The rejected 25 million dollars could cost many administration employees their jobs The European Union refuses to pay Albania the balance-of-payments support “The European Union will not pay the 25 million dollars needed to cover the balance of payments for 1996.” News of this kind, which emerged yesterday from the offices of the state’s senior administration, is the clearest evidence that the state is on the brink of bankruptcy. Global economic practice recognizes the bankruptcy of corporations, companies and enterprises, but the Albanian state appears set to establish the first precedent of bankruptcy on this scale: it has no money to pay its own employees. Yesterday’s news has not yet been confirmed by the competent institutions. Nevertheless, it is a signal of a total “green boycott” of the government formed after May 26. It seems that the arteries supplying the Albanian state with money are beginning to be cut off. According to official sources made public shortly after the “Meksi 2” government began operating, the balance of payments for 1996 was to be covered by approximately USD 55,845,000 in external financing and USD 25,000,000 in aid allocated as foreign assistance. But while external financing would continue in 1997, this year’s balance of payments would also be covered by a sum of USD 1,290,000. There was no question of foreign financial assistance. The latest aid, USD 25 million, was planned to be disbursed by the EC and would cover most of the balance of payments for 1996. But it is now being said that the Albanian government will not receive it. Following this refusal, Mr. Meksi’s cabinet will have to take drastic measures to reduce the state administration as much as possible. This means that the army of more than 180,000 state-salaried workers will have to be cut by half, or work without pay, because the state has not the slightest ability to pay its employees’ salaries. The downward spiral of state finances—which turns a deaf ear when it comes to transparency about its budget—can no longer be halted either by the government’s half-measures to revive the economy, or by privatizing and putting privatized enterprises back to work, or by raising taxes and duties. Albania appears to be heading back to the 1991 economy, and the end of the transition does not seem to be in sight. (Continued on page 6)

May 26, DP rally. With us, everyone wins On the eve of the meeting of the 7 parties with the American Republican Institute IRA: How local elections should be conducted 31 observations and recommendations on the election law page 3 photo R. Tasho

The discovery was made by a priest when Albanian linguists requested the catalogue card Albania’s first work is no longer found at the Vatican The loss of the “Meshari” has been met with disbelief by many Albanian scholars. Yesterday in Tirana, where the seminar on the Albanian language, literature and culture is taking place, the shocking, searing news was received with a sense of irony by many scholars. Only two or three of them knew what had happened at the Vatican. The cause of this loss—whether it was a banal oversight by library staff or a deliberate action by certain individuals—is still unknown. page 19

The 11-year-old from Sukth, Durrës, bit the young child to death —For the first time, a child bears visible signs of the rare disease. The “cannibal” family is shut away, isolated in its home page 2

Servet Pëllumbi responds to Berisha Pëllumbi: Berisha has never been known for fabrications and metaphorical comparisons page 5