Opinion of the European Economic and Social Committee on Relations between the European Union and the Former Yugoslav Republic of Macedonia: the role of civil society
Date: 2008-03-12
Institutions: European Economic and Social Committee
Subjects: North Macedonia, accession to the European Union, association, social dialogue, social participation, social partners

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Opinion of the European Economic and Social Committee on Relations between the European
Union and the Former Yugoslav Republic of Macedonia: the role of civil society

(2008/C 204/25)

On 16 February 2007 the European Economic and Social Committee, acting under Rule 29(2) of its Rules
of Procedure, decided to draw up an own-initiative opinion on

Relations between the European Union and the Former Yugoslav Republic of Macedonia: the role of civil society.

The Section for External Relations, which was responsible for preparing the Committee's work on the
subject, adopted its opinion on 30 January 2008. The rapporteur was Mr Miklós Barabás.

At its 443rd plenary session, held on 12 and 13 March 2008 (meeting of 12 March 2008), the European
Economic and Social Committee adopted the following opinion by 125 votes to one with three abstentions.

1. Executive summary and main conclusions

The European Economic and Social Committee (EESC)
1.1
recognises the important advances made by the Former Yugo-
slav Republic of Macedonia in terms of developing and stabi-
lising its relations with the European Union (EU) with the ulti-
mate objective of joining the EU. The candidate country status
is an acknowledgement of the progress made so far. The EESC
appreciates these positive developments against the background
of
the
the political, economic and social consequences of
conflicts in the region, the challenges of the transition period as
well as the implementation of the Ohrid Framework Agreement.

The EESC is ready to support

1.2
the Former Yugoslav
Republic of Macedonia in its efforts to start the accession nego-
tiations with the EU as soon as possible, preferably in 2008.

1.3
Taking into account the commitment of the EESC and
representatives of Former Yugoslav Republic of Macedonia
economic and social interest groups to strengthen dialogue and
cooperation between organised civil society in the EU and the
FYROM, there is a need to prepare the ground for the accession
of the Former Yugoslav Republic of Macedonia to the EU. In
this process the creation of a Joint Consultative Committee with
the EESC plays a highly important role. The identification of the
Former Yugoslav Republic of Macedonia members of this joint
body should be the result of an open, transparent and demo-
cratic process.

1.4 Within the context of accession to the EU, the EESC
highlights the key role of Former Yugoslav Republic of Mace-
donia civil society in the formulation,
implementation and
monitoring of public policies and legislation (reform agenda)
aimed at preparing the adoption of the EU acquis. To promote
this process, Former Yugoslav Republic of Macedonia civil
society should be involved in accession negotiations.

1.5
Different trade union federations should coexist on an
equal footing. In order to create a favourable environment for

achieving this goal, there is a need for specific legislation on
trade unions and to reconsider and reduce the present require-
ment (of 33 % of the workforce) for becoming a contractual
partner in collective bargaining. This would be an important
contribution to a strengthened social dialogue and to the full
respect of trade union rights.

The development of and collaboration between existing
1.6
employers' associations should be facilitated and the legislative
framework revised in order to establish clear criteria for their
participation in the Economic and Social Council (ESC).

1.7
The role of the ESC of the Former Yugoslav Republic of
Macedonia should be strengthened;
it should be made more
stakeholders
representative with the participation of
including civil society organisations. This would create a firm
institutional base for conducting a meaningful dialogue on
economic and social issues in genuine partnership. For such a
development to take place, a new legal framework should be
prepared with the involvement of the parties concerned and
then promptly adopted.

all

1.8
The EESC expresses serious concern over the extremely
high poverty and unemployment rates and calls on the Govern-
ment of the Former Yugoslav Republic of Macedonia to provide
for efficient policies to combat poverty and strengthen social
cohesion.

The distribution of State resources as well as EU funds
1.9
should be more pro-poor oriented and based on solidarity and
social cohesion so as to reduce existing regional and ethnic
disparities. Specific measures are needed to improve the situa-
tion of Romas.

1.10
The EESC welcomes the efforts and the adoption of the
Strategy of the Government for Cooperation with Civil Society
as a step towards providing a supportive environment for the
development of organised civil society, and as a contribution for
a meaningful and constructive civil dialogue.

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1.11
Parallel to increased civic participation, the capacity of
social and civil partners should be strengthened. An important
aspect in this regard is the direct and indirect financial support
the Former Yugoslav Republic of Macedonia
mechanism of
Government. Furthermore, specific educational programmes on
the role of civil society should be introduced at school.

2. Introduction

On 9 April 2001,

2.1
the Former Yugoslav Republic of
Macedonia was the first country in the Western Balkans to sign,
by an exchange of letters, a Stabilisation and Association Agree-
ment, which entered into force on 1 April 2004.

The Former Yugoslav Republic of Macedonia officially
2.2
applied for EU membership on 22 March 2004. On 9
November 2005, the European Commission issued a positive
opinion on this application, and on 16 December 2005 the
European Council decided to grant candidate country status to
the Former Yugoslav Republic of Macedonia.

At

the fourth meeting of

2.3
the EU-Former Yugoslav
Republic of Macedonia Stabilisation and Association (SA)
Council on 24 July 2007, strong commitment to advancing the
pace of reforms was noted. The SA Council also supported the
creation of Joint Consultative Committees with the EESC and
the Committee of the Regions.

2.4
The latest Progress Report on the Former Yugoslav
Republic of Macedonia, released on 6 November 2007, evalu-
ates the progress made in several fields but also enumerates the
remaining serious challenges that the country has to face.

2.5 Within the context of the expected start of the accession
negotiations, the EESC highlights the key role of civil society.
Therefore, this opinion will focus on Former Yugoslav Republic
of Macedonia civil society and its environment, opportunities
and challenges; the social and civil dialogue in the country; the
relations with the EU and the countries of the Western Balkans.

3. Some specific features of civil society in the Former

Yugoslav Republic of Macedonia

3.1
Civil society emerged in the late 19th and early 20th
century and exerted a strong influence on the entire social
development. The literary and cultural circles, charities and
initiatives provided for a basis for developing
other citizens'
cultural, sport and various professional organisations. They were
kept under political control during the Socialist period. Indepen-
dence in 1990 and the transition period to parliamentary

democracy have been a powerful
role of civil society in the country.

incentive to strengthen the

3.2
The re-emergence of Former Yugoslav Republic of Mace-
donia civil society in the early 1990s was strongly and positively
influenced by the political developments of the country, paving
the way for the creation of an independent, multi-faceted and
service-oriented civil society. The other specific feature is the
value-driven nature of the country's civil society that is largely
regulated by a strong normative approach.

Civil society in the Former Yugoslav Republic of Mace-
3.3
donia is characterised by limited breadth and depth of citizen's
participation. While there is an increase in non-partisan political
action by citizens of the Former Yugoslav Republic of Macedo-
nian, still only a minority of citizens (less than 30 %) participate
in civil society activities (charitable giving, membership of civil
society organisations, volunteering, collective community action,
etc.).

4. General context

4.1 Political Context: the Ohrid Framework Agreement and the Rule

of Law

The Ohrid Framework Agreement (1) concluded in
4.1.1
August 2001 and the rule of law are among the key factors for
the political stability of
the country. The Ohrid Framework
Agreement has contributed to facing the challenges related to
diversity in the Former Yugoslav Republic of Macedonia. It has
also contributed towards establishing the foundations for stabi-
lity and development, and has set the tempo for political, social,
economic and inter-ethnic life.

4.1.2
After the parliamentary elections in 2006 and the
formation of the new centre-right government, a new balance
was needed. There is a need for the Government to dedicate
itself to political dialogue and to securing the support of all
political forces in the implementation of the EU agenda for the
Former Yugoslav Republic of Macedonia. There is progress in
constructive political dialogue on issues of fundamental national
importance. However,
this process might be hampered by
continued political tensions preventing better governance and
the establishment of well-functioning democratic institutions.

4.1.3
Significant progress has been made with the implemen-
tation of the legislative part of the Ohrid Framework Agree-
ment, whose provisions have been included in the Constitution
following the adoption of amendments by the Parliament, as
well as for the equitable representation of communities in
public administration. The perception within the population

(1) In the beginning of 2001, the Former Yugoslav Republic of Macedonia
faced armed clashes and crisis in its inter-ethnic relations. The political
solution for the crises was the Framework Agreement(also known as
Ohrid Agreement), agreed upon by the four leading political parties
and guaranteed by the President of the Republic and the international
community (EU and USA), on 13 August 2001 in Ohrid. The Frame-
work Agreement has the aim to preserve the integrity and the unitary
character of the State, to promote democracy and develop civil society;
to promote Euro-Atlantic integration; and to develop a multi-cultural
society, with an equitable inclusion of the ethnic communities. The
legislative part of the Framework Agreement has been fulfilled in about
four years, in July 2005.

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that inter-ethnic relations represent the most important problem
in their country has decreased from 41.4 % in July 2001 to
1.4 % in March 2007.19.7 % of the citizens assessed inter-
in January 2005, compared to
ethnic relations as ‘very bad’
7.6 % in March 2007 (2).

4.2.3
As a result there is a high degree of poverty in the
country, with 29.8 % of the population of the Former Yugoslav
Republic of Macedonia living below the poverty line. Poverty is
directly related to an extremely high unemployment rate (36 %).

Progress in education for communities, equitable repre-
4.1.4
sentation and decentralisation has been registered. Since the
Agreement represents ‘a framework’, it allows room for interpre-
tation and possible demands for supplementing measures. New
challenges could be faced regarding the use of languages (Law
on Languages, bilingualism of Skopje), the status of ethnic-Alba-
nian ex-combatants, territorial organisation (Kičevo, 2008) and
position of smaller and dispersed communities like Turks,
Romas, Serbs, Bosniaks and Vlachs who form 10.6 % of the
population.

4.2.4
Poverty, social exclusion and high unemployment with
poorly functioning labour markets are (negative) results of low
economic growth (around 4 %), inappropriate corporate struc-
ture (especially SME underperformance), rigid labour market, a
weak education system and strong population growth. So far
the Government has often used social welfare measures to
handle poverty without an active employment policy.

4.2.5
Nevertheless the GDP growth of 7 % registered in the
first quarter of 2007 could be the long expected start of a more
dynamic economic development cycle.

4.1.5
The situation of the Roma community continues to
cause concern, even if the country is one of the committed
participants in the ‘Decade for Inclusion of Roma 2005-2015’.

4.3 Socio-Cultural Context: Widespread Lack of Trust

4.1.6
In the past, the Former Yugoslav Republic of Mace-
donia has been taking (too) slow steps towards strengthening
the rule of law, mostly because of the structural weaknesses in
the implementation of the laws and in the courts, politicised
and weak public administration, corruption and organised
crime. Today one can witness certain progress in these fields.
The legal framework for strengthening the independence and
the effectiveness of the judiciary is largely in place, since amend-
ments were made to the Constitution in December 2005. The
fight against corruption is high on the agenda of the Govern-
ment of the Former Yugoslav Republic of Macedonia. In May
2007 the new State Programme for Prevention and Repression
of
is
the Corruption was enacted. Still, strong political will
required to step up efforts to combat corruption effectively.

4.3.1
Social relations are characterised by a widespread lack
of trust, tolerance and public spiritedness. There is a low level of
trust in public institutions. However,
last year there was an
increase in trust in the Government.

tolerance.

Tolerance according to the World Values Survey has
4.3.2
the indicator of 2.08, which means that Former Yugoslav
Republic of Macedonia society is characterised with a low level
of
Intolerance is very high towards marginalised
groups like drug users, alcoholics, homosexuals and Romas.
Public spiritedness, measured through non-payment of public
utilities (transport, water, etc.),
taxes, or use of government
benefits, is also at a low level.

4.2 Socio-economic Context: Jobless Growth

5. Civil society in the Former Yugoslav Republic of Mace-

4.2.1
The Former Yugoslav Republic of Macedonia was less
developed compared to the other republics in the former Yugo-
slav Federation and its economy was in a downturn for six years
before independence. The first years of independence were hall-
marked by their macroeconomic instability and an increase in
the fiscal deficit. The crisis in the region, the Greek embargo,
UN sanctions against the Federal Republic of Yugoslavia and the
Kosovo crisis negatively influenced the economic and political
situation in the Former Yugoslav Republic of Macedonia and
contributed directly to the country's inability to focus on its
own political and economic reforms.

Today the Former Yugoslav Republic of Macedonia
4.2.2
enjoys
relative macroeconomic stability based on a broad
consensus on economic policies and is moving towards a larger
degree of trade liberalisation (member of WTO and CEFTA).
Still there is no proper economic development.

(2) Early Warning Report — Former Yugoslav Republic of Macedonia,

UNDP, Skopje, June 2007.

donia

5.1 Legal Environment

5.1.1
Freedom of association is guaranteed by the Constitu-
tion (art. 20) and regulated by the Law on Citizen Associations
and Foundations adopted in 1998.

5.1.2
Trade unions and association of employers lack regula-
tions, since they are only covered by a few articles of the Labour
Law and the Trade Company Law. There is a pressing need for
the creation of a level playing field for social partners, especially
in order to guarantee their independence. The chambers of
commerce are regulated by a separate law.

Even with the recent improvements (Law on donations
5.1.3
and sponsorships, etc.), the tax laws on civil society organisa-
tions (CSOs) and tax benefits for philanthropy are obstacles to
further development.

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A new Law on Citizen Associations and Foundations is
5.1.4
under preparation. The major expected changes are:
further
improvement of the rights to set up CSOs, regulation of their
the status of public
economic activities and introduction of
benefit organisation.

Interaction/dialogue

cooperation.
trade
unions and other CSOs is practically nonexistent. However, the
Civil Platform of Macedonia, with its 29 members, has set a posi-
tive example in this field.

employers,

among

5.2 Snapshot of Civil Society in the Former Yugoslav Republic of

Republic of Macedonia

Macedonia

5.3 Strengths and Weaknesses of Civil Society in the Former Yugoslav

5.2.1 Diversity

and

Representativeness

of

Civil

Society Organisations (CSOs)

5.2.1.1
Former Yugoslav Republic of Macedonia organised
civil society is composed of trade unions, citizen's organisations,
and chambers of commerce, together with churches and reli-
gious communities. The associations of employers are a new
phenomenon for the country and chambers of commerce (two
of them exist at the national
level: the Economic Chamber of
Macedonia, SKM, and the Union of Chambers of Commerce, USKM)
are still seen as representatives of the private sector.

5.2.1.2
The relationship between organisations of employers
is made more complicated by the fact that only one of them
(the Association of Employers of Macedonia, ZRM) is a member of
the Economic and Social Council (ESC) of the Former Yugoslav
Republic of Macedonia. The other one,
the Confederation of
Employers of the Republic of Macedonia (KRM), strives for a more
open and inclusive attitude of the Former Yugoslav Republic of
Macedonia's ESC.

5.2.1.3
The trade unions are grouped in four confederations:
the Federation of Trade Unions of Macedonia (SSM), the Confedera-
tion of Independent Unions (KNS), the Confederation of Trade Union
Organisations of Macedonia (KSS) and the Union of Free and Auton-
omous Trade Unions (UNS). Rivalry and sometimes even hostile
attitudes, with personal motivations, towards each other are
significantly
their
characteristic
weakens
the
government.

their negotiation position, especially vis-à-vis

relations. This

features of

There are 5 289 CSOs registered in the country
5.2.1.4
(2003). Almost all social groups are represented as components
of civil society, with weaker participation of the poor, rural
communities and ethnic communities, especially ethnic Alba-
nians. A significant number of organisations (43 %) are concen-
trated in the capital Skopje and CSOs are nearly non-existent in
the rural areas.

5.2.2 Level of Organisation and Relations

5.2.2.1
There are around 200 umbrella bodies of CSOs in
the Former Yugoslav Republic of Macedonia. The majority of
organisations are members of a union, federation, platform or
other umbrella body, based on type of CSOs or target group.
These umbrella bodies play a significant role in consolidating
the civil sector of the country.

5.2.2.2
Former Yugoslav Republic of Macedonia civil society
is challenged to focus on communication, coordination and

5.3.1
Strengths of Former Yugoslav Republic of Macedonia
civil society are empowerment of citizens and high values of
peace, gender equality and environmental sustainability.

5.3.2
The most significant impact of civil society is achieved
in the area of empowering citizens, especially women and
marginalised groups. There has been an increased participation
of women in public life (Parliament, municipalities and CSOs).

5.3.3
Environmental organisations were a flagship in the
period from 1996 to 2001, when as a result of their advocacy
work,
successfully main-
streamed by the Government. They still have a real potential for
playing a positive role in the future.

sustainability was

environmental

5.3.4
Pluralism is in place among and practised by all major
stakeholders in Former Yugoslav Republic of Macedonia orga-
nised civil society, even though the ability of an intra-sectoral
dialogue should be developed and strengthened.

5.3.5
The weaknesses of civil society in the Former Yugoslav
Republic of Macedonia are: poverty eradication, transparency
and self-regulation, practicing democracy, mutually indifferent
relations and insufficient
civil
resources and lack of diversification of financial resources (today
there is a strong foreign donor dependency).

society and private sector

The legacy of the past combined with different posi-
5.3.6
tioning and attitudes
(and the state),
frequently with emotional ‘flavour’, poses a significant obstacle
to dialogue and action.

towards each other

5.3.7
Churches and religious communities enjoy high public
trust; trust is moderate as regards citizens' organisations, and
trust is low as regards chambers of commerce and trade unions,
the latter because of perceived worsening position of working
people and lack of action.

6. Social and civil dialogue and the establishment of a Joint

Consultative Committee with the EESC

6.1 Social Dialogue

6.1.1 The framework

The Former Yugoslav Republic of Macedonia is a member of
ILO and has ratified most of its Conventions. Some recently rati-
fied cases are: Worst Forms of Child Labour Convention (C182)
ratified in 2002 and Tripartite Consultation (International
Labour Standards) Convention (C144) ratified in 2005.

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6.1.2 The Economic and Social Council of the For mer

Yugoslav Republic of Macedonia

The institutional framework for social dialogue, especially the
tripartite dialogue practiced through the Economic and Social
Council of the Former Yugoslav Republic of Macedonia, is at an
early stage of development. The Economic and Social Council
established in 1996 manages tripartite dialogue (trade unions
and employers as partners of the Government) on the national
level. However, the Council has limited scope for participation
because it consists only of representatives of the Federation of
Trade Unions of Macedonia (SSM), the Association of Employers of
Macedonia and is chaired by the Minister of Labour and Social
Policy.

6.1.3
This situation is seriously challenged by those organisa-
tions of employers and trade unions that are not members of
the ESC and strongly criticise its work. There seems to be a
including from the point of view of the
general agreement,
government,
framework should be
the current
that
amended and made clearer in identifying the criteria for partici-
pating in the ESC. However a protracted discussion can be fore-
seen to find a satisfactory solution and a new legal framework
for the ESC.

legal

6.1.4 Collective bargaining

There are two general collective agreements for the public and
private sector, and about 24 collective agreements for different
sectors. The present requirement of the trade unions is to orga-
nise 33 % of the relevant workforce to become social partners
in collective bargaining. This provision is seriously criticised by
several trade unions who call for a substantial reduction of this
threshold. Moreover, it proved to be difficult to provide clear
evidence
an organisation had actually reached this
threshold.

that

6.2 Civil Dialogue in light of the new Government Strategy

6.2.1
The first period in Government-CSOs relations was
characterised by ad-hoc contacts and arrangements. The first
step towards institutionalised relations was made in November
2004 with the creation of a Civil Society Unit within the
Government.

In January 2007 a Strategy for Cooperation of

6.2.2
the
Government with the Civil Sector was adopted along with the
Action Plan for its implementation. This document was the
result of a proper consultation process.

6.2.3
The main strategic goals of the Strategy are: participa-
tion of the civil society sector in the process of policy making;
inclusion of civil society in the process of EU integration; crea-
tion of more favourable conditions for the functioning of civil
society; upgrading and enhancing the legal
framework to
improve the conditions of civil society; establishment of inter-
institutional and cross-sectional cooperation.

6.3.2
A properly composed JCC can be an effective instru-
ment not only in bringing the Former Yugoslav Republic of
Macedonia and its organised civil society closer to the EU but
also in promoting dialogue among civil society organisations at
the national level.

Serious efforts are needed from all

6.3.3
the concerned
parties to make sure that Former Yugoslav Republic of Mace-
donia members of the JCC are selected in an open, transparent
and democratic manner and that they are legitimate and repre-
sentative.

7. The Former Yugoslav Republic of Macedonia, the EU

and the Balkans

7.1 State of EU — Former Yugoslav Republic of Macedonia Rela-

tions

7.1.1 Candidate countr y

The Former Yugoslav Republic of Macedonia is a candidate
country and is preparing for the accession negotiations with the
EU. It was the first country in the Western Balkans to sign a
Stabilisation and Association Agreement (SAA) in April 2001.
The Thessaloniki Summit held on 19-21 June 2003 introduced
enhanced support for the accession to the EU of the Western
the Former Yugoslav
Balkans countries. The Government of
Republic of Macedonia submitted its answers to the question-
naire of
the European Commission on 14 February 2005,
which formed a basis for the positive opinion issued by the
Commission on 9 November 2005 and subsequently, for the
the European Council on 16 December 2005
decision of
granting the candidate status to the Former Yugoslav Republic
of Macedonia.

7.1.2 Trade with EU

In 2006 total exports reached EUR 1.43 billion, and total
imports EUR 2.25 billion. Trade with the EU was 51.85 % of
exports and 44 % of imports came from EU member states. The
top five EU trade partners are Germany, Greece, Italy, Slovenia
and Poland.

Some of the trade issues to be tackled are: lack of integration of
border services, lack of new technologies and paperless customs,
products declaration and lack of referential laboratories for certi-
ficates (esp. in agriculture).

7.1.3 Visas

6.3 Establishment of a Joint Consultative Committee (JCC) with the

EESC

6.3.1
All stakeholders in the Former Yugoslav Republic of
Macedonia attach great importance to the JCC with the EESC
and urge its earliest possible setting up.

The mobility of people, especially in the field of business
contacts, education and cultural exchanges are of key impor-
tance for the country building bridges to the EU. A visa facilita-
tion and readmission agreement with the EU was signed on 18
September, 2007 as a transitional step towards a mutual visa-
free travel regime. A dialogue on visa-free travel was launched
on 20 February 2008.

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7.1.4 EU Aid

EU aid to the Former Yugoslav Republic of Macedonia from
1992 to 2006 totalled EUR 800 million. The commitment for
2007–2009 is EUR 210 million.

7.2 The role of civil society in the EU integration process

European integration is an important challenge for civil
7.2.1
society in the Former Yugoslav Republic of Macedonia. With the
accession process, European integration is a powerful moving
force for the further development of civil society. Civil society
organisations are carriers of the new values, such as participa-
tory democracy, inclusion, equality, transparency and account-
ability. CSOs also play an important role in mediating a tradi-
tional, multi-cultural and multi-ethnic Balkan society with post-
modern Europe.

The Government of the Former Yugoslav Republic of
7.2.2
Macedonia started to recognise the role of civil society in the
EU integration process by including it as one of its strategic
objectives.

EU support for civil society increased after the intro-
7.2.3
duction of CARDS in 2001. A number of civil initiatives were

Brussels, 12 March 2008.

supported, among them technical assistance for the elaboration
of a Government Strategy for Cooperation with Civil Society
and support to the Civic Platform of Macedonia.

7.3 Balkan neighbourhood and networking

7.3.1.
The Former Yugoslav Republic of Macedonia plays an
active role in the field of regional cooperation with its commit-
ment to the development of bilateral relations and good neigh-
bourhood policy. It is an active player in such regional processes
as the establishment of the Regional Cooperation Council (the
Southeast European Cooperation Process (SEECP), the Energy
Community Treaty, the European Common Aviation Area, the
Southeast European Cooperative Initiative (SECI) and the Central
European Free Trade Agreement (CEFTA). Within this context,
national and local press has a special responsibility for playing a
positive role in the development of those processes.

Networking and interaction at regional

is also
7.3.2.
including civil society. There are
increasing in other spheres,
positive cases of
joint actions, with active participation by
employers' organisations, trade unions and other CSOs of the
Former Yugoslav Republic of Macedonia.

level

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS