TIRANA, Sept. 11 (Xinhuanet) -- Albania's new cabinet headed by Prime Minister Sali Berisha was sworn in on Sunday, pledging democratic and economic reforms in an effort to seek membership in NATO and the European Union.

    Albanian President Alfred Moisiu said he believed the new government will try every effort to consolidate democratic institutions, dismantle corruption and improve the rule of law promised at elections.

    The country has taken a big step towards democracy through peaceful power transition, he said in an address to the new members of the cabinet.

    The parliament approved Berisha's new government and its agendaon Saturday, which pledges to cut taxes for small businesses, fight organized crime and pull people from poverty by doubling salaries and pensions.

    However, the opposition said the new government may not be ableto deliver the promises if it does not rule with "clean hands."

    The Albanian economy has grown by 6 percent over the last two years, but still one-quarter of its 3.5 million people live in poverty.

    Berisha promised to increase growth to around 8 percent annually by guaranteeing a free market, which was allegedly throttled by monopolies under Nano.

    The prime minister said Albania would sign a Stabilization and Association Agreement with the EU in 2006, considered the first step toward possible membership in the bloc, and would become a NATO member within his four-year mandate.

    Berisha is returning to power from eight years in opposition after his Democratic Party defeated the Socialist Party in a July 3 general election. Enditem