By Christian Oliver in Brussels and Kerin Hope in Athens /Financial Times 

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The EU is poised to accept Albania as a candidate for membership, in a move that is likely to antagonise anti-EU populist parties that made big gains in recent elections.

Moves to incorporate the poor, mainly Muslim state are highly divisive, particularly because of fears about migration and organised crime. Germany, the Netherlands, Britain and France opposed Albania’s candidacy last year, while countries such as Italy and Greece have argued that deeper EU integration of Balkan states will help reduce social and political conflict in the region.

Stefan Fuele, the EU’s enlargement commissioner, on Wednesday will deliver a report in Tirana stating that Albania has made sufficient progress in areas such as corruption, organised crime and judicial reform to become a candidate to join the union. Diplomats said that the 28 member states would then be likely to approve the candidacy at a meeting at the end of this month. Albania is already a Nato member.

The commission had originally proposed Albania’s candidacy in October but the suggestion was rejected by the member states, which had asked for more progress on the rule of law.

The decision on awarding candidacy to Albania – once the secretive dictatorship of Enver Hoxha – is a test for the EU when both populist and mainstream parties are sceptical about the EU’s ability to take on more members in the aftermath of the eurozone crisis. While Britain’s eurosceptic Ukip party has described Albania’s candidacy as “utter madness”, David Cameron, the UK prime minister, has also used it as political leverage. In December, Mr Cameron threatened to veto EU enlargement unless new rules were agreed to stop “vast migrations”.

Addressing the threat posed by growing populist sentiment in Europe, Edi Rama, Albania’s prime minister, warned that it would be “dangerous” for the EU to turn its back on the Balkans, as all progress towards peace and prosperity there had come about because of an aspiration to join the EU.

“The Balkans can easily become what they were if Europe does not [accept] the Balkans,” he said in a speech last week at The Hague Institute for Global Justice. “None of us in the Balkans has become an angel. We are far from being angels but everyone has made a clear choice – to make peace for the sake of the European perspective. EU membership has been a crucial incentive.”

EU officials say that Britain, Germany and the Netherlands have now softened their opposition to Albania’s candidacy. Although this now makes candidacy likely to be accepted, they caution that Albania’s path to membership is still likely to be long and difficult, with no new EU members expected until after 2021.

Legal reform is critical and the negotiation process will have to broach daunting issues such as the blood feuds in the country’s north that prevent many people from leaving their homes.

A western official in Tirana said the socialist-led coalition government under Mr Rama had made “some progress” in tackling corruption and reforming the public administration but that much has still to be done. “Legislation already in place, like the anti-mafia law, needs to be implemented effectively, and the problem of corruption in the judiciary needs to be addressed, “ the official said.

Albania’s adoption as an official candidate for EU membership would mark an “important stage” on the region’s road to European integration, said Remzi Lani, a political commentator and director of the Albanian Media Institute.

“Albania has a long way to go but progress should be recognised . . . and this is a significant moment. Albania and Montenegro were the only two countries in the west Balkans that joined the EU sanctions against Russia,” Mr Lani said.