The IMF mission in Tirana has openly spoken out against the fiscal peace proposed by the Albanian government, part of the fiscal package that is expected to be approved by Parliament. The head of the mission, Anke Weber, during the presentation of the annual conclusions on the economy, warned that the current draft risks undermining the progress made in revenue administration.
"We have seen the latest draft of the proposed fiscal peace package. We fear that some of its elements could undermine the progress of recent years and create risks to fiscal compliance and fairness," said Weber, in the presence of Finance Minister Petrit Malaj and Bank of Albania Governor Gent Sejko.
The draft law on the “Fiscal Peace Agreement” provides for the correction of financial statements and the automatic cancellation of liabilities incurred until December 31, 2014 (with the exception of social security and health insurance). Debts for the period 2020–2024 will benefit from forgiveness of fines and interest if paid within 2026. In total, about 2.1 billion euros in tax and customs debts are included in this scheme.
Despite reservations about fiscal peace, the IMF praised the stable performance of the Albanian economy. Weber said Albania remains “one of the fastest-growing economies in Europe,” with growth forecast at 3.5% for 2025 and 3.6% for 2026, supported by domestic demand and tourism. She warned of fiscal pressures from rising social and defense spending, as well as new risks in the financial sector.
The Minister of Finance, Petrit Malaj, emphasized that the Albanian economy has maintained its positive trajectory, with growth of 3.6% in the first half of 2025. Meanwhile, Governor Gent Sejko highlighted the stability of inflation and the increase in services exports, which have offset declines in other sectors.
(Source: TCh)
