
With the fall of the communist regime, diplomatic relations between Albania and the European Union, then called the European Economic Community, were established for the first time in 1991. After the signing of the Trade and Cooperation Agreement, Albania would gain for the first time the right to benefit from the EU's PHARE Program, one of whose main goals was to strengthen the capacities of the public administration. For the period 1991-2000, our country benefited 631.5 million euros from this program.
More specifically, only in 1992, Albania's first direct contacts with European Union funds would be recorded. After that, the EU would distribute to the Balkan Region about 4.6 billion euros from the CARDS Program, Community Assistance for Reconstruction, Development and Stabilization.
Meanwhile, before receiving the status of a candidate country, Albania benefits from IPA pre-accession funds. This is an instrument that supports countries in fulfilling political and economic criteria, as well as in aligning their national legislation with that of the EU. Pre-accession funds are given in 7-year periods, namely in the period 2007-2013, 11.5 billion euros were distributed to candidate countries and potential candidates for membership in the European Union, of which Albania received almost 594 million euros.
From 2014 to 2020, Albania was given 639.5 million euros and currently from 2021 to 2027, we benefit from IPA III about 600 million euros, out of a total fund of 14.162 billion euros. The main objectives of IPA III are the promotion of common values, recovery after Covid-19, reforms for the modernization of society and the economy, alignment with EU rules and standards. In total, we can say that we have benefited approximately €1.8 billion from pre-accession funds alone since 2007.
In addition to the latter, Albania is part of the Economic and Investment Plan of the Western Balkans until 2027. This plan offers 30 billion euros to the countries of the Western Balkans aiming at supporting the economies of these countries, strengthening the competitiveness of the private sector, integration of young people in the labor market, green and digital transition and others. While the Economic Growth Plan of 6 billion euros for the Western Balkans was recently approved.
Membership in the European Union will provide greater financial support for Albania, as a significant part of EU funds goes to the less developed regions of Europe, with the aim of reducing the marked disparities between member countries. However, in addition to this, there is also the obligation to pay a certain contribution based on the Gross Domestic Product of the country.