Its response was to apply a trade embargo. A dialogue between Greece and Macedonia has begun, under UN supervision. It seems likely that Greece will withdraw its objections and will merely seek assurances that Macedonia will make no claims on Greek territory, and will adopt a flag that omits the symbol used at present. President Kiro Gligorov, who has managed the succession from Yugoslavia, won a further five-year term in parliamentary and presidential elections at the end of 1994. However, his government needs the support of the Albanian minority who are becoming more vociferous.
Ethnic tensions are likely to increase.
The Macedonian economy is in considerable difficulty and has suffered particularly from the UN trade sanctions imposed on Serbia. Seventy per cent of Macedonia's trade was formerly with the remainder of Yugoslavia. The conflict over the republic's name has also damaged trade with and through Greece, the natural link with the outside world. The government has in consequence forged closer trading ties with both Bulgaria and Turkey, whose governments were among the earliest to recognize Macedonia's independence. Its equivocal status and its geographical position in a region of strife and tension have inhibited foreign governments from providing both aid and investment.