2026 Budget: A budget for sovereignty, higher salaries, and Armed Forces modernization

Published: Monday, 26 January 2026 15:25

 

Defence Minister Pirro Vengu stated during a press conference that Albania is entering a new phase of security and defence policy, in which peace can no longer be taken for granted but instead requires concrete investment in real state capabilities.

The Minister also announced an increase in the number of active forces:

“We aim to increase the active component by 30 % more professional forces and higher readiness,” he said.

Addressing modernization, Minister Vengu emphasized that the increased defence budget does not represent spending, but targeted investment:

“50 % of the Defence Budget consists of investments, not expenditures.”

According to the Minister, the Armed Forces are restoring capabilities that have been absent for decades:

“We have fully restored readiness in the Air Force, the Helicopter Fleet, and the Naval Force, and in 2026 we will restore air defence capabilities after decades of absence.” - Minister Vengu underlined.

A key pillar of the new strategy is the development of the domestic defence industry:

“We view the defence industry as an investment in the country’s technological and economic sovereignty.” - the Minister stated.

Regarding the state-owned company KAYO, Minister Vengu explained that production has already begun:

“In 2025, six agreements were signed. This means six joint ventures have been established, public–private partnerships, for the production of light weapons, ammunition, armored vehicles and civil emergency vehicles, uniforms, drones, and counter-drone systems. At the same time, we are in the final stage of an important negotiation with the Italian industrial giant Fincantieri for ship production in Pashaliman.”

He further noted that initial orders have been placed, production lines are being installed, and recruitment has begun:

“Fifty people have already been hired, and we expect a total of 326 employees to be recruited this year. These are new jobs that will generate approximately €3.8 million in direct revenues and €8 million in indirect revenues through taxation and contractual frameworks.” - Minister Vengu explained.

The Defence Minister reiterated that 50% of the budget allocations are investments, directly linked to operational readiness:

“We have restored readiness in the Air Force and full readiness of helicopter assets, both for combat operations and civil emergency needs. In the Naval Force, the fleet has expanded alongside increased readiness. Two vessels were added last year through an Italian donation and subsequently refurbished with significant investment. A new vessel, funded by a €9 million investment from Italian allies, will join the Albanian Naval Force in the second half of this year. The Land Force has also received substantial investments, particularly in combat units, including the acquisition of Javelin anti-tank systems.” - Minister Vengu clarified.

The Minister also emphasized Albania’s growing role within NATO and the European Union: “More than 700 Albanian personnel were engaged in NATO and EU missions during 2025, and this contribution will continue to increase.”

During the press conference, Defence Minister Pirro Vengu was accompanied by the Chief of the General Staff of the Armed Forces, Arben Kingji, the Director of the National Civil Protection Agency, Haki Çako, and the Director of the Defence Industry Agency, Dorian Tola.