Parliament adopted internationally-endorsed plan for constitutional changes; referendum date not yet finalised. Opposition groups rejected amendments as leaving too much power to presidency, but disagreed on whether to boycott referendum. Ardarutiun opposition bloc to continue selective parliamentary boycott. Joint Russian-Armenian military exercises based on invasion scenario ended 13 September.

Opposition rejected draft constitutional amendments proposed by ruling coalition and backed by Council of Europe, U.S. and EU; demanded more limits on presidential power, and elected provincial governors. President Kocharian vowed to mobilise all political and administrative resources to ensure positive referendum outcome on amendments in November.

Discussions continued on constitutional amendments facing parliamentary second reading 29 August; Council of Europe Venice Commission issued statement calling amendments “undoubted improvement”. Sections of opposition remain critical; referendum set for November. Secret negotiations revealed between Armenia and Turkey to improve strained bilateral relations.

Parliamentary Assembly of the Council of Europe (PACE) adopted resolution 23 June expressing concern about course of constitutional reform, noting repeatedly missed deadlines for adoption of amendments designed to curtail presidential powers and demanding Yerevan put to referendum by November 2005.

Parliament approved draft constitutional amendments 11 May aimed at partial rebalancing of government branches. Armenia likely to miss Council of Europe June deadline for referendum on changes. Electoral code altered, increasing proportional element and reducing president’s influence over electoral commission. Government accused human rights ombudsman Larisa Alaverdian of interference in judicial process; Alaverdian said government attempting to restrict her remit.

Demonstration by marginal opposition group held 20 April in Sevan violently disrupted; 1 injured by gunfire. Rare united statement of 25 parties, including ruling coalition, condemned the violence. Meanwhile internal squabbling within ruling coalition continued. Parliamentary session 14 April lacked quorum due to high absenteeism by rival coalition factions and continuing opposition boycott.

Cracks appeared in ruling three-party coalition as Prime Minister Andranik Markarian continued to bicker publicly with parliamentary speaker Artur Baghdasarian. President Robert Kocharian played down dispute and signalled he had no intent of dismissing Markarian and his cabinet.

Opposition factions “Justice” and “National Unity” declared extension to year-long boycott of legislature. Armenia’s ruling coalition sidestepped opposition-proposed compromise on constitutional amendments, calling instead on opposition to take part in constitutional reform in parliament rather than outside it.

Rapprochement of government and opposition parties: latter announced they would support President Robert Kocharian’s proposed changes to constitution if government makes several opposition-supported amendments. Pro- government parliamentarians issued positive statements about proposed compromise.

Former president Ter-Petrosian attempting apparent political comeback: plunged forcefully into Armenian politics since 25 November press conference. In 9 December meeting of his Armenian Pan-National Movement (HHSh), Ter- Petrosian called for Western-oriented foreign policy and argued Armenia had suffered for not taking softer line on Nagorno-Karabakh. Country’s military spending to increase by 23% based on 2005 budget.