EU Presidency noted, 14 September, insufficient progress on organised crime and corruption, lack of electoral and general reform.

Former premier Ilir Meta declared his Socialist Movement for Integration (SMI) to become third parliamentary force 6 September, and will not cooperate with ruling Socialist Party in 2005 parliamentary elections.

Dispute over land on which a United Arab Emirates- funded airport is to be built continued in impoverished north.

Political instability intensified. Opponents within ruling Socialist Party of PM Fatos Nano, led by former PM Ilir Meta, launched Socialist Movement for Integration campaign 14 June, and reportedly threatened to form new party. Opposition Democratic Party also facing challenge to support-base from new monarchist Movement for National Development party. Political manoeuvring - likely to intensify up to May/June 2005 elections - continued to undermine any progress toward EU’s Stabilisation and Association Process.

PM Fatos Nano met Greek counterpart, who expressed support for Albanian efforts towards Euro-Atlantic structures. Albania hopes Stabilization and Association Agreement with EU will be signed in early 2005; clear timetable for NATO membership to be set up at June Istanbul summit.

President of Albania paid first ever official visit by Albanian head of state to Kosovo, meeting with UN Special Representative for Kosovo, Harri Holkeri, 22 April.

Opposition leader Sali Berisha promised new protests after February demonstrations. Controversy grew over attempted registration of Islamic party; religiously and ethnically based parties are illegal.

Opposition parties held protest rallies 7 and 21 February against PM Fato Nano. Democratic Party leader, former president Sali Berisha called for Nano’s resignation and accused him of corruption and poor economic policies. Attempt by Berisha to compare situation with Georgia failed after first demonstration turned violent.