Minister of State for Local Government, Ervin Demo, said today that municipalities are being evaluated for their social plans through the Performance Grant.

He spoke during the event “Social Fund 2026 – Guarantee for the Sustainability of Citizen Welfare Services.” Prime Minister Edi Rama attended, along with Health and Social Welfare Minister Evis Sala, EU Ambassador Silvio Gonzato, and UNICEF representative Murat Sahin.

Demo stated, “The municipality is the point where the state meets citizens every day.”

He explained that with support through the Social Fund, the first successes appeared. He added that sustainability was the main result. For decades, municipalities in Albania relied on donor support to build local capacity. However, financial challenges and lack of capacity often prevented long-term sustainability.

Demo emphasized: A key element of the Social Fund is guaranteeing the sustainability of all local services. With stronger financial capacity, municipalities can continue prioritizing social services. Social plans have been a main factor in evaluating municipalities through the Performance Grant. In 2026, the quality of social services in municipalities will be assessed based on their responsiveness to citizens’ needs.

He noted that municipalities face many challenges. Yet, the Social Fund, together with government support, addresses them. The 17% increase in the Social Fund for 2026 shows clear local needs. It also shows the government’s commitment. Demo concluded that the presence of municipal leaders reflects their motivation to make social services a financial priority in local budgets.

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