Minister Demo Highlights Economic Development and Municipal Modernization in Support of Albania 2030

At the meeting held at the Palace of Brigades, Minister of State for Local Government Ervin Demo presented a report on strengthening local government. The report focused on four pillars: economic development, increasing local capacities, modernizing governance, and improving the performance of public services.
Regarding economic development, Demo highlighted the “Mountains Package” program and noted that 25 municipalities have identified priority areas. More than 300 real applications for construction permits have been registered in these areas and are currently being processed by local authorities. He added that another 25 municipalities are preparing the necessary documentation. The goal is to reach 1,000 successful applications across the entire territory by 2026.
The minister also emphasized the concept of “entrepreneurial municipalities,” which aims to transform local government units into active economic players. This initiative is currently under discussion with several municipalities and is expected to take concrete form in the coming months. The goal is to bring about changes in local economic development.
Regarding local capacities, Demo highlighted the launch of the Local Government Academy, where initial training sessions focused on preschool education and waste management. According to Demo, the financing model provides joint support, with municipalities funding 50% and the Albanian government funding the remaining 50% during the first three years to ensure the initiative’s sustainability.
The report also addressed the reorganization of municipal police forces. The revised draft will be discussed with mayors, and the Ministry of the Interior will establish national standards for municipal police forces operating at the local level as part of municipal structures.
The minister announced the continuation and consolidation of academic partnerships with universities in 2026. These partnerships are aimed at addressing specific territorial challenges through studies and concrete recommendations for municipalities.
He described the digitalization of local services as the main project of the mandate. Working groups have been established to review and simplify all services before their digitalization to reduce costs, increase efficiency, and ensure citizen access.
During 2026, the AFMIS (Albanian Financial Management Information System) is expected to evolve from a basic financial management tool into a system that evaluates the performance and financing of local public policies. The system will include a performance measurement module and establish national service standards.
Regarding service performance, Demo announced the beginning of a review of the Performance Grant methodology, which will now be directly linked to the quality of services provided by municipalities.
The minister also addressed territorial reform, emphasizing that its outcome should prepare municipalities for the challenges of European integration and the specific issues of local territories. Demo announced a fact-finding tour across the country and a detailed analysis of municipal functions. The goal is to build sustainable local government units in support of Albania’s 2030 objectives.