AGP Executive Report

Coastal Protest Flashpoint: Thousands of Albanians filled Tirana for a fourth straight day of demonstrations against a €1.4bn luxury resort linked to Jared Kushner’s Affinity Partners, planned for Sazan Island and the Vjosa-Narta protected wetland near Zvernec—protesters brand it “Albania is not for sale” and use flamingos as a symbol of the ecosystem at risk. Government & Security Response: Prime Minister Edi Rama defended the project on CNN and accused “hybrid war” tactics and bot-driven misinformation behind the backlash, while police and authorities face mounting pressure as protests spread from the coast to the PM’s office. Anti-Corruption Scrutiny: Albania’s anti-corruption prosecutors opened an investigation into the resort deal, including land-protection changes and how rights were obtained, adding a legal layer to the political fight. EU Enlargement Watch: In Montenegro’s Tivat, EU leaders and Western Balkan states pushed enlargement momentum—Montenegro is positioned as the front-runner, while Albania is described as progressing on accession chapters and reforms. Migration Policy Shift: The EU also moved toward a tougher migration and deportation framework, including return centers outside the bloc, with implementation expected soon.

Luxury Resort Protests & Anti-Corruption Probe: Thousands of Albanians have clashed with police in Tirana and rallied in Zvërnec against a €1.4bn (and wider multi-billion-euro) luxury project tied to Jared Kushner and Ivanka Trump, with critics warning of damage to the Vjosa-Narta protected coastal wetlands and fears of corruption and secrecy; Albania’s special anti-corruption prosecutor (SPAK) has opened an investigation into land-title acquisitions linked to the project, while the government says the investment is transformational for high-end tourism and EU ambitions. EU Enlargement Momentum: EU leaders are pushing to speed up Western Balkans accession while keeping it merit-based, with a Franco-German proposal floating earlier access to EU programmes and single-market benefits for candidates; separately, the EU has agreed to formally open accession talks with Ukraine and Moldova on the first cluster of issues. Business & Finance Watch: Albania’s business register hit 250,100 active legal entities in 2025 (+5%), driven by farmers and service-sector activity, while the government also announced a July 1 start for a “Double Your Entrepreneurship” programme offering subsidized credit and guarantees for SMEs. Energy Reform: The government approved a draft law to modernize the electricity sector and align it with EU rules, including new concepts for storage and self-consumption aggregation.

Zvërnec Protest Flashpoint: Thousands of Albanians kept rallying in Tirana against Jared Kushner–linked luxury plans for Sazan island and the Narta Lagoon/Vjosa-Narta protected wetlands, with police using water cannon as the “Flamingo Revolution” spreads; critics warn of damage to habitats and question approvals and land ownership, while developers say they’ll act responsibly and create jobs. EU Accession Signals, Connectivity Perk: The EU Council approved talks to extend “Roam Like at Home” to the Western Balkans (WB6), framing cheaper roaming as a practical boost for citizens and business ahead of enlargement negotiations. Culture Strategy for Growth: Albania unveiled a 2026–2030 culture plan aimed at boosting the economy and strengthening its EU path by using culture beyond heritage. Demographics Pressure: New data shows Albania’s median age has risen to 45, accelerating faster than the EU—raising concerns for workforce, pensions, and healthcare. Regional Labor Gap: A Berlin Process work plan highlights employment measures for groups like Roma, as employers across the Western Balkans struggle to fill vacancies while many remain excluded from work.

Zvërnec Protest Wave: Thousands of Albanians kept rallying in Tirana for a fourth straight day against Jared Kushner/Affinity Partners’ €1.4bn luxury resort near the Vjosa-Narta protected wetlands, with clashes as protesters pushed toward the PM’s office and police used water cannons; critics warn of habitat damage and loss of access, while developers say they’ll proceed with “responsible stewardship” and jobs. SPAK Asset Moves: Albania’s anti-corruption prosecutors widened the case, ordering preventive seizure of bank accounts tied to a landholding company linked to the Zvërnec project, later reported as partially lifted for one firm while investigations continue. Political Fallout: Opposition leader Sali Berisha said his party backs the project on “national interest” grounds, even as the protests broaden beyond party lines and organizers plan demonstrations across Europe and North America. Business & Tourism Pressure: Albania’s short-term rentals are rising fast—now the second most expensive in the Balkans at about €57/night—while European airport traffic posted its first year-on-year decline since the post-COVID rebound, with Albania still growing. Support for Firms: The government announced the “Double Your Enterprise” program launching July 1 with a €250m fund and 2%-3% financing for businesses. Agriculture Deal: Albania and Israel signed a new cooperation agreement focused on agriculture, food security, and innovation.

Coastal Clash Over Kushner Resort: Thousands of Albanians protested in Tirana against a €1.4bn luxury development tied to Jared Kushner’s Affinity Partners on Sazan Island and near the Vjosa-Narta protected landscape, with critics warning of damage to wetlands and restricted access; the company says it will follow “public and institutional processes” and promises environmental stewardship and jobs. SPAK Moves in Zvërnec Case: Albania’s anti-corruption prosecutors opened an investigation into land-title changes behind the project and seized company bank accounts in a suspected coastal land appropriation scheme, while PM Edi Rama defended the investment and urged a full review of land ownership. Vlora Airport Delays: Contractors for Vlora airport face penalties after a dispute between partner firms delayed work; the ministry says completion is still expected within deadlines but warns delays will cost more. IMF Confirms Albania Stability: An IMF mission in Tirana said growth remains resilient thanks to stronger activity, employment and a stable banking system, while flagging longer-term risks tied to demographics, productivity and EU accession. Business Sentiment Ticks Up: Albania’s economic confidence indicator rose in May, supported by construction and services, alongside improved consumer expectations. Transport Demand Softens: Car registrations fell again in May as higher transport costs slowed imports, especially from Asia.

Zvërnec Resort Crackdown: Albania’s anti-corruption prosecutors (SPAK) have seized bank accounts tied to Albania Land Development in a Zvërnec coastal land-fraud probe, while prosecutors say they’re also scrutinizing how protected-status changes enabled the wider Kushner-linked tourism push. Protests & Security Fallout: Thousands rallied in Tirana and outside the PM’s office for a third day, demanding the cancellation of the Ivanka Trump–Jared Kushner Sazan/Vjosa-Narta resort; clashes with private security led to injuries, police disciplinary action, and revoked licenses for two security firms. Rama Pushes Back: PM Edi Rama defended the investment and criticized reports of fund freezes as “arbitrary,” while urging authorities to fully examine land origins. Financial Crime Focus: Prosecutor General Olsian Çela said authorities seized over €60m in assets in 2024 and another €40m in 2025 as Albania intensifies financial-crime enforcement. Business Sentiment: Albania’s economic confidence indicator rose in May, driven by construction and services, according to the central bank. Digital Agriculture: The government unveiled “YLLI,” an AI virtual assistant in the Farmer Portal, promising real-time market and collection prices plus plot monitoring tools.

Luxury Tourism & Corruption Probe: Albania’s SPAK is investigating changes to the protected Vjosa-Narta wetland near Zvërnec tied to a Jared Kushner-linked luxury resort plan, as protests intensify over environmental risk and the scale of the proposed development (around 10,000 hotel rooms). EU Accession Momentum: EU Council President António Costa is in Albania ahead of the EU–Western Balkans summit, reiterating that enlargement is “real” and pushing the region’s economic and political alignment with EU standards. EU Funding for Reforms: Albania received €76.2m in EU budget support under the RGF, with additional €381m in strategic grants reported as being implemented via WBIF-backed projects. Agriculture Deal: Albania and Israel signed a new cooperation agreement on agriculture, food security, and innovation, including knowledge transfer and seasonal worker frameworks. Business & Tech Partnerships: FPT and Sembcorp Development signed an MoU to explore AI, digital infrastructure, data centres, and renewable energy collaboration across APAC. Public Health Supply: SK Bioscience won a UNICEF flu vaccine bid, with Albania listed among Northern Hemisphere supply destinations. Regional Business Footprint: Sport Vision’s group expansion continues as it gains control of eight sports retail companies across Central and Eastern Europe, including Albania.

EU Budget Support: Albania received over €76m in EU Reform and Growth Facility budget support (Dec 2024–Jun 2025), with €381m in strategic grants also under implementation, as WBIF monitoring missions reaffirmed backing for infrastructure, energy, environment, transport, digital and social projects. EU Accession Push: Prime Minister Edi Rama will host European Council President António Costa ahead of the EU–Western Balkans Summit in Tivat, with Costa stressing enlargement is “real” and a geostrategic investment in peace and security. Zvërnec Resort Probe: Albanian anti-corruption prosecutors (SPAK) opened an investigation into changes to the protected status of the Vjosa-Narta landscape tied to a Jared Kushner-linked luxury resort, as protests and clashes continue around the project and its environmental and property-rights impact. Business & Confidence: Albania’s Economic Sentiment Indicator rose in May, driven by stronger construction and services confidence and higher consumer optimism, while trade weakened. Retail Expansion: Sport Vision’s group is expanding in the region after reporting a deal to control eight companies in footwear and apparel retail across multiple countries including Albania. Tourism Demand: New search/booking data points to rising interest from UK travelers in Albania’s Himarë and other lesser-known coastal spots.

Business Sentiment: Albania’s Bank of Albania says both business and consumer confidence ticked up in May, led by services, while construction improved slightly and industry was flat; trade was the only sector to weaken. Tourism & Travel Demand: New UK booking/search data points to rising interest in Albania’s Riviera, with Himarë up sharply year-on-year, as travelers look for better value and less crowded coastal spots. Zvërnec Clash Fallout: Albania’s Interior Minister Besfort Lamallari demanded swift criminal prosecution of private security guards after violence during protests over a coastal resort project near Zvërnec, while also criticizing police inaction; police also revoked licences of two security firms and launched criminal proceedings against 17 people. Tax Enforcement: Albania’s Tax Administration seized eight luxury cars in Tirana tied to unpaid taxes of about €6.4m, moving from bank account freezes to asset confiscation. EU & Investment Pipeline: TAP’s managing director said a final investment decision on the pipeline expansion is expected in Q1 2027, after the market test process moves into later stages. EU Accession Momentum: Albania received further progress signals on EU talks, including steps toward closing negotiation chapters and meeting interim benchmarks. Education & Skills: INSTAT reports business-administration-law degrees led Albanian graduate outcomes last academic year, with health/welfare second and engineering third.

Zvërnec Protest Crackdown: Albania has launched criminal proceedings against 17 people after clashes during protests against a private resort project near Zvërnec/Portonovë, with police saying protesters tried to breach fencing and a demonstrator was taken inside the site by private security. Security Accountability: Interior Minister Besfort Lamallari demanded swift criminal prosecution of guards involved and urged administrative action against the security company, while also criticizing police inaction. Tax Enforcement: Albania’s Tax Administration seized eight luxury cars in Tirana tied to about €6.4m in unpaid taxes, moving from bank freezes to asset confiscation. Jobs & Skills Snapshot: INSTAT reports business, administration and law led Albanian graduate fields last academic year (nearly 1 in 4), with health/welfare second and engineering/construction third; women made up ~65%. Transport Support: The government will subsidize bus fuel costs with 50 leks per litre (March–May 2026), using a 250m-lek budget. EU/Innovation Context: Moldova joined the European Patent Organisation as the 40th member, effective 1 June, expanding European patent coverage across the region. US-Albania Diplomacy: The U.S. Senate Foreign Relations Committee is set to vote June 4 on the nomination of retired Gen. Eric Wendt as next U.S. ambassador to Albania. Business & Travel Links: Air Transat announced new summer routes including Toronto–Tirana starting June 18.

Industrial Policy Push: Albania’s PM Jafar Hassan ordered expanded incentives for the al-Rawdah Industrial Zone in Jordan’s Ma’an Development Zone—preferential electricity tariffs, land support and employment programs—until natural gas reaches the site, aiming to speed investment and competitiveness. Tourism & Property Dispute: In Albania’s Vlora region, the Zvërnec South Adriatic Development company defended its tourism project after protests, saying the land is private, fencing was legal, and biodiversity studies have been underway; police later charged 17 people after clashes between protesters and private security at the construction site. Transport Costs Relief: Albania will subsidize bus operators’ fuel bills—50 leks per litre for March–May 2026—with 250 million leks set aside, to support urban, suburban and intercity services. Construction Momentum: Building permits rose in Q1 2026: 322 permits approved (+25% y/y), with project value at 20.4 billion lekë and construction area up to about 377,000 sqm, led by housing. Fire Readiness for Summer: Albania stepped up wildfire prevention and emergency response nationwide, with heightened patrols, temporary stations in tourist hotspots, and stricter penalties for arson. Startup Growth Signal: Albania climbed eight places to rank 4th fastest-growing startup ecosystem in Europe (75th globally) in StartupBlink’s 2026 report, with ecosystem value estimated at $606.4m.

Public Transport Costs: Albania will subsidize bus fuel bills, paying 50 leks per litre for March–May 2026, with 250 million leks set aside. Construction & Housing Demand: Municipalities issued 322 building permits in Q1 2026 (+25% year-on-year), with approved project value at 20.4 billion leks and housing still leading. Digital Government: Albania launched a new state company in Tirana—Albanian Digital Solution—to maintain and expand e-government systems like e-Albania and e-signatures. EU & Growth Signals: Albania climbed 8 places in StartupBlink’s 2026 Global Startup Ecosystem Report, ranking 4th fastest-growing in Europe. Regional Development Plan: The government presented “Rilindja 2.0,” a program with 11 objectives for sustainable regional development, including regeneration of former industrial sites and local startup support. Energy/Connectivity: Sparkle plans to extend its GreenMed submarine cable toward Jordan, strengthening a new Europe–Middle East–Asia digital corridor. Environment & Land Disputes: Protests continue over alleged illegal machinery in the protected Pishë Poro-Narta area near Vlora, while Vlora airport builders were given 30 days to restart after a legal dispute.

Startup Growth: Albania jumped 8 places to rank 4th fastest-growing startup ecosystem in Europe and 75th globally in StartupBlink’s 2026 report, with 71.1% annual ecosystem growth and an estimated ecosystem value of $606.4m. Digital State: A new Tirana-based company, Albanian Digital Solution, will maintain and upgrade e-government systems, including e-Albania and e-signatures, aiming to cut waiting times and reduce corruption risks. Construction & Housing Demand: Municipalities issued 322 building permits in Q1 2026 (+25%), with approved project value at 20.4bn lekë and 377,000 sqm of construction area (+12.5%), led by residential projects. Regional Development: The government unveiled “Rilindja 2.0,” a local development program with 11 objectives, including regeneration of former industrial sites and support for startups at municipal level. EU & Governance: Albania is set to receive Venice Commission input on a draft law to improve transparency in political party funding. Aviation Security: Vodafone Albania and Tirana International Airport launched “Security That Travels With You,” deploying Airbus airport security tools powered by Vodafone’s 5G. Environment & Risk: Authorities boosted fire prevention and emergency response ahead of summer, while protests continue over alleged illegal works in the protected Pishë Poro-Narta area.

Digital Government: Albania launched a new state company in Tirana, Albanian Digital Solution, to maintain and upgrade e-government services like e-Albania, e-signatures and real-time data exchange. EU Accession Watch: Albania’s 8th Accession Conference confirmed progress on the “fundamentals” cluster, with interim benchmarks met and a shift toward implementation and chapter closures. Startup Push: Albania climbed eight spots to 75th globally in the 2026 StartupBlink ranking, citing reforms, Startup Albania and a grant scheme that drew 1,100+ applications. Connectivity & Telecom: Vodafone Albania and Tirana International Airport rolled out “Security That Travels With You,” using Airbus’ airport security solution powered by Vodafone’s 5G. EU Funding Transparency: Albania improved its Global Tax Expenditures Transparency ranking to 48th (from 74th), as reporting of tax breaks and exemptions gets closer to European standards. Business Innovation: One Albania backed the “Young Innovators 2026” competition at the University of Tirana, awarding laptops to the winning team. Energy/Industry Angle: Italian cable operator Sparkle signed an MoU to extend its GreenMed submarine cable via Jordan, linking Italy with Albania and the wider region. Environment & Property Rights: Protests erupted over alleged illegal bulldozing in the protected Pishë Poro-Narta area near Vlora, with activists accusing authorities of lacking transparency and monitoring.

EU Accession: Albania’s membership talks are in the “closing phase” after the eighth Intergovernmental Conference confirmed it met interim benchmarks for the fundamentals cluster, with Rama stressing Albania never sought a veto and aiming for full membership by 2030. EU Funding & Reforms: Albania is also waiting for Venice Commission advice on a draft law to improve transparency in political party funding, part of wider electoral reform. Startup & Innovation: Albania climbed to 75th globally in the 2026 StartupBlink ranking, up eight spots, citing reforms and Startup Albania support; Tirana remains the only Albanian city in the list. Poverty & Living Costs: INSTAT data revised show over 10% of Albanians face severe hardship, with about 245,015 people in extreme poverty and persistent delays in paying utilities. Trade Facilitation: Albania’s CEFTA chairmanship priorities for 2026 include faster border crossings, more paperless trade, and wider recognition of electronic signatures. Tourism: Foreign arrivals rose in April to over 891,000 (+9% y/y), with business travel slightly down. Coastal Development Dispute: Residents in Qerret’s Blue Lagoon accuse Kavajë authorities of cutting pine trees and building a new access road without consultation or published environmental paperwork. Finance Markets: Iute Group increased its outstanding EUR 2030 bond volume to EUR 300m via an additional EUR 140m private placement, supporting loan growth and refinancing.

EU Accession Momentum: Albania’s EU talks moved deeper as the 8th Intergovernmental Conference in Brussels confirmed Albania met interim benchmarks in Cluster 1 (“Fundamentals”) and set closing benchmarks for areas like an independent judiciary and anti-corruption, with Prime Minister Edi Rama stressing Albania never sought a veto. Startup & Innovation: Albania climbed to 75th globally in the 2026 StartupBlink ecosystem ranking, up eight spots, with government pointing to reforms and Startup Albania; INSTAT also reports 44% of medium and large firms ran innovation activities in 2022–2024. Tax Transparency: Albania improved in the Global Tax Expenditures Transparency Index, rising to 48th from 74th as reporting of tax breaks and exemptions gets closer to European standards. Living Standards Pressure: Revised INSTAT data show over 10% of Albanians struggle to cover basic living costs, with about 245,015 people in extreme poverty, alongside persistent bill-payment delays. Tourism Demand: Foreign arrivals rose again in April, reaching 891,000 (+9% year-on-year), with 2.5m visitors in the first four months. Regional Trade Agenda: Albania’s CEFTA chairmanship in 2026 will push faster border crossings and paperless trade, including digital systems and recognition of e-signatures. Coastal Environment Row: Residents in Qerret’s Blue Lagoon accuse local authorities of unannounced works cutting pine trees and building a new access road without consultation.