Albanian PM quits in party feud

TIRANA, Albania -- Albanian Prime Minister Ilir Meta has resigned after failing to resolve a party feud that paralysed political life and stymied vital reforms.

Observers say Ilir Meta's decision threatens to cause instability in one of Europe's poorest states.

"My Cabinet has been under an ongoing unprecedented aggression of attacks and insults," the Socialist Party premier told the Associated Press.

His arch rival, ruling Socialist Party Chairman Fatos Nano, had criticised Meta for governing with "fascist methods" and in December accused three of his ministers of abuse of power.

The ministers said they were innocent but agreed to step down for the sake of stability. Nano loyalists then blocked the appointment of their replacements, and Meta's resignation followed the failure of talks this week to agree on a Cabinet shuffle.

Politicians said the feud discouraged badly needed foreign investment and caused the neglect of economic reforms in the small coastal Balkan state.

The internal squabbling had hampered efforts to deal with the consequences of a winter so severe that officials have declared a state of emergency in some parts of the country, with power cuts of up to 20 hours a day.

The political crisis began when Socialist Party leader Fatos Nano challenged Meta's right to govern despite a win in June parliamentary elections.

Nano accused the government of corruption and incompetence, demanding that the Cabinet be restructured.

Observers say the squabbling had prevented virtually all government business from taking place.