Government lost 5 July election to Internal Revolutionary Organisation (VMRO-DPMNE). VMRO-DPMNE won 44 of 120 parliamentary seats; leader Nikola Gruevski will head coalition government; includes Democratic Party of Albanians (DPA). VMRO-DPMNE conducted talks with DPA-rival Albanian Democratic Union for Integration (DUI) over possible addition to coalition. Electoral commission ordered rerun at 29 polling stations 19 July after complaints of irregularities; VMRO-DPMNE won additional seat. Re-vote annulled at 1 station after armed men vandalised ballot boxes. NATO, EU and U.S. expressed satisfaction with overall electoral process, but concerned about DUI threats of violent protest if not admitted to coalition.

Campaign for 5 July general election marred by violence. Series of incidents between 2 main Albanian parties, Democratic Union for Integration (DUI) and Democratic Party of Albanians, included several shootings, a bulldozer attack on DUI’s Saraj office 15 June and grenade attack on DUI’s Struga office 17 June. U.S. Ambassador Milovanovic and EU Special Representative Fouéré held meeting with party leaders 20 June resulting in joint statement denouncing violence. NATO Secretary General de Hoop Scheffer had earlier warned election must be “110% free and fair” or could jeopardise Euro- Atlantic integration.

President Crvenkovski and major party leaders signed Declaration on Fair and Democratic Elections ahead of 5 July polls. Parliament approved defence reforms creating professional army, condition of NATO membership. Pristina- Skopje tension over border demarcation eased after sides agreed “technical” not political issue.

Parliamentary elections set for 5 July. Parliament approved members of State Election Commission (SEC) 20 April, despite concerns over strong party links of nominees; EU warned SEC must satisfy EU standards of independence. Defence minister announced end to conscription in plans to professionalise army with view to NATO membership. Macedonia continued to insist demarcation of frontier with Kosovo in accordance with 2001 agreement with Belgrade be condition of Kosovo final status, as Kosovo PM Ceku made provocative visit to disputed area.

Opposition withdrew threat to boycott forthcoming elections after government agreed to include party members alongside public officials on election boards. EU and NATO emphasised polls must be fair and democratic, warning integration processes could be jeopardised. Police criticised for killing suspected criminal during arrest in Albanian-suburb Kondovo, former militant stronghold.

EU suggested Macedonia not ready for full membership negotiations, warning process may take years.

EU granted Macedonia candidate status at Brussels Summit but no accession talks start date given.

EU Commission recommended candidate status for Macedonia 9 November. Negotiations start date announcement expected at 15-16 December EU Summit. EU established EU Policy Advisory Team (EUPAT) to replace police mission Proxima on 15 December.

UN  Special  Envoy  Nimetz  presented  new proposal on dispute with Greece over Macedonia’s name: PM Buckovski said good basis for solution; Greece rejected proposal and threatened issue could harm Macedonian entry to EU. Buckovski met NATO and EU officials to discuss accession. 2 police injured by grenade in Albanian neighbourhood of Skopje 10 October.

Government of PM Buckovski survived no confidence vote in parliament 23 September. Western Balkan countries signed declaration for regional strategy to fight organised and economic crime, including cooperation of police forces and intelligence.