SAI: Albania lost momentum on reforms, €228 million in EU funds remain blocked

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A report by the Supreme State Audit highlights that Albania has failed to receive on time all the funds envisaged under the European Union’s Growth Plan. According to the audit, the main obstacle is the failure to complete part of the required reforms, while no disbursement has been made for €228.5 million intended for projects.

SAI: Albania lost momentum on reforms, €228 million in EU funds remain blocked

What the SAI report says

In its audit on the implementation of the 2025 State Budget, the SAI notes delays in the receipt and disbursement of the funds Albania expects from the EU Growth Plan. According to the report, these delays are linked to the failure to meet part of the reform measures set as a condition for financing.

The total financing planned for Albania amounts to €922.09 million, of which €657.46 million is in the form of a loan. The audit notes that disbursement, apart from pre-financing, depends on meeting the targets of the Reform Agenda and on the European Commission’s assessment of the payment requests submitted by the Albanian authorities.

Payment requests submitted, but no full approval

For measures linked to 2025, the Albanian authorities submitted four payment requests: two in July 2025, for €94,994,047.37 and €50,590,699.56, as well as two more in January 2026, for €22,529,893.87 and €42,304,333.04. In total, the requested value reaches €210,418,973.84.

However, according to the SAI, these requests were not approved for the full amount requested. The report links this to shortcomings in several sensitive areas, including the governance of state-owned enterprises, the business climate, energy, cyber security, the judicial system and the transparency of public finances.

How much money has been disbursed so far

As of December 31, 2025, €76,238,776.49 had been disbursed in the form of budget support. Of this amount, €30,029,428.12 was pre-financing and €46,209,348.37 was a subsequent tranche.

In May 2026, another tranche of €22,779,256.24 was disbursed, bringing the total budget support received to €99,018,032.73. This shows that part of the financing has come through, but the pace remains far below the expectations that accompanied the overall package.

€228.5 million for projects without any disbursement

The most problematic part of the report concerns the component for project financing through the Western Balkans Investment Framework, worth €228,466,913.43. According to the audit, by the time it was completed, no disbursement had been made for this part.

The SAI notes that the contribution agreements with the European Investment Bank and the European Bank for Reconstruction and Development have still not been finalised. In practical terms, this means that a considerable amount of funds planned for projects has remained on hold.

Lack of internal control over the instrument

The report also raises concern over oversight mechanisms. According to the SAI, during 2025 no specific internal audits were carried out for the Reform and Growth Instrument for the Western Balkans.

This, according to the auditors’ assessment, limited independent control over how the implementation of reforms and the functioning of control mechanisms are monitored. For a financial instrument directly tied to reform conditions, this lack increases questions over the institutional capacity to manage the funds and the commitments undertaken.

The SAI report presents a picture that runs counter to the usual optimistic narratives about the progress of reforms: the funds exist on paper, but part of them remains out of reach because of unmet conditions and unfinished procedures.

In essence, the problem emerging from the audit is not only financial, but also institutional: the state’s ability to meet the standards it has itself accepted as a condition for receiving EU money.

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