Albania

Albania stands at a crossroads. As a politically stable NATO member, the country has been striving for EU membership for years. The process has gained significant momentum, but weak and limited administrative capacities are slowing down reforms. In addition, high youth unemployment and the emigration of skilled workers are weighing heavily on society and hindering sustainable growth. German development cooperation therefore focuses on training, climate and energy projects and good governance, with the aim of gradually bringing the country closer to the European Union.

There is broad political and social consensus in Albania. The country is committed to democracy and the rule of law, has been a member of NATO since 2009, and pursues a regional policy geared towards mutual understanding. The political stability of the Balkan state is considered crucial for the region as a whole. Albania’s foremost foreign policy goal is to become a member of the European Union. It became an official candidate for EU membership in 2014, and accession negotiations have been underway since 2022. Prime Minister Edi Rama aims to bring his country into the EU by 2030.

However, the country still has to overcome a number of obstacles. Currently, public administration is failing to implement EU law consistently. In particular, effective mechanisms for monitoring and enforcing legislation are lacking. Limited pluralism in the media is a further obstacle to EU accession. An inclusive political dialogue between the dominant ruling party, the weak political opposition and civil society is essential for reforms to have a lasting impact. To join the EU single market, Albania needs to make better use of its production potential (for example in the areas of agriculture, energy and tourism) through stronger incentives for innovation, and investment in training and upskilling.

German development cooperation with Albania

Albania is one of Germany’s transformation partners, and Germany is the country’s largest and most significant bilateral donor. Germany is supporting Albania in its political and economic transformation and in the final stages of its efforts to prepare for EU accession. Since the partnership began 35 years ago, the Balkan state has received over 1.2 billion euros in development funding, mostly in the form of reduced-interest loans.

Most recently, Germany committed 93.4 million euros at the government negotiations with Albania in October 2024. Of this amount, 9 million euros will be used for Technical Cooperation and 82.4 million euros for Financial Cooperation (of which 60 million takes the form of reduced-interest loans).

During the negotiations, Germany and Albania agreed on the following areas of cooperation:

Sustainable economic development, training and employment
Areas of intervention: technical and vocational education and training, private sector and financial sector development
Climate and energy, just transition
Areas of intervention: renewable energy and energy efficiency, sustainable urban development
Cooperation outside the agreed areas: good governance and migration

Albania is also part of numerous multi-country regional projects run by the BMZ. These regional projects in the Western Balkans make targeted contributions to the implementation of the Berlin Process, which aims to bring the Western Balkan countries closer to the EU (e.g. through the RYCO youth exchange programme, the Common Regional Market, independent media and migration).

Training of chefs in a vocational school in Kamza, Albania

Albania is growing, but poverty and high youth unemployment are weighing heavily on the country. The biggest challenge is the high rate of migration abroad and the resulting decline in the working-age population, coupled with the ongoing skills mismatch. German and European cooperation with Albania therefore promotes employment, innovation and regional development.

Construction of high-voltage transmission line near Shkoder, Albania

Albania is one of the European countries most at risk from climate-related hazards such as flooding and landslides. Outdated infrastructure makes the country even more vulnerable. Droughts and climate volatility pose huge threats to the country’s energy system. German and European programmes are supporting climate action and sustainable infrastructure in order to strengthen Albania’s resilience.

Der Skanderbegplatz mit einer Skulptur des Nationalhelden Skanderbeg und dem Kulturpalast in der albanischen Hauptstadt Tirana

While EU integration appears within reach, public administration and the media face significant challenges, including political interference and institutional weaknesses. In its development cooperation, Germany is therefore putting a focus on building government capacity, strengthening independent media and fostering orderly migration management in order to support Albania on its path towards the European Union.

Further information