DOMESTIC POLITICS: The political scene will remain volatile, in the wake of the controversial presidential election in February 2008 and and the opposition, led by Levon Ter-Petrosian, has refused to accept the legitimacy of the new president, Serzh Sarkisian. Mr Sarkisian's three-party coalition government is currently headed by Tigran Sarkisian (no relation), a respected former chairman of the Central Bank of Armenia who has no party affiliation. The appointment of Tigran Sarkisian indicated the president's desire to appease his critics and to reduce the political polarisation in the country. However, with the economy set to contract, tension is likely to increase, both between the coalition government partners--for example, over the direction of economic policy--and between the government and the opposition. The opposition could seek to exploit popular dissatisfaction with the authorities over the worsening economic situation, and the risk of social unrest in the coming months is likely to increase.

Source: Armenia: Country outlook