In 1991, the Socialist Party of Albania, with specific social democratic ideology took control of the country through democratic elections. One year later the Democratic Party of Albania won the new elections. After 1990, Albania has been seeking a closer relationship with the West. What followed were deliberate programs of economic and democratic reform, but the implementation of capitalism led to the proliferation of pyramid schemes. Chaos in late 1996 to early 1997, as a result of the collapse of these pyramid schemes, alarmed the world and prompted the influx of international peacekeeping forces. In 1995, Albania was accepted into the Council of Europe and requested membership in NATO (obtained in 2009) and is a potential candidate country for accession to the European Union. The workforce of Albania has continued to emigrate to Western countries, especially Greece and Italy.
Early 1990s After the collapse of communism in Albania and the loosening of emigration restrictions, most of Albania's Jewish community emigrated in the early 1990s to Israel.Sergei Shargorodsky (11 April 1991). "SECRET EMIGRATION OF ALBANIAN JEWS TO ISRAEL REVEALED The Washington Post.
1994 Albania's postcommunist transformation continues, with more progress in some areas than others. Greek-Albanian relations deteriorate, and Athens blocks European Union loans to Tirana, impeding Albania's much-needed integration into Europe. Gross domestic product grows by 8%, and inflation continues its downward spiral. Unemployment, remains the country's vulnerability; more than 300,000 workers are unemployed. Some $400 million sent home by Albanian emigrants play a vital role in boosting the domestic economy by increasing the volume of disposable income. For most, economic hardship and widespread poverty are the norm. Albania's foreign debt continues to soar. The political climate is relatively stable, but hostility between ruling and opposition forces continues to surface. The Socialist Party and other political groups accuse President Sali Berisha of becoming increasingly authoritarian. Albania makes considerable progress in foreign affairs, although relations with some of its neighbours continue to be fraught with problems. The impasse in relations between Belgrade and Tirana persists, but ties with Bulgaria, Turkey, the Republic of Macedonia, and Italy further improve. Relations with Greece raise worries about a new Balkan flash point.
April 1994 Following a raid on an army training camp in which two Albanian conscripts were killed, Tirana arrests five ethnic Greeks, finds them guilty of espionage and illegal possession of weapons, and sentences them to between six and eight years in prison. Angered by the verdict, (the court was being held behind closed doors, no international observers were allowed) Athens reportedly expels as many as 70,000 of the 300,000 illegal Albanian immigrants living in Greece.
April 1994 Fatos Nano is convicted of embezzling state funds during his premiership in 1991 and sentenced to 12 years' imprisonment; the ruling is upheld by an appeals court in the following month.
July 1994 Ramiz Alia is tried on a number of charges, including forced deportation of political prisoners, summary executions, and the upholding of the 1967 ban on religious activity. The charges are later changed to abuse of power and violation of citizens' rights. Alia pleads "not guilty" and protests that the allegations made against him are unclear; he is convicted, however, and sentenced to 9 years' imprisonment.
October 4, 1994 A draft constitution is presented to Berisha. Failing to obtain the requisite two-thirds majority approval for it in the People's Assembly, Berisha calls for a national referendum, the first of its kind. The November 6 vote goes against Berisha (53.9% of voters reject the draft constitution), perpetuating the deadlock with the Socialists.
November 1994 Alia's prison sentence is reduced to five years.
1995 Berisha still faces formidable political, economic, and social problems. The leading opposition Socialist Party threatens the Democratic Party's hold on power, while the latter cites notable successes in economic and foreign affairs and predicts victory in the parliamentary elections scheduled for March 1996. Among the 49 new legislative decisions approved by the People's Assembly in 1995 are land and property laws that positively affect the flow of domestic and foreign investments, especially in the field of agriculture. The process of privatization continues, with some 1,400 small-sized enterprises privatized. Albania's $700 million foreign debt is substantially reduced. Gross domestic product grows by an estimated 6%, and inflation drops to about 10%. The agricultural, construction, and private-service sectors register high rates of growth - 15%, 90%, and 25%, respectively. The industrial sector remains the weakest economic link, with continued production losses. Exports also lag. Continued progress is made in foreign affairs, with the exception of an impasse between Tirana and Belgrade. A slight improvement in Greek-Albanian relations is evidenced. U.S.-Albanian military cooperation develops quickly. Joint projects in 1995 include U.S. intelligence-gathering flights to Bosnia and Herzegovina from bases in Albania, exchanges of high-level military delegations, medical and military exercises, and the construction of Albania's only military hospital.
March 1995 The chairman of the Democratic Party, Eduard Selami, is dismissed at an extraordinary party congress for opposing Berisha's efforts to organize a further referendum for the draft constitution. Selami is replaced by Tritan Shehu.
April 1995 Squatters at Bathore fight off eviction, briefly taking Shehu hostage.
May 1995 Italy deploys troops along its coast to stem the continued influx of Albanian illegal immigrants. June 1995 Ilir Hoxha, son of Enver Hoxha, is convicted of inciting national hatred for denouncing leaders of the Democratic Party in a newspaper interview. July 1995 Albania is admitted to the Council of Europe. July 7, 1995 The Supreme Court orders the immediate release of Alia, owing to the provisions of a new penal code, which took effect at the beginning of June. Also in July the case against Vilson Ahmeti is abandoned, owing to a lack of evidence. September 1, 1995 As a result of an agreement between Albania and 41 Western banks, the country's debt owed to those institutions drops from $500 million to $100 million. September 1995 A first-ever meeting between U.S. and Albanian heads of state occurs. See also: Albania–United States relations November 27, 1995 Nano's prison sentence is reduced to 4 years. On December 30 Berisha reduces his sentence by a further 8 months. December 15–16, 1995 14 prominent communist politicians are arrested, including former defense minister Prokop Murra and former president Haxhi Lleshi.
1996
Gross domestic product grows by an estimated 8%, while inflation rises by about 4-5%, mainly owing to the introduction of a value-added tax. Unemployment drops to a total of 170,000, or about 13%. The agricultural and especially the construction and private-service sectors continue to register robust two-digit growth. Remittances from Albanian émigrés in Greece, Italy, Germany, and the U.S. still account for an estimated 20% of GDP. The nation's relationship with Greece is improved when a high-ranking Greek official visits Albania, and a number of important cooperation agreements are signed. The impasse between Tirana and Belgrade continues, although ethnic Albanians from Kosovo are allowed to travel to Albania. Tirana dispatches a 33-man peacekeeping force to the German contingent of IFOR (the NATO-led Implementation Force) in Bosnia and Herzegovina, the first time in the country's history that Albanian troops have been stationed abroad.
Early 1996 Albania receives an aid package from the U.S. worth $100 million. February 2, 1996 Alia is rearrested and charged with crimes against humanity. March 6, 1996 The former chief of the Sigurimi is arrested following bomb attacks in Tirana on February 26 and in Durrës on March 6. May 26, 1996 The third postcommunist parliamentary elections plunge Albania into its deepest political crisis since the demise of communist rule. Hours before the polls close, all major opposition parties pull out their candidates, accusing the ruling Democratic Party of engineering widespread election irregularities. Riot police violently break up a protest rally. On June 2 a second round is held, again boycotted by most of the opposition. The chairman of the Central Electoral Commission puts turnout at 59% compared to 89% in the first round. Final results give the ruling Democratic Party 122 seats in the 140-seat parliament (87% of the vote). The Socialists refuse to recognize the results and do not take their nine seats.
July 11, 1996 Berisha forms a new enlarged (25-member) cabinet. Among the new ministers are Tritan Shehu as foreign minister and deputy premier, Ridvan Bode as finance minister, and Halit Shamata as interior minister. The government includes four female members, the widest female representation in the history of the country. November 5, 1996 The appeals court upholds prison sentences of up to 20 years on nine high-ranking officials of the communist era. They were sentenced on September 28 for putting thousands of dissidents into internal exile. Those charged included party leaders from Tirana, Lushnjë and other towns, as well as secret police and officials of the Interior Ministry. November 6, 1996 Shortly after midnight, in downtown Tirana an explosion takes place in the apartment of Prel Martini, chief judge of the appeals court. The bomb leaves his five-year-old daughter with a broken leg and injures Martini, his seven-year-old son and two women in neighbouring apartments. Prime Minister Aleksandër Meksi says the explosion is a politically motivated terrorist act.
1997 Civil unrest and aftermath
In the 1997 unrest in Albania the general elections of June 1997 brought the Socialists and their allies to power. President Berisha resigned from his post, and Socialists elected Rexhep Meidani as president of Albania. Albanian Socialist Party Chairman Fatos Nano was elected Prime Minister, a post which he held until October 1998, when he resigned as a result of the tense situation created in the country after the assassination of Azem Hajdari, a prominent leader of the Democratic Party. Pandeli Majko was then elected Prime Minister, and he served in this post until November 1999, when he was replaced by Ilir Meta. Albania approved its constitution through a popular referendum which was held in November 1998, but which was boycotted by the opposition. The general local elections of October 2000 marked the loss of control of the Democrats over the local governments and a victory for the Socialists.
January 24–26, 1997 Following the collapse of several "get-rich-quick" pyramid schemes, in which hundreds of thousands of Albanians lost their life savings, enraged investors go on the rampage in the southern town of Lushnjë. Foreign Minister Shehu is attacked by demonstrators there on January 25. On January 26, thousands of people converge on central Tirana and clash with riot police. Government buildings are set ablaze in towns and cities across the country. In February unrest engulfs Vlorë, causing several deaths. March 1 Prime Minister Aleksandër Meksi resigns. March 2