How should the economy be after the 2025 Elections in Albania? – Proposals and Thoughts

The May 11th elections were not just a democratic exercise, but a strong signal for political continuity in Albania. With a fourth consecutive mandate, the Socialist Party faces a new challenge: not only to win elections but to gain the economic trust of the citizens.

In a country where growth has often followed imported consumption, and where social policies have been distributed more as electoral tools rather than development, the economy requires a fundamental shift.

Now, stability is not enough – what is needed is fair and inclusive transformation.
This result is not just a political vote but a mandate for economic transformation, which can no longer be justified by “legacy” or “external crises.”

1. Empowering a majority beyond a decade requires a New Economy, not Old Models

This means that empowering a majority beyond a decade is not simply an electoral triumph but a moment for institutional and economic reflection.

When a political force gains trust for a fourth mandate, the challenge is no longer to ensure stability – it has already been achieved – but to offer a new developmental vision that transcends the cyclical models of consumption, fiscal favoritism, and rhetoric of growth without inclusion.

Albania has entered a phase where voters no longer seek just political calm but a fair, productive, and inclusive economy. Old growth models based on inefficient public investments, remittances, and seasonal tourism are running out.

To maintain long-term legitimacy, the majority needs a new economic contract with the citizen: one that promotes quality employment, broadens the tax base without burdening the same groups, and guarantees equality in accessing developmental opportunities.

2. The Economy cannot stay on Autopilot; a rethinking of the approach is needed

This means that the Albanian economy can no longer move by inertia. After the elections, a new approach is required that goes beyond routine management and paves the way for sustainable and inclusive development.
To achieve this, we believe:
a) Fiscal Governance should shift from routine management to structural reform
The budget has maintained macroeconomic discipline, but there is a lack of cost-benefit analysis in expenditures.
Tax revenues have increased, but the tax base remains narrow, and informality continues to erode fiscal capacity. A fairer and more progressive taxation system is needed, combined with efficiency in local collection and greater control over tax evasion.

b) Economic policies should focus on strengthening production, not stimulating consumption
The Albanian economy needs a shift in focus towards production, exports, and quality employment, not fragile services and consumption imports. The manufacturing industry, agritourism, the digital sector, and green energy should play the leading role in the new development cycle.
Budgetary policies should be linked to measurable objectives for productivity and employment.

3. Social challenges demand an economy that includes and keeps people inside the country

The fourth mandate of the government cannot be justified by political continuity unless it brings meaningful change to the real lives of people. If economic growth does not translate into quality employment, opportunities for youth, and reduced inequality, electoral trust will remain formal and fleeting.

Albania faces deep social challenges – such as youth structural unemployment, mass emigration, and growing inequality – which demand not only supportive policies but also a new inclusive economic framework.
Social programs must shift from passive assistance to active employment, training, and inclusion mechanisms, linking them to local development and priority economic sectors.
Because an economy that grows without inclusion is not development – it is simply asymmetrical wealth accumulation that deepens divisions and alienates citizens from their country and from trust in institutions.
If the fourth government does not bring meaningful change to the real lives of people, electoral trust will remain formal.

4. The state as a guarantor, not a controller, is a tough challenge for the fourth government

The role of the state in the economy should not remain a hostage to political control but should be oriented towards institutional guarantees, regulatory neutrality, and transparency. With a long mandate in power, the risk of capturing public and economic institutions is real and well-documented in many sectors.

But without independent institutions and a functioning state, there is neither an economy that attracts serious investors nor sustainable trust from citizens.

The new government needs to shift from centralized political management to institutional governance that increases trust and equality in access to markets.
This requires concrete actions, such as:

• Restructuring public administration to free it from political burdens and clientelist effects;
• Clear and enforceable rules for public contracts that avoid misuse and provide legal certainty; and
• A review of public-private partnerships, analyzing real costs and public impact, especially for contracts that have not yielded results or constitute a burden for the budget.
  Without this shift in approach, the Albanian economy risks remaining trapped between political dominance and systemic distrust.

5. Post-May 11th Albania: What should be different in the Economy?

Winning a fourth mandate for the same majority is a rare event in pluralist democracies, but this mandate must be seen as a demand for transformation, not mechanical continuity. Albania needs an economy that changes its essence and direction.

This requires a shift from consumption and centralization models to production, justice, and inclusion models.

This transition is not technical but political, institutional, and cultural. Without this change, the fourth mandate risks being long in time but empty in substance.

6. A long mandate requires deep responsibility

A government entering its fourth mandate no longer has political alibis or institutional justifications for inaction. It faces only one clear task: to offer a mature economy, free from rhetoric, built on real productivity, fiscal justice, and long-term development.

Albania cannot continue to be managed as it was in the early years of transition – with budgetary improvisations and an economic policy that follows the rhythm of electoral cycles, not the public interest.

7. For this Purpose, ALTAX Proposes Two Concrete Initiatives, which could form the basis of a New Economic Contract between the Government and Citizens:

• National Economic Pact 2025–2030 – a strategic agreement with measurable objectives for (a) Increasing national production, (b) Formal and quality employment, and (c) Fiscal transparency and justice,
  divided by sectors and regions, with concrete implementation tools and annual performance measurement.
• Creation of an Independent Budget and Public Spending Performance Monitor[1], a structure outside political control that will analyze and publish detailed data every year on:
  • How expenditures align with declared objectives,
  • Where there are overruns or underperformance, and
  • How citizens’ interests are represented in budget usage.

If the new government wishes to secure a long mandate with a valuable legacy, this cannot be achieved with political continuity, but with bold economic change.

[1] The High State Control (KLSH), parliamentary committees, and inspectorates are institutions that operate according to constitutional and legal mandates, overseeing the legality and efficiency of public fund usage. However:

• They report after expenditures (ex-post) and not in real-time or intermediate stages;
• They often have a technical and auditing nature but lack inclusiveness or focus on the real impact on citizens;
• They are influenced by political cycles and often fail to communicate clearly with the public regarding budget performance and public policies.

The Supplementary Role of an Independent Monitor

An Independent Budget Performance Monitor, as proposed by ALTAX, does not replace existing institutions but:

• Increases public transparency and direct communication with citizens;
• Utilizes annual performance analysis, comparisons between regions/sectors, and data on real benefits;
• Helps expand accountability beyond traditional auditing, through understandable indices and the inclusion of civil society and independent experts.

International Examples: The “Fiscal Watchdog” Model

Many countries have established structures such as:

• OBR in the United Kingdom (Office for Budget Responsibility),
• IFAC in Ireland,
• Congressional Budget Office (CBO) in the United States,

These bodies operate independently of political parties and administrations, but serve as reliable and transparent technical filters for fiscal performance and the impact of public policies.