Prime Minister Edi Rama:
This is our traditional year-end press conference.
First, I thank you for the entire year, for all your work, efforts, and the long hours you have spent waiting at the doors of institutions or in the arenas of political life. Allow me to begin this conference with a piece of news I received just a short while ago from the American Cato Institute, a well-known institute which, among other things, publishes what is called the “index of indices” related to human freedom and economic freedom. I am very pleased to share with you that Albania holds a very encouraging position: it is ranked 39th overall and 9th across Eastern Europe, as the report is structured in that way. In terms of economic freedom, Albania ranks ahead of countries such as Poland, Bulgaria, Croatia, Hungary, and Greece, among others, and similarly for human freedom, while in economic freedom it is positioned two or three places higher still.
This is positive in nature. Of course, there are many reports and many indices, but since positive reports and positive indices do not make the news, I took the opportunity to share this with you as good news, among many good news items for Albania which, as I said, do not make headlines.
I will try to touch briefly on some key areas, starting with the economy.
We are still in a year which, from an economic perspective, is among the best, with very positive and encouraging data. The economy is forecast to close the year with growth of 3.9 per cent, nearly 4 per cent. At the same time, new businesses have increased by around 20 per cent over the first eleven months of the year, as December data is not yet available. Foreign investments in the third quarter alone grew by over 10 per cent, and the stock of foreign direct investment is significant and more than 10 per cent higher compared to the previous year. The average salary in the third quarter reached €833, representing a meaningful increase. In a few days’ time, the new minimum wage of €500 will come into force, affecting a considerable number of employees in both the private and public sectors. As we have stated, for these employees, contributions for a nine-month period will be paid by employers. Meanwhile, starting in October this year, the next pension indexation has been carried out. More importantly, with the start of the new year, a sustained increase in pensions will begin through support that will double, triple, quadruple, and quintuple year after year, all of which is foreseen in the government’s financial plans.
From January, pensions will increase as I have said before and as has been explained in detail by the relevant ministers, beyond indexation. Indexation is not a pension increase in the sense we are discussing, but rather a mechanism linked to prices. The increase we will implement will be meaningful year after year. Thus, a full urban pension will increase by 18,000 ALL per month starting in January. This will double in January 2027, triple in January 2028, quadruple in January 2029, and so on. The same applies to all the figures I will mention.
The partial urban pension will increase by 8,000 lek per month, the rural pension by 1,000 lek per month, the family pension by 700 lek per month, and the disability pension by 600 lek per month, and so on.
We also have very positive data in another area directly related to the economy, namely vocational education, which has reached nearly 20 per cent of upper secondary pre-university education, marking another positive result. What is particularly important is that employability among vocational education students is very high. In 2024, the employment rate of vocational education graduates reached 63 per cent. The budget for vocational education has increased significantly this year and will increase further next year.
Regarding social housing policies, this year support has been provided for around 4,000 families. At the same time, we are preparing, as announced during the electoral campaign, a reform of social housing to open an entirely new chapter and significantly increase the number of beneficiaries, not only for social housing but also for what is known as affordable housing in price terms.
As for public debt, we have continued to reduce it, and indeed it has fallen again this year. Albania’s credit ratings from both Standard & Poor’s and Moody’s are positive and have improved this year. After many years at B+, Albania has moved to BB with a stable outlook from Standard & Poor’s, while Moody’s raised the rating from B1 to Ba3. Due to economic growth, there has been a meaningful increase in tax and customs revenues without raising taxes, which is very important. Better administration and economic growth alone have generated 628 billion lek in state revenues. Meanwhile, several new policies have been approved, including the fiscal package with the Fiscal Peace agreement and the draft law on the forgiveness of overdue tax and customs liabilities, as well as the new VAT compensation scheme of 10 per cent for farmers, based on best European Union practices.
The state guarantee scheme for small and medium-sized enterprises and for agriculture is also ready and has begun to deliver its first effects. I would like to emphasize that, according to SIGMA’s assessment, the organization that conducts these evaluations on behalf of the European Union, compared with other Western Balkan countries, Albania is considered in writing, not verbally, a leading country in the functioning of public administration in the region, particularly in areas such as public financial management, public services, and human resource management.
Naturally, this stands in complete contrast to what is being stirred by the 700 political and media “pots,” but I do not believe SIGMA has any connection with the Government of Albania or the Socialist Party of Albania.
We have established the company “AlbTrace,” which represents an innovation in the country’s life, thanks to cooperation with the United Arab Emirates. This ensures that Albania, which for a long time depended on outdated concessions, now produces fiscal stamps domestically, marks fuels within the country, and offers a range of other state products using modern technology that will increase security and transparency.
We have also opened a new chapter in reducing cash usage in economic interactions. Initial limits have been set, but I want to stress very clearly that by June of next year, every business operating in the tourism and transport sectors must guarantee alternative payment methods for citizens. Not only cash and nothing else, but also electronic payment options. Within the next year, every business in Albania must ensure alternative payment methods so that anyone, whether local or foreign, can pay by card or other electronic means.
A few words on education. I am pleased that we have taken several important steps this year, starting with strengthening technological systems available to students. Smart laboratory points have reached 350 schools, and work will continue towards the stated objective, supported by allocated funding, to reach 1,000 smart laboratories by 2027. This will provide a strong and meaningful foundation for all children and students to engage more quickly with the new world of technology.
Construction and reconstruction of educational infrastructure has continued. The project for transport using vehicles produced domestically has begun, and we strongly believe that starting from the 2026 academic year, the first vehicles will be put into use nationwide to guarantee transport for teachers and students, which until now has been financed by the state budget for 38,000 students and 12,000 teachers based on distance.
The national professional development programme for teachers, psychologists, and security officers has continued. Meanwhile, the Smart City agreement has been signed, one component of which is a significant increase in school safety.
The project for the renewal of the French lycée in Korçë, as a Franco-Albanian lycée of science and innovation, has progressed positively. The curricular structure has been prepared, a special draft law completed, and the building implementation project finalized. Construction is set to begin in 2026.
As promised, the number of school security officers has doubled, and the number of students per psychologist and social worker has been reduced, reaching 839 professionals. A new real-time information mechanism has been established through a digital school platform, ensuring direct communication between teachers, parents, and students. A code of ethics for teachers has been approved and is being implemented. Curriculum review has begun across all grades, and in 2026 new curricula will be introduced for grades 1, 6, and 10, based on a new approach aligned with the demands of science, technology, engineering, mathematics, and related fields.
Investments in higher education have also continued. Reconstruction projects include the Faculty of Civil Engineering, the Faculty of Geology and Mining and the Geological Museum, the Faculty of Professional Studies at Aleksandër Moisiu University in Durrës, and the Faculty of Technical Medical Sciences at Elbasan University. The first phase of shortlisting studios for the new Aleksandër Moisiu University campus in Durrës has been completed, with around 40 studios expressing interest. Internationalisation has deepened. The joint bachelor’s and master’s degrees between the University of Technology of Compiègne in France and the Polytechnic University of Tirana are now a reality. The transformation of the Agricultural University of Tirana continues in close cooperation with BOKU University of Vienna, aiming to establish a unified degree and make the Agricultural University of Tirana a regional reference point with degrees equivalent to those of the prestigious Vienna university. A greater number of scientific research projects have been funded in cooperation with the academic diaspora, reaching 252 projects, a very positive figure indicating strong momentum and encouraging engagement with European Commission programmes such as Horizon Europe and bilateral programmes, where the University of Tirana has secured the highest number of projects. Further aspects related to the deepening of digitalisation in higher education are also underway.
We are also entering a new phase in deepening reform in the healthcare system and improving the management of public hospitals. Since March, financial autonomy has been implemented at the Memorial Hospital, marking a major step forward. Managerial autonomy is being applied in 12 regional and tertiary hospitals, with four additional hospitals in the process of entering this transformation, representing an epochal change for public healthcare.
A significant step has been taken to increase capacity for treating cancer patients, a growing global trend. An additional €15 million fund has been allocated initially. Work has begun on establishing a National Cancer Institute in Albania and on networking chemotherapy services across additional hospitals to reduce pressure on Tirana and increase overall capacity. New free programmes are being introduced, including thrombectomy services, breast reconstruction initially for 350 patients, corneal transplantation, followed by new cardiology, cardiac surgery, kidney transplant packages, and more.
Healthcare workers’ salaries have continued to increase, and a new decision has been taken to recognise years of service for doctors and nurses, which will increase their remuneration accordingly. On average, doctors’ salaries are projected to rise by an additional €135 per month.
Healthcare construction sites are active across the country. The new Queen Geraldine maternity building has been completed and is undergoing final inspection. Hospitals in Kavajë, Lezhë, QSUT cardiology and child psychiatry units, Peqin day hospital, and the elderly home in Libohovë have been rebuilt. Multifunctional parking and accommodation facilities at QSUT are under construction and are expected to be completed by next September, transforming the entire internal life of the University Hospital Centre Mother Teresa into a large park, significantly improving patient service quality.
Reconstruction continues for the burns and plastic surgery hospital, the Public Health Institute laboratories, a backup centre in Vlorë, new buildings in Elbasan, new pavilions in Berat, pathology services in Vlorë, maternity wards in Shkodër and Fier, and central hospital buildings in Lushnjë, Pogradec, and Gjirokastër. Numerous new medical devices have been procured. These investments significantly improve working conditions for doctors and nurses, and it is encouraging to note a meaningful decline in the trend of doctors leaving the country, with signs of reversal.
A few words on defence. Defence has entered an entirely new phase due to the changing geopolitical context. This year marked the beginning of the rebirth of our military industry, dismantled in the early 1990s. It is now clear that every country needs its own industrial base, and Albania has begun to rebuild it. There has also been a positive increase in youth interest in the Armed Forces, with the objective of increasing active personnel by 30 per cent by the end of this mandate. This year alone, 721 new recruits joined the Armed Forces.
We have the best-paid army in the region, including Serbia, and we will continue to increase support for our military personnel, aiming to reach the NATO average in financial support. This year finds us equipped with the Javelin missile system through cooperation with the United States, three patrol vessels donated by Italy, and air surveillance radars through cooperation with France. Our core ambition remains to make Albania a producer of military capabilities, not only for domestic use but also for export, making this year historic with the foundations of a “Made in Albania” defence industry.
A state-owned company has been established, signing six partnerships with domestic and foreign companies for arms and ammunition production. Uniforms will finally be produced domestically. Armoured vehicles, civil emergency vehicles, ambulances, police patrol vehicles, combat drones, and anti-drone systems will also be produced. Initial orders have been placed, with first products expected in the first half of 2026. Work continues on naval and aviation industry contracts.
Defence budget growth is historic, aligned with NATO obligations. We have also continued to bring order to state property management. Despite political and media noise, the state-owned company was established to ensure Albania secures its rightful share in any foreign engagement.
Investments continue nationwide, including Burrel, Kukës, Kuçovë, Pashaliman, and Porto Romano. Next year, focus will be on reviving the Albanian Aviation School in Vlorë and expanding the Armed Forces campus and museum complex. Civil protection remains a priority due to increasing global fire risks. Funds have been allocated to purchase Albania’s first two firefighting aircraft.
On cybersecurity, Albania faced a severe cyber-terrorist attack which fortunately did not destroy our digital infrastructure. Today, Albania is among the countries with the highest cyber defence capacity, as recognised by European security institutions. Continuous attacks occur, but none have penetrated our digital defence systems.
Finally, tourism. Compared to 2024, foreign visitor numbers have increased by nearly 7 per cent. Tourism revenues in the first nine months reached approximately €4.4 billion. Public beach areas increased by around 18 per cent, adding 1.1 million square metres, with public sandy parcels rising from 523 to 1,014. Further improvements are underway for the next season.
