The governments of Albania and the Federal Republic of Germany successfully concluded the Development Cooperation Negotiations 2026 in Tirana, ending with the signing of the new Development Cooperation Protocol for the period 2026–2028.

The first day of negotiations focused on a broad political and sectoral dialogue, addressing Albania’s EU integration process, good governance, and the advancement of key reforms.

The cooperation framework continues to focus on three main pillars.

The first pillar, sustainable economic development, education, and employment, supports education and vocational training, private sector and SME development, rural development, and innovation, with the aim of strengthening Albania’s competitiveness and preparing the economy for integration into the European Union market.

The second pillar, climate, energy, and just transition, prioritizes renewable energy, energy efficiency, sustainable urban development, and climate resilience, contributing to Albania’s green transition and energy security.

Governance and EU integration remain cross-cutting priorities, supporting reforms in the rule of law, institutional capacity, transparency, and the fight against corruption.

In this context, both sides appreciated Albania’s significant progress on its European path, including the opening of all negotiating chapters with the EU in 2025, marking a critical phase towards membership. Germany reaffirmed its role as a long-term and reliable partner in supporting Albania’s reform agenda, regional stability, and European integration process.

Given the implementation challenges, particularly in the water and wastewater sector, the Albanian side signaled a temporary moratorium on new loan commitments in selected areas, placing greater emphasis on improving the implementation and performance of ongoing projects.

Both sides agreed to prioritize efficiency, faster procedures, and stronger coordination, while future financing will increasingly focus on strategic sectors such as energy.

The second day of negotiations was dedicated to finalizing the Protocol, followed by an official signing ceremony, marking a new phase in Albania-Germany cooperation.

The new Protocol includes EUR 29M in new financial commitments, consisting of: EUR 14M in Financial Cooperation (investment-oriented financing, mainly in the form of grants); and EUR 15M in Technical Cooperation (expertise, advice, and capacity-building support). This distribution reflects a balanced approach between infrastructure investments and institutional strengthening.

Under the economic development pillar, the funding includes: EUR 12M for the Regional Challenge Fund to strengthen vocational education and skills for the labour market; EUR 4M for ProSEED 3.0 to increase competitiveness, innovation, and integration into European value chains; EUR 4M for Sustainable Rural Development to support agriculture, tourism, and rural businesses.

Under the climate and energy pillar, the funding includes: EUR 2M to support the implementation of the “Green Transport Tirana” project, including the first Bus Rapid Transit system with electric buses; EUR 4M for the circular economy and waste management systems in line with EU standards; EUR 0.5M to support reforms in sustainable urban transport.

In support of EU integration and governance, the Protocol includes: EUR 1.5M to strengthen EU accession negotiations through targeted technical assistance; EUR 1M through the Study and Expertise Fund for reform support and project preparation; Additional targeted support for legal approximation with the EU acquis.

The agreement also highlights important cross-cutting priorities, including gender equality, migration management, the fight against corruption, private sector development, and regional cooperation in the Western Balkans, including through the Berlin Process. Both sides underlined that effective implementation remains essential.