Albania and Germany Sign New Development Cooperation Protocol in Tirana

The governments of Albania and Germany successfully concluded the 2026 Development Cooperation Negotiations in Tirana. The negotiations culminated in the signing of a new Development Cooperation Protocol for the 2026–2028 period.
On the first day of negotiations, the parties engaged in 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 focuses on sustainable economic development, education, and employment. It supports education and vocational training, private sector and SME development, rural development, and innovation. The goal is to strengthen Albania’s competitiveness and prepare the economy for integration into the European Union market.
The second pillar focuses on climate, energy, and just transition. It prioritizes renewable energy, energy efficiency, sustainable urban development, and climate resilience. This contributes to Albania’s green transition and energy security.
Governance and EU integration are cross-cutting priorities that support reforms in the rule of law, institutional capacity, transparency, and the fight against corruption.
In this context, both parties acknowledged Albania’s significant progress on its path to Europe, including opening all negotiation cluster chapters with the EU in 2025. This marks a critical phase toward membership. Germany reaffirmed its commitment to being a long-term, reliable partner in supporting Albania’s reform agenda, regional stability, and the European integration process.
Due to implementation challenges, especially in the water and wastewater sector, the Albanian government temporarily paused new loan commitments in certain areas. This allows them to focus on improving the implementation and performance of ongoing projects.
Both parties agreed to prioritize efficiency, faster procedures, and stronger coordination. 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 that marked a new phase in Albanian-German cooperation.
The new protocol includes €29 million in new financial commitments, consisting of:
– €14 million in financial cooperation, primarily in the form of investment-oriented financing and grants
– €15 million in technical cooperation, including expertise, advisory services, and capacity-building support
This allocation reflects a balanced approach between infrastructure investment and institutional strengthening.
Under the economic development pillar, funding includes:
– €12 million for the Regional Challenge Fund to strengthen vocational education and labor market skills;
– €4 million for ProSEED 3.0 to enhance competitiveness, innovation, and integration into European value chains; and
– €4 million for Sustainable Rural Development to support agriculture, tourism, and rural businesses.
Under the climate and energy pillar, funding includes:
– €2 million to support the implementation of the “Green Transport Tirana” project, including the first Bus Rapid Transit system with electric buses
– €4 million for circular economy and waste management systems that align with EU standards
– €0.5 million to support reforms in sustainable urban transport

In support of EU integration and governance, the protocol includes the following:
– €1.5 million for targeted technical assistance to strengthen EU accession negotiations
– €1 million through the Study and Expertise Fund to support reforms and project preparation
– Additional targeted support to align with the EU acquis
The agreement highlights key cross-cutting priorities, including gender equality, migration management, anti-corruption efforts, private sector development, and regional cooperation in the Western Balkans through the Berlin Process.
Both parties emphasized that effective implementation remains essential.
This important milestone reaffirms Germany’s commitment to supporting Albania with financial assistance, technical expertise, and strategic cooperation. These efforts contribute to sustainable development, the green transition, and a well-prepared path toward European Union membership.