Parliamentary Address on the 2026 Draft Budget

Prime Minister Edi Rama:

I want to begin precisely with poverty and income, because it is in this very relationship with poverty that lies the reason why we are in our fourth term today. And I want to start by quoting Eurostat, the European Statistics Institute:
“Albania has a lower risk of poverty than Serbia, Montenegro, Bulgaria, and Turkey, and Albania is closer to the EU average in this regard.” This is what Eurostat says, not me.

I continue with another reliable source, again not governmental, regarding the change in the share of food in Albanian families’ budgets, which was around 50% when we took office and is now below 40%. Meanwhile, according to the Bank of Albania, not the Albanian government, the real disposable income of Albanian families has increased by an average of 4%-5% annually between 2021 and 2024. And I will conclude with the International Monetary Fund, which just a few days ago stated: “Albania is among the fastest-growing economies in Europe, with prudent fiscal and monetary policies.”
These are sources whose independence from the Albanian government and from the parliamentary majority in Albania.

I also heard here that there is supposedly a corruption tax in Albania and that with the 450 million euros of the incinerators, a drastic pension increase could have been made. This claim appears nowhere in any of the files of a thoroughly investigated case over many years where not 450, but not even 45 million can be found. This means your lies whether conscious or unconscious, are dozens of times greater than the truth.

Regarding the Llogara Tunnel, I want to say that this 50 million is like the 450 million for the incinerators. And today, precisely because the judiciary is independent, Albanians refer to justice.

And finally, regarding the “miserable song” of agriculture funds, I want to tell the Albanian people that OLAF, which conducts investigations on behalf of the European Commission, has found no violations of the same nature in Albania from 2019–2023, except in these countries: Luxembourg, Malta, Cyprus, Ireland, and the Netherlands. Meanwhile, the amount cited by OLAF across other EU countries, from Italy to Greece, from Hungary to Portugal, from Bulgaria to Denmark and Estonia, from Poland to Romania, totals over 1 billion euros.
That’s 1 billion euros that, in the opinion of the European Union’s investigative office, has been mismanaged. So, we must learn to deal with this aspect as well, because we are nearing EU accession. We simply need to lower our heads, correct what can and must be corrected, and always remain open to correction, not by resisting or rejecting independent audits or investigations, but by respecting them.
This is also one of the reasons why we have opened all chapters.
This is also one of the reasons why Albanians trust us and not you.

Meanwhile, this budget is a historic budget for the Socialist Party, because for the first time, it significantly and sustainably addresses, through a medium-term financial commitment of 1.7 billion euros, increased support for pensioners. The good thing about all this is that words are carried away by the wind, but facts remain, and everything people hear from this parliament can be verified in the coming months and years, just like all we have promised before.

So, the more you claim that we are not increasing pensions, the more pensioners will become convinced that there is no other alternative in the Republic of Albania for them or for their grandchildren, except the Socialist Party of Albania.

Social protection with this budget reaches 257 billion ALL, an increase of 11.6 billion, equivalent to 116 million euros. This amount comes at a time when poverty is decreasing and unemployment is also going down. It is more than double the protection Albanians had when we took office.

Pensioners are the main focus of this budget and this mandate. But we certainly do not forget those in the economic assistance scheme, persons with disabilities, or the housing needs of families, especially new ones, through the continuation of the baby bonus.

We are also maintaining our unwavering position:
Small businesses will not pay profit tax until 2029.
And for those talking about poverty, unemployment, and taxes: Albania has the highest threshold in Europe for VAT-exempt businesses. Businesses with an annual turnover of up to 100,000 euros pay no profit tax and no VAT. Up to 140,000 euros, they pay only profit tax.
For comparison: in neighboring North Macedonia, the VAT threshold is only 16,000 euros.

Another fulfilled promise is the increase of the minimum wage to 500 euros starting January. This will continue to rise within the fourth mandate, with the ambitious target of reaching 700 euros by the end of the term.

We also announced a major fiscal amnesty through the “Fiscal Peace” initiative, giving businesses the opportunity to resolve old issues and encouraging cooperation with the tax administration. The amnesty includes:

• Full cancellation of unpaid obligations older than 10 years
• 50% cancellation of obligations from 5–10 years if the rest is paid immediately (fines and interest forgiven)
• 25% cancellation of the obligation 5-10 years if the rest is paid in installments within the year (fines and interest forgiven)
• Cancellation of late payment fines from 1–5 years if the main tax and contributions are fully paid

Also, for voluntary corrections to previous financial declarations, only a 5% tax will apply on, the difference, encouraging honesty and transparency.

This is a new, meaningful, and transparent agreement, strengthening the economy and easing administrative burdens.

Raising the minimum wage is not just an isolated move, it pushes all wages upward. When we started, we exempted from payroll tax those earning 300 euros, then 400, and now 500 euros, which represents 35% of all employees.

The minimum wage was 157 euros when we took office; today it is 500 euros.
Also, the share of workers earning the minimum wage has dropped from 60% to 14%, showing overall wage growth.We have doubled the average private sector wage and brought the average public sector wage to 1,000 euros, while the national average is now 840 euros.

For the first time, we are also introducing biennial wage indexation for public administration, and differentiated pay raises to support lower-paid workers more fairly.

10,600 service staff (cleaners, drivers, technicians, etc.): +10,000 ALL/month

• Public administration specialists: +5,000 ALL/month
• Teachers: +3,000 ALL/month
• In healthcare, seniority pay added for the first time:
  • General doctors: from 131,700 to 143,500 ALL
  • Nurses: from 87,000 to 92,500 ALL
• Police officers will also benefit based on rank and seniority:
  • Entry-level officers: average increase of 5,000 ALL/month
  • Inspectors: from 80,500 to 84,500, and the allowance will be up to 100,000 ALL
  • Sub-commissioners, from 95,500 ALL will go to 100,000 ALL, and with allowances, they will reach 116,000 ALL
  • Commissioners: from 105,000 to 125,000 ALL
  • Senior officers: from 130,000 to 156,540 ALL

The total cost for administrative salary increases is 100 million euros.

Let me clarify again: Although we tax big businesses more than other countries in the region, we tax small businesses less than anyone else.
Also, despite false rumors, there will be no increase in social contributions.
All income increases, from pensions to public wages, will come from economic growth, not tax hikes.

This is a massive budget for security and justice, dictated by our NATO membership and our commitment to an independent judiciary, a standard guaranteed only by the Socialist Party of Albania.

A new compensation scheme for farmers outside the VAT system is introduced. The VAT reimbursement rate will be 10%, the most competitive in the region.

I assure everyone: Albania will not stop.
We are in a decisive phase, having just opened all negotiation chapters with the EU and being praised for meeting every requirement of the new growth plan.
We are especially praised for what we’re constantly attacked for: Justice reform and the independence of the judiciary.
If today Albania truly fights corruption, prosecutes without discrimination, and elevates the flag of judicial independence alongside legislative and executive power, that is exclusively due to the Socialist Party, the only true guarantor of this independence.

Thank you very much!