AGP Executive Report

Cannabis Crackdown: A 70-year-old man was arrested in Has (Kukës) after police found three cannabis plots with 1,874 suspected plants, alongside allegations of illegal firearms and ammunition possession. Food Prices Watch: INSTAT data shows 2025’s biggest consumer pressure came from eggs (+8.5% y/y) and other livestock items (+5.2%), while fruit and vegetables rose fastest in crops (+4.7%). EU Accession & Defense: EU Commission President Ursula von der Leyen said Albania is making steady progress toward EU membership, while Albania plans to raise defense spending by an extra 10.3bn leks (to about 2.6% of GDP) for modernization and recruitment. Tourism Jobs & Market Reform: Unemployment fell to 8.4% in Q1 2026 as employers posted 5,600+ vacancies, led by tourism and services; the government also seeks a USD 200m World Bank loan to reform and upgrade tourism, payments, waste management, and food controls. Energy Transition: Albania’s solar output now covers over 10% of electricity, helping reduce reliance on hydropower; the energy minister urged faster EU funding for regional power links. Construction & Permits: Construction confidence dipped in June as new-order expectations weakened, though permits for about 2m sqm were approved in the first five months. Anti-Corruption in Industry: SPAK sent the Tirana incinerator/waste contract case to trial, indicting 14 people and two companies over a €128.2m concession; separate Sarandë investigations added precautionary measures in an illegal construction probe. Protests Hit Development Plans: Violent clashes continued over the Kushner-linked luxury resort near protected areas, with police using tear gas and water cannon and detaining demonstrators.

EU Accession Push: European Commission President Ursula von der Leyen told Ireland’s leadership that Albania is making steady progress toward EU membership, praising the merit-based approach and noting Albania is in the final phase of accession talks. Tourism Jobs & Skills: Albania’s unemployment fell to 8.4% in Q1 2026, with employers listing 5,600+ vacancies, led by tourism and services roles like cooks, waiters, receptionists and hotel cleaners. World Bank Finance for Tourism: The government is seeking a USD 200M World Bank loan to back reforms aimed at boosting Albania’s tourism-driven economy, including opening the tourism services market, raising quality and environmental standards, and improving border and food controls. Energy Transition: Energy Minister Enea Karakaçi said solar now supplies over 10% of Albania’s electricity and urged faster EU funding for Western Balkans power links to scale renewables. Defense Budget Boost: Albania plans to raise defense spending by 10.3 billion leks in its updated 2026 budget, targeting modernization, logistics and training aligned with NATO standards. Flamingo Revolution & Resort Crisis: Protests against a Trump-linked luxury resort near protected areas escalated again in Tirana, with police using tear gas, pepper spray and water cannon; clashes left injured officers and detained demonstrators. Anti-Corruption in Waste Contract: SPAK sent the Tirana incinerator/waste concession case to trial, indicting 14 defendants and two companies over alleged fraud and money laundering tied to a €128.2M deal. Illegal Construction Probe (Sarandë): Saranda prosecutors ordered precautionary measures in an expanding illegal construction investigation involving former inspectors and a judicial police officer. Construction Slowdown Signals: Construction confidence fell in June as firms reported weaker expectations for new orders, even as permits for large construction volumes stayed high.

Jobs & skills: Unemployment fell to 8.4% in Q1 2026 as employers listed 5,600+ vacancies, with the strongest demand in tourism and services (cooks, waiters, receptionists, cleaners) concentrated in Vlora, Durrës and Sarandë. Construction slowdown: Builders’ confidence dipped in June as expectations for new orders weakened and housing price growth cooled, even as permits for about 2 million sq m were approved in the first five months. Tourism reform push: The government is seeking a USD 200m World Bank loan to speed tourism-led growth, including opening the tourism services market, EU-aligned food controls, a border “single window,” waste management upgrades, and better access to finance for businesses and farmers. Energy transition: Solar now supplies 10%+ of Albania’s electricity; the country has 650 MW of solar capacity and is reviewing more solar and wind, while urging faster EU funding for Western Balkans power links. Corruption & waste: SPAK has sent the Tirana incinerator/landfill concession case to trial, indicting 14 people and two companies over a €128.2m contract and alleged diversion of project funds. Illegal construction crackdown: Sarandë prosecutors expanded an illegal construction probe with new precautionary measures, including suspension and house arrest for officials. Protests over Kushner-linked resort: Violent clashes outside parliament continued as police used tear gas, pepper spray and water cannon; demonstrators also escalated demands for PM Rama’s resignation.

Protest Flashpoint in Tirana: Police and demonstrators clashed outside Albania’s parliament as crowds protested the Kushner-linked luxury resort near Zvërnec, with riot police using pepper spray and water cannon; dozens were detained and nine officers injured. Anti-Corruption in Waste Sector: SPAK sent the Tirana incinerator/landfill concession case to trial, indicting 14 individuals and two companies over alleged fraud, money laundering, and a structured criminal group tied to a €128.2m contract. Illegal Construction Crackdown (Sarandë): Prosecutors expanded an illegal construction probe, placing a judicial police officer under suspension and house arrest for a former IVMT chief inspector, alongside other former inspectors under reporting orders. Energy Transition Push: Albania’s energy minister said solar now covers over 10% of electricity and urged the EU to speed up funding for Western Balkans power links to scale renewables. Agriculture Market Shield: A new bill would let the government intervene during crises by buying farm products directly, adjusting supply, and requiring traders to register and report prices in real time. EU/Industry Context: Fincantieri signed a training pact in Albania to build shipbuilding and naval construction skills around the Pashaliman shipyard.

Renewables Push: Albania’s solar output now covers over 10% of electricity, letting the country sometimes skip parts of the Drin hydropower cascade; the energy ministry says 650 MW of solar is built and more solar and wind projects are in review. Anti-Corruption & Waste Contract: Tirana prosecutors charged 12 people and two companies over a €128m public-private waste deal, alleging fraud, money laundering, and shell-company invoicing tied to an incinerator/landfill project. Protests Turn Violent: Clashes outside Albania’s parliament left at least 18 protesters detained and nine police injured as demonstrators escalated action against the government and MPs. Agriculture Market Shield: A new bill would let the government buy farm products directly during crises and require fruit/veg traders to register and report prices in real time. EU Accession Pressure: MEPs warned Albania’s EU talks could be at risk over the €1.4bn Kushner-linked resort plan, as “Flamingo Revolution” unrest grows. Shipbuilding Skills Boost: Fincantieri signed training and education pacts with Albanian partners to relaunch and modernize Pashaliman shipyard via internships and shipbuilding modules. Monetary Policy: Albania’s central bank kept its key rate at 2.5% after second-quarter inflation rose, citing higher fuel and some food prices.

Naval Industry Boost: Italy’s Fincantieri signed a memorandum with Albania’s KAYO and the “Pavarësia” Industrial School to revive Pashaliman shipyard training and restart naval construction, with a joint venture set to modernize the base and modules/internships for students. Jobs & Defence Capacity: Officials say the plan targets production from 2027 and up to around 10 vessels by 2030, with expectations of roughly 500 jobs in Vlora and a skills pipeline tied to defence needs. Protests & EU Accession Pressure: Albania’s “Flamingo Revolution” protests over the €1.4bn Kushner-linked Sazan/Zvërnec resort have escalated into nationwide unrest, with MEPs warning EU talks could be jeopardized unless the government changes course. Central Banking Watch: The Bank of Albania kept its key rate at 2.5% as inflation rose in Q2, citing higher fuel and some food/energy-linked services. Food Safety Risk: Malta ordered destruction of an Albania-origin food shipment after temperature and labelling issues and missing traceability documents were found. Regional Context: Vienna’s wiiw lifted Bulgaria’s growth outlook for 2026–2028, signaling steadier regional momentum.

Defence Industry Boost: Albania signed a cooperation memorandum with Italy’s Fincantieri to revive naval production at Pashaliman, aiming to start vessel building in 2027 and reach around 10 ships by 2030, with vocational training for students from the “Pavarësia” Industrial School and a projected ~500 jobs in Vlora. Textiles & Manufacturing: Italian yarn producer MIC launched an innovative Exté Silk yarn and reported growth, including a 10% revenue rise in Q1, while highlighting its Albania-linked operations and partnerships. Construction Safety: Albania’s first European-standard style inspections found about 20% of checked construction sites failing basic safety rules, with fines and work stoppages for non-compliance. Food Trade Compliance: Malta destroyed an Albania-origin food consignment after it failed safety checks over temperature control, labeling, and missing traceability documents. Energy & Connectivity: The Three Seas Initiative marked its 10th anniversary in Dubrovnik, pushing for stronger energy, transport and digital links, plus a plan for more capital mobilization and expansion toward the Western Balkans. Protests & Property Risk: Tirana’s “Flamingo Revolution” protests against the Kushner-linked coastal resort project entered a new stretch, with demonstrators demanding cancellations, governance changes, and investigations into land deals. Macroeconomy: Albania’s economy grew 3.71% in Q1 2026, with construction and real estate up, while industry fell due to weaker mining and textile output. Heat & Disruption: A severe heatwave hit the Balkans, with wildfires reported in Albania and authorities warning of dangerous conditions.

Defense & Shipbuilding Deal: Albania signed a cooperation memorandum with Italy’s Fincantieri to revive naval production at the Pashaliman base, aiming to start vessel building in 2027 and reach about 10 ships by 2030, with training for workers via the “Pavarësia” Industrial School and a projected ~500 jobs in Vlora. Textiles & Manufacturing: Italian yarn producer MIC launched an “Exté Silk” innovation at Pitti Filati 99, reporting growth in clients and revenue and highlighting its Albania-linked supply footprint and partnerships. Banking & Digital Services: Jet Bank began operations in Albania as the country’s first fully digital bank, built on Backbase’s AI-native Banking OS, with staged account activations after a large waiting list. Construction Safety: Albania’s first EU-standard-style inspections found about 20% of checked construction sites fail basic safety rules, triggering fines and possible work suspensions. Protests & Tourism/Real Estate: Tirana’s “Flamingo Revolution” protests continued over a Kushner-linked luxury resort near protected areas, with demonstrators demanding project cancellation and broader political reforms. Economy Snapshot: Albania’s Q1 2026 growth hit 3.71%, led by public services, real estate and construction, while industry and farming declined. Heat & Risk: A record-breaking European heatwave is driving wildfires and emergency responses, including in Albania.

Shipbuilding & Jobs: Italian shipbuilder Fincantieri signed a deal in Albania to create about 500 jobs at Pashaliman near Vlora, partnering with state firm KAYO and the Pavaresia Industrial School to train workers for shipbuilding and marine roles tied to Albania’s defence plans. Construction Safety: Albania’s first European-standard-style inspections found major gaps: about 20% of checked construction sites failed basic safety rules, with fines and work suspensions issued after follow-up checks. Banking Digitisation: Jet Bank began operations as Albania’s first fully digital bank, licensed by the Bank of Albania and built on Backbase’s AI-native banking platform, with tens of thousands already on its waiting list. Energy & Industry Outlook: Albania’s Q1 2026 growth hit 3.71%, led by public administration, real estate, professional services and construction, while industry and farming weakened. Protests & Tourism Development: Tirana’s “Flamingo Revolution” protests entered a 30th day against the Zvernec luxury resort linked to Jared Kushner and Ivanka Trump, with demonstrators demanding cancellation of the project and broader political reforms. Climate Pressure: A record heatwave is driving wildfires in Albania and across the Balkans, adding pressure to local emergency response and infrastructure.

Construction Safety Crackdown: Albania’s territorial protection inspectors say nearly 1 in 5 construction sites fail basic safety rules, with 65 of 338 inspected sites in Tirana, Golem, Vlora and Himara fined and ordered to suspend work, and follow-up penalties ranging from 500,000 to 5 million lekë. Digital Banking Push: Jet Bank has begun operations in Albania as a fully digital, licensed lender built on Backbase’s AI-native banking platform, with staged account activation for a waiting list of 75,000+ users. Economy Mix in Q1: Albania’s economy grew 3.71% in Q1 2026, led by public services, real estate, professional activities and construction, while industry fell 2.17% on weaker mining and textile output. Protests vs Coastal Resort: Thousands in Tirana again demanded PM Edi Rama’s resignation over a Kushner-linked luxury tourism project in the Zvernec protected area, after bulldozers and barbed-wire fencing appeared. Energy Transition Angle: A regional energy policy piece highlights the need for clearer rules so households and businesses in Albania and the wider Energy Community can actively produce and trade green power.

Albanian Economy Watch: Albania’s Q1 2026 growth hit 3.71%, led by public administration, education and health (+13.93%), plus real estate (+8.9%) and construction (+3.33%), while industry and farming cooled (industry/energy/water -2.17% and agriculture -0.49%), and unemployment fell to 8.4% as average wages rose to about 90,000 lek. Protests & Tourism Development: Thousands of Albanians again filled Tirana, demanding PM Edi Rama’s resignation and an end to the Kushner-linked luxury resort in the protected Zvernec/Narta area, after barbed-wire fencing and bulldozers appeared; protesters carry giant pink flamingos and cite lack of transparency and accountability. Agriculture Cooperation: Albania and Kosovo signed two agreements to boost agricultural advisory services, technology transfer, innovation, and a shared approach to marketing and trade in agri-food products. Energy Transition Angle: A regional energy policy piece highlights the need for clearer rules so “active customers” can generate, store and sell green power across the Energy Community, including Albania. Labour Market Snapshot: International-institution jobs pay far above the national average, with Albania’s highest wages in 2025 recorded in international institutions (189,000 lek gross monthly). Climate & Wildfire Pressure: A record heatwave continues to hit Europe and the Balkans, with wildfires reported in the region and Albania battling a blaze near Klos.

Protests & Tourism Development: Thousands of Albanians again filled Tirana demanding PM Edi Rama’s resignation and an end to the Kushner-linked luxury resort in the protected Zvernec/Narta Lagoon area, sparked by barbed-wire fencing and bulldozers and now framed as a fight over transparency and accountability. Governance & Procurement: A new controversy around “The Albanian Files” highlights how international architecture patronage may be tied to Albania’s highly personalized power model, with critics calling it a façade for opaque decision-making. Energy Infrastructure: Work is underway on a new Kamza power substation, backed by Albanian and German cooperation, aiming to modernize the network and stabilize electricity supply. Social Policy: Albania approved a 2.7% pension indexation from July 1 for 900,000+ beneficiaries to protect purchasing power amid higher prices. Agriculture & Trade: Albania and Kosovo signed two agreements to boost farm advisory services, technology transfer, and joint marketing to help agri-food producers reach wider markets. Water & Environment: A new European Environment Agency bathing-water ranking shows where clean swimming water is still out of reach, including Albania’s monitored sites. Industry & Logistics: Albania is pushing ahead with industrial and logistics parks near Tirana, Durrës, Porto Romano and Vlora to connect local production to European supply chains, despite land disputes and infrastructure gaps.

Coastal Protests, EU Pressure: Thousands in Tirana keep rallying against a Kushner-linked luxury resort in Zvernec and the Narta Lagoon nature reserve, with the “Flamingo Revolution” growing from environmental anger into anti-corruption demands for PM Edi Rama’s resignation; Rama says no final deal is signed and blames external influence. Agriculture Deal: Albania and Kosovo signed two agreements to boost farm advisory services, technology transfer, innovation, and a joint approach to marketing and trade in agri-food products. Energy Infrastructure: A new Kamza power substation is under way with Albanian-German support to modernize the network and improve electricity stability. Social Spending: Albania approved a 2.7% pension indexation from July 1 for 900,000+ beneficiaries to protect purchasing power amid higher prices. Industry & Logistics: Albania is pushing ahead with industrial and logistics parks near Tirana, Durrës, Porto Romano and Vlora to serve European supply chains, though land disputes and skills shortages remain hurdles. Public Sector Tech: Albania’s AI-powered procurement minister Diella is highlighted as part of a wider Balkans push toward AI-enabled governance.

Protests & Property Rights: Tirana’s “Flamingo Revolution” keeps growing after a Kushner-linked luxury resort plan in the Vjosa-Narta protected delta sparked daily marches and wider anti-corruption anger, with Rama pushing back on claims and the dispute increasingly tied to Albania’s EU image and governance gaps. Agribusiness Exports: Albania and Kosovo signed two agriculture agreements in Tirana to expand advisory services, technology transfer, innovation, and a joint approach to marketing and trade in agri-food products. Industrial & Logistics Parks: Albania is accelerating industrial and logistics park development around Tirana, Durrës, Porto Romano and Vlora to plug into European supply chains, though land disputes, infrastructure limits and skills shortages still bite. Energy Infrastructure: A new power substation in Kamza is underway with Albanian-German support to modernize the network and stabilize electricity supply. Social Impact: The government approved a 2.7% pension indexation from July 1 for 900,000+ beneficiaries to protect purchasing power amid inflation. FDI Watch: Foreign investment hit €404m in Q1, with real estate and construction driving the model, while experts urge more job-creating production investment. Environment & Tourism: A new EEA report ranks Europe’s cleanest bathing waters, with Albania included among monitored sites. AI in Public Services: Albania’s AI-procurement minister Diella is highlighted as the Balkans push deeper into AI-powered governance. Textiles Trade: ITM 2026 in Istanbul wrapped with strong global participation, underscoring ongoing demand for textile machinery and technical textiles.

Industrial & Logistics Parks: Albania is pushing ahead with new industrial and logistics parks near Tirana, Durrës, Porto Romano and Vlora to serve European markets, with projects including a Lidl logistics centre in Porto Romano—though land disputes, weak infrastructure and a shortage of skilled workers could slow delivery. Energy Infrastructure: A new power substation in Kamza is under way, backed by Albanian and German cooperation, with €13m aimed at modernizing the network and boosting capacity for a more stable electricity supply. Social Protection & Demand: The government approved a 2.7% pension indexation from July 1 for 900,000+ beneficiaries to protect purchasing power amid inflation pressures. Agriculture Output: Albania’s 2025 agricultural production reached about 9.7m tons, with vegetables up 1.5% to around 1.4m tons, supported by export demand. FDI Watch: Foreign investment rose to €404m in Q1, the highest in four years, led by real estate (€172m) and finance/insurance (€68m), highlighting Albania’s property-heavy investment model. EU-Linked Protests & Tourism Development: The “Flamingo Revolution” protests over a Kushner-linked luxury resort continue, with Rama saying negotiations are still ongoing and no permits were issued—while the dispute keeps spilling into broader anti-corruption and EU-path concerns. Digital Governance Trend: Albania’s earlier move to appoint an AI-powered minister is cited as part of a wider Balkans shift toward AI in public administration, alongside regional experiments. Textile Sector Signal: ITM 2026 in Istanbul drew 48,257 professional visitors from 105 countries, underlining strong international demand for textile machinery and related technologies.

Energy Infrastructure: Albania’s Kamza gets a new power substation as the Infrastructure and Energy minister says a €13m upgrade will modernize the network and boost capacity, supported by Albanian and German cooperation including €30m for digitalization and rehabilitation of 12 other substations. Social Policy & Demand: The government approved a 2.7% pension indexation from July 1 for 900,000+ beneficiaries to protect purchasing power amid inflation pressures. Banking Modernization: Jet Bank officially launches as Albania’s first fully digital bank, built on Backbase’s AI-native banking platform, after receiving its licence in March 2026. FDI & Real Economy: Foreign investment hit €404m in Q1, with real estate taking €172m (over 40%), while energy and manufacturing remain smaller shares—highlighting the need to attract more production-focused capital. Agriculture Output: Albania’s 2025 vegetable production rose 1.5% to about 1.4m tons, with greenhouse vegetables down slightly, while fruit fell 12.8% to 253,400 tons. EU & Governance Pressure: An opposition MP warns weak institutions and corruption make Albania and the Western Balkans easier targets for foreign influence, calling for tighter rules in energy, ports, telecoms and strategic ownership. Regional Trade: Albania and Kosovo agree to help farmers and food producers reach wider foreign markets via tech, digital services, joint promotion and support at international fairs. Protests & Property Risk: The “Flamingo Revolution” continues over the Kushner-linked Zvërnec coastal resort, with Rama saying negotiations are ongoing and no permits are issued, while protesters keep pushing for political change.