BTI report: Albania ranks best in the region for political transformation, third for economy
“Democracy continues to lose ground” – this is the central finding of the Bertelsmann Stiftung’s 2026 Transformation Index. According to the Index, 56% of the 137 countries assessed are governed autocratically. The Western Balkan countries are classified as either “flawed” or “very flawed” democracies. The BTI analyzes and ranks countries according to their progress towards constitutional democracy and a socially responsible market economy. It measures the quality of democracy (“political transformation”), economic development (“economic transformation”) and governance (“governance index”), identifying both successes and obstacles in these areas. Scores range from 1 to 10 for each criterion.
Albania ranks best in the region for political transformation
According to the BTI 2026, Albania ranks best in the region, having received 7.70 points for political transformation (so-called “flawed democracy”), 7.11 points for economic transformation (“advanced”), and 6.71 points for governance (“good”).
The report states that during the review period, Albania accelerated its EU membership efforts by opening negotiations for Group 1 (Fundamentals) and Group 6 (External Relations).
However, it notes that "since the beginning of 2025, worrying signs have emerged regarding the future of the reform."
“These include inconsistent judicial decisions, stalemates in important cases mentioned in previous reports, lack of accountability for members of the judiciary who were found to possess unjustified assets, and leaks of sensitive investigative data to selected political and media organizations,” the document notes.
North Macedonia received 7.65 points for political transformation (“flawed democracy”), 7.18 points for economic transformation (“advanced”), and 6.07 points for governance (“good”).
"Governance was shaped by stalled EU accession talks, which remained blocked by the unresolved dispute with Bulgaria. Corruption allegations against former ruling elites continued to undermine institutional trust," the report notes.
Montenegro received 7.40 points for political transformation (“flawed democracy”), 7.50 points for economic transformation (“advanced”) and 5.90 points for governance (“good”).
According to BTI 2026, governance in Montenegro has improved through delayed judicial appointments and anti-corruption reforms, enabling progress in EU accession talks; however, legislative procedures often sidelined civil society, while tensions with Croatia temporarily hampered regional cooperation and EU negotiations.
According to the BTI, Kosovo was rated 6.90 points for political transformation (“flawed democracy”), 6.21 for economic transformation (“limited”), and 4.81 for governance (“moderate”).
“Governance has been increasingly shaped by security tensions and strained international relations. The unresolved dialogue with Serbia, boycotts by Kosovo Serbs, and violent incidents in the north have weakened social integration and diverted policy attention. Kosovo’s aggressive approach to the north has damaged relations with the EU and the United States, delayed international integration, and reinforced contested statehood,” the report says.
Bosnia and Herzegovina received 5.95 points for political transformation (“democracy with major flaws”), 6.57 points for economic transformation (“limited”) and 4.03 points for governance (“weak”).
“Governance remains constrained by entrenched patronage networks across all major parties, weakening institutional effectiveness and limiting reform implementation. However, improved legislative output, partial fulfilment of key EU priorities and intensified international engagement contributed to the opening of EU accession talks in March 2024,” the report notes.
Lastly, Serbia ranked worst in the Western Balkans, receiving 5.18 points for political transformation (“moderate autocracy”), 6.79 for economic transformation (“limited”), and 3.96 for governance (“weak”).
The report highlights that in Serbia, the rule of law and media freedom have further declined, while political polarization has intensified.
“President Aleksandar Vučić and the Serbian Progressive Party dominate the political system, effectively controlling the government, parliament, and judiciary despite the president’s largely ceremonial constitutional role. The regime’s manipulation of elections has intensified, leading to opposition boycotts. Parliamentary oversight is weak as it largely passes legislation in accordance with the president’s will, while the opposition remains fragmented and under constant pressure,” the report notes.
The BTI 2026 report adds that in Serbia civil society and independent media face systematic harassment, including smear campaigns, strategic lawsuits and surveillance, while mass protests in 2024–2025 were delegitimized as foreign-backed destabilization efforts.
According to the BTI, “governance remains highly centralized and personalized. Policymaking serves political consolidation, while international cooperation stagnates, with EU membership blocked and economic ties with China gaining importance.”
"There is no political will to prosecute corruption, as a culture of impunity prevails in government and public administration," the report states.
US and Kosovo discuss expanding opportunities in energy and mining
Chargé d'Affaires at the US Embassy in Pristina, Anu Prattipati, spoke with Kosovo's Minister of Economy, Artane Rizvanolli, about expanding opportunities......
"Europe begins here", Ministers Hoxha and Pirdeni hold dialogue with students on the European integration process
Minister for Europe and Foreign Affairs, Ferit Hoxha, together with the Minister of State for Public Administration and Anti-Corruption, Adea Prideni,......
"Albania, energy sovereignty until 2030" - Karakaçi: We are working with internationals to create an energy financing and efficiency fund
By 2030, Albania aims to no longer depend on energy imports and thus create energy sovereignty. This was stated by the Minister of Infrastructure and Energy,......
"Albania, a very good tourist offer" - Gonxha: The war in the Middle East is increasing visitors
The war in the Middle East could boost tourism in Albania, said Minister of Tourism, Culture and Sports Blendi Gonxhja at a press conference. In his speech,......
Interest in government bonds fades - Citizens' investments in the primary market dropped to 23.8 billion lek during 2025
Fewer and fewer citizens are showing interest in investing in treasury bills and bonds. According to the Financial Supervisory Authority (AMF), in 2025, a......
Board decision, how much is oil being sold on the market? - Ceiling 203 lek per liter, measures for operators who do not respect it
The retail oil and gasoline market in the country is operating within the price ceiling limits set by the Transparency Board. From an observation made on......
"Tender winners, highest bids" - KPP overturns decisions, saving over 672 million lek from the budget
During 2025, public institutions continued to award tenders to economic operators with higher bids, risking increased costs for the state budget. However,......
The number of foreign companies in Albania is increasing / They are led by those from EU countries, with a focus on services and trade
According to data published by INSTAT, the number of foreign enterprises operating in Albania has marked a slight increase, reflecting the continued presence......
