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* Centre-right party to shake up polarised politics

* President’s term ends in July, expected to lead party

* Topi will challenge PM Berisha on crime and corruption

By Benet Koleka

TIRANA, April 30 (Reuters) – Allies of Albanian President

Bamir Topi announced the creation of a new party on Monday,

threatening to shake up the Balkan country’s polarised political

scene and challenge Prime Minister Sali Berisha.

Topi’s five-year term as president is due to end in July and

he is expected to take charge of the new centre-right party, New

Democratic Spirit (NDS), when members elect a leader in

September.

Since the fall of communism two decades ago, politics in

Albania has been dominated by Berisha’s Democratic Party and the

Socialist Party, currently in opposition.

Topi, a Democrat before he gave up party allegiance to serve

as president, has been locked in confrontation with Berisha,

accusing his government of failing to fight corruption and

strengthen law and order in Albania.

The European Union is withholding coveted candidate status

for the country, home to 2.8 million people and one of the

poorest nations in Europe, over the lack of progress.

“The ideological profile of NDS will be centre-right and it

will stand for liberal ideas,” said former Deputy Prime Minister

Gazmend Oketa, a lawmaker who split from the ruling Democratic

Party to help form the new party.

“We shall represent the interests of the middle class. This

stratum has grown with great toil, but it has not been

represented with dignity by any party.”

He said the new party would work to help former political

dissidents and citizens stripped of property by the communists,

two issues championed by 55-year-old Topi.

The conference hall where the announcement of the new party

was made, opposite the parliament building, was so packed that

supporters spilled out onto the street and listened on

loudspeakers that had been set up.

A former ally of Berisha, Topi was elected president with

the votes of the Democrats and six opposition MPs who crossed

the floor to back him.

He has neither confirmed nor denied that he will take charge

of the new party, saying only that he would return to politics

after his presidential mandate ends “to contribute to higher

standards of Albanian democracy”.

(Editing by Matt Robinson and Pravin Char)