

1.1.  
1.2. 
1.3.  

CONTEXT ......................................................................................................................................................... 3 
SUMMARY OF THE REPORT .................................................................................................................................. 3 
 STATE OF PLAY OF THE ACCESSION NEGOTIATIONS ................................................................................................... 7 

2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ....................................................................7 

2.2.1. 
2.2.2. 

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM ........................................................... 7 
2.1.1 Democracy ................................................................................................................................................... 7 
2.1.2. Public administration reform .................................................................................................................... 13 
2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS .................................................................................................................. 18 
Chapter 23: Judiciary and fundamental rights .................................................................................. 18 
Chapter 24: Justice, freedom and security ......................................................................................... 40 
2.3. ECONOMIC CRITERIA .............................................................................................................................................. 56 
2.3.1. The existence of a functioning market economy ...................................................................................... 56 
2.3.2. The capacity to cope with competitive pressure and market forces within the Union ............................. 64 
2.4 PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL ......................................................................................... 67 
Chapter 5: Public procurement ........................................................................................................................... 67 
Chapter 18: Statistics .......................................................................................................................................... 70 
Chapter 32: Financial control .............................................................................................................................. 72 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION .............................................................. 75 

4. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP ........................................................................... 77 

CLUSTER 2: INTERNAL MARKET ....................................................................................................................................... 77 
Chapter 1: Free movement of goods ................................................................................................................... 78 
Chapter 2: Freedom of movement of workers .................................................................................................... 80 
Chapter 3: Right of establishment and freedom to provide services .................................................................. 81 
Chapter 4: Free movement of capital.................................................................................................................. 82 
Chapter 6: Company law ..................................................................................................................................... 84 
Chapter 7: Intellectual property law ................................................................................................................... 85 
Chapter 8: Competition policy ............................................................................................................................. 86 
Chapter 9: Financial services ............................................................................................................................... 87 
Chapter 28: Consumer and health protection ..................................................................................................... 90 
CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH ...................................................................................................... 93 
Chapter 10: Digital transformation and media ................................................................................................... 93 
Chapter 16: Taxation........................................................................................................................................... 95 
Chapter 17: Economic and monetary policy ....................................................................................................... 97 
Chapter 19: Social policy and employment ......................................................................................................... 99 
Chapter 20: Enterprise and industrial policy ..................................................................................................... 102 
Chapter 25: Science and research ..................................................................................................................... 105 
Chapter 26: Education and culture ................................................................................................................... 106 
Chapter 29: Customs union ............................................................................................................................... 108 
CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY ...................................................................................... 110 
Chapter 14: Transport ....................................................................................................................................... 110 
Chapter 15: Energy............................................................................................................................................ 112 
Chapter 21: Trans-European networks ............................................................................................................. 116 
Chapter 27: Environment and climate change .................................................................................................. 118 
CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION ...................................................................................................... 123 
Chapter 11: Agriculture and rural development ............................................................................................... 123 
Chapter 12: Food safety, veterinary and phytosanitary policy ......................................................................... 124 

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Chapter 13: Fisheries and aquaculture ............................................................................................................. 126 
Chapter 22: Regional policy and coordination of structural instruments ......................................................... 127 
Chapter 33: Financial and budgetary provisions ............................................................................................... 129 
CLUSTER 6: EXTERNAL RELATIONS.................................................................................................................................. 131 
Chapter 30: External relations .......................................................................................................................... 131 
Chapter 31: Foreign, security and defence policy ............................................................................................. 132 
ANNEX I – RELATIONS BETWEEN THE EU AND ALBANIA ..................................................................................................... 135 

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1.  

INTRODUCTION 

1.1.   CONTEXT 

The first Inter-Governmental Conference on accession negotiations with Albania took place 
on  19  July  2022.  The  first  step  in  the  accession  negotiations  process,  the  analytical 
examination  of  the  EU  acquis  or  the  ‘screening’,  was  launched  on  the  same  date  and  has 
progressed smoothly. Albania has continued to implement the Stabilisation and Association 
Agreement  and  the  meetings  of  the  joint  bodies  under  the  agreement  have  taken  place  at 
regular intervals.  

The  EU  accession  negotiation  process  with  Albania  is  conducted  in  line  with  the  revised 
enlargement methodology, and the requirements set out in the Negotiating Framework, which 
put an even stronger focus on the fundamentals of the accession process.  

The  Albanian  authorities’  political  commitment  to  the  strategic  goal  of  EU  integration  and 
their ambition to move forward in the accession negotiations based on continuing progress on 
reforms  have  been  consistently  stated  as  the  country’s  key  priority.  This  commitment  has 
been maintained despite the challenge of addressing the economic and social consequences of 
the  triple  shock  of  the  2019  earthquake,  the  COVID-19  pandemic  and  Russia’s  war  of 
aggression  against  Ukraine.  The  ongoing  accession  negotiation  process  now  needs  to 
translate into an acceleration of EU-related reforms.  

Albania  has  maintained  its  record  of  full  alignment  with  the  EU’s  common  foreign  and 
security policy during the reporting period. 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  Russia’s  war  of  aggression  against  Ukraine,  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  from  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. 
SUMMARY OF THE REPORT1  

1.2. 

As  regards  political  criteria,  regular  local  elections  on  14  May  2023  were  conducted  in  a  
generally calm manner. Observers assessed them as well-administered, competitive and with 
the  participation  of  key  political  actors.  Concerns  relate  to  the  misuse  of  state  resources, 
claims of pressure on public sector workers and voters, and allegations of vote buying. A low 
turnout of only 38.2% was registered. The political scene continued to be marked by political 
polarisation, against the background of persistent deep divisions within the largest opposition 
party.  Parliamentary  oversight  of  the  executive  remained  limited.  In  March  2023, 
amendments  were  adopted  with  a  large  majority  that  strengthen  the  consultative  role  of 
Parliament  in  the  accession  negotiations  process.  Delays  and  politicisation  of  the 
appointments  of  the  Ombudsperson  and  of  the  new  Anti-Discrimination  Commissioner 
weaken these independent institutions. Under the coordination of the chief negotiator and the 
newly  reformed  EU  negotiation  structures,  Albanian  institutions  have  mobilised  significant 

1  This  report  covers  the  period  from  June  2022  to  June  2023.  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  scale  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, interim steps have also been used. 

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resources to engage actively in the screening process and to prepare for the next steps of the 
accession negotiations. While putting  EU-related reforms  at  the centre of its legislative and 
policy planning, the government needs to refrain from measures that are not in line with EU 
standards. The government also needs to engage in stronger public communication on the EU 
accession process. While civil society is generally free, shortcomings negatively impact the 
ability  of  civil  society  organisations  to  contribute  to  policy  processes.  The  role  of  civil 
society, including in the EU accession negotiation process, needs to be strengthened. 

Albania  remains  moderately  prepared  in  the  area  of  public  administration.  The  new 
strategies on public administration reform and public financial management reform have yet 
to be prepared and adopted. The reorganisation of roles and responsibilities within the Office 
of  the  Prime  Minister  is  still  ongoing.  Provisions  on  merit-based  recruitment  in  the  Civil 
Service Law are not consistently applied, especially at senior management level. Significant 
efforts  were  made  on  the  digitisation  of  public  services,  but  it  remains  crucial  to  ensure 
equitable  access  to  services  for  citizens  with  limited  digital  skills  or  limited  access  to  IT 
equipment. Increased attention is also required on digital security and protection of personal 
data, especially following the cyberattacks in 2022 and a number of data leaks. 

Albania  has  a  moderate  level  of  preparation  on  the  functioning  of  the  judiciary.  The 
implementation  of  the  justice  reform  continued,  resulting  in  good  progress  overall.  The 
appointments  to  the  Constitutional  Court  have  been  completed  with  all  nine  judges  now  in 
office,  of  whom  eight  with  full  nine-year  mandate.  The  Specialised  Structure  against 
Corruption and Organised Crime (SPAK) achieved further results, and a new Chief Special 
Prosecutor was elected in December 2022 after a sound process. The efficiency of the judicial 
system  and access  to  justice continued to  be affected by the long  timescale of proceedings, 
increased workload and high backlog of cases, which remains particularly high in appeal and 
first  instance  courts.  Progress  was  made  in  addressing  judicial  vacancies  through  the 
swearing-in of 40 new magistrates in October 2023. The temporary evaluation of all judges 
and prosecutors (the vetting process) has continued to advance at a satisfactory pace. By 6 
October,  57%  of  the  vetting  dossiers  processed  had  resulted  in  dismissals,  resignations  or 
termination of mandate. In June 2023, the Special Court of First Instance against Corruption 
and Organised Crime sentenced the former Head of the Constitutional Court to 6 months in 
prison for false declaration and concealment during the vetting process. Albania must ensure 
that  criminal  procedures  are  systematically  initiated  against  judges  and  prosecutors  whose 
vetting  process  revealed  criminal  elements.  The  case  management  system  and  the  judicial 
training system  need improvement to  further increase efficiency and professionalism  across 
the  sector.  Positive  actions  have  been  taken  towards  increasing  the  relevance  of  the 
continuous training programme in the reporting period. Some progress was made on the case 
management  system,  particularly  with  the  establishment  of  the  interoperability  working 
group and the adoption of the interoperability framework setting the basis for the roll-out of 
the system. 

Albania  has  some  level  of  preparation  in  the  fight  against  corruption.  Despite  some 
progress and continued efforts in  fighting corruption, it remains an area of serious concern. 
SPAK bodies have conducted investigations in a number of high-level cases, ordering several 
arrests  and  convictions  in  a  number  of  high  level  cases.  Overall,  corruption  is  prevalent  in 
many  areas  of  public  and  business  life  and  preventive  measures  continue  to  have  a  limited 
impact,  particularly  in  vulnerable  sectors.  Increasing  the  number  of  final  convictions  at  a 
high-level  remains  an  important  priority  to  further  tackle  the  culture  of  impunity.  Further 
efforts  are  needed  to  ensure  due  judicial  follow-up  in  vetting  cases  where  there  are 
indications  of  criminal  offences.  The  institutional  capacity  of  the  Anti-Corruption 

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Directorate-General  in  the  Ministry  of  Justice  needs  to  be  further  strengthened  and  the 
composition  of  the  Ethics  Commission  needs  to  be  revised.  The  sectors  most  vulnerable  to 
corruption require targeted risk assessments and dedicated actions. 

Albania has some level of preparation in the fight against organised crime, with a continued 
good level of cooperation with EU Members States and EU agencies. More efforts need to be 
made in the fight against illicit drugs, including through an increase in the capacities of the 
law  enforcement  authorities.  Following  the  adoption  of  a  law  on  cannabis  production  for 
medical  and  industrial  purposes,  Albania  needs  to  ensure  that  mechanisms  are  in  place  to 
effectively  prevent  cannabis  from  being  diverted  to  unintended  use.  Progress  that  has 
achieved with the seizure and confiscation of assets linked to organised crime must continue. 
Efforts  also  need to  continue to  ensure an increase in  the number of prosecutions and final 
convictions,  especially  in  high-level  cases,  and  to  establish  the  asset  recovery  office. 
Countering  cybercrime,  money  laundering  and  preventing  and  combatting  trafficking  in 
human beings remain areas in which additional results are needed. All forms of child sexual 
the 
abuse  online  should  be  criminalised  and  prosecuted.  Progress  was  made  on 
implementation of the Moneyval recommendations, and of the Financial Action Task Force 
(FATF)  Action  Plan.  Albania  remained  on  the  FATF  list  of  jurisdictions  under  increased 
monitoring  due  to  its  draft  Voluntary  Tax  Compliance  (VTC)  law  (including  a  criminal 
amnesty).  Following  the  draft  law's  withdrawal,  in  June  2023  FATF  decided  to  propose  an 
on-site  visit,  which  took  place  in  August  and  led  to  Albania's  delisting  in  October  2023. 
Nevertheless,  Albania  should  ensure  that  any  future  VTC  law  (including  potential  criminal 
amnesties)  complies  with  the  EU  acquis  and  international  standards.  The  track  record  on 
money-laundering  and  high-level  corruption  cases  remains  insufficient,  and  financial 
investigations need to be further developed.   

On fundamental rights, efforts at implementation of the legal and policy framework need to 
be  intensified.  Progress  was  made  on  the  use  of  alternatives  to  detention.  There  was  some 
progress  on  the  rights  of  persons  with  disabilities,  as  concerns  biopsychosocial  assessment. 
The process of first registration of property and other transitional processes need to advance 
in  full  transparency,  including  by  tackling  corruption.  On  the  protection  of  national 
minorities,  the  adoption  of  the  remaining  implementing  legislation  did  not  advance. 
Furthermore, Albania needs to put in place strong legal and institutional safeguards to prevent 
further breaches of personal data. 

Albania  is  in  between  some  and  moderate  level  of  preparation  in  the  area  of  freedom  of 
expression. Limited progress was made. The intersection of business and political interests, 
the  lack  of  transparency  of  sources  of  finance,  the  concentration  of  media  ownership, 
intimidation  and  precarious  working  conditions  continued  to  hamper  media  independence, 
pluralism and the quality of journalism. The atmosphere of verbal and physical attacks, smear 
campaigns and intimidation lawsuits against journalists has not improved. 

The  application  of  gender-responsive  budgeting  continued  to  improve.  Since  January  2022, 
the Albanian government has implemented a range of measures aimed at supporting families, 
women and girls, and vulnerable groups, as a response to the crisis caused by the COVID-19 
pandemic  and  Russia’s  war  of  aggression  against  Ukraine.    The  economic  assistance  to 
victims of domestic violence has been increased significantly. The implementation of the law 
on gender equality and of the national strategy for gender needs to be further intensified. 

The legal framework on migration is largely aligned with the EU acquis but needs updating 
in line with developments on the EU side. Albania has contributed to the management of the 
mixed migration flows towards the EU by cooperating to implement the EU Action Plan on 
the  Western  Balkans.  It  concluded  a  revised  Frontex  Status  Agreement  in  September.  In 
5 

 
 
2022,  there  was  a  34%  reduction  in  the  number  of  irregular  migrants  entering  Albania 
compared with 2021. No progress was made in referrals and access to asylum procedures and 
shortcomings in the return procedures remain. Albania should take concrete steps to address 
the needs of unaccompanied minors and align its visa policy with that of the EU. Although 
the number of asylum applications lodged by Albanian nationals in EU Member States  and 
Schengen-associated countries remains lower than the pre-pandemic level, it increased again 
in 2022. Continuous and sustained efforts are still needed to address this phenomenon.  

On the economic criteria, Albania has between a moderately and good level of preparation on 
developing  a  functioning  market  economy  and  made  some  progress  in  addressing  last 
year’s recommendations. The economy showed resilience and GDP growth remained strong 
in  2022,  despite  the  economic  fallout  from  Russia’s  war  of  aggression  against  Ukraine. 
Albania  is  at  level  of  preparation  to  cope  with  competitive  pressure  and  market  forces 
within the EU and made some progress on structural reforms in the energy market, transport 
infrastructure, the digitalisation of the economy and education outcomes, though significant 
gaps with regional and European levels remain. 

On  public  procurement,  Albania  is  moderately  prepared  and  has  made  some  progress,  in 
particular  through  an  increased  use  of  the  most  economically  advantageous  tender  award 
criteria.  On  statistics,  Albania  is  moderately  prepared,  and  made  some  progress  in  further 
aligning  with  standards  of  the  European  System  of  National  and  Regional  Accounts  (ESA 
2010) and in steps to strengthen the role of the Institute of Statistics. Albania is moderately 
prepared in the area of financial control where some progress was made, in particular with 
the  updates  to  the  legal  framework  on  internal  control  and  internal  audit  and  the 
implementation  of  the  policy  document  on  the  strengthening  of  public  internal  financial 
control, and continued to target internal audits on arrears. 

Albania is moderately prepared in most areas of the internal market, namely free movement 
of goods, services and capital, financial services, and competition policy. The same applies to 
company law and intellectual property law. Some progress was made on intellectual property 
rights  and  on  free  movement  of  family  members  of  EU  citizens  as  well  as  on  financial 
services.  However,  no  progress  was  made  on  competition  policy,  where  the  State  aid 
Commission  still  lacks  operational  independence.  Preparations  are  at  an  early  stage  on 
consumer  and  health  protection,  where  the  country  made  limited  progress.  Some  progress 
was  also  made  on  free  movement  of  capital,  which  led  to  the  country’s  removal    from  the 
FATF list of jurisdictions under increased monitoring. 

linked 

in  many  areas 

level  of  preparation 

Albania  has  achieved  a  moderate 
to 
competitiveness  and  inclusive  growth,  namely  taxation,  enterprise  and  industrial  policy, 
social policy and employment, education and culture and the customs union. The same holds 
true  for  the  digital  transformation  and  media,  where  the  country  made  good  progress, 
including by joining the Digital Europe programme in June 2023. Albania has some level of 
preparation  in  the  fields  of  science  and  research.  The  country  reached  a  moderate  to  good 
level of preparation in economic and monetary policy, as the governance and monetary policy 
of  the  Bank  of  Albania  were  appropriate  and  effective  in  dealing  with  the  crisis  caused  by 
Russia’s  war  of  aggression  against  Ukraine;  more  efforts  are  required  regarding  its 
independence.  With  limited  progress  made  on  the  customs  union,  more  efforts  are  also 
required  in  pursuing  the  fight  against  smuggling,  corruption  and  imports  of  counterfeit 
products.  

As  regards  the  green  agenda  and  sustainable  connectivity.  Albania  has  some  level  of 
preparation  in  the  areas  of  transport,  trans-European  networks,  environment  and  climate 
change, and it has a moderate to good level on energy. Progress is noted on the reform of the 
6 

 
 
day-ahead and intra-day electricity markets, on renewable energy auctions and in developing 
transport and regional energy networks. Further efforts are needed on renewable energy and 
on  energy  efficiency.  Albania  ratified  its  participation  in  the  Union  Civil  Protection 
Mechanism and is active in it. On the environment and climate, further efforts are needed on 
water  and  waste  management,  environmental  law  enforcement  and  nature  protection.  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.  Albania  needs  to  address  strategic  investment  planning,  and  the 
implementation and monitoring capacity of infrastructure projects. 

Albania  has  some  level  of  preparation  in  most  areas  linked  to  resources,  agriculture  and 
regional  policy  and  cohesion,  namely  agriculture  and  rural  development,  veterinary  and 
phytosanitary  policy,  and  financial  and  budgetary  provisions.  There  is  a  moderate  level  of 
preparation  in  fisheries  and  aquaculture  as  well  as  on  regional  policy.  Some  progress  was 
observed  in  most  areas  covered,  notably  with  adoption  of  the  Law  on  wine  and  regarding 
instrument  for  pre-accession  assistance  for  rural 
administrative  capacities  for 
development  programme  (IPARD  III).  Further  efforts  are  needed  in  regional  policy 
particularly on administrative capacity and coordination between central, local and municipal 
levels and on financial and budgetary provisions. 

the 

Albania has a good level of preparation as regards external relations, foreign security and 
defence. On external  relations, Albania made some progress,  further aligning  its legislation 
with  the  EU  acquis  on  preventing  trade  in  certain  goods  that  could  be  used  for  capital 
punishment  and  torture.  As  regards  the  EU  common  foreign  and  security  policy,  Albania 
maintained  full  alignment  with  all  relevant  EU  decisions  and  declarations  during  the 
reporting  period.  As  a  non-permanent  member  of  the  UN  Security  Council  since  January 
2022, Albania continues to be actively engaged in promoting and defending the rules-based 
international order as well as Women, Peace and Security.  

1.3.  

 STATE OF PLAY OF THE ACCESSION NEGOTIATIONS  

Following  the  Inter-Governmental  Conference on  accession  negotiations  with  Albania  that 
took  place  on  19  July  2022,  the  Commission  immediately  launched  the  screening  process, 
which is progressing smoothly. All sessions on Cluster 1 (Fundamentals), Cluster 2 (Internal 
Market), Cluster 3 (Competitiveness and Inclusive Growth) and Cluster 4 (Green Agenda and 
Sustainable  Connectivity)  have  taken  place.  Explanatory  sessions  on  Cluster  5  (Resources, 
Agriculture  and  Cohesion)  and  Cluster  6  (External  Relations)  have  been  completed  and 
bilateral sessions on these are ongoing. The remaining screening meetings are scheduled until 
November 2023. 

2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM  

2.1.1 Democracy 

The  reporting  period  was  marked  by  the  start  of  the  EU  accession  negotiations  process, 
including  the  beginning  of  the  screening.  The  political  scene  continued  to  be  marked  by 
political  polarisation,  against  the  background  of  persistent  deep  divisions  within  the  largest 
opposition  party.  This  has  continued  to  negatively  affect  the  Parliament’s  key  functions  of 
holding  the  executive  accountable  through  effective  scrutiny  and  of  serving  as  a  forum  for 
constructive political debate, as well as its responsibility to elect in a timely manner the heads 
of key independent institutions such as the Ombudsperson. 

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The  Parliament  nonetheless  succeeded  in  adopting,  with  a  large  cross-party  majority, 
legislative  amendments  to  strengthen  its  role  in  the  EU  integration  process.  This  was  a 
welcome development. On 14 May 2023, Albania held local elections with the participation 
of the country’s key political actors, in contrast to the largely boycotted 2019 elections.  

Elections 

Local elections were conducted in a generally calm manner, including on the day of the vote. 
According to the findings and conclusions of the election observation mission of the OSCE’s 
Office  for  Democratic  Institutions  and  Human  Rights  (OSCE/ODIHR),  the  local  elections 
were  well-administered,  competitive  and  held  with  the  participation  of  the  country’s  key 
political forces. There are concerns about the misuse of public resources at both national and 
local levels, claims of pressure on voters and public sector workers, and allegations of vote 
buying.  All  of  these  need  to  be  duly  investigated.  Despite  the  establishment  of  the  ad  hoc 
committee  on  electoral  reform  in  February  2022,  no  progress  was  made  neither  on  the 
the 
adoption  of  any 
OSCE/ODIHR and the Venice Commission. This requires constructive and inclusive political 
dialogue from all sides. 

the  outstanding  recommendations  of 

text  nor  in  addressing 

Albania  held  regular  local  elections  on  14  May  2023  in  all  of  its  municipalities.  Elections 
were  assessed  by  observers  as  well-administered,  competitive  and  with  the  participation  of 
key  political  forces,  as  also  noted  by  the  OSCE/ODIHR.  The  election  day  was  generally 
peaceful.  Vote  counting  was  assessed  to  be  mostly  positive,  though  inconsistencies  were 
noted. The Central Election Commission created a digital platform for the  disclosure of the 
political parties’ campaign financing. 

Some  40  electoral  subjects  registered,  fielding  a  total  of  144  mayoral  candidates,  of  which 
only 15 were women, and 23 763 municipal councillor candidates. Legal  provisions require 
that half of the candidates for municipal councils should be women, however this was fully 
respected in only 10% of municipalities. Electronic voting and counting was implemented in 
three  municipalities,  representing  401  out  of  5 212  polling  stations.  As  in  the  previous 
elections, voters were identified by biometric signature in all polling stations, with technical 
glitches  reported in  some 10% of these. These  elections registered a low turnout of 38.2%. 
The  participation  of  young  people  was  particularly  low:  among  122 545  first-time  voters, 
only  16 628 (13%) cast  a vote. A large  proportion of the electorate resides outside Albania 
and are unable to  vote from their place of residence, given that the  electoral  code does not 
provide for voting from outside the country in local elections. 

During the election campaign contestants could campaign freely, but issues of importance for 
local  communities  barely  featured  in  the  campaigns.  The  election  observation  mission 
deployed  by  the  OSCE/ODIHR  pointed  out  concerns  about  the  misuse  of  state  resources, 
claims  of  pressure  on  public  sector  workers  and  voters,  and  allegations  of  vote  buying. 
According to the findings of the election observation mission, a level playing field between 
candidates was not guaranteed due to a narrow and formalistic interpretation of the electoral 
code’s provisions.  

Although  diverse,  the  media  environment  is  characterised  by  systemic  problems,  including 
concentration  of  media  ownership  and  the  control  exerted  by  intertwined  business  and 
political interests, which impacts on media freedom. This environment, combined with rules 
on media coverage of elections, favours the main parties. On misuse of state resources, the 
OSCE/ODIHR  referred  to  the  government’s  decisions,  adopted  in  the  weeks  before  the 
elections, to provide a bonus to pensioners and to increase the salaries of various categories 
of  public  sector  employees,  and  to  the  fact  that  on  several  occasions  the  leadership  of  the 

8 

 
 
central  government  said  that  future  support  to  municipalities  would  depend  on  the  election 
results.  

On 15 June, the Electoral College ruled that the election of the mayor in the municipality of 
Rrogozhine should take place again,  following irregularities in one polling station set up in 
the town’s prison. By-elections were held in Kukes on 24 September, following the dismissal 
of the mayor.   

Parliament’s  ad  hoc  committee  on  electoral  reform,  set  up  in  February  2022,  has  not 
produced any results. The term of the committee was extended in September 2023.  Despite 
the  efforts  of  the  Central  Election  Commission  to  advance  the  implementation  of  out-of-
country  voting,  the  required  legislative  changes  are  still  pending.  In  December  2022,  the 
Constitutional  Court  ordered  Parliament  to  close  the  legal  gap  within  one  year.  Electoral 
reform, addressing OSCE/ODIHR and Venice Commission recommendations, should not be 
further delayed. 

Parliament 

Parliamentary  activity  continued  to  be  affected  by  political  polarisation,  against  the 
background  of  persistent  deep  divisions  within  the  largest  opposition  party.  Parliament 
nonetheless succeeded in adopting with a large cross-party majority legislative amendments 
to strengthen its role in the EU integration process, which was a welcome development. 

Parliamentary debates and proceedings continued to be negatively affected by harsh political 
rhetoric, personal attacks and disruptive behaviour in the plenary hall. Disputes between the 
majority  and  the  opposition,  in  particular  over  the  Prime  Minister’s  refusal  to  attend  most 
interpellations  requested  by  the  opposition,  caused  a  temporary  disruption  in  the  normal 
functioning  of  Parliament.  The  Ethics  Secretariat  imposed  several  disciplinary  measures, 
resulting in the unprecedented expulsion of 23 opposition MPs within a month. Higher ethical 
standards in Assembly proceedings are needed to foster a more constructive political dialogue 
between the opposition and the majority.  

During the reporting period, seven MPs were replaced, five from the Democratic Party and 
two  from  the  ruling  Socialists,  due  to  them  running  as  mayoral  candidates  in  the  local 
elections.  Reorganisation  of  Parliament’s  standing  committees  and  other  bodies  was  not 
carried out, because of the conflict within the opposition and attempts to control its caucus.  

Parliamentary  activity  was  suspended  during  the  electoral  campaign  for  the  2023  local 
elections. This suspension was not warranted by the law.  

Parliament’s  oversight  of  the  executive  remained  limited.  MPs  filed  three  requests  for 
interpellations  and  one  motion  with  debate  with  the  Prime  Minister.  The  Prime  Minister 
attended  one  in  person.  Other  interpellations  were  held  with  members  of  the  Council  of 
Ministers. Parliamentary oversight of the work of independent institutions remains limited to 
considering  their  annual  reports  and  to  a  digital  tool  to  monitor  the  follow-up  of  the 
recommendations of these institutions. 

During the reporting period, the opposition asked for two committees of inquiry to be set up, 
but  the  majority  rejected  both  requests,  in  spite  of  the  fact  that  the  opposition’s  right  to 
initiate such committees is guaranteed by the Constitution. The majority’s argument in both 
cases  was  that  a  revision  of  the  law  on  committees  of  inquiry  is  under  consideration.  The 
current law, however, remains in force.  

In  March  2023,  amendments  were  adopted  with  a  large  majority  to  the  2015  Law  on 
Parliament’s role in EU integration, strengthening the consultative role of Parliament in the 

9 

 
 
accession  negotiations  process.  During  the  reporting  period,  the  National  Council  of 
European  Integration  met  on  a  regular  basis  to  take  stock  of  Albania’s  EU  integration 
process. 

Parliamentary  proceedings  continued  to  be  live-streamed  on  social  media.  In  an  effort  to 
increase  transparency,  the  Parliament  created  a  new  website,  which  is  still  incomplete  and 
only  partly  accessible.  A  working  group  on  transparency  standards  was  set  up  in  2021  and 
consultations  have  taken  place  with  civil  society  and  the  media.  However,  these  standards 
under the principle of open government still need to be consulted upon, agreed, and adopted. 
Parliamentary  documentation,  such  as  legal  acts  and  minutes  of  plenary  sessions  and 
committee meetings, should be published in a more timely and user-friendly manner, clearly 
indicating  the  amendments  made  during  each  step  of  the  legislative  procedure.  Public 
consultation with civil society and interest groups remained formal. 

The Assembly faced considerable difficulties in fulfilling its duty to elect the Ombudsperson. 
A year after the post became vacant, Parliament made another call for candidates in March 
2023 and interview candidate in July. Parliament is still to elect a new Anti-Discrimination 
Commissioner.  Delays  and  the  politicisation  of  these  appointment  processes  weaken  these 
independent institutions. 

Governance  

the  first  Inter-Governmental  Conference 

Following 
the  EU  accession 
negotiations  with  Albania  in  July  2022,  the  government  has  renewed  its  overall  political 
commitment to the country’s EU path. Under the coordination of the chief negotiator and the 
newly  reformed  EU  negotiation  structures,  Albanian  institutions  have  mobilised  significant 
resources to engage actively in the screening process, which is proceeding smoothly, and to 
prepare for the next steps in the accession negotiations.  

that  opened 

The opening of accession negotiations needs to translate into an acceleration of specific EU-
related reforms.  While putting  EU-related reforms  at  the centre of its legislative and policy 
planning,  the  government  needs  to  refrain  from  measures  that  are  not  in  line  with  EU 
standards. The government also needs to engage in stronger public communication on the EU 
accession  process.  Following  the  first  Inter-Governmental  Conference  on  accession 
negotiations in July 2022, the government appointed a new Chief Negotiator, at Minister of 
State  level,  and  with  increased  resources.  The  resulting  administrative  reorganisation  took 
place during the reporting period. Under the new set up, the Chief Negotiator is responsible 
for the overall steer, strategic planning and coordination of EU-related matters, together with 
the  State  Agency  for  Strategic  Programming  and  Assistance  Coordination,  whose  Director-
General coordinates the National Instrument for Pre-Accession Assistance, and the Ministry 
for Europe and Foreign Affairs.  

Significant progress was made in ensuring coordination on EU integration and EU assistance 
between  State  Agency  for  Strategic  Programming  and  Assistance  Coordination  (SASPC,) 
line ministries, and the Central Finance and Contracts Unit and local government units. This 
now  needs  to  be  further  consolidated.  Improved  cooperation,  as  well  as  recruitment  and 
training  of  technical  stakeholders  in  the  responsible  national  bodies,  would  help  ensure  the 
successful  implementation  of  the  Instrument  for  Pre-Accession  Assistance  programmes, 
including  the  Western  Balkans  Investment  Framework,  Cross  Border  Cooperation  and 
IPARD. 

Under the coordination of the Chief Negotiator, Albanian institutions have participated in the 
screening process organised by the Commission, which is proceeding smoothly.  

10 

 
 
Building  on  the  experience  of  the  screening  process,  Albania  will  need  to  continue  to 
strengthen  its  EU  negotiating  structures  and  coordination  between  subordinated  bodies  and 
line  ministries,  while  further  developing  expertise  on  the  EU  acquis  across  the  public 
administration.  

In  early  2023,  the  government  adopted  the  new  national  plan  for  European  integration  for 
2023-2025, and the 2022-2030 national  strategy for development  and European integration, 
which defines the vision, priorities and sectoral strategic objectives for the upcoming period 
(see section 2.1.2. Public Administration Reform).  

In  September  2023,  a  government  reshuffle  took  place  leading  to  the  replacement  of  seven 
ministers. 

The  territorial  administrative  reform  remains  to  be  further  consolidated  as  part  of  the 
wider decentralisation agenda. The annual monitoring report for 2022 on the implementation 
of  the  decentralisation  and  local  governance  strategy  was  published  in  June  2023.  A 
systematic and timely monitoring of this process, and of the mechanisms to carry it out, needs 
to be ensured.  

The  new  2023-2030  cross-cutting  strategy  on  decentralisation  and  local  governance,  which 
aims  to  consolidate  the  decentralisation  process,  was  adopted  in  April  2023.  The  drafting 
process  was  based  on  a  series  of  consultations  that  included  61  municipalities,  central 
institutions,  local  government  associations,  civil  society,  the  private  sector,  academia, 
researchers and development partners, which helped to capture and address the priority needs.  

Parliament’s  ad  hoc  committee  on  the  country’s  territorial  and  administrative  divisions, 
which  met  between  February  and  October  2022,  did  not  lead  to  legislative  or  policy 
decisions, due to a lack of political agreement between the ruling majority and the opposition. 

Despite some efforts to address legal and institutional gaps, conflicting and overlapping legal 
provisions  and  policies  -  which  regulate  the  various  sectors  involving  the  exercise  of 
functions by the local government units (LGUs) - and the division of responsibilities between 
local,  regional  and  central  government  remain  areas  of  concern.  There  is  still  a  need  to 
streamline  the  legal  framework  on  the  functions  of  LGUs  and  further  consolidate  the 
implementation of new functions.  

Local government units still lack sufficient financial resources and administrative capacity to 
perform all their devolved responsibilities in a fully satisfactory manner and to exercise their 
greater policymaking powers effectively. The LGUs’ fiscal autonomy remains at risk, as most 
of their budget depends on national transfers. The delivery of quality public services at local 
level remains limited.  

Progress  has  been  made  to  reduce  the  she  salary  gap  between  the  central  and  local 
government levels. However, in order this effort must continue for small LGUs, in order  to 
attract and retain qualified staff, ensuring equalisation based on the principle of equal pay for 
equal positions.    

On  gender  equality,  18  municipalities  signed  the  European  Charter  for  Equality  of  Women 
and  Men  in  Local  Life  ,  and  5  municipalities  have  developed  and  approved  local  gender 
action  plans.  Despite  these  positive  developments,  efforts  are  required  to  systematically 
reflect  women’s  needs,  rights  and  entitlements  in  the  legal  and  policy  frameworks  at  local 
level.  Women  representation  in  local  governments  continues  facing  challenges  that  hinder 
their meaningful participation.  

On transparency, some improvement has been noted: for example, the Consultative  Council 

11 

 
 
has adopted an integrity index methodology and 21 LGUs have developed and approved local 
integrity plans. Further efforts are needed to expand integrity plans to all LGUs and to ensure 
that the existing integrity plans are fully implemented and adequately monitored. 

The  Consultative  Council  continues  to  operate  as  the  main  forum  for  institutional  dialogue 
and coordination between central and local governments. Further efforts are needed to engage 
LGUs and the associations of local government in the early phases of legislative initiatives, 
and  to  intensify  cooperation  and  coordination  between  local  and  central  government. 
Appropriate levels of representation needs to be ensured. 

The network of EU integration local coordinators has strengthened the LGUs’ involvement in 
the  EU  accession  process.  The  engagement  of  elected  bodies  of  local  governments  and 
municipal administration in the EU integration process needs to be strengthened, especially in 
the context of the EU accession negotiations.  

Civil society 

The role of civil society, including in the EU accession negotiation process, should be further 
strengthened.  The  structures  in  place  for  consulting  civil  society  need  to  be  reinforced  and 
become  fully  operational.  There  has  been  no  progress  in  implementing  the  roadmap  on  an 
enabling  environment  for  civil  society.  The  amendments  made  to  the  2014  VAT  Law  that 
allow for tax exemptions instead of tax refunds have not been implemented yet.  

An  empowered  civil  society  is  a  key  component  of  any  democratic  system  and  Albania’s 
legal and regulatory framework on the right to freedom of assembly and association is in line 
with  international  standards.  Preparations  began  in  2022  to  set  up  the  national  electronic 
register  of  non-profit  organisations,  in  line  with  the  2021  law.  It  is  envisaged  that  the 
electronic  register  will  be  operational  at  the  end  of  2023  (see  also  Chapter  24  on  FATF 
recommendations). In the meantime, civil society organisations (CSOs) continue to register at 
Tirana District Court 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,  which  remains  very  dependent  on  donor  support.  Additional 
efforts  and  resources  are  required  to  advance  its  implementation  and  to  improve  the 
roadmap’s reporting and monitoring mechanisms. The revision of the Law on voluntarism is 
still pending.  

The legal framework on public consultation is generally in line with European standards. The 
Parliament’s  platform  still  needs  to  achieve  full  operability  and  consultations    on  draft 
legislation  should  be  carried  out  regularly.  In  addition,  the  scope  of  the  Law  on  public 
consultation still needs to be extended to cover implementing legislation (see also the Section 
on public administration reform).  

The role of civil society in the EU accession negotiation process needs to be strengthened to 
ensure  the  meaningful  participation  and  consultation  of  CSOs  in  policy-making  processes. 
The structures in place to consult civil society at governmental level need to be strengthened 
and  become  fully  operational.  The  Partnership  Platform  on  European  Integration,  set  up  in 
2019, is partly operational. 

The ability of the National Council for Civil Society to voice the priorities of CSOs in policy-
making  processes  remains  weak.  An  update  of  the  Law  on  the  National  Council  is  still 
pending.  The  public  funding  of  the  Agency  for  the  Support  of  Civil  Society  remains 
insufficient to sustain CSOs’ activities, in particular in social services.  

Limited  progress  continued  in  the  field  of  VAT  refund,  with  implementation  of  the 

12 

 
 
instructions  on  VAT  reimbursement  for  CSO  beneficiaries  of  EU  funding  and  other  donor 
grants. However, the process remains lengthy and cumbersome. In 2022, amendments were 
made to the 2014 VAT Law to allow tax exemptions for CSOs, however implementation has 
not started yet. Albania still does not have tax incentives in place for individual donations and 
only marginal tax incentives for corporate donations. 

Better coordination and meaningful representation of interest groups should be ensured at all 
levels  as  the  landscape  remains  fragmented,  dependent  on  donors  and  concentrated  in  the 
main cities, although grassroots initiatives are active on some community-based issues.  

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.  

A  new  national  strategy  for  development  and  European  integration  for  2023-2030  was 
adopted  in  February  2023.  Preparations  for  the  new  strategies  on  public  administration 
reform (PAR) and public financial management (PFM) have started but they still have to be 
adopted. The new 2022-2026 digital agenda was adopted in June 2022. The new 2023-2030 
decentralisation  strategy  was  adopted  in  April  2023.  Implementation  of  the  ongoing  2015-
2022 PAR and 2014-2022 PFM strategies continued. The centre of government entities under 
the  Prime  Minister’s  Office  have  evolved,  but  the  new  structure  still  needs  to  settle  in.  A 
more  consistent  legislative  framework  with  clear  criteria  for  the  creation  of  subordinated 
entities  still  needs  to  be  created.  Provisions  on  merit-based  recruitment  in  the  civil  service 
law are not  consistently  implemented, especially  for senior level  positions. A salary reform 
was initiated in 2023 but the reform does not yet fully address the complexity of the salary 
structure or the limited role of performance. Progress on the implementation of the automated 
payroll  system  stalled.  Significant  efforts  were  made  on  digitisation  of  service  delivery 
through  the  e-Albania  platform.  This  was  accompanied  by  a  closure  of  front  office  contact 
centres  in  2022,  which  raised  concerns  over  access  to  services  to  vulnerable  and  digitally 
less-apt  citizens. A restitution  of some contact  centres is  under consideration,  together with 
other ongoing efforts to improve the user experience of the portal online. Further efforts are 
needed to ensure equitable access to services for people with limited digital skills or limited 
access  to  IT  equipment.  Increased  attention  is  required  to  digital  security  and  protection  of 
personal data. The Commission’s 2022 recommendations remain mostly valid. In the coming 
year, Albania should, in particular:  

→  put in place a legislative framework that properly regulates the typology and criteria for 

establishing subordinated bodies and clarifies lines of accountability;  

→  adopt  and  start  implementing  the  new  public  administration  and  public  financial 
management strategies, and review the effectiveness of the current monitoring structures; 

→  consistently  and  effectively  implement  the  provisions  on  merit-based  recruitment, 
promotion  and  dismissal  in  the  civil  service  law  at  all  levels,  especially  at  senior  level; 
continue the reform of the salary system for civil servants and re-initiate the automation 
of the payroll system. 

Strategic framework for public administration reform  

Good  governance  is  addressed  in  the  newly  adopted  national  strategy  for  development  and 
European  integration  for  2023-2030.  The  government  maintained  regular  monitoring  of  the 
implementation  of  the  2015-2022  PAR  strategy  and  the  2014-2022  PFM  strategy. 
Preparations  of  new  PAR  and  PFM  strategies  for  2023-2030  have  started.  The  new  2022-

13 

 
 
2026  digital  agenda    was  adopted  in  June  2022.  The  new  2023-2030  strategy  on 
decentralisation and local governance was adopted in April 2023.  

The Minister of State for Services and Standards was appointed as the overall coordinator for 
good  governance  in  June  2022,  ensuring  a  clear  political  mandate  for  the  coordination  of 
reforms.  This  post  was  abolished  in  the  September  2023  during  the  government  reshuffle. 
There  is  not  yet  clarity  on  the  new  structure  to  be  put  in  place.  An  Integrated  Policy 
Management  Group  (IPMG)  for  PAR  is  in  place,  but  not  very  active.  A  new  government 
decree from July 2023 should streamline the IPMG structure. Some of the technical groups 
under  it  are  more  actively  used  for  coordinationof  PAR  initiatives.  The  financial 
sustainability of reforms needs to be improved through better reviewing of overall financial 
resources  as,  currently,  the  implementation  of  reforms  depends  heavily  on  funding  from 
external donors. 

Policy development and coordination 

The legal basis and the institutional set-up for consistent policy making are partially in place. 
An extensive policy coordination structure exists through the Strategic Planning Committee 
(SPC),  chaired  by  the  Prime  Minister,  and  the  Integrated  Policy  Management  Group.  The 
SPC has met regularly and steered the policymaking process. The IPMG’s activity has varied 
between sectors and should be improved. The SPC and IPMG structures are now operating in 
cooperation  and  under  the  facilitation  work  of  the  Agency  for  Strategic  Programming  and 
Aid Coordination – SASPAC set up in mid-2021. 

A new national strategy for development and European integration was adopted in February 
2023, with some delay, and will now cover the period up to 2030. It serves as an overarching 
reference  document  for  the  integrated  planning  system.  In  addition,  the  new  2023-2025 
national plan on European integration was adopted in March 2023.  

An integrated planning system - including links to budgeting - is in place, but its application 
has  been  uneven.  The  use  of  the  developed  support  systems  on  planning  and  external  fund 
management has been very limited. The support system for budget planning has been more 
actively  used,  including  for  the  preparation  of  the  mid-term  budget  planning.  Consistency 
between policy planning and budgeting needs to be further improved by making full use of 
the systems that have been developed, including after a review of their functionality.  

SASPAC is now staffed and assumed its mandate to manage policy and project coordination 
between  the  Government  of  Albania  and  donors,  including  independent  fiscal  institutions. 
Further efforts are needed to strengthen the administrative capacity of line ministries and the 
Prime Minister’s Office and to increase the accountability of management (see Chapter 32 – 
Financial Control). The rulebook of the Prime Minister’s Office still needs to be adopted.  

Administrative  capacity  for  inclusive  and  evidence-based  policymaking  and  legislative 
development needs to be further strengthened. Progress was reported on increasing the use of 
regulatory  impact  assessments,  with  practical  training  for  the  entities  involved  but  further 
efforts  are  necessary  to  improve  their  quality.  On  public  consultation,  a  regulatory 
framework  is  in  place.  The  electronic  web  portal  is  operational  and  has  been  updated. 
However, the proportion of legal acts that undergo online public consultations remains very 
low. Implementing legislation is yet to be subjected to public consultations. In 2022, 48 acts 
were  subject  to  consultation,  out  of  a  total  of  866  adopted  acts.  The  quality  control  of 
consultations needs to be strengthened and proper follow-up ensured, and further efforts are 
needed to encourage stakeholders, in particular civil society, to participate.  

14 

 
 
Public scrutiny of government work needs to be further improved. Parliamentary oversight 
of the government’s performance, including subordinated agencies, needs to be strengthened. 
Regulatory  and  institutional  monitoring,  and  the  reporting  framework  for  government 
performance,  are  still  fragmented.  The  harmonisation  of  reporting  practices  would  be 
facilitated by using the  Integrated Planning System Information System. Communication to 
citizens about ongoing reform efforts needs to be improved. 

Public financial management  

The 2014-2022 PFM strategy expired in December 2022 and a new strategy is in preparation, 
with  adoption  expected  still  in  2023.  The  new  strategy  should  be  developed  through  an 
inclusive  process.  The  Ministry  of  Finance  and  Economy  (MoFE)  which  is  the  leading 
institution for the PFM reforms regularly reports on the implementation of the PFM strategy.  

The  Law  on  organic  budget  has  been  systematically  implemented  in  line  with  the  budget 
calendar  for  2022.  In  recent  years,  including  in  2022,  budget  revisions  have  been  made 
primarily  through  normative  acts,  often  lacking  transparency,  and  confirmed  ex  post  by 
Parliament. Uncertain economic conditions have justified this to some extent, but a return to 
more regular budget revision procedures seems appropriate. An independent oversight body 
with a mandate to assess the fiscal risks and monitor the compliance with the existing fiscal 
rules  remains  to  be  established.  The  quality  of  the  medium-term  budget  programme  has 
improved,  but  efforts  should  continue  to  consistently  improve  revenue  estimates  and 
strengthen  sector  ceilings  to  support  policy  implementation  by  the  line  ministries.  Initial 
efforts on gender-responsive budgeting should be maintained and expanded.  

Budget  transparency  remains  satisfactory  overall  with  the  publication  of  all  key  budget 
documents. However, further improvement in the quality and format of the documents is still 
needed including publishing of audit reports online in a timely manner.  

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 and across all levels.  

Greater  legal  compliance  is  needed  in  recruitment  procedures.  Recruitment  from  a  pool  of 
talent is the standard approach, and has well-established procedures, but it is not fully applied 
yet. The merit principle needs to be complied with for both senior and entry-level positions. 
The administration manages to  fill  most  vacant  posts, with  830 out  of 855 vacant  positions 
open for external recruitment filled in 2022. From January to September 2023, 303 positions 
were  filled  out  of  the  585  vacant  posts  announced.  Across  the  public  administration,  job 
descriptions are not yet fully in line with the categories set out in the civil service law. Of the 
830 recruited staff in 2022, 66% were women and 34% - men. Of the 303 recruited staff from 
January to September 2023, 66% were women and 34% - men.  

In 2022, there were 19 dismissals from the civil service, a significantly lower number than in 
previous  years  (346  in  2021,  619  in  2020)  and  the  authorities  have  declared  that  these 
dismissals were in compliance with the civil service law. The government reports that the rate 
of execution of final court decisions on dismissals and reinstatements improved from 79.5% 
in  2021  to  81.5%  in  2022.  The  long  time  it  takes  to  enforce  reinstatement  decisions  has  a 
significant cost for the government, so the focus should remain on improving reactiveness.   

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, it is not 
completely up-to-date and it still needs to be extended to the local level.  

15 

 
 
On salary reform, two new laws and the package of implementing legislation were adopted 
in  May  2023.  These  increased  salaries  for  holders  of  political  mandates,  influencing  also 
salaries in constitutional bodies. It also introduces a number of changes to the salary structure 
of  the  civil  service,  including  a  higher  weighing  of  seniority  and  a  broader  range  of  salary 
classes.  The  resulting  salary  increases  will  be  introduced  in  two  phases  in  2023  and  2024. 
Earlier  in  2022  and  2023,  a  number  of  other  decisions  had  been  taken  which  impacted 
salaries,  including  increase  of  public  sector  salaries  in  key  sectors  and  increase  of  the 
minimum salary. The comprehensive salary reform has not been finalised yet and the new 
measures do not address all outstanding issues. The salary system remains complex and not 
fully  transparent.  The  most  recent  reform  provides  some  newlimited  incentives  for  career 
progression  but  performance  incentives  are  not  yet  applied.  Reform  of  the  remuneration 
system  should  be  linked  to  the  process  of  harmonising  job  descriptions.  Automation  of  the 
payroll  calculation  stalled  in  2022,  ascribed  to  the  inability  of  the  IT  system  in  place  to 
perform this function and the complexity of the current remuneration system. Greater efforts 
are  required  to  make  it  possible  to  calculate  the  payroll  automatically  and  to  link  it  to  the 
treasury.  

The  Albanian  School  of  Public  Administration  (ASPA)  continued  to  adapt  its  training 
programmes  for  professional  development,  with  a  stronger  focus  on  EU  integration. 
Training was  provided to 5 397 people in  2022. Efforts  to  improve the physical  and digital 
infrastructure of ASPA are still needed. 

Accountability of the administration  

The  legal  framework  for  the  organisation  of  the  central  administration  does  not  provide  a 
comprehensive  and  consistent  foundation  for  the  establishment  and  accountability  of 
subordinated institutions and autonomous agencies. This has resulted in the ad hoc setting up 
of  some  new  agencies.  The  law  should  set  out  a  clear  typology  and  criteria  for  creating 
subordinated bodies and, as well as clarify responsibilities and reporting lines. Workflow and 
decision-making processes in the public administration should be more transparent. The legal 
framework for ensuring managerial accountability needs to be improved. 

The  citizens’  right  to  good  administration  needs  to  be  further  strengthened.  The  rate  of 
implementation of the Ombudsperson’s recommendations continues to hover in the 50-60% 
range. Of the 249 recommendation in 2022, 17% were fully and 36%, partially implemented, 
leading  to  a  combined  score  of  53%,  (50%  in  2021).  Of  the  30  recommendations  issues 
between January and April 2023, 17% were fully and 17% partially implemented, leading to 
a  combined  score  of  34%.  Parliament  should  strengthen  its  cooperation  with  the 
Ombudsperson  and  address  the  problem  of  the  lack  of  responsiveness  of  public 
administration bodies. 

On transparency and access to information, the Commissioner for the right to information 
reports that a high number of institutions (391) have published transparency programmes and 
an  increasing  number  of  government  entities  have  established  an  electronic  register  of 
information requests. The Commissioner received an increased number of complaints (992) 
about  the  administration’s  failure  to  provide  information,  often  resolved  after  his 
intervention. The revision of the Law on access to information should be completed to ensure 
managerial responsibility for non-compliance with its provisions. Albania ratified the Council 
of Europe Convention on Access to Official Documents in 2022. The Law on open data and 
interoperability, aiming at aligning national legislation with EU Directive 2019/1024 on open 
data and the reuse of public sector information, entered into force in April 2023.  

16 

 
 
A legislative framework is in place for the right to administrative justice. The capacity of 
the  administrative  court  system  and,  in  particular  the  appeal  courts,  to  deal  with  cases  is 
limited, which led to an increased backlog in 2022. 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  the  regular  monitoring  and  analysis  of  administrative  and  judicial 
practice  in  such  matters,  and  the  government  does  not  gather  data  on  payments  made  in 
public  liability  cases  and  the  reasons  for  them.  Nevertheless,  the  enforcement  of 
administrative  court  decisions  by  the  executive  remains  problematic,  with  a  low  level  of 
voluntary compliance, which results in the need to use bailiffs.  

In November 2021, Parliament adopted the Law on co-governance, giving substantial powers 
on  mediation  and  dealing  with  grievances  to  the  Agency  for  Dialogue  and  Co-governance. 
The structure of the organisation was accordingly adjusted by a government decision in 2022. 
The  agency  reports  directly  to  the  Prime  Minister.  It  can  conduct  inspections  on  public 
institutions,  based  on  citizens’  complaints,  and  apply  administrative  sanctions  or  propose 
disciplinary  measures  or  mediation.  Complaints  are  received  via  the  ‘Albania  we  want’ 
platform.  A  separate  platform  exists  to  denounce  corruption.  A  significant  number  of 
complaints are received and treated, but some concerns remain on whether the agency’s role 
may discourage the use of more formal and independent appeal and complaint channels. 

Service delivery to people and businesses  

The institutional and legal frameworks to ensure a user-oriented administration are in place. 
The  new  2022-2026  digital  agenda  was  adopted  in  June  2022.  Alignment  with  the  revised 
European Interoperability Framework is still pending. Alignment with new legislation, such 
as the Interoperable Europe Act, should be ensured. 

During  the  reporting  period,  the  government  continued  its  push  to  expand  online  service 
delivery, primarily through the e-Albania platform. The number of online services increased 
to 1 227, estimated to be around 95% of all public services. The government is planning to 
reorganise  the  portal  to  improve  its  user-friendliness.  The  number  of  registered  users  has 
increased  to  2.8  million  though  only  about  1.5  million  of  those  are  active  users.  On 
1 May 2022,  the  government  decided  at  short  notice  to  close  the  ‘front  desks’  (ADISA 
centres), delivering central government services, with a view to moving towards 100% online 
service  delivery.  The  aim  of  this  measure  is  to  improve  the  quality  of  services  and  reduce 
corruption. The rapid shift has raised questions about the quality and accessibility of services 
for people with limited digital skills, limited digital access, or persons with a disability and 
this issue still needs to be addressed. The government has recently announced its intention to 
reinstate some form of contact centres. A good number of municipalities have one-stop-shop 
centres to provide municipal services, which in the past were often combined with an ADISA 
centre.  On  accessibility  for  persons  with  disabilities,  Albania  needs  to  align  with  Directive 
2016/2102  on  the  accessibility  of  the  websites  and  mobile  applications  of  public  sector 
bodies. 

In 2022, the provision of digital services was temporarily suspended after a number of cyber-
attacks on government systems, albeit not on the e-Albania platform itself. A number of data 
leaks  from  some  public  systems  have  also  occurred.  Therefore,  digital  security,  as  well  as 
data  protection  provisions,  need  to  be  strengthened.  The  National  Agency  for  Information 
Society is  improving its risk assessment capacity and business  continuity infrastructure. On 
data protection, Albania should upgrade its regulatory framework to align with EU standards. 

The  Code  of  administrative  procedures  provides  the  legislative  framework  to  simplify 
administrative  procedures  in  line  with  international  standards.  The  process  of  legal 

17 

 
 
harmonisation with the code needs to be completed. In April 2023, the government adopted a 
new  Policy  Document  on  Standards  of  Public  Services,  which  aims  to  improve  service 
standards.  

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  is  in  between  some  and  moderate  level  of  preparation  in  aligning  with  the  EU 
acquis  and  European  standards  in  the  area  of  the  judiciary  and  fundamental  rights.  Some 
progress was made in the reporting period.  

Functioning of the judiciary 

Albania  is  moderately  prepared  on  the  functioning  of  the  judiciary.  Good  progress  was 
made  during  the  reporting  period,  with  the  continued  implementation  of  the  justice  reform. 
The  vetting  process  for  judges  and  prosecutors  has  advanced  with  overall  good  results, 
although  the  pace  of  proceedings  in  appeal  needs  to  be  stepped  up  in  light  of  the  revised 
constitutional deadline, with due regard to the quality of the process. By  6 October, 57% of 
the vetting dossiers processed resulted in dismissals, resignations or termination of mandate. 
Albanian  institutions  need  to  ensure  systematic  judicial  follow-up  on  vetting  cases  where 
criminal  offences  have  been  indicated.  The  efficiency  of  the  judicial  system  and  access  to 
justice continued to be affected by the length of proceedings, the increased workload and the 
large backlog of cases, which remains significant. Progress was made in addressing judicial 
vacancies through the appointment of a significant number – 40 – of new magistrates, sworn 
in  office  at  the  High  Judicial  Council  in  October  2023.  Implementation  of  the  new  judicial 
map has started; however, this process needs to be consistent with the legal framework and 
principles of access to justice. The Specialised Structure for Anti-Corruption and Organised 
Crime  (SPAK)  achieved  further  results,  and  conducted  investigations  in  several  high-level 
cases,  which  include  the  involvement  of  two  former  ministers.  A  new  Chief  Special 
Prosecutor was elected in December 2022 after a sound process. Some positive actions have 
been  taken  towards  increasing  the  relevance  of  the  continuous  training  programme  in  the 
reporting  period,  however  further  significant  progress 
last  year’s 
recommendation  regarding  the  judicial  training  system.  Progress  was  made  on  the  case 
management  system,  particularly  with  the  establishment  of  the  inter-operability  working 
group and the adoption of the interoperability framework setting the basis for the roll-out of 
the system.  

is  needed  on 

Recommendations for the coming year: 

→  further  advance  the  process  of  re-evaluating  judges  and  prosecutors  (vetting)  and  speed 
up procedures, in particular on appeal, with due regard to the quality of the process;  

→  consolidate  efforts  to  improve  the  efficiency  of  all  courts  and  prosecution  services  and 
reduce  the  backlog  of  cases,  including  by  filling  open  vacancies,  improving  the 
functioning of the courts and streamlining/simplification of judicial proceedings,  further 
decisive  action  to  set  up  a  modern  integrated  case  management  system  and  to  create  a 
robust  implementation  and  communication  plan  for  the  new  judicial  map  that  ensures 

18 

 
 
 
respect of the right to access justice and of the applicable legal framework, in particular 
on transfers and promotions;  

→  continue to strengthen the capacity and independence of the judicial system and its self-
governing institutions,  while making quality  and efficiency improvements at  the School 
of  Magistrates,  including  by  revising  the  admission  examination  in  line  with  European 
standards.   

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 of 
the process.  

By 6 October 2023, the vetting institutions had completed 689 vetting cases at first instance 
amounting  to  84%  of  the  total.  Of  these,  537  decisions  are  final.  In  total,  around  805 
professionals were due to undergo scrutiny. Overall, 57% of the vetting dossiers processed so 
far  have  resulted  in  dismissal  or  termination  due  to  the  assessee  resigning  or  reaching 
retirement age. The outcome of decisions of the first instance vetting body, the Independent 
Qualifications  Commission  and,  where  applicable,  of  the  Appeal  Chamber,  resulted  in  257 
dismissals (mostly for issues relating to unjustified assets); 278 confirmations in office; 152 
decisions  to  terminate  the  vetting  proceedings;  and  2  suspension  decisions,  with  the 
obligation  to  undergo  training.  The  International  Monitoring  Operation  has  continued  to 
oversee the vetting process and has issued opinions on first-instance assessments, including 
33  recommendations  for  appeal,  and  8  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 processed 208 cases.  

In  June  2023,  the  Special  Court  of  First  Instance  against  Corruption  and  Organized  Crime 
sentenced the former Head of the Constitutional Court to  6 months  in  prison, commuted to 
one year of probation, for false declaration and concealment during the vetting process. Trial 
is  ongoing  against  three  former  High  Court  judges,  and  the  Special  Court  of  First  Instance 
against  Corruption  and  Organized  Crime  has  confirmed  the  request  of  the  Special 
Prosecutor’s Office regarding the confiscation of assets in one of the three cases. The vetting 
institutions are expected to systematically refer cases to prosecution services where there are 
indications of criminal offences. So far, 34 cases have been referred to prosecution in cases of 
termination  of  the  vetting  process  due  to  resignation,  which  represents  about  10%  of  the 
number  of  resignations  and  dismissals.  Prosecution  services  are  encouraged  to  proactively 
initiate criminal  proceedings against judges and prosecutors whose vetting  process  revealed 
criminal elements.  

It is important that all state institutions and judicial authorities, including the self-governing 
bodies  of  the  judiciary,  respect  the  independence  and  exclusive  jurisdiction  of  the  vetting 
bodies, and refrain from acts that could contradict the final vetting decisions. 

Strategic documents 

The Ministry of Justice reports regularly on the implementation of the 2021-2025 cross-sector 
justice  strategy  and  its  action  plan.  All  judicial  institutions,  including  the  Constitutional 
Court, have developed plans to align their activities with the cross-sector strategy.  

A specific set  of indicators is  included in  the justice strategy and its action plan to  make it 
easier to track its implementation. There is a need to improve the reporting capacities of the 
relevant  units  in  all  institutions,  standardise  reporting  methods,  provide  more  frequent 
specialised training of staff on analytical skills, and ensure the accuracy of statistical data at 

19 

 
 
all  levels.  Albania  needs  to  ensure  effective  cooperation  between  justice  institutions,  the 
allocation  of  sufficient  resources  and  the  efficient  and  systemic  functioning  of  the  justice 
sector in the context of implementing the justice strategy and its action plan. 

Specialised bodies 

SPAK,  comprising  the  Special  Prosecution  Office  (SPO)  and  the  National  Bureau  of 
Investigation (NBI), continued to be fully operational. The High Prosecutorial Council (HPC) 
elected a new Chief Special Prosecutor in December 2022 after a sound process. The capacity 
of  the  recruitment  bodies  (SPO,  NBI  and  the  Courts  for  High-Level  Corruption  and 
Organised Crime) needs to be further strengthened to ensure efficiency and the sustainability 
of their workload. The SPO has filled 17 out of its 20 prosecutor posts. One prosecutor was 
temporarily  transferred  to  SPO  from  the  Prosecutor  General  Office  in  March  2023  for  the 
period of one year. The SPO has filled 12 out of its 16 financial investigator posts. Following 
a  second  round  of  recruitment  in  June  2022,  the  NBI  has  60  investigators.  As  provided  by 
law, an international commission consisting of two criminal justice experts nominated by the 
EU and two by the US government, continued to monitor the functioning of the NBI. See also 
under Chapter 24 – Justice, Freedom and Security 

Despite some progress, the remaining judge vacancies in the SPAK specialised courts need to 
be filled up. In the SPAK appeal court, 10 out of 11 judges have been appointed. There were 
nine  judges  out  of  16 in  the  first  instance  court,  of  which  three  delegated  and  not  formally 
appointed.  

Management bodies 

The  self-governing  institutions  of  the  judiciary  have  continued  to  fully  exercise  their 
functions.  All  vacancies  for  non-magistrate  members  of  the  High  Prosecutorial  Council 
(HPC) have now been filled. The High Judicial Council (HJC) and HPC are due to renew at 
least  half of their  membership, including  both  magistrates and lay members, by December 
2023. This renewal will result in new chairpersons for both Councils. It is essential that  the 
process to select the members of the HJC and HPC guarantees fair and effective competition 
and  independence,  in  particular  by  taking  measures  to  ensure  a  competitive  number  of 
applicants notably in appointments by bodies that appoint lay members and by Parliament.  

The HJC advanced with the appointments of judges to vacant positions but it needs to finalise 
the promotion of judges to the High Court and ensure that all 19 judges are in place. The HJC 
continued  to  approve  a  significant  amount  of  implementing  legislation  regulating  the 
activities of the judicial system and courts. Evaluations remained below the projected targets. 
However,  they  remain  key  to  ensuring  the  effective  functioning  of  the  judiciary  and 
efficiency of the judicial system. The HJC needs to increase the pace of evaluations and the 
HPC needs to urgently start carrying them out. The HJC and HPC need to put in place clear 
rules of procedure for the evaluation, promotion and transfer of judges and prosecutors. The 
HPC  needs  to  urgently  start  carrying  out  evaluations  of  prosecutors,  in  line  with  its  annual 
plan, and adopt the necessary implementing legislation to do this. So far, no evaluations have 
been  completed  by  the  HPC,  which  is  a  matter  of  concern.  The  HPC  and  the  General 
Prosecution  Office  (GPO)    should  further  improve  cooperation  to  ensure  effective 
management  of  district  prosecution  services  and  in  reporting  on  how  the  system  is 
functioning.  The  budgets  and  human  resources  of  the  HJC  and  HPC  have  gradually 
increased. There are recurrent complaints from the media and civil society about transparency 
and  outreach.  It  is  necessary  to  improve  the  regulatory  framework  and  the  well-established 
practice  for  media  communications  and  access  to  information,  based  on  the  principle  of 
transparency. 

20 

 
 
The Justice Appointment Council continued to  operate throughout 2022 and a new Council 
was selected in December 2022. 

The capacity, independence and efficiency of the self-governing bodies of the judiciary needs 
to be further strengthened, including by ensuring the quality of their decisions, transparency 
of their work and effective public communication.  

Independence and impartiality 

The 2016 justice reform set out a satisfactory legal and institutional framework to guarantee 
the independence and impartiality of magistrates. However, concerns continued to be raised 
about  alleged  attempts  to  interfere  with  and  exert  pressure  on  the  judicial  system.  The 
training  of  magistrates  should  further  focus  on  integrity  and  judgecraft.  Targeted  action  to 
reduce undue influence and increase public trust in the judiciary should be further considered. 

Legal  provisions  are  in  place  to  guarantee  independent  procedures  to  appoint,  promote, 
evaluate and dismiss judges and prosecutors, and to ensure the possibility to appeal all related 
decisions.  The remuneration of judges and prosecutors reaches the highest levels  for public 
sector  salaries  in  the  country.  In  December  2022,  the  Constitutional  Court  delivered  a 
decision on the regulatory framework for the salaries of magistrates. This decision has been 
implemented in full respect of the principle of the financial independence of magistrates. The 
transparency  and  correct  implementation  of  the  legal  provisions  on  promoting  and 
transferring  prosecutors  and  judges  should  be  ensured  by  the  Councils,  including  through 
implementing legislation.  

The roll-out of a modern integrated case management system has been long pending, and it 
remains  necessary  to  improve  the  efficiency  and  transparency  of  the  justice  system.  The 
limited  number  of  judges  at  several  courts  coupled,  with  the  lack  of  an  integrated  case 
management system, leads to a worrying result in that the random allocation of cases is not 
widely applied. The random allocation of cases in the prosecution services is not applied and 
is  an area of serious concern. The  IT centre for the justice system  has only  one member of 
staff on duty, which is insufficient to ensure strong leadership  and high standards. Progress 
was made on the case management system, particularly with the  establishment of the inter-
operability working  group in  June 2023 and the  adoption of the interoperability  framework 
setting the basis for the roll-out of the system .   

It is a criminal offence to exert undue influence over a judge or a prosecutor. There have been 
no  official  reports  from  judges  or  prosecutors  of  such  attempts.  Concerns  remain  about 
internal  and external  attempts to  exert undue interference over the judicial  system,  political 
pressure and intimidation.  No sanction has  been taken against public officials  or politicians 
waging  accusations  against  magistrates.  However,  the  self-governing  institutions  have 
publicly reacted to such accusations, classifying them as undue influence and pressure.  

Accountability 

The  High  Justice  Inspector  (HJI)  continued  to  be  operational,  initiating  and  conducting 
disciplinary investigations against magistrates. Nearly half of the planned inspectors (12 out 
of  26)  are  in  office.  The  recruitment  of  additional  inspectors  and  improvement  of  HJI’s 
capacity remain necessary. The HJI adopted a revised methodology to reduce the backlog of 
1 606  cases  that  it  inherited,  of  which  1 072  have  yet  to  be  processed.  The  HJI  has  not 
accumulated  a  backlog  of  new  cases  since  it  was  set  up.  It  is  still  necessary  to  During  the 
reporting period, the HJI received 789 complaints. It processed 534 complaints and started 28 
disciplinary investigations, of which for six magistrates it has requested disciplinary measures 
by the Councils. In most cases where the HJI requested dismissals, the councils decided on a 

21 

 
 
more lenient measure.  

The  HJI  has  proposed  three  disciplinary  measures  for  judges  to  the  HJC,  of  which  two  are 
still ongoing and one has been followed, but with a change to the proposed measure. The HJI 
has proposed three disciplinary measures for prosecutors to the HPC, of which one is ongoing 
and two are suspended. 

The HPC should quickly begin the evaluation of all prosecutors, given the lack of progress in 
the reporting period.  

Cooperation  between  the  institutions  governing  the  justice  system  should  be  further 
strengthened.  The  regular  general  meeting  between  the  HPC  and  the  HJC  took  place  only 
once during the reporting period. Coordination on a regular basis is needed.  

Strategic  communication  by  the  institutions  of  the  judiciary  on  key  policies  is  still  weak. 
Greater transparency is needed on the concrete steps to implement the judicial map. Frequent 
communication  is  also  needed on key policies  adopted by both  councils, including  reader-
friendly  information  on  the  procedure  to  promote  judges  and  prosecutors,  regular  thematic 
evaluations and other analytical reports.  

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.  The 
continued  implementation  of  judicial  reform  reduced  political  influence  throughout  the 
appointment process, thus contributing to ensure a more merit-based career system. The last 
vacancy  in  the  Constitutional  Court  was  filled  in  December  2022.  The  evaluation  process, 
including  the  ranking  of  candidates,  needs  to  be  more  transparent  and  allow  for  more 
competition, in line with the Venice Commission recommendations. 

The High Court continued to reduce its backlog of cases, however this remains very high, and 
more efforts,  including  additional judges and legal  advisers,  are necessary to  help  reduce it 
further.  

Quality of justice 

Some  positive  actions  have  been  taken  towards  increasing  the  relevance  of  the  continuous 
training programme in the reporting period. The overall quality of the initial and continuous 
training  at  the  School  of  Magistrates  (SoM)  requires  further  improvement.  Further  to  the 
efforts made in previous years, an increase in the number and quality of cohorts of students 
and graduates is still necessary as  a matter of priority, to address judicial vacancies and the 
efficiency challenges of the judicial system. However, for the 2022-2023 academic year, the 
intake of new students slightly decreased compared with the previous term. Of the 96 places 
available  in  the  SoM,  only  66  students  were  admitted  for  2023-2024.  In  addition,  the  SoM 
needs to  continue improving  the quality  of new  recruits  and graduates, including through a 
comprehensive  revision  of  the  entry  examination  in  line  with  European  standards.  A 
comprehensive analytical projection of the short and long-term needs of the judicial system, 
including a number of magistrates is still missing. This should take into account the backlog 
in  cases,  implementation  of  the  judicial  map  and  the  results  of  vetting.  The  SoM  needs  to 
intensify its efforts to improve the quality of academic staff and to ensure a competitive and 
transparent  recruitment  process.  The  methodology  of  continuous  training  needs  to  be 
improved  and  should  be  based  on  a  regular  needs  assessment.  The  SoM  should  publish  an 
analysis  of  the  satisfaction  surveys  on  continuous  training  and  adopt  a  methodology  to 
conduct regular needs assessments. Initial training should be substantially revised to be more 
consistent with the objective of specialisation and to put a greater focus on practical training, 

22 

 
 
especially on legal writing and reasoning. Training should also include a specific curriculum 
on EU law. The total budget allocated to training initiatives at the SoM in 2022 amounted to 
EUR 2.7 million, compared with EUR 2.9 million in the previous year. As an observer of the 
European Judicial Training Network (EJTN), the SoM should be more proactive in profiting 
from the network’s activities and expertise. 

The quality of final court decisions need to be further improved. The HJC and the High Court 
have taken some steps towards the dissemination and unification of judicial  practice, which 
however  requires  further  consolidation.  Access  to  full  reasoned  decisions  and  their  timely 
publication remains very limited.  

Albania had 11.4 judges per 100 000 inhabitants (318 judges) and less than 8 prosecutors per 
100  000  inhabitants  (202  full  time  prosecutors)  in  2022  according  to  the  European 
Commission for the Efficiency of Justice (CEPEJ). The EU average in 2021 was 24.1 judges 
and 10.8 prosecutors per 100 000 inhabitants. The number of judges in Albania increased in 
2022 compared with the previous year’s ratio, following several new appointments; and there 
was a slight drop in the number of prosecutors compared with the previous reporting period. 
The  2021  budgetary  allocation  for  the  judicial  system  was  about  EUR  70  million.  This 
amounts  to  over  EUR  14.5  per  inhabitant.  The  budget  for  the  courts  saw  a  significant 
increase,  however  the  courts’  infrastructure  remains  poor  overall  and  future  budget 
allocations  need  to  address  with  greater  determination  the  pressing  needs  of  the  judicial 
institutions.  

Efficiency 

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

The majority of courts in Albania function with reduced personnel,  due to judicial vacancies, 
on  average  at  less  than  half  of  their  normal  capacity.  Progress  was  made  in  addressing 
judicial vacancies, through the appointment of 40 new magistrates who were sworn in office 
at the High Judicial Council in October 2023 and will immediately take up their duties at first 
instance courts throughout the country. Albania began to implement the judicial map, which 
aims  to  help  optimise  human  and  financial  resources,  increase  specialisation,  increase  the 
courts’ efficiency and mitigate the impact of the vetting process. The implementation of the 
judicial map should ensure the respect of the right to access to justice and of the applicable 
legal framework, in particular on transfers and promotions. A robust implementation plan for 
the judicial map is still missing and needs to be urgently put in place. Periodic assessments, 
effective communication and an adequate budget need to be ensured. 

The  average  number  of  cases  per  judge  remains  high,  which  is  of  concern,  especially  at 
appeal level. Attempts to stabilise the backlog have not yet produced results. There has been 
a 31% increase in cases awaiting adjudication countrywide. The average length of a case at 
appeal  level  was  893  days  in  2022.  At  the  Tirana  Appeal  Court,  the  average  length  of  a 
criminal case was 5 820 days. 

The  courts  with  the  largest  backlog  are  the  High  Court,  the  Appeal  Court  and  the 
Administrative Court of Appeal. In 2022, the backlog in the Administrative Court of Appeal 
increased by 15%, with  21 166 cases pending,  compared with  2021, although the clearance 
rate improved. The backlog in the appeal courts of general jurisdiction is 28 140 cases, i.e. up 
24% from the previous reporting period. All the other efficiency indicators for cases at appeal 
level have worsened compared with the previous reporting period, which is a worrying trend.  
The High Court has the biggest backlog, of over 31 827 cases but has managed to reduce it 
by 12% compared with the previous year. The highest number of pending cases at the High 
23 

 
 
Court are civil cases, while of the number of new cases registered in the Court fell by 27% 
compared with last year.  

The  accumulated  backlog  has  a  significant  impact  on  the  clearance  rate  and  capacity  of 
judges  to  process  cases  in  due  time.  The  HJC  and  HPC  should  decide  on  an  appropriate 
methodology and take the necessary steps to reduce the backlog at all levels and to ensure a 
reasonable  time  for  the  hearing,  reasoning  and  publication  of  final  court  decisions.  The 
absence  of  defence  lawyers  is  the  most  frequent  reason  for  the  adjournment  of  hearings. 
Together with filling up of vacancies as well as other administrative and procedural matters, 
this issue should be addressed to improve judicial efficiency. 

Further efforts are needed 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 interoperability across the entire justice system, 
in  line  with  CEPEJ  methodology.  Progress  was  made  with  the  establishment  of  the  inter-
operability  working  group  and  the  adoption  of  the  interoperability  framework  setting  the 
basis for the rollout of the system .  

Alternative dispute resolution is not used, and the courts did not refer any cases in 2022. It is 
necessary to improve citizens’ awareness of alternative dispute resolution, the services of the 
mediation  chamber  and  the  legal  provisions  on  court  referral  to  the  mediation  chamber 
needed as a matter of priority to reduce the case backlog and increase access to justice.  

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

Fight against corruption 

Albania  has  some  level  of  preparation  in  the  fight  against  corruption.  Despite  some 
progress  and  continued  efforts  in  fighting  corruption,  including  a  number  of  high  level 
convictions and financial investigations at high level, it remains an area of serious concern. 
Overall,  corruption  is  prevalent  in  many  areas  of  public  and  business  life  and  measures  to 
prevent  it  continue  to  have  a  limited  impact,  particularly  in  vulnerable  sectors.  The 
Specialised Structure for Anti-Corruption and Organised Crime (SPAK) conducted criminal 
proceedings  and  financial  investigations  in  several  high-level  cases.  Criminal  convictions 
were  pronounced  by  the  SPAK  Courts  in  high-profile  cases,  notably  in  case  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).  Increasing  the 
number of final convictions in high-level cases remains an important priority to further tackle 
the culture of impunity. The vetting of judges and prosecutors continues to bring results in the 
fight against corruption within the judiciary, however further efforts are needed to ensure due 
judicial  follow-up  in  vetting  cases  where  there  are  indications  of  criminal  offences.  The 
institutional  capacity  of  the  Anti-corruption  Directorate-General  in  the  Ministry  of  Justice 
needs  to  be  further  strengthened.  The  composition  of  the  Ethics  Commission  needs  to  be 
revised, as the presence of a member of the government is ground for serious concern. The 
sectors that are most vulnerable to corruption require targeted risk assessments and dedicated 
actions. The 2022 recommendations were only partially implemented, thus they remain valid. 

In the coming year, Albania should in particular: 

→  strengthen the investigation, prosecution, adjudication and final conviction of corruption 
cases, in particular at high level, and increase the seizure and confiscation or recovery of 
criminal assets resulting from corruption-related offences; 

→  further  strengthen  the  capacity  of  the  SPAK,  to  fully  reflect  its  operational  needs, 
24 

 
 
including by increasing human resources, providing specialised equipment and adopting  
a strategy that prioritises cases as a way to tackle the continuously increasing backlog of 
cases; 

→  adopt  a  new  anti-corruption  strategy  to  effectively  curb  corruption,  including  dedicated 
action  plans  and  indicators  for  the  sectors  most  vulnerable  to  corruption,  and  address 
effectively  the  recommendations  of  the  Council  of  Europe’s  Group  of  States  against 
Corruption (GRECO). 

Track record 

Efforts continued to extend the track record of investigations, prosecutions and convictions 
in the fight against corruption.  

The  specialised  law  enforcement  bodies  in  charge  of  investigating,  prosecuting  and 
adjudicating  complex  corruption  cases  –  the  SPAK  and  the  Anti-Corruption  and  Organised 
Crime Courts – remained operational during the reporting period. 

However, greater political will and more structured and consistent efforts, including adequate 
resources, tools and skills, are still needed to systematically address cases of corruption.  

In  2022,  186  people  were  convicted  of  public  sector  corruption  and  7  of  high-level 
corruption, while 298 new cases were sent to court for public sector and none for high-level 
corruption, 18 people were convicted of corruption in the judicial system. 

The anti-corruption sector in the state police recorded a total of 1 193 criminal offences and 
investigated  1 537  suspects  in  2022,  up  from  1 018  criminal  offenses  and  1 491  prosecuted 
offenders in 2021. 

Seizures of assets from corruption-related crimes totalled EUR 38 million in value in 2022, 
compared  with  EUR  21  million  in  2021.  The  reported  value  of  confiscations  remain  much 
lower and needs to significantly increase.  

On high-profile cases, criminal convictions were pronounced by the SPAK Courts, notably 
the conviction of a former Minister of Environment to 10 years in prison and of a Member of 
Parliament to four years in prison as part of an investigation into the concession contracts on 
urban waste treatment (the incinerators’ affair), reduced to 6.8 and 2.8 years respectively due 
to  shortened  trial.  A  former  deputy  prime  minister  was  indicted  by  SPAK  for  criminal 
offences, including passive corruption, as part of the investigations on the ‘incinerators’ case. 
A  former  deputy  minister  of  health  was  arrested  in  connection  to  a  procurement  case. 
Investigations launched previously on high level officials have continued. 

In  2022,  the  administrative  investigations  conducted  by  the  Anti-corruption  Directorate-
General led to 20 criminal reports (compared with 12 in 2021), and 43 administrative reports 
comprising 259 disciplinary measures. A systematic preventive policy should be adopted by 
the relevant agencies based on the analysis of the record of disciplinary measures and other 
wrongdoings. 

The  vetting  of  members  of  the  judiciary  continued  to  have  a  positive  impact  on  the  fight 
against  corruption.  During  the  reporting  period,  12  cases  were  referred  to  the  prosecution 
services  when  the  vetting  process  had  been  terminated  due  to  resignation,  increasing  the 
number  of  referred  cases  to  34,  which  represents  about  10%  of  the  total  number  of 
resignations and dismissals. Additional efforts are needed to systematically initiate criminal 
procedures  against  judges  and  prosecutors  suspected  of  criminal  conduct  during  vetting  by 
prosecution services, in particular in cases of dismissal.  

25 

 
 
On  asset  declarations  by  high-level  state  officials,  in  2022  the  High  Inspectorate  for  the 
Declaration  and  Audit  of  Assets  and  Conflicts  of  Interest  (HIDAACI)  applied  128 
administrative measures, such as fines. It referred 37 cases to law enforcement agencies for 
further investigation (compared with 15 cases in 2021 and 72 in 2020). The electronic system 
for the declaration of assets and private interests continued to operate. 

In  2022,  HIDAACI  reviewed  13  whistleblowing  cases  and  two  requests  for  protection 
against retaliation. Additional campaigns are needed to increase citizens’ engagement in the 
fight against corruption. 

As regards internal  control  mechanisms, the state Supreme Audit  Institution  (SAI) reported 
estimated  direct  economic  damages  to  public  finances  in  2022  of  almost  EUR  14  million, 
roughly half on revenue and half on expenditure. The SAI also estimated the negative effect 
due  to  irregularities  at  around  EUR  825  million  which  includes  economic,  efficiency  and 
effectiveness  losses.  In  2022,  the  institution  referred  four  cases  involving  16  persons  for 
prosecution,  including  a  former  Minister  for  Health  and  a  former  director  of  the  Port 
Authority in Durres. Two of these cases, and 12 of the persons, were related to abuse of duty 
in cadastre agencies of Vlore and Sarande. (see also Chapter 32 – Financial Control).  

On access to information, the Commissioner for the Right of Information and Protection of 
Personal  Data approved the new models of the transparency programme  and the register of 
requests and responses and has monitored all central and dependent public authorities, as well 
as  all  local  self-government  units.  The  electronic  register  of  requests  and  responses  was 
installed in another 100 public authorities, bringing the total number to 195. A total of 331 
public authorities have published the transparency programme on their official websites. 

Anti-corruption measures continue to have a limited impact in particularly vulnerable areas. 
Corruption  remains  prevalent  in  the  health  and  property  sectors  and  within  the  police. 
Targeted action is urgently needed. Internal checks and inspection mechanisms in the public 
administration remain weak and ineffective.  

Institutional framework 

Prevention of corruption 

The  Anti-Corruption  Directorate-General  in  the  Ministry  of  Justice  is  the  main  body 
responsible for systematically preventing corruption and raising awareness. It also conducts 
administrative investigations in institutions. It cooperates with a network of anti-corruption 
coordinators  posted  to  44  state  institutions.  The  independence,  capacities  and  public 
visibility of the directorate-general and the network, as well as alignment of its investigative 
functions with EU practices should be further increased, and their efficiency assessed against 
public perception and bribery indexes. 

The central ministries, all agencies of the Ministry of Justice, and 22 additional municipalities 
adopted integrity risk assessment and integrity plans. Their effective implementation is yet 
to be ensured.  

Within the overall anti-corruption framework, the role of the state Supreme Audit Institution 
is to provide recommendations to the government to address systematic weaknesses. The e-
procurement, e-appeals and e-complaints systems helped to increased transparency in public 
procurement.  

In 2022, the powers of the Agency for Dialogue and Co-governance were extended to include 
following  up  citizens’  complaints  of  corruption,  including  inspections  at  the  relevant 
authorities. The Agency should further improve its efficiency, in coordination with the Anti-

26 

 
 
Corruption Directorate-General and the network of coordinators.  

The  High  Inspectorate  for  the  Declaration  and  Audit  of  Assets  and  Conflicts  of  Interest 
(HIIDACI)  has  become  a  well-established  institution.  It  introduced  the  online  system  for 
assets,  while  providing  training,  assigning  contact  points  and  establishing  cooperation  with 
banks,  cadastre  and  other  institutions.  Close  to  100%  of  around  4 000  persons  concerned 
entered their declarations in the online system. However, the module for publication of assets 
was  put  on  hold  until  it  fulfils  cyber  security  requirements.  Relevant  institutions  should 
cooperate closely to ensure a proper verification of the data declared.  Measures continue to 
have  a  limited  impact,  notably  in  the  most  affected  areas  such  as  infrastructure,  property 
rights, customs, tax, education, health, public procurement and government contracts. These 
areas require targeted risk assessments, dedicated actions and effective implementation of the 
measures.  

Further efforts are needed to improve compliance with procedures and prevent corruption in 
the procurement cycle (see also Chapter 5 – Public Procurement). 

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  is  party  to  all  international  anti-corruption  conventions,  including  the  United 
Nations Convention against Corruption.  

In  March  2023,  GRECO  concluded  that  Albania  implemented  or  dealt  satisfactorily  with 
only 5 of the 24 recommendations made in the report of the 2020 evaluation round concerting 
integrity of central government and law enforcement (Fifth Round evaluation), while 13 were 
partly  implemented  and  6  were  not  implemented.  More  efforts  are  needed  to  make 
improvements  in  the  following  areas:  (i)  the  adoption  of  robust  integrity  plans  in  all 
ministries;  (ii)  the  consistency  of  the  legal  and  institutional  framework  on  the  fight  against 
corruption  and  the  integrity  of  public  officials;  (iii)  effective  implementation  of  the 
Ministerial  Code  of  Ethics;  (iv)  independence  of  the  Ethics  Commission;  and  (v)  integrity 
measures for the members of the Council of Ministers and political advisors. Improvements 
are  also  needed  in  the  framework  and  conduct  of  public  consultations,  the  monitoring  and 
transparency  of  contacts  with  lobbyists  and  other  third  parties,  and  in  post-employment 
restrictions  to  avoid  conflict  of  interests.  There  is  also  a  need  to  strengthen  the  legal 
guarantees on the financing of political parties and electoral campaigns.   

On the OSCE/ODIHR 2021 recommendations on the investigation and prosecution of cases 
of vote-buying, by 12 May 2023, 13 election-related reports had been received by SPAK, and 
6 pre-trial criminal investigations had been initiated, including on vote-buying. As electoral 
campaigns  are  increasingly  moving  online,  special  attention  should  be  paid  to  online  and 
third-party campaigning. 

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

Strategic framework 

The  implementation  of  the  inter-sectoral  strategy  against  corruption  is  overall  on  track, 
although  important  weaknesses  remain.  A  new  strategy  for  2023-2030  is  in  preparation,  in 

27 

 
 
which  more  attention  should  be  paid  to  the  sectors  most  vulnerable  to  corruption  which 
require  targeted  risk  assessments  and  dedicated  actions,  sound  monitoring  mechanisms  and 
sufficient  budget  for  implementation.  The  new  strategy  should  also  aim  to  encourage 
ownership  and  strengthen  institutional  capacities.  The  strategy  aims  to  include  monitoring 
indicators. Overall, the impact of corruption prevention structures in the public sector remains 
limited.  Some  progress  was  made  in  awareness-raising  and  efforts  in  this  area  need  to  be 
sustained. 

Fundamental rights  

Albania’s  legal  framework  sets  out  an  overall  good  basis  for  the  protection  of  fundamental 
rights. However, overall efforts at implementation of the legal and policy frameworks need to 
intensify. In particular, implementing legislation still needs to be adopted. On personal data 
protection,  Albania  should  take  urgent  measures  to  prevent  the  recurrence  of  massive 
breaches  of  personal  data  and  improve  their  handling.  Progress  was  made  on  the  use  of 
alternatives to detention and, in particular, the probation service. The application of gender-
responsive  budgeting  continued  to  improve.  Since  January  2022,  the  Albanian  government 
has  implemented  a  range  of  measures  aimed  at  supporting  families,  women  and  girls,  and 
vulnerable groups, as a response to the global crisis caused by the COVID-19 pandemic and 
Russia’s  war  of  aggression  against  Ukraine.  Economic  assistance  to  victims  of  domestic 
violence has been increased significantly. The implementation of the law on gender equality 
and of the national  strategy for gender continued and needs to  be  further intensified. There 
was  some  progress  on  the  rights  of  persons  with  disabilities,  as  concerns  biopsychosocial 
assessment.  The  process  of  first  registration  of  properties  and  other  transitional  processes 
need to  advance in  full  transparency, including  by tackling corruption. The registration and 
digitisation  of  cadastral  data  continued,  but  at  a  slow  pace.  Progress  was  made  with  the 
adoption  of  implementing  legislation  for  the  Law  on  the  cadastre  and  the  Law  on  the 
finalisation  of  transitional  ownership  processes,  however  the  overall  implementation  and 
results need to be significantly advanced. The remaining implementing legislation related to 
the 2017 framework Law on the protection of persons belonging to national minorities is still 
to be adopted. On the protection of personal data, Albania needs to put in place strong legal 
and  institutional  safeguards  to  prevent  further  massive  breaches  of  privacy  by  private 
companies and the public administration and adopt the necessary legislation to align with the 
EU  acquis  on  personal  data.  Since  the  2022  recommendations  were  only  partially 
implemented, in the coming year Albania should, in particular: 

→  adopt  the  pending  implementing  legislation  on  the  rights  of  persons  belonging  to 
minorities pertaining to self-identification and the use of minority languages, and increase 
the capacities of the state Committee on National Minorities; 

→  safeguard the right to property, notably by making decisive progress on first registration 
and compensation, improving the transparency of the state cadastre and the quality of the 
property  register,  and  ensuring  that  the  right  to  a  fair  trial  and  the  right  to  effective 
remedy are respected in cases of expropriation and removal of properties; 

→  improve  data  protection,  in  particular  by  adopting  the  revised  Law  on  personal  data 
protection in full alignment with the EU  acquis, by strengthening the independence and 
capacity of the Information and Data Protection Commissioner, and by awareness raising 
measures. 

Overall,  Albania  continues  to  be  party  to  most  international  human  rights  instruments. 
Albania has not signed the Optional Protocol to the Convention on the Rights of Persons with 
Disabilities  and  the  Optional  Protocol  to  the  International  Convention  on  Economic,  Social 
28 

 
 
and  Cultural  Rights.  For  Albania  to  fully  benefit  from  its  observer  status  in  the  European 
Union  Agency  for  Fundamental  Rights  (FRA),  it  needs  to  develop  a  comprehensive 
monitoring and data collection system to assess the level of implementation of human rights 
legislation, policies and strategies. 

Albania continues to ensure good cooperation with the European Court of Human Rights 
(ECtHR).  In  June  2023,  389  cases  were  pending  against  Albania  before  the  ECHR.  The 
ECHR  delivered  judgments  on  ten  applications  and  found  breaches  of  the  European 
Convention on Human Rights in nine out of ten cases (against three in 2022), relating mainly 
to the right to respect for private and family life, the right to a fair trial, and the right to liberty 
and security. In the reporting period, there were 101 new applications allocated to a decision 
body.  Currently,  there  are  seven  cases  under  enhanced  supervision  by  the  Committee  of 
Ministers.  

On  the  promotion  and  enforcement  of  human  rights,  the  Ombudsperson  (People’s 
Advocate) continued to  exercise their mandate satisfactorily. Despite  a 10% increase in  the 
institution’s  budget  from  2021  to  2022,  the  human  and  administrative  capacities  of  the 
institution still need to be further strengthened. Of the 249 recommendations issued in 2022, 
only  17% have been fully implemented and 36% partially implemented, while 41% remain 
unimplemented,  rejected,  or  without  response.  It  is  necessary  to  significantly  improve  the 
implementation of the Ombudsperson’s recommendations to ensure the effective enforcement 
of human rights. Parliament’s election of a new Ombudsperson, following the end of the five-
year  term  of  the  incumbent  Ombudsperson  in  June  2022,  is  significantly  delayed.  The 
incumbent remains in an acting capacity until the new Ombudsperson is elected. Blockages 
and  delays  in  the  parliamentary  appointment  procedure  need  to  be  urgently  addressed  to 
ensure  that  appointment  procedures  fully  guarantee  the  legitimacy  of  the  institution.  The 
Ombudsperson  should  complete  and  publish  their  annual  report  before  presenting  it  to 
Parliament  and  end  the  practice  of  presenting  the  annual  report  to  Parliament  before  it  is 
published.   

recommendations  were 

The  Commissioner  for  Protection  from  Discrimination  (CPD)  continued  to  carry  out  their 
mandate with  73 recommendations issued in  2022, up from  49 in 2021. Only 23.2% of the 
overall  number  of 
implemented,  while  53.5%  of 
recommendations  concerned  cases  subject  to  court  proceedings.  Legislative  changes  are 
instead  of 
necessary 
recommendations.  In 2022,  297 cases were handled by the CPD (213 new complains from 
2022 and 84 carried over from 2021) of which 143 were in the field of employment, 140 in 
the field of goods and services and 14 in the field of education.  

issue  executive  orders 

the  Commissioner 

to  empower 

fully 

to 

On the right to life, limited progress was made in investigating cases and strengthening the 
institutional  and  legislative  framework  on  persons  missing  since  the  communist  era. 
Sufficient resources should be allocated to improve capacities to make identifications and to 
formalise the arrangements for institutional coordination in the area. A single comprehensive 
and  publicly  accessible  database  of  missing  persons  should  be  created.  Continued  political 
will is important to increase the number of cases solved and to raise public awareness of this 
issue.  

On  the  prevention  of  torture  and  ill-treatment,  the  medical  and  custodial  staff  in  prison 
hospitals are generally satisfactory. However, poor material conditions still prevail, 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 for Justice and the Minister for Health and Social Protection to implement the 2021 
recommendations of the European Committee for the Prevention of Torture and Inhuman or 
29 

 
 
Degrading Treatment or Punishment and the judgments of the ECHR on forensic psychiatric 
patients  and  prisoners  with  a  mental  disorder.  Patients  with  medical  conditions  from  the 
Kruje and Zaharia detention facilities were transferred to the Lezha prison. The renovation of 
the Lezha prison continued, however, it is still over-populated and conditions in its forensic 
psychiatric facility need to be brought up to a satisfactory standard. Efforts are also needed to 
increase the number of staff and improve their working conditions and skills. No systemic ill-
treatment in prisons or by the police has been reported, but the People’s Advocate underlines 
the  need  to  improve  the  minimum  standards  for  sanitary  conditions  in  prisons  and  police 
premises. 

The  National  Preventive  Mechanism  (NPM)  carried  out  73  periodic  inspections  in  2022, 
which  were  followed  by  90  recommendations  (in  response  to  inspections  and  individual 
complains).  The  NPM  handled  45  cases  (31  complaints  and  14  own-initiative  cases),  of 
which 25 complaints were related to prisons and treatment of prisoners and were 6 against the 
state  police  for  alleged  use  of  violence  and  unfair  association.  The  NPM’s  90 
recommendations were accompanied by 779 sub-recommendations, of which only 41% have 
been implemented, 9% partially implemented, 45% not implemented and 5% are still without 
a response. 

The  prison  system  and  detention  centres  remain  a  serious  issue  of  concern.  Long-standing 
issues include political influence, corruption and poor management, as well as a shortage of 
staff, poor infrastructure, and a lack of healthcare and security. The lack of  inspections and 
employment  and  reintegration  programmes  for  prisoners  are  other  issues  of  concern. 
Continued  efforts  are  needed  to  increase  the  number  of  prison  staff,  including  medical  and 
specialist personnel, and to improve their skills and working conditions. 

Across the country, the number of inmates is now below the capacity of the prison system, 
with 89% of the capacity used. However, 13% (3 out of 22) of the prisons are overcrowded.  

The  Director-General  for  Prisons  has  initiated  a  review  of  prison  security  and  the 
rehabilitation  of  prisoners  in  Peqin,  Fier  and  Ali  Demi  prisons.  Special  attention  should  be 
paid to de-radicalisation in prison and  after release. The closure of prisons that do not meet 
the  necessary  standards  has  been  announced  in  the  framework  of  the  territorial  reform  of 
prisons (the 2023-2028 master plan of the Directorate-General of Prisons), and is expected in 
the next 2 years.  

According  to  the  Directorate-General  of  Prisons,  the  electronic  entry  and  exit  management 
system in prisons and detention institutions is ready to be put in operation. It aims to increase 
security,  improve  controls  and  data  storage,  make  the  facilities  easier  to  manage.  Between 
January  2022  and  February  2023  a  total  of  2 009  staff  were  trained  on  human  rights, 
including on the European Prison Rules.  

In  2022,  6 688  people  were  placed  in  alternatives  to  custody  by  a  court  decision,  which  is 
down  1%  from  2021,  but  an  18%  increase  compared  with  2020.  The  probation  service 
remains fully operational across the entire country and provides alternatives to imprisonment, 
including for juvenile offenders. However, the use of electronic monitoring is still suspended 
(since 2017) because of an unsettled legal dispute.  

Legislation  on  the  protection  of  personal  data  needs  to  be  urgently  aligned  with  the  EU 
General Data Protection Regulation (GDPR) and the EU law enforcement Directive. Public 
consultations  on  the  draft  legislation  took  place  in  the  summer  of  2022.  The  law  needs  to 
ensure the independence of the Office of the Information and Data Protection Commissioner 
(IDP)  and  empower  it  to  adopt  binding  decisions.  Moreover,  to  ensure  effective  alignment 
with the EU acquis on data protection, the capacities of the IDP will need to be strengthened.  
30 

 
 
In  2022,  the  IDP  handled  370  complaints  and  carried  out  48  administrative  inspections, 
issuing 48 recommendations and 63 administrative sanctions. In response to massive personal 
data leaks in 2021, the IDP Commissioner issued a decision in November 2022 that imposed 
fines  on  the  Directorate-General  for  Taxes  and  Directorate-General  for  Road  Transport 
Services for their  respective liability for the breaches. One  cross-cutting  finding of the IDP 
from its administrative inspections has been the lack of awareness about data protection in the 
public  administration.  Concerns  about  the  handling  of  personal  data  by  private  companies 
and  the  public  administration  continued  in  2022.  Overall,  robust  legal  and  institutional 
safeguards are needed to prevent breaches of personal data, increase public awareness of the 
relevant risks and increase the public institutions’ awareness of their obligations set out in the 
law. 

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 
2023,  the  state  allocated  approximately  EUR 1.05  million  to  the  Catholic,  Sunni  Muslim, 
Orthodox,  and Bektashi  communities for the administrative functioning of the communities 
and  religious  education,  a  similar  amount  as  the  previous  year.  The  dependence  of  some 
religious groups on financial support from third parties creates vulnerabilities. The restitution 
of properties belonging to religious groups that were expropriated during the communist era 
remains an unresolved issue.  

The  Commissioner 
three  cases  of 
complaints  of  discrimination  based  on  religious  grounds,  but  ruled  that  there  was 
no discrimination in any of the cases. 

from  Discrimination 

for  Protection 

reported 

Regarding the fight against antisemitism, Albania is an observer member to the International 
Holocaust  Remembrance  Alliance  (IHRA)  and  has  adopted  the  IHRA  definition  of 
antisemitism. Concrete efforts have been made regarding Holocaust education. 

---------------------------------------------------------------------------------------------------------------- 

Freedom of expression 

The country is in between some and moderate level of preparation in the area of freedom 
of expression. Limited progress was made, in particular through the amendment of the Law 
on  audiovisual  media,  to  align  with  the  2018  EU  Directive  on  audiovisual  media  services, 
with a view to participation in the Creative Europe Programme. However, the intersection of 
business  and  political  interests,  lack  of  transparency  of  financing  sources,  concentration  of 
media ownership, intimidation and precarious working conditions continued to hamper media 
independence, pluralism and the quality of journalism. The atmosphere of verbal and physical 
attacks, smear campaigns and intimidation lawsuits against journalists has not improved.  

Last year’s recommendations remain valid. In the coming year, Albania should in particular: 

→  ensure zero tolerance for intimidation and effective judicial follow up in cases of attacks 

against journalists, including through full decriminalisation of defamation; 

→  address  the  high  concentration  in  media  ownership  and  significantly  increase  the 
transparency  of  media  financing,  including  by  revising  legal  requirements  for  public 
advertising, in line with European standards; 

→  improve  the  working  conditions  for  journalists,  in  particular  by  strengthening  the 
protection  of  Albanian  journalists’  employment  and  social  rights  and  ensuring  a 
consistent application of the labour code. 

Intimidation of journalists 

31 

 
 
High-level  officials  and  political  actors  continued  to  voice  anti-media  sentiments  and  use 
denigrating  language  against  journalists  on  several  occasions.  In  July  2022,  a  second 
journalist was banned for three months from government press conferences for alleged ethical 
violations. 

In  November  2022,  an  investigative  journalist  was  physically  attacked  in  Tirana  by 
unidentified  persons.  The  journalist  claimed  that  the  attack  was  directly  related  to  his 
reporting  on  allegations  of  former  public  officials’  connections  to  corruption  cases.  In 
January  2023,  a  local  journalist  and  his  wife  were  physically  attacked,  while  the  journalist 
was  on  duty  covering  a  court  case.  In  March  2023,  the  building  of  a  private  national 
broadcaster was attacked by heavily armed individuals and, as a result, a security guard lost 
his life. All high-level state authorities and politicians across the political parties condemned 
the  event;  effective  judicial  follow-up  should  be ensured.  In  July  2023,  international  media 
watchdog  organisations  called  on  a  high-level  local  official  to  refrain  from  threatening  and 
harassing  a  journalist  following  her  reports  on  a  corruption  case.  A  solid  track  record  of 
prosecution  and  judicial  follow-up  has  yet  to  be  established  to  safeguard  the  safety  of 
journalists. 

There  was  a  slight  increase  in  the  number  of  strategic  lawsuits  against  public  participation 
(SLAPPs). Media organisations reported that 19 new criminal court cases were filed against 
journalists  or  media  workers  in  2022,  while  11  cases  remain  unresolved  and  have  been 
carried over from previous years. Furthermore, 12 civil cases were filed, of which 11 are for 
allegedly  publishing fraudulent or inaccurate information. No custodial penalties have been 
imposed  on  journalists  during  the  reporting  period.  Data  is  not  available  on  any  financial 
penalties imposed. The systematic monitoring and transparent reporting of the judicial cases 
involving journalists and media professionals needs to be strengthened. The use of force by 
law enforcement authorities, in particular on the margins of demonstrations, continues to be a 
source of concern.  

Legislative environment 

The constitutional right to freedom of expression continued to be generally upheld. However, 
defamation remains a crime punishable by particularly high criminal fines. The provisions of 
the  Criminal  Code  on  insult  and  defamation  need  to  be  repealed  or  fully  aligned  with 
European  standards.  The  civil  law  provisions  on  publishing  fraudulent  or  inaccurate 
information need to be aligned with European standards on freedom of expression and media 
freedom.  

During the reporting period, the Audiovisual Media Authority adopted a revised Audiovisual 
Broadcasting Code, which defines the principles, rules, requirements and practices of audio 
and  audiovisual  broadcasting,  following  consultation  with  civil  society  and  media 
organisations.  The  Code  aims  to  improve  the  application  of  the  right  to  gender  equality,  to 
tackle hate speech, and to address disinformation. 

In April 2023, following a public consultation with media actors, Parliament adopted limited 
amendments  to  the  2013  Audiovisual  Media  Law  intended  to  transpose  key  aspects  of  the 
2018  Audiovisual  Media  Services  Directive  (see  also  Chapter  10  –  Digital  transformation 
and media).  

The  anti-defamation  legal  package  was  removed  from  Parliament’s  agenda  in  November 
2022.  

There  is  a  need  for  a  comprehensive  assessment  of  the  legal  and  regulatory  framework  to 
address  major  challenges  hampering  media  independence,  in  particular  concentration  of 

32 

 
 
media  ownership  and  transparency  of  financing  sources  and  economic  interests,  including 
public funding. It is essential that any change to the legal framework be in line with European 
standards,  including  the  Venice  Commission  opinions,  and  is  subject  to  extensive 
consultations with media organisations and civil society.  

Implementation of legislation/institutions 

It remains important to ensure direct and transparent media access to government institutions 
and their activities and to factual non-partisan public information. The practice of institutions, 
public  officials  and  political  parties  of  distributing  pre-packaged  audio,  video  and  text 
materials to the media, especially in the context of elections, remains an area of concern that 
needs to be addressed.  

International media freedom organisations condemned the decision by a prosecution office to 
impose  blanket  bans  on  information  in  the  media  about  cyberattacks  on  Albania’s  e-
governance system, denouncing a potential violation of the media’s liberty to publish public 
interest materials. Albania adopted changes to the law on the right to information, including 
stronger  accountability  for  breaches  of  the  law.  Implementation  of  the  right  of  access  to 
public information needs to be further strengthened. 

In  December  2022,  the  demolition  by  a  government  agency  of  a  hotel  belonging  to  a 
businessman  and  prominent  media  owner,  claiming  violations  of  construction  laws,  and 
without waiting for the outcome of a legal review, caused controversy. 

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. One vacancy still has to 
be  filled.  Parliament  needs  to  avoid  blockages  and  delays  in  the  procedure  to  appoint 
members of the board of the public broadcaster. Appointments need to be carried out in line 
with procedures that ensure the greatest level of independence, impartiality and legitimacy of 
the institution. 

In June, the Steering Council of the public broadcaster elected by unanimity a new Director-
General.  The  fact  that  the appointee held  the position  of Secretary for relations with  media 
and civil society of the ruling Socialist Party until September 2021 has raised some concerns 
about the future independence of the public broadcaster. By July 2023, tens of media workers 
had been dismissed by the newly appointed management. 

Economic factors  

High-profile  business  groups  further  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 and to provide coverage favourable to their political and business sponsors. 
Concerns have been raised that individuals accused of corruption and money laundering are 
financing  the  media  as  part  of  their  strategies  to  escape  justice.  Market  and  audience 
concentration and lack of transparency of media funding continue to remain issues of concern 
as regards media freedom in the country. Media owners’ practices to evade taxes have been 
denounced by media freedom organisations.  

In  the  context  of  intertwined  economic  and  media  interests,  there  are  also  reports  of  media 
outlets exerting pressure in exchange for positive coverage. 

Internet 

It is estimated that there are around 800 online media outlets operating across Albania, most 
33 

 
 
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 
net neutrality. Albania is a signatory to the Declaration for the Future of the Internet of April 
2022.  

Digital media continue to be strongly influenced by political actors, businesses and by third 
parties in terms of funding and content.  

Large  information  technology  platforms  remain  unregulated  and  unregistered  in  Albania, 
although they account for a big proportion of the online advertising market and are the main 
distribution  platforms  for  news  and  video  content.  Advertising  in  online  and  social  media 
during elections is still unregulated. Media freedom organisations have highlighted the lack 
of regulation to ensure transparency in online advertising during electoral campaigns. 

The national strategy for cybersecurity and its 2020-2025 action plan have been adopted. The 
strategy includes a chapter on the protection of children online as a priority for the country. 
Five  key  pillars  in  this  chapter  look  at  tackling  specific  areas  of  their  protection  online, 
including  capacities  for  the  investigation  and  prosecution  of  crimes  against  children 
committed over the internet, which remain a major problem.  

Freedom of artistic expression 

Freedom of artistic expression is broadly guaranteed.  

Professional organisations and working conditions 

Professional  associations  of  journalists  face  serious  hardships  in  terms  of  limited  financial 
and human resources, and of the limited possibility to set up an effective cooperation  with 
the government to promote the interests of independent media.  

Limited job security and poor working conditions pose serious risks of self-censorship and a 
reduced resistance to disinformation. 

The limited enjoyment of employment rights remains 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 in breach of the provisions of 
the  Labour  Code.  Some  media  outlets  that  have  been  fined  by  the  tax  authorities  for 
underreporting the employees' wages have claimed to be targets of political intimidation. It is 
important that labour, tax and other legal obligations are respected systematically and without 
discrimination. 

Self-regulation  needs  to  be  further  strengthened  and  supported.  The  Alliance  for  Ethical 
Journalism, a group that brings together stakeholders (including online ones) who pledge to 
comply with the Code of Ethics, has started to develop some activities in this area.  

---------------------------------------------------------------------------------------------------------------- 

Freedom of assembly and association is guaranteed by the constitution and continued to be 
generally respected.   

Labour and trade union rights are covered in Chapter 19 – Social policy and employment. 

On property rights, progress was made with the adoption of implementing legislation on the 
Law  on  cadastre  and  the  Law  on  the  finalisation  of  transitional  ownership  processes,  but 
significant challenges remain. The state cadastre needs to put effective measures in place to 

34 

 
 
prevent  corruption  and,  accordingly,  to  establish  high  standards  of  transparency  and 
efficiency  in  the  procedures,  develop  an  efficient  integrated  land  management  system  and 
proceed vigorously with the systematic digitalisation and diligent reconciliation of legal titles 
and cadastral maps. Albania has endorsed the Terezin Declaration in 2009 but does not have 
any  restitution  or  compensation  laws  relating  specifically  to  Holocaust  era  confiscations  of 
private property. More efforts are needed to finalise the transitional ownership processes, the 
first registrations of properties and rightful compensation for properties illegally expropriated 
during  the  communist  era.  The  legalisation,  expropriation  and  demolition  of  constructions 
must strictly adhere to the legal framework in place, including the principle of transparency 
and due judicial process. 

In 270 cadastral zones, first registrations were not yet completed and progress was slow, with 
only 20 zones registered in 2022-2023. Meanwhile, in the registered cadastral zones, 80% of 
data  is  believed  to  be  inaccurate.  Ownerships  are  unclear  and  property  boundaries  overlap 
due to repeated and inconsistent interventions and faulty measurements over recent decades.  

Many title deeds and cadastral maps are still in paper format and many property transactions 
continue to be processed based on deeds and maps on worn-out paper with unclear data. In 
2022,  the  state  cadastre  began  to  systematically  digitise  title  deeds  and  has  digitised 
approximately  40%  of  them  by  April  2023.  The  systematic  digitisation  of  maps  is  set  to 
follow in 2023. However, systematic correction of data and measurements might only start in 
2024  or  later,  a  process  that  will  require  significant  investment  and  several  years  to  be 
completed. 

Internal  procedures  for  property  registrations  and  transactions  continued  to  fall  short  of  the 
standards  set  by  clarity  and  anti-bribery  measures.  In  the  work  of  the  Anti-corruption 
Directorate-General,  85%  of  all  public  allegations  of  corruption  received,  60%  (160)  of  all 
administrative  measures  and  70%  (50)  of  all  employees  who  were  the  subject  of  criminal 
reports, were related to the state cadastre agency. In this respect, the state cadastre needs to 
urgently  adopt  a  sound  integrity  plan  and  an  institutional  development  strategy,  and 
effectively  integrate  high  standards  of  transparency  and  accountability  in  its  internal 
procedures and IT systems.  

Compensation for properties confiscated by the communist regime continued to stall during 
2022. So far, only around 800 requests have been satisfied, while the agency for the treatment 
of properties (ATP) still has to process around 26 000 requests for compensation. In 2023, the 
government adopted decrees to extend the mandate of the ATP and clarify the calculation of 
compensation for properties whose type of use had changed, in particular those that changed 
from  agricultural  to  construction  land.  The  ATP  should  process  all  remaining  requests 
without further delay.  

Numerous  complaints  continued  to  be  raised  about  the  actions  of  the  government  agencies 
responsible  for  expropriating  properties  in  the  public  interest  and  demolishing  illegal 
constructions, which is a cause for concern. Civil society organisations and other stakeholders 
highlighted that the government is applying the law selectively. The authorities should ensure 
that  the  principles  of  legality  and  transparency,  the  prohibition  of  the  arbitrary  use  of 
executive  power,  and  the  right  to  a  fair  trial  and  the  right  to  an  effective  remedy  are  duly 
respected in cases of the expropriation and removal of properties.  

Legislative  amendments  from  2018  established  the  joint  registration  of  marital  property. 
However,  men  still  formally  own  most  of  the  private  land  in  the  country.  To  strengthen 
women’s legal  rights  and interests, the legal  notion of ‘agricultural  family’ may need to  be 
reviewed.  

35 

 
 
On non-discrimination, the implementation of the legal  and policy framework needs to  be 
further strengthened, including by providing specialised training to judges and prosecutors. In 
2022,  the  Commissioner  for  Protection  from  Discrimination  (CPD)  continued  to  handle  a 
stable number of cases, mostly in the areas of employment and services. Laws on hate speech 
are in line with international standards. National policies are needed to guide the fight against 
the different forms of hatred and discrimination.  Better enforcement and greater awareness-
raising are needed to eliminate hate speech, particularly in  rural  and remote areas. In 2022, 
the CPD handled six cases of hate speech, including on the grounds of race, gender or sexual 
orientation, and found that hate speech had been used in two cases. In 2023, the CPD handled 
3  new  cases,  of  which  two  are  under  review.  On  hate  crime,  some  progress  was  made  in 
increasing  the  capacities  of  law  enforcement  agencies  to  respond  to  this  phenomenon. 
However,  further  awareness-raising  and  capacity-building  among  criminal  justice  officials 
about hate crimes is still needed. Moreover, the ODIHR’s recommendations on the collection 
of data and statistics on hate crimes have yet to be fully implemented. Six cases of hate crime 
were reported to the police.  

The 2021-2030 national strategy on gender equality and its action plan are more affirmative 
in  addressing  the  rights  of  all  women  and  men.  It  focuses  on  people  who  face  intersecting 
forms  of  discrimination  and  vulnerability,  young  people  and  social  reforms,  and  includes  a 
section on humanitarian emergencies. However, implementation needs to be stepped up. The 
Gender  Equality  Mechanism  lacks  adequate  financial  and  human  resources,  thereby 
hampering  the  implementation  of  the  strategy.  Further  effort  is  needed  to  complete  the 
collection of data envisaged by the strategy to allow adequate monitoring. 

The  application  of  gender-responsive  budgeting  has  continued  to  improve.  In  2022,  all 
standard budget instructions contained gender-responsive budgeting as part of the criteria for 
expenditure  and  for  the  first  time  a  gender  budget  statement  was  officially  attached  to  the 
draft  budget.  Overall,  9%  of  the  2023-2025  medium-term  budget  programme  specifically 
supports  gender  equality  outcomes.  A  total  of  47  budget  programmes  of  11  ministries  and 
two  state  institutions  were  gender-responsive.  At  local  level,  12%  of  public  finances  are 
gender-responsive. Parliament has increased its engagement in promoting gender-responsive 
budgeting  and  in  promoting  gender  equality  more  broadly.  However,  it  does  not  have  a 
functioning  sub-committee  on  gender  equality,  and  the  regulatory  impact  assessment  is  not 
carried out regularly, nor does it have a specific provision on gender equality. The standard 
EU ex ante gender impact assessment tool has been adapted to the Albanian context, with a 
specific focus on mainstreaming gender equality goals into policies related to the EU internal 
market. 

Eighteen municipalities signed the European charter for equality of women and men in local 
life,  and  five  municipalities  (Elbasan,  Tirana,  Durres,  Gjirokastra  and  Gramsh)  have 
developed  and  approved  local  gender  action  plans.  The  plans  are  instrumental  for  the 
implementation of the European charter, as well as the national strategy for gender equality.  

Since January 2022, the Albanian government has implemented a range of measures aimed at 
supporting  families,  women  and  girls,  and  vulnerable  groups,  as  a  response  to  the  global 
crisis caused by the COVID-19 pandemic and Russia’s war of aggression against Ukraine. 

In  January-June  2022,  916  victims  of  domestic  violence  provided  with  a  protection  order 
have benefited from economic assistance, which has tripled  from ALL 3 000 to ALL 9 000.  

Provisions  on  referral  mechanisms  between  different  levels  of  care,  training  for  healthcare 
providers, youth friendly services, and outreach to vulnerable groups have not been addressed 
in  the  Law  on  reproductive  health.  The  Ministry  of  Health  and  Social  Protection  has  made 

36 

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

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

In 2022, the police identified and treated 5 210 cases of violence and other crimes committed 
within domestic relationships, a 1.9% decrease from 2021. In total, 72% (3 767) of all victims 
were women and girls.  2 940 cases  of domestic  violence were handled  with  a request  for a 
protection  order.  According  to  Article  130/a  Domestic  violence,  criminal  proceedings  were 
initiated  for  1 887  cases  and  682  perpetrators  were  arrested.  In  2022,  36  cases  of  women 
victims of sexual violence were treated in the Lilium centre, which is fully funded from the 
state  budget.  Currently,  there  are  local  referral  mechanisms  for  reporting  gender-based 
violence  in  all  61  municipalities  of  the  country.  However,  these  mechanisms  and  the 
rehabilitation  and  reintegration  programmes  for  vulnerable  women  need  to  be  reinforced. 
Social services continue to be donor-driven and often delivered by civil society organisations 
active in the field. A dedicated state budget and other resources are still needed.  

The legal and policy framework on the rights of the child increasingly reflects international 
standards and EU requirements. Coordination mechanisms need to be significantly improved 
to  ensure  full  implementation  of  the  legal  framework  in  the  areas  of  child  trafficking, 
cybercrime, child marriage, child sexual abuse and the right to healthcare and education. The 
ratification  of  the  Optional  Protocol  to  the  Convention  on  the  Rights  of  Persons  with 
Disabilities should be beneficial to this end. The 2021-2026 national agenda on the rights of 
the child (NARC) set out the strategic framework, in line with the national and international 
commitments in this area. Elimination of all forms of violence and child protection, including 
online is one of the four strategic goals of the national agenda. The systematic collection of 
reliable  and  comparable  data  disaggregated  by  age  and  sex  is  essential  for  evidence-based 
policy-making and for effective protection of children. 

The persistence of child marriage, driven by gender inequality, poverty and social exclusion, 
remains a matter of concern. The lack of official data means it is not possible to provide an 
accurate picture of the phenomenon, while the laws to protect minors from child marriage are 
generally  ineffective  or  applied  inconsistently.  However,  since  2021  the  government  has 
prioritised  addressing  child  marriage  in  its  budgeted  national  policy  framework,  and  the 
2021-2026  national  agenda  on  the  rights  of  the  child  contains  objectives  and  measures  to 
combat this practice.  

The 2021-2023 national de-institutionalisation plan included an economic reform programme 
with  a  financial  package  to  develop  alternative  childcare  services  and  to  close  social  care 
institutions.  However,  family  and  alternative  care  laws  are  often  inadequately  implemented 
and are not fully enforced. Additional efforts are needed to further implement and tackle all 
violations of children’s rights. 

Violence and sexual  violence, including  online, remains an area of concern.  In 2022, Child 
Protection  Units  managed  2 496  cases  of  children  in  need  of  protection  (mainly  cases  of 

37 

 
 
children at risk or victims of violence, abuse, neglect or exploitation). The number of child 
protection workers (241 in all 61 municipalities) remains far below the total number needed. 
Two  centres  with  emergency  services  for  child  victims  of  sexual  abuse  and  other  forms  of 
violence  have  been  set  up  and  are  operational  in  Fier  and  Shkodra.  A  comprehensive  legal 
framework on the status and responsibilities 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.  Albania  lacks  legislation  criminalising  travel  companies  that  facilitate 
opportunities to engage in the sexual exploitation of children. As a member of the Lanzarote 
Committee, Albania needs to provide cross sector training to professionals for the provision 
of  integrated  services  for  children  victims  of  sexual  abuse  and  other  serious  forms  of 
violence.  The  full  inclusion  of  unaccompanied  or  separated  foreign  minors  in  the  national 
child  protection  system  is  needed.  Child  labour  prohibition  needs  to  be  effectively 
implementing, and working conditions of young people need continuous monitoring. 

Since  December  2022,  a  new  support  programme  is  being  implemented  for  unemployed 
women with three or more children. Through this programme, the state budget covers social 
and  health  insurance  payments  based  on  the  minimum  wage.  Around  7 500  women  benefit 
from this programme. 

The  2022-2026  justice  for  children  strategy  enlarges  the  from  criminal  justice  to  equitable 
access to justice for all children and in all areas of law, seeking to consolidate child-friendly 
justice.  Its  full  implementation  would require more resources, investment,  coordination and 
accountability.  The  coordination  and  implementation  of  the  strategy  requires  a  dedicated 
service within the Ministry of Justice.  

For  children  in  conflict  with  the  law,  pre-trial  detention  remains  the  main  reason  for 
deprivation  of  liberty  (74%  of  cases).  With  the  reduced  number  of  magistrates,  pre-trial 
detention is unduly prolonged, negatively impacting the detained children and their prospects 
for rehabilitation and reintegration into the community. Albania should consider developing 
community-based  programmes  for  children  in  conflict  with  the  law  instead  of  the  planned 
large facility.  

The Albanian state police has created units in 16 police departments or stations where trained 
police  personnel  conduct  child-friendly 
interviews.  The  proper  maintenance  and 
uninterrupted functioning of these facilities require an adequate budget from the state police. 

Some  progress  was  made  on  the  rights  of  persons  with  disabilities.  The  reform  of  the 
biopsychosocial  assessment  is  now  implemented  country-wide,  with  respective  referral 
mechanisms yet to be put in place. 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 and gaps must be addressed. Albania needs to ratify the Optional 
Protocol to the Convention. More robust efforts are needed to address discrimination against 
persons  with  disabilities,  to  improve  overall  accessibility,  promote  employment  and  collect 
statistical  data.  De-institutionalisation  actions  are  taking  place,  but  need  to  be  further  taken 
forward at a sufficient pace. The quality of education for children with disabilities, especially 
children  with  a  hearing  impairment,  continued  to  cause  concern.  Numbers  of  assistant 
teachers in the pre-university education system continued to increase in 2022. However there 
is need to be further increased to ensure sufficient support in all schools, especially in rural 
and  remote  areas.  Additional  efforts  are  needed  to  provide  training  on  inclusive  education 
approaches for all teachers and on the early detection of disability. 

Discrimination against lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ) 
persons is still very prevalent in Albanian society, especially as regards access to healthcare, 

38 

 
 
education, justice, employment and housing. Members of the LGBTIQ community continue 
to experience physical aggression and hate speech, particularly on social media. Albania does 
not  have  legislation  recognising  civil  cohabitation  or  same-sex  marriage.  In  2022,  police 
officers received training on investigating hate crimes against LGBTIQ persons. The shelter 
for  homeless  LGBTIQ  persons  continued  to  provide  care,  support  and  advocacy,  but  state 
funding  remains  insufficient,  which  creates  uncertainty  for  the  continued  provision  of 
services.  The  12th  Tirana  Pride  took  place  peacefully  on  20  May  2023.  However,  public 
awareness  and acceptance of LGBTIQ  persons  remain low, particularly in rural areas.  Hate 
speech  and  discriminatory  language  in  the  media,  especially  online,    criminal  offences  and 
discrimination against members of the trans community persist and need to be addressed. In 
2022,  the  CPD  handled  one  case  of  hate  speech  against  the  LGBTIQ  community.  In  2023, 
two  new  cases  of  hate  speech  were  registered  and  are  being  processed.  According  to  civil 
society  organisations’  data  based  on  a  survey,  around  40%  of  people  in  the  LBGTIQ 
community  reported  incidents  of  discrimination,  of  which  only  20%  were  reported  to  the 
police. Of the total number of referred cases, only 15% were resolved.  

On  procedural  rights,  the  legal  framework  for  free  legal  aid  is  complete  and  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 2017 law. 
Despite  the  legal  framework  on  free  legal  aid  and  institutional  set  up,  few  children  benefit 
from  legal  aid  compared  with  the  number  of  children  involved  in  criminal  law,  family  and 
civil law and administrative law cases. The budget allocated for legal aid in 2022 amounted 
to around EUR 800 000, markedly higher than in 2021. The budget spent in 2022 is estimated 
at EUR 400 000 (up from EUR 245 739 in 2021). However, the dedicated state budget should 
be further increased to make the legal clinics fully operational. The staffing of the free legal 
aid  directorate  is  complete,  and  ten  centres  are  in  operation  across  the  country.  It  remains 
important to improve the collection, analysis and reporting of statistical data on free legal aid. 
Limited progress was made on other procedural rights. There was no progress on addressing 
remaining  issues  concerning  the  procedural  rights  of  suspects  and  accused  persons.  On  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 provided by courts, 
prosecutors’ offices and the police. On the presumption of innocence, there should be a clear 
legal prohibition and available redress, against public authorities making public references to 
guilt  in  public  statements  and  in  judicial  decisions,  other  than  those  on  guilt.  Moreover, 
redress should be ensured in the event of a breach of such prohibition.  

No  progress  was  made  during  the  reporting  period  on  the  adoption  of  the  three  remaining 
pieces  of implementing legislation related to  the  2017 framework Law on the  protection of 
national  minorities.  The  implementing  legislation  on  the  crucial  issues  of  free  self-
identification  of  national  minorities  and  the  use  of  languages  has  yet  to  be  adopted  in  line 
with  European  standards  and  should  be  open  to  wide  public  consultation.  Overall,  Albania 
needs  to  ensure  effective  implementation  of  the  legal  framework  on  the  rights  of  persons 
belonging to minorities. The capacities of the State Committee on National Minorities needs 
to be strengthened. The national population and housing census began on 18 September 2023. 
It  is  important  for  Albania  to  carry  out  the  national  census  in  a  smooth  and  transparent 
manner and in line with international standards. 

Limited  progress  was  made  on  the  social  inclusion  of  the  Roma  and  Egyptian  minorities. 
Monitoring data and reporting on the implementation of the national action plan for equality, 
inclusion  and  participation  of  Roma  and  Egyptians  in  Albania  (2021-2025)  are  not  yet 

39 

 
 
available. The institutional capacity of the Ministry for Health and Social Protection, which 
coordinates  Roma-related  policies,  remains  weak.  The  staffing  of  the  social  inclusion 
department  needs  to  be  strengthened.  Participation  of  Roma  and  Egyptians  in  the  local 
administration needs to be improved, and inter-ministerial, national and local coordination on 
Roma  inclusion  should  be  further  strengthened.  Roma  and  Egyptian  children  continue  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.  The  overall  employment  rate  of  Roma  and  Egyptians 
remains  very  low.  Roma  and  Egyptians  continue  to  benefit  from  a  5%  quota  through 
implementation  of  the  law  on  social  housing.  The  housing  situation  remains  a  significant 
challenge  due  to  often  poor  living  conditions  and  a  lack  of  property  title  deeds.  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 public services, which are increasingly digital. 
Additional  efforts  and  resources  are  required  to  accelerate  the  inclusion  of  Roma  and 
Egyptians, tackle anti-gypsyism, discrimination and educational and physical segregation, to 
promote participation of Roma, and to reduce the gaps with the rest of the population. 

On  citizenship  rights,  there  were  no  new  developments  in  the  reporting  period.  The  two 
programmes adopted in 2022 by the Council of Ministers 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,  remain  in 
force.  The  2020  Law  on  citizenship  provides  a  legal  basis  for  the  creation  of  an  investors’ 
citizenship  scheme  (‘golden  passports’).  In  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 roll out an investors’ citizenship scheme. In March 2023, the 
government  announced  the  suspension  of  initiatives  related  to  the  establishment  of  the 
investors’  citizenship  scheme.  As  a  candidate  country,  and  in  line  with  the  Commission’s 
recommendation  on  this  matter  in  its  sixth  report  under  the  visa  suspension  mechanism2, 
Albania  should  refrain  from  developing  such  a  scheme  which  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. 

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. 

Albania  is  in  between  some  and  moderate  level  of  preparation  to  align  with  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, however efforts need to be intensified. SPAK 
continued  to  achieve  a  good  level  of  cooperation  with  EU  and  member  state  law 
enforcement agencies. 

The track record on money-laundering and high-level corruption cases remains insufficient, 
and financial investigations need to be further developed. However, there was progress in the 
implementation  of  the  recommendations  of  Moneyval  and  of  the  Financial  Action  Task 

2 COM(2023) 730 final. 

40 

 
 
 
Force  (FATF),  as  in  June  2023  FATF  decided  to  do  an  on-site  visit,  which  took  place  in 
August and led to  Albania's delisting in  October. Nevertheless,  Albania should  ensure that 
any future VTC law  (including  potential criminal  amnesties) complies  with  the EU  acquis 
and  international  standards.  Albania  continued  to  show  commitment  to  counter  the  illicit 
production  and  trafficking  of  cannabis.  In  view  of  the  law  adopted  on  controlling  the 
cultivation and processing of cannabis and the manufacturing of its by products for medical 
and industrial  purposes,  Albania should ensure that  mechanisms are in  place to  effectively 
prevent cannabis from being diverted to unintended purposes. 

Albania has continued its positive engagement with the EU justice and home affairs agencies 
Albania has contributed to the management of the mixed migration flows towards the EU by 
cooperating  to  implement  the  EU  Action  Plan  on  the  Western  Balkans.  It  concluded  a 
revised Frontex Status Agreement in September. Referrals and access to asylum procedures 
remain to be addressed and there are still shortcomings in the return procedures. The number 
of asylum applications  lodged by Albanian nationals  in  EU Member States and Schengen-
associated  countries  remains  below  the  pre-pandemic  level,  but  further  increased  in  2022. 
Addressing this phenomenon still requires continuous efforts. As to immigration from third 
countries, Albania should take concrete steps to address the needs of unaccompanied minors. 
Albania’s visa policy should be further aligned with that of the EU.  

The  recommendations  for  2022  have  only  been  partially  addressed.  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;  

→  ensure  that  any  voluntary  tax  and  compliance  legislation  (including  amnesties)  is  in 
alignment with the relevant EU acquis and international standards set by Moneyval and 
the Financial Action Task Force (FATF); 

→  implement  the  asylum  law  effectively  and  improve  referrals  and  access  to  the  asylum 
procedure; address shortcomings in the return procedures; resume the regular and timely 
provision  of  data  on  migration  flows  and  asylum;  continue  to  address  the  issue  of 
unfounded asylum applications; and further align its visa policy with that of the EU. 

Fight against organised crime 

The country has some level of preparation in aligning with the EU acquis in this area. Some 
progress  was  made  in  meeting  last  year’s  recommendations.  Albania  continues  to  have  a 
good level of cooperation with EU Members States, Europol and Eurojust, and participated in 
a  number  of  international  law  enforcement  operations.  Some  progress  was  made  on  the 
seizure  and  confiscation  of  assets  linked  to  organised  crime,  which  must  continue  in  the 
future. Continued efforts are also needed to ensure more prosecutions and final convictions, 
especially at a high-level, and to set up the asset recovery office. More results are still needed 
in  countering  cybercrime,  money  laundering,  and  preventing  and  combating  trafficking  in 
human beings. All forms of child sexual abuse online should be criminalised and prosecuted. 

Last  year’s  recommendations  remain  valid,  therefore  in  the  coming  year  Albania  should  in 
particular:  

→  strengthen  the  fight  against  organised  crime,  including  through  continued  cooperation 
with  EU  Member  States  and  EU  agencies  (including  Europol  and  Eurojust),  expanding 
access  to  Europol’s  Secure  Information  Exchange  Network  Application  (SIENA)  to  all 
relevant law enforcement agencies; 

41 

 
 
→  set up without delay an asset recovery office, in alignment with the EU acquis, that will 
be  responsible  for  identifying  and  tracing  criminal  assets,  as  foreseen  by  national 
legislation;   

→  ensure  that  the  Special  Prosecution  Office  and  National  Bureau  of  Investigation  make 
efficient use of the databases to which they now have access and improve their criminal 
analysis and intelligence capability.  

Institutional set-up and legal alignment 

The Albanian State Police (ASP) has a total of 11 932 officers, equivalent to 260 officers per 
100 000  inhabitants,  compared  with  an  EU  average  of  335.3  per  100 000  inhabitants 
(Eurostat, 2019-2021). The Ministry of the Interior approved the organisational and structural 
reform  of  the  Albanian  State  Police  at  central  and  local  levels  in  April  2023  and  its 
implementation  began  in  May  2023.  In  the  context  of  the  reform,  ASP  committed  to 
addressing  the  high  turnover  of  its  staff.  After  the  transfer  of  responsibility  for  money 
laundering, terrorism financing, financial crimes and property investigations from the former 
Serious  Crime  Prosecution  Offices  to  the  District  Prosecution  Offices,  prosecutors  and 
judicial  police  officers  need  more  training.  Albania  should  provide  the  relevant  institutions 
with  adequate  human  resources,  including  external  expertise,  and  with  access  to  relevant 
databases and criminal intelligence systems to ensure efficiency in the fight against organised 
crime.  

The  Specialised  Anti-corruption  and  Organised  Crime  Structures  (SPAK)  employs  17 
prosecutors, out of the 20 approved by the High Prosecutorial Council. One prosecutor was 
temporarily transferred to SPAK from the General Prosecutor’s Office in March 2023 for the 
period of one year. A total of 74 administrative positions have been filled and 17 are vacant. 
The  work  of  the  financial  investigation  unit  in  the  SPO  started  after  the  recruitment  of  12 
investigators  in  April  and  May  2023,  while  the  recruitment  of  another  4  investigators  is 
ongoing.  The  60  investigators  of  the  National  Bureau  of  Investigation  (NBI)  and  several 
special  prosecutors  attended  trainings  on  different  topics  with  assistance  from  international 
actors (mainly the EU and USA). The number of databases to which the SPO and NBI have 
direct access has increased and now include the Civil Status System, the ASHK (database of 
the  State  Cadastre  Agency),  the  database  of  the  Prisons  Directorate,  the  Banking  Accounts 
Register, the SEMD (the Ministry of Justice’s electronic system to check the legal status of 
citizens),  the  database  of  the  Directorate-General  for  Road  Transport  (DPSHTRR),  the 
Albanian  notary  register,  the  beneficiary  property  register,  and  the  state  police  systems 
ADAM,  E-Fine,  Reports-Statistics  and  the  total  Information  Management  System  (TIMS). 
However,  a  solution  is  still  needed  to  enable  simultaneous  access  to  all  databases.  The 
recruitment of officers of the Judicial Police Services to the NBI should be preceded by the 
clarification of their functional roles and selection criteria, in line with the SPAK Law.  

The strategic framework  consists of the 2021-2025 strategy  against organised and serious 
crimes  for.  In  February  2023,  the  action  plan  for  2023-2025  was  adopted.  Iterative  annual 
action plans of the Albanian State Police on preventing and suppressing the criminal activity 
of  cultivating  narcotic  plants  have  been  adopted,  the  last  of  which  in  2023.  There  is  also  a 
cross-cutting  anti-corruption  strategy  for  2015-2023  and  its  action  plan  for  2020-2023.  A 
2021-2023  action  plan  on  the  fight  against  trafficking  in  human  beings  was  adopted  in 
November  2021.  A  strategy  for  controlling  small  arms,  light  weapons,  ammunition  and 
explosives and a 2022-2024 action plan to implement it are in place. 

The legal framework was further aligned with the EU acquis, especially in the field of anti-
money  laundering.  In  its  4th  enhanced  report  on  Albania,  released  in  June  2023,  Moneyval 

42 

 
 
concluded that  Albania  has improved its measures to  tackle money laundering and terrorist 
financing,  strengthened  the  transparency  of  its  legal  arrangements  and  improved  the 
regulation  and  supervision  of  non-financial  institutions.  However,  Albania  remained  on  the 
FATF list of jurisdictions under increased monitoring despite the FATF’s assessment that the 
country  has  substantially  completed  its  2020-2023  action  plan.  This  was  due  to  FATF 
concerns  linked  to  Albania’s  plans  for  the  adoption  and  implementation  of  a  voluntary  tax 
compliance law, including a criminal amnesty. In June 2023 FATF decided to propose an on-
site visit, which took place in August and led to Albania’s delisting in October. Nevertheless, 
Albania  should  ensure  that  any  future  VTC  law  (including  potential  criminal  amnesties) 
complies  with  the  EU  acquis  and  international  standards’.  (see  also  Chapter  4  –  Free 
Movement of Capital and Chapter 16 – Taxation).  

On the beneficial ownership (BO) register, which entered into force in 2021, sanctions are in 
place since July 2022 for subjects who fail to comply with BO registration obligations. The 
further  application  of  administrative  sanctions  against  relevant  entities  for  violations  of  the 
transparency obligations 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 made limited progress in aligning its firearms and explosives legislation with the EU 
acquis. It adopted several pieces of legislation to implement the previously amended law on 
weapons and transformed the firearms focal point from a virtual unit into a section within the 
criminal police department. Albania should further align its legislative framework, including 
as regards explosives precursors Increased efforts are needed on awareness raising, outreach 
and education on the dangers and risks related to the misuse, illicit possession, and trafficking 
of firearms/SALW as well as on reduction of illicit firearms through legalisation, voluntary 
surrender  and  deactivation.  Progress  is  necessary  in  establishing  the  required  infrastructure 
for the latter purpose.  

While Albania has a comprehensive legal framework for confiscating criminal proceeds, an 
asset recovery office has not yet been created, as required by the Law on the administration 
of seized and confiscated assets from 2019, and is now long overdue.  

In  the  fight  against  organised  crime  and  money  laundering,  Albania  needs  to  step  up  the 
implementation of the anti-mafia law on the preventive seizure and confiscation of assets  – 
including  non-conviction  based  confiscation  and  third-party  confiscation  –  to  freeze  assets 
related  to  criminal  activities  and  promote  their  social  reuse.  Albania  should  also  allow 
‘suspicious transactions reports’ to be presented as evidence in court.  

Albania is party to the Budapest Convention on Cybercrime and in February 2023 signed the 
Second  Additional  Protocol  to  the  Convention  on  enhanced  co-operation  and  disclosure  of 
electronic evidence. Based on the 2020-2025 national cybersecurity strategy, new legal and 
sub-legal acts on cybercrime have yet to be adopted. In July 2022, Albania was victim to a 
large-scale cyberattack, which led to the temporary disruption of most online public services 
(see also Chapter 31 – Foreign Security and Defence Policy and Chapter 10 – Information 
Society and Media). 

Legislative amendments to criminalise all forms of online child sexual abuse have yet to be 
adopted. 

Implementation and enforcement capacity 

Albania pursued its efforts to improve its track record on fighting organised crime. In 2022, 
54  new  cases  were  referred  to  the  prosecution  service  (up  from  41  in  2021).  Of  these,  18 
indictments for a structured criminal group were closed in 2022. A total of 98 people received 

43 

 
 
final convictions at appeal level (compared with 75 people in 2021).  

In 2022, the SPO increased the number of ex officio investigations to 28 (from 18 in 2021), 
out  of  257  new  criminal  proceedings  –  with  79  of  these  for  organised  crime.  SPAK 
participated  in  142  criminal  cases  involving  626  accused  persons,  compared  with  128 
criminal cases and 418 accused persons in 2021. In 2022, there were 55 final court judgments 
were  passed  down  and  207  defendants  convicted.  Of  these,  18  became  final  at  the  first-
instance  Special  Court  and  37  at  the  Special  Court  of  Appeal.  At  appeal  level,  15  criminal 
cases involved 47 defendants accused of organised crime, and 22 criminal cases involved 80 
defendants accused of corruption and other criminal offences. 

There was a fall in serious crime in 2022 with 3 816 new cases referred to both SPAK and the 
general  prosecutors (compared with  3 913 new cases  in  2021), with  an  increase in  referrals 
for money laundering (503 referrals in 2022 against 423 in 2021), organised crime offences 
(13 referrals more than in 2021) and cybercrime cases (65% increase in 2022). New referrals 
for  trafficking  of  arms  and  terrorism  remained  at  similar  levels  in  2022,  while  referrals  for 
drug  trafficking  dropped  to  2 876,  compared  with  3 078  in  2021.  For  serious  crimes,  820 
cases  resulted  in  indictments  in  2022,  compared  to  791  in  2021.  In  2022,  there  were  560 
people  with  final  convictions  for  serious  crimes  compared  with  375  in  2021.  The  use  of 
special investigative techniques and proactive investigations should be stepped up.  

On international police cooperation, Albania deployed a second liaison officer to Europol 
in February 2023. In 2022, there was an increased number of police operations carried out in 
cooperation with international partners: 90 of them were in the field of narcotics (up from 78 
in 2021) and 19 in the field of illicit trafficking (up from 14). 

In  2022,  16  joint  investigation  teams  (JITs)  were  operating.  Eight  JITs  started  in  2021  and 
eight in 2022. Most of the JITs (11) are in the field of narcotics.  

There  was  a  16.9%  increase  in  messages  shared  by  the  Albanian  State  Police  with 
international  partners  on  the  Secure  Information  Exchange  Network  Application  (SIENA), 
from  5 686  in  2021  to  6 645  messages  in  2022.  Between  January  and  August  2023,  the 
number of SIENA messages exchanged increased by 39.1% compared with the same period 
in 2022. An agreement was signed in January 2021 between the Albanian State Police and the 
customs authorities to allow access to SIENA. However, these connections have still not been 
made operational. This should be tackled as matter of urgency by the stakeholders involved. 
The Directorate-General for Taxation and the Financial Intelligence Unit have not taken the 
necessary steps to obtain access to SIENA. Access to SIENA is essential to allow the timely 
sharing of sensitive information with counterparts in EU countries.  

Albania  continued  to  cooperate  with  EU  police  services  through  the  European  Network  of 
Fugitive Active Search Teams (ENFAST), in which it has observer status.  

Albania  is  one  of  the  most  active  third  countries  participating  in 
the  European 
Multidisciplinary  Platform  against  Criminal  Threats  (EMPACT).  In  2022,  Albania 
participated in 119 operational actions and was action leader in two of them, the Operational 
Action Plans (OAPs) on Organised Property Crime and Cyberattacks. Albania was co-leader 
of  another  two  actions  in  the  OAP  on  criminal  finances:  money  laundering  and  asset 
recovery.  In  2023,  Albania  further  stepped  up  its  participation  in  EMPACT  and  is 
participating in 128 operational actions, while remaining the leader of two operational actions 
(in the OAP on Organised Property Crime and in the OAP on Cyberattacks) and a co-leader 
of two Operational Actions (in the OAP on Migrant Smuggling and in the OAP on Criminal 
finances, money laundering and asset recovery).  

44 

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

The cooperation with Interpol has continued to yield positive results, even though the number 
of messages received through Interpol’s I-24/7 global police communication channel fell by 
9.3% in 2022. Cooperation between the Albanian Security Academy and the EU Agency for 
Law  Enforcement  Training  (CEPOL)  is  well  established  and  based  on  a  working 
arrangement. However, the revision of the Working Arrangement has been pending for more 
than two years and no new National Contact Point has been appointed.  Albania continues to 
benefit  from  full  access  to  the  CEPOL  Exchange  Programme  and  to  participate  in  the 
CEPOL-led  Partnership  against  Crime  and  Terrorism  project  in  the  Western  Balkans. 
Authorities  should,  with  the  assistance  of  CEPOL  design,  prepare  and  organise  targeted 
training on counter terrorism and environmental crime. 

On  domestic  operational  capacity,  legal  and  institutional  reforms  have  strengthened  the 
capacities of the ASP’s Operational Directorate. During 2022, special investigative measures 
were used in 496 cases involving drug trafficking investigations. Albania should continue to 
use and develop special investigative techniques and proactive investigations. 

With EU assistance, in January 2023 the Security Academy was accredited for the very first 
time as an institution of  higher education, for a period of 5 years. A  few  recommendations 
will need to be addressed before the accreditation is renewed.  

Law  enforcement  authorities  need  to  be  more  proactive  and  systematic  in  addressing 
organised crime, especially when investigating large criminal networks. Special units within 
the police and the prosecution service have access to 40 national registers, but they still lack 
direct access to the electronic register of mobile phone subscribers and to IP addresses from 
internet service providers.  

Financial  investigations  do  not  systematically  accompany  criminal  proceedings  from  the 
beginning, and their effectiveness remains limited. The financial investigation techniques of 
the  police  and  prosecutors  still  need  improvement.  Seizures  of  assets  declined  in  2022. 
Albania  reported  about  EUR 46  million  worth  of  seized  assets  (compared  with  EUR  50 
million in  2021). The confiscation of assets increased in  2022 to EUR 5.8 million  in value, 
compared with EUR 150 000 in 2021. 

There  is  no  strategic  or  systematic  approach  to  identifying  and  confiscating  criminal  assets 
that  are  located  abroad  or  that  are  not  reachable.  Albania  should  implement  rules  on  the 
extended confiscation and precautionary freezing of assets, to effectively handle them and to 
prevent any loss of their economic value. 

Albania remains a country of origin, transit and destination of trafficking in human beings. 
Albanian  women  and  children  are  subject  to  trafficking  mostly  for  sexual  exploitation  to 
neighbouring  countries  and  EU  Member  States,  while  the  second  and  third  purposes  for 
trafficking  are  forced  labour  and  criminal  exploitation.  The  number  of  perpetrators  of 
Albanian  nationality  registered  in  the  EU  remained  high  in  2021,  with  Albanian  nationals 
being in the top-10 non-EU countries of origin of suspects (4th) prosecuted (9th) and convicted 
(7th)  persons.  Children  placed  in  institutions  and  children  from  the  Roma  and  Egyptian 
communities are particularly vulnerable to trafficking.  The Prosecution Office registered 11 
new criminal proceedings for trafficking in human beings in 2022, compared with 10 in 2021. 
The  number  of  final  convictions  remained  very  low  with  seven  final  convictions  from  two 
cases.  The  national  referral  mechanism  for  (potential)  victims  of  trafficking  remained 
functional.  Assistance  was  provided  in  all  cases.  In  2022,  112  victims  or  potential  victims 
45 

 
 
were  identified  and  assisted,  compared  with  159  in  2021.  The  identification  of  potential 
victims remains inadequate within Albanian territory and among vulnerable migrants entering 
the country and those accommodated in reception centres. Implementation of the 2021-2023 
national action plan on the fight against human trafficking should be supported by adequate 
funding  and  better  coordination.  NGO-run  shelters  remain  underfunded.  Investigations  and 
prosecutions are not conducted consistently with a focus on the victim. A gender-responsive 
approach to access to justice for victims should be promoted. Anti-trafficking efforts should 
increase, in particular by strengthening the capacity of border police to identify and refer to 
the prosecution service cases of trafficking and by strengthening the child protection system. 
Successful reintegration remains difficult because the state’s core protection, care and social 
services are insufficient.  

Prevention  efforts,  especially  on  strategic  communication,  should  be  stepped  up.  Dedicated 
awareness-raising campaigns should be developed to target communities at risk of trafficking 
in human beings and high-risk sectors and environments. The 116 006 hotline for victims of 
crime, including 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, especially on 
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  27  new 
criminal cases registered at the Prosecutor’s Office in 2022, a similar level to 2020, and 26 
people  received  final  convictions  in  2022,  compared  with  20  in  2021.  The  exchange  of 
information  between  different  national  stakeholders  (law  enforcement  agencies,  the 
prosecution service and judicial system) is still poor, which clearly jeopardizes the reception 
of complete data from the police and the prosecution service. 

Cases of cybercrime  and internet fraud increased in  2022, with  121 cases referred to  the 
Prosecutor’s  Office  (compared  with  79  in  2021)  and  with  3  people  receiving  final 
convictions. Albania should provide a more effective law enforcement response that focuses 
on  the  detection,  traceability  and  prosecution  of  cybercriminals.  Albania  should  raise 
encourage prosecutors to make greater use of the 24/7 network of contact points set up by the 
Council  of  Europe  Convention  on  Cybercrime.  The  ASP’s  cybercrime  unit  has  a  central 
forensic laboratory but should increase its capacity to deal with such cases. The capacities for 
investigating and prosecuting crimes against children committed through the internet need to 
be strengthened.  

Albania’s  economy  has  a  large  informal  sector  and  transactions  are  primarily  cash-based 
although  the  number  of  electronic  transactions  has  increased  substantially  in  recent  years. 
Crimes  that  generate  large  amounts  of  money  include  drug  trafficking,  tax  evasion, 
smuggling and trafficking in human beings. On money laundering, both the centralised bank 
account  register  and  the  beneficial  ownership  (BO)  register  are  in  place.  The  beneficial 
ownership register is now almost fully populated, comprising 99% of businesses and 94% of 
NGOs  by  April  2023  (see  also  Chapter  4).  Since  July  2022,  sanctions  are  in  place  for 
subjects  who  fail  to  comply  with  BO  registration  obligations,  and  317  fines  were  issued 
during the reporting period. Albania should monitor the further application of administrative 
sanctions  for  violations  of  the  transparency  obligations  by  entities  that  must  register.  A 
dedicated electronic register (PRESTO), which the General Prosecution Office introduced in 
July 2021 to ensure that all money laundering cases are tracked, is in full use. Albania also 
needs  to  align  its  legislation  with  the  acquis  on  combatting  money  laundering  by  criminal 

46 

 
 
law.  

In  2022,  503  cases  of  money  laundering  were  referred  to  prosecutors,  against  423  in  2021. 
The  number  of  people  with  final  convictions  for  money  laundering  rose  from  only  one  in 
2021 to nine in 2022.  

The  ASP’s  witness  protection  programme  has  worked  satisfactorily.  In  2022,  23  witness 
protection operations were performed, one less than in 2021. 

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 still does not have a dedicated national drugs strategy. Several security 
aspects  are covered by the 2021-2025 national strategy against organised crime and serious 
crime  and  its  successive  action  plans.  Under  the  strategy  against  organised  crime,  the  ASP 
adopts  annual  action  plans  on  preventing  and  cracking  down  on  criminal  activity  in  the 
cultivation of narcotic plants, the most recent of which was adopted in February 2023. More 
efforts  need  to  be  made  in  the  area  of  drugs  policy,  notably  by  adopting  a  national  drug 
strategy  covering  the  supply  and  demand  and  harm  reduction  aspects  and  by  fully  aligning 
legislation with the EU acquis and international practices. 

The  activity  of  the  working  group  established  in  May  2022  to  review  the  legislation  on 
narcotic drugs and psychotropic substances should be stepped up, in reaction to the changes 
made to the psychotropic substances lists by the International Narcotics Control Board. 

The establishment  of a National  Drugs Observatory (NDO) is  still pending.  Albania should 
set up an operational observatory with the necessary human and financial resources, which is 
crucial  for  implementing  a  comprehensive  data  collection  system  on  drugs,  coordinating  a 
drug information system, and for associating Albania to the EU’s Reitox network. 

Although  there  is  a  national  early  warning  system  (NEWS)  coordinator,  who  has  been 
appointed  by  the  Ministry  of  the  Interior,  and  Albanian  experts  have  undergone  training 
courses, there is still no operational NEWS on the detection of new psychoactive substances. 
The NEWS should be made operational without delay. 

Albania adopted a law on controlling the cultivation and processing of the cannabis plant and 
the production of its by-products for medical and industrial purposes in August 2023. Albania 
should continue to consult the EU on the envisaged implementing legislation and ensure that 
mechanisms  are  in  place  to  effectively  prevent  cannabis  from  being  diverted  to  unintended 
use.  

Implementation and enforcement capacity 

Albanian criminal groups continue to play a prominent role in the global traffic of drugs, in 
particular  the  trafficking  of  cocaine  from  Latin  and  South  America  to  Europe.  During  the 
reporting  period,  international  police  operations,  often  with  the  active  involvement  of  the 
Albanian State Police, have led to the dismantling of some of these groups.  

In  a  joint  operation  in  January  2023  between  Eurojust,  Europol,  Italian  and  Albanian 
authorities,  targeting  a  large-scale  drug  trafficking  network  responsible  for  trafficking 
cocaine,  cannabis  and  heroine  from  Albania  to  Italy,  30  suspects  were  arrested  across  31 
locations.  In  April  2023,  Spanish  authorities  dismantled  an  Albanian  criminal  group  that 
trafficked  cocaine  from  Latin  America  across  Europe.  17  people  belonging  to  that 
organisation were arrested in raids across Spain. Since the start of the operation in September 
47 

 
 
2021, nearly ten tonnes of cocaine seized in Italy, Belgium, Greece, Portugal, the Netherlands 
and Spain have been connected to that group. 

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 2022, 271 
police  operations  in  the  field  of  narcotics  took  place,  out  of  which  90  were  conducted  in 
cooperation  with  Albania’s  international  partners.  Albania  continues  to  implement  the 
working  arrangement  with  the  European  Monitoring  Centre  for  Drugs  and  Drug  Addiction 
(EMCDDA),  but  stronger  efforts  are  needed,  including  through  better  inter-institutional 
coordination,  in  increasing  its  reporting  capacity  on  drug-related  issues  in  line  with 
EMCDDA guidelines/protocols and in allocating sufficient resources for this task. 

Drug trafficking is the most common form of serious criminal offence in Albania, even if the 
number  of  identified  cases  has  slightly  decreased.  In  2022,  the  police  identified  2 956 
offences related to the cultivation, production, sale and trafficking of narcotics compared with 
3 168 in 2021, involving 3 690 alleged offenders (3 927 in 2021). Production and sale are by 
far  the  most  common  offences  related  to  drugs  (77%  of  all  cases).  Between  January  and 
August  2023,  the  number  of  detections  of  criminal  offences  related  to  drugs  increased  by 
10.9% over the same period in 2022.  

Albania should drastically increase its capacity to collect, store and report data for all drug-
related indicators and in line with EU standards, and should increase the capacities of the law 
enforcement authorities with regards to drugs. 

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. In 2022, 63 
flight missions were operated by the agency, surveying 1 106 744.8 hectares, allowing 41 000 
plants to be found and destroyed. This represents a decrease of around 55%  compared with 
2021,  but  is  still  higher  than  in  2017-2019.  In  addition,  the  ASP  continued  monitoring  by 
drones. The quantity of cannabis seized in Albania increased slightly from 3.6 tonnes in 2021 
to 3.76 tonnes in 2022.   

The  amount  of  cocaine  seized  declined  from  725 kg  in  2021  to  578 kg  in  2022,  which 
remains a very significant amount. Hashish and heroin seized have declined drastically from 
208 kg in 2021 to only 37 g in 2022 for hashish and from 81 kg in 2021 to 7 kg in 2022 for 
heroin. At the same time, there was  a large increase in the amount of MDMA seized, from 
7 g in 2021 to 480 g in 2022. 

The lack of safe and secure storage for seized drugs and drug precursors prior to destruction 
remains a concern. Albania needs to establish the legal base for an appropriate process for the 
destruction  of  precursors  and  the  practice  of  keeping  only  a  small  sample  as  material 
evidence for court proceedings (instead of the entire quantity seized). 

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 EU acquis in this area It is a party to all 
of the Council of Europe counterterrorism 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, including by increasing the involvement of financial institutions and other 
relevant  actors  and  through  effective  inspections,  in  line  with  the  FATF  action  plan.  Work 

48 

 
 
needs to continue on preventing the risk of radicalised groups using non-profit organisations 
to finance terrorism.  

In March 2022, the government adopted a new cross-sectoral strategy for 2023-2025 and two 
action plans to prevent violent extremism and fight terrorism. These replace the 2020 national 
cross-sectoral counterterrorism strategy and the 2015 national strategy on countering violent 
extremism  and  their  respective  action  plans.  The  funds  necessary  to  implement  the  action 
plans need to be budgeted.  

Albania has continued to make good progress in implementing the 2019 bilateral arrangement 
with  the EU on putting  the Joint Action Plan on  Counterterrorism for the Western Balkans 
into  practice.  A  revised  bilateral  arrangement  was  signed  in  December  2022  and  is  being 
implemented.  Albania  should  submit  the  first  report  on  the  implementation  of  the  revised 
arrangement. Work has advanced on creating a body or mechanism for joint national threat 
assessments  as  well  as  on  advancing  the  work  on  Critical  Infrastructure  Protection. 
According  to  the  revision,  the  Albanian  authorities should  draft  a  report  on  critical 
infrastructures  to  assess  the  current  situation  and  needs  both  from  a  legislative  and  an 
operational  point  of  view,  to  align  with  the  upcoming  EU  legislation  and  standards  and 
ensure the resilience of critical entities.  

The Counterterrorism Directorate of the ASP is the lead body on counterterrorism, under the 
jurisdiction  of  the  Special  Prosecution  Office  and  the  special  courts.  Its  resources  were 
increased  as  part  of  the  ASP  restructuring  in  2023.  The  State  Intelligence  Service  and  the 
Defence Intelligence and Security Agency are also active in the field. The ASP’s community 
policing  personnel  are  involved  in  preventive  and  early-warning  efforts.  The  Coordination 
Centre for Countering Violent Extremism is in charge of capacity-building and coordinating 
countering  violent  extremism  (CVE)  activities  across  government  institutions  and  oversees 
the implementation of the relevant parts of the national CVE and counterterrorism  strategy. 
Changes  in  the  centre’s  leadership  and  staff  have  repeatedly  led  to  the  loss  of  institutional 
memory and have negatively impacted the centre’s effectiveness. The centre should therefore 
create  the  necessary  internal  administrative  procedures  to  address  this  and  to  improve 
knowledge and information management. Last year’s efforts to improve the centre’s capacity 
to  prevent  violent  extremism  at  local  level  should  be  continued.  The  capacities  of  local 
communities  and  local  security  councils  to  prevent  terrorism  should  be  further  improved. 
Measures and capacity to  address  terrorist content  online should be improved, including  by 
aligning with the EU acquis and by adopting best practices.  

Implementation and enforcement capacity 

The police referred seven cases of terrorist offences and financing of terrorism to the Special 
Prosecution Office. One individual, an Iranian national, was convicted of terrorist offences in 
2022. The authorities repatriated 10 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 
Counterterrorism  Directorate  have  led  the  inter-institutional  work  on  reintegrating  and 
rehabilitating  them  in  an  effective  and  professional  manner,  with  the  Counterterrorism 
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, of whom 9 seem to be in prisons of the Syrian Democratic Forces.  At least 
45 Albanian nationals 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.  

49 

 
 
Regional  cooperation  and  the  exchange  of  sensitive  information  with  international  partners 
remains  satisfactory.  Albania  should  make  more  proactive  use  of  the  capabilities  of  the 
Europol  European Counter Terrorism  Centre  and should continue its  collaboration with  the 
Europol Internet Referral Unit. The country actively participated in the implementation of the 
Western  Balkan  counter-terrorism  initiative,  under  the  Integrative  Internal  Security 
Governance.  

Albania  should  continue  to  focus  on  the  disengagement,  reintegration  and  rehabilitation  of 
returnees  and  their  families  from  Syria,  and  on  the  investigation  and  prosecution  of  those 
suspected  of  criminal  offences.  It  should  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.  Furthermore,  it  needs  to  align  its 
legislative framework with the EU legislation on explosive precursors.  

Judicial cooperation in criminal and civil matters 

In  2022,  the  Albanian  Liaison  Office  to  Eurojust  registered  38  cases  at  the  request  of  the 
Albanian authorities, which represents  an 81% increase compared with  2021. 48 new cases 
were opened with the Albanian Liaison Office at the request of the competent authorities of 
EU Member States, only slightly fewer than in 2021 (51). Among non-EU countries, Albania 
had the fourth highest number of Eurojust cases in 2022. 

With  EU  assistance,  in  2022  Albania  doubled  its  participation  in  joint  investigative  teams 
(JITs). Out of 16 JITs, the majority (11) were pursued in the field of narcotics, 3 were in the 
field  of  computer  crime,  and  the  remaining  dealt  with  illicit  trafficking  and  economic  and 
financial crime. 

Albania  actively  participates  with  two  representatives  in  the  Eurojust  regional  project 
‘Increasing cross-border cooperation in criminal justice in the Western Balkans’ (WB CRIM 
JUST). This has led to greater interaction between prosecutors in the Western Balkans with 
the aim of coordinating their investigations.  

The  Albanian  liaison  prosecutor  was  appointed  to  Eurojust  in  January  2021  and  helped  to 
facilitate  judicial  cooperation  between  EU  and  Albanian  prosecutors  in  the  fight  against 
transnational organised crime. The continuity of this engagement was ensured in June 2023 
when the mandate of the liaison prosecutor posted to Eurojust was extended for another two 
and a half years, beyond the expiry of the EU funding for their posting at the end of 2023. 

The setting-up of joint investigation teams has been facilitated by EU financial support and 
the Law on judicial cooperation in criminal matters with foreign jurisdictions. Albania should 
also ensure that it provides its own financial resources to proactively set up more JITs.  

A  cooperation  agreement  between  the  European  Public  Prosecution  Office  (EPPO)  and  the 
General  Prosecution  Office  was  signed  in  July  2022  to  facilitate  cooperation  in  criminal 
matters and the exchange of information. A similar agreement between EPPO and SPAK was 
signed in June 2023.   

On  judicial  cooperation  in  civil  matters,  between  June  2022  and  March  2023,  Albania 
received  102  requests  for  mutual  legal  assistance  and  sent  out  72  requests.  On  judicial 
cooperation in criminal matters, in the same period, Albania received 144 requests and sent 
out  263  requests.  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  continue  to  improve  international 
cooperation,  the  timely  implementation  of  multilateral  instruments,  and  its  institutional 

50 

 
 
capacity.  

Legal and irregular migration  

Institutional set-up and legal alignment 

The Ministry of the Interior is the main actor in the field of migration. The main bodies under 
its supervision responsible for implementing migration policies are the Department of Border 
and  Migration  in  the  ASP  Directorate-General,  the  Directorate  for  Anti-Trafficking  and 
Migration Policies in the Ministry of the Interior and the Directorate of Asylum, Foreigners 
and Citizenship. The Ombudsperson and the child protection unit in the Ministry for Health 
and  Social  Protection  play  an  important  role  in  monitoring  and  providing  services  to 
migrants.  The  National  Agency  for  Employment  and  Skills  is  responsible  for  services, 
employment  programmes  and  vocational  training  programmes  for  foreigners,  stateless 
persons and refugees.  

The  legal  framework  on  migration  is  partially  aligned  with  the  EU  acquis  and  needs 
updating in line with developments on the EU side. Following the entry into force of the Law 
on Foreigners in November 2021, 23 out of a total of 29 pieces of implementing legislation 
have been adopted so far: two in 2021, 15 in 2022 and six in 2023.  

Albania has a readmission agreement with  the EU and implementing protocols are in  place 
with  12  Member  States.  Albania  and  Greece  have  still  not  concluded  an  implementing 
protocol. Draft readmission agreements have been sent by the Albanian authorities to several 
countries of origin3, so far to no avail. New draft readmission agreements with Georgia and 
Armenia have been drawn up and are to be followed up.  

The implementation of the national migration strategy and action plan for 2019-2022 came 
to  an  end  in  December  2022.  Out  of  129  measures  in  the  action  plan,  72  measures  are 
reported as implemented, 36 as partially implemented and 21 measures as not implemented. 
The  final  report  has  not  yet  been  completed.  In  March  2023,  an  inter-institutional  working 
group  began  preparations  to  draft  the  new  migration  strategy  for  2024-2030.  Several 
preparatory  workshops  with  national  stakeholders  were  organised  in  May  2023  to  identify 
priority objectives.  

Implementation and enforcement capacity 

Albania cooperated with the EU, EU Member States and its neighbours to implement the EU 
Action  Plan  on  the  Western  Balkans  presented  by  the  Commission  in  December  2022  and 
therefore contributed to the management of the mixed migration flows towards the EU. 

In 2022, there was a 34% decrease in the number of irregular migrants entering Albania, i.e. 
12 216 compared with 18 496 in 2021. This reduction could be attributed to the strengthening 
of  border  surveillance  and  control,  especially  in  the  Kakavije/Kapshtice  operational  area 
where the Frontex joint teams were deployed. As many as 32% of all migrants apprehended 
in 2022 were apprehended repeatedly. Of all arrivals, 235 were identified as unaccompanied 
or separated children. Unaccompanied minors travelling from Albania to EU Member States 
remain a source of concern.  

The three nationalities most represented remained Syrians, Afghans and Bangladeshis. 

In the first 8 months of 2023, 4 877 irregular immigrants were apprehended, down by 30.6% 
from  the  same  period  in  2022.  Regular  reporting  on  irregular  migration  flows  and  asylum 
should  be  ensured.  Since  the  summer  of  2022,  the  information  provided  to  the  EU  by  the 

3 Afghanistan, Iraq, Morocco, Algeria, India, Pakistan, Egypt, Bangladesh and Tunisia. 

51 

 
 
 
Ministry of the Interior has been sporadic.  

Reception capacities already increased in 2021 with the refurbishment of the Babrru National 
Reception  Centre  to  provide  up  to  250  beds  and  a  dedicated  family-friendly  space.  In  July 
2023 a new Temporary Reception Centre was inaugurated in Qafë-Botë. The total capacity of 
all reception facilities is approximately 570 beds. Albania does not have separate facilities for 
unaccompanied minors. The updated national  contingency plan for the possible arrival of  a 
substantial  number  of  migrants  and  asylum  seekers  still  needs  to  include  an  appropriate 
budget  allocation.  The  case  management  of  unaccompanied  children  is  not  handled  as  an 
integrated  process,  as  required  by  the  law  on  asylum.  Unaccompanied  minors  need  to  be 
included in the national child protection system. 

By  June  2023, the  overall  staffing  of  the  ASP’s Department  for  Border  and  Migration  had 
increased  by  almost  19%  in  comparison  with  2021.  As  a  result  of  the  organisational  and 
structural reform, there are now 1 977 employees at central and local levels, of whom 1 882 
are police officers and 95 are civilian staff. 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.  Border  and  Migration  Police  officers  should  increase  their  ability  to  identify 
vulnerable refugees and migrants with specific needs. Coordination with child protection and 
anti-trafficking  departments  should  also  improve.  Reports  of  migrants  being  returned  to 
Greece without adequate pre-screening have continued during the reporting period. Albania 
should address the shortcomings identified in its return mechanism for irregular migrants, in 
line with applicable legislation and with international obligations.  

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  2022,  23  860  Albanian  nationals  were  ordered  to  leave  and  9  655  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 the support of the Albanian authorities.  

The number of third country nationals voluntarily returned from Albania to their countries of 
origin remains low: six in 2022. Albania should pursue its efforts to increase returns to their 
countries of origins of migrants with no right to stay. 

In  August  2021,  Albania  started  temporarily  hosting  Afghan  evacuees.  By  the  end  of 
September 2023, 4 033 have been hosted in open facilities near the coastline 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. 
Around  90%  of  them  have  been  resettled  to  other  countries,  mostly  to  the  United  States 
(1 963),  Canada  (1  439),  UK  (106)  and  EU  Member  States  (77).  Since  March  2022,  the 
Albanian authorities have granted to refugees from Ukraine the right of residence in Albania 
for  a  period  of  up  to  one  year  without  needing  to  obtain  a  residence  permit.  They  can  also 
apply  for  a  temporary  protection  status.  By  the  end  of  August  2023,  70  909  Ukrainian 
citizens  had  entered  Albania,  while  62  631  had  left.  Most  of  them  are  staying  in  private 
accommodation. Only 33 have applied for and benefit from temporary protection status.  

Asylum 

Institutional set-up and legal alignment 

The  2021  Law  on  asylum  is  largely  aligned  with  the  EU  acquis  and  all  15  pieces  of 

52 

 
 
implementing legislation have been adopted. Appropriate consultations should continue with 
the  European  Union  Asylum  Agency  (EUAA)  on  the  practical  guidelines  for  their 
implementation  through  the  EUAA-Albania  cooperation  roadmap  and  through  practical 
cooperation under the EU regional support to protect sensitive migration systems. Although 
the law grants asylum seekers the right to access public services at the same level as Albanian 
nationals,  the  lack  of  alignment  with  other  legal  acts  and  lack  of  implementation  capacity 
prevents asylum seekers from accessing services effectively. An efficient implementation of 
the law to a high standard remains to be achieved and would require additional investment in 
administrative capacities and the overall development of a well-functioning asylum system. A 
revised  pre-screening  instruction  was  adopted  in  2022,  but  its  implementation  in  practice 
needs to be improved. 

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 2022, 125 people made a 
claim for asylum with the Border and Migration Police, compared with 85 in 2021. The fact 
that only 1% of all arriving migrants in 2022, a large majority of whom came from countries 
with high protection rates in the EU, were referred to asylum procedures, underlines the need 
to improve referrals and access to asylum procedures. 

In 2022 no applicant was granted refugee status, while 24 were granted subsidiary protection. 
Between  January  and  June  2023,  nine  people  were  granted  subsidiary  protection,  and  none 
was granted refugee status. 

On  asylum  procedures,  the  capacities  of  the  Border  and  Migration  Police  to  identify  and 
refer people with specific needs are still insufficient. The Directorate for Asylum, Foreigners 
and  Citizenship  has  been  reorganised  with  three  experts  charged  with  developing  asylum 
procedures,  one  head  of  sector  and  one  director.  The  staff  needs  training  to  develop  their 
skills  on  assessing  individual  claims,  particularly  regarding  information  on  the  country  of 
origin  and  for  cases  involving  vulnerable  people.  The  lack  of  qualified  interpreters  at  the 
temporary reception centres 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. Coordination between the actors involved should be improved.  

There are still shortcomings to be addressed in the implementation of return procedures at the 
border with Greece, in particular as regards adequate screening, safeguards including access 
to  information,  interpretation, a pre-return period of stay, and the right to  appeal, including 
for unaccompanied minors.  

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. 

The Commission’s sixth report under the visa suspension mechanism, published in October 
2023, concluded that Albania has taken action to address most of the Commission’s previous 
recommendations. Albania’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  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.  Moreover, a  reciprocal visa liberalisation 
agreement with China was signed in February 2023, which consolidates the earlier unilateral 

53 

 
 
decision of Albania granting visa free access to Chinese nationals. Albania also grants visa-
free access to third country nationals who have a resident permit in the United Arab Emirates 
for  at  least  10  years.  As  in  2022,  nationals  of  Bahrain,  Oman,  Qatar,  Saudi  Arabia  and 
Thailand, who need a visa to  travel  into the EU, also  benefited from  the seasonal  lifting  of 
visa requirements between April and December 2023. Following strong requests from the EU 
side, Albania has not extended seasonal visa-free access to the nationals of Egypt, India, and 
Russia in 2023, which is significant progress. Overall, the practice of temporarily lifting the 
visa  requirement  is  not  aligned  with  the  EU  acquis.  Continuing  to  progressively  align 
Albania’s visa policy to the EU’s is essential, in particular with regard to countries presenting 
migration or security risks. 

According to Eurostat data, the number of Albanian citizens lodging asylum requests in EU 
Member  States  increased  by  16%  in  2022  compared  with  2021  (from  11 300  to  13 100 
applications), but  still remains below the pre-pandemic level (20 415 in 2019). The asylum 
recognition  rate  increased  slightly  from  5.7%  in  2021  to  6.3%  in  2022  (9%  in  2021  and 
10.6% in 2022, including people with humanitarian status). 

In  2022,  6 991  Albanian  nationals  were  refused  permission  to  exit  Albanian  territory  at 
border crossings, which is a 33% increase on 2021. The number of minors refused permission 
to  exit  rose  by  19%,  from  343  in  2021  to  423  in  2022.  In  the  first  8  months  of  2023,  the 
number of minors refused exit remained stable compared with the same period in 2022. This 
increase  can  be  attributed 
the 
implementation  of  the  relevant  legislation.  Awareness-raising  activities  should  continue  as 
well as addressing the underlying reasons, and dialogue and structured cooperation with the 
EU Member States  most affected by unfounded asylum applications by Albanian nationals. 
The Commission is monitoring the trend very closely in the framework of the visa suspension 
mechanism and issued a recommendation to Albania on this matter in  its sixth report under 
the visa suspension mechanism. 

the  strengthening  of  border  crossing  controls, 

to 

Greater  attention  should  be  paid  to  the  reintegration  of  returnees,  especially  the  most 
vulnerable  people.  Migration  counters  that  have  been  set  up  in  municipalities  should  be 
formalised and improved to facilitate the reintegration of returnees and more police officers 
should continue to be trained to escort returnees to Albania.  

Schengen and external borders 

Institutional set-up and legal alignment 

The legislative framework for the management of Albania’s external borders is not yet fully 
aligned  with  EU  standards,  however  its  2021-2027  integrated  border  management  strategy 
and  2021-2023  action  plan  are  broadly  aligned.  The  Law  on  border  control  that  introduced 
rules  on  advance  passenger  information  and  passenger  name  records  (PNR)  into  Albanian 
legislation  is  not  aligned  with  the  EU  acquis.  A  passenger  information  unit  was  created  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  under  the  current  legal 
framework.  

Implementation and enforcement capacity 

Albania  has  committed  to  modernise  its  border  infrastructure  and  improve  border 
surveillance. With EU  assistance, Albania has improved radar coverage for the surveillance 
of  the  blue  border.  Efforts  need  to  continue  to  complete  the  coverage  and  to  create  a 
command-and-control  room  to  collect  situational  information  from  the  regional  level  and 
allow coordinated intervention from the central level. Albania should establish a risk-analysis 

54 

 
 
system based on the common integrated risk analysis model developed by Frontex.  

In 2022, 418 criminal offences were recorded for assisting illegal border crossings (29 more 
than in 2021) and 631 offenders were prosecuted, of whom 321 were arrested or detained.  

As  part  of  the  organisational  and  structural  reform  of  the  Albanian  State  Police,  an 
investigative  sector  has  been  created  in  the  border  and  migration  police  with  the  aim  of 
preventing, 
including 
people-smuggling and trafficking in human beings. This is a very positive development. 

cross-border 

countering 

detecting 

activity, 

illegal 

and 

Albania  continues  to  participate  actively  in  the  Western  Balkan  Risk  Analysis  Network. 
Operational  cooperation  with  neighbouring  countries  continued  to  be  good.  In  2022,  in 
accordance  with  the  relevant  protocols,  a  total  of  976  joint  patrols  were  carried  out  with 
border police officers from Montenegro, Kosovo*, North Macedonia and Italy’s Guardia di 
Finanza; up from 920 in 2021. At the green border, 592 joint patrols were carried out, while 
384  joint  patrols  were  carried  out  at  the  maritime  border  with  Italy.  A  joint  police  and 
customs cooperation centre with Greece was inaugurated in the Kakavije border area in April 
2023.  Furthermore,  an  agreement  with  Montenegro  was  signed  in  February  2023  on  the 
opening of a joint border crossing point at Shen Nikolla-Pulaj and an implementing protocol 
with  North  Macedonia  for  the  common  border  crossing  point  at  Qafe  Thane/Kjafasan  was 
signed in November 2022. 

The successful implementation of Frontex Joint Operation Land and Albania Sea continued 
in  2022  under  the  current  EU-Albania  Status  Agreement.  The  updated  EU-Albania  Status 
Agreement was signed in September 2023 and allows teams from the European Border and 
Coast Guard standing corps with executive powers to also be deployed at non-EU borders. In 
June  2023,  the  Albanian  Ministry  of  Interior  and  Frontex  signed  a  memorandum  of 
understanding on a complaints mechanism on the protection of fundamental rights.  

Albania  needs  to  ensure  that  the  personal  identification  secure  comparison  and  evaluation 
system (PISCES) is operated in alignment with the EU acquis on personal data protection. In 
2022, the Department for Border and Migration undertook 14 serious disciplinary measures 
against border police officers for corruption and abuse of office, slightly fewer than in 2021 
(16). 

The production and delivery of Albanian biometric documents was transferred from a foreign 
private  company  to  a  newly  established  state  agency  in  August  2023.  Albania  will  need  to 
ensure  that  it  continues  to  respect  the  international  standards  and  procedures  for  producing 
and issuing secure identification documents. 

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

55 

 
 
 
 
 
 
 
 
 
 
 
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. 

2.3.1. The existence of a functioning market economy 

Albania  is  between  a  moderate  and  a  good  level  of  preparation  in  developing  a 
functioning  market  economy  and  made  some  progress  in  this  area.  Despite  the  economic 
fallout  from  Russia’s  war  of  aggression  against  Ukraine,  the  Albanian  economy  showed 
resilience and GDP growth remained strong in 2022. Inflation increased to above the target in 
2022  but  remained  single-digit  and  then  decreased  in  early  2023.  The  strong  recovery 
supported labour market performance, giving Albania the highest participation rate and one 
of the lowest unemployment rates in the region. Supported by strong revenue growth and a 
large increase in nominal GDP, the public debt ratio fell much more than expected, to below 
its pre-2019 crisis level, but remains among the highest in the region. Long-awaited reforms 
were  launched  to  improve  investment  expenditure,  planning  and  execution,  and  the 
monitoring of fiscal risks continued to improve, but weaknesses persist in both areas. There 
was  some  progress  on  revenue-related  reforms  but  plans  to  adopt  a  medium-term  revenue 
strategy have been abandoned, while a low revenue ratio continues to impede much needed 
investments.  The  financial  sector  remained  stable  and  continued  to  expand  but  financial 
intermediation  remains  low.  The  business  environment  benefitted  from  a  higher  level  of 
digitalisation  of  public  services.  However,  challenges  related  to  a  large  informal  economy 
and  a  shortage  of  labour  with  relevant  skills  persist.  Consultations  of  the  public  by  the 
government  did  not  improve  significantly.  Last  year’s  recommendations  to  improve  the 
functioning of the market economy were partly implemented, and remain partly valid. In the 

56 

Table 1.1:202020212022Albania - Key economic figuresGDP per capita (% of EU-27 in PPS)1)30313234Real GDP growth 2.9-3.38.94.8Economic activity rate of the population aged 15-64 (%), total66.169.169.373.2      female57.361.261.466.8      male75.077.177.380.0Unemployment rate of the population aged 15-64 (%), total15.012.212.111.3      female14.112.412.411.7      male15.712.111.810.9Employment of the population aged 15-64 (annual growth %)3.3-1.9-0.44.8Nominal wages (annual growth %)2)2.9*2.76.38.2Consumer price index (annual growth %)1.71.62.06.7Exchange rate against EUR133.7123.7122.5119.0Current account balance (% of GDP)-8.2-8.7-7.7-6.0Net foreign direct investment, FDI (% of GDP)8.26.76.56.7General government balance (% of GDP)-2.8-6.7-4.6-3.7General government debt (% of GDP)69.874.374.564.6Notes: 1) Eurostat2) average gross monthly wages, average of 2015-2019 Source: national sources2014-19 average 
 
 
coming year, Albania should in particular: 

→  achieve a non-negative primary balance and continue to reduce the public debt ratio while 
providing targeted support to vulnerable households and firms if needed, and continue to 
reduce arrears and use the regular revision process for budget amendments;  

→  complete procedures  to  fully establish the National  Single Project  Pipeline and advance 
the necessary legal amendments to fully integrate public-private partnerships (PPPs) into 
it,  and  use  a  systematic  risk  assessment  when  deciding  on  new  state  guarantees  and 
onlending;  

→  adopt measures to increase tax revenue as a share of GDP in a growth-friendly way, while 

taking into account the results of a broad public consultation on tax policies. 

Economic governance 

Albania  continued  to  pursue  stability-oriented  economic  policies.  The  authorities 
supported  households  and  businesses  and  state-owned  electricity  utilities  to  cushion  the 
impact  of high  energy and food prices, while complying  with  the fiscal  rules. After a large 
decrease  in  2022,  the  public  debt  ratio  fell  below  its  pre-pandemic  level.  The  government 
continued to use specific legal (‘normative’) acts instead of the regular legislative procedure 
to amend the 2022 budget, but on fewer occasions than in 2021, and none in the first half of 
2023. Albania submitted its 2023-2025 economic reform programme (ERP) to the European 
Commission at the end of January 2023, in which it underlined its plan to achieve a positive 
primary  balance  already  in  2023.  Parliament  approved  the  2023  budget  on  24  November 
2022 and the ERP on 5 February 2023. 

Albania partially implemented the policy guidance jointly agreed at the Economic and 
Financial Dialogue between the EU and the Western Balkans and Türkiye in June 2022. 
Fiscal  consolidation  progressed,  and  control  of  arrears  and  fiscal  risks  improved,  but  there 
was limited progress on revenue-related reforms. Business support services were broadened 
and  measures  against  informal  employment  were  better  coordinated,  but  information  about 
the actions against informality and their effects remained limited. Labour market analysis and 
the  preparations  for  implementing  the  Youth  Guarantee  progressed  and  reimbursements  for 
medical costs increased, as did ad-hoc expenditure on social protection. Albania still has not 
ensured  the  necessary  sustained  and  systematic  increase  of  expenditure  on  social  services, 
human development and innovation. 

Macroeconomic stability 

Albania’s  economy  continued  to  show 
three  consecutive 
resilience,  despite 
shocks.  Albania’s 
real  GDP  growth 
averaged  2.7 %  in  2013-2018.  Though  the 
economy  was  hit  by  the  2019  earthquake 
and the COVID-19 crisis, GDP contraction 
was  less  than  expected  in  2020  (3.3 %), 
followed by a strong economic recovery in 
2021  (8.9 %),  which  extended  into  2022 
(4.9%  GDP  growth)  despite  the  shock  due 
to  Russia’s  war  of  aggression  against 
Ukraine.  Solid  increases  in  private  investment  and  very  strong  private  consumption  growth 
led  to  higher-than-expected  economic  growth  in  2022,  outweighing  shrinking  public 
investment and consumption and a negative contribution of net exports to growth. A robust 

57 

-6-4-20246810201720182019202020212022Graph 1.1: Albania -Real GDP growth and contributionsPriv. cons.Gov. cons.GFCFStocksNet exportsReal GDP growthSource: WiiW, INSTAT, own calculations% y-o-y 
 
rise  in  private  consumption  was  supported  by  continued  strong  employment  and  wage 
growth.  Construction,  manufacturing  and  services  were  the  main  drivers  of  growth  on  the 
production  side,  partly  due  to  buoyant  tourism.  These  macroeconomic  trends  largely 
continued  in  the  first  quarter  of  2023,  albeit  at  a  slower  pace,  except  for  growing  public 
consumption and investment.  

Convergence  with  EU  income  levels  stagnated  in  2014-2019  with  GDP  per  capita  (at 
purchasing power parity) remaining at 30% of the EU average, but rising to 32% in 2021 and 
34% in 2022.  

Despite  surging  import  prices,  the  current  account  deficit  decreased  in  2022.  Sharply 
increased 2022 import prices widened the goods trade deficit, despite currency appreciation 
and strong growth in goods exports. However, a 30% surge in the services trade surplus, to 
13% of GDP, contributed to a 1.7 pps decrease in the current account deficit to 6% of GDP in 
2022. The share of remittances in GDP continued to fall, from 4.9% in 2021 to 4.5% in 2022, 
resulting in a decrease in the secondary income surplus to just above 6% of GDP in 2022. In 
the  first  half  of  2023,  the  current  account  deficit  continued  to  fall  by  about  27%  compared 
with the first half of 2022, driven by a continuing surge of the trade surplus in services and by 
the growth of remittances.  

Foreign direct investment (FDI) inflows grew strongly and financed the current account 
deficit  in  2022.  The  completion  of  large 
energy  projects  led  to  a  declining  trend  in 
FDI  inflows  after  peaking  above  8 %  of 
GDP in 2015-2019, but they grew by 19% 
in 2022, which pushed the ratio up to 6.7% 
of  GDP  in  2022  from  6.4%  in  2021.  FDI 
inflows  again  fully  financed  the  current 
account  deficit  in  2022,  after  falling  short 
of  it  in  2020  and  2021.    Public  external 
debt  fell  by  3.3%  nominally  (in  terms  of 
GDP  from  32%  to  26.1%)  and  overall 
external  debt  dropped  by  10 pps  to  54.6%  of  GDP  in  2022.  Using  buffers  of  the  late  2021 
Eurobond and in view of the less favourable conditions on the capital markets, the Albanian 
government only issued its 6th Eurobond in June 20234, which increased public external debt 
by  5.2%  in  the  second  quarter  of  2023  compared  with  the  second  quarter  of  2022.  Foreign 
exchange  reserves  have  consistently  increased  over  recent  years  and  remained  at  about 
EUR 5 billion throughout 2022 and until May 2023, before rising to 5.6 billion in July 2023, 
following two interventions in the foreign currency market to address a currency appreciation 
hike-.  The  reserves  continued  solidly  covering    7  months  of  imports  of  goods  and  services 
and over five times the short-term external debt.  

Inflation rose significantly, though less than in Albania’s peers, and the Bank of Albania 
began to tighten its monetary policy stance. Annual inflation averaged 2% in 2021 but rose 
sharply  from  late  2021  due  to  rising  international  food  and  energy  prices  to  an  average  of 
6.7% in 2022. Nevertheless, it remained the lowest in the region, helped by subsidised retail 
electricity  prices  and  the  appreciation  of  the  lek  against  the  euro,  mostly  due  to  significant 
external  inflows  from  tourism  and  FDI.  In  response  to  the  inflation  rate  exceeding  the  3% 
target, and the broadening of domestic demand-driven price pressures, the Bank of Albania 
(BoA) raised the policy rate by 2.75 pps in several steps to reach 3% in March 2023. Inflation 

4 EUR 600 million, 5-year maturity, with a coupon of 5.9%. 
58 

-20-1001020182019202020212022Graph 1.2: Albania -Current account selected components and FDI Workers' remittances balanceGoods and services trade balanceCurrent account balanceNet FDI% of GDPSource: IMF and Central Bank of Albania 
 
 
has been slowing since November 2022, to 4% in August 2023 as price increases for food, 
energy  and  transport  decelerated,  appreciation  of  the  Albanian  lek  against  the  euro 
accelerated (from 2.8% in 2022 to 7.8% year-on-year in the January to August average 2023) 
and financial market conditions tightened.  

In  2022,  high  GDP  and  revenue  growth 
helped  to  lower  the  public  debt  ratio 
below  its  pre-pandemic  level.  The  fiscal 
deficit  was  below  2 %  of  GDP  in  2015-19, 
but  increased  sharply  to  6.8 %  of  GDP  in 
2020, due to the impact  of the pandemic. A 
strong economic rebound and rising inflation 
fostered  high  revenue  growth,  contributing 
to the fiscal deficit falling to 3.7% of GDP in 
2022,  despite  significant  energy-related 
spending.  Exceptional  support  to  the  state-
owned electricity provider and vulnerable groups was partly offset by savings on interest and 
personnel expenditure, and under-execution of foreign financed investments. As a result, the 
overall annual expenditure increase was moderate at 2.1%. The high GDP denominator and a 
small nominal decrease in public debt led to a 10 pps public debt ratio decrease from its peak 
of 74.5 % in 2021 to 64.6 % in 2022. For 2023, a fiscal deficit of 2.5% of GDP and a positive 
primary  balance  are  foreseen.  The  exceptional  provision  for  budget  support  to  state  owned 
energy companies in the budget was not needed, and the funds are planned to be reallocated.  

The  tax  revenue  ratio  remains  low,  despite  improvements  in  the  tax  administration. 
Increasing social contributions and local taxes pushed the overall tax revenue ratio upwards 
to 25.7% of GDP in 2017, but since then it decreased to 25.4% of GDP in 2022, which is low 
compared  to  peers.  It  is  also  low  given  the  need  for  significant  investment  in  physical  and 
human capital.  Improvements in  the tax administration, and substantial  reforms  such  as the 
introduction  of  automated  electronic  VAT  invoicing  (‘fiscalisation’),  excise  harmonisation 
and indexation and digitalisation were successfully  implemented in  the last three years, but 
have  not  yielded  an  increase  of  the  revenue  ratio.  The  tax  revenue  structure  has  remained 
unchanged  over  the  last  decade,  characterised  by  a  heavy  reliance  on  revenue  from 
consumption  and  low  revenue  from  capital  taxation  and  social  contributions  (the  average 
social contributions revenue of 5.8% of GDP are the second lowest in the region). The 2023 
amended income tax law, which takes effect in 2024, will broaden the tax base bringing self-
employed professionals into the personal income taxation. Following a suspension of public 
consultations  on  the  long-planned  medium-term  revenue  strategy  (MTRS)  in  2022  the 
authorities  have  undertaken  a  review  and  update  of  the  2020  draft,  which  should  aim  for  a 
broader tax base and a higher revenue mobilisation in a comprehensive and systematic way 
with public buy-in.   

Weaknesses  in  the  management  of  public  investment  persist,  but  new  initiatives  have 
been launched to address them. Though public investment spending has increased strongly 
since  2017,  partly  driven  by  post-earthquake  reconstruction,  it  remains  backloaded  and 
generates increasing arrears in the last quarter of the financial year. In 2021 and 2022 these 
were  partly  settled  with  year-end  budget  amendments,  using  unexpected  excess  revenue. 
However, structural weaknesses in investment planning and execution persist, partly because 
the selection and monitoring of public investment projects remains fragmented across types 
of  investment  and  government  agencies  that  use  different  procedures.  In  addition,  national 
legislation still separates investment planning for public-private partnerships (PPPs) from that 

59 

020406080-8-404201720182019202020212022Graph 1.3: Albania -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public debt (rhs)Source: National sources% ofGDP 
 
of  conventional  projects.  Post-earthquake  reconstruction  spending  lacked  transparency  as  it 
was not integrated into the regular public finance procedures. Reforms launched at the end of 
2022  aim  to  harmonise  and  improve  the  evaluation  procedures  for  various  types  of  public 
investment projects and resulted so far in setting up a national single project pipeline, which 
also strengthens project prioritisation in line with fiscal space and  can contribute to reducing 
arrears. An amendment to the PPP-legislation is still necessary for integrating PPPs into those 
new procedures.  

Fiscal  space  improved,  and  the  overall  macroeconomic  policy  mix  was  appropriate  in 
the face of high inflation. Good fiscal performance and a reduction in the debt-to-GDP ratio 
has  improved  the  fiscal  space,  but  vulnerabilities  remain  significant  given  the  exposure  to 
external  shocks  and  continued  high  debt  ratio  (in  comparison  to  regional  peers).  The  fiscal 
response  to  the  energy  shock  mainly  consisted  of  continuing  to  subsidise  the  regulated 
electricity  price  for  all  households  and  SMEs,  though  it  could  have  been  better  targeted  to 
reduce fiscal costs and to include incentives for investments in energy-saving. Nevertheless, 
the overall spending restraint supported the 2022 monetary policy stance and contributed to 
dampening inflationary pressures. The macro-fiscal policy mix was generally appropriate to 
address the high inflation rate and to support economic stability and recovery. 

Functioning of product markets  

Business environment 

Business  satisfaction  with  public  services  is  improving,  but  there  are  increasing 
concerns  about  labour  shortages.  The  2022  Balkan  Business  Barometer,  an  annual 
independent  survey  of  businesses  in  the  region,  shows  that  businesses’  satisfaction  with 
public  services  improved  in  2021  and  2022,  supported  by  a  higher  level  of  digitalisation. 
More  public  services  are  now  available  online,  including  31  tax  services  which  allow 
taxpayers  to  pay  taxes  online  to  a  certain  extent.  In  addition,  applications  for  all  business 
licences can be made online. Efforts to set up a complete and digitalised cadastre within the 
next  two  years  are  progressing,  but  there  are  still  delays  and  discrepancies  as  regards  the 
information  on  property  deeds.  Improved  digital  public  services  help  to  reduce  corruption, 
but  irregularities  in  public  procurement  procedures  are  still  perceived  as  an  obstacle  for 
businesses,  although  implementation  of  these  procedures  is  improving,  and  the  number  of 
unsolicited  proposals  and  new  PPPs  have  decreased.  The  introduction  of  cash  limits  for 
business-to-business  transactions  is  one  measure  taken  to  address  the  significant  level  of 
informal  economic  activities  that  add  to  unfair  competition.  There  is  a  growing  perception 
that  difficulties  in  recruiting  skilled  labour  is  becoming  an  obstacle  to  business  and 
entrepreneurs are increasingly demanding government measures to help retain workers and to 
provide incentives for the return of the diaspora.  

Mixed  progress  on  improving  legal  certainty  for  businesses  and  making  public 
consultations  more  effective.  The  adoption  of  the  new  ‘Unified  Law  on  Investment’, 
originally planned to be adopted in 2020, is reportedly postponed to end-2023, delaying the 
expected  improvement  in  legal  security  for  investors.  The  mandatory  publication  of  the 
government’s  draft  documents  on  the  government’s  online  platform  increased  transparency 
although  its  use  for  public  consultation  has  remained  very  limited  and  actual  consultations 
must still rely on ad hoc outreach by government institutions. In this context, Albania made 
progress by mapping the stakeholders of the line ministries at the end of 2022 to notify them 
about public consultations in their area of interest. A new “council of enterprises”, composed 
of public and private sector representatives, has been set up to improve consultation of SMEs. 
In  February  2023,  the  Financial  Action  Task  Force  (FATF)  reported  that  Albania  largely 
completed  the  implementation  of  the  agreed  action  plan  on  anti-money  laundering  and 
60 

 
 
reforms to counter the financing of terrorism. In June 2023 FATF decided to propose an on-
site visit, which took place in August and led to Albania’s delisting in October. Nevertheless, 
Albania  should  ensure  that  any  future  VTC  law  (including  potential  criminal  amnesties) 
complies with the EU acquis and international standards’.  

State influence on product markets  

High food and energy prices triggered increased government support but intervention 
in  the  price-setting  mechanism  was  deemed  unconstitutional.  Rising  food  and  energy 
price  led  Albania  to  adopt  a  financial  support  package  (the  ‘social  resilience  package’)  in 
March  2022  to  support  the  transport  sector,  farmers  and  vulnerable  households  and  to 
increase  the  budget  for  subsidised  electricity  prices5.  A  sovereign  guarantee  scheme  for 
businesses  exposed  to  rising  food  prices  was  also  adopted.  In  April  2022,  the  government 
created  two  temporary  boards  (‘Transparency  Boards’)  with  government  and  private  sector 
representatives,  which  set  regularly  adjusted  ceilings  for  the  wholesale  and  retail  prices  of 
selected food commodities and fuels. However, in 2023 the Constitutional Court decided that 
these boards were not in line with the constitution and so had to be abolished. In 2023, a one-
time windfall tax was introduced on the extraordinary profits in 2022 of the energy providers 
in  the  liberalised  market.  The  government  announced  relief  measures  for  exporting 
businesses that  are  affected  by  the  strengthening  of  the  lek,  a  temporary  financial 
compensation  for  businesses  in  agriculture  and  fishery,  which  are  struggling  with  the  25% 
increase of the minimum wage that took effect in April, and plans for a sovereign guarantee 
to support the liquidity needs of larger companies faced with high inflation, wage increases 
and currency appreciation. 

Privatisation and restructuring 

The state’s presence in the economy slightly increased but remained limited overall. In 
2022,  Albania  reported  State  aid  of    0.3%  of  GDP  mostly  in  form  of  tax  exemptions  and 
grants,  excluding  support  to  agriculture.  According  to  recently  established  sector  accounts, 
the public sector’s share of gross value added of the economy averaged about 10.6% in 2015-
2019 and slightly increased to 11.1% in 2020. The proportion of public sector employment6 
to total employment decreased from 16.3% in 2014 to 14.3% in 2017, before picking up to 
15.3 %  in  December  2021.  According  to  a  list  of  public  sector  institutions,  the  central 
government  of  Albania  is  the  majority  or  full  owner  of  76  central  state-owned  enterprises, 
mostly in transport infrastructure and energy, in  addition to enterprises in water supply and 
sewerage in local government or municipal ownership. Restructuring and liquidation of state-
owned  enterprises  continued,  and  in  2022  a  new  nomination  framework  for  the  boards  of 
State-owned enterprises  was adopted by the Council of Ministers. In 2021, the state-owned 
Albanian Investment Corporation, which develops dormant state assets by mobilising private 
capital,  started  to  review  state  assets  and  formalise  partnerships  with  governmental 
institutions, and it has now prepared 7 proposals.  

Efforts continued to improve the monitoring of state-owned enterprises (SOEs) and the 
associated  fiscal  risks.  State-owned  energy  utilities’  dependence  on  regular  public 
guarantees and loans remains a source of fiscal risks. This is aggravated by the hydropower 
sector’s vulnerability to rainfall fluctuations and to climate change risks, for which mitigation 
measures are still underdeveloped. Fiscal risk statements regularly accompany the budget and 
have been expanded since 2021 to include disaster risks and the financial assessments of an 

5 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. 

6 As a share of total employment of 15 to 64-year-olds, according to LFS (INSTAT). 

61 

 
 
 
increasing range of state-owned enterprises and utilities. These proved useful for forecasting 
financing  needs  for  the  public  electricity  sector  in  20227,  when  adverse  weather  caused  a 
decline  in  domestic  electricity  production,  and  rising  international  prices  led  to  surging 
electricity  import  costs.  An  instruction  issued  in  December  2022  introduced  additional 
reporting requirements for all public bodies on potential fiscal risks, including those related to 
PPPs, but the capacities and the mandate of the fiscal risk unit has yet to be upgraded to make 
full use of this information.  

Functioning of the financial market  

The financial sector remained stable, but risks from the high share of foreign currency 
and  variable  interest  loans  persist.  Bank  profitability  (the  return  on  equity)  continued  its 
recovery from 12.9% in  2021 to  an average of 15.5% in  the first  half of  2023, following a 
drop  to  an  average  of  8.5%  in  2022.  Overall  banking  sector  capital,  in  relation  to  risk-
weighted  assets,  remained  unchanged  between  18-19%,  which  is  above  the  regulatory 
minimum, but a few small banks do not fulfil the macroprudential requirements adequately. 
Liquidity declined in 2022, but was still above the regulatory limit set by the Bank of Albania 
and  recovered  slightly  in  2023.  The  ratio  of  non-performing  loans  to  total  loans  fell  3  pps 
from mid 2020 to mid 2022, and have remained around 5.2% since then. However, there are 
concerns that the interest rate risk could transform into a credit risk as bank loans, about 75% 
of which carry variable rates, are being repriced. Several updates of banking legislation and 
regulation  were  adopted  in  2022  which  strengthen  macroprudential  requirements  (liquidity 
buffers, net  funding ratio, capital  adequacy) and risk management. The recent  resolution  of 
the  dispute  over  the  fees  for  private  bailiff  services,  which  facilitate  the  execution  of 
collateral,  is  therefore  timely.  Banks  have  a  sizeable  exposure  to  sovereign  risk,  given  the 
25%  share  of  government  securities  among  their  assets.  Euroisation  was  already  high  and 
increased slightly. The share of foreign currency deposits is above 50% and foreign currency 
loans  are  about  49%  of  the  total,  although  the  share  of  loans  that  are  not  hedged  against 
exchange  rate  risks  decreased.  The  consolidation  of  the  banking  sector  continued,  with  the 
merger of the small  Alpha bank into OTP. This  reduces the number of  banks in Albania to 
11. The small but growing non-bank financial sector expanded to 38 institutions8 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.  New  legislation  provides  sets  a 
framework  for  growing  use  of  new  instruments  like  factoring  and  leasing  in  addition  to 
strengtherening risk management requirements in the non-bank financing sector. 

Access to finance 

The modernisation of payment systems improved access  to finance  but capital market 
development is just beginning. Total credit growth accelerated from an average of 6.9% in 
2021 to 11.2% in 2022. Lending to the private sector9 also accelerated, from 6.9% in 2021 to 
an average of 12.3% in 2022, but slowed to 7.3% by July 2023 as interest rates continued to 
increase.  The  financial  intermediation  level  remained  low,  with  loans  to  the  non-financial 
private  sector  standing  at  32.7%  of  GDP,  about  15  pps  below  regional  peers.  In  2022,  the 
regulatory  framework  for  the  modernised  payment  system  was  completed.  This  has  led  to 
more adults holding a bank account and to an increase in electronic payment facilities across 

7   The government provided direct on-lending of 0.4% of GDP and budget support of 1% of GDP to the sector to cover the 

increased costs. 

8  

Including 12 insurance companies, 8 investment funds, and a number of institutions providing microcredit, financial 
leasing, factoring, money transfer and electronic payment services. 

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

62 

 
 
 
the country. Card payments increased by 18%. Bank financing is still the dominant means of 
external  business  financing.  In  April  2023,  the  Government  set  out  to  promote  active 
participation  in  the  capital  market, including  by  state owned enterprises,  municipalities and 
foreign  investors.  The  policy  aims  to  promote  bonds  placements  in  view  of  increasing 
demand e.g. from private pension funds and to deepen the secondary market for government 
securities. In addition, institutions of the Albanian banking and financial sector have begun to 
implement the 2022-2027 national strategy for financial education, which aims to address the 
comparatively low level of financial literacy in the Albanian population. 

Functioning of the labour market  

labour-force 

participation 

The  labour  market  continued  to  improve.  Solid  employment  growth,  averaging  3.7%  a 
year in 2015-2019, helped lower the unemployment rate (in the 15-64 age group) from 17.5% 
to  12%.  The  labour  market  recovered 
most  of  its  pandemic-related  losses  in 
2021  and  strengthened  significantly  in 
2022, when employment growth averaged 
5%.  The  unemployment  rate  dropped  to 
11%  in  the  last  quarter  of  2022  and  the 
inactive  population  decreased  by  14.3%. 
The 
rate 
climbed to 74.8% by the end of 2022 and 
75.8%  mid  2023,  approaching  the  EU 
average,  as  did  the  closing  gap  between 
male and female labour force participation which dropped by 3 pps to 11.5 pps (mid 2023). 
However, the recent employment increase is not matched by an equivalent increase in social 
insurance  contributors,  which  might  indicate  a  growth  in  informal  employment.  The 
unemployment  rate  for  15-29  year-olds  remained  persistently  above  20%,  masking  on  one 
hand an increase in their participation rate by 3pps, but on the other hand an increase in the 
number  of  unemployed  people  aged  25-29.  Although  employment  growth  continued  in  the 
first  half  of  2023  with  an  average  3.5%  it  did  not  lower  the  overall  unemployment  rate, 
mainly  because of an increasing number of unemployed young people (15-29). Despite the 
improving  labour  market  situation,  emigration  increased  by  10.5%  compared  with  2021, 
leading to a population decrease of 1.1 % in 2022. This also contributes to the ageing of the 
population and hits the financing of the pension system, on which Albania already has a low 
ratio of contributors to beneficiaries.  

Real  private  sector  wage  growth  was  not  matched  by  public  sector  wage  growth  and 
triggered plans for a comprehensive reform of public sector salaries and wage increases. 
Public  and  private  sector  wage  growth  was  balanced  (both  6.6%)  in  2021,  but  in  2022 
nominal private sector wages grew by 12.3% (5.5% in real terms) on average, while public 
sector wages only increased by 2.3% in nominal terms, resulting in a drop in real wages. In 
April  2023,  the  government  launched  a  public  sector  salary  review,  aimed  at  restructuring 
and  updating  salary  scales  and  bringing  public  wages  closer  to  regional  levels.  A  revised 
regulatory  framework  was  announced  to  consolidate  the  principles  and  mandates  for  the 
setting  of  the  public  salary  schedule  for  about  130  000  public  sector  employees.  The 
objective  is  to  raise  the  average  monthly  public  wage  in  several  steps  to  the  equivalent  of 
about EUR 900 by 2025 and to retain and attract staff in positions of critical importance for 
the  public,  including  health  workers,  teachers  and  police.  The  first  stage  increased  public 
sector wages in the second quarter of 2023 by 20.5% year on year, pushing overall average 
wage  growth  to  14.9%  in  the  first  half  of  2023  compared  to  the  same  period  in  2022.  The 

63 

 
 
estimated total cost of ALL 39 billion would mean a 50% increase in the current public sector 
wage bill and potentially a deviation from the planned fiscal trajectory, in addition to likely 
spill-over effects to private sector wage developments. In January 2023, the minimum wage 
in  Albania  was  the  lowest  in  both  nominal  terms  and  in  purchasing  power  standard  among 
countries in the region with available data. The government lifted the minimum wage by 25% 
year-on-year in April 2023 to ALL 40 000 and announced a further increase to ALL 45 000 
(about  EUR  400).  Since  early  2022,  the  minimum  wage  has  exceeded  50%  of  the  average 
monthly wage and generated high wage growth in the lowest income sectors like agriculture. 

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

Albania has some level of preparation to cope with competitive pressure and market forces 
within the Union and made some progress in bolstering competitiveness. Structural reforms 
in  the  energy  market  progressed,  and  transport  infrastructure,  the  digitalisation  of  the 
economy  and  education  outcomes  continued  to  improve,  but  significant  gaps  with  regional 
and European levels remain. Albania’s competitiveness is hindered by relatively low levels 
of  entrepreneurial  and  technological  know-how,  unmet  investment  needs  in  human  and 
physical capital, persistently low spending on R&D and, increasingly, by shortages of skilled 
labour. Trade openness increased through surging exports of services (tourism), but remains 
low overall, as the exports of goods remain well below potential.  

As  some  of  the  Commission’s  2022  recommendations  were  not  fully  implemented,  last 
year’s  recommendation  remain  partially  valid  and  in  the  coming  year  Albania  should  in 
particular: 

→  improve  the  labour  market  relevance  and  quality  of  vocational  education  and  training 
(VET) to increase enrolments, and invest in the digital skills of young people and adults; 

→  increase  spending  on  education,  social  protection  and  health  as  a  percentage  of  total 

expenditure and issue instructions to collect data on public expenditure on R&D; 

→  accelerate  the  diversification  of  renewable  energy  sources,  develop  business  support 
services  for  SMEs’  green  transition,  digitalisation  and  e-commerce,  and  support 
cooperation between business and academia on innovation.  

Education and innovation 

Education  reforms  are  progressing,  but  it  remains  difficult  for  young  people  to 
transition into the labour market. Albania recorded improving results in the last PISA tests 
(15-year-olds  in  2015  and  2018)  and  relatively  good  results  in  the  latest  international 
assessments  of  fourth-grade  students’  mathematical  and  scientific  understanding  (TIMSS 
2019)  and  their  reading  comprehension  (PIRLS  2021)10.  This  might  indicate  that  recent 
reforms of the education system are having some effect, despite the relatively low spending 
on the education system of about 3% of GDP on average in 2017-2022. However, the gap in 
the  education  level  to  the  EU  average  remains  wide  and  higher  public  expenditure  on 
education  is  necessary  to  speed  up  convergence.  In  addition,  regional  surveys11  show  that 
about a quarter of young respondents consider that skills learned in the education system do 

10 TIMSS = Trends in International Mathematics and Science Study, conducted every four years at the fourth and eighth 
grades. Albania participated for the first time in TIMSS in 2019, only with 4th graders. PIRLS =Progress in International 
Reading Literacy Study, assessing students’ reading achievement in their fourth year of schooling every 5 years. Albania 
participated in 2021 for the first time. It scored in both studies above most regional peers but limited testing scope and 
issues with data quality limit comparability.  TIMSS & PIRLS International Study Center. 
11 Balkan Public Opinion and Business Barometers 2022  

64 

 
 
 
not match the needs of their job, and 45% of companies surveyed identify applicants’ lack of 
skills  as  a  reason  for  unfilled  vacancies  (2022).  Participation  in  vocational  and  educational 
training (VET) remains particularly low (17.7% of upper secondary students, compared to the 
regional average of 58%) and attendance numbers actually  fell in  2022. This  contributes to 
the continued high rate (26.1%) of young people (aged 15-29) not in education, employment 
or training (NEET) at the end of 2022, and the high emigration of people with a lower level 
of education12. The private sector’s involvement in  VET improved, but  schools have yet  to 
develop  and  follow  curricula  with  sufficient  and  attractive  work-based  learning  that  is 
relevant  to  the  labour  market.  Though  ongoing  reforms  of  the  VET  system  address  these 
issues,  their  funding  and  the  pace  of  implementation  are  not  yet  adequate  In  addition, 
implementation of the 2023-2030 national employment and skills strategy, which envisages 
the  employment  policies  that  are  necessary  including  upskilling  and  adult  training,  needs 
sufficient funding to raise the skill levels of the relatively large group of Albanian adults with 
a low level of education, and thus alleviate the shortage of skilled labour.  

Albania  has  better  access  to  EU  research  funds,  but  domestic  funding  remains 
negligible.  Public  funding  for  research  and  development  is  foreseen  to  increase  from  the 
estimated 0.1% of GDP in 2022, but it is unlikely to reach the level of 1% of GDP envisaged 
in draft 2023-2030 national strategy on technology and innovation (STI), and reliable data on 
actual research funding is not yet available. There are no cost-based tax incentives currently 
being offered to private companies for training and research. Though some efforts have been 
made to stimulate public/private cooperation in this area, the very limited level of investment 
in  innovation  remains  an  obstacle  to  the  much-needed  increase  in  productivity.  Albania’s 
association  agreement  with  Horizon  Europe  entered  into  force  in  2022,  giving  its  research 
institutions  access  to  EU  funding  for  research  and  innovation  that  is  comparable  to  EU 
Member States. 

Physical capital and quality of infrastructure 

Investment  recovered  in  2021  and  2022  and  infrastructure  projects  made  some 
progress. Total investment (gross fixed capital formation) averaged 24.4% of GDP in 2014-
2018  before  dropping  by  almost  2  pps  in  2019-2020.  In  2021  and  2022,  investment 
rebounded to  24.4% and 24.0 % of  GDP respectively, fuelled by rising  private and  foreign 
direct  investment  as  well  as  public-financed  post-earthquake  reconstruction.  This  pushed 
public investment to 6.8% of GDP in 2021, before it fell to 5.4% of GDP in 2022. The share 
of gross fixed capital formation in GDP is the second highest in the region, and about 1.2 pps 
above the EU average. Net  FDI inflows rose by 22% year-on-year in 2022, mostly flowing 
into  real  estate,  energy,  finance  and  manufacturing.  Albania  has  made  progress  with  the 
preparation  and  construction  of  road,  rail  and  port  infrastructure  projects,  which  are 
improving  interregional  connectivity  (the  Adriatic-Ionian  Corridor)  and  trade-related 
infrastructure (rehabilitation of the rail line from the port of Durrës to Tirana, construction of 
a new rail line to the international airport). In addition, a new 2023  – 2030 transport sector 
strategy  and  action  plan  was  prepared,  with  an  estimated  budget  of  EUR  1  billion.  The 
logistics  performance  index  of  the  World  Bank  on  Albania’s  trade  and  transport-related 
infrastructure  records  an  increase  from  2.29  in  2018  to  2.7  in  2022  (1 = low  to  5 = high, 
EU = 3.6). 

Digital infrastructure improved but needs further investment. Though the percentage of 
businesses with access to fast network connections (>10MB/s) increased from 79.8% in 2020 

12 OECD “Labour Migration in the Western Balkans: Mapping Patterns, Addressing Challenges and Reaping Benefits". 
https://www.oecd.org/south-east-europe/programme/Labour-Migration-report.pdf 

65 

 
 
 
to 90.5% in 2021 there has only been a small rise in internet use and business websites. Fixed 
broadband penetration increased from  17 to  20 per 100 inhabitants in  2021 and remains an 
issue, particularly in rural areas. These have 40% of the population but only a quarter of the 
fixed  broadband  subscribers.  Investment  in  digital  infrastructure  is  also  needed  in  schools. 
Many  schools  lack  computers  -  there  are  about  0.2  computers  per  pupil  -  and  have  poor 
internet  connections,  which  remains  an  obstacle  to  using  digital  technologies  in  schools. 
Households with access to the internet increased from 88.3% in 2021 to 96.5% in 2022, with 
an increasing share also accessing the internet via a fixed broadband connection.  

Hydropower remains the main source of electricity, but Albania made some progress in 
the development of its electricity sector. Although this is a renewable source, hydropower 
creates a  dependency on unpredictable  rainfall,  exacerbated by climate change. This means 
that  the  country’s  electricity  import  needs  fluctuate,  leading  to  calls  for  more  efforts  to 
diversify electricity sources. Albania aims to increase solar energy production capacity to 1 
GW  and  has  awarded  two  contracts  for  solar  photovoltaic  farms  with  240  MW  capacity 
through  solar  power  auctioning.  In  addition,  the  first  auctions  for  wind  power  resulted  in 
contract awards for 222.5 MW installations in July 2023. These are important steps towards 
reducing Albania’s 98% dependence on hydroelectric production. The power sector law13 was 
amended to improve its alignment with the EU acquis on energy, as required by the Energy 
Community  secretariat.  This  enabled  the  effective  separation  of  the  electricity  distribution 
system operator from the production operator. The Albanian Power Exchange (ALPEX) also 
went  live  and  held  its  first  electricity  auction  in  April  2023.  ALPEX  is  a  joint  venture 
company,  owned  by  the  transmission  system  operators  of  Albania  (OST)  and  Kosovo 
(KOSTT), entrusted with  operating both  day-ahead and intraday markets.  Transparent  price 
signals can be provided for investments in renewable energy through ALPEX, though retail 
electricity prices are not yet fully liberalised for all customers. The recently adopted Law on 
renewable energy sources and new incentives for households to install solar panels and water 
heaters  are  expected  to  help  to  reach  the  increased    renewable  energy  share  targets  in  the 
2020–2030 national energy and climate plan for energy efficiency (NECP).  

Sectoral and enterprise structure 

The economic structure continued to shift gradually away from agriculture and towards 
construction,  manufacturing  and  services.  The  share  in  gross  value  added  of  the 
agricultural  sector fell from  22.9% to  21% in  2014  -2019.  It  increased slightly  to  21.3% in 
2022 but remained higher than other sectors, exceeding the share of manufacturing by a wide 
margin despite this sector’s gradual increase (to 7.5% in 2022). The increase in the combined 
share of services by 2.7 pps in 2015-2019 to 55.4% of gross value added reversed in 2020, 
and was down to 54.1% in 2022. Within the services aggregate, the category ‘wholesale and 
retail trade, transport, accommodation and food service activities’ recorded a strong 1.9 pps 
increase in 2022 compared with 2021, while the category ‘public administration and defence; 
compulsory  social  security;  education;  human  health  and  social  work  activities’  fell. 
Reflecting stronger investment activity, the construction sector’s share in gross value added 
increased  to  11.2%  in  2022,  about  1  pp  higher  than  its  average  in  2015-2019.  Agriculture 
provided  33.7%  of  employment  in  2021,  down  from  36%  in  2019  and  2020  but  still 
accounted  for  over  50%  of  employment  in  more  than  half  of  Albania’s  prefectures. 

13 The decision to close Case ECS-4/17 in April 2022 was based on the complete transposition into national law of the 
Electricity Directive’s provisions related to DSO unbundling, the completion of legal unbundling and substantial progress in 
functional unbundling. 

66 

 
 
 
 
Manufacturing’s  share  of  total  employment  increased  slightly  to  11.2%  in  2021,  whereas 
services’ share increased to 44.4%.  

Tax  registrations  of  businesses  and  farmers  continued  to  increase.  Tax  registrations  of 
farmers increased by 34.1% in 2022, most likely related to the support scheme for farmers’ 
fuel costs, whereas the number of active registered non-agricultural enterprises increased by 
5.6%.  A  total  of  92.6%  of  active  enterprises  employed  fewer  than  10  people  (85.6% 
employed 1 to 4 people), 5.7% had 10-49 employees, whereas 1.6% of enterprises had 50 or 
more  employees  and  comprised  50.6%  of  total  employment.  The  percentage  of  registered 
enterprises  that  provide  services  (85.6%),  was  unchanged  from  2021.  There  is  a  high 
concentration  (64.8%)  of  active  enterprises  in  the  prefectures  of  Tirana,  Durrës  and  Vlorë, 
which account for about 50% of the population. In total, 5.3% of active enterprises are jointly 
or wholly owned by foreigners, contributing to 12.5% of employment, the majority (62.7%) 
of which have owners from Europe, in particular from Italy and Greece.  

Economic integration with the EU and price competitiveness 

The  EU  remains  Albania’s  main  trading  and  investment  partner.  Trade  openness  (the 
sum of exports and imports as a share of GDP) averaged 75.7% of GDP in 2015-2019. After 
a drop in 2020, it jumped from 74.7% of GDP in 2021 to 88.5% of GDP in 2022, driven by 
strong  growth  both  of  exports  and  imports,  which  rose  to  37.5%  and  49.6%  of  GDP 
respectively.  Despite  the  increase  in  exports’  share  of  GDP  (up  by  10  pps  since  2015),  it 
remains the lowest in the region, largely due to the very low share of goods exports. Exports 
remain dominated by services, mostly tourism-related. The EU remained the main destination 
for  the  export  of  both  goods  and  services  (2020  data).  The  EU’s  share  of  Albania’s  goods 
exports increased in 2022, halting the downward trend of the previous 5 years, but the EU’s 
share  of  Albania’s  imports  continued  to  decline.  The  trade  in  goods  with  countries  in  the 
Central  European  Free  Trade  Agreement  (CEFTA)  decreased,  in  particular  due  to  a  2  pps 
drop in  its proportion of Albania’s exports. FDI  inflows from  the EU jumped from  30% of 
the  total  in  2015-2018  to  51%  in  2019-2022.  Between  these  periods,  the  shares  of 
Switzerland and Türkiye, once the source of the second and third largest inflows, decreased 
from 33.7% of the total to 11.4% and from 8% to 7.6% respectively. The EU’s share of FDI 
stocks  remained  high  at  54.4%.  In  January  2022  an  inter-ministerial  working  group  was 
established  to  draft  a  2022-2027  export  promotion  programme,  expected  to  be  finalised  in 
2023. The real effective exchange rate increased by an average of 0.5 % in 2022, but by 2.6% 
in the first quarter of 2023 (compared with the 2022 average).  

2.4 PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL 

Chapter 5: Public procurement 

67 

0102030405020152016201720182019202020212022Graph 1.5a: Albania -Exports of goodsEUCEFTAOtherSource: WiiW% ofGDP0102030405020152016201720182019202020212022Graph 1.5b: Albania -Imports of goodsEUCEFTAOtherSource: WiiW% ofGDP 
 
 
 
EU rules ensure that public procurement of goods, services and works in any Member State 
is  transparent  and open  to  all EU companies on  the basis of  non-discrimination and equal 
treatment. 

Albania  is  moderately  prepared  in  public  procurement.  Some  progress  was  made  ,  in 
particular,  through  an  increased  use  of  the  most  economically  advantageous  tender  award 
criteria.  

The 2022 report’s recommendations were only partially implemented and remain valid.  

In the coming year, Albania should, in particular: 

→  continue  efforts 

further 
encouragement of the use of the most economically advantageous tender award criterion 
and the use of framework contracts;  

to  ensure  competitive  procurement  procedures,  with 

→  step  up  efforts  to  align  the  legislative  framework  with  the  EU  acquis  in  the  area  of 

concessions and public-private partnerships; 

→  ensure  that  the  conditions  of  intergovernmental  agreements  concluded  with  third 
countries  comply  with  the  requirements  of  the  EU  acquis  and  in  the    Stabilisation  and 
Association Agreement (SAA) in the area of procurement. 

Institutional set-up and legal alignment 

The  legal  framework  on  public  procurement  is  largely  aligned  with  the 2014  Directive  on 
public procurement and procurement of utilities. The Law on concessions and public-private 
partnerships  (PPPs)  is  partly  aligned  with  the  EU  acquis.  The  government  plans  to  adopt  a 
revised PPP law in 2023. Albania is also partially aligned with the EU acquis on defence and 
security procurement. 

A working group has been set up and a negotiation team has been nominated to prepare for 
Albania’s  accession  to  the  Agreement  on  Government  Procurement  of  the  World  Trade 
Organization. 

The  Public  Procurement  Agency  (PPA)  is  the    body  mandated  to  propose  regulatory 
measures,  monitor  compliance  with  procurement  rules  and  monitor  the  implementation  of 
contracts.  A  new  organisational  structure  was  created  in  March  2023.  It  has  48  posts,  of 
which  eight  are  vacant.  In  2022,  a  regulation  was  adopted  to  strengthen  the  status  of  the 
Agency  for  Centralised  Procurement.  The  MoFE,  together  with  the  Concessions  Treatment 
Agency (ATRAKO), are the main organisations responsible for PPP and concessions.  

Implementation and enforcement capacity 

Albania’s  public  procurement  market  represented  about  9.4%  of  GDP  in  2022,  compared 
with 10.7% in 2021. In 2022, the average number of bids per tender was 2.5 (compared with 
2.5 in 2021 and 2.57 in 2020). Public procurement forecasts are published regularly.  

The  PPA  has  a  monitoring  system  to  assess  procurement  performance  and  compliance,  as 
well as the implementation of contracts. Since 2021, contracting authorities submit plans for 
implementing signed contracts to the PPA. The PPA provides regular monitoring reports and, 
since  2021,  has  also  provided  real-time  information  on  procurement  through  the  open  data 
platform.  

All legal and financial instruments used in the area of public procurement and concessions, 
the 
including 

intergovernmental  agreements  concluded  with 

third  countries 

for 

68 

 
 
implementation  of  joint  projects,  should  comply  with  the  principles  of  transparency, 
competition, equal treatment and non-discrimination. 

On  the  monitoring  of  contracts  award  and  implementation,  the  number  of  negotiated 
procedures without prior publication increased to 157 in 2022 (143 in 2021). This represented 
3.3% of all procedures but had fallen to 0.9% in terms of the value of all procurements in that 
period  (from  3.4%  in  2021).  The  use  of  framework  agreements  fell  slightly  in  terms  of 
numbers  (763  compared  with  873  in  2021),  but  these  represented  a  higher  total  value  of 
contracts procured through framework agreements (approximately EUR 419 million in 2022 
compared  with  approximately  EUR 354  million  in  2021).  The  application  of  the  most 
economically  advantageous  tender  criteria  for  the  award  of  public  procurement  contracts 
increased to 7.3% of procedures, amounting to 33.9% of the total value of contracts. 

There is a central procurement portal for the publication of tender and contract notices, and 
its  use  is  mandatory,  including  for  low-value  procurements.  The  PPA  extended  its  role  in 
contract  monitoring  and  contracting  authorities  began  reporting  on  contract  implementation 
in 2022, so far on 3 659 contracts. 

On PPP/concessions, there was a significant reduction in the number of new PPPs. The use 
of  unsolicited  PPPs  was  also  curtailed.  By  the  end  of  2022,  the  PPPs/concessions  registry 
contained information on 228 contracts. In 2022, 3 concession procedures were published, of 
which one was awarded. . The technical capacity to design and assess PPPs requires further 
development.  The  December  2022  government  decision  on  improvements  to  the  single 
investment  project  pipeline  aims  to  gradually  integrate  decisions  on  PPPs  into  the  broader 
assessment procedures for investment projects.   

The  contracting  authorities  need  to  continue  to  build  capacity  to  manage  public 
procurement processes. Ongoing training continued, with 1 396 people trained in 2022. The 
technical skills and capacity to  design and assess concessions and PPPs also require further 
development. Further efforts are needed to improve compliance with procedures and prevent 
corruption in the procurement cycle. 

On  integrity  and  conflicts  of  interest,  the  PPA  issued  instructions  on  the  declaration  of 
conflicts of interest by procurement officials and adopted a regulation on preventing conflicts 
of  interest  in  the  exercise  of  public  functions  in  the  PPA.  The  State  Audit  Institution 
continues to report irregularities in public procurement at cenral and local level. 

In  terms  of  developing  an  effective  system  for  the  prevention  of  corruption  in  public 
procurement,  Albania  should  focus  on  further  strengthening  the  functioning  of  the  overall 
system to increase competition, compliance and professionalisation. Albania has laid a good 
foundation  by  significantly  improving  transparency  through  its  comprehensive  electronic 
procurement  and  e-appeals  system,  and  in  terms  of  giving  participants  access  to  redress  by 
developing its review system.  

Efficient remedy system  

The Constitution and the PPL contain provisions on the right to legal remedy that are mostly 
in line with the remedies Directive.  

The  Public  Procurement  Committee  (PPC)  is  the  independent  review  body  dealing  with 
complaints  about  public  procurement  and  concessions/PPP.  Its  decisions  can  be  challenged 
before the Administrative Court of Appeals (and Supreme Court for subsequent appeals). A 
regulation  was  adopted  in  2022  that  further  clarified  the  rules  on  the  invalidity  of 
procurement contracts and the role of the PPC in this respect.  

69 

 
 
The  remedy  system  is  easily  accessible  to  economic  operators,  though  subject  to  a  fee.  An 
electronic  portal  for  submitting  and  managing  appeals  and  complaints  is  in  place  and 
provides real-time statistics. The PPC has completed the overhaul of its internal procedures to 
incorporate the new online procedures. 

In 2022, the PPC received 782 complaints about procurement, in line with the previous year 
(768  in  2021).  89.9%  of  complaints  were  addressed  within  the  legal  time  limit  (compared 
with 89.2% in 2021 and 78% in 2020), while the average time it took to reach a decision fell 
to 12 days. In 2022, 5.45% of PPC decisions were appealed before the administrative courts 
(a slight reduction compared with 2021).  

The capacity of the PPC to deal with appeals, needs to be further improved. In March 2023, 
the Parliament agreed to increase the number of posts at PPC from 36 to 42, eight of which 
remain vacant. Extensive training of PPC staff is based on a cooperation agreement with the 
University of Tirana.  

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.  Some  progress  was  made  in  addressing  the 
2022  report’s  recommendations.  Further  alignment  was  made  with  ESA  2010  standards, 
statistics  publication  was  made  faster  of,  and  there  was  increased  transmission  to  Eurostat. 
Parliament approved the 2023 statistical plan, including a date for the population and housing 
census,  which  is  ongoing.  The  role  of  the  Institute  of  Statistics  (INSTAT)  was  further 
strengthened,  and  its  resources  improved  but  capacity  challenges  remain.  Despite  the 
progress made in the modernisation of, data collection methods, further efforts are needed to 
improve the statistical production processes.  

The  recommendations  issued  in  2022  largely  remain  valid.  In  the  coming  year,  Albania 
should: 

→  disseminate in a timely manner the results of the population and housing census 2023 and 
prepare  an  updated  plan,secure  the  resources  and  be  ready  to  implement    the  census  of 
agriculture holdings in line with the relevant EU acquis and international standards; 

→  take measures to reduce the staff turnover of the Institute for Statistics (INSTAT) should, 

in order to ensure that statistical production needs are met;  

→  increase 

the  production  and 

timely  and  high-quality  data  for 
dissemination  by  Eurostat,  and  in  particular  make  government  finance  statistics  (GFS) 
data publicly available. 

transmission  of 

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 2022-2026 official statistics programme is being implemented. The 2023 annual statistics 
plan was approved by parliament in January 2023. This included the date for the population 
and  housing  census,  which  needs  to  be  conducted  in  2023,  having  already  been  postponed 
twice. While INSTAT has made some efforts to fill vacancies and aims to increase staffing 
levels from 236 to 266 by 2026, further efforts are needed to reduce staff turnover, to ensure 
that production needs are met, and to train new staff in the latest statistical developments. 

70 

 
 
On macroeconomic statistics, annual and quarterly GDP data are produced in line with the 
production and expenditure approach, using current prices and with chain-linked volume and 
seasonally adjusted. On national accounts, Albania is partially in line with ESA 2010 on the 
quarterly  and  annual  national  accounts  (main  aggregates),  on  supply  and  use  tables  and 
derived input-output tables, as well as on regional accounts; data transmission to Eurostat has 
gradually improved in terms of timeliness for annual national accounts. However, significant 
improvement is still needed to achieve full compliance (mainly in the approach to quarterly 
GDP by income and population and employment data). Substantial further work is necessary 
to improve the timeliness, coverage and quality of annual non-financial sector accounts and 
annual  financial  sector  accounts  and  to  start  compiling  also  quarterly  non-financial  sector 
accounts.  Efforts  are  needed  to  start  the  work  for  the  compilation  of  pension  entitlements 
table.  Despite  progress  on  alignment  with  ESA  2010  standards,  Albania  still  needs  to 
improve compliance with the methodological requirements, and implement the improvements 
it has already achieved in the next benchmark revision in 2024. The Gross National Income 
(GNI) inventory, which describes the sources and methods used to compile national accounts, 
should  be  updated.  Efforts  are  also  needed  to  ensure  the  completeness  of  the  notification 
tables  on  the  excessive  deficit  procedure,  which  are  sent  regularly  to  Eurostat  on  a  best-
efforts  basis.  Improvements  are  also  needed  in  government  finance  statistics  to  meet  the 
requirements  of  the  EU  acquis  and  the  data  should  be  made  publically  available.  INSTAT 
produces  and  publishes  the  harmonised  index  of  consumer  prices  and  is  reponsible  for 
generating income accounts.  

Data collection and production of business statistics have improved. Albania carries out an 
industrial  production  survey,  although  data  is  currently  not  collected  or  transmitted  to 
Eurostat.  Albania  is  partly  compliant  for  all  short-term  statistics  (STS)  domains  (industry, 
construction,  retail  trade  and  other  services).  However,  some  STS  indicators  are  still  not 
transmitted  to  Eurostat,  in  particular  those  on  industrial  turnover,  hours  worked,  and 
indicators on business  registrations and bankruptcies. Further  efforts are  needed to  transmit 
the  business  demography  statistics,  starting  with  enterprise  births,  deaths,  and  survivals. 
INSTAT continues to achieve high response rates in both business and household surveys.  

On  social  statistics,  INSTAT  continues  to  conduct  the  labour  force  survey  regularly,  and 
microdata  are provided to  Eurostat, but  it still does not  produce statistics  on job  vacancies. 
Statistics on labour costs are calculated based on a labour cost survey. INSTAT continues to 
conduct  the  annual  survey  of  income  and  living  conditions  (SILC)  wave  and  the  data  has 
been validated and published by Eurostat. Data on income and living conditions at household 
and  personal  level  has  been  released  using  EU-SILC.  Statistics  on  external  migration  and 
asylum are partly aligned with the EU acquis. Crime statistics are published every year and 
are  fully  based  on  administrative  sources.  Crime  statistics  in  Albania  are  classified  on  the 
basis of the national criminal code and laws, but INSTAT is working on a mapping that uses 
the International Classification of Crime for Statistical Purposes.  

The  collection  of  gender-disaggregated  data  has  improved:  the  new  official  statistics 
programme includes provisions on collecting and analysing gender statistics. Further efforts 
are needed to produce disaggregated data for certain groups, especially on the prevalence of 
violence  and  harassment  at  work,  on  data  disaggregated  by  both  gender  and  geographical 
location,  age,  ethnicity,  disabilities  and  migratory  status.  After  being  postponed  twice  the 
population and housing census is being implemented in 2023, after a second pilot census led 
to  further  adjustments  in  the  approach.  Recruitment  of  staff  for  the  census  started  in  May. 
Video  messaging  to  raise  awareness  about  the  census  have  already  started,  and  widespread 
communication  on  it  will  start  in  September  2023.  Albania  needs  to  ensure  that  the  census 

71 

 
 
goes ahead, that adequate funding for its full implementation is ensured, that administrative 
data is reused where possible, and to ensure that sufficient attention is paid to the rebasing of 
data.  

Agricultural  statistics  are partly  aligned with  the EU  acquis.  Some progress  was  made on 
the administrative registers, such as in the farmers’ register, the individual register of animals 
and  the  animal  holding  registers,  but  the  quality  of  the  data  still  needs  to  be  improved. 
INSTAT also needs to finalise the documents needed for the census of agricultural holdings 
planned for 2024, including an action plan and an updated budget, and secure necessary funds 
to carry it out successfully. Adoption of the necessary legal act to ensure compliance with the 
EU regulations on integrated farm statistics needs to be assured. 

Environmental statistics are partly aligned with the EU acquis. 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  yet  fully  aligned.  Data  on 
packaging waste are increasingly substantial as they are the basis for a new EU own resource 
on non-recycled plastic packaging  waste. Albania already collects data on municipal waste, 
but  it  needs  to  collect  and  transmit  the  statistics  on  industrial  waste  and  ensure  a 
comprehensive estimate of all plastic packaging waste generated and recycled. 

Energy  statistics  are  moderately  aligned  with  the  EU  acquis.  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 (natural gas and oil) as well as prices 
of electricity for households  and industry. Substantial  further work is  required to  reach full 
alignment with the EU acquis on energy statistics. 

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  when  it  comes  to  updates  to  the  legal  framework  of  internal 
control  and  internal  audit.  Implementation  of  the  policy  document  for  the  strengthening  of 
public  internal  financial  control  (PIFC)  and  targeted  internal  audits  on  arrears  continued. 
Albania further aligned its national legislation with the EU  acquis on counterfeit banknotes 
and  coins.  Internal  control  is  not  yet  ensured  across  budget  entities.  Working  relations 
between the Supreme State Audit Institution, the Parliament and the Ministry of Finance and 
Economy (MoFE) need to be further strengthened.  

Since  the  2022  Commission  recommendations  were  only  partially  addressed,  they  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; 

72 

 
 
→  strengthen  controls  and  consolidate  capacities  to  protect  EU  financial  interest,  ensuring 
correctness and transparency of expenditure in line with the principles of sound financial 
management. 

Public internal financial control (PIFC)  

A  strategic  framework  for  PIFC  is  in  place.  PIFC  measures  are  included  in  the  public 
financial management and the public administration reform strategies, and were also set out 
in the 2021-2022 PIFC policy document. As of 2023, the specific PIFC policy document will 
be  integrated  into  the  new  2023-2030  PFM  strategy,  which  is  under  preparation.  Annual 
PIFC  reports  are  prepared  and  bring  together  reporting  on  activities,  and  findings  from 
assessments and self-assessment on internal control and internal audit. They are presented to 
the Council of Ministers and Parliament as part of the process to approve the budget.  

The internal control system is only partially effective. The legislation on internal control is 
largely in line with international standards. Amendments to the law were adopted in February 
2023 to strengthen enforcement options and clarify roles and responsibilities. The Ministry of 
Finance  and  Economy 
implementation.  Albania  has 
implemented  several  measures  to  improve  the  internal  control  system,  in  particular  to 
improve  the  execution  of  procedures  and  to  strengthen  the  capacity  of  civil  servants. 
However,  further  efforts  are  needed  to  advance  the  implementation  of  PIFC  reforms.  Risk 
management is still at an early stage at all levels and needs to be better incorporated into the 
management of financial and operational processes. 

is  responsible  for  monitoring 

Managerial  accountability  is  not  yet  fully  embodied  in  the  legislation  and  administrative 
practice.  The  instructions  that  have  been  adopted  on  the  delegation  of  financial 
responsibilities  need  to  be  implemented  and  accompanied  by  delegation  of  operational  and 
administrative  responsibilities  to  improve  overall  managerial  accountability.  In  practice,  a 
very  small  number  of  administrative  decisions  are  delegated  to  lower  levels  due  to  the 
centralised system of decision-making. 

The legislative framework on internal audit practice is in line with international standards. 
The  law  was  amended  in  February  2023  to  strengthen  the  independence  of  internal  audit, 
update the requirements  of the organisational set-up and clarify how to deal with suspected 
corruption and fraud.  

At the end of 2022, 83% of internal audit units were considered to be set up in line with the 
legal requirement. A total of 31 public units (mainly smaller municipalities and independent 
institutions)  have  not  yet  set  up  an  internal  audit  unit  or  established  an  alternative 
arrangement, and some are understaffed. In 2022, there were 434 internal auditors, of whom 
353  had  basic  certification  (up  from  342  in  2021  and  318  in  2020).  A  new  system  for  the 
advanced  certification  of  auditors  has  been  set  up  and  a  first  cohort  of  25  participants  has 
been selected.  

The fact that the internal audit system does not yet issue audit opinions on the effectiveness 
of the internal control systems across different budget entities remains an issue.  

In  2022,  the  Central  Harmonisation  Unit  assessed  compliance  with  manuals  and 
instructions  of  the  internal  audit  activities  of  25  internal  audit  units.  It  found  only  36%  of 
them to be partially or fully compliant. 

Well-functioning internal control, internal audit and inspection systems are essential for the 
strengthening of systems to prevent corruption. The recent revision of the internal audit law 
has clarified procedures for internal auditors when faced with potential criminal acts (report 
to  financial inspection and suspend audit).  In 2021, 6 cases were reported by internal audit 
73 

 
 
units  to  the  financial  inspection.  Financial  inspection  has  reported  relatively  few  cases  to 
Prosecution (1 in 2021).  

External audit 

In  line  with  the  standards  of  the  International  Organization  of  Supreme  Audit  Institutions, 
Albania’s  constitutional  and  legal  framework  guarantees  the  independence  of  the  State 
Audit  Institution.  The State Audit  Institution  has adopted a new strategic development  plan 
for 2023-2027.  

Albania should increase the implementation of external audit recommendations and develop 
the parliamentary scrutiny of audited bodies. The State Audit Institution has continued to take 
action to  improve its  institutional  capacity.  It  carries out  annual  professional development 
activities for audit staff. The number of staff has increased to 212, partly in response to the 
obligation imposed by the High Court to audit all 61 municipalities on a regular basis. 

The quality of audit work needs to be further improved to fully comply with the standards 
of  the  International  Organisation  of  Supreme  Audit  Institutions.  In  2022,  the  financial, 
compliance and performance audit manuals were updated. The objectives of the State Audit 
Institution  have  shifted  from  compliance  and  regularity  audits  to  performance  audits  and 
financial audits. It follows a risk-based external audit approach. 

The  impact  of  audit  work  has  shown  some  progress.  The  Albania’s  Supreme  Audit 
Organisation  continues  to compile annual  reports on its  performance, publishes them on its 
website  and  reports  accordingly  to  Parliament.  Audit  of  the  state  budget  is  conducted  in  a 
timely  manner.  In  2022,  177  audit  reports  were  submitted  to  Parliament.  The  State  Audit 
Institution also regularly reports on the implementation of its recommendations. The level of 
implementation  of  external  audit  recommendations  is  still  insufficient  (50%  of  2021 
recommendations  are  fully  or  partially  implemented),  despite  a  high  proportion  of 
recommendations  (97%)  being  accepted  by  institutions.  The  parliamentary  scrutiny  of 
audited  bodies  on  the  implementation  of  recommendations  is  still  limited  and  should  be 
increased, through more frequent parliamentary hearings and the creation of a parliamentary 
monitoring framework to regularly assess government’s follow-up action.  

ALSAI has the right to refer to the criminal prosecution bodies when the findings of audits 
are of their competence. ALSAI reported four criminal charges to Prosecution Office in 2022 
involving 16 officials, compared to 14 cases involving 62 employees in 2021. In addition, it 
monitors implementation of recommended disciplinary measures. ALSAI has signed MoU’s 
with the General Prosecutor’s office, SPAK and HIDAACI.  

Protection of the EU’s financial interests  

Albania has ensured some level of alignment with the EU  acquis 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,  which  meets  regularly.  Still,  the  roles  of  the  authorities  part  of  the 
AFCOS  network  should  be  further  clarified  in  relation  to  protecting  the  EU’s  financial 
interests. A national anti-fraud strategy still needs to be adopted. 

The manual of procedures for irregularities continue being updated.  

its  cooperation  with  the  European  Commission  on 
Albania  needs 
investigations. In 2022, it reported 71 cases of irregularities and suspected fraud in IPA and 
IPARD  programmes.  Although  cooperation on investigations has improved, Albania needs 

improve 

to 

74 

 
 
to  step up its efforts in developing a solid track  record on cooperation on investigations by 
providing, among others, effective operational assistance to investigators from the European 
Anti-Fraud Office (OLAF) so they can fully discharge their duty in carrying out an on-the-
spot check in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (EC, 
Euratom) No 2185/1996. Albania should also continue its efforts in developing a track record 
on reporting of irregularities. 

Protection of the euro against counterfeiting 

Albania further aligned with the EU  acquis on the definition of counterfeit banknotes and 
coins, as well as the procedures for gathering, storing and withdrawing them from circulation.  

Technical analysis is provided by the national analysis centre of the Bank of Albania and the 
Forensic  Police  Institute.  In  January  2023,  a  cooperation  agreement  on  the  protection  of 
currency  against  couterfeiting  was  signed  by  the  Bank  of  Albania,  the  General  Prosecution 
office and the Ministry of the Interior. 

In 2022, Albania seized 834 counterfeit euro coins and 134 euro banknotes, representing 68% 
of all seized counterfeit currencies in the country, compared with 38% 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.  They  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),  the  Energy  Community,  the 
Transport  Community,  the  South  East  European  Cooperation  Process  (SEECP)  and  the 
Regional Cooperation Council (RCC).  

The  EU-Western  Balkans  Summit  in  December  2022  took  place  for  the  first  time  in  the 
region,  in  Tirana.  The  summit  focused  on  support  to  the  region  in  the  fields  of  energy  and 
migration,  and  on  youth  cooperation,  roaming,  green  lanes  and  overall  progress  on 
implementing the Economic and Investment Plan.  

As  of  January  2023,  Albania  has  assumed  the  Chairmanship  in  Office  for  the  Western 
Balkans Fund. Albania has also assumed the Chairmanship in Office of the Berlin.  

On  the  Common  Regional  Market  (CRM),  a  political  breakthrough  was  achieved  at  the 
Berlin Process Summit in Berlin in November 2022, where leaders adopted the three mobility 
agreements  on  higher  education  qualifications,  on  professional  qualifications  and  on  free 
movement  with  identity  cards.  Albania  has  ratified  all  three  mobility  agreements  and  has 
deposited the related notification instruments. A number of important decisions agreed at the 
technical level within CEFTA remain blocked. 

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

Relations with Bosnia and Herzegovina remained friendly and without pending issues, with 
occasional high-level bilateral visits. The two countries are still to establish resident bilateral 
embassies, as agreed in 2020. Trade flows remain low.  

Relations with Georgia are good. Albania supports the territorial integrity and sovereignty of 
Georgia.  Albania  expressed  appreciation  for  Georgia’s  aspirations  to  integrate  into  the  EU 
and NATO. 

75 

 
 
 
Albania’s  relations  with  Kosovo  remained  good  overall.  Albania’s  authorities  have 
demonstrated consistence and strong support to the EU-facilitated Belgrade-Pristina dialogue. 
The  Prime  Minister  of  Kosovo  visited  Tirana  in  March  2023.  In  September  2023,  the 
President of Kosovo visited Albania.  

Relations  with  the  Republic  of  Moldova  are  good,  with  the  first  bilateral  diplomatic 
consultations taking place in 2022, and a joint commitment to develop the nascent bilateral 
economic relations. Albania has welcomed the EU’s decision to grant EU candidate country 
status to Moldova. 

Relations  with  Montenegro  remained  good  overall.  After  3  years,  the  second  joint 
governmental meeting between Albania and Montenegro took place in Podgorica in February 
2023.  Albania  signed  a  series  of  bilateral  agreements  with  Montenegro’s  caretaker 
government,  intended  to  improve  cooperation  between  the  neighbours  in  several  areas  of 
common interest related to energy, fishing, plant protection, social protection, sports, culture, 
media, defence and health. The parties signed a bilateral agreement for the construction of a 
bridge on the Buna River to connect the coastal  areas of Ulcinj (Montenegro) and Velipoja 
(Albania) and announced the opening of the border crossing at Saint Nicholas – Pulaj.  

Relations  with  North  Macedonia  remained  good.  In  November  2022,  the  second 
government-to-government  meeting  between  Albania  and  North  Macedonia  took  place  in 
Skopje. The governments signed 21 agreements, memoranda of understanding and protocols 
and pledged to cooperate on their EU integration process and on addressing the energy crisis 
triggered  by  Russia’s  unprovoked  invasion  of  Ukraine.  Both  governments  agreed  on  three 
initiatives  related  to  the  infrastructure  of  Corridor  VIII,  the  construction  of  a  dry  port  in 
Struga  and  the  opening  of  the  new  Struga-Pogradec  border  crossing.  Albania  and  North 
Macedonia  will  also  create  joint  investigation  teams  in  the  fight  against  organised  crime. 
Further avenues of cooperation are related to defence, security, digitalisation, border control, 
improving child protection and implementing Albanian sign language in both countries. 

Relations  with  Serbia  remained  good  overall,  with  regular  high  level  political  contacts. 
Albania’s  authorities  have  shown  unwavering  support  for  the  EU-facilitated  Belgrade-
Pristina dialogue. 

Relations  with  Türkiye  have  continued  to  strengthen,  as  reflected  in  the  exchange  of  high-
level  visits.  In  November  2022,  Albania’s  Minister  for  Europe  and  Foreign  Affairs  visited 
Ankara and led jointly with her counterpart the first meeting of the Political Dialogue Group. 
The  Prime  Minister  of  Albania  visited  the  country  and  met  the  President  of  Türkiye  in 
December  2022.  Albania  provided  immediate  support  to  Türkiye  with  the  deployment  of  a 
team of 56 people in relief efforts following the earthquake that hit the country in February. 
Türkiye  continues  to  exert  pressure  on  Albania  to  deliver  on  dismantling  the  ‘Gülen’ 
movement in the country. 

Ukraine-Albania relations have intensified since the beginning of Russia’s war of aggression 
against Ukraine. Albania has sponsored or co-authored all resolutions in support of Ukraine 
during  its  non-permanent  membership  of  the  UN  Security  Council.  The  Prime  Minister 
visited  Kyiv  in  June  2022,  together  with  the  Prime  Minister  of  Montenegro.  Albania  has 
welcomed the EU’s decision to grant EU candidate country status to Ukraine. 

Relations  with  Greece  remained  good  overall,  with  continued  political  contacts.  Greek 
Minority rights,  in  particular the property rights  of the Greek minority, remain a subject  of 
disagreement in the bilateral relations. The pre-trial detention of an ethnic Greek mayor-elect, 
who was arrested on the eve of the local elections, and whose trial started on 14 September 
on charges of vote-buying has been a source of bilateral tensions and raises serious concerns. 
76 

 
 
His requests to be granted special leave to be able to swear the oath have been dismissed and 
the High Court is expected to  deliberate on the assignment of the related appeal  to  a court. 
The Constitutional Court accepted in October to  pronounce itself on the constitutionality of 
the  criminal  judicial  procedure  following  his  arrest.  On  the  issue  of  the  delimitation  of  the 
maritime  border,  both  sides  agreed  to  jointly  refer  the  case  to  the  International  Court  of 
Justice.  In  December  2022,  the  Ministers  of  Foreign  Affairs  made  visits  to  each  other’s 
capitals.  In  September  2022,  the  first  joint  technical  meeting  in  the  context  of  a  future 
agreement on social insurance schemes took place in Athens.   

Relations with Italy remained very good. Political dialogue intensified with high-level visits 
on both sides. In September 2022, the President of Italy visited Albania. In December 2022, 
Albania’s Prime Minister met the Italian Prime Minister. The Albanian Minister for Europe 
and Foreign Affairs met the Deputy Prime Minister and Minister for Foreign Affairs of Italy 
in Rome in November 2022. Cooperation in the field of defence, justice and home affairs was 
further  strengthened,  including  in  the  areas  of  the  fight  against  cybercrime,  trafficking  in 
human beings, irregular migration and asylum.     

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  6);  intellectual  property  law 
(Chapter 7); competition policy (Chapter 8); financial services (Chapter 9) and consumer and 
health  protection  (Chapter  28).  This  cluster  is  key  to  Albania’s  preparations  for  the 
requirements  of  the  EU’s  internal  market  and  is  very  relevant  for  the  development  of  the 
Common Regional Market.  

Albania is moderately prepared in the areas of right of establishment and freedom to provide 
services,  free  movement  of  capital,  company  law,  intellectual  property  law  and  financial 
services. Some progress was made on intellectual property law as well as free movement of 
capital,  which  may  lead  to  the  country’s    removal    from  the  list  of  jurisdictions  under 
increased  monitoring.  Nevertheless,  Albania  should  ensure  that  any  future  VTC  law 
(including  potential  criminal  amnesties)  complies  with  the  EU  acquis  and  international 
standards. The country is in between some and moderate level of preparation in the area of 
the  free  movement  of  goods,  on  which  there  was  limited  progress,  and  competition  policy. 
Some  level  of  preparation  is  registered  on  freedom  of  movement  of  workers,  with  some 
progress notably on free movement of family members of EU citizens. Limited progress can 
also  be  reported  on  freedom  to  provide  services  and  company  law.  Preparations  are  at  an 
early stage on consumer and health protection, where the country has made limited progress; 
significant efforts are still needed notably on ensuring quality healthcare for all. No progress 
can  be  reported  on  competition  policy,  where  the  State  Aid  Commission  (SAC)  still  lacks 
operational independence.  

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. 

77 

 
 
 
limited  progress  overall  and  on 

Albania  is  in  between  some  and  moderate  level  of  preparation  in  the  area  of  free 
movement  of  goods.  There  was 
last  year’s 
recommendations,  notably  on  alignment  with  the  EU  acquis  on  simple  pressure  vessels. 
Despite an initial compliance check with Articles 34-36 TFEU this is so far only limited to 
the harmonise area). On the quality infrastructure, some legal bases are still not aligned and, 
though it has started the process, Albania is yet to fully join all the EU standards bodies. Last 
year’s  recommendations  therefore  remain  valid,  as  efforts  are  still  needed  to  ensure 
legislative alignment and to strengthen enforcement. 

In the coming year, the country should in particular: 

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

infrastructure i.e. on accreditation, conformity assessment and market surveillance; 

→  significantly strengthen the enforcement capacity of the market surveillance inspectorate; 

→  adopt an action plan for screening all domestic legislation, procedures, and administrative 
practices  for  compliance  with  Articles  34-36  of  the  Treaty  on  the  Functioning  of  the 
European Union (TFEU) which fully covers the non-harmonised area, with a timeframe 
for  screening  all  such  legislation  and  practices  and  for  introducing  mutual  recognition 
clauses or repeal and/or amend legislation and practices as necessary. 

General principles 

Albania’s  legislation  is  not  aligned  with  Articles  34-36  TFEU.  Plans  for  further  alignment 
with  the  EU  acquis  are  set  out  in  the  2023-2025  national  plan  for  European  integration 
adopted  in  February  2023,  and  in  the  current  consumer  protection  and  market  surveillance 
strategy. 

Non-harmonised area 

Albania needs to widen the scope of its work on drafting an action plan for screening national 
technical regulations to comply with Articles 34-36 of the TFEU, as thus far they have only 
focused on harmonised product sectors. The main purpose of such an action plan is to ensure 
that  there  are  no  issues  in  regard  to  the  non-harmonised  areas,  i.e.  to  ensure  that  any  non-
harmonised  legislation,  processes,  procedures  or  rules  fully  comply  with  Articles  34-36 
TFEU, or are covered by mutual recognition clauses. Albania therefore needs to ensure that 
its action plan to comply with Articles 34-36 TFEU also fully covers all the non-harmonised 
areas. 

Harmonised area: quality infrastructure 

Albania’s  legislation  on  accreditation  is  designed  to  be  aligned  with  the  EU  acquis,  while 
that on market surveillance is partially aligned. Administrative structures already exist to deal 
with  technical  regulations,  standardisation,  conformity  assessment,  metrology,  accreditation 
and market surveillance, but the recruitment of qualified staff to ensure market surveillance 
of all harmonised sectors needs to be completed. Albania has mutual cooperation agreements 
on accreditation, standardisation, and conformity assessment with some EU Member States, 
other countries in the region and other non-EU countries. 

On standardisation, the Albanian legal framework is designed to align with the EU acquis. 
Albania’s  General  Directorate  of  Standardisation  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, and 
78 

 
 
the 

issues 

identified  by 

the  subsequent  peer  review  by 
is  currently  addressing 
CEN/CENELEC  in  order  to  achieve  this  goal,  including  staffing.  National  standards  are 
adopted in conformity with EU standards (set by CEN, CENELEC and ETSI). In 2022, 1 828 
European  and  international  standards  were  adopted  (including  953  CEN-CENELEC,  384 
ETSI  and  491  International  Organization  for  Standardization  (IOS)  and  International 
Electrotechnical  Commission  (IEC)  standards).  During  January-September  2023  GDS 
adopted  737  European  and  International  standards  as  Albanian  standards  (including  430 
CEN-CENELEC, 151 ETSI, and 156 IOS and IEC standards). All the harmonised European 
standards were adopted as harmonised Albanian standards, all by the “cover page” menthod, 
and 318 standards were withdrawn.  

Albanian  legislation  on  the  accreditation  of  conformity  assessment  bodies  is  partially 
aligned  with  the  EU  acquis.  The  Directorate  of  Accreditation  (DPA)  has  full  operational 
capacities and has continued efforts to increase the administrative capacities through training 
of  DPA  staff,  technical  assessors  and  decision  makers  for  different  standards.  Albania  has 
109 accredited conformity assessment bodies (49 testing laboratories, 5 medical laboratories, 
1  calibration  laboratory,  8  certification  bodies  of  management  systems,  15  certification 
bodies  of  persons  and  31  inspection  bodies).  In  September  2022,  Albania  joined  the 
International  Accreditation  Forum  Multilateral  Recognition  Arrangement.  It  is  also  a 
signatory  of  the  European  co-operation  for  Accreditation  Multilateral  Agreement,  a  full 
member of the International Laboratory Accreditation Organisation (ILAC), and has a mutual 
recognition  agreement  with  ILAC  (ILAC  MRA).  The  General  Directorate  of  Metrology  is 
fully staffed  and operational.  It  is  a full member of the  International  Organization of Legal 
Metrology, the European Association of National Metrology Institutes (EURAMET) and the 
International  Measurement  Confederation,  and  an  associate  member  of  the  European 
Cooperation  in  Legal  Metrology  (WELMEC)  and  the  International  Bureau  of  Weights  and 
Measures.  Albania  has  not  yet  aligned  its  legislation  with  the  EU  requirements  on 
notification procedures.  

The  State  Inspectorate  for  Market  Surveillance  (SIMS)  remains  understaffed.  It  should 
continue to  increase the  number of staff, including  inspectors. In 2022, over 11 000 market 
surveillance  inspections  were  carried  out  in  Albania,  resulting  in  179  fines,  38  urgent 
measures, and 58 products being taken off the market, and in January-September 2023 there 
were  423  inspections  leading  to  56  products  being  in  nonconformity  resulting  in  19 
administrative measures (8 warnings, 8 fines and 3 urgent measures).   

Harmonised area: sectoral legislation  

In  the  area  of  ‘new  and  global  approach’  product  legislation,  Albania  adopted 
implementing legislation designed to be fully aligned with the EU acquis on simple pressure 
vessels.  However,  alignment  has  not  yet  started  on  equipment  and  protective  systems 
intended  for  use  in  potentially  explosive  atmospheres  (ATEX),  gas  appliances,  pressure 
equipment, recreational craft, and eco-design. 

On the ‘old approach’ product legislation, Albania is partly aligned with the EU acquis on 
textile labelling, footwear, crystal glass and aerosol dispensers. Its legislation is partly aligned 
with  the  EU  acquis  on  registration,  evaluation,  authorisation  and  restriction  of  chemicals 
(REACH); on chemical classification, labelling and packaging ; on aerosol dispensers, and on 
detergents.  Albania  is  not  aligned  with  the  EU  acquis  on  motor  vehicles,  two-  or  three-
wheeled  vehicles,  tractors  (agricultural,  forestry),  non-road  mobile  machinery  emissions,  or 
on good laboratory practice. 

79 

 
 
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, on crystal glass, on textile labelling, on the pricing of 
medicinal products,  and on footwear. Albania remains  partially aligned with  the EU  acquis 
on  defence  products  (transfer  of  defence-related  products),  and  on  the  return  of  cultural 
objects unlawfully removed from the territory of an EU Member State. 

Albania has anti-corruption measures in  place on transparency on accreditation,  conformity 
assessment,  tariffs,  legal  acts  and  the  activities  of  public  bodies.  Some  agencies  and  the 
customs administration that ensure market surveillance have rules on transparency, ethics and 
conflicts of interest, and are subject to audits. However, further efforts are needed in terms of 
enforcement and strengthening the capacities of market surveillance inspectorate.  

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 2022 report’s recommendations on free movement of 
family  members  of  EU  citizens,  strengthening  of  social  security  bilateral  agreements  and 
further development of the IT system for mapping job seeker vacancies (e.g the development 
of the National Agency for Employment and Skills (NAES) application,  providing real-time 
updated  information  about  jobs)  that  is  preparing  the  implementation  of  the  European 
network of employment services (EURES) upon accession. The development and adoption of 
17  pieces  of  implementing  legislation  of  the  Law  on  foreigners  was  in  line  with  the  2022 
report’s recommendations. In the coming year, Albania should: 

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

→  strengthen the enforcement of the Law on foreigners; 

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

notably with EU Member States.  

Regarding access to the labour market, Albania has in place a Law on foreigners, enabling 
simplified procedures for EU citizens settling in Albania, in line with the EU  acquis in this 
area. 17 pieces of implementing legislation of the Law on foreigners were adopted during the 
reporting  period,  making  the  law  fully  operational.  As  of  January  2023,  the  application 
procedure  is  further  simplified  as  employees  can  now  register  their  employment  contract 
online. In 2022, 1 281 EU citizens received a declaration of exemption for employment. 

A  cooperation  agreement  between  the  State  Labour  Inspectorate  and  Social  Services,  the 
National Agency for Employment and Skills (NAES), the Commissioner for Protection from 
Discrimination  and  the  Public  Procurement  Agency,  is  needed  to  strengthen  the  control  of 
law enforcement. The Ministry of Finance and Economy (MoFE) needs to intensify efforts to 
review  the  existing  bilateral  employment  agreements  and  introduce  the  new  bilateral 
cooperation  agreements  in  the  field  of  labour  migration  during  2023.  An  interinstitutional 
working group was set up in March 2023 for the preparation of the new migration strategy.  

In  preparation  for  joining  the  European  network  of  employment  services  (EURES), 
Albania  has  put  in  place  an  integrated  database  for  its  employment  services  that,  upon  its 
connection  to  EURES,  can  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 be further improved.  

80 

 
 
On  the  coordination  of  social  security  systems,  Albania  has  bilateral  agreements  with 
Austria, Belgium, Czechia, Germany, Hungary, Kosovo, Luxembourg, North Macedonia and 
Türkiye. Bilateral agreements with Bulgaria, Switzerland and Romania have been signed and 
are yet to be ratified. Negotiations with Croatia, Montenegro and Italy have been concluded 
and  agreements  are  yet  to  be  signed.  Discussions  on  coordinating  social  security  schemes 
have taken place with Greece, and Serbia. Negotiations and implementation of new bilateral 
agreements on social security between Albania and other EU Member States have yet to take 
place.  

In March 2023, NAES signed a cooperation agreement with the Public Employment Service 
of  Lithuania  intending  to  create  a  cooperation  framework  to  exchange  information  on 
employment and labour migration. 

Regarding the fight against corruption, Albania has put in place a cross-cutting strategy and 
action plan against corruption for 2020-2023. The Ministry of Interior has adopted its 2022-
2024  integrity  plan.  Authorities  have  increased  the  transparency  and  availability  of  digital 
services  as  all  relevant  information  on  access  to  the  labour  market  and  the  entry  or  exit  of 
foreign workers and self-employed people are available online. A co-governance platform is 
in place and enables people to denounce corruption in public services online.  

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. EU rules on postal  services focus on improving the quality of 
universal  service,  gradual  market  opening  to  competition,  and  the  establishment  of  an 
independent regulator. 

Albania  is  moderately  prepared  in  the  right  of  establishment  and  freedom  to  provide 
services. Limited progress was achieved in the reporting period, in particular in the field of 
freedom of establishment and free movement of services through the completion of the self-
screening of the legislation that needs to be aligned with the Services Directive. 

In the coming year, Albania should in particular: 

→  start amending the legislation to address the barriers to the freedom of establishment and 

free movement of services, which were identified in the self-screening exercise; 

→  continue  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, Albania completed 
the  self-screening  of  the  existing  legislation  for  the  remaining  18  sectors  to  identify 
provisions  that  need  to  be  aligned  with  the  Services  Directive.  The  entire  legislative  self-
screening  process  covered  38  sectors  and  resulted  in  the  identification  of  112  pieces  of 
legislation  where  amendments  are  needed  to  ensure  their  compliance  with  the  Services 
Directive.  The  National  Business  Centre  functions  as  a  one-stop-shop  for  registering 
businesses and issuing licences, authorisations and permits. The e-Albania portal serves as a 
single  contact  point  for  electronic  public  services  and  as  of  May  2022,  almost  95%  of 
services are offered online.  

The  national  legislation  on  postal  services  is  aligned  with  the  EU  postal  acquis,  where 
Albania has made good progress. Albaniais aligned with the Postal Services  Directive since 
2017,  following  the  abolishment  of  the  reserved  area  and  postal  market  opening  to  full 
competition, and has aligned with the Regulation on cross-border parcel delivery services in 

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June 2021. There is currently one universal service provider (Albanian Post SA) designated 
for a period of 5 years, starting from July 2020, and 33 other postal service providers on the 
market.  The  Electronic  and  Postal  Communications  Authority  (AKEP)  is  the  independent 
national regulatory authority responsible for the regulation and supervision of postal services 
in Albania. 

As regards aligning the professional qualifications framework with the acquis on the mutual 
recognition  of  professional  qualifications,  a  roadmap  on  professional  qualifications  was 
finalised  and  remains  pending  adoption.  Institutional  capacity  in  this  area  still  needs  to  be 
strengthened.  The  Albanian  legislation  currently  regulates  331  professions/professional 
qualifications.  In  January  2023,  Albania  signed  the  Agreement  on  Recognition  of  Higher 
Education  Qualifications  and  the  Agreement  on  Recognition  of  Professional  Qualifications 
for  Doctors  of  Medicine,  Dentists  and  Architects,  along  with  the  other  Western  Balkan 
countries, at the Berlin Summit.  

Chapter 4: Free movement of capital  

In  the  EU,  capital  and  investments  must  be  able  to  move  without  restriction,  with  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  implementation  of  Moneyval's  recommended  actions  and  the  Financial 
Action  Task  Force  (FATF)  Action  Plan.  In  June  2023  FATF  decided  to  propose  an  on-site 
visit,  which  took  place  in  August  and  led  to  Albania’s  delisting  in  October.  Nevertheless, 
Albania  should  ensure  that  any  future  VTC  law  (including  potential  criminal  amnesties) 
complies with the EU acquis and international standards. The issue of enabling EU citizens to 
acquire  land  remains  unresolved.  There  was  progress  on  further  alignment  of  the  national 
payment  system  legislation  with  the  EU  acquis,  particularly  in  the  area  of  the  E-Money 
Directive, the Payment Account Directive and on increasing financial literacy. 

In the coming year, Albania should in particular: 

→  ensure that any voluntary tax compliance legislation (including amnesties) is in alignment 
with  the  relevant  EU  acquis  and  international  standards  set  by  Moneyval  and  the 
Financial Action Task Force (FATF);   

→  step up efforts to  adopt  the relevant  legislation that would provide EU citizens with  the 

right to acquire land, which is outstanding since 2016; 

→  ensure fulfillment of the 2018-2023 national payment strategy; initiate the asessment for 

the mid-term strategic objectives.  

On capital movements and payments, Albania is lagging behind its commitment under the 
2006 Stabilisation and Association Agreement (SAA) to enable EU nationals and entities to 
acquire  agricultural  real  estate,  a  step  that  has  been  due  since  2016.  Provisions  that  would 
regulate  the  acquisition  of  agricultural  land  by  EU  citizens,  together  with  more  clarity  on 
ownership rights, would encourage more foreign investment in Albania.  

On  payment  systems,  foreign  banks  can  open  branches  and  agencies  in  Albania  and  offer 
cross-border  payments.  Albanian  legislation  is  partly  aligned  with  the  EU  acquis  on  direct 
debits and credit transfers. The measures introduced by the Bank of Albania in the context of 
COVID-19 restrictions in March 2020 to reduce the costs of payment system services and to 
promote  home  banking  remain  in  place  as  part  of  the  national  strategy  on  low-value 
payments. 

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Albania’s payment system committee, which is open to representatives of non-bank financial 
institutions  and  payment  system  operators,  is  implementing  the  2018-2023  national  retail 
payments strategy. The Law on payment services, designed to align national legislation with 
the  EU  Payment  Service  Directive  II  (PSD  II)  provisions  on  transparency  conditions  and 
information  requirements  for  payment  services,  came  into  effect  fully  in  July  2022. 
Implementing legislation has been adopted to further align with the  acquis on e-money and 
on access to payment accounts, and to increase transparency and competition in the payment 
system market. In March 2023, implementing legislation came into force on the supervision 
of e-money institutions, which sets among others the rules on management of risks related to 
this  activity,  supervision  and  requirements  on  e-money  issuers  There  are  nine  licensed 
electronic money institutions operating in Albania. The financial literacy of Albania’s  adult 
population continued to improve in 2022 (69% of adults now have a payment account), as did 
the  use  of  electronic  payments  (17.9  electronic  transactions  per  adult,  compared  with  12  in 
the  previous  year).  Further  efforts  are  needed  to  increase  e-payment  transactions  through 
credit cards, a service that is particularly in demand from the tourism sector, but which still 
remains  expensive  for  businesses.  Albania  does  not  apply  the  rules  of  the  Interchange  Fee 
Regulation,  as  the  government  considers  the  penetration  of  electronic  payments  to  be  very 
limited and concentrated in the capital.  

On  the  fight  against  money  laundering,  Albania  continued  its  efforts  to  address  the 
deficiencies  in  technical  compliance  identified  by  the  2018  Moneyval  mutual  evaluation 
report.  In  its  4th  enhanced  report  on  Albania,  released  in  June,  Moneyval  concluded  that 
Albania  has  improved  its  measures  on  tackling  money  laundering  and  terrorist  financing, 
strengthened transparency. The Law on money laundering is designed to be aligned with the 
EU  acquis  and  the  register  of  beneficiary  owners  is  operational,  though  amendements 
extended  the  registration  deadline  to  June  2022.  Although  the  Financial  Action  Task  Force 
assessed that Albania has substantially completed its 2020 action plan, the country remained 
on  the  FATF’s  list  of  jurisdictions  under  increased  monitoring  as  the  draft  VTC  law 
(including a criminal amnesty) that Albania sent to them in early 2022 did not comply with 
FATF  principles  or  best  practices.  In  June  2023  FATF  decided  to  propose  an  on-site  visit, 
which took place in August and led to Albania’s delisting in October. Nevertheless, Albania 
should  ensure  that  any  future  VTC  law  (including  potential  criminal  amnesties)  complies 
with  the EU acquis  and international  standards. (See also  chapters 24, Justice freedom and 
security and 16, Taxation).  

Albania has legislation in place on risk management standards and licensing requirements for 
financial  institutions,  including  non-banks  and  foreign  exchange  bureaux,  in  line  with 
Moneyval recommendations. Staffing levels at the Albanian Financial Intelligence  Unit (the 
new  name  of  the  General  Directorate  for  the  Prevention  of  Money  Launding  after  its 
renaming via amendments to the law on money laundering in July 2023)  have increased. It 
has  trained  its  employees  on  financial  investigation  techniques,  asset  tracing,  seizure  and 
confiscation,  on  risk-based  implementation  techniques,  and  on  cybercrime  prevention 
indicators.  

During  2022,  the  Bank  of  Albania  continued  its  inspections  to  70  foreign  exchange  offices 
(FEO) with the focus on observing the fulfillment of the requirements under the anti-money 
laundering  (AML)  legislation.  Substantial  discrepancies  were  identified  in  23  foreign 
exchange offices, related to inadequate knowledge about the AML legislation requirements; 
inappropriate procedures for client identification, and deficiencies in maintaining supporting 
documentation of foreign exchange operations.  The inspections concluded with  15 cases  of 
fines  and  8  cases  of  warning  notices  to  the  FEOs.  There  is  a  need  to  reinforce  internal 

83 

 
 
operational  procedures  and  improve  evidence-recording  of  suspected  cases,  and  an  overall 
need for training of staff of the FEOs about the anti-money laundering legal requirements. 

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. Limited progress was made 
mainly  on  further  legislative  alignment  on  transparency  requirements  for  listed  companies. 
As such, last year’s recommendations 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  make  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  and 
corporate governance  areas,  there was no legislative progress  during the reporting  period. 
Further  alignment  is  needed  with  the  2019  Directive  on  the  use  of  digital  tools  and  2019 
Directive on cross-border operations (mergers, divisions, conversions), as well as with rules 
on encouraging long-term shareholder engagement (2017 Directive), and gender equality on 
boards of directors (2022 Directive). 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  only  offered 
online through the e-Albania electronic service window. The national business register should 
be  ready  to  interconnect  with  the  EU  Business  Registers  Interconnection  System  upon  EU 
accession. 

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 
monitors  the  enforcement  of  financial  reporting  and  accounting  standards.  There  are 
guidelines  in  place  to  comply  with  the  EU  Directive  on  disclosure  of  non-financial  and 
diversity information by certain large undertakings and groups. Moving forward, Albania will 
need to align with the 2022 EU Directive on corporate sustainability reporting. The 2020 Law 
on  capital  markets  provides  specific  transparency  rules  for  listed  companies  regarding 
financial reporting, including fines in case of non-compliance. In January 2023, a regulation 
was  adopted  to  further  align  with  the  acquis  on  transparency  requirements  for  listed 
companies.  Currently,  there  are  no  listed  companies  that  are  subject  to  these  reporting 
requirements. On statutory audit, Albania should strengthen the capacity of the Public Audit 
Oversight  Board  in  terms  of  staffing  and  funding  and  further  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), 
copyright and related rights. Rules for the legal protection of IPR cover, for instance, patents 
and  trade  marks,  designs,  biotechnological  inventions  and  pharmaceuticals.  Rules  for  the 
legal protection of copyright and related rights cover, for instance, books, films, software and 
broadcasting. 

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Albania  is  moderately  prepared  on  intellectual  property  rights.  Some  progress  was  made 
with    improvements  in  the  transparency  of  the  functioning  of  collective  management 
organisations (CMOs).  

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  CMOs  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 related rights, the General Directorate of Industrial Property is 
responsible,  which    is  in  charge  of  registering,  adminstering  and  promoting  intellectual 
property  objects,  and  the  Copyright  Directorate  of  the  Ministry  of  Culture.  The  National 
Copyright  Council,  comprising  five  members  appointed  by  the  Minister  for  Culture,  is 
responsible for certifying the tariff methodology.  

The April 2022 amendments to the Law on copyright and other related rights further aligned 
the legal framework with the EU acquis in the areas of orphan works, 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 term of 
protection  of  copyright  and  certain  related  rights.  The  amendments  also  regulated  the 
functioning of CMOs, including the distribution manner and percentage of the fee, as well as 
the remuneration collected by the CMOs. To apply the new amendments, Albania still needs 
to adopt the implementing legislation concerning the procedure and fair compensation for the 
use of orphan works as well as the database of copyright works.  

In March 2023, Albania adopted an  act to make the functioning of CMOs more transparent 
and  in  June  2023,  guidelines  were  adopted  on  the  criteria  and  procedures  of  licensing  and 
renewal of licensing of CMOs and the criteria and procedures for suspension and revocation 
of collective management license. In July 2023, the government adopted a decision on the list 
of equipment, fees and the right to remuneration for the reproduction of copyright works for 
private  or  other  personal  use.  Albania  is  not  yet  aligned  with  the  Directives  on  online 
transmissions  of  broadcasting  organisations  and  retransmissions  of  television  and  radio 
programmes  (SatCab  II  Directive),  on  copyright  and  related  rights  in  the  Digital  Single 
Market  (DSM  Directive), and on the collective management of copyright  and related rights 
and multi-territorial licensing. 

On industrial property rights, the 2022-2025 national intellectual property strategy is being 
implemented. Albania needs to further align its legislation with the acquis on patents, trade 
marks.  

In 2022, 1 165 national and 2 072 international applications to register trade marks were filed 
with the with the General Directorate of Industrial Property  (compared with 1 404 and 2 107, 
respectively, in 2021). In 2022, 19 applications to register industrial designs were submitted 
to the General Directorate of Industrial Property (compared with 49 in 2021). There were 21 
applications for national patents in 2022, compared with 23 in 2021. 

The  State  Inspectorate  for  Market  Surveillance  (SIMS)  is  responsible  for  monitoring  the 
enforcement of intellectual property rights. In 2022, the copyright division of SIMS carried 
out  350  inspections,  resulting  in  44  administrative  sanctions.  The  SIMS  industrial  property 
division  carried  out  107  inspections  in  2022,  resulting  in  28  administrative  sanctions.  The 

85 

 
 
SIMS  division  on  industrial  property  rights  adopted  in  April  2023  a  manual  on  intellectual 
property  inspection.  In  2022,  the  customs  administration  suspended  the  release  of  2 140 
products suspected of infringing IPR (compared with approximately 3 000 products in 2021).  

Chapter 8: Competition policy 

EU rules protect free competition. They include antitrust rules against restrictive agreements 
between  companies  and  abuse  of  a  dominant  position,  and  also  include  rules  on 
concentrations  between  companies  which  would  significantly  impede  effective  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  is  in  between  some  and  moderate  level  of  preparation  in  competition  policy. 
There was no progress during the reporting period, including on 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. Last year’s recommendations remain 
valid. 

In the coming year, Albania should in particular: 

→  ensure  the  operational  independence  of  the  SAC  and  significantly  increase  the 

administrative capacity of the 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 and regional 
and  local  authorities  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  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 June 2023, the Albanian 
Competition Authority adopted a decision on an informal guidance aiming at alignment with 
the  relevant  Commission  Notice  on  novel  or  unresolved  questions  concerning  Articles  101 
and 102 of the TFEU that arise in individual cases. 

Regarding  the  institutional  framework,  the  Albanian  Competition  Authority    (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.  On  enforcement  capacity,  the 
ACA has maintained the total number of staff at  46, and staff have benefited from relevant 
workshops and training. On implementation, in 2022 the ACA took 99 decisions, including 
five  on  prohibited  agreements,  eight  on  abuse  of  a  dominant  position  and  50  authorising 
concentrations.  In  the  first  half  of  2023,  ACA  took  35  decisions,  including  two  on  a 
prohibited  agreement  and  23  authorising  concentrations.  In  2022,  ACA  assessed  30  draft 
legal  assessments,  mostly  concerning  legislation  in  the  energy  and  gas  market.  During  the 
reporting  period,  the  ACA  has  carried  out  the  preliminary  and  in-depth  investigation 
procedures,  in  several sectors of the economy  where dawn  raids  were conducted, including 
higher  education,  non-banking  financial  entities,  digital  production,  transport-taxi  services, 

86 

 
 
market  of  concrete  production  and  importing  and  trade  of  vegetable  oil.The  ACA  should 
continue to strengthen its enforcement of competition rules. 

State aid 

On  the  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. 

Regarding  the  institutional  framework,  the  SAC  is  responsible  for  implementing  the  Law 
on  State  aid.  Its  operational  independence,  which  is  required  by  the  SAA,  has  yet  to  be 
guaranteed, given that it is an arm of  the Ministry of Finance and Economy. The SAC can 
order the recovery of illegal and incompatible aid but has not done so to date. Its decisions 
can be appealed in the courts. 

The SAC’s enforcement capacity remains insufficient as the staffing of its secretariat needs 
to  be  significantly  increased.  On  implementation,  in  the  second  half  of  2022,  the  SAC 
approved four decisions on the authorisation of State aid In June 2023, the SAC approved a 
decision  on  authorising  State  aid  in  the  field  of  photovoltaics.  No  negative  or  recovery 
decision  was  taken.  The  enforcement  track  record    on  State  aid  control  needs  to  be 
significantly improved. Advocacy activities among 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  to  ensure  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  in  between  moderate  and  a  good  level  of  preparation  in  the  area  of  financial 
services.  Some  progress  was  made  on  last  year’s  recommendation  on  improving  collateral 
execution by bailiffs, as the pending legal issue on service fees was addressed, and there was 
also  progress  on  the  alignment  of  national  capital  market  legislation  with  the  relevant  EU 
acquis,  and  on  incorporating  sustainable  financing  principles  both  in  banking  and  non-
banking  strategic  policies  and  objectives.  The  country  should  make  further  efforts  to  align 
with  the  financial  services  acquis,  focusing  on  the  priorities  identified  based  on  the  current 
state of play. Some of last years’ recommendations remain valid.  

In the coming year, Albania should: 

→  continue  the  work  towards  full  alignment  of  the  banking  regulation  with  the  revised 

versions of the EU acquis on CRR/CRD and BRRD; 

→  step  up  efforts  to  further  align  the  legislation  in  the  fields  of  private  pensions  and  on 

capital markets with the relevant EU acquis; 

→  continue to work towards alignment with the Solvency II Directive; 

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

87 

 
 
legislation  designed  to  be  aligned  with  the  acquis  on  the  internal  liquidity  adequacy 
assessment process, providing 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 was further aligned with the acquis on new credit risk requirements.  

Albania’s legislation is partially aligned with  the EU  acquis  on the recovery and resolution 
framework for banks.  Albania should continue working  towards full alignment with  BRRD 
II. Regarding the implementation of the framework, as all banks now have resolution plans, 
the  BoA  carried  out  on-site  bank  inspections  to  strengthen  their  resolvability,  and  issued 
recommendations  to  the  banks  concerned.  A  2023-2025  strategy  on  administration  and 
supervision  of  financial  risks  related  to  the  climate  of  financial  sector  was  adopted  in  May 
2023. 

Albania’s legislation is  partially aligned with  the EU  acquis on deposit  guarantee schemes. 
Non-aligned  areas  include  the  maximum  level  of  coverage,  depositors  excluded  form 
coverage and pay-out period. 

In  2023,  the  Bank  of  Albania  was  invited  by  the  Single  Resolution  Board  to  participate  in 
resolution college meetings, for two banking groups with subsidiaries operating in Albania. 
As it was on the FATF list of jurisdictions under increased monitoring (see also chapter 4: 
Free  movement  of  capitals  for  more  details),  Albania  has  not  been  assessed  for  banking 
equivalence under the Capital Requirements Regulation.   

The non-performing loan ratio continued to decrease (5% in December 2022 compared with 
5.6%  in  December  2021).  The  full  implementation  of  the  bankruptcy  law  enables  further 
execution  of  the  non-performing  loan  resolution  strategy.  The  legal  decision  on  bailiff  fees 
also made it possible to adopt the collateral execution procedure.  

Eleven  banks  are  currently  operating  in  Albania  (including  two  systemic  banks  which  are 
subsidiaries of foreign groups), which has a system to identify systemically important banks 
in  place  that  is  similar  to  EU  practice.  The  BoA  has  an  investment  policy  on  the  financial 
assets of the resolution fund. The supervision and regulation system of the financial sector is 
ensured by the BoA  and by the national financial  supervisory authority (AFSA),  which are 
independent institutions that are accountable to parliament. In 2022, BoA ensured 13 on-site 
supervision  inspections  (compared  with  16  in  2021).  Three  more  full-scope  inspections  on 
banks were conducted during the first half of 2023 and one partial inspection focusing on the 
implementation of the national standards on financial reporting. Four more partial inspections 
took place in the third quarter of 2023. There have been 81 on-site inspections between 2018 
and  2023,  leading  to  recommendations  to  the  respective  entities.  Albania  needs  to  step  up 
efforts to align its legislation on capital markets with the relevant EU acquis. In April Albania 
adopted a policy  document  on  capital  market  development  2023-2027,  and in  August 2023 
AFSA  adopted  a  2023-2027  strategy  foer  the  financial  supervisory  authority  for  financial 
literacy and financial inclusion.  

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.  National 
law provides for voluntary implementation of the bonus-malus (no claims bonus) system by 
insurance  agencies.  There  is  only  a  limited  possibility  to  insure  agricultural  production 
against natural disasters (floods, droughts and fires). In September 2023, Albania adopted a 
Law on private pension funds, designed to be aligned with the EU acquis on the activities and 
supervision of institutions for occupational retirement provision (IORP II). 

The insurance market continues to be dominated by the non-life insurance companies (eight 
out  of  12  insurance  companies  are  non-life  insurers,  one  of  which  carries  out  reinsurance 
88 

 
 
activities).  Insurance  market  results  were  positive  in  2022,  mainly  due  to  the  good 
performance of the non-life insurance sector. Since March 2022, AFSA is a member of the 
International  Association  of  Insurance  Supervisors  via  an 
international  supervisory 
cooperation  and  information  exchange  agreement.    In  June  2023  Albania  completed  a  self-
review of the level of compliance with the IAIS core principles. This concluded that Albania 
is fully compliant with 10 out of 24 principles and in other 12 as largely observed them. In 
May 2023 AFSA adopted a risk-based supervision manual for the insurance market. During 
the reporting period, AFSA signed two bilateral memorandums of understanding (MoUs) on 
the  exchange  of  information  and  cooperation  with  their  equivalents  in  Malta,  Luxembourg 
and  Austria.  There  are  five  pension  funds  in  Albania  that  offer  a  voluntary  private  pension 
scheme.  They  had  36 518  registered  members  in  2022,  an  increase  compared  with  2021. 
Albania needs to step up efforts to align its legislation on private pensions with the relevant 
EU acquis. 

On  the  financial  market  infrastructure,  the  Albanian  Stock  Exchange,  which  is  a  private 
entity,  only  deals  with  government  bonds.  After  its  suspension  in  April  2022,  the  stock 
exchange  is  no  longer  registered  as  a  licensed  financial  operator  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-government 
securities.  ALREG  is  an  indirect  participant  in  the  BoA’s  Albanian  interbank  payment 
system. The agreement between the BoA and AFSA stipulates that the BoA is responsible for 
minimising  systemic  risk,  and  AFSA  is  responsible  for  investor  protection.  AFSA  adopted 
the guarantee fund’s regulation, making the post-trade infrastructure fully operational.  

Albania’s legal framework on capital markets is partially aligned with MiFID II and with the 
acquis  on  transparency,  market  abuse,  prospectuses,  settlement  and  central  securities 
depositaries.  During  the  reporting  period,  Albania  adopted  four  pieces  of  implementing 
legsilation    designed  to  further  align  its  capital  market  legislation  with  the  EU  aquis  on 
transparency, on prospectuses and on investment firms.  

Albania’s  capital  market  has  two  segments:  i) government  securities  and  ii)  bonds  issued 
through private placement. Thirteen entities currently operate in the Albanian capital market, 
all are banks apart from one central  securities depository and the non-operational  securities 
exchange.  

On the securities markets and investment services, AFSA continues to supervise securities 
markets  in  accordance with Albania’s Law on  capital  markets.  Security  markets  in  Albania 
consist  mainly  of  government  securities  and  bonds  issued  through  private  placements.  The 
amount of bonds with private placements registered at ALREG reached EUR 90.5 million in 
December 2022. The launch of a digital platform in August 2022 makes it possible to provide 
investment services (the offering of treasury bills).  

In the area of sustainable and digital finance, while the 2023-2027 AFSA strategy includes 
priority actions with green/sustainable financing aspects, Albania should take further steps to 
accommodate sustainable finance aspects in its regulatory and legal financial framework. In 
addition,  Albania  should  incorporate  sustainable  considerations  in  its  disclosure  regime  for 
both  non-financial  and  financial  companies,  in  order  to  improve  the  availability  of  reliable 
data  on  banks’  credit  risk  exposures  and,  therefore,  fully  implement  the  Bank  of  Albania’s 
Medium-Term Strategy on the management and supervision of climate-related financial risks 
in the banking sector. The Bank of Albania is also cooperating with international institutions, 
such  as  the  World  Bank  and  the  International  Monetary  Fund,  to  further  integrate 
green/sustainable  finance  aspects  in  its  regulatory  framework.  Albania  should  incorporate 

89 

 
 
sustainable  and  digital  financing  principles  both  in  banking  and  non-banking  strategic 
policies and objectives. 

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 has rules for upholding patients’ rights in cross-border healthcare and in 
preparing  for  and  responding  to  cross-border  health  threats,  including  communicable 
diseases. 

Preparations are at an early stage in the area of consumer and health protection. There was 
only limited progress on last year’s recommendations, which remain relevant, via alignment 
to the EU acquis on serious cross-border health threats (though the implementing legislation 
remains  to  be  adopted)  and  its  integration  in  the  EU  COVID-19  surveillance  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.  Alternative  dispute  resolution  bodies  in  regulated 
sectors are also now being ensured. 

In the coming year, Albania 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  financial  and  human  resources  in  the  health  sector,  specifically  in  primary 
healthcare  and  all-hazard  health  emergency  preparedness,  based  on  the  lessons  learnt 
from the COVID-19 pandemic to strengthen responses, both at central and local level; 

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

Consumer protection  

On  horizontal  aspects,  Albania  needs  to  adopt  its    2023-2030  cross-cutting  strategy  on 
consumer  protection  and  market  surveillance  setting  out  its  current  consumer  policy.  The 
national  legal  framework  in  this  area  are  Albania’s  Laws  on  consumer  protection  and  on 
general  safety  of  non-food  products,  and  relevant  national  implementing  legislation. 
However,  national  legislation  is  not  yet  aligned  with  the  EU  acquis  on  package  travel  and 
linked travel arrangements or with the recent EU acquis on digital content. It is also not yet 
aligned with the revised EU acquis on the sale of goods or with the changes in the EU acquis 
brought  by  the  Directive  on  better  enforcement  and  modernisation  of  Union  consumer 
protection  rules.  Consumer  policy  and  legislation  are  implemented  by  the  Consumer 
Protection  Commission  (CPC),  the  State  Inspectorate  of  Market  Surveillance  (SIMS),  the 
financial  supervisory  authority,  alternative  dispute  resolution  bodies  in  regulated  sectors, 
local  government,  the  civil  aviuation  authority  and  the  legal  authorities.  CPC  held  three 
meetings  in  2022  and  addressed  22  cases,  and  10  more  cases  were  addressed  during  its 
meeting on April 2023. The CPC respective decisions were published in its website. Albania 
needs  to  increase  human  resources  and  capacity  in  many  of  these  bodies,  and  improve 

90 

 
 
coordination  between  them.  Albania  is  currently  negotiating  to  join  the  EU  consumer 
protection programme, under the EU single market programme. 

On  enforcement  and  redress,  Albania  has  not  yet  updated  its  legal  measures  to  further 
extend  the  investigative  and  enforcement  powers  of  competent  authorities  to  align  with 
Regulation  2017/2394  on  cooperation  between  national  authorities  responsible  for  the 
enforcement of consumer protection laws. It is also not yet aligned with Directive 2013/11 on 
consumer alternative dispute resolution. 

On product safety, Albania’s Law on the general safety of non-food products is designed to 
be  aligned  with  the  EU  acquis,  apart  from  aspects  only  relevant  to  EU  Member  States, 
notably concerning obligations linked to Safety Gate, which is the EU rapid alert system for 
dangerous non-food products previously called ‘RAPEX’. Albanian legislation has a limited 
level  of  alignment  with  the  acquis  on  product  liability.  The  State  Inspectorate  for  Market 
Surveillance was restructured in June 2020 and, although the number of posts increased from 
69  to  80  (69  staff  are  currently  employed)  it  is  still  understaffed.  It  should  continue  to 
increase the number of staff, including inspectors. In 2022, over 11 000 market surveillance 
inspections  were  carried  out  in  Albania,  resulting  in  179  fines,  38  urgent  measures,  and  58 
products being taken off the market.   

Public health 

On  public  health,  Albania  is  implementing  its  2021-2030  health  policy  and  2020-2025 
action document on primary healthcare; the latter aims to tackle health inequalities. The level 
of public spending on health remains low, at 3.04% of GDP and 9.47% of total government 
spending (according to 2022 government data), and is lower than in most countries in south-
eastern Europe and the EU. Health funding prioritises curative care over preventive care and 
hospital-based treatment over primary healthcare. In Albania, average life expectancy at birth 
is higher for women than men (80.5 years versus 77.4 years), but women have shorter healthy 
lives than men (51.9 years versus 54.6 years), even though women are less exposed to some 
of the key health risk factors, such as smoking or alcohol abuse. Neonatal mortality in 2021 
was 7 per 1 000 live births, an improvement on 2020 (8 per 1 000) but  still high compared 
with other countries in the region.  

The  Ministry  of  Health  and  Social  Protection  and  the  National  Agency  of  Information 
Society  (NAIS)  are  responsible  for  e-health.  The  Ministry  of  Health  and  Social  Protection 
operates  an  electronic  system  for  collecting  and  reporting  health  information  from  medical 
records,  based  on  the  European  Core  Health  Indicators.  Albania’s  e-prescription  covers  the 
description,  registration,  execution  and  reimbursement  of  prescriptions,  and  there  is  an  e-
warehouse system for pharmaceutical products. Albania also has an e-visit system to record 
patients’ visits to primary healthcare centres,  an e-referral system to digitalise referrals, and 
an  e-report  system  to  automate  electronic  medical  reports,  which  makes  it  possible  to  send 
electronic reports to employers and employees, and which includes e-signatures by doctors. 
Health  statistics,  health  infrastructure,  equipment  and  human  resources  remain  inadequate, 
especially in rural areas. 

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 or events 
or  to  provide  feedback.  Albania  has  a  national  blood  transfusion  centre,  regional  blood 
centres  and  blood  banks  for  collection  and  distribution,  comprising  31  entities  in  total. 
Albania  has  a  kidney  transplant  programme  in  place,  as  well  as  a  national  protocol  on  the 
issue.  Albania  does  not  yet  have  the  capacity  for  transplants  from  deceased  donors  or  for 
corneal donations. 

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On tobacco control, national legislation on tobacco products is designed to be aligned with 
the  EU  acquis,  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 other tobacco legislation with the EU acquis.  

In the field of serious cross-border health threats including communicable diseases, the 
legal base is designed to be in line with the EU acquis, but relevant implementing legislation 
still  remains  to  be  adopted.  While  Albania  has  an  antimicrobial  resistance  action  plan,  the 
COVID-19  pandemic  demonstrated  significant  shortcomings.  It  stretched  the  system’s 
capacity  to  provide  immediate  access  to  medical  supplies,  protective  equipment,  and 
stretched  the  digital  infrastructure  required  to  maintain  essential  services  and  protect 
healthcare personnel and patients, demonstrating a lack of resources. Albania isa signatory to 
the EU Joint Procurement Agreement on medical countermeasures. 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).  It  is  also  part  of  the  European  Centre’s  viral  respiratory  disease  surveillance 
networks,  in  which  it  reports  on  several  communicable  diseases.  Albania  should,  however, 
improve  the  timeliness  and  completeness  of  the  reported  data  it  provides.  In  late  2022, 
Albania introduced HPV vaccination for 13 year-old girls.  

Albania’s legislation on patients’ rights in cross-border healthcare is not yet 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  counterfeit  medicines  in  the  legal  supply, 
although  some  provisions  are  in  place  to  address  this  risk.  Additional  efforts  are  needed  to 
protect the public from counterfeit medical products and to improve cross-border cooperation 
on  sustainable  access  to  medicines  and  their  correct  use.  There  were  no  developments  or 
expertise  available  on  paediatric  medical  products,  medical  products  for  diagnosis,  orphan 
medical  products,  medical  products  based  on  genes  (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 are in place, but a cancer registry has still not been created. There is a 
breast  cancer  screening  programme,  which  includes  systematic  examinations  for  women 
between  50  and  60  years  of  age,  along  with  free,  on  demand,  clinical  breast  examinations. 
Screening  forolorectal  cancer  is  conducted  as  part  of  a  free  check-up  programme  offered 
annually to  all  Albanian citizens  aged between 35 and 70 years of age.  In September 2023 
Albania  adopted  the  2023  –  2026  mental  health  action  plan,  which  aims  to  promote  care 
mental health and well-being for all citizens. 

On  nutrition  and  physical  activity,  malnutrition  remains  a  critical  issue,  especially  for 
children and pregnant women. Albania needs to develop a nutrition plan and raise awareness 
in  schools  and  community  centres  of  the  risks  of  malnutrition.  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 to function fully.  

On health inequalities, implementation of the 2020-2025 primary healthcare strategy should 
provide better access to healthcare services for vulnerable communities, as well as increased 
community  primary  healthcare  coverage,  giving  priority  to  vulnerable  groups.  Health 
inequalities  have  a  particular  impact  on  women,  especially  women  from  rural  areas  and 
disadvantaged communities, women with disabilities, Roma and Egyptian women (who face 
92 

 
 
problems  of  access  to  abortion),  LGBTIQ  people  and  migrant  women.  Further  efforts  are 
needed to provide healthcare to people with disabilities and to populations in rural and remote 
areas,  and  to  improve  mental  health  services  for  children.  The  national  plan  for  equality, 
inclusion  and  participation  for  Roma  and  Egyptians  2021-2025,  designed  to  improve  their 
access to healthcare, is ongoing. There has been a slight increase in the number of Roma and 
Egyptians  in  informal  settlements  benefiting  from  health  services.  However,  the  recently 
established  post  of  Roma  and  Egyptian  health  mediator  is  not  yet  operational  and  they 
continue  to  face  barriers  in  accessing  health  services.  Health  insurance  coverage  for  Roma 
and Egyptians remains low.  

On  anti-corruption  regarding  consumer  protection,  agencies  and  the  customs  administration 
that  ensure  market  surveillance  have  rules  on  transparency,  ethics  and  conflicts  of  interest, 
and are subject to audits. Ass regards public health there are specific anti-corruption measures 
in  place  for  cosmetics,  and  there  are  systems  in  place  to  control  pharmaceutical 
manufacturers and to track veterinary medicine stocks. The national medicines agency has a 
range of anti-corruption and whistle blower provisions in place. 

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 union (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,  social  policy  and 
employment,  enterprise  and  industrial  policy,  education  and  culture  and  customs  union. 
Albania  has  some  level  of  preparation  science  and  research.  The  country  has  made  good 
progress  in  digital  transformation  and  media,  by  joining  the  digital  Europe  programme  in 
2023,  and  on  enterprise  and  industrial  policy  as  well  as  limited  progress  in  the  area  of 
taxation. The country is in between a moderate and a good level of preparation on economic 
and  monetary  policy,  as  the  governance  and  monetary  policy  of  the  Bank  of  Albania  were 
appropriate and effective to deal with the crisis caused by Russia’s war of aggression against 
Ukraine;  more  efforts  are  required  regarding  its  independence.  With  only  limited  progress 
made  on  the  customs  union,  more  efforts  are  required  as  well  in  pursuing  the  fight  against 
smuggling, corruption and imports of counterfeit products. 

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 levels of competitiveness, high unemployment, and the economic impacts of 
the Russian war of aggression against Ukraine. 

Chapter 10: Digital transformation and media 

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

internal  market 

functioning  of 

the  smooth 

the 

Albania  is  moderately  prepared  in  the  field  of  digital  transformation  and  media.  Good 
progress  was  made  on  following  up  the  recommendations  of  last  year’s  report,  with  the 
implementation of the 2022-2026 digital agenda and e-government services offering 95% of 
public services online. A Law on electronic communication is yet to be adopted to align with 
the  new  European  Electronic  Communications  Code.  The  Law  on  audiovisual  media  was 
amended  in  May  2023,  to  align  with  the  2018  EU  Directive  on  audiovisual  media  services 

93 

 
 
ensuring  country’s  continuous  participation  in  Creative  Europe  Programme.  The  Law  on 
electronic identification and trust services is yet  to be adopted. In 2023, Albania signed the 
association  agreement  joining  the  Digital  Europe  programme  and  introduced  coding  as  a 
subject for students in the first grade. 

In the coming year, Albania should in particular: 

→  complete the extension of the 112 emergency number to the whole country;  

→  adopt  relevant  legislation  to  implement  the  new  European  Electronic  Communications 
Code and enact the law on cybersecurity to ensure closer alignment with the EU Directive 
on measures for a high common level of cybersecurity across the Union (NIS II); 

→  improve 

the  collection  of  statistical  data  on  digital  performance  and  digital 

competitiveness. 

On  electronic  communications  and  information  and  communications  technologies 
(ICT),  limited  progress  was  made  in  implementing  the  112  single  European  emergency 
number.  An  interinstitutional  working  group  was  set  up  to  prepare  a  draft  Decision  for  the 
Council of Ministers on rolling out 112 across the country. 

In  2022,  fixed  internet  broadband  reached  585 285  entities  (535,049  household  subscribers 
and  50,236  businesses),  up  5%  from  2021.  The  penetration  rate  was  about  21%  of  the 
population, with 80% of households covered by fixed broadband connections. There is still a 
gap in fixed internet broadband penetration between urban and rural areas. Only 20% of total 
number  of  fixed  broadband  connection  is  in  rural  area,  while  the  rural  area  population  is 
about 40%.  The mobile penetration rate at the end of 2022 was 77% compared with 73% at 
the  end  of  2021.  By  the  end  of  2022,  there  were  2.14  million  active  users  of  mobile 
broadband, slightly up from 2021 (2 million).  

In the area of information society services, the strategic documents of the 2022-2026 digital 
agenda  of  Albania  are  in  line  with  the  EU  Digital  Decade  programme.  Authorities  need  to 
adopt  the  new  Law  on  Electronic  Communications  to  align  with  the  2018  European 
Electronic Communications Code Directive.  

Albania concluded an agreement for its association to the Digital Europe Programme in June 
2023. On digital skills, coding has been introduced in 100 schools from the first grade for the 
2022-2023 academic year, by setting up 100 smart labs in schools across the country.  

As regards online public services, during the reporting period 95% of applications for 1 217 
public services were done online, with 7 833 332 e-sealed documents downloaded in 2022 by 
more  than  2.8  million  registered  users  on  the  e-Albania  portal.  Of  these,  only  about  1.5 
million  are  active  users.  This  adds  up  to  14 276 256  individual  uses  of  e-services  in  2022. 
Authorities need to ensure and facilitate equal access to online services for all citizens and to 
enhance efforts to align with the Digital Services Acte and Digital Markets Act.  

Albania concluded discussions on the allotment of bandwidth with neighbouring countries in 
September 2022, while the migration strategy was also developed in  2022. The Ministry of 
Infrastructure  and  Energy  (MIE),  along  with  the  Electronic  and  Postal  Communications 
Authority,  made  an  assessment  on  the  building  permit  for  electronic  communication 
networks. Amendments to the Decision of the Council of Ministers on building permits for 
electronic  communications  networks  were  adopted,  aiming  to  simplify  the  process  to  grant 
permits  for  the  deployment  of  the  5G  network.  In  July  2022  an  interinstitutional  working 
group on the release of Digital Dividend 2 was set up, which is responsible for coordinating 
activities and for proposing to the competent bodies all the pieces of implementing legislation 

94 

 
 
that will be necessary to carry out this initiative including the release of the 700 MHz band. 
In  December  2022,  Albanian  operators  signed  the  cooperation  agreement  to  reduce  data 
roaming  charges  between  the  Western  Balkans  and  the  EU.  The  Law  on  electronic 
identification and trust services, needs to be adopted. 

In response to the large-scale cyber-attacks that were detected in July and September 2022, 
the government has begun to considerably strengthen its cybersecurity architecture, including 
by  appointing  a  National  Coordinator  for  Cybersecurity,  setting  up  a  government 
Cybersecurity Operations Centre, developing a new, yet to be adopted, Law on cybersecurity 
aiming to further align with the NIS2 directive. The list of critical information infrastructures 
and  important  information  infrastructures,  as  approved  by  the  Decision  of  the  Council  of 
Ministers,  has  increased  from  140  to  289,  and  now  covers  sectors  such  as  government, 
energy, health, finance, transport, digital and water supply. The 2020-2025 national strategy 
for  cybersecurity  and  its  action  plan  are  in  place.  The  National  Authority  on  Electronic 
Certification and Cybersecurity is preparing to set up a national operations centre for cyber 
defence,  including  by  appointing  a  National  Coordinator  for  Cybersecurity  and  allocating 
additional  resources.  A  government  cybersecurity  operations  centre  was  created  within  the 
National  Agency  for  Information Society and is  responsible for cybersecurity incidents  and 
crises  within  governmental  systems.  Albania  concluded  agreements  on  cybersecurity  with 
Israel,  Saudi  Arabia  and  the  United  Arab  Emirates.  Authorities  need  to  further  strengthen 
cyber security capacities including through awareness raising activities and trainings. Stonger 
cooperation with the private sector and civil society is needed.   

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

On  audiovisual  policy,  in  May  2023  authorities  adopted  amendments  to  the  Law  on 
audiovisual media, aligning with the EU’s 2018 Audiovisual Media Services Directive, thus 
ensuring the country’s continued participation in the Media and Cross-sectoral strands of the 
Creative  Europe  programme.  In  July  2023,  the  Audiovisual  Media  Authority  approved  the 
new Broadcasting Code defininig principles, rules,  requirements  and practices of audio  and 
audiovisual broadcasting in Albania.   

In  March,  the  MIE  approved  the  action  plan  on  integrity  risk  management  for  2022-2025, 
while  the  National  Authority  on  Electronic  Certification  and  Cybersecurity,  the  Electronic 
and  Postal  Communications  Authority  and  the  MIE  have  in  place  their  respective 
transparency programmes.  

Chapter 16: Taxation 

EU  rules  on  taxation  cover  value-added  tax,  excise  duties  as  well  as  aspects  of  corporate 
taxation. They also cover 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, 
through  some  streamlining  of  excise  rates,  consolidation  of  the  scope  of  the  fiscalisation 
process  and  in  the  effective  implementation  of  financial  account  information  with  EU 
Member States in line with the OECD Global Standard. The adoption of the new income tax 
law aims at partial alignment with the anti-tax avoidance and merger directives. The country 
remained on the FATF’s list of jurisdictions under increased monitoring as the draft tax and 
criminal  amnesty  law  that  Albania  sent  to  them  in  early  2022  did  not  comply  with  FATF 
principles  or  best  practices.  In  June  2023  FATF  decided  to  propose  an  on-site  visit,  which 
took place in August and led to Albania’s delisting in October. Nevertheless, Albania should 
ensure  that  any  future  VTC  law  (including  potential  criminal  amnesties)  complies  with  the 
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EU acquis and international standards. Albania committed to amend or abolish the industrial 
incentive regime by 31 December 2023, since it has been identified as a potentially harmful 
tax regime within the scope of the Forum on Harmful Tax Practices.   

In the coming year, Albania should in particular: 

→  reduce tax expenditures, in particular due to exemptions; 

→  simplify the taxation system to further encourage more tax compliance;  

→  amend or abolish by 31 December 2023 the industrial incentives regime, considered as a 
potentially harmful tax regime within the scope of the Forum on Harmful Tax Practices. 

On indirect taxation, the standard VAT rate is 20% and the reduced rates are 6% and 10%. 
There remains a substantial number of exemptions not forseen in the EU acquis. In 2022, in 
response  to  the  energy  price  crisis,  Albania  exempted  from  VAT  the  import  and  sale  of 
electricity  through  the  Albanian  power  exchange.  In  addition,  the  import  and  supply  of 
firewood  were  also  exempted  from  VAT  until  the  end  2023.  The  quarterly  total  of  VAT 
refund  arrears  is  published  regularly.  The  total  of  outstanding  VAT  reimbursement  arrears 
was almost entirely cleared by the end 2021, and this has remained so in 2022, thanks in part 
to the use of an automated risk-based procedure.  

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 2023, the reduced rates for small 
producers of beer and spirits were abolished. The excise duty for accumulators was removed 
in 2022. 

The  new  calendar  for  cigarette  excise  rates,  approved  in  November  2021,  continued  to  be 
applied.  It  envisages  a  15%  increase  over  4  years  to  approximately  EUR 65  per  1 000 
cigarettes  by  2026,  thus  gradually  aligning  with  the  EU  minima,  which  currently  stands  at 
EUR 90 per 1000. 

On  direct  taxation,  financial  institutions  are  legally  required  to  calculate,  withhold  and 
declare income tax on income from savings. On corporate income tax, a number of provisions 
are partially aligned with the Anti-Tax Avoidance Directive. In March 2023, Albania adopted 
the  Law  on  Income  Tax  in  March  2023,  which  is  partially  aligned  with  provisions  of  EU 
Directives on anti-tax avoidance and mergers.  

Albania has committed to amend or abolish by 31 December 2023 the industrial  incentives 
regime. 

Although the Financial Action Task Force assessed that Albania has substantially completed 
its 2020 action plan, the country remained on the FATF’s list of jurisdictions under increased 
monitoring as the draft tax and criminal amnesty law that Albania sent to them in early 2022 
did  not  comply  with  FATF  principles  or  best  practices.  In  June  2023  FATF  decided  to 
propose an on-site visit, which took place in August and led to Albania’s delisting in October. 
Nevertheless,  Albania  should  ensure  that  any  future  VTC  law  (including  potential  criminal 
amnesties)  complies  with  the  EU  acquis  and  international  standards’.On  administrative 
cooperation  and  mutual  assistance,  Albania  ratified  a  Double  Taxation  Agreement  with 
Finland in 2023 and signed a double taxation agreement with Slovakia in May 2023. Albania 
is yet to conclude double taxation agreements with Denmark, Cyprus, Lithuania, Portugal.  

The Law on automatic exchange of information on financial accounts is partially aligned with 
the  relevant  2014  EU  Directive.  Albania  has  automatically  exchanged  financial  account 
information with 77 jurisdictions (including 24 EU Member States) in 2022 and has received 

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information from 68 jurisdiction (of which 21 EU member States) within the framework of 
the OECD common reporting standard.  

Regarding operational capacity, the number of vacancies in the tax administration remains 
high, up from 155 vacancies in 2022 to 181 in March 2023. The annual training programme 
is  needs-based  and  1 040  employees  of  the  General  Direct  orate  of  Tax  (GDT)  received 
training in 2022. Computerisation of the fiscalisation process is considered fully complete. 
All B2G, B2B and B2C transactions are carried out only through the fiscalisation system and 
the information is reported in real time to the tax administration. Efforts need to be kept up to 
ensure and increase compliance and to increasingly use the available data in tax monitoring 
and risk assessments.  

Chapter 17: Economic and monetary policy 

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

Albania is in between moderate and a good level of preparation in the area of economic 
and monetary policy. It made some progress as the governance and monetary policy of the 
Bank of Albania were appropriate and effective to deal with the crisis caused by Russia’s war 
of  agression  against  Ukraine.  It  made  progress  on  last  year’s  recommendations  to  improve 
government’s  policy  coordination  and  consultation  mechanism  with  non-governmental 
stakeholders,  though  it  still  needs  to  improve  the  effectiveness  of  its  stakeholder 
consultations.  The  lower  number  of  budget  amendments  improved  the  credibility  of  the 
budget process. However, alignment of the Law of the Bank of Albania with the EU acquis 
was postponed. Alignment of government and national accounts to ESA2010 increased, and 
Excessive  Deficit  Procedures  notifications  improved  (Albania  regularly  submits  this  on  a 
best-effort  basis).  However,  significant  improvements  are  still  needed  to  achieve  full 
compliance with ESA 2010. 

In the coming year Albania should, in particular: 

→  align the legislation on the personal independence of the Bank of Albania’s governor as 

well as on monetary financing of the public sector with the EU acquis; 

→  improve  intra-governmental  coordination  mechanisms  and  the  effectiveness  of  its  

non-governmental stakeholders consultations; 

→  begin reporting on long-term fiscal sustainability of its social security system. 

On  monetary  policy,  the  Law  on  the  Bank  of  Albania  (BoA)  sets  out  BoA’s  primary 
objective as achieving and maintaining price stability. The inflation target is 3%. The BoA is 
financially independent, with sufficient instruments, competence and administrative capacity 
to  conduct  an  effective  monetary  policy.  It  has  a  fully  operational  supervisory  council, 
appointed  by  and  accountable  to  the  parliament  which  act  independently.  However    the 
personal  independence  of  the  central  bank  governor  is  only  partly  aligned  with  the  EU 
acquis.  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. Albanian legislation allows the BoA to  provide limited financing  to  the 
government  under  certain  conditions,  which  is  not  in  line  with  the  EU  acquis,  though  this 
option was not used since 2010. The planned alignment with the EU acquis was postponed in 
view of the recent external shocks, the shallow secondary market  for government securities 
and persisting high short-term government debt roll-over needs. 

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The BoA continued to normalise its monetary policy in response to inflation overshooting its 
target  since  March  2022  by  gradually  increasing  the  main  policy  rate  up  to  3%  in  March 
2023, and raising the rates for overnight deposit and lending facilities by 1.9pps and 3.1pps 
respectively.  It  continued  to  provide  liquidity  to  the  economy  (the  unlimited  provision  of 
liquidity to the economy was stopped early 2022), and continued to publish the calendar as 
well as quarterly statements of its interventions in the foreign exchange and money markets. 
Increasing  interest  rates  for  commercial  bank  loans  and  deposits  indicate  the  effective 
transmission of the monetary policy normalisation. 

In November 2022, the supervisory council of the BoA approved the bank’s updated 2023-
2025  Medium-Term  Development  Strategy,  as  well  as  its  2023-2025  budget.  This  includes 
the objective to strengthen BoA’s independence, governance, transparency and accountability 
in accordance with the the gradual alignment with of the EU acquis. In particular, it aims at 
further aligning its governance standards on its internal audit by including the use of updated 
International  Financial  Reporting  Standards  (IFRS),  operational  risk  management,  business 
continuity management. It also foresees promoting the further development of the secondary 
market for government securities, to improve the general conditions for domestic government 
financing. Given the changed external and financial situation, BoA stated that it will continue 
its  intermediary  activity  of  buying  and  managing  of  Government  securities  accounts  from 
households, revising its plan of the 2022 strategy to phase out this activity. On 1 March 2023, 
BoA  approved  its  2022  annual  report,  which  includes  its  externally  audited  financial 
statements,  and  subsequently  presented  to  the  national  parliament’s  economic  and  financial 
committee. 

In the area of economic policy, Albania has complied with its set of fiscal rules since 2016. It 
added  a  new  numerical  rule  to  achieve  a  neutral  or  positive  primary  balance  from  2024, 
which  considerably  strengthens  the  fiscal  rules  framework.  The  2023-2025  medium-term 
fiscal framework foresees compliance with all fiscal rules. Albania has no independent fiscal 
institution to monitor compliance with its fiscal rules and the quality of its forecast, instead it 
is  obliged  by  law  to  use  the  IMF’s  forecast  for  nominal  GDP  as  basis  for  calculating  the 
public debt-to-GDP ratio and other fiscal indicators. This is not in line with the EU  acquis. 
Budget implementation is regularly audited by the Supreme State Audit Institution. In 2022 
Albania  used  secondary  legislation  four  times,  instead  of  the  regular  legislative  process,  to 
amend its budget, but did not introduce any budget amendment in the first half of 2023. 

The  presentation  and  publication  of  the  annual  budget  includes  a  medium-term  fiscal 
framework with a 3+ year horizon on a rolling basis, a forecast of government debt and of the 
macroeconomic development, as well as a fiscal risk statement. The accompanying “citizens 
budget” includes  a list  of public investment  projects  and PPPs. The budgetary framework’s 
macro-fiscal  analysis  could  be  improved  and  the  addition  of  long-term  fiscal  sustainability 
indicators. Budget preparation involves all governmental units, but the expenditure plans of 
local  governments  are  not  detailed  in  the  framework.  Budget  planning  improved  in  2023, 
being based on the previous year’s actual fiscal outcome, instead of using the previous year’s 
budget plan. 

Albania submitted its Economic Reform Programme (ERP) 2023-2025 on time and adopted it 
on 1 March 2023. The publication of the draft ERP for consultation was two weeks late and 
the lack of comments to the report underlines the need to upscale outreach to civil society and 
improve  stakeholders’  awareness  of  the  ERP  process.  The  mandatory  publication  of  the 
government’s draft documents, including notifications, regulatory impact assessment reports, 
explanatory  notes  and  public  consultation  reports  on  the  online  platform  increased 
governmental  transparency.  However,  the  lack  of  public  comments  on  the  platform  shows 

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that  the  government  also  needs  to  organise  direct  exchanges  with  stakeholders  and  to 
demonstrate  that  they  are  taken  into  account.  In  this  context  Albania  made  progress  by 
mapping  the  stakeholders  of  the  line  ministries  by  end  2022  in  order  to  notify  them  about 
public consultations in their area of interest. In addition, oversight and quality control of the 
public consultation process are being reorganised within the government. Albania still needs 
to improve the overall effectiveness of its stakeholder consultation and its inter-institutional 
coordination mechanism. 

National  account  statistics    are  partially  in  line  with  European  System  of  National  and 
Regional  Accounts  (ESA  2010),  but  substantial  further  work  is  necessary  to  improve 
alignment and compliance of both the annual sector accounts and financial accounts. Albania 
provides 12 of 14 indicators for the macroeconomic imbalances procedure (MIP scoreboard) 
of a medium compliance level. In cooperation with the Ministry of Finance and the Bank of 
Albania, the Albanian statistical office INSTAT is compiling the excessive deficit procedure 
statistics (EDP) and the government finance statistics (GFS). Work on both complilations is 
continously  progressing,  but  substancial  further  work  is  necessary  to  reach  the  full 
compliance with the ESA2010 requirements. Albania regularly submits most of the excessive 
deficit procedure notification tables to Eurostat on a best-effort basis but not for publication 
and  without  completed  questionnaires.  The  Albanian  statistical  authorities  should  lift  the 
embargo on publishing the GFS data submitted to Eurostat. From October 2022, Albania has 
transmitted  EDP  tables  through  the  new  “Albanian  Integrated  GFS  Compilation  System” 
(AIGCS),  which  aims  to  improve  data  consolidation  across  the  government  units  and  data 
consistency. 

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  inclusion  and  social 
protection, and social dialogue at EU level. 

Albania is moderately prepared on social policy and employment and made good progress 
during  the  reporting  period,  increasing  the  quality  and  effectiveness  of  labour  market 
institutions and improving access to jobs. In line with last report’s recommendations, the new 
2023-2030 national employment and skills strategy was adopted. It focuses on the quality of 
jobs,  skills  development  and  better  matching  of  demand  with  supply  in  the  labour  market. 
The  national  implementation  plan  for  the  Youth  Guarantee  scheme  was  approved,  as  an 
annex to the 2023-2030 national strategy. Efforts should continue on strengthening the social 
protection system, alongside the labour market measures.  

In the coming year, Albania should:   

→  adopt  the  new  2023-2030  strategy  for  occupational  health  and  safety,  with  a  focus  on 
strengthening institutional capacity to effectively enforce compliance with the legislation, 
and adopt the 2024-2030 national social protection strategy;  

→  begin  piloting  the  Youth  Guarantee  targeting  youth  unemployment,  especially  young 
people who are not in education, employment or training (NEETs), and start to roll it out 
into full implementation; 

→  increase  the  budget  allocation,  implementation  and  monitoring  of  the  social  fund, 
strengthen  the  capacity  of  local  government,  and  revise  the  procurement  procedures  for 
social care services.  

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On labour law, implementation of the law as amended by the 2015 Labour Code is ongoing. 
On  labour  inspection  activities,  22%  of  the  planned  inspections  during  the  previous  year 
were first time inspections while the total number increased significantly in 2022 to 10 154 
(up from 7 039 in 2021), detecting 1 799 undeclared workers (1 092 in 2021). Progress was 
made  on  promoting  the  e-inspection  platform,  which  increased  the  quality  of  labour 
inspections,  however  more  efforts  are  needed  to  reduce  informality.  In  2022,  13.4%  of 
inspection  cases  found  no  violation.  Although  the  State  Labour  and  Social  Services 
Inspectorate  stepped  up  efforts  to  build  human  resource  capacity  through  training  and 
monitoring, the capacity of the social services inspectorate remains very limited. In 2022, 135 
inspections of social care services were carried out. 

On child labour, the system for monitoring child labour and other forms of exploitation, and 
the  coordination  of  law  enforcement  between  the  Agency  for  the  Protection  of  Children’s 
Rights and the Labour Inspectorate, is weak. 

On health and safety at work, efforts need to be stepped up to ensure the further alignment 
of  the  national  legislation  with  the  EU  acquis.  Authorities  need  to  strengthen  their 
institutional capacities and inspections processes. Albania needs to develop a new 2023-2030 
strategy for occupational health and safety in line with the EU strategic framework on health 
and safety at work 2021-2027 and its priorities. 

On  social  dialogue,  in  May  2022  the  Council  of  Ministers  approved  the  Decision  ‘On  the 
determination  of  employers'  organisations  and  trade  union  organisations  in  the  National 
Labour  Council’,  and  in  July  2022  the  Ministry of  Finance  and  Economics  issued  an  order 
‘On  the  appointment  of  members  and  candidates  of  the  National  Labour  Council,  and 
representatives  of  employers'  and  employees'  organisations.  Progress  was  made  on 
strengthening  the  capacity  of  the  newly  assigned  staff  of  the  National  Labour  Council’s 
secretariat. However, the specialised commissions of the National Labour Council are yet to 
become  operational.  Efforts  were  made  to  enhance  the  tripartite  collaboration  between  the 
State Labour and Social Services Inspectorate, trade unions and business organisations. 

On employment policy, Albania is  implementing the new 2023-2030 national  employment 
and skills strategy, adopted in March 2023. 

Labour market indicators improved in 2022. Employment increased by 3.9% on average in 
2022,  up  from  a  0.5%  increase  in  2021.  All  sectors  have  experienced  higher  employment 
rates.  During  the  fourth  quarter  of  2022,  the  employment  rate  of  people  aged  15-64  was 
65.5%,  up  from  62.1%  in  the  fourth  quarter  of  2021.  Despite  the  improvement  in  the 
employment  rate  in  recent  years,  Albania  lags  EU  averages.  The  employment  rate  has 
especially  improved  among  women  (61.4%  in  Q4-2022),  but  the  unemployment  rates  of 
women  and  young  people  remain  high.  Gender  inequality  in  employment  remains 
problematic, with the employment rate for men exceeding the rate for women by 10.4%. In 
the  fourth  quarter  of  2022,  the  employment  rate  for  young  people  aged  15-29  was  44.6% 
(47.5%  for  men  and  41.8%  for  women).  Despite  an  increase  of  1.8%  compared  with  the 
previous year, youth employment lags the rest of the adult population. 

The unemployment rate in the fourth quarter of 2022 was 11.0% (11.0% for men and 11.1% 
for women) decreased by 0.4% compared to the fourth quarter of 2021. The structure of the 
Ministry  of  Finance  and  Economy  (MoFE)  was  revised  in  2023  to  add  resources  to  the 
General Department for Employment and Skills. MoFE still needs to fill all vacant positions. 

The National Agency for Employment and Skills (NAES) filled 70% of its vacancies by the 
end of 2022.  In 2022, 15 658 adult participants attended vocational training out of which 7 
191  were  females.  In  2022,  26 808  registered  unemployed  jobseekers  found  a  job  through 
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labour offices compared with 24 158 in 2021. As of May 2023, 17 935 young people not in 
employment, education or training (NEETs) were registered in the NAES database. In 2022, 
Albania continued to implement the reformed employment promotion programmes packages 
in all regions, with a focus on the most vulnerable people. A new programme to subsidise the 
development of digital skills was adopted and began operating. Progress has continued with 
the Social Employment Fund, which aims to help persons with disabilities to find work. 

According to the Albanian National Institute of Statistics (INSTAT), in 2022 23.4% of young 
people registered as neither in employment, education or training (NEET)  were looking 
for  work,  up  from  22.9%  in  2021.  The  relevant  authorities  adopted  the  action  plan  to 
implement the Youth Guarantee, which focuses on NEETs. The official unemployment rate 
in 2022 for young people aged 15-29 was 20.7%, compared with 20.9% in 2021. It rose by 
0.9% in the fourth quarter of 2022 compared with 2021. 

On the employment of persons with disabilities, the 2023-2030 national  employment and 
skills strategy states that the levy on employers who do not fill their quota of employees with 
disabilities will be collected through the tax system. 

On  social  protection  and  inclusion,  the  MoHSP  continued  its  efforts  to  consolidate  the 
economic  aid  scheme  (a  scheme  for  social  assistance  payments  to  households  experiencing 
poverty),  implementing  a  new  biopsychosocial  evaluation  system  for  persons  with 
disabilities,  and  to  reform  the  system  social  care  service.  MoHSP  needs  to  finalise  the 
evaluation  of the current social protection strategy and progress  with  the design  of the new 
2024-2030 national strategy on social protection, in consultation with stakeholders. Progress 
was  made  on  the  implementation  of  the  exit  strategy  for  recipients  of  economic  assistance 
(Ndihma Ekonomike). A protocol for making referrals is in place and the regional actors are 
profiling beneficiaries of working age. 

There is some progress in implementing the strategy on social protection, in terms of rolling 
out  the  reform  of  the  biopsychosocial  assessment  of  persons  with  disabilities  and  reaching 
more  beneficiaries  through  social  care  services.  The  total  budget  in  2023  of  the  social 
protection  programme  has  increased  by  5%  compared  with  2022.  The  effectiveness  of  the 
targeting  of  the  economic  aid  scheme  needs  to  be  assessed  through  field  research  and  by 
using microdata from Eurostat on income and living conditions and from household budget 
surveys, to identify groups in need that do not yet benefit from the scheme. Authorities need 
to  finalise  the  impact  assessment  of  the  adequacy  of  exit  strategy  benefits,  increase  their 
amounts, establish a mechanism for their annual  indexation and implement  the roadmap on 
the  revision  of  benefits  that  will  be  based  on  this  assessment.  With  the  amendments  to  the 
Law  on  social  assistance,  adopted  in  2022,  additional  social  protection  measures  were 
introduced to mitigate the effects of Russia’s war of aggression against Ukraine. The social 
resistance  package  approved  in  March  2022  included  EUR 48  million  as  an  additional 
contingency  fund  for  vulnerable  groups.  The  percentage  of  population  receiving  basic 
package of social care services has been increased from 0.2% in 2019 in 1.5% in 2023. 

The MoHSP needs to strengthen its efforts on monitoring the 2021-2025 national action plan 
on persons with disabilities. Since 2023, reform of the biopsychosocial evaluation is being 
implemented throughout the country, with 36 multidisciplinary commissions in 12 regions.  

On  the  inclusion  of  Roma  and  Egyptians,  following  the  approval  of  the  new  2021-2025 
national  action  plan  for  equality,  inclusion  and  participation  of  Roma  and  Egyptians  in 
Albania, in 2023 employees in line ministries, regional directorates, municipalities and other 
local  institutions  were  trained  on  how  to  report  progress  indicators  in  the  ROMALB 
electronic  system  (242  officials  are  active  users).  However,  the  institutional  capacity  of 

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MoHSP,  in  charge  of  the  coordination  of  Roma-related  policies,  remains  weak  in  terms  of 
human resources. Roma and Egyptians continue to face skills-related challenges in the labour 
market.  A  significant  proportion  of  unemployed  people  registered  for  economic  assistance 
have  not  completed  primary  education.  The  inclusion  of  Roma  in  jobs  in  the  public 
administration needs to improve. 

The  MoHSP  prioritised  the  reform  of  the  digitalisation  of  social  care  services  through  the 
National  Electronic  Register  of  Social  Care  Services,  which  has  not  been  fully  operational 
since July 2022 due to the cyberattack on all government data systems. 

All 61 municipalities have approved local social care plans. Authorities need to ensure that 
social  services  are  established  and  functioning  across  all  municipalities.  .  During  2022,  27 
community-based  social  care  services  at  municipality  level  have  been  set  up  and  13 
specialised  services  at  county  level.  For  2023,  13  community-based  social  care  services  at 
municipality level and 13 specialised services at county level have benefited the continuation 
of financial support. For 2023, the Social Fund’s budget increased to EUR 2.8 million, 50% 
increase compared to 2022. Nevertheless, local governments, frequently lack the funding and 
resources to effectively set up manage and implement social services. 

On non-discrimination in employment and social policy, Albania and the ILO signed the 
2023-2026  decent  work  country  programme,  which  aims  to  address  key  problems  around 
working conditions and social protection such as the work accidents, effective protection at 
work  by  setting  up  effective  mechanisms  to  tackle  violence  and  harassment,  low  levels  of 
wages, and insufficient coverage of the social security system.  

On  equality  between  women  and  men  in  employment  and  social  policy,  according  to 
INSTAT’s labour force statistics for the fourth quarter of 2022 there is a gender employment 
gap of 11.6% for the group aged 15-64 years old. 69.1% of women participate in the labour 
force,  compared  to  80.7%  of  men.  In  2022,  the  labour  force  participation  rate  for  women 
increased by 5.9% for women and 3.0% for men compared with the same (fourth) quarter of 
2021. The National Council for Gender Equality approved in June 2023 the Action Plan for 
the implementation of 'Women, Peace, Security' 2023 – 2027 resolution. 

On  fighting  corruption,  in  April  2022  the  MoHSP  adopted  its  integrity  strategy.  The 
Institute  of  Social  Security  has  a  code  of  ethics  in  place.  Authorities  use  online  services  in 
order to increase transparency such as the Economic Aid System platform which manages the 
state  database  for  economic  assistance  and  the  process  to  apply  for  and  grant  economic 
assistance.  

Chapter 20: Enterprise and industrial policy 

industrial  policy  strengthens  competitiveness, 

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

Albania  is  moderately  prepared  in  the  area  of  enterprise  and  industrial  policy.  Some 
progress  was  made  on  the  implementation  of  the  recent  legislation  on  micro,  small  and 
medium  enterprises,  on  start-ups,  and  on  the  continuation  of  the  business  support 
programmes  in  line  with  the  business  and  investment  development  strategy.  Despite  these 
improvements,  and  the  government’s  ongoing  efforts  to  tackle  the  informal  economy  and 
corruption, the recommendations in the 2022 report were only partly addressed. 

In the coming year, Albania should, in particular: 

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→  further  address  the  main  challenges  to  the  business  environment  by  reducing  the 
regulatory burden, increasing the participation of businesses in the funding programmes, 
reducing the informal economy and corruption, and increasing business support services;  

→  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  that  were  highlighted  in  the  joint  recommendations  of  the  economic  reform 
programmes of 2023-2025. 

Albania  continues  to  implement  its  2021-2027  business  and  investment  development 
strategy, which focuses on SME development and innovation; investment, attractiveness and 
internationalisation;  and  human  capital  development.  It  is  also  implementing  its  2020-2024 
inclusive  and  sustainable  industrial  development  programme.  Together,  the  business  and 
investment  development  strategy  and  the  inclusive  and  sustainable  industrial  development 
programme  create  the  strategic  framework  for  Albania’s  enterprise  and  industrial  policy. 
Albania  follows  the  implementation  of  the  EU  Small  Business  Act  (SBA)  and  takes  SBA 
recommendations into account when drafting SME policy. A 3-year action plan (2022-2024) 
to implement the mining strategy was also adopted in June 2022. Albania is implementing its 
2017  national  strategy  on  innovation  and  technology  and  is  currently  drafting  a  smart 
specialisation strategy. The Law on start-ups in innovation was amended to set up the state 
start-up agency, and to cover digital nomads. 

The  business  community  asserts  that  the  key  persistent  challenges  that  harm  the  business 
climate  are  corruption;  the  informal  economy  and  unfair  competition;  the  lack  of 
transparency  in  public  procurement  procedures  (especially  for  public-private  partnerships); 
the  lack  of  predictability  of  legislation;  bureaucracy,  and  an  inefficient  public-private 
consultation  mechanism.  Lengthy  court  procedures  also  remain  a  concern,  despite  progress 
on justice reform. Issues with property titles remain a persistent obstacle to foreign investors. 
Other areas that need to be addressed include the weak diversification of exports and a high 
dependency on imports. Businesses also face obstacles due to a lack of skilled workers and 
access  to  finance.  They  in  turn  need  to  adjust  to  modernisation  and  green  process, 
digitalisation, innovation, and to e-commerce.  

Despite  the  increased  business  costs,  companies  have  responded  positively  to  the 
government’s decision to increase the minimum wage, as a way to keep workers, particularly 
in  labour-intensive  companies.  The  tax  administration  continued  its  efforts  to  tackle  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 and construction 
sectors.  According  to  Labour  Inspectorate  data  for  2022,  the  tourism  (hotel,  bar  and 
restaurant  sector  had    the  highest  exposure  to  informal  employment  accounting  for  44%  of 
total cases identified, followed by manufacturing with 25% and construction with 21%. Due 
to  intensified  efforts  to  tackling  informal  employment,  the  number  of  identified  informal 
workers  increased  by  over  64%  in  2022  compared  2021.  More  efforts  are  also  required  to 
increase productivity in the economy and to improve the business climate.  

Albania  continues  to  privatise  state  assets,  partly  through  privatisation  vouchers  which  are 
currently  valid  until  December  2023.  The  Law  on  the  establishment  and  operation  of 
economic zones and the Albanian Investment Corporation enable the environment to develop 
projects  to  revitalise old state-owned sites by attracting investment,  though  no progress  has 
been made on the adoption of the unified investment Law. In November 2022, a government 
decision established the Tirana Economic Development Area (TEDA), which is expected to 
attract  investors  in  the  automotive,  information  and  communication  technology,  and 

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electronic  equipment  industries.  In  June  2023  the  wining  company  to  develop  TEDA  was 
chosen  after  a  compteitive  procedure.  During  the  reporting  period  the  national  strategic 
investment committee, chaired by the Prime Minister, continued to adopt decisions on cases 
of investors benefiting from the status of strategic investor, mainly in the area of tourism.  

In  the  area  of  enterprise  and  industry  policy  instruments,  the  Albanian  Investment 
Development  Agency operates an online platform  to  help  businesses access  information on 
financing opportunities. The agency also provides training on e-commerce and has published 
a digital self-assessment tool and guidance to help SMEs start e-businesses and e-commerce. 
Regarding  entrepreunerships  skills,  intensive  trainings  for  startuppers  are  offered  by  the 
Albanian  Information  Society  Agency  through  ‘TechSpace’,  and  enterpreneurship  has  been 
added innto the pre-university curriculum. Albania is implementing a 2021-2024 action plan 
on  the  facilitation  and  development  of  e-commerce,  through  establishment  of  an  inter-
ministerial working group, in line with the commitments among CEFTA  parties. 

Further amendments to the Law on late payments enterred into force in May 2023 in order to 
regulate late payments on transactions between farmers and the agro-companies that collect, 
process  and  export  agricultural  products.  This  is  expected  to  also  help  to  formalise 
transactions in this sector. Further alignment with the EU acquis needs be ensured as soon as 
possible, especially to address issues related to proof of property ownership property (titles), 
and  recovery  procedures  for  unchallenged  claims.  Albania’s  definition  of  SMEs  is  partly 
aligned with the EU one, on the number of employees, however national capacity to support 
SMEs remains limited. On policy indstruments, negotiations on Albania’s participation in the 
EU “Single Market Programme” are underway.  

On  sectoral  policies,  Albania  continues  to  implement  the  2019-2023  national  strategy  and 
action plan for sustainable development and tourism, and in June 2023 it launched the mobile 
application  for  tourism  events  in  Albania  (TEA).  Some  progress  was  made  in  identifying 
niche markets in the export area. Issues related to transport costs, simpler export procedures, 
market research and advice on improving product diversification, are all areas that need to be 
further  addressed.  Albania  continued  to  provide  incentives  for  the  agro-processing  industry 
which  faces  challenges  including  labour  shortages  and  low  levels  of  mechanisation, 
digitalisation and innovation. In June 2023, the government introduced fiscal relief measures 
for  export-oriented  businesses  who  faced  high  costs  due  to  local  currency  (ALL)’s 
appreciation  against  Euro  by  almost  7  %  between  January-May  2023,  allowing  for 
postponement of profit tax payment in 2024. Albania also adopted a 2022-2026 cross-sectoral 
strategy  and  action  plan  on  the  digital  agenda.  Investors  are  increasingly  interested  in 
renewable  energies,  partcularly  since  the  adoption  of  the  Law  on  renewables  and  the 
establishment of the Albania Power Exchange. Further  clarity on the  categorisation of land 
used for agricultural purposes and land that can be rented or used to produce renewables were 
introduced in the amended Law on protection of agriculture that was adopted in July 2023. 

Chapter 25: Science and research 

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

Albania has some level of preparation in the area of science and research. Some progress 
was  made  over  the  reporting  period,  by  setting  up  a  national  team  to  develop  the  smart 
specialisation  strategy  and  by  strengthening  innovation  support  measures  such  as  ensuring 
sufficient  funding to  the start-up fund and further progressing the entrepreneurial  discovery 

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process of the smart specialisation strategy. Last year’s recommendations have not been fully 
addressed and therefore remain valid. 

In the coming year, Albania should in particular: 

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

Research Area priorities; 

→  complete  the  smart  specialisation  strategy,  adopt  the  2023-2030  national  strategy  on 

scientific research and innovation and adopt the new law on scientific research; 

→  produce statistics and reliable data on science and technology. 

On  research  and  innovation  policy,  the  interinstitutional  working  group  monitoring  the 
implementation  of  the  2017-2022  national  strategy  for  scientific  research,  technology  and 
innovation recommended open online access for all scientific publications financed by public 
funds. The working group also recommended revising the implementing legislation to create 
legal  and  fiscal  incentives  to  encourage  businesses  to  finance  scientific  research.  The  new 
2023-2030  national  strategy  on  scientific  research  and  innovation,  which  aiming  at 
addressing these recommendations (which are in line with the new European Research Area), 
needs to be adopted. Albania needs to adopt the new law on scientific research. 

Albania increased funding for scientific research to 0.08% of GDP in 2023, up from 0.05% in 
2022  and  0.04%  in  2021,  however  this  is  still  far  below  the  target  1%  of  GDP  by  2030. 
Research funding as a percentage of public expenditure amounted to 0.17 % of GDP in 2022. 
INSTAT needs to produce a complete data set on scientific research and innovation. 

The methodology to increase funding for research and science needs to be further developed 
and  aligned  with  the  EU  acquis.  Information  on  the  budget  allocated  for  R&D  has  not  yet 
been published due to the poor quality of data. In April 2023, for the first time, the National 
Agency for Science Research and Innovation launched a call for proposals to implement the 
university-business cooperation programme. Albania needs to further strengthen its research 
and innovation capacity at national level, by promoting links between academia, industry and 
government,  and  in  the  fields  of  open  access  and  open  data.  A  new  Law  on  the  creation, 
organisation  and operation of technology  and science parks was also  adopted in  July  2022. 
Since 2022, the start-up fund has been managed by the Minister of State for the Protection of 
Entrepreneurship. The fund granted EUR 2.5 million to 58 beneficiaries in 2022.  

The  qualitative  and  quantitative  phase  was  completed  for  the  development  of  a  smart 
specialisation strategy. However, the second phase of the entrepreneurial discovery process 
remains  to  be  finalised.  The  Deputy  Prime  Minister’s  Office  is  now  responsible  for 
coordinating the development of the smart specialisation strategy. 

On  the  EU  framework  programmes,  Albania  is  fully  associated  to  Horizon  Europe.  Its 
participation in the programme in 2022 has improved since Albania has been participating in 
the  EU’s  Framework  Programmes  for  Research  and  Innovation  (9  projects  with  a  total 
funding  of  EUR  1.7  million).  The  authorities  need  to  make  efforts  to  further  increase 
participation  of the private sector in  Horizon Europe. National  innovation efforts should be 
aligned with the new European innovation agenda. Albania needs to strenghten its efforts in 
participating in the activities of the European Institute of Innovation and Technology (EIT).  

Regarding  transparency,  the  Ministry  of  Education  and  Science  has  created  an  electronic 
register  for  inquiries  recording  45  exchanges  in  the  first  quarter  of  2023.  Authorities  have 
established a contact point to denounce corruption and abuse of EU funds. 

105 

 
 
Albania  needs  to  make  further  efforts  to  produce  reliable  data  on  research  and  innovation. 
Albania was included for a second consecutive year in the European Innovation Scoreboard 
as  an  emerging  innovator  facing  however  a  decrease  in  its  score  from  41.7%  in  2022  to 
41.1% of the EU average in 2023. 

Chapter 26: Education and culture 

The EU supports cooperation in education and culture through funding programmes and the 
coordination of  Member State policies through the ‘open method  of  coordination’. The EU 
and  the  Member  States  must  also  prevent  discrimination  and  ensure  quality  education  for 
children of migrant workers, including those from disadvantaged backgrounds. 

Albania is moderately  prepared in the field of education and culture.  Some progress was 
made, with further strengthening the new National Agency for Employment and Skills, and 
the  continued  restructuring  of  the  National  Agency  for  Education,  Vocational  Training  and 
Qualifications. The new 2023-2030 national strategy on employment and skills and the new 
2022-2029 national youth strategy place an emphasis on improving the quality of Vocational 
Education and Training (VET) and increasing the skills of young people. Further efforts are 
required to strengthen the quality and inclusiveness of education, while appropriate resources 
should  be  allocated  to  ensure  that  the  new  policy  reforms  are  implemented.  The 
implementing legislation of the Law on cultural heritage and museums is still to be finalised.  

Some  of  last  year’s  recommendations  were  not  fully  addressed  and  remain  valid.  In  the 
coming year, Albania should in particular: 

→  ensure sufficient resources for the optimisation of the VET system in line with the needs 

of the labour market; 

→  improve the professional development and training of teachers and trainers, with a 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 implementing legislation for the Law on cultural heritage and museums. 

On education and training, the reconstruction of the educational facilities  damaged by the 
2019 earthquake remained a priority. During the reporting period, 17 education facilities were 
repaired.  Currently,  79  educational  institutions  have  been  either  reconstructed  or  repaired, 
while work is ongoing on 105 institutions. The Ministry of Education and Sports (MoES) has 
based its anti-corruption policy on transparency through digitalisation, by implementing its 
transparency  programme,  by  monitoring  and  auditing  through  internal  and  external  audit 
mechanisms, and by strengthening integrity with the adoption of integrity plans for the MoES 
and the Ministry of Culture in  April 2022. Greater efforts are needed to  efficiently manage 
the resources offered by donors and funding from the state budget. 

The  MoES  planned  the  progressive  design  and  implementation  of  information  and 
communication technology (ICT) programmes for the first time, starting from the first grade 
in 2022. 100 schools in Albania were equipped with smart labs, and 1 200 ICT teachers were 
trained.  The  authorities  need  to  make  further  efforts  to  reduce  the  digital  divide  across  all 
communities  and  among  vulnerable  people.  Authorities  need  to  strengthen  efforts  towards 
effective, coherent and inclusive digital transformation of the education and training systems 
in Albania, including the capacity of the systems to develop digital skills.  

The  MoES  reported  that  public  spending  on  education  represented  3.2%  of  GDP  in  2022, 
while the forecast for 2023 and 2024 is 2.9% and 2.8% respectively (considerably lower than 

106 

 
 
the  EU  average  5%).  The  MoES  developed  guidelines  on  career  education  in  the  pre-
university  education  system,  which  includes  activities  and  job  descriptions  for  career 
guidance in schools. The Agency for Quality Assurance in Pre-University Education carried 
out the evaluation of 34 pre-university education institutions.  

The net enrolment rate (NER) in primary education in 2021-2022 was 88.3%, slightly down 
on  the  year  before  (90.5%).  The  NER  for  lower  secondary  education  was  87.4%  in  2021-
2022 compared with 87.1% in the previous year. There has also been a decline in the NER of 
students  in  upper  secondary  education,  at  77.6%  in  2021-2022  compared  with  78%  in  the 
year before. The NER of children in pre-primary education in 2021-2022 was 78.8%, up from 
72.9% the year before. 

On  inclusive  education,  the  number  of  children  with  disabilities  in  public  and  private 
educational  institutions (starting from  preschool  education) has increased to 4 748 students. 
In 2022-2023, the number of assistant teachers for students with disabilities in the public pre-
university education system went up by about 17% compared with the previous year (1 300 
assistant teachers in total). The need remains for more assistant teachers and a better quality 
of  education,  especially  in  remote  non-urban  areas.  In  2023,  Albania  amended  the  Law  on 
pre-university  education 
including  provisions  on  students  with  disabilities  and  on 
transforming  schools  into  resource  centres.  In  2022,  the  MoES  offered  141  scholarships  in 
pre-university education to children at risk of dropping out. Since the school year 2022-2023, 
ICT oriented secondary education is offered in Albanian sign language. 

Gender  gaps  still  exist  in  education  as,  according  to  INSTAT,  the  enrolment  rate  in 
compulsory education is 98.7% for boys and 92.7% for girls. Participation in upper secondary 
education is higher for boys than girls, at 98.7% and 89.9% respectively. whereas for higher 
education  the  participation  rate  is  higher  for  girls  (73.2%)  than  for  boys  (49.6%).  In 
vocational  education,  approximately  82%  of  graduates  are  males.  VET  providers  must 
follow the code of ethics in accordance with the national legislation, while ethics committees 
have been set up in all education providers.  

The  participation  of  Roma  and  Egyptian  children  increased  in  pre-university  (13  499  in 
2022-2023 against 13 086 in 2021-2022) and decreased in early childhood education (2 150 
in  2022-2023  in  both  public  and  private  sectors  against  2  514  2021-2022).  The  measures 
planned to facilitate access to universities (such as the quota system and waiving university 
fees)  are  in  general  not  being  implemented.  Greater  efforts  are  needed  to  improve 
coordination between the local and central levels on preschool education. 

The  2022-2029  national  strategy  for  youth  was  adopted  in  October  2022.  It  integrates  the 
empowerment  through  self-defence  approach  as  part  of  the  extra-curricular  programs  of 
public  schools.  This  approach  aims  to  promote  behavioural  changes  in  communities,  in 
relation  to  issues  such  as  gender-based  violence,  by  fostering  skills  that  promote  the 
emotional,  psychological  and  physical  safety  of  young  women  and  men.  The  selection  of 
Tirana as European Youth of Capital 2022 enhanced the local and national ecosystem for the 
development of youth policies.  

The 2023-2030 national strategy on employment and skills, adopted in 2023, prioritises the 
systematic  engagement  of  the  private  sector  in  vocational  education  and  training,  and  the 
development  of  green  and  digital  skills  through  a  lifelong  learning  system  that  allows  for 
effective upskilling and reskilling activities. 

On  vocational  education  and  training  (VET),  the  authorities  consolidated  the  relevant 
institutional  framework,  by  further  reinforcing  the  National  Agency  for  Employment  and 
Skills,  and  by  further  restructuring  the  National  Agency  for  VET  and  Qualifications  and 
107 

 
 
increasing  its  resources.  Further  efforts  are  needed  to  ensure  adequate  staffing  in  both 
agencies;  to  improve  the  quality  assurance  framework  and  to  strengthen  planning  and 
monitoring  at  central  level.  In  2023,  several  VET  providers  were  restructured.  The 
optimisation plan for VET providers, endorsed in 2020, lacked the necessary resources to be 
implemented.  Despite  promotional  activities  and  support  to  help  students  from  rural  areas 
participate  in  VET,  attendance  fell  in  the  2022-2023  school  year,  with  16 811  students 
enrolled  in  vocational  schools  (2 634  female  and  14 177  male)  compared  with  18 279 
students (2 714 female and 15 656 male) in 2021-2022. The authorities need to take action to 
address the skills mismatch and to intensify efforts to make VET more relevant to the needs 
of  the  labour  market.  In  January  2023,  the  MoES  approved  a  career  orientation  guide  for 
students  in  the  ninth  grade  to  improve  information,  education  and  career  counselling  in 
scools. Enrolment of vulnerable groups in VET also decreased to 6 022 (1 743 female) from 
9 392 (1 330 female) in 2021-2022. 

Albania  continued  to  participate  in  Erasmus+  and  the  European  Solidarity  Corps.  Albania 
benefits from the international dimension of the 2021-2027 Erasmus+ programme. In 2022, 
approximately  900  higher  education  staff  members  and  1  280  students  from  Albania  were 
selected to undertake a mobility period in EU Member States or associated third countries to 
the  programme.  The  number  of  higher  education  capacity-building  projects  selected  for 
funding  increased  from  12  in  2020  to  17  in  2022.  For  the  first  time,  higher  education 
institutions were eligible to participate in the call for proposals for the European universities 
initiative.  Albania  is  participating  in  the  European  Education  Area  working  groups  2021-
2025.  

Regarding the culture sector, the 2019-2025 national strategy is being implemented. During 
the  reporting  period  the  national  register  of  Albanian  intangible  cultural  heritage  was 
published. This was created pursuant to the Convention for the Safeguarding of the Intangible 
Cultural  Heritage,  and  published  for  the  first  time  in  an  online  format.  The  relevant 
authorities  adopted  implementing  legislation  on  the  creation  and  administration  of  the 
database of stolen  cultural  assets,  and rules on  monitoring and evaluating entities that have 
cultural  assets  under  administration.  The  authorities  need  to  adopt  the  remaining 
implementing legislation of the Law on cultural heritage and museums to make the law fully 
operational. 

Albania continued to participate in the EU 2021-2027 Creative Europe programme. Albania 
needs  to  accelerate  the  adoption  of  implementing  legislation  and  to  ensure  the  effective 
implementation of the Law on cultural heritage and museums, in line with the principles of 
the framework for actions for cultural heritage.  

Chapter 29: Customs union 

All Member States are part of the EU customs union and follow the same customs rules and 
procedures.  This  requires  legislative  alignment  as  well  as  adequate  implementing  and 
enforcement capacity and access to the common computerised customs systems. 

Albania  is  moderately  prepared  in  the  area  of  the  customs  union.  Limited  progress  was 
made  on  the  authorised  economic  operator  programme  and  preparatory  work  for  the 
development of the New Computerised Transit System. Last year’s recommendations remain 
valid.  

In the coming year, Albania should in particular: 

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

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→  continue  efforts  in  pursuing  the  fight  against  smuggling,  corruption  and  imports  of 
counterfeit  products,  including  by  strengthening  administrative  capacity  and  improving 
cooperation between the bodies involved; 

→  accede  to  the  WHO  Framework  Convention  on  Tobacco  Control  Protocol  to  Eliminate 

Illicit Trade in Tobacco Products. 

On  customs  legislation,  Albania’s  customs  code  is  broadly  aligned  with  the  EU  acquis. 
However, the levying of scanning fees for each customs declaration continues to contravene 
the Stabilisation and Association Agreement, which prohibits customs duties or charges with 
an equivalent effect on trade between the EU and Albania.  

Preparatory  work  for  the  development  of  a  National  Single  Window  and  a  New 
Computerised Transit System continued through cooperation with international experts in this 
area. A legal analysis has been carried out and procurement procedures have begun. 

Albania is implementing its authorised economic operator programme, with 11 AEOs in June 
2023 (and 9 applications under examination). Awareness raising activities on the benefits or 
the programme continued. Protocols for mutual recognition of authorised economic operators 
were  signed  with  Serbia  and  North  Macedonia  in  2022.  A  memorandum  of  understanding 
was  signed  between  the  Albanian  Customs  Administration  and  the  Italian  Customs  and 
Monopolies  Agency  in  September  2022,  improving  customs  cooperation  with  respect  to 
goods transported by sea. A protocol was signed with Kosovo Customs allowing it to conduct 
the clearance of goods destined for Kosovo at offices in Durrës and Porto.  

 Since September 2021  Albania has been applying the new transitional rules of preferential 
origin of the Pan-Euro-Mediterranean Convention on bilateral trade with the EU. 

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  underlying  automated  system  for  customs  data  is  being  upgraded  to  improve  risk 
analysis. The legislation on customs enforcement of intellectual property rights is harmonised 
with the EU acquis.  

As  part  of  the  anti-fraud  effort,  it  is  recommended  that  Albania  accedes  to  the  WHO 
Framework  Convention  on  Tobacco  Control  Protocol  to  Eliminate  Illicit  Trade  in  Tobacco 
Products.  

The national rules on cash and goods transported in travellers’ baggage still differ from the 
EU  acquis  as  regards  the  amounts  to  be  declared  and  the  declaration  form.  The  Albanian 
customs administration can impose sanctions for non-declarations or mis-declarations of cash 
at the border.  

On administrative and operational capacity, so far five officials of the customs authority 
have  been  certified  by  the  EU  Agency  for  Law  Enforcement  Cooperation,  as  users  of  and 
trainers  for  the  secure  information  exchange  network  application.  The  INES+  (intelligent 
adaptive traffic control) system has been operational for managing cases of infringement of 
intellectual property rights, with a view to stepping up the fight against imports of counterfeit 
products. By the end of 2022, 38 out of 41 customs services were accessible online through 
the e-Albania portal.  

In  terms  of  prevention  of  corruption,  the  customs  authority’s  new  structure  entered  into 
force  in  May  2022  to  address  challenges  that  had  been  observed,  such  as  the  lines  of 
reporting to the anti-corruption coordinator. In May 2023 the customs authority published a 
‘green book reporting on progress in 2022 and highlighting priorities for the following year. 

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CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

This  cluster  covers:  transport  (Chapter  14);  energy  (Chapter  15);  trans-European  networks 
(Chapter  21);  and  environment  and  climate  change  (Chapter  27).  Albania  is  in  between 
moderate and a good level of preparation on energy. It has some level of preparation in the 
areas  of  transport,  trans-European  networks  and  environment  and  climate  change.  The 
country has made some progress in the areas of energy and trans-European networks, notably 
on  the  reform  of  the  electricity  market  and  in  developing  transport  and  energy  networks. 
Limited progress was made in the areas of transport and environment and climate change. 

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  for  the  Western 
Balkans and the green agenda for the Western Balkans. 

Chapter 14: Transport  

The EU has common rules on 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  reporting  period.  The  recommendations  from  last  year  have  been  partly 
addressed,  with  some  progress  in  adopting  implementing  legislation  in  the  rail  sector  and 
with  further  measures  to  improve  the  quality  and  performance  of  the  vessels  under  the 
Albanian  flag.  Albania  has  completed  around  80%  of  the  measures  of  the  Roadmap  for 
improving the performance of the Albanian fleet. 

Continued efforts are needed to further align the legislation and to move the Albanian flagged 
fleet  out  of  the  black  list  under  the  Paris  Memorandum  of  Understanding  on  port  state 
control. The recommendations from last year remain valid. 

In the coming year, Albania should in particular: 

→  adopt the new 2021-2025 national transport strategy and its action plan 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; 

→  accelerate  concrete  measures  to  improve  the  performance  of  maritime  transport  vessels 

under the Albanian flag. 

Regarding  the  general  transport  acquis,  the  new  national  transport  strategy  and  its  action 
plan for 2021-2025 still needs to be adopted. On alignment of the transport policy with public 
service  obligations  and  the  acquis  on  public  service  contracts,  guidelines  remain  to  be 
adopted  for further alignment with the acquis on public passenger transport services. More 
efforts are required to fully implement the intelligent transport systems (ITS) Directive, boost 
multimodality  and  implement  relevant  national  laws  in  compliance  with  the  Transport 
Community action plans. Albania continued the preparation of a national ITS strategy for rail 
and maritime modes. ITS equipment for roads has been procured and is to be installed in new 
premises,  which  are  under  construction    For  larger  transport  agglomerations,  sustainable 
urban mobility plans which respect environmental and social standards should be developed 
following EU practice.  

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Albania  continued  to  actively  participate  in  the  work  of  the  Transport  Community  Treaty 
(TCT). However, it has shown a slow implementation rate of the five TCT action plans and 
dedicated smart and sustainable mobility strategy for the Western Balkans. 

Administrative  capacity  needs  strengthening  throughout  the  transport  sector,  particularly  in 
the rail sector. Since January 2023, the Albanian Civil Aviation Authority has set-up a new 
organisational  structure,  aiming  to  better  fulfil  its  duties  and  functions.  Legislative  updates 
are required to complement the reform of the Albanian Road Authority. In December 2022, 
the  government  approved  the  structure  and  the  organisation  chart  of  the  National 
Investigation Authority for Rail and Maritime Accidents and  Incidents.  Available funds  for 
road  and  railway  infrastructure  maintenance  remain  insufficient,  resulting  in  continued 
deterioration of infrastructure conditions. Continued efforts are required to support the 2018-
2022 rail maintenance plans.  

When  revitalising  the  ports  in  Albania,  attention  shall  be  paid  to  prevent  corruption  as  an 
enabler to infiltrate transportation and logistics chain with criminal networks.  

On road transport, further efforts are needed to align with the acquis on electronic road toll 
systems  and  road  fee  enforcement.  Road  safety  remains  a  serious  concern  with  casualties 
above  the  EU  average,  work  is  still  needed  to  tackle  the  discrepancy  between  the  national 
statistics  and  the  significantly  higher  WHO  estimate.  Albania  needs  to  allocate  sufficient 
financial  resources  to  establish  a  road  crash  data  system  in  line  with  the  Care  Database. 
Further  efforts  are  needed  to  improve  the  inter-institutional  coordination  mechanism 
including the establishment of a road traffic safety agency. Albania should also make further 
efforts to  align with  the EU  acquis on social transport legislation, notably the Directive for 
posting of drivers in the road transport sector.    

Albania completed the alignment of its legislation on periodic roadworthiness tests, but still 
has to further strengthen its inspection capacity. The rules of traffic on electric scooters and 
of  bicycles  have  been  unified,  aiming  to  strengthen  road  safety  of  such  new  category  of 
vehicles  in  road.  Some  efforts  were  made  regarding  road  safety  education.  Action  on  road 
safety has been taken, including road signs and marking, to improve safety on road sections 
and  intersections.  Tendering  has  been  completed  for  construction  of  the  traffic  monitoring 
centre  and  installation  of  ITS  for  200 km  of  main  road  network,  and  is  expected  to  be 
operational  in  2024.  Albania  is  partialy  aligned  with  the  Directive  2008/96/EC  on  road 
infrastructure safety management. 

On railway transport, the Railway Safety Authority began its operations in September 2023 
by  abolishing  the  Railway  Inspection  Directorate  but  it  is  not  yet  completely  functioning 
since the staffing process is ingoing. The Railway Regulatory Authority is not yet functional, 
and  the  certificates  and  safety  authorisations  cannot  be  issued  according  to  the  EU  acquis. 
Albania still needs to ensure full operability of the rail network and complete the institutional 
framework  for  the  four  new  rail  companies:  infrastructure  manager,  passenger  transport 
operations,  freight  transport  operations  and  maintenance,  based  on  the  law  adopted  in  July 
2021.  

Albania also needs to finalise and adopt the strategic framework for implementing ITS on the 
core  rail  network.  Albania  published    its  Network  Statement  in  2022  and  this  should  also 
cover  the  part  of  the  network  located  in  port  areas.  Albania  needs  to  complete  the 
establishment  of  the  electronic  register  of  vehicles  and  the  rail  infrastructure  asset 
management  system  (RIAMS).  On  train  drivers,  Albania  adopted  the  Guideline  on  the 
professional  training  in  the  professional  training  centres  of  railway  personnel  who  exercise 

111 

 
 
safety functions, conditions and procedures for testing, licensing and certification of drivers, 
which is partially aligned with the EU acquis.  

On maritime transport, continued efforts are required to substantially improve the quality of 
the  Albanian  flagged  fleet  and  to  thereby  reduce  the  detention  rate  of  Albanian-flagged 
vessels, in  order to  remove  Albania from  its current  position on the  black list  of poor flag 
performance.  During  last  year  Albania  improved  its  position  in  the  Paris  Memorandum  of 
Understanding on Port State Control, moving up from very high – risk to moderate, but still 
in black list. 

While Albania has completed around 80% of the measures of the roadmap for improving the 
performance of the Albanian fleet, it has yet to fully align with the acquis on the EU vessel-
traffic  monitoring  and  information  system  (VTMIS),  based  on  the  strategic  framework  for 
implementing ITS on the core maritime network. Albania has made significant progress with 
respect to the implementation of the EU Port Services Regulation and efforts are underway to 
achieve  the  full  compliance  of  its  legal  framework  by  2025  There  were  still  no  new 
developments  regarding  inland  waterway  transport,  which  is  limited  to  two  lakes  shared 
with neighbouring countries, and regulated by bilateral agreements. On aviation, to comply 
with the requirements for the first transitional phase under the European Common Aviation 
Area  Agreement  (ECAA),  Albania  still  needs  to  address  the  findings  raised  by  the  EU 
Aviation  Safety  Agency  (EASA) during its standardisation inspection in  2022 on air traffic 
management (ATM) and air navigation services (ANS).  

The  Albanian  Civil  Aviation  Authority  has  a  new  structure  since  January  2023,  aiming  to 
improve  its  operability.  Currently,  oversight  duties  are  covered  by  outsourced  staff.  New 
Ministerial Orders have been adopted on the approval of the national civil aviation security 
quality  control  programme  and  on  the  national  civil  aviation  security  training  programme. 
Alignment with the EU ATM/ANS acquis is still not complete and, where the relevant rules 
are formally aligned, implementation is incomplete. Legislation on passenger rights is largely 
aligned with EU legislation.  

On combined transport, Albania has not aligned with the related EU directive and has yet to 
provide  references  to  national  legislation  that  have  been  aligned  with  the  EU  acquis.  The 
2021-2025  national  transport  strategy,  which  includes  the  priority  measures  for  intermodal 
and combined transport, is yet to be adopted. 

Albania  should  increase  efforts  to  align  with  and  implement  the  EU  passenger  rights 
legislation.  

Chapter 15: Energy  

EU  energy  policy  covers  energy  supply,  infrastructure,  the  internal  energy  market, 
consumers, renewable energy, energy efficiency, nuclear energy and nuclear safety, radiation 
protection and nuclear safeguards.  

Albania is in between a moderate and a good level of preparation in the area of energy. In 
the  reporting  period,  there  was  some  progress  on  reforming  the  day-ahead  and  intra-day 
electricity markets and progress in holding auctions for renewables projects.  

Limited  progress  was  achieved  in  the  gas  sectors  and  regional  interconnection  lines.  In  the 
context  of  the  global  energy  crisis,  these  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.  

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Albania still needs to adopt all the missing implementing legislation on energy efficiency. No 
new  energy-efficiency  funding  mechanisms  have  been  put  in  place.  The  energy-efficiency 
agency’s role, capacities and operations need to be further strengthened. Albania has adopted 
new energy and climate targets for 2030.  

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

→  ensure full access to the liberalised market for all customers connected to 20 kV in 2022, 
progressively  extend  this  access  to  all  customers  and  sell  and  buy  electricity  to  cover 
distribution losses on the ALPEX power exchange;  

→  update and implement the 2020-2030 national energy and climate Plan (NECP), as part of 
the  2030  decarbonisation  roadmap,  and  ensure  that  the  Albanian  renewable  energy 
operator  is  operational  by  the  end  of  2023;  strengthen  the  capacity  of  the  Energy 
Efficiency  Agency  and  continue  drafting  and  adopting  implementing  legislation, 
including establishing the energy-efficiency obligation scheme, and adopting the labelling 
regulations.  Proceed  with  the  comprehensive  assessment  of  the  potential  of  high-
efficiency cogeneration and district heating, in line with its obligations under the Energy 
Efficiency Directive; 

→  Transpose  and  implement  the  Electricity  Integration  Package  adopted  by  the  Energy 

Community Ministerial Council in December 2022.  

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

In  December  2022,  the  government  adopted  the  national  action  plan  for  response  to  the 
energy crisis. This plan follows a series of measures undertaken by the government under the 
state  of  emergency  for  the  supply  of  electricity, in  force  until  31 December 2023.  The  plan 
focused  on  vulnerable  households  and  SMEs  throughout  the  2022-2023  winter,  while 
continuing reforms towards energy sustainability and building resilience through diversified 
sources of energy.  

Albania’s electricity system has been connected to systems in Greece and Montenegro since 
2014.  The  Albanian  Power  Exchange  was  established  in  October  2020,  and  it  held  its  first 
day-ahead auction for the delivery of electricity on 12 April 2023. It aims to encourage more 
renewable  energy  investment,  guarantee  power  selling  and  fill  production  gaps.  In  2022, 
Albania’s  electricity  distribution  losses  in  the  power  grid  remained  at  19.7%,  with  a  slight 
reduction  (0.3%)  compared  with  2021.  The  Electricity  Integration  Package  remains  to  be 
adopted. 

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 improve energy 
security  for  the  country  and  the  region.  Preliminary  agreements  for  gas  supply  have  been 
signed  but  no  progress  in  terms  of  developing  its  own  gas  infrastructure  took  place  in  the 
reporting period. Such plans have raised concerns from civil society, in particular regarding 
protection  for  Vlora  bay.  Albgaz  has  been  licensed  and  certified  by  the  Energy  Regulatory 
Authority (ERE) as the combined gas transmission and distribution operator.However, some 

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certification conditions are not yet fulfilled. Albgaz is an observer at the European Network 
of Transmission System Operators for Gas (ENTSO-G).  

On the internal energy market, the transposition and implementation of the newly adopted 
electricity integration package is pending. The transmission system operator is unbundled and 
certified.  Legal  unbundling  of  the  distribution  system  operator  from  the  supply  branch  was 
completed by restructuring the former integrated utility OSHEE into a holding company with 
three  subsidiaries,  licensed  respectively  as  a  universal  service  provider  (FSHU),  electricity 
supplier (FTL) and distribution system operator (OSSH).  

In December 2022, ERE approved the contract for providing compliance officer services for 
the distribution system operator, which was the last measure needed to ensure the functional 
unbundling  of  the  distribution  system  operator.  The  Energy  Community  closed  the 
infringement case ECS-4/17 on the lack of distribution system unbundling in 2023. With the 
go-live  of  the  Albanian  Energy  Exchange  in  April  2023,  unbundling  brings  Albania  into  a 
better position to develop its power market further. The establishment of the intra day market 
is  pending.  Further  efforts  are  needed  to  strengthen  the  administrative  capacity  of  the 
National Regulatory Authority (ERE). 

Electricity prices are not fully liberalised. All customers connected to 35kV benefit from an 
unregulated market. The next step (de-regulating supply at all voltage levels, except the 0.4 
kV level) has yet to be completed. Given the energy crisis, a transitional mechanism has been 
put in place to allow the Albanian Power Corporation (KESH) to purchase electricity abroad 
and introduce a price cap on electricity for domestic customers in 2021, which was extended 
until December 2023.  

The  ERE  legal  framework  is  in  line  with  the  EU  acquis,  except  for  the  regulator’s  right  to 
impose  measures  promoting  competition,  requiring  transmission  and  distribution  system 
operators to change their terms and conditions and raising the level of the penalties that ERE 
can  impose.  ERE  still  needs  to  develop  its  capacity  to  address  shortcomings  in  the  energy 
markets. 

Albania’s legislation is partly aligned with the  hydrocarbons licensing directive. It has not 
been aligned with the Directive on the safety of offshore oil and gas installations.  

Albania needs to update and implement the national energy and climate plan (NECP) adopted 
in 2021, in line with the 2030 energy and climate targets. 

On renewable energy,  the feed-in  tariff  (FIT) support  scheme has been transformed into a 
contract  for  difference  (CfD)  for  large  producers  to  which  the  existing  power  purchase 
agreements  (PPA)  will  be  converted.  A  renewable  energy  operator  (REO)  should  be 
established. A pricing methodology for consumers with installed capacity up to 500 kW was 
adopted  in  2021  and  is  to  be  implemented  by  the  end  of  2023.  The  agency  responsible  for 
renewable energy has not yet been set up. This role is shared among the Ministry of Industry 
and Energy (MIE) and the National Agency for Natural Resources.  

Albania reached its target of a 39% share of renewables in total final energy consumption for 
2022,  based  on  the  national  consolidated  renewable  energy  action  plan  (NCREAP). 
Implementation  for  the  two  solar  photovoltaic  (PV)  farms  with  a  total  installed  capacity  of 
240 MW is ongoing (Karavasta 140 MW and Spitalla 100 MW).  

An auction on wind farms, with an installed capacity of 10 MW to 75 MW, was launched in 
2021. The first phase contracts were awarded in June2023 while in July 2023 three bidders 
were  awarded  a  total  of  222.5  MW  in  capacity.  To  accelerate  renewable  electricity 

114 

 
 
production and facilitate the transition from hydropower to other renewables, more auctions 
should be conducted.  

The  Renewable  Energy  Sources  Law  (RES)    aligned  with  the  Renewable  Energy  Directive 
(EU) 2018/2001, was adopted in March 2023. The new Law brings a series of innovations to 
the electricity sector, including that a renewable energy community has the right to produce, 
consume  and  sell  renewable  energy,  and  offer  aggregation,  including  power  purchase 
agreements. It abolishes the feed in tariffs support schemes, so that all support measures will 
be granted via competitive procedures. The Law on bioenergy is still pending adoption. 

Albania  depends  almost  exclusively  on  hydropower  for  electricity  generation,  making  it 
vulnerable to climate change. It is a net importer of electricity at a rate of 30% per year, as 
hydroelectricity  is  not  sufficient  to  cover  its  needs.  Progress  is  needed  in  power 
interconnection  with  neighbouring  countries  and  setting  up  an  integrated  regional  energy 
market,  to  strengthen  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 vulnerability to climate change 
impacts. Albania plans to use more photovoltaic and renewable energy from wind, and this 
trend should be pushed forward, based on the NECP 2030 energy and climate targets.  

The  concession  contracts  for  hydroelectric  power  plants  (HPP)  are  not  sustainable  for 
Albania. The small  plants have  a significant  impact  on biodiversity  and local  communities, 
notably  in  protected  areas,  where  around  100  concessions/private  investments  are  located. 
Plans  for  hydroelectric  power  plants  have  been  challenged  by  civil  society  during  public 
consultations,  questioning  the  regularity  of  concession  processes  and  the  validity  of 
environmental impact assessments (EIAs).  

Moreover,  no  strategic  environmental  assessments  (SEAs)  have  been  conducted.  A  large 
hydroelectric  plant  planned  in  Skavica  on  the  Drin  River  raised  concerns  from  local 
communities  and  environmentalists.  Civil  society  organisations  claim  that  there  were  no 
proper consultations on this plant in the decision-making process and no information on the 
resettlement plan.  Such investment needs to be fully compliant with the national legislation 
and  the  environmental  and  Energy  Community  acquis,  in  particular  regarding  public 
consultations  and 
impact  assessments  and  strategic 
environmental assessments. Further efforts are needed to give guidance on the development 
of hydroelectric plants and enforce environmental legislation. 

the  quality  of  environmental 

The  national  energy  efficiency  action  plan  (NEEAP),  is  an  integral  part  of  the  National 
Energy  and  Climate  Plan.  The  NECP  was  revised  based  on  recommendations  from  the 
Energy  Community,  aiming  to  reduce  the  final  energy  consumption  by  9.4%  and  to  start 
implementation  in  2024.  The  Energy  Efficiency  Agency  (EEA),  created  in  2018,  needs 
further administrative capacity. An EU twinning project (i.e. technical assistance provided on 
the  spot  by  EU-level  experts)  with  this  agency  started  in  September  2023.  The  goal  is  to 
support further development of the legislative and institutional framework for implementing 
the EU acquis on energy efficiency, to  support implementation of the 2015 Law on energy 
efficiency and to strengthen the capabilities of the Agency.  

Energy-efficiency  incentives  are  in  place,  including  a  household  subsidy  scheme  for 
installing  solar  water  heaters  and  improving  energy  efficiency  for  educational  and  public 
buildings.  In  October  2022,  the  Government  introduced  mandatory  15%  energy  saving 
targets for the public sector while Tirana Municipality is also supporting local residents with 
grants up to 50% of the insulation costs for their homes. Several implementing measures have 
been adopted in accordance with the Energy Efficiency First principle.  

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However, implementing legislation related to (i) the energy-efficiency obligation scheme, (ii) 
energy labelling, (iii) increasing the number of electric vehicles in the national car fleet and 
(iv)  minimum  energy  performance  of  buildings,  (v)energy  efficiency  measures  related  to 
purchasing by public authorities, remain to be adopted. Some progress was made in training 
experts  for  energy  audits  and  issuing  building  energy  performance  certificates.  Given  the 
targets and the ongoing energy crisis, other financing incentives and mechanisms for energy 
efficiency should be put in place, and energy efficiency projects should also be accelerated. 

Albania needs to ensure that implementable energy efficiency and renewable energy action 
plans are adopted within the scope of the NECP 2030, including the agreed 2030 targets on 
energy and climate.  

Albania  has  made  no  further  progress  on  nuclear  energy,  nuclear  safety  and  radiation 
protection. The country is considering to join the European Community Urgent Radiological 
Information Exchange system (ECURIE) system.  

On nuclear safeguards, upon accession, the existing systems of accountancy and control of 
nuclear  materials  in  Albania  would  need  to  be  adapted  to  accommodate  for  the  safeguard 
provisions (chapter 7) of the Euratom Treaty. 

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  trans-European  networks.  Some  progress  was 
made in developing transport and energy networks since work to prepare projects is ongoing. 
Albania needs to make further efforts to address the recommendations from last year that are 
still valid. 

In the coming year, Albania should, in particular: 

→  continue  developing  the  core  transport  and  energy  networks  in  line  with  the  national 
strategies for transport and energy and infrastructure investment prioritisation, under the 
single project pipeline;  

→  continue  to  align  its  legal  framework  with  EU  acquis  and  the  regulations  on  TEN-T 
(trans-European  transport  networks)  and  TEN-E  (trans-European  energy  networks), 
including  fully  aligning  guidelines  for  trans-European  energy  infrastructure  and 
strengthening the institutional framework and administrative capacity for developing and 
monitoring TENs;  

→  strengthen  capacity  for  and  ensure  progress  in  implementing  the  Economic  Investment 
Plan  for  the  Western  Balkans  projects  on  transport  and  energy,  in  line  with  the  agreed 
timetable within the Western Balkans Investment Fund platform, while contributing to the 
Green Agenda. 

Albania  has  made  some  progress  on  its  strategic  framework  for  transport  networks.  The 
draft national transport strategy for 2021-2025 and its action plan are yet to be adopted. This 
national transport strategy  include the regional and EU priorities, the Green Agenda, the EU 
Economic  Investment  Plan  for  the  Western  Balkans,  the  strategy  for  smart  and  sustainable 
transport  for  the  Western  Balkans,  as  well  as  all  action  plans  that  are  part  of  the  Transport 
Community Treaty cooperation. (See Chapter 14 - Transport). 

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Albania proposed that rail Corridor VIII be part of the extension of the TEN-T corridors to 
the Western Balkans region. A relevant high-level agreement on indicative maps for TEN-T 
in the Western Balkans was signed in June 2023. The amended maps for the new European 
Western Balkans corridor will be part of the revised TEN-T Regulation,  which is  currently 
being discussed by co-legislators. Corridor VIII will be part of the new European Transport 
corridor, linking South-East Europe with the centre of Europe through the Western Balkans 
region. 

Investment needs to be made in accordance with the cost/benefit analyses carried out in line 
with  EU  best  practice.  The  Design  of  the  Adriatic  Ionian  Road  connection  –  section  from 
border  with  Montenegro  till  Lezha  is  progressing.  The  Albanian  government  has  been 
launched  different  Public  Private  Partneship  (PPP)  schemes  and  works  are  ongoing  on 
different  sections  form  Thumana  till  Fieri.  Tirana  bypass  is  under  final  preparation  and 
planned to start in 2024. Projects are channelled through a single project pipeline, confirming 
the  country’s  strategic  orientation  towards  TENs.  Robust  measures  to  improve  the  road 
infrastructure  from  a  road  safety  point  of  view,  particularly  to  eliminate  identified  road  
accident  blackspots,  which  cause  fatalities  and  injuries,    should  continue  implementation 
following the road safety inspections and road safety audits.. The road core network is now 
covered by 5-year maintenance programmes. Adoption of the multiannual maintenance plans 
for the rail core network still remains a challenge, given the state of rail infrastructure.   

Work  to  prepare  road,  rail  and  port  infrastructure  projects,  especially  along  the  Adriatic-
Ionian road connection and Corridor VIII (Varna–Durrës) has shown progress as well.  

Concerning  rail,  work  to  rehabilitate  the  Durrës-Tirana  line  and  to  build  a  new  line  to  the 
international  airport  is  progressing  in  line  with  contractual  obligations  (48%  of  the  civil  
works  are  completed).  Further  efforts  and  strengthening  of  project  programming  and 
management  capacity  are  needed  to  avoid  bottlenecks  and  make  the  investment  grants 
awarded under the Western Balkans Investment Fund platform operational, and in particular 
to start working on the construction of the Tirana Bypass and the Vore-Hani Hotit rail line, 
connecting Albania with Montenegro. Both projects are expected to start in 2024. 

In December 2022, the government presented its plans for creating the Porto Romano port, 12 
kilometres north of Durrës. All the cargo activites currently at the ports of Durrës and Vlora 
would be relocated to this new port. A new eight kilometres railway line is to be constructed, 
to link the Porto Romano port with the existing rail network. This investment will take place 
in phases, and according to the authorities, phase 1 will be completed in 2027, including the 
container  terminal,  dredging  and  filling,  the  northern  breakwater  and  the  supporting 
infrastructure. 

Kukës  airport  in  the  north  of  Albania  started  normal  operations  in  July  2021,  focusing  on 
low-cost  airlines.  Construction  work  on  a  commercial  airport  in  the  Vjosa-Narta  protected 
landscape  is  ongoing.  This  causes  significant  concern  about  threats  to  the  environment,  the 
habitat, migratory birds and other living species.  

On  energy  networks,  efforts  are  still  necessary  to  adopt  the  strategic  environmental 
assessment  (SEA)  and  project  identification  plan  under  the  gas  master  plan,  since  it  is 
strongly interlinked with the development of TEN-E projects. The planned development, and 
interconnections between the LNG terminal in Vlora and regional gas pipelines (the existing 
Trans-Adriatic Pipeline and the envisaged Ionian Adriatic Pipeline) would increase regional 
energy security. More work is needed for the implementation of the above pipelines, as well 
as for the development  of a gas market  in  Albania. Such initiatives should  be implemented 
following  environmental  impact  assessments  and  strategic  environmental  assessments,  as 

117 

 
 
well  as  transparent  public  consultations  that  cover  all  stakeholders,  including  the  local 
population, environmental groups and civil society organisations. 

Progress  was  made  on  improving  the  infrastructure  for  electrical  power  transmission. 
Companies from Kosovo have joined the Kosovo-Albania control block and are participating 
in  the  Albanian  Energy  Exchange,  which  became  operational  in  April  2023,  following  the 
successful implementation of the platform operator. 

Concerning the construction of a 400kV interconnection line between Fier in Albania and the 
North Macedonia border, work is expected to start during 2023.  

Albania’s participation in the EU strategy for the Adriatic-Ionian region remains a priority for 
both  transport and energy networks  and it is  important  that the  country  continues its active 
involvement.  

Chapter 27: Environment and climate change  

The  EU  promotes  strong  climate  action,  sustainable  development  and  protection  of  the 
environment. EU rules contain 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  policies  and  legislation  with  the  EU  acquis  in  areas  such  as  water 
management, chemicals, environmental crime and climate policy.  

Albania made progress in the area of civil protection since it joined the EU Civil Protection 
Mechanism in 2022 and it has prepared a national disaster risk reduction strategy and action 
plan for 2023-2030. Albania needs to continue working to further improve its civil protection 
system.  Significant  efforts  are  needed  on  implementation  and  enforcement  for  waste 
management, water and  air quality  and  climate change, to  strengthen its  administrative and 
inspection capacities and implement structural, cross-sectoral reforms.  

Most  of  2022  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;  substantially  increase  the  budget  resources  and 
implementation  capacity  of  its  key  national  water  agencies;  adopt  the  River  Basin 
Management  Plans  (RBMPs)  for  the  Ishem,  Erzen  and  Mati  rivers  and  complete  these 
RBMPs for the Shkumbini and Vjosa rivers;  

→  take  immediate  measures  to  review  and  improve  the  quality  of  environmental  and 
strategic  impact  assessments  of  projects,  plans  and  programmes,  especially  in  the 
hydropower,  construction,  tourism,  transport  and  mining  sectors  (and  ensure  public 
participation  and  consultation  in  this  process);  take  immediate  measures  to  fight 
environmental crime and  achieve full alignment with the Environmental Crime Directive 
and with the Environmental Liability Directive and increase policy and law enforcement 
for nature and biodiversity protection, especially in the protected areas; 

→  set  up  flood  vigilance  mechanisms  and  risk  management  plans  in  all  river  basins; 
implement  the  national  strategy  on  climate  change  and  the  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 

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In  terms  of  horizontal  legislation,  Albania  still  needs  to  step  up  efforts  to  achieve  full 
alignment  and  implementation  in  most  areas.  The  implementation  of  the  Directives  on 
Environmental  Impact  Assessment  (EIA)  and  strategic  EnvironmentalAssessment  (SEA) 
needs to be significantly improved 

The  EIA  quality  and  the  relevant  processes  need  to  be  improved,  Recommendations  from 
EIAs  are  rarely  implemented;  they  should  be  enforced  and  then  monitored.  Public 
participation  and consultation  in  decision-making need to  be improved, particularly  at  local 
level.  

The EIA for Vlora Airport was broadly criticised by civil society and other stakeholders. One 
of the issues was the lack of consideration for the ‘protected area’ status of the selected site.   

Implementation  of  the  EU  Directive  on  protecting  the  environment  through  criminal  law 
needs to be improved, although convictions for environmental crime increased to 79 in 2022 
(from 65 in 2021).  

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 capacity should be rapidly strengthened, especially to 
address environmental crimes more effectively. The state budget for environment and climate 
change  remains  very  limited  in  2023,  and  not  sufficient  to  implement  the  EU  acquis. 
Frequent staff turnover and hiring of staff without relevant expertise, has further eroded the 
capacity  of  the  central  administration  and  related  agencies  in  this  area.  The  recent 
replacement  of  some  directors  in  the  regional  administration  of  protected  areas  across  the 
country has attracted particular attention and raised concerns about the management of these 
areas.  Corruption  cases,  identified  by  the  Specialised  Anti-Corruption  Structure  (SPAK) 
during the award procedures for the construction concession for the incinerator in Elbasan (in 
2021)  and  the  Fier  waste  incinerator  (in  2022),  are  being  investigated,  and  the  former 
Minister of Environment and former Secretary General of the Ministry of Environment have 
been indicted. 

More  efforts  are  needed  to  align  with  the  EU  air  quality  acquis,  including  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.  There  are  only  seven  automatic  air  monitoring 
stations in the whole country (located in the main cities) but data is not reported in real time 
and monitoring is not carried out during the whole year. The plan focuses mostly on transport 
measures, while air quality monitoring still not in line with EU standards. Implementation of 
the action plan for air quality and of the Directive on sulphur content in certain liquid fuels is 
ongoing, while implementation has not yet started for the Directives on controls on volatile 
organic compound (VOC) emissions and stage II petrol vapour.  

The legal framework for waste management is only partially aligned and substantial efforts 
to achieve full alignment are needed. Closing non-compliant landfills and dumpsites, as well 
as littering, remain significant challenges. Separate collection of waste streams and economic 
instruments to promote recycling and reuse and prevent waste generation are still insufficient. 
The  construction  of  a  new  incinerator  in  Tirana  poses  growing  concerns  in  terms  of 
compliance  with  the  EU  waste  acquis,  including  with  the  waste  hierarchy  and  recycling 
targets.  Moreover,  Albania’s  waste  management  policies  do  not  aim  to  reach  EU  2030 
recycling targets.  

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Albania  should  do  more  to  promote  the  circular  economy  and  incentivise  the  prevention, 
reduction and recycling of waste. In particular, it should invest further in composting, to cut 
down  landfills. The first three local composting facilities in the country have been built with 
donor funding, and started operation in 2022-2023, in the municipalites of Cerrik, Roskovec 
and Belsh. 

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,  and 
they  should  be  given  appropriate  staffing  and  budget.  In  January  2023,  a  unit  on  circular 
economy was set up within the Ministry of Tourism and Environment, and is awaiting proper 
staffing. In March 2022, Albania adopted legislation that bans the use of certain categories of 
plastic bags, and has partially aligned with the Directive on single-use plastics. However, the 
implementation of this ban is inconsistent. Further alignement with this Directive is needed, 
namely banning the other single-use plastic items. The entire legislation on waste needs to be 
reviewed and upgraded. 

On  water  quality,  the  level  of  alignment  remains  incomplete  and  two  laws  on  water 
resources and marine waters should still be adopted as early as possible . Directive-specific 
implementation  plans  for  the  Drinking  Water  Directive  and  Urban  Waste  Water  Treatment 
Directive  –  where  major  investment  is  required  for  compliance  –  were  prepared  in  2022. 
Following the 2020 adoption of the Drini-Buna and Semani River Basin management plans, 
Albania  should  complete  and  adopt  the  remaining  five  RBMPs  for  the  Ishem,  Erzen,  Mati, 
Shkumbini and Vjosa rivers.  

In  line  with  the  Green  Agenda  for  the  Western  Balkans,  Albania  should  increase  efforts  to 
strengthen transboundary basin management with neighbouring countries. This concerns the 
Drini-Buna  and  Vjosa  river  basins.  A  transboundary  approach  with  Greece  is  encouraged 
during  the  future  development  of  the  Vjosa  management  plan,  acknowledging  the  high 
ecological value and eco-tourism potential of the river and its national park status in Albania.  

To  ensure  progress  on  the  EU  water  acquis,  Albania  needs  to  substantially  increase  the 
budget resources and implementation capacity of the key national water agencies and adopt a 
capacity development plan. In addition, water quality and quantity monitoring is insufficient. 
The Water Resources Management Agency, together with the National Environment Agency  
and  other  water  monitoring  agencies,  should  urgently  plan  and  implement  a  national  water 
monitoring programme with sufficient resources.  

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

Albania  should  amplify  and  accelerate  further  its  water  reform  measures.  The  National 
Strategy of the Water Supply and Sewage Sector for the period 2023-2030 was approved by 
the Albanian Government on July 2023. The new law on water supply and sewerage and the 
revised water code should be adopted and implemented as soon as possible. There is also a 
need  to  ensure  full  alignment  with  the  urban  waste  water  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 
strategic  institutional  development  plan  of  the  National  Agency  for  Water  Supply  Waste 
Water  and  Waste  Infrastructure  (AKUM)  needs  to  be  adopted  and  enforced,  to  drive  and 
support the implementation of the water reform and the new 2030 strategy.   

Alignment  with  the  EU  acquis  on  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  extensive  tourism  and  industrial  investment  in 
protected  areas.  Construction  work  for  the  new  Vlora  Airport  within  the  Pishe  Poro-Narta 
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Protected  Area  (former  Vjosa-Narta  Protected  Area),  which  started  in  December  2021,  is 
ongoing. In  September 2023, the Standing Committee of the Bern Convention recommended 
to  Albania  to  suspend  the  construction  of  Vlora  Airport  until  a  new  and  sufficient 
Environmental  Impact  Assessment  (EIA)  procedure  is  conducted.  In  September  2023,  the 
Ministry of Tourism and Environment   started implementing a monitoring plan   in  order to 
minimise  the  environmental  footprint  of  the  Vlora  Airport  in  the  protected  area,   including 
through  on-site  verifications,  though  without  a  prior  updated  EIA.  Progress  was  made  in 
March 2023 with the upgrade of the status of the Vjosa River - from a Nature Park (Category 
IV) into a National Park (Category II). The upgrade of the status of the Vjosa River took the 
form of also including the tributaries of this river, which is among the last of Europe’s wild 
rivers.  Faster  implementation  of  the  rules  for  managing  revenues  generated  by  fees  paid  in 
Protected Areas should be considered.  

In  2022-2023,  the  government  of  Albania  increased  the  total  areas  under  protection  by 
creating two new protected areas, the Porto-Palermo Bay Nature Park and the Albanian Tulip 
Nature  Monument.  However,  the  capacity  and  funding  for  proper  management  of  all 
protected  areas  are  very  limited.  Albania  still  does  not  adequately  enforce  the  forest  and 
logging  laws:  despite  a  moratorium  on  logging,  this  practice  continues  unchecked. 
Prosecutions  of  arsonists  or  other  people  causing  forest  fires  are  rare,  considering  the  high 
number of intentional and unintentional fires in 2022. No convictions have been reported in 
these  cases.  The  moratorium  on  hunting  was  extended  by  an  additional  five  years  but,  for 
conservation purposes, a law and a plan to  enforce the moratorium should also  be adopted. 
Similarly,  hunting  continues  to  take  place,  despite  a  moratorium  being  in  place.  There  has 
still been no decision by the Elbasan court on the case of the poaching of a lynx in Elbasan in 
2020.  Albania  should  ensure  that  its  administration  has  adequate  capacity  to  prevent  and 
inspect wildlife crimes. 

The  Skavica  hydropower  plant  project  that  is  under  preparation  is  expected  to  have  a 
significant  environmental  and  socio-economic  impact  on  the  area,  and  impact  the  Balkan 
lynx populations that use this corridor to migrate between Albania and North Macedonia. The 
preliminary  environmental  impact  assessment  for  this  project  has  been  completed,  but  the 
representatives  of  the  affected  communities  claim  that  no  locals  were  invited  to  attend  the 
consultations. Investment in the road sector rarely includes in practice the obligatory planting 
and  restoration  of  roadside  slopes,  and  no  wildlife  crossing  has  so  far  been  planned  and 
implemented in Albania.  

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

Alignment with 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),  but  the 
implementing  legislation  has  yet  to  be  adopted  and  adequate  administrative  structures  have 
not yet been established. In October 2022, Albania further aligned its legislation with the new 
EU Regulation on persistent organic pollutants.  

Albania performed urban  noise  monitoring in  several  cities and municipalities, in  line with 
the national monitoring programme and according to WHO and national standards. Albania 

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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 
2022, it joined the EU Civil Protection Mechanism (UCPM), demonstrating its commitment 
to  contribute to  the Mechanism and make further progress  on civil  protection. Albania also 
prepared a national disaster risk reduction strategy and action plan for 2023-2030.  

Nevertheless,  the  country  should  work  on  further  improving  its  civil  protection  system. 
Considering  the  increased  frequency  of  national  disasters  in  the  last  decade  and  the 
intensified  impacts  of  climate  change,  Albania  should  review  its  emergency  plans  and 
substantially increase its 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, to 
increase the country’s resilience to natural disasters and crisis. The country should improve 
its management of flood risks in accordance with the EU floods Directive, and formulate new 
measures for to reduce the damage caused by flooding.  

This  includes  boosting  implementation  by  developing  and  adopting  flood  risk  management 
plans  in  all  basins.  And  further  improving  flood  forecasting  and  the  sustainability  of  the 
network  of national monitoring stations, as well as urgently regulating its early warning and 
hydrometric-meteorological services.  

Albania is also encouraged to develop river basin drought management plans, and forest fire 
risk  assessments  and  management  plans.  And  it  should  establish  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  line 
with  the EU  ambition.  It  also  joined the Global  Methane Pledge. The country presented its 
Fourth  National  Communication  to  the  UN  Framework  Convention  on  Climate  Change 
(UNFCCC)  on  November  2022.  Albania  is  committed  to  taking  measures  to  reduce 
greenhouse gas emissions from different economic sectors such as transport, agriculture, land 
use  and  forestry,  industrial  processes  and  waste,  according  to  its  updated  National 
Determined  Contribution  (NDC).  Albania’s  revised  contribution  to  mitigation  aims  to 
decrease  emissions  by  20.9%  by  2030  compared  to  the  Business  as  Usual  scenario.  In 
February  2023  a  ministerial  decision  approved    the  national  strategy  for  development  and 
European  integration  (NSDI)  2022-2030,  which  sets  out  a  series  of  priority  measures  like 
adoption of climate secondary legislation, climate budgeting, and nature-based solutions.  In 
addition,  by  December  2022  the  country  had  partially  aligned  with  the  Regulation  on  the 
governance of the energy union and climate action.  The level of emission reductions planned 
for 2021-2030 in the NECP is 18.7%.. The plan relies significantly on sequestration of CO2 
by forests, but there are very limited financial means and capacity allocated to protecting and 
managing forests, including measures to promote reforestation and manage forest fire risks. 
This should be urgently tackled. 

The national strategy on climate change will need to be updated 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  for  the  environment.  Capacity  in  the  public 

122 

 
 
administration  for  interpreting  the  climate  change  impacts  on  Albania  and  incorporating 
climate  change  into  sectoral  strategies  and  plans  remains  very  limited;  capacity  building  is 
very much needed in this regard. No emissions register is in place. 

Substantial  investment  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 are 
expected  to  substantially  affect  the  society  ,  public  infrastructure  and  economic  activities. 
Climate  risk  management  plans  need  therefore  to  be  adopted  at  all  levels,  and  major  vital 
infrastructures  need  to  be  climate-proofed,  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  phytosanitary  policy  (Chapter  12);  fisheries  and  aquaculture  (Chapter  13);  regional 
policy and coordination  of structural  instruments (Chapter  22); and financial and budgetary 
provisions (Chapter 33).  

The cluster comprises policies linked to sustainable and inclusive regional development and 
the  EU’s  funding  system;  particular  preparation  is  needed  in  this  respect  to  develop  the 
capacity  required  of  a  future  Member  State.  Albania  has  some  level  of  preparation  in  most 
areas 
to  resources,  agriculture  and  cohesion,  namely  agriculture  and  rural 
development,  veterinary  and  phytosanitary  policy,  and  financial  and  budgetary  provisions. 
The  country  is  moderately  prepared  regarding  fisheries  and  aquaculture  as  well  as  regional 
policy and coordination of structural instruments.  

linked 

Albania has made some progress in agriculture and rural development, notably in developing 
administrative capacity for the instrument for pre-accession assistance for rural development 
programme  (IPARD  III).  Some  progress  was  also  observed  on  fisheries  and  aquaculture. 
Albania made limited progress on financial and budgetary provisions. 

Chapter 11: Agriculture and rural development 

The EU’s common agricultural policy supports farmers and ensures Europe’s food security. 
It  helps  tackle  climate  change  and  the  sustainable  management  of  national  resources; 
maintains rural areas and landscapes across the EU; and keeps the rural economy alive by 
promoting jobs in farming, agri-food industries and associated sectors. This requires strong 
management and control systems. There are also common EU rules for marketing standards, 
quality policy and organic farming. 

Albania has some level of preparation in agriculture and rural development. Some progress 
was achieved with regard to (i) developing administrative capacity to prepare the instrument 
for  pre-accession  assistance  for  rural  development  (IPARD  III)  programme  and  (ii)  the 
adoption of the law on wine and (iii) adopting an implementation plan for the setting up of 
the farm accountancy data network (FADN).  

Some  of  the  Commission’s  recommendations  from  2022  were  not  fully  implemented  and 
remain valid. 

In the coming year, Albania should in particular:  

→  ensure  the  necessary  administrative  capacity  is  available  for  the  setting  up  of  the  farm 

accountancy data network (FADN); 

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→  Ensure  that  the  administrative  capacity  required  for  the  entrustment  of  budget 
implementation  tasks  under  the  IPARD  III  programme  is  in  place,  in  line  with  the 
principles of sound financial management; 

→  complete the legal frameworks on quality policy and organic food production; ensure that 

the institutional and administrative capacity for their implementation is in place.  

On horizontal issues, a farm register was put in place and should be improved to fully align 
with  EU  acquis.  Registration  of  farms  is  required  and  performed  by  the  advisory  services, 
both  under  national  schemes  and  under  relevant  IPARD  measures.  The  farm  register  is  an 
important first part of the future integrated administration and control system (IACS) and it 
will  support  the  implementation  of  IPARD  III  programme.  There  was  no  progress  in 
establishing a land parcel identification system (LPIS). An implementation plan, with specific 
details of the timeline and resource allocation to set up the FADN was adopted in April, and 
the necessary administrative capacity now needs to be deployed. 

Direct  payments  to  farmers  are  coupled  to  production  and  not  subject  to  cross-compliance 
rules. All support measures need to be brought in line with the EU acquis. In spite of a slight 
increase,  as  compared  with  the  previous  year,  the  national  agriculture  budget  remains  low. 
Implementation of the strategic action plan for the reform of the advisory system has started, 
but implementation capacity remains low.  

There  was  limited  progress  on  setting  up  a  common  market  organisation  (CMO). 
Legislation  on  vineyards  and  wines  aligning  with  the  EU  acquis  was  adopted,  including 
implementing  legislation  setting  rules  for  registration  in  the  vineyards  register  and  for 
declarations and information collection by operators. Further efforts in this area are needed. 
Institutional capacity for implementation is still low. 

On rural development, implementation of the IPARD II programme continued but increased 
capacity building and oversight is needed to ensure completion of the IPARD II programme 
and the efficient implementation of the IPARD III in full compliance with the principles of 
sound financial management.  

Legislation on quality policy is partly aligned with the EU acquis.  

On  organic  farming,  additional  effort  is  needed  to  adopt  the  legislation  on  organic 
production,  which  has  been  drafted  in  line  with  the  recent  reform  of  EU  acquis.  Albania 
continued to provide 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 the quality 
of  seeds,  plant  protection  material,  the  protection  against  harmful  organisms  and  animal 
nutrition.  

Albania  has  some  level  of  preparation  in  the  area  of  food  safety,  veterinary  and 
phytosanitary policy. Limited progress was achieved over the reporting period, particularly 
on  alignment  with  the  acquis  on  official  controls,  animal  and  plant  health.  The  work  has 
started  but  significant  further  efforts  are  needed.  Albania  made  progress  on  designing  and 
adopting the food safety national sectoral policy. 

The Commission’s recommendations from last year were not fully implemented and remain 
valid. In the coming year, Albania should in particular:  

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→  work  on  alignment  of  national  legislation  with  the  acquis  under  the  framework  of  their 
national sector policies, specifically for  relevant  laws on official controls, animal health 
and plant health;  

→  finalise the staffing of the veterinary service in order to ensure it is fully operational;  

→  strengthen the capacity to implement effective surveillance and vaccination programmes 
on  the  main  infectious  animal  diseases,  including  rabies;  continue  to  efficiently 
implement the rabies vaccination programme in 2024.  

There  was  limited  progress  in  implementing  the  acquis  on  general  food  safety.  Some 
progress  took  place  at  the  National  Food  Authority  by  revitalising  the  AKU-net  system  on 
inspection  statistics,  data  management  and  transparency.  Significant  work  is  still  needed  to 
reduce  the  administrative  burden  for  planning  and  reporting  on  risk-based  official  controls 
and to ensure the national data are transparent.  Despite setting up of  the Scientific Panel in 
June 2022 and February 2023, the results of its work are not yet public.  

Albania has made limited progress on veterinary policy. Following the reorganisation of the 
Ministry  of  Agriculture  and  Rural  Developement  in  May  22,  further  structural  reforms  are 
still necessary to have a clear chain of command and line of communication/reporting, in line 
with the EU acquis. Adequate human resources should be ensured by filling vacancies in the  
general directorate dealing with food safety, veterinary and plant protection. 

Moreover,  while  the  National  Veterinary  and  Plant  Protection  Authority  increased  its 
veterinary staff, the reform of the veterinary sector remains uncomplete. Significant work is 
still needed to establish the necessary capacity on passive and active surveillance, including 
reliable assessments of the prevalence of diseases. Substantial work is also required on data 
analysis  and  on  the  design,  planning,  and  implementation  of  effective  systems  for  disease 
prevention and/or eradication.  

Albania  continued  its  work  on  animal  diseases  through  two  vaccination  campaigns  against 
rabies  and  the  implementation  of  control  and  eradication  programmes  for  monitoring 
brucellosis and tuberculosis in cattle herds, brucelosis in small ruminants and anthrax. While 
countrywide  verification  and  registration  of  the  number  of  animals  in  Albania  continued, 
substantial  work  is  required  to  upgrade  the  animal  register  with  additional  information  on 
other animals, such as swine, equine animals and poultry, as referred to in the EU acquis, to 
ensure that solid traceability systems are established for food of animal origin. 

Regarding the placing on the market of food, feed and animal by-products, while Albania 
has made some progress in aligning its legislation with the EU acquis, implementation of its 
national residue monitoring plan remains an issue. In particular as regards veterinary medical 
products,  pesticide  residues,  heavy  metals  and  mycotoxins  in  live  animals  and  products  of 
animal origin. No validated screening methods are yet in place to guarantee the reliability of 
results for the relevant  species and commodities. Limited progress  was made in  developing 
capacity  and  accreditation  and  validation  methods  for  Albania’s  laboratory  network.  No 
progress  was  made  on  the  legal  basis  of  animal  by-products.  Preliminary  work  started  on 
categorising food establishments but futher work is required to align with the acquis. 

Concerning food safety rules, Albania continued to align with the acquis on food additives 
and identification of maximum levels for certain contaminants in food. Raw milk testing was 
included  in  the  2023  official  control  plan  but  more  progress  is  needed  on  developing  a 
roadmap to improve milk quality.  

Progress on phytosanitary policy remains limited. Albania approved an action plan for the 
sustainable use of plant protection products but the plant health law remains to be adopted. 
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Albania continued to update the list of active substances in plant protection products, in line 
with the acquis.  

No progress was made on feed or genetically modified organisms and the legislation is yet 
to be adopted.  

Chapter 13: Fisheries and aquaculture 

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 control and inspection, rules on markets and 
aquaculture  and  support  for  fisheries  and  coastal  communities.  Further,  it  promotes  a 
sustainable aquaculture.    

Albania  is  moderately  prepared  in  fisheries  and  aquaculture.  It  made  some  progress, 
specifically  on  keeping  the  vessel  monitoring  system  (VMS)  operational  and  allocating 
human  resources  to  monitor  and  report  on  activity  by  fishing  vessels.  There  was  limited 
progress  on  filling  vacancies  in  the  fishery  directorate.  The  administrative  capacity  of  the 
inspectorate and central administration need to be further improved. As a contracting party of 
the  General  Fisheries  Commission  for  the  Mediterranean  (GFCM),  Albania  is  fully 
implementing the recommendations to control its fishing effort. 

The  Commission’s  recommendations  from  2022  remain  largely  valid.  In  the  coming  year 
Albania should in particular:  

→  build  up  the  necessary  administrative  capacity  in  the  fishery  sector,  notably  by 
completing staffing, strengthening data collection and scientific advice and implementing 
national  policies  in  line  with  EU’s  common  fisheries  policy  (CFP)  and  international 
agreements;  

→  take concrete steps to implement the regional plan of action for small-scale fisheries; 

→  continue its active participation in the GFCM inspection scheme in the Adriatic Sea.   

Regarding  resource  and  fleet  management  and  structural  measures,  the  vessel  register 
has  improved  and  fishery  production  data  are  regularly  maintained  and  updated.  Albania 
continues  to  implement  the  legal  acts  related  to  managing  commercial  fishing  capacity. 
Ministerial orders have been issued in line with  the recommendations of the GFCM for the 
sustainable  exploitation  of  fish  stocks.  Regarding  small-scale  fisheries,  no  significant  step 
was  taken.  The  government  continued  to  implement  financial  support  measures  for  the 
fishery  and  aquaculture  sector  as  part  of  its  2022-2023  national  funding  programme  for 
agriculture and rural development.  

Inspection  and  control  capacity  has  improved.  The  vessel  monitoring  system  (VMS)  is 
functional  and  operational.  Two  patrol  boats  for  fishery  inspectors  were  purchased  and 
delivered.  The  legal  basis  for  the  electronic  reporting  system  (ERS)  was  prepared  and 
approved  by  the  Council  of  Ministers  and  financial  resources  earmarked  in  the  budget  for 
setting it up. The Ministry of Agriculture has six system operators at the central level of the 
Directorate of Fisheries and Aquaculture Service; these monitor and report on the activity of 
fishing  vessels,  in  addition to  the fisheries monitoring centre (IMOC).  Sufficient  inspection 
and  control  capacity  is  in  place  to  monitor  marine  fishing  activity  for  all  vessels  over  12 
metres  long  24/7,  to  control  fishing  activities,  to  prevent,  reduce  and  eliminate  illegal, 
unreported  and  unregulated  fishing  (IUU).  The  inspection  and  control  capacity  to  fight 
against  IUU  was  strengthened  through  cooperation  with  the  European  Fisheries  Control 
Agency (EFCA).   

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The  capacity  to  interpret  and  implement  the  national  legislation  in  this  field  or  the  EU 
common  fisheries  policy  remains  weak  and  data  collection  needs  to  be  improved,  in 
particular on scientific capacity and data management. The structure and human resources of 
the Fishery Directorate central administration remain to be improved. 

The adoption procedure of the plans on the allocated zones for aquaculture (Shengjin, Durrës 
and Vlora) is ongoing, plans are currently under public consultation. Efforts to prepare such 
zones for inland waters have started.  

On  market  policy,  the  wholesale  market  for  fishery  products  and  aquaculture  in  Shengjin 
fishing  port  and  in  Vlora  are  not  yet  fully  operational.    On  State  aid,  support  was  made 
available  in  2022  for  replacing  fishing  vessels  and  equipment  (50%  co-funding).  A  fuel 
compensation  scheme  for  fishing  vessels  operators  was  implemented.  In  2023  State  aid  is 
provided  under  the  national  supporting  scheme,  as  a  separate  financing  measure  for  the 
fisheries sector.  

Regarding  international  agreements  on  fisheries  and  aquaculture  management,  two 
cooperation agreements are in force: with North Macedonia for joint fisheries management in 
Lakes  Ohrid  and  Prespa  and  with  Montenegro  on  joint  fisheries  management  of  Shkodra/ 
Skadar Lake and the Buna/Bujana river. Albania is a contracting party to the GFCM and has 
fully implemented the recommendations of this body on controlling its fishing effort. Albania 
should  continue 
implement  GFCM  measures  and 
recommendations,  notably  (i)  implementing  the  multiannual  management  plans  for  the 
conservation  and  sustainable  exploitation  of  small  pelagic  and  demersal  fisheries  in  the 
Adriatic Sea, and (ii) increasing activities to implement the regional action plan of action for 
small-scale fisheries in the Mediterranean and the Black Sea (RPOA-SSF). 

to  actively  participate  and 

As  regards  the  wider  blue  economy,  to  ensure  the  optimal  development  of  all  sea-related 
activities  in  a  sustainable  manner,  Albania  is  encouraged  to  promote  regional  maritime 
cooperation with partner countries in the Adriatic-Ionian sea. 

Chapter 22: Regional policy and coordination of structural instruments 

Regional  policy  is  the  EU’s  main  tool  for  reducing  regional  disparities  and  investing  in 
sustainable  and  inclusive  socio-economic  growth.  It  is  operating  through  “shared 
management”  between  the  Commission  and  EU  Member  States.  The  implementation  of 
cohesion  policy  programmes  requires  appropriate  administrative  capacity  on  programme 
and  project  level,  the  establishment  of  systems  of  sound  financial  management  and  control 
and  also  the  fulfilment  of  other  EU  acquis  elements  such  as  environmental  or  public 
procurement legislation. 

Albania  is  moderately  prepared  as  regards  regional  policy  and  coordination  of  structural 
instruments. Limited progress was made over the reporting period. However, the adoption in 
July 2022 of implementing legislation based on the Albanian Law on regional development 
and cohesion with the setting up of the National Committee for Regional Development and 
Cohesion are worth noting.  

The recommendations for 2022 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 in the 
requirements of the future structural and cohesion funds in the institutional set-up and the 
financial management and control systems, ensuring that all its instruments and funds are 
gradually  made  compliant  with  EU  requirements  in  terms  of  programming  and 
partnership principles;  

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→  implement the national strategy for regional development and cohesion (2021-2027) and 
complete the regional development plans (2021-2024). These two measures should foster 
development potential through decentralised intervention based on local and/or regional 
integrated plans and strategies;  

→  clarify  responsibilities  between  central  and  local  authorities,  and  further  strengthen 
administrative  capacity  in  central,  regional  and  local  bodies,  by  ensuring  adequate 
staffing, 
fiscal 
decentralisation high on the agenda. 

local  government  salary  structure  and  keeping 

revising 

the 

Regarding  the  legislative  framework  for  regional  policy,  implementing  legislation  was 
adopted in July 2022 regarding the creation, organisation and operating rules of the National 
Committee for Regional Development and Cohesion under the Prime Minister’s office.  

The  Law  on  regional  development  and  cohesion  divides  the  territory  of  Albania  into  four 
development regions, each of them covering three counties. Efforts should be pursued to draft 
the  national  and  regional  plans  (2021-2024)  as  part  of  the  national  strategy  for  regional 
development (2021-2027).  

The Albanian Development Fund (ADF) is responsible for implementing the Law on regional 
development. It also has a mandate to prepare the national plan for regional development, as 
well as regional plans for the four development regions, to be implemented through a national 
operational programme for regional development with ADF as managing authority.   

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  bodies 
involved  and  ensure  coordination  between  them.  An  inter-institutional  working  group  for 
Chapter 22 negotiations was established, chaired by the Ministry of Interior. The authorities 
should  strengthen  regional  policy  dialogue  by  making  it  more  inclusive  and  improving 
coordination among ministries and with autonomous local governments. Capacity to manage 
public  funds  locally  has  to  be  strengthened.  (See  above  under  Political  Criteria  - 
Governance).  

Albania also needs to address issues with strategic planning, implementation and monitoring 
capacity for infrastructure projects financed by the Western Balkans investment fund (WBIF) 
under the economic and investment plan (EIP).  

On administrative capacity, the staff of the bodies involved in indirect management should 
continue  to  receive  training,  especially  those  that  are  new  to  managing  EU  funds. 
Strengthening human resources should remain a focus, along with an adequate staff retention 
policy. The administrative capacity for coordinating and monitoring sectoral reform through 
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. 

On programming, efforts should continue to develop autonomous programming capacity for 
the period ahead. In December 2022, a decision was adopted to align strategic priorities and 
the  medium-term  budget.  The  national  single  project  pipeline  of  investment,  including  for 
regional development, remains to be adopted. A key element for regional development will 
be to ensure ownership by public and private bodies at national and sub-national levels.  

Albania  continues  to  gain  experience  in  programming  and  implementing  regional  policy 
cooperation through participation in cross border cooperation, transnational and interregional 
cooperation  programmes.  Albania  participates  in  the  EU  strategy  for  the  Adriatic  Ionian 

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region  (EUSAIR),  which  promotes  cooperation  and  synergies  among  participating  EU  and 
non-EU countries. 

On  monitoring  and  evaluation,  the  sectoral  monitoring  committee  issue  operational 
recommendations  for  all  IPA  sectors  and  strategic  issues  are  being  discussed  at  the  IPA 
monitoring committee. The work to ensure adequate monitoring of all programme activities 
by  the  State  Agency  for  Strategic  Programming  and  Aid  coordination  (SASPAC)  should 
continue.  The  support  offices  of  the  National  Authorising  Officer  and  the  National  IPA 
Coordinator  have  yet  to  establish  a  list  of  key  performance  indicators  for  evaluating 
performance.  

On financial management, control and audit, an evaluation of indirect management by the 
beneficiary country under IPAII found that the Albanian 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 (NAO) needs to 
ensure that its management declaration adequately reflects the results of its supervision and 
monitoring  of  management  and  control  systems.  The  NAO  support  office  will  also  have  to 
strengthen  its  work  with  a  view  to  Monitoring  the  implementation  of  sectoral  operational 
programmes in indirect management by newly appointed bodies. The Officer’s support office 
has  yet  to  establish  procedures  to  ensure  immediate  dissemination  and  implementation 
throughout the institutions, regarding internal control by the Commission. Irregularities still 
need  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 

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. 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  on  financial  and  budgetary  provisions.  Limited 
progress was made in aligning with the EU acquis in the underlying policy fields that affect 
the functioning of the EU funding system.  

Methodological  improvements  continued  concerning  alignment  with  ESA  2010  standards 
(European  System  of  Accounts),  and  improving  data  transmission  of  the  excessive  deficit 
procedure  (EDP)  tables  through  the  Albanian  Integrated  Government  Financial  Statistics 
compilation system (AIGC).  

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  and  improving  the 
comprehensiveness  of  data  transmission  to  Eurostat,  including  on  the  excessive  deficit 
procedure; 

→  align its legislation with the EU provisions on VAT and customs duties  and strengthen 

efforts to tackle fiscal evasion and informality; 

→  enhance  administrative  capacity  and  coordination  mechanisms  among  key  stakeholders 

in the own-resources system.   

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There  was  some  progress  in  the  underlying  policy  areas  that  indirectly  affect  the  own-
resources system (for progress in these areas, see Chapters 16 – Taxation, 18 – Statistics, 29 
– Customs union, and 32 – Financial control).  

On  traditional  own  resources,  a  new  Law  on  income  taxes  was  adopted  in  March  2023, 
which  will  enter  into  force  in  2024.  Albania  does  not  yet  have  in  place  a  medium-term 
revenue strategy. Current legislation remains partly aligned with the relevant EU directives. 
Amendments  were  made  to  the  VAT  and  excise  legislation,  aiming  to  align  it  with  the 
respective EU directives, reduce some tax exemptions and upgrade excise fees.  

Regarding the Gross National Income (GNI) resource, the Institute of Statistics (INSTAT) 
continued the regular transmission of GNI and GDP data to Eurostat, in the framework of the 
ESA  2010  transmission  programme.  However,  significant  improvement  is  still  needed  to 
achieve full compliance, mainly in the approach to quarterly GDP by income and population 
and employment data, and the GNI inventory  should be updated. Work continued to improve 
the full set of non-financial accounts data, the estimation  components  for the non-observed 
economy,  and  the  regional  accounts,  as  well  as  to  fully  integrate  the  supply  and  use  tables 
into national accounts.  

Albania continuedto align its legislation with ESA 2010 standards and publish the inventory 
of  resources  and  methods  used  in  the  national  accounts.  The  country  remains  partly  in  line 
with ESA 2010. INSTAT provided a draft inventory of the methods, procedures and sources 
used  to  compile  deficit  and  debt  data  and  the  underlying  government  sector  accounts, 
according to ESA.  

However, further efforts are needed to improve compliance with ESA 2010 and to set up the 
GNI Inventory in full alignment with Eurostat recommendations. The benchmark revision of 
national accounts is postponed to 2024 and the new GNI Inventory is going to be provided 
after  its  implementation.  INSTAT  continued  its  work  to  improve  the  EDP  data  and  the 
submission of questionnaires and pilot estimations to Eurostat, following the ESA 2010 and 
the  manual  on  government  deficit  and  debt  (MGDD),  but  substantial  efforts  are  needed  to 
reach the full compliance with ESA 2010 requirements. 

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 of illegal activities and fiscal audits, was 
implemented.  Efforts  continued  to  improve  the  exhaustiveness  of  estimates  of  national 
accounts. Based on the ESA 2010 methodology (European System of Accounts) and the data 
sources  available,  a  direct  estimation  of  the  non-observed  economy  was  achieved,  but  it 
doesn’t include all types of exhaustiveness adjustments. A GDP revision is planned in 2024, 
as a result of ongoing methodological improvements implemented in recent years.  

On  administrative  infrastructure,  Albania  needs  to  continue  the  work  on  creating  the 
relevant institutions involved in the own-resources system and an own-resource coordination 
body,  and  on  implementing  rules.  These  are  needed  to  ensure  that,  when  it  joins  the  EU, 
Albania 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.  

As  part  of  the  2008  Law  on  management  of  budgetary  system,  Albania  has  in  place  legal 
provisions which define the criteria for initiating public financial inspection, in cases of any 
irregularities,  and  serious  financial  mismanagement  situations.  Furthermore,  the  general  tax 
directorate and the general customs directorate continued their work on identification of tax 
evasion and fraud. (See also chapter 16, 29 and 32 on actions against corruption). Continued 

130 

 
 
efforts  are  needed  to  formalise  the  informal  economy,  improve  the  exhaustiveness  of  the 
national accounts and GDP/GNI calculations and combat tax evasion and customs duty fraud.  

CLUSTER 6: EXTERNAL RELATIONS  

There  are  two  chapters  in  this  cluster:  external  relations  (Chapter  30)  and  foreign,  security 
and defence policy (Chapter 31). Albania has a good level of preparation in both.  

As regards Chapter 31, during the reporting period 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’s restrictive measures following Russia’s invasion 
of Ukraine.  

As  a  non-permanent  member  of  the  UN  Security  Council  since  January  2022,  Albania 
continues  to  be  actively  engaged  in  promoting  and  defending  the  rules-based  international 
order.  

Albania made some progress on external relations, in particular in further aligning with the 
EU acquis its legislation on preventing trade in certain goods that could be used for capital 
punishment and torture. 

Chapter 30: External relations 

The EU has a common commercial policy towards non-EU countries, based on multilateral 
and bilateral agreements and autonomous measures. There are also EU rules in the field of 
humanitarian aid and development policy. 

Albania  has  a  good  level  of  preparation  in  external  relations.  Some  progress  was  made 
during  the  reporting  period,  particularly  regarding  alignment  of  the  legislation  with  the 
relevant  EU  acquis  on  preventing  trade  in  certain  goods  that  could  be  used  for  capital 
punishment and torture.  

Last year`s recommendations were partly implemented; therefore, in the coming year Albania 
should focus on: 

→  continuing to implement CEFTA additional protocol 5 on trade facilitation and additional 
protocol 6 on trade in services, and make progress with preparations to adopt additional 
protocol 7 on dispute settlement; 

→  establishing  a  legal  framework  covering  international  cooperation  and  development 

policy as well as humanitarian aid, in line with EU policies and principles. 

On 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) 
and its Dispute Settlement Body. In December 2022, Albania adopted its Law on accession to 
the  WTO  Joint  Initiative  on  Services  Domestic  Regulation.  Albania  also  adopted  in  March 
2023 the Agreement on Fisheries Subsidies in its Council of Ministers, which was ratified by 
Parliament in June 2023. 

Albania  continued  to  implement  Central  European  Free  Trade  Agreement  (CEFTA) 
commitments  related to  additional protocol  5 on trade  facilitation and  additional protocol  6 
on  services.  A  memorandum  of  understanding  was  signed  in  September  2022  between  the 
governments  of  Albania  and  Italy  to  enable  the  extension  of  the  green  lanes  between  the 
Western Balkan countries and the bordering EU Member States.  

Albania  continued  its  awareness  campaign  with  private  sector  representatives  regarding  the 
procedures  and  benefits  involved  in  applying  for  authorised  economic  operator  status,  and 

131 

 
 
has  so  far  registered  18  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 additional protocol 7 on dispute settlement.  

Albania  has  yet  to  align  its  national  control  list  of  dual-use  goods  with  the  Commission 
delegated Regulation of 21 October 2022 on the list of dual-use items. In April 2023, Albania 
adopted  its  Law  on  goods  that  could  be  used  for  capital  punishment  or  torture,  which 
provides for partial alignment with the acquis on trade in certain of goods that could be used 
for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment.  

There has been no progress on export credit guarantees, although Albanian 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.  

Albania  has  40  bilateral  investment  treaties  in  force,  22  of  which  are  with  EU  Member 
States.  Albania  is  negotiating  with  China  a  memorandum  of  understanding  concerning 
investment  cooperation  in  the  digital  economy,  with  Azerbaijan  in  the  field  of  economic, 
industrial  and  technological  cooperation  and  with  India  an  agreement  on  establishing  an 
intergovernmental commission on economic cooperation. 

Albania  has  no  development  policy  framework  for  cooperation/aid  or  agency  for 
development  cooperation.  It  is  encouraged  to  establish  a  legal  framework  covering 
international  cooperation  and  development  policy  as  well  as  humanitarian  aid  for  non-EU 
countries, in accordance with EU policies and principles. In March 2023, Albania became a 
member of the OECD Development Centre. 

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  by  the  Council  of 
Ministers  were  adopted  in  March  and  June  2022  to  address  humanitarian  aid  issues  for 
Ukrainians coming to Albania, following Russia`s invasion of Ukraine, and on the financial 
aid to be provided to the Ukrainian government for that country’s reconstruction.  

Chapter 31: Foreign, security and defence policy 

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, in the reporting period, its track-record 
of  full  alignment  with  relevant  High  Representative  statements  on  behalf  of  the  EU  and 
relevant  Council  Decisions,  including  with  the  EU  restrictive  measures  following  Russia’s 
war of aggression against Ukraine.  

Furthermore,  as  a  non-permanent  member  of  the  UN  Security  Council  since  2022,  Albania 
has  continued  to  be  actively  engaged  in  promoting  and  defending  the  rules-based 
international order, in particular in the context of Russia’s war against Ukraine.  

Some  progress  was  made  in  implementing  the  national  strategy  on  small  arms  and  light 
weapons  and  in  aligning  with  the  EU  acquis  in  this  field,  but  Albania  remains  both  a 
destination  and  a  transit  country  for  light  firearms.  Albania  continued  to  participate  in  EU 
crisis management missions and operations under the Common Security and Defence Policy  

In the coming year, Albania should in particular: 

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→  maintain  its  alignment  with  EU  foreign,  security  and  defence  policy  and  strengthen  its 
implementation in all international fora and its enforcement capacity regarding restrictive 
measures; 

→  consider stepping up its participation in EU crisis management missions and operations ; 

→  continue to  implement  its 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 
Common Foreign and Security Policy dialogue, at political directors’ level. Albania supports 
the Global Strategy for the EU's Foreign and Security Policy of June 2016 and the 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,  while  the  Ministry  of  Defence  deals  more 
specifically with the common security and defence policy. When invited during the reporting 
period,  Albania  aligned  with  all  (100%)  of  relevant  Council  Decisions  and  High 
Representative declarations on behalf of the EU, including all EU restrictive measures against 
Russia  and  Belarus  following  Russia’s  war  of  aggression  against  Ukraine.  This  is  a  strong 
signal of the country’s strategic commitment to its EU path.  

Albania  made  efforts  to  implement  EU  restrictive  measures.  However,  the  technical 
implementation  and  enforcement  of  the  increasingly  complex  EU  sanctions  regimes  pose  a 
challenge.  The  authorities  should  continue  to  strengthen  their  capacity  in  this  regard.  In 
March  2023,  Albania,  North  Macedonia,  Kosovo  and  Montenegro  launched  the  informal 
"Western Balkan QUAD – 100% alignment with EU CFSP", a platform aimed at facilitating 
their full alignment with the EU’s CFSP. 

Albania’s  priorities  as  a  non-permanent  member  of  the  UN  Security  Council  in  2022-2023 
are in line with important EU priorities, including strengthening the agenda for women, peace 
and security, human rights and international law, countering violent extremism, and climate 
and  security.  The  new  national  action  plan  on  Women,  Peace  and  Security  was  finalised. 
Albania has closely cooperated and coordinated with the EU and with the EU Member States 
in  the  UN  Security  Council,  including  on  the  international  response  to  Russia’s  war  of 
aggression  against  Ukraine.  In  March  2023,  Albania  became  a  member  of  the  OECD 
Development Centre. While Albania generally aligns with the EU’s positions in international 
organisations, implementation of a fully common approach is yet to be achieved. 

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 therefore needed.  

On  conflict  prevention,  during  its  current  mandate  as  elected  member  of  the  UN  Security 
Council,  Albania  has  vocally  addressed  the  importance  of  promoting  peace  and  security 
through  resolution  of  current  crises,  peaceful  conflict  settlement  and  mediation.  Albania 
continued supporting EU measures and documents on conflict prevention.   

Regarding non-proliferation, Albania continued to implement its national strategy on small 
arms and light weapons (SALW), adopted in February 2019, and the related action plan for 
2022-2024.  Albania  also  remained  actively  engaged  in  implementing  the  2018  regional 
133 

 
 
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.  Since  May  2022,  Albania  has  been  serving  as  a 
member  of  the  Executive  Council  of  the  Organisation  for  the  Prohibition  of  Chemical 
Weapons  (OPCW)  for  the  2022-2024  period,  actively  contributing  to  the  effective 
implementation of the Chemical Weapons Convention.  

Albania  continued  active  cooperation  with  international  organisations.  In  October  2023, 
Albania was elected to the UN Human Rights Council for the 2024-2026 term.   

In terms of security measures, Albania has progressed on the path to full implementation of 
its security of information agreement with the EU.  

Regarding civil and military crisis management, Albania continued to participate in EU crisis 
management  missions  and  operations  under  the  common  security  and  defence  policy, 
notably EUFOR Althea in Bosnia and Herzegovina.  

Albania  takes  part  in  the  European  Peace  Facility  Balkan  Medical  Task  Force  assistance 
measure. 

Regarding hybrid threats, Albania completed the EU’s hybrid risk survey with the objective 
of  identifying  systemic  vulnerabilities  and  continues  to  address  the  recommendations.  A 
follow-up  exercise  to  establish  the  state  of  implementation  of  the  recommendations,  which 
date back to 2020, was held in Tirana in September 2022 by the EEAS and the Commission. 

In response to the large-scale cyber-attacks that were detected in July and September 2022, 
the  government  has  begun  to  significantly  strengthen  its  cybersecurity  architecture  –  see 
under Chapter 10 – Digital transformation and media.  

Albania needs to  continue efforts  on  closing space for foreign  interference and information 
manipulation, including disinformation and take actions towards building societal resilience 
against it and other forms of hybrid threats.   

134 

 
 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND ALBANIA  

Albania  is  a  candidate  country  since  2014.  The  first  Intergovernmental  Conference on 
accession negotiations took place on 19 July 2022, following the approval of the negotiating 
framework  by  the  Council.  On  the  same  day  the  Commission  launched  the  analytical 
examination of the acquis - the “screening” process, which progresses smoothly. All sessions 
on  Cluster  1  (Fundamentals),  Cluster  2  (Internal  market),  Cluster  3  (Competitiveness  and 
inclusive  growth)  and  Cluster  4  (Green  Agenda  and  sustainable  connectivity)  have  taken 
place. Explanatory sessions on Cluster 5 (Resources, agriculture and cohesion) and Cluster 6 
(External  relations)  have  been  completed  and  bilateral  sessions  on  these  are  ongoing. The 
remaining screening meetings are scheduled until November 2023. 

Albania has been participating in the Stabilisation and Association process since 1999. 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 since 1 
April  2019,  Albania  is  fully  associated  with  the  EU.  In  the  reporting  period,  Albania 
continued  to  implement,  overall,  its  commitments  under  the  SAA.  Regular  political  and 
economic  dialogue  has  continued  through  the  relevant  joint  bodies  under  the  SAA.  The 
Stabilisation  and  Association  Council  took  place  on  16  March  2023,  for  the  first  time  in 
Tirana.  Discussions  focused  on  progress  in  SAA  implementation  as  well  as  of  the  most 
important reforms developments. The Stabilisation and Association Committee did not meet 
during the reporting period. The Stabilisation and Association Parliamentary Committee met 
on 1 December 2022 and 19-20 July 2023. 

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’.  The  EU  is  the  main  trading  partner  of 
Albania, followed by CEFTA countries. Trade integration with the EU is high.  In 2022 the 
EU remained the main trading partner of Albania, accounting for 59% of Albania’s total trade 
in goods (73% of total exports and 52% of total imports. EU-Albania trade rose by 19% in 
2022,  demonstrating  continued  recovery  from  the  impacts  of  the  COVID-19  pandemic. 
Albania’s total trade in 2022 was worth EUR 12.1 billion. The country’s trade deficit with the 
EU  amounted  to  EUR  1.1  billion  in  2022.  In  comparison,  Albania’s  trade  with  CEFTA 
represented around 10.7% of total trade as compared to 10.1% in 2021, which demonstrates 
ongoing regional integration. 

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 December  2022 fifth  report under the visa suspension 
mechanism14 concluded that Albania continues to meet the visa liberalisation requirements. 

Albania  has  continued  to  fully  align  with  all EU  common  foreign  and  security  policy 
positions  and  declarations  during  the  reporting  period.  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)15,  a  second 
financing  Decision  of  EUR  80.6  million  for  the  Annual  Action  Plan  2022  supports  the 
process of re-evaluatuon of judges, democracy, law enforcement, EU integration, water and 
youth. At the EU-WB Summit in Tirana in December 2022, the Commission put forward an 

14 COM(2022) 715 final 
15 Official Journal L 330, 20.9.2021 

135 

 
 
 
Energy Support Package of EUR 1 billion for the Western Balkans to address immediate, 
short-term,  and  medium-term  needs  in  the  region  in  the  context  of  the  energy  crisis  and  of 
Russian war of aggression against Ukraine. Following this announcement, a EUR 80 million 
budget  support programme for Albania was adopted at  the end of 2022 (annual  action plan 
2023)  to  cushion  the  energy  price  increase  to  SMEs  and  vulnerable  households  and  to 
accelerate  energy  diversification.  These  programmes  are  complemented  by  a  significant 
package of multi-country programmes and the rural development programme IPARD III with 
EUR 112 million, which 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 
transnational  cooperation 
programmes and Union programmes. 

in  cross-border  cooperation  programmes, 

On-going programmes under IPA II (2014-2020) 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 for instance 
in  the  process  of  reevaluation  of  judges  and  prosecutors  (“vetting”),  in  supporting  the 
specialised  structures  against  corruption  and  organised  crime,  as  well  as  in  fighting  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. 

Albania is the only country from the region that has signed cooperation agreements with all 
justice  and  home  affairs  agencies  of  the  EU.  Albania  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).  To  improve  the  accountability  of  public  administration  in  the  country, 
Albania  is  participating  as  an  observer  in  a  pilot  project  under  the  Technical  Support 
Instrument.  

The  Western  Balkans  Investment  Framework  (WBIF)  has  supported  Albania  in  the 
amount of EUR 217.8 million provided as IPA III grants for flagship projects in the area of 
clean energy, environment and climate, digital future, and sustainable transport. 

The EU provides support via IPA and the Foreign Policy Instrument to  strengthen Western 
Balkans  partners’  resilience  to  face  hybrid  threats  including  cyber  and  foreign  information 
manipulation and interference. 

136 

 
 
STATISTICAL DATA (as of 31/08/2023) 
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 (%) 

137 

Note 

Note 

2010 
2 919 s 
28 748 w 

2010 
1 239 645 
8 997 
3 090 
7 287 
29.3 
3.7 
: 
: 

2017 
2 877 s 
28 748 w 

2017 
1 550 646 
11 559 
4 020 
8 771 
29.9 
3.8 
: 
: 

2018 
2 870 s 
28 748 w 

2018 
1 636 731 
12 828 
4 480 
9 153 
30.2 
4.0 
: 
: 

2019 
2 862 s 
28 748 w 

2019 
1 691 903 
13 754 
4 820 
9 506 
30.4 
2.1 
: 
: 

2020 
2 846 s 
28 748 w 

2020 
1 647 431 
13 310 
4 690 
9 213 
30.7 
-  3.5 p 
: 
: 

2021 
2 830 s 
28 791 e 

2021 
1 856 172 p 
15 157 p 
5 390 p 
10 296 p 
31.7 
: 
: 
: 

: 
: 
: 

20.7 
13.8 
14.9 
50.8 s 
89.3 
28.4 
1.9 
28.0 
48.6 
: 

: 
: 
: 

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 
: 

: 
: 
: 

21.9 
12.8 
10.2 
55.2 s 
92.5 
22.6 
0.3 
22.7 
37.2 
: 

Note 
1) 
2) 
3) 

2010 
57.0 w 
72 599 w 
16.0 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 

2020 
89.5 w 
92 008 w 
10.4 w 

: 
: 
: 

21.1 p 
12.9 p 
10.9 p 
55.2 ps 
88.6 p 
24.4 p 
0.5 p 
31.3 p 
44.7 p 
: 

2021 
113.0 w 
: 
12.6 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) 

2) 
2) 

Note 

Note 

Note 
4) 
4) 
4) 
4) 

Note 

138 

83.5 sw 

80.5 sw 

80.2 sw 

81.2 sw 

81.3 sw 

1 560 sw 
2 462 w 

2 520 sw 
3 687 w 

2 881 sw 
4 187 w 

3 263 sw 
4 511 w 

3 103 sw 
4 184 w 

: 

: 
: 

2021 
2.3 d 
: 

2021 
- 1 166.2 
- 3 828.9 
1 795.8 
-  211.0 
1 077.9 
48.6 
-  8.1 
21.7 
988.8 s 
53.3 
27.3 
1 043.3 w 
679.8 
-  49.9 w 
5.0 ps 

2021 
-  6.8 fw 
76.7 fw 
28.1 fw 
35.0 fw 

2019 
1.7 d 
: 

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 
-  48.4 w 
5.1 s 

2019 
-  1.9 w 
63.3 w 
27.2 w 
29.1 w 

2020 
2.2 d 
: 

2020 
- 1 153.3 
- 2 982.1 
1 056.2 
-  227.6 
997.1 
58.2 
-  7.8 
5.3 
893.6 s 
76.4 
28.5 
970.2 w 
535.3 
-  53.9 w 
5.1 s 

2020 
-  6.8 w 
72.7 w 
26.3 w 
33.2 w 

2019 
59.9 s 
191.3 w 
4 259.5 w 
6 160.4 w 
10 717.6 w 

2020 
64.2 s 
283.1 w 
5 149.2 w 
6 967.3 w 
11 771.8 w 

2021 
64.4 ps 
205.3 w 
5 727.5 w 
7 507.8 w 
12 929.3 w 

2010 
: 
: 

2010 
: 
: 
: 
: 
: 
: 
: 
: 
788.5 w 
4.8 w 
: 
793.3 w 
: 
: 
7.7 sw 

2010 
-  3.1 w 
54.0 w 
26.2 w 
29.3 w 

2010 
45.6 sw 
162.6 w 
1 998.9 w 
4 387.2 w 
7 114.3 w 

2017 
3.2 d 
: 

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 d 
: 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

3 481.5 w 
: 
: 
: 
5.37 w 
11.29 w 
6.40 w 
137.790 
: 
: 

8 690.6 
5.7 
: 
59 
1.34 w 
5.98 w 
0.75 w 
134.150 
: 
: 

9 462.0 
3.2 
: 
54 
1.24 w 
5.66 w 
0.73 w 
127.590 
: 
: 

10 095.6 
2.3 
: 
54 
1.10 w 
6.25 w 
0.49 w 
123.010 
: 
: 

10 696.1 
7.5 
: 
58 
0.73 w 
6.05 w 
0.40 w 
123.770 
: 
: 

12 220.4 
11.6 
: 
55 p 
0.65 w 
5.91 w 
0.48 w 
122.460 
: 
: 

1 904.8 w 

2 995.9 w 

3 399.0 w 

3 359.6 w 

3 942.4 w 

4 972.2 w 

2010 
3 328 
1 169 
- 2 160 
102.1 sw 
70.2 s 
65.5 s 

2010 
4.8 

9.6 
: 
: 

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 

2021 
6 545 
3 012 
- 3 533 
104.5 sw 
72.2 s 
54.4 s 

2021 
-  1.2 

8.4 
73.6 
77.7 

Note 

2010 
69.7 ew 

2017 
73.9 w 

2018 
74.8 ew 

2019 
75.9 ew 

2020 
75.3 ew 

2021 
75.1 ew 

60.3 ew 

63.9 w 

65.6 ew 

67.1 ew 

66.3 ew 

66.3 ew 

71.5 ew 
49.8 ew 
48.3 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 

74.6 ew 
58.3 ew 
60.0 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 

33.8 ew 
13.8 ew 

139 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (%) 

140 

: 
: 
: 

: 

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 

8.1 ew 
44.3 ew 
16.3 ew 

83.6 ew 

84.1 ew 

84.7 ew 

84.5 ew 

83.7 ew 

14.0 ew 
12.6 ew 
15.9 ew 
30.5 ew 
10.6 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 

11.6 ew 
11.4 ew 
11.8 ew 
27.1 ew 
7.3 ew 

10.9 ew 

11.2 ew 

9.2 ew 

8.6 ew 

9.6 ew 

9.8 ew 

: 

11.7 ew 

11.5 ew 

9.7 ew 

10.0 ew 

8.4 ew 

Note 
8) 9) 
9) 

2010 
44 375 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 

2021 
57 190 ew 
110 ew 

: 
: 
31.9 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 

: 
: 
17.4 w 

Note 

10) 

10) 
10) 

Note 

Note 

2010 
101.0 sw 
1 584.4 w 

2017 
145.0 
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 

2021 
210.0 
1 239.1 w 

: 
: 

2010 
13.9 sw 

: 

2010 
3.4 sw 
: 

: 
11 w 

2017 
11.6 sw 

z 

2017 
3.1 sw 
: 

: 
13 w 

2018 
11.6 sw 

z 

2018 
3.2 psw 
: 

62.7 w 
15 w 

2019 
5.9 sw 

z 

2019 
3.3 sw 
: 

70.4 w 
17 w 

2020 
7.8 sw 

22 

2020 
3.3 psw 
: 

73.1 w 
20 w 

2021 
7.8 s 

25 

2021 
3.1 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/or the statistical authorities in Albania 

Note 

Note 

Note 

: 

: 

2010 
: 
229.1 

74.6 
: 

2010 
1 620 
744 
2 
12 
622 s 
2 152 
7 568 

2010 
: 
1 200.9 
: 
: 
: 
: 
: 
: 
: 

: 

: 

2017 
: 
219.2 

91.0 
: 

2017 
1 642 
959 
76 
37 
920 s 
2 375 
4 526 

: 

: 

: 

: 

83.6 

85.5 

87.2 

90.9 

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 

2021 
: 
: 

94.4 
: 

2021 
1 823 
712 
131 
44 
553 s 
2 298 
8 963 

2017 
: 
1 174.1 
475.2 
180.1 
2 858.6 s 
: 
: 
0.0 
: 

2018 
: 
1 174.0 
467.3 
184.1 
2 781.0 s 
: 
678.2 
27.5 
: 

2019 
: 
1 174.1 
415.6 
183.9 
2 621.2 s 
: 
666.1 
30.7 
: 

2020 
: 
1 165.7 
362.6 
158.4 
2 332.2 s 
: 
684.0 
27.0 
: 

2021 
: 
1 165.6 
336.8 
159.2 
2 255.8 s 
: 
691.4 
24.4 
: 

: = not available 
  d =  definition differs 
  e = estimated value 

f = forecast 
  p = provisional 

s = Eurostat estimate 

  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 

141 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator 

  Footnotes: 
1)  Activity  B_D 
2)  Based on NACE Rev. 2. Coverage is Divisions 05 to 82 and 95. 
3)  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. 

4)  Forecasts of the Ministry of Finance and Economy. 
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. 

142