"Pensions, promote the second and third pillars" - Minxhozi: The Bank of Albania recommends reviewing the scheme's parameters
In conditions where the deficit of the social and health insurance scheme continues to be a considerable burden on the state budget, the Bank of Albania suggests reviewing the parameters of the scheme and promoting the second and third pension pillars where a portion of the contributions are managed by private pension funds, increasing the income potential in old age.
The fiscal challenges of the current scheme remain high, taking into account the phenomenon of population aging and demographic contraction, said the Second Deputy Governor of the Bank of Albania, Luljeta Minxhozi, at the Parliamentary Committee on Economy, Employment and Finance.
"These indicators are expected to exert increased pressure on public finances in the future, making it necessary to undertake additional reforms that would guarantee the reduction of the fiscal vulnerabilities associated with them. The Bank of Albania recommends reviewing the parameters of the pension scheme, with the aim of controlling its direct support from the state budget; developing and promoting the second and third pension pillars, through fiscal and regulatory incentive mechanisms; integrating the analysis of demographic and fiscal risks into the medium-term framework of budget programming, in line with EU best practices", said the Deputy Governor.
The Bank of Albania suggests that fiscal consolidation should be implemented on the revenue side to finance pensions and public investments, rather than cutting public spending.
"The Bank of Albania suggests that fiscal consolidation should be based increasingly on the revenue side. This suggestion factors in the fact that pressures to expand public spending, in the pension scheme, in the healthcare scheme, as well as to finance public investments and those in education, will increase in the future. From this perspective, increasing public revenues is a more optimal solution than a fiscal consolidation based on cutting expenses," she said.
Also, the Bank of Albania continues to reiterate the suggestion for a more even distribution of expenditures during the year, in the interest of avoiding their chronic concentration at the end of the year.
What does the draft budget foresee for floods? - 2.7 billion lek for river and embankment protection projects
Investments in flood protection infrastructure are projected to reach 2.7 billion lek by 2028, but which projects will receive interventions? So far, around......
Salary increase for OSHEE employees - Rama: 3-category increase. Balluku: “OSHEE Charge”, competitive prices for electric cars
Increase in salaries for employees of the Electricity Distribution Operator. The news was announced by Prime Minister Edi Rama, during the event where the......
Biggest polluters "avoid" COP30 - Leaders of the US, China and India will not be part of the summit
As European leaders gather at the COP30 summit to discuss reducing the impact of climate change, the world's biggest polluters will not be present at the......
Tariff "wave" arrives in 2026 - European businesses prepare for greater consequences from US tariffs
European businesses will suffer much greater consequences in 2026 from US tariffs compared to this year, when several precautionary measures reduced the......
Purchase of electric trains for Tirana-Durrës - 350 million lek allocated in the 2026 budget, total cost 1 billion lek
The purchase of trains for the operation of the Tirana - Durrës - Rinas railway seems to be covered by budgetary funds, as 350 million lek has been allocated......
Drafting of the Fiscal Package is completed - It will soon be presented to the Parliamentary Committee for discussion
The full drafting of the Fiscal Package has been completed, and is expected to be presented soon for discussion in the Parliamentary Committee on Economy,......
"Pension reform, the pillar of the 2026 budget" - Malaj: Their gradual increase. Financial effect, 10.4 billion lekë
"Pension reform is the pillar of the 2026 budget." This was stated by Minister of Finance Petrit Malaj, during the presentation of this document to the......
US, towards reopening the government - Parties reach compromise on new legislation
The United States Senate took the first step toward ending the longest government shutdown in history, after a group of moderate Democrats agreed to continue......
