COMMISSION STAFF WORKING DOCUMENT Albania 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy
Date: 2024-10-30
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, 30.10.2024  SWD(2024) 690 final  COMMISSION STAFF WORKING DOCUMENT Albania 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy                           {COM(2024) 690 final} - {SWD(2024) 691 final} - {SWD(2024) 692 final} - {SWD(2024) 693 final} - {SWD(2024) 694 final} - {SWD(2024) 695 final} - {SWD(2024) 696 final} - {SWD(2024) 697 final} - {SWD(2024) 698 final} - {SWD(2024) 699 final}  
 
 
Contents 

1.1. Context ............................................................................................................................................3 
1.2. Main findings of the report .............................................................................................................3 
1.3. State of play of the accession negotiations .................................................................................... 20 

2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ........................................... 22 

2.2.1 
2.2.2 

2.1. Functioning of democratic institutions and public administration reform .................................... 22 
2.1.1 Democracy ...................................................................................................................... 22 
2.1.2. Public administration reform .......................................................................................... 25 
2.2.  Rule of law and fundamental rights ............................................................................................. 28 
Chapter 23: Judiciary and fundamental rights ......................................................... 28 
Chapter 24: Justice, freedom and security ............................................................... 42 
2.3. Economic criteria .......................................................................................................................... 49 
2.3.1. The existence of a functioning market economy ............................................................ 50 
2.3.2. The capacity to cope with competitive pressure and market forces within the EU. ....... 55 
2.4. Public procurement, statistics, financial control ........................................................................... 56 
Chapter 5: Public procurement ................................................................................................. 56 
Chapter 18: Statistics ................................................................................................................ 58 
Chapter 32: Financial control ................................................................................................... 59 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION ....................................... 60 

4. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP....................................................... 62 

Cluster 2: Internal market .................................................................................................................... 62 
Chapter 1: Free movement of goods ........................................................................................ 62 
Chapter 2: Freedom of movement of workers .......................................................................... 63 
Chapter 3: Right of establishment and freedom to provide services ........................................ 64 
Chapter 4: Free movement of capital ....................................................................................... 65 
Chapter 6: Company law .......................................................................................................... 66 
Chapter 7: Intellectual property law ......................................................................................... 66 
Chapter 8: Competition policy ................................................................................................. 67 
Chapter 9: Financial services ................................................................................................... 68 
Chapter 28: Consumer and health protection ........................................................................... 69 
Cluster 3: Competitiveness and inclusive growth ................................................................................ 71 
Chapter 10: Digital transformation and media ......................................................................... 71 
Chapter 16: Taxation ................................................................................................................ 72 
Chapter 17: Economic and monetary policy ............................................................................ 73 
Chapter 19: Social policy and employment .............................................................................. 74 
Chapter 20: Enterprise and industrial policy ............................................................................ 76 
Chapter 25: Science and research ............................................................................................. 77 
Chapter 26: Education and culture ........................................................................................... 78 
Chapter 29: Customs union ...................................................................................................... 80 
Cluster 4: The green agenda and sustainable connectivity ................................................................... 81 
Chapter 14: Transport policy .................................................................................................... 81 
Chapter 15: Energy .................................................................................................................. 82 
Chapter 21: Trans-European networks ..................................................................................... 84 

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Chapter 27: Environment and climate change .......................................................................... 85 
Cluster 5: Resources, agriculture and cohesion.................................................................................... 87 
Chapter 11: Agriculture and rural development ....................................................................... 87 
Chapter 12: Food safety, veterinary and phytosanitary policy ................................................. 88 
Chapter 13: Fisheries and aquaculture ..................................................................................... 89 
Chapter 22: Regional policy and coordination of structural instruments ................................. 90 
Chapter 33: Financial and budgetary provisions ...................................................................... 92 
Cluster 6: External relations ................................................................................................................. 92 
Chapter 30: External relations .................................................................................................. 92 
Chapter 31: Foreign, security and defence policy .................................................................... 93 
Annex I – Relations between the EU and Albania ............................................................................... 95 

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1. INTRODUCTION1 

1.1. CONTEXT 

Following  the  first  Intergovernmental  Conference  on  accession  negotiations  on  19 July  2022,  the 
screening sessions for all six clusters were completed on 24 November 2023. In the context of accession 
negotiations, Albania submitted the three roadmaps that will guide its reforms efforts. Albania continued 
to implement the Stabilisation and Association Agreement, and the joint bodies under the agreement met. 
An  intergovernmental  conference  was  convened  in  October  2024  to  open  accession  negotiations  on 
cluster 1 – fundamentals.  

The  firm  political  commitment  of  the  Albanian  authorities  to  the  strategic  goal  of  European  Union 
integration has been consistently stated as the country’s key priority, and a high level of ambition to move 
forward in the accession negotiations has been generally maintained. The ongoing accession negotiation 
process needs to lead to an acceleration of EU-related reforms. 

Albania  maintained  its  record  of  full  alignment  with  the  EU’s  common  foreign  and  security  policy. 
During its term as a non-permanent member of the UN Security Council between 2022 and 2023, Albania 
actively  engaged  as  a  co-penholder  of  resolutions  condemning  Russia’s  war  of  aggression  against 
Ukraine, aligning with the EU position, including on restrictive measures and sanctions against Russia. 
Albania’s stance sends a strong signal of its strategic choice of EU accession and of its role as a reliable 
partner. 

Albania  has  actively  engaged  in  the  implementation  of  the  new  Growth  Plan  for  the  Western  Balkans 
across the four  pillars  of  gradual integration  with  the  EU  single  market, regional  economic integration, 
fundamental reforms and increased financial support. The Reform Agenda covers reforms in the areas of: 
(i) business environment; (ii) human capital; (iii) digitalisation; (iv) energy and green transition; and (v) 
fundamental rights and the rule of law. The Commission’s 2024 rule of law report2 covered Albania for 
the first time.  

1.2. MAIN FINDINGS OF THE REPORT3 

 CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

Democracy  

The  electoral  framework  is  conducive  for  organising  democratic  elections.  Parliament  adopted 
amendments to the Electoral Code. However,  there has been limited progress in addressing outstanding 
recommendations  from  the  Organization  for  Security  and  Co-operation  in  Europe  (OSCE)/Office  for 

1 The 2024 report is presented in a renewed format and structure. Main findings of the report, together with the recommendations 
(previously  grey  assessment  boxes)  are  brought  together  at  the  beginning  of  the  report.  Furthermore,  under  the  fundamentals 
cluster, for better readability and comparability across all reports, certain data is provided (also) in the form of graphs. 
2 COM(2024)800 final 
3 This report covers the period from 15 June 2023 to 1 September 2024. It is based on input from a variety of sources, including 
contributions from the government of Albania, 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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Democratic  Institutions  and  Human  Rights  (ODIHR)  and  the  Venice  Commission,  as  the  mandate  of 
Parliament’s ad-hoc committee on electoral reform expired without any results.  

Parliament  can  exercise  its  powers  in  a  mostly  satisfactory  way.  However,  its  oversight  over  the 
executive  remains  limited.  Parliament’s  activity  was  affected  by  continuous  clashes  between  the  ruling 
majority and a part of the opposition between  October 2023 and March 2024. These reflected a lack of 
constructive  and inclusive political  dialogue  and  resulted  in  opposition  MPs  causing  disruptions  due  to 
alleged restrictions on their rights. Despite the welcome return to the normal functioning of Parliament in 
March  2024,  political  polarisation  remains  high.  This  continues  to  negatively  impact  Parliament’s  key 
legislative and oversight roles and extends delays in appointing individuals to key positions.  

Albania’s bodies in charge of the integration process are in place. These EU integration structures were 
further consolidated and successfully completed the screening process in November 2023. EU integration 
expertise, planning and interinstitutional mechanisms will need to be strengthened to be able to cope with 
the  EU  accession  process.  The  government  needs  to  intensify  its  efforts  to  engage  in  public 
communication on EU integration. 

The  government  continued  to  show  its  commitment  to  EU  integration.  Three  waves  of  governmental 
changes occurred during the reporting period. A new major reform process on ‘good governance, rule of 
law  and  anti-corruption  for  Albania  2030’  was  launched  by  Parliament,  at  the  behest  of  the  Prime 
Minister, yet without cross-party support. The government continued to adopt policies and laws raising 
concerns regarding the respect of EU standards. The division of responsibilities between local and central 
government  remains  a  concern.  Efforts  are  still  needed  to  improve  local  government  units’  financial 
resources, administrative capacity and fiscal autonomy. 

Civil society organisations (CSOs) in Albania operate in a challenging environment, including in relation 
to registration requirements and limited public funding for CSOs.  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.  In  addition,  the  conditions 
necessary for effective VAT exemption need to be put in place without further delay. 

Public administration reform  

Albania  remains  moderately  prepared  in  the  area  of  public  administration  reform  (PAR).  It  made 
limited progress in delivering on last year’s recommendations. A new position of Minister of State for 
Public Administration and Anti-Corruption was created in January 2024, which provides a clear political 
leadership  for  the  PAR  agenda  and  should  improve  the  overall  coordination  of  the  reform  efforts.  The 
new Public Financial Management (PFM) Strategy for the period 2023-2030 was adopted in June 2024, 
and  a  new  National  Anti-Fraud  strategy  will  be  adopted  by  end  2024.  In  order  to  step  up  the  efforts, 
further  anticorruption  reforms  will  feature  in  the  Reform  Agenda.The  development  of  the  public 
administration reform (PAR) and anti-corruption strategies continued, but adoption is still pending.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should, in particular: 

→  adopt and start implementing the new public administration and anti-corruption strategies, and review 
the effectiveness of the current monitoring structures; start the implementation of the new 2023-2030 
PFM  strategy;  significantly  limit  the  use  of  the  normative  acts  for  budget  revisions;  and  pursue  a 
return to regular budget revision processes; 

→  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,  and  begin  automating  the 
payroll system again; 

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

subordinated bodies and clarified lines of accountability. 

Chapter 23: Judiciary and fundamental rights  

Albania  is  moderately  prepared  in  the  area  of  judiciary  and  fundamental  rights  and  has  made  some 
progress during the reporting period. 

Functioning of the judiciary  

Albania  is  moderately  prepared  and  has  made  some  progress  on  the  functioning  of  the  judiciary. 
Albania  continued  implementing  the  justice  reform  and  the  vetting  process,  which  led  to  significant 
improvements in the functioning of the judiciary that must be maintained. The end of the vetting process 
in  first  instance  is  imminent,  which  is  a  major  milestone  with  11  remaining  cases  out  of  805  as  of  3 
October 2024. Concerns remain about attempted political interference and pressure on the judicial system 
and  shortcomings  in  the  merit-based  appointments  of  non-magistrate  members  of  the  High  Judicial 
Council (HJC) and the High Prosecutorial Council (HPC) and their integrity. The new judicial map was 
implemented, but  there  are  still  challenges  with the  quality  and  efficiency  of  justice.  Some  preparatory 
acts  were  adopted  on  the  roll-out  of  an  integrated  case  management  system,  but  the  necessary  budget 
allocations are lacking, especially for the court component. 

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  further  strengthen  accountability  by:  (i)  speeding  up  vetting  procedures  in  appeal;  (ii)  speeding  up 
evaluations of magistrates and implementing conflict-of-interest regulations by the HJC and the HPC; 
(iii) aligning provisions applicable to the selection of non-magistrate members of HJC and HPC with 
those  applicable  to  magistrates  as  regards  asset  declaration  and  background  checks,  ensuring  the 
highest integrity and merit principles, and a high degree of consistency with the ranking of the ad-hoc 
pre-selection  committee  (iv)  filling  the  magistrate-inspector  vacancies  at  the  High  Justice 
Inspectorate; 

→  improve the quality of justice by making progress in filling vacancies for court chairs, magistrates and 
legal advisers at all levels of the judiciary and quality improvements at the School of Magistrates, in 
line  with  European  standards,  including  the  comprehensively  revising  the  School  of  Magistrates’ 
entrance exam, increasing the relevance of training and ensuring quality and integrity of its staff; 

→  improve judicial efficiency by: (i) ensuring the necessary budget for the Integrated Case Management 
System and rolling it out in a timely manner; and (ii) enacting the HJC roadmap to increase efficiency 
and reduce the backlog in the judicial system. 

Fight against corruption  

Albania  is  between  having  some level  of  preparation  and  a  moderate  level of  preparation  and  has 
shown  some  progress.  The  continued  implementation  of  vetting  has  had  a  positive  impact  on  fight 
against corruption in the judiciary. The end of vetting of all judges and prosecutors  is imminent at first 
instance  with  794  cases  closed  out  of  805  (98%  of  the  total).  Another  direct  outcome  of  vetting  was 
registered in September 2024, as the IQC  referred 19 vetting cases with prima facie criminal elements to 
prosecution  for  further  investigations,  thus  following  up on  a  key  recommendation  from  the  EU.  The 
Specialised Structure for Anti-Corruption and Organised Crime (SPAK)  has continued to produce good 
results  by  further  advancing  in  the  prosecution  and  investigation  of  complex  anti-corruption  cases, 
including those involving high-level politicians and officials, as well as cases involving the protection of 
EU financial interests. SPAK’s capacity in financial investigations has increased and the systematic use of 
financial  investigations  and  asset  confiscations  has  improved.  Overall,  corruption  remains  a  serious 
concern and preventive efforts have had a limited impact. The adoption of a broad criminal amnesty law 

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led  to  40  individuals  convicted  by  SPAK  courts  and  being  fully  pardoned  and  65  others  having  their 
sentence reduced, which raises concerns. Targeted risk assessments and dedicated measures are needed to 
address  corruption  in  the  most  vulnerable  sectors,  including  police,  customs,  land  and  property 
management, state cadastre and public procurement. 

The Commission’s recommendations from last year were partially implemented and remain mostly 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, including the final confiscation of criminal assets resulting from corruption-
related  offences,  and  increase  proactive  referrals  of  relevant  state  institutions  and  law  enforcement 
agencies to SPAK; 

→  adopt  and  effectively  implement  anti-corruption  strategy  and  the  accompanying  action  plans, 
including  comprehensive  risk  assessments  for  vulnerable  sectors,  effectively  implement  integrity 
action plans in those state authorities most prone to corruption, such as the State Cadastre Agency and 
fully  address  the  recommendations  of  the  Council  of  Europe’s  Group  of  States  against  Corruption 
(GRECO); 

→  make  asset  declaration  checks  more  efficient  by  reviewing  the  administrative  boundaries  of  the 

HIDAACI’s mandate and ensuring all asset declarations are published online. 

Fundamental rights  

Albania’s  legal  framework  sets  out  a  generally  good  basis  for  the  protection  of  fundamental  rights. 
Progress during the reporting period included the adoption of a new strategy for the protection of crime 
victims,  as  well  as  the  preliminary  results  of  the  national  population  and  housing  census  published  in 
June.  Implementation  efforts  need  to  intensify  overall,  particularly  in  the  areas  of  violence  against 
women, protection of property rights and rights of persons belonging to minorities.  

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Albania should in particular: 

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

→  safeguard  the  right  to  property,  in  particular,  by  making  decisive  progress  on  first  registration  and 
compensation, improving the transparency of the state cadastre and the quality of the property register 
cadastral data, 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 the protection of fundamental rights, in particular, by fully aligning the Law on personal data 
protection  with  the  EU  acquis  enhancing  institutional  capacities  on  human  rights  (monitoring,  data 
collection),  and  by  effectively  implementing  the  National  Agenda  on  Child  Rights,  including  by 
allocating  sufficient  budget  to  strengthen  the  capacity  of  the  Agency  on  Child  Rights  and  to  help 
children  facing  exclusion  and  vulnerabilities,  including  those  living  in  poverty,  children  with 
disabilities, children belonging to minorities and other children at risk. 

Freedom of expression  

Albania is between having some level of preparation and a moderate level of preparation in the area 
of  freedom  of  expression  and  made  no  progress  during  the  reporting  period.  Media  independence  and 
pluralism continued to be affected by the high market concentration, the overlap of business and political 
interests,  the  lack  of  transparency  of  financing  sources,  the  high  concentration  of  media  ownership, 
intimidation and precarious working conditions for journalists. 

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The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Albania should in particular: 

→  adopt amendments of legal framework to: (i) increase the transparency of media ownership,  (ii) fully 
decriminalise defamation and align civil aspects of defamation with European standards, based on a 
structured and inclusive dialogue with media actors; 

→  ensure  zero  tolerance  for  intimidation  and  effective  judicial  follow-up  of  cases  attacks  against 
journalists;  ensure  increased  capacities  of  law  enforcement  bodies  to  handle  cases  of  violence, 
including  on  the  margins  of  protests,  and  other  criminal  cases  involving  journalists,  notably  by 
ensuring high human rights compliance in handling incidents involving journalists, through binding 
instructions, data collection and capacity building measures; 

→  improve  Albanian  journalists’  working  conditions,  in  particular  by  strengthening  the  protection  of 

journalists’ employment and social rights and ensuring the labour code is consistently applied. 

Chapter 24: Justice, freedom and security  

Albania  is  moderately  prepared  in  aligning  with  the  EU  acquis  in  the  area  of  justice,  freedom  and 
security. Some progress was made in the fight against organised crime by increasing the capacity of the 
Specialised  Anti-corruption  and  Organised  Crime  Structures  (SPAK),  improving  the  use  of  financial 
investigations  and  amending  the  legislation  on  psychoactive  substances.  Further  action  is  needed  to 
strengthen  law  enforcement  capacity  and  improve  the  efficiency  of  investigations.  Some  progress  was 
made in the area of migration with the adoption of the new migration strategy aligned with EU priorities. 
Further efforts are needed to improve access to asylum and align the country’s visa policy with the EU’s. 

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Albania should in particular: 

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

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

→  adopt the legal framework to set up a national drugs observatory and a national early warning system 

on the detection of new psychoactive substances; 

→  improve the  asylum  referral  system  and  access  to  asylum  procedures,  improve returns  procedures, 
continue to address the issue of unfounded asylum applications in Schengen and associated countries 
and further align the country’s visa policy with the EU’s. 

Fight against organised crime 

Albania is between having some and a moderate level of preparation in aligning with the EU acquis in 
this  area.  Some  progress  was  made  in  meeting  last  year’s  recommendations  by  increasing  SPAK’s 
capacity  in  financial  investigations  (with improved  access to  databases),  strengthening the  fight against 
money  laundering  and  seizing  assets  linked  to  organised  crime.  Albania  needs  to  continue  working  to 
ensure the independence of its law enforcement agencies. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Albania should in particular: 

→  further strengthen the fight against organised crime, including through continued cooperation with EU 
Member  States  and  EU  agencies  (including  Europol,  in  the  framework  of  the  European 
Multidisciplinary Platform against Criminal Threats (EMPACT), and Eurojust), increase capacity to 
counter cybercrime and money laundering, and prevent and combat trafficking in human beings; 

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→  set up an asset recovery office in charge of the identification and tracing of criminal assets in order to 
enhance  the  effectiveness  of  the  national  asset  recovery  system  and  facilitate  the  operational 
cooperation  with  Asset  recovery  offices  in  EU  Member  States  without  delay,  in  line  with  the  EU 
acquis; 

→  improve criminal analysis systems and methodologies to resolve complex criminal cases. 

ECONOMIC CRITERIA 

The existence of a functioning market economy 

Albania has a good level of preparation  in developing a functioning market economy and made some 
progress in this area. Economic growth has been robust, helped by strong tourism and rising investments. 
Inflation  continued  to  decline.  Employment  and  activity  rates  increased,  but  unemployment  remained 
relatively  high,  particularly  among  young  people.  Fiscal  performance  improved  markedly  with  lower 
deficit and debt ratios. The financial sector remained stable, bank profitability increased while and credit 
growth expanded. However, financial intermediation remains low. A large informal economy impedes the 
business environment and competition.  

The Commission’s recommendations from last year were only partially implemented and remain largely 
valid. In the coming year, Albania should in particular: 

→  revise  the  draft  Medium-Term  Revenue  Strategy,  including  measures  to  increase  tax  revenue  as  a 

share of GDP, adopt it, and ensure its implementation;  

→  improve  fiscal  risk  analysis,  including  by  building  capacity  in  the  related  new  Ministry  of  Finance 

department responsible for it, and publishing a comprehensive Fiscal Risk Statement;  

→  increase the transparency and accountability of state-owned enterprises, including by publishing their 

annual financial performance reports;  

→  facilitate the implementation of the national single project pipeline (NSPP), including by ranking the 
projects on the list; and advance the integration of public-private partnerships (PPPs) into the NSPP. 

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

Albania has some level of preparation to cope with competitive pressure and market forces within the 
EU  and  made  some  progress  in  this  area.  Transport  infrastructure  improved,  but  infrastructure  gaps 
remain,  and  digitalisation  and  education  need  further  improvements.  Exports  of  services  (tourism) 
increased, but exports of goods remain well below their potential.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  continue  to  improve  and  better  promoting  the  vocational  education  and  training  (VET)  system  in 
order to increase the graduates from VET schools and ensure that labour skills align with job market 
demands; 

→  improve the quality and inclusiveness of the education system and advance its digital transformation;  

→  strengthen digital infrastructure, including building cyber-resilience. 

Chapter 5: Public procurement 

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Albania is moderately prepared in public procurement. Limited progress was made in the alignment of 
the  legal  framework  for  procurement,  and  there  were  concerns  over  newly  introduced  temporary 
exemption provisions in the public procurement law.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should, in particular: 

→  continue efforts to improve competitive procurement procedures;  

→  further  align  the  legislative  framework  with  the  EU  acquis  in  the  area  of  concessions  and  public-

private partnerships; 

→  ensure  compliance  with  the  EU  acquis  and  the  Stabilisation  and  Association  Agreement  (SAA) 
regarding intergovernmental agreements concluded with third countries in the area of procurement. 

Chapter 18: Statistics 

Albania is moderately prepared in the area of statistics.  Some progress was made by improving data 
transmission to Eurostat.  

The Commission’s recommendation from last year were partially implemented and remain largely valid. 
In the coming year, Albania should in particular: 

→  publish  detailed  data  and  a  thematic  analysis  of  the  population  and  housing  census  following  the 
initial  data  release  in  June  2024  and  conduct  the  census  of  agriculture  holdings  in  line  with  the 
relevant EU acquis and international standards; 

→  reduce the staff turnover of the Institute for Statistics (INSTAT) and enhance improve cybersecurity;  

→  increase  production  and  transmission  of  timely  and  high-quality  data  for  dissemination  by  Eurostat 

and make government finance statistics (GFS) data publicly available. 

Chapter 32: Financial control  

Albania is moderately prepared in the area of financial control and partially aligned with the EU acquis. 
Limited progress was made during the reporting period. Public internal financial control (PIFC) needs to 
be further strengthened. Further efforts are required to ensure that the recommendations of the Supreme 
Audit Institution (ALSAI) are implemented and that its reporting is meaningfully assessed and used by 
Parliament.   

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  focus  on  further 

implementation  of  financial  delegation  and  delegation  of  management 

responsibilities with a view to improve managerial accountability; 

→  monitor  and  follow-up  the  implementation  of  recommendations  made  in  the  annual  public  internal 
financial  control  (PIFC)  report  across  budget  institutions;  increase  parliamentary  scrutiny  of 
government bodies in their implementation of external audit recommendations, and improve reviews 
of and discussions on external audit reports;  

→  strengthen controls and consolidate capacities to protect EU financial interests, complete the delayed 

anti-fraud strategy and ensure the appropriate application of irregularities reporting.  

CLUSTER 2: INTERNAL MARKET 

9 

 
 
 
Chapter 1: Free movement of goods 

Albania is between having some level of preparation and a moderate level of preparation in the area 
of  free  movement  of  goods.  There  was  some  progress  on  alignment  with  the  EU  acquis  on  medical 
devices.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  complete the alignment of its legislation with the EU acquis relevant on the quality infrastructure, i.e. 

on accreditation, conformity assessment and market surveillance; 

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

→  finalise and adopt an action plan to comply with Articles 34-36 of the Treaty on the Functioning of 
the European Union (TFEU), fully covering the non-harmonised area, with a timeframe for screening 
all  relevant  legislation  and  practices  and  for  introducing  mutual  recognition  clauses  or  repealing 
and/or amending legislation and practices as necessary. 

Chapter 2: Freedom of movement of workers 

Albania  has  some  level  of  preparation in  the  freedom  of movement for  workers.  Some  progress  was 
made on the implementation of the 2023 report’s recommendation by concluding social security bilateral 
agreements  with  EU  Member  States  and  further  advancing  the  preparations  to  enable  connecting  its 
employment services system to EURES.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

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

→  strengthen the enforcement of the Law on foreigners as per the National Migration Strategy 2024-

2026; 

→  continue  negotiating  and  concluding  new  bilateral  agreements  on  social  security,  notably  with  EU 

Member States.  

Chapter 3: Right of establishment and freedom to provide services   

Albania  is  moderately  prepared  in  the  right  of  establishment  and  freedom  to  provide  services.  No 
progress was achieved in the reporting period. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  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 2023 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. 

Chapter 4: Free movement of capital  

Albania is moderately prepared in the area of free movement of capital. Some progress was made on 
alignment with the EU acquis on payments (Payment Account Directive) and on actions that resulted in 
Albania being delisted from the Financial Action Task Force (FATF) ‘grey list’ in October 2023, 

10 

 
 
The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  ensure  equal  treatment  of  EU  citizens  and  Albanian  citizens  on  the  acquisition  of  land,  in  line  with 

Albania’s obligation under the Stabilisation and Association Agreement (SAA); 

→  take actions to ensure the implementation of the provisions of the EU acquis on cross-border payments 

and interchange fees; 

→  Start  implementation  of  the  adopted  2024-2030  anti-money  laundering  and  terrorism  financing 

strategy and follow up on measures to address the 2023 National Risk Assessment. 

Chapter 6: Company law 

Albania is moderately prepared in the field of company law.  No progress was made in the reporting 
period.  

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  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  in  introducing  such 
amendments  including  on  the  use  of  digital  tools,  cross-border  conversions,  mergers  and  divisions, 
and on encouraging long-term shareholder engagement;  

→  further align the legal framework for accounting and audit with the latest EU acquis in these areas.  

Chapter 7: Intellectual property law 

Albania  is  moderately  prepared  in  the  area  of  intellectual  property  rights.  Some  progress  was  made 
with the adoption of the implementing legislation on the procedure and fair compensation for the use of 
orphan works as well as the database of copyright works.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  complete alignment with the copyright and related rights acquis;  

→  continue  to  improve  the  functioning  of  collective  management  organisations  (CMOs)  and  the 

payment of royalties to rights holders; 

→  further  align  legislation  on  industrial  property  rights  and  the  IPR  enforcement  system  leveraging 

collaboration with the European Union Intellectual Property Office.  

Chapter 8: Competition policy 

Albania  is  between  having  some  level  of  preparation  and  a  moderate  level  of  preparation  in 
competition  policy.  There  was  limited  progress  during  the  reporting  period,  including  on  legislative 
alignment with the EU acquis in the area of antitrust procedures.  

The Commission’s recommendations from last year were partially implemented and remain mostly 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; 

11 

 
 
→  step up efforts to raise awareness of line ministries and regional and local authorities’ awareness of 
State aid rules to ensure prior notification to SAC of aid measures and strengthen the enforcement of 
State aid rules. 

Chapter 9: Financial services 

Albania  has  between  a  moderate  and  a  good  level  of  preparation  in  the  area  of  financial  services. 
Some progress was made in the further alignment of legislation with the EU acquis on bank recovery and 
the resolution framework, and on private pension funds.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  continue the work towards full alignment of the banking regulation with the amended versions of the 
Capital  Requirements  Directive  (CRD)/Regulation  (CRR),  the  Bank  Recovery  and  Resolution 
Directive (BRRD), and the deposit guarantee schemes Directive (DGS); 

→  complete alignment with the EU acquis on insurance, including the Solvency II Directive;  

→  complete alignment with the EU acquis on capital markets, including securities markets, investment 

funds and financial market infrastructures. 

Chapter 28: Consumer and health protection 

Preparations  are  at  an  early  stage  in  the  area  of  consumer  and  health  protection.  There  was  limited 
progress on alignment with the EU acquis on substances of human origin.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular:  

→  make progress on alignment of consumer law with the latest EU  acquis to address developments in 

this area; 

→  complete alignment with the EU acquis on medicines for human and veterinary use, and on tobacco 

control; 

→  increase the financial and human resources in the health sector, specifically in primary healthcare and 
all-hazard health emergency preparedness, and guarantee equal access to quality health services for 
vulnerable populations, in particular for women and girls who belong to these groups. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

Chapter 10: Digital transformation and media 

Albania has between a moderate and a good level of preparation   in the field of digital transformation 
and media. Some progress was made on following up the recommendations of in last year’s report. The 
new  Law  on  cybersecurity  was  adopted  in  February  2024,  further  aligning  with  the  EU  Directive  on 
measures for a high common level of cybersecurity across the Union (NIS 2). In November 2023, Albania 
ratified  the  agreement  joining  the  Digital  Europe  programme.  In  2024,  Albania  set  up  the  Broadband 
Competence Office (BCO) within the Ministry of Infrastructure and Energy structure. In May 2024, the 
new Law on electronic communications was adopted. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Albania should in particular: 

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

12 

 
 
 
→  implement the new Law on electronic communications and the new Law on cybersecurity and adopt the 

Cybersecurity Strategy Action Plan 2024-2026; 

→  improve the collection of statistical data on digital performance and digital competitiveness as per the 

Digital Economy and Society Index.  

Chapter 16: Taxation 

Albania  is  moderately  prepared  in  the  area  of  taxation.  Limited  progress  was  made  in  the  reporting 
period,  in  particular,  in  abolishing  the  industrial  incentive  scheme.  This  resulted  in  Albania  being 
removed from the list of potentially harmful tax regimes within the scope of the Forum on Harmful Tax 
Practices. 

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  adopt its MTRS  (medium-term  revenue  strategy),  including  actions  for the  review  and  approach  to 

further reducing tax exemptions and align VAT and excise duty rates with the EU acquis;  

→  simplify the taxation system to further encourage more tax compliance and improve the use of third-

party data in the fight against tax fraud and tax evasion;  

→  start  preparations  towards  achieving  interconnection  and  interoperability  with  the  common  EU 

taxation IT systems. 

Chapter 17: Economic and monetary policy   

Albania is between a moderate and a good level of preparation in the area of economic and monetary 
policy and made some progress as the Bank of Albania maintained price stability, and the fiscal rule was 
adhered to complied with.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should, in particular: 

→  fully align the Law on the Bank of Albania with the EU acquis; 

→  begin reporting on the long-term fiscal sustainability of the social security system; 

→  align Albania’s budget legislation and practices with the requirements of the EU acquis. 

Chapter 19: Social policy and employment 

Albania is moderately prepared in the area of social policy and employment and made some progress 
during the reporting period by starting the implementation of the National Strategy on Employment and 
Skills 2023-2030 and improving access to jobs through by the piloting of the Youth Guarantee. Albania 
adopted the 2024-2030 National social protection strategy. Efforts need to continue on strengthening the 
social protection system by increasing social services and strengthening the social dialogue, alongside the 
labour market measures.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should: 

→  adopt the new 2023-2030 strategy for occupational health and safety, with a focus on strengthening 
enforcement capacity, and the Child Guarantee action plan and establish an indexation mechanism of 
the Economic Aid benefits;  

→  roll out   the Youth Guarantee in more regions, taking extracting lessons learned from its pilot phase 

into account; 

13 

 
 
 
→  increase budget allocation, social services provision and monitoring of the Social Fund, strengthen the 
capacity of local governments to secure sufficient funding, and develop a coordinated social service 
referral system.  

Chapter 20: Enterprise and industrial policy  

Albania has between a moderate and a good level of preparation in the area of enterprise and industrial 
policy  and  made  some  progress,  in  particular  in  the  implementation  of  a  support  programme  for 
innovation start-ups.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should, in particular:  

→  continue  addressing  the  main  challenges  to  the  business  environment  by  reducing  the  regulatory 
burden  through  fiscalisation  measures,  increasing  the  participation  of  businesses  in  funding 
programmes, reducing the informal economy and corruption, and increasing business support services 
by reviewing the Business and Investment Development Strategy;  

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

→  draft and adopt a unified investment law. 

Chapter 25: Science and research 

Albania has some level of preparation in the area of science and research. Some progress was made by 
strengthening  innovation  support  measures,  such  as  ensuring  funding  to  the  start-up  fund,  adopting  the 
2023-2030  national  strategy  on  scientific  research  and  innovation  and  finalising  the  entrepreneurial 
discovery process of the smart specialisation strategy. 

The Commission’s recommendations from last year were partially implemented and remain mostly 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, and adopt the new Law on scientific research; 

→  adopt and implement the smart specialisation strategy; 

→  produce reliable statistics and data on innovation, science and technology. 

Chapter 26: Education and culture 

Albania is moderately prepared in the field of education and culture. Some progress was made with the 
implementation of the National Strategy for Education 2021-2026 and the adoption of legislative acts to 
reform higher education. Albania still needs to strengthen the quality and inclusiveness of education. The 
implementing legislation of the Law on cultural heritage and museums is yet to be finalised.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  optimise further the Vocational Education and Training (VET) system further in line with the labour 

market needs; 

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

→  adopt the implementing legislation for the Law on cultural heritage and museums. 

14 

 
 
Chapter 29: Customs union 

Albania is moderately prepared in the area of the customs union.  Limited progress was made on the 
preparatory work for the development of the national component of the new computerised transit system 
(NCTS) and digitisation of more customs services.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  approve the legal provisions on the common transit procedure and develop the national component of 
the  New  Computerised  Transit  System  (NCTS),  as  well  as  start  preparations  towards  achieving 
interconnection  and  interoperability  of  its  national  customs  IT  systems  with  the  EU  electronic 
customs environment; 

→  continue  pursuing  the  fight  against  smuggling  of  illicit  goods,  including  tobacco,  corruption  and 
imports  of  counterfeit  products,  including  by  strengthening  administrative  capacity  and  improving 
cooperation between the authorities involved; 

→  undertake the legal adjustments necessary to keep up with developments of the EU customs acquis, in 

particular the acts implementing the Union Customs Code. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

Chapter 14: Transport policy 

Albania has some level of preparation in the area of transport policy, with limited progress achieved in 
the  reporting  period.  Albania  adopted  implementing  legislation  related  to  the  rail  sector  and  further 
measures to improve the quality and performance of the vessels sailing under the Albanian flag. 

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular: 

→  adopt the new national transport strategy, and its accompanying action plan, and the new road safety 

strategy in line with the Transport Community road safety action plan;  

→  implement legislation on the railway sector reform, in line with the Transport Community rail action 

plan; 

→  continue to improve the performance of maritime transport vessels sailing under the Albanian flag. 

Chapter 15: Energy  

Albania is  between a moderate and a good level of preparation in the area of energy. It made  good 
progress, in particular, on the internal electricity energy market. 

The  Commission’s  recommendations  from  last  year  have  been  partially  addressed  and  remain  partly 
valid. In the coming year, Albania should in particular:  

→  update and implement the 2020-2030 national energy and climate plan (NECP), and ensure that the 

Albanian renewable energy operator is operational by the end of 2024;  

→  strengthen  the  capacity  of  the  Energy  Efficiency  Agency,  continue  drafting  and  adopting 
implementing  legislation,  (including  establishing  the  energy-efficiency  obligation  scheme),  and 
adopting  the  implementing  regulations  on  labelling,  in  line  with  its  obligations  under  the  Energy 
Efficiency Directive; 

15 

 
 
 
 
→  continue implementing the electricity integration package and notably join the EU day-ahead market 

coupling, by June 2026. 

Chapter 21: Trans-European networks 

Albania  has  some  level  of  preparation  in  trans-European  networks.  Some  progress  was  made  in 
developing transport and energy networks as work to prepare projects is ongoing. 

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should, in particular: 

→  speed up the implementation of the TEN-T five-year workplan of the Transport Community Treaty 
and  continue  developing  the  core  energy  networks  in  line  with  the  national  strategies  and 
infrastructure investment prioritisation, under the single project pipeline;  

→  continue  to  align  its  legal  framework  with  the  EU  acquis  and  the  regulations  on  TEN-T  (trans-
European transport networks) and TEN-E (trans-European energy networks), including fully aligning 
guidelines for on trans-European energy infrastructure; 

→  strengthen capacity for and ensure progress in implementing the Economic Investment Plan for the 

Western Balkans’ projects on transport and energy. 

Chapter 27: Environment and climate change  

Albania has some level of preparation in this area and it made limited progress, in particular (i) in the 
circular economy with the setting-up of the National Agency for Waste Economy; (ii) on water quality 
with  the  adoption  of  the  Laws  on  water  resources  and  on  protection  of  marine  environment,  and  three 
river basin management plans; and (iii) on civil protection with the adoption of the national strategy for 
disaster risk reduction 2023-2030. The 2024 approval of the amendments to the law on protected areas, 
however, is considered a negative development and there was no particular development for addressing 
climate change. Further efforts are still needed on implementation and enforcement on the environment 
acquis,  and  the  country  is  encouraged  to  further  enhance  its  civil  protection  operational  capacity  and 
coordination with the Union Civil Protection Mechanism.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should, in particular: 

→  achieve fully alignment, implementation and enforcement of the Directives on Environmental Impact 
Assessment (EIA) and Strategic Environmental Assessment (SEA) and  ensure that all infrastructure 
investments comply with the EU environmental and climate acquis, national and international nature 
and water obligations, and ensure public participation; 

→  take  immediate  measures  to  fight  environmental  crime  and  achieve  fully  alignment  with  the 
Environmental  Crime  Directive  and  the  Environmental  Liability  Directives,  and  strengthen  policy 
implementation  and  law  enforcement  for  nature  and  biodiversity  protection,  especially  in  the 
protected areas; 

→  update and implement the National Adaptation Plan, the National Energy and Climate Plan (NECP) 
and  implement  the  Energy  Community's  Decarbonisation  Roadmap,  focusing  on  the  Monitoring 
Reporting  Verification  and  Accreditation  (MRVA)  package  to  introduce  carbon  pricing  and  align 
with the EU Emission Trading System (ETS), Energy and Climate Plan, and update and implement 
the National Adaptation Plan. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

16 

 
 
 
Chapter 11: Agriculture and rural development 

Albania has some level of preparation in agriculture and rural development. There was limited progress 
in building administrative capacity and on legislative alignment.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular:  

→  ensure  that  preconditions  for  the  entrustment  of  budget  implementation  tasks  under  the  IPARD  III 

programme are met in line with the principles of sound financial management; 

→  ensure  the  necessary  administrative  capacity  and  technical  support  for  setting  up  the  farm 

accountancy data network (FADN); 

→  complete legislative alignment with the EU acquis notably for quality policy and organic production.  

Chapter 12: Food safety, veterinary and phytosanitary policy 

Albania has some level of preparation in the area of food safety, veterinary and phytosanitary policy. No 
progress  was  made  over  the  reporting  period.  Significant  efforts  are  needed  to  align  and  enforce  the 
legislation with the EU acquis and enforce it. Albania should implement the adopted national food safety 
national sectoral policy. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Albania should in particular:  

→   work on alignment of national legislation with the EU acquis specifically on animal and plant health, 

official controls, animal welfare, and with the General Food Law Regulation;  

→  finalise the staffing of the veterinary service to ensure it is operational;  

→  strengthen the capacity to implement surveillance and vaccination programmes of the main infectious 

animal diseases, including rabies. 

Chapter 13: Fisheries and aquaculture 

Albania  is moderately prepared in fisheries and aquaculture. It made  some progress, in particular on 
continuing  effective  operations  of  the  vessel  monitoring  system  (VMS).  As  a  contracting  party  of  the 
General Fisheries Commission for the Mediterranean (GFCM), Albania continues to actively implement 
the recommendations to monitor its fishing activities. 

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular:  

→  build  up  the  necessary  administrative  capacity  in  the  fishery  sector,  particularly  by  completing 
staffing of the inspectorate and central administration, and strengthening data collection and scientific 
advice, in line with the EU’s common fisheries policy (CFP) and the GFCM and other international 
agreements;  

→  implement the regional plan of action for small-scale fisheries; 

→  adopt measures to support the fishery sector under State aid.   

Chapter 22: Regional policy and coordination of structural instruments 

Albania is moderately prepared in the area of regional policy and coordination of structural instruments. 
Some progress was made over the reporting period. In particular, the membership of the interinstitutional 

17 

 
 
working group for Chapter 22 negotiations was widened. Capacity-building efforts are now required from 
all institutions for the implementation of cohesion policy programmes.  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular:  

→  Prepare  for  the  effective  implementation  of  the  EU  acquis  under  Chapter  22  and  strengthen 
preparations  for  the  future  cohesion  policy,  including  in  the  institutional  set-up,  and  the  financial 
management  and  control  systems,  in  terms  of  programming,  monitoring,  evaluation,  auditing, 
enabling conditions and the partnership principles;  

→  Approve and implement the national strategy for regional development and cohesion and the regional 

development plans. 

→  Strengthen  administrative  capacity  in  the  new  structures  under  IPA  III  multiannual  operational 
programmes, as well as prepare the Roadmap for Administrative Capacity Building in the Cohesion 
Policy  Ecosystem,  and  adopt  a  comprehensive  retention  policy  as  well  as  a  National  Anti-Fraud 
Strategy. 

Chapter 33: Financial and budgetary provisions  

Albania  has  some  level  of  preparation  on  in  the  area  of  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  on  the 
alignment with ESA 2010 standards (European System of Accounts). There were also improvements to 
the  data  transmission  of  the  excessive  deficit  procedure  (EDP)  tables  through  the  Albanian  Integrated 
Government Financial Statistics compilation system (AIGC).  

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular:  

→  continue aligning data on national accounts to ESA 2010 and improve the comprehensiveness of data 

transmission to Eurostat, including on the excessive deficit procedure; 

→  align its legislation with the EU provisions rules on VAT and customs duties and strengthen efforts to 

tackle fiscal evasion and informality; 

→  improve administrative capacity and coordination  mechanisms among key stakeholders in the own-

resources system. 

CLUSTER 6: EXTERNAL RELATIONS  

Chapter 30: External relations 

Albania  has  a  good level of  preparation  in  external  relations.  Limited  progress  was  made  during the 
reporting period, in particular in implementation of CEFTA protocols and in efforts to develop its export 
control system. 

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Albania should in particular:  

→  continue  to implement  Central  European  Free  Trade  Agreement  (CEFTA)  additional  protocol  5 on 
trade  facilitation  and  additional  protocol  6  on  trade  in  services,  and  take  the  necessary  steps  to 
implement additional protocol 7 on dispute settlement, and implement actions under the new action 
plan for 2025-2028; 

18 

 
 
 
→  establish  the  legal  framework  that  covers  international  cooperation  and  development  policy  and 

humanitarian aid, in line with the EU policies and principles.  

Chapter 31: Foreign, security and defence policy 

Albania  has  a  good  level  of  preparation  in  the  field  of  foreign,  security  and  defence  policy.  Good 
progress  was  made  as  the  country  maintained  its  track-record  of  full  alignment  with  relevant  High 
Representative statements on behalf of the EU and relevant Council decisions, including EU restrictive 
measures  related  to  Russia’s  war  of  aggression  against  Ukraine.  The  country  started  negotiations  on  a 
Security  and  Defence  Partnership  with  the  EU  in  spring  2024.  Albania  continued  to  participate  in  EU 
crisis management missions and operations under the common security and defence policy. 

The recommendations from last year were largely implemented and remain partially valid. In the coming 
year, Albania should in particular: 

→  maintain  full  alignment  with  the  EU’s  common  foreign  and  security  policy  and  strengthen  its 
implementation in all international fora and its enforcement capacity to enforce regarding restrictive 
measures; 

→  consider increasing its participation in EU crisis management missions and operations; 

→  continue  implementing  its  national  strategy  on  small  arms  and  light  weapons  and  step  up  the 

investigation and prosecution of firearms trafficking. 

1.3. STATE OF PLAY OF THE ACCESSION NEGOTIATIONS 

Following  the  Intergovernmental  Conference  on  accession  negotiations  with  Albania  in  2022,  the 
Commission immediately launched the analytical examination of the EU acquis – the ‘screening’ process. 
After tabling the screening report on cluster 1 - Fundamentals in July 2023, the Commission presented the 
opening  benchmarks  assessment  report  to  the  Council.  Therein,  the  Commission  concluded  that  the 
roadmap for public administration reform and the roadmap for the rule of law chapters submitted by the 
Albanian  government  to  the  Commission  met  the  requirements  for  opening  negotiations  on  the 
fundamentals cluster. Albania also submitted its roadmap on the functioning of democratic institutions in 
October 2024. The screening report on cluster 2 – internal market was presented to the Council in May 
2024, followed by the screening reports on cluster 6 – external relations and cluster 3 – competitiveness 
and inclusive growth in October 2024. An intergovernmental conference was convened in October 2024 
to open accession negotiations on the fundamentals cluster. 

Date  cluster  opened/chapter 
closed  with interim  or  closing 
benchmarks 
Cluster opened on 15 October 2024  
Interim Benchmarks 
Interim Benchmarks  
Closing benchmarks 
Closing benchmarks  
Closing benchmarks 

Clusters 

Chapters/areas 

Fundamentals 

5 chapters open 

23 – Judiciary and fundamental rights 
24 – Justice, freedom, security 
5 – Public procurement 
18 – Statistics 
32 – Financial control 
…Economic criteria 
…Functioning of democratic institutions 
…Public administration reform (PAR) 

   

19 

 
 
 
 
 
 
 
20 

 
 
 
 
 
2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM  

2.1.1 Democracy  

The  functioning  of  democratic  institutions  is  partially  satisfactory,  stemming  mainly  from  the  deeply 
polarised  political  situation,  unaddressed  shortcomings  in  the  electoral  process,  limited  effective 
parliamentary oversight over the executive and the lack of meaningful public consultations. 

During  the  reporting  period,  the  political  scene  continued  to  be  marked  by  high  political  polarisation 
against  the  background  of  persistent  divisions  within  the  largest  opposition  party.  This  has  further 
weakened the effectiveness, transparency and objectivity of parliamentary work. The Constitutional Court 
has reduced its backlog and is effective in upholding institutional checks and balances though Parliament 
has continued to fail to comply with some of its rulings. 

Elections 

During  the  reporting  period,  no  general  elections  took  place;  mayoral  by-elections  were  held  in  the 
municipality of Himara on 4 August. A tense political environment and continuous divisions within the 
main  opposition  party  hampered  the  functioning  of  the  parliamentary  ad-hoc  committee  on  electoral 
reform  set  up  in  2022,  which  ended  its  mandate  without  achieving  concrete  results.  A  cross-party 
dialogue group subsequently set up in the Parliamentary Legal Affairs Committee engaged in discussing 
electoral  reform,  focusing  mainly  on  the  three  rulings  of  the  Constitutional  Court  concerning  out-of-
country voting and the right to elect and to be elected. The Central Election Commission continued to use 
a digital platform for the disclosure of political parties’ campaign financing. 

In  July,  with  a cross-party  vote, the  Parliament adopted  amendments to  the  Electoral  Code,  partially in 
response  to  Constitutional  Court  rulings,  thus  enabling  out-of-country  voting  by  Albanian  diaspora, 
introducing  partially  open  candidates  lists  (mixed  candidate  lists)  and  changes  to  the  party  quotient. 
However, 
outstanding 
other 
OSCE/ODIHR  as  well  as  Venice 
Commission  recommendations  remain 
to be addressed4. 

Graph 1: Albania - Women in political life
140

132

100

150

The gender quotas in parliamentary and 
local  elections  to  promote  women’s 
participation  in  politics  are  not  always 
met.  Women  in  politics  face  several 
and 
socio-cultural, 
institutional 
said 
barriers. 
amendments  to  the  electoral  law  on 
preferential 
the 
enforcement  of  gender  quotas  even 
when the list is subject to a preferential 
vote. 

structural 

support 

vote 

The 

55,5

50
35,7

18

10

5
3,7

100

50

0

Number of MPs Number of
ministers
Women

Number of
party leaders

80

60

40

20

0

61

9
13,1

Mayors

Total

%
Source: Parliament, Ministry of Interior

Parliament 

During the autumn 2023 session, the normal functioning of the assembly was significantly disrupted by 
opposition MPs due to alleged restrictions by the ruling majority on their rights, in particular the rejection 

4 These focus on (i) ensuring vote secrecy; (ii) fighting vote-buying and the misuse of administrative resources at national and 
local levels; (iii) ensuring independent media reporting of electoral campaigns; (iv) safeguarding the public’s personal data; and 
(v) monitoring as well as oversight of campaign financing, and access for person with disabilities. 

21 

 
 
 
of the opposition’s request to set up a number of inquiry committees. As a result, laws were adopted by 
the ruling majority without a proper debate. In March 2024, the ruling  majority and a small part of the 
opposition Democratic Party reached an agreement, which restored normality to parliamentary activities. 

During the reporting period, the assembly failed to comply with some of the rulings of the Constitutional 
Court. These concerned the unconstitutionality of certain amendments to the Law on Inquiry Committees 
adopted in December 2023 and to the Assembly’s Rules of Procedure, as well as the compatibility of a 
ruling majority MP’s mandate.  

Parliament’s  oversight  of  the  executive  remained  weak.  Most  legislative  initiatives  are  tabled  by  the 
Council  of  Ministers.  During  the  reporting  period,  Parliament  once  again  failed  to  appoint  chairs  and 
members of several institutions, including the Ombudsperson and the Commissioner for Protection from 
Discrimination (CPD). 

Parliament’s  implementation  of  the  legal  framework  for  public  consultation  processes  remains  rather 
formal. Timely and transparent follow-up is not always ensured. 

Greater  transparency  and  higher  ethical  standards  in  parliamentary  proceedings  are  still  necessary  to 
enable citizens to easily access information about parliament’s activities and to foster a more constructive 
political dialogue between the opposition and the majority. 

EU integration 

Albania’s  EU  integration  coordination  structures,  in  particular  the Minister  of  State  /  Chief  Negotiator, 
were  consolidated  during  the  reporting  period,  and  the  department  in  charge  of  EU  integration  at  the 
Prime  Minister’s  Office  was  confirmed  as  the  Secretariat  of  European  Integration.  The  National  IPA 
Coordinator  (NIPAC)  is  the  General  Director  of  SASPAC  and  the  focal  point  for  coordinating  the 
preparation  and  submission  of  Western  Balkans  Investment  Framework  (WBIF)  applications.  A  new 
NIPAC was appointed in December 2023, and yet another in August 2024. 

Interinstitutional working groups responsible for the technical aspects of the EU integration process have 
met regularly. The European integration units at the line ministries and agencies still need to strengthen 
their capacity to play a more substantial role. 

In early 2024, the government adopted the National Plan for European Integration 2024-2026. 

The  National  Council  of  European  Integration  has  continued  its  activities,  including  reviewing  key 
documents (such as roadmaps related to opening accession negotiations on the fundamentals cluster) and 
raising awareness about fulfilling obligations related to EU accession. 

Governance 

Three waves of governmental changes took place during the reporting period. In September 2023, eight 
ministerial  posts  were  affected  by  the  changes,  with  five  new  ministers  joining  the  government.  In 
January 2024, the portfolios for the management of the economy and finances and for local governance 
were  assigned  to  a  state  minister  position.  In  addition,  a  new  ministerial  position  was  dedicated  to  the 
public administration reform and the fight against corruption. In July 2024, a third government reshuffle 
affected the ministers of interior, defence and finance.  

In May 2024, Parliament adopted a new major reform initiative intended to review the legislation and the 
state’s institutional architecture in central and local government, and the role of independent institutions, 
deepening reforms in the area of the good governance, rule of law and anti-corruption for Albania 2030. 
A  dedicated  ad  hoc  parliamentary  committee  started  its  work  in  July  without  participation  of  the 
opposition. In this reform process, attention will be required to preserve constitutional balances as well as 
coherence  with  Albania’s  commitments  under  the  EU  accession  process,  including  the  principle  of 
judicial independence and the irreversibility of the 2016 justice reform.  

22 

 
 
Several policy and legal initiatives adopted during the reporting period have raised concerns in terms of 
their alignment with European standards. These include the legalisation of the cultivation of cannabis for 
medical and industrial purposes; the revision of the law on protected areas; the extension of the law on 
strategic investments; transitory derogations in public procurement, and the law on criminal amnesty. 

Coordination  between  ministries  and  their  respective  executive  institutions  and  between  the  central 
government and municipalities remains an issue. 

On  local  self-government/decentralisation,  the  position  of  Minister  of  State  for  Local  Government  is 
supported by the Agency for Support to Local Government (ASLG). 

The division of responsibilities between local and central government continues to be an area of concern. 
There is still a need to streamline the legal framework for the functions of local government units (LGUs). 
These bodies continue  to  lack  sufficient  and  stable financial  resources  and  administrative  capacity,  and 
their  fiscal  autonomy  remains  at  risk.  The  delivery  of  quality  public  services  at  local  level  remains 
limited. Efforts need to continue to reduce the staff salary gap between central and local government and 
between  large  and  small  municipalities.  The  efficiency,  transparency  and  accountability  of  human 
resources  management should  improve.  LGUs  should  also  continue develop  and  implement  thoroughly 
local integrity plans. 

City council commissions on EU integration have been established in 43 of the 61 municipalities. Further 
coordinated  efforts  should  be  pursued  to  raise  awareness  on  the  role  of  local  government  in  the  EU 
integration process and to build adequate administrative capacity to benefit from EU financial support. 

Consultation and accountability to the public at LGU levels remain limited. 

Civil society 

The  legal  framework  on  the  right  to  freedom  of  assembly  and  association  is  in  line  with  international 
standards. However, the national electronic register of non-profit organisations has not yet become fully 
operational  although  it  was  planned  to  be  in  place  by  the  end  of  2023.  There  has  been  no  progress  in 
revising the Law on voluntarism. 

The legal framework is only partially promoting access to funding. The ineffective new VAT exemption 
scheme  has  created  major obstacles  for  non-profit  organisations  to  implement foreign  aid  programmes. 
Albania still does not have tax incentives in place for individual donations, and there are only marginal 
tax incentives for corporate donations. Public funding for civil society organisations and support to social 
enterprises remains insufficient to ensure their sustainability. 

No progress was made in the implementation of the Government Roadmap on an Enabling Environment 
for  Civil  Society  2019-2023  or  in  strengthening  the  structures  and  mechanisms  for  dialogue  and 
coordination between the government and civil society. A new strategic framework is not yet in place. 

The  legal  framework  for  public  consultations  is  generally  in  line  with  European  standards,  but 
consultations remain mostly formal. 

Some progress was made in the establishment of European Integration Partnership Platform consultation 
and discussion tables. A total of  29 of 33 tables have now been established although they have varying 
levels of participation and effectiveness. 

2.1.2. Public administration reform  

Strategic framework for public administration reform  

The  strategic  framework  for  public  administration  is  not  yet  fully  in  place  because  the  public 
administration  reform  and  the  anti-corruption  strategies  for  2023-2030  have  not  yet  been  adopted. 
Implementation  of  the  2022-2026  digital  agenda has continued  to  progress steadily,  but  digital  security 
and  equal  access  for  vulnerable  groups  is  still  an  issue.  Implementation  of  the  2023-2030  strategy  on 

23 

 
 
decentralisation  and  local  governance  stalled  as  the  new  coordinating  structure  body  settled  in. 
Institutional building and data collection, analysis, and aggregation capacities still need to be developed.  

The  position  of  Minister  of  State  for  Services  and  Standards  was  abolished  in  September  2023  and 
replaced in January 2024 with the new position of Minister of State for Public Administration and Anti-
Corruption.  A  new  position  of  Minister  of  State  for  Local  Governance  was  also  created  in  September 
2023. However, no significant progress was made in the achievement of carrying out reforms in the area 
of  good  governance.  The  structure of the  Integrated Policy Management  Group  (IPMG)  was revised in 
August  2023.  The  newly  created  IPMG  for  Democracy,  Rule  of  Law  and  Good  Governance  only  met 
once. The IPMG mechanism should be aligned with the new governmental structure and strategies, and 
its  functioning  remains  to  be  assessed  in  practice.  The  financial  sustainability  of  reforms  needs  to  be 
improved as it currently depends heavily on funding from external donors.  

Policy development and coordination  

Certain aspects of policy development and coordination need to be further developed. The legal basis and 
the institutional set-up for consistent policy making are partially in place. Approximately two thirds of the 
approved  draft  laws  in  2023  originated  from  outside  the  Government  Analytical  Programme.  An 
extensive policy coordination structure exists, through the Strategic Planning Committee (SPC), which is 
chaired by the Prime Minister. It has continued to meet regularly and steer the policy-making process. An 
integrated planning system, including links to budgeting, is in place but is currently not in use due to the 
supporting  IT  systems  not being fully  operational.  Consistency  between  policy  planning  and  budgeting 
needs  to  be further improved.  Further  action is  needed  to  strengthen  the administrative  capacity  of line 
ministries and the Prime Minister’s Office and make management more accountable (See Chapter 32 – 
Financial control).  

The  administrative  capacity  for  evidence-based  policymaking  and  legislative  development  needs  to  be 
further strengthened. The use of regulatory impact assessments (RIAs) was limited to half of the approved 
draft  laws  based  on  the  Council  of  Ministers’  interpretation  of  the  criteria  set  out  in  the  Council  of 
Ministers’ rules of procedures. The government reported 60 RIAs in 2023 and 30 RIAs in the period from 
January 2024 to August 2024. The quality of the RIAs also needs to be improved. The percentage of legal 
acts  that  go  through  public  consultation  should  be  further  increased,  based  on  a  more  comprehensive 
interpretation  of  the  criteria  in  the  law  on  public  consultation.  In  2023,  46  acts  were  subject  to 
consultation,  out  of  a  total  of  66  adopted  acts.  The  quality  control  of  consultations  needs  to  be 
strengthened,  and  proper  follow-up  ensured.  More  action  is  needed  to  encourage  stakeholders,  in 
particular  civil  society, to participate.  The  existing  rules  on  public  consultations  and  RIAs  rules  do  not 
apply to secondary legislation yet. Public scrutiny of government work remains weak, and the increased 
use of extraordinary proceedings limits the possibility for parliamentary scrutiny over the government’s 
decision-making.  

Public financial management  

The public financial management (PFM) is broadly in place but needs to be improved. The legal basis for 
PFM  is  mostly  in  place,  with  a  comprehensive  organic  budget  law.  In  January  2024,  the  Ministry  of 
Finance and Economy was split into separate ministries, and a new organisation structure was approved 
for the newly created Ministry of Finance. The new 2023-2030 PFM strategy was adopted in June 2024 
and covers retro-actively the year 2023. It is comprehensive, covering all aspects of PFM and domestic 
revenue  mobilisation,  and  focuses  primarily  on  medium-term  actions  for  the  period  2023-2026.  The 
strategic  framework  is  further  strengthened  by  specific  strategies  on  debt  management,  procurement, 
external audit and customs.  

The provisions of the organic budget law are mostly followed. However, budget revisions continue to be 
done almost exclusively through normative acts by the executive, an instrument better suited in cases of 
urgency. A return to regular budget revision processes  through the parliament should be pursued. Work 

24 

 
 
continues  on  the  medium-term  budget,  and  efforts  have  been  made  to  improve  planning  input  and 
introduce  a  single  project  pipeline.  The  capacity  of  the  Ministry  of  Finance  will  need  to  be  further 
strengthened.  Support  systems  for  budget  execution  follow-up  have  been  developed  further  and  rolled 
out. The level of arrears has reduced, but ongoing efforts to strengthen commitment compliance should 
still  be  pursued.  Action  has  been  taken  to  strengthen  fiscal  risk  monitoring.  Nevertheless,  fiscal  risk 
reporting  and  risk  assessment  on  fiscal  risk  related  to  state-owned  enterprises  and  public-private 
partnerships  needs  to  be  further  improved.  Initial  efforts  on  gender-responsive  budgeting  should  be 
maintained  and  expanded.  Budget  transparency  is  mostly  satisfactory  with  all  key  budget  documents 
regularly published.  

Public service and human resources management  

Public service and human resources management need to be further developed. Provisions on merit-based 
recruitment, promotion and dismissal continue to be inconsistently applied at all levels. Recent measures 
on  merit-based  recruitment  and  salary  increases  were  taken  at  central  level  and  should  be  expanded  to 
local administration as well. Most civil servants are recruited through a group or pool recruitment process 
– 486 were recruited between January 2024 and August 2024, up from 78 in 2023. The majority of new 
recruits are women, about 61%. About one third of senior positions are still vacant despite the availability 
of  a  pool  of  candidates  from  the  top  management  corps  (TMC)  group.  Recruitments  for  managerial 
positions  do  not  adequately  observe  the  legal  framework  in  place  in  terms  of  opening  vacancies  to 
external candidates, occurring only as an exception or by the implementation of the training programme 
through  the  Albanian  School  of  Public  Administration  (ASPA)  as  the  normal  recruitment  channel.  In 
2023,  there  were  27  dismissals  from  the  civil  service,  compared  with  19  in  2022.    According  to  the 
government, the enforcement rate of  final court decisions  on dismissals and reinstatements  increased to 
84.2%  in  2023,  compared with  81.5%  in  2022.  However, reactiveness  from  the  government  to  enforce 
such decisions in a timely manner should be further improved. Three additional institutions (the Financial 
Intelligence Unit, the Authority of Geospatial Information, and the Authority on Electronic Certification 
and  Cybersecurity)  no  longer  fall  under  the  civil  service  law.  The  human  resources  management 
information system (HRMIS) does not cover the entire public sector and in its current design cannot be 
used as an automated payroll system. Efforts to redesign the HRMIS accordingly should be pursued.    

The  salary  reform  adopted  in  May  2023  brought  very  limited  structural  changes  but  significantly 
increased civil servants’ salaries. The reform failed to address key issues, such as  the complexity of the 
salary structure or the lack of links to job performance.  

ASPA  continued  to  make  training  programmes  for  professional  development  available,  with  a  strong 
focus  on  EU  integration.  No  progress  was  made  to  improve  the  school’s  physical  and  digital 
infrastructure.  

Accountability of administration  

The accountability of the administration is insufficient.  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. Furthermore, even the typology 
established  in  the  law  is  not  consistently  applied.  The  organisational  set-up  of  the  administration  is 
becoming further centralised, with the number of authorities/agencies subordinated directly to the Prime 
Minister’s Office further increasing (currently at 26). An amendment to the Law on organisation of state 
administration is planned for 2024, but the key challenge will be its consistent application in practice. The 
legal framework for ensuring managerial accountability needs to be improved. 

The citizens’ right to good administration needs to be further strengthened. According to data provided by 
the People’s Advocate (PA), 23 of 72 recommendations issued in 2023 had been fully implemented as of 
March  2024,  representing  a  32%  rate.  More  action  is  needed  to  improve  the  implementation  rate.  The 

25 

 
 
Parliament  should  strengthen  its  cooperation  with  the  PA  and  address  the  problem  of  the  public 
administration bodies’ lack of responsiveness. 

On  transparency  and  access  to  information,  the  Commissioner  for  the  right  to  information  reported  a 
steady number of around 1 000 complaints in 2023, often resolved after his intervention.  Public entities 
should improve compliance with transparency requirements and be more responsive to requests for access 
to information. Albania adopted the revised Law on access to information in September 2023. 

Service delivery to citizens and businesses 

Service  delivery  to  citizens  and  businesses  needs  to  be  further  developed.  There  is  no  comprehensive 
strategy  for  service  delivery  in  force.  It  should  be  included  in  the  future  PAR  Strategy.  The  Law  on 
electronic government was adopted in June 2023. The government continued to expand its offer of online 
services. Outstanding accessibility issues for vulnerable groups, including people with disabilities, have 
not  been  addressed  yet.  The  2022-2026  digital  agenda  and  action  plan  are  being  successfully 
implemented.  Albania adopted the National Interoperability Framework in October 2023 and aligned it 
with the European Interoperability Framework (EIF) adopted in 2017. Further alignment with the newly 
adopted Interoperable Europe Act of 2024, could be fostered.   

On  reducing  administrative  burdens,  the  Interinstitutional  Working  Group  for  the  Regulation  of 
Administrative  Procedures  in  the  Function  of  Public  Services  Offered  to  Citizens  and  Businesses  was 
created  in  December  2023.  It  is  co-chaired  by  the  Minister  of  Justice  and  the  Minister  of  State  for 
Entrepreneurship and Business Climate. 

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. 

Functioning of the judiciary  

Strategic documents 

Implementation of the Cross-cutting Justice Strategy 2021-2025 still needs to be improved. The quality of 
the strategy and its monitoring are generally satisfactory. However, the implementation rate and reporting 
capacity  of  the  competent  judicial  institutions  are  still  low.  In  addition,  the  quality  of  statistical  data 
remains poor. 

Management bodies 

The  HJC  and  the  HPC  are  in  place.  Overall,  the  efficiency  of  the  Councils  in  appointing,  promoting, 
transferring  and  evaluating  magistrates  is  very  low,  which  affects  judicial  quality  and  efficiency  at  all 
levels. The  HPC  has  conducted  only  one  evaluation  since  the  start  of  the  implementation  of  the  2016 
justice  reform,  which  is  of  concern.  Coordination  is  weak  between  the  HJC  and  the  HPC.  Their 
coordination with the Ministry of Justice, the High Justice Inspector (HJI) and other judicial institutions 
on key judicial policies and their systemic follow-up to operational conclusions also remains weak. Since 
their establishment in 2016, neither of the Councils have approved their internal rules of procedure on any 
matter. 

The 2016 justice reform strengthened the councils’ overall independence. In the reporting period, the HJC 
and the HPC’s membership was renewed. However, the appointment of non-magistrate members to the 
Councils  had  been  delayed  and  remained  heavily influenced  by  Parliament,  presenting  shortcomings in 
the  background  checks  and  assets  verification  and  meritocracy  of  the  process.  Provisions  applicable  to 

26 

 
 
 
appointment of HJC and HPC non-magistrate members should be aligned with the background check and 
asset  declaration  applicable  to  magistrates  and  ensure  that  Parliament  applies  full  transparency,  the 
highest-merit based standards and high degree of consistency with the ranking of the ad-hoc pre-selection 
committee. The HPC and the HJC do not have internal rules of procedure on conflicts of interest, which 
has led to conflicts of interest in practice.  Attempts by the HPC to reinstate magistrates who have been 
vetted  out  with  a  final  dismissal  decision  is  a  serious  concern.  Although  strategic  communication  has 
improved  by  appointing  media  judges  and  carrying  out  regular  training,  it  remains  weak  overall.  In 
addition,  the  rules  on  anonymity  related  to  appointments  of  magistrates,  their  career  development  and 
accountability need to be further aligned with the principle of transparency. 

Independence and impartiality 

The  independence  and  impartiality  of  the  judiciary  is  satisfactory  in  the  higher-level  courts,  including 
courts  of  appeal,  and  needs  to  be  improved  in  the  courts  of  first  instance.  Concerns  remain  about 
attempted  interference and  pressure  on  the  judicial  system from public officials  and politicians.  During 
the reporting period, two serious incidents were recorded against magistrates, who were promptly placed 
under protection. Several public political attacks, inappropriate language and threats have been directed at 
magistrates. The self-governing institutions have effectively reacted to such incidents. 

15

10

5

0

Graph 2: Albania - Requests for protection 
from undue influence

14

13

8

8

0

0

1

0

1

1

0

0

1

1

0

0

2022

2023

2022

2023

High prosecutorial Council

High Judicial Council

Requests received
Outcome of decisions Validation
Outcome of decisions Rejection
Outcome of decisions Pending

Despite  strong  legal  safeguards,  merit-based 
appointments  and  career  development  are 
weakened  in  practice  by  the  HPC’s  failure  to 
evaluate  prosecutors  and  the  HJC’s  slow  pace 
of  qualitative  evaluations  for  judges.  The 
continued  use  of  transfers  as  an  alternative  to 
promotions is a serious concern. 

The limited number of judges at several courts, 
coupled  with  the  lack  of  an  integrated  case 
management  system,  leads 
to  a  worrying 
situation where the random allocation of cases 
is  not  widely  applied  in  courts  and  is  not 
applied at all in prosecutors’ offices. 

Accountability 

Source:  Ministry of Justice

The  accountability  of  the  judiciary  is  largely 
satisfactory.  The  legislative  framework  and  rules  on  the  accountability  of  judges  are  fully  aligned  with 
European  standards.  The  advancement  of  the  comprehensive  transitional  re-evaluation  (vetting)  of  all 
judges  and  prosecutors,  the  satisfactory  operation  of  the  HJI  and  the  continued  good  progress  in 
implementing justice reforms have strengthened accountability throughout the justice system. 

The vetting process has continued and is close to completion in first instance, with overall positive impact 
on the independence and accountability of the judiciary. The International Monitoring Operation (IMO), 
deployed  under  the  oversight  of  the  European  Commission,  continued  to  carry  out  an  independent 
oversight of the process. On 21 October 2024, the vetting institutions had completed 798 vetting cases at 
first  instance  amounting  to  99%  of 
the total. Of these, 648 decisions are 
final.  The  outcome  of  decisions  of 
the  first  instance  vetting  body,  the 
Independent 
Qualifications 
Commission  and,  where  applicable, 
of  the  Appeal  Chamber,  resulted  in 
283  dismissals  (mostly  for  issues 

27 

 
 
relating  to  unjustified  assets);  344  confirmations  in  office;  167  decisions  to  terminate  the  vetting 
proceedings; and 4 suspension decisions, with the obligation to undergo training. The IMO has continued 
to  oversee  the  vetting  process  and  has  issued  opinions  on  first  instance  assessments,  including  41 
recommendations for appeal and 6 dissenting opinions against the final Appeal Chamber decisions. The 
vetting  institution  of  public  commissioners  has  followed  all  recommendations  for  appeal.  The  Appeal 
Chamber  needs  to  enact  urgent  measures  to  increase  the  pace  of  proceedings  in  appeal  to  meet  the 
constitutional deadline. In May 2024, the HPC ended the mandate of its chair, following a decision of the 
Appeal Chamber that imposed a 15-year ban on the former chair in positions of high judicial office. The 
vetting final decisions have set important standards in the areas of background checks, asset checks and 
proficiency  of  magistrates.  Those  standards  should  be  adapted  and  maintained  in  relevant  judicial 
processes.   

Graph 3: Albania - Disciplinary 
procedures - outcome of 
procedures - 2023

n/a

n/a

n/a

n/a

n/a

n/a

1

0

Judges

Prosecutors

Initiated

Completed

Sanctions pronounced

n/a: not available

The HJI continued its good operation and fully cleared its 
backlog of cases. Challenges persist in the attractiveness of 
the  position  for  magistrate-inspectors.  The  HJI’s  capacity 
to  conduct  high-quality  inspections  should  be  increased. 
Further  development  and  conduct  of  thematic  inspections 
remain  a  priority. The  Councils,  the  HJI  and  the  High 
Inspectorate  of  Declaration  and  Audit  of  Assets  and 
Conflicts  of  Interest  (HIDAACI)  should  make  further 
efforts  in  performing  thorough  asset  checks  and,  where 
applicable,  background  checks  on  magistrates  and 
candidate-magistrates.  These  checks  should  be  consistent 
with  the  high  standards  set  in  the  vetting  process.  All 

relevant institutions should share the requested information for asset and background checks in due time. 

Quality of justice 

183

250

200

247

300

amount 

vacancies 

Graph 4: Albania - Number of justice professionals - 2023

The quality of justice needs to be improved. Even though the comprehensive justice reform has seen some 
progress. Challenges persist, in particular, with: (i) the quality of initial and continuous training; (ii) the 
consistency  of  case  law; 
(iii)  the  high  number  of 
and 
judicial 
of 
insufficient 
court staff; (iv) the lack of 
integrated 
a  modern 
case 
electronic 
in 
management 
system 
courts 
and  prosecution 
offices;  (v)  the  quality  of 
indictments  and  decisions; 
(vi)  the  quality  of  court 
including 
infrastructure, 
court 
the 
the 
buildings;  and  (vii) 
and 
poor 
reliability  of 
statistical 
data. 

2nd instance
Total
Per 100 000 inhabitants - EU27 (2022)

1st instance
Supreme Court
Per 100 000 inhabitants - Albania

security  of 

consistency 

Prosecutors

Judges

22,9

11,1

188

208

100

150

8,9

7,5

50

11

46

18

9

0

Source: CEPEJ

Further  improvements  to 
the judicial training system are still necessary. There was no specific progress in the performance of the 
School  of  Magistrates’  comprehensive  revision  of  the  annual  entry  exam,  the  review  of  initial  and 
continuous training curricula, and the quality and integrity of its staff. The fact that magistrates who have 

28 

 
 
been  dismissed  through  vetting  are  not  prohibited  from  taking  up  positions  of  training  staff  remains  a 
concern. The 2024 annual entry exam was marred by allegations of irregularities due to reported technical 
problems. The initial and continuous training of judges does not ensure their further specialisation. 

The HJC and the High Court have taken some steps to make case law more consistent, which still requires 
further consolidation. Access to reasoned decisions and their timely publication are very limited. 

Judicial quality is seriously hampered by the high number of judicial vacancies at appeal courts and first 
instance courts of general jurisdiction, the lack of progress in appointing court chairs at all levels and the 
insufficient amount of court staff, particularly legal assistants. 

The  establishment  of  an  integrated  and  interoperable  case  management  system  (ICMS)  for  judicial 
institutions seriously delayed. The government must urgently allocate the required budget to create such a 
system. Significant efforts are necessary to improve digitalisation of justice system. 

The quality of court infrastructure is poor at all levels. 
This  has  led  to  overcrowding  and  hearings  being 
carried  out  in  judges’  offices,  which  runs  against  the 
principle  of  transparency.  In  addition,  the  lack  of 
adequate security standards for judges and prosecutors 
poses a serious risk. 

to  ensure 

Decisive  steps  should  be  taken  by  the  HJC  and  the 
HPC 
the  consolidation,  publication, 
reporting, consistency and reliability of statistical data 
across the judicial system, all based on a consolidated 
regulatory framework.  In  addition,  alternative  dispute 
resolution should be used more extensively. 

1000

100

10

1

Efficiency 

Graph 5: Albania - Alternative dispute 
resolution - 2023
680

680

42

Settlement
agreements

Finalised court-
related
mediations

Mediators

Mediation cases

Source: CEPEJ

The  justice  system’s  efficiency  needs  to  be  improved.  Efficiency  continued  to  be  negatively 
affected by challenges including the increased length of proceedings and a high backlog of cases, 
notably  at  the  Court  of  Appeal  and  the  Administrative  Appeal  Court.  The  annual  intake  of 
magistrates  by  the  School  of  Magistrates  is  still  insufficient.  The  codes  of  procedure  are 
hampered by formalities and do not provide adequate tools to address the high backlog. Serious 
delays are experienced with the legal deadlines on publishing the reasoned decisions by courts. 
In the reporting period, the HJC established a working group on efficiency, which has put forward a draft 
strategic  document  and  legislative  proposals.  These  proposals  aim  to  improve  efficiency  and  are  also 
being  considered  by  Parliament.  However,  the  consistency  of  these  legal  initiatives  with  the  general 
principles of justice reform and European standards has yet to be fully ensured. 

29 

 
 
Graph 6.1: Albania - Efficiency of courts 
(%) 

Graph 6.2: Albania - Efficiency of courts 
(days)

97

94

96

93

85

74

120

100

80

60

40

20

0

3500
3000
2500
2000
1500
1000
500
0

52

n/a

2968

885

531

283

206

93

105

n/a

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

Criminal cases

Non-criminal cases*

Criminal cases

Non-criminal cases*

Clearance rate in 2022 %
Clearance rate in 2023 %

n/a: not available
* Civil and commercial cases, administrative
cases, non-litigous cases, other cases

Disposition time 2022 (days)
Disposition time 2023 (days)

n/a: not availbale
* Civil and commercial cases, administrative
cases, non-litigous cases, other cases

Source:CEPEJ

Source:CEPEJ

Fight against corruption  

Track record 

The track record in the fight against corruption remained stable. 

SPAK, comprising the Special Prosecution Office (SPO), the National Bureau of Investigation (NBI) and 
the  anti-corruption  and  organised  crime  courts  (SPAK  courts  of  both  first  instance  and  appeal),  has 
continued to deliver good results in the investigation, prosecution and convictions in high-level corruption 
cases,  including  those  involving  high-level  politicians  and  officials  as  well  as  cases  involving  the 
protection  of  EU  financial  interests.  SPAK’s  capacity  in  financial  investigations  has  increased  and  the 
systematic use of financial investigations and asset confiscations has improved. However, the number of 
referrals to SPAK from other authorities has decreased. Other bodies tasked with fighting corruption, in 
particular  the  General  Prosecution  Office  and  the  state  police,  still  face  challenges  in  detecting  and 
effectively investigating corruption (See also Chapter 24 – Justice, freedom and security).  

The  imminent end  of  vetting  of all  judges  and  prosecutors  at first  instance is  a  major  milestone  with a 
positive  impact  on  fight  against  corruption  in  the  judiciary.  Of  the  more  than  798  magistrates  that 
underwent vetting since 2017 out of 805, so far 56 % have been dismissed from office, mostly for issues 

30 

 
 
     
 
 
 
related to unjustified assets, or resigned.  7 remaining cases as of 21 October are expected to be finalised 
timely.  Another  direct  outcome  of  vetting  was  registered  in  September,  as  the  IQC  referred  19  vetting 
cases with prima facie criminal elements to SPAK for judicial follow up, thus following up on a key issue 
identified in last year’s report. 

In April 2024, Albania passed a law granting amnesty to approximately 700 prisoners and reducing the 
sentence  of  over  400  individuals,  including  mid-level  officials,  deputy  mayors  and  secretary-generals 
convicted of corruption. A total of 40 individuals convicted by SPAK courts received a full pardon, and 
65 individuals had their sentence reductions reduced under this law. In addition, 12 people under SPAK 
mandate  have  benefitted  from  amnesty  for  criminal  prosecution  and  their  case  has  been  dismissed. 
Albania should abstain from any action, including amnesty legislation, which has a negative impact on 
SPAK’s  fight  against corruption.  The  number  of  whistle-blower reports remains  low.  During  2023,  the 
HIDAACI reviewed 13 new whistle-blower reports and one request for protection against retaliation, and 
an administrative fine was imposed in 11 cases. 

The perception among the public, experts and businesses is that there is a high level of corruption in the 
public sector. This perception has remained relatively stable in recent years. 

Institutional framework 

The institutional framework for the fight against corruption is in place. Its preventive measures need to be 
improved, and there are issues with its law enforcement aspects. 

The  new  position  of  the  Minister  of  State  for  Public  Administration  Reform  and  Anti-Corruption  was 
established in January 2024. The Minister acts as the National Coordinator against Corruption. Her role 
includes supervising the activities of the General Directorate for Anticorruption (GDAC). However, the 
GDAC faces challenges with its efficiency. In June 2024, the Council of Ministers adopted a decision to 
transfer  officially  the  GDAC  from  the  Ministry  of  Justice  to  the  Ministry  of  State  for  Public 
Administration  and  Corruption.  This  decision  has  not  helped  tackle  existing  challenges,  especially  the 
need  to  strengthen  the  GDAC’s  preventive  functions  and  capacity.  This  particularly  concerns 
implementing  the  strategic  framework  effectively,  paying  more  attention  to  those  sectors  vulnerable  to 
corruption,  reviewing  the  anti-corruption  coordinators’  capacity  and  roles,  and  ensuring  effective 
coordination between institutions, including at local level.  

The efficiency of HIDAACI remained constrained. The thorough verification of assets, especially those 
owned  by  private  entities  or  concealed  through  proxy  ownership  arrangements,  is  hindered  by  the 
administrative boundaries of HIDAACI’s mandate, which limits investigative acts and excludes proactive 
investigations.  This  limitation  is  particularly  relevant  when  it  comes  to  verifying  assets  that  may  be 
concealed  through  private  entities  or  proxy  ownership  arrangements.  Between  September  2023  and 
March 2024, 18 cases were referred by HIDAACI to law enforcement. The declarations of assets are not 
public  published  and  are  only  provided  on  request  to  registered  users,  despite  legal  requirements  on 
making them public. 

Public  officials’  awareness  of  ethical  standards  and  how  they  are  enforced  needs  to  be  improved.  The 
quality  and  implementation  of  integrity  plans,  established  at  central  and  local  levels,  remains  weak 
overall. Concerns remain about the role of the Agency for co-governance and contact with the public in 
effectively assessing citizens’ complaints. 

The state police remain highly vulnerable to corruption, and accountability remains weak, despite some 
anti-corruption  efforts.  An  integrity  verification  process  within  the  police,  including  the  compulsory 
declaration  on the  use  by police  staff  of  specific  encrypted  tools  to communicate  with  organised  crime 
groups, was introduced as of December 2023, following revelations that showed a high level of criminal 
infiltration and corruption in police ranks. In 2023, the Police Oversight Agency continued to receive a 
high  number  of  complaints  (over  5 000), resulting in 95  disciplinary  investigations  and  342 individuals 
referred to prosecution. 

31 

 
 
Strategic documents 

The  strategic  documents  were  not  in  place  in  the  reporting  period.  The  cross-sector  Anti-Corruption 
Strategy for 2015-2023 and the latest action plan for 2020-2023 expired in December 2023. The adoption 
of a new Anti-Corruption Strategy for 2024-2030 and action plan for 2024-2026, is planned for the end of 
2024.  The  draft  strategy  pays  special  attention  to  vulnerable  sectors  such  as  land  and  property 
management,  state  cadastre,  health,  education,  customs,  tax,  and  public  procurement,  and  puts  an 
emphasis on integrity education for young people and incorporates relevant GRECO recommendations. 
However,  the  draft  strategy  has  some  weaknesses,  notably  on  monitoring  mechanisms  and  institutional 
coordination.  

Legal framework 

The legal framework for the fight against corruption is largely in place, but preventive measures and law 
enforcement  need  to  be  improved  institutional  roles  and  coordination  for  prevention.  The  framework 
needs  to  be  revised  to  extend  the  powers  of  the  SPAK  courts  to  matters  related  to  executing  their 
judgments.  Albania’s  legal  framework  needs  to  be  fully  aligned  with  the  EU  acquis  and  European 
standards,  especially  in  the  areas  of  conflict  of  interest,  financing  of  political  parties,  donations  and 
sponsorships,  whistle-blower  protection,  the  fight  against  fraud,  and  seizure  of  assets  and  their 
confiscation. Rules on interaction between high-level officials and lobbyists need to be put in place as do 
rules  on  post-employment  restrictions  that  apply  both  to  members  of  the  Council  of  Ministers  and  to 
political  advisers.  These  rules  also  need  to  be  effectively  enforced.  Albania  needs  to  promptly  and 
effectively address the outstanding recommendations of the Council of Europe’s Group of States against 
Corruption (GRECO).  

Fundamental rights  

General framework 

The general framework for fundamental rights needs to be improved. 

International human rights instruments 

500
400
300
200
100
0

Albania  is  party  to  the  main  international  human  rights  instruments.  The  country  has  not  signed  the 
Optional  Protocol  to  the  International  Convention  on  Economic,  Social  and  Cultural  Rights.  Albania 
needs  to  develop  a  comprehensive  monitoring  and 
level  of 
data  collection  system 
implementation of human rights legislation, policies, 
and strategies. Albania continued to benefit from its 
observer  status  at  the  European  Union  Agency  for 
Fundamental Rights (FRA).  

Graph 8: Albania - ECtHR judgments 

to  assess 

the 

101

179

389

313

32

29

10

9

European Court of Human Rights 

New
allocated
applications

Judgments Breaches

Pending
applications

the  reporting  period, 

Albania  continues  to  ensure  good  cooperation  with 
the  European  Court  of  Human  Rights  (ECtHR). 
During 
the  Court  found 
breaches  of  the  European  Convention  on  Human 
Rights 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.  Albania  faces  challenges  in  implementing  ECtHR  judgments.  There  are 
currently  16  cases  under  enhanced  supervision  by  the  Committee  of  Ministers,  more  than  double  the 
figure of 2023 (7 in 2023). Albania needs to make efforts to address systemic or structural issues raised 
by the Court, including as regards enforcement of ECtHR judgments in the Strazimiri v. Albania case, on 
the  inhumane  and  degrading  treatment  of  forensic  psychiatric  patients  and  prisoners  with  mental 
disorders. Albania has yet to clarify existing remedies to address unlawful expropriation and demolition 
of property in Sharxhi and others v. Albania case.  

16.06.2023 - 01.09.2024
Source: ECtHR

16.06.2022 - 15.06.2023

32 

 
 
Promotion and enforcement of human rights 

800

1400

1200

1000

1259

affecting 

Graph 9: Albania - Promotion and enforcement of human 
rights 

Effective enforcement of human rights is challenging, especially on the right to property and children’s 
rights.  The  Ombudsperson 
(People’s 
Advocate) 
continued  to  exercise  its 
mandate 
satisfactorily; 
however,  staff  shortages 
persist, 
the 
functioning  of  its  regional 
offices.  Blockages,  delays 
and the politicisation of the 
parliamentary  appointment 
of 
the  Ombudsperson 
remains  a  concern  and 
urgently 
need 
be 
the 
addressed.  Overall, 
implementation  rate  of  the 
recommendations 
issued 
by 
the  Ombudsperson 
remains  low.  To  improve 
and 
transparency 
the 
accountability, 
Ombudsperson 
should 
publish  their  annual  report 
before presenting it to Parliament. 

Complaints
Decisions
Recommendations to the authorities
Implementation of the recommendations by the authorities (% of the total)

Main themes: People's advocate  - property, the right of children, protection of  Roma community rights, respect of the rights of 
persons  deprived  of  liberty;  Equality  body  -  discrimination  on  grounds  of  disability,  ethnicity,  political  beliefs,  economic  status, 
health status, age, sexual orientation, in the fielsd of employment, education, goods and services, health, housing, transports. 

In 2023, the recommendations of the People's advocate were fully implemented for 6% 
and partially implemented for 41%.

Source: : Albanian Ombudsperson

People's advocate

Equality body

2022

2022

2023

2023

to 

266

280

253

200

400

600

47

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

3

4

0

Prevention  of 
treatment 

torture 

and 

ill-

and 

the  main 

Albania  generally  complies  with  its 
obligations  on  the  prohibition  of 
torture 
ill-treatment.  The 
government adopted an action plan to 
address 
findings  and 
recommendations  of  the  European 
Committee  for  the  Prevention  of 
Torture  and  Inhuman  or  Degrading 
Treatment  or  Punishment 
(CPT) 
January  2024.  The 
report  of 
the  National 
functioning 
is 
Preventive 
satisfactory;  however,  the  follow-up 
of its recommendations remains low. 
Conditions  for  prisoners  with  mental  health  issues  and  forensic  patients  are  a  serious  concern  due  to 
overcrowding, a lack of medical and therapeutic staff 
and inadequate facilities. 

Mechanism 

of 

Graph 11: Albania - Prisons

Execution of criminal sanctions 

100

89

88

85,9

Despite  some  progress,  corruption,  poor  healthcare 
and a shortage of staff in the penitentiary system and 
detention centres remain a concern. Three out of 20 

33 

80

60

40

20

0

8,5

8,25

n/a

Occupancy rate (%)

Average duration of pre-
trial detention (months)

2022

2023

2024

n/a: not available 

Source: General Directorate of Prisons 

 
 
prisons are overcrowded. . The probation service is operational and offers alternatives to imprisonment, 
including for juvenile offenders. However, prevention and rehabilitation need to be improved. The use of 
electronic  monitoring  has  been  suspended  since  2017.  Special  attention  should  be  paid  to  the 
deradicalisation of prisoners. 

Protection of personal data 

394

400

500

Graph 12: Albania - Data protection

Legislation on the protection of personal data needs to be aligned with the EU acquis. Concerns remain 
about the handling of personal data by private companies and public administrations as well as about the 
weaknesses  of  government  IT  systems.  Robust  safeguards  are  needed  to  prevent  breaches  of  personal 
data.  Further  action  is  needed  to  increase  public  awareness  about  potential  risks  and  increase  public 
institutions’ 
preventive 
capacity.  The  capacity  of  the 
Office  of the  Information and 
Data 
Protection 
Commissioner  (IDP)  needs  to 
be  strengthened.  The  IDP  is 
systematically  consulted  on 
draft legislation that can affect 
however, 
personal 
data; 
implementation 
its 
of 
recommendations  is  low.  The 
law  needs  to  fully  safeguard 
the  independence  of  the  IDP 
to  adopt 
and  empower 

2024
Source: Data protection authority (IDP)

Declarations of
data breaches

Administrative
sanctions

Complaints
received

Inspections

Decisions

2023

2022

200

100

300

162

370

it 

48

19

64

63

17

24

47

1

0

0

4

0

1

binding decisions. 

Freedom of religion or belief 

Freedom of thought, conscience and religion is generally upheld in Albania.  

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

Freedom of expression  

Protection of journalists 

The  framework  for  the  protection  of  journalists  is  in  place,  but  verbal  and  physical  attacks  and  smear 
campaigns continued. The use of strategic lawsuits against public participation (SLAPP) increased to 73 
reported cases in 2023 (up from 42 in 2022). In 2023, media freedom organisations reported 24 cases of 
violations  of  journalists’  safety,  and  26  up  to  the  end  of  September  2024.  A  solid  track  record  of 
prosecution and judicial follow-up has yet to be established to safeguard the safety of journalists. 

Legislative environment 

No progress was made in aligning the legislative framework with the EU acquis and European standards, 
including  the  Media  Freedom  Act.  Similarly,  there  was  no  progress  in  addressing  major  challenges 
hampering  media  independence,  in  particular  high  market  concentration  and  the  transparency  of  media 
ownership,  financing  sources  and  economic  interests,  including  public  funding.  Defamation  is  still  a 
crime punishable by particularly high criminal fines. The civil law provisions on publishing fraudulent or 
inaccurate information need to be aligned with European standards. The Criminal Code does not provide 
for special protection for journalists against violence, attacks or threats while exercising their profession. 
The legal framework also does not provide for safeguards against SLAPP. It is essential that any change 
to the legal framework be in line with European standards, including the Venice Commission opinions, 

34 

 
 
and be subject to extensive consultations with media organisations and civil society based on a structured 
and inclusive dialogue. 

The  Law  on  access  to  information  is  broadly  aligned  with  European  standards;  however,  shorter  and 
binding deadlines for answers to journalists need to be set based on best European practices. 

Implementation of legislation/institutions 

The independence of the Audio-Visual Regulatory Authority (AMA) is not guaranteed due to the risk of 
political  and  corporate  influence  on  the  appointment  procedures  of  AMA  board  members,  the  political 
affiliation of the AMA chair and board members and shortcomings in enforcing the Broadcasting Code on 
media outlets that air pre-recorded political content during electoral campaigns.  

In April 2024, the Parliament established an ad hoc parliamentary committee on tackling disinformation 
and foreign interference, without the support of the opposition. It remains important that this committee 
ensures  a  comprehensive  approach,  and  that  resulting  legislation  is  fully  aligned  with  EU  acquis  and 
European standards, including as regards freedom of expression. 

 Implementation of the Law on access to information is weak, in particular due to an overall institutional 
culture of withholding and delaying replies to answers, which affects journalists disproportionately. 

Public service broadcaster 

The independence of the public broadcaster is not guaranteed and needs to be strengthened. This is due to 
the risk of political influence on the appointment of the management, including the Director General, who 
previously was a Member of Parliament and Secretary for Relations with Media and Civil Society of the 
ruling party. In March 2024, concluding a process which had been ongoing for 2 years, Parliament filled 
the  remaining  vacancy  in  the  public  broadcaster’s  steering  board  with  cross-party  consensus,  thus 
ensuring its full membership. In September 2024, the Director General resigned from his position.  

Economic factors 

Media  independence  continues  to  be  negatively  influenced  by  the  overlap  of  political  and  businesses 
interests in terms of funding and content and high ownership concentration. High-profile business groups 
further  increased  their  economic  penetration  in the  media market  during the reporting  period, and their 
strong  links  to  political  interests  are  a  serious  concern.  Albanian  law  provides  for  limited  transparency 
rules requiring the disclosure of company ownership. This is only applicable to the audiovisual and print 
media – online media are not subject to any ownership restrictions. The Law on audiovisual media lays 
down  limited  safeguards  against  the  concentration  of  media  ownership  and  monopolies.  The  legal 
framework  does  not  set  out  any  clear  rules  on  the  distribution  of  public  sector  advertising  in  line  with 
international  standards,  and  its  implementation  is  not  transparent.  The  state  advertising  procurement 
procedure  allows  sub-contracting  in  a  way  that  enables  the  open  and  competitive  standards  set  out  in 
public procurement rules to be circumvented. 

Internet 

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. The 
cybersecurity  capacity  of media  outlets is  generally weak.  Several  cyberattacks  against the media  were 
reported during the reporting period. 

Professional organisations and working conditions 

Limited job security and poor working conditions for journalists pose serious challenges in terms of self-
censorship,  pressure  from  politicians  and  reduced  resistance  to  disinformation.  Journalists  working  in 
local media,  young  journalists  and female journalists are more  vulnerable to  these  challenges.  In  2023, 
media  employees  filed  26  complaints  with  the  State  Labour  Inspectorate  against  five,  bodies.  The 
complaints  were  primarily  related  to  unpaid  salaries,  unpaid  overtime,  holiday  work  and  wrongful 

35 

 
 
termination  of  employment.  More  than  140  journalists  and  media  workers  have  been  laid  off  by  the 
General  Director  of  the  public  broadcaster  from  June  2023  till  June  2024.  In  response  to  a  freedom  of 
information  request  by  civil  society,  the  State  Labour  Inspectorate  disclosed  that  it  issued  six  formal 
warnings to the public broadcaster for violations of labour and social insurance legislation.  

Journalists  face  serious  hardships  in  terms  of  limited  financial  and  human  resources  and  the  limited 
possibility  to  set  up  effective  cooperation  with  the  government  to  promote  the  interests  of  independent 
media.  Self-regulation  is  negatively  affected  by  limited  resources  and  a  polarised  media  landscape  and 
needs  to  be  further  strengthened.  The  Alliance  for  Ethical  Journalism,  a  group  that  brings  together 
stakeholders (including from online outlets), acts as self-regulatory body for the media and is committed 
to rigorously implementing the Code of Ethics among its members. 

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

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. 

Property rights 

The overall enjoyment of property rights is limited. Some steps have been taken on the digitalisation of 
ownership  titles  and  cadastral  maps,  but  without  improvements  to  the  low  quality  of  data.  However, 
significant challenges persist, including widespread corruption in service delivery. Albania must intensify 
efforts to revise internal procedures,  correct  cadastral  data, finalize  pending legalisations, and complete 
compensation  for  properties  expropriated  during  the  communist  era.  A  thorough  risk  assessments  and 
implementing  a  comprehensive  integrity  plan  at  the  State  Cadastre  Agency  remains  essential. 
Legalisation,  expropriation  and  demolition  of  buildings  must  strictly  comply  with  existing  legal 
frameworks, including the principles of transparency and due judicial process. 

Non-discrimination 

The legal and institutional framework for non-discrimination remains partially aligned with the EU acquis 
and  European  standards,  including  on  combating  racism  and  xenophobia.  The  Commissioner  for 
Protection from Discrimination (CPD) continued to exercise its mandate satisfactorily, but staffing levels 
remain  insufficient  and  need  to  be  ensured.  In  2023,  the  CPD  continued  to  handle  a  stable  number  of 
cases, mostly in the areas of employment and services. Delays in the parliamentary appointment of the 
CPD are of concern. Implementation of sectoral non-discrimination action plans needs to be improved.  

Hate  speech  remains  a  serious  concern.  Laws  on  hate  speech  are  in  line  with  European  standards; 
however, better enforcement capacity and greater awareness-raising are needed, particularly in rural and 
remote areas. In 2023, the CPD handled six cases of hate speech, including on the grounds of race, gender 
and sexual orientation, confirming hate speech in two of the cases. In 2024, the CPD handled two new 
cases,  which  are  both  under  review.  Additional  training,  awareness  and  capacity-building  about  hate 
crime is needed among law enforcement and justice professionals. The collection of data and statistics on 
hate crime is yet to be fully ensured. A total of 11 cases of hate crime were reported to the police in the 
reporting period. 

Gender equality 

The  legal  and  institutional  framework  for  gender  equality  is  partially  aligned  with  the  EU  acquis  and 
European  standards.  Weaknesses  remain  in  implementing  the  National  Strategy  for  Gender  Equality 
2021-2030  and  its  Action  Plan,  which  focus  on  overlapping  forms  of  discrimination  and  vulnerability. 

36 

 
 
Women  living  in  rural  and  remote  areas,  Roma5  and  Egyptian  women  and  LGBTIQ  individuals  face 
limited access to primary healthcare and to sexual and reproductive healthcare services. The application 
of  gender  responsive  budgeting  continued  in  2023,  with  48  out  of  75  budget  programmes  in  11  line 
ministries and Central Institutions4 central institutions assessed to be gender responsive.  

5367

5198

5448

Graph 13: Albania - Violence against women 
(including domestic and sexual violence)

The legal framework for gender-based 
violence  is  not  fully  aligned  with  the 
Istanbul  Convention.  Violence  against 
women  and  girls  remains  a  pressing 
issue  that  needs  to  be  addressed.  The 
continued  high  number  of  femicides 
per  capita  is  still  a  serious  concern. 
Enforcement  by  police  of  protection 
orders  remains  inefficient,  resulting  in 
impunity  of  violence.  The  weak 
accountability  of  police  in  handling 
cases  of  violence  against  women  is  a 
concern.  The  Ombudsperson  set  up  a 
Femicide Watch to report and monitor 
cases of femicide. Support services for 
victims  of  violence  continue  to  be 
donor-driven  and  insufficient,  particularly  in  healthcare,  the  funding  of  shelters,  free  legal  aid,  and  the 
reintegration and rehabilitation of victims of violence. 

Violence against women
2022
2021

6000
5000
4000
3000
2000
1000
0

Source: Ministry of interior, Ministry of Justice

Final criminal
convictions

Police reports

Femicides

2023

809

873

899

13

11

8

Rights of the child 

The legal and policy framework for the rights of the child is broadly aligned with international standards, 
but implementation remains challenging despite some progress. Only 39% of the measures in the 2021-
2026  National  Agenda  on  the  Rights  of  the  Child  (NARC)  were  fully  implemented.  Coordination 
mechanisms  need  to  be  significantly  improved  in  the  areas  of  child  trafficking,  cybercrime,  child 
marriage, child sexual abuse and the right to healthcare and education. No progress was made on child-
friendly  justice.  The  laws  to  protect  minors  from  child  marriage  are  generally  ineffective  or  applied 
inconsistently, even though child marriage is a priority budgeted in the national policy framework and the 
2021-2026  NARC  sets  out  objectives  and  measures  to  combat  this  practice.  Child  poverty  remains 
prevalent, and measures taken fall short of effectively addressing it. Despite policies that are consistent 
with  international  standards  on  child  labour,  domestic  child  trafficking  and  forced  begging  have 
continued, particularly during the tourist season. A national deinstitutionalisation plan and its economic 
reform  programme  are  in  place  but  have  not  been  implemented  effectively.  According  to  international 
organisations,  in  2023,  children  made  up  66%  of  all  potential  and  actual  victims  of  human  trafficking, 
65% of whom were girls, mostly from Roma and Egyptian communities. Violence and sexual violence 
against  children,  including  online,  remains  a  critical  area  of  concern.  In  2023,  Child  Protection  Units 
managed  2163  cases  of  children  in  need  of  protection  (mainly  involving  children  at  risk  or  victims  of 
violence,  abuse,  neglect  or  exploitation).  The  number  of  child  protection  workers  (241  in  all  61 
municipalities) is far below the total number needed. 

Persons with disabilities 

The  legal  and  institutional  framework  for  persons  with  disabilities  is  partially  compliant  with  the  EU 
acquis.  Albania’s  framework  legislation  on  the  rights  of  persons  with  disabilities  is  only  partially 
compliant  with  the  UN  Convention  on  the  Rights  of  Persons  with  Disabilities  (UNCRPD),  and  the 

5 In line with the terminology of European institutions, the umbrella term ‘Roma’ is used here to refer to a number of different 
groups, without denying the specificities of these groups. 

37 

 
 
 
country has not ratified the Optional Protocol to the UNCRPD. Action is needed to tackle discrimination 
against  persons  with  disabilities,  improve  accessibility  overall  and  boost  opportunities  in  employment, 
education  and  participation  in  political  and  public  life.  The  quality  of  education  for  children  with 
disabilities, especially children with a hearing impairment, continues to cause concern. There has been no 
progress on deinstitutionalisation, which needs to be dealt with urgently. The implementation of the 2023 
reform  of  the  biopsychosocial  assessment  has  raised  concerns  about  its  negative  impact  on  the  amount 
paid with the title of disability benefits. 

LGBTIQ persons 

The  legal  and  institutional  framework  for  lesbian,  gay,  bisexual,  transgender,  intersex  and  queer 
(LGBTIQ) persons is partially aligned with the EU acquis and European standards. Albania does not have 
legislation  recognising  civil  cohabitation  or  same-sex  marriage.  Most  of  the  LGBTIQ  National  Action 
Plan  2021-2027  has  yet  to  be  implemented.  The  adoption  of  the  medical  protocol  for  transgender  and 
gender diverse persons is a positive step in facilitating the right to healthcare for transgender and gender 
diverse  persons,  but  implementation  not  adopted  yet  and  corresponding  legal  changes  still  need  to  be 
ensured, including the revision of legal rules on changes to identity documents. The 13th Tirana Pride took 
place  peacefully  on  25 May  2024.  Discrimination  against  LGBTIQ  persons  is  still  very  prevalent, 
especially  in  access  to  healthcare,  education,  justice,  employment  and  housing.  As  an  observer  to  the 
work of the European Union Agency for Fundamental Rights, Albania was covered by the III LGBTIQ 
Trust Survey, which found that overall, in Albania in 2023, 51% felt discriminated against in at least one 
area of life in the year before the survey (for the EU-27 it was 37%). 

Procedural rights and victims’ rights 

Albania’s legal and institutional framework for  procedural rights and victims’ rights  is partially aligned 
with the EU acquis. The legal framework for legal aid is comprehensive, and primary and secondary legal 
aid  are  delivered  at  central  and  local  levels.  A  new  cross-cutting  Strategy  for  the  Protection  of  Crime 
Victims 2024-2030 was approved through a decision of the Council of Ministers. However, shortcomings 
remain  regarding  sufficient  budget  and  coordination.  There  was  no  progress  in  addressing  remaining 
issues  related  to  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,  ensuring  effective  remedies.  are  available.  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 ban  on 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.  Albania is  not  aligned  with  the 
acquis  on  victims’  rights. The  Government  has approved the  national  Strategy for  “Victim  protection”, 
which  also  sets  clear  timelines  for  alignment  with  the  EU  acquis.  Budgetary  support  for  victims  and 
victim compensation are still largely insufficient and needs to be enhanced.   

Protection of minorities 

The  legal  framework  for the  protection  of  minorities  is  generally  aligned  with  European  standards,  but 
remaining implementing legislation need to be adopted on the crucial issues of free self-identification of 
national minorities and the use of minority languages, in line with European standards and should be open 
to wide public consultation. Implementation of the legal framework remains weak overall. The FCNM’s 
Advisory Committee noted that national minorities have limited opportunities for political participation, 
particularly  at  national  level,  and recommended reviewing  the  procedures for  selecting  the members  of 
the  Committee  on  National  Minorities.  The  national  population  and  housing  census  was  completed  in 
October  2023,  and  the  preliminary  results,  including  as  regards  self-declared  ethnic  identity,  were 
published in June 2024. 

Roma 

38 

 
 
Overall,  access  to  education  for  the  Roma  community  continues  to  be  problematic,  and  segregation  in 
schools is still an issue. The overall employment rate of Roma and Egyptians remains very low. Access to 
health services and personal documents has been improving for both communities. There has been poor 
implementation  of  the  national  action  plan  for  equality,  inclusion  and  participation  of  Roma  and 
Egyptians  in  Albania  (2021-2025)  and  the  Poznan  commitments.  The  institutional  capacity  of  the 
Ministry  of  Health  and  Social  Protection,  which  coordinates  Roma-related  policies,  remains  weak. 
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. 

2.2.2 

Chapter 24: Justice, freedom and security  

The  EU  has  common  rules  for  border  control,  visas,  external  migration  and  asylum.  Schengen 
cooperation  entails  the  lifting  of  border  controls  inside  the  EU.  There  is  also  cooperation  in  the  fight 
against organised crime and terrorism, and judicial, police and customs cooperation. 

Fight against organised crime 

Albania has continued to work on aligning its legal framework on organised crime with the EU acquis. 

Institutional set-up and legal alignment 

Albania  is  partially  aligned  with  the  EU  acquis  in  the  field  of  police  cooperation  and  the  fight  against 
organised crime. Implementation of the 2021-2025 strategy against organised and serious crimes and the 
2023-2025 action plan is ongoing. Monitoring reports should be made public and discussed to help steer 
implementation. A new Law on the Albanian State Police was adopted in July 2024. A draft law on the 
establishment  of  an  Asset  Recovery  Office  has  been  through  public  consultation  in  March  2023.  The 
Law should be adopted without delay, and should also taking into account the latest EU directive on asset 
recovery and confiscation. 

In 2023, Albania carried out a comprehensive analysis of the  small  arms and light weapons (SALW) 
legislation in view of alignment with the EU Firearms Directive, which is ongoing. Albania should adopt 
a  national  SALW  strategy  aligned  with  the  revised  Roadmap  for  the  control  of  SALW  in  the  Western 
Balkans (2025-2030). Albania has a national serious and organised crime threat assessment (SOCTA) to 
guide its operational activities, and it reports on progress every 2 years. 

The High Prosecutorial Council (HPC) appointed in March 2024 and July 2024 additional prosecutors to 
SPAK, which now has all of its 20 special prosecutors. 

The  financial  investigation  unit  of  the  Special  Prosecution  Office  (SPO)  started  operations  after  the 
recruitment of 12 investigators in 2023. The establishment of the Judicial Police Services in the National 
Bureau of  Investigation (NBI)  is  pending  the  appointment  of the  NBI  Deputy-Director.  The  number  of 
databases to which the SPO and NBI have direct access has increased; they now include customs, social 
insurance and tax databases. However, further improvements in analysis capabilities are needed. 

District  prosecution  offices  were  given  more  responsibilities.  However,  these  offices  lack  the  staff, 
training and resources that are required to improve criminal analysis capacity in complex criminal cases. 

New legal acts and implementing legislation on cybercrime have yet to be adopted. The criminalisation 
of all forms of online child sexual abuse is pending. 

The  legal  framework  for  trafficking  in  human  beings  is  partially  aligned  with  the  EU  acquis.  It  will 
need  to  be  reviewed  in  line  with  amendments  to  Directive  2011/36/EU  on  preventing  and  combating 
trafficking in human beings and protecting its victims. 

On international police cooperation, in 2023, a total of 53 international police operations were  carried 
out, 37 fewer than in the previous year. There was a 32.2% increase in messages shared by the Albanian 

39 

 
 
State Police (ASP) with international partners via the Secure Information Exchange Network Application 
(SIENA). The number of SIENA users increased, and the Financial Intelligence Unit obtained access to 
SIENA, meeting an outstanding recommendation. 

Albania  remains  an  active  participant  in  the  European  Multidisciplinary  Platform  against  Criminal 
Threats (EMPACT) with 115 operational actions carried out in 2023 (119 in 2022). The country was an 
action leader in two of the actions and co-leader in an additional two. Albania actively participated in the 
INTERPOL I-24/7 system with 26.7% more joint operations compared with 2022. 

Cooperation between Albania and the European Union Agency for Law Enforcement Training (CEPOL) 
continues, but Albania should make more use of it. The revision of the Security Academy agreement with 
CEPOL is ongoing. 

Albania continued to strengthen the fight against money laundering. In December 2023, an inter-agency 
working group was set up to draft the 2024-2030 National Strategy for the prevention of against money 
laundering  and  terrorism  financing,  which  was  approved  in  July  2024  (See  also  Chapter  4  –  Free 

Graph 14: Albania - Serious* and organised crime cases

2129

1373

1820

1856

799

877

757

592

84

85

94

95

114

100

178

190

109

100

337

160

1209

1013

1292

1183

2500

2000

1500

1000

500

0

2021

2022

2023

2021

2022

2023

Organised crimes

Serious crimes

Number of individuals / legal entities under Investigation
Individuals / legal entities indicted
Final court decision
Final convictions

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

*Data on serious crime cases stem from the aggregation of cases of money laundering, cybercrime, production and trafficking of drugs, 
firearms related offenses, terrorism, trafficking in human beings and smuggling of persons. Corruption cases are showcased in Chapter 
23. 

2025 is yet to be adopted.  

movement of capital). 

investigation 
Criminal 
analysis 
and 
methodologies need to be 
strengthened. 
Albania 
needs  to  increase  use  of 
preventive  seizure  and 
confiscation of assets as a 
preventive 
measure, 
including non-conviction-
based  confiscation  and 
third-party confiscation. 

Albania  must  develop  its 
capacity 
investigate 
to 
cybercrime  to  meet  the 
EU’s 2022-2025 priorities 
for  EMPACT.  As  part  of 
the 
National 
Cybersecurity  Strategy,  a 
new action plan for 2024-

The national action plan for the fight against trafficking in human beings (2024-2025) was adopted in July 
2024. Albanian authorities need to strengthen their capacity to detect, investigate and prosecute traffickers 
of human beings and fully implement the National Referral Mechanism for victims of trafficking. 

Financial investigations do not systematically accompany criminal proceedings from the beginning, and 
their effectiveness remains limited. The police and prosecutors’ financial investigation techniques needs 
to be improved. Asset seizures drastically fell in 2023. Albania reported about EUR 21 million worth of 
seized assets (compared with EUR 46 million in 2022). Asset confiscation increased in 2023 to EUR 11 
million, compared with  EUR 5.8 million in 2022, showing a more consistent ratio between seizure and 
confiscation. In the first seven months of 2024, Albania reported close to EUR 16 million worth of seized 
assets and close to EUR 4 million worth of confiscated assets.  

There is no strategic or systematic approach to identifying and confiscating criminal assets that are abroad 
or  unreachable.  Albania  should  implement  rules  on  extended  confiscation  and  precautionary  asset 
freezing to prevent the assets losing any of their economic value.  

40 

 
 
The piloted reuse of confiscated assets for social purposes has been largely ineffective, as the state agency 
fails to allocate suitable assets, and social enterprises do not receive meaningful tax benefits. 

Cooperation in the field of drugs 

Cooperation in the field of drugs needs to be improved. 

Institutional set-up and legal alignment 

Albania is partially aligned with EU acquis in the field of drugs. 

Albania does not have a dedicated national drugs strategy. Security aspects are covered by the strategy 
against  organised  crime  and  serious  crimes  (2021-2025)  and  its  action  plans.  Drug  demand  and  harm 
reduction are mainly addressed in the National Health Strategy 2021-2030 and a dedicated Action Plan 
2023-2026.Action plans on the prevention and suppression of the criminal activity of cultivating narcotic 
plants are developed by the ASP. The latest one was adopted in January 2024. 

Albania  has  not  yet  set  up  a  national  drugs  observatory  and  a  national  early  warning  system  on  the 
detection  of  new  psychoactive  substances.  These  are  crucial  prerequisites  for  an  evidence-based  and 
effective policy on drugs. 

The Law on narcotic drugs and psychotropic substances was amended in December 2023. 

On the legal cultivation of cannabis for medical and industrial purposes, Albania adopted three pieces of 
the  required  implementing  legislation  and  appointed  the  Director-General  of  the  National  Cannabis 
Control  Agency.  Albania  needs  to  ensure  that  mechanisms  are  in  place  to  effectively  prevent  cannabis 
from being diverted to unintended use. 

Implementation and enforcement capacity 

International  police  and  judicial  cooperation  are  well  established.  Albania  is  involved  in  the  EMPACT 
priorities, and most of the joint investigation teams in the field of narcotics were  set up, confirming last 
year’s trend. Overall, a total of 53 international operations were carried out during the reporting period, 

Graph 15: Albania - Cases related to production and 
trafficking of drugs

2000

1500

1000

500

0

1635

1236

1052

Number of
individuals / legal
entities under
Investigation

1155

1010

895

721

752

607

702

724

544

Individuals / legal
entities indicted

Final court
decision

Final convictions

2021

2022

2023

37 fewer than in 2023. 

Airborne remote sensing to detect 
and  monitor  cannabis  plantations 
continues  with  Italian  assistance. 
Improved  results  in  identifying 
and  destroying  plants  show  an 
increased  operational  capacity  of 
the  ASP  to  fight  illegal  cannabis 
cultivation.  Further  efforts  are 
needed  in  financial  investigations 
to  seize  and  confiscate  criminal 
assets  of  cannabis  traffickers  and 
improve 
identifying  Albanian 
criminal groups. 

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

Implementation  of  the  working 
arrangements with the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) requires 
better interinstitutional coordination and reporting capacity. 

There has been a decreasing trend in the detection of drug trafficking crimes, which has led to a reduction 
in the amount of confiscated drugs destroyed. 

Fight against terrorism 

The fight against terrorism is satisfactory overall. 

41 

 
 
Institutional set-up and legal alignment 

Albania’s  legal  framework  in  the  field  of  terrorism  is  partially  aligned  with  the  EU  acquis.  It  has  a 
comprehensive  legal  framework  for  preventing  and  combating  the  financing  of  terrorism.  The  level  of 
preparation in protecting critical infrastructure remains low. Albania also needs to align its legislation on 
explosive precursors with the EU acquis. 

Albania has a national coordinator for countering violent extremism. A deputy minister at the Ministry of 
the Interior is in charge of monitoring and coordinating strategic goals and measures on counterterrorism. 
Policy is  guided  by  the  strategy  for  the  prevention  of  violent extremism  and the  fight  against  terrorism 
(2023-2025)  and  two  related  action  plans.  The  government  has  not  allocated  sufficient  funds  to 
implement them. No tangible progress has been made in creating an interinstitutional working group  or 
body  to  deliver  joint  national  threat  assessments  and  create  a  threat-level  grading  system.  Albania  has 
made good progress in implementing the revised Joint Action Plan on Counterterrorism for the Western 
Balkans. The EU-Albania Counterterrorism Dialogue continued.  

Implementation and enforcement capacity 

The  general  terrorism  threat  level  remains  relatively  low.  Law  enforcement  and  justice  institutions  in 
charge  of  counterterrorism  work  professionally  and  effectively.  Albania  has  made  progress  in 
implementing  the  2023-2025  strategy  to  prevent  violent  extremism  and  fight  terrorism.  Albania 
continues to implement the Joint Action Plan on Counter-Terrorism for the Western Balkans. Preventive 
work at national and community levels is coordinated by the National Coordination Centre for Countering 
Violent  Extremism  (CVE  Centre).  Frequent  leadership  changes  and  high  staff  turnover  hamper  its 
effectiveness.  On  a  regional  level,  Albania  has  established  in  2023  a  regional  referral  mechanism 
responsible to identify and refer cases of radicalisation to the CVE Centre. ASP referred eight cases of 
criminal offences with terrorist intent to the SPO and the district prosecution offices in 2023, and at least 
13  cases  in  the  course  2024.  Two  people  sentenced  for  incitement  to  terrorism  benefited  from  reduced 
sentences under the criminal amnesty law adopted by Parliament in April 2024. 

The rehabilitation and reintegration of the 37 family members of foreign terrorist fighters repatriated from 
Syria  between  2020  and  2022  is  being  handled  effectively.  Authorities  should  reduce  their  reliance  on 
donor-funded activities, and an adequate budget for this work should be allocated to ensure sustainability 
in the medium and long term. The government is continuing its efforts to repatriate the remaining women 
and children from the Al-Hol and Al-Roj camps in Syria. 

Online  radicalisation,  radicalisation  in  prisons  and  terrorist  content  online  remain  major  challenges. 
Albania  also  needs  to  improve  its  ability  to  monitor  and  combat  the  financing  of  terrorism,  including 
through  non-profit  organisations.  There  has  also  been  an  increase  in  attempts  by  foreign  entities  to 
influence religious communities in Albania in recent years. 

Judicial cooperation in civil and criminal matters 

Judicial cooperation in civil  and  criminal  matters is broadly  satisfactory.  Judicial cooperation increased 
between 2021 and 2023 in both civil and criminal matters. The increase is for both outgoing and incoming 
requests. 

The number of joint investigation teams increased to 22 (19 in 2023). Most of the teams (13) continue to 
work in the field of narcotics. 

42 

 
 
 
2500

2000

1500

1000

500

0

Graph 16: Albania - Requests for mutual assistance in 
civil and criminal matters

2104

1230

1390

1027

1187

623

607

726

664

304

557

253

297

195

102

400

290

110

2021

2022

2023

2021

2022

2023

two 

the  European 
Cooperation  with 
Public  Prosecutor’s  Office  (EPPO) 
is  fully  in  place.  In  the  reporting 
representatives 
period, 
Albania’s 
active 
maintained 
participation 
the  Eurojust 
in 
regional  project  ‘Increasing  cross-
border  cooperation 
in  criminal 
justice  in  the  Western  Balkans’ 
(WB CRIM JUST). This has led to 
greater 
between 
interaction 
Western  Balkans  prosecutors  in 
coordinating their investigations. 

Civil

Incoming requests Outgoing requests

In  February  2024,  Albania  signed 
the  2005  Hague  Convention  on 
Choice  of  Court  Agreements  and 
the 2007 Protocol on the Law Applicable to Maintenance Obligations. Albania ratified both instruments 
in June 2024. 

Criminal
Total
Source: Ministry of Justice

Legal and irregular migration 

The management of legal and irregular migration is broadly satisfactory. 

Institutional set-up and legal alignment 

The legal framework for migration is partially aligned with the EU acquis and needs updating in line with 
the latest EU developments. Following the entry into force of the Law on foreigners in November 2021, 
30 pieces of implementing legislation have been adopted so far: 7 in 2023 and 4 in 2024. A revised draft 
Law on foreigners is in preparation. 

A  national  migration  strategy  (2024-2030)  was  adopted  in  May  2024,  accompanied  by  an  action  plan 
(2024-2026).  The  strategy  includes  the  main  priorities  and  goals  set  out  in  the  EU  action  plan  on  the 
Western Balkans. It is aligned with the cross-cutting integrated border management strategy (2021-2027), 
the  national  strategy  for  countering  organised  crime  and  serious  crime  (2021-2025),  and  commitments 
made under the EU’s Global Alliance to Counter Migrant Smuggling. 

Albania requested observer status in the European Migration Network in March 2023.  

Implementation and enforcement capacity 

Albania cooperated with the EU, its agencies and Member States in implementing the EU action plan on 
the  Western  Balkans.  Implementation  of  the  action  plan  and  efficient  border  surveillance,  and  controls 
conducted in cooperation with Frontex Joint Teams deployed at the Greek border helped steadily reduce 
the  number  of  irregular  migrants.  Around  28%  of  migrants  apprehended  in  2023  were  caught  multiple 
times. The nationalities arriving the most were Afghans, Syrians and Pakistanis. The authorities’ regular 
and timely reporting on irregular migration flows and asylum has improved. 

Albania currently has enough reception capacity with around 600 beds, including 220 beds in the asylum 
rreception centre in Babrru. There are no separate facilities for unaccompanied minors, except in for the 
Erseka  temporary  social  reception  centre.  The  case  management  of  unaccompanied  children  is  not 
handled  as  part  of  an  integrated  process.  Unaccompanied  children  need  to  be  included  in  an  effective 
national  child  protection  system,  and  pre-screening  procedures  at  all  border  crossings  need  to  be 
standardised. 

43 

 
 
12000

10000

8000

6000

4000

2000

0

Graph 17: Albania - Number of irregular movements 
through Albania

10062

8120

5366

4781

3030

1377

505

1325 857

1070 890 805

a
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S

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y
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l

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a
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y
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a
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2021

2022

2023
Source: Ministry of Interior

The updated national contingency 
plan  for  the  possible  arrival  of  a 
substantial  number  of  migrants 
and  asylum  seekers  still  needs  to 
a 
be 
corresponding budget. 

along  with 

adopted 

The  ability  of  border  officers  to 
identify  vulnerable  refugees  and 
migrants needs to improve as does 
their  coordination  with  child 
protection 
anti-trafficking 
units.  Albania  should  address  the 
shortcomings 
its 
return  mechanism  for  irregular 
migrants. 

identified 

and 

in 

Albania has a readmission agreement with the EU, which is functioning well, and implementing protocols 
with 12 Member States. In 2023, 17 425 Albanian nationals were ordered to leave the EU, and 7 810 were 
effectively  returned.  Development  of  the electronic  readmission  case  management  system (e-RCMS)  is 
ongoing. Cooperation between Albania and Frontex on return operations is very good. 

The reintegration of returnees, especially of the most vulnerable ones, needs to improve. 

The  number  of  third-country  nationals  voluntarily  returning  from  Albania  to  their  countries  of  origin 
remained very low: there were 9 in 2023 (and 6 in 2022). Albania approached several countries of origin 
to negotiate readmission agreements, but these efforts have been unsuccessful. 

A  protocol  on  migration  cooperation  between  Italy  and  Albania  was  signed  in  November  2023.  The 
protocol needs to be carried out in full compliance with EU and international laws. 

Asylum 

The legal framework is complete, but asylum management needs to be improved in practice. 

Institutional set-up and legal alignment 

The  Law  on  asylum  is  largely  aligned  with  the  EU  acquis.  Consultations  with  the  European  Union 
Asylum Agency (EUAA) on the guidelines for their implementation continue. 

300

250

200

150

100

50

0

Graph 18: Albania - Asylum Applications 

261

66

l

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T

21

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S

45

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18

k
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I

36

27

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161

125

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38

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2021

2022

2023

Source: Ministry of Interior

44 

Albania  has  the  required  institutions  in 
place to handle asylum claims. 

One  of  the  key  pillars  in  the  country’s 
migration  strategy  for  2024-2030  is  to 
protection 
international 
strengthen 
systems, guarantee the rights of asylum 
seekers  and 
refugees  and  provide 
sustainable solutions. 

laws 

still  need 

to  be 
Asylum 
implemented  effectively.  This  requires 
additional  investment  in  administrative 
capacity and the development of a well-
functioning asylum system. 

Implementation 

and 

enforcement 

 
 
capacity 

Albania remains primarily a transit country. Despite a significant drop in arrivals, the number of asylum 
requests more than doubled in 2023 compared with 2022. Out of all arriving migrants apprehended for the 
first time, 5.7% of them lodged an asylum request. 

Challenges persist in the capacity of Border and Migration Police to identify and refer people who could 
be in need of international protection. The Directorate for Asylum, Foreigners and Citizenship needs more 
technical capacity to assess asylum cases and make well-informed decisions. 

Since 2018, refugee status has only been granted to one person by Albania. 

Visa policy 

Albania’s  visa  policy  is  still  not  fully  aligned  with  the  EU’s,  in  particular  the  list  of  countries  whose 
nationals require an entry visa. Albania still has a visa-free regime with 13 countries that are on the EU 
list of visa-required countries, of which seven enjoy permanent visa exemption and six have a temporary 
visa  waiver  lasting  from  March  until  December  (this  latter  practice  is  incompatible  with  EU  acquis). 
Indonesia was added to this list of countries benefiting from a temporary visa waiver in March 2024. In 
May  2024,  Albania  partially  suspended  its  visa-free  waiver  with  Belarus  for  diplomatic  and  service 
passport  holders.  This  visa-free  regime  is  however  maintained  for  all  Belarus  holders  of  an  ordinary 
passport. In July 2024, Albania revoked its visa waiver with Guyana. As part of its Reform Agenda under 
the Growth Plan, Albania committed to further align with the EU-list of visa-required countries. 

The  Commission’s  October  2023  sixth  report  under  the  visa  suspension  mechanism  concluded  that 
Albania  had  taken  action  to  address  most  of  the  previous  recommendations.  According  to  Eurostat, 
Albanian  citizens  lodging  asylum  requests  in  EU  Member  States  fell  by  30%  in  2023  compared  with 
2022.  In  2023,  8.8%  more  Albanian  nationals  were  refused  permission  to  exit  Albania  compared  with 
2022. This can be attributed to the strengthening of border crossing controls and the implementation of 
certain legislation. 

Schengen and external borders 

Institutional set-up and legal alignment 

The legislative framework for the management of Albania’s external borders is not aligned with European 
standards.  The  Law  on  border  control,  which  brought  in  rules  on  advance  passenger  information  and 
passenger name records (PNR), is not aligned with the EU acquis.  

Implementation and enforcement capacity 

The entry into force in June 2024 of the new Frontex Status Agreement has allowed for the operational 
deployment across all of the country’s borders. 

Implementation  of  the  national  integrated  border  management  strategy  2021-2027  is  ongoing.  A 
successful implementation of Frontex Joint Operation Land and Albania Sea continued. In 2023, Albania 
conducted  1 127  joint  patrols  in  line  with  respective  protocols  with  Kosovo*,  Montenegro,  North 
Macedonia and Italy, 15% more than in 2022. 

The total information management system (TIMS) system still suffers from security and data protection 
vulnerabilities, and these need to be urgently addressed. 

Euro counterfeiting (criminal law aspect) 

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

45 

 
 
 
The  corresponding  legislation  is  broadly  in  line  with  the  EU  acquis  on  the  suppression  of  counterfeit 
currency. 

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

2.3. ECONOMIC CRITERIA 

2.3.1. The existence of a functioning market economy 

Economic governance 

Albania  continued  to  pursue  stability-oriented  economic  policies.  Fiscal  consolidation  continued  in 
2023, with a narrowed budget deficit, a positive primary balance, and a public debt ratio that continued to 
fall. In December 2023, the Parliament adopted the 2024 budget. However, in February and then again in 
August 2024, the Council of Ministers approved a normative act to amend the budget, which is against 
the  commitment  to  use  the  regular  legislative  process  for  budget  amendments.  The  Bank  of  Albania 
(BoA) tightened its monetary policy twice in 2023 and kept the key interest rates unchanged throughout 
the first half of 2024, before slightly lowering them in July. Albania submitted its  2024-2026 Economic 
Reform Programme (ERP) to the European Commission in mid-January 2024. The ERP emphasised the 
government’s  commitment  to  maintaining  macroeconomic  stability,  achieving  surpluses  in  the  primary 
balance and abiding to the fiscal rules set out in the organic budget law.  

Implementation  of  the  policy  guidance  set 
out  in  the  conclusions  of  the  May  2023 
Economic and Financial Dialogue has been 
partial. Fiscal guidance was implemented to a 
there  was  partial 
significant  extent,  and 
progress  on  reforms  to  strengthen  revenues. 
Albania  established  a  national  single  project 

46 

Table 1.1:202120222023Albania - Key economic figuresGDP per capita (% of EU-27 in PPS)1)30313435Real GDP growth 2.08.94.83.4Economic activity rate of the population aged 15-64 (%), total67.469.373.275.7      female59.061.466.869.6      male75.877.380.082.0Unemployment rate of the population aged 15-64 (%), total14.012.111.311.2      female13.612.411.711.3      male14.411.810.911.1Employment of the population aged 15-64 (annual growth %)2.7-0.44.81.6Nominal wages (annual growth %)2.86.38.214.0Consumer price index (annual growth %)1.72.06.74.8Exchange rate against EUR130.9122.5119.0108.8Current account balance (% of GDP)-7.8-7.7-5.9-0.9Net foreign direct investment, FDI (% of GDP)7.96.56.65.9General government balance (% of GDP)-3.0-4.6-3.7-1.4General government debt (% of GDP)70.574.564.559.2Notes: 1) EurostatSource: national sources2015-20 average 
 
 
 
pipeline  (NSPP),  but  still  needs  to  strengthen  the  procedures  for  project  appraisal  and  selection  and 
further integrate Public Private Partnerships (PPPs) into the NSPP. In October 2023, a Youth Guarantee 
scheme pilot was launched in three regions.  

Macroeconomic stability  

Albania’s  economy  registered  robust  and relatively  broad-based  growth.  After  contracting in  2020 
and  rebounding  strongly  in  2021  and  2022,  with  growth  rates  of  8.9%  and  4.9%  respectively,  the 
economy’s  expansion  slowed  down  but  remained  robust  at  3.4%  in  2023.  This  was  underpinned  by 
domestic  and  external  demand,  with  strong  services  exports  (mainly  linked  to  the  tourism  sector). 
Government spending was supported by sizeable wage increases on the back of the public sector wage 
reform,  but  growth  in  private  household  spending  decelerated  compared  to  previous  years.  Investment 
was  spurred  by  private  capital  formation,  including  high  inflows  of  foreign  direct  investment. 
Construction,  real  estate  and  services  were  the  main  drivers  of  growth  on  the  production  side.  Most 
economic  sectors  recorded  positive  growth,  but  agriculture  and  industry  registered  losses,  contributing 
negatively to GDP growth in 2023. These macroeconomic developments largely continued into the first 
quarter of 2024, with tourism continuing to perform well and real growth standing at 3.6%. Convergence 
with  EU  income  levels  had  stagnated  in  between  2015  and  2020  with  GDP  per  capita  (at  purchasing 
power parity) having remained at 30% of the EU average, before rising to 31% in 2021, 34% in 2022 and 
35% in 2023. 

The current account deficit was reduced 
significantly in 2023. It fell to the historic 
low  of  0.9%  of  GDP  in  2023,  down  from 
5.9%  in  2022  (and  the  average  was  7.7% 
for the period between 2017 and 2021). The 
reduction  was  driven  by  the  improvement 
in the balance  of  goods and  services  trade. 
Total export growth was driven by services, 
which grew  by  21%  (offsetting the  decline 
in goods exports), while total imports fell as 
a  share  of  GDP.  The  service  trade  surplus, 
relying  mostly  on  tourism-related  revenue, 
continued to increase in 2023 to 16% of GDP, while the goods trade deficit narrowed to 21% of GDP. 
Remittances increased in nominal terms, but their share in GDP continued to fall from 4.6% in 2022 to 
4.3% in 2023. The primary income deficit narrowed. 

Foreign direct investment (FDI) inflows continued to increase. They grew by 4.8% in 2023, but their 
share in GDP declined to 5.9%, down from 6.6% in 2022. The financial services and insurance sector and 
real  estate  were  the  main  drivers  of  FDI  inflows.  Once  again,  FDI  inflows  fully  financed  the  current 
account deficit in 2023. Portfolio investments also increased due to the issue of Eurobonds in 2023. The 
external  debt-to-GDP  ratio  is  on  a  declining  trend,  falling  by  6.8 pps  to  47.5%  in  2023,  reflecting  the 
robust  economic  growth  after  the  COVID-19  pandemic.  Foreign  exchange  reserves  have  been 
consistently increasing in recent years. At the end of 2023, they covered 7.3 months of imports of goods 
and services and exceeded the short-term external debt by several times. 

Inflation  fell  in  2023  and  continued  to  ease  in  2024.  Headline  inflation  peaked  at  8.3%  in  October 
2022,  lower  than  in  other  Western  Balkan  countries  due  to  regulated  electricity  prices  and  currency 
appreciation.  The  average  inflation  rate  declined  from  6.7%  in  2022  to  4.8%  in  2023,  and  it  slowed 
further  to  2.1%  in  the  second  quarter  of  2024.  The  disinflationary  process  in  both  headline  and  core 
inflation  was  driven  by  lower  international  commodity  prices,  an  appreciating  exchange  rate  and  the 
effects of monetary policy tightening. In 2023, the BoA raised the policy rate in two steps by a cumulative 
50  bps  to  3.25%.  The  appreciation  of  the  lek  was  driven  by  buoyant  foreign  exchange  inflows  due  to 

47 

 
 
strong  tourism,  increasing  FDIs  and  higher  remittances.  Services  inflation  continues  to  contribute 
significantly to core inflation against the background of a tight labour market and robust wage growth. On 
the back of declining inflation, in July 2024 the Bank of Albania lowered the key interest rates by 25 bps. 

Fiscal  performance  improved  in  2023,  as  the  budget  deficit  narrowed  and  public  debt  declined. 
Following an expansionary fiscal policy in 2020-2021 (that mitigated the negative shocks caused by the 
2019 earthquake and COVID-19), the fiscal deficit declined in 2022 and even further in 2023. In 2023, 
the budget deficit narrowed to 1.4% of GDP, not only due to strong revenue growth but also due to lower 
than planned execution of public investments. The wage bill increased significantly on the back of public 
wage  reform,  while  interest  expenditures  jumped  due  to  higher  borrowing  costs.  The  government  debt 
ratio fell from 64.5% of GDP in 2022 to below 60% in 2023, well below its pre-pandemic level, reflecting 
a  positive  primary  balance  and  high  nominal  GDP  growth.  The  2024  budget  targets  a  public  debt  of 
58.2% of GDP, a fiscal deficit of 2.4% of GDP and a continuing positive primary balance, in line with the 
fiscal rules. The government took steps to improve the monitoring of fiscal risks by, for example, working 
on a standalone Fiscal Risk Statement and creating a fiscal directorate in the new structure of the Ministry 
of  Finance  in  February  2024,  but  further  efforts  are  needed  (including  building  the  capacity  of  this 
directorate).  

to 

The government revenue ratio remains relatively low. Overall, total revenues rose from 26.8% of GDP 
in 2022 to 27.8% of GDP in 2023, driven by 
strong  tax  revenue  growth  (10.6%  year-on-
year).  Nevertheless,  the  revenue  ratio  is  low 
compared 
the  country’s  peers.  The 
amended  income  tax  law,  taking  effect  in 
2024,  aimed  at  broadening  the  tax  base,  by 
bringing  self-employed  professionals  into  the 
personal  income  taxation.  However,  the  law 
was  challenged  at  the  Constitutional  Court, 
and  thus  the  tax  policy  for  self-employed 
professionals  will  need  to  be  revised  A  new 
Law on property tax was drafted in 2023, but 
its  adoption  has  been  postponed.  Improving 
the  tax  administration  and  implementing  an  updated  (and  adopted)  medium-term  revenue  strategy 
(MTRS) will be essential steps to support further increases in public revenues. A higher tax revenue ratio 
is crucial to sustain investments in both physical and human capital, and to firmly anchor the downward 
trend in public debt.  

Progress  was  made  on  public  investment  management  and  public  finance  management.  While 
weaknesses  in  investment  planning  and  execution  persist,  Albania  updated  its  national  single  project 
pipeline  (NSPP),  approved  by  the  Council  of  Ministers  in  July  2023.  The  authorities  have  included 
environmental  assessment  and  climate  impact  criteria  in  the  project  selection  process  and  introduced  a 
climate  assessment  in  the  project  preparation.  The  ranking  of  the  projects  in  the  NSPP  based  on  their 
strategic  importance,  maturity  and  financing  is  yet  to  be  completed.  This  is  necessary  to  facilitate 
medium-term budget planning. The necessary legal amendments to integrate public-private partnerships 
into  the  NSPP  and  into  the  regular  public  investment  management  cycle  are  also  outstanding.  A  new 
2023-2030  public  finance  management  (PFM)  strategy  was  approved  in  June  2024  to  improve 
transparency, accountability, fiscal discipline and efficiency in the use of public resources. 

The  macroeconomic  policy  mix  remained  appropriate,  supporting  macroeconomic  stability  and 
growth.  Macroeconomic  policies  were  effective  in  substantially  lowering  inflation  while  preserving 
robust economic growth. Improved fiscal performance and a reduction in the debt-to-GDP ratio restored 
some  fiscal  space,  but  vulnerabilities  remain  given  the  persistently  high  debt  ratio,  elevated  financing 
needs,  increased  interest  costs  and  uncertain  external  environment.  Increasing  public  revenues  remains 

48 

020406080-8-404201820192020202120222023Graph 1.3: Albania -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public debt (rhs)Source: National sources% ofGDP 
 
vital for safeguarding a sustainable fiscal position. 

Functioning of product markets 

Business environment 

The  business  environment  is  hampered  by  a  large  informal  economy.  Informal  economy  remains 
widespread,  impacting  fair  competition  among  businesses.  The  Albanian  State  Statistics  Institute 
estimates that informal employment accounts for 29.4% of total employment, excluding the agricultural 
sector. There are high levels of informal employment in agriculture, the wholesale and retail trade, and in 
construction.  Tourism,  a  sector  prone  to  informality,  has  grown  significantly  in  recent  years,  posing 
challenges  to  the  fight  against  the  informal  economy.  To  help  address  undeclared  work,  the  Albanian 
Inspectorate of Labour and Social Services carried out inspections in the tourism and construction sectors, 
implemented  awareness-raising  campaigns  and  worked  on  automating  its  risk-based  planning  process, 
which helps determine the sectors it needs to inspect. The tax administration made efforts to tackle the 
informal economy by carrying out audits and checks based on risk analysis. Increasing VAT registration, 
reducing  undeclared  work  and  the  under-declaration  of  wages,  and  reducing  tax  fraud  all  remain 
significant challenges.  

Inefficiencies  in  public  administration,  an  excessive  regulatory  framework  and  corruption  pose 
further challenges to the business environment. Corruption continues to pose challenges to businesses, 
although the track record of investigation and prosecution of high-level corruption has slightly improved6. 
Albania ranked 98th (out of 180 countries) in the 2023 Transparency International corruption perception 
index  –  an  improvement  compared  with  2022  when  Albania  ranked  101st.  While  businesses  appreciate 
progress  in  the  justice  reform  and  actions  taken  by  the  newly  established  judicial  institutions  to  tackle 
corruption, issues with lengthy court procedures remain due to a backlog of files in the second tier of the 
administrative court. Irregularities in public procurement procedures are still perceived as an obstacle for 
businesses. Moreover, digitalising the cadastre still needs to be completed, and there are discrepancies in 
the  information  on  property  deeds.  Despite  improvements  in  the  public  consultation  process,  business 
representatives continue to have serious concerns (for example, about short consultations periods and no 
reflection  of  proposals  feedback  in  the  draft  laws/measures).  Key  enablers  of  a  favourable  business 
climate  include  the  strengthening  of  the  implementation  of  the  justice  and  anti-corruption  reform 
measures, the adoption of the unified investment law, putting adequate consumer protection laws in place, 
and reducing cash payments. 

State influence on product markets 

The state’s presence in the economy remains limited overall. In 2023, Albania reported State aid of 
0.37% of GDP. About 61.6% of the State Aid is horizontal aid, while sectoral aid constitutes 38.4% of the 
total  aid.  The  main  instruments  took  the  form  of  grants  and  exemption  from  taxes,  reimbursement  or 
reduction of the tax rate. The public sector’s share of gross value added of the economy slightly increased 
post-pandemic to an average of 11.1% in 2020-2023, from about 10.6% in 2015-2019. The proportion of 
public sector employment7 to total employment decreased from 15.6 % in 2021 to 14.5% in 2023. On the 
back of the energy crisis, the government introduced a price cap on electricity for domestic customers in 
2021,  which  was  extended  until  December  2023.  In  2024,  Albania  introduced  a  State  Guarantee 
Instrument of ALL 4 billion (0.17% of GDP) to support businesses in the clothing industry, which was 
affected by the strengthening exchange rate, to help secure necessary financing from banks. Overall, the 
independence  of  the  State  Aid  Commission  (SAC)  has  not  yet  been  ensured  (See  also  Chapter  8  – 
Competition Policy). 

6 OECD, Western Balkans Competitiveness Outlook 2024. 
7 As a share of total employment of 15 to 64-year-olds, according to LFS (INSTAT). 

49 

 
 
 
Privatisation and restructuring 

Oversight and monitoring of state-owned enterprises (SOEs) remains weak. SOEs in Albania operate 
in  a  largely  decentralised  manner,  lacking  a  whole-of-government  ownership  policy  to  professionalise 
ownership practices or to clarify the state’s objectives regarding SOEs.8. In 2022 the Institute of Statistics 
(using ESA 2010 methodology) categorised between 189 extra-budgetary units of the central government 
(including some SOEs) and local government (water utilities and football clubs), 28 non-financial public 
corporations and 2 public financial corporations. The Ministry of Economy, Culture and Innovation owns 
100% of the capital in 13 joint-stock companies, and more than 50% of two joint-stock companies, one of 
which  is  going through  a  liquidation  procedure.  Additionally,  a  new  joint-stock company,  "Operatori  i 
Blerjeve  të  Përqendruara",  was  created  in  2023.  The  Ministry  of  Infrastructure  and  Energy  has  the 
ownership of state-owned companies in the field of energy (KESH, OSHEE, Albgaz and Albpetrol) and 
owns  the  majority  of  shares  in  the  water  supply  and  sewerage  companies.  Meanwhile,  in  July  2024, 
Albania adopted the Law on the establishment of the state-owned company for production and trade of 
arms, ammunition and military technology equipment (KAYO). Currently there is no central overview of 
the  state’s  portfolio  of  SOEs,  with  information  on  their  size,  employment  or  financial  returns.  The 
governance  system  of  SOEs  does  not  fully  comply with international  standards,  which is  also reflected 
also in the weak financial viability of some of these companies. State-owned energy utilities, in particular, 
are  reliant  on  budget  support  and  state  guarantees,  suggesting  potential  fiscal  risks.    Privatisation  was 
limited in 2023; only one State asset was sold. 

Functioning of the financial market  

Banking sector capitalisation remains above the regulatory minimum, while profitability improved 
significantly in 2023. Banks had an aggregate capital adequacy ratio of 19.4% in December 2023, well 
above the 12% minimum requirement, and their profitability improved significantly, driven by higher net 
interest income. The ratio of non-performing loans to total loans declined from 5% in 2022 to 4.7% at the 
end of 2023 – the lowest level recorded since the global financial crisis in 2008. Nevertheless, credit risks 
need  to  be  closely  monitored  as  there  is  a  high  share  of  variable  rate  loans  (about  75%  of  the  banks’ 
loans).  The  high  share  of  government  securities  among  banks’  assets  continues  to  expose  them  to 
sovereign risk. 

Businesses in Albania predominantly rely on bank financing, but financial intermediation remains 
low overall. The banking sector continues to dominate the financial system, accounting for approximately 
90% of total assets. The increase in the stock of loans moderated in 2023 mainly due to an exchange rate-
driven contraction in foreign currency loans. Credit growth in the lek accelerated strongly (driven by real 
estate  and  mortgage  loans).  Financial  intermediation  level  remained  low  –  the  share  of  private  sector 
loans stood at 32% of GDP in January 2024.  

Functioning of the labour market 

The  labour  market  continued  to  improve,  but  labour  shortages  pose  challenges  for  businesses. 
Employment  increased  in  2023,  in  particular  in  the  services  sector.  The  employment  rate  for  the 
population  aged  15  to  64  grew  to  67.2%  in 
2023,  up  from  65%  in  2022,  mainly  fuelled 
by  a  higher  participation  rate.  Despite  recent 
improvements  in  the  activity  rate  of  women, 
the gender gap was 13.2 pps in Q4-2023. The 
unemployment rate dropped slightly to 11.2% 
in  2023,  while  the  youth  unemployment  rate 
(15-29)  remained  high  at  22%.  The  average 

8 OECD, Western Balkans Competitiveness Outlook 2024: Albania. 

50 

 
 
 
gross monthly  wage  per  employee  grew  by 14%  year-on-year in 2023,  with  wages in the  public  sector 
growing faster (16.9%) compared with those in the private sector (12.6%). At the same time, the approved 
minimum  wage  increased  by  around  20.3%,  affecting  all  sectors  of  the  economy.  Wages  continued  to 
increase  in  the  first  quarter  of  2024,  with  the  average  gross  monthly  wage  reaching  about  EUR 700. 
Despite the improving labour market situation, emigration remains an issue, leading to labour shortages, 
especially of skilled workers.  Preliminary results of the Population and Housing Census 2023 show that 
Albania's  population  fell  from  2.8  million  in  2011  to  2.4  million  in  2023  (a  14%  decline).  Thus,  the 
working  age  population  declined,  including  skilled  workers.  Such  population  dynamics  restrict  the 
medium-term growth prospects.   For countering the high level of emigration, the government worked on 
developing a new National Strategy on Migration (2024-30) and an action plan (2024-26). 

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

Education and innovation 

The  quality  of  education  and  training  remains  low  and  affects  the  availability  of  skilled  labour. 
OECD PISA 2022 results indicate that a significant number of 15-year-olds are not acquiring basic skills 
(in  reading,  mathematics  and  science).  Average  2022  results  were  down  compared  to  2018  in 
mathematics, reading and science. High rates of early school leavers (17.5% in 2021), as well as overall 
low level of digital skills continue to pose challenges. A continued high rate of young people (aged 15-29) 
not  in  education,  employment  or  training  (NEET)  is  observed,  standing  at  [26.1%  in  2022],  more  than 
double the EU average (11.2% in 2023). Efforts are ongoing in strengthening vocational education and 
training (VET), but the number of people attending VET schools is still low (17.7% of upper secondary 
students versus the regional average of   58%). More progress is needed in engaging the private sector in 
the  VET  system  in  order  to  adapt  curricula  to  better  meet  labour  market  needs.  In  2024,  the  average 
teacher’s salary increased, following the second stage of the public wage reform, which entered into force 
on 1 July 2024. This will increase spending on education as a share of total expenditure by 0.4 pps year-
on-year  to  7.5%  in  2024.  Work  is  still  under  way  to  design  the  methodology  for  data  collection  and 
processing on public expenses dedicated to R&D. 

Physical capital and quality of infrastructure 

Investment grew in 2023, and there was some progress on infrastructure projects. Albania stepped 
up  its  efforts  to  make  progress  on  road  construction,  particularly  in  touristic  areas,  and  on  rail 
infrastructure projects, aiming to improve interregional connectivity  and trade-related infrastructure. On 
digital infrastructure, the total number of broadband subscribers was 611 130 (22% of the population) in 
the third quarter of 2023, an increase of 7.6% compared with the same quarter in 2022. Despite its efforts, 
Albania lags behind the other Western Balkan countries in fixed broadband penetration. Furthermore, the 
number  of  households  with  fixed  internet  subscription  with  access  speeds  exceeding  100  Mbps  is  low, 
and internet access inequalities between urban and rural populations persist. As regards the energy sector, 
Albania’s  overreliance  on  hydropower  for  electricity  generation  remains  a  challenge.  Some  steps  have 
been taken towards energy diversification, with the adoption of a new law on renewable energy sources 
(in April 2023) and the first wind auctions taking place in the second half of 2023. 

Sectoral and enterprise structure 

While  the  services  sector  is  expanding,  agriculture  continues  to  play  an  essential  role  in  the 
Albanian economy. Tourism has surged since the pandemic, with foreign arrivals reaching new record 
highs in 2023. This increased the share of services in gross value added from 54.2% in 2022 to 55% in 
2023. Services also account for the largest proportion of the workforce (about 44% of total employment). 
Although the share in gross value added of agriculture fell to 20.9% of GDP (from 21.3% in 2022), the 
sector continues to play a major role in the economy (employing about 34% of the country’s workforce). 
Stronger investment activity led the construction sector’s share in gross value added to increase to 11.8% 
in 2023, up from 11.1% in 2022. Manufacturing has been increasing in recent years, but it fell in 2023 (by 

51 

 
 
0.8 pps year-on-year to 6.7%). Industry also faced headwinds in 2023 due to weak foreign demand and 
the appreciating domestic currency, its share in gross value added dropping by 1 pp. to 12.4%. 

Small  and  medium-sized  enterprises  are  the  backbone  of  the  Albanian  economy.  In  2022,  Micro, 
Small and Medium-sized Enterprises (MSMEs) made up 99.8% of all economic enterprises. They account 
for 82.1% of the total number of employees and generated 78.4% of value added of all non-agriculture 
economic enterprises. 93.7% of total MSMEs are microenterprises with one to nine employees.  

Economic integration with the EU and price competitiveness 

The EU remains Albania’s main trading and investment partner.  Trade openness averaged 4.6% of 
GDP  in  2023  (5.2%  in  2022).  The  share  of  total  exports  in  GDP  increased  by  2.4 pps  year-on-year  to 
39.9%  in  2023  thanks  to  the  robust  export  growth  of  services  (mostly  tourism-related).  However,  the 
share remains one of the lowest in the region, largely due to the very low share of goods exports, which 
declined in  2023.  Total imports-to-GDP  ratio  declined  by  2.8 pps  year-on-year to  45.1%.  EU  countries 
had a 57.9% share in Albania’s total merchandise trade in 2023. They absorbed 71.8% of Albania’s total 
goods exports and provided 50.9% of its total imports. FDI inflows from the EU increased to 55.4% in 
2023 (up from an average of 51% in 2019-2022), while the EU’s share of FDI stocks increased as well to 
54.8%  (up  from  an  average  of  53.5%  in  between  2019  and  2022).  Overall,  Albania’s  price 
competitiveness  deteriorated  as  reflected  in  the  appreciation  of  the  real  effective  exchange  rate,  the 
increase in nominal wages and lower goods exports.  

2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL 

Chapter 5: Public procurement 

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

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. Further alignment was achieved through an amendment to the 
procurement  law  (PPL)  adopted  in  February  2024  abolishing  the  consultancy  services  procurement 
category,  among  other  changes.  The  amendments  allow  financial  thresholds  to  be  modified  by  the 
government.  In  May  2024,  the  government  adopted  a  decision  bringing  the  threshold  closer  to  the  one 
stipulated in the EU directive. 

However, the provision in the adopted law amendment that allows the Council of Ministers, for a period 
of  3  years,  to  authorise  central  government  institutions  to  negotiate  and  conclude  international 
consultancy  agreements  in  ‘areas  of  strategic  interest’  and  thus  exempting  them  from  opening 

52 

0102030405020162017201820192020202120222023Graph 1.5a: Albania -Exports of goodsEUCEFTAOtherSource: WiiW% ofGDP0102030405020162017201820192020202120222023Graph 1.5b: Albania -Imports of goodsEUCEFTAOtherSource: WiiW% ofGDP 
 
 
 
competition,  raises  concerns  over  its  compliance  with  the  EU  acquis  and  with  the  Stabilisation  and 
Association Agreement.  

The Law on concessions and public-private partnerships (PPPs) is partially aligned with the EU acquis. 
Work on a substantial revision of the PPP law with a view to aligning it with the EU acquis is ongoing.   

The  Public  Procurement  Agency  (PPA)  has  strengthened  its  support  role  to  contracting  authorities  in 
tender  formulation.  It  has  42  staff  members,  out  of  envisaged  48  posts.  In  May  2024,  the  Council  of 
Ministers adopted a new Public Procurement Strategy 2024-2030 and Action Plan (2024-2027).  

In  September  2023,  the  government  established  a  new  state-owned  Central  Procurement  entity,  which 
incorporated the functions of the Agency for Centralised Procurement. Following the split of the Ministry 
of  Finance  and  Economy,  the  Concessions  Treatment  Agency  (ATRAKO)  will  fall  under  the  new 
Ministry of Economy. Both ATRAKO and the Ministry of Finance need to strengthen their reporting on 
PPPs, which is lacking. 

Implementation and enforcement capacity 

Albania’s public procurement market represented about 6.7% of GDP in 2023 (9.4% of GDP in 2022). 
The  number  of  negotiated  procedures  without  prior  publication  remained  broadly  at  its  recent  much 
decreased levels (2.9% of all awarded tenders compared to 3.3% in 2022); 2% of total value of awarded 
tenders  compared  to  0.9%  2022,  and  3.4%  in  2021).  The  use  of  framework  agreements  fell  slightly  in 
terms of numbers (746 compared 763 in 2022), and also represented a lower total value.  

The  application  of  the  most  economically  advantageous  tender  criteria  for  the  award  of  public 
procurement contracts was lower in 2023 than in 2022, both in terms of awarded tenders in which it was 
used (3.6% in  2023,  compared  to  7.3% in  2022), and  in  terms  of  value  on associated  contracts (20.3% 
compared to 33.9% in 2022). 

The use of new PPPs and concessions remains at very low levels. In 2023, there were no new procedures 
published.    

The  contracting  authorities  need  to  continue  to  build  capacity  to  manage  public  procurement 
processes. Ongoing training continued with  247 participants being registered from 98 central, local and 
independent institutions and private entities in 2023. The PPA has advanced is setting up a certification 
system for procurement staff in contracting authorities. 

Regarding  prevention  of  corruption  in  public  procurement,  Albania  should  focus  on  further 
strengthening  the  functioning  of  the  overall  system  to  increase  competition,  compliance  and 
professionalisation. 

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. The number of posts at PPC was increased to 42 in 2023, of 
which currently 36 are filled.  

In 2023, the PPC received 886 complaints (compared to 782 complaints in 2022). 464 of these were fully 
or partially accepted by PPC for treatment. The PPC processed 90.6% of complaints with the deadlines, 
and the average time it took to reach a decision fell further to 10 days. 

Chapter 18: Statistics 

European  statistics  are  developed,  produced  and  disseminated  by  EU  Member  States,  guided  by  the 
principles and quality criteria elaborated in the Regulation on European statistics, such as professional 
independence,  impartiality,  reliability,  accessibility  and  statistical  confidentiality.  Common  rules  are 

53 

 
 
provided for the methodology, production and dissemination of statistical information, which are further 
specified in sectoral legislation that constitute the EU acquis on statistics.  

On  the  statistical  infrastructure,  Albania’s  legislation  is in  line  with  European  standards  and respects 
the  principles  of  European  Statistics  Code  of  Practice,  and  most  classifications  are  in  line  with  EU 
standards.  The  2024  annual  statistics  plan  was  approved  by  Parliament.  INSTAT  continues  to  face 
capacity  constraints  and  staff  turnover.  Cyber-attacks  on  INSTAT  in  early  2024  affected  operations.  It 
will need to invest in its IT infrastructure, particularly regarding cybersecurity.   

On macroeconomic statistics, Albania is partly aligned with European System of National and Regional 
Accounts (ESA 2010). Production and transmission of national and regional accounts, excessive deficit 
procedure  (EDP)  notifications,  government  finance  statistics  (GFS),  and  international  trade  in  goods 
statistics  to  Eurostat  all  improved.  However,  improvements  are  needed  on  annual  sector  accounts  and 
financial  accounts,  and  on  production  and  transmission  of  harmonised  indices  of  consumer  prices  at 
constant tax rates, and the monthly balance of payments. Albania should allow the publication of its GFS 
data submitted to Eurostat on a best-effort basis. On business statistics, short-term statistics (STS) (for 
industry,  construction,  retail  trade  and  other  services)  are  partly  compliant.  However,  some  STS 
indicators  on  industrial  turnover  (hours  worked,  indicators  on  business  registrations,  bankruptcies,  and 
business  demography)  are  still  not  transmitted  to  Eurostat.  Furthermore,  INSTAT  need  to  produce  a 
complete  data  set  of  research  and  development,  and  on  innovation.  INSTAT  continues  to  achieve  high 
response rates in both business and household surveys.  

On social statistics, INSTAT regularly conducts the labour force survey, with microdata being provided 
to Eurostat, and the annual survey of income and living conditions (SILC), but job vacancy statistics are 
still not produced. External migration and asylum statistics are partly aligned with the EU acquis. Crime 
statistics are published yearly, but the International Classification of Crime for Statistical Purposes is not. 
Sex-disaggregated data collection improved, but further work is needed on certain groups. The results of 
the population and housing census (PHC) were presented by INSTAT on 28 June 2024. This showed a 
decline in the overall population by 420 000 since 2011 to 2.4 million, mostly due to emigration, and an 
increase in the average age of the population to 42.7 (7 years more than in 2011). Given the delays in the 
implementation  of  the  PHC  Albania  needs  to  pay  attention  to  data  rebasing  to  align  it  with  Eurostat 
reporting requirements.  

Agricultural statistics are partly aligned with the EU acquis. Improvement was made on administrative 
registers, but the data quality still needs to be improved. Preparatory work for the agricultural census has 
been conducted, but INSTAT will still need to undertake important steps such as updating its work plan 
and budget, ensure the adoption of the agricultural census law, finalise the questionnaire and ensure the 
census logistics are in place.  

Environmental statistics are partly aligned with the EU acquis. Material flow accounts are well aligned, 
while air emission accounts, physical energy flow accounts and environmental taxes by economic activity 
remain partially in compliance with the EU requirements. Albania collects data on municipal waste but 
needs  to  collect  and  transmit  statistics  on  industrial  waste  and  ensure  a  comprehensive  estimate  of  all 
plastic packaging waste generated and recycled. Energy statistics are partly aligned with the EU acquis 
and 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. 

Public internal financial control (PIFC)  

54 

 
 
A  specific  strategic  framework  for  PIFC  exists.  The  PIFC  strategy  is  incorporated  in  the  new  PFM 
Strategy  adopted  in  June  2024.  Annual  PIFC  reports  are  prepared  regularly.  They  are  presented  to  the 
Council of Ministers and Parliament as part of the approval of the budget.  

The  internal  control  system  is  only  partially  effective.  Relevant  legislation  is  broadly  in  line  with 
European  standards.  Despite  steps  to  improve  the  internal  control  system,  further  efforts  are  needed  to 
advance the implementation of PIFC reforms. Risk management is still at an early stage and needs to be 
better incorporated into the management of financial and operational processes. 

Managerial accountability is not yet fully embodied in the legislation and the administrative practice. 
The  instructions  on  the  delegation  of  financial  responsibilities  need  to  be  consistently  implemented.  In 
practice, a very small number of administrative decisions are delegated to lower levels (See above under 
Public administration reform).   

The legislative framework on internal audit is in line with international standards.  

In  2023,  there  were  441  internal  auditors,  of  whom  353  had  basic  certification.  A  new  system  for  the 
advanced certification of auditors is under implementation. 

In  2023,  the  Central  Harmonisation  Unit  assessed  compliance  with  manuals  and  instructions  of  the 
internal  audit  activities  of  19  internal  audit  units.  It  found  that  37%,  were  partially  or  fully  compliant, 
compared to 36% in 2022. 

External audit 

Albania’s  legal  framework  guarantees  the  independence  of  the  State  Audit  Institution.  During  the 
reporting period, it adopted a new strategic development plan for 2023-2027. The State Audit Institution 
continued  to  improve  its  institutional  capacity.  The  number  of  staff  increased  to  216.  It  carries  out 
annual professional development activities for audit staff.  

The quality of audit work improved and complies with the standards of the International Organisation of 
Supreme  Audit  Institutions  (INTOSAI).  The  objectives  of  the  State  Audit  Institution  have  shifted  to 
performance and financial audits.  

The  impact  of  audit  work  has  shown  some  progress.  In  2023,  160  audit  reports  were  submitted  to 
Parliament. The State Audit Institution regularly reports on the implementation of its recommendations. 
Albania  should  improve  implementation  of  external  audit  recommendations.  Although  98%  of 
recommendations issued in 2022 audits were accepted, only 47% were fully or partially implemented by 
end  2023.  The  State  Audit  Institution  reported  four  criminal  charges  to  Prosecution  Office  in  2022 
involving  16  officials..  ALSAI  continues  to  collaborate  and  provide  information  to  the  prosecutor  in 
relation  to  findings  in  its  audit  that  may  have  a  criminal  aspect.  ALSAI  reported  the  transmission  67 
materials to the Special prosecutor in 2023. In July 2024, the Parliament agreed to set up a subcommittee 
under  the  budget  and  economy  commission,  dedicated  to  the  follow  up  of  ALSAI  reports  and  the 
monitoring and dialogue between parliament and ALSAI. ALSAI findings were also discussed in special 
inquiry  committees  set  up  by  parliament.  Increased  use  of  ALSAI  audits  in  the  parliamentary  budget 
oversight  process  should  be  ensured  through  the  operationalisation  of  the recently  set-up  parliamentary 
subcommittee.    

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  established  a  network  which  meets  regularly.  Still,  the 
authorities’  part  of  the  AFCOS  network  in  relation  to  protecting  EU’s  financial  interests  should  be 
clarified. A national anti-fraud strategy still needs to be adopted.  

55 

 
 
Although  cooperation  with  the  European  Commission  on  investigations  has  somewhat  improved, 
Albania needs to step up its efforts on developing a solid track record on cooperation on investigations 
and  on  reporting  of  irregularities  by  providing,  among  others,  effective  operational  assistance  to 
investigators  from  the  European  Anti-Fraud  Office  (OLAF).  In  2023,  Albania  reported  53  cases  of 
irregularities via the Irregularity Management System. 

Protection of the euro against counterfeiting 

During the reporting period, there were no developments regarding alignment with the EU acquis on the 
definition  of  counterfeit  banknotes  and  coins  on  the  procedures  for  gathering,  storing  and  withdrawing 
them  from  circulation.  In  2023,  Albania  seized  508  counterfeit  euro  coins  and  11  euro  banknotes, 
representing 76% of all seized counterfeit currencies.  

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 continued to actively engage 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 fourth annual EU-Western Balkans Summit took place in Brussels in December 2023, reaffirming 
the  EU  membership  perspective  of  the  Western  Balkans  and  exploring  measures  to  further  advance 
gradual integration. 

In January 2023, Albania had assumed the Chairmanship-in-Office of the Western Balkans Fund. Albania 
also  assumed  the  Chairmanship-in-Office  of  the  Berlin  Process.  Albania  has  actively  engaged  in  the 
regional dimension of the Growth Plan for the Western Balkans, participating in both ministerial and 
leaders’ meetings and hosted the February Leaders meeting in Tirana. 

On the Common Regional Market (CRM), in October 2023, the Berlin Process Summit took place for 
the  first  time  in  the  region  in  Tirana.  An  additional  agreement  was  adopted  on  the  recognition  of 
professional qualifications for nurses, veterinary surgeons, pharmacists and midwives. The roadmap for 
roaming between the Western Balkans and the EU entered the first phase of implementation. Albania has 
ratified  all  four  mobility  agreements  signed  at  the  Berlin  Process  Summit  in  November  2022  and  has 
deposited the related notification instruments. Twelve  major decisions were agreed by the CEFTA Joint 
Committee in October 2024. 

In January 2024, Albania, Serbia and North Macedonia signed the first Protocol on the Implementation of 
the Agreement on Conditions for Free Access to the Labour Market in the Western Balkans. 

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

Relations with Bosnia and Herzegovina upgraded. Albania opened an embassy in Sarajevo in December 
2023, and the two countries’ representatives continue to make high-level visits. 

Albania’s relations with Kosovo remained good. The two countries engaged in diplomatic consultations 
aiming  to  align  their  foreign  policy.  Albania  pledged  support  to  revitalise  the  process  of  international 
recognition  for  Kosovo  and  its  membership  in  international  organisations,  including  NATO.  In  May 
2024, the agreement abolishing ID and passport controls on the common border came into force. Albania 
has welcomed the visa liberalisation for Kosovo and supports Kosovo’s membership bid for the Council 
of Europe. 

56 

 
 
 
Relations  with  Montenegro  remained  good.  In  January  2024,  the  Albanian  Minister  for  Europe  and 
Foreign  Affairs  visited  Montenegro  in  a  bid  to  strengthen  bilateral  relations  and  take  stock  of  the 
implementation of the agreements signed in the previous government-to-government meeting between the 
two countries. 

Relations with North Macedonia remained good, and the two countries celebrated 30 years of diplomatic 
relations. The two states signed bilateral agreements and strengthened their joint cooperation on security, 
defence,  infrastructure,  energy,  education,  science  and  culture.  An  agreement  on  the  joint  control  of 
border points between the two countries entered into force in July 2023. 

Relations with Serbia remained good overall, with regular high-level political contacts. 

Relations  with  Türkiye  were  further  strengthened.  In  February  2024,  the  first  meeting  of  the  Albania-
Türkiye  High-Level  Strategic  Cooperation  Council  took  place  in  Ankara.  Six  agreements  were  signed, 
including  on  environment  and  protected  areas,  defence,  urban  planning,  media  and  communications. 
Türkiye  provided  regular  support  to  modernise  the  Albanian  Armed  Forces.  Türkiye  continued  to  put 
pressure on Albania to deliver on dismantling the ‘Gülen’ movement in the country. 

Relations  with  Georgia  remained  good.  Bilateral  relations  are  active  in  international  fora.  Albania 
supports  Georgia’s  territorial  integrity  and  sovereignty  and  has  voiced  appreciation  of  Georgia’s 
aspirations to integrate into the EU and NATO. 

Relations with the Republic of Moldova remained good. The President of Moldova attended the Tirana 
South-East  Europe  Summit  in  February  2024  and engaged in  bilateral  talks  with  the  Prime Minister  of 
Albania. 

Relations  with  Ukraine  further  intensified  in  the  reporting  period.  Albania  has  provided  extensive 
military  assistance  and  hosted  the  very  first  WB6  Summit  with  the  presence  of  Ukraine’s  president  in 
Tirana in February 2024. In the margins of the summit, the two countries signed a treaty of friendship and 
cooperation  and  furthered  bilateral  relations  on 
trade,  economy,  science,  culture,  healthcare, 
environmental protection, tourism and sports. 

Relations with Greece remained good overall, and political contacts continued, although Greek minority 
rights remained subject of disagreement. The pre-trial detention of an ethnic Greek mayor-elect, who was 
arrested on the eve of the 2023 local elections on charges of vote-buying, has been a source of tension.  

Relations  with  Italy  remained  very  good,  as  also  reflected  in  the  exchange  of  high-level  visits.  In 
November  2023,  the  two  governments  signed  an  agreement  leading  to  the  transfer  of  asylum  seekers 
rescued  at  sea  by  Italian  authorities  to  Italian-funded  detention  centres  located  in  Albania.  In  February 
2024, the two countries signed an agreement on social security and pensions, and about 500 Albanians 
living in Italy are expected to benefit from it. 

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. 

57 

 
 
 
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 rules from creating unjustified barriers to trade. 

General principles 

Albania continues to implement a national roadmap for alignment of acquis in the area of free movement 
of goods, which has an action plan for legal alignment and capacity building in the medium term (2023-
2025) and the long term (2026-2030).  

Non-harmonised area 

Albania  has  now  extended  to  the  non-harmonised  areas  the  scope  of  its  ongoing  work  on  drafting  an 
action plan for screening national technical regulations to comply with Articles 34-36 of the TFEU. 

Harmonised area: quality infrastructure 

Since  February  2024  the  new  Ministry  of  Economy,  Culture  and  Innovation  (MECI)  is  responsible  for 
this area. It needs to recruit further staff to fully cover it. More qualified inspection staff are also needed 
to  better  ensure  market  surveillance.  From  September  2023  –  March  2024,  1 196  market  surveillance 
inspections  were  done  on  non-food  products,  finding  71  products  in  non-conformity,  resulting  in  25 
administrative measures (two warnings, 20 fines and three urgent measures).   

Albania’s  legislation  on  accreditation,  on  market  surveillance  and  on  conformity  assessment  is 
partially  aligned  with  the EU  acquis.  On standardisation,  the  Albanian legal framework  shows  a  high 
level of alignment with the EU acquis. Albania’s General Directorate of Standardisation is a full member 
of  the  European  Telecommunication  Standards  Institute  (ETSI).  In  the  context  of  its  application  to 
become  a  full  member  of  the  European  Committee  for  Standardisation  (CEN)  and  the  European 
Committee  for  Electrotechnical  Standardisation  (CENELEC)  Albania  continued  to  address  the  issues 
identified by the subsequent CEN/CENELEC peer review. National standards are adopted in line with EU 
standards  of  CEN,  CENELEC  and  ETSI.  There  are  currently  118  accredited  conformity  assessment 
bodies in Albania that have been accredited by Directorate of Accreditation (DPA), including 52 testing 
laboratories  and  1  calibration  laboratory.  The  General  Directorate  of  Metrology  is  fully  staffed  and 
operational.  Albania  has  not  prepared  its  legislation  to  be  aligned  with  the  EU  requirements  on 
notification of national legislation.  

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  medical  devices.  There  were  no  developments  on 
alignment with other EU acquis in this area. 

On ‘old approach’ product legislation, there were no developments on alignment with the EU acquis, 
including  on  registration,  evaluation,  authorisation  and  restriction  of  chemicals  (REACH);  on  chemical 
classification,  labelling  and  packaging,  or  on  motor  vehicles,  on  aerosol  dispensers,  and  on  detergents. 
Albanian legislation is partly aligned on drug precursors, though the list of controlled substances already 
complies with the relevant lists in the EU acquis. 

On procedural measures, there were no developments on alignment with the EU acquis, including 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 
perform market surveillance have rules on transparency, ethics and conflicts of interest, and are subject to 
audits. However, more efforts are needed in terms of enforcement.  

58 

 
 
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.  

Regarding access to the labour market, in the period January-June 2024, 509 EU citizens benefited from 
the simplified procedure. Employment in civil service positions and in the state police require Albanian 
citizenship. 

A national migration strategy for 2024-2030 was adopted in May 2024, accompanied by an action plan 
2024-2026 which includes specific measures aimed at harmonising national legislation on foreigners with 
EU standards, as well as measures to provide information to EU workers and their families.  

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 National List of Occupations has 
been  aligned  with  the  European  Skills,  Competences,  Qualifications,  and  Occupations  (ESCO) 
multilingual classification allowing for database transfer and connection with EURES. The national list of 
occupational codes used in Albania has been mapped as per the ESCO codes. From the national list of 
occupation (totalling 5,400 codes of occupations), 2- 900 codes have been mapped to the ESCO list of 
occupations. 

On the coordination of social security systems, Albania has bilateral agreements with six EU Member 
States  and  three  aspiring  members.  During  the  reporting  period,  bilateral  agreements  with  Bulgaria, 
Croatia and Montenegro have been ratified by Albania and await entry into force. The bilateral agreement 
with Italy was decreed in May 2024 while agreements with Serbia, Poland and Greece are still pending. 
Further efforts are needed to advance the negotiations for bilateral agreements with Denmark, Slovenia, 
Moldova  and  Spain.  The  legal  provisions  needed  for  the  integration  of  the  European  Health  Insurance 
Card (EHIC) in Albania have not yet been developed in the country’s legislative framework. 

In November 2023, Albania adopted a law “‘On private pension funds”’ aiming to enhance the regulation 
of private pension funds in Albania in line with the EU Directive “‘On the activities and supervision of 
institutions for occupational retirement provision’. 

As per the Ministry of Justice’s monitoring report of the intersectoral strategy against corruption 2015-
2023, all agencies and institutions under the Ministry of Interior have adopted integrity plans.  

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. 

On the right of establishment and freedom to provide cross-border services, Albania has in place the 
National  Business  Centre  which  functions  as  a  one-stop-shop  for  registering  businesses  and  issuing 
licences,  authorisations  and  permits.  E-Albania  portal  serves  as  a  single  point  of  contact  for  accessing 
electronic services. No progress was achieved on the further alignment of the Law on services with the 
EU Service Directive, and on addressing the barriers to the freedom of establishment and free movement 
of services, following the completion of self-screening exercise in 2023.  

In the area of postal services, Albanian legislation is aligned with the EU postal acquis. The 2021-2026 
Postal Strategy  for the development of the postal sector is implemented. There is currently one universal 
service provider (Albanian Post SA) designated until 2025, and 24 other postal service providers on the 

59 

 
 
market.  The  Electronic  and  Postal  Communications  Authority  (AKEP)  is  the  independent  national 
regulatory authority.  

No progress can be reported in the area of mutual recognition of professional qualifications as regards 
further  alignment  with  the  EU  acquis.  Along  with  the  other  Western  Balkan  countries,  as  part  of  the 
Common  Regional  Market  actions,  Albania  signed  in  October  2023,  the  Agreement  on  Mutual 
Recognition of Professional Qualifications for Nurses, Veterinary Surgeons, Pharmacists and Midwives. 

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. 

On capital movements and payments, Albania has still not met its commitment, due since 2016 under 
the  Stabilisation  and  Association  Agreement  (SAA),  to  enable  EU  nationals  and  entities  to  acquire 
agricultural real estate. Currently this is planned   for 2025, following the engagements taken during the 
screening. 

On payment systems, e-money account numbers have doubled since 2022, and in December 2023 a new 
reporting system for e-money institutions and payment institutions was put in place. In January 2024, a 
national strategy on financial literacy and inclusion was adopted. In February 2024, the Bank of Albania 
(BoA)  supervisory  board  adopted  a  guideline  for  payment  institutions  to  report  on  ‘major  incidents’, 
related to operational or security incidents/threats. In late 2023, the BoA adopted a new methodology for 
banks  to  report  on  payment  instruments.  In  April  2024  a  law  entered  into  force  to  align  with  the  EU 
acquis  on  payment  accounts  (Payment  Account  Directive).  Progress  was  made  on  alignment  with  the 
SEPA Regulation by the adoption in April 2024 of implementing legislation on requirements for credit 
transfers  and  direct  debits  in  euro.  In  May,  Albania  adopted  the  regulation  on  the  comparability  of  the 
fees  related  to  payment  accounts  and  payment  accounts  switching  service.  In  June  2024,  Albania 
submitted its formal application to the European Payments Council to join the Single Euro Payment Area 
(SEPA). In the framework of SEPA application, in August Albania adopted the regulation on Information 
Accompanying Transfers of Funds, aiming partial alignment with the relevant EU Regulation. The 2023 
tourism  boom  led  to  an  increased  demand  for  credit  card  e-payment  transactions,  although  high 
interchange fees mean this remains expensive for businesses, and also partly determined the 18% increase 
in the number of installed points of sale (POS).  

On the fight against money laundering and terrorism financing, Albania continued to implement the 
Moneyval  recommendations  on  improving  measures  on  tackling  money  laundering  and  terrorist 
financing,  and  substantially  completed  the  2020  Action  Plan,  which  resulted  in  FATF  decision  on  de-
listing  Albania  from  its  grey  list  in  October  2023.  In  July  2024  the  Albanian  National  Coordination 
Committee on fight against Money Laundering adopted the Strategy on prevention of money laundering 
and  terrorism financing  2024-2030.  Albania  has  legislation in  place  on  risk management  standards  and 
licencing  requirements  for financial  institutions,  including  non-banks  and  foreign  exchange  bureaux,  in 
line with Moneyval recommendations. National legislation adopted in July 2023 is designed to be aligned 
with  the  EU  acquis  on  anti-money  laundering  and  the  register  of  beneficiary  owners  is  operational. 
Following  the  adoption  of  this  law,  the  Albanian  Finance  Intelligence  Unit’s  (AFIU)  capacities  were 
reinforced,  and it  enhanced  internal training  on financial investigation techniques, asset  tracing,  seizure 
and confiscation, on risk-based implementation techniques, and on cybercrime prevention indicators, and 
training  on  this  was  also  provided  to  other  entities.  Major  reporting  entities  to  the  AFIU  during  the 
reporting  period  continued  to  be  the  financial  institutions-  banks  and  non-banks,  followed  by  notaries 
offices. During 2023, the Bank of Albania inspected 50 foreign exchange offices (FEO), focusing on the 
fulfilment  of  anti-money  laundering  (AML)  legislation  requirements.  These  led  to  15  fines  and  eight 
warning notices, and the revocation of licenses to 14 FEOs, reducing their number to 621.  

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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. 

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 Directive on the use of digital tools and the Directive on cross-border mergers, divisions 
and  conversions,  as  well  as  with  rules  on  encouraging  long-term  shareholder  engagement  (Shareholder 
Rights  Directive  II)  and  with  some  aspects  related  to  take-over  bids.  A  corporate  governance  code  for 
listed  companies  still  needs  to  be  developed  in  line  with  the  OECD  principles.  The  National  Business 
Centre is responsible for company registration, allowing free online registration and online access to data. 
In February 2024, the National Business Centre received the ISO 9001:2015 certification for services in 
the  business  register,  the  register  of  licences,  authorisations  and  permits  and  the  register  of  beneficial 
owners. 

In  the  area  of  company  reporting, the  Law  on accounting  and financial statements  is  partially  aligned 
with  the  EU  2013  Accounting  Directive  with  progress  to  be  made  as  regards  application  to  SMEs  and 
public-interest  entities  as  well  as  on  country-by-country  reporting.  In  addition,  Albania  needs  to  align 
with the 2022 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.  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 trademarks, designs, 
biotechnological inventions and pharmaceuticals. Rules for the legal protection of copyright and related 
rights cover, for instance, books, films, software and broadcasting. 

In the area of copyright and related rights, implementing legislation concerning the procedure and fair 
compensation  for  the  use  of  orphan  works  as  well  as  the  database  of  works  subject  to  copyrights  was 
approved in November 2023.   

The new process of licencing and renewal of licencing of collective management organisations (CMOs) 
was  completed  and  the  first  call  launched  in  September  2024.  The  process  of  drafting  the  new 
methodology  and  tariffs  of  copyright  revenues  was  finalised  and  is  in  consultations  with  interested 
parties. 

Albania is not yet aligned with several provisions of the Directive on collective management of copyright 
and related rights and multi-territorial licensing of rights in musical works for online use in the internal 
market,  the  Directive  on  the  exercise  of  copyright  and  related  rights  applicable  to  certain  online 
transmissions of broadcasting organisations and retransmissions of television and radio programmes, and 
the Directive on copyright and related rights in the Digital Single Market. 

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 and on trademarks.  

In  2023,  1 311  national  and  2 022  international  applications  to  register  trademarks  were  filed  with  the 
General  Directorate  of  Industrial  Property  (compared  with  1 165  and  2 072,  respectively,  in  2022).  In 
2023, 69 applications to register industrial designs were submitted to the General Directorate of Industrial 
Property  (compared  with  19  in  2022).  There  were  nine  applications  for  national  patents  in  2023, 
compared with 21 in 2022. 

61 

 
 
The State Inspectorate for Market Surveillance (SIMS) is responsible for monitoring the enforcement of 
intellectual property rights. In 2023, the copyright division of SIMS carried out 354 inspections, resulting 
in 52 administrative sanctions. The SIMS industrial property division carried out 178 inspections in 2023, 
resulting in nine administrative sanctions. 

Bilateral collaboration with the European Union Intellectual Property Office is ongoing in the framework 
of inter alia an MoU, focusing mainly on convergency of common practices, technical and operational 
support with harmonisation of acquis and examination guidelines, as well as integration into EUIPO data 
bases and networks. 

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. 

Antitrust and mergers 

Albania’s legislative framework is broadly in line with the EU acquis and the SAA.  

In  2023,  to  further  align  its  secondary  legislation  with  the  EU  acquis,  the  Competition  Commission 
approved  two  decisions  on  the  manual  of  procedures  for  anti-competitive  conduct  and  on  the  best 
practices for the disclosure of information in databases, during the investigation and control procedures of 
concentrations. 

The  institutional  framework  is  based  on  the  Albanian  Competition  Authority  (ACA)  which  is  an 
operationally  independent  authority  reporting  to  Parliament  and  enjoys  adequate  prerogatives.  On 
enforcement  capacity,  the  ACA  has  maintained  the  total  number  of  staff  at  46.  On  implementation, 
between  September  2023  and  August  2024, the  ACA  issued  96  decisions, including  four  on prohibited 
agreements,  three  on  abuse  of  a  dominant  position  and  53  authorising  concentrations.  The  ACA  has 
carried out the preliminary and in-depth investigation procedures involving dawn raids in several sectors 
of the economy. The ACA should continue to strengthen its enforcement of competition rules. 

State aid 

On  the  legislative  framework,  the  framework  Law  on  State  aid  largely  reflects  Articles  107  and  108 
TFEU but the implementing legislation is partially aligned with the EU acquis only in some areas such as 
the General Block Exemption Regulation.  

Regarding  the  institutional  framework,  the  State  Aid  Commission  (SAC)  is  responsible  for 
implementing the Law on State aid. Its operational independence, which is required by the SAA, has yet 
to  be  guaranteed,  given  that  it  is  an  arm  of      the  Ministry  of  Finance  and  Economy.  In  this  respect,  a 
policy impact assessment (PIA) was finalised and will serve as a technical blueprint, offering options for 
ensuring the operational independence of SAC. 

The  SAC’s  enforcement  capacity  remains  insufficient  as  the  staffing  of  its  secretariat  needs  to  be 
significantly increased. On implementation, in the reporting period, the SAC approved five decisions on 
the  authorisation  of  State  aid  including  the  support  to  eco-innovative  businesses  as  well  as  the 
employment of newly graduated students.  The SAC can issue decisions on illegal and incompatible aid   
and order recovery but has not done so to date. 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 

62 

 
 
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.   

In the area of banking and financial conglomerates, technical work continued but is not completed on 
further  alignment  with  the  latest  versions  of  the  Capital  Requirements  Regulation  and  the  Capital 
Requirements  Directive.  During  the  reporting  period  the  Bank  of  Albania  (BoA)  performed  two  full-
scope inspections of financial institutions. Upon Albania’s delisting from the FATF ‘grey list”, the BoA 
submitted its official request to the European Bank Authority for the equivalence assessment. In October, 
the  BoA  supervisory  board  adopted  implementing  legislation  on  data  reporting,  identification  and 
monitoring  of  indicators  related  to  lending  and  investment  in  real  estate  by  banks.  There  were  no 
developments  on  further  alignment  with  the  recovery  and  resolution  framework  for  banks  with  the  EU 
acquis. BoA completed the 2023 resolution planning cycle for 11 banks.  

In the reporting period four banks issued financial instruments eligible for the minimum requirement for 
own funds and eligible liabilities (MREL), thus meeting the intermediate target level for 2023. BoA its 
work on strengthening the resolvability of banks and updated existing and prepared new methodology for 
the calculation of MREL, as well as policies and guidelines. It participated in resolution college meetings 
organised  by the  SRB  for two  European  banking  groups  with  subsidiaries  operating  in  Albania.  Of  the 
eleven  banks  operating  in  Albania,  two  are  systemic  banks  that  are  subsidiaries  of  EU  banks.  BoA 
monitors the performance of financial assets of the Resolution Fund each quarter through the Albanian 
Deposit Insurance Agency. It maintained the same non-performing loan ratio level during the first half of 
2024, as in 2023 (4.7% in July 2024). Due to a fraud case involving non-bank financial institutions and 
bailiff  offices  in treatment of  bad loans,  which  was investigated  by the  judiciary  institutions  during the 
reporting period, BoA took legal measures on revocation of licenses of the involved non-bank financial 
institutions  and  amended  the  regulation  on  licensing.  Legal  framework  revision  that  ensures  consumer 
protection on the activities of non-bank financial institutions, as well as other related measures that ensure 
transparency in contract executions by bailiff services is needed. 

In  the  area  of  insurance  and  occupational  pensions,  in  November  2023  Albania  adopted  a  Law  on 
private  pension  funds  to  increase  alignment  with  the  EU  acquis  on  the  activities  and  supervision  of 
institutions for occupational retirement provision (IORP II) and continued with the adoption of sub-legal 
acts during the first half of 2024. Albania needs to step up efforts to increase its level of compliance with 
principles of the International the Association of Insurance Supervisors (IACS).  

On the financial market infrastructure, Albania has not made further progress in the reporting period. 
The country remains partially aligned with financial markets infrastructure legislation. 

On securities markets and investment services,  AFSA supervises the securities market in accordance 
with the national law on capital markets. In November 2023, the AFSA adopted implementing legislation 
on the periodic reporting by investment firms, banks offering investment services, and market institutions, 
designed to align with the EU  acquis. On investment funds,  Albania has not reported further progress 
since 2023 and it remains partially aligned. While it made achievements with investment fund legislation, 
a number of deviations from the EU  acquis require further adjustment. Moreover, in light of the recent 
review  of  the  EU’s  frameworks,  Albania  would  need  to  step  up  its  efforts  to  align  its  regulatory 
framework. 

On sustainable and digital finance, BoA has in place Mid-term Green Strategy 2023-2025 focused on 
the  management  and  supervision  of  climate-related  financial  risks  in  the  financial  sector.  A  progress 

63 

 
 
report on its implementation was published in May 2024. The AFSA has incorporated in its 2023-2027 
strategy,  priority  actions  with  green/sustainable  financing  aspects.  In  August  2024  Bank  of  Albania 
published  the  guidelines  for  climate  risk  management  in  the  banking  sector.  Albania  is  part  of  the 
Sustainable Banking and Finance Network (SBFN) since March 2024, and of the Network for Greening 
the  Financial  System.  It  is  also  committed  to  align  the  sustainable  finance  practices  with  international 
standards.  Albania  has  a  Law  in  place  that  regulates  the  issuance  of  digital  tokens/virtual  currencies, 
licencing, monitoring and supervision of entities using distributed ledger technology, though the law has 
not been updated since 2020 and government has not signalled that it issued any licence for operations in 
this area. AFSA is part of a national working group related to strengthening of investigation techniques in 
the area of cybersecurity, harmonised with the 2020 Cybersecurity Strategy, and crypto-currency related 
crimes  (See  also  Chapter  4  -  Free  Movement  of  Capital  and  Chapter  24      –  Justice  Freedom  and 
Security). AFSA has cooperated with the EU national regulators and US agencies under the MoU with the 
International Organisation of Securities Commission (IOSCO) to enable exchange of information during a 
cross-border investigation. 

Chapter 28: Consumer and health protection 

EU  rules  protect  consumers’  economic  interests  and  also  ensure  product  safety,  prevent  dangerous 
imitations and establish liability for defective products. The EU also guarantees a high level of protection 
of  public  health  and  in  particular  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. 

Consumer protection  

On  horizontal  aspects,  from  early  2024  the  Ministry  of  Economy,  Culture  and  Innovation  is  now  in 
charge  of  consumer  policy.  Albania  adopted  its  2023  –  2030  cross-cutting  strategy  on  consumer 
protection and  market surveillance  (CPMS).  In  the  reporting  period  Consumer Protection  Consumption 
body  (CPC)  received  96  complaints,  however,  information  was  not  available  on  how  CPC  dealt  with 
these  complaints].  The  government  organised  a  Consumer  Week  in  March  2024  to  raise  awareness  of 
consumer  issues.  There  have  not  been  any  developments  on  enforcement  and  redress.  On  product 
safety, Albanian legislation is aligned with the EU acquis apart from aspects that are only relevant to EU 
Member  States,  especially  regarding  obligations  linked  to  Safety  Gate  (the  EU  rapid  alert  system  for 
dangerous non-food products). Albania is yet to align with the new EU acquis on General Product Safety. 
Albania is only partly aligned on product liability. (For information on market surveillance, see Chapter 
1 – Free movement of goods). 

Public health 

In 2023 public health expenditure was 2.8% of GDP, 9.03% of total government expenditure, down from 
3.04% and 9.47% respectively in 2022. Out-of-pocket health spending is significant. Between 2014-2024 
only 13% were allocated to medical equipment, leading many citizens to use private healthcare providers. 
On  e-health,  an  electronic  system  for  collecting  and  reporting  health  information  of  medical  records 
(HIS) is being piloted.  

Implementing legislation on substances of human origin was adopted in February 2024 designed to align 
with  the  EU  acquis.  There  was  no  progress  on  alignment  on  medicinal  products  for  human  use,  on 
medicinal products for veterinary use or on medical devices, which all remain partly aligned with the 
EU  acquis.  Following  the  call  for  interest  to  join  the  Critical  Medicines  Alliance,  eight entities  from 
Albania  are  now  participants. On  tobacco  control,  Albania  needs  to  accede  to  the  World  Health 
Organization’s  framework  Convention  Protocol  to  eliminate  illicit  trade  in  tobacco  products,  and  to 
further  align  with  the  rest  of  the  EU  tobacco  control  acquis  (See  Chapter  16  –  Taxation).  The  ban  on 
smoking in indoor public areas is rarely enforced.  

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There have been no developments on communicable diseases and cross-border health threats, which 
all remain partly aligned with the EU acquis, and the foreseen new epidemic and pandemic preparedness 
plan is yet to be adopted, and is yet to update ECDC on this. There were also no developments on alcohol 
related harm reduction, or on drug abuse and prevention, where prevention activities remain sporadic. 
A  national  cancer  control  plan  is  in  place  (though  it  is  unclear  if  it  is  aligned  with  the  EU’s  Beating 
Cancer Plan), and screening programmes are ongoing on colorectal, breast, and cervical cancers. A cancer 
registry is yet to be created. On mental health, a 2023 – 2026 Mental Health Action Plan (MHAP) was 
adopted  in  September  2023.  On  nutrition  and  physical  activity,  malnutrition  remains  a  critical  issue, 
especially  for  children  and  pregnant  women.  On  health  inequalities,  though  the  2021-2025  national 
action  plan  for  the  Equality,  Inclusion  and  Participation  of  Roma  aims  at  enhancing  Roma  access  to 
quality health and preventive services, weaknesses in its implementation remain. There have been no new 
developments on access to health for women, including on sexual and reproductive health]. 

On anti-corruption, bodies that ensure market surveillance have rules on transparency, ethics and conflicts 
of  interest,  and  are  subject  to  audits.  On  public  health  there  are  anti-corruption  measures  in  place  on 
cosmetics, and there are control systems on control pharmaceutical manufacturers and to track veterinary 
medicine stocks. The health sector has been identified as a vulnerable sector in the draft National Anti-
Corruption Strategy 2024-2030, however, a comprehensive risk assessment of the sector and development 
of specific measures is yet to be ensured.  

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). 

Chapter 10: Digital transformation and media 

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

On  electronic  communications,  limited  progress  was  made  in  implementing  the  112  single  European 
emergency number. The draft Decision of the Council of Ministers on rolling out 112 across the country 
is  not  yet  finalised.  The  new  Law  on  electronic  communications  aiming  to  further  align  with  the  2018 
European  Electronic  Communications  Code  Directive  was  adopted  in  May  2024.  The  Broadband 
Competence  Office  (BCO)  unit  was  established  as  integrated  part  of  the  Ministry  of  Infrastructure  and 
Energy to support the deployment of high-speed broadband across the country. 

In the first quarter of 2024, fixed internet broadband reached was around 634K or 0.3% more compared to 
Q4 of 2023. There is still a gap in fixed internet broadband penetration between urban and rural areas: 
despite that the rural area population accounts for about 40% of the total, only 19.5% of the total number 
of fixed broadband connections are in rural areas. The broadband penetration rate for families at the end 
of 2023 was up to 88% from 81% at the end of 2022, and 22.9% for population from 20.9 at the end of 
2022. By the Q1 of 2024, there were around 2 million active users of mobile broadband, 2.8% less than 
Q4 of 2023.  

In  the  area  of  digital  services,  as  regards  online  public  services,  during  the  reporting  period  95%  of 
applications for 1 237 public services were offered online. Authorities need to ensure and facilitate equal 
access to online services for all citizens and to enhance efforts to align with the Digital Services Act and 
Digital Markets Act. 

65 

 
 
 
In November 2023 Albania ratified the agreement for joining the Digital Europe Programme (DEP) and 
in December 2023 an interinstitutional working group was set up aiming to promote DEP and coordinate 
activities among stakeholders.  

On digital skills, the country continued during 2023 the process initiated in 2022 for the first grade, ICT 
curricula for the second grade were developed and the teachers and schools’ principals were trained.    

Under  digital  trust  and  cybersecurity,  following  the  2022  cyber-attacks,  Albania  has  continued  to 
strengthen  its  cybersecurity  architecture  and  capacities.  It  adopted  a  Law  on  cybersecurity  in  February 
2024,  making  important  major  progress  towards  aligning  its  legislative  framework  with  the  NIS2 
Directive.  The  Cybersecurity  Operational  Centre  was  established  at  the  Albanian  Armed  Forces  in 
January  2024.  The  authorities  need  to  continue  their  efforts,  in  particular  in  the  field  of  critical 
information infrastructure, both in the public and private sector, and ensure that the new national security 
operations  centre  becomes  fully  operational.  Authorities  need  to  further  strengthen  cybersecurity 
capacities  including  through  awareness-  raising  activities  and  trainings.  The  draft  cybersecurity  action 
plan 2023-2025 is yet to be adopted to align with EU harmonised standards, protect critical infrastructure, 
and enhance national security. Stronger cooperation with the private sector and civil society is needed, to 
enhance  the  implementation  and  monitoring  of  cybersecurity  policies.  Albania  needs  to  continue  the 
implementation of the 5G Toolbox measures, including assessing the risk profile of suppliers and putting 
in  place  appropriate  restrictions  and/or  exclusions  for  high-risk  suppliers.  The  draft  Law  on  electronic 
identification and trust services, aiming to align with the European Digital Identity regulation establishing 
the new EU Digital Identity and Trust services framework, is yet to be adopted. Further efforts are needed 
for the alignment with the ePrivacy Directive. 

Albania needs to release the 700 MHz band from broadcasting use in order to allow for the use of that 
band for mobile communications, and to avoid the creation of harmful interference that disturbs the use of 
that band for mobile communications, including 5G in Albania’s neighbouring countries. 

Albania  needs  to  improve  the  collection  of  statistical  data  on  digital  performance  and  digital 
competitiveness as per the Digital Economy and Society Index. 

On  media, since  July  2023  and  the  approval  of  the new  Broadcasting  Code  by  the  Audiovisual Media 
Authority  no  further  legislative  developments  took  place.  Authorities  need  to  ensure  that  AMA  is 
provided with sufficient material and technical resources to increase its media monitoring and reporting 
capacity. 

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. 

On indirect taxation, the standard VAT rate is 20% and the reduced rates are 6% and 10%. Asubstantial 
number  of  exemptions  not  set  out  in  the  EU  acquis  remain.  In  2024,  new  VAT  exemptions  were 
introduced for live animals for reproduction and for beneficial insects.  

Excise  taxation  is  partially  aligned  with  the  EU  acquis  regarding  excise  duty  for  alcohol  and  alcoholic 
beverages, tobacco, energy products and general rules for the production, keeping, storage, movement and 
controls  on  excisable  products.  The  alignment  on  excise  minima  on  tobacco  products  is  expected  by 
January  2026.  The  calendar  for  cigarette  excise  rates,  approved  in  November  2021,  continued  to  be 
applied. It envisages a 15% increase over 4 years thus gradually aligning with the EU minima by 2026 
(except for mixed excise duty structure (ad valorem and specific) for cigarettes which is mandatory under 
the  EU  acquis).  National  legislation  providing  for  a  preferential  rate  of  tax  for  “Albanian  rakia”  is  not 
aligned  with  EU  legislation.  National  legislation  is  aligned  with  the  EU  law  on  excise  duty  for  energy 

66 

 
 
products,  with  the  exception  of  electricity  which  is  not  subject  to  excise  duty  in  Albania.  The  Excise 
Movement and Control System (EMCS) is established at the national level. 

On  direct taxation,  the national  tax  was amended to  plan a  gradual  increase  of  the  carbon tax  rate for 
coal over a 4-yearperiod starting in 2026. The industrial incentives regime was abolished in the income 
tax law adopted in March 2023.  As a result,  as  of  February  2024  Albania is  no  longer considered  as  a 
potentially harmful tax regime within the scope of the Forum on Harmful Tax Practices.  

The  EU  cooperates  with  Albania  through  an  enhanced  dialogue  on  tax  good  governance  within  the 
framework of the EU list. 

The Ministry of Finance has committed to review and formally adopt a medium-term revenue strategy by 
end 2024, in which a review of tax exemptions is one of the planned actions.  

Albania should ensure that any future voluntary tax compliance (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  Slovakia  in  October  2023.  Albania  is  yet  to  conclude  double  taxation  agreements  with  Denmark, 
Cyprus, Lithuania, Portugal.  

The Law on automatic exchange of information on financial accounts applies the OECD provisions and 
Albania  has  expanded  the  number  of  jurisdictions  with  which  it  exchanges  information.  Albania  has 
automatically  exchanged  financial  account  information  with  85 jurisdictions  (including  27  EU  Member 
States)  in  2023  and  has  received  information  from  74  jurisdictions  (of  which  26  EU  Member  States) 
within the framework of the OECD common reporting standard.  

An amendment to the tax procedure law was adopted in December 2023 to introduce the framework for 
country-by-country reporting, as per OECD BEPS (Base Erosion and Profit Shifting).  

Regarding operational capacity, the number of vacancies in the tax administration remains high at 164 
vacancies  end  June  2024  compared  to  181  in  March  2023.  Digitisation  of  the  fiscalisation  process  is 
considered  fully  complete,  although further  work  on the  use  of  the  generated data is  necessary.  Efforts 
need  to  be  kept  up  to  ensure  and  increase  compliance  and  to  increasingly  use  the  available  data  in tax 
monitoring  and  risk  assessments.  Furthermore,  Albania  should  start  preparations 
to  achieve 
interconnection and interoperability with EU system. 

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. 

On  monetary  policy,  Albania  has  a  high  level  of  alignment  with  the  EU  acquis  on  the  prohibition  of 
privileged access of the public sector to financial institutions. The legislation of Albania is partly aligned 
with the EU acquis on the central bank independence and on the prohibition of monetary financing to the 
public sector. Albania needs to take the necessary steps to fully align the objectives of the BoA with the 
EU acquis. Further efforts are needed to ensure the full personal independence of the BoA’s governor and 
that the BoA’s bodies and members are not put in a position of taking instructions from the government 
or  parliament  and  that  the  BoA  fully  complies  with  the  monetary  financing  prohibition.  Following  the 
decline  of  inflation  rate  quicker  than  expected  during  the  first  half  of  2024,  down  to  2.1%  in  July,  the 
BoA  eased  the  policy  rate  down  to  3%  in  July,  the  overnight  deposit  rate  to  2.0%  and  the  overnight 
lending rate to 4.0%. The Albanian currency continued its appreciation vs Euro, but at a slower pace than 
in 2023. 

On  economic  policy,  Albania  has  made  progress  in  strengthening  its  fiscal  governance  and is  partially 
aligned  with  the  EU  acquis  on  the  medium-term  budgetary  frameworks.  Albania’s  legislation  is  also 

67 

 
 
partially aligned with the EU acquis on budgetary forecasts, statistics, numerical fiscal rules, transparency 
of general government finances, and macroeconomic imbalance procedure. Albania needs to improve its 
macroeconomic and government finance statistics, establish an independent fiscal institution, produce its 
own  forecast  and  refine  its  forecasting  process.  Further  efforts  are  required  to  align  Albania’s  budget 
legislation and practices with the requirements set in Directive 2011/85/EU. 

Albania  complied  with  its  fiscal  rules,  achieving  a  positive  primary  balance  by  the  end  of  2023,  thus 
ahead of target. The government debt ratio fell more than expected in 2023, to below 60% of GDP (see 
also section 2.3 - Economic criteria). Budget revisions continue to be endorsed through normative acts, 
although  less  than  in  2022  (twice  in  2023,  and  twice  so  far  in  2024),  which  poses  credibility  issues 
regarding the budget process. Albania has started the revision of pension scheme, a process which would 
have to address the gap in the social insurance scheme, including a revision of methodology for setting 
the minimum and maximum pensions. 

National account statistics are partially in line with European System of National and Regional Accounts 
(ESA 2010), (See Chapter 18 - Statistics for a full analysis of this). 

Albania  is  partially  aligned  with  the  requirements  of  the  coordination  and  surveillance  of  economic 
policies foreseen by the Treaty on the Functioning of the European Union. Its active participation in pre-
accession economic surveillance has contributed to developing the administrative capacity of the country 
relevant  for  this  chapter.  Albania’s  Economic  Reform  Programmes  (ERP),  including  the  latest  one  for 
2024-2026 adopted on 11 January 2024, address policy areas and reform plans comparable to the Stability 
or Convergence Programmes (SCP) submitted annually by the Member States until 2023. Albania’s ERPs 
include comprehensive macroeconomic and fiscal as well as macro-relevant structural reform parts. The 
key  challenges  presented  in  the  2023-2026  ERP  partly  correspond  to  those  identified  by  the  European 
Commission, but the policy guidance jointly adopted at the 2023 Economic and Financial Dialogue has 
been  only  partially  implemented.  Albania’s  ERPs  would  benefit  from  the  inclusion  of  long-term  and 
productivity  indicators,  improved  analysis  of  fiscal  policy  impact  and  fiscal  risks  and  a  more  effective 
intra-governmental coordination.  

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. 

On labour law, implementation of the law as amended by the 2015 Labour Code is ongoing. On health 
and  safety  at  work,  legislation  is  partially  aligned  with  the  EU  acquis.  Institutional  capacities  and 
inspections  processes  remain  weak.  Albania  has  yet  to  adopt  the  strategy  for  occupational  health  and 
safety, in line with the EU strategic framework on health and safety at work 2021-2027. 

On labour inspection activities, 5.5% of declared economic activities were covered by inspection visits 
during 2023. Understaffing resulted in total inspections decreasing by 2.1% compared to 2022. Over the 
past year progress was made on promoting the e-inspection platform. The capacity of the social services 
inspectorate remains very limited. In 2023, 108 inspections were carried out, compared to 135 in 2022.  

On  social  dialogue,  the  National  Labour  Council  did  not  convene.  The  tripartite  collaboration  between 
the  State  Labour  and  Social  Services  Inspectorate,  trade  unions  and  employer  organisations  remains 
weak.  

Regarding labour force participation and unemployment rate see the statistical annex and the section 
on the functioning of the labour market under 2.3 Economic criteria. 

On  employment  policy,  Albania  is  implementing  the  new  2023-2030  national  employment  and  skills 
strategy.  The  Youth  Guarantee  (YG)  Implementation  Plan  attached  to  this  strategy  kicked  off  in  pilot 

68 

 
 
phase in October 2023 in three municipalities. The authorities now need to assess the pilot phase and to 
fully roll out the YG across the country. 

Progress  was  made  on  implementing  the  exit  strategy  for  recipients  of  economic  aid.  A  referral 
mechanism for employment  and  social integration  of working-age  family members  benefiting from  the 
economic  aid  scheme  became  functional  in  12  regions.  4 158  beneficiaries  of  economic  aid  were 
employed/enrolled  in  vocational  training  in  2023.  In  2023,  17 880  young  people  not  in  employment, 
education or training (NEET) were registered in the National Agency for Employment and Skills (NAES) 
database.  A  new  programme  to  subsidise  the  development  of  digital  skills  and  Coding  started  in  2023 
with 3 625 participants (2 165 unemployed jobseekers pay free). 

On  social  protection  and  inclusion,  2023  was  the  last  year  of  implementation  of  the  National  Social 
Protection Strategy 2015-2023 (NSPS). The new national Strategy for Social Protection was adopted in 
March  2024.  Some  progress  was  made  in  the  implementation  of  the  2015-2023  strategy  on  social 
protection.  The  Survey  on  Income  and  Living  conditions  published  in  February  2024  showed  that  in 
Albania, in 2022, the rate of those at risk of poverty is 20.6% of the population, 1.4 percentage points less 
than 2021. However, this proportion reaches to more than 25% when it comes to children (27.4%), with 
girls more affected (28.6%). 

Monitoring of the   national action plan on persons with disabilities remains weak. The mid-term report 
2021-2023 is yet to be published. Since 2023, the bio-psycho-social evaluation scheme is   implemented. 

On  the  inclusion  of  Roma  and  Egyptians,  the  National  Action  Plan  for  Equality,  Inclusion  and 
Participation  of  Roma  and  Egyptians  (NAP)  2021-2025  is  being  implemented.  The  human  resources 
allocated in the Ministry of Health and Social Protection (MoHSP) to the coordination of Roma-related 
policies, remained weak. Roma and Egyptians continue to face skills-related challenges for access to the   
labour market. The inclusion of Roma in the public administration needs to improve. 

The National Electronic Register of Social Care Services is not fully functional.   The authorities need to 
ensure that social services are established and functioning across all municipalities. In the Medium-Term 
Budget  2024-2026,  within  the  Social  Care  Programme,  the  Social  Fund  is  planned  to  increase  by  7% 
every  year,  and  to  finance  at  least  12  new  types  of  social  services  each  year.  Local  governments 
frequently  lack      predictable  funding,  capacities  and  resources  to  effectively  set  up,  manage  and 
implement social services. 

On  non-discrimination  in  employment  and  social  policy,  the  full  alignment  with  EU  legislation 
remains  to  be  completed  and  especially  with  the  ‘Employment  Equality  Directive’  2000/78/EC.  The 
independent Commission for Protection against Discrimination signed a cooperation agreement with the 
Young  Professionals  Network  and  with  the  State  Inspectorate  of  Labour  and  Social  Services  on 
monitoring equality and non-discrimination.  

On  the  employment  of  persons  with  disabilities,  an  increase  in  the  registration  of  people  with 
disabilities as jobseekers was noticed reaching a total of 2 656 by the fourth quarter of 2023 compared to 
437 in the fourth quarter of 2022.  

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

Regarding labour force participation and unemployment rate see the statistical annex and the section 
on the functioning of the labour market under 2.3 Economic criteria.  

69 

 
 
90
80
70
60
50
40
30
20
10
0

As  of  January  2024,  following  the 
restructuring  of 
the  ministries, 
resources  were  added  to  the  General 
Department  for  Employment  and 
Skills. The NAES has yet to fill in all 
its vacancies. 

Graph 19: Albania - Economic activity rate by gender 

75,8

77,3

59

61,4

80

82

66,8

69,6

12,4

14,4

13,6

11,8

On  equality  between  women  and 
men  in  employment  and  social 
inequality  persists 
policy,  gender 
with  the  employment  rate  for  men 
(72.5% in the fourth quarter of 2023) 
exceeding  women  by  10.4%.  The 
labour  force  participation  rate  for 
women  decreased  by  0.4  percentage 
points  and  for  men  increased  by  1.1 
percentage  points  compared  to  the 
same quarter in 2022. Albania needs 
to  align  its  legislation  with  the  EU 
work-life balance directive. During 2023 there were 14 448 beneficiaries’ maternity leave. 

2015-2020
average

2022

2021

11,7

10,9

Economic activity rate of the population aged 15-64 (%)
Unemployment rate of the population aged 15-64 (%), total

2023

Men Women Men Women Men Women Men Women

11,1

11,3

Source: ECFIN

Chapter 20: Enterprise and industrial policy  

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

On enterprise and industrial policy principles, Albania continued to implement the 2021-2027 National 
Business  and  Investment  Development  Strategy  (BIDS)  and  its  2020-2024  sustainable  industrial 
development programme. It amended its Law on start-ups in innovation to set up a start-up agency and to 
ensure it covers digital nomads. Adoption of the Smart Specialisation Strategy is foreseen by end of 2024 
(see  chapter  25  –  Science  and  research),  and  in  March  2024  Albania  launched  its  circular  economy 
roadmap  (see  chapter  27  -  Environment  and  climate  change).  There  has  been  no  progress  with  the 
drafting  of  a  framework  law  on  investment  and  Albania  extended  the  expiry  date  of  the  Strategic 
Investment  Law  until  the  end  of  2024.  The  newly  established  Ministry  of  Economy,  Culture  and 
Innovation  and  the  Minister  for  Entrepreneurship  and  Business  Environment  have  intensified  dialogue 
with private actors through the regular meetings of the Investment Council and have resumed meetings of 
the  National  Economic  Council.  In  January,  the  government  established  a  “‘Business  House’,  to  be  a 
facilitator for dialogue between the Minister for Entrepreneurship and other line ministries with private 
stakeholders.   

Despite improvements  on stakeholder  consultation  during  the  reporting  period,  business  representatives 
continue to have serious concerns about the level of public consultation by government. A government 
proposal  to  move  from  a  voluntary  membership  to  mandatory  membership  of  the  national  chamber  of 
commerce is questioned by business and investor associations, inter alia as introducing additional cost to 
doing  business  for  a  more  cumbersome  organisation  and  less  services.  The  main  business  challenges 
remain corruption and  informality,  property  title  issues,  non-transparent  public procurement  procedures 
(particularly  public-private  partnerships)  and  the  granting  of  strategic  investor  status,  finding  skilled 
workers,  access  to  finance,  and  the  need  to  diversify  in  the  context  of  digital  and  green  transition. 
Businesses welcome that there has been some progress on justice reform and anti-corruption, problems 
remain due lengthy court procedures. 

On  enterprise  and  industrial  policy  instruments,  better  coordination  between  the  state  institutions 
which provide financial incentives to businesses and AIDA is needed, in order to ensure better access to 

70 

 
 
information  for  the  beneficiaries.  During  the  first  trimester  of  2024,  the  Agency  for  Start-Ups  and  the 
Minister for Entrepreneurship launched the first call for financing of the start-ups in innovation. Further 
alignment with the EU’s late payment Directive needs be ensured, 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,  but  the  national 
capacity to support SMEs remains limited.  

Albania participates in the SME pillar of the Single Market Programme, having signed the Association 
Agreement in December 2023. Further efforts on the Digital Economy and Society Index (see chapter 10 
– Digital transformation and media) would improve the coverage of the key performance indicators on 
digitalisation for the long-term competitiveness used in EU industry policy  Albania has increased funds 
for enhancing cooperation between universities and businesses, and was positively assessed in the 2023 
OECD competitiveness outlook, in which it made progress in 13 out of 15 dimensions. 

On  sectoral  policies,  in  April  2024  Albania  established  a  European  Institute  of  Innovation  and 
Technology on raw materials in Elbasan, staffed and equipped from the state budget. A technology park 
was inaugurated in April 2024 in Durres, aiming to attract investments in the automotive, information and 
communication  technology  and  electronic  equipment  industries.  Albania  continued  to  implement  the 
2022-2026  cross-sectoral  strategy  and  action  plan  on  the  digital  agenda.  In  2024,  the  government 
continued  the  measures  introduced  in  June  2023  to  provide  fiscal  relief  measures  for  export-oriented 
businesses which faced high costs due to local currency’s (ALL) appreciation against the Euro.  

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. 

On  research  and innovation  policy,  in  September  2023,  the  National  Strategy  on  Scientific  Research, 
Technology and Innovation 2023 – 2030 was adopted, but the interinstitutional working group monitoring 
its implementation is yet to be established. 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. 
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, which is far less than the 2.24% EU average.  

The  Institute  of  Statistics  (INSTAT)  needs  to  produce  a  complete  data  set  on  scientific  research  and 
innovation.  Further  and  sustainable  efforts  are  needed  in  increasing  public  funding  of  research  and 
development,  incentives  for  businesses  to  increase  their  R&D  expenditure  and  to  cooperate  with 
universities and to facilitate access to research publications. 

In January 2024, the Ministry of Education and Sports allocated funding (approximately EUR   200 000) 
for  organisations  collaborating  on  international  research  projects  within  the  framework  of  the  2024 
EUREKA Western Balkans call for projects. In the framework of the Academy and Industry cooperation 
programme, a new call for Technology and Innovation Projects was launched by the National Agency for 
Science  Research  and  Innovation  in  February  2024.  In  total,  Albanian  Higher  Education  Institutions 
submitted 21 project proposals in the fields of medical sciences, ICT, agricultural and energy. 

In October 2023, the entrepreneurial discovery process was completed as planned in the roadmap for the 
smart specialisation strategy (S3). The Deputy Prime Minister’s Office is responsible for coordinating 
the development of the strategy and the S3 interministerial team is working on drafting the Strategy and 
its action plan. The S3 strategy needs to be adopted. 

Albania  was  included  for  a  second  consecutive  year  in  the  European  Innovation  Scoreboard  as  an 
emerging innovator. However, its score only increased from 41.1% of the EU average in 2023 to 41.7% 
in 2024. 

71 

 
 
On the EU framework programmes, Albania is fully associated to Horizon Europe. Its participation in 
the programme in 2023 continued to improve reaching eleven projects with a total funding of EUR 2.1 
million. The authorities need to further encourage participation of the private sector in Horizon Europe. 
National innovation efforts need to be aligned with the new European innovation agenda. In April 2024, 
Albania  launched  the  regional  centre  of  the  European  Institute  of  Innovations  and  Technology  Raw 
Materials hub in Albania (Elbasan).  

Regarding  transparency,  the  electronic  register  for  inquiries  in  the  Ministry  of  Education  and  Science 
recorded 45 exchanges in the first quarter of 2023.  

Albania needs to make further efforts to produce reliable data on research and innovation.  

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. 

On education and training, authorities started updating core curricula in pre-university education to link 
it  with  the  labour  market  needs.  in  January  2024  the  National  Programme  for  the  Professional 
Development of Teachers aiming to improve student learning outcomes. Greater efforts are still needed to 
efficiently manage the funding resources. 

During 2023, the second grade information and communication technologycurricula were designed, and 
the  teachers  and  school  principals  were  trained.  Authorities  need  to  enhance  their  efforts  towards 
effective, coherent and inclusive digital transformation of the education and training systems, including 
the  capacity  of  the  systems  to  develop  digital  skills  in  line  with  the  EU  Digital  Education  Action  Plan 
2021-2027. 

The  PISA  2022  results  published  end  2023  show  declining  results  for  Albanian  students  in  all  areas 
(mathematics,  reading  and  science).  Findings  point  to  a  serious  need  to  address  teaching  and  learning 
quality  and  inclusion  in  the  education  system  ensuring  that  young  people  are  equipped  with  the  right 
skillset for the job market. 

The Ministry of Education and Science (MoES) reported that public spending on education represented 
3.33%  of  GDP  in  2023,  while  the  forecast  for  2024  and  2025  is  2.41%  and  2.68%  respectively 
(considerably lower than the EU average 5%).  

According  to  INSTAT  data  in  academic  year  2023-2024,  533 711  pupils  and  students  were enrolled  in 
formal education, with a decrease of 3.7 % compared to the previous year.   In the same period, 416 538 
pupils and children were enrolled in pre-university education (up to upper secondary education), marking 
a decrease of 3.8 % compared to the previous year. 66 711 children were enrolled in preschool education, 
4.4 % less compared to the previous school year. In the basic education, 258 072 pupils were enrolled, 
47.9% of which were girls, 3.4% less than the previous academic year, 54.7% in primary education and 
45.3%  in  lower  secondary  education.  91 755  pupils  were  enrolled  in  upper  secondary  education,  a 
decrease  of  4.3  %  compared  to  the  previous  school  year.  Regarding  early  childhood  education,  66 711 
pupils enrolled in 2023-2024, less than the 69 750 who enrolled the previous academic year. In 2023-24, 
the number of teachers of basic education was 24 109 of which 78% were women. The ratio of primary 
education  pupils  for  a  teacher  in  public  education  was  15.1  and  in  private  education  it  was  15.2.  The 
number of teachers in upper secondary education is 8 307, of whom 69.6% were women. Regarding the 
net enrolment rates: 

On  inclusive  education,  in  the  2023-2024  school  year,  in  the  pre-university  education  system,  5 025 
students  with  special  needs  were  attending  classes  including  preschool.  4 507  students  with  disabilities 
registered in regular schools for the year 2023-2024, or 9% more compared to 2022-2023. 1 950 assistant 

72 

 
 
teachers were employed in the public pre-university education system, or about 13% more compared to 
the  previous  year.  The  participation  of  Roma  and  Egyptian  children  decreased  in  pre-university 
education  (12 508  in  2023-2024  against  13 499  in  2022-2023)  and  remained  stable  in  early  childhood 
education (2 147 in 2022-2023 against 2 150 for 2022-2023).  

Implementation of the 2022-2029 national strategy for youth continued. Over the reporting period Local 
Youth Councils were established in all 61 municipalities across the country. In October 2023 the Second 
National Youth Council was constituted. 

On vocational education and training (VET), over the reporting period public VET was offered in 29 
Vocational  Education  schools  and  10  public  vocational  training  centres  (VET).  Implementation  of  the 
VET optimisation plan started but lacked the necessary resources for its efficient roll-out. The legal basis 
for the Recognition of prior non-formal and informal learning is yet to be completed. 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.  The share  of  pupils  registered  in  VET  courses (public and  private)  has increased 
from  17.54%  (2022-2023)  to  17.88%  (2023-2024)  The  National  Agency  for  Vocational  Education  and 
Training and Qualifications (NAVETQ) is yet to be fully staffed. 

Albania  is  a  member  of  the  European  Higher  Education  Area  (Bologna  process).  Albania  continued  to 
participate  in  the  European  Solidarity  Corps  while  the  country  still  benefits  from  the  international 
dimension  of  the  2021-2027  Erasmus+  programme.  The  number  of  higher  education  capacity-building 
projects selected for funding in 2023 is 16 from which five projects are coordinated by Albanian Higher 
Education  Institutions.  Albania  is  participating  in  the  European  Education  Area  working  groups  2021-
2025. 

Albania continued to participate in the European Week of Sport. 

Regarding  the  culture  sector,  the  2019-2025  national  strategy  is  being  implemented.  Several  culture 
heritage sites were restored. In November 2023, Albania adopted implementing legislation regarding the 
assessment  and  identification  of  assess  and  update  of  database  regarding  stolen  cultural  assets.  The 
authorities  need  to  adopt  the  remaining  implementing  legislation  to  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. During the reporting 
period Albania has carried out several activities such as information sessions, training and workshops to 
promote the programme and increase the participation. 

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 and interoperability with the common EU electronic customs environment. 

On customs legislation, Albania’s customs code is broadly aligned with the different relevant aspects of 
the  EU  acquis.  Nevertheless,  considerable  efforts  should  still  be  made  to  keep  up  with  the  further 
developments  in  the  EU  customs  legislation,  in  particular  the  acts  implementing  the  Union  Customs 
Code.  No  major  legal  adjustments  were  undertaken  in  the  last  year.  The  levying  of  scanning  fees  for 
customs  declarations  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 and is 
not aligned with the Union Customs Code (UCC).  

Preparatory  work  for  the  development  of  a  National  Single  Window  and  the  preparations  to  join  the 
Common Transit Convention continued. A legal analysis has been carried out and in June 2024 a contract 
was signed to work on the technical solutions for the implementation of the NCTS at national level. The 
project started with a first workshop in July 2024.   

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Albania  is  implementing  its  authorised  economic  operator  (AEO)  programme,  with  13  AEOs  end  of 
August 2024 (with two new operators and 10 further applications under examination). Awareness-raising 
activities on the benefits of the programme continued.  

As part of the anti-fraud effort, it is recommended that Albania strengthens combating customs fraud, in 
particular  smuggling  of  tobacco  products  and  by  cooperating  with  OLAF,  and  accedes  to  the  WHO 
Framework  Convention  on  tobacco  control  protocol  to  eliminate  illicit  trade  in  tobacco  products.  No 
progress in this regard has been reported.  

Risk  Management  should  be  improved  to  include  risk  information  on  pre-arrival/departure  (security), 
simplified procedures and excise. The national rules on cash and goods transported in travellers’ baggage 
still differ from the EU acquis and should be aligned with commission implementing regulation (EU) of 
2021/776 of 11 May 2021, which includes new definitions, of cash, cash send by post, act when linked to 
criminal even with lower amount and new declaration forms. The Albanian customs administration can 
impose sanctions for non-declarations or mis-declarations of cash at the border.  

On  administrative  and  operational  capacity,  the  Albanian  Customs  Administration  (ACA)  has 
prepared  a  two-year  implementation  plan  for  2024-25,  in  alignment  with  the  overreaching  business 
strategy of the ACA 2023-27. Albania is at low levels of alignment in the area of IT systems in operation 
and  their  future  connectivity  with  the  EU  electronic  customs  environment.  A  number  of  large  scale 
investments  are  under  way  or  planned,  including  on  NTCS  and  Single  Window,  integrated  tariff 
management system and upgrades to the customs management and risk assessment systems. To cope with 
all the investments and upgrade there is a need to upgrade human resources and capacity. Efforts are also 
undertaken to increase the digital access to customs services. By the end of August 2024, 38 out of 41 
customs services were accessible online through the e-Albania portal.  

In terms of prevention of corruption, A department for anti-corruption and ethics is in place, tasked with 
processing  cases  and  complaints  received,  that  are  either  handled  by  the  operational  units,  or  the 
Investigation  Department.  Further  progress  is  needed  on  enforcement.  A  cooperation  agreement  was 
signed with the National Bureau of Investigation to grant access to the Automated System for Customs 
Data (ASYCUDA). Exchange of information with the Financial Intelligence Unit (FIU) is in place. 

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).  

Chapter 14: Transport policy 

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

Regarding the general transport acquis, the national transport strategy and its action plan for 2021-2025 
is  not  yet  adopted.  On  alignment  of  transport  policy  with  public  service  obligations  and  the  acquis  on 
public service contracts, guidelines on public  passenger transport services by road and public passenger 
transport services by rail were adopted in December 2023. 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.  The  national  ITS  strategy  for  rail  and 
maritime modes is still not adopted. Construction of the traffic monitoring centre and installation of ITS 
for 200 km of main road network are in progress and  are expected to be operational in 2024. 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  (TCT),  yet  the 
implementation  rate  of  the  five  Transport  Community  Treaty  action  plans  and  dedicated  smart  and 
sustainable mobility strategy for the Western Balkans remains slow. 

Administrative  capacity  still  needs strengthening  throughout  the transport  sector,  particularly  in  the rail 
sector. A five 5-years’ action plan is ongoing since March 2023 to enhance the capacities in planning and 
implementing  infrastructure  projects  in  rail  sector.  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.  

On road transport, efforts are still needed to align with the  acquis on electronic road toll systems and 
road  fee  enforcement,  as  well  as  on  social  and  market  rules  in  road  transport.  Road  safety  remains  a 
serious concern with casualties above the EU average, and discrepancies between national statistics and 
higher WHO estimates need to be  addressed. Albania needs to allocate sufficient financial resources to 
establish  a  road  crash  data  system  in  line  with  the  CARE  Database.  Improved  interinstitutional 
coordination  and  the  establishment  of  a  road  traffic  safety  agency  are  necessary.  During  the  reporting 
period, Albania adopted two guidelines to further align its legislation on dangerous goods.  The country 
needs to strengthen its inspection capacity on periodic roadworthiness tests. The work of drafting the road 
safety strategy started in May 2024 and it is estimated to be concluded in the first half of 2025. Albania is 
still partially aligned with the directive on road infrastructure safety management. 

On railway transport, two implementing legislation were adopted on safety and one on the licensing of 
railway undertakings. Moreover, based on a law adopted earlier in 2021, a railway safety authority was 
established.  The  staffing  process  of  the  Railway  Regulatory  Authority,  which  is  functional  since 
September  2023,  is  ongoing.  Albania  still  needs  to  ensure  full  operability  of  the  rail  network  and 
operationalise the separation of the infrastructure from the operation, in line with the Albanian Rail Code. 
A 2021 law addressing this was not applied due to the scarce financial and human resources, prompting 
Albania to draft a new law. 

Albania needs to further pursue full alignment with the EU rail safety and interoperability rules, including 
the establishment of a functioning national investigating body, the electronic register of vehicles and the 
rail  infrastructure  asset  management  system  (RIAMS).  On  train  drivers,  a  training  on  transport  of 
dangerous goods took place during the reporting period.  

On  maritime  transport,  after  continuous  efforts  to  substantially  improve  the  quality  of  the  Albanian-
flagged fleet and thus reduce the detention rate of Albanian-flagged vessels, the country managed to be 
removed from the position on the blacklist of poor flag performance to the grey list of Paris Memorandum 
of Understanding on Port State Control (Paris MoU).  

Albania 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.  

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, an assessment mission took place during the reporting period on whether the country should 
be  admitted  to  the  following  phase  of  the  European  Common  Aviation  Area  Agreement  (ECAA). 
Although the Albanian Civil Aviation Authority (CAA) has a new structure since January 2023, aiming to 
improve its operability, oversight duties are still covered by outsourced staff. In the reporting period, the 
CAA prepared and adopted a training plan to improve its capacities. 

On  multimodal  transport,  Albania  has  still  not  aligned  with  the  related  EU  directive  and  has  yet  to 
provide references to national legislation that have been aligned with the EU acquis.   

There was no progress on passenger rights. Legislation on passenger air rights is largely aligned with EU 
legislation. 

75 

 
 
 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.  

On security of supply, the national legislation is partially aligned with EU acquis for gas, electricity and 
oil. Full compliance with the oil stocks Directive and improvements in reporting and establishing a central 
oil stockholding body are needed. 

In July 2023, the Albanian Power Exchange (ALPEX) was appointed as the nominated electricity market 
operator  (NEMO)  for  both  Kosovo  and  Albania.  On  1  February  2024,  ALPEX  held  its  first  day-ahead 
auction for electricity delivery in Kosovo. This initiates the Albania-Kosovo day-ahead market coupling. 
Net domestic electricity generation, in 2023, reached 8 796 GWh, marking an increase in production by 
25.56% from 2022.  

Despite gas supply agreements, Albania’s gas infrastructure development has stalled. 

On  the  internal  energy  market,  Albania  has  made  good  progress  to  align  with  EU  acquis,  including 
certifying  the  Transmission  System  Operator  (TSO),  establishing  the  Nominated  Electricity  Market 
Operator (NEMO), and launching day-ahead and balancing markets. Some progress was achieved to align 
the gas national legislation in force with the Third Energy Package. However,  further steps are needed, 
such as aligning with Capacity Allocation and Congestion Management (CACM) and Forward Capacity 
Allocation  (FCA)  Guidelines,  implementing  an  intra-day  market,  and  strengthening  the  national 
regulatory  authority  (ERE).  Harmonisation  of  national  legislation  with  the  EU  acquis  on  the  internal 
market for electricity, on risk-preparedness and on common rules are needed to allow further integration 
of the Albania electricity systems with the countries in the region and the EU.  

Electricity prices are not fully liberalised. All customers connected to 35kV benefit from a deregulated 
market.  The  price  cap  on  electricity  for  domestic  customers  ended  in  December  2023.  From 
1 January 2024  all  the  customers  connected  at  20kV  voltage  level  are  supplied  from  the  liberalised 
market. From January 2024, 2 150 customers connected to 20 kV voltage are supplied by the Free-Market 
Supplier  FTL,  part  of  the  Operator  of  the  Electricity  Distribution  System  (OSHEE)  according  to  legal 
provisions under market liberalisation. The customers connected to 10 kV continue to be supplied by the 
supplier of last resort (FMF).  

ERE still needs to develop its capacity to address shortcomings in energy markets effectively. 

On renewable energy, a pricing methodology for consumers with installed capacity up to 500 kW was 
adopted in 2021 but it has yet not been implemented. The photovoltaic Plant of Karavasta (140 MW) is in 
operation since January 2024 while permits are being collected for the Photovoltaic Plant of Spitalla, in 
accordance with the signed contracts.  

A  total  of  222.5 MW  installed  capacity  on  wind  farms  was  awarded  in  July  2023.  The  Ministry  of 
Industry and Energy (MIE) launched a competitive procedure in January 2024 for selecting photovoltaic 
plants,  each  with  10 MW  and  100 MW  capacity  totalling  300 MW.  In  July  2024,  eight  out  of  nine 
companies have passed to the final stage and  were classified as winners with their bids for this auction 
reaching a total awarded capacity of 283.93 MWh.  

The draft Law on bioenergy requires updating to align with recent EU acquis amendments.  

The national energy efficiency action plan (NEEAP) is part of the national energy and climate plan. In 
June 2024, the Law on the Labelling of Energy-Related Products entered into force. 

However, implementing legislation on energy-efficiency obligation, labelling, increasing electric vehicles 
and  public  building  energy  performance  remains  pending.  Additional  financing  incentives  based  on 
renovating a percentage of public buildings annually are needed. 

76 

 
 
Albania has made no further progress on nuclear energy, nuclear safety and radiation protection. On 
nuclear  safeguards,  upon accession,  Albania  would need to  adjust  nuclear material control  systems to 
meet Euratom Treaty safeguards (See also Chapter 7 – Intellectual property law). 

Chapter 21: Trans-European networks 

The  EU  promotes  trans-European  networks  (TENs)  in  the  areas  of  transport,  telecommunications  and 
energy to strengthen the internal market and contribute to growth and employment. 

Albania has some level of preparation on its strategic framework for transport networks. However, the 
country  should  continue  strengthening  the  institutional  framework,  including  separation  of  rail 
infrastructure  management  and  transport  operations,  and  administrative  capacity  for  developing  and 
monitoring  TEN-T.  The  national  transport  strategy  for  2021-2025  and  its  action  plan,  also  meant  to 
include the plan for aligning the legal and institutional framework with the EU acquis, is expected to be 
adopted  by  end  of  2024.  The  Ministry  of  Infrastructure  and  Energy  has  initiated  preparations  for  the 
formulation of the new transport strategy and its action plan by 2030. The projects are being developed 
according to the  national  single  projects  pipeline (NSPP)  list  which  contains  all  the  priority  projects of 
transport  sector  agreed  under  TCT,  including  TEN-T  extension  priority  projects  at  different  stages  of 
maturity.  

In  January  2024,  Albania  ratified  the  high-level  agreement  with  the  European  Union  for  the  indicative 
maps of the Trans-European transport network. Under the revised TEN-T regulation, Corridor VIII is part 
of  the  new  Western  Balkans-Eastern  Mediterranean  Transport  corridor,  linking  south-east  Europe  with 
the centre of Europe through the Western Balkans region.   

Progress  was  made  on  developing  and  implementing  the  core  road  network  in  Albania  notably  in  the 
Adriatic-Ionian  Corridor  (AIC)  and  road  Corridor  VIII.  In  the  AIC,  the  section  from  border  with 
Montenegro  to  Lezha  is  progressing  with  the  preparation  of  the  design  study,  Thumane  -  Kashar  road 
section was completed and opened to traffic on 30 June 2024 and PPP contracts are signed for sections 
from  Kashar  to  Fier.  However,  Progress  of  preparations  on  Tirana  bypass  needs  to  accelerate.  Road 
Corridor  VIII  is  under  implementation  on  some  sections  starting  from  Elbasan.  The  road  core  network 
continued to be under five-year maintenance programmes.  

Concerning rail, the work to support the rehabilitation of the railway line segment Durrës–Rrogozhine is 
expected to start in 2025. The rehabilitation of the Durrës-Tirana line and the construction of a new line to 
the international airport is progressing in line with contractual obligations (60% completed).  Albania has 
adopted a five-year action plan that has been running since 2023, aimed at strengthening the programming 
and project management capacity, to avoid bottlenecks and make the investment grants awarded under the 
Western Balkans Investment Fund platform operational.  

Although, the government had already announced in December 2022 its plans to transfer freight activities 
from the ports of Durrës and Vlora to the port of Porto Romano, no action to this end has yet been taken. 
The  government  will  fund  the  new  Porto  Romano  port  using  state  budget  instead  of  a  public-private 
partnership.  Construction  has  not  started  yet,  and  preventing  corruption  is  crucial  to  avoid  criminal 
infiltration in the transportation and logistics chain.  

On  energy  networks,  Albania’s  policy  is  not  in  line  with  the  guidelines  for  trans-European  energy 
infrastructure  from  the  TEN-E  regulation.  The  country  needs  also  to  comply  with  the  revised  TEN-E 
Regulation, as adopted in the Energy Community, by the end of 2024.Albania does not have gas network 
on its territory. In this context, there has been no development on the interconnection between the LNG 
terminal  in  Vlora  and  regional  gas  pipelines  (the  existing  Trans-Adriatic  Pipeline  and  the  envisaged 
Ionian  Adriatic  Pipeline)  nor  has  there  been  any  development  in  the  Albania–Kosovo  Gas  Pipeline 
(ALKOGAP) that would increase regional energy security and develop a gas market in Albania.  

77 

 
 
For electricity, Albania is connected to Greece, Montenegro and Kosovo, through high voltage networks 
of  400 kV,  220 kV,  150 kV,  and  110 kV.  The  construction  of  the  new  400 kV  interconnection  line 
between  Fier  in  Albania  and  the  border  with  North  Macedonia  started  in  December  2023  while  the 
construction  of  Fier  and  Elbasan  substations  started  in  September  2023.  Both  lots  are  expected  to  be 
completed by end 2025. 

Following successful wind and solar energy auctions, strategies are needed for offshore renewables and 
for decarbonising industry and transport. Further efforts are needed to strengthen administrative capacity 
to  implement  key  TEN-E  provisions  on  project  implementation,  notably  carrying  out  permitting 
procedures within the swiftest periods in full respect with environmental diligence and assessments. 

 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.  

Environment 

In  terms  of  horizontal  legislation,  Albania  needs  to  improve  substantially  its  alignment  and 
implementation,  particularly  on  the  Environmental  Impact  Assessment  (EIA)  and  the  Strategic 
Environmental  Assessment  (SEA)  Directives.  Albania  should  ensure  the  presence  of  an  institutional 
structure  capable  to  deliver  coordinated  and  strategic  planning  of  environmental  investments,  and  the 
quality  of  investment  preparation  and  implementation  -  including  the  transparency  of  procedures, 
compliance with EIA/SEA and other elements of the horizontal acquis. The quality of EIA procedures is 
generally  low,  with  recommendations  rarely  implemented  or  monitored  and  public  participation  in 
decision-making  needs  enhancement.  Recent  amendments  to  the  Law  on  Protected  Areas  were  made 
without  a  stakeholders’  consultation.  Inspections  and  enforcement  capacity  should  be  strengthened, 
especially to address environmental crimes more effectively. The limited state budget, high staff turnover 
and lack of   expertise, have eroded the central administration’s capacity. Corruption cases, identified by 
the  Specialised  Anti-  Corruption  Structure  (SPAK)  related  to  Tirana  incinerator  project  are  under 
investigation,  with  several  municipal  directors  arrested.  Albania  should  also  ensure  environmental 
monitoring  in  line  with  EU  standards  and  adequate  administrative  capacity  for  the  implementation  and 
enforcement of the environmental acquis. 

More  efforts  are  needed  to  align  with  the  EU  air  quality  acquis,  by  extending  and  improving  the  air 
monitoring system, which currently has only seven automatic stations nationwide, non-operational due to 
insufficient allocation of funds for their maintenance. The implementation of the 2014 national air quality 
strategy is still pending.   

The  legal  framework  for  waste  management  is  only  partially  aligned  with  EU  acquis,  needing 
substantial efforts for full compliance, as Albania’s waste management policies do not currently aim to 
reach  the  EU  waste  hierarchy  goals  and  recycling  targets.  The  National  Agency  for  Waste  Economy, 
working on the implementation of the waste hierarchy and promotion of waste separation and recycling, 
has  started  its  work.  More  awareness,  financial  incentives  and  finalising  the  draft  law  on  extended 
producer responsibility are needed. The 2022 plastic bags ban is inconsistently implemented and further 
bans on single-use plastics are urgent.  

On water quality Albania adopted in April 2024 a new Law on water resources, to align further   with the 
Drinking  Water  Directive,  the  Urban  Waste  Water  Treatment  Directive  and  the  Nitrates  Directive.  In 
addition, in February 2024 Albania adopted the Law on protection of marine environment, aligning with 
the  Marine  Strategy  Framework  Directive.  In  November  2023,  Albania  approved  River  Basin 
Management  Plans  (RBMP)  for  the  Ishmi,  Erzeni,  and  Mati  rivers,  while  RBMPs  for  Shkumbini  and 
Vjosa rivers are still pending. As of 1 September 2023, Albania completed flood hazard maps for 96% of 

78 

 
 
areas with significant flood risk (ASFPR) and flood risk maps for 84% of these areas. In July 2023, the 
National  Strategy  of  the  Water  Supply  and  Sewage  Sector  for  the  period  2023-2030  was  adopted, 
requiring  the  strategic  institutional  development  plan  of  the  National  Agency  for  Water  Supply  and 
Sewerage  (AKUK)  to  be  adopted  and  implemented.  Despite  these  efforts,  water  supply  and  sewerage 
services remain   low. To further align with the EU water acquis, Albania needs to substantially increase 
funding  and  enhance  the  implementation  capacity  of  the  key  national  water  agencies,  adopt  a  capacity 
development plan and establish a national water monitoring programme with sufficient coordination and 
resources.  

Alignment  with  the  EU  acquis  on  nature  protection,  in  particular  the  habitats and  birds  Directives,  is 
advanced. However, recent legislative developments have raised concerns. In March 2024, the extension 
of the 2015 legislation on strategic investments by a year has sparked worry about potential biodiversity 
threats.  This  extension  may  lead  to  extensive  tourism  and  industrial  investment  in  protected  areas.  In 
addition, the amendments to the Law on Protected Areas, now permits activities like water extraction for 
irrigation  and  construction  of  touristic  resorts  within  these  areas.  Such  changes  risk  compromising 
Albania’s  ecological  and  biodiversity  values  including  potential  Natura  2000  sites,  in  conflict  with  EU 
standards. The construction of the new Vlora Airport within the Pishe Poro-Narta Protected Area, started 
in December 2021 continues, despite the request of  the Standing Committee of the Bern Convention in 
December 2023 to suspend the works until a new and sufficient EIA procedure is conducted.  

Concerns  over  the  insufficient  enforcement  of  Albania’s  forest  and  logging  laws  remain.  Despite  the 
moratorium  on logging  and  on hunting,  these  practices  continue  unchecked.  Worries  about  the  Skavica 
hydropower  plant  project’s  environmental  impact  on  both  the  ecosystem  and  the  local  communities 
persist.  Albania should continue its preparations to identify and pre-designate sites that will be covered 
by the Natura 2000 network. 

Alignment with EU legislation on industrial pollution and risk management is still at an early stage, 
with capacity and financial constraints hindering progress in implementing legislation on the prevention 
of major chemicals accidents.  

On chemicals, the implementing legislation on the registration, evaluation, authorisation and restriction 
of  chemicals  (REACH)  has  yet to  be  adopted and adequate  administrative  structures  have  not  yet  been 
established. The situation is the same with regard to the alignment on biocides legislation. 

Regarding noise, no progress was made in the reporting period since Albania has not prepared strategic 
noise maps and action plans.  

On civil protection, the government approved the National Plan for civil Emergencies and the disaster 
risk assessment at the central level. As the Participating State of the Union Civil Protection Mechanism 
(UCPM) Albania actively participates in the relevant activities. The country still needs to strengthen its 
civil protection system by revising emergency plans and substantially improving operational capabilities 
and infrastructure for early warning and response. Albania is encouraged to make use, when appropriate, 
of the scientific partnership for natural hazards, via the Commission’s Emergency Response Coordination 
Centre, to boost its disaster preparedness. The country should establish a secure Trans-European Services 
for  Telematics  between  Administrations  (TESTA)  as  a  precondition  for  connecting  to  the  Common 
Emergency Communication and Information System (CECIS). 

Climate change  

Albania has some level of preparation for tackling climate change, but alignment with the EU acquis still 
remains limited and the country’s capacity to incorporate climate change into sectoral strategies and plans 
remains very limited. Allocation of further financial and human resources to the sector is needed. Albania 
should  also  implement  commitments  under  the  Energy  Community’s  Decarbonisation  Roadmap.  The 
level of emission reductions planned for 2021-2030 in the National Energy and Climate Plan (NECP) is 

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yet to be updated in 2024 . The NECP relies significantly on sequestration of CO2 by forests, but there are 
very limited measures and means to protect and manage forests. No emissions register is in place. 

In  2023,  Albania  started  the  revision  of  its  National  Adaptation  Plan  (NAP),  to  better  address  climate 
change  vulnerabilities,  focusing  on  investments  and  measures  to  manage  climate  risks  and  floods  and 
strengthen infrastructure resilience. Albania needs to fully implement the MRVA package by December 
2025, to introduce carbon pricing and align with the EU Emission Trading System (ETS). It also needs to 
adopt a  long-term  low-emission  strategy,  prepare and  submit a  new  National  Determined  Contribution, 
and  fully  align  with  EU  acquis  on  fluorinated  greenhouse  gases,  ozone-depleting  substances,  and 
emissions from vehicles and road transport. Alignment with the recent updates to EU climate policy under 
the Fit for 55 package is also needed. 

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). 

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. 

On  horizontal  issues,  overall  capacities  to  correctly  manage  IPARD  funds  to  facilitate  institution 
building  and  alignment  with  the  common  agriculture  policy  (CAP),  remain  to  be  improved.  A  farm 
register is in place and is regularly updated but it still has to be fully aligned with the EU acquis. There 
was  no  progress  on  further  elements  of  the  establishment  of  the  future  integrated  administration  and 
control system (IACS). Efforts should be stepped up in particular on the land parcel identification system 
(LPIS). The implementation of the action plan for setting up a  farm accountancy data network (FADN) 
needs to progress further and to incorporate environment and social data in line with the EU acquis.  

Implementation of the strategic action plan for the reform of the advisory system continue at a slow pace 
as capacity remain low.  

On  the  common  market  organisation  (CMO),  implementing  legislation  was  adopted  on  methods  of 
analysis  of  olive  oil  and  on  rules  on  the  inward  and  outward  registers  in  the  wine  sector,  which  are 
partially aligned with the acquis. Further efforts in this area are needed by strengthening the institutional 
capacity for implementation, which remains low. 

On  rural  development,  implementation  of  the  IPARD  II  programme  continued.  However  increased 
capacity building and oversight is needed to ensure completion of the IPARD II programme and to start 
the efficient implementation of the IPARD III in full compliance with the principles of sound financial 
management.  

Legislation on quality policy should be further aligned with the EU acquis. No progress was made in the 
reporting period. 

On  organic  farming  legislation  aligning  with  the  EU  acquis  has  been  prepared  and  remains  to  be 
adopted. 

Chapter 12: Food safety, veterinary and phytosanitary policy 

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The EU food acquis including hygiene rules for foodstuff production ensure a high level of food and feed 
safety and a high level of protection of consumers’ interests. 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.  

On general food safety, the legal framework is still not aligned with the General Food Law Regulation. 
The legal framework for official controls is not aligned with the Official Controls Regulation (OCR) in 
the areas falling under its scope. The National Food Authority (AKU) is revitalising the AKU-net system 
(i.e.  food  business  operator’s  database)  on  inspection  statistics,  data  management  and  transparency  but 
significant  work  is  still  needed  to  reduce  the  administrative  burden  for  planning  and  reporting  on  risk-
based official controls. The transparency principle should apply to official control systems in line with the 
OCR. Adequate financial resources should support the performance of official controls also by means of a 
transparent collection of fees. Albania does not have a multiannual national control plan in place.   

On veterinary policy, the national legislation is not aligned with EU animal health law. The reform of the 
veterinary sector remains incomplete, human resources are not fully ensured at the central and local level. 
Significant work is still needed to establish the necessary capacities on passive and active surveillance.  

Albania  continued  its  work  on  animal  diseases  through  vaccination  campaigns  against  rabies  and  the 
implementation  of  control  and  eradication  programmes  for  monitoring  brucellosis  and  tuberculosis  in 
cattle  herds.    While  countrywide  verification  and  registration  of  the  number  of  animals  continued, 
substantial work is required to upgrade the animal register with additional information on other animals 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, Albania implemented its 
national residue monitoring plan but the referred residue monitoring plans are not comprehensive enough. 
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, accreditation and validation 
methods for laboratory network. No progress was made on the legal basis for animal by-products.  

Concerning food safety rules, Albania continued to partially align with the acquis on food additives and 
identification of maximum levels for certain contaminants in food. No progress was made on developing 
a roadmap to improve milk quality.  

On phytosanitary policy, Albania has not yet adopted   its national plant health law. Albania approved 
the pest monitoring plan risk- based, which is to be implemented during 2024.  Actions in this field must 
be enhanced notably in relation to detection and eradication of pests. 

Albania made no progress on alignment of legislation related to feed or genetically modified organisms.  

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.    

Regarding resource and fleet management and structural measures, the vessel register has improved, 
and fishery production data are regularly maintained and updated. Ministerial orders continue in line with 
the recommendations of the GFCM for the sustainable exploitation of fish stocks. There is no progress 
regarding small-scale fisheries. The government continued to implement financial support measures for 
the fishery and aquaculture sector as part of its 2023 national funding programme for agriculture and rural 
development. 

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Inspection and control capacity has improved. The vessel monitoring system (VMS) is functional and 
operational.  Sufficient inspection and control capacity continues to monitor 24/7 fishing activity for all 
vessels over 12 metres long, to prevent, reduce and eliminate illegal, unreported and unregulated fishing 
(IUU).   

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 Directorate of Fisheries and Aquaculture Policies, Strategies and Programmes has 
been reorganised and more staff hired.  

The plans on the allocated zones for aquaculture (Shengjin, Durrës, Saranda and Vlora) were adopted. On 
market policy, Albania has adopted a national legal framework that partially aligned with the EU acquis 
on  market  policy.  On  State  aid,  support  was  made  available  only  in  2023  under  the  national  support 
scheme, as a separate financing measure for the fisheries sector.   

Regarding  international  agreements  on  fisheries  and  aquaculture  management,  Albania  has  fully 
implemented  the  GFCM  recommendations  on  controlling  fishing.  Albania  should  continue  to  actively 
participate  and  implement  GFCM  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 for small-
scale fisheries in the Mediterranean and the Black Sea (RPOA-SSF). 

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. 

Regarding the legislative framework, while basic principles are broadly in line with EU acquis in regard 
to  public  procurement,  public  finance  management,  and  cohesion,  the  strategic  framework  for  public 
administration is not yet fully in place and the public financial management needs to be improved. The 
legal  framework  for  procurement  needs  further  progress  in  alignment  with  the  acquis,  even  if  largely 
aligned. The Law on the organisation and functioning of the Audit Authority needs two amendments to 
align  with  the  requirements  under  the  Financial  Framework  Partnership  Agreement.  The  potential  of 
establishing links  to  European  groupings  of  territorial  cooperation  has  not  been exploited  so  far.  These 
groupings  can  be  used  as  instruments  for  integrated  territorial  governance  and  facilitating  the  Interreg 
cooperation programmes. 

Regarding the institutional framework for the implementation of Cohesion funds, the interinstitutional 
working  group  for  Chapter  22,  chaired  by  SASPAC,  has  been  enlarged.  The  establishment  of  the 
Directorate  for  Convergence  and  Cohesion  in  SASPAC  is  seen  as  a  positive  step  to  enhance 
interinstitutional  cooperation;  efforts  should  continue  to  ensure  cooperation  with  relevant  authorities  in 
particular  the  Ministry  for  Public  Administration  and  Anti-Corruption  and  the  Ministry  for  Local 
Government. As for the management of EU funds under IPA III, improvements have been made in view 
of  the  future  role  in  EU  cohesion  policy.  Nonetheless,  the  performance  of  the  managing  authorities 
responsible for the multiannual operational programmes  and Interreg cooperation programmes is at risk 

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due  to  insufficient  administrative  capacities,  high  staff  turnover,  training  for  new  staff,  and  risk 
management of the managing authorities. 

 Efforts are needed to set-up the legal framework of the partnership principle, requiring the involvement 
of  relevant  public  authorities,  socio-economic  partners  and  civil  society  in  all  programming  stages, 
preparing  the  ground  for  future  cohesion  policy  in  line  with  the  European  Code  of  Conduct  on 
Partnership.     

On  administrative  capacity,  strengthening  human  resources  remains  insufficient  along  with      staff 
retention.  Positive  steps  have  been  taken  in  the  salary  reform  for  civil  servants,  but  additional  efforts 
should  be  made for  other measures.  A  comprehensive  retention  policy  should be  adopted.  (See  Section 
2.1.2 - Public administration reform).  

Coordination mechanisms have been established between the Minister of State for Public Administration 
and Anti-Corruption and the Minister of State for Local Government as regards Chapter 22 preparations.  
Capacity  to  manage  public  funds  locally  requires  further  effort,  due  to  the  future  role  of  local 
governments in cohesion policy (See Section 2.1 - Political Criteria - Governance).  

The  reform  of  the  integrated  policy  management  groups  (IPMGs)  foresees  a  revised  structure  of  the 
IMPGs  and  thematic  sub-groups  that  is  more  in  line  with  the  government’s  policy  priorities.  The 
functioning of the IPMGs has remained very limited. 

On programming, the IPA Annual Action Programme 2024, worth EUR 67.35 million, was adopted in 
July  2024.  The  IPA  multiannual  Operational  Programmes  2024-2027  on  digital  economy  and  society, 
energy,  and  youth  employment,  worth  EUR   130  million,  were  also  adopted  in  August  2024.  These 
multiannual  programmes  will  be  implemented  under  indirect  management  by  beneficiary  country. 
Albania participates in 6 Interreg cooperation  programmes under the EU’s cohesion policy. There have 
been  delays  with  ratifications  of  programmes  due  to  the  required  procedures from  Albanian  authorities 
impacting both bilateral as well as cross-border financial assistance.  

On programming, efforts should continue to prepare for cohesion policy. In this respect, the development 
of the national framework for regional development remains key to foster development potential and the 
territorial  dimension  in  national-level  sectoral  policies.  A  key  element  for  cohesion  policy  preparations 
will be to ensure ownership by public and private bodies at national and sub-national levels, following the 
partnership principle. Albania established the prefinancing mechanism for beneficiaries which now needs 
to be made fully operational. The National Single Project Pipeline of investment (NSPP) was adopted for 
the  first  time  in  July  2023”  and  the  coordination  between  SASPAC  and  the  Ministry  of  Finance  was 
enhanced  as  regards  the  NSPP.  The  country  needs  to  build  further  institutional  capacities  related  to 
project preparation, appraisal and selection process. Albania also needs to ensure that the NSPP covers all 
strategic investment regardless of the source of funding, and address issues with strategic planning and 
implementation  capacity  for  infrastructure  projects  financed  within  the  Western  Balkans  Investment 
Framework (WBIF) under the Economic and Investment Plan (EIP)  and under the Reform and Growth 
Facility of the Growth Plan for the Western Balkans. 

Albanian cities now participate in five URBACT networks and further cooperation should be encouraged 
both  in  URBACT  and  in  Interreg  Europe  networks.  Increased  engagement  of  Albanian  stakeholders  is 
expected in the EU Strategy for the Adriatic-Ionian Region. 

On monitoring and evaluation, the sectoral monitoring committees issue operational recommendations 
for  all  IPA  sectors and  broader  horizontal  issues are being  discussed  at  the  IPA  monitoring  committee. 
Albania  needs  to  improve  both  its  monitoring  system  and  its  national  evaluation  system,  to  ensure 
alignment with the requirements of the EU cohesion policy legislation. 

On financial management, control and audit, amendments to the Albanian Law on the audit authority 
are  still  pending,  to  ensure  that  management  powers  remain  with  the  General  Director  and  are  not 

83 

 
 
subordinated  to  the  Supervisory  Council.  The  National  Authorising  Officer  (NAO)  ensures  that  its 
management declaration adequately reflects the results of its supervision and monitoring of management 
and  control  systems.  For  Operational  Programmes  the  management  structures  have  been  identified  and 
procedures developed but their risk management and internal control capacities need strengthening, with a 
comprehensive list of KPIs as well as a risk register for the managing authorities. Albania should improve 
its  track  record  in  following  up  audit  recommendations.  A  national  anti-fraud  strategy  needs  to  be 
adopted, and anti-fraud measures put in place and effectively implemented. 

On visibility, transparency and communication, a single website is not yet in place to communicate 
about  the  various  programmes  supported  with  EU  funding  under  the  National  IPA  Coordinator 
(NIPAC) office. 

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.  

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,  17-  Economic  and  monetary  policy;  18  – 
Statistics, 29 – Customs union, and 32 – Financial control).  

On  traditional  own  resources,  Albania  started  the  implementation  of  the  new  Law  on  income  taxes 
which  entered  into  force  in  2024.  However,  the  implementation  of  the  new  income  tax  policy  for  free 
professions  led  to  partial  suspension  of  implementation  of  the  law  for  this  category  based  on  a 
Constitutional  Court  decision.  Albania  has  finalised  the  draft  strategy  on  public  -finance  management 
2024-2027  which  includes  specific  actions  on  domestic  revenue  mobilisation.  A  working  group  on 
drafting  of  the  Medium  Term  Revenue  Strategy  2024-2027  was  established  in  April  2024.    The  draft 
medium-term  revenue  strategy  issued  for  public  consultation  in  September  2024  aims  to    increase  tax 
revenues by +2.5% of GDP, compared to the base year (2019), reaching 27.7% of GDP in 2027, in line 
with  the  MFF  2024-2030,  while  focusing  on  tax  policy  review,  and  increased  efficiency  of  tax  and 
customs administration. 

No additional legal development towards further alignment with the EU acquis can be reported, and the 
tax exemptions remain a concern on domestic revenue mobilisation. While there has been good progress 
in proceeding quickly with VAT refund for businesses, NGOs operating with EU grants under IPA face 
procedural challenges in getting the VAT refund. 

On  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.  

On  administrative  infrastructure,  Albania  needs  to  progress  on  creating  the  relevant  institutions 
involved  in  the  own-resources  system  and  an  own-resource  coordination  body,  and  on  implementing 
rules, in line with the EU acquis.  

The  legal  provisions  setting  out  the  criteria  for  initiating  public  financial  inspection,  in  cases  of  any 
irregularities,  and  serious  financial  mismanagement  situations  are  in  place.  The  general  tax  directorate 
and the general customs directorate continued their work on identification of tax evasion and fraud. (See 
also Chapters 1, 16, 29 and 32 on actions against corruption). Continued efforts are needed to formalise 

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the  widespread  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). 

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. 

On the common commercial policy, Albania continued to coordinate its positions and align its policies 
closely  with  those  of  the  EU,  including  within  the  World  Trade  Organization  (WTO)  and  its  Dispute 
Settlement Body. During the reporting period Albania completed successfully its third trade policy review 
in the WTO and accepted the WTO Agreement on Fisheries Subsidies on 23 October 2023. 

In the area of regional cooperation, Albania continued its constructive role in the negotiations on CEFTA 
items under protocols 6 and 7, and worked on implementation of the Common Regional Market Action 
plan.  Within  additional  protocol  6,  Albania  has  finalised  its  internal  procedures  and  has  confirmed  it 
readiness  to  adopt  in  the  CEFTA  Joint  Committee  the  decisions  on  electronic  commerce  package 
(including IPR aspects, prevention of unjustified geo-blocking and intra-parcel delivery). 

In the area of dual-use goods, Albania has yet to achieve full alignment with Regulation (EU) 2021/821 
of  May  2021.    Additionally,  Albania  is  neither  a  participant  nor  an  adherent  to  the  Australia  Group. 
Adherence  to  the  Australia  Group  would  be  a  positive  step  towards  alignment  with  EU  acquis  and 
towards future Australia Group membership, which will be expected upon EU accession.  

On bilateral agreements with third countries, Albania has 40 bilateral investment treaties in force, 22 
of  which  are  with  EU  Member  States.  The  country  has  in  force  5  free  trade  agreements  (with  the  EU 
(SAA), CEFTA, EFTA, with Türkiye and with the UK). In June 2024, the bilateral economic cooperation 
agreement between Albania and Azerbaijan entered into force. 

On  development  policy  and  humanitarian  aid,  Albania  has  not  yet  in  place  a  framework  for 
cooperation/aid  or  an  agency  for  development  cooperation.  An  interinstitutional  working  group  was 
established  in  November  2023,  to  draft  the  regulatory  framework  for  international  cooperation  in 
development and humanitarian aid.  

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  continued  to  actively  engage  in  political  dialogue  with  the  EU  on  foreign  and  security  policy 
issues.  In  February  2024  Albania  participated  in  the  tenth  EU-Western  Balkans  meeting  of  Political 
Directors on CFSP. In June 2024 Albania participated in a working lunch with members of the Foreign 
Affairs Council. 

The  institutional  framework  enabling  Albania’s  participation  in  the  EU  common  foreign  and  security 
policy and common security and defence policy is in place.  

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On  the  common  foreign  and  security  policy,  during  the  reporting  period,  Albania  maintained  its  full 
alignment (100%) with statements by the High Representative on behalf of the EU and Council decisions 
on sanctions, including all EU restrictive measures against Russia and Belarus related to Russia’s war of 
aggression  against  Ukraine.  Albania  participated  in  the  Summit  on  Peace  in  Ukraine  hosted  by 
Switzerland.  

Albania  has  legal  and  institutional  arrangements  in  place  to  deal  with  the  implementation  of  the  EU 
restrictive measures it has aligned with. However, the technical implementation and enforcement of the 
complex EU restrictive measures remain a challenge and Albania should further strengthen its capacity in 
this regard.  

Albania’s active cooperation with international organisations continued. During its 2022-2023 term as 
a non-permanent member of the UN Security Council Albania closely cooperated with the EU and EU 
Member States in promoting and defending the rules-based international order. The Second Action Plan 
on Women, Peace and Security was approved in December 2023. Albania is a member of the UN Human 
Rights Council for the period 2024-2026.  

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  non-proliferation,  Albania  continued  to  implement  its  national  strategy  on  small  arms  and  light 
weapons (SALW) and the related action plan for 2022-2024 as well as its 2020 national strategy against 
proliferation of weapons of mass destruction (WMD) and its action plan. It remained actively engaged in 
implementing the 2018 Regional Roadmap and other regional forms of cooperation on firearms. Albania 
is  a  member  of  the  Executive  Council  of  the  Organisation  for  the  Prohibition  of  Chemical  Weapons 
(OPCW) for the period 2024-2026. It should complete the procedures to join the Wassenaar Arrangement 
without further delay. Although it is not yet a participating state of multilateral export control regimes, 
Albania has fully aligned with the EU Common Position9 on arms export control. The country is a party 
to  the  Arms  Trade  Treaty,  yet  inter-state  cooperation  and  information  exchange  remain  to  be  further 
improved. 

In terms of security measures, Albania has improved the implementation of its security of information 
agreement with the EU.  

On  common  security  and  defence  policy,  Albania’s  participation in  EU  military  crisis  management 
missions  and  operations  under  the  common  security  and  defence  policy  continued,  notably  EUFOR 
Althea  in  Bosnia  and  Herzegovina.  Albania  contributes  to  regional  cooperation  in  military  medicine 
through the  Balkan Medical  Task  Force (BMTF).  It plans  to  participate in  the EU  Battlegroup  in  2024 
and  expressed  readiness  to  contribute  to  the  European  Union’s  Naval  Force  (EUNAVFOR)  Operation 
ASPIDES for maritime security in the Red Sea, the Indian Ocean and the Gulf.  

Regarding hybrid threats, Albania has adopted a new National Security Strategy in 2024, with a stronger 
focus on advancing and developing its capacities for defence against hybrid threats (see under Chapter 10 
– Digital transformation and media). In June 2024, Albania signed a Memorandum of understanding to 
become  member  of  the  European  Centre  of  Excellence  for  Hybrid  Threats  (Hybrid  CoE)  in  Helsinki. 
Further efforts remain needed  to close the space for foreign interference and information manipulation, 
including  disinformation,  and  to  build societal  resilience  against  this and other forms of  hybrid threats. 
Albania aligned with EU Declarations and restrictive measures in reaction to cyber-attacks in 2023 and 
2024. 

9 EU Common Position 2008/944 

86 

 
 
 
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,  – and the sessions for all the six clusters were completed  in November 2023.  The 
screening  report  on  cluster  2  –  internal  market  was  presented  to  the  Council  in  May  2024.  An 
intergovernmental conference was convened in October 2024 to open accession negotiations on cluster 1 
– fundamentals. 

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 overall 
commitments under the SAA. Regular political and economic dialogue has continued through the relevant 
joint bodies under the SAA. The Stabilisation and Association Parliamentary Committee met in January 
2024.  The  EU-Albania  Stabilisation and  Association Council  has adopted  a  Decision    to  establish joint 
consultative committees (JCCs) with the European Economic and Social Council Committee (EESC) and 
the  European  Committee  of  Regions  (CoR).  The  JCC,  with  the  EESC  will  allow  civil  society 
organisations from both sides to monitor the path of Albania towards the EU and adopt recommendations 
accordingly,  while  the  JCC  with  the  CoR  will  provide  a  stable  cooperation  framework  of  cooperation 
between Albanian local and regional authorities and EU institutions. 

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  benefited  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 2023, the EU remained the main trading partner of 
Albania,  accounting  for  57.7%  of  Albania’s  total  trade  in  goods  (72.1%  of  total  exports  and  50.6%  of 
total imports). EU-Albanian trade fell by 5% in 2023. Albania’s total trade in 2023 was worth EUR 12.4 
billion.  The  country’s  trade  deficit  with  the  EU  amounted  to  EUR  1.5  billion  in  2023.  Albania’s  trade 
with CEFTA represented around 10.3% of total trade in 2023, as compared with 10.7% in 2022.  

Visa  liberalisation  for  citizens  of  Albanian  citizens  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  2023  sixth  report  under  the  visa  suspension  mechanism10  concluded  that 
Albania continues to meet the visa liberalisation requirements. 

Albania  has  continued  to  fully  align  itself  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.  

The EU adopted in July 2024 the first bilateral assistance measure under the  European Peace Facility 
(EPF) worth EUR 13 million to support the Albanian Armed Forces, with a view to strengthening their 
operational effectiveness, mobility and protection11. The Balkans Medical Task Force, in which Albania 
participates, benefits from a EUR 6 million 2022 support measure under the European Peace Facility. 

10 COM/2023/730 final. 
11 Council Decision (CFSP) 2024/1979. 

87 

 
 
 
 
Under the Instrument for Pre-accession Assistance 2021 – 2027 (IPA III)12, a fourth financing decision 
of  EUR 67.35  million  for  the  Annual  Action  Plan  2024  supports  the  fight  against  corruption,  local 
governance  and  economic  development,  food  safety,  forests,  and  employment  and  social  inclusion.  In 
addition,  the  first  financing  decision  of  EUR  130  million  for  three  2024-2027  operational  programmes 
supports  efforts  in  digitalisation,  advancing  Albania’s  green  agenda,  and  youth  employment.  These 
programmes  are  complemented  by  a  significant  package  of  multi-country  programmes  and  the  rural 
development programme IPARD III with EUR 112 million. Albania also participates also in five cross-
border cooperation programmes, transnational cooperation programmes and EU programmes. 

Ongoing programmes under IPA II (2014-2020) and IPA III are still providing significant support for the 
social and economic development of the country, environmental protection and connectivity. They also 
contribute to key reforms, especially on the fundamentals of the accession process, with progress made 
for example in the re-evaluation of judges and prosecutors (‘vetting’). The Energy Support Package with 
its  EUR  80  million  budget  support  programme  for  Albania  addressed  the  immediate,  short-term,  and 
medium-term  needs  in  the  context  of  the  energy  crisis  and  of  the  Russian  war  of  aggression  against 
Ukraine. 

Under  the  Reform  and  Growth  Facility,  Albania  could  benefit  from  an  indicative  allocation  of  EUR 
922.1 million, to be channelled via a Reform Agenda covering key reforms in five policy areas: business 
environment  and  private  sector  development;  green  energy;  digitalisation;  human  capital  development; 
and fundamentals / rule of law. Disbursement of Union support will be conditional on compliance with 
the preconditions and delivery on reforms as set out in the Reform Agenda. 

Albania is the only country in the region that has signed cooperation agreements with all EU justice and 
home  affairs  agencies  of  the  EU.  Albania  participates  in  two  transnational  cooperation  programmes. 
Albania participates with IPA support in these EU programmes: Erasmus+, Creative Europe (Culture and 
Media  strands),  Employment  and  Social  Innovation,  Horizon  Europe,  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) (as an observer), and the Digital Europe 
programme. To improve the sustainability in local public finances, Albania is participating as an observer 
in a pilot project under the Technical Support Instrument on structural reforms.  

As  of  July 2024,  the  Western  Balkans  Investment Framework (WBIF) has  supported  Albania  to the 
amount of EUR 333.4 million. This has been provided in the form of IPA III grants for flagship projects 
in the areas of clean energy, the environment and climate, the digital future, and sustainable transport. 

The  EU  provides  support  via  IPA  and  the  Foreign  Policy  Instrument  to  strengthen  Western  Balkans 
partners’  resilience  in  facing  hybrid  threats,  including  cyber  and  foreign  information  manipulation  and 
interference. 

12 Official Journal L 330, 20.9.2021. 

88 

 
 
 
 
 
 
STATISTICAL DATA (as of 5/09/2024) 
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 (%) 
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 (%) 

Note 

2011 
2 907 i 
28 748 w 

2018 
2 870 i 
28 748 w 

2019 
2 862 i 
28 748 w 

2020 
2 846 i 
28 748 w 

2021 
2 830 i 
28 791 e 

2022 
2 794 i 
28 791 e 

Note 

2011 
1 300 624 
9 268 
3 190 
7 605 
29.6 
2.5 
: 
: 

2018 
1 636 731 
12 828 
4 480 
9 152 
30.2 
4.0 
: 
: 

2019 
1 691 903 
13 754 
4 820 
9 505 
30.3 
2.1 
: 
: 

2020 
1 647 431 
13 310 
4 690 
9 222 
30.6 
-  3.5 p 
: 
: 

2021 
1 856 172 
15 157 
5 390 
10 255 
31.2 
: 
: 
: 

2022 
2 138 339 p 
17 972 p 
6 433 iw 
: 
: 
: 
: 
: 

: 
: 
: 

21.0 
13.5 
14.6 
51.0 i 
89.3 
29.4 
29.2 
52.0 
: 

: 
: 
: 

21.1 
14.1 
10.3 
54.6 i 
90.4 
23.9 
31.6 
45.2 
: 

: 
: 
: 

21.0 
13.8 
9.8 
55.4 i 
91.3 
22.3 
31.3 
45.0 
: 

: 
: 
: 

21.9 
12.8 
10.2 
55.2 i 
92.5 
22.6 
22.7 
37.2 
: 

: 
: 
: 

21.1 
12.9 
10.9 
55.2 i 
88.6 
24.4 
31.3 
44.7 
: 

: 
: 
: 

21.3 p 
13.4 p 
11.1 p 
54.2 pi 
86.0 p 
23.9 p 
37.4 p 
47.8 p 
: 

Business 
Industrial production volume index (2015 = 100) 
Number of active enterprises (number) 
Birth  rate:  number  of  enterprise  births  in  the  reference  period  (t)  divided  by  the  number  of 
enterprises active in t (%) 
Death rate: number of enterprise deaths in the reference period (t) divided by the number of 
enterprises active in t (%) 
People  employed  in  SMEs  as  a  share  of  all  persons  employed  (within  the  non-financial 
business economy) (%) 

Note 
1) 
2) 
3) 

2011 
67.8 w 
75 355 w 
11.8 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 

2021 
113.0 w 
93 346 w 
12.6 w 

2022 
116.1 w 
101 450 w 
12.5 w 

: 

: 

: 

: 

: 

2) 

81.1 iw 

80.2 iw 

81.2 iw 

81.3 iw 

81.2 iw 

: 

: 

89 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Value added by SMEs (in the non-financial business economy) (EUR million) 
Total value added (in the non-financial business economy) (EUR million) 

2) 
2) 

1 539 iw 
2 259 w 

2 881 iw 
4 187 w 

3 263 iw 
4 511 w 

3 103 iw 
4 184 w 

3 882 iw 
5 100 w 

: 
6 729 w 

Inflation rate 
Consumer price index (CPI), change relative to the previous year (%) 

Note 

2011 
: 

2018 
1.8 d 

2019 
1.7 d 

2020 
2.2 d 

2021 
2.3 d 

2022 
6.6 d 

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) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
**Annual change in financial sector liabilities (%) 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, per annum (%) 
Euro exchange rates: average of period (1 euro = … national currency) 

Note 

Note 

Note 

4) 

2011 
: 
: 
: 
: 
: 
: 
: 
: 
608.9 w 
21.4 w 
: 
630.4 w 
: 
: 
7.2 iw 

2011 
: 
: 
: 
: 

2011 
53.5 iw 
182.9 w 
1 973.2 w 
: 
: 
: 
5.57 w 
140.330 

2018 
-  865.7 
- 2 869.7 
1 110.3 
-  13.6 
907.2 
67.1 
-  7.3 
: 
1 023.6 i 
69.1 
32.4 w 
1 092.1 w 
248.0 w 
-  49.4 w 
5.2 i 

2018 
: 
: 
: 
: 

2018 
65.1 i 
205.8 w 
3 752.1 w 
9 462.0 
3.2 
54 
1.24 w 
127.590 

2019 
- 1 089.2 
- 3 144.1 
1 263.8 
-  180.3 
971.3 
67.1 
-  7.4 
: 
1 037.1 i 
114.2 
39.1 
1 150.5 w 
649.4 
-  48.4 w 
5.1 i 

2019 
: 
: 
: 
: 

2019 
59.9 i 
191.3 w 
4 259.5 w 
10 095.6 
2.3 
54 
1.10 w 
123.010 

2020 
- 1 153.3 
- 2 982.1 
1 056.2 
-  227.6 
997.1 
58.2 
-  7.8 
5.2 
893.6 i 
76.4 
28.5 
970.2 w 
535.3 
-  53.8 w 
5.1 i 

2020 
: 
: 
: 
: 

2020 
64.2 i 
283.1 w 
5 149.2 w 
10 696.1 
7.5 
58 
0.73 w 
123.770 

2021 
- 1 166.2 
- 3 828.9 
1 795.8 
-  211.0 
1 077.9 
48.6 
-  8.1 
20.9 
988.8 i 
53.3 
27.3 
1 043.3 w 
679.8 
-  50.8 w 
5.0 i 

2021 
: 
: 
: 
: 

2021 
64.4 i 
205.3 w 
5 727.5 w 
12 220.4 
11.6 
55 p 
0.65 w 
122.460 

2022 
- 1 062.9 
- 4 267.8 
2 400.4 
-  314.5 
1 118.9 
31.4 
-  7.4 
25.3 
1 188.8 i 
171.9 
44.2 
1 361.9 w 
736.3 
-  48.5 w 
4.6 pi 

2022 
: 
: 
: 
: 

2022 
54.3 pi 
145.0 w 
6 184.6 w 
13 659.5 
-  3.4 
49 e 
1.55 w 
118.980 

90 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) 

: 
: 

: 
: 

: 
: 

: 
: 

: 
: 

: 
: 

1 912.5 w 

369.4 

-  79.8 

654.9 

938.9 

-  71.8 

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 (%) 

Note 

2011 
3 867 
1 400 
- 2 467 
105.6 iw 
72.8 iw 
64.2 iw 

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) 

Note 

2011 
4.9 

8.7 
: 
: 

2018 
5 026 
2 431 
- 2 596 
103.6 iw 
75.9 iw 
60.0 iw 

2018 
2.5 

8.9 
77.4 
80.5 

2019 
5 269 
2 426 
- 2 843 
99.2 iw 
76.4 iw 
57.7 iw 

2019 
2.3 

10.3 
77.6 
80.7 

2020 
4 860 
2 190 
- 2 670 
104.1 iw 
74.7 iw 
57.9 iw 

2020 
0.2 

10.0 
75.2 
79.6 

2021 
6 545 
3 012 
- 3 533 
104.5 iw 
72.2 iw 
54.4 iw 

2021 
-  1.2 

8.4 
73.6 
77.7 

2022 
8 002 
4 090 
- 3 912 
99.6 iw 
73.4 iw 
51.6 iw 

2022 
0.2 

6.5 
77.4 
80.9 

Labour market 
Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that 
is economically active (%) 
*Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are 
in employment (%) 
Male employment rate for persons aged 20–64 (%) 
Female employment rate for persons aged 20–64 (%) 
Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are 
in employment (%) 
Employment by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
People employed in the public sector as a share of  total employment, persons aged 20–64 
(%) 
People employed in the private sector as a share of total employment, persons aged 20–64 
(%) 
Unemployment rate: proportion of the labour force that is unemployed (%) 
Male unemployment rate (%) 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 

91 

Note 

2011 
75.6 ew 

2018 
74.8 ew 

2019 
75.9 ew 

2020 
75.3 ew 

2021 
75.1 ew 

2022 
79.1 ew 

64.9 ew 

65.6 ew 

67.1 ew 

66.3 ew 

66.3 ew 

70.4 ew 

72.8 ew 
57.2 ew 
54.7 ew 

45.4 ew 
10.6 ew 
8.2 ew 
35.8 ew 
: 

73.9 ew 
57.4 ew 
58.2 ew 

37.4 ew 
12.7 ew 
7.0 ew 
42.9 ew 
15.9 ew 

74.7 ew 
59.7 ew 
60.4 ew 

36.4 ew 
13.1 ew 
7.0 ew 
43.5 ew 
15.3 ew 

74.0 ew 
58.8 ew 
60.3 ew 

36.1 ew 
13.4 ew 
7.0 ew 
43.5 ew 
15.3 ew 

74.6 ew 
58.3 ew 
60.0 ew 

33.8 ew 
13.8 ew 
8.1 ew 
44.3 ew 
16.0 ew 

77.4 ew 
63.7 ew 
67.4 ew 

33.9 ew 
14.3 ew 
7.6 ew 
44.2 ew 
15.1 ew 

: 

84.1 ew 

84.7 ew 

84.7 ew 

84.0 ew 

84.9 ew 

14.0 ew 
13.6 ew 
14.4 ew 
23.9 ew 

12.3 ew 
12.7 ew 
11.9 ew 
28.3 ew 

11.5 ew 
11.6 ew 
11.4 ew 
27.2 ew 

11.8 ew 
11.6 ew 
12.0 ew 
26.5 ew 

11.6 ew 
11.4 ew 
11.8 ew 
27.1 ew 

11.0 ew 
10.6 ew 
11.4 ew 
24.9 ew 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) 

Education, innovation and research 
Public expenditure on education relative to GDP (%) 
*Gross domestic expenditure on R&D relative to GDP (%) 
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP 
(%) 
Percentage of households who have internet access at home (%) 

Environment 
*Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 
Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant 
prices) 
Electricity generated from renewable sources relative to gross electricity consumption (%) 
Road share of inland freight transport (based on tonne-km) (%) 

10.2 ew 

8.3 ew 

7.3 ew 

7.0 ew 

7.3 ew 

7.4 ew 

12.1 ew 

9.2 ew 

8.6 ew 

9.6 ew 

9.8 ew 

9.3 ew 

: 

11.5 ew 

9.7 ew 

10.0 ew 

8.4 ew 

8.4 ew 

Note 
5) 

2011 
46 665 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 

2022 
61 898 ew 
111 ew 

: 
: 
35.2 ew 

: 
32.4 
17.4 w 

: 
28.6 
16.3 w 

: 
26.0 
15.6 w 

: 
25.5 
16.8 w 

: 
: 
15.5 w 

Note 

2011 
103.5 iw 
1 841.8 w 

2018 
161.0 
1 445.6 w 

2019 
176.0 
1 183.8 w 

2020 
191.0 
1 176.2 w 

2021 
212.0 
1 239.1 w 

2022 
232.0 
1 350.0 w 

Note 

Note 

Note 

: 
: 

2011 
13.9 iw 

: 

2011 
3.2 iw 
: 
: 

: 

2011 
: 
233.1 

66.1 
: 

: 
13 w 

2018 
11.6 iw 

m 

2018 
3.2 piw 
: 
: 

83.6 

2018 
: 
209.4 

92.5 
: 

62.7 w 
15 w 

70.4 w 
17 w 

2019 
5.9 iw 

m 

2019 
3.3 iw 
: 
C 

85.5 

2019 
: 
204.2 

93.0 
: 

2020 
7.8 iw 

22 

2020 
3.3 iw 
: 
C 

87.2 

2020 
: 
196.3 

100.0 
: 

73.1 w 
20 w 

2021 
7.8 i 

25 

2021 
3.1 piw 
: 
: 

90.9 

2021 
: 
: 

94.4 
: 

76.6 w 
21 w 

2022 
7.1 i 

25 

2022 
2.9 iw 
: 
0.06 

98.4 

2022 
: 
: 

38.1 
: 

Energy 

Note 

2011 

2018 

2019 

2020 

2021 

2022 

92 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) (2015 = 100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand heads, end of period) 
Livestock numbers: live swine (thousand heads, end of period) 
Livestock numbers: live sheep and live goats (thousand heads, end of period) 
Raw milk available on farms (thousand tonnes) 
Harvested crop production: cereals (including rice) (thousand tonnes) 
Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

Note 

Source: Eurostat and/or the statistical authorities in Albania 

1 483 
895 
1 
12 
801 i 
2 245 
4 191 

2011 
: 
1 201.3 
: 
: 
: 
: 
701.2 
: 
: 

2 015 
911 
161 
32 
503 i 
2 366 
8 553 

2018 
: 
1 174.0 
467.3 
184.1 
2 781.0 i 
: 
678.2 
27.5 
: 

1 736 
1 005 
52 
58 
753 i 
2 355 
5 206 

2019 
: 
1 174.1 
415.6 
183.9 
2 621.2 i 
: 
666.1 
30.7 
: 

1 494 
758 
69 
41 
793 i 
2 183 
5 313 

2020 
: 
1 165.7 
362.6 
158.4 
2 332.2 i 
: 
684.0 
27.0 
: 

1 823 
712 
131 
44 
553 i 
2 298 
8 963 

2021 
: 
1 165.6 
336.8 
159.2 
2 255.8 i 
: 
691.4 
24.4 
: 

1 607 
657 
148 
38 
705 i 
2 209 
7 003 

2022 
: 
1 164.4 
297.7 
137.3 
2 093.3 i 
: 
690.9 
21.3 
: 

: = not available 
C = confidential value 

d = definition differs 
e = estimated value 
p = provisional 
i = Eurostat estimate 
m = missing value / data cannot exist 
w=  data  supplied  by  and  under  the  responsibility  of  the  national 
statistical authority and published on an "as is" basis and without any 
assurance  as  regards  their  quality  and  adherence  to  EU  statistical 
methodology 
* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator 

1) 
2) 
3) 

4) 
5) 

Footnotes: 
Based on NACE Rev. 2. Coverage is Sections B to D. 
Based on NACE Rev. 2. Coverage is Divisions 05 to 82 and 95. 
The  enterprise  birth  rate  cannot  be  calculated  from  the  current 
Statistical Business Register data. 
Annual average of the Tribor rate – interbank rate for overnight loans. 
Public sector only. 

93 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
94