Italian direct investments in Albania: between enlargement diplomacy and EU convergence

The paper by Julian Hodaj and Filippo Marinoni examines the role of Italian foreign direct investments (FDI) in Albania within the broader framework of EU enlargement dynamics. As Albania’s main trading partner and a leading investor, Italy plays a pivotal role in supporting the country’s path toward EU accession.

The analysis highlights how Italian investments contribute not only to Albania’s economic development but also to its regulatory and institutional convergence with EU standards. At the same time, it explores how Albania’s potential EU membership could reshape investment patterns, offering greater legal certainty and access to the single market while gradually reducing cost advantages.

The paper argues that a merit-based enlargement process would generate mutual benefits: if Albania would strengthen its economic and institutional framework, then Italy would consolidate its geopolitical role within the EU and investors would operate in a more predictable and integrated environment.

Policy recommendations focus on sustaining Italy’s support for Albania’s accession, advancing structural reforms and directing investments toward strategic sectors such as energy, infrastructure, agri-food and sustainable tourism.