Parliament set up committee to investigate Chief Prosecutor Sollaku on allegations of organised crime ties.

PM Berisha called on chief state prosecutor to resign, citing failure on corruption cases. U.S. Millennium Challenge fund agreed to donate $13 million to fight corruption.

PM Berisha reconfirmed Albania’s commitment to existing borders after FM Mustafaj’s controversial comments that Albania could not guarantee inviolability of borders if Kosovo becomes independent.

First component of Stabilisation and Association Agreement signed with EU 18 February; EU approval of full agreement expected later in year. EU Commission President Barroso urged Albanian consensus on solving priority issues of judicial reform, organised crime and economy.

World Bank and IMF announced new 3-year deals; former urged Tirana to manage aid better.

Defence Minister Fatmir Mediu said Albania hoped to join NATO in 2008. Bomb damaged Tirana offices of newspaper Shekulli 18 December.

Country paralysed by power cuts in worst energy crisis in 5 years. Greek president cut short visit to Albania after Cham minority group held Tirana protests.

Tirana  Mayor  Edi  Rama  elected  new  leader  of opposition Socialist Party after former PM Nano’s resignation. EU concerned over possible purges of administration after government change. Transparency International indicated Albania most corrupt country in South East Europe.

New PM Sali Berisha sworn in 11 September; appointment welcomed by U.S. and EU. Tenth round of Stabilisation and Association Agreement negotiations with EU started 29 September.

Former President Sali Berisha’s Democratic Party won all 3 constituencies where elections re-run due to irregularities in 3 July parliamentary elections. Coalition led by Berisha to hold 81 seats in 140-seat legislature (Socialist-dominated coalition led by outgoing PM Fatos Nano to hold remaining 59). OSCE said election procedures improved, but still not up to international standards.