Territorial reform requires reorganization of local government, report highlights problems in 61 municipalities

A new territorial reform should include sweeping changes to the administrative, financial and electoral organization of local government. This is the assessment of the Institute of Albanian Municipalities in its report “Local Government in Albania 2025,” which states that the current model of local governance remains relatively centralized.

Albania has 61 municipalities, with around 39,000 residents per local government unit. This figure is higher than the average of around 34,000 residents in Western Balkan countries and approximately 22,455 residents per municipality in the European Union.

The report lists the internal organization of municipalities among the issues that the upcoming reform should address. Although the former communes no longer have the status of local government units, 312 administrative units that retain their former boundaries continue to operate on the ground.

According to the Institute, municipalities have been consolidated politically and financially, but territorial administration remains fragmented. Under these circumstances, it recommends functionally restructuring administrative units, accompanied by the digitalization of services and the strengthening of local democracy. The aim is to ensure that the consolidation of municipalities does not create distance between citizens and services or decision-making processes, particularly in rural areas.

The report also proposes an asymmetric decentralization model. The Institute of Albanian Municipalities assesses that applying the same model of powers to all municipalities is not efficient, as they differ greatly in population, financial capacity and economic potential. Tirana, Durrës and Fier, for example, have significantly greater opportunities compared with small rural municipalities or those facing demographic decline.

Another point highlighted in the report concerns funding for local government responsibilities. According to the document, the functions transferred to municipalities following the 2015 reform have not always been accompanied by sufficient financial, human and technical resources. For this reason, these responsibilities should be considered full municipal functions, while the corresponding funds should be included in local budgets.