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RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHTI #1084/01 3621619
ZNR UUUUU ZZH
R 281619Z DEC 07 ZDK
FM AMEMBASSY TIRANA
TO RUEHC/SECSTATE WASHDC 6503
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 TIRANA 001084 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/SCE 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PREL AL
SUBJECT: THIS WEEK IN ALBANIA, DECEMBER 21-28, 2007 
 
¶1.  (U) The following is a weekly report prepared by Embassy 
Tirana's local staff to provide political and economic context and 
insight into developments in Albania.  These updates will supplement 
post's DAR reports and reporting cables. 
 
----------------------------------- 
POLITICAL AND ECONOMIC DEVELOPMENTS 
----------------------------------- 
 
¶2.  (U) FM Basha Says "I Am A Sacrificial Lamb": Following a long 
debate, the Albanian Parliament voted overwhelmingly in favor 
yesterday of removing parliamentary immunity from MP and Foreign 
Minister Lulzim Basha.  Majority and opposition forces voted 
together in favor of allowing an investigation to go forward on 
Basha's handling of a major infrastructure project, the Durres-Kukes 
road, during his term as Minister of Transport.  The road will link 
Kosovo directly to the Albanian beach resorts (and its main port), 
cutting Kosovar tourists' driving time in half with a very 
significant upgrade to the touristic experience. (Approximately 80% 
of foreign tourists to Albania are Kosovar.) 
 
¶3.  (U) While the opposition hopes that Basha will subsequently be 
sacked on corruption charges, the majority is ready to allow 
Parliamentary review of the complete Durres-Kukes road file and 
possible prosecution of Basha by the recently-appointed Prosecutor 
General (PG).  The case could serve as the first major test for the 
new PG. 
 
¶4.  (U) FM Basha addressed his MP colleagues preemptively December 
27 on the importance of the Durres-Kukes road to the national 
interest, depicting himself as the sacrificial lamb for this first 
major national infrastructure project.  He concluded by saying: 
"All those that believe in good and the truth should support this 
(road project) as I do, without any reservations." 
 
--------------------------------------------- ------ 
 
Self-sacrifice enables us to sacrifice other people without 
blushing. -- George Bernard Shaw 
 
--------------------------------------------- ------ 
 
¶5. (U) Unexpected Consequences: While fans in the U.S. have been 
saddened recently by baseball doping scandals, Albanian soccer fans 
have other problems on their minds.  With Kosovo status 
determination expected to be close on the horizon, Albanian football 
fans are concerned for "the day after."  Players hailing from Kosovo 
comprise about half of Albania's National Team, and Kosovo's 
possible proclamation of independence has some fans worrying about 
their team's future.  Official circles have so far avoided the issue 
- current players are all citizens of the Republic of Albania - but 
privately some note that a new state could affect the makeup of the 
team. 
 
¶6. (U) Albania's National Football Team generates strong loyalty 
from ethnic Albanians across the region. Dressed in national red and 
black, waving the Albanian double-eagle flag, thousands descend from 
neighboring countries to support the team, which represents the 
closest that Albanians expect to come to "Greater Albania."  Asked 
about a possible division of the national team, Kosovar Albanian 
player Lorik Cana, one of its best, answered "it would be a great 
loss, but when the time comes we will decide all this together." 
 
¶7. (U) Privatization of Oil Refining:  This week, the Ministry of 
Economy approved a report by consulting firm Patton Boggs for the 
process of privatization of ARMO, a government-owned oil refining 
company.  The government plans to sell 76% of ARMO's shares in an 
open tender, with the remainder distributed as compensation to 
former owners of the land where the company sits and to ARMO 
employees.  ARMO holds 25% of the domestic market, and despite a 
failed privatization attempt in 2005, has increased revenues since 
that time due to the global surge in oil prices.  The government 
expects to collect at least USD $100 million from the transaction, 
and to complete the privatization within the first half of 2008. 
 
¶8. (U) Despite recent setbacks, the government is committed to 
concluding remaining large-scale privatization projects.  Albania's 
private sector already accounts for 80% of GDP, and employs more 
than 80% of all workers.  Many sectors are entirely privatized, such 
as banking and telecommunications, while others, including energy, 
are expected to be completely transformed next year through 
privatization.  However, there is consensus on the urgent need for 
an improved regulatory framework to increase efficiency and hold 
back anti-competitive behaviours. 
 
----------------------------- 
THIS WEEK IN ARTS AND CULTURE 
----------------------------- 
 
¶9. (U) Christmas In Tirana:  Although Christmas celebrations may not 
be as pervasive in Albania as throughout much of Europe, a very 
 
TIRANA 00001084  002 OF 002 
 
 
large and well-decorated tree, erected a few days before Christmas, 
holds court in Tirana's Skenderbeg Square.  The tree represents not 
only the Christian tradition, but also the communist-era "New Year's 
Tree" which marks the celebration of Albania's most important family 
holiday.  Today, the tree is viewed as a decorative nod to both or 
either, depending on perspective.  Next Week:  A Traditional 
Albanian New Year's Celebration. 
CRISTINA