Merkel, who paid an official visit to Albania, made the remarks at a joint news conference with Albanian Prime Minister Edi Rama.
Merkel and Rama talked about different subjects of bilateral relations, and greater opportunities to achieve better results in all areas, mainly in economic terms.
Merkel said Albania has all the opportunities to create more favorable legal terms, which will build the confidence of investors as legislation is the key to security of investors.
She said Germany will support Albania in its efforts to join the EU, and support Albania in reformation of justice system, adding that Albania has the opportunity to draw on the best expertise regarding fight against crime and corruption in particular.
"There are numerous opportunities to cooperate in the sector of tourism, hydro-power and I think politics can commit itself to this direction. The youth's prospect is important as well because it needs new opportunities regarding education and vocational one, in particular. Germany does need qualified labor force and Albania could provide that," she said.
"Economic cooperation is an issue of essential importance. In the light of economic cooperation, we have signed six new economic agreements about electricity supply recovery and living standards' improvement," said Merkel.
As to opening of EU accession negotiations, Merkel said: "We want Albania to be in EU. We are setting the deadlines. The standards should be fulfilled at accelerated rates. An action plan is needed with certain priorities determined by EC. We want to see the Western Balkans countries become part of the EU."
Albanian Prime Minister Edi Rama stressed the importance of German investments in Albania.
Rama underlined that over 10,000 new jobs are expected to be created by the time when Tirana Business Park project completes.
"More important is the fact that German enterprise promotes business in the relations with the state and the law. Albania needs money and real employment, hence the German venture will promote a new culture of work in our country," Rama said.
Rama noted that Albania is rich in water resources, highlighting the potentials that the country offers to foreign investors in this sector.
"Albania is Europe's second richest country after Norway for water resources and for hydropower potential, but like no other country in Europe and the region, for two decades Albania suffers the lack of drinking water supply and irrigation, while facing major deficiencies in power supply," Rama said.
Moreover, he said that German support and entrepreneurship is a contribution to "our way towards building the European Albania."