This is the Progress Report for Albania by the European Commission. The report briefly describes the relations between Albania and the Union; analyses the situation in Albania in terms of the political criteria for membership; analysis the situation in Albania on the basis of the economic criteria for membership; reviews Albania's capacity to gradually approximate its legislation and policies with those of the acquis, in line with the Stabilisation and Association Agreement and the European Partnership priorities. The period covered by this report is October 1, 2005 to September 30, 2006. Progress is measured on the basis of decisions taken, legislation adopted and the measures implemented. The report is based on information gathered and analysed by the Commission.