`titrebArmenia Political Status Quo and Illusory Growth `/titreb In 2004, the Armenian opposition was not able to impeach President Kotcharian, re-elected in 2003. Unlike Georgia, it does not have a charismatic leader and still remains divided. It was, however, successful in keeping the streets in turmoil, particularly in April, with a violent demonstration dispersed and followed up with numerous arrests of opponents. The President’s hold was weakened and he was obliged to confront criticism from the Council of Europe. As concerns foreign policy, the Upper Karabagh problem weighs heavily on relations with Turkey and Azerbaijan. Russia, on which she depends for energy, remains the privileged ally, but relations with Iran are developing and she is also making overtures to the United States. In January 2004, Armenia was granted “new neighbor” status with the European Union along with the two other South Caucasus nations. On the economic level, Armenia has always enjoyed spectacular growth, with domestic consumption playing a key role, which reflects some improvement in the people’s standard of living, even if this remains precarious for a large part of the population.