Albania proposes reducing number of municipalities to 46

Albania is preparing a second territorial reform within a decade, with a new draft law proposing to reduce the number of municipalities from 61 to 46 by merging 15 smaller units with larger neighbors.

Critics argue that administrative restructuring alone does not guarantee improved public services. Lessons from the 2014 reform suggest that while the merger of 373 local units into 61 municipalities aimed for economies of scale and professional administration, it did not yield proportional improvements in service quality. According to the World Bank, essential services such as water supply, sewage, waste management, education, and disaster response worsened in high-need areas, particularly in rural territories.

The reform has also faced challenges regarding administrative efficiency. Since 2014, local government personnel has increased from approximately 19,000 to over 39,000 by 2025. In many small municipalities, salaries now consume over 60% of the budget, leaving limited funds for actual investment.