COMMISSION STAFF WORKING DOCUMENT North Macedonia 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy
Date: 2024-10-30
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: North Macedonia, accession criteria, accession negotiations, pre-accession strategy, regional cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 30.10.2024  SWD(2024) 693 final  COMMISSION STAFF WORKING DOCUMENT North Macedonia 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy                             {COM(2024) 690 final} - {SWD(2024) 690 final} - {SWD(2024) 691 final} - {SWD(2024) 692 final} - {SWD(2024) 694 final} - {SWD(2024) 695 final} - {SWD(2024) 696 final} - {SWD(2024) 697 final} - {SWD(2024) 698 final} - {SWD(2024) 699 final}  
 
 
CONTENTS 
1. INTRODUCTION .............................................................................................................................................. 3 

1.1. Context ........................................................................................................................................................ 3 

1.2. Main findings of the report .......................................................................................................................... 4 

1.3. 

State of play of the accession negotiations .......................................................................................... 20 

2. Cluster 1: The Fundamentals of the accession process ..................................................................................... 21 

2.1. Functioning of democratic institutions and public administration reform ................................................. 21 

2.1.1 Democracy .......................................................................................................................................... 21 

2.1.2. Public administration reform ............................................................................................................. 23 

2.2. Rule of law and fundamental rights........................................................................................................... 27 

2.2.1 

2.2.2 

Chapter 23: Judiciary and fundamental rights ............................................................................ 27 

Chapter 24: Justice, freedom and security .................................................................................. 40 

2.3. Economic criteria ...................................................................................................................................... 49 

2.3.1. The existence of a functioning market economy ............................................................................... 49 

2.3.2. The capacity to cope with competitive pressure and market forces within the Union ....................... 53 

2.4. Public procurement, statistics, financial control ........................................................................................ 55 

Chapter 5: Public procurement .................................................................................................................... 55 

Chapter 18: Statistics ................................................................................................................................... 56 

Chapter 32: Financial control ....................................................................................................................... 57 

3.  Good neighbourly relations and regional cooperation ................................................................................. 59 

4. Ability to assume the obligations of membership ............................................................................................. 60 

Cluster 2: Internal market ................................................................................................................................. 60 

Chapter 1: Free movement of goods ............................................................................................................ 60 

Chapter 2: Freedom of movement for workers ............................................................................................ 61 

Chapter 3: Right of establishment and freedom to provide services ............................................................ 62 

Chapter 4: Free movement of capital ........................................................................................................... 63 

Chapter 6: Company law ............................................................................................................................. 63 

Chapter 7: Intellectual property law ............................................................................................................. 64 

Chapter 8: Competition policy ..................................................................................................................... 65 

Chapter 9: Financial services ....................................................................................................................... 65 

Chapter 28: Consumer and health protection ............................................................................................... 66 

Cluster 3: Competitiveness and inclusive growth ............................................................................................ 68 

Chapter 10: Digital transformation and media ............................................................................................. 68 

Chapter 16: Taxation.................................................................................................................................... 69 

Chapter 17: Economic and monetary policy ................................................................................................ 70 

Chapter 19: Social policy and employment ................................................................................................. 71 

Chapter 20: Enterprise and industrial policy ................................................................................................ 72 

Chapter 25: Science and research ................................................................................................................ 74 

Chapter 26: Education and culture ............................................................................................................... 74 

Chapter 29: Customs union .......................................................................................................................... 76 

Cluster 4: The Green Agenda and sustainable connectivity ............................................................................. 77 

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Chapter 14: Transport policy ....................................................................................................................... 77 

Chapter 15: Energy ...................................................................................................................................... 78 

Chapter 21: Trans-European networks......................................................................................................... 79 

Chapter 27: Environment and climate change ............................................................................................. 80 

Cluster 5: Resources, agriculture and cohesion ................................................................................................ 82 

Chapter 11: Agriculture and rural development ........................................................................................... 83 

Chapter 12: Food safety, veterinary and phytosanitary policy ..................................................................... 83 

Chapter 13: Fisheries and aquaculture ......................................................................................................... 85 

Chapter 22: Regional policy and coordination of structural instruments ..................................................... 85 

Chapter 33: Financial and budgetary provisions .......................................................................................... 87 

Cluster 6: External relations ............................................................................................................................. 88 

Chapter 30: External relations...................................................................................................................... 88 

Chapter 31: Foreign, security and defence policy ........................................................................................ 89 

Annex I – Relations between the EU and North Macedonia ............................................................................ 91 

Annex II – Statistical data ................................................................................................................................ 93 

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1. INTRODUCTION1 

1.1. CONTEXT 

Following  the  first  Intergovernmental  Conference  on  accession  negotiations  on  19 July  2022,  the 
screening  sessions  for  all  six  clusters  were  completed  on  7 December  2023.  North  Macedonia 
continued to implement the Stabilisation and Association Agreement and the joint bodies under the 
agreement met. 

North  Macedonia  has  consistently  stated  its  political  commitment  to  the  strategic  goal  of  EU 
integration  and  its  ambition  to  move  forward  in  the  accession  negotiations.  The  newly-elected 
President  took  office  in  May  2024  and  in  June  2024,  after  the  parliamentary  elections,  a  new 
government  was  formed.  Essential  EU-related  reforms  need  to  be  implemented.  North  Macedonia 
maintained good relations with other enlargement countries and continued its engagement in regional 
initiatives. Existing bilateral agreements with neighbouring countries need to be implemented in good 
faith  by  all  parties,  including  the  Prespa  Agreement  between  North  Macedonia  and  Greece  and  the 
Treaty of Friendship, Good Neighbourliness and Cooperation with Bulgaria.  

North Macedonia  maintained  its  full  alignment  with the  EU’s  common foreign and  security policy, 
including  on  Russia’s  war  of  aggression  against  Ukraine,  sending  a  strong  signal  of  its  strategic 
choice  of  EU  accession  and  showing  itself,  once  more,  to  be  a  reliable  partner.  In  2023,  North 
Macedonia has played an active role in a complex geopolitical context during its term as chair of the 
Organisation for Security and Cooperation in Europe (OSCE).  

North Macedonia has actively engaged in the implementation of the new Growth Plan for the Western 
Balkans  across  its  four  pillars:  (i)  gradual  integration  with  the  EU  single  market,  (ii)  regional 
economic  integration,  (iii)  fundamental  reforms  and  (iv)  increased  financial  support.  Its  Reform 
Agenda  covers  reform  milestones  in  the  areas  of:  (i)  governance,  public  administration  reform  and 
public financial management; (ii) green and digital transition; (iii) human capital; (iv) private sector 
development and business environment; and (v) fundamental rights and the rule of law.  

The Commission’s 2024 rule of law report2 covered North Macedonia for the first time.  

1.2. MAIN FINDINGS OF THE REPORT3 

1  The  2024  report  is  presented  in  a  renewed  format  and  structure.  Main  findings  of  the  report,  together  with  the 
recommendations (previously grey assessment boxes) are brought together at the beginning of the report. Furthermore, under 
the fundamentals cluster, for better readability and comparability across all reports, certain data is provided (also) in the form 
of graphs. 
2 COM(2024)800 final 
3This  report  covers  the  period  from  15 June  2023  to  1 September  2024.  It  is  based  on  input  from  a  variety  of  sources, 
including  contributions  from  the  government  of  North  Macedonia,  EU  Member  States,  European  Parliament  reports  and 

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2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1.1 Democracy 

The  conduct  of  the  elections  was  mostly  satisfactory.  The  parliamentary  and  presidential  elections 
were competitive. Fundamental freedoms were respected. The election legislation provides a suitable 
framework for holding democratic elections. However, limited progress was made on addressing the 
outstanding  recommendations  of  the  OSCE’s  Office  for  Democratic  Institutions  and  Human  Rights 
(ODIHR)  and  the  Venice  Commission.  North  Macedonia  should  implement  the  recommendations 
rapidly and well before the next elections. 

The  Parliament  was  found  to  exercise  its  powers  in  a  mostly  satisfactory  way.  However,  political 
polarisation  in  Parliament  persisted,  delaying  the  adoption  of  important  reforms  and  several  long-
overdue  appointments.  In  November  2023,  new  rules  of  procedure  were  adopted  based  on  a  high 
degree  of  consensus,  completing  the  commitments  under  the  ‘Jean  Monnet  Dialogue’.  The  new 
Parliament, constituted in May, was  able to find a broad consensus on the implementation of the new 
rules of procedure, on the need for a constructive and inclusive political debate and should accelerate 
its work on the continuation of reforms necessary for the EU integration process. Parliament should 
plan  and  adopt  its  agenda  carefully  and  limit  the  use  of  fast-track  legislative  procedures  or 
inappropriate  use  of  the  ‘EU  flag’  procedure,  which  has  been  the  practice  up  to  now.  Cross-party 
collaboration  is  essential  to  accelerate  the  implementation  of  EU-related  reforms,  in  the  interest  of 
citizens.  Despite  attempts,  thus  far,  no  progress  was  made  on  adopting  the  constitutional  changes, 
with a view to including in the Constitution citizens who live within the borders of the State and who 
are  part  of  other  peoples,  such  as  Bulgarians,  as  referred  to  in  the  Council  Conclusions  of  18  July 
2022, which the country committed to launch and achieve. 

The institutions in charge of the integration process are in place. The new government established a 
Ministry of European Affairs, replacing the Secretariat for European Affairs. Following the successful 
completion  of  the  screening  process,  North  Macedonia  needs  to  continue  strengthening  its  EU 
negotiating  structures  and  achieve  sound  coordination  across  line  ministries  and  institutions,  while 
further developing EU-acquis-related expertise across the public administration. 

Permanent and decisive steps are needed to accelerate the implementation of EU reforms and move 
forward  in  the  EU  accession  negotiation  process.  Cross-party  collaboration  remains  vital  in  this 
regard.  A  reform  of  local  self-government  is  urgently  needed  and  the  dialogue  between  different 
levels  of  government  should  be  relaunched.  Inter-ethnic  relations  remained  stable,  and  the  Ohrid 
Framework Agreement continued to be implemented. 

Civil society organisations (CSOs) in North Macedonia operate in an overall  enabling environment. 
However,  the  government  should  increase  its  efforts  to  mainstream  civil  society  engagement  in 
priority areas and in consultation activities. Existing legal and financial frameworks still need to be 
amended  and  implemented,  particularly to  provide  consistent  mechanisms for  providing  transparent 
public  funding  to  CSOs.  Urgent  efforts  are  needed  to  resume  the  activities  of  the  Council  for 
Cooperation between the Government and Civil Society. 

Public administration reform 

North Macedonia remains moderately prepared in the area of public administration reform. Limited 
progress was made during the reporting period, notably the adoption of amendments to the Law on 
state  organisation,  which  brought  about  improvements  by  clarifying  lines  of  accountability, 

information  from  various  international  and  non-governmental  organisations.  It  also  includes  the  results  of  comparative 
assessments and indices produced by other stakeholders, in particular in the area of rule of law. 
The  report  uses  the  following  assessment  scale  to  describe  the  state  of  play:  early  stage,  some  level  of  preparation, 
moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting period, it 
uses the following scale: backsliding, no progress, limited progress, some progress, good progress and very good progress. 
Where appropriate, interim steps have also been used. 

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introducing  impact  assessments  for  the  creation  of  new  state  bodies  and  decreasing  the  number  of 
primary budget users. 

The Commission’s recommendations from last year were not fully implemented and therefore remain 
largely valid. In the coming year, North Macedonia should in particular: 

→  adopt  and  start  implementing  the  revised  Law  on  administrative  servants,  the  revised  Law  on 

public service employees and the legal provisions on top management service; 

→  finalise the revision and start implementing the Law on state organisation and other related laws 

in line with the recommendations on the new organisation of state administrative bodies; 

→  ensure  full  implementation  of  the  Law  on  general  administrative  procedures  by  completing  the 
digitalisation of institutions’ registers and data exchange and simplifying electronic procedures. 

Chapter 23: Judiciary and fundamental rights  

North Macedonia is between having some and a moderate level of preparation in applying the EU 
acquis  and  European  standards  in  this  area.  Overall,  there  was  limited  progress  on  strengthening 
judicial independence and improving the legal framework for protecting fundamental rights. 

Functioning of the judiciary 

The  judicial  system  of  North  Macedonia  is  between  having  some  and  a  moderate  level  of 
preparation  and  made  limited  progress.  The  country  adopted  a  new  Strategy  for  Judicial  Reform 
(2024-2028) and a roadmap on chapter 23 and has started to implement the recommendations of the 
2023 peer review mission on the Judicial Council. The new government's announcements of plans to 
'dissolve' the Judicial and Prosecution Councils are a matter of serious concern, as such actions would 
undermine  the independence  of the  judiciary.  The  rising deficit  in  human resources  in the  judiciary 
raises concerns for impacting the quality and efficiency of justice. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  are 
therefore largely valid. In the coming year, North Macedonia should in particular: 

→  adopt a new Law on civil procedure, in line with European standards and start implementing the 

new strategy on judicial reform; 

→  strengthen the Judicial Council by revising the legislative framework and its overall functioning 
to enhance its transparency and independence, in line with the recommendations of the 2023 peer 
review  mission,  and  step  up  the  implementation  of  the  human  resources  strategies  for  the 
judiciary and the prosecution; 

→  ensure  that  the  automated  court  case  management  information  system  (ACCMIS)  is  fully 
functional and compatible with level of complexity  of court cases and the method for assessing 
judges and presidents of courts. 

Fight against corruption 

North  Macedonia  is  between  having  some  level  of  preparation  and  a  moderate  level  of 
preparation  and  made  no  progress  in  the  prevention  and  fight  against  corruption.  Corruption 
remains prevalent in many areas and is an issue of serious concern. The current government has stated 
that the fight against corruption is a priority.  

The institutional framework for the fight against corruption is in place and is satisfactory in terms of 
preventive  measures.  However,  improvement  is  needed  on  law  enforcement.  The  newly  composed 
State Commission for the Prevention of Corruption (SCPC) started its mandate on 8 February 2024. It 
is critical that it acts with the highest level of professionalism, integrity, and independence. It needs to 
continue to provide proactively policy guidance to prevent corruption, and to work in an inclusive and 
transparent  manner.  Its  recommendations  need  to  be  effectively  followed  up.  To  enhance  the 
performance of the SCPC, the Public Prosecutor’s Office, investigative centres and law enforcement 
units should all receive additional human resources and financial support. Strategic documents have 
been  adopted  and  the  legal  framework  for  the  fight  against  corruption  is  in  place  but  needs  to  be 
improved, both in terms of preventive measures and law enforcement. 

5 

 
 
The amendments to the Criminal Code of September 2023 weakened the legal framework, negatively 
affecting  the  prosecution  of  corruption,  especially  in  high-level  cases.  Many  ongoing  cases  were 
terminated either because the statute of limitations had expired or because specific offences, such as 
the abuse of office in public procurement, no longer exist. 

The  Commission’s  recommendations  from  last  year  were  not  fully  addressed  and  therefore  remain 
valid. In the coming year, North Macedonia should in particular: 

→  adopt  a  new  Criminal  Code  in line  with  the  EU  acquis and  international  standards.  Improve its 
track record in high-level corruption cases – with timely, professional, and transparent proactive 
investigations,  prosecutions,  final  convictions,  and  recovery,  including  confiscation  of  criminal 
assets, value-based confiscation, extended confiscation and third-party confiscation; 

→  improve the implementation of the national strategy for the prevention of corruption and conflict 
of interests and also the GRECO’s recommendations, in particular on the system of sanctions for 
the violation of conflicts of interest, integrity and anti-corruption rules; 

→  allocate sufficient human and financial resources, including financial experts, to the Office of the 
Basic Public Prosecutor for Organised Crime and Corruption to ensure effective accountability in 
high-level  corruption  cases;  and  to  the  State  Commission  for  the  Prevention  of  Corruption  to 
improve the verification of assets declarations and the oversight of election campaign financing. 

Fundamental rights 

The legal framework on the protection of fundamental rights is partially aligned with the EU acquis 
and European standards. The country continues to meet its general obligations on fundamental rights, 
but  legislation  should  be  implemented  in  a  systematic  manner.  In  November  2023,  the  Parliament 
appointed  the  Macedonian  Association  of  Young  Lawyers  and  the  Helsinki  Committee  for  Human 
Rights  (HCHR)  to  serve  as  the  civil  control  mechanism  within  the  Ombudsman’s  office.  The 
Parliament  elected  new  anti-discrimination  commissioners  and  filled  vacant  positions.  No  progress 
has  been  made  on  the  protection  of  personal  data.  The  overall  situation  in  prisons  remains  dire 
although infrastructure was renovated and improved in several prison facilities. 

The  Commission’s  recommendations  from  last  year  were  addressed  only  partially  and  therefore 
remain valid. In the coming year, the country should in particular: 

→  address  the  dire  conditions  in  prisons  and  continue  the  efforts  to  promote  alternatives  to 
incarceration and implement relevant recommendations on detention conditions, made by national 
and international institutions, notably by the European Committee for the Prevention of Torture 
and Inhuman or Degrading Treatment or Punishment (CPT); 

→  allocate  the  necessary  resources  to  the  Ombudsman's  Office  and  to  the  Commission  for  the 

Prevention and Protection against Discrimination to enable them to fulfil their mandate; 

→  provide  adequate  support  to  vulnerable  categories  of  children,  especially  children  victims  of 

violence, Roma4 children and children with disabilities. 

Freedom of expression 

North  Macedonia  is  between  having  some  level  of  preparation  and  a  moderate  level  of 
preparation on freedom of expression and has made limited progress in this area. The Law on audio 
and audio-visual media services was amended in July 2023 to harmonise it with the Media Directive. 
It was amended again in February 2024 to reintroduce State advertising in commercial media, which 
was  later  criticised  by  the  media  regulator  and  media  organisations.  The  Laws  on  media  and  the 
Electoral  Code  were  also  amended.  However,  these  amendments  were  not  comprehensive  and 
multiple long-standing issues therefore remain unaddressed. 

4In line with the terminology of European institutions the umbrella term ‘Roma’ is used here to refer to a number of different 
groups, without denying the specificities of these groups. 

6 

 
 
 
The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain valid. In the coming year, the country should in particular: 

→  continue to  revise  the  legal  framework  governing the  media  to  align  it  with  the  EU  acquis  and 
European  standards,  notably  by  introducing  rules  on  full  transparency  in  media  ownership  and 
advertising,  competition  and  State  aid,  and  intellectual  property  rights,  in  accord  with  the  EU 
single market; 

→  implement  the  strategy  to  reform  the  Public  Broadcaster  and  appoint  the  Public  Service 

Broadcaster’s Programme Council and the Media Regulator’s Council; 

→  continue  to  promptly  address  all  threats  and  acts  of  violence  against  journalists  and  ensure 

perpetrators are brought to justice. 

Chapter 24: Justice, freedom and security 

North Macedonia is moderately prepared to implement the EU acquis. Some progress was made in 
the  area  of  asset  recovery  and  confiscation  by  further  aligning  the  legislation  with  the  EU  acquis. 
Limited progress was made on migration and asylum where there was no further alignment with EU 
acquis. The new Frontex agreement is implemented in a satisfactory manner. 

The Commission’s recommendations from last year were only partially met and remain mostly valid. 
Therefore, in the coming year the country should in particular: 

→  continue  to  proactively  reform  the  structures  responsible  for  fighting  organised  and  financial 
crimes and money laundering with a focus on increasing operational capacity and cooperation and 
confiscating property when warranted; 

→  ensure effective implementation and monitoring of the national strategies for countering terrorism 
(2023-2027),  countering  violent  extremism  (2023-2027)  and  of  the  joint  action  plan  on 
counterterrorism; 

→  systematically  register  migrants  and  improve  protection-sensitive  profiling  and  adopt  a  more 

systematic approach to fighting migrant smuggling. 

Fight against organised crime 

North Macedonia has between some level of preparation and a moderate level of preparation in 
the fight against organised crime. Some progress  was made in the area of confiscation by  aligning 
further the legislation on the Asset Recovery Office and management of confiscated property with the 
EU legal framework. Additional progress was made in setting up a Commission for the compensation 
of victims of trafficking in human beings.  

The  Commission’s  recommendations  from  last  year  were  only  partially  met  and  remain  valid. 
Therefore, in the coming year the country should in particular: 

→  improve  its  track  record  on  investigations,  prosecutions  and  convictions  in  organised  crime, 
financial crimes and money laundering cases, with a focus on asset recovery and confiscation of 
proceeds of crimes; 

→  strengthen  the  human  and  financial  capacity  of  the  law  enforcement  agencies  investigating 
organised and serious crimes, financial crimes and money laundering, and of the Asset Recovery 
Office (ARO) and the Agency for Management of Confiscated Property; 

→  align  its  legislation  on  money  laundering,  asset  recovery,  weapons,  narcotic  drugs  and 

psychotropic substances with the EU acquis. 

Economic criteria 

The existence of a functioning market economy 

North  Macedonia  has  made  some  progress  and  is  at  a  good  level  of  preparation  in  developing  a 

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functioning  market  economy.  Capital  expenditure  was  raised  significantly  and  fiscal  governance 
reforms  advanced.  The  current  account  balance  improved  markedly  on  account  of  falling  import 
prices for energy and food. The central bank has kept the key interest rate unchanged since September 
2023,  as  inflation  has  continued  to  subside.  The  banking  sector  remained  resilient,  and  financial 
stability was bolstered by new macroprudential measures. The post-COVID recovery remained weak 
in  2023  and  the  fiscal  deficit  and  public  debt  level  increased.  The  labour  market  continues  to  face 
structural problems, including low participation rates, substantial emigration and a large gender gap. 
The business environment is still impeded by a large informal economy. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain largely valid. In the coming year, North Macedonia should in particular: 

→  adopt  the  implementing  legislation  for  the  organic  budget  law  and  comply  with  the  fiscal  rules 

that will apply from 2025, including by adopting further revenue-enhancing measures; 

→  accelerate the implementation of the public investment management action plan and improve the 

legal framework for public-private partnerships and concessions;  

→  implement the new 2023-2025 strategy for formalising the informal economy. 

The capacity to cope with competitive pressure and market forces within the Union 

North  Macedonia  has  made  some  progress  and  is  moderately  prepared  to  cope  with  competitive 
pressure and market forces within the EU. It has made some progress in increasing the share of energy 
production  from renewable  energy sources,  and  has modernised the  legal  framework  for  improving 
energy efficiency. Integration with the EU in trade and investment, as well as overall trade openness, 
remained high in 2023. The digitalisation of the economy is advancing, but domestic businesses suffer 
from low  digital  skills.  The  government  adopted  legislation  to  modernise the education  system,  but 
major skills shortages as well as gaps in transport and energy infrastructure persist. 

The Commission’s recommendations from last year were not fully implemented and therefore remain 
valid. In the coming year, North Macedonia should in particular:  

→ 

increase financial and human resources to speed up the VET system reforms; 

→ 

implement the action plan for the smart specialisation strategy;  

→ 

increase  the  use  of renewable  energy  sources, including  by  adopting  a  new  Law  on  renewable 
energy sources and the Law on biofuels;  

→ 

implement policies to reduce emissions, including by adopting the Law on climate action. 

Chapter 5: Public procurement 

North Macedonia is moderately prepared in the area of public procurement. Limited progress was 
made  since  the  last  assessment.  The  capacities  of  key  institutions,  contracting  authorities  and 
economic  operators  must  be  increased  further  through  continuous  training.  Competition  in  public 
procurement  and  use  of  most  economically  advantageous  tender  (MEAT)  criteria  should  increase. 
National  authorities  should  implement  more  effective  anti-corruption  measures  in  the  procurement 
cycle. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain valid. In the coming year, North Macedonia should in particular: 

→  adopt the public-private partnership (PPP) law and the Law on concessions, to further align the 

legal framework in these areas with the EU acquis; 

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→  increase the use of MEAT criteria for the award of contracts and improve the monitoring of public 
procurement procedures through reporting on and the follow-up of irregularities, cases of conflict 
of interest and fraudulent practices; 

→  improve coordination among key stakeholders to fight corruption and strengthen their capacities 
to  implement  the  principles  of  transparency,  free  competition,  equal  treatment  and  non-
discrimination. 

Chapter 18: Statistics 

The country is between a moderate and a good level of preparation in the area of statistics. Some 
progress  was  made,  mainly  in  area  of  statistical  infrastructure,  business  and  trade  and  financial 
accounts statistics. 

The Commission’s recommendations from last year were not fully implemented and  remain largely 
valid. In the coming year, North Macedonia should in particular: 

→  conduct the agriculture census; 

→  ensure adequate staffing and sufficient financial resources for the State Statistical Office; 

→  continue  to  improve  macroeconomic  statistics,  notably  by  establishing  transparency,  enhancing 
consistency, timeliness and coverage of the excessive deficit procedure and government finance 
statistics  and  by  further  aligning  financial  accounts  and  quarterly  national  accounts  with  the 
European System of Accounts 2010 (ESA 2010). 

Chapter 32: Financial control 

The country is moderately prepared in the area of financial control and has made limited progress. 
Public  internal  financial  controls  (PIFC)  and  managerial  accountability  reforms  are  delayed  due  to 
substantial  delays  in  the  adoption  of  the  PIFC  law,  which  is  still  in  Parliamentary  procedure  after 
more than 3 years. The institutional capacity of the financial inspection needs to be strengthened. The 
independence of the State Audit Office (SAO) is still not guaranteed by the Constitution and the State 
audit law is pending government adoption. The efficiency of Parliamentary oversight of public funds 
and follow-up of audit recommendations needs to improve. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain valid. In the coming year, North Macedonia should in particular: 

→  adopt and start implementing the new PIFC law in order to strengthen the institutional capacity of 

internal audit units, managerial accountability and sound financial management; 

→  adopt  the  State  audit  law  to  strengthen  SAO’s  independence,  enhance  cooperation  between  the 
SAO  and  the  Parliament,  improve  Parliamentary  scrutiny  over  individual  audit  reports,  and  the 
follow-up to SAO’s recommendations; 

→  ensure  the  efficient  functioning  of  the  Anti-Fraud  Coordination  Service  Network  (AFCOS)  and 

improve the prevention, management and reporting of irregularities that affect EU funds. 

CLUSTER 2: INTERNAL MARKET 

Chapter 1: Free movement of goods 

North  Macedonia  is  moderately  prepared  on  the  free  movement  of  goods.  While  the  national 
legislation  allows  goods  to  enter  EU  market,  full  alignment  with  the  latest  EU  acquis  is  yet  to  be 
achieved. No progress was made in the reporting period.  

The Commission’s recommendations from last year were not fully implemented and therefore remain 
valid. In the coming year, North Macedonia should in particular: 

9 

 
 
 
→  adopt the Law on market surveillance and the implementing legislation necessary to complete the 

alignment with the EU General Products Safety Directive; 

→  Adopt  a  new  strategy  for  the  free  movement  of  goods,  which  should  include  foreseeing  a 
significantly increase in human resources for legal and policy development and implementation; 

→  adopt a new action plan to eliminate the non-tariff barriers to trade and ensure compliance with 

Articles 34-36 of the Treaty on Functioning of the European Union.  

Chapter 2: Freedom of movement for workers 

North Macedonia is at an early stage of preparation on freedom of movement for workers, and no 
progress was made in this area. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  therefore  remain 
largely valid. In the coming year, North Macedonia should in particular: 

→  strengthen  the  capacity  of  the  Employment  Service  Agency,  by  continuing  to  organise  training 
activities, and further align legislation and the exchange of good practices, in line with EURES 
and ELA regulations; 

→  continue  to  adapt  the  legal  framework  to  the  EU  acquis  on  access  to  the  labour  market, 
particularly  to  rules  on  non-discrimination  on  grounds  of  nationality  against  EU  workers  in  all 
sectors; 

→  continue  to  negotiate  and  conclude  bilateral  agreements  on  social  security  coordination  and 
healthcare insurance with EU Member States and put in place administrative measures to prepare 
for accession. 

Chapter 3: Right of establishment and freedom to provide services 

On the right of establishment and the freedom to provide services, North Macedonia is  moderately 
prepared. It made limited progress in continuing to align the sectoral legislation with the Services 
Directive. 

The Commission’s recommendations from last year were partially implemented and therefore remain 
valid. In the coming year, North Macedonia should in particular: 

→  continue  the  implementation  of  the  2024-2026  action  plan  to  address  non-compliance  of  listed 

sectoral laws with the Law on services; 

→  finalise alignment with the EU acquis on postal services and ensure sufficient capacity to monitor 

and enforce the new postal market rules; 

→  align  with  the  EU  acquis  on  mutual  recognition  of  professional  qualifications,  in  particular  the 
Directive  on  recognition  of  professional  qualifications  and  Directive  on  a  proportionality  test 
before adoption of the new regulation of professions. 

Chapter 4: Free movement of capital 

North Macedonia is moderately prepared in the area of free movement of capital. Limited progress 
was  made  in  the  area  of  payment  systems  and  the  fight  against  money  laundering  and  terrorist 
financing (AML/CTF). 

The Commission's recommendations from last year were not fully implemented and therefore remain 
valid. In the coming year, North Macedonia should in particular: 

→  adopt and implement the roadmap setting out actions and timelines for applying EU rules on the 

free movement of capital, including the acquisition of agricultural land; 

10 

 
 
→  continue to implement the Law on payment systems and services to help roll out a broader set of 
high-quality  and  secure  payment  services,  including  by  accelerating  the  set-up  of  the  unified 
register of bank accounts; 

→  continue to implement the new legislation on the prevention of money laundering and financing 
of  terrorism  in  line  with  the  EU  acquis,  including  by  following  up  on  the  country’s 
MONEYVAL assessment of 2023. 

Chapter 6: Company law 

The country has a good level of preparation in the area of company law. However, no progress was 
made during the reporting period. The country needs to step up efforts to align its legislation with the 
EU acquis in this area. 

The Commission’s recommendations from last year were not met and therefore remain valid. In the 
coming year, North Macedonia should in particular: 

→ 

→ 

→ 

align national legislation with the acquis on encouraging long-term shareholder engagement,  

align national legislation with directives on cross-border conversions, mergers and divisions and 
on the use of digital tools and processes in company law; 

adopt legislation on accounting and on audit, aligned with the latest EU acquis in these areas, 
including to strengthen the role and capacity of the Council for Advancement and Oversight of 
Audit. 

Chapter 7: Intellectual property law 

North Macedonia remains moderately prepared in the area of intellectual property law. No progress 
was made. Further efforts are needed to align the legislation with the EU acquis in this area. 

The Commission’s recommendations from last year were not met and therefore remain valid. In the 
coming year, North Macedonia should in particular: 

→ 

→ 

→ 

→ 

further improve the legal framework on copyright and related rights, notably by aligning with 
the Directive on collective rights management, the Directive on orphan works, as well as with 
the  Directives  on  online  transmissions  of  broadcasting  organisations  and  retransmissions  of 
television and radio programmes (SatCab II) and on Digital Single Market (DSM); 

further improve the legal framework on industrial property rights, by aligning with the Directive 
on the enforcement of intellectual property rights and with the Directive on trade secrets; 

implement  the  2021-2026  intellectual  property  strategy  and  make  operational  the  online 
information platform for law enforcement institutions to exchange data on intellectual property 
rights; 

leverage  collaboration  with  the  European  Union  Intellectual  Property  Office  especially  in  the 
area of technical and operation support of acquis alignment and enforcement. 

Chapter 8: Competition policy 

The country is moderately prepared in the area of competition. No progress was made. 

The Commission’s recommendations from last year were not met and therefore remain valid. In the 
coming year, North Macedonia should in particular: 

→ 

→ 

→ 

further align the legislative framework, in particular the implementing legislation in the area of 
State aid and antitrust, with the EU acquis; 

ensure full transparency of State aid granted by the authorities; 

strengthen the administrative and financial capacity of the national competition authority. 

11 

 
 
Chapter 9: Financial services 

The country is moderately prepared in the area of financial services. There was some progress. A 
bank recovery and resolution law was enacted which appointed a bank resolution authority. Two key 
pieces of legislation, the Law on financial instruments and the Law on prospectus and transparency of 
securities’ issuers were also adopted, completing alignment with the Settlement Finality Directive. 

The Commission’s recommendations from last year were not fully implemented and therefore remain 
largely valid. In the coming year, North Macedonia should in particular: 

→   continue to align the banking regulation with the revised versions of the Capital Requirements 
Regulation,  the  Capital  Requirements  Directive  (CRR/CRD)  and  the  Bank  Recovery  and 
Resolution Directive (BRRD); 

→  align with the Solvency II Directive, notably pillar 1 and pillar 3 of that Directive; 

→  step  up  implementation  of  the  legislation  regulating  capital  markets,  notably  by  adopting 
implementing legislation for the Law on financial instruments and the Law on prospectuses and 
transparency of security issuers as well as the law on alternative investment funds, and continue 
efforts to align with the financial market infrastructures acquis. 

Chapter 28: Consumer and health protection 

In  the  area  of  consumer  and  health  protection  North  Macedonia  remains  moderately  prepared. 
Limited progress was made on cancer screening. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain valid. In the coming year, North Macedonia should in particular: 

→  adopt the 2025-2028 consumer protection strategy, set up a web platform to inform the public on 

consumer issues, and strengthen market surveillance capacity; 

→  ensure effective tobacco control by implementing the relevant EU acquis and ratify the Protocol 
to Eliminate Illicit Trade in Tobacco Products, and complete  alignment with the EU  acquis on 
medicines for human use and medicines for veterinary use; 

→  increase funding and human resources in the area of health, particularly for cancer detection and 

the treatment of rare diseases, based on data from the respective registers. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

Chapter 10: Digital transformation and media 

The  country  is  moderately  prepared  in  the  area  of  digital  transformation  and  media.  Limited 
progress  was  made,  notably  a  slight  increase  in  electronic  services  available  to  citizens  and 
businesses,  and  the  adoption  of  rulebooks  aimed  at  reducing  the  cost  of  deploying  high-speed 
networks. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain largely valid. In the coming year, North Macedonia should in particular: 

→  finalise  and  adopt  the  long-term  information  and  communication  technology  (ICT)  strategy; 
finalise and adopt the national cybersecurity strategy; align national legislation with the European 
Electronic Communications Code, the EU Broadband Cost Reduction Directive; the EU Directive 
on  security  of  network  and  information  systems  (NIS  2  Directive)  and  the  5G  cybersecurity 
toolbox; 

→  strengthen the independence and capacity of the media regulator, the Public Service Broadcaster 

and the regulator on electronic communication; 

12 

 
 
 
→  improve  the  functioning  of  the  112  emergency  number  by  ensuring  adequate  human  resources 

and improve communication among the emergency services. 

Chapter 16: Taxation 

North Macedonia remains moderately prepared in the area of taxation. Limited progress was made, 
specifically by reducing the administrative burden for taxpayers and setting up a reform management 
office to support the reform agenda of the Public Revenue Office (PRO). 

The Commission’s recommendations from last year were not fully implemented and therefore remain 
largely valid. In the coming year, North Macedonia should in particular: 

→  develop  a  new  integrated  IT  tax  system  for the  PRO,  improve  its  compliance  risk  management 

and step up the strategic reform process of the PRO; 

→  start  preparations  for  putting  in  place  a  mechanism  for  the  effective  implementation  of  the 
automatic  exchange  of  tax  information  with  EU  Member  States  in  line  with  the  OECD  Global 
Standard. 

→  start the preparations towards achieving interconnection and interoperability with the EU taxation 

IT systems. 

Chapter 17: Economic and monetary policy 

The country is between a moderate and a good level of preparation in the area of economic and 
monetary policy and some progress was made. A prudent monetary policy helped contain inflation. 
Last  year’s  recommendations  were  partly  implemented  by  appointing  Members  of  the  Fiscal 
Council and steps were taken to ensure the independence of the central bank, notably by revising the 
legal framework setting out employment conditions for its personnel. 

The Commission’s recommendations from last year were only partially implemented and therefore 
remain largely valid. In the coming year, North Macedonia should in particular: 

→  ensure the organic budget law (OBL) is fully implemented by 2025, by adopting the necessary 
implementing  legislation,  in  particular  on  budget  classification  and  on  the  statement  on  fiscal 
policy; and by updating the manual on macro-fiscal projections; 

→   strengthen the central bank's independence; adopt the pending laws on administrative servants 
and the Law on public sector employees and take the measures necessary for the enforcement 
and operationalisation of the macroprudential and resolution frameworks by the central bank. 

Chapter 19: Social policy and employment 

The  country  remains  moderately  prepared  in  the  area  of  social  policy  and  employment.  Some 
progress  was  made  by  further  reducing  the  unemployment  rate  and  increasing  social  assistance 
benefits.  The  countrywide  implementation  of  the  Youth  Guarantee  Scheme  continued.  The  poverty 
rate decreased but remains significantly high. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain largely valid. In the coming year, North Macedonia should in particular: 

→  continue  to  implement  labour  market  activation  strategies  for  young  people,  the  long-term 
unemployed  and  low-skilled  individuals,  as  well  as  for  women,  persons  with  disabilities,  and 
Roma, and ensure that these measures are properly evaluated; 

→  increase the capacity of the State Labour Inspectorate to tackle issues pertaining to occupational 
safety  and  health,  set  up  a  system  to  monitor  work-related  injuries  and  deaths,  and  strengthen 
bipartite social dialogue between employers and workers; 

13 

 
 
→  set  up  a  monitoring  and  evaluation  framework  for  social  services  and  advance  the  social 
protection  reform,  creating  stronger  connections  to  employment  activation  initiatives  and 
strengthen the social dialogue. 

Chapter 20: Enterprise and industrial policy 

The country has between a moderate and a good level of preparation in the area of enterprise and 
industrial policy.  Some progress  was made. The plan to consolidate the institutional structures and 
mandates of public bodies and the export promotion strategy were adopted, and a set of measures to 
implement the strategy on the formalisation of the informal economy were introduced.  

The Commission’s recommendations from last year were implemented to some extent. In the coming 
year, North Macedonia should in particular: 

→  implement the plan for the consolidation of the institutional structure and the mandates of public 

bodies; 

→  adopt the strategy for the development of small and medium-sized companies (SMEs), and boost 
export  readiness  and  the  integration  of  companies  in  supply  chains  by  stepping  up  efforts  to 
implement the export promotion strategy; 

→   improve  the  process  of  consulting  enterprises  during  the  preparation  of  measures  and  of 

informing them with sufficient lead time about implementation conditions. 

Chapter 25: Science and research 

The country has a good level of preparation in the area of science and research. Some progress was 
made, notably by adopting the smart specialisation strategy for 2024-2027, setting up the European 
Institute  of  Innovation  and  Technology  regional  innovation  scheme  (EIT  RIS),  and  continuing  to 
participate in Horizon Europe. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain valid. In the coming year, North Macedonia should in particular: 

→  increase the efficiency of State resources for science and research in line with the new European 

Research Area priorities; 

→  promote and increase participation in Horizon Europe; 

→  step up the design and implementation of measures included in the smart specialisation strategy. 

Chapter 26: Education and culture 

North  Macedonia  is  moderately  prepared  in  the  area  of  education  and  culture.  Limited  progress 
was made. Work on the 2018-2025 education strategy and on developing a proper monitoring system 
continued to be slow. The adoption of key legislation such as the Law on secondary education, the 
Law on adult education and the Law on vocational education and training (VET) was delayed. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain largely valid. In the coming year, North Macedonia should in particular: 

→  adopt the  Laws  on  secondary  education,  on adult education and  on  VET,  as  well  as the related 
implementing legislation, and continue to set up and operationalise the regional VET centres; 

→  improve access to quality education for all, in particular for children with disabilities and children 
from  Roma  communities;  further  develop  teachers’  skills  and  invest  in  their  continuous 
professional development; 

→  optimise the school network; adopt and apply the new formulas for financing primary education; 

complete and apply similar formulas for secondary, VET and higher education. 

14 

 
 
Chapter 29: Customs union 

North Macedonia has a good level of preparation in this area. Limited progress was made on the 
consolidation  and  upgrade  of  IT  systems.  The  customs  administration  implements  a  fully  paperless 
environment for processing customs declarations and excise documents. 

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, North Macedonia should in particular: 

→  upgrade its national component of the New Computerised Transit System (NCTS) to Phase 5; 

→  ensure  continued  alignment  of  the  customs  legislation  with  the  EU  acquis  and  continue  the 
consolidation  and  application  of its national customs IT  systems in line  with  the  Commission’s 
Union Customs Code (UCC) Work Programme and multiannual strategic plan (MASP) modules, 
and ensure their upgrade; 

→  ratify the Protocol on Elimination of Illicit Trade in Tobacco Products. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY 

Chapter 14: Transport policy 

The  country  is  moderately  prepared  in  the  area  of  transport.  Some  progress  was  made  in  the 
reporting period, notably by adopting the new Law on aviation. The sector inspection bodies still lack 
administrative and operational capacity to improve. 

The Commission's recommendations from last year were not fully implemented and therefore remain 
largely valid. In the coming year, North Macedonia should in particular: 

→  ensure qualified operational and administrative capacity of the inspection bodies and develop their 

enforcement capacity to reduce accidents and fatalities in road and rail transport; 

→  implement the connectivity reform measures for road and rail and finalise pending border-crossing 

agreements/protocols to facilitate the flow of traffic and goods; 

→  adopt  and  implement  legislation  on  multimodal  and  intelligent  transport  systems  (ITS)  for  road 

and rail and on electronic freight transport information . 

Chapter 15: Energy  

North  Macedonia  is  moderately  prepared  in  the  area  of  energy.  Some  progress  was  made  on 
renewable  energy,  with  investments  in  solar  power  plants  and  in  regional  gas  interconnectors.  The 
country needs to accelerate its transition towards green energy and reduce its dependence on coal and 
gas. 

The Commission’s recommendations from last year were not fully implemented and therefore remain 
largely valid. In the coming year, North Macedonia should in particular: 

→  implement  the  Just  Transition  roadmap,  in  particular  to  make  the  governance  mechanisms 

planned in the roadmap fully operational; 

→  ensure sufficient human resources and institutional capacities for the newly established Ministry 

in charge of Energy; 

→  adopt  and  start  implementing  the  necessary  legislation  on  the  energy  market,  renewable  energy 

and energy efficiency, in line with the relevant EU directives. 

Chapter 21: Trans-European networks 

North Macedonia has a good level of preparation in the area of trans-European networks. Limited 
progress was made during the reporting period.  

15 

 
 
 
The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, North Macedonia should in particular: 

→  strengthen  the  operational and technical  capacity  of all  management  and  stakeholder institutions 
dealing with the development of both the Trans-European Transport (TEN-T) and Trans-European 
Energy  (TEN-E)  networks,  harmonise  the  legal  framework  and  increase  compliance  with  the 
Trans-European Network Regulation; 

→  mobilise  sufficient  resources  to  implement    the  goals  and  deadlines  set  out  in  the  Transport 

Community’s five-year rolling work plan for the development of the TEN-T extension  ; 

→  make the Railway Border-Crossing Protocol signed with Kosovo operational, finalise the mutual 
agreement  for  border  crossings  procedures  with  Greece,  and  accelerate  progress  on  the 
construction and completion of the rail connection along Corridor VIII with Bulgaria. 

Chapter 27: Environment and climate change 

North Macedonia has some level of preparation in this area. Limited progress was made during the 
reporting  period,  notably  in  the  area  of  waste  management,  by  adopting  a  law  on  expanding  the 
producer’ s responsibility. Further efforts on implementation and enforcement are still needed in all 
sectors , in particular, in climate change where no progress was made. The country is encouraged to 
enhance  its  civil  protection  operational  capacity  and  coordination  with  the  Union  Civil  Protection 
Mechanism.  

The Commission’s recommendations from last year were not fully addressed and remain valid. In the 
coming year, North Macedonia should, in particular: 

→  strengthen its administrative and inspection capacities for implementation and enforcement of the 
environmental  acquis  significantly,  implement  structural  reforms  in  all  sectors  and  ensure  that 
there  is  there  an  institutional  structure  in  place  to  deliver  coordinated,  strategic  planning  for 
environmental investments;  

→  make the regional waste management system in the Eastern and Northeastern regions operational;  

→  adopt  the  Law  on  climate  change,  consistent  with  the  EU  2030  framework,  implement  the 
National  Energy  and  Climate  Plan  (NECP)    and    the  Energy  Community's  Decarbonisation 
Roadmap,  focusing  on  the  MRVA  package  to  introduce  carbon  pricing  and  align  with  the  EU 
ETS and  make the climate change unit within the Ministry of Environment and Physical Planning 
operational. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

Chapter 11: Agriculture and rural development 

North  Macedonia  remains  moderately  prepared  in  the  area  of  agriculture  and  rural  development. 
Good  progress  was  made  during  the  reporting  period,  notably  by  adopting  the  Law  on  advisory 
services and by making progress on IPARD II and IPARD III implementation. 

The  Commission’s  recommendations  from  last  year  's  report  were  not  fully  implemented  and 
therefore remain largely valid. In the coming year, North Macedonia should in particular: 

→  adopt legislation to further align with the EU acquis in the areas of agriculture support payments, 

common market organisation, quality policy and organic farming; 

→  ensure the inter-operability of various elements from IACS together with the verification of data 
accuracy and transfer of the farm register and the land parcel identification system (LPIS) to the 
paying agency; 

16 

 
 
 
→  improve  the  administrative  capacity  in  the  instrument  for  pre-accession  assistance  for  rural 
development  (IPARD)  operating  structures  to  ensure  robust  implementation  of  the  IPARD  III 
programme. 

Chapter 12: Food safety, veterinary and phytosanitary policy 

North  Macedonia  has  a  good  level  of  preparation  in  the  areas  of  food  safety,  and  veterinary  and 
phytosanitary  policy.  Some  progress  was  made  over  the  reporting  period,  particularly  in  fighting 
animal  diseases,  plant  health  control  and  implementing  pest  eradication  measures  based  on 
phytosanitary monitoring programmes results. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, North Macedonia should in particular: 

→  adopt  the  draft  law  on  official  controls  and  the  new  Law  on  animal  health  and  continue  to 

approximate national rules with EU animal welfare legislation; 

→  strengthen  capacity  for  data  analysis  and  improve  structures  for  implementation  of  the  General 

Food Law Regulation in the Food and Veterinary Agency; 

→  implement measures on the sustainable use of pesticides. 

Chapter 13: Fisheries and aquaculture 

North Macedonia is moderately prepared in the area of fisheries and aquaculture.  Good progress 
was made during the reporting period, with the adoption of the new Law for aquaculture and fisheries 
in line with the EU acquis on marketing standards, structural measures and State aid, but also setting 
the basic provisions in line with the EU Eel Regulation.  

The Commission’s recommendations from last year not fully implemented and remain largely valid. 
In the coming year, North Macedonia should in particular: 

→  adopt  the  implementing  legislation  on  marketing  standards,  consumer  information,  traceability, 

and producer’s organisations as well as a national strategic plan on aquaculture; 

→  improve  the  data  collection  system  and  reporting,  such  as  by  setting  up  a  data  framework  for 
collecting data on fisheries and aquaculture, and including information on catches of European eel 
both in recreational and in commercial fishing as well as an analysis of its consequences;  

→  improve the controls of fish stock management and of illegal, unreported and unregulated (IUU) 

fishing by introducing a catch certification system. 

Chapter 22: Regional policy and coordination of structural instruments 

North  Macedonia  is  moderately  prepared  in  the  area  of  regional  policy  and  coordination  of 
structural instruments. Limited progress was made over the reporting period. 

The Commission’s recommendations from last year were partially implemented and therefore remain 
largely valid. In the coming year, North Macedonia should in particular: 

→  upgrade its institutional, administrative and technical capacity to manage EU funds by adopting 
an  overall  staff  retention  policy,  strengthening  capacities,  improving  the  implementation  of  EU 
and audit recommendations, and stepping up interinstitutional cooperation; 

→  strengthen public investment by adopting the Decree on public investment management and the 

Law on public-private partnerships; 

→  accelerate  the  decentralisation  process  by  putting  in  place  a  credible  financing  framework  for 

municipalities and strengthening policy dialogue on regional development. 

Chapter 33: Financial and budgetary provisions 

17 

 
 
Preparations under this chapter are at an early stage. Limited progress was made over the reporting 
period. National accounts and gross national income calculations need to be further aligned with the 
EU  acquis.  All  Customs  declarations  and  excise  documents  are  electronically  processed,  but  the 
institutional  set-up  necessary  for  the  efficient  functioning  of  the  own  resources  system  is  yet  to  be 
established. 

The Commission’s recommendations from last year were not fully implemented and therefore remain 
largely valid. In the coming year, North Macedonia should in particular: 

→  improve the legal basis and methodological tools for the own resources system; 

→  continue  aligning  data  on  national  accounts  with  ESA  2010  and 

improving 

the 

comprehensiveness of data transmission to Eurostat; 

→  strengthen the administrative capacities of and coordination mechanisms for key stakeholders in 

the system. 

CLUSTER 6: EXTERNAL RELATIONS 

Chapter 30: External relations 

The  country  has  a  good  level  of  preparation  in  the  area  of  external  relations  and  made  limited 
progress  during  the  reporting  period,  in  particular  in  implementing  the  CEFTA  protocols  and  in 
efforts to develop its export control system. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  therefore 
remain largely valid. In the coming year, North Macedonia should in particular: 

→  put  in  place  a  legal  framework  on  international  cooperation  and  development  policy,  and 

humanitarian aid for non-EU countries, in line with EU policies and principles; 

→  continue to implement commitments under the CRM Action Plan for 2021-2024 and implement 
actions under the new action plan for 2025-2028, further implement CEFTA Protocol 6 on trade 
in services, and take the necessary steps to implement CEFTA Protocol 7 on dispute settlement. 

Chapter 31: Foreign, security and defence policy 

North  Macedonia  has  a  good  level  of  preparation  in  the  area  of  common  foreign,  security  and 
defence policy. Good progress  was made as the country maintained its track record of full alignment 
with  relevant  High  Representative  statements  on  behalf  of  the  EU  and  relevant  Council  Decisions, 
including  EU  restrictive  measures  related  to  Russia’s  war  of  aggression  against  Ukraine.  North 
Macedonia  continued  to  participate  in  EU  crisis management missions  and  operations.  The  country  
initiated negotiations on a Security and Defence Partnership with the EU in spring 2024. 

The recommendations from last year were to a great extent implemented and remain partially valid. In 
the coming year, North Macedonia should in particular: 

→  maintain full alignment with the EU common foreign and security policy; 

→  continue to strengthen its capacity to implement and enforce the sanctions in place; 

→  make additional efforts to align legislation in the area of small arms and light weapons. 

1.3. STATE OF PLAY OF THE ACCESSION NEGOTIATIONS 

Following the  first  Intergovernmental  Conference  on  accession negotiations  with  North  Macedonia, 
the Commission immediately launched the analytical examination of the EU acquis – the ‘screening’ 
process.  After  tabling  the  screening  report  on  cluster  1  in  July  2023,  in  the  autumn  of  2023  the 
Council outlined to North Macedonia the terms for opening accession negotiations on the first cluster 

18 

 
 
 
 
(fundamentals) once the constitutional amendments are adopted. In response, the government adopted 
the roadmaps on the rule of law and on public administration reform. The adoption of the action plan 
on the protection of minorities is still pending. The screening reports on cluster  – 2 internal market 
was presented to the Council in May 2024, followed by the screening reports on cluster 6 – external 
relations and cluster 3 – competitiveness and inclusive growth in October 2024.  

   

19 

 
 
 
 
 
 
2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM 

2.1.1 Democracy 

The functioning of democratic institutions is mostly satisfactory. The situation was polarised during 
the period preceding the elections of April and May 2024. 

Elections 

The first round of the presidential elections took place on 24 April and the second round on 8 May. 
The parliamentary elections also took place on 8 May. According to the findings and conclusions of 
the OSCE’s ODIHR, the parliamentary and presidential elections were competitive, and fundamental 
freedoms  were  respected.  The  election  legislation  provides  a  suitable  framework  for  holding 
democratic elections. However, campaign rules, access to the media and distribution of State funding 
are  not  adequately  regulated.  Persisting  inconsistencies,  gaps,  and  ambiguities  compromised  legal 
certainty and merit a revision of the Electoral Code. 

80

60

40

38

46

80

120

100

120

100

140

key 

elections, 

Graph 1: North Macedonia - Women in political life

Only  a  few  weeks  ahead 
the 
of 
the 
Parliament 
adopted 
several amendments to the 
in  an 
Electoral  Code 
expedited 
fast-track 
procedure.  However,  they 
did  not  address  a  number 
of 
outstanding 
recommendations  by  the 
ODIHR  and  the  Council 
Europe’s  Venice 
of 
Commission  or  by  an 
working 
inter-agency 
group  set  up  by 
the 
Ministry  of  Justice  in  May  2023.  Such  recommendations  included:  (i)  revising  the  Electoral  Code 
through  inclusive  consultations;  (ii)  adopting  measures  to  increase  transparency  on  party  and 
campaign financing; (iii) revising the regulations on the apportioning of paid political advertisement; 
(iv) laying down clear tenure and appointment procedures for State Election Commissioners; and (v) 
eliminating restrictions that impede effective electoral dispute resolution. 

Source: Parliament, Government, Ministry of Interior

Number of party
leaders

Number of
ministers

Number of MPs

2,40
2

Women

n/a: not available

Mayors

Total

40

60

15

81

20

20

20

%

n/a

n/a

n/a

3

0

0

Parliament 

The 10th legislature of the Parliament, which ended in May, was the first since 2006 to complete its 4-
year  mandate.  The  new  Parliament  was  constituted  and  the  Speaker  was  elected  on  28  May.  Its 
working bodies, some with competences adjusted to newly-established or restructured ministries, and 
delegations  were  set  up  in  July.  A  new  Committee  for  Monitoring  Equitable  Representation  of 
Citizens  belonging  to  all  Communities  was  established  in  August.  An  Inter-Party  Group  on  Anti-
Corruption was established in July. The Speaker survived a no confidence motion on 3 September.   

In  November  2023,  the  Parliament  adopted  new  rules  of  procedure  based  on  a  high  degree  of 
consensus,  fulfilling  the  main  commitment  of  the  ‘Jean  Monnet  Dialogue’  process.  A  spirit  of 
consensus prevailed for the adoption of the 2024 annual programme and the financial and investment 
plan of the Parliament’s own TV information channel. All parties supported the Law on the national 
development strategy. The midterm evaluation of the Parliament's Gender Action Plan for 2022-2024 
confirmed that the measures were implemented successfully. Nine inter-party groups continued their 
active work as did the Committee on Inter-Ethnic Relations. In August, the new Parliament adopted 
its 2025-2029 Strategic Plan. 

20 

 
 
The necessary two-thirds majority was not achieved in Parliament to adopt the proposal to amend the 
Constitution  to  include  six  further  communities  in  the  preamble  and  in  two  articles  of  the 
Constitution,  namely  Bulgarian  people,  Croatian  people,  Montenegrin  people,  Slovenian  people, 
Jewish  people,  and  Egyptian  people.  During  the  10th  legislature,  no  consensus  was  reached  on  the 
adoption of important laws regulating public administration reform, or on improving the status of the 
Ombudsman's  Office.  The  then  opposition  party  VMRO-DPMNE  proposed  or  supported  several 
legislative  proposals  and  at  times  ensured  a  quorum,  whereas  the  ethnic  Albanian  opposition 
boycotted  several  plenary  sessions  in  protest  against  the  delayed  election  of  a  new  member  of  the 
State Election Commission.  

Parliamentary  oversight  of  the  executive  continued,  with  monthly  sessions  for  parliamentary 
questions. The outgoing Parliament held three public hearings. The Parliament elected two judges of 
the  Constitutional  Court, the  Chief  Prosecutor, members  of the  Anti-discrimination  Commission,  of 
the Competition Commission, and of the Agency for Electronic Communications.  

The law-making process saw an increase in the use of shortened procedures including for draft laws 
proposed  by  the  Members  of  Parliament  of  the  10th  legislature.  The  opposition  criticised  the 
government  and  voted  against  the  inappropriate  use  of  the  fast-track  ‘EU  flag’  procedure  for 
proposals not related to aligning legislation with the EU acquis. The use of the ‘EU flag’ procedure 
must be consistent, linked to laws aimed primarily at aligning national law with the EU  acquis and 
based  on  comprehensive  consultations,  including  with  the  European  Commission.  The  use  of 
shortened procedures should be limited. (See 2.1.2. Public administration reform) 

EU integration 

The  new  government  established  a  Ministry  of  European  Affairs,  led  by  a  Minister  for  European 
Affairs.  Previously,  the  Secretariat  for  European  Affairs,  led  by  the  Deputy  Prime  Minister  for 
European  Affairs,  successfully  coordinated  the  work  of  the  State  administrative  and  other  bodies 
during the screening process, which was completed in December. However, the Secretariat lacked the 
resources  necessary  to  cope  with  the  challenges  related  to  the  EU  integration  process.  The  EU 
directorate in the Ministry of Foreign Affairs assists in coordinating relations with EU institutions. A 
similar structure exists in Parliament with the National Council for EU Integration, and the Committee 
on European Affairs. The respective competences of these two bodies  should be better defined. The 
Stabilisation and Association Agreement bodies meet regularly. 

No  monitoring  reports  were  produced  on  the  implementation  of  the  latest  National  plan  for  the 
adoption of the EU acquis (NPAA) adopted in June 2021. The NPAA should be fully aligned with the 
government  annual  and  institutional  work  plans.  The  government  communicated  regularly  to  the 
public about the screening process and more generally about the EU integration process. 

Governance 

A  caretaker  government,  tasked  with  organising  the  elections,  supported  by  65  Members  of 
Parliament, took office on 28 January. 

On  23 June  2024,  Parliament  approved  the  new  government  coalition  comprised  of  VMRO-
DPMNE5, VLEN6 and ZNAM7, with 77 Members of Parliament voting in favour, 22 against and no 
abstentions. The DUI8-led European Front Members of Parliament did not take part in the vote. The 
government is composed of five deputy prime ministers and 18 ministers. The newly established or 
restructured ministries became operational by September 2024. No progress was made on the reform 
of  the  local  self-government.  The  delayed  review  of  the  decentralisation  system,  combined  with 
economic challenges experienced by municipalities, have had a negative impact on the quality of local 

5Internal Macedonian Revolutionary Organisation - Democratic Party for Macedonian National Unity. 
6Political coalition formed by various political parties representing the ethnic Albanian community.  
7For Our Macedonia. 
8Democratic Union for Integration. 

21 

 
 
 
services. The new government should urgently and actively relaunch the dialogue between different 
governance  levels  to  improve  the  regulatory  and  financial  framework  in  line  with  the  2021-2026 
programme for sustainable local development and decentralisation and its action plan for 2024-2026. 
Efforts to build a sustainable and predictable financial foundation for local self-governments should 
continue. 

The  inter-ethnic  situation  remained  stable  overall.  The  2001  Ohrid  Framework  Agreement,  which 
fosters the multi-ethnic character of the society, continued to be implemented. 

Civil society 

CSOs continue to operate in an overall enabling environment and have the opportunity to be informed 
about and participate in the Council for Cooperation between the Government and Civil Society, the 
National Council for EU Integration and the Council for Open Government Partnership. There is an 
urgent need to develop a consistent approach to involving CSOs in policymaking at national and local 
levels,  and  to  rebuild  trust  and  cooperation  between  stakeholders  and  reactivate  this  important 
channel. 

Along with transparency on State funding to CSOs, the proper implementation of the existing legal 
and financial frameworks requires a clear institutional set-up for cooperation with civil society, and 
implementation  and monitoring  of the  government  strategy for  cooperation  with  civil  society  2022-
2024. 

Civilian oversight of the security and intelligence sector 

The parliamentary committees overseeing the security and intelligence services held meetings in line 
with their respective responsibilities. All vacant positions of the Special Department for investigation 
and prosecution of crimes committed by persons with police powers and members of the prison police 
have to be filled. The composition of the Civil Control Mechanism within the Ombudsman’s Office 
has  been  completed  with  selected  representatives  of  civil  associations.  To  enable  the  proper 
functioning  of  the  mechanism,  adequate  financial  resources,  equipment,  and  offices  have  to  be 
provided.  Although  the  Law  on  interception  of  communication  was  amended  in  July  2023,  the 
configuration  of  the  Council for  Civilian  Supervision has  not  yet  been  completed  with the required 
technical experts. The Council has therefore not been operational. 

2.1.2. Public administration reform 

Strategic framework for public administration reform 

The strategic framework for public administration is in place. The quality of the public administration 
reform (PAR) strategy is broadly satisfactory while its effectiveness is very limited due to very slow 
implementation. 

The  2023-2030  public  administration  strategy  and  the  related  action  plan  for  2023-2026  were 
adopted in July 2023. The quality and the scope of the strategy is adequate. It covers all key reform 
areas,  sets  out  a  clear  baseline  and  clear  objectives  and  targets,  and  identifies  policy  challenges. 
Political  support,  leadership,  supervision,  and  management  of  PAR  reforms  across  the  government 
remained insufficient, which was further undermined by the weak coordination between the Ministry 
of  Information  Society  and  Administration  (MISA)  and  the  Ministry  of  Finance,  as  well  as  the 
frequent changes of MISA’s leadership. The new Ministry of Administration (MoA), established after 
the  reorganisation  of  MISA  in  early  July  2024  continues  to  lack  sufficient  human  resources  and 
political  leverage  to  drive  forward  the  reforms  at  the  technical  level.  Monitoring  and  management 
structures are not functioning fully and effectively. 

The  implementation  rate  of  PAR  and  PFM  measures  continues  to  be  low.  Monitoring  reports  are 
published very late. Only one-third of all costed activities of both strategies are estimated to be funded 
by the State budget. 

Policy development and coordination 

Policy development and coordination aspects are in place. 

22 

 
 
Further efforts are needed to clarify the responsibilities of policymaking institutions, to ensure their 
proper  functioning  and  streamline  reporting  lines,  including  strengthening  the  role  of  the  General 
Secretariat.  Evidence-based  policy  and  legislative  development  is  only  partially  ensured.  The 
quality and impact of regulatory impact assessments and public consultations are very limited. About 
half of all 123 laws enacted by the Parliament in 2023 were approved through shortened procedures. 
The use of the ‘EU flag’ procedure has not been consistent. In a number of cases, it was not linked to 
laws primarily aimed at aligning national legislation with the EU  acquis. Neither the Parliament nor 
the government have procedures in place for a systematic ex post evaluation of laws and policies. 

As regards  public scrutiny of government work, the annual work plan of the government and the 
annual  reports  are  not  publicly  available.  Only  around  40%  of  planned  items  in  the  government’s 
annual work plan for 2023 and only 22% of draft laws were implemented. The number of items added 
to the government session agendas at the last minute is high. The agendas of government sessions are 
not  made  public  prior  to  the  meetings.  Minutes  and  decisions  of  government  sessions  are  not 
systematically published online. 

Public financial management 

Public financial management is broadly in place but needs to be further improved. 

In  December  2023,  the  Ministry  of  Finance  carried  out  a  midterm  review  of  the  2022-2025  public 
finance management reform programme (PFMRP) and formulated a new reform programme covering 
2024-2027, not yet formally adopted by the government. The implementation rate of the 2022-2025 
PFMRP was quite low. The new 2024-2027 PFMRP is structured around eight pillars, covering the 
main weaknesses identified in international assessments. The institutional capacity of the Ministry of 
Finance  continues  to  be  limited,  as  it  faces  challenges  in  attracting  and  retaining  staff  with  the 
required skills and qualifications. 

The adoption of the implementing legislation accompanying the organic budget law and the setting up 
of  the  Integrated  Financial  Management  Information  System  (IFMIS)  have  been  substantially 
delayed.  There  was  some  progress  in  the  area  of  public  investment  management  (PIM)  with  the 
establishment  of  a  new  PIM  Department  in  the  Ministry  of  Finance.  Budget  credibility  has  been 
strengthened thanks to the Fiscal Council being set up and entering into operation, improvements to 
the fiscal strategy and better monitoring of fiscal risks. 

The  Organic  Budget  Law established  gender-responsive  budgeting as  a principle  and introduced  an 
obligation  for  budget  users  to  submit  a  gender  budget  statement  for  policies  with  potential  gender 
implications.  Nevertheless,  an  efficient  gender-responsive  budget  will  require  strengthening  policy 
discussions  during  budget  preparation,  further  developing  budget  classifications  and  expanding  the 
number of indicators disaggregated by gender. 

The Ministry of Finance continued its efforts to improve budget transparency by publishing data on 
the  revenue  and  expenditure  of  public  institutions,  local  government  authorities  and  State-owned 
companies on a quarterly basis. Budget transparency in North Macedonia continues to be limited, as 
indicated by the low score of 35 in the latest Open Budget Survey, well below the global average of 
45. The Ministry of Finance must invest further in increasing public participation at every phase of 
budget preparation, execution and reporting.  

Public service and human resources management 

Public service and human resources management remains insufficient. The politicisation of the public 
service  has  continuously  undermined  the  consistent  application  of  provisions  on  merit-based  and 
transparent processes and has further decreased trust in the administration and its work. The shift in 
governing structures after the May 2024 parliamentary elections did not bring any improvements in 
this regard as a number of middle management staff was replaced and many demoted. 
North Macedonia failed to adopt the long-awaited revised legislation on administrative servants and 
public sector employees. These laws aim at ensuring merit-based recruitment and fair promotions 
and dismissals. Since their adoption in 2014, the current civil service laws have undergone numerous 

23 

 
 
amendments, resulting in an inconsistent application. In addition, contradictory rules in sectoral laws 
have allowed certain employees to be excluded from the scope of the Law on administrative servants. 

Despite  the  existence  of  rules  on  the  conduct  of  performance  appraisal,  it  is  not  carried  out 
systematically  or  fit  for  purpose.  Transparency  on  the  grounds  for  dismissing  civil  servants  is 
insufficient, and no data is provided on dismissals of both managerial and non-managerial staff. The 
proper follow-up to the recommendations of the State Commission for Prevention of Corruption on 
improving  recruitment  procedures  has  not  yet  been  ensured.  The  administration  faces  serious 
challenges  to  attract  and  retain  qualified  trained  staff.  Sporadic  initiatives  to  raise  salaries  in  some 
ministries or bodies increased the fragmentation of the remuneration system, and in some cases were 
challenged by the Constitutional Court.  The continuous turnover of staff working on the management 
and implementation of EU funds undermines the effectiveness of these measures. Many senior rank 
positions continue to be filled by acting managers. A number of holders of management posts were 
replaced  before  expiration  of  their  mandate  and  replaced  with  acting  managers  after  the  May  2024 
parliamentary elections. The number of temporary and service contract employments continues to be 
high, without a system in place for monitoring their effective number and duration at the level of all 
institutions.  Most  institutions  now  use  the  human  resources  management  information  systems. 
According  to  the  State  auditor’s  reports,  a  number  of  public  service  employees  receive  a  salary 
despite not having a formal assignment and not having to show up for work. The Ministry of Political 
System  and  Relations  continued  to  recruit  staff  and  plans  to  deploy  the  new  recruits  to  various 
institutions. 

Women accounted for 56.8% of all public service employees according to the register of public sector 
employees. This does not include institutions such as the army and several law enforcement agencies. 
On  professional  development,  no  measures  were  taken  to  set  up  a  centralised  database  gathering 
information  on  all  training  provided.  Whistle-blower  legislation  is  satisfactory. No  information  was 
available on the protection of whistle-blowers in 2023. 

Accountability of administration 

The accountability of administration still needs to be improved. 

As  regards  accountability,  North  Macedonia  adopted  some  amendments  to  the  Law  on  State 
organisation  in  June  2024.  Progress  on  the  revision  of  the  law  should  continue  as  well  as  on  the 
overall  implementation  of  the  reform.  The  reorganisation  of  the  three  pilot  ministerial  systems  has 
been postponed several times since 2019 when the reform began.  A large number of bodies remain 
accountable to  the  Parliament,  but their  performance is  not  being  monitored in practice.  Delegating 
decision-making to middle management is still limited both at central and local levels of government. 

Legislation on citizens’ right to access public information is in place but responding to requests for 
public  information  and  proactive  disclosure  of  information  need  to  be  further  encouraged.  Less 
information  is  available  on  the  web-sites  of  the  state  institutions,  open  government  portal  has  not 
updated  the  information,  while  publication  of  government  meetings  and  agendas  incurs  significant 
delays. The Agency for Protection of Free Access to Public Information continued to process appeals 
promptly,  registering  some  increase  of  the  appeals  for  silence  of  the  administration.  Debate  in 
Parliament on Ombudsman and State Audit Office reports was very limited in 2023, and findings and 
recommendations  need  to  be  followed  up  more  systematically.  There  were  no  developments  on 
citizens’ rights to good administration. Although the legal framework is satisfactory, administrative 
disputes  continue  to  face  unreasonable  delays.  The  appeal  procedures  remain  complex  and  lengthy 
with most decisions based on procedural considerations and not on merit. The legislation lays down 
citizens’ rights to seek compensation and the liability of public authorities in cases of wrongdoing. 

Service delivery to citizens and businesses 

The service delivery to citizens and business needs to be further improved. 

The National e-Services Portal (https://uslugi.gov.mk/) is up and running. It provides information and 
practical  administrative  services  online  in  three  languages,  and  caters  to  people  with  special  needs. 
Although  the  portal  was  upgraded  with  only  a  few  new  electronic  services,  the  most  commonly 

24 

 
 
requested  services  are  not yet  available  online.  The  long-awaited  135  new  services  for  citizens  and 
businesses are not configured on the portal yet. The portal currently has 292 179 users, but the number 
of monthly transactions continues to be low (2 070 applications). Furthermore, the poor planning and 
insufficient organisation of the replacement of personal documents bearing the previous constitutional 
name  of  the  country  caused  much  dissatisfaction  and  distrust  among  citizens.  The  use  of  the 
population register is still limited. North Macedonia should ensure alignment with both the European 
Interoperability  Framework  (latest  revision  in  2017)  and  the  Interoperable  Europe  Act  (2022).  The 
interoperability  framework  is  currently  only  used  by  a  few  institutions,  although  the  number  of 
transactions  has  increased.  As  the  national  legislation  is  harmonised  with  the  eIDAS  Regulation  of 
2014, the country needs to take steps to align its laws with the revised 2024 version of the Regulation, 
establishing  the  new  EU  Digital  Identity  framework,  which  includes  the  setting  up  of  a  national 
Digital Identity Wallet. The current existing tools for e-identification and e-signature certificates are 
cumbersome,  often  demanding  change  of  credentials,  neither  free  of  charge  for  citizens,    nor 
particularly user friendly. 

No  progress  was  made  on  simplifying  administrative  procedures.  The  Law  on  general 
administrative procedures is aligned with the principles of good administration but is not implemented 
systematically across the administration, and the exercise to harmonise special laws with the Law is 
still not complete. 

2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS 

2.2.1  Chapter 23: Judiciary and fundamental rights  

The  EU’s  founding  values  include  the  rule  of  law  and  respect  for  human  rights.  An  effective 
(independent, high-quality and efficient) judicial system and an effective fight against corruption are 
of paramount importance, as is respect of fundamental rights in law and in practice. 

Functioning of the judiciary 

Strategic documents 

The Strategy for Judicial Reform 2024-2028 and the accompanying action plan have been adopted by 
the government in December 2023. The Strategy is structured in five priority areas: courts and public 
prosecutor’s offices; institutions of the judicial system; independent professions and public services; 
reform of the Constitutional Court; and reforms of the specific (criminal and civil) legal areas. Albeit 
adopted  with  a  significant  delay,  it  is  based  on  the  assessment  of  the  previous  strategy,  and 
consultations  with  the  legal  community  and  CSOs.  The  action  plan  has  realistic  timelines  and  its 
actions follow a logical sequence, but it is not budgeted. The action plan includes three areas aside 
from the judiciary: reform of the Electoral Code; reform of the Law on financing of political parties; 
and  adoption  of  a  Law  on  equitable  and  fair  representation.  The  Council  for  Monitoring 
Implementation  of  the  Strategy,  set  up  in  March  2024,  has  not  met.  Various  outstanding  activities 
from the previous justice sector strategy (2017-2022) were carried over. No progress was made in the 
implementation of the 2020 strategies for human resources management in the courts and in the public 
prosecutor’s offices. 

Management bodies 

The  management  bodies  are  in  place  but  need  to  further  step  up  their  efforts  to  safeguard  the 
independence, integrity and professionalism of judges and prosecutors. 

In January 2024, the Judicial Council swiftly implemented the decision of the Administrative Court 
to  reinstate  its  unlawfully  demoted  President.  On  1 March 2014,  the  Judicial  Council  adopted  an 
action  plan  for  implementing  the  recommendations  of  the  2023  peer  review  mission,  within  the 
competencies  of  the  Council.  In  line  with  the  plan,  the  Council  approved  on  29 May  2024 
amendments to its rules of procedure and to the Rulebook on the manner of ranking candidates for the 
promotion  of  judges  to  higher  courts,  among  others,  requiring  Council  members  to  explain  their 
decisions.  The  authorities  will  need  to  advance  on  addressing  the  recommendations  of  the  peer 

25 

 
 
 
review,  concerning  the  revision  of  the  legislative  framework  to  improve  the  functioning  and 
independence of the Judicial Council. 

The  new  communication  strategy  for  2024-2028,  adopted  in  June  2024,  focuses  on  strengthening 
public  trust  in  the  judiciary.  The  Judicial  Council  has  taken  steps  to  increase  transparency,  such  as 
publishing session schedules, meeting minutes, decisions, reports, and other relevant documents on its 
website, and has started to web stream its sessions. The practice of regular bi-monthly media briefings 
started in April 2024. 

The  reluctance  of  judges  of  the  Supreme  Court  to  apply  for  Judicial  Council  vacancies,  until  the 
Council  had  remedied  the  unlawful  demotion  of  its  President,  resulted  in  three  failed  vacancy 
publications.  In  June  and  September  2024,  the  judges  elected  three  new  members  of  the  Judicial 
Council: a judge from the Supreme Court a judge from the courts under jurisdiction of the Court of 
Appeals in Bitola, and a judge from non-majority communities. 

Five new members were elected by their peers to the Council of Public Prosecutors. In its decision 
of December 2024 on a complaint from a public prosecutor, the Commission for the Prevention and 
Protection against Discrimination found that the Council discriminated against the plaintiff based on 
age and civil status when deciding whether to approve her application for promotion. After a delay in 
publishing the vacancy, the Parliament elected in February 2024 the new Chief Prosecutor, who was 
the only one of the three candidates supported by the Council of Public Prosecutors. The Council of 
Public Prosecutors has increased transparency by engaging more with the media, issuing regular press 
statements, and sharing sessions on social media. 

Nevertheless,  both  the  Judicial  Council  and  the  Council  of  Public  Prosecutors  must  provide 
comprehensive reasoning for their decisions, including for the election, appointment and promotion of 
judges and prosecutors. 

Independence and impartiality 

The  independence  and  impartiality  of  the  judiciary  needs  to  be  improved.  External  or  political 
interference remain a serious concern. The perceived level of trust in the judiciary remains very low. 
Further efforts are needed to increase transparency and prevent attempts to exert undue  influence or 
use intimidation. In particular, announced intentions by the executive to disband the two Councils are 
a matter of serious concern, as such actions would undermine the independence of the judiciary. , The 
merit-based and independent appointment and promotion decisions need to be ensured consistently.   

Graph 2: North Macedonia - Requests for 
protection from undue influence

446

445

133

15

396

349

200

41

600

400

200

0

2022

2023

In  January  2024,  a  majority  of  Judicial 
Council members, mostly judges elected 
by  their  peers,  stopped  the  dismissal 
procedure  against  the  President  of  the 
Supreme Court for her public allegations 
of  external  political  interference  in  the 
work of the Supreme Court, and for her 
absence from Council sessions following 
the unlawful demotion of its President. 

Courts

Judicial  Council 

Requests received
Outcome of decisions Validation
Outcome of decisions Rejection
Outcome of decisions Pending

The 
suspended 
procedures for the election or dismissals 
of  judges  or  court  presidents  during  the 
parliamentary  and  presidential  election 
period,  based  on  a  public  notice  issued 
the 
by 
Prevention  of  Corruption  (SCPC),  referring  to  a  provision  in  the  Electoral  Code  on  halting 
appointment  decisions  for  public  officials.  The  suspension  of  these  activities  raises  questions  about 
their  independence.  The  Council  of  Public  Prosecutors  continued  to  perform  its  work  during  the 
elections period. The recruitment process at the Academy for Judges and Prosecutors was also halted 
(details below under “Quality of justice”). 

the  State  Commission 

Source: Ministry of Justice

for 

26 

 
 
On  15 May  2024,  the  Constitutional  Court  found  the  claims  of  the  Judicial  Council  and  of  the 
Association of Judges that the amendments to the laws on salaries of judges and of the Members of 
the  Judicial  Council,  of  February  2024,  jeopardise  the  independence  of  the  judiciary  to  be 
inadmissible. The Court assessed that the minimal increase in the salaries will match the status of the 
judges and prosecutors, as they would be among the public officials with the highest income in the 
country. 

Accountability 

The  accountability  of  the  judiciary  needs  to  be  improved.  The  Judicial  Council's  decision  to  fine  a 
judge from the Court of Appeals Skopje instead of dismissing him, for procrastinating on one of the 
high-level corruption cases of the former Special Public Prosecutor’s Office (SPO), was widely seen 
as a confirmation of political interference.  

A Supreme Court judge and a member of the Council for Public Prosecutors were involved in a case 
of  accepting  a  reward  for  unlawful  influence.  The  Judicial  Council  held  two  urgent  sessions  on 
20 May  and  16  August  2024  where  it  decided  to  lift  the  immunity  of  the  Supreme  Court  Judge, 
allowing his detention. Both the former Supreme Court judge and the CPP member entered into plea 
bargain agreements. The former was sentenced to a 3-year prison sentence; the latter received a one-
year  suspended  sentence.  In  September  2024,  Parliament  took  note  of  the  resignation  of  the  CPP 
member. The sentences following the plea bargains were widely received as mild and inappropriate 
compared with the severity of the offence. In response, the Judicial Council set up a commission to 
examine  allegations of unlawful acts by the court which tried the case. 

The Association of Judges’ Advisory Body for Judicial Ethics received no new requests for opinions 
since  2022.  The  Council  of  Public  Prosecutors,  upon  a  proposal  of  the  Association  of  Public 
Prosecutors, amended in November 2023 the Code of Ethics to implement GRECO recommendations 
from  the  Fourth  Evaluation  Round.  The  amendments  addressed  the  provisions  on  the  conduct  of 
public  prosecutors  in  public  appearances  and  the  definition  of  'hospitality',  with  reference  to 
protocolary events. 

The  Council  of  Public  Prosecutors,  accepting  the  proposal  of  an  ad hoc  disciplinary  commission 
within the PPO, unanimously dismissed in November 2023 a public prosecutor who was the former 
head of the Office of the Public Prosecutor for Organised Crime and Corruption (OCCPPO), citing a 
serious  disciplinary  violation.  The  Council  also  imposed  a  fine  on  the  associate  of  the  public 
prosecutor,  in  the  form  of  a  30%  salary  decrease  for  the  next  6  months.  In  a  public  statement,  the 
dismissed public prosecutor said that she would not appeal but would instead initiate the procedure for 
her retirement, which raised suspicions of possible political interference. 

Quality of justice 

The  quality  of  justice  needs  to  be  improved.  Poor  planning  and  delays  in  the  tender  procedure  for 
carrying  out  electronic  tests  for  several  public  institutions,  including  the  admission  exams  for  the 
Academy  for  Judges  and  Prosecutors,  resulted  in  a  need  for  legislative  amendments.  The 
Constitutional Court in June 2024, deciding upon an initiative filed by the Academy and two attorneys 
at law challenging the erroneous article, annulled it. 

 The  State  Commission  for  the 
Corruption 
of 
Prevention 
(SCPC) accepted appeals from a 
presidential  candidate  and  an 
attorney 
to  pause  admission 
tests to the Academy during the 
election 
The 
period. 
Administrative  Court 
initially 
asked  the  SCPC  to  reevaluate, 
but  the  Higher  Administrative 
Court  ultimately  upheld 
the 
decision,  pausing  the  selection 

27 

 
 
process until the new government was formed, as it was deemed an employment matter. These actions 
delayed the Academy's biggest ever recruitment of 130 candidates aimed at addressing the shortage of 
judges and prosecutors. The Director of the Academy resigned in July 2024. 

In  December  2023,  the  Ministry  of  Justice  adopted  the  new  Rulebook  on  the  composition  and 
working  methods  of  the  Council  for  coordinating  information  and  communication  technology  in 
judiciary  (ICT  Council).  The  ICT  Council,  which includes,  for the  first  time,  representatives  of  the 
civil sector and of the Academy of Judges and Public Prosecutors, is tasked with drafting the new ICT 
Strategy for the judiciary. The automated court case management information system (ACCMIS) 
needs to be updated in line with changes in procedural laws and the software needs to be adapted to 
the  new  measures  for  complex  cases.  The  Commission  for  the  supervision  of  the  functionality  of 
ACCMIS  completed  eight  of  the  19  supervisions  planned  for  2023.  It  was  determined  that  all 
supervised courts use ACCMIS and that no cases are allocated manually. 

More efforts are necessary to digitalise the justice system, in particular in relation to communication 
with courts and the use of videoconferencing for court hearings. 

In  September  2024,  the  Supreme  Court  judges  unanimously  approved  amendments  to  the  rules  of 
procedure,  which  govern  the  attendance  of  the  public  and  media  at  general  court  sessions.  These 
changes were enacted to enhance transparency and improve the public trust in the judicial system. 

600
500
400
300
200
100
0

Graph 5: North Macedonia - Alternative 
dispute resolution - 2023 

490

144

46

Settlement
agreements

Finalised court-
related mediations

Mediators

Mediation cases

The  Supreme  Court  and  the  four  Courts  of 
Appeal continued their efforts to ensure the 
consistency  of  judgments.  The  Supreme 
Court  issued  additional  eight  principled 
legal opinions, stances and conclusions, and 
published  a  compendium  of  judgments  for 
2018-2023.  In  July  2024,  it  held  its  first 
general  session  in  presence  of  the  media 
to  determine  a 
discussing 
the  need 
the 
relation 
in 
principled 
stance 
infringement  of  the  right  to  a  healthy 
environment. 

to 

The  Academy  for  Judges  and  Prosecutors 
and  the  Association  of  Judges  should  continue  to  promote  mediation  and  other  alternative  dispute 
resolution methods. 

Source: CEPEJ

Efficiency 

The justice system's efficiency needs to be improved. According to the  Judicial Council assessment, 
there is a need for 162 new judges (434 total judges would be needed, while currently only 272 are 
appointed; with 40 retirements upcoming in the next 3 years). There are difficulties to fill vacancies in 
the judiciary, for example, from seven vacancies for presidents of basic courts, several were repeated, 
as no candidates applied or fulfilled the eligibility criteria. Additionally, according to the 2023 annual 
report  by  the  Council  of  Public  Prosecutors,  there  are  currently  179  prosecutors  working  in  the 
country,  which  falls  short of  the estimated need  for 279  prosecutors  to  adequately fill  all necessary 
positions. 

The  rigid  interpretation  of  the  Electoral  Code  to  ban  employment  procedures  for  judges  during 
election  periods,  further  delayed  recruitment  procedures  and  promotions.  The  lack  of  measures  to 
address  the  impact  of  scheduled  retirements  and  the  lack  of  progress  in  implementing  the  human 
resources strategies for the judiciary and prosecution services also affected efficiency. 

The  budget  allocated  to  the  judiciary  in  2024  is  0.29%  of  GDP,  which  is  low  considering  that  the 
legally  provided  amount  is  0.8%  of  GDP.  Sufficient  financial  resources  should  be  provided  to 
improve the efficiency of the justice system and ensure its financial autonomy.  

The recommendations of the Venice Commission to re-examine the provisions of the Law on the use 
of languages related to bilingualism in judicial proceedings have not been addressed. 

28 

 
 
Graph 6.1: North Macedonia -
Efficiency of courts (%) 
99

99

98

94

88

95

92

84

100

95

90

85

80

75

Graph 6.2: North Macedonia -
Efficiency of courts (days)

263

223

208

197

159

149

129

155

250

200

150

100

50

0

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

Criminal cases

Non-criminal cases*

Criminal cases

Non-criminal cases*

Clearance rate in 2022 %
Clearance rate in 2023 %

Disposition time 2022
Disposition time 2023

* Civil and commercial cases, administrative
cases, non-litigous cases, other cases

Source: CEPEJ

* Civil and commercial cases, administrative
cases, non-litigous cases, other cases

Source: CEPEJ

Fight against corruption 

Track record 

The  track  record  in  the  fight  against  corruption  has  worsened.  There  are  still  concerning  patterns 
regarding an increasing number of delays in court proceedings and an increase in reversals of court 
rulings on corruption and organised crime. The most frequent reasons for postponement include the 
absence at the court proceedings of defendants or defence counsel and prosecutors - mainly for health 
reasons,  and  members  of  trial  panels  when  these  are  appointed  to  another  court.  Judges  and 
prosecutors  must  proactively  and  efficiently  manage  their  cases  to  ensure  timely  justice.  Judicial 
accountability should be ensured in this respect. 

In  September  2023,  North  Macedonia  amended  the  Criminal  Code  in  a  fast-track  procedure. 
Amendments concerning the crime of abuse of office and criminal association have raised concerns 
because they reduce the maximum penalties and have implications for the statute of limitations and 
create risks of impunity for past and future crimes. The suppression of a specific category of offences, 
notably  ‘abuse  of  office  in  public  procurement’  is  considered  particularly  problematic.  The 
amendments  also  undermine  the  applicable  criminal  procedures  by  limiting  the  scope  and  specific 
methods of investigations, which makes the task of the prosecution more difficult. The amendments to 
the Criminal Code have had an immediate impact on many high-profile cases. It has been particularly 
difficult for public prosecutors to requalify charges to ensure accountability for cases previously dealt 
with  by  the  former  SPO,  and  many  ongoing  cases  were  terminated  either  because  the  statute  of 
limitations  had  expired  or  because  the  offence  of  abuse  of  office  in  public  procurement  no  longer 

29 

 
 
      
  
 
exists. To challenge this practice, the Chief Prosecutor submitted an initiative to the Supreme Court 
for an extraordinary legal remedy-motion for the protection of legality. The Supreme Court accepted 
the PPO’s request for legality and ruled against the Appellate Court’ reasoning that the crime of abuse 
of office in public procurement is decriminalised.  

Institutional framework 

The institutional framework on the fight against corruption is in place and is satisfactory in terms of 
preventive  measures.  However,  the  law  enforcement  aspect  needs  to  be  improved.  The  SCPC 
continued to  provide  policy  advice  to  public institutions  proactively  and  opened  several  new  cases. 
Following  appointments  by  the  Parliament,  the  newly  composed  State  Commission  held  its 
constitutive  session  on  16 February  2024.  Some  CSOs  assessed  the  selection  process  of  the  new 
SCPC members as not being fully transparent and politically biased. 

The  SCPC  needs  to  further  strengthen  its  capacity  to  proactively  instigate  initiatives  before  the 
competent  authorities,  identifying  possible  wrongdoings  before  they  are reported  in  the  media.  Too 
often,  the  conclusions  of  the  SCPC  reports  are  not  followed  up  by  the  institutions  concerned.  The 
electronic  system  to  file  statements  of  declaration  of  assets  and  interest  has  been  operational  since 
January  2024.  However,  the  SCPC's  ability  to  verify  declarations  of  interest  and  asset  declarations 
continues to be limited. Software to enable communication between the IT systems of the cadastre, 
the Revenue Service, the Ministry of the Interior and the central register must be put in place to enable 
more effective checks of asset declarations. The SCPC's oversight of election campaign financing is 
weak due to limited resources, and the fact that data are processed manually. Further action is needed 
to  strengthen  and  support  the  SCPC  and  ensure  it  is adequately  resourced,  notably  with  specialised 
staff with investigative experience. The SCPC would benefit from specialist staff with investigative 
experience  who  could  better  prepare  the  documentation  to  be  submitted  to  the  PPO,  verify  asset 
declarations more effectively and ensure proper oversight of election campaign financing. 

The Public Prosecutor’s Office for Prosecuting Organised Crime and Corruption (OCCPPO) has 
moved  to  its  new  premises.  Its  budget  and  staffing  levels  continue  to  be  insufficient  to  effectively 
tackle cases of corruption and organised crime. It has no financial experts or analysts and still lacks 
strategic planning in the handling of investigations and cases, which affects its overall efficiency. The 
OCCPPO would become more efficient if more specialisations were introduced and if resources were 
focused  on  the  most  complicated  cases.  It  should  increase  cooperation,  information-sharing  and 
follow-up to SCPC initiatives and recommendations. After the amendments to the Criminal Code that 
resulted  in  reduced  penalties,  the  Basic  Public  Prosecutor's  Offices  (PPOs)  have  been  granted 
jurisdiction  over  cases  involving  high-level  corruption  and  organised  crime.  However,  their 
insufficient  specialised  expertise  and  resources  could  impede  the  effective  prosecution  of  such 
offences. 

The  State  Audit  Office,  the  investigative  centre/judicial  police  in  the  PPO  and  the  police  all  lack 
sufficient resources. The quality and efficiency of investigations needs to improve. Moreover, there is 
often a need for investigations to be accompanied by parallel financial investigations into individuals 
and  companies  suspected  of  being  involved  in  wrongdoing.  Limited  use  is  made  of  freezing  and 
confiscation mechanisms. To increase the number of financial investigations, the prosecution service 
should be allocated appropriate financial and human resources. Interinstitutional coordination should 
be strengthened and access to integrated databases must be put in place. 

Strategic documents 

The strategic documents are in place. The implementation of the national strategy for the prevention 
of corruption and conflict of interest (2021-2025) and the related action plan continues to be slow, 
indicating  an  overall  lack  of  commitment  and  ownership  across  institutions.  Only  13%  of  the 
activities  planned  for  2023  were  implemented  in  full,  33%  are  ongoing  and  54%  have  not  been 
implemented. This is a very limited increase from last year when 10% of the planned activities had 
been implemented in full, 35% were ongoing and 55% had not been implemented. Parliament has yet 
to discuss the SCPC report on the 2021 local elections. 

Legal framework 

30 

 
 
The legal framework on the fight against corruption is in place but needs to be improved both in terms 
of preventive measures and law enforcement. 

The country is party to the United Nations Convention against Corruption. It is not a signatory party 
to the OECD Anti-Bribery Convention. The Law on prevention of corruption and conflict of interest 
does not provide an adequate sanctioning mechanism for the violation of conflicts of interest, integrity 
and  anti-corruption  rules  as  noted  by  Council  of  Europe’s  Group  of  States  against  Corruption 
(GRECO). 

The  Law  on  the  financing  of  political  parties  lays  down  how  funding  can  be  provided  to  political 
parties  and  managed  correctly.  The  Electoral  Code  sets  out  the  rules  on  the  financing  of  electoral 
campaigns. The Law on free access to public information allows applicants to obtain information on 
the  public  financing  of  political  parties.  Consistency  of  the  legal  framework  should  be  ensured  to 
allow  legal  certainty  and  enable  effective  oversight  of  political  parties  financing.  The  Law  on 
lobbying  entered  into  force  in  June  2022.  One  organisation  registered  to  date.  The  Law  on  the 
protection of whistle-blowers still needs to be further aligned with the EU acquis. 

Fundamental rights 

General framework 

The general framework for fundamental rights is broadly satisfactory. 

International human rights instruments 

North  Macedonia  has  ratified  most  international  human  rights  instruments.  The  country  needs  to 
develop a comprehensive monitoring and data collection system to assess the level of implementation 
of human rights legislation, policies, and strategies and to fully benefit from its observer status in the 
European Union Agency for Fundamental Rights (FRA). 

European Court of Human Rights 

level  of 
North  Macedonia  has  a  good 
cooperation with the European Court of Human 
Rights  (ECtHR).  During  the  reporting  period, 
the  ECtHR  found  breaches  of  the  European 
Convention  on  Human  Rights  relating  to  the 
right  to  a  fair  trial,  the  right  to  liberty  and 
security  and 
the  protection  of  property. 
Currently, there are seven cases under enhanced 
supervision  by  the  Committee  of  Ministers. 
North  Macedonia  needs  to  make  efforts  to 
address  systemic  or  structural  issues  raised  by 
these  cases  related  notably  to  freedom  of 
and 
association, 
discrimination and to ensure systematic enforcement of ECtHR judgements.  

ill-treatment  by  police 

Promotion and enforcement of human rights 

The legal framework on the protection of fundamental rights is partially aligned with the EU  acquis 
and European standards. The country continues to meet its general obligations on fundamental rights, 
but 
and 
legislation 
pertinent  strategies  should 
in  a 
be 
systematic  manner.  The 
Parliament did not manage 
to  adopt  the  long-awaited 
amendment to the Law on 
the  Ombudsman’s  Office, 
needed  to  upgrade  its  ‘B’ 

implemented 

31 

 
 
accreditation  status,  based  on  the  Paris  Principles,  and  failed  to  elect  six  out  of  10  Deputy 
Ombudspersons. 

In November 2023, the Parliament appointed the Macedonian Association of Young Lawyers (MYLA) 
and  the  Helsinki  Committee  for  Human  Rights  (HCHR)  to  serve  as  the  civil  control  mechanism 
within the Ombudsman’s office. The authorities made no substantial improvements in implementing 
the  Ombudsman’s  recommendations.  At  the  end  of  2023  the  Parliament  elected  new  anti-
discrimination commissioners  and  filled  vacant  positions.  This  enabled the  Commission  to fulfil  its 
mandate with a complete composition. The Commission’s capacity building relies heavily on support 
from donors and collaboration with CSOs. 

Prevention of torture and ill-treatment 

North  Macedonia  is  currently  among  the  countries  for  which  there  is  the  highest  concern  about 
conditions  in  detention.  The  country  should  urgently  tackle  the  persistent  issue  of  inadequate 
detention  conditions  in  prisons,  police  stations,  social  care  and  psychiatric  facilities.  Although 
infrastructure was renovated and improved in several prison facilities, conditions in parts of Idrizovo 
prison and other detention facilities remain extremely problematic. ECtHR case law shows that poor 
detention  conditions  can  be  considered  grounds  for  a  violation  of  Article 3  on  the  prohibition  of 
torture. 

North  Macedonia  needs  to  continue  the  dialogue  mechanism  for  the  implementation  of  the 
recommendations published in 2021 by the Committee for the Prevention of Torture of the Council of 
Europe (CPT) and those from previous reports. The CPT made a regular visit to North Macedonia in 
October 2023 and submitted a report with recommendations on May 2024. 

The external oversight mechanism for the police, including the prison police, was completed with the 
selection  of  three  representatives  by  the  Parliament.  It  should  boost  its  working  methods  by 
collaborating with the Ombudsman’s Office.  

Execution of criminal sanctions 

Prisons are overcrowded. Amendments to the Law on execution of sanctions adopted in March 2024 
address  prison  governors’  appointments  and  dismissal  procedures  and 
include  UNICEF’s 
recommendations  on  separating  girls  from  adults  in  correctional  facilities.  Prison  inspections 
continue, but corruption remains a serious issue. Despite efforts to incentivise medical staff to work in 
prisons, such as providing a hardship allowance, the lack of adequate healthcare or measures to treat 
drug addiction in prisons remains an issue of serious concern. 

Graph 11: North Macedonia - Prisons 

105

103

105

n/a

n/a

n/a

150

100

50

0

Occupancy rate (%)

Average duration of pre-
trial detention (months)

2022

2023

2024

n/a: not available

Source: Ministry of Justice, Prison administration

protection  of  personal  data.  Full 
alignment  with 
the  General  Data 
Protection  Regulation is  still  pending,  as 
is  the  adoption  of  national  legislation  to 
align  with  the  EU  Law  Enforcement 
Directive.  The  performance  of 
the 
Protection  Agency 
Personal  Data 

better 

coordination 

The  probation  system  is  improving,  with 
more  cases  handled  by  probation  officers 
and 
between 
stakeholders.  No  progress  has  been  made 
on  amending  the  legal  framework  for 
alternative  sentences  or  on  addressing  the 
lack  of  purposeful  activities  for  prisoners. 
Educational and resocialisation services and 
treatment  programmes  should  be  provided 
in all penitentiary facilities. 

Protection of personal data 

No  progress  has  been  made  on 

the 

Graph 12: North Macedonia - Data protection

400

300

200

100

237

150

32 

0

Inspections

348

313

Complaints
received

2022

258

160

Decisions

0

6

19

20

Administrative
sanctions

Declarations of
data breaches

2023
Source: Personal data protection Agency

 
 
(PDPA) is restricted as it lacks the independence to autonomously hire staff and spend its budget. The 
number of staff has further decreased due to low salaries, and now stands at only 20. This, along with 
insufficient funds, prevents the Agency from carrying out its tasks and powers in full. The PDPA is 
not  systematically  consulted  on  sectoral 
legislation.  Coordination, 
communication  and  responsiveness  to  recommendations  of  the  Agency  is  still  weak.  There  is  no 
follow-up in the Parliament to the annual report of the Agency and reports on specific issues, such as 
the interception of communication. 

implementing 

laws  or 

Freedom of religion or belief 

The rights to freedom of religion or belief continue to be guaranteed by the Constitution and upheld in 
practice. 

---------------------------------------------------------------------------------------------------------------------------
------------------------- 

Freedom of expression 

Protection of journalists 

In  2023,  the Ministry  of the  Interior recorded  seven  cases  of  attacks against  journalists  and opened 
investigations into them. The Association of Journalists of Macedonia recorded five incidents against 
journalists.  Of  these,  three  involved  nonphysical  threats  and  harassment,  and  two  involved  threats 
against the lives and physical safety of journalists. The courts reported fewer defamation lawsuits (19) 
against journalists in 2023 than in the previous year and registered six strategic lawsuits against public 
participation (SLAPP), highlighting the absence of support mechanisms for SLAPP. 

Journalists  faced  inappropriate  language  from  politicians  and  public  figures.  A  prosecutor  has  been 
specifically assigned to monitor attacks on journalists, and cyberbullying incidents can be reported to 
the Ministry of Interior’s cybercrime department. 

Legislative environment 

The legal framework governing the media is not fully aligned with EU acquis, notably the European 
Media Freedom Act. Following the revisions of July 2023, the Law on audio and audio-visual media 
services abolished the government’s discretionary rights in fund allocation to the broadcasting sector. 
Nevertheless,  the  government  persisted  in  allotting  reduced  funds.  Government  advertising  in 
commercial  media  was  reinstated  in  February  2024,  increasing  the  risk  of  the  potential  misuse  of 
political funds, endangering media independence and creating market disruption. 

Parliament  once  again  failed  to  appoint  new  members  to  both  the  Public  Service  Broadcaster’s 
Programme Council and the Media Regulator’s Council. 

Implementation of legislation/institutions 

In  2023,  the  media  regulator  continued  its  oversight  of  broadcast  media  and  of  illicit  media 
concentration and ownership. It collaborated with CSOs and media outlets to promote media literacy 
and human rights. 

Public service broadcaster 

The public service broadcaster needs modernising and should improve competitiveness, independence 
and  professional standards.  The  organisation's funding  has  been inconsistent,  causing  uncertainty  in 
planning. The Law on audio and audio-visual media services of July 2023 increased overall funding, 
but the authorities have transferred less than legally required. 

Economic factors 

Challenges  persist  regarding  the  transparency  of  media  ownership  and  the  concentration  of  media. 
Political  parties  continue  to  use  State  funds  for  advertising,  and  the  lack  of  transparency  on  paid 
political  advertising  persists.  Both  print  and  broadcast  media  are  legally  required  to  disclose 
information  about  their  ownership  to  the  regulatory  body  for  audio-visual  media,  yet  no  legislation 

33 

 
 
exists on the ownership and financial disclosures of digital national media. The ownership register for 
digital national media is a self-regulatory mechanism. 

Internet 

Net neutrality is guaranteed, both in terms of legal provisions and practical implementation. However, 
challenges remain in the online media sector, with growing threats arising from disinformation, hate 
speech  and  breaches  of intellectual  rights.  The  Council  of  Media  Ethics  observed  a  fourfold rise  in 
complaints about hate speech compared to the previous year. 

Professional organisations and working conditions 

The  Independent  Union  of  Journalists  and  Media  Workers  defends  the  labour  and  social  rights  of 
journalists.  Separate  unions  defend  the  rights  of  journalists  working  for  public  service  broadcasters 
and  those  working  for  news  agencies.  Shortcomings  in  journalists'  working  conditions  persist, 
notably,  the  short-term  or  part-time  contracts  without  health  and  social  insurance  coverage,  unpaid 
overtime and low wages, which contribute to self-censorship and influence over editorial content by 
media owners. 

(See also Chapter 10 – Digital transformation and media) 

---------------------------------------------------------------------------------------------------------------------------
------------------------- 

Freedom of assembly and association 

The  right  to  freedom  of  assembly  and  association  is  guaranteed  by  the  Constitution.  The  country’s 
legal  framework  is  broadly  aligned  with  its  international  obligations  on  freedom  of  association. 
Additional  efforts  are  needed  to  implement  rulings  of  the  ECtHR  related  to  registration  of 
associations. 

Legislative changes should comply with international standards. One way to ensure this would be to 
consult the Venice Commission before adopting the Law on associations and foundations, in line with 
the Recommendation of the European Commission against Racism and Intolerance (ECRI). 

Labour and trade union rights are covered in Chapter 19 - Social policy and employment. 

Property rights 

Progress  on  property  rights  remains  limited  due  to  lengthy  and  costly  procedures.  The  national 
strategy on property rights has not advanced, and municipal property  registers are outdated and kept 
in  analogue  format.  The  Cadastre  Office  reduced  unresolved  cases  and  backlog  by  62%  and  5%, 
respectively, and completed land and property registration. Administrations handling restitutions are 
facing  an  excessive  caseload  due 
to  understaffing  and  funding  constraints.  Over  6 000 
denationalisation cases remain open, despite the process being officially closed in 2013. 

Non-discrimination 

The  legal  and  institutional  framework  for  non-discrimination  remains  partially  aligned  with  EU 
acquis and European standards.  

The 2021-2026 strategy for equality and non-discrimination has not produced significant results. At 
the  end  of  2023,  the  Parliament  elected  new  anti-discrimination  commissioners  and  filled  vacant 
positions.  While  the  Commission  for  the  Prevention  and  Protection  against  Discrimination  has 
efficiently addressed increasing complaints, it still requires more resources and support from donors 
and  CSOs.  The  main  challenges  hampering  the  Commission’s  work  are  the  lack  of  financial 
independence and the low numbers of administrative staff. In 2023 the Commission issued 117 legal 
opinions,  and  in  59  cases  identified  discrimination  and  provided  recommendations.  Instances  of 
discrimination were most prevalent in the areas of employment, public information and media, as well 
as access to goods and services. 

The  legal  framework  and  interinstitutional  capacity  to  combat  hate  speech  and  hate  crime  needs 
further  improvement,  notably  to  include  sexual  orientation  and  gender  identity  as  grounds  of  hate 

34 

 
 
speech.  The  country  should  follow  up  on  ECRI’s  General  Policy  Recommendation  No 15  on 
combating hate speech and fully address the findings and recommendations set out in ECRI's report of 
September 2023. 

The authorities do not yet collect data on hate speech and hate crime in a systematic manner. CSOs 
consistently  register  hate  crime  cases  in  a  database.  In  2023,  1 171  cases  of  hate  speech  were 
registered,  the  most  prevalent  being  on  the  grounds  of  ethnicity,  sexual  orientation,  gender  identity 
and nationality. 

Gender equality 

4

9

7

on 

10
9
8
7
6
5
4
3
2
1
0

advancing 
no 

Graph 13: North Macedonia - Violence against 
women (including domestic and sexual violence)

North  Macedonia  has  made  no 
progress 
gender 
equality,  with 
significant 
developments  in  its  national  policy 
framework  for 
integrating  gender 
equality  and  aligning  with  the  EU 
acquis.  The  anti-gender  movement 
has  continued  gaining traction in the 
country.  This  has  had  an  impact  on 
the 
legislative  and  policy-making 
process.  The  implementation  of  the 
national  strategy  for  gender  equality 
is  poor,  and  cross-
(2022-2027) 
institutional 
for 
implementing and monitoring gender 
equality 
be 
strengthened.  The  implementation  of 
the 
is  also 
suboptimal  due  to  insufficient  funding  and  ineffective  cross-institutional  protocols.  In  2023,  the 
Group  of  Experts  on  Action  against  Violence  against  Women  and  Domestic  Violence  (GREVIO) 
identified  a  number  of  issues  that  require  urgent  action  by  the  authorities  to  comply  fully  with  the 
convention’s provisions. Access to health services for victims of gender-based violence is hindered by 
the limited number of shelters and lack of personnel. 

Istanbul  Convention 

Final criminal
convictions

Violence against women

Source: Ministry of Interior

mechanisms 

Police reports

policies 

Femicides

.n/a: not available

need 

2021

2023

2022

to 

n/a

n/a

n/a

2

2

4

Rights of the child 

The legislative and institutional framework for the rights of the child is generally aligned with the EU 
acquis  and  international  human  rights  standards,  but  effective  implementation  remains  challenging 
due to issues with accountability, capacity, monitoring and funding. 

Key  areas  requiring  attention  include  education,  health,  protection  from  violence  and  non-
discrimination.  More  support  for  mechanisms  to  combat  violence  and  sufficient  funding  for  the 
national  strategy  to  end  violence  against  children  (2020-2025)  are  needed.  A  national  body 
responsible  for  coordinating  all  policies relating to implementation  of the  UN Convention on  Child 
Rights and the Optional Protocols is yet to be set up. The strategy for the fight against trafficking of 
children (2021-2025) should be aligned with the Lanzarote Convention and the the EU legislation on 
child sexual abuse (Directive 2011/93). 

The  implementation  of  the  Strategy  for  de-institutionalisation  (2018-2027)  continues  and  all  the 
children have been relocated to foster care or small group homes. 

Further  efforts  are  needed to reduce  child  poverty  and  improve social  protection.  Local stakeholder 
cooperation  and  the  capacity  of  social  work  centres  should  be  enhanced,  especially  for  at-risk 
children, including Roma and those with disabilities. The policy of including children with disabilities 
in regular schools is facing challenges. 

Regularly  monitoring  and  inspecting  educational  correctional  facilities  and  prisons  is  crucial  to 
protect and provide services to detained children. Access to justice, legal representation, and capacity 

35 

 
 
building  for  public  officials  working  with  child  victims,  witnesses  and  offenders  are  currently 
insufficient. 

Persons with disabilities 

Persons with disabilities are still unable to fully enjoy their rights because legislation and government 
policies  are  not  aligned  with  the  UN  Convention  on  the  Rights  of  Persons  with  Disabilities 
(UNCRPD).  The  national authority's  capacity to  align  its institutional and  legislative framework  on 
social protection and inclusion with the EU acquis concerning the persons with disabilities needs to be 
strengthened. The Office of the Ombudsman oversees the implementation of the UNCRPD in close 
cooperation with CSOs. The national strategy to achieve equal rights for individuals with disabilities 
was  adopted  in  December  2023  and  implementation  is  in  its  initial  stages.  The  action  plan  for  the 
deinstitutionalisation  strategy  for  2022-2024  is  nearly  finalised,  with  only  the  relocation  of  the 
beneficiaries from the Special Institute Demir Kapija remaining to be completed. 

A total of 2 200 students with special needs have been integrated into mainstream primary schools, 
with  an  additional  314  enrolled  in  secondary  education,  benefiting  from  the  support  of  educational 
assistants  to  bolster  inclusivity  initiatives.  Individuals  with  disabilities  continue  to  encounter 
significant  forms  of  discrimination,  stemming  from  barriers  in  infrastructure,  insufficient  access  to 
information and services, discriminatory attitudes and social marginalisation. 

(see Chapter 19 – Social policy and employment for aspects related to social services, assistance and 
benefits). 

LGBTIQ persons  

No progress was made on improving the legal or policy framework protecting the rights of lesbian, 
gay, bisexual, transgender, intersex and queer (LGBTIQ) persons. The current legal framework does 
not  recognise  same-sex  partnerships.  On  22 June  2024,  a  LGBTIQ  pride  parade  was  successfully 
organised but hate speech against the community persists on social media. As an observer to the work 
of  the  European  Union  Agency  for  Fundamental  Rights,  North  Macedonia  was  covered  by  the  III 
LGBTIQ Trust Survey, which found that overall, in North Macedonia in 2023, 39% felt discriminated 
against  in  at  least  one  area  of  life  in  the  year  before  the  survey  (for  the  EU-27  it  was  37%).  No 
progress  has  been  made  in  implementing  the  ECtHR  judgment  from  January  2019  on  legal  gender 
recognition. 

CSOs registered 298 cases of hate speech on the grounds of sexual orientation and gender identity but 
legal  consequences  are  still  inadequate.  In  March  2024,  a  basic  court  issued  a  suspended  prison 
sentence against a citizen for perpetrating hate speech against members of the LGBTIQ community, 
marking the first ruling on this ground in the country. CSOs documented 27 cases of hate-motivated 
violence against LGBTIQ people. No progress was made on investigating the attacks on the LGBTIQ 
support centre that happened more than a decade ago, or on the acts of vandalism on the office of an 
LGBTIQ organisation and death threats against activists. 

Procedural rights and victims’ rights 

The country is still only partially aligned with the EU acquis on the protection of procedural rights of 
people who are accused or suspected of crimes. In March 2024, the Parliament adopted the Law on 
justice for children, which broadly reflects the requirement for procedural safeguards for children who 
are suspects or accused in criminal proceedings. The Law on free legal aid was amended in September 
2024. The country has a solid network providing primary and secondary free legal aid, including for 
victims  of  crime.  The system of  legal  aid in  criminal  proceedings  needs  to  be  reformed to improve 
access  to  justice.  The  authorities  need  to  revise  the  eligibility  criteria  in  criminal  proceedings,  for 
mandatory  defence,  defence  of  indigent  persons  and  representation  of  the  interests  of  victims  of 
crime. 

The  country  is  not  yet  aligned  with  the  European  Protection  Order  Directive.  The  adoption  of  an 
amended Law on criminal procedure, to ensure alignment with the Victims’ Rights Directive, is still 
pending.  At  the  beginning  of  2024,  the  Commission  for  the  Implementation  of  the  Law  on  the 
payment  of  monetary  compensation  to  victims  of  violent  crimes  became  operational  and  started  to 

36 

 
 
hold sessions. 

Protection of minorities 

The  recommendations  issued  by  the  Advisory  Committee  on  the  Framework  Convention  for  the 
Protection  of  National  Minorities  on  the  promotion  and  assurance  of  sustainability  of  the  national 
strategy to support a multi-ethnic society, ‘One Society for All and Interculturalism’, were not fully 
implemented. 

The Agency for the Rights of the Non-Majority Communities has published the National Strategy for 
Inter-culturalism and Social Cohesion 2024-2026, but it still needs to be adopted by the Parliament. 
To ensure the sustainability of the strategy, the authorities need to provide high-level political support, 
funding and outreach to the media. 

North Macedonia still did not ratify the European Charter for Regional or Minority Languages, signed 
in 1996. 

The  Language  Implementation  Agency  and  the  Agency  for  Community  Rights  Realisation  remain 
understaffed and inadequately funded. 

Roma 

North  Macedonia  has  made  satisfactory  progress  in  the  area  of  Roma  inclusion,  implementing  the 
strategy for 2022-2030. New action plans for 2024/2025 have been prepared and an adviser on Roma 
inclusion  has  been  appointed  to  assist  the  Prime  Minister.  However,  the  strategy  lacks  a  clear 
approach to participation, empowerment and capacity building. The action plan for Roma women and 
girls’ rights is moderately implemented. Outstanding challenges include irregular school attendance, 
street  children  and  segregation  in  schools.  The  government  remains  committed  to  the  Poznan 
Declaration priorities. 

Citizenship rights 

In  December  2012,  North  Macedonia  amended  the  law  allowing  the  acquisition  of  citizenship  for 
special economic interests. The scheme could pose migratory and security risks, especially given the 
different  criteria  for  granting  citizenship.  The  Commission  maintains  the  view,  as  expressed  in  the 
sixth  report  under  the  visa  suspension  mechanism,  that  North  Macedonia  should  refrain  from 
systematically  granting  citizenship  based  on  special  economic  interest,  as  such  investor  citizenship 
schemes pose serious risks and are incompatible with the EU acquis. In 2023, five such requests were 
submitted. 

2.2.2  Chapter 24: Justice, freedom and security 

The  EU  has  common  rules  for  border  control,  visas,  external  migration  and  asylum.  Schengen 
cooperation entails the lifting of border controls inside the EU. There is also cooperation in the fight 
against  organised  crime  and  terrorism,  and  judicial,  police  and  customs  cooperation,  all  with  the 
support of the EU Justice and Home Affairs agencies. 

Fight against organised crime 

North Macedonia has continued to work on aligning its legal framework on organised crime with the 
EU acquis. 

Institutional set-up and legal alignment 

North  Macedonia  is  partially  aligned  with  the  EU  acquis  in  the  fight  against  organised  crime.  It 
complies  with  multiple  strategic  documents  on  organised  crime  and  other  forms  of  serious  crime, 
based  on  the  corresponding  EU  strategies.  A  ‘national  Serious  and  Organised  Crime  Threat 
Assessment  (SOCTA)  2021’  was  prepared  with  Europol  methodology  and  policy,  and  presented  in 
2022, which authorities reviewed in December 2023. 

Regarding the institutional set-up, the National Coordination Centre for the Fight against Organised 
Crime is operational but requires more permanent staff. Four investigative centres were set up in the 
Public  Prosecutor’s  Office  to  support  investigations  into  complex  cases  of  organised  crime.  All 

37 

 
 
centres are operational and in use, but they lack sufficient human and financial resources, appropriate 
access to the necessary databases, professional training courses and equipment. 

Since the 2018 reform of the security and intelligence sector, the National Security Agency has been 
located  in  the  premises  of  the  Ministry  of  the  Interior,  which  could  jeopardise  its  independence. 
Similarly,  the  Operational  and  Technical  Agency,  responsible  for  authorised  surveillance  of 
communications  operates  from  the  premises  of  a  national  telecommunications  operator,  so  its 
independence could also be compromised. The Operational and Technical Agency has completed the 
process  to  digitalise the procedure related to  acquiring  and  implementing  authorised  surveillance  of 
communications.  The  digitalised  procedure  is  not  yet  utilised  by  the  relevant  national  authorities 
because of a lack of proper legal regulation of its implementation. A new Director was appointed at 
the end of November 2023. 

Regarding asset recovery, the Law on the Asset Recovery Office, aligned further with the EU acquis, 
was adopted in March 2024. The office, which is part of the Public Prosecutor's office, still requires 
the  necessary  implementing  legislation,  a  proper  budget,  access  to  databases  and  staff.  Only  one 
prosecutor  works  for  the  Asset  Recovery  Office  (ARO).  The  Law  on  management  of  confiscated 
property in criminal and misdemeanour procedures was amended in March 2024 to align further with 
EU acquis. The Agency for Management of Confiscated Property is lacking sufficient staff, storage 
facilities,  equipment  and  budget,  as  well  as  an  effective  case  management  system.  In  addition,  in 
February  2024,  the  Parliament  adopted  the  Law  on  asset  confiscation  in  civil  proceedings,  which 
proposes  a  non-conviction-based  system  for  seizing  assets  assumed  to  be  unlawfully  obtained. 
Concerns have been raised regarding the scope of the Law and because it may lead to confusion with 
other legislation and thus legal uncertainty. 

On  trafficking  in  human beings,  a  Commission  for monetary  compensation  for  victims  of  violent 
crime, tasked with providing support to victims of criminal acts of violence, was set up in early 2024. 
The Criminal Code needs to be further aligned with the EU acquis in the area of trafficking in human 
beings,  notably  regarding  penalties  of  certain  offences.  Capacities  of  law  enforcement  should  be 
further strenghtened allowing them for more proactive investigations.    

Regarding  firearms-related  crime,  a  Memorandum  of  Cooperation  was  signed  in  November  2023 
between the Ministry  of  Interior, the  Public  Prosecutor’s  Office and the  Customs  Administration  to 
strengthen cooperation in prosecuting firearms-related crime. The amendments to the Criminal Code 
of September 2023 criminalise the possession of materials for producing 3D weapons and the actual 
production of such weapons, in compliance with the UN Firearms Protocol. 

On  child  sexual  abuse,  the  Sector  for  Cybercrime  and  digital  forensics  at  the  Ministry  of  Interior 
acquired access to the child protection system database. However, the country is still not connected to 
the Interpol I-24/7 Child Sexual Exploitation system. 

Regarding  cybercrime, there are no new developments on the ratification of the Second Additional 
Protocol to the Budapest convention. 

Implementation and enforcement capacity 

North Macedonia continues to develop its track record in prosecuting cases of organised crime. The 
number  of  investigations  remains  stable,  although  the  number  of  verdicts  reached  has  substantially 
declined. The number of individuals indicted has increased. 

Exchanges  of  information  with  Europol  on  criminal  matters  and  on  analytical  projects  increased 
significantly in 2023 compared with the previous year. The number of new cases initiated, based on 
exchanged information, rose in 2023, as did the number of messages exchanged through the  Secure 
Information Exchange Network Application (SIENA). 

Information on  various crime-related matters  was exchanged  with  Interpol,  but  North  Macedonia  is 
not  connected  to  all  of  Interpol’s  databases  for  instance  the  Child  Sexual  Exploitation  Database  – 
ICSE. 

38 

 
 
In  2023,  North  Macedonia  participated  in  several  EMPACT  operational  actions  plans,  including  in 
some  cases  as  co-leader  of  actions,  as  well  as  in  joint  action  days  (JAD).  Skopje  hosted  the 
International  Coordination  Centre  during  the  EMPACT  Joint  Action  Days  Southeast  Europe  (JAD 
SEE) 2023 to target firearms trafficking, drug trafficking, migrant smuggling and trafficking in human 
beings, and high-risk criminal networks. North Macedonia  takes part in the Global Alliance against 
Migrant Smuggling, launched in November 2023. 

of 
The  Ministry 
Interior  adopted 
its 
2024  annual  plan, 
includes 
which 
activities 
for 
intelligence-led 
policing. 
The 
structures  responsible 
for fighting organised 
crime should improve 
operational 
their 
capacity 
and 
They 
cooperation. 
better 
require 
financing,  equipment, 
access  to  databases, 
staffing  and  training, 
as  well  as  legislative 
harmonisation  with 
European 
and 
international 
standards. 

200

150

127

100

50

0

Graph 14 - North Macedonia - Serious* and organised crime 
cases

104

84

99

66

53

75

66

54

128

126

167

115

60

60

1

8

7

1

n/a

n/a

n/a

1

1

Organised
crimes

Serious
crimes

Organised
crimes

Serious
crimes

Organised
crimes

Serious
crimes

2021

2022

Number of individuals / legal entities under Investigation
Individuals / legal entities indicted
Final court decision
Final convictions

2023

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

n/a: not available

*Data on serious crime cases stem from the aggregation of cases of money laundering, cybercrime, 
production and trafficking of drugs, firearms related offenses, terrorism, trafficking in human beings 
and smuggling of persons. Corruption cases are showcased in Chapter 23. 

A  total  of  293  computer  crimes  were  registered  in  2023.  As  in  2022,  ransomware  was  the  most 
frequently reported crime. 

Online child sexual abuse crimes increased by 28.6% in 2023, with 18 crimes registered that year. Of 
those registered, 13 crimes were solved and 14 perpetrators were charged. 

North  Macedonia  is making  progress on addressing  the  recommendations  of  Moneyval’s  2023 fifth 
round of evaluation. 

Financial  investigations  remain  an  area  of  weakness  for  North  Macedonia.  The  Financial  Police 
Office within the Ministry of Finance launched 220 financial investigations in 2023. In addition, the 
custom  administration  initiated  20  financial  investigations,  18  of  which  are  parallel  financial 
investigations. 

In  2023,  the  Agency  for  Management  of  Confiscated  Property  confiscated  property  and  property 
benefits,  as  well  as  items  in  criminal  and  misdemeanour  proceedings,  namely:  two  pieces  of  real 
estate, 150 vehicles and EUR 535 000 in monetary assets after a final judgment. 

Cooperation in the field of drugs 

Cooperation in the field of drugs needs to be improved. 

Institutional set-up and legal alignment 

The  main  coordinating  body  tackling  the  illegal  production,  trafficking  and  use  of  drugs  -  the 
Interministerial  Commission  for  Narcotic  Drugs  (IMCND)  -  has  not  been  operational.  The  country 
has  a  national  strategy  against  drugs  for  2021-2025,  which  is  aligned  with  the  EU  strategy.  The 
operational  capacity  of  the  National  Drugs  Observatory  remains  limited,  as  the  Observatory  lacks 
sufficient resources to cope with its daily drug monitoring tasks. An early warning system has not yet 
been set up. 

39 

 
 
The process to renew the agreement with the European Union Drug Agency (EUDA) is under way. 

Legislation on drugs, psychotropic substances and precursors does not comply with the EU acquis or 
international  standards,  notably  on  the  establishing  an  early  warning  system  and  rapid  exchange  of 
data on new psychotropic substances. 

Implementation and enforcement capacity 

The  number  of  detected  crimes 
related  to  drug  trafficking  and  the 
number  of  organised  crimes  groups 
broken up has remained steady, while 
the  number  of  detected  perpetrators 
has  increased.  North  Macedonia  still 
does not practice drugs destruction. 

information  was 

International  police  cooperation  to 
prevent  drug  trafficking  is  good.  In 
regularly 
2023, 
exchanged  via  established  channels 
the 
with  Europol, 
Southeast 
Law 
Enforcement  Centre  (SELEC).  A 
total 
789  messages  were 
exchanged through Europol’s SIENA. 
Under  SELEC,  North  Macedonia 
initiated two cases of drug trafficking. 

Interpol  and 

European 

of 

70
60
50
40
30
20
10
0

Graph 15: North Macedonia - Cases related to 
production and trafficking of drugs 

58

27

41

29

37

27

Number of
individuals /
legal entities
under
Investigation

n/a

n/a

Individuals /
legal entities
indicted

Final court
decision

Final
convictions

2022

2023

n/a: not available

Source: National data collected via the organised crime
and corruption track record (OCCTR) e-platform

No confiscated drugs were destroyed during the reporting period. 

Fight against terrorism 

The fight against terrorism is satisfactory. North Macedonia should continue to implement the actions 
agreed  under  the  Joint  Action  Plan  on  Counter  Terrorism  for  the  Western  Balkans  and  keep  its 
strategic and legislative framework up to date and aligned to the EU acquis and policy priorities. 

Institutional set-up and legal alignment 

North  Macedonia’s  legislative  framework  is  broadly  aligned  with  the  EU  acquis  and  international 
counterterrorism instruments. 

North  Macedonia  has  a  newly  appointed  national  coordinator  for  counterterrorism  and  countering 
violent extremism, after the former national coordinator and his two deputies were dismissed in July 
2024,  before the expiration  of their mandates.  North Macedonia  submits  regular  reports  and  carries 
out the actions necessary for fulfilling the objectives of the Joint Action Plan on Counterterrorism for 
the Western Balkans.  

In  January  2024,  the  government  adopted  the  national  terrorism  threat  assessment,  which  was 
prepared by using Europol’s Terrorism Situation and Trend (TeSAT) methodology. 

The country does not have a referral mechanism for preventing and countering violent extremism and 
radicalisation. 

Implementation and enforcement capacity 

North Macedonia implements the Joint Action Plan on Counterterrorism for the Western Balkans and 
submits regular reports. 

Greater  clarity  is  needed  on  the  division  of  powers,  tasks  and  responsibilities  between  local  and 
central  level  actors  involved  in  the  prevention  of  violent  extremism  and  terrorism.  Measures  are 
currently being implemented by local councils for prevention,  six community action teams and nine 
local multidisciplinary teams. 

40 

 
 
The penitentiary system strategy (2021-2025) includes measures against prison radicalisation. Prisons 
currently allow interaction between persons convicted for terrorists offences and other inmates, which 
increases  the  risk  of  radicalisation  and  can  potentially  lead  to  the  emergence  of  links  between 
terrorism  and  organised  crime.  Security  services  should  be  more  actively  involved  in  the  pre-  and 
post-release activities and processes. 

Online radicalisation remains one of the most prevalent forms of radicalisation. Appropriate financial 
and human resources, equipment and professional training are needed to tackle it. No foreign terrorist 
fighters were repatriated during the reporting period. 

During  the  reporting  period,  the  Public  Prosecutor’s  Office  for  Organised  Crime  and  Corruption, 
Financial  Investigation  Unit  of  the  Ministry  of  Interior,  and  other  competent  divisions  within  the 
National  Security  Agency  and  the  Ministry  of  Interior  submitted  18  orders  and  initiatives  for 
conducting analysis based on suspicions of terrorist financing and money laundering submitted to the 
Financial Intelligence Office.  

Judicial cooperation in civil and criminal matters 

Judicial cooperation in civil and criminal 
matters needs to be improved. 

The number of requests for mutual legal 
assistance  in  civil  matters  has  fallen 
steadily, while the number of requests for 
mutual 
in  criminal 
matters has remained steady. 

legal  assistance 

1400

1200

1000

800

Graph 16 - North Macedonia - Requests for 
mutual assistance in civil and criminal matters

1167

1141

1213

973

801

806

811

717

588

600

0

is 

400

200

287

179

218

 Progress  on  the  legal  framework  for 
cooperation  in  civil  and  commercial 
matters  was  limited.  The  Draft  Law 
ratifying  the  Hague  Convention  of  30 
June  2005  on  Choice  of  Court 
Agreements, 
in  the  Parliamentary 
procedure.  North  Macedonia  should  still 
ratify  the  1996  Hague  Child  Protection 
the  2007  Hague  Child 
Convention, 
Support Convention and its Protocol on Applicable law, which have been already signed. The country 
should  take  the  necessary  steps  to  ratify  the  2019  Hague  Convention  on  the  Recognition  and 
Enforcement  of  Foreign  Judgments  in  Civil  or  Commercial  Matters  (the  ‘Hague  Judgments 
Convention’). 

Civil
Incoming requests

Source: Ministry of Justice

Outgoing requests

Criminal

2023

2021

2022

2022

2023

2021

In  February  2024,  the  Minister  of  Justice  signed  the  Ljubljana–Hague  Convention  on  International 
Cooperation in the Investigation and Prosecution of the Crime of Genocide, Crimes against Humanity, 
War Crimes and other International Crimes. 

Cooperation  with  Eurojust  continues.  The  Eurojust  Liaison  Prosecutor  of  North  Macedonia  was 
officially appointed in February 2024, but the government has still not ensured the necessary funds to 
become  fully  operational.  The  Eurojust  Liaison  Prosecutor  was  actively  engaged  in  facilitating 
investigations.  In  2023  there  was  a  workload  of  95  cases,  out  of  which  36  were  new.  North 
Macedonia has a working arrangement with EPPO. 

Four joint international team (JIT) agreements were signed. 

Legal and irregular migration 

The management of legal and irregular migration needs to be improved. 

Institutional set-up and legal alignment 

North  Macedonia  has  strategic  documents  in  place  on  migration,  including  the  2021-2025  national 
strategy  for  integrated  border  management  and  accompanying  action  plan  for  2022-2025,  and  the 
resolution on migration policy for 2021-2025. 

41 

 
 
The country continues to actively manage mixed migration flows. The legal framework is broadly in 
line  with  European  standards.  Institutional  and  administrative  capacity  needs  to  be  strengthened  by 
increasing human, technical and material resources. 

The Law on work and employment of foreigners and legislation on the right to family reunification in 
the case of registered partnerships needs to be further aligned with the EU acquis. 

Overall,  North  Macedonia  needs  to  strengthen  its  institutional  and  administrative  capacity  for 
managing  migration  by  increasing  the  number  of  employees  and  providing  additional  material  and 
technical resources. 

In  2023,  a  total  of  235  Roma,  Askhali  and  Egyptian  individuals  from  Kosovo  remained  in  the 
country,  160  of  whom  had  their  international  protection  expired.  These  individuals  were  in  a 
vulnerable position due to their lack of legal status and insufficient access to basic rights. However, 
this  issue  has  been resolved.  The majority  of the 190  refugees received  documents giving them the 
right to remain in North Macedonia, and a few were granted citizenship by Kosovo. 

Implementation and enforcement capacity 

Arrivals from Syria fell in 2023 and arrivals from Afghanistan continue to decrease steadily. Arrivals 
from  Morocco  are  increasing,  however.  Cases  of  migrant  smuggling  increased  in  2023,  and  the 
number of smuggled migrants that were detected in 2023 was similar to that of 2022. 

25000

20000

10000

22967

13954

15000

Graph 17: North Macedonia - Number of irregular movements

Systematic  migrant 
registration 
and 
protection-sensitive 
profiling  remains  a 
The 
priority. 
fragmentation 
of 
tasks 
across 
institutions  makes 
migration 
less 
management 
Frontex 
effective. 
conducted  an 
in-
depth review, which 
provided 
a 
comprehensive  and 
detailed  implementation  plan  to  develop  IT  systems  that  are  interoperable  with  EU  IT  systems  and 
communication infrastructure to identify and register migration flows, in line with EU requirements.  

2022
Source: International organization for migration

n
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11018

14325

1022

2644

4452

2253

2541

5500

2865

5000

2021

2023

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The two temporary transit centres for short-term accommodation, with a joint capacity of 2 000, are 
unsuitable for longer stays. Their status does not yet comply with national legal standards, and they 
lack adequate protection services such as medical or psychosocial assistance and interpretation. 

Since  Frontex  became  operational  at  the  southern  border,  the  registration  of  apprehended  irregular 
migrants has improved significantly. The fight against migrant smuggling needs to be stepped up by 
targeting  individual  members  of  migrant  smuggling  groups,  including  through  international 
cooperation. 

North  Macedonia  continues  to  implement  readmission  agreements  with  EU  countries.  It  has  an 
agreement with the EU and implementing protocols with 11 Member States, and bilateral readmission 
agreements  with  eight  non-EU  countries.  North  Macedonia  is  negotiating  additional  protocols.  The 
lack of readmission agreements with countries or origin remains a challenge. 

 This designation is without prejudice to positions on status and is line with UNSCR 1244/1999 and the ICJ Opinion on the 
Kosovo declaration of independence. 

42 

 
 
 
The arbitrary detention of irregular migrants in the Gazi Baba Detention Centre who are to be brought 
before  the  Criminal  Court  to  make  a  statement  is  still  a  cause  for  concern.  Registration  of  asylum 
applications increased significantly in 2023 to 59.3% (from 19.6% in 2022). Effective judicial control 
over  detention  practices  is  lacking  and  detained  migrants  benefit  only  from  legal  counselling  and 
assistance  in  the  asylum  procedure.  Living  conditions  are  still  unsatisfactory,  as  pointed  out  by  the 
National Preventive Mechanism under the Ombudsman. 

Asylum 

The management of asylum needs to be improved. 

Institutional set-up and legal alignment 

Despite only partial alignment with the EU acquis, there were no legislative developments on asylum 
during the reporting period, and the quality of asylum procedures remains a concern. 

The absence of personal identification numbers for asylum seekers remains a critical barrier to their 
systematic access to rights such as employment, opening a bank account or education certificates. ID 
cards  are  not  issued  immediately  after  an  asylum  application  is  submitted  and  are  not  machine-
readable, in contrast to documents issued to other non-nationals. 

Asylum  decisions  lack  legal  reasoning  and  individualised  assessments.  Highly  qualified  staff  are 
needed to work on asylum cases at administrative level. A lack of State-funded interpretation services 
throughout the asylum procedure is still a major gap. 

Efforts  are  also  needed  to  improve  the  provision  of  information  on  international  protection  and 
counselling  in  detention  facilities  and  at  border  crossings.  Further  efforts  are  needed  to  address 
delayed family reunification for people under subsidiary protection, notably unaccompanied minors. 

The third generation of the Roadmap for Cooperation agreed between the European Union Agency for 
Asylum (EUAA) and North Macedonia for 2023-2025 is in place and remains a key tool to strengthen 
the asylum and reception system. The cooperation with the EUAA is good, while further progress is 
needed,  notably  as  regards  the  improvement  of  reception  conditions,  including  for  asylum  seekers 
with special needs.    

Implementation and enforcement capacity 

North  Macedonia remains  a  transit  country.  However,  asylum  applications in  the  country  increased 
significantly  from  168  in  2022  to  604  in  2023.  There  was  a  major  increase  in  asylum  applications 
from Morocco. However, no individual has been granted refugee status since 2016. 

the  asylum 
Implementation  of 
procedure  is  not  aligned  with  the 
EU acquis. Expulsion decisions are 
made  without  quality  assessment, 
and  without  ensuring  that  returned 
asylum  seekers  will  not 
face 
persecution  in  their  country  of 
origin.  Asylum  procedures  are 
lengthy  and  may  last  for  several 
years  as  from  the  date  of  first 
registration. 

700
600
500
400
300
200
100
0

Graph 18: North Macedonia - Asylum applications 

22

16

4

100 82

16

3

260

168

35

32

604

l

a
t
o
T

There is no legal framework on the 
integration  of  asylum  seekers  and 
no  comprehensive  approach  on 
integration. There is a delay in the 
activation of social assistance and health insurance for those granted international protection. 

2023
Source: Ministry of Interior

2021

2022

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Asylum-seeking children's enrolment in primary education continued as provided for under the Law 
on  primary  education,  but  not  always  immediately  after  arrival.  A  lengthy  diploma  verification 

43 

 
 
process or the inability to provide documents should not delay school enrolment. The same should be 
replicated in secondary education. 

Visa policy 

The visa regime is broadly aligned with the EU lists of visa-required and visa-free countries, except 
for  Türkiye,  whose  nationals  are  subject  to  a  visa  requirement  to  enter  the  Schengen  Area  but  can 
enter  North  Macedonia  visa  free.  The  Commission’s  sixth  report  under  the  Visa  Suspension 
Mechanism  of  2023  concluded  that  North  Macedonia  continued  taking  action  to  address  the 
Commission’s  previous  recommendations  and  recommended  that  North  Macedonia  continue  this 
good  progress.  According  to  Eurostat,  in  2023,  6 760  nationals  of  North  Macedonia  applied  for 
asylum in the EU27 (slight increase of 2% compared to 6 605 in 2022). 

Schengen and external borders 

The  legislative  framework  for  the  management  of  external  borders  is  broadly  aligned  with  the  EU 
acquis. 

Institutional set-up and legal alignment 

No major changes were made to the Department of Border Affairs and Migration during the reporting 
period.  The  status  agreement  between  North  Macedonia  and  the  EU  is  being  implemented  without 
problems, through the Frontex Joint Operation North Macedonia. 

Implementation  of  the  integrated  border  management  strategy  and  the  corresponding  action  plan  is 
under way. Cross-border cooperation with neighbouring countries continues. 

In  line  with  the  Prespa  Agreement,  albeit  with  delay,  the  country  is  in  the  process  of  changing  all 
travel documents to include the name of North Macedonia. Old travel documents were no longer valid 
as from 12 April 2024 and North Macedonia did not allow citizens with old travel documents to exit 
the country.  

Implementation and enforcement capacity 

Cooperation with the competent border services of Albania, Bulgaria, Kosovo and Serbia is done in 
line with the Schengen catalogue of recommendations and best practices. The following agreements 
were  signed  and  are  being  implemented:  agreement  on  freedom  of  movement  with  identity  cards 
(Western Balkans); agreement on regulation of local traffic; and agreement on continuous prosecution 
of perpetrators of crimes. 

Euro counterfeiting (criminal law aspect) 

The  relevant  legislation  is  broadly  in  line  with  the  EU  acquis  on  the  suppression  of  counterfeit 
currency. 

All aspects of customs cooperation are covered in Chapter 29 – Customs Union. 

44 

 
 
2.3. ECONOMIC CRITERIA 

2.3.1. The existence of a functioning market economy 

Economic governance 

The government started work on key reforms.  The new Fiscal Council was set up, despite some 
recruitment  obstacles,  and  its  rulebook  and  statutes  were  adopted.  A  new  department  for  public 
investment management was set up in the Ministry of Finance, but its operations are still hampered by 
staffing and IT issues. The government phased out certain untargeted energy support measures and, at 
the  end  of  2023,  adopted  some  electricity  market  reforms,  including  a  gradual  reduction  of  the 
regulated  market,  which  are  expected  to  lead  to  a  lower  fiscal  burden.  The  Parliament  adopted 
amendments to several tax laws, cutting tax expenditure and broadening the revenue base. 

The policy guidance jointly agreed at the May 2023 Economic and Financial Dialogue has been 
partially implemented. Besides the fiscal reforms, the government took steps to address the informal 
economy and promote energy efficiency investments. It also adopted three key laws on education and 
strengthened active labour market policies. North Macedonia met the policy conditions linked to the 
first instalment (EUR 50 million) of the EU’s macro-financial assistance, which was disbursed in May 
2024. In January, the IMF completed the first review of the precautionary and liquidity line (PLL), 
which gives the authorities access to around EUR 200 million. 

Macroeconomic stability 

45 

Table 7.1:202120222023North Macedonia - Key economic figuresGDP per capita (% of EU-27 in PPS)1)41434241Real GDP growth 1.64.52.21.0Activity rate of the population aged 15-64 (%), total65.366.866.465.4      female52.655.154.354.7      male77.778.478.476.0Unemployment rate of the population aged 15-64 (%), total2)21.315.814.513.2      female20.813.812.611.4      male21.616.915.914.4Employment of the population aged 15-64 (annual growth %)2)2.3n.a.n.a.-0.2Nominal wages (annual growth %)4.45.711.115.3Consumer price index (annual growth %)0.73.214.29.4Exchange rate against EUR61.5861.6361.6261.56Current account balance (% of GDP)-1.8-2.8-6.10.7Net foreign direct investment, FDI (% of GDP)2.93.35.03.8General government balance (% of GDP)-3.4-5.3-4.4-4.9General government debt (% of GDP)41.551.450.553.1Notes: 1) Eurostat2) From Q1-2022, the Labour Force Survey is based on the results of the 2021 population census,     restricting comparability with previous year's data. The Statistical Office has     so far revised 2017-21 data based on census data.Source: national sources2015-20 average 
 
 
The  post-pandemic  economic  recovery  remained  weak.  Annual  GDP  growth  dropped  to  an 
estimated  1%  in  2023,  down  from  2.2%  in 
2022,  due  to  weak  domestic  demand.  Gross 
capital formation declined sharply, mainly as a 
result  of  a  draw-down  of  inventories.  Growth 
in  household  consumption  slowed  despite 
being  bolstered  by  wage  growth,  remittances 
and  government  support.  The  foreign  balance 
made a large positive contribution to economic 
growth,  as  imports  of  goods  and  services 
dropped  sharply,  amid  falling  global  energy 
prices. In the first half of 2024, GDP increased 
by  1.8%  on  average,  largely  on  account  of  a 
steep drop in imports, overcompensating for the simultaneous decline in exports. Domestic demand 
remained  weak,  with  household  consumption  growth  slowing  further,  to  1.4%  on  average,  after  a 
2.4%  rise  in  2023,  while  the  positive  contribution  from  investment  largely  reflected  base  effects. 
Convergence with EU income levels remained slow, with real GDP per capita increasing from 37% of 
the EU-27 average in 2017 to 43% in 2021, and then dropping gradually to 41% in 2023. 

for 

imported  electricity, 

The  country’s  external  position  improved  substantially.  The  current  account  deficit,  which  had 
surged to 6.1% of GDP in 2022 due to the rise in energy prices, improved gradually throughout 2023 
and moved into an annual surplus of 0.7% of 
GDP. As energy prices declined and domestic 
production  of  electricity  increased,  reducing 
the 
the  need 
merchandise 
fell  by  7.6 
trade  deficit 
percentage  points  (pps)  to  18.9%  of  GDP. 
This  was  coupled  with  a  rise  in  remittances, 
while  the  services  balance  surplus  dropped, 
and  the  primary  balance  deficit  deteriorated. 
Yet,  in  the  first  half  of  2024  the  current 
account  moved  back  into  deficit,  as  the 
merchandise  trade  balance  deteriorated  and 
remittances  declined,  in  annual  comparison. 
Foreign direct investment, at some 3.8% of GDP, was lower than in 2022 (5%), but still above the 5-
year average. It recovered significantly in the first half of 2024, amounting to 4.9% of GDP. However, 
the economy remains vulnerable to a potential renewed surge in energy prices, given its high energy-
intensity  and  still  large  reliance  on  imported  energy.  Foreign  exchange  reserves  increased 
substantially  in  2023  and  were  16.5%  y-o-y  at  end-July  2024,  covering  some  4.2  months  of 
prospective imports. Gross external debt, excluding central bank transactions, stood at 85% of GDP at 
the  end  of  the  first  quarter  .,  with  its  structure,  dominated  by  long-term  and  fixed-rate  financing, 
posing little risk. 

Inflation  slowed  down,  allowing  the  central  bank  to  stop  tightening  monetary  policy.  Annual 
inflation peaked in October 2022 at 19.8% and receded gradually in 2023, due to the global levelling-
out of food and energy prices and to monetary policy tightening. Average annual inflation fell from 
9.6% in 2023 to 3.8% on average in the first half of 2024, dropping to 2.2% in August. Core inflation 
slowed, too  - albeit at a slower pace  - amid high nominal wage growth. Since September 2023, the 
central bank has kept the key policy rate unchanged at 6.3%. 

The fiscal  deficit widened, despite revenue-increasing tax measures.  At 4.9% of GDP, the 2023 
budget  deficit  increased  and  was  slightly  higher  than  the  government’s  target  (4.8%),  partly  due  to 
weaker  than  projected  GDP  growth.  A  budget  reallocation  became  necessary  in  September  2023, 
mainly to accommodate higher public sector wages, pensions and social transfers, while leaving the 
deficit  target  unchanged.  The  high  execution  of  capital  expenditure  in  2023,  at  97%  of  the 
government’s target,  well above the average of the previous 5 years (83%),was mainly due to EUR 

46 

 
 
230 million pre-payment to the building consortium tasked with the construction of parts of Corridors 
8 and 10d, as well as EUR 80 million in subsidies to the domestic electricity producer. Revenues in 
2023 increased by 14% y-o-y, boosted by a one-off ‘solidarity tax’ on excess corporate profits. Tax-
base broadening amendments to several tax laws entered into force in October 2023. In autumn 2023, 
the Parliament adopted further amendments to several laws to eliminate tax exemptions, notably to the 
Law on excise taxes, the VAT law, the Corporate Income Tax law, and the Decree on motor vehicle 
taxation, which entered into force on 1 January 2024. In the first seven months of 2024, revenue was 
higher  by  12.6%  compared  to  the  same  period  one  year  earlier,  mainly  due  to  higher  taxes  and 
contributions, and expenditure had risen by 7.8%. The general government deficit dropped by 19.5% 
during  this  period.  In  July,  the  new  government  adopted  a  budget  revision  for  2024,  which  was 
approved  by  the  Parliament  in  August.  It  projects  an  increase  in  both  revenue  and  expenditure, 
compared to the original targets, with the planned deficit rising from previously 3.4% - as agreed with 
the IMF - to 4.9% of projected GDP.  

the 

increase 

Public  debt  increased  further  during  the 
reporting  period,  and  though  it  is  still 
relatively  high,  its  structure  poses  a  low 
risk.  In  2023,  the  public  debt  ratio  rose  by  3 
pps  compared to  end-2022.  It  stood at  62.1% 
of  GDP,  which  was  significantly  above  its 
level  of  five  years  earlier  (48.4%).  The  rise 
in  general 
mainly 
reflects 
government  debt  during 
( 
+12.7pps),  with  the  remainder  due  to  higher 
debt  of  public  sector  enterprises  which  are 
financing  the  government’s  large  energy  and 
transport  infrastructure  projects.  The  share  of  fixed  interest  rate  debt  in  total  debt  remains  high  at 
74%. Foreign currency debt, mostly denominated in euro accounted for 71% of total debt, somewhat 
less  than  in  20229.  The  de  facto  exchange  rate  peg  to  the  euro  implies  limited  debt  vulnerabilities 
stemming  from  fluctuations  in  the  value  of  the  denar.  In  view  of  the  large  investments  required  to 
reach  the  country’s  decarbonisation  targets,  and  the  need  to  mobilise  new  funding  sources,  the 
government issued its first green bond in October 2023. 

this  period 

The  adoption  of  implementing  legislation  for  the  organic  budget  law  (OBL)  is  progressing 
slowly. The OBL, which was passed by the Parliament in September 2022 and  is supposed to enter 
into  force  in  its  entirety  by  1 January  2025  introduces  fiscal  rules10  and  a  Fiscal  Council,  and 
strengthens the medium-term budget procedure. Fiscal Council members have been appointed by the 
Parliament and have taken up work assignments, but recruiting staff to the Council’s secretariat has 
been  challenging.  The adoption  of  secondary legislation  to implement  the  OBL  is  behind  schedule. 
This includes key implementing acts on introducing a budget classification, for example, which need 
to  be  in  place  to  ensure  the  full  application  of  the  law  by  2025.  Fiscal  risks  are  sizeable,  not  well 
monitored  and  some  of  them,  such  as  contingent  liabilities  arising  from  public-private  partnerships 
(PPPs) and other off-budget entities are not systematically reported to the central government11. The 
construction of Road Corridor 8 and 10d sections, projected to cost EUR 1.3 billion (11.5% of 2023 
GDP)  with  works  spanning  6  years,  is  subject  to  opaque  terms  of  contract  as  well  as  a  risk  of 
substantial  cost  overrun  coupled  with  a  lack  of  due  diligence,  which  the  government  partially 
addressed  in  2023  as  requested  by  the  IMF.  Reforms  to  modernise  the  legal  framework  for  PPPs 
stalled. 

9 In 2023, the government increased domestic issuance above the original plan, as some planned disbursements of foreign 
loans were protracted. 
10  The  new  organic  budget  law  introduces  a  3%  limit  for  the  general  government  deficit  and  a  60%  limit  for  general 
government debt (in principle applicable since 2023, but suspended in response to an escape clause until 2025). 
11  The  new  organic  budget  law  requires  that  the  government  includes  a  description  of  fiscal  risks  (at  a  minimum,  those 
pertaining to the government’s contingent liabilities) in the annual fiscal strategy; and that the Fiscal Council assesses fiscal 
risks relating to various public entities, including public enterprises and public-private partnerships. 

47 

 
 
 
The policy mix did not fully address the challenges posed by high inflation. Monetary policy was 
appropriately  tightened  due  to  soaring  inflation.  It  then  turned  neutral  when  inflation  abated,  while 
fiscal policy became expansionary, providing for a 10% ad hoc increase in public sector wages which 
entered  into  force  in  September  2023,  and  ad  hoc  pension  increases  (5.3%  adjustment  as  of  March 
2024 and a flat sum of 2500 MKD for all pensioners in two rounds). This not only increases domestic 
risks should there be a new surge in inflation, but it also adds to already elevated fiscal risks. 

Functioning of product markets 

Business environment 

Challenges posed by the large informal economy have not been addressed decisively. The large 
informal economy, accounting for as much as 38% of GDP according to IMF estimates, undermines 
the  competitiveness  of  domestic  companies.  The  country’s  informal  sector  takes  various  forms,  of 
which the most prominent are unregistered labour, partially undeclared wages and other irregularities 
in the enforcement of the Labour Relations Act. This is of concern to local businesses, as it  distorts 
competition, decreases the quality of the business environment, leads to shortfalls in public revenue 
and  leaves  some  workers  without  social  protection.  In  June  2023,  the  government  adopted the  new 
2023-2025  strategy  and  action  plan  for  the  formalisation  of  the  informal  economy.  The 
implementation of the government’s 2018 strategy and action plan to combat the informal economy 
remained sluggish. 

State influence on the product market 

Transparency and efficiency of State aid is still unsatisfactory. The transparency and effectiveness 
of State aid is affected by the high number of State aid providers, the lack of an updated registry, and 
the still marginal competence of the Commission for the Protection of Competition (CPC) in State aid 
supervision.  The  public  information  on  State  aid  that  the  government  provides  to  companies  is 
incomplete and the criteria for selecting beneficiaries is often unclear. To enable the establishment of 
a  State  aid  registry,  the  government  is  setting  up  a  management  information  system  connecting 
different institutions, but the process is delayed. 

Privatisation and restructuring 

The  public  sector’s  stake  in  the  economy  is  low.  In  2023,  the  number  of  companies  in  full-State 
ownership  declined  by  one,  to  14.  The  number  of  companies  in  partial  ownership  remained  at  38, 
most of these with a State ownership share of below 1% of issued capital12. The total value of State 
ownership in enterprises declined, from about 10% of GDP in the preceding years, to 8%. 

Functioning of the financial market 

The banking sector proved resilient and the macroprudential toolkit was bolstered. The capital 
adequacy ratio of banks increased to 17.2% at the end of 2023, far exceeding the regulatory minimum 
of 8%. Their return on equity soared to 16.1%. Liquidity was ample, with liquid assets accounting for 
over one-third of total assets at the end of 2023. The ratio of non-performing loans in total loans to the 
non-financial sector fell to a record low of 2.8%. However, financial intermediation is still relatively 
weak, with financial sector assets at below 90% of GDP. Diversification has been progressing only 
slowly, with banks accounting for almost 80% of total financial sector assets at the end of 2023. The 
share of foreign equity in total bank equity continues to be high, at around 79%. Annual growth of 
deposits accelerated in 2023 amid higher interest rates, while bank lending to the private sector lost 
momentum (-3.4 pps y-o-y to 6.2%). The funding of loans by deposits remained solid, with the loan-
to-deposit ratio for non-financial clients at 81.6% at the end of 2023. The macroprudential framework 
was further strengthened. The central bank continued to implement staggered increases in the counter-
cyclical  capital  buffers  and  introduced  borrower-based  macroprudential  measures  to  reduce 

12  The  figures  are  based  on  information  from  the  government.  A  new  harmonised  and  internationally  standardised  global 
database of State-owned enterprises (SOEs) by the World Bank shows that there are 88 SOEs, of which 35 are owned by the 
Government of North Macedonia at 100% ownership. 

48 

 
 
 
vulnerabilities  in  the  housing  market.  The  bank  resolution  law  was  passed  by  the  Parliament  in 
October 2023, but the Deposit Insurance Law has not been adopted yet. 

Functioning of the labour market 

lost 

Employment 

labour  market 

some 
The 
momentum. 
gains 
diminished somewhat in 2023, compared to 
preceding  years,  while  the  outflow  of 
labour  became  more  pronounced.  On 
average,  the  unemployment  rate  fell  to 
13.2%  in  2023,  compared  with  14.5%  in 
2022. Labour market participation dropped 
to  65.4%  (-1  pp  y-o-y),  on  account  of  a 
lower  rate  for  men,  while  the  activity  rate 
for  women 
slightly.  The 
increased 
unemployment rate for young people (aged 15-24) declined by 3.2 pps, to 29.3%, reflecting a strong 
fall  in  the  labour  force  in  this  cohort  (-5.5%  y-o-y).  North  Macedonia  has  been  implementing  the 
Youth  Guarantee  since  2018,  which  has  helped  it  to  reduce  youth  unemployment  significantly  in 
recent years, which, however, still remains high. Average gross nominal wages rose by 15.3% y-o-
y  in  2023,  with  the  annual  increase  accelerating  to  16.8%  in  January.  In  real  terms,  wages  rose  by 
5.4% in 2023, and by a further 13.2% in January 2024, reflecting the stark further decline in inflation. 

2.3.2. The capacity to cope with competitive pressure and market forces within the Union 

Education and innovation 

The reform of vocational education training (VET) is slow, while skills mismatches persist. The 
number  of  people  with  higher  educational  attainment  has  increased,  but  curricula  fail  to  equip 
graduates  with  necessary  skills  to  match  labour  demand.  In  particular,  the  lack  of  technical  skills 
among VET graduates is seen as a major bottleneck by businesses. In 2023, the Government adopted 
the Law on VET, which aims to overcome the fragmentation of the VET institutions. The law has yet 
to be adopted by the Parliament.  Public spending on education and training remained stable in 2023 
at 3.7% of GDP (below the EU level of 5%). However, spending is inefficient, mainly due to outdated 
formulas  for  the  redistribution  of  public  education  funds  by  the  municipalities.  At  0.4%  of  GDP 
(including  a  small  share  from  the  private  sector),  the  economy’s  expenditure  on  research  and 
innovation is still very low. In December 2023, the government adopted the new smart specialisation 
strategy and action plan to guide research and innovation for each sector. 

Physical capital and quality of infrastructure 

Despite  the  urgent  need  to  modernise  the  economy’s  infrastructure, investment  in this  area  is 
low.  The  need  to  modernise  the  country’s  capital  stock,  in  particular  the  transport  and  energy 
networks is pressing, while works on a number of important projects, such as Road Corridors 8 and 
10d,  are  delayed.  While  public  investment  as  a  share  of  GDP  increased  markedly  in  2023,  overall 
investment dropped sharply, mainly as companies drew down stockpiles gathered during the energy 
crisis. 

The digitalisation of the economy is advancing slowly. The percentage of households with internet 
access  at  home  increased  by  10.1  pps  between  2017  and  2021,  to  83.6%.  A  fixed  broadband 
connection to the internet is used by 88% of household users, and by 92% of larger businesses, while 
smaller companies and rural areas still face obstacles. More effort is needed to improve digital skills, 
including  by:  (i)  setting  up  a  national  framework  for  digital  skills  for  students  and  teachers;  (ii) 
increasing IT tools in primary and secondary schools; and (iii) expanding access to fast-speed internet 
to small business and to non-urban areas. 

Measures to improve energy efficiency are delayed. The economy is characterised by high energy 
intensity with low efficiency in energy production and consumption.  Energy efficiency is one of the 
key  pillars  to  reach  the  ambitious  national  energy  and  climate  targets.  The  new  Energy  Efficiency 

49 

 
 
Fund (EEF) was set up in 2023 as a dedicated unit within the Development Bank, with the necessary 
amendments to the Law on the Development Bank adopted by the Parliament in October 2023.  The 
first EEF will focus on municipalities and other public entities with the possibility of expanding the 
scope to the residential sector. 

The  government  increased  renewable  energy  capacities.  While  the  economy  continues  to  rely 
heavily  on  coal-fired  electricity  production,  the  installed  capacity  of  power  plants  from  renewable 
energy sources increased to 50% in 2023, from some 17% in 2021. Renewables accounted for 33% of 
total  electricity  production.  The  most  notable  increase  is  in  the  production  of  electricity  from 
photovoltaic power plants, which increased by 287% in 2023 compared to 2022. However, progress 
on climate change abatement policies is lagging. The adoption of the Law on climate change, which 
provides for the introduction of carbon pricing mechanisms is delayed. 

Sectoral and enterprise structure 

Trade  and  services  are  becoming  more  important  for  the  economy.  The  economy’s  output 
structure relies increasingly on services and trade (67.3% of total value added in 2023, compared with 
66% in 2022). The share of manufacturing in value added decreased further in 2023, for the third year 
in a row, to 14.3%, after having progressively gained ground in the pre-pandemic years. The share of 
construction  increased  slightly  to  6.3%  y-o-y,  in  spite  of  weak  investment  activity,  yet  remained 
below its average of 7% in 2017-2021. The share of agriculture dropped to 8.1% of value added. 

Economic integration with the EU and price competitiveness 

Trade openness decreased but it is still at historically high levels.  Exports and imports in goods 
and services as a share of GDP dropped by 12 pps to 159% in 2023 mainly due to a decrease in import 
values  following  the  energy  price  drop,  but  remains  above  its  5-year  pre-COVID  average  of 
120%.The share of higher-value added products in the export structure rose further in 2023, including 
chemicals (38% of total goods exports) and machinery and transport equipment (34%). The EU is the 
country's  main  trading  partner,  accounting  for  59.6%  of  total  trade.  CEFTA,  the  country's  second 
biggest trading partner, accounting for 10%. EU countries are also still the biggest investors in North 
Macedonia, accounting for some 47.4% of total FDI inflows in 2023, after a record high of 69.7% in 
2022. The EU-27 share in the total stock rose to 65% in 2022, up from 64.2% in 2021. 

External competitiveness decreased slightly. The CPI-deflated real effective exchange rate (REER), 
as a measure of external competitiveness, appreciated by 2.5% in 2023, continuing the trend seen in 
previous years. This was due to an increase in the nominal effective exchange rate by 2.8%, mainly on 
account of its relation to the Turkish lira, with relative prices remaining stable. Nominal unit labour 
cost  rose by some  8% in 2023,  reflecting the  strong  rise  in  nominal  wages in  a context  of  subdued 
productivity  growth.  Over  the  preceding  5  years,  the  REER  of  the  denar,  which  deflated  due  to 
inflation, barely changed in either direction (a small appreciation of 1% on average). 

2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL 

Chapter 5: Public procurement 

EU rules ensure that the public procurement of goods, services and works in any Member State is 
transparent and open to all EU companies on the basis of non-discrimination and equal treatment. 

50 

 
 
 
Institutional set-up and legal alignment 

The legal framework on public procurement is largely aligned with the EU  acquis. The practice of 
‘blacklisting’ companies due to professional misconduct during the procurement phase is still present, 
which  is  not  in  line  with  the  EU  rules.  In  2023,  35  negative  references  were  issued  against  32 
economic  operators,  9  negative  references  expired  and  3  negative  references  were  removed  by  the 
Public  Procurement  Bureau  (PPB).  By  end  of  2023,  23  negative  references  were  active.  On 
30 October  2023,  North  Macedonia  became  member  of  the  WTO’s  Agreement  on  Government 
Procurement (GPA) and thus gained new market access opportunities while opening its procurement 
market to other GPA parties. 

The finalisation and adoption of the PPP Law and the Law on Concessions is delayed. The capacity of 
the Ministry of Economy, dealing with concessions and PPPs, remains limited. During 2023, two new 
agreements establishing a PPP were concluded. The PPP register and the register on concessions still 
needs to be established. 

The Corridor VIII and X-d project continues to raise concerns over the use of the Law on strategic 
investments  to  bypass  public  procurement  regulations.  The  contract  for  constructing  the  largest 
infrastructure  project  in  the  country’s  history  was  directly  awarded  to  an  international  consortium 
without a competitive bidding process. Additionally, the contract has been labelled confidential and 
has  not  been  made  public.  The  electronic  system  for  public  procurement  is  functioning  efficiently. 
During 2023, the e-market system was used for awarding 258 small value procurements. 

Implementation and enforcement capacity 

In 2023, the public procurement market13 amounted to 10.9% of the country’s GDP as compared to 
8.6% in 2022. It represented 28.3% of the state budget. Competition in public procurement remains 
limited.  The  use  of  negotiated  procurement  procedures  decreased  to  1.6%  in  2023,  as  compared  to 
6.6%  in  2022.  Tender  cancellation  decreased  to  26.95%  (19%  complete  and  7.95%  partial 
cancellation) in 2023 as compared to 31% (21% complete and 10% partial cancellation) in 2022. 

Despite  the  publication  on  the  use  of  qualitative  award  criteria,  the  use  of  most  economically 
advantageous tender (MEAT) as an award criterion is still limited. In 2023 only 1 336 procurement 
notices out of 24 005 procurement notices applied MEAT criteria (5.6%). In terms of value, only 9% 
of the tenders used MEAT criteria. Further training and guidelines on the application of MEAT needs 
to be organised. 

The capacity to manage public procurement processes needs to be further enhanced, especially at 
the local level, in order to ensure a more coherent approach in procurement cycle management. The 
quality of tender documentation remains a challenge for smaller contracting authorities. At the end of 
2023 there were 1 142 certified public procurement officers. 

The  public  procurement  strategy  includes  measures  to  fight  against  corruption  and  conflict  of 
interest.  In  this  respect,  the  risk  management  systems  incorporated  in  the  procurement  cycle  and 
reporting  on  possible  corrupt  practices  or  irregularities  have  to  be  reinforced.  Red  flag  reports  are 
published on the PPB’s website but follow-up is still insufficient. 

Efficient remedy system 

The  legislation  on  the  right  to  legal  remedy  is  broadly  harmonised  with  the  EU  acquis.  The 
implementation capacity of the State Appeal Commission (SAC) remains insufficient in view of the 
significantly number of appeals (1 019 in 2023, 967 in 2022). There is a need for additional qualified 
staff in order to ensure timely processing of the appeals. In 2023, 88 complaints were filed against the 
decisions of the State Appeals Commission before the Administrative Court. 

13 Statistics do not include the contract for Corridor VIII and X-d as it was concluded by a special law and not following 
usual public procurement procedures. 

51 

 
 
 
Chapter 18: Statistics 

European statistics are developed, produced and disseminated by EU Member States, guided by the 
principles  and  quality  criteria  elaborated  in  the  Regulation  on  European  statistics,  such  as 
professional independence, impartiality, reliability, transparency and confidentiality. Common rules 
are provided for the methodology, production and dissemination of statistical information, which are 
further specified in sectoral legislation that constitute the EU acquis on statistics. 

Whereas the statistical infrastructure has reached high level of alignment with the EU acquis, the 
level of human resources at the State statistical office (SSO) poses a significant challenge for efficient 
implementation.  Further  efforts  are  required  to  modernise  statistical  production  by  using  existing 
administrative information. 

On  classifications  and  registers,  the  main  classifications  are  in  place  and  are  in  line  with  the  EU 
acquis.  The  regional  classification  is  highly  compliant,  but  there  is  no  compliance  as  regards  the 
territorial typologies. 

In  the  area  of  macroeconomic  statistics,  the  excessive  deficit  procedure  (EDP)  statistics  and  the 
government finance statistics (GFS) are compiled, but the data is not complete and still flagged as not 
for publication. To reduce significant gaps in terms of basis for recording and coverage of units, the 
full  set  of  data  on  GFS  should  be  completed  and  aligned  with  ESA  2010  methodology.  Sector 
classification needs to be updated and open issues related to the sectorisation of units will have to be 
resolved.  Transparency  on  GFS  and  EDP  needs  to  be  established.  Some  progress  was  noted  in 
national  and  regional  accounts,  but  further  improvements  are  required.  In  addition  to  production  of 
annual financial accounts and stocks, the National Bank started with regular production, publication, 
and dissemination of data for quarterly financial accounts and stocks as of October 2023, but further 
efforts are needed to ensure full alignment with EU standards. 

Some  progress  was  made  on  business  and  trade  statistics.  Short-term  statistics  in  the  field  of 
industry,  construction,  and  retail  trade  are  regularly  produced  according  to  the  European  Business 
Statistics.  The  country  has  not  transmitted  any  data  on  services  producer  prices  to  Eurostat.  North 
Macedonia still needs to fully align with the new requirements in business statistics. 

As regards social statistics, labour market statistics are partly aligned and further improvements are 
needed,  including  solving  some  IT  issues.  The  labour  force  survey  and  job  vacancy  statistics  are 
conducted on a quarterly basis. The timeliness of the Survey of Income and Living Conditions should 
improve.  

On  agricultural  statistics,  after  conducting  a  pilot  census  in  June  2022,  preparations  for  the  main 
agricultural census were halted due to the lack of necessary means and resources. The country should 
resume preparations for the agriculture census and implement it. Forestry accounts were compiled for 
the first time. 

On energy and environmental statistics, annual energy statistics and monthly and short-term energy 
statistics are transmitted to Eurostat. The methodology used for energy statistics is highly compliant 
with the EU acquis. Environment and sustainable development indicators are partly aligned with the 
EU acquis. The country continued to submit data to Eurostat for dissemination. Alignment of physical 
energy flow accounts needs improvement. 

Chapter 32: Financial control 

The EU promotes the reform of national governance systems to improve managerial  accountability, 
sound  financial  management  of  income  and  expenditure,  and  external  audit  of  public  funds.  The 
financial control rules further protect the EU’s financial interests against fraud in the management of 
EU funds and the euro against counterfeiting. 

Public internal financial control 

PIFC initiatives are embedded under pillar VII of the 2024-2027 Public Finance Reform Programme 
with 3 different priorities covering Financial Management and Internal Controls, Internal Audit and 
Financial Inspection. Furthermore, the Central Harmonisation Unit  has produced the annual report on 

52 

 
 
the  functioning  of  Public  Internal  Financial  Controls  but  it  was  still  pending  adoption  by  the 
government  by  September  2024.  Implementation  of  PIFC  reforms  continued  to  be  hindered  by  the 
substantial delay in adoption of the PIFC law, still in Parliamentary procedure after more than three 
years, and by the insufficient capacity of key institutions. 

to  be  further  reinforced.  Efficient 

The  legal  framework  on  internal  control  is  broadly  harmonised  with  international  standards  but 
implementation  needs 
implementation  of  managerial 
accountability remains a challenge for budget users at central and local levels. Coherent application 
of  the  manual  on  managerial  accountability  is  yet  to  be  ensured.  Risk  management  needs  to  be 
further strengthened. In 2022, 70% of institutions at central level had a risk management strategy and 
only 59.8% had prepared risk registers. 

There  has  been  good  progress  on  developing  secondary  legislation  for  the  implementation  of  the 
financial  inspection  law.  Yet,  financial  inspection  is  still  not  functioning  efficiently.  The  structure 
and human resources capacity of the financial inspection remains insufficient to implement its tasks. 
In 2023, it received 2 052 requests, but it could implement only 499. 

Fragmentation  and  inadequate  staffing  of  the  internal  audit  function  undermine  its  organisational 
capacity  and  quality  assurance.  According  to  the  last  report  on  the  functioning  of  PIFC  of  2023 
covering fiscal year 2022, 118 internal audit units were established at public sector entities at central 
level,  employing  116  internal  auditors.  Internal  audit  units  at  central  level  performed  128  audits  in 
2023. A national certification system for internal auditors still needs to be introduced. 

The  Central  Harmonisation  Unit  provides  methodological  guidance  and  coordinates  financial 
management and control and internal audit in the public sector. Its capacities remain insufficient for 
monitoring  and  reporting  on  the  functioning  of  the  overall  internal  control  system  of  1 380  public 
entities. 

External audit 

The new State audit law, that should strengthen SAO’s independence and role of the Parliament in 
following up individual audit reports, is still in government procedure. SAO carries out a compliance 
audit on the final government accounts of the core budget by June each year. The annual audit report 
was submitted to the Parliament and published in June 2024. 

The  quality  of  audit  work  is  sufficient.  In  2023,  SAO  carried  out  fully  the  2023  Audit  Work 
Programme that envisaged 66 audits. SAO submitted 11 reports to the Public Prosecution Office for 
information and follow-up. 

SAO’s  institutional  capacity  remains  insufficient.  The  systematisation  act  approved  in  December 
2022  envisages  245  job  posts,  out  of  which  118  (48%)  are  filled.  SAO’s  budget  for  2024  was 
approved as requested and it obtained additional funds for four new recruitments and 13 promotions. 

On  the  impact  of  audits,  SAO’s  recommendations  are  not  efficiently  implemented  by  the  auditees 
and  Parliamentary  follow-up  of  individual  audit  reports  needs  to  be  reinforced.  .  By  the  time  of 
publication  of  the  annual  report,  auditees  had  taken  measures  to  respond  to  71%  of  2023  audit 
recommendations. 

Protection of the EU’s financial interests 

National legislation is largely harmonised with the EU Directive 2017/1371 on the fight against fraud 
to the EU’s financial interests by means of criminal law. The capacities of the anti-fraud coordination 
services (anti-fraud coordination network) at the Ministry of Finance has to be strengthened as it has 
only three employees. In 2023, the national authorities reported four cases of irregularities through the 
irregularity management system, a decrease compared to the previous reporting period. The national 
authorities should continue building a track-record on cooperation with the European Commission on 
investigations and on reporting of irregularities. 

Protecting the euro against counterfeiting 

National  legislation  is  partially  harmonised  with  the  EU  regulations  defining  the  system  for  fight 
against  counterfeiting  of  the  euro.  The  capacities  of  the  National  Bank  and  Ministry  of  the  Interior 

53 

 
 
have  to  be  further  reinforced.  The  National  Bank  has  continued  to  carry  out  regular  mandatory 
trainings  for  employees in credit  institutions  and  private  cash  centres  for manual  verification  of  the 
authenticity of the cash in circulation. 

3. 

GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION 

Good  neighbourly  relations  and  regional  cooperation  form  an  essential  part  of  North  Macedonia’s 
European integration process. They contribute to stability, reconciliation and a climate conducive to 
addressing open bilateral issues and the legacies of the past. 

North  Macedonia  continued  to  engage  in  a  number  of  regional  cooperation  initiatives  such  as  the 
Central  European  Free  Trade  Agreement  (CEFTA),  the  Energy  Community,  the  Transport 
Community and the Regional Cooperation Council. In July 2023, North Macedonia took over the 1-
year  Chairpersonship  in  Office  of  the  South-East  European  Cooperation  Process.  North  Macedonia 
also  actively  participated  in  initiatives  such  as  the  Central  European  Initiative  and  the  Centre  for 
Security Cooperation. 

The  fourth  annual  EU-Western  Balkans  Summit  took  place  in  Brussels  in  December  2023, 
reaffirming the EU membership perspective of the Western Balkans and exploring measures to further 
advance gradual integration. 

North  Macedonia  has  actively  engaged  in  the  regional  dimension  of  the  Growth  Plan  for  the 
Western  Balkans.  The  country  actively  participated  in  both  ministerial  and  leaders’  meetings  and 
hosted the February Leaders meeting in Skopje. 

On the Common Regional Market, in October 2023 the Berlin Process Summit took place  for the 
first  time  in  the  region  in  Tirana.  An  agreement  was  adopted  on  the  recognition  of  professional 
qualifications for nurses, veterinary surgeons, pharmacists and midwives. The roadmap for roaming 
between the Western Balkans and the EU entered the first phase of implementation. North Macedonia 
has ratified three out of four mobility agreements signed at the Berlin Process Summit in November 
2022 and has deposited the related notification instruments.  12  major decisions were agreed by the 
CEFTA Joint Committee in October 2024. 

In  January  2024,  North  Macedonia,  Albania  and  Serbia  signed  the  first  Protocol  on  the 
Implementation of the Agreement on Conditions for Free Access to the Labour Market in the Western 
Balkans.  

North  Macedonia  generally  maintains  good  cooperation  and  bilateral  relations  with  other 
enlargement countries and neighbouring EU Member States. 

Relations with Albania remained good. The two countries celebrated 30 years of diplomatic relations. 
The  two  countries  signed  several  agreements  on  joint  cooperation  in  a  number  of  areas  including 
security, defence, infrastructure, energy, education, science and culture. 

Relations  with  Bosnia  and  Herzegovina  continue  to  be  good.  Several  bilateral  agreements  are  in 
place,  including  on  cooperation  on  EU  integration  and  from  November  2023  on  economic 
cooperation. 

Cooperation with Kosovo continues to be comprehensive and constructive, with several meetings held 
at the highest level. Ahead of the presidential and parliamentary elections in North Macedonia in May 
2024, Prime Minister Kurti of Kosovo met with representatives of opposition parties. 

Relations with Montenegro remained good. High-level meetings between representatives of the two 
countries were held during the reporting period. 

Relations  with  Serbia  are  good.  A  Memorandum  of  Cooperation  for  the  Skopje-Nis  high-speed 
railway  and  a  Memorandum  of  Cooperation  for  the  establishment  of  a  high-performance  railway 
network were signed. 

Relations with Türkiye are good. North Macedonia opened an Honorary Consulate in Amasya and in 

54 

 
 
 
Antalya.  High-level  meetings  between  representatives  of  the  two  countries  were  held  during  the 
reporting period. In September 2024, the Turkish Minister of Foreign Affairs visited Skopje and met 
his counterpart, expressing the goal of strengthening economic cooperation and boost trade between 
the two countries. 

Relations with Ukraine have intensified since Russia began its war of aggression against the country. 
North  Macedonia  has  provided  humanitarian  and  military  assistance  and  is  fully  aligned  with  the 
EU’s package of restrictive measures against Russia. North Macedonia and Ukraine have agreements 
on trade, the protection of investments, culture, education, tourism, transport and military cooperation. 
A visa-free regime has been in place for short stays since 2019. 

Relations with Georgia are good. An agreement on culture is in place. 

Relations  with  Republic  of  Moldova  are  good.  There  are  agreements  in  place  on  transport,  trade, 
customs, finance, medicine and health, police, foreign affairs and consular matters. There is no visa-
free arrangement between the two countries. 

During the reporting period, relations with Bulgaria focused on the next steps in North Macedonia’s 
EU  accession  negotiations  process.  Tangible  results  and  implementing  in  good  faith  bilateral 
agreeements,  including  the  Treaty  of  Friendship,  Good  Neighbourliness  and  Cooperation  and  its 
Protocol, remain important. Meetings of the experts working groups to monitor implementation of the 
Treaty of Friendship, Good Neighbourliness and Cooperation and its Protocol were held in Skopje in 
October  2023.  The  Multidisciplinary  Expert  Commission  on  Historical  and  Educational  Issues  held 
several  meetings  during  the  reporting  period.  In  recent months, relations  between  the  two  countries 
were negatively affected by statements made by individual politicians. Further efforts are needed to 
promote an atmosphere of dialogue and mutual respect. 

Cooperation with Greece intensified, particularly in key areas of mutual interest. Tangible results and 
implementing in good faith bilateral agreements, including the Prespa Agreement, remain important. 
In March 2024, the eighth meeting of the Joint Interdisciplinary Committee of Experts on Historical, 
Archaeological and Educational Issues was held in Skopje. In May, while taking the oath of office in 
Parliament, the newly-elected President of North Macedonia referred to the country as ‘Macedonia’, 
instead  of  using  the  constitutional  name,  a  practice  subsequently  followed  by  several  government 
officials, and which constitutes a major issue in the implementation of the Prespa Agreement. The two 
countries intensified cooperation on the construction of the natural gas interconnector between North 
Macedonia  and  Greece  and  in  relation  to  the  Terminal  for  Liquefied  Petroleum  Gas  (LNG)  in 
Alexandroupoli. 

4. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP  

CLUSTER 2: INTERNAL MARKET 

This cluster covers: free movement of goods (Chapter 1); freedom of movement for workers (Chapter 
2);  right  of  establishment  and  freedom  to  provide  services  (Chapter  3);  free  movement  of  capital 
(Chapter  4);  company  law  (Chapter  6);  intellectual  property  law  (Chapter  7);  competition  policy 
(Chapter  8);  financial  services  (Chapter  9)  and  consumer  and  health  protection  (Chapter  28).  This 
cluster is key to North Macedonia’s preparations for the requirements of the EU’s internal market and 
is very relevant for the development of the Common Regional Market.  

Chapter 1: Free movement of goods 

The free movement of goods ensures that many products can be traded freely across the EU based on 
common rules and procedures. Where products are governed by national rules,  the principle of the 
free movement of goods prevents these rules from creating unjustified barriers to trade. 

General principles 

The  country  has  a  functioning  institutional  framework  for  the  production,  distribution  and 
marketing of industrial products. Though the Law on technical requirements and Law on general 

55 

 
 
 
product  safety,  adopted  in  2022,  were  designed  to  align  with  the  relevant  EU  acquis,  the  relevant 
implementing legislation has not yet been adopted. A new strategy for free movement of goods and an 
action plan, and a new 2024-2028 action plan to eliminate the non-tariff barriers to trade and ensure 
compliance  with  Articles  34-36  TFEU  are  both  yet  to  adopted.  The  capacity  of  the  ministry 
responsible for this area and for relevant legal alignment with the EU acquis is very limited. 

Harmonised area: quality infrastructure 

The  necessary  institutional  and  legal  structure  for  technical  regulations,  standards,  conformity 
assessment,  accreditation,  metrology,  and  market  surveillance  are  in  place.  The  National 
Standardisation Institute adopted 24 357 European standards as national standards. 

The  Institute  for  Accreditation  ensures  the  accreditation  procedures  for  testing,  calibration  and 
medical  laboratories,  conformity  assessment  bodies,  and  inspection  bodies.  There  are  213  active 
conformity assessment bodies in the country. A new law designed to align to the latest EU acquis on 
market  surveillance  is  yet  to  be  adopted.  The  State  Market  Inspectorate  (SMI)  carried  out  679 
market surveillance inspections in 2023 which led to 37 harmful products being taken off the market, 
mainly  textiles  and  toys.  SMI  recruited  40  additional  staff  but  did  not  make  any  progress  on  the 
digitalisation of the internal operating procedures for market surveillance. 

Harmonised area: sectoral legislation 

On  ‘new  and  global  approach’  product  legislation,  the  level  of  alignment  with  the  EU  acquis 
remains low. 

No progress was made on aligning with the latest EU ‘old approach’ EU product acquis, including 
on  vehicles,  on  chemicals,  or  on  detergents  or  firearms.  There  was  also  no  change  regarding 
procedural  measures  and  notification  procedures  for  standards  and  technical  regulations.  The 
national legislation on returning cultural goods remains partly aligned with the relevant EU acquis. 

The  recommendations  from  the  national  strategy  for  the  prevention  of  corruption  related  to  market 
surveillance and product safety have not been addressed.  

Chapter 2: Freedom of movement for workers 

Citizens of one Member State have the right to work in another Member State and must be given the 
same working and social conditions as other workers. 

No progress was made on aligning national legislation with the EU  acquis on access to the labour 
market. The Law on employment of foreigners does not distinguish between EU citizens and other 
foreigners. The quota of work permits is set annually, and family reunification is allowed. 

EU citizens cannot access public administration posts other than a short list of positions in healthcare 
and higher education. Furthermore, some posts in private companies are also exclusive to citizens of 
North  Macedonia.  In  2023,  North  Macedonia  issued  834  work  permits  to  foreign  workers.  The 
country  has  signed  three  bilateral  agreements  for  seasonal  workers  with  Germany,  Slovenia,  and 
Qatar, out of which only the agreement with Germany started its implementation. 

No  developments  were  reported  regarding  the  participation  to  the  EURES  (European  Employment 
Services). 

The  country  has  signed  22  bilateral  agreements  for  coordination  of  social  security  systems,  out  of 
which  13  are  with  EU  Member  States.  While  in  2023  the  country  has  initiated  negotiations  for  a 
bilateral  social  security  agreement  with  Italy,  USA  and  Greece,  no  new  agreements  for  bilateral 
coordination  of  social  security  systems  or  for  mutual  recognition  of  the  healthcare  services  were 
signed. The Law on the register of mandatory social insurance, that regulates the establishment and 
operation of the register, was adopted in October 2023. 

There has been  no  development  in  the  area  of  European  Health  Insurance  Card  (EHIC)  as  only 
nine  EU  Member  States’  (Austria,  Belgium,  Bulgaria,  Czech  Republic,  Germany,  Luxembourg, 
Netherlands, Slovakia and Slovenia) citizens have access to medical services in the public and some 
private healthcare institutions in the country.  

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The  specific  framework  for  prevention  of  corruption  in  the  domain  of  free  movement  of  workers 
remains weak. The Employment Agency applies the Code of administrative servants but has not yet 
adopted an Integrity Policy to strengthen the efforts to fight corruption. 

Chapter 3: Right of establishment and freedom to provide services 

EU  natural  and  legal  persons  have  the  right  to  establish  themselves  in  any  Member  State  and  to 
provide  cross-border  services.  For  certain  regulated  professions,  there  are  rules  on  mutual 
recognition of qualifications. EU rules on postal services focus on improving the quality of universal 
service,  gradually  opening  the  market  to  competition,  and  the  establishment  of  an  independent 
regulator. 

On  the  right  of  establishment  and  freedom  to  provide  cross-border  services,  North  Macedonia 
continued to align its legislation with the EU Services Directive by adopting amendments to the Law 
on  performing  accounting  activities  and  the  Law  on  mineral  resources.  The  point  of  single  contact 
(www.uslugi.gov.mk) needs to be upgraded to meet the requirements set out in the Services Directive. 
By September 2024, 124 services for citizens and businesses were accessible online (applications may 
be submitted electronically). 

In the area of postal services, national legislation is aligned with the First and Second Postal Services 
Directives and partly with the Third Postal Services Directive. The universal service provider has an 
exclusive right to provide reserved postal services. National legislation still needs to be aligned with 
the  Regulation  on  cross-border  parcel  delivery  services.  The  Postal  Agency  is  the  independent 
regulatory authority  ensuring  compliance  with postal  law.  There  are  currently  one  universal  service 
provider and 33 other postal operators. North Macedonia should finalise alignment with the EU postal 
acquis and ensure sufficient institutional capacity to monitor and enforce the new postal market rules. 

No progress was made on the mutual recognition of professional qualifications. The law designed 
to align with the relevant EU acquis has not yet been adopted. National legislation still needs to align 
with EU Directive 2005/36/EC to comply with minimum training requirements. A transparent list of 
all regulated professions and an electronic register are yet to be put in place. The institutional capacity 
of the Ministry of Education and Science’s section dealing with the mutual recognition of professional 
qualifications needs to be strengthened. 

Chapter 4: Free movement of capital 

In the EU, capital and investments must be able to move without restriction, with common rules for 
cross-border payments. Banks and other economic operators apply certain rules to support the fight 
against money laundering and terrorist financing. 

On capital movements and payments, the implementation roadmap developed by the authorities in 
2022  needs  to  be  improved  with  more  details  on  concrete  actions  and  timelines  as  regards  existing 
capital  movement  restrictions,  including  liberalisation  of  the  acquisition  of  agricultural  land  in  line 
with  its  obligations  under  the  Stabilisation  and  Association  Agreement  (SAA).  The  degree  of  its 
implementation  during  2023-2024  and  achievements  to  date  lacks  clarity  as  no  implementation 
reports have been shared with the Commission. 

Concerning the payment systems, transparency of conditions governing the use of payment services 
improved  with  the  set-up  by  the  National  Bank  of  a  fee  comparison  tool  for  most  used  payment 
services  provided  by  local  banks.  The  Law  on  payment  services  and  payment  systems  includes 
provisions aiming at aligning with the Payment Services Directive 2, the E-Money Directive 2, and 
the  Interchange  Fee  Regulation,  but  full  alignment  needs  to  be  ensured.  The  country  started 
preparations  for  launching  the  digital  denar  and  for  establishing  a  payment  system  for  cross-border 
payments  among  Western  Balkans  countries.  In  July  2024,  North  Macedonia  submitted  its  formal 
application to join the Single Euro Payment Area (SEPA).  

As regards the fight against  money laundering and terrorist financing (AML/TF), implementing 
legislation of the laws on prevention of money laundering and financing of terrorism still need to be 

57 

 
 
adopted. In line with the requirements of the fifth Anti-Money Laundering (AML) Directive, a unified 
register of bank accounts needs to be set up. 

The  Agency  for  Insurance  Supervision  adopted  guidelines  for  AML/CTF  risk  assessment  in 
December 2023. An AML/CFT 3-year strategy of this institution was finalised but not adopted . In 
October 2023, a decision by the National Bank came into effect, outlining AML/CFT measures to be 
implemented by supervised entities, including payment institutions and foreign exchange offices. The 
Financial  Intelligence  Office  further  developed  its  capacities  for  data  processing,  financial  analysis, 
and enhanced risk-based assessment. 

As mentioned in the latest MONEYVAL report of July 2023, North Macedonia strengthened its legal 
framework  since  the  last  mutual  evaluation  and  laid  the  foundations  for  a  sound  regime  to  tackle 
money  laundering  and  terrorist  financing.  However,  there  is  need  for  improved  implementation  of 
measures in several areas. A comprehensive follow-up to the identified priority actions is required to 
improve compliance as well as prepare for the next MONEYVAL evaluation expected in 2025. 

Chapter 6: Company law 

The EU has common rules on the formation, registration and disclosure requirements of a company, 
with complementary rules for accounting and financial reporting, and statutory audit. 

On  company  law  and  corporate  governance,  as  regards  the  formation  of  companies,  North 
Macedonia  should  also  further  align  with  the  Directive  on  the  use  of  digital  tools  and  processes  in 
company  law,  including  the  scrutiny  of the  object  of  the  company  and  the  procedures  to  verify the 
appointment and disqualification of directors. North Macedonia should also further align with certain 
capital  requirements  provided  by  Directive  2017/1132.  In  the  future,  the  national  business  register 
should  be  technically  ready  to  interconnect  with  the  Business  Registers  Interconnections  System 
(BRIS). 

The  2021  Corporate  Governance  Code  is  only  mandatory  for  listed  companies  that  meet  certain 
criteria and should cover all listed companies. National legislation is broadly harmonised with the EU 
acquis on the Societas Europaea and European Economic Interest Grouping legal forms, while draft 
legislation to partially align with the EU acquis on a European cooperative society awaits adoption by 
Parliament.  Further  alignment  is  necessary  with  the  EU  acquis  on  certain  aspects  of  domestic 
mergers,  domestic  divisions  and  on  cross-border  operations  (mergers,  divisions,  conversions), 
takeover  bids    as  well  as  with    rules  on  the  encouragement  of  long-term  shareholder  engagement  ( 
‘SRD II’ Directive). 

On  company  reporting,  North  Macedonia  is  partially  aligned,  inter  alia  as  regards  the  accounting 
framework for small companies and country-by-country reporting. A draft law on accounting, aimed 
at further alignment with the EU acquis in this area, is still going through the adoption process. North 
Macedonia  will  also  need  to  align  with  the  most  recent  acquis  (2022)  on  corporate  sustainability 
reporting.  Although  certain  provisions  of  the  acquis  on  transparency  requirements  for  listed 
companies are already well reflected in current national legislation, further alignment is needed in this 
area, with a focus on notification of major holdings and sanctioning regimes. Adoption is also pending 
for a new draft law on audit, aimed at reaching greater harmonisation with the EU acquis, including 
the area of investigations and sanctions. Currently, there is no body with ultimate responsibility for 
statutory  audit  oversight,  as  required  by  the  EU  Audit  Directive.  The  visibility  and  overall 
performance  of the  Council  for  Advancement  and  Oversight  of  the  Audit  remains  poor.  Efforts  are 
needed to ensure its independence. 

Chapter 7: Intellectual property law 

The EU has harmonised rules for the legal protection of intellectual property rights (IPR), copyright 
and related rights. Rules for the legal protection of IPR cover for instance, patents and trade marks, 
designs, biotechnological inventions and pharmaceuticals. Rules for the legal protection of copyright 
and related rights cover, for instance, books, films, software and broadcasting. 

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In the area of copyright and related rights, adoption of amendments to the copyright law, aimed at 
aligning with the EU acquis on collective rights management, orphan works,  and the implementation 
of  the  Marrakesh  Treaty  obligations  remain  delayed.  North  Macedonia  is  not  yet  aligned  with  the 
Directive on the exercise of copyright and related rights applicable to certain online transmissions of 
broadcasting organisations and retransmissions of television and radio programmes, and the Directive 
on copyright and related rights in the Digital Single Market. 

Regarding  industrial property rights, the State Office for Industrial Property (SOIP) continued its 
cooperation  with  the  EU  and  international  bodies,  in  particular  with  the  EU  Intellectual  Property 
Office  (EUIPO).  North  Macedonia  needs  to  further  align  its  legislation  with  the  EU  acquis  in  this 
area,  in  particular  on  patents,  trade  secrets,  and  the  Directive  on  the  enforcement  of  intellectual 
property rights. 

On  enforcement,  SOIP  has  no  capacity  to  develop  a  hardware infrastructure  to  provide full insight 
into  the  institutional  handling  of  IPR  infringements.  The  coordination  body  for  the  protection  of 
intellectual property needs to step up its activity to address the key challenges related to IPR. 

The 2021-2026 intellectual property strategy remains to be adopted. 

According  to  the customs administration,  from January  until  the  end  of March 2024, there  were  12 
new cases of suspected infringement of intellectual property rights. There are total of 189 active cases 
involving 1 059 trademarks for which protection of intellectual property rights has been requested. In 
the  same  period,  violation  of  intellectual  property  rights  was  confirmed  in  three  cases  (for  1 338 
pieces) involving 7 international trademarks. 

The  relevant  intellectual  property  rights  unit  in  the  Ministry  of  Culture  remains  significantly 
understaffed which undermines its capacity to execute its tasks. 

Chapter 8: Competition policy 

EU rules protect free competition. They include antitrust rules against restrictive agreements between 
companies and the abuse of a dominant position, and also include rules on concentrations between 
companies which would significantly impede effective competition. EU rules also set out a system of 
State aid control. Governments are only allowed to grant State aid if restrictive conditions are met, 
with a view to preventing distortion of competition. 

Antitrust and mergers 

The legislative framework is broadly aligned with the EU acquis on antitrust and mergers, although 
parts of implementing legislation remain to be aligned. 

On the institutional framework, the Commission for the Protection of Competition (CPC) remains 
understaffed,  leading  to  a  limited  enforcement  capacity  with  inadequate  technical  capacities.  Its 
annual budget remains insufficient. 

On  implementation,  the  number  of  merger  decisions  increased  from  101  in  2022  to  121  in  2023, 
including  decisions  on  small  cases.  Number  of  ex  officio  and  on-site  interventions  remains  low. 
Serious  efforts  are  needed  to  boost  the  use  of  the  leniency  instrument  in  order  to  improve 
enforcement. 

State aid 

The  legislative  framework  on  State  aid  broadly  reflects  Articles  107  and  108  TFEU.  The  Law  on 
State aid and its implementing legislation need to be further aligned with the EU acquis. The State aid 
inventory still lacks transparency. 

On the institutional framework, the CPC is also responsible for implementing the Law on State aid. 
The CPC issues non-binding opinions and binding decisions on State aid. The enforcement capacity 
of  CPC  staff  dealing  with  State  aid  control  remains  insufficient.  Further  strengthening,  including 
training of judicial professionals is needed on the application of State aid. 

59 

 
 
Concerning implementation, the CPC issued 21 decisions and 16 opinions on State aid in 2023. No 
negative or conditional decisions were adopted by the CPC. 

Liberalisation 

Antitrust and State aid rules also apply to State-owned undertakings and undertakings entrusted with 
special  or  exclusive  rights,  except  when  applying  them  would  obstruct  the  performance  of  the 
particular  tasks  assigned  to  them.  There  is  no  evidence  of  the  existence  of  commercial  monopolies 
within the meaning of Article 37 TFEU. 

Chapter 9: Financial services 

EU  rules  aim  to  ensure  fair  competition  among,  and  the  stability  of,  financial  institutions,  namely 
banking, insurance, supplementary pensions, investment services and securities markets. They include 
rules on authorisation, operation and supervision of these institutions. 

As  regards  banks  and  financial  conglomerates,  the  institutional  and  legal  framework  is  in  place, 
with a good level of alignment with a previous version of the Capital Requirements Regulation and 
the  Capital  Requirements  Directive  (CRR/CRD).  Work  needs  to  continue  to  align  with  the  latest 
versions of the Capital Requirements Regulation and the Capital Requirements Directive. The Law on 
bank resolution was enacted, with accompanying amendments to the central bank law. Implementing 
legislation for the bank resolution law remain to be adopted. As the Law on deposit insurance was not 
amended, deposit insurance, including to introduce depositor preference, in line with EU requirements 
remains to be improved. The capacity of the Ministry of Finance to regulate and supervise financial 
companies is not sufficient to protect consumers. The central bank changed the organisation structure 
to  allow  for  improved  review  of  consumer  complaints.  The  legal  and  institutional  set-up  for 
establishing the financial Ombudsperson remains to be finalised.  

There  were  no  developments  in  insurances  and  occupational  pensions.  The  country  has  not  yet 
aligned  the  legislation  with  the  Solvency  II  Directive.  The  legislation  allowing  the  Ministry  of 
Finance to set premiums for motor vehicle insurance remains in place, which is contrary to the EU 
acquis. It is estimated that in 2023 about 5.8% vehicles remained uninsured [No systemic measures 
are  taken  to  prevent  uninsured  driving.  The  50%  limit  on  investing  in  non-domestic  securities  by 
pension funds remained. This is contrary to the EU acquis and the second stage of the SAA. 

On financial market infrastructure, the new law on financial instruments adopted early 2024 aims 
to  align  with  the  Settlement  Finality  Directive  in  particular  as  regards  finality  upon  securities 
transactions.  The  country  remains  partially  aligned  with  the  Central  Securities  Depositories 
Regulation  and  not  aligned  with  EU  legislation  on  financial  collateral,  on  Securities  Financing 
Transactions, and on OTC derivatives, central counterparties and trade repositories. 

As regards securities markets and investment services, a new Law on prospectus and transparency 
of  securities’  issuers  was  enacted  in  March  2024.  This  law  together  with  the  Law  on  financial 
instruments aim to partially align the national legislation with the EU acquis. Prior to their entry into 
force, implementing legislation for these laws, as well as to the Law on financial instruments, remain 
to  be  adopted.  There  was  no  progress  on  investment  funds  and  amendments  remain  necessary  to 
further align with the EU acquis, including recently introduced changes on undertakings for collective 
investment in transferable securities and alternative investment fund managers. 

On  sustainable  and  digital  finance,  the  alignment  with  the  EU  acquis  on  the  sustainable  finance 
framework, including the EU taxonomy, and the EU climate transition benchmarks, EU Paris-aligned 
benchmarks  and  sustainability-related  disclosures  for  benchmarks,  has  not  started.  In  2023,  the 
National Bank published guidelines for managing climate-related risks as best practices that banks are 
expected to follow, based on the standards and practices published by the European Central Bank, the 
European  Banking  Authority,  and  the  Basel  Committee.  The  National  Bank  signed  a  cooperation 
agreement  with  the  European  Investment  Bank  (EIB)  Global  to  receive  advisory  services  on 
enhancing its regulatory and supervisory climate risk management practices, as well as the reporting 
capacities of the financial sector in the country.  Further work is needed to align with the EU  acquis 
on digital finance. 

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Chapter 28: Consumer and health protection 

EU  rules  protect  consumers’  economic interests  and also ensure  product safety,  prevent  dangerous 
imitations  and  establish  liability  for  defective  products.  The  EU  also  guarantees  a  high  level  of 
protection  of  public  health  and,  in  particular,  also  ensures  high  common  standards  for  tobacco 
control, blood, tissues, cells and organs, and medicines for human and veterinary use. The EU also 
has  rules  for  upholding  patients’  rights  in  cross-border  healthcare  and  in  preparing  for  and 
responding to cross-border health threats. 

Consumer protection 

The  Law  on  consumer  protection  is  broadly  aligned  with  most  of  the  EU  consumer  acquis,  and 
clearly  defines  the  responsibilities  of the  physical  and  legal  commercial  bodies  towards  consumers. 
However, national legislation is not aligned with the EU acquis on package travel. The next three-year 
consumer  protection  strategy  (2025-2028)  is  yet  to  be  adopted,  and  a  web  platform  providing 
information  on  consumer protection still  needs to  be  developed. Mediation  in consumer  disputes  in 
place,  based  on  the  provisions  of  the  national  Law  on  mediation,  adopted  in  2022,  but  it  is  still 
difficult for consumers to access mediation services. 

National legislation has a high level of alignment with the EU acquis on general product safety, apart 
from some definitions, and also on dangerous imitations. It is partly aligned on the legal requirements 
on  the  EU  rapid  alert  system  for  dangerous  non-food  products  (Safety  Gate).  The  State  Market 
Inspectorate ensured 809 market surveillance inspections in 2023, which resulted in withdrawal of 37 
products  from  the  market.  A  list  of  these  withdrawn  products  was  published  on  the  State  Market 
Inspectorate’s  website.  The  number  of  inspectors  (170)  remains  insufficient,  and  many  are  close  to 
retirement.  On  non-safety-related  issues  further  efforts  are  needed  to  develop  guidance  and 
procedures on consumer appeals and on compensation. 

Public health 

Although  primary  healthcare  in  North  Macedonia  is  provided  free  of  charge  its  financing  is 
significantly below the EU average. The scope of health services and their availability, in particular of 
specialist medical services, and their geographical distribution are inadequate. There are insufficient 
specialists,  and  the  ratio  of  nurses  per  100 000  inhabitants  is  under  the  EU  average.  Medical  staff 
continue  to  leave  the  public  health  sector  for  private  sector  or  to  work  abroad.  Out-of-pocket 
healthcare costs are high, which is a barrier to equal access to healthcare. Despite the existence of an 
e-health  application,  referrals  are  still  done  on  paper,  and  the  application  is  not  interoperable  with 
Health Insurance Fund data. 

National  legislation  on  tobacco  control  is  broadly  aligned  with  the  EU  acquis  but  is  not 
systematically  implemented  or  enforced  –  smoking  is  still  broadly  tolerated  and  unsanctioned  in 
restaurants and other closed areas, including public offices and some medical facilities. The country 
has  still  not  yet  ratified  the  Protocol  to  Eliminate  Illicit  Trade  in  Tobacco  Products.  On 
communicable diseases, while an upgrade to the syndromic disease reporting system was completed, 
alignment with the relevant EU acquis remains incomplete, and, while the general level of vaccination 
increased  somewhat,  the  vaccination  rate  is  low  for  some  diseases.  Awareness  and  the  number  of 
performed transplantation of blood, tissues, cells and organs increased, though the legal framework 
is not yet fully aligned with the EU acquis and an IT module for tissue transplants is not yet in place. 
Alignment with the EU acquis on patients’ rights in cross-border healthcare has not yet begun. 

There was progress on alignment on medical devices, but there were no developments on medicines 
for human or on medicines for veterinary use, which remain partly aligned. National legislation is 
not aligned with the EU acquis on cosmetics. The country launched its first breast cancer screening 
campaign. While the number of cervical cancer screenings doubled in 2023, in the framework of the 
relevant screening programme, and some colorectal screening was performed, a more comprehensive 
and proactive population-based screening approach is needed. Funding on rare diseases increased but 
is insufficient to cover the costs for medical treatment of all registered patients. Monitoring of  drug 
abuse  prevention  and  alcohol  related  harm  reduction  both  show  medium  levels  of  abuse.  There 
were no developments on healthy environments. Efforts to fight health inequalities, in particular for 

61 

 
 
Roma,  and  for  people  living  in  poverty  and  those  living  in  remote  areas,  were  mostly  led  by 
international organisations and NGOs rather than by the health authorities. 

Health  is  one  of  the  biggest  national  budget  users,  and  the  inspection  services  are  vulnerable  to 
corruption.  There  are  no  effective  criteria  for  determining  health  service  or  medicine  prices. 
Procedures for treatment abroad are neither transparent nor objective. Market surveillance bodies still 
have  inadequate  staffing  and  unclear  and  overlapping  jurisdictions.  Most  health-related  activities  in 
the anti-corruption strategy remained unimplemented. Strengthening integrity, asset declarations and 
digitalisation are needed to help prevent corruption in the area of consumer and health protection. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

This cluster covers: Digital transformation and media (Chapter 10); Taxation (Chapter 16); Economic 
and  monetary  policy  (Chapter  17);  Social  policy  and  employment  (Chapter  19);  Industrial  policy 
(Chapter  20),  Science and research (Chapter  25);  Education and culture (Chapter  26);  and  Customs 
union (Chapter 29). 

Chapter 10: Digital transformation and media 

The  EU  supports  the  smooth  functioning  of  the  internal  market  for  electronic  communications, 
electronic  commerce  and  audio-visual  services.  The  rules  protect  consumers  and  support  the 
universal availability of modern services. 

Regarding  digital  transformation  strategy,  North  Macedonia  has  yet  to  adopt  the  long-term  ICT 
strategy  and  national  cybersecurity  strategy.  The  Ministry  of  Digital  Transformation  needs  to 
strengthen its capacities to better coordinate the digital transformation policies of the country. 

On  electronic  communications,  the  Agency  for  Electronic  Communications  adopted  rulebooks 
implementing  the  EU  Directive  on  measures  to  reduce  the  cost  of  deploying  high-speed  electronic 
communications networks, along with a proposal for new regulations on measures to reduce the cost 
of deploying gigabit electronic communications networks. North Macedonia is yet to align with the 
EU  Broadband  Cost  Reduction  Directive.  The  2019-2023  national  broadband  operational  plan 
remains  valid.  The  capacity  of  the  112  European  emergency  number  services  needs  to  be  further 
enhanced.  The fixed  broadband  coverage  in  the  country  with  fast  broadband amounts to 88.80%  as 
per the report published by BCO in March 2024. 

Regarding digital transformation strategy, the long-term information and communication technologies 
strategy  has  not  been  adopted.  Authorities  need  to  ensure  the  independence  of  the  regulator  for 
electronic  communications.  In  September  2024,  the  Parliament  dismissed  all  five  members  of  the 
AEC Commission.  

Regarding  digital  services,  most  administrative  services  are  offered  both  online and  offline  through 
the national e-portal for services, including facilities for people with special needs. The e-portal has 
yet  to  complete  its  upgrade  with  135  new  electronic  services.  The  most  common  services,  such  as 
issuing  of  personal  documents,  are  not  available  online.  North  Macedonia  needs  to  align  national 
legislation  with  both  the  European  Interoperability  Framework  and  the  Interoperable  Europe  Act. 
Authorities need to ensure and facilitate equal access to online services for all citizens and to enhance 
efforts to align with the Digital Services Act and Digital Markets Act. Artificial Intelligence is being 
piloted in the use of 112 for real time transcription and translation. Authorities received trainings from 
European  services  on  the  DSA  in  June  2024  aiming  at  prioritising  the  alignment  of  the  national 
legislation with the DSA. 

On  digital  trust  and  cybersecurity,  North  Macedonia  needs  to  adopt  the  new  Law  on  security  of 
networks and information systems, aligned with the NIS and NIS2 Directives, as well as the national 
cybersecurity  strategy.  State  institutions  need  to  further  strengthen  their  infrastructure  and  ensure 
expertise  on  cybersecurity.  The  capacities  (staffing  and  infrastructure)  of  the  national  centre 
responding to computer incidents need to be further strengthened. National legislation is harmonised 
with  the  eIDAS  Regulation  of  2014,  however  the  existing  tools  for  e-identification  and  e-signature 

62 

 
 
 
certificates are not free of cost for citizens and deemed not user friendly. North Macedonia needs to 
align  with  new  EU  Digital  Identity  and  Trust  Services  framework  2024  Regulation.  The  Law  on 
general administrative procedures remains not systematically implemented across the administration. 
Mobile 5G signal was further expanded in the country. Further efforts are needed for the alignment 
with the ePrivacy Directive. 

On media, the Parliament further delayed the appointment of the new members of the media regulator 
and  the  public  broadcaster  councils.  The  national  regulator  needs  to  enhance  its  capacities  to 
effectively implement its competencies, notably oversight and registering of video sharing platforms 
and  so-called  influencers.  In  February  2024,  authorities  amended  the  Law  on  audio-visual  media 
reintroducing government advertising in private media. The audio-visual industry continued to benefit 
from  both  the  MEDIA  and  cross-sectoral  strands  of  the  Creative  Europe  programmes.  The  public 
broadcasting  enterprise  was  mandated  to  ensure  the  construction  of  the  optical  infrastructure  and 
provide access to the broadband networks in areas where there is insufficient commercial interest for 
investments by the operators. 

Chapter 16: Taxation 

EU  rules  on  taxation  cover  value-added  tax,  excise  duties  and  aspects  of  corporate  taxation.  They 
also  deal  with  cooperation  between  tax  administrations,  including  the  exchange  of  information  to 
prevent tax evasion. 

On indirect taxation, delays in the VAT refund process remain quite prominent, as only 15% of the 
refund was paid within the legal deadline. 

Regarding excise duty, the Law of Excise Duties is based on the structure of EU  excise legislation. 
Minimum  excise  duty  rates  for  alcohol  and  alcoholic  beverages  comply  with  the  EU  law.  Further 
alignment is needed regarding excise duty structure for alcohol and alcoholic beverages.  Excise duty 
for tobacco products is partially aligned with the EU law. The Law on excise was amended increasing 
the  duty  on  tobacco  products  starting  on  1 January  2024  and  ending  1 January  2030.  This  would 
equalise the excise tax on cigarettes with the EU prescribed minimum. Movements of excise goods 
under duty suspension arrangement are controlled electronically in a manner akin to that of the Excise 
Movement  and  Control  System  (EMCS).  Further  alignment  is  needed  with  some  provisions  of  the 
general rules for the production, keeping, storage, movement and controls on excisable products. 

As regards direct taxation, the Law on profit tax was amended abolishing the obligation to submit 
transfer  pricing  documentation  as  of  1 January  2024,  thus  reducing  the  administrative  burden  on 
taxpayers. The country still needs to align its legislation with the Merger Directive. 

The  EU  cooperates  with  North  Macedonia  through  an  enhanced  dialogue  on  tax  good  governance 
within the framework of the EU list. 

On  administrative  cooperation  and  mutual  assistance,  North  Macedonia  has  signed  49  double 
taxation agreements, including with 23 EU Member States. The country has not yet committed on a 
date  to  start  the  automatic  exchange  of  financial  account  information  as  per  the  Organisation  for 
Economic Cooperation and Development (OECD) standard. The country has yet to implement all the 
Inclusive  Framework  on  Base  Erosion  and  Profit  Shifting  (BEPS)  minimum  standards,  namely  the 
minimum standard on Country-by-Country-Reporting. 

Regarding  operational  capacity  and  computerisation,  the  PRO  still  has  to  improve  its  business 
processes, develop compliance risk management and continue the process of expansion of e-services. 
A  reform  management  office  was  established  to  support  the  reform  agenda  of  the  PRO.  The  IT 
function  has  been  reorganised  by  establishing  an  IT  sector  at  a  central  level.  Preparations  to 
implement a new integrated IT tax system have started, aiming to replace the current fragmented IT 
system by 2028. 90 new employees were recruited in 2023, bringing the number of employees in the 
PRO close to 1 000. 

63 

 
 
Chapter 17: Economic and monetary policy 

EU rules require the independence of central banks and prohibit them from directly financing the 
public  sector.  EU  Member  States  coordinate  their  economic  policies  and  are  subject  to  fiscal, 
economic and financial surveillance. 

Concerning monetary policy, North Macedonia has a high level of alignment with the EU acquis on 
the prohibition of monetary financing of the public sector and the prohibition of privileged access of 
the  public  sector  to  financial  institutions.  The  legislation  is  partly  aligned  with  the  EU  acquis  on 
central bank independence. Amendments to the Central Bank Law were adopted in early April 2024 
in  order  to  ensure  greater  autonomy  to  set  employment  conditions  of  staff,  to  establish  a  formal 
macro-prudential  mandate  and  to  improve  the  governance  framework.  As  regards  decisions  about 
employment  conditions  for  central  bank  staff,  it  is,  however,  necessary  that  pending  laws  on 
administrative servants and public sector employees are also adopted by Parliament.  

The  primary  objective  of  the  central  bank  is  to  achieve  and  to  maintain  price  stability.  To  curb 
inflation and inflation expectations, and to underpin denarisation, the central bank has raised the key 
policy  rate,  withdrawn  liquidity,  and  adjusted  reserve  requirements  on  a  differentiated  basis  for 
deposits in domestic and in foreign currency. 

The central bank has continued enhancing bank-risk monitoring and aligning supervision regulation 
with the EU requirements. To strengthen supervision, credit risk management and banks’ disclosure 
regulations  have  been  upgraded.  Following  the  upgrade  of  the  macroprudential  and  resolution 
frameworks  (the  Law  on  bank  resolution,  passed  in  October  2023  nominated  the  central  bank  as 
resolution authority), efforts should be further directed towards enforcement. 

Regarding economic policy, North Macedonia has a high level of alignment with the EU acquis 
on medium-term budgetary frameworks. The legislation of North Macedonia is partly aligned 
with the EU acquis on budgetary forecasts, statistics, numerical fiscal rules, transparency of 
general  government  finances,  and  macroeconomic  imbalance  procedure.  Macroeconomic  and 
budgetary  forecasts  are  often  overly  optimistic,  frequently  lacking  quantified  fiscal  impacts  of  new 
proposals. 

A number of important public finance-related reforms have stalled in the past year. The adoption  of 
implementing legislation to the 2022 organic budget law needs to be accelerated, so that provisions on 
the independent  fiscal  council,  fiscal  rules  and medium-term  planning can  be fully  implemented  by 
2025. The newly established Fiscal Council will have to be fully staffed to take up its functions. 

The  2024-2026  Economic  Reform  Programme  (ERP),  presents  a  coherent  and  consistent,  though 
somewhat  optimistic  macroeconomic  framework.  North  Macedonia  has  only  partially  implemented 
the policy guidance set out in the conclusions of the Economic and Financial Dialogue of May 2023). 

Chapter 19: Social policy and employment 

EU rules in the social field include minimum standards for labour law, equality, health and safety at 
work  and  non-discrimination.  They  also  promote  social  inclusion  and  social  protection,  and  social 
dialogue at EU level. 

Regarding labour law, the minimum wage starting from March 2024 is MKD 22 567 (approximately 
EUR 365).  The  State  Labour  Inspectorate  (SLI)  enhanced  its  capabilities  by  hiring  25  additional 
inspectors  and  conducting  multiple  training  sessions,  but  further  enhancements  are  necessary, 
particularly in occupational safety. 

On health and safety at work, the new Law on occupational safety and health is yet to be adopted. 
From  January  to  December  2023,  the  SLI  inspectors  performed  a  total  of  22 938  inspection 
supervisions  determining  shortcomings  and  irregularities,  on  which  a  total  of  5 543  decisions  were 
made.  For  violations  of  provisions,  a  total  of  994  payment  orders  were  issued,  112  misdemeanour 
charges were brought up, as well as 35 criminal charges. Following the state reorganisation in 2024, 
the State Labor Inspectorate is now under the Ministry of Economy and Labour. Authorities need to 
adopt an action plan for safety and health at work for the period 2024-2025. 

64 

 
 
On  social  dialogue,  the  enforcement  and  adoption  of  collective  agreements  in  the  private  sector 
remained  weak.  The  Law  on  the  peaceful  settlement  of  labour  disputes  has  yet  to  be  implemented. 
Social  partners’  capacities  require  further  strengthening.  The  Economic  and  Social  Council  (ESC) 
hold a total of five sessions over the reporting period. 

On employment policy the National Employment strategy for 2021-2027 was adopted together with 
the Employment action plan for 2021- 2023. During 2023, the government adopted the new strategy 
for  the  formalisation  of  the  informal  economy  2023-2027  with  an  action  plan  for  2023-2025.  The 
Employment Service Agency’s capacity needs to be further improved, with a view to increasing the 
effectiveness  and  the  efficiency  of  delivery  of  active  labour  market  measures  and  the  Youth 
Guarantee. 

Regarding  labour  force  participation  and  unemployment  rate  see  the  statistical  annex  and  the 
section on the functioning of the labour market under 2.3 Economic criteria. 

The  main  measure  addressing  youth  unemployment  remains  the  Youth  Guarantee  Scheme.  Its 
implementation  continued  across  the  country,  following  the  adoption  of  Youth  Guarantee 
Implementation  Plan  for  2023-2026.  At  the  end  of  2023  a  total  of  23 619  people  (11 675  women) 
throughout the country were enrolled, 8 404 of whom were employed, and 1 849 participated in active 
employment measures that do not result in direct employment but increase their employability. The 
Youth Guarantee included 1 423 Roma, as one of the vulnerable categories on the labour market. 

The employment of Roma, the long-term and low-skilled unemployed, and persons with disabilities is 
supported by the guaranteed minimum assistance scheme introduced by the Law on social protection. 
During the reporting period, the Operational Plan for Active Employment Programmes and Measures 
and  Labour  Market  Services  2023  and  the  Youth  Guarantee  were  implemented  covering  12 788 
people, especially youth. In 2023, 46% of beneficiaries of active employment measures were women, 
1.6% were persons with disabilities, 64% were young people, and 4.2% were Roma. 

The level of preparation for the participation in the European Social Fund remains moderate. (See 
also Chapter 22 - Regional policy and coordination of structural instruments). 

in 

the 

implementation  of 

On  social  inclusion  and  protection  authorities  adopted  the  Law  on  financial  support  of  socially 
vulnerable categories of citizens. Authorities, in consultation with relevant stakeholders, adopted a set 
of social measures for the pension beneficiaries with low pensions. Pensions were adjusted twice in 
2023, resulting in a cumulated increase of pensions of 14%. The monitoring and evaluation system for 
social  services  and  the  centralised  IT  system  to  track  social  assistance  schemes  are  lacking  and 
accessibility  of  social  services  must  be  increased.  The  decentralisation  of  social  assistance  is  still 
moderate.  Progress  has  been  made 
the  2018-2027  national 
deinstitutionalisation strategy. In December 2023, the government adopted the National strategy for 
the  rights  of  persons  with  disabilities  for  2023-2030  and  the  action  plan  for  2023-2026.  Human 
resources  of  the  Commission  for  disability  assessment  need  to  be  strengthened.  The  government 
approved  a  new  action  plan  for  the  deinstitutionalisation  strategy  for  2022-2024.  Services  such  as 
home  care,  personal  assistance,  supported  living,  and  respite  care  have  been  established.  The 
methodology  for  licensing  and  setting  the  costs  of  social  services  was  adopted,  and  non-public 
providers  of  social  services  were  licensed.  As  of  April  2024,  119  licensed  social  service  providers 
to  serve 
with 
beneficiaries  were 
4 700 
granted  under 
the  Law  on 
social  protection.  Citizens’ 
associations 
private 
entities  received  licences  to 
provide social services. 

the  capacity 

and 

in 
On  non-discrimination 
social 
employment 
policy, 
labour 
the  Law  on 
relations  needs  to  be  aligned 

and 

65 

 
 
with  the  Law  on  prevention  and  protection  against  discrimination.  Discrimination  based  on 
employment  and  labour  relations  was  prevalent  in  cases  reported  to  the  Ombudsman  and  the 
Commission  for  the  Prevention  and  Protection  against  Discrimination.  (See  also  Chapter  23  - 
Judiciary and fundamental rights). 

On equality between women and men in employment and social policy, the notable gender gap in 
the  labour  market  persists.  Women  in  North  Macedonia  are  significantly  less  active  on  the  labour 
market than men. 

In January 2024, a midterm review was conducted on the implementation of the Employment strategy 
and  the  2021-2023  action  plan.  Childcare  and  pre-school  capacities  increased  during  increased  to 
1072 places by March 2024. This capacity covers 34.5% of children aged 0-6 and 45.5% of children 
aged  3-6.  In  January  2024,  the  government  adopted  the  Programme  for  Social  Security  Support  of 
Women Farmers for 2024, enabling the utilisation of maternity benefits during periods of inability to 
perform agricultural work due to childbirth. 

Chapter 20: Enterprise and industrial policy 

EU  industrial  policy  strengthens  competitiveness,  facilitates  structural  change  and  encourages  a 
business-friendly environment that stimulates small and medium-sized enterprises (SMEs). 

Enterprise  and  industrial  policy  principles  remain  scattered  within  a  number  of  strategic 
documents under the competence of different national authorities and the plan to consolidate part of 
the administrative structures, by merging some institutions and integrating others into the Ministry of 
Economy  was  adopted  but  is  not  yet  implemented  (see  also  the  section  on  public  administration 
reform). 

An  export  promotion  strategy  2024-2027  was  adopted  in  January  2024  and  will  have  to  be  swiftly 
implemented. The SME Observatory 2022 Report which provides statistical data and analyses of the 
actual situation of SMEs was published. The Ministry of Economy started working on a new strategy 
for  the  development  of  SMEs  for  which  EU  technical  assistance  was  provided.  The  strategy  is 
scheduled to be adopted in December 2024, it will cover the period 2025-2030 and will be based on 
the EU strategy for green and digital SMEs and the small business act. 

The dialogue with the chambers of commerce took place through a dedicated platform managed by 
the  Deputy  Prime  Minister  for  Economic  Affairs.  However,  the  dialogue  still  needs  to  be  more 
transparent, systematic, and considerably more responsive to the business needs. National authorities 
continue  to  adopt  measures,  laws  and  implementing  legalisation  without  previous  notification  and 
adjustment  period  for  companies.  Authorities  conduct  regular  monitoring  of  policy  implementation 
based on input indicators, but no evaluation of the impact and effectiveness is conducted. Out of 15 
shortcomings  identified  last  year  by  the  State  Audit  Office,  the  Fund  for  Innovations  and 
Technological Development (FITD) addressed three and partially addressed six of them.  

Overall, the enterprise and industrial policy would benefit from improved  coherence and institutional 
coordination while the impact of the policies for private sector development remain unclear. 

There  has  been  some  progress  in  implementing  the  2022-2026  Growth  acceleration  plan.  A  legal 
framework  for  a  new  Guarantee  facility,  a  Development  Fund,  an  Energy  Efficiency  Fund,  and  a 
Hybrid  Strategic  Green  Fund  is in  place.  The  Fund  for  Innovation  and  Technological  Development 
remains the key institution in support of innovation in private companies. Under the entrepreneurship 
education programme, the Agency for entrepreneurship provided trainings aiming at developing the 
entrepreneurial  spirit  and  culture.  The  Directorate  for  Technological  Industrial  Development  Zones 
initiated a programme for the development of suppliers aiming to support local companies to integrate 
into  the  global  value  chains.  Streamlining  of  parafiscal  charges  did  not  progress.  FITD  started 
working  on  measures  for financial aid  for ‘greening’ of  businesses  with  the  objective  to  financially 
support  companies’  activities  in  line  with  the  Green  Agenda  for  the  Western  Balkans.  Despite  the 
recent increase  of average wages,  companies  face  difficulties  to employ  qualified  workforce due to 
significant emigration and persisting mismatch between skills demand and offer. 

66 

 
 
There  are  numerous  policy  measures  for  financial  and  non-financial  aid  to  companies.  None  of  the 
measures  have  been  subject  to  in-depth  evaluation  for  the  purpose  of  assessing  their  relevance, 
potential  to  distort  market  competition  or  the  effectiveness  and  impact  on  the  overall  economy 
growth. 

On  policy  instruments,  North  Macedonia  participates  in  the  SME  Pillar  of  the  Single  Market 
Programme.  

Some progress is noted in harmonisation with the Late Payment Directive while full transposition is 
planned for end of 2025. 

In  terms  of  sectoral  policies,  the  adopted  smart  specialisation  strategy  covers  industries  under  this 
chapter, notably electro-mechanical industry, food processing, construction and tourism (more details, 
see chapter 25 – Science and research).  A measure targeting industry-academia cooperation in S3-
areas was piloted under the Programme for support of competitiveness of the manufacturing industry 
and social responsibility. A new strategy for tourism is under development. The country launched its 
circular economy roadmaps in March 2024, targeting circular business models across five key sectors: 
SMEs, construction, biomass and food, textiles, and mining and metallurgy. 

Chapter 25: Science and research 

The EU provides significant support to research and innovation. All Member States can participate in 
the  EU’s  research  and  innovation  programmes  and  benefit  from  them,  especially  where  there  is 
scientific excellence and a solid investment in research and innovation. 

Some progress was made to align with European standards on research and innovation. In 2023, the 
State Industrial Property Office registered 581 patents while the Ministry of Education and Science 
announced calls for six new European Research Area actions. The Smart Specialisation Strategy, the 
main policy document for innovation and research with clear sector-specific priorities, and a biannual 
action  plan  for  2024-2025  were  adopted  in  December  2023.  Implementation  started  slowly  as  no 
significant State budget was allocated for 2024. The overall investments in research and innovation 
remained  low  (only  0.38%  of  GDP  2022,  while  the  participation  of  the  private  sector  in  research 
remains as in past years (0.1% of GDP). The national technology transfer roadmap has not yet been 
developed. Authorities need to strengthen their participation in the new European Research Area and 
in the new European Innovation Agenda. 

The  country’s  participation  in  Horizon  Europe,  the  EU’s  framework  programme  for  research  and 
innovation continued, while in 2023 17 projects received EUR 3.4 million funding (30% less funding 
than 2022). The national technology transfer roadmap has not yet been developed. Authorities need to 
strengthen their participation in the new European Research Area and in the new European Innovation 
Agenda. 

On  innovation,  the  European  Innovation  Scoreboard  2024  classifies  the  country  as  an  ‘emerging 
innovator’ with a score of 45.1% of the EU average, marking a decrease of 4.5% compared to 2023. 
The Fund for Innovation and Technological Development started restructuring in order to adhere to 
the  findings  of  the  State  Audit  Office.  The  academia-business  cooperation  has  been  boosted  by  a 
special grant programme launched in the beginning of 2024. 

The EIT RIS hub was set up and started to promote the EIT support in the area of education-science-
innovations.  

Chapter 26: Education and culture 

The  EU  supports  cooperation  in  education  and  culture  through  funding  programmes  and  the 
coordination  of  Member  State  policy  through  the  ‘open  method  of  coordination’.  The  EU  and  the 
Member States must also prevent discrimination and ensure quality education for children of migrant 
workers, including those from disadvantaged backgrounds. 

The 2018-2025 strategy for education is the main document governing the education sector, but its 
monitoring mechanisms remain not well defined. Targets and indicators need to be improved to allow 

67 

 
 
a proper evaluation of the implementation of the reforms. Authorities need to strengthen coordination 
among institutions in developing legislation. 

Authorities  need  to  improve  the  capacities  in  the  school  system  allowing  for  the  optimisation  and 
restructuring  of  the  school  network  thus  increasing  the  efficiency  of  the  education  system.  A  new 
funding  model  for  primary  education  aiming  to  redistribute  funds  more  effectively  across 
municipalities,  developed  by  the  Ministry  of  Education  and  Science  (MoES) is  yet  to  be  approved. 
Public  spending  on  education  and  training  decreased  slightly  to  3.17%  of  GDP  in  2024  (3.58%  in 
2022), which is still far below the EU average of 4.7%. The education budget decreased as a share of 
the overall State budget in 2024 (9.15%) comparing to 2023 (11.7%). 

During the reporting period, the capacity of public and private institutions providing early childhood 
and  care  (ECEC)  increased  by  1 072  places.  While  enrolment  of  children  3-6  years  old  into  ECEC 
increased over the last year by 4%, the current rate of 46% still falls considerably short compared to 
the EU target on ECEC attendance set at 96%. 

The  number  of  pupils  in  primary  schools  dropped  by  0.83%  at  the  beginning  of  the  school  year 
2022/2023,  while  the  number  of  pupils  in  secondary  schools  dropped  by  2.52%  compared  to  the 
previous  school  year.  In  2022/2023  there  were  185 099  pupils  (out  of  which  89 676  females)  in 
primary schools in 2022/2023, and 69 227 (out of which 33 825 females) in secondary schools.  

In  line  with  the  Law  on  primary  education,  the  Concept  for  primary  education  as  well  as  national 
learning  outcomes  and  assessment  standards,  curricula  for  grade  6  were  introduced  in  school  year 
2023/2024, thus covering the first 6 out of 8 years of primary education. 

The results, published in November 2023, from the Programme for International Student Assessment 
(PISA) of 2022 highlighted concerning setbacks in pupils’ learning outcomes in reading, mathematics 
and science in the country as well as a decrease compared to 2018. In all three tests, students in North 
Macedonia scored less than the OECD average. The results show a high proportion of students of 15-
year-olds failing to demonstrate basic proficiency (level 2) in reading (73.6%), in maths (66.2%) and 
in  science  (65.3%).  North  Macedonia  is  taking  part  to  the  ongoing  Trends  in  International 
Mathematics  and  Science  Study  (TIMSS  2023)  and  Teaching  and  Learning  International  Survey 
(TALIS  2024)  aiming  at  providing  evidence-based  data  on  the  working  conditions  of  teachers  and 
school  leaders  and  learning  environments  in  their  schools.  According  to  the  Concept  of  Primary 
education,  in  the  new  curricula  for  the  subjects  for  the  first,  second,  third,  fourth,  fifth  and  sixth 
grades  of  primary  education,  as  well  as  in  those  for  the  seventh  and  eighth  grades  (prepared in  the 
period October 2023  - March 2024), green skills are integrated in the contents of different teaching 
subjects,  especially  within  the  Science  subject.  The  results  of  these  tests  are  however  not  yet 
available. 
North Macedonia has taken steps towards the effective, coherent and inclusive digital transformation 
of  its  education  system,  by  launching  a  new  Education  Management  Information  System  (EMIS), 
equipping schools, and putting in use digital textbooks in primary education. The authorities need to 
further  enable  developing  digital  skills  throughout  primary  and  secondary  as  well  as  increasing  the 
capacities  of  the  educational  institutions  and  teachers’  competencies  to  develop  these  skills  in  line 
with  the  EU  Digital  Education  Action  Plan  2021-  2027.  The  development  of  the  curriculum  for 
secondary education including green skills was further delayed, as the Law on secondary education is 
not yet adopted. 

The  new  Law  on  vocational  education  and  training  (VET)  has  yet  to  be  adopted.  A  cooperation 
scheme is in place between business companies, vocational high schools, the Chambers of Commerce 
and  the Ministry of  Education to  support  students’ internships  in  private companies.  In school  year 
2023/24, in total 568 dual classes were operating with 8 242 students enrolled. 

In higher education, the overall enrolment remains low. In the 2022/2023 school year 69 227 students 
were enrolled (out of which 33 825 female). The main challenge remains the improvement of quality 
of higher education through the development of accreditation and quality assurance processes. A new 
model for financing of higher education needs to be adopted. 

68 

 
 
In the last quarter of 2023, MoES finalised a project on further supporting the implementation of the 
National Qualifications Framework, resulting to the development of ‘training the trainers,’ guidebook 
to develop qualification standards, the holding of capacity building trainings and the development of 
guidelines on managing and quality-assuring the digital input in the NQF register. 

North Macedonia remains a member of the European Higher Education Area (Bologna process).  

North  Macedonia  continued  participating  in  the  Erasmus+.  In  2023,  organisations  from  North 
Macedonia participated as applicant or partner in 828 Erasmus+ (and also European Solidarity Corps) 
projects for a total contracted grant of EUR 7.05 million. The country continued to participate in the 
European Education Area working groups 2021-2025. 

The Law for adult education is not yet adopted. North Macedonia made some progress in inclusive 
education, namely in primary education. As of school year 2023/2024, pupils with special educational 
needs  are  enrolled  to  mainstream  primary  schools,  increasing  their  number  by  app.  10%.  The  total 
number  of  educational  assistants  in  primary  education  amounted  to  820.  Over  the  reporting  period 
authorities issued a call to engage 40 Roma educational mediators from 28 municipalities to support 
Roma students in primary education. In the school year 2023/2024, the total number of Roma pupils 
in primary education is 9 657 while in secondary it is 1 970, with about two-thirds being recipients of 
a scholarship. In higher education, authorities granted 135 scholarships to Roma students whereas the 
total number of active Roma students in the education system is 250. 

In the reporting period the authorities adopted the national youth strategy for 2023-2027 along with 
the action plan for 2023-2025. On sports, North Macedonia continued to participate in the European 
Week of Sport. 

On culture and the protection of cultural heritage, the adoption of amendments to the culture national 
legislation, the new national strategy for 2023-2027 on the development of culture and protection of 
cultural heritage was further delayed. The Ministry of Culture should strengthen the capacities for the 
protection and promotion of country’s diversity of cultural expressions, including heritage. The State 
Audit Office report revealed the need to reinforce the legal and operational system of country’s Film 
Agency.  The  country’s  cultural  heritage  needs  to  be  better  safeguarded.  Further  efforts  to  reinforce 
institutional  response  and  interinstitutional  cooperation  on  the  protection  of  cultural  heritage  sites, 
such  as  the  Skopje  Old  Bazaar  should  be  considered.  North  Macedonia  continued  to  participate  in 
fully in the Creative Europe programme. 

Chapter 29: Customs union 

All  Member  States  are  part  of  the  EU  customs  union  and  follow  the  same  customs  rules  and 
procedures.  This  requires  legislative  alignment  as  well  as  adequate  implementing  and  enforcement 
capacity and access to and interoperability with the EU electronic customs environment. 

The  customs  legislation  is  highly  aligned  with  the  EU  acquis.  In  the  field  of  customs  legislation, 
progress was made in aligning to the EU combined nomenclature.  

As  part  of  the  anti-fraud  efforts,  it  is  recommended  that  North  Macedonia  strengthens  combating 
customs  fraud,  in  particular  smuggling  of  tobacco  products  and  by  cooperating  with  OLAF,  and 
ratifies  the  Protocol  on  Elimination  of  Illicit  Trade  in  Tobacco  Products,  signed  in  2014.On 
administrative  and  operational  capacity,  a  comprehensive  intelligence  system  in  support  of 
investigation and enforcement is in place. Controls are based upon intelligence-led risk analysis, pre-
arrival information and selectivity techniques. Risk management was applied systematically with the 
percentage  of  physical  controls  (red  channel)  at  5.7%  and  documentary  controls  (yellow  channel) 
accounting for 16.9% of all shipments in 2023. A new project for enhancing the risk management and 
establishing customs data warehouse commenced in 2024. 

Total revenues collected by the customs administration in 2023 were by 1% lower compared to 2022, 
amounting to 1.9 billion EUR. The agreement to establish one stop control with Kosovo was ratified 
in December 2023. The ICT development strategy for 2021-2025 was implemented, aiming to provide 
coordinated  development  and  implementation  of  national  systems  with  those  of  the  EU.  The 

69 

 
 
operations  of  NCTS  (Phase  4)  in  North  Macedonia  were  satisfactory.  The  upgrade  of  the  national 
system of NCTS to Phase 5 is facing delays and remains a priority for 2024.To cope with this, further 
capacity building and staff recruitment, in particular in the IT area, is necessary. 

The  customs  administration  participated  in  seven  international  operations  in  the  period  September 
2023-March  2024.  Cooperation  and  exchange  of  intelligence  with  the  customs  agencies  from  the 
region and with international and regional organisations continued. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY 

This cluster  covers:  transport (Chapter  14);  energy (Chapter  15);  trans-European  networks  (Chapter 
21); and environment and climate change (Chapter 27). 

Chapter 14: Transport policy 

The EU has common rules for technical and safety standards, security, social standards, State aid and 
market liberalisation in road transport, railways, inland waterways, multimodal  transport, aviation 
and maritime transport. 

On  the  general  transport  acquis,  the  key  strategic  documents  for  transport  and  its  sub-sectors  are 
already in place since 2023 but no progress was made in developing the action plan to accompany the 
20182030  national  transport  strategy  The  operational  and  administrative  capacity  for  all  modes  of 
transport  is  low  and  little  effort  has  been  made  to  strengthen  them.  Although  North  Macedonia  is 
actively  engaged  in  the  work  of  the  Transport  Community,  there  was  limited  progress  on  the 
implementation of the Transport Community Treaty action plans. Sustainable urban mobility plans for 
Skopje and for other major cities are not in place.  In the new government, the minister of transport, 
who is also deputy prime minister, remains responsible for transport and postal sectors.  

On  road  transport,  legislation  is  partial  aligned  with  the  EU  acquis.  Further  efforts  are  needed  to 
fully align with the EU  acquis on social and market rules in road transport.  The executive body for 
road  traffic  safety  has  still  not  been  set  up,  and  a  road  safety  strategy  has  not  yet  been  established. 
Legislation on road infrastructure safety management and minimum safety requirements for tunnels in 
the  trans-European  road  network  are  not  aligned  with  EU  legislation.  The  national  legislation  on 
access to the market to international passenger’s transport is partially harmonised with EU legislation. 
is.  The  Law  on  dangerous  goods  is  aligned  with  the  EU  acquis  but  there  is  still  no  legal  entity 
appointed to conduct a conformity assessment on the existing equipment for the transport of dangerous 
goods. Enforcement and the technical capacities of the State Transport Inspectorate remain weak. The 
five-year road maintenance plan has  not been regularly published. Funding for road maintenance does 
not cover the needs. The national ITS strategy and action plan were approved by the government but 
the national laws are not aligned with the EU ITS Directives. 

On  rail  transport,  the  main  requirements  of  the  EU  acquis  market  pillar  are  met  in  terms  of  the 
unbundling of the infrastructure manager and the national operator. While the rail market opened for 
all operators since December 2023, recent amendments to the law  aimed at closing the market to new 
entrants until the country joins the EU, represents a departure from the objective of the EU legislation 
and the Transport Community Treaty. Enforcement of the amended railway safety and interoperability 
legislation  is  needed.  Preparations  for  strengthening  the  operational  capacity  of  the  Railway  Safety 
Directorate are delayed. There has been still no progress in setting up an accident and investigation 
body. The mutual agreement on cross-border railway cooperation with Greece has not yet concluded. 
In the area of maritime transport, North Macedonia, as a landlocked country, participates in all basic 
transport  conventions  of  the  International  Maritime  Organisation,  including  the  European  Maritime 
Safety Agency (EMSA). The basic alignment with the legislation is needed. 

On inland waterway transport, North Macedonia is aligned with most of the EU acquis, but not with 
the  Regulation  on  the  recognition  of  certification  and  transportation  of  goods  and  passengers.  The 
country  submitted  a  request  to  participate  in  the  EU  strategy  for  the  development  of  the  Danube 
Region and continues to contribute actively to the work of the International Commission of the Sava 

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River  Basin.  Aligning  the  legislation  with  common  rules  applicable  to  the  passengers  by  inland 
waterway is still needed. 

In the area of aviation, the country has maintained a good level of alignment with the EU acquis and 
has partially aligned with the aviation safety legislation withing the reporting period.  An assessment 
mission took place during the reporting period on whether the country should be admitted to the next  
phase of the European Common Aviation Area Agreement (ECAA). Further efforts are still needed to 
facilitate  European  Aviation  Safety  Agency  standardisation  inspections.  Independent  functioning  of 
the air navigation service provider need to be maintained. 

On multimodal  transport, progress was made and technical experts are still working  on setting up a 
multimodal node near Skopje. North Macedonia has not yet harmonised the national legislation with 
the EU acquis on electronic freight transport information. 

On  EU  passenger  rights  acquis,  progress  was  made  with  bus  and  coach  passenger  rights  but  still 
remain to be aligned for the railway passenger rights. 

Chapter 15: Energy  

EU  energy  policy  covers  energy  supply,  infrastructure,  the  internal  energy  market,  consumers, 
renewable  energy,  energy  efficiency,  nuclear  energy  and  nuclear  safety,  radiation  protection  and 
nuclear safeguards. 

The government adopted the Just Transition roadmap in June 2023 which includes specific actions to 
be  undertaken  in the  short  term (2024-25), medium  term  (2026-27)  and  longer term in the  areas  of 
Bitola  and  Kicevo.  An  Investment  Plan  for  accelerated  coal  transition  under  the  Accelerating  Coal 
Transition Programme established by the Climate Investment Fund was prepared but implementation 
is pending. 

The government implemented some of the measures set out in the national energy action plan adopted 
in  December  2022,  which  received  relevant  contributions  from  the  EU  Energy  Support  Package. 
Programmes  supporting  energy  efficiency  and  small-scale  renewables  have  been  implemented, 
although  at  a  limited  pace.  Institutional  reforms,  revision  of  the  strategic  framework,  adoption  and 
implementation of new legislation is ongoing. 

The update of the current national energy and climate action plan from 2022 is pending to address 
the recommendations of the Energy Community Secretariat. 

The administrative capacity for dealing with energy policy, strategic planning, and investments in the 
energy  sector  remains  largely  insufficient.  There  is  no  energy  data  collection  system  within  the 
Ministry of Economy neither a proper policy evaluation nor performance assessment in place. 

Concerning  the  security  of  supply,  the  country  remains  significantly  dependent  on  coal.  Both  the 
Bitola and Oslomej/Kicevo thermal power plants continue to operate on coal from limited domestic 
resources  and  imports.  The  installed  capacity  of  power  plants  from  renewable  energy  sources 
increased  to  50%  of  the  overall  electricity  installed  capacity  and  33%  of  the  overall  electricity 
production.  Most  notable  is  the  287%  increase  in  the  production  of  electricity  from  photovoltaic 
power plants in 2023 compared to 2022. Domestic electricity production accounts for 97.25% of gross 
electricity  consumption,  while  only  2.75%  is  provided  from  imports.  The  emergency  oil  stocks 
correspond to at least 58 days of average which is below the obligation of 90 days daily net imports. 
Gas security of supply provisions including aspects related to gas storage are not compliant with the 
EU acquis. The gas transmission system operator has been certified as required by the third energy 
package. 

The State Commission for Preventing Corruption has conducted several audits of the energy sector. 
The  electricity  transmission  system  operator  MEPSO  and  the  electricity  production  company  ESM 
should put more focus on digitalisation, transparency of public procurement, and other procedures for 
the  planning  of  activities  and  investments.  Network  losses  of  13.80%,  remain  high  by  international 
standards as a result of both technical and commercial losses in the distribution network. 

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On renewable energy, the NECP set a 38% target for the share of renewable energy sources in gross 
final  consumption  of  energy  in  2030  corresponding  with  the  targets set  by  the  Energy  Community. 
The national legislation is not aligned with the Renewable Energy Directive. The share of renewable 
energy sources (RES) in the gross final energy consumption for 2022 was 18.8% (data for 2023 not 
available).  Investments in hydropower should  be  compliant  with the  relevant  environmental  acquis. 
Optimising balancing services and investments in energy transmission and energy storage should be 
promoted to improve the integration of RES into the grid. An upgrade of the grid system is necessary. 
The gas transmission system operator has been certified as required by the third energy package. 

Legislation  on  environmental  impact  assessment  (EIA)  is  not  aligned  with  the  acquis  and  poses  a 
significant  risk  to  conducting  quality  EIAs  for  strategic  energy  projects.  There  have  also  been  no 
improvements  in  secondary  legislation  concerning  the  screening  processes  for  small  hydropower 
projects with an installed capacity of less than 2 MW. 

The Law on energy efficiency is partially aligned with the updated Directive on energy efficiency and 
the Directive on the energy performance of buildings. Following the latest amendments to the Energy 
Efficiency  Directive  in  2023,  the  update  of  the  Law  on  energy  efficiency  is  under  way.  The 
implementation of the current legislation has not improved. 

For nuclear energy, nuclear safety, radiation protection, and nuclear safeguards, there have been 
no changes in the reporting period. 

Chapter 21: Trans-European networks 

The EU promotes trans-European networks (TENs) in the areas of transport, telecommunication and 
energy to strengthen the internal market and contribute to growth and employment. 

On  transport  networks,  the  majority  of  the  road  network  is  not  compliant  with  the  TEN-T 
Regulation, Corridor X being more advanced in this respect than Corridor VIII. The National transport 
strategy (NTS) for 2018-2030 is in line with development of the TEN-T, without, however an action 
plan  being  in  place.  Inefficient  procurement,  such  as  for  the  action  plan  for  the  NTS  and  slow 
implementation such as for works along Corridor X-d hamper developments in the sector. The country 
is currently implementing more than 10 projects on the TEN-T road network. The funding allocated 
for  maintenance  of  road  infrastructure  does  not  cover  the  needs.  There  is  limited  interest  in  the 
development  of  Sustainable  Urban  Mobility  Plans  (SUMPs),  although  IPA  funds  are  available  for 
relevant projects. Regarding urban nodes, the country benefits from an IPA funded feasibility study for 
multimodal node in Trubarevo. 

In April 2024, a ratification of the high-level agreement between North Macedonia and the European 
Union for the indicative maps of the Trans-European transport network in North Macedonia was made 
in line with the agreement on indicative maps for TEN-T in the Western Balkans signed in May 2023. 
Corridor VIII will be part of the new Western Balkans – Eastern Mediterranean European Transport 
Corridor, linking South-East Europe with the centre of Europe through the Western Balkans region. 

Works  on  the  rail  Corridor  VIII  towards  Bulgaria  are    progressing.    Phase  III  of  the  project,  Kriva 
Palanka  border  with  Bulgaria  was  interrupted  by  the  national  authorities.  Additional  efforts    are 
continuously needed to accelerate progress on rail Corridor VIII and other priority sections of the core 
network for both rail and road. 

More efforts are needed from both sides to finalise the mutual agreement with Greece on establishing 
the Kremenica-Neos Kafkasos railway border-crossing with already the operational rail infrastructure 
constructed.  Funding  to  build  adequate  infrastructure  close  to  the  Serbian  border  at  the  Tabanovce 
railway border station has still not been completely secured. The five-year road and rail maintenance 
plans yet not adopted. 

On  energy  networks,  the  construction  of  a  new  400kV  electricity  transmission  interconnector  line 
with Albania is still ongoing, lagging behind the schedule. Preparation of the technical documentation 
for  strengthening  the  transmission  network  in  the  south-eastern  region  of  North  Macedonia  is 

72 

 
 
ongoing. The national legislation is partially aligned with the old TEN-E Regulation, though it should 
be aligned with the revised TEN-E by the end of 2024.  

The procurement for the works is ongoing on a natural gas interconnector between North Macedonia 
and Greece, a flagship project in the Economic and Investment Plan (EIP) for the Western Balkans, 
and  priority  project  in  the  in  the  Central  and  South  Eastern  Europe  Energy  Connectivity  (CESEC) 
High-Level Group, which will  enable the security of gas supply in North Macedonia. The preparatory 
activities for construction of the gas interconnector with Serbia are ongoing. The feasibility study and 
the technical designs for the gas interconnector with Kosovo are finalised. 

Chapter 27: Environment and climate change 

The EU promotes strong climate action, sustainable development and protection of the environment. 
EU  law  contains  provisions  addressing  climate  change,  water  and  air  quality,  waste  management, 
nature protection, industrial pollution, chemicals, noise and civil protection.  
Environment  

On  horizontal  legislation,  North  Macedonia  is  not  fully  aligned  with  the  Directives  on 
Environmental  Impact  Assessment  (EIA)  and  Strategic  Environmental  Assessment  (SEA)  and  no 
progress  is  noted  over  the  reporting  period.  This  negatively  impacts  all  other  sectors,  infrastructure 
investments  and  overall  public  participation  and  perception.  The  lack  of  specialised  staff  and  weak 
institutional and administrative capacity are undermining quality control and adequate performance of 
environmental impact assessments. This leads to approval of infrastructure projects without thorough 
consideration of the impact on the environment. Since the adoption of the Law on inspection in April 
2022, no reform process for a more efficient system for implementing environmental legislation has 
been initiated. North Macedonia needs to ensure that there is there an institutional structure in place to 
deliver coordinated and strategic planning for environmental investments as well as the quality of the 
preparation  and  implementation  of  infrastructure  investments,  including  the  transparency  of 
procedures,  compliance  with  EIA/SEA  and  other  elements  of  the  horizontal  acquis.  The  EU 
Directives  on  environmental  liability  and  on  environmental  crime  are  also  not  fully  aligned.  The 
national implementation report to the Aarhus Convention is due in 2025. There is an Aarhus Centre, 
which  is  not  fully  operational  and  providing  obsolete  data  and  information.  Access  to  justice  on 
environment  matters  is  virtually  non-existent  and  public  access  to  information  is  weak.  North 
Macedonia should also ensure that environmental monitoring meets EU standards.  

Very limited progress was made on air quality and there are no legislative developments during the 
reporting period. The existing monitoring system and structures in  charge for collection, processing, 
reporting of data require reinforcement. The automatic monitoring network was maintained, but the 
capacities are extremely low. The process of defining zones and agglomerations needs to be finalised. 
Municipality of Gostivar adopted a 2022-2026 air quality improvement plan and air cadastre. Bitola 
also  prepared  and  adopted  a  new  air  quality  plan.  In  March  2024,  final  air  quality  plans  for  Veles, 
Ohrid, Prilep, Struga, Shtip, and Gevgelija were submitted for public consultation and approval by the 
Ministries of Health and Environment.  

In  the  area  of  waste  management,  a  roadmap  towards  circular  economy  was  developed  in  the 
reporting  period.  A  new  strategy  for  waste  management  was  prepared  and  is  currently  under  an 
assessment impact consultation process. The  strategy for sludge management has been prepared but 
consultation with stakeholders still needs to take place.   

The current legal and policy framework is to a large extent aligned with the EU Waste Framework 
Directive and the Landfill Directive and regulates Extended Producer Responsibility (EPR) schemes. 
As  of  January  2024,  the  obligation  to  organise  EPR  schemes  was  extended  to  waste  oils  and  tires, 
end-of-life vehicles and textiles, in addition to the already existing ones for packaging waste, WEEE 
and batteries. The latest amendments to the existing law on WEEE in the reporting period, reducing 
the  producers  fees,  raise  high  concerns  on  the  system  effectiveness.  Implementation  remains  a 
significant  challenge  for  the  sector.  Municipal  waste  separation  and  recycling  are  at  an  inadequate 
level and landfilling is still the predominant method of waste management. The principles of circular 
economy  are  embedded  in  the  national  waste  management  legislation  but  concrete  progress  is  still 

73 

 
 
lacking  due  to  limited  stakeholders  awareness  ,  insufficient  financial  support  and  infrastructure 
shortcomings.   

Remediation activities related to the clean-up of Organic Chemical Industry Skopje (OHIS) a former 
organic chemicals factory  dump, are progressing.  

On water quality management, the legal and policy framework for integrated water management is 
largely in place, however no progress has been made in the reporting period. A National Register for 
groundwaters has been established, but it should be made accessible to the public. North Macedonia 
has  to  accelerate  progress  towards  tackling  point  source  pollution,  advancing  on  the  designation  of 
areas  sensitive  to  eutrophication,  securing  timely  adoption  of  the  first  cycle  of  River  Basin 
Management  Plans  and  improving  monitoring  of  the  quality  and  the  quantity  of  surface  and 
groundwater. The country needs to strengthen the inspection and sanction system, and reinforce the 
sector  funding  model,  building  on  the  principles  of  polluter-pays  and  full-cost-recovery.  Some 
progress  was  made  on  increasing  the  level  of  funding  with  a  €  50  million  agreement  between  the 
Finance  and  Environment  Ministries  and  the  European  Investment  Bank  (EIB)  for  municipal  water 
infrastructure projects, focusing on water supply, loss reduction, riverbed regulation, and wastewater 
treatment.   

On  nature  protection,  a  new  law  on  nature,  designed  to  align  with  the  requirements  of  the  EU 
Habitat  and  Wild  Bird  Directives,  still  needs  to  be  adopted.  The  Law  on  CITES  and  related 
implementing  legislation  have  been  drafted  but  public  consultation  process  still  to  be  formally 
launched.  Activities  to  identify  potential  Natura  2000  sites  continued  throughout  the  country, 
confronted with institutional difficulties. The work to prepare to identify and pre-designate sites that 
will be covered by the Natura 2000 network needs to be further pursued. A digital map of habitats has 
been  created  and  published,  presenting  the  habitats  ecological  conditions.  The  process  for  the 
designation of Lake Ohrid, Studenchishko Blato and Matka Canyon has not been finalised yet. Lack 
of  sufficient sustainable financing  and administrative  capacity  to manage  protected  areas  remain  an 
important  challenge  in  the  sector,  although,  for  the  first  time,  national  budget  funds  have  been 
allocated to support the management of four national parks.  

North  Macedonia  made  some  progress  on  forestry  as  the  authorities  revised  the  Strategy  for 
Sustainable Development of Forests (until 2026). In addition, with the support of IPA funds, a pilot 
area  was  inventoried  initiating  the  development  of  the  national  forest  inventory  and  new  forestry 
legislation  in line  with  EU  Acquis  were  drafted.  However,  without  final  adoption  of  the  legislation 
and its implementation, the alignment will fall short and the necessary reforms will not be achieved. 

Industrial  pollution  and  risk  management  is  at  an  early  stage  of  alignment,  and  the  law  on 
industrial emissions is yet to be adopted. No progress has been registered in other areas.  

No  developments have  been  made in the  area of  chemicals  and  of  noise  pollution in the reporting 
period.  

On civil protection, as a Participating State of the Union Civil Protection Mechanism (UCPM), North 
Macedonia participates in the relevant activities. A system for early flood warning was developed and 
a risk mapping of flood-prone areas and vulnerable locations was conducted. Additionally, a platform 
for  incident  management  and  collaboration  for  local  civil  protection  and  other  stakeholders  was 
developed and operationalised for training, preparedness and response to floods.   North Macedonia is 
expected to improve its crisis resilience both in terms of prevention and preparedness and make use, 
when appropriate, of the scientific partnership for natural hazards, through the Emergency Response 
Coordination Centre Issues for immediate attention include reforms of the sector, better defining the 
role  of  the  national  coordinator  for  the  National  Platform  on  Disaster  Risk  Reduction,  linking  the 
national  emergency  communication  system  to  the  European  Commission’s  Common,  Emergency, 
Communication  and  Information  System  (CECIS),  adopting  the  new  national  protection  and  rescue 
strategy for 2022-2026. The country has activated twice the Union Civil Protection Mechanism during 
a prolonged wildfires crisis in July and August 2024. 

Climate change 

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No progress was made. The law on climate action is yet to be adopted. An updated national energy 
and  climate  plan  (NECP),  and  a  long-term  strategy  on  climate  action  along  with  a  2050  climate 
neutrality  target  still  need  to  be  adopted.  A  national  greenhouse  gas  inventory  system  also  requires 
operationalisation.  North  Macedonia  needs  to  fully  implement  the  MRVA  package  to  introduce 
carbon pricing by December 2025 and align with the EU ETS. It also needs to prepare and submit a 
new  National  Determined  Contribution,  under  the  Paris  Agreement  and  to  align  with  the  recent 
updates to EU climate policy under the Fit for 55 package. There is no administrative capacity in the 
Ministry of Environment and Physical Planning for the sector, and the interinstitutional coordination 
is at an incipient stage. These deficiencies need to be urgently addressed. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

This  cluster  covers:  agriculture  and  rural  development  (Chapter  11);  food  safety,  veterinary  and 
phytosanitary  policy  (Chapter  12);  fisheries  and  aquaculture  (Chapter  13);  regional  policy  and 
coordination of structural instruments (Chapter 22); and financial and budgetary provisions (Chapter 
33). 

Chapter 11: Agriculture and rural development 

The EU’s common agricultural policy supports farmers and ensures Europe’s food security. It helps 
tackle climate change and the sustainable management of national resources; maintains rural areas 
and landscapes across the EU; and keeps the rural economy alive by promoting jobs in farming, agri-
food industries and associated sectors. This requires strong management and control systems. There 
are also common EU rules for marketing standards, quality policy and organic farming. 

On horizontal issues, North Macedonia is at an early stage of preparations for sustainable agriculture. 
Government  reforms  of  the  2023  direct  subsidies  system  reinforced  the  coupling  of  the  support  to 
production. The preparation of a new Law for agriculture and rural development has been postponed. 
North Macedonia should  align its agricultural support policy with the EU acquis, in particular the use 
of agri-environmental measures. 

All elements of the integrated administration and control system (IACS) are in place in line with the 
EU  acquis.  Data  transfers  and  the  interoperability  of  the  various  elements  needs  to  be  ensured 
together with verification of data accuracy . Progress is noted with the acquisition of the orthophoto 
(aerial) imagery  to  facilitate  the  update  of  the  LPIS.    The  farmers’  register  and  LPIS  to  the  paying 
agency  have  still  to  be  transferred  to  the  paying  agency.  Regarding  the  development    of  real  time 
interoperability  with  the  Animal  identification  and  registration  systems  (Animal  ID)  due  to  data 
quality no progress was achieved. 

In  the  area  of  the  farm  accountancy  data  network  (FADN),  ,  the  expansion  of  the  sample  for  data 
collection improved representation.  Additional resources are needed to ensure the expansion of the 
FADN system and to incorporate environmental and social sustainability data in line with the  new 
EU farm Sustainability Data Network (FSDN). 

The new Law on advisory services was adopted, providing the establishment of the legal framework 
for developing farm advisory services in line with the EU acquis. 

The overall common market organisation (CMO) legislation remains to be adopted and institutional 
mandates defined. 

On rural development,  IPARD III implementation has started with the launch of two project calls 
while at the same time progressing with finalisation of the  IPARD II programme.  The capacity and 
staff retention of the IPARD authorities, particularly the IPARD Agency, must be addressed to ensure 
consistency. Particular attention is required to reduce late payments to applicants. 

On  quality  policy,    progress  is  noted  with  the  adoption  of  the  Law  on  wine.    The  legislative 
framework, including on spirit drinks remains to be fully aligned with the EU acquis. Administrative 
capacity and resources remain insufficient, despite growth prospects. 

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As regards organic farming, a new law on organic farming further aligning with EU acquis remains 
to be adopted. Actions to enhance the monitoring and control of organic certification and traceability 
of organic products should be improved. Efforts should be made to further develop the sector, making 
further use of the support available under the IPARD III programme. 

Chapter 12: Food safety, veterinary and phytosanitary policy 

The EU food acquis, including hygiene rules for foodstuff production, ensure a high level of food and 
feed safety and a high level of protection of consumers’ interests. Animal health and welfare and the 
safety  of  food  of  animal  origin  are  safeguarded  together  with  quality  of  seeds,  plant  protection 
material, protection against harmful organisms and animal nutrition. 

On general food safety, amendments to the Law on food safety were adopted. A new Law on official 
controls was prepared but is yet to be adopted. The national rapid alert system for food and feed and 
the  Food  and  Veterinary  Agency’s  internal  audit  and  training  systems  continued.  The  Agency 
performed regular audits of accredited laboratories in the veterinary and food safety area. The Agency 
continued to perform its work in line with quality management standards in most areas. However, the 
risk-based  approach  and  transparency  principle  should  apply  to  all  official  control  systems  and  be 
adequately financed. 

On veterinary policy, a new Law on animal health, aimed at aligning with the new EU animal health 
legislation  including  the  implementing  and  delegated  regulation  for  disease  control,  is  still  to  be 
adopted.  The  Food  and  Veterinary  Agency  provides  regular  updates  on  safeguard  measures  for 
imports and import requirements for live animals and animal products. 

On  control  measures  for  animal  diseases,  the  Agency  has  an  active  and  passive  surveillance 
programme  in  place  for  various  diseases;  however,  these  are  yet  to  be  updated  according  to  the 
principles  of  the  EU  animal  health  law.  The  collection,  verification,  and  analysis  of  data  remains 
insufficient.  North  Macedonia  has  not  implemented  rabies  vaccination  campaigns  in  the  autumn  of 
2023 and spring 2024, and the number of collected samples from the rabies surveillance programme is 
insufficient to provide reliable data for disease  detection. The 2024 national monitoring programme 
on  control  of  residues  of  veterinary  medicinal  products  and  contaminants  in  live  animals  and 
foodstuffs of animal origin is not fully in line with the EU acquis on bovine, ovine/caprine, porcine, 
poultry, aquaculture, milk, eggs, wild game, and honey.  Four secondary legislations on zoo-technics 
were  adopted.  The  capacity  to  align  with  and  implement  the  EU  acquis  on  zoo-technical  issues 
remains to be improved. 

On  the  placing  of  food,  feed  and  animal  by-products  on  the  market  North  Macedonia  adopted 
implementing  legislation,  aiming  at  aligning  with  the  EU  acquis.  Preparatory  activities  for  the 
construction of the animal by-products rendering plant are not yet completed. 

On food safety rules, North Macedonia drafted secondary legislation on the addition of vitamins and 
minerals  and  of  certain  other  substances  to  foodstuff.  The  Agency  continued  implementing  a 
programme to monitor food safety, but the data is to be further analysed. 

Regarding specific rules for feed, the Agency continued to implement a programme to monitor feed 
safety. 

In the area of phytosanitary policy, a new Law on plant health, aimed at aligning with the new EU 
plant health legislation, is yet to be adopted  The Phytosanitary Directorate regularly updated the list 
of  harmful  organisms  in  line  with  EU  acquis  and  the  country’s  pest  status.  The  phytosanitary 
monitoring programme for plant health was implemented, and the phytosanitary information system 
was further developed. Secondary legislation on the training in the field of phyto-pharmacy, phyto-
medicine and the sustainable use of phyto-pharmaceutical products was adopted. However, measures 
for  the  sustainable  use  of  pesticides  have  not  been  implemented.  According  to  the  EU  Rapid  Alert 
System  for  Food  and  Feed  (RASFF),  EU  Member  States  reported  on  findings  of  unauthorised 
chemicals  in  several  shipments  of  vegetables,  indicating  that  the  control  of  pesticides  used  in  the 
country is inadequate. Substantial work is still necessary to collect reliable data on national pesticides 
use and its impact on human health. 

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The Law on genetically modified organisms is not fully  aligned with the EU acquis. 

Chapter 13: Fisheries and aquaculture 

The  common  fisheries  policy lays  down  rules  on  fisheries  management, protects  living resources of 
the sea and limits the environmental impact of fisheries. This includes setting catch quotas, managing 
fleet  capacity,  rules  on  control  and  inspection,  rules  on  markets  and  aquaculture  and  support  for 
fisheries and coastal communities. Further, it promotes a sustainable aquaculture. 

As North Macedonia only has inland fishing in lakes and aquaculture, a large part of the EU acquis on 
fisheries  is  not  applicable.  Progress  was  made  in  aligning  the  national  legal  framework  with  the 
adoption  of  a  new  Law  on  fisheries  and  aquaculture  in  2024.  The  new  Law  on  fisheries  and 
aquaculture  is  broadly  aligned  to  the  EU  acquis  on  market  policy,  notably  on  EU  provisions  on 
marketing standards, consumer information requirements, structural support, and State aid. However, 
it is not fully aligned with the EU acquis on aquaculture. North Macedonia should speed up adoption 
of the implementing legislation for the new legislation. 

No  progress  was  noted  in  the  reporting  period  in  addressing  chronic  understaffing  for  policy 
formulation,  control  and  in  interinstitutional  coordination.  Inspections  and  control  remain 
insufficient for the control of IUU fishing. Fish health monitoring plans have been implemented on 
regular  basis.  North  Macedonia  should  establish  sound  plans  for  performing  and  reporting  on  the 
environmental controls in the aquaculture sector  North Macedonia should incorporate actions to raise 
the  public’s  awareness  about  IUU  fishing  and  its  legal  consequences.  Specific  attention  should  be 
given to preventing the illegal fishing of protected species and European eel.  

On resource and fleet management, the European eel and Ohrid trout were strictly protected species 
covered  by  a  permanent  fishing  ban.  Temporary  bans  have  been applied  in  2023  for  preserving the 
fish  stocks.  Provisions  of  the  EU  Eel  Regulation  are  reflected  in  the  new  Law  on  fisheries  and 
aquaculture.  Further  alignment  is  necessary  for  setting  the  system  of  data  collection  and  to  include 
market  data  and  mandatory  records  for  European  eel  catch  both  in  recreational  and  commercial 
fishing. 

The  national  annual  budget  for  structural  measures  is  inadequate  for  developing  aquaculture, 
conservation actions for fish stock management and for inspections and controls. 

There  was  no  significant  development  concerning  State  aid.  On  the  international  agreements  for 
fisheries  management  of the  transboundary lakes regular  coordination  meetings  took place in  2023. 
Greece and North Macedonia apply a regular synchronised fishing ban at the Dojran Lake each year . 
Cooperation  with  Albania  for  the  management  of  Ohrid  lake  fish  stocks  continued.  In  2023,  North 
Macedonia  has  joined  the  European  Inland  Fisheries  and  Aquaculture  Advisory  Commission 
(EIFAAC) of the Food and Agriculture Organisation (FAO). 

Chapter 22: Regional policy and coordination of structural instruments 

Regional policy is the EU’s main tool for reducing regional disparities and investing in sustainable 
and  inclusive  socio-economic  growth.  It  is  operating  through  ‘shared  management’  between  the 
Commission  and  EU  Member  States.  The  implementation  of  cohesion  policy  programmes  requires 
appropriate administrative capacity on programme and project level, the establishment of systems of 
sound financial management and control and also the fulfilment of other EU acquis elements such as 
environmental or public procurement legislation. 

Limited progress was made on the  legislative framework, while basic principles remain broadly in 
line  with  EU  acquis  on  public  procurement,  public  finance  management,  regional  and  municipal 
development. The Law on audit of the Instrument for Pre-accession Assistance (IPA) was amended to 
mandate  the  Audit  Authority  to  perform  audits  under  IPA  III,  a  pre-condition  for  entrusting  North 
Macedonia with budget implementation tasks under IPA III. A Decree concerning public investment 
management was drafted and  adopted in 2024 . The strategic framework was strengthened with the 
adoption of the new Public administration reform strategy for 2023-2030 but there are delays in the 
implementation  of  the  action  plan,  while  the  country’s  legislative  framework  for  human  resources 

77 

 
 
management still needs to be revised in line with European standards. The potential for establishing 
links to EU groupings of territorial cooperation in different policy instruments is not being exploited. 
Groupings  can  be  used  as  instruments  for  integrated  territorial  governance  facilitating  the 
implementation of Small Project Funds in Interreg cooperation programmes. 

The institutional framework for the management of EU funds under IPA III has been further aligned 
with  IPA  III  requirements  in  view  of  its  future  role  in  EU  cohesion  policy.  Nevertheless,  the 
performance  of  the  Operating  Structures  established  for  the  multiannual  operational  programmes  is 
jeopardised  by  weak  administrative  and  managing  capacities  in  terms  of  staffing.  Further 
improvements are needed as North Macedonia needs to strengthen the administrative capacities and 
align the management and control system with IPA III requirements. 

Weaknesses persist in the administrative capacity of key institutions managing EU funds. The lack 
of a national staff retention policy, shortcomings in human resources management and exceptionally 
high staff turnover (in 2023 the average turnover rate was 10%) across the IPA structures remain key 
concerns.  The  importance  of  adopting  and  effectively  implementing  a  retention  policy  for  IPA 
structures is crucial. The IPA training centre remains understaffed and with a dysfunctional roster of 
trainers. 

As  regards  programming  of  the  EU  assistance,  the  IPA  Annual  Action  Programme  2024,  worth 
EUR 58.6  million,  was  adopted  in  April  2024.  The  IPA  Operational  Programmes  2024-2027  on 
environment, transport and human capital, worth of EUR 160 million, were also adopted in July 2024. 
These  programmes  are  planned  to  be  implemented  under  indirect  management  by  the  beneficiary 
country. The efficiency and frequency of sector policy dialogue, which supports the strategic planning 
and programming of the EU assistance, improved over the reporting period.  

North  Macedonia  continues  to  gain  experience  in  regional  policy  and  territorial  cooperation 
programming  and  implementation  through  its  participation  in  five  cross-border  (CBC),  two 
transnational,  and  two  interregional  cooperation  programmes,  including  the  EU  strategy  for  the 
Adriatic Ionian region. The transition from the IPA II CBC to IPA III CBC progressed smoothly on 
the  side  of  North  Macedonia,  despite  delays  with  the  ratification  of  the  financing  agreement  of  the 
IPA  III  CBC  between  North  Macedonia  and  Albania,  which  entailed  that  this  CBC  programme  is 
without Joint Technical Secretariat (JTS) for several months. 

The administrative capacities and interinstitutional coordination need to be significantly strengthened 
to maximise the benefit of this participation and pave the way for the management of cohesion policy.  

On  monitoring  and  evaluation,  North  Macedonia  actively  participates  in  the  IPA  and  sector 
monitoring  committees;  however,  less  than  45%  of  the  jointly-agreed  conclusions  reported  upon 
during  the  second  IPA  III  Monitoring  Committee  meeting  were  implemented.  The  weak 
interinstitutional coordination and the weak central reporting and monitoring function of the office of 
the  national  IPA  coordinator  negatively  affect  the  timeliness  and  quality  of  IPA  reports.  Stronger 
political engagement is needed in order to advance with the implementation of the programmes. 

Internal and external audit functions are in place. However, internal audit needs to be strengthened to 
better support the functioning of the management and control systems. The adoption of the new Law 
on  public  internal  financial  control  is  pending.  The  Audit  Authority  continues  to  perform  well  and 
follows sound audit methodology with good audit coverage. The operational and technical capacity of 
the Audit Authority improved following new recruitments. The implementation of the audit findings 
by  the  auditees  remains  very  low.  Out  of  46  findings  from  previous  audits,  only  7  were  closed  in 
2023, representing an implementation rate of 15%. 

The  financial  management  and  control  systems  are  functioning  but  are  under  pressure  due  to 
limited  administrative  capacity,  which  continued  to  negatively  affect  indirect  management  by  the 
beneficiary country. The weak administrative capacities led to automatic decommitment of more than 
EUR 79  million  under  the  IPA  II  multiannual  programme  for  environment  and  transport,  including 
some EUR 54 million decommitted in 2023, while the risk of further decommitments remains high. 
To address the critical shortcomings and be able to operate in an ex post control environment, North 
Macedonia has reorganised the financial and control systems related to the operational programmes 

78 

 
 
provided for under IPA III. Further efforts are needed to address the EU and audit recommendations 
on staff management and retention policy, procurement and contract planning, internal audit function 
and quality assurance. 

As regards anti-corruption, the anti-fraud coordination service (AFCOS) network, the backbone of the 
system for protecting EU’s financial interests in North Macedonia, is in place and fully operational. In 
addition, the institutions managing EU funds implement a financial management and control system 
accredited  by  the  Commission,  which  is  under  the  scrutiny  of  an  external  audit  body  and  the 
Commission. The Strategy for Transparency of the Government of the Republic of North Macedonia 
for 2023-2026 was adopted in December 2023. 

Chapter 33: Financial and budgetary provisions 

This  chapter  covers  the  rules  governing  the  funding  of  the  EU  budget  (‘own  resources’).  These 
resources  mainly  consist  of:  (i)  contributions  based  on  the  gross  national  income  of  each  Member 
State; (ii) customs duties; (iii) the non-recycled plastic resource and (iv) a resource based on value-
added  tax.  Member  States  must  have  the  appropriate  administrative  capacity  to  adequately 
coordinate and ensure the correct calculation, collection, payment and control of own resources. 

Limited  progress  was  made  on  developing  the  specific  own  resources  institutional  set-up  and  legal 
and methodological framework. Measures to reduce tax evasion, fraud and informal economy, as well 
as  to  improve  internal  control  in  public  sector  need  to  be  more  efficiently  applied  (for  further 
information, see  developments  under  Chapter  16  –  Taxation,  Chapter  18  –  Statistics,  Chapter  29  – 
Customs union and Chapter 32 – Financial control). 

On traditional own resources, the custom legislation is broadly aligned. The 2023 customs tariff was 
adopted to reflect the latest changes in the EU combined nomenclature. Capacity of custom authorities 
has to be further strengthened. Some progress was made on consolidation and upgrade of IT systems. 
The  customs  administration  implements  fully  paperless  environment  for  processing  customs 
declarations and excise documents. Guidelines for the application of the EU Traditional Own Sources 
are  yet  to  be  developed.  The  establishment  of  an  IT  system  for  managing  A  and  B  accounts  and 
enable  access  to  the  electronic  system  for  reporting  cases  of  fraud  and  irregularity  concerning 
traditional own resources (OWNRES) is needed. 

Amendments to the VAT law were adopted to ensure that supply of services is harmonised with the 
VAT Directive. Delays still remained in VAT refund process. The Public Revenue Office has started 
the  implementation  of  an  Integrated  Tax  Information System  (ITIS)  that  aims  to  digitalise  business 
processes and reinforce monitoring of tax collection. Risks related to VAT refund are included as part 
of  the  PRO’s  risk  management  system  that  is  yet  to  be  revised.  (See  further  information  under 
Chapter 16 – Taxation). 

National Accounts and the compilation of GNI are based on the definitions and accounting rules of 
the European System of National and Regional Accounts 2010 (ESA 2010). The State Statistic Office 
continued the regular transmission of GNI and GDP data to Eurostat, in the framework of the ESA 
2010 transmission programme. The set of annual non-financial sector accounts for  the period 2018-
2020  was  published  in  August  2023.  For  the  first  time,  annual  sector  accounts  are  produced  in 
accordance with ESA 2010. However, improvements are still needed and the GNI inventory needs to 
be updated. 

The  administrative  infrastructure  is  yet  to  be  operationalised  in  order  to  ensure  the  timely  and 
efficient functioning of the process of calculation, collection, payment and control of own resources 
as well as to improve reporting and coordination mechanisms among all bodies involved. 

CLUSTER 6: EXTERNAL RELATIONS 

This cluster covers: external relations (Chapter 30); foreign, security and defence policy (Chapter 31). 

79 

 
 
 
Chapter 30: External relations 

The EU has a common trade and commercial policy towards third countries, based on  multilateral 
and  bilateral  agreements,  and  autonomous  measures.  There  are  also  EU  rules  in  the  field  of 
humanitarian aid and development policy. 

On  common  commercial  policy,  North  Macedonia  continued  to  coordinate  its  positions  and  align 
closely  its  policies  with  those  of  the  EU,  including  within  the  WTO,  and  is  supporting  the  WTO 
reform. The country became a full member of the WTO’s Agreement on Public Procurement (GPA) 
on  30 October  2023.  The  Protocol  for  acceptance  of  the  Agreement  on  Fisheries  Subsidies  was 
adopted and submitted to Parliament for ratification in December 2023. The provisions of the Trade 
Facilitation Agreement are fully applied. The administrative capacity of the Ministry of Economy, in 
charge of trade policy should be further strengthened. 

North Macedonia participated actively in CEFTA and has continued to implement the action plan for 
the development of a common regional market (CRM) of the Western Balkan countries. The country 
started  implementing  the  three  agreements  related  to  CRM  implementation,  covering  freedom  of 
movement  with  ID  cards,  recognition  of  professional  qualifications  and  recognition  of  academic 
qualifications. 

The system for export control of dual-use goods and technologies is functional. North Macedonia is 
aligned  with  the  latest  EU  acquis,  namely  Regulation  (EU)  2021/821  and  its  annual  updates  as 
regards the list of dual-use items However, the country is neither a participant nor an adherent to the 
Australia Group.  Adherence to the Australia Group would be a positive step towards alignment with 
EU  acquis  and  towards  future  Australia  Group  membership  which  will  be  expected  upon  EU 
accession. 

There  were  no  new  bilateral  agreements  with  third  countries  negotiated.  38  bilateral  investment 
treaties (BITs) are in force, of which 18 are with EU Member States. 

There was no progress in development policy and humanitarian aid. The country is encouraged to 
establish a relevant policy framework, in line with EU policies and standards. 

Chapter 31: Foreign, security and defence policy 

Member States must be able to conduct political dialogues in the framework of foreign, security and 
defence  policy,  align  with  EU  statements,  take  part  in  EU  action,  and  apply  agreed  sanctions  and 
restrictive measures. 

North  Macedonia  continued  to  engage  in  political  dialogue  with  the  EU  on  foreign  and  security 
policy issues at all levels. It started negotiations on a Security and Defence Partnership with the EU in 
spring  2024.  In  February  2024  North  Macedonia  participated  in  the  tenth  EU-Western  Balkans 
meeting  of  Political  Directors.  In  June  2024  North Macedonia  participated  in  a working lunch  with 
members of the Foreign Affairs Council. 

The institutional framework enabling the country’s participation in the common foreign and security 
policy  (CFSP)  and  the  common  security  and  defence  policy  is  in  place  and  operational.  North 
Macedonia has maintained its 100% alignment with statements by the High Representative on behalf 
of  the  EU  and  EU  Council  Decisions  on  sanctions,  including  all  EU  restrictive  measures  against 
Russia  and  Belarus  related  to  Russia’s  war  of  aggression  against  Ukraine.  North  Macedonia 
participated in the Summit on Peace in Ukraine hosted by Switzerland. 

On  EU  restrictive  measures,  the  main  challenge  is  the  legal  time  gap  between  the  alignment  and 
their formal implementation/entering into force. In the previous legislature, government submitted a 
proposal to amend the Law on restrictive measures to Parliament: however, it was not considered and 
would need to be re-introduced. 

North Macedonia’s active cooperation with international organisations has continued. Its priorities 
in the UN are in line with important EU priorities, including on security, protection of human rights 
and  the  climate,  promoting  the  role  and  participation  of  women  and  of  youth.  The  second  national 
action  plan  on  Women,  Peace  and  Security  is  under  implementation,  including  elements  such  as  a 

80 

 
 
gender  self-assessment,  a  specific  Ministry  of  Defence  gender  action  plan,  and  strengthening 
cooperation on prevention and protection against violence against women. In 2023, North Macedonia 
chaired  the  OSCE  and  contributed  to  a  successful  outcome  of  the  OSCE  Ministerial  Council  in 
Skopje.  In  this  capacity,  it  hosted  conferences  on  ending  statelessness,  on  combating  corruption, 
money laundering and asset recovery efforts, as well as on cyber resilience. The country also assumes 
the  SEECP  Chairpersonship  in  Office  2023-2024,  and  hosted  a  Ministers  for  European  Affairs 
meeting. 

A  bilateral  immunity  agreement  between  North  Macedonia  and  the  United  States  remains  in  place, 
granting US citizens exemptions from the jurisdiction of the International Criminal Court. In doing 
so, the country does not comply with the EU common positions on the integrity of the Rome Statute 
or with the related EU guiding principles on bilateral immunity agreements.  Alignment with the EU 
position is needed. 

On conflict prevention, North Macedonia continued supporting EU measures and documents. 

On non-proliferation, North Macedonia continued to implement the 2018 regional roadmap, and its 
2022-2024 national strategy and action plan for the control of small arms and light weapons (SALW). 
Further efforts are needed by the country’s to harmonise its legislation with the EU legal framework 
concerning SALW. North Macedonia is not yet a participating state to any of the multilateral export 
control  regimes.  Alignment  with  EU  Common  Position14  on  arms  export  control  is  ongoing,  with 
further  work  required  on  comprehensive  legislation  and  inter-state  exchange  of  information.  North 
Macedonia is a state party to the Arms Trade Treaty, with inter-state risk mitigation and information 
exchange measures yet to be developed.  

North  Macedonia  participates  in  some,  but  not  all,  international  export  control  arrangements  and 
instruments,  including  the  Proliferation  Security  Initiative  and  the  Hague  Code  of  Conduct.  It  is 
committed  to  becoming  a  member  of  the  Wassenaar  Arrangement  and  the  Australian  Group.  The 
country has  not  updated  yet its  strategy  on  countering  proliferation  of  weapons  of mass destruction 
and protection against chemical, biological, radiological, and nuclear threats and an action plan (2019-
2021) for its implementation. 

On  security  measures,  North  Macedonia  has  further  implemented  its  security  of  information 
agreement with the EU on procedures for exchanging and protecting classified information. 

Regarding  the  common  security  and  defence  policy  (CSDP),  the  country  continued  to  actively 
participate and contribute substantially to EU military crisis management operations, notably EUFOR 
ALTHEA in Bosnia and Herzegovina. The Armed Forces of North Macedonia also participate within 
the  EU  Battle  Group  HELBROC  2023.  North  Macedonia  contributes  to  regional  cooperation  in 
military medicine through the Balkan Medical Task Force (BMTF).  

On  hybrid threats,  North Macedonia joined the  Helsinki-based  European  Centre  of  Excellence  for 
Countering  Hybrid  Threats  in  October  2023  and  has  been  implementing  its  2021-2025  strategy  for 
building resilience and dealing with hybrid threats. The country promotes cooperation on exchanging 
data  and  national  experiences  with  the  partner  intelligence  services.  Since  March  2024,  a  Council, 
chaired by the Prime Minister, and a working group were established for coordination of the activities 
related  to  NATO  membership,  including  enhancing  resilience  against  hybrid  threats.  North 
Macedonia aligned with EU Declarations and restrictive measures in reaction to cyber-attacks in 2023 
and 2024. 

North Macedonia has embarked on establishing a strategic institutional and regulatory framework to 
counteract  the  adverse  effects  of  disinformation.  Recommendations  for  Joint  Action  for  Building 
Societal  Resilience  Towards  Malign  Influences  of  Disinformation,  prepared  by  civil  society  with 
international  support,  were  adopted  by  government  as  a  basis  for  creating  a  national  strategic 
framework, and included in its 2024 work programme.  Further efforts are needed to close the space 

14  EU Common Position 2008/944 

81 

 
 
 
for foreign interference and information manipulation, including disinformation, and to build societal 
resilience against this and other forms of hybrid threats. 

82 

 
 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND NORTH MACEDONIA 

North Macedonia has been a candidate country since 2005. On 26 March 2020, the European Council 
endorsed  the  Council’s  decision  to  open  accession  negotiations  with  North  Macedonia.  The  first 
Intergovernmental Conference took place on 19 July 2022, following the approval by the Council of 
the  negotiating  framework.  The  Commission  launched  the  screening  process  on  the  same  day.  The 
screening was completed in December 2023. 

North  Macedonia  has  been  participating  in  the  Stabilisation  and  Association  process  since  1999. 
The Stabilisation and Association Agreement (SAA) with the EU, signed in 2001 and in force since 
2004,  sets  the  framework  for  relations  with  the  EU,  including  political,  economic  and  technical 
dialogues.  Experts met in  seven  sub-committees  and  one  special  group,  according  to  schedule.  The 
Stabilisation and Association Council took place in March 2023 in Skopje. 

Visa liberalisation for citizens of North Macedonia travelling to the Schengen area has been in force 
since  December  2009.  A  readmission  agreement  has  been  in  force  since  2008.  The  Commission’s 
sixth report under the visa suspension mechanism concluded that North Macedonia continues to meet 
the visa liberalisation benchmarks.  

North  Macedonia  has maintained its full  alignment with  EU  common foreign  and  security  policy 
over the reporting period. Substantial participation in EU crisis management missions and operations 
continued.  North  Macedonia  benefited  from  the  second  bilateral  assistance  measure  under  the 
European Peace Facility in 2024. It has previously received assistance through a bilateral assistance 
measure  aimed  at  enhancing  the  capacity  of  the  army  of  North  Macedonia  to  participate  in  EU 
military  CSDP  missions  in  March  2023,  providing  support  in  the  areas  of  logistics,  medical 
equipment,  communication  and  information  systems,  intelligence  capacities,  chemical,  biological, 
radiological  and  nuclear  (CBRN),  engineering  and  training  equipment.  The  Balkans  Medical  Task 
Force, in which North Macedonia participates, benefits from a EUR 6 million 2022 support measure 
under the European Peace Facility. 

In  April  2024,  the  fourth  financing  decision  under  the  Instrument  for  Pre-accession  Assistance 
2021-2027  (IPA  III)  for  the  amount  of  EUR 58.6  million  was  adopted.  It  provides  support  in  the 
areas  of  rights  and  security,  economic  cohesion,  health  and  integration  facility.  In  July  2024  three 
financing decisions for a total of EUR 160 million for the multiannual operational programmes 2024-
2027  on  transport,  environment  and  human  capital  were  adopted.  North  Macedonia  benefits  from 
complementary  support  for  civil  society  and  migration  management.  North  Macedonia  also 
participates in cross-border cooperation programmes, transnational cooperation programmes and EU 
programmes.  To  improve  public  procurement  and  strengthen  capacities 
in  modelling  the 
macroeconomic  effects  of  green  policies  and  investments,  North  Macedonia  is  participating  as  an 
observer in two pilot projects under the Technical Support Instrument. 

The new activities complement the programmes still under way under IPA II (2014-2020). Progress 
was made on implementing IPA II to support the country's social and economic development and key 
structural  reforms.  EU  assistance  under  IPA  II  continued  to  support  reforms  in  the  areas  of  rule  of 
law,  public  administration  and  public  finance  and  advanced  the  fight  against  corruption.  The 
reorganisation of State institutions at central level was launched and the digital transformation of the 
country advanced. Electronic services, provided by the energy regulator, pharmaceutical chamber and 
pension insurance fund, were developed.  

Under  the  Reform  and  Growth  Facility,  North  Macedonia  could  benefit  from  an  indicative 
allocation of EUR 750.4 million, to be channelled via a Reform Agenda covering key reforms in six 
policy  areas:  public  administration  reform;  green  (energy);  digitalisation;  human  capital;  private 
sector development; and fundamental rights and rule of law. Disbursement of Union support will be 
conditional  on compliance  with the  preconditions  and  delivery  on  reforms  as  set  out in  the  Reform 
Agenda. The EU-supported Youth Guarantee, benefited over 9 900 young people in the region facing 
the highest youth unemployment and high rates of school leaving. It also assisted Roma children and 
children with disabilities. A substantial amount of EU financial assistance has been allocated to North 
Macedonia  for  protecting  the  environment  and  boosting  the  connectivity  with  the  EU  transport 

83 

 
 
systems. In the area of transport, with EU support, the rehabilitation of the A2 road section I, between 
Kumanovo and Stracin, was finalised. This improved 15.2 km of road on Corridor VIII East. On the 
environment,  the  EU  supported  the  development  of  the  National  environmental  monitoring  strategy 
and  accompanying  action  plan  and  a  long-awaited  National  Environmental  Information  System. 
Media, civil society and the private sector continue to benefit from key EU assistance, which provides 
them  with  opportunities  to  grow  and  develop  in  a  favourable  environment.  In  the  area  of 
competitiveness  and  business  development,  a  national  platform  for  women  entrepreneurs  was 
established. 

Through the Western Balkans Investment Framework (WBIF), EUR 297.82 million was provided 
to North Macedonia in IPA III grants for flagship projects in the area of clean energy, environment 
and  climate,  and  sustainable  transport.  In  July  2024,  two  technical  assistance  projects  for  the 
preparation of Railway Corridor VIII amounting to EUR 0.78 million and Corridor X, amounting to 
EUR 1.04 million were approved. 

On 8 May 2024, the EU disbursed EUR 50 million in macro-financial assistance to North Macedonia. 
This  was  the  first  instalment  of  the  EUR 100  million  macro-financial  assistance  set  out  in  a 
Commission proposal that was adopted by the European Parliament and the Council on 12 July 2023. 
The  conditions  attached to  the  assistance  have  been  adequately  met  and include,  among  others,  the 
adoption  of  the  new  strategy  on  judicial  reforms  (2023-2027)  in  line  with  the  Commission’s 
comments, the adoption of the new strategy for formalisation of the informal economy (2023-2027), 
the setting up of an Energy Efficiency Fund, amendments to the VAT and profit tax laws to reduce tax 
exemptions, and the operationalisation of the Fiscal Council. 

The  EU  provides  support via  IPA  and the  Foreign  Policy  Instrument  to  strengthen  the  resilience  of 
Western  Balkans  partners  in  facing  hybrid  threats  including  cyber  and  foreign  information 
manipulation and interference. 

84 

 
 
 
 
 
 
 
 
 
 
ANNEX II – STATISTICAL DATA 

STATISTICAL DATA (as of 5/09/2024) 
North Macedonia 

Basic data 
Population (thousand) 
Total area of the country (km²) 

National accounts 
Gross domestic product (GDP) (million national currency) 
Gross domestic product (GDP) (million euro) 
GDP (euro per capita) 
GDP per capita (in purchasing power standards (PPS)) 
GDP per capita (in PPS), relative to the EU average (EU-27 = 100) 
Real GDP growth rate: change on previous year of GDP volume (%) 
Employment growth (national accounts data), relative to the previous year (%) 
Labour productivity growth: growth in GDP (in volume) per person employed, relative to the 
previous year (%) 
Unit labour cost growth, relative to the previous year (%) 
**3 year change (T/T-3) in the nominal unit labour cost growth index (2015 = 100) 
Labour productivity per person employed: GDP (in PPS) per person employed relative to EU 
average (EU-27 = 100) 
Gross value added by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
Final consumption expenditure, as a share of GDP (%) 
Gross fixed capital formation, as a share of GDP (%) 
Exports of goods and services, relative to GDP (%) 
Imports of goods and services, relative to GDP (%) 
Gross fixed capital formation by the general government sector, as a percentage of GDP (%) 

Note 

1) 

Note 

2011 
2 057 i 
25 436 w 

2011 
464 186 
7 544 
3 890 e 
9 254 e 
36.0 e 
2.3 
1 
1 

: 
: 
45 

10.9 
19.0 
6.1 
64.1 i 
92.0 
23.5 
47.1 
66.1 
: 

2018 
2 075 i 
25 436 w 

2018 
660 878 
10 744 
5 690 e 
12 517 e 
41.2 e 
2.9 
0 
3 

: 
: 
45 

9.8 
21.5 
6.2 
62.6 i 
80.1 
20.0 
60.4 
72.8 
: 

2019 
2 077 i 
25 436 w 

2019 
692 683 
11 262 
6 000 e 
13 150 e 
41.9 e 
3.9 
2 
2 

: 
: 
44 

9.4 
20.8 
6.5 
63.4 i 
79.5 
21.0 
62.4 
76.2 
: 

2020 
2 076 i 
25 436 w 

2020 
669 280 
10 852 
5 850 e 
12 751 e 
42.3 e 
-  4.7 
-  7 
2 

: 
: 
47 

9.8 
19.8 
6.0 
64.3 i 
82.8 
21.6 
57.8 
70.5 
: 

2021 
2 069 i 
25 436 w 

2021 
729 445 
11 835 
6 440 e 
14 108 e 
43.0 e 
4.5 
3 
2 

: 
: 
47 

8.3 
19.7 
6.4 
65.5 i 
83.6 
23.5 
65.4 
81.3 
: 

Business 
Industrial production volume index (2015 = 100) 
Number of active enterprises (number) 
Birth rate: number of enterprise births in the reference period (t) divided by the number of 
enterprises active in t (%) 

Note 

2011 
90.6 w 
53 645 w 
12.2 

2018 
109.2 w 
58 231 w 
8.4 b 

2019 
113.2 w 
58 765 w 
8.5 

2020 
102.4 w 
58 570 w 
8.0 

2021 
103.9 w 
59 122 pw 
: 

2022 
1 837 bi 
25 436 w 

2022 
803 141 p 
13 033 p 
7 021 biw 
: 
: 
2.2 p 
6 e 
-  3 e 

: 
: 
44 e 

8.6 p 
19.1 p 
6.7 p 
65.7 pi 
84.9 p 
23.5 p 
74.0 p 
94.9 p 
: 

2022 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Death rate: number of enterprise deaths in the reference period (t) divided by the number of 
enterprises active in t (%) 
People employed in SMEs as a share of all persons employed (within the non-financial 
business economy) (%) 
Value added by SMEs (in the non-financial business economy) (EUR million) 
Total value added (in the non-financial business economy) (EUR million) 

Inflation rate 
Consumer price index (CPI), change relative to the previous year (%) 

Balance of payments 
Balance of payments: current account total (million euro) 
Balance of payments current account: trade balance (million euro) 
Balance of payments current account: net services (million euro) 
Balance of payments current account: net balance for primary income (million euro) 
Balance of payments current account: net balance for secondary income (million euro) 
Net balance for primary and secondary income: of which government transfers (million euro) 
**3 year backward moving average of the current account balance relative to GDP (%) 
**Five year change in share of world exports of goods and services (%) 
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 
Foreign direct investment (FDI) abroad (million euro) 
of which FDI of the reporting economy in the EU-27 countries (million euro) 
Foreign direct investment (FDI) in the reporting economy (million euro) 
of which FDI of the EU-27 countries in the reporting economy (million euro) 
**Net international investment position, relative to GDP (%) 
Year on year rate of change in gross inflow of remittances (in national currency) from migrant 
workers (%) 

Public finance 
General government deficit / surplus, relative to GDP (%) 
General government gross debt relative to GDP (%) 
Total  government revenues, as a percentage of GDP (%) 
Total government expenditure, as a percentage of GDP (%) 

Financial indicators 
Gross external debt of the whole economy, relative to GDP (%) 
Gross external debt of the whole economy, relative to total exports (%) 
Money supply: M1 (banknotes, coins, overnight deposits, million euro) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 

Note 

Note 

Note 

Note 

9.3 

7.6 b 

8.4 p 

7.3 p 

: 

77.3 iw 

74.1 iw 

73.7 iw 

73.9 iw 

73.5 iw 

2 245 iw 
3 227 

2 895 iw 
4 579 

2011 
3.2 d 

2018 
2.3 d 

2011 
-  189.3 
- 1 904.9 
359.2 
-  131.1 
1 487.5 
76.6 
: 
: 
344.6 w 
-  0.2 w 
: 
344.4 w 
283.7 w 
-  52.6 w 
2.6 iw 

2011 
: 
: 
: 
: 

2018 
22.4 
- 1 736.2 
370.9 
-  450.7 
1 838.4 
109.1 
-  1.1 
51.6 
603.7 w 
10.4 w 
0.4 
614.1 w 
291.2 w 
-  56.2 w 
1.9 iw 

2018 
: 
: 
: 
: 

3 215 i 
4 878 

2019 
0.7 d 

2019 
-  334.7 
- 1 948.8 
335.7 
-  519.6 
1 798.0 
43.2 
-  1.2 
38.4 
363.3 w 
35.5 w 
27.2 
398.8 w 
220.2 
-  57.3 w 
: 

2019 
: 
: 
: 
: 

: 

: 

: 
: 

3 154 iw 
4 643 w 

3 588 iw 
5089 pw 

2020 
1.2 d 

2021 
3.4 d 

2022 
14.0 d 

2020 
-  318.0 
- 1 803.6 
423.7 
-  411.5 
1 473.4 
110.0 
-  1.9 
37.9 
154.7 w 
46.7 w 
31.3 
201.4 w 
42.3 
-  63.6 w 
: 

2020 
: 
: 
: 
: 

2021 
-  329.0 
- 2 336.9 
497.9 
-  519.5 
2 029.4 
138.5 
-  2.9 
25.3 
387.5 w 
83.0 w 
59.7 
470.5 w 
449.7 
-  61.2 w 
: 

2021 
: 
: 
: 
: 

2022 
-  797.4 
- 3 481.0 
751.9 
-  568.4 
2 500.2 
59.1 
-  3.9 
19.1 
654.2 w 
90.8 w 
67.3 w 
745.0 w 
519.6 w 
-  62.5 w 
: 

2022 
: 
: 
: 
: 

2011 
64.2 i 
140.8 w 
1 034.7 w 
3 412.0 w 

2018 
73.0 i 
121.4 w 
2 436.7 w 
5 237.6 w 

2019 
72.4 i 
117.0 w 
2 857.4 w 
5 552.3 w 

2020 
78.7 i 
136.3 w 
3 314.2 w 
5 791.4 w 

2021 
80.9 i 
123.0 w 
3 605.5 w 
6 277.8 w 

2022 
82.8 pi 
111.9 w 
3 830.2 w 
6 880.7 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**Annual change in financial sector liabilities (%) 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, per annum (%) 
Euro exchange rates: average of period (1 euro = … national currency) 
Trade-weighted effective exchange rate index, 42 countries (2015 = 100) 
**3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries 
(2015 = 100) 
Value of reserve assets (including gold) (million euro) 

2) 

: 
: 
2.17 w 
61.529 
: 
: 

7.6 w 
: 
0.99 w 
61.512 
: 
: 

12.2 w 
: 
1.00 w 
61.506 
: 
: 

6.1 w 
: 
1.00 w 
61.675 
: 
: 

12.9 w 
: 
0.94 w 
61.636 
: 
: 

: 
: 
1.08 w 
61.623 
: 
: 

3) 

2 068.9 w 

550.3 

374.6 

114.6 

304.7 

271.6 

External trade in goods 
Value of imports: all goods, all partners (million euro) 
Value of exports: all goods, all partners (million euro) 
Trade balance: all goods, all partners (million euro) 
Terms of trade (export price index / import price index * 100) (number) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 
Crude rate of natural change of population (natural growth rate): number of births minus 
deaths (per thousand inhabitants) 
Infant mortality rate deaths of children under one year of age (per thousand live births) 
Life expectancy at birth: male (years) 
Life expectancy at birth: female (years) 

Labour market 
Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that 
is economically active (%) 
*Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are 
in employment (%) 
Male employment rate for persons aged 20–64 (%) 
Female employment rate for persons aged 20–64 (%) 
Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are 
in employment (%) 
Employment by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
People employed in the public sector as a share of total employment, persons aged 20–64 
(%) 

Note 

4) 

Note 

Note 

5) 6) 

2011 
5 053 
3 215 
- 1 838 
95.9 iw 
62.3 iw 
47.8 iw 

2011 
1.6 

7.6 
73.1 
77.2 

2011 
70.1 

48.4 

57.8 
38.8 
35.4 

18.7 i 
23.8 i 
6.2 i 
51.2 i 
25.5 w 

2018 
7 676 
5 873 
- 1 804 
94.9 iw 
80.3 iw 
52.9 iw 

2018 
0.8 

5.7 
74.6 
78.8 

2018 
70.4 

56.1 

66.6 
45.2 
42.7 

15.7 i 
23.9 i 
7.4 i 
52.9 i 
23.1 w 

2019 
8 463 
6 424 
- 2 040 
95.3 iw 
78.5 iw 
50.8 iw 

2019 
-  0.3 

5.6 
74.7 
78.6 

2019 
71.5 

59.2 

69.7 
48.4 
45.1 

13.9 i 
24.1 i 
7.0 i 
55.0 i 
23.2 w 

2020 
7 599 
5 781 
- 1 818 
102.4 iw 
77.5 iw 
46.3 iw 

2020 
-  3.2 

5.7 
72.2 
76.7 

2020 
70.5 

59.1 

68.9 
49.0 
45.7 

12.0 i 
23.9 i 
6.9 i 
57.1 i 
24.4 w 

2021 
9 647 
6 969 
- 2 678 
: 
77.1 iw 
46.2 iw 

2021 
-  5.1 

4.6 
71.1 b 
75.5 b 

2021 
70.5 w 

59.5 w 

69.5 w 
49.2 w 
44.9 w 

11.5 w 
23.9 w 
6.8 w 
57.7 w 
25.6 w 

2022 
12 126 
8 300 
- 3 826 
: 
78.3 iw 
46.8 iw 

2022 
-  2.4 b 

: 
: 
: 

2022 
: 

: 

: 
: 
: 

: 
: 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
People employed in the private sector as a share of total employment, persons aged 20–64 
(%) 
Unemployment rate: proportion of the labour force that is unemployed (%) 
Male unemployment rate (%) 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 
Long-term unemployment rate: proportion of the labour force that has been unemployed for 
12 months or more (%) 
Unemployment rate for persons (aged 25–64) having completed at most lower secondary 
education (ISCED levels 0-2) (%) 
Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED 
levels 5-8) (%) 

Social cohesion 
Average nominal monthly wages and salaries (national currency) 
Index of real wages and salaries (index of nominal wages and salaries divided by the 
inflation index) (2016 = 100) 
GINI coefficient 
Poverty gap 
*Early leavers from education and training: proportion of the population aged 18–24 with at 
most lower secondary education who are not in further education or training (%) 

Standard of living 
Number of passenger cars relative to population size (number per thousand population) 
Number of mobile phone subscriptions relative to population size (number per thousand 
population) 
Mobile broadband penetration (per 100 inhabitants) 
Fixed broadband penetration (per 100 inhabitants) 

Infrastructure 
Density of railway network (lines in operation per thousand km²) 

Length of motorways (kilometres) 

Education, innovation and research 
Public expenditure on education relative to GDP (%) 
*Gross domestic expenditure on R&D relative to GDP (%) 
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP 
(%) 
Percentage of households who have internet access at home (%) 

6) 

74.5 w 

76.9 w 

76.8 w 

75.6 w 

74.4 w 

31.4 
31.8 
30.8 
55.3 
25.9 

36.0 

19.5 

20.8 
21.3 
19.9 
45.4 
15.5 

23.1 

16.6 

17.3 
16.5 
18.4 
35.6 
12.4 

23.7 

13.3 

16.4 
16.7 
15.9 
35.7 
12.4 

21.4 

12.9 

15.7 w 
16.4 w 
14.6 w 
36.4 w 
12.5 w 

22.8 w 

11.3 w 

: 

: 
: 
: 
: 
: 

: 

: 

Note 

2011 
20 847 w 
98 w 

2018 
24 276 w 
106 w 

2019 
25 213 w 
109 w 

2020 
27 182 w 
116 w 

2021 
28 718 w 
119 w 

2022 
31 859 w 
115 w 

Note 

7) 

7) 
7) 

Note 

Note 

: 
: 
13.5 

2011 
152.0 
1 104.9 ew 

: 
: 

2011 
27.5 iw 

259 

2011 
: 
0.22 iw 
: 

: 

: 
37.7 
7.1 

2018 
200.0 
935.9 w 

60.9 w 
19 w 

2018 
26.9 i 

287 

2018 
: 
0.36 
: 

79.3 

: 
32.0 
7.1 

2019 
205.0 
924.8 w 

65.1 w 
22 w 

2019 
26.9 i 

335 

2019 
: 
0.37 
: 

81.6 

: 
34.9 
5.7 

2020 
207.0 
896.8 w 

66.1 w 
23 w 

2020 
26.9 i 

335 

2020 
: 
0.37 
: 

79.4 

: 
: 
4.6 w 

2021 
260.0 b 
902.7 w 

67.6 w 
23 w 

2021 
26.9 i 

335 

2021 
: 
: 
: 

83.7 

: 
: 
: 

2022 
264.0 
: 

: 
: 

2022 
26.9 i 

335 

2022 
: 
0.38 
: 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Environment 
*Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 
Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant 
prices) 
Electricity generated from renewable sources relative to gross electricity consumption (%) 
Road share of inland freight transport (based on tonne-km) (%) 

Energy 
Primary production of all energy products (thousand TOE) 
Primary production of crude oil (thousand TOE) 
Primary production of solid fuels (thousand TOE) 
Primary production of gas (thousand TOE) 
Net imports of all energy products (thousand TOE) 
Gross inland energy consumption (thousand TOE) 
Gross electricity generation (GWh) 

Agriculture 
Agricultural production volume index of goods and services (at producer prices) (2015 = 100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand heads, end of period) 
Livestock numbers: live swine (thousand heads, end of period) 
Livestock numbers: live sheep and live goats (thousand heads, end of period) 
Raw milk available on farms (thousand tonnes) 
Harvested crop production: cereals (including rice) (thousand tonnes) 
Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

Source: Eurostat and/or the statistical authorities in North Macedonia 

Note 
8) 

2011 
117.1 w 
379.5 

Note 

Note 

14.8 
91.8 w 

2011 
1 756 
0 
1 410 
0 
1 424 i 
3 122 
6 759 

2011 
93.5 w 
1 120.2 
: 
: 
: 
: 
561.2 
0.0 
710.1 

2018 
79.5 w 
267.1 

24.8 
97.2 w 

2018 
1 148 
0 
800 
0 
1 513 i 
2 592 
5 607 

2018 
105.1 w 
1 264.1 
256.0 
196.0 
844.0 i 
478.5 
605.3 
0.0 
792.9 

2019 
118.7 w 
283.8 

23.8 
96.7 w 

2019 
1 160 
0 
860 
0 
1 664 i 
2 862 
5 870 

2019 
99.0 w 
1 264.6 
219.0 
136.0 
771.0 i 
456.1 
569.6 
0.0 
772.7 

2020 
: 
270.3 

23.5 
96.9 w 

2020 
992 
0 
685 
0 
1 649 i 
2 597 
5 347 

2020 
102.2 w 
1 270.5 
222.0 
164.0 
726.0 i 
461.1 
585.5 
0.0 
794.2 

2021 
: 
266.5 

21.8 
96.8 w 

2021 
886 
0 
552 
0 
1 823 i 
2 677 
5 532 

2021 
92.2 w 
1 268.8 
178.0 
186.0 
709.0 i 
389.2 
568.9 
0.0 
798.0 p 

2022 
: 
267.0 

24.5 
98.1 w 

2022 
1 041 
0 
711 
0 
1 728 i 
2 741 
5 933 

2022 
: 
1 265.1 
165.0 
182.0 
726.0 i 
388.0 
548.4 
0.0 
803.1 

: = not available 
b = break in series 
d =  definition differs 
e = estimated value 
p = provisional 
i = Eurostat estimate 

w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and 
without any assurance as regards their quality and adherence to EU statistical methodology 
* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Footnotes: 

1)  Data is harmonised with the surface area in the Register of territorial units that is maintained by Agency for Real Estate 

Cadastre, as the official source of the surface areas of the territorial units in the country. 

2)  Data cover bilateral over-night transactions. The interest rates are calculated as weighted averages. 
3)  End of year (31 December). 
4)  Laspeyres unit value index. 2015 = 100. 
5)  The public sector includes data for ‘Other’ (mixed, collective, state, undefined). 
6)  The new IESS regulation has not been implemented 
7)  Source: Agency for electronic communications (AEC). 
8)  Part of the greenhouse gas inventory prepared in the context of the Fourth National Communication (UNFCCC). 

 
 
 
 
 
 
91