Fatos Nano is convicted of misappropriation of 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.
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.
Parliament elects Alfred Moisiu as president (97-19). He is sworn in July 24. On July 25 Prime Minister Majko resigns. On July 31 Parliament approves (81-48) a new government with Socialist Party Chairman Fatos Nano as prime minister, Majko as defense minister, Ilir Meta as foreign minister, and Luan Rama as interior minister; Kastriot Islami remains finance minister. Nano's appointment marks the end of a power struggle between the party leader and his two younger challengers Meta and Majko, both of whom had served as prime minister since Nano resigned the post during a period of civil unrest in 1998. Media analysis suggests that Nano elbowed Meta and Majko aside in a grab for power after realizing that he was too controversial a figure to aspire to the presidency. The European Parliament had urged Albanian legislators to elect a president who would be acceptable to both the governing coalition and the opposition. Moreover, Meta and the outgoing president, Meidani, both openly opposed Nano's candidacy for the presidency. The election of Moisiu essentially sealed the Socialist legislators' compromise with the opposition led by the Democratic Party. Nano and Berisha say that the deal signals that the two rival party leaders have put years of fighting behind them. Moisiu, a 73-year-old retired general, served as president of the Albanian North Atlantic Treaty Association and is considered friendly by the opposition.