Budget Support Component
With a budget of €48.1 million under IPA II, the programme aligns Albania’s reform agenda with EU standards, fostering a public sector that is more efficient, transparent, accountable, inclusive, and responsive to citizens’ needs at both national and local levels.
The support builds on the progress achieved through previous Sector Reform Programmes, including Public Financial Management reform (under IPA 2014), Public Administration Reform (under IPA 2015), and anti-corruption efforts (under IPA 2016).
By integrating budget support (€36 million) with technical assistance (€12.1 million), the EU4GG Programme addresses Albania’s strategic priorities, ensuring alignment with EU integration processes.
The programme aims to improve governance by:
- Enhancing fiscal autonomy and domestic revenue collection.
- Establishing transparent, well-coordinated policy planning and budgeting systems.
- Strengthening human resource management and civil service reform.
- Supporting decentralisation and improving local government capacities.
- Increasing institutional integrity, transparency, and citizen engagement.
The budget support aims to improve governance through direct financial transfers. This approach aims at strengthening Albania’s ability to execute reforms while fostering accountability and transparency. The key focus areas include:
- Public Administration Reform (PAR)
- Promote civil service reforms to create a professional, depoliticized workforce, with clear career paths and automated payroll systems.
- Support the harmonization of administrative procedures and alignment with EU best practices through new guidelines.
- Strengthen impact assessments and public consultations to ensure inclusive policymaking.
- Public Financial Management (PFM)
- Integrate budget planning with long-term strategic policies to ensure efficient allocation of resources.
- Strengthen public investment management by reducing fragmented approvals and improving oversight of Public-Private Partnerships (PPPs).
- Introduce enhanced commitment controls to prevent re-accumulation of arrears at both central and local levels.
- Local Government
- Improve fiscal autonomy for local governments by implementing the 2017 Local Finance Law.
- Accountability and Anti-Corruption
- Develop and monitor integrity plans across institutions to address corruption risks systematically.
- Ensure compliance with transparency laws, including open data regulations and citizens’ access to information.
Details about the Budget Support component can be found at the EU Projects Website: https://euprojects.al/