Cluster 3 – Competitiveness and Inclusive Growth

Cluster 3 – Competitiveness and Inclusive Growth, consisting of eight chapters, primarily focuses on strengthening Albania’s economic and social development to ensure alignment with EU standards and best practices. 

To support this objective, Cluster 3 emphasizes reforms in areas such as such as taxation, employment, digital innovation, and consumer protection, which serve as key avenues for aligning Albania’s institutions and policies with EU acquis. These reforms are essential to achieving the overarching goal of Cluster 3, which is to enable Albania to compete effectively in the global marketplace while ensuring that subsequent economic growth is inclusive and benefits all segments of society.

The EU has made clear that Cluster 3 can only be provisionally closed once specific benchmarks are met. These benchmarks, measurable conditions set by the EU, serve as progress indicators to ensure that Albania has adequately implemented the necessary reforms within each chapter. For Cluster 3, a total of 19 provisional closing benchmarks have been set by the EU. The benchmarks are as follows:

Chapter 10 – Information society and media

Chapter 10 of the EU acquis focuses on digital transformation and media, including electronic communication, digital services, digital trust and cybersecurity, and audiovisual media. It aims to promote a competitive and secure digital environment, ensure access to high quality online services, and includes provisions to protect users and infrastructures. Subareas of this chapter are: institutional set-up; legal alignment; electronic communications and information technologies; digital transformations; audio-visual media; and fighting corruption in the area of digital transformation.

After the opening of negotiations for Cluster 3, two provisional closing benchmarks have been set for this chapter:

• Albania brings its legislation in line with the EU acquis as regards the provisions on the independence of the National Regulatory Authority for electronic communications, digital services, digital trust and cybersecurity, as well as the EU acquis in the area of audiovisual and media services.
• Albania demonstrates that it will have sufficient administrative capacity to enforce the EU acquis in the fields of electronic communications, digital services, digital trust and cybersecurity, and audiovisual media services, and ensures independence of the respective national regulatory authorities, by the time of accession.

Chapter 16 – Taxation

This chapter’s purpose is to ensure that tax rules are fair, transparent, and do not create barriers to internal markets. It also promotes alignment with EU standards, eliminating harmful tax practices and enhancing cross-border cooperation to support the free movement of goods and capital. Subareas of this chapter are: indirect taxation; direct taxation; administrative cooperation and computerisation; and prevent corruption in the tax system.

After the opening of negotiations for Cluster 3, three provisional closing benchmarks have been set for this chapter:

• Albania has corrected all discriminatory tax measures against EU imports and refrains from adopting new ones. Albania has an advanced level of alignment with the acquis in the areas requiring further alignment in particular direct taxation, VAT, excise duties, and car taxation. In the field of energy, alcohol, and tobacco excise it shares with the Commission and consistently implements a calendar for a gradual alignment with the EU minima.
• Albania demonstrates that it has adequate administrative capacity with high standards of integrity in the tax administration, as well as the required infrastructure in its central and local tax offices to implement and enforce its tax legislation and to effectively collect taxes and control its taxpayers. Albania demonstrates that the Central Liaison Office and the Central Excise Liaison Office have the necessary arrangements in order to ensure that they will be sufficiently staffed and operational upon accession.
• Albania demonstrates sufficient progress in developing all the tax administration IT supporting systems, including those related to interconnectivity with relevant EU systems, and in particular those for VAT (VIES, VAT Refund, One Stop Shop and Import One Stop Shop), excise duties (EMCS) and its supporting systems and the IT systems necessary for tax cooperation and exchange of information in the field of direct taxation.

Chapter 17 – Economic and monetary policy

Chapter 17 of the EU acquis ensures alignment of economic and monetary policies with EU principles, supporting overall financial stability. Its purpose is to promote the independence of central banks, encourage sound fiscal governance and coordination with EU economic oversight frameworks. Subareas of this chapter are: monetary policy; economic policy; and fight against corruption in economic and monetary policy. 

After the opening of negotiations for Cluster 3, two provisional closing benchmarks have been set for this chapter:

• Albania has aligned its legal framework with the EU acquis in order to ensure full central bank independence, the prohibition of monetary financing of the public sector, and to enable the full integration of its central bank into the European System of Central Banks.
• Albania has aligned its legal framework to comply with EU requirements for national budgetary frameworks.

Chapter 19 – Social policy and employment

This chapter’s objective is to ensure fair, safe, and inclusive working, protection of vulnerable groups, and foster equal access to employment and services. Subareas of this chapter are: European Pillar of Social Rights; labour law; health and safety at work; social dialogue; employment policy; social protection and social inclusion; non-discrimination; equality between women and men in employment and social policy; European Social Fund Plus, and fight against corruption in social policy and employment.

After the opening of negotiations for Cluster 3, three provisional closing benchmarks have been set for this chapter: 

• Albania has aligned its legislation in the fields of labour law and health and safety at work with the EU acquis, and has demonstrated that adequate administrative structures and enforcement capacity will be in place by the time of accession to implement correctly the EU acquis on labour law and health and safety at work, particularly through strengthening of the labour inspection system.
• Albania has aligned with the EU acquis on social protection and inclusion, and amends the laws on non-discrimination and on equality between women and men in employment and social policy in order to align its legislation in these fields with the EU acquis, and demonstrates that adequate administrative structures, administrative and enforcement capacities will be in place by the time of accession.
• Albania demonstrates that it has adequate capacity to ensure effective implementation and enforcement of legislation and policy framework in the areas of employment and social policies, including planning and operational capacities, to foster an effective social dialogue, as well as to ensure capacities for the future management of the European Social Fund+.

Chapter 20 – Enterprise and industrial policy

Chapter 20 of the EU acquis focuses on enterprise and industrial policy, including principals, instruments and sectoral policies. Its aim is to promote a competitive, sustainable, and innovation-driven economy and encourage a business-friendly environment, especially for small and medium-sized enterprises. Subareas of this chapter are: horizontal aspects of EU industry policy; enterprise policy and instruments; industrial initiatives; and fight corruption in the field of industry and enterprise. 

After the opening of negotiations for Cluster 3, one provisional closing benchmark has been set for this chapter:

• Albania puts in place and starts to implement a sustainable comprehensive industrial strategy, and SME policy in line with the corresponding EU policies. Albania demonstrates it has adequate administrative capacities and level of coordination between the concerned ministries and agencies.

Chapter 25 – Science and research

Chapter 25 of the EU acquis focuses on science and research. It aims to support research and innovation by improving funding, encouraging cooperation between universities and businesses, and boosting overall scientific progress. It also encourages participation in shared research programs that drive long-term development and competitiveness. Subareas of this chapter are: research and innovation policy; Horizontal Europe Framework Programme for Research and Innovation and the achievement of the European Research Area; and fight corruption in the area of research and science.

After the opening of negotiations for Cluster 3, three provisional closing benchmarks have been set for this chapter:

• Albania ensures an increase of investment in research and science, notably public funding, and the necessary implementing capacities.
• Albania demonstrates that it has put in place structures to strengthen the research and innovation eco-systems, the implementation of smart specialisation strategies and measures to enhance cooperation between the private and public sectors in research and innovation.
• Albania implements the new Law on Scientific Research and the National Strategy on Scientific Research.

Chapter 26 – Education and culture

Chapter 26 of the EU acquis focuses on education and culture, including education and training, inclusive education, Roma and Egyptian children, youth, vocational education and training (VET), sport, and culture. Its aim is to promote inclusive, high-quality education and support cultural development by encouraging cooperation, equal access, and lifelong learning opportunities. It also fosters alignment with EU standards to improve teaching, reduce disparities, and strengthen participation in cultural and education programs. Subareas of this chapter are: education and training; Vocational Education and Training; youth; sports; culture; and fight against corruption in education and culture. 

After the opening of negotiations for Cluster 3, one provisional closing benchmark has been set for this chapter: 

• Albania demonstrates that it has put in place the necessary institutional and policy framework, and corresponding budget planning, and anti-corruption measures, aiming to fulfil the EU policy objectives in the fields of education and training, including vocational education and training, youth, sports and culture. This includes measures towards closing the gap with the targets established under the European Education Area, and building progressively a reliable monitoring system, as well as measures to foster inclusive education, including for vulnerable groups.

Chapter 29 – Customs union

Chapter 29 of the EU acquis focuses on customs union, including customs legislation, administrative and operational capacity, and prevention of corruption. Its principle is to ensure the smooth flow of goods across borders by aligning custom rules and procedures with EU standards and strengthening enforcement and transparency. It also supports the development of digital customs systems and cooperation to prevent fraud, enhance trade facilitation, and ensure the proper functioning of the customs union. Subareas of this chapter are: customs legislation; legal framework; administrative and operational capacity; and fight against corruption in the customs field. 

After the opening of negotiations for Cluster 3, three provisional closing benchmarks have been set for this chapter:

• Albania has an advanced level of alignment with the areas requiring further alignment including the acts implementing the Union Customs Code, as amended, with particular attention on customs status of goods, and on transit, customs risk management and security aspects, cultural goods, cash controls, drug precursors and abolish the scanning fees.
• Albania demonstrates that it has adequate administrative capacity with high standards of integrity and performance of the customs administration as well as the required infrastructure in its central and local customs offices to implement and enforce its customs legislation and to effectively control and supervise cross-border movements.
• Albania demonstrates sufficient progress in the preparation and development of the digital customs systems required for the implementation of the Union Customs Code, as amended, and other EU customs legislation, through the preparation and adoption of a national IT strategy and implementation plan for customs and ensuring the necessary budgetary and human resources allowing the development of these digital customs systems and their interoperability with the EU digital customs environment.
• Albania accedes to the Framework Convention on Tobacco Control Protocol to Eliminate Illicit Trade in Tobacco Products (WHO FCTC Protocol) and improves cooperation with the EU in fighting cross-border smuggling of tobacco products and other illicit activities.

The EU encourages Albania to continue aligning its policies and legislation with the EU acquis and to ensure their effective implementation and enforcement. The progress of this alignment will be closely monitored, and an Accession Conference will be convened at a later date. 

Screening Timetable for EU-Albania Cluster 3

Cluster 3	Lead Institution	Explanatory meeting	Bilateral meeting
Chapter 10 – Information Society and Media	Ministry of Infrastructure and Energy	20-21 November 2019, update on 17 October 2022	30 January – 2 February 2023
Chapter 16 – Taxation	Ministry of Finance	3-4 June 2019, update on 21 October 2022	29-30 March 2023
Chapter 17 – Economic and Monetary Policy	Bank of Albania	9 January 2019, update on 20 September 2022	15-16 June 2023
Chapter 19 – Social Policy and Employment	Ministry of Health and Social Protection	3-5 April  2019, update on 18 October 2022	22-24 May 2023
Chapter 20  – Enterprise and Industrial Policy	Ministry of Economy, Culture and Innovation	29-30 January 2019, update on 20 October 2022	25-26 May 2023
Chapter 25  –  Science and Research	Ministry of Education and Sports	11 March 2019, update on 21 October 2022	26 April 2023
Chapter 26 – Education and Culture	Ministry of Education and Sports	12 March 2019, update on 18 October 2022	27 April 2023
Chapter 29   – Customs Union	Ministry of Finance	23-24 September 2019, update on 22 October 2022	5-6 June 2023

Related Documents:

Screening Report AL Cluster 3, February 2025

EU Common Position Cluster 3 – Albania, May 2025