COMMISSION STAFF WORKING DOCUMENT North Macedonia 2025 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 2025 Communication on EU enlargement policy
Date: 2025-11-04
Institutions: Directorate-General for Enlargement and Eastern Neighbourhood, European Commission
Subjects: North Macedonia, accession criteria, accession negotiations, pre-accession strategy, regional cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 4.11.2025  SWD(2025) 753 final  COMMISSION STAFF WORKING DOCUMENT North Macedonia 2025 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 2025 Communication on EU enlargement policy                               {COM(2025) 690 final} - {SWD(2025) 750 final} - {SWD(2025) 751 final} - {SWD(2025) 752 final} - {SWD(2025) 754 final} - {SWD(2025) 755 final} - {SWD(2025) 756 final} - {SWD(2025) 757 final} - {SWD(2025) 758 final} - {SWD(2025) 759 final}  
 
 
CONTENTS 
1. 

Introduction .......................................................................................................................................... 3 

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

1.2. Main findings of the report ................................................................................................................ 3 

1.3. State of play of the accession process ............................................................................................. 20 

2.  Cluster 1: The Fundamentals of the accession process ...................................................................... 20 

2.1. Functioning of democratic institutions and public administration reform ..................................... 20 

2.1.1 Democracy ........................................................................................................................... 20 

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

2.2. Rule of law and fundamental rights ................................................................................................. 26 

2.2.1 

2.2.2 

Chapter 23: Judiciary and fundamental rights .............................................................. 26 

Chapter 24: Justice, freedom and security ................................................................... 44 

2.3. Economic criteria ............................................................................................................................. 53 

2.3.1. The existence of a functioning market economy ................................................................ 54 

2.3.2. The capacity to cope with competitive pressure and market forces within the Union ..... 58 

2.4. Public procurement, statistics, financial control ............................................................................. 61 

Chapter 5: Public procurement ..................................................................................................... 61 

Chapter 18: Statistics .................................................................................................................... 62 

Chapter 32: Financial control ........................................................................................................ 62 

3. Good neighbourly relations and regional cooperation ........................................................................... 63 

4. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP ..................................................................... 65 

Cluster 2: Internal market ....................................................................................................................... 65 

Chapter 1: Free movement of goods ............................................................................................ 66 

Chapter 2: Freedom of movement for workers ............................................................................ 66 

Chapter 3: Right of establishment and freedom to provide services ........................................... 67 

Chapter 4: Free movement of capital ........................................................................................... 68 

Chapter 6: Company law ............................................................................................................... 69 

Chapter 7: Intellectual property law ............................................................................................. 69 

Chapter 8: Competition policy ...................................................................................................... 70 

Chapter 9: Financial services ......................................................................................................... 70 

Chapter 28: Consumer and health protection .............................................................................. 71 

Cluster 3: Competitiveness and inclusive growth ................................................................................... 72 

Chapter 10: Digital transformation and media ............................................................................. 72 

Chapter 16: Taxation ..................................................................................................................... 74 

Chapter 17: Economic and monetary policy ................................................................................. 74 

Chapter 19: Social policy and employment .................................................................................. 75 

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Chapter 20: Enterprise and industrial policy ................................................................................ 77 

Chapter 25: Science and research ................................................................................................. 79 

Chapter 26: Education and culture ............................................................................................... 79 

Chapter 29: Customs union .......................................................................................................... 81 

Cluster 4: The Green Agenda and sustainable connectivity ................................................................... 82 

Chapter 14: Transport policy ........................................................................................................ 82 

Chapter 15: Energy ........................................................................................................................ 84 

Chapter 21: Trans-European networks ......................................................................................... 85 

Chapter 27: Environment and climate change ............................................................................. 85 

Cluster 5: Resources, agriculture and cohesion ...................................................................................... 88 

Chapter 11: Agriculture and rural development ........................................................................... 88 

Chapter 12: Food safety, veterinary and phytosanitary policy ..................................................... 89 

Chapter 13: Fisheries and aquaculture ......................................................................................... 90 

Chapter 22: Regional policy and coordination of structural instruments .................................... 91 

Chapter 33: Financial and budgetary provisions .......................................................................... 93 

Cluster 6: External relations .................................................................................................................... 94 

Chapter 30: External relations ...................................................................................................... 94 

Chapter 31: Foreign, security and defence policy ........................................................................ 94 

Annex I – Relations between the EU and North Macedonia .................................................................. 97 

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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.  All 
screening  reports  on  the  six  clusters  were  presented  to  the  Council.  North  Macedonia 
continued to implement the Stabilisation and Association Agreement and several joint bodies 
under the agreement met. 

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  with  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 to be a reliable partner. 

North Macedonia has actively engaged with the new Growth Plan for the Western Balkans 
and has started to deliver on implementation of the plan’s four pillars of gradual integration 
with  the  EU  single  market,  regional  economic  integration,  fundamental  reforms  and 
increased financial support. Under the Reform and Growth Facility, a performance-based EU 
instrument  supporting  the  EU  accession  process,  the  country  adopted  its  Reform  Agenda, 
which covers reforms in the areas of: (i) governance, public administration reform and public 
financial  management;  (ii)  the  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 2025 rule of law report covered North Macedonia for the second time2. 

1.2. MAIN FINDINGS OF THE REPORT 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

Democracy 

The election legislation provides a suitable framework for holding democratic elections. The 
Electoral  Code  was  amended  in  March  2024.  The  review  was  very  limited  and  not 
transparent. No progress was made on addressing the outstanding recommendations of the 
Organisation  for  Security  and  Cooperation  in  Europe  (OSCE)/Office  for  Democratic 
Institutions and Human Rights (ODIHR) and the Venice Commission. 

Parliament was found to exercise its powers in an overall effective way. However, political 
polarisation in Parliament persisted, delaying the adoption of important reforms and several 
the 
long-overdue  appointments.  Parliament  maintained  a  broad  consensus  on 

1This report covers the period from 1 September 2024 to 1 September 2025. 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  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. 

2 COM(2025) 900 final. 

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implementation of the new rules of procedure. These rules have so far had a positive effect 
on  Parliament’s  operational  efficiency;  however,  their  long-term  impact  is  yet  to  be 
determined. Parliament should accelerate necessary reforms for the EU integration process. 
In  addition,  Parliament  should  plan  and  adopt  its  agenda  diligently  and  limit  the  use  of 
shortened  legislative  procedures.  Cross-party  collaboration  remains  essential  to  accelerate 
the  implementation  of  EU-related  reforms,  which  is  in  the  interest  of  citizens.  No  attempts 
were  made  to  adopt  the  relevant  constitutional  changes  referred  to  in  the  Council 
Conclusions  of  18 July  2022,  which  the  country  committed  to  launch  and  achieve,  with  a 
view to ensuring that the Constitution covers citizens who live within the borders of the State 
and  who  are  part  of  other  peoples,  such  as  Bulgarians.  Permanent  and  decisive steps  are 
needed  to  accelerate  the  implementation  of  all  EU-related  reforms  beyond  those  of  the 
Reform Agenda and to move forward in the EU accession negotiation process. Cross-party 
collaboration is vital in this regard. 

Despite  some  progress,  a  comprehensive  reform  of  local  self-government  is  still  urgently 
needed, and the dialogue between different levels of government should be strengthened. 
Inter-ethnic relations remained stable, and the Ohrid Framework Agreement continued to be 
implemented. 

The  institutions  in  charge  of  the  EU  integration  process  are  in  place.  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. 

Civil  society  organisations  (CSOs)  in  North  Macedonia  generally  operate  in  an  overall 
enabling  environment.  The  government  adopted  a  decision  for  appointing  members  of  the 
Council for Cooperation between Government and Civil Society. This development brought 
the  Council’s  long-awaited  reactivation,  in  line  with  the  Commission’s  recommendations. 
Looking  ahead,  the  Council  now  needs  to  effectively  fulfil  its  role.  The  government  should 
increase  its  efforts  to  ensure  that  civil  society  is  involved  in  all  priority  areas  and  in 
consultation  activities.  The  necessary  amendments  to  the  current  legal  and  financial 
frameworks for ensuring transparent public funding to CSOs have not yet been adopted. 

Public administration reform 

North Macedonia remains moderately prepared in the area of public administration reform.  
Some progress was made in the e-government area, with the amendments to the Law on 
electronic  documents,  electronic  identification  and  trusted  services  transposing  eIDAS  2.0 
Regulation  and  introducing  the  Digital  Identity  Wallet.  Efforts  were  made  towards 
digitalisation of institutional registers, simplification of electronic procedures and increase of 
data  exchange.  The  long-awaited  laws  on  administrative  servants  and  on  public  sector 
employees  were  adopted  in  July  2025.  The  two  laws  improve  selection  procedures, 
temporary  employment,  working  conditions,  and  data  collection  in  the  human  resources 
management area. However, rules governing civil servants remain fragmented. The country 
pursued the reorganisation of several state institutions in line with the amended Law on state 
organisation. 

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

→  adopt  legal  provisions  governing  top  management  service  and  start  implementing  the 
revised  Law  on  administrative  servants  and  the  revised  Law  on  public  service 
employees; 

→  finalise  the  revision  of,  and  continue  implementing,  the  Law  on  state  organisation  and 
other  related  laws,  in  line  with  the  recommendations  on  the  new  organisation  of  state 
administrative bodies; 

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→  ensure  full  implementation  of  the  Law  on  general  administrative  procedures  by 
completing the digitalisation of institutional 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  no 
progress.  

Functioning of the judiciary 

The judicial system of North Macedonia is between having some and a moderate level of 
preparation  and  made  no  progress.  The  country  started  implementing  the  Strategy  for 
Judicial Reform (2024-2028) and continued to implement the recommendations of the 2023 
peer  review  mission  on  the  Judicial  Council.  The  overall  independence  and  financial 
autonomy  of  the  judiciary  is  undermined  by  the  interference  and  pressure  from  other  state 
branches, including attempts by Parliament to pressure members of the Judicial Council to 
resign,  and the  limited financial  resources  allocated.  The staffing  shortages in the  judiciary 
are a concern as it affects the quality and efficiency of the justice system. 

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

→  adopt  a  new  Law  on  civil  procedure,  in  line  with  European  standards,  and  accelerate 

implementation of the Strategy for Judicial Reform; 

→  strengthen the Judicial Council by adopting a revised legislative framework and continue 
increasing its transparency and independence, in line with the recommendations of the 
2023  peer  review  mission  and  the  opinion  of  the  Venice  Commission,  and  step  up 
implementation  of  the  human  resources  strategies  for  the  judiciary  and  the  public 
prosecution service; 

→  ensure  that  the  Automated  Court  Case  Management  Information  System  (ACCMIS)  is 
fully  functional  and  compatible  with  the  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  and  a  moderate  level  of  preparation  and 
made  no  progress  on  the  prevention  and  fight  against  corruption.  Corruption  remains 
prevalent in many areas and is an issue of serious concern. The tragedy of 16 March 2025 
in  Kochani,  during  which  a fire  tore through  a  club  killing  62  and  injuring  over  190  people, 
revealed  enduring  systemic  challenges  over  the  enforcement  of  anti-corruption  measures. 
The  preventive measures  and the  effective  repression  of  corruption  needs  to  be  improved. 
The  indictment  imposed  on  the  President  of  the  State  Commission  for  the  Prevention  of 
Corruption (SCPC), which led to her resignation, have brought the institution’s credibility into 
question.  The  SCPC  needs  to  proactively  provide  policy  guidance  to  prevent  corruption, 
detect and report alleged instances of corruption and increase its efficiency in verifying asset 
declarations  and oversight  of  election  campaign financing. In  parallel,  its recommendations 
need to be followed up effectively.  

The  Public  Prosecutor’s  Office,  the  investigative  centres  and  the  law  enforcement  units 
should  recruit  specialised  staff  and  receive  financial  support.  High-level  corruption  cases 
frequently experience delays, reach the statute of limitations, or result in minimal sentences, 
which strengthens  public  scepticism  about the  effectiveness  of the fight against  corruption. 
Targeted risk assessments and specific measures are also needed to address corruption in 
the most vulnerable sectors. 

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The  Commission’s  recommendations  from  last  year  were  not  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  implementation  of  the  national  strategy  for  the  prevention  of  corruption  and 
conflict  of  interest,  address  pending  the  Council  of  Europe  Group  of  States  against 
Corruption  (GRECO)  recommendations,  and  draft  the  new  anti-corruption  strategy  for 
2026-2030; 

→  allocate sufficient human and financial resources, including financial experts, to: (i) the 
Public Prosecutor’s Office and the Basic Public Prosecutor’s Office for the Prosecution 
of  Organised  Crime  and  Corruption  to  ensure  effective  accountability  in  high-level 
corruption  cases;  and  (ii)  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  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.  A  new  Ombudsman 
and  eight  new  deputy  ombudspersons,  for  the  regional  and  Skopje  offices  of  the 
Ombudsman,  are  still  to  be  elected.  No  progress  has  been  made  on  the  protection  of 
personal  data.  The  overall  situation,  in  particular  living  conditions,  in  prisons  remains 
appalling,  although  infrastructure  was  partially  renovated  and  improved  in  several  prison 
facilities. 

The Commission’s recommendations from last year were addressed to a limited extent 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); 

→  ensure  that  the  Ombudsman’s  Office  and  the  Commission  for  the  Prevention  and 
Protection  against  Discrimination  receive  sufficient  financial  and  human  resources 
enabling them to function independently and effectively; 

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

violence, Roma3 children and children with disabilities. 

Freedom of expression 

North  Macedonia  is  between  having  some  and  a  moderate  level  of  preparation  on 
freedom  of  expression  and  has  made  limited  progress  in  this  area.  The  legal  framework 
governing the media is still not fully aligned with EU acquis, particularly the European Media 
Freedom  Act  (EMFA),  although  some  progress  was  achieved  on  the  Law  on  media.  The 
financial  independence  of  the  Agency  for  Audio  and  Audiovisual  Media  Services  has 
improved,  and  the  new  members  of  its  Council  were  elected  by  Parliament.  The  public 
service  broadcaster  faces  challenges,  despite  improvements  in  its  funding  and  the 

3 In 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 

 
 
 
appointment by the Parliament of its Council. Challenges remain concerning transparency of 
media  ownership.  The  framework  for  allocation  of  state  advertising  raises  concerns  about 
the potential misuse of political funds and the disruption of the market. 

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, particularly by introducing rules on full transparency in media 
ownership and allocation of public funds for state advertising, competition and State aid, 
and intellectual property rights; 

→  implement the strategy to reform the Public Broadcaster; 

→  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 in the field of justice, 
freedom and security and has made limited progress in this area. North Macedonia should 
increase  its  capacities  to  fight  all  forms  of  serious  and  organised  crime.  On  migration  and 
asylum, there was no further alignment with the EU acquis.  

The  Commission’s  recommendations  from  last  year  were  not  met  and  remain  valid.  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)  and  countering  violent  extremism  (2023-2027),  and  of  the  joint 
action plan on counterterrorism; 

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

systematic approach to fighting migrant smuggling. 

Fight against serious and organised crime 

North Macedonia is in between having some and a moderate level of preparation in the 
fight  against  serious  and  organised  crime  and  has  made  limited  progress  in  this  area. 
Further progress on alignment with the EU acquis is still expected. 

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

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

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

→  align  its  legislation  on  weapons,  narcotic  drugs  and  psychotropic  substances  with  the 

EU acquis. 

ECONOMIC CRITERIA 

The existence of a functioning market economy 

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North  Macedonia  has  made  limited  progress  and  is  at  a  good  level  of  preparation  in 
developing a functioning market economy. Real GDP growth accelerated in 2024, driven by 
private consumption and public investment. The external position deteriorated and inflation, 
after  falling  substantially,  has  surged  again  since  September  2024.  The  2024  fiscal  deficit 
exceeded  the  initial  plan  as  a  result  of  rising  public  sector  wages  and  pensions,  delaying 
fiscal  consolidation  and  adherence  to  the  fiscal  rules.  The  execution  of  planned  capital 
expenditure  continues  to  suffer  from  weak  public  investment  management.  Efforts  to 
formalise  the  informal  economy  have  stalled.  The  central  bank  started  to  cautiously  ease 
monetary policy and the macroprudential framework was strengthened. The banking sector 
remained resilient amidst a solid rise in credit growth. The labour market situation improved, 
but structural problems persist, including low participation rates, substantial emigration and a 
large gender gap. 

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  remaining  implementing  legislation  for  the  organic  budget  law  and  ensure 
compliance  with  the  fiscal  rules,  including  by  adopting  further  revenue-enhancing 
measures and controlling current spending; 

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

adopt the Law on public-private partnership; 

→  adopt and implement a revised action plan 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. A new Law on vocational education 
and  training  includes  some  measures  to  address  significant  skills  mismatches.  The 
digitalisation  of  the  economy  is  advancing,  and  new  school  curricula  provide  for  better 
teaching  of  IT  skills.  Sizeable  investment  needs  in  transport  and  energy  infrastructure 
persist. Projects to improve road and rail infrastructure and to digitalise public services have 
progressed  somewhat  but  need  to  be  strengthened  to  have  a  positive  impact  on  the 
competitiveness  of  domestic  companies.  The  share  of  energy  production  from  renewable 
sources increased further. Integration with the EU in trade and investment, as well as overall 
trade openness, remained high in 2024. 

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  vocational  education  and 

training system reforms and implement the Law on secondary education; 

→  complete key projects in transport infrastructure, such as on Road Corridors VIII and X; 

→  increase  the  use  of  renewable  energy  sources,  including  by  adopting  a  new  law  on 

renewable energy sources. 

Chapter 5: Public procurement 

North  Macedonia  is  moderately  prepared  in  the  area  of  public  procurement.  Limited 
progress was made since the last reporting period with the updated version of the electronic 
public procurement system. 

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 Law on public-private partnership and the Law on concessions, to further align 

the legal framework in these areas with the EU acquis; 

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→ 

increase  competition  and  the  use  of  most  economically  advantageous  tender  (MEAT) 
criteria  for  the  award  of  contracts,  and  improve  the  monitoring  and  controls  of  public 
procurement  procedures  through  reporting  on  and the  follow-up  of  irregularities,  cases 
of conflict of interest and fraudulent practices; 

→  strengthen  controls  in  public  procurement  and  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  on  labour  market  statistics  and  the  robust 
transmission of statistical data. 

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

→  complete preparatory work for the agricultural census to be conducted in 2026; 

→  continue  ensuring  sufficient  staffing  and  financial  resources  for  the  State  Statistical 

Office; 

→  continue to improve macroeconomic statistics, particularly by making sure that statistics 
are  transparent,  increasing  the  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.  Some  progress  has 
been made with the adoption of the Public Internal Financial Control (PIFC) law, after more 
than  four  years  of  parliamentary  procedure.  The  independence  of  the  State  Audit  Office 
(SAO)  is  still  not  guaranteed  by  the  Constitution.  The  efficiency  of  parliamentary  oversight 
and follow-up of audit recommendations need to improve. 

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

→  ensure the timely implementation of the PIFC law in order to strengthen the institutional 
financial 

internal  audit  units,  managerial  accountability  and  sound 

capacity  of 
management; 

→  adopt the State audit law to strengthen the State Audit Office’s independence. Improve 
parliamentary scrutiny over individual audit reports, and strengthen the follow-up to SAO 
recommendations; 

→  strengthen  the  institutional  capacity  of  the  financial  inspection  and  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.  No  progress 
was made in the reporting period. 

The  Commission’s  recommendations  from  last  year  were  not  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 alignment with the EU General Products Safety Directive; 

→  adopt a new strategy for the free movement of goods, which should include planning for 
a  significant  increase  in  human  resources  for  legal  and  policy  development  and  the 
implementation of the EU acquis in this chapter; 

→  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 and 
then start the implementation of this action plan. 

Chapter 2: Freedom of movement for workers 

North  Macedonia  is  at  an  early  stage  of  preparation  on  the  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 valid. In the coming year, North Macedonia should in particular: 

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

→  continue to align 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 and for electronic exchange of social security data. 

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,  notably  through  continuing  to  align 
sectoral legislation with the Services Directive. 

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

→  intensify the implementation of the 2024-2026 Action plan to address non-compliance of 
listed sectoral laws with the Law on services by adopting cross-sector amendments; 

→  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 amended Directive on recognition of professional qualifications and the Directive on 
a proportionality test before adoption of new regulation of professions. 

Chapter 4: Free movement of capital 

North Macedonia is between a moderate and a good level of preparation  in the area of 
free  movement  of  capital.  Good  progress  was  made  on  payment  services  and  the  fight 
against  money  laundering  and  terrorist  financing  (AML/CTF).  North  Macedonia  joined  the 
geographical scope of the Single Euro Payments Area (SEPA) schemes in March 2025. 

The  Commission’s  recommendations  from  last  year  were  partially  implemented.  In  the 
coming year, North Macedonia should build on this progress and in particular: 

10 

 
 
→  further  liberalise  any  remaining  restrictions  in  the  area  of  capital  movement  and 

payments; 

→  ensure full compliance of the Law on payment services and payment systems with the 

EU acquis; 

→  ensure  full  compliance  of  the  Law  on  AML/CFT,  continue  developing  implementing 
legislation complementing the national AML/CTF legal framework as well as implement 
further Financial Action Task Force (FATF/MONEYVAL) recommendations. 

Chapter 6: Company law 

The country has a good level of preparation in the field of company law. 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 the national legislation with the EU acquis on encouraging long-term shareholder 

engagement; 

→   align  its  national  legislation  with  the  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  audit  to  align  with  the  latest  EU  acquis  in  these 
areas, including by strengthening 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  over  the  reporting  period.  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  the  term  of 
protection  of  copyright  and  certain  related  rights,  the  Orphan  Works  Directive,  the 
Marrakesh  Directive  and  Regulation,  as  well  as  with  the  Directives  on  online 
transmissions of broadcasting organisations and retransmissions of television and radio 
programmes (SatCab II) and on the 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  national  intellectual  property  strategy  and  make  operational  the  online 
information  platform  for  law  enforcement  institutions  to  exchange  data  on  intellectual 
property rights. 

Chapter 8: Competition policy 

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

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 on State 
aid and antitrust, with the EU acquis; 

11 

 
 
→  ensure full transparency of State aid granted by the authorities; 

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

Chapter 9: Financial services 

The  country  remained  moderately  prepared  in  the  area  of  financial  services.  Some 
progress was made with the adoption of legislation aiming to align with the Bank Recovery 
and  Resolution  Directive  (BRRD). 
the 
implementing  legislation was  adopted  for the  Law  on  financial  instruments  and  the  Law  on 
prospectuses  and  transparency  of  security  issuers.  The  country  continued  efforts  to  align 
with the financial market infrastructures acquis. 

last  year’s  recommendations, 

line  with 

In 

As one of the Commission’s recommendations from last year was not implemented, and one 
two 
was  partially  addressed, 
recommendations below). In the coming year, North Macedonia should in particular: 

these  recommendations  remain  valid  (see 

first 

the 

→  continue  to  align  the  banking  legislation  with  the  revised  versions  of  the  Capital 
Requirements  Regulation  and  the  Capital  Requirements  Directive  (as  amended  by 
CRR3/CRD6) and with the Deposit Guarantee Schemes Directive (DGSD); 

→  align with the Solvency II Directive, particularly pillars 1 and 3; 

→  step  up  adoption  of  the  law  on  investment  funds  and  continue  efforts  to  align  with  the 

financial market infrastructures acquis. 

Chapter 28: Consumer and health protection 

North  Macedonia  remains  moderately  prepared  in  the  area  of  consumer  and  health 
protection.  Some  progress  was  made,  as  the  country  adopted  legislation  designed  to  be 
aligned  with  the  EU  acquis  on  consumer  rights,  and  on  the  marking  of  goods  offered  to 
consumers.  It  also  ratified  the  Protocol  to  Eliminate  Illicit  Trade  in  Tobacco  Products  and 
slightly increased the funding for rare diseases. 

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 properly implementing the relevant EU  acquis, and 
complete  alignment  with  the  EU  acquis  on  medicinal  products  for  human  use  and 
veterinary use); 

→  make  eHealth  data  interoperable  with  Health  Insurance  Fund  data,  and  increase 
funding,  awareness  and  human  resources in the  area of  health,  particularly  for cancer 
detection. 

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. Some 
progress  was  made  to  harmonise  the  legal  framework  with  the  EU  acquis  as  part  of  the 
Reform  Agenda  commitments,  by  adopting  a  cybersecurity  strategy  and  with  a  slight 
increase in electronic services available to citizens and businesses.  

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 aligning with the European Electronic Communications Code,  the EU Gigabit 

12 

 
 
 
Infrastructure Act (GIA) the EU Directive on security of network and information systems 
(the NIS2 Directive) and the 5G cybersecurity toolbox; 

→  increase efforts to strengthen the independence and capacity of the media regulator, the 

public service broadcaster and the regulator on electronic communication; 

→  continue  to  improve  the  112  emergency  number  service  by  ensuring  sufficient  human 

resources. 

Chapter 16: Taxation 

North Macedonia remains moderately prepared in the area of taxation. Limited progress 
was  made,  in  particular  by  adopting  a  new  Law  on  minimum  global  corporate  profit  tax, 
bringing  it  in  line  with  OECD  global  minimum  tax  (GMT)  and  Council  Directive  (EU) 
2022/2523. 

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: 

→ 

further  align  legislation  with  the  EU  acquis  on  VAT,  excise  duties  and  direct  taxation, 
and put in place a transparent and effective VAT refund process; 

→  start  preparations  to  put  in  place  a  mechanism  to  effectively  implement  the  automatic 
exchange  of  tax  information  with  EU  Member  States,  in  line  with  the  OECD  Global 
Standard; 

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

up 
interconnection and interoperability with the common EU taxation IT systems. 

the  national  authority,  and  start  preparations 

the  strategic  reform  of 

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.  Last  year’s 
recommendations  were partly  implemented  by  appointing members  of  the Fiscal  Council, 
and steps are being taken to ensure the central bank’s independence, notably by revising 
the  legal  framework  setting  out  employment  conditions  for  its  personnel.  However,  the 
central  bank’s  financial  independence  was  challenged  by  an  amendment  to  the  central 
bank law that changed the profit retention mechanism, impacting the central bank’s ability 
to build general reserves from profits.  

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  timely  implementation  of  the  reforms  envisaged  in  the  organic  budget  law, 
including  the  roll-out  of  the  Integrated  Financial  Management  Information  System 
(IFMIS),  the  revision  and  entry  into  force  of  the  new  budget  classifications  and  the 
putting into practice of the Public Investment Management Decree; 

→  strengthen  the  central  bank’s  independence  by  adopting  the  pending  laws  on 

administrative servants and the Law on public-sector employees. 

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 remains significantly high. Capacity building for social partners 
needs to continue. North Macedonia needs to continue aligning with the EU acquis on non-
discrimination and equality, including gender equality.   

13 

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

→  take steps to align national legislation with EU acquis and standards on equality and 

non-discrimination in employment, including also EU Gender Equality acquis in regard to 
the provisions of the Work-Life Balance Directive, the Pay Transparency, and the 
Women on Boards; 

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

Chapter 20: Enterprise and industrial policy 

The  country  is  between  a  moderate  and  a  good  level  of  preparation  in  the  area  of 
enterprise  and  industrial  policy.  No  progress  has  been  made  as  the  Commission’s 
recommendations  from  last  year  were  not  implemented.  Hence  in  the  coming  year,  North 
Macedonia should: 

→  implement the plan to consolidate 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 

inform 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.  Good 
progress  was  made  in  rolling  out  measures from  the  Action  Plan  2024-2025  of  the  Smart 
Specialisation  Strategy  2024-2027.  North  Macedonia  also  achieved  good  uptake  for  the 
Horizon  Europe  and  European  Cooperation 
in  Science  and  Technology  (COST) 
programmes,  set  up  the  European  Digital  Innovation  Hub,  and  increased  state  funding  for 
science. 

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

→  increase investment for science and research in line with the new European Research 

Area priorities; 

→  continue to promote and increase participation in Horizon Europe; 

→  provide support to companies via the European Digital Innovation Hub EDIH. 

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  Law  on  adult  education  and  the  Law  on 
vocational education and training (VET) were adopted, while the adoption of a new Law on 

14 

 
 
secondary education was delayed and replaced by a number of amendments to the existing 
Law. 

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

→  adopt a new Law on secondary education, develop implementing legislation on the Law 
on adult education and on VET, and continue to set up regional VET centres and ensure 
they are operational; 

→  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. 

Chapter 29: Customs union 

North Macedonia has a good level of preparation in this area. Good progress was made 
in  the  reporting  period,  in  particular  through  the  consolidation  and  upgrade  of  IT  systems. 
The  New  Computerised Transit  System (NCTS) Phase 5 development  was completed  and 
launched  in  January  2025.  The  Customs  Administration  implements  a  fully  paperless 
environment  for  processing  customs  declarations  and  excise  documents.  The  Protocol  on 
Elimination  of  Illicit  Trade  in  Tobacco  Products  was  ratified  in  December  2024.  The 
Commission’s  recommendations from  last  year  were  implemented  to  a  large  extent.  In  the 
coming year, North Macedonia should focus on: 

→  continuing  to  consolidate  and  apply  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;  

→  ensure continued alignment of the customs legislation with the EU acquis and upgrade 
its national component of the New Computerised Transit System (NCTS) to Phase 6; 

→  strengthen  combating  customs fraud,  in  particular  smuggling  of tobacco  products,  also 

by cooperating with the European Anti-Fraud Office (OLAF). 

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, 
notably  on  multimodal  transport,  with  the  preparatory  work  for  the  Trubarevo  multimodal 
node  advancing  well.  Key  technical  studies  and  preliminary  design  with  tendering 
documentation  are  in  the  final  stages  of  completion.  The  sector  inspection  bodies  still  lack 
administrative and operational capacity. The Commission’s recommendations from last year 
were  partially  implemented  and  therefore  remain  largely  valid.  In  the  coming  year,  North 
Macedonia should in particular: 

→  ensure that inspection bodies have qualified operational and administrative capacity and 
develop  their  enforcement  capacity  to  reduce  crashes  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. 

15 

 
 
Chapter 15: Energy 

North  Macedonia  is  moderately  prepared  in  the  area  of  energy.  Some  progress  was 
made,  notably  through  the  adoption  of  the  Just  Transition  annual  implementation  plan  for 
2025  and  the  new  energy  law.  The  legislation  on  renewable  energy  and  energy  efficiency 
still  needs  to  be  aligned  with  the  latest  EU  acquis.  The  country  needs  to  accelerate  its 
transition towards green energy and reduce its dependence on coal. 

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

→  ensure sufficient human resources and institutional capacities for the Ministry of Energy, 

Mining and Mineral Resources; 

→  finalise  adoption  and  start  implementing  the  legislation  on  the  electricity  integration 
package, on renewable energy and energy efficiency, in line with the obligations under 
the Energy Community Treaty; 

→  implement the National Energy Action Plan, the National Energy and Climate Plan, the 
Just  Transition  Roadmap,  and  improve  reporting  on  implementation  by  setting  up  an 
adequate data collection system. 

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,  by  the  opening  of  the  Gradkso-
Drenovo  highway  and  the  Stracin-Kriva  Palanka  Road.  Cooperation  between  North 
Macedonia  and  Bulgaria  on  the  construction  of  the  rail  connection  along  Corridor  VIII  has 
improved.  

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,  by  adopting  the  law  on  industrial  emissions  and  amending  the 
law on environment to ratify the amendments of the Espoo Convention. Implementation and 
enforcement are lagging behind in all sectors. 

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

→  strengthen  administrative  and  inspection  capacities  to  implement  and  enforce  the 
environmental acquis, and implement structural reforms in all sectors, with special focus 
on civil protection operational capacity and coordination with the Union Civil Protection 
Mechanism; 

16 

 
 
→  ensure  the  functioning  of  the  regional  waste  management  structures  and  enable 
implementation of infrastructure investments to establish a regional waste management 
system in the Northeastern and Eastern regions; 

→  adopt  the  Law  on  climate  change,  implement  the  National  Energy  and  Climate  Plan 
(NECP),  align  with  and 
the  Monitoring,  Reporting,  Verification  and 
Accreditation  (MRVA)  acquis  and  make  the  climate  change  unit  within  the  Ministry  of 
Environment and Physical Planning operational. 

implement 

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.  Some  progress  was  made  during  the  reporting  period,  notably  on  the 
Instrument for Pre-accession Assistance for Rural Development (IPARD) II and IPARD III. 

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: 

→  prioritise  finalising  the  new  Law  on  agriculture  and  rural  development  to  strengthen  its 
policy framework in the areas of agriculture support and common market organisation; 

→  ensure  the  interoperability  of  various  elements  from  the  Integrated  Administration  and 
Control System (IACS), verify data accuracy and transfer the farm register and the Land 
Parcel Identification System (LPIS) to the Paying Agency; 

→  improve  the  human  resources  policy  and  the  administrative  capacity  in  the  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 area of food safety, 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 the results of phytosanitary monitoring programmes. 

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; prepare a national plan 
to  upgrade  establishments  producing  food,  feed  and  animal  by-products  to  meet  EU 
structural standards; 

→  strengthen  capacity  for  data  analysis  and 

improve  structures  ensuring  correct 
implementation  of  the  General  Food  Law  Regulation,  particularly  with  regards  to  the 
distinction  between  risk  assessment  and  risk  management  within  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.  Some 
progress  was  made  during  the  reporting  period  on  strengthening  checks  on  illegal  fishing 
and administrative structure for policy management. 

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

17 

 
 
 
→  adopt  the  implementing  legislation  on  marketing  standards,  consumer  information, 
traceability  and  producer  organisations,  as  well  as  a  national  strategic  plan  on 
aquaculture; 

→  improve  the  data  collection  system  and  reporting,  by  setting  up  a  data  framework  to 
collect data on fisheries and aquaculture, including information on catches of European 
eel  both  in  recreational  and  in  commercial  fishing  and  providing  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 during the reporting period, notably by 
improving policy dialogue. 

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

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

→  strengthen  public  investment  by  adopting  the  Law  on  public-private  partnerships  and 
ensure  the  fast  operationalisation  of  the  reforms  envisaged  in  the  Decree  on  public 
investment management; 

→  accelerate  the  decentralisation  process  by  putting  in  place  a  credible  financing 
framework  for  municipalities  and  by  strengthening  policy  dialogue  on  regional 
development; this includes adopting a new plan to implement the Regional Development 
Strategy for the period 2025-2027. 

Chapter 33: Financial and budgetary provisions 

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. 

CLUSTER 6: EXTERNAL RELATIONS 

Chapter 30: External relations 

The  country  has  a  good  level  of  preparation  in  the  area  of  external  relations  and  made 
some  progress  during  the  reporting  period,  in  particular  in  implementing  the  Central 
European  Free  Trade  Agreement  (CEFTA)  protocols  and  in  efforts  to  develop  its  export 

18 

 
 
 
control system. 

The  Commission’s  recommendations  from  last  year  were  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 

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

→  continue  to  implement  commitments  under  the  new  Common  Regional  Market  (CRM) 
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: 

→  align  future  national  legislation  on  foreign  investments  with  the  EU  FDI  Screening 

Regulation. 

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.  In  November  2024,  the  country  signed  a  Security  and  Defence 
Partnership with the EU. 

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

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

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

→  align  its  national  small  arms  and  light  weapons  (SALW)  strategy  with  the  revised 

Roadmap for the control of SALW in the Western Balkans (2025-2030). 

1.3. STATE OF PLAY OF THE ACCESSION PROCESS 

Following  the  first  Intergovernmental  Conference  on  accession  negotiations  with  North 
Macedonia  of  19  July  2022,  the  Commission  immediately  launched  the  analytical 
examination  of  the  EU  acquis  –  the  ‘screening’  process.  The  meetings  were  completed  in 
December 2023 and all screening reports on the six clusters were presented to the Council. 
The  Council  outlined  to  North  Macedonia  the  terms  for  opening  accession  negotiations  on 
the  first  cluster  (fundamentals)  once  the  constitutional  amendments  are  adopted.  In 
response, in December 2023, the authorities of North Macedonia adopted the roadmaps on 
the  rule  of  law  and  public  administration  reform.  The  authorities  continued  to  work  on  the 
roadmaps on the rule of law, public administration reform and the functioning of democratic 
institutions,  and  the  action  plan  on  the  protection  of  minorities.  It  is  important  for  North 
Macedonia  to  advance  and  finalise  all  the  preparatory  work  related  to  the  opening 
benchmarks for the fundamentals cluster.  

* * * 

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 generally stable.  

19 

 
 
 
 
Elections 

The  first round  of  local elections,  held on  19 October  2025,  was competitive.  Fundamental 
freedoms  were  largely  respected,  although these elections took  place  in  a highly  polarised 
political  environment  and  with  some  procedural  shortcomings.  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. 
Persistent inconsistencies, gaps and ambiguities compromise legal certainty. 

No  progress  was  made 
on 
key 
addressing 
outstanding 
recommendations  by  the 
ODIHR  and  the  Council 
Venice 
of 
Commission. 
Such 
recommendations 
the 
include:  (i) revising 
Electoral  Code  through 
inclusive  consultations; 
(ii) adopting measures to 
transparency 
increase 
on  party  and  campaign 
(iii) revising 
financing; 
the 
the 
rules 
paid 
apportioning 
political advertisement; and (iv) eliminating restrictions that impede effective electoral dispute 
resolution. 

Europe’s 

on 
of 

The  State  Election  Commission  (SEC)  appointed  its  Secretary  General  in  February  2025 
following a vacancy of over three years. 

Electoral  disinformation,  foreign  information  manipulation  and  interference  threats  remain 
challenges  that  should  be  further  effectively  addressed.  The  largely  unregulated  nature  of 
online  campaigning  and  the  lack  of  oversight  of  political  advertising  on  social  media 
platforms are contributing factors to electoral disinformation.  

Meaningful  political  empowerment  of  women  remains  limited  in  practice,  with  parties  often 
placing  women  in  non-competitive  positions  or  failing  to  support  their  candidacies  beyond 
formal  legal  compliance.  There  is  also  a  significant  underrepresentation  of  women  among 
mayoral  candidates.  Additional  steps  should  be  taken to  enhance  women’s  participation  in 
the  electoral  process  and  political  decision-making,  and  quotas  in  the  legal  framework 
should be strengthened. 

Parliament 

Implementation  of  the  new  rules  of  procedure  of  Parliament  faced  several  challenges, 
which  were  nonetheless  overcome.  Parliament  needs  to  adopt  its  annual  agenda  and 
finalise the revision of the Code of Ethics for members of parliament. Four  more inter-party 
groups  were  established  on  anti-corruption,  the  environment,  the  rights  of  persons  with 
disabilities,  and  on  implementation  of  the  obligations  deriving  from  the  Berlin  Process  and 
the Reform Agenda under the Growth Plan. 

There  were  no  meetings  of  the  Committees  on  Inter-Ethnic  Relations  and  on  Monitoring 
Equitable Representation of Citizens belonging to all Communities.  

No  attempts  were  made  to  adopt  the  relevant  constitutional  changes  referred  to  in  the 
Council Conclusions of 18 July 2022. The country had committed to launching and achieving 

20 

 
 
these changes, with a view to including in the Constitution citizens who live within the state 
borders and who are part of other peoples, such as Bulgarians. 

No  consensus  was  reached  on  the  adoption  of  important  laws  such  as  on  improving  the 
status of the Ombudsman’s Office. The ethnic Albanian opposition occasionally contributed 
to ensuring two-thirds majority votes and had a selective approach to ensuring a ‘Badinter’ 
(double majority) vote for a few legislative proposals and some pending appointments. The 
Committee on Issues of Elections and Appointments improved its transparency by publishing 
some of its materials. Appointments need to be based on clear procedures and merit. 

In line with the new rules of procedure, Parliamentary oversight was ensured, with monthly 
sessions for parliamentary questions and two-hour slots for questions from opposition MPs 
at  the  beginning  of  ordinary  sessions.  The  opposition  submitted  five  no-confidence 
(interpellation) motions against members of the government, none of which were successful. 
The  chair  of  the  Parliamentary  Committee  on  Social  Policy,  Demography  and  Youth,  from 
the  opposition  DUI-led  European Front4,  resigned  after  an  interpellation motion  against  her 
was  approved,  with  a  vote  split  along  ethnic  lines.  Parliament  held  12  public  hearings  or 
debates.  Parliament  elected  two  members  of  the  Council  of  Public  Prosecutors  and  of  the 
Anti-discrimination Commission.  

The law-making process saw an increase in the use of shortened procedures, particularly 
for  draft  laws  proposed by  MPs  to  harmonise  legislation  with  changes  to  the  Law  on  state 
organisation.  The  ‘EU  flag’  procedure  was  consistently  applied  for  laws  aimed  at  aligning 
national law with the EU acquis. The use of shortened procedures should be limited and not 
abused. Parliament voted again in favour of the amendments to the Law on child protection 
after the President of the Republic used her suspensive veto in December 2024. 

Governance 

The government coalition remained overall stable. Some progress was made on the reform 
of  local  self-government.  The  government  relaunched  sector  policy  dialogue  between 
different  governance  levels  by  holding  the  Sectoral  Working  Group for  Regional  and  Local 
Development, where the newly adopted action plan 2024-2026 was presented as a roadmap 
for  implementing reforms.  Amendments to the  Law  on  balanced  regional  development  and 
the  Law  on  local  self-government,  aiming  at  improving  the  regulatory  and  financial 
framework  in  line  with  the  2021-2026  programme  for  sustainable  local  development  and 
decentralisation, are still to be adopted by Parliament. 

While tensions have increased ahead of elections, with several violent interethnic incidents 
involving sports groups, the inter-ethnic situation remained stable overall. The 2001 Ohrid 
Framework  Agreement, which fosters  the multi-ethnic  character  of  society, continued to  be 
implemented. 

EU integration 

The  Ministry  of  European  Affairs,  which  coordinates  the  EU  integration  process,  lacks 
resources.  A  cross-cutting  EU  integration  structure  is  in  place.  The  EU  Directorate  in  the 
Ministry of Foreign Affairs assists in coordinating relations with EU institutions. In Parliament, 
in  addition  to  the  National  Council  for  EU  Integration  and  the  Committee  on  European 
Affairs,  April  saw  the  establishment  of  an  inter-party  group  tasked  with  monitoring 
implementation  of  obligations  under  the  Berlin  Process  and  the  Growth  Plan/Reform 
Agenda.  The  respective powers  of these three  bodies should  be  better  defined.  Several  of 
the Stabilisation and Association Agreement bodies have met. 

No  monitoring  reports  were  produced  on  the  implementation  of  the  latest  (June  2021) 
national  plan  for  the  adoption of  the  EU  acquis (NPAA).  The  NPAA  should be  fully  aligned 

4 Democratic Union for Integration. 

21 

 
 
 
with the government’s annual and institutional work plans. The Minister for European Affairs 
regularly  presented  the  state  of  play  of  implementation  of  the  priorities  under  the  Growth 
Plan/Reform Agenda to the relevant parliamentary bodies. 

Civil society 

While  CSOs  generally  continue  to  operate  in  an  overall  enabling  environment,  the  civil 
society  space  has  narrowed.  The  Council  for  Cooperation  between  the  Government  and 
Civil  Society  was  reactivated  after  the  government  adopted  a  decision  on  appointing  its 
members  in  March.  The  action  plan  for  the  implementation  of  the  2025-2028  Government 
strategy  for  cooperation  with  civil  society  was  adopted  in  July  2025.  A  key  priority  for  the 
Council is to ensure transparency in state funding for CSOs and a clear institutional set-up 
for  cooperation  with  civil  society.  Timely  implementation  of  the  Strategy’s  key  measures  is 
crucial,  in  particular,  reforms  of  legislation  on  associations  and  foundations,  social 
entrepreneurship, donations and sponsorships, standardisation of state funding, establishing 
a  guarantee  fund  for  co-financing  EU  projects  and  creating  a  model  for  structural 
involvement  of  civil  society  in  the  country’s  EU  accession  negotiations  by  2026.The 
participation  of  CSOs  in  the  National  Council  for  EU  Integration  and  the  Council  for  Open 
Government  Partnership  should  be  enhanced.  There  is  still  an  urgent  need  to  develop  a 
consistent  approach to  involving  CSOs  in  policymaking  at  national  and  local  levels,  and  to 
further build trust and cooperation between stakeholders. 

Civilian oversight of the security and intelligence sector 

The parliamentary committees for defence and security have been holding regular sessions. 
The  Parliamentary  Committee  for  Oversight  over  the  National  Security  Agency  (NSA)  and 
the  Intelligence  Agency  (IA)  has  held  only  two  sessions  since  its  election.  In  April  and 
September, its representatives conducted on-site visits of the NSA and IA. The interception 
of communications is supervised by a dedicated parliamentary committee, which convened 
regularly,  including  to  adopt  the  2024  annual  report  of  the  Operational  Technical  Agency. 
Members of the Council for Civilian Supervision have not yet been selected. The Council is a 
technical-expert  body  regulated  by  the  Law  on  the  interception  of  communications,  whose 
role  is  to  assist  the  Parliamentary  Committee  for  Supervision  of  the  Interception  of 
Communications. In April 2025, Parliament selected three civil society organisations required 
to complete the composition of the Civil Control Mechanism within the Ombudsman’s Office. 
The  Specialised  Department  for  investigation  and  prosecution  of  crimes  committed  by 
persons  with  police  powers  and  members  of  prison  police  requires  sufficient  financial  and 
human resources to effectively fulfil its mandate.  

2.1.2. Public administration reform 

Strategic framework for public administration reform 

The  strategic  framework  for  public  administration  is  in  place.  The  quality  and  scope  of  the 
2023-2030  public  administration  strategy  is  adequate,  but  its  implementation  still  requires 
improvement. 

The  Ministry  of  Public  Administration  (MPA)  published  in  a  timely  manner  the  2024 
implementation report on the 2023-2030 public administration strategy and 2023-2026 action 
plan.  Political  support  for,  and  leadership  and  supervision  of,  PAR  reforms  somewhat 
improved. The PAR Council resumed its activities. However, coordination between the MPA 
and  the  Ministry  of  Finance  remains  weak.  MPA  capacity  to  steer  the  reforms  at  technical 
level  was  slightly  affected  by  a  reorganisation  and  insufficient  human  resources.  Overall, 
further  efforts,  more  technical  staff  and  increased  cooperation  among  relevant  institutions 
are  needed  to  ensure  that  the  monitoring  and  management  structures  established  by  the 
PAR strategy and Public Finance Management (PFM) programmes function effectively. 

22 

 
 
The implementation rate of PAR and PFM measures remains insufficient. The State budget 
continues to fund only one third of all costed activities of both the PFM and PAR strategies. 
The quality of costing for the planned reforms remains low.  

Policy development and coordination 

Efforts are still needed to clarify the responsibilities of policymaking institutions, ensure their 
proper  functioning  and  streamline  reporting  lines.  The  new  framework  for  sector  strategy 
development and monitoring is being applied. However, planning documents continue to be 
adopted  without  guidance  and  support  by  the  General  Secretariat.  The  quality  of  sector 
strategies  developed  based  on  the  new  methodology  has  slightly  improved.  In  December 
2024,  new  Rules  of  Procedure  of  government  were  adopted.  The  General  Secretariat  still 
needs  appropriate  capacity  and  authority  to  ensure  effective  and  evidence-based  policy 
planning  and  coordination  policy.  The  methodology  for  conducting  regulatory  impact 
assessments (RIA) was improved, envisaging RIAs also apply to laws adopted in shortened 
procedure. The deadline for publishing draft laws and the accompanying RIAs was extended 
from 20 to 30 days. The quality and impact of public consultation remain weak. The number 
of  laws  adopted  through  shortened  procedure  by  both  the  previous  and  current  legislature 
slightly  increased  to  over  60%  in  2024.  Since  autumn  2024,  North  Macedonia  has 
consistently  used  the  ‘EU  flag’  procedure,  clearly  indicating  the  EU  acquis  that  is  being 
transposed in national law. Neither Parliament nor government have yet procedures in place 
for systematic ex post evaluation of laws and policies. 

As  regards  public  scrutiny  of  government  work,  the  government’s  annual  work  plan  and 
annual reports are still not accessible to the public. The number of draft laws tabled on the 
day  of  government  session  without  adequate  checks  decreased.  The  agendas  of 
government  sessions  are  not  yet  made  publicly  available  prior  to  the  meetings.  Delays 
continue in the publication of the minutes and decisions of government sessions. 

Public financial management 

Public  financial  management  is  broadly  in  place,  although  further  improvement  remains 
needed. 

The implementation rate for the Public Finance Management Reform Programme (PFMRP) 
2022-2025 remained relatively low. A new PFMRP for 2025-2028 was adopted in September 
2025. The practice of conducting an annual PFM policy dialogue under the ministerial PFM 
working  group  needs  to  be  resumed.  The  Ministry  of  Finance  continues  to  experience 
institutional  capacity  challenges,  notably  in  attracting  and  retaining  personnel  with  suitable 
skills and qualifications. 

The reforms outlined in the Organic Budget Law (OBL) continue to lag behind schedule. The 
law’s entry into force has been postponed to January 2026. While progress was made, with 
the  adoption  of  17  bylaws  in December  2024, full  enforcement  of the  OBL by 2026  seems 
unlikely  due  to  ongoing  delays  in  passing  all  secondary  legislation  and  establishing  the 
Integrated Financial Management Information System (IFMIS). 

The  Public  Investment  Management  Decree  was  adopted  in  April  2025.  Budget  credibility 
has improved thanks to the Fiscal Council becoming operational and to improved monitoring 
of  fiscal  risks.  However,  there  are  still  deviations  in  macro-fiscal  forecasting.  The  link 
between strategic priorities and budget programmes remains to be strengthened further. 

Gender-responsive budgeting has been incorporated as a principle of the OBL. However, it 
is  still  necessary  to  facilitate  stronger  policy  discussions  during  budget  preparation,  further 
refine budget classifications, and increase the number of indicators disaggregated by sex. 

The Ministry of Finance maintained efforts to enhance budget transparency by publishing 
quarterly  data  on  the  revenue  and  expenditure  of  public  institutions,  local  government 
authorities and state-owned enterprises. However, budget transparency in North Macedonia 

23 

 
 
remains limited, as evidenced by a low score of 35 in the latest Open Budget Survey, below 
the global average of 45. 

The weak administrative capacities and the consequent difficulty in absorbing funds has led 
to  decommitments.  The  risk  of  further  decommitments  remains  high  and  is  a  matter  of 
concern.  

Public service and human resources management 

Public service and human resources management remains insufficient. 

The  long-awaited  revised  legislation  on  administrative  servants  and  on  public-sector 
employees, aimed at ensuring merit-based recruitment and fair promotions and dismissals, 
was  enacted  in  July  2025.  While  the  two  laws  bring  improvements  in  terms  of  the 
organisation  of  selection  procedures,  regulation  of  temporary  employments,  working 
conditions  and  data  collection  in  the  human  resources  management  area,  they  maintain 
fragmentation  in  the  system  by  allowing  a  large  number  of  special  statute  civil  servants 
whose  rules  on  personnel  policy  might  vary  without  justified  need.  Arbitrary  allocation  of 
bonuses  based  on  broadly  defined  criteria  and  procedures  is  maintained.  With  the  current 
legal  framework,  inconsistent  application  of  recruitment  and  promotion  procedures  across 
the public sector continued. The contradictory rules in sectoral laws, which allow employees 
to be excluded from the scope of the Law on administrative servants, are still in force. 

The performance appraisal system was not used systematically. Data on dismissals of non-
managerial  staff  is  still  lacking  and  transparency  on  the  grounds  for  dismissal  of  civil 
servants  remains  insufficient.  A  proper  follow-up  on  the  recommendations  of  the  State 
Commission for Prevention of Corruption on improving public-sector recruitment procedures 
remains  needed.  There  is  no  comprehensive  retention  policy  for  the  public  administration. 
The job classification and salary systems need improvement to provide for more job security, 
stability  and  retention  of  the  staff.  During  the  reporting  period,  almost  all  acting  managers 
maintained  their  roles  as  fully  appointed.  Appointment  decisions  continued  to  lack 
transparency on the grounds for appointment and the merits of the candidates, and the use 
of  competitive  procedures.  The  MPA  is  now  responsible  for  coordinating  and  monitoring 
human  resources  management  across  the  public  administration.  However,  its  capacity  is 
inadequate. The human resources management information system is operational but needs 
an upgrade. The 2024 report on the register of public sector employees  was not published 
for  the  first  time  since  2015.  The  remuneration  system  remains  fragmented.  Specific 
ministries and bodies raise salaries in an inconsistent way and salary top-ups included in the 
annual budget execution laws are paid via a non-transparent procedure. 

In the absence of the data from the register of public sector employees, it is estimated  that 
women make up more than half of all public service employees according to the register of 
public-sector employees. However, these figures exclude institutions such as the army and 
several law enforcement agencies. Following the decision of the Constitutional Court, there 
are no official figures on equitable representation for 2024. Estimates indicate that there was 
no  change  in  the  proportion  of  ethnic  groups  in  the  public  administration.  The  integrity 
guidelines  for  various  categories  of  public-sector  employees  are  in  place.  There  are  no 
reports  on  how  the  guidelines  are  being  implemented.  A  law  was  adopted  aimed  towards 
establishing  a  training  academy  for  the  public  administration.  There  is  no  centralised 
database of trainings. 

Accountability of administration 

The accountability of administration requires further improvement. 

Several  state  institutions  were  merged  or  transformed  as  part  of  the  reorganisation  of  the 
central government institutions, aimed to improve the administration’s efficiency and lines of 
accountability.  The  systemic  new  law  on  state  organisation  has  not  yet  been  adopted.  A 
large number of bodies remain accountable to Parliament, although their performance is not 

24 

 
 
monitored in practice. There is a lack of clear typology for state administrative bodies, and a 
number of institutions have overlapping competences. Delegating decision-making authority 
to middle management remains very limited, both at central and local level. 

The  legal  and  institutional  frameworks  on  citizens’  right  to  access  public  information  are  in 
place.  However,  responses  to  requests  for  public  information  and  proactive  disclosure  of 
information  require  further  improvement.  The  level  of  disclosure  of  information  on  the 
websites of state administrative bodies remains unsatisfactory. The Agency for Protection of 
Free  Access  to  Public  Information  continued  to  process  appeals  rapidly.  Debates  in 
Parliament over Ombudsman and State Audit Office reports remain limited, and findings and 
recommendations still require more systematic follow-up. The legislation on citizens’ rights to 
good  administration  is  satisfactory.  The  legislation  establishes  citizens’  rights  to  claim 
compensation and the liability of public authorities in cases of wrongdoing. 

Service delivery to citizens and businesses 

Service delivery to citizens and business still needs to be improved. 

The  Law  on  electronic  documents,  electronic  identification  and  trusted  services  was 
amended to transpose the eIDAS 2.0 Regulation and to introduce the Digital Identity Wallet. 
A  new  Ministry  for  Digital  Transformation  was  set  up.  Its  remit  focuses  on  enabling  and 
promoting  e-government  and 
the  digital  agenda.  The  National  e-Services  Portal 
(https://uslugi.gov.mk/), providing services in three languages, was improved and upgraded 
for businesses, facilitating user access. The offer of e-services was broadened by including 
new  services  that  are  most  in  demand  among  citizens.  The  adoption  of  the  legislation  on 
electronic archiving facilitates the use e-government tools. The use of the population register 
remains  limited.  Efforts  need  to  continue  to  align  with  the  European  Interoperability 
Framework and the Interoperable Europe Act. Existing e-identification and e-signature tools 
are  still  not  user-friendly  or  free  for  the  public.  Implementation  of  the  Law  on  general 
administrative procedures across the administration is not yet systematic. Efforts are needed 
to recruit and retain more IT staff to work for the public administration. 

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 

A strategy for judicial reform is in place and its implementation needs to be improved. 

Implementation of the Strategy for Judicial Reform 2024-2028 and the accompanying action 
plan  has  been  affected  by  the  late  activation  of  the  Council  monitoring  the  strategy’s 
implementation, established under a new format in June 2025. This prevented timely follow-
up and the introduction of necessary measures to address shortcomings in the judiciary. The 
implementation  rate  of  activities  planned  in  2024  stands  at  42.9%.  The  2025  state  budget 
and its supplement did not provide sufficient resources to the sector. No progress was made 
on implementing the 2020 strategies for human resources management in the courts and in 
the public prosecutors’ offices. 

Management bodies 

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

25 

 
 
 
In December 2024, the President of the Judicial Council resigned but continued to serve as 
a member of the Council. The reasons cited for the resignation were undue political pressure 
and  repeated  statements  from  the  highest  levels  in  government  on  disbanding  the  Judicial 
Council  and  the  Council  of  Public  Prosecutors.  In  January,  the  voting  members  of  the 
Judicial  Council  unanimously  elected  a new  President.  The  Judicial  Council  action plan for 
implementing 
the 
competencies  of  the  Council,  has  been  gradually  implemented.  The  Law  on  the  Judicial 
Council,  taking  into  consideration  recommendations  of  the  peer  review  mission  and  the 
opinion of the Venice Commission, needs to be adopted.  

the  2023  peer  review  mission,  within 

the  recommendations  of 

The  Council  continued  to  implement  its  communication  strategy  2024-2028.  It  maintained 
efforts  to  improve  its  transparency,  including  the  provision  of  detailed  explanations  of  its 
decisions on appointments and promotions. 

Two  new  members  of  the  Judicial  Council  were  elected  by  their  peers  in  December.  The 
President  of  the  Republic  did  not  propose  a  new  member  of  the  Judicial  Council  to 
Parliament, and the position remains vacant. 

Two  new  members  of  the  Council  of  Public  Prosecutors  were  elected  by  Parliament,  and 
one  by  their  peers.  The  Council  increased  its  transparency  by  updating  its  website, 
facilitating the  attendance  of media  and CSOs  at  its  sessions,  and  providing  more  detailed 
explanations of its decisions. 

The  Judicial  Council  and  the  Council  of  Public  Prosecutors  must  continue  their  efforts  in 
providing  detailed  justifications  for  their  decisions,  particularly  regarding  the  selection, 
appointment and promotion of judges and prosecutors. 

Independence and impartiality 

by 

the 

independence 

and 
The 
impartiality  of 
judiciary 
need  to  be  improved.  The 
perceived  level  of  trust  in  the 
judiciary  remains  very  low. 
External 
political 
and 
interference  remain  a  serious 
Repeated 
concern. 
statements 
senior 
politicians  amount  to  undue 
influence  or  intimidation  and 
undermine  the  independence 
of 
judiciary.  Elected 
politicians  and  government 
their 
officials 
rhetoric  about  taking  action 
against  judges  and  prosecutors  they  accuse  of  being  corrupt.  In  December,  the  police 
searched the premises of the Judicial Council, following a notification by the Ministry of the 
Interior. Furthermore, the Parliament did not approve the 2023 annual report of the Judicial 
Council.  This  served  as  a  legal  basis  for  the  members  of  the  ruling  coalition  to  initiate 
interpellations against the  five  members  of the  Judicial  Council  elected  by Parliament.  The 
interpellations  were  followed  by  a  no  confidence  vote  due  to  the  alleged  unprofessional 
performance  of  duties,  which  further  eroded  public  trust  in  the  judiciary.  While  the 
interpellation  procedure,  by  itself,  does  not  constitute  legal  grounds  for  dismissal, 
government  officials  at  the  highest  level  publicly  called  for  the  resignation  of  the  Judicial 
Council members. The Judicial Council issued a statement underlining that its members, and 
judges  in  general,  must  be  free  from  any  form  of  pressure  or  influence  in  order  to  make 
independent decisions. The statement called on all public officials to respect relevant laws, 

escalated 

the 

26 

 
 
the Constitution and international agreements, with the aim of maintaining the rule of law and 
restoring public trust in the judiciary. 

of 

the 

The Judicial Council completed most 
of  the  pending  promotions  of  judges 
to  the  higher  courts  and  elections  of 
presidents 
Higher 
Administrative  Court, 
the  appeals 
courts  in  Bitola,  Gostivar  and  Shtip, 
and  several  basic  courts.  However, 
the  procedure  to  elect  the  President 
raised 
of 
possible 
concerns 
interference,  as  members  of 
the 
Judicial  Council  did  not  provide 
substantial  arguments  on  why  the 
elected  candidate  is  more  suitable 
than  the  competitor.  Election  of  judges  to  the  civil  division  of  the  Court  of  Appeals  Skopje 
saw deviation from the ranking list. 

the  Supreme  Court 

about 

The Law on public prosecution and the Law on the Council of Public Prosecutors need to be 
revised  in  line  with  the  opinion  of  Venice  Commission,  to  implement  European  standards 
and strengthen the autonomy of the prosecution service. GRECO recommendations must be 
addressed, particularly by focusing on automatic case distribution, by clarifying oversight and 
accountability  procedures,  disciplinary  violations  and  sanctions,  and  by  strengthening  the 
role of the Council of Public Prosecutors. 

Codes of ethics are in place for both prosecutors and judges. The Advisory Body for Ethics 
of Judges and Lay Judges unanimously adopted in October 2024 a conclusion pointing out 
that the business-financial relationship of a judge with a party in a proceeding is grounds for 
the judge’s exclusion from further adjudication. 

Several  laws  reducing  the  salary  coefficients  for  judges,  prosecutors  and  members  of  the 
Judicial Council and the Council of Public Prosecutors were adopted in December through a 
shortened procedure.  

Accountability 

two 

to  be 

judges  and 

The  accountability  of  the  judiciary 
improved.  The 
needs 
to 
Judicial  Council’s  decision 
dismiss 
fine 
another on the same grounds was 
legal  experts  as 
perceived  by 
selective. In September 2025, the 
Ad  hoc  Appeal  Council  of  the 
Supreme 
a 
resolution  of  the  Judicial  Council 
to  dismiss  a 
judge  who  had 
unjustifiably  delayed  proceedings 
in  one  of  the  former  SPO  cases 
and was designated by the United 
States  Department  of  State  for 
involvement 
significant 
in 
corruption.   

upheld 

Court 

The  Council  of  Public  Prosecutors 
the  Chief  Prosecutor’s 
confirmed 

27 

 
 
decision  to  suspend  a  prosecutor  over  charges  of  harassment  in  the  performance  of  duty 
and  abuse  of  official  position.  Following  deliberations  in  a  closed  session,  six  out  of  nine 
voting  members  of  the  Council  of  Public  Prosecutors  rejected  the  initiative  to  dismiss  the 
Chief  Prosecutor,  which  had  been  prepared  by  the  Ministry  of  Justice  at  the  government’s 
request. In July, the ruling coalition supported the interpellation against the Chief Prosecutor, 
initiated  by  one  of  the  opposition  parties.  The  interpellation  does  not  constitute  a  legal 
ground for the dismissal of the Chief Prosecutor.  

The  authorities  of  North  Macedonia  continued  to  address  the  recommendations  of  the 
December 2023 peer review mission. In June, the Venice Commission published an opinion 
on  the  revised  draft  Law  on  the  Judicial  Council,  recommending  that  the  grounds  for 
dismissal be clarified. 

Judges  and  prosecutors  are  required  to  declare  their  assets  and  interests  to  the  State 
Commission for the Prevention of Corruption (SCPC), which keeps a register of elected and 
appointed officials. The SCPC faces overall limitations in verifying asset-declarations. Based 
on the Annual Plan for Monitoring the Property Status and Conflict of Interest for 2025, the 
declarations of 13 members of the Judicial Council and 9 members of the Council of Public 
Prosecutors  have  been  verified.  Judges  and  prosecutors,  as  well  as  the  members  of  both 
Councils, must also avoid conflicts of interest and report any conflicts that arise. 

Quality of justice 

Nevertheless, 

The quality of justice needs to be improved. The staffing shortages in the judiciary continue 
to  be  a  matter  of  concern.  The  recruitment  of  the  biggest  ever  intake  at  the  Academy  for 
Judges  and  Prosecutors 
(130 
candidates),  suspended  during  the 
election  period 
in  May  2024, 
remained on hold as no appropriate 
budgetary allocations were provided 
in  the  2025  state  budget  or  its 
supplement. 
in 
February  2025,  97  graduates of  the 
Academy’s 
recruitment 
older 
the  eighth  graduating 
process, 
class,  were 
two 
recruited.  The 
Councils  initially  agreed  to  proceed 
with  recruitments  according  to  the 
numbers suggested to the Academy 
in  2020.  The 
at 
Judicial  Council,  benefiting 
from 
graduates’  lower  interest  in  joining  the  Public  Prosecutor’s  Office,  advertised  additional 
positions,  as  did  the  Council  of  Public  Prosecutors.  Eventually,  68  graduates  were  elected 
for the Basic Courts, and 19 for the Basic Public Prosecutors’ Offices. The Academy needs 
to continue to be the sole entry point to the judiciary and prosecution and its initial training 
should not be shortened. 

the  selection 

In  October  2024,  the  members  of  the  Managing  Board  of  the  Academy  for  Judges  and 
Prosecutors  appointed  a  new  director.  The  Judicial  Council  and  the  Council  of  Public 
Prosecutors  appointed  their  members 
to  the  Academy’s  Managing  Board.  
The public and media attended general 
sessions  of  the  Supreme  Court,  in  line 
with  its  amended  rules  of  procedure. 
This  increased  transparency  aimed  at 
improving the  public trust  in the  judicial 
system. 

28 

 
 
The  Supreme  Court  and  the  four  Courts  of  Appeal  continued  their  efforts  to  ensure  the 
consistency of judgments. The Supreme Court issued 11 principled legal opinions, stances 
and conclusions. 

Most  mediation  proceedings  concerned  commercial  and 
labour  cases.  There  are 
approximately  2.5  mediators  per  100 000  inhabitants,  well  below  the  regional  average  of 
17.8. 

Efficiency 

The efficiency of the justice system further declined. Efficiency is negatively affected by the 
increased  length  of  proceedings  and  a  high  backlog  of  cases.  The  length  of  proceedings 
increased  for  almost  all  case  categories.  Except  for  first-instance  administrative  cases,  the 
clearance rate was below 100% in all case categories for both first and second instance. 

According  to  assessment  by  the  Judicial  Council,  there  is  a  need  for  273  new  judges  in 
addition  to  the  363  serving  ones.  The  2024  annual  report  by  the  Council  of  Public 
Prosecutors  indicates  that  169  public  prosecutors  were  in  service  on  31 December  2024, 
which falls short of the estimated 261 needed. 

Parliament amended the Law on labour 
relations,  allowing  judges  and  public 
prosecutors to serve until the age of 67. 
Most  judges  and  public  prosecutors 
who  had  reached  the  age  of  64  chose 
to  extend  their  service  until  67.  This 
partly addressed the concerning impact 
on  human  resources  caused  by  the 
scheduled  retirements 
in 
2022.  The  Council  for  Coordination  of 
Communication 
Information 
Technology 
in  Judicial  Bodies  (ICT 
Council),  which  leads  the  digitisation 
process,  is  working  on  a  new  ICT 
Strategy for the judiciary.  

introduced 

and 

The  automated  court  case  management  information  system  (ACCMIS)  needs  to  be 
updated  in  line  with  changes  in  procedural  laws  and  with  the  new  measures  for  complex 
cases. The prosecution service’s new case management system is under development. 

A new system for the video and audio recording of court cases is in use  in all courts since 
October  2024.  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. 

The  budget  allocated  to  the 
courts  in 2025  is  0.3% of  GDP, 
which  is  well  below  the  legally 
established  level  of  0.8%  of 
financial 
GDP. 
resources should be provided to 
improve  the  efficiency  of  the 
justice  system  and  ensure  its 
financial autonomy. 

Sufficient 

the 

former 
The 
report  of 
Supreme  Court 
president’s 
visits  to  all  lower  courts,  issued 
in  October  2024,  confirmed 
insufficient  human  and  financial 

29 

 
 
resources, as well as inadequate infrastructure. 

The  Constitutional  Court  postponed  re-examination  of  the  provisions  on  bilingualism  in 
judicial  proceedings  in  the  Law  on  the  use  of  languages  until  the  Court  reaches  its  full 
composition  of  nine  judges.  Implementation  of  the  2019  recommendations  of  the  Venice 
Commission and its 2025 amicus curiae remained pending. 

Fight against corruption 

Track record 

The  fight  against  corruption  track  record  for  high-level  cases  and  for  non-high-level  cases 
remained  stable.   Various 
investigations 
were  launched,  including  against  a  former 
for  whom  an 
Deputy  Prime  Minister, 
international arrest warrant was issued. 

The  tragic  nightclub  fire  in  Kochani  on  16 
March,  in  which  62  people  were  killed  and 
more  than  190  injured,  prompted  public 
protests  over  corrupt  practices,  systemic 
institutional negligence and lack of oversight 
of fundamental safety standards and the rule 
of  law.  On  13 June,  the  Public  Prosecutor’s 
Office 
three 
companies mainly for ‘serious crimes against 
the 
public  security’ 
Kochani  disaster.  The  accused  include  the 
nightclub’s 
former  mayors, 
inspectors, security guards, former ministers, 
employees in state institutions.  

in  connection  with 

individuals  and 

indicted  34 

owners, 

In December 2024, the Chief Public Prosecutor issued a mandatory instruction that all public 
prosecutors  must  prioritise  corruption  cases  alongside  cases  of  significant  public  interest. 
Those cases should be also prioritised by the investigative centres of the Public Prosecutor’s 
Office. Out of a total of 14 investigative centres, 5 are now fully operational. Nonetheless, the 
consequences  of  the  September  2023  Criminal  Code  amendments,  the  lack  of  adequate 
human and financial resources and delays in court proceedings hinder the establishment of 
a  solid  track  record  of  anti-corruption  cases,  including  those  of  the  former  Special  Public 
Prosecutor’s  Office  (SPO).  This  further 
contributes to a sense of impunity. Weak 
judicial  transparency  and  prosecutorial 
the 
performance  continue 
of 
effectiveness 
proceedings 
in  high-level  corruption 
cases. 

to  hinder 
integrity 

and 

In  March  2025,  the  Constitutional  Court 
formulated  constitutionality  reservations 
regarding  the  September  2023  changes 
to  the  Criminal  Code.  Parliament  has 
been  granted  six  months  to  review  the 
relevant  provisions,  otherwise  the  Court 
will  have  the  final  say  on  whether  to 
repeal  (i.e.  all  rulings  based  on  the 
provisions  will  no  longer  be  valid  and 
relevant  cases  will  need  to  re-start)  or 
annul  them  (i.e.  the  old  code  will  be  in 

30 

 
 
force from the day of the annulment, and the rulings based on the 2023 changes will stand).  

Legal framework 

The legal framework on the fight against corruption is in place. It needs to be improved for 
preventive measures and for law enforcement. 

The Council of Europe’s Group of States against Corruption (GRECO) has pointed out that 
the  Law  on  prevention  of  corruption  and  conflict  of  interest  lacks  an  adequate  sanctioning 
mechanism for violations related to conflicts of interest, integrity and anti-corruption rules.  

The SCPC’s ability to effectively oversee political party financing remains constrained due to 
the inadequate legislative framework and a shortage of resources and expertise. The March 
2024 amendments to the Electoral Code overlooked key ODIHR recommendations, notably 
on  third-party  campaign  financing,  in-kind  contributions  and  loans  reporting,  and  effective 
sanctions.  

Inconsistent  enforcement  of  the  Law  on  free  access  to  information  continued,  and  some 
public institutions rejected requests or delayed information release on arbitrary grounds. 

In  June  2022,  the  Law  on  lobbying  entered  into  force.  However,  to  date  only  three 
organisations  registered  as  lobby  organisations.  The  Law  on  the  protection  of  whistle-
blowers  still  needs  to  be  further  aligned  with  the  EU  acquis  and  provide  adequate 
enforcement  mechanisms.  Individuals  who  report  wrongdoing  can  encounter  harassment, 
dismissal, or other repercussions, which undermines the effectiveness of the law.   

Strategic documents 

The  country  has  an  adequate  strategy  for  the  prevention  of  corruption  and  conflict  of 
interest  (2021-2025)  in  place.  Implementation  of  the  strategy  continues  to  be  slow, 
indicating  an  overall  lack  of  commitment  and  ownership  across  institutions.  The  SCPC 
identified  limited  human  and  financial  resources,  insufficient  accountability  and  weak 
interinstitutional coordination as further reasons behind low implementation. Only 18% of the 
activities planned for 2024 were implemented in full, while 32% are ongoing and 50% have 
not  been  implemented.  This  is  a  very  limited  increase  from  last  year,  when  13%  of  the 
planned activities had been implemented in full, 33% were ongoing and 54% had not been 
implemented.  North Macedonia must  adopt  a new  strategy for the  prevention of  corruption 
and  conflicts  of  interest  (2026-2030)  in  a  timely  and  inclusive  manner.  The  new  strategy 
should  clearly  identify  priority  activities,  institutions’  responsibility  for  implementing  the 
activities and their financial implications.  

Institutional framework 

The  institutional  framework  on  the  fight  against  corruption  is  in  place.  It  is  adequate  for 
preventive measures but needs to be improved for law enforcement. 

In  July  2025,  the  President  of  the  State  Commission  for  the  Prevention  of  Corruption 
(SCPC) resigned after being indicted with disclosing official secrets and falsifying an exam to 
obtain  a  security  certificate.  A  procedure  for  the  appointment  of  a  new  President  of  the 
SCPC has not been initiated in the reporting period. In compliance with the Law, the SCPC 
is  now  headed  by  the  Deputy  President.  While  the  SCPC  continues  to  be  operational,  its 
credibility  has  been  brought  into  question.  The  SCPC  focused  its  work  on  interinstitutional 
cooperation,  awareness  raising,  integrity  systems  implementation,  oversight  of  elections 
campaign  financing  and  assets  declarations.  In  December  2024,  the  SCPC  criticised 
proposed amendments to the public procurement law, exercising its anti-corruption oversight 
powers.  The  SCPC  was  less  active  in  detecting  and  reporting  alleged  instances  of 
corruption.  The  SCPC  has  been  hesitant  in  handling  politically  sensitive  cases  and  its 
communication with the public has been insufficient, raising concerns about its transparency. 

The  SCPC  must  increase  its  capacity to proactively  identify  potential  cases  of misconduct. 
Findings  in  SCPC  reports  are  often  not  acted  upon  by the  relevant  institutions.  The  SCPC 

31 

 
 
still  faces  limitations  in  verifying  asset  declarations.  Additionally,  its  oversight  of  election 
campaign  financing  remains  weak  due  to  the  inadequate  legislative  framework,  limited 
resources, the manual processing of data and lack of planning. 

In 2024, the  SCPC  signed  memoranda  of  understanding  for  electronic  data  exchange  with 
five  institutions  and  with  several  banks.  It  is  now  equipped  with  new  software  that  should 
help it carry out its mandate more efficiently and transparently. Further efforts are needed to 
promote data exchange, and software should be maintained and upgraded. 

The SCPC would benefit from hiring specialist staff with investigative experience to improve 
verification  of  asset  declarations  and  ensure  effective  oversight  of  election  campaign 
financing. 

The  budget  and  staffing  of  the  Public  Prosecutor’s  Office  and  the  Public  Prosecutor’s 
Office  for  Prosecuting  Organised  Crime  and  Corruption  (OCCPPO)  remain  insufficient 
to  address  high-level  corruption  and  organised  crime  effectively.  The  absence  of  sufficient 
financial  experts  or  analysts  and  a  lack  of  strategic  planning  in  managing  investigations 
Introducing  more  specialised  expertise  and 
hinder 
concentrating resources on complex cases would increase its effectiveness.  

the  Office’s  overall  efficiency. 

The State Audit Office, the investigative centres attached to the Public Prosecutor’s Office, 
and  the  police  force  all  lack  adequate  resources.  This  affects  the  quality  and  efficiency  of 
investigations.  Furthermore,  investigations  need  to  be  supported  by  parallel  financial 
investigations  followed,  when  justified,  by  freezing  and  confiscation  mechanisms.  To 
increase  the  number  of  financial  investigations,  the  prosecution  service  requires  sufficient 
financial and human resources. 

April 2025 saw the constitutive session of the Interinstitutional Body for coordination of anti-
corruption  activities,  chaired  by  the  Deputy  Prime  Minister  for  Good  Governance.  Civil 
society has one representative on the body, who is a voting member. The re-establishment 
of this body is a positive development but will require further strong political leadership and 
effective cooperation with all stakeholders.  

Fundamental rights 

General framework 

The general framework for fundamental rights is broadly satisfactory. The protection, respect 
and fulfilment of fundamental rights need to be improved. 

International human rights instruments 

Cooperation  with  international  human  rights  monitoring  bodies  and  the  follow-up  on  their 
recommendations need to be improved. 

North  Macedonia  has  ratified  most  international  human  rights  instruments.  However,  the 
country  is  not  a  party  to  the  Convention  for  the  Protection  of  All  Persons  from  Enforced 
Disappearance or to the Optional protocol to the International Covenant on Economic, Social 
and  Cultural  Rights.  In  November  2024,  the  country  ratified  the  Council  of  Europe 
Convention  on  Access  to  Official  Documents  (CETS  No 205),  also  known  as  the  Tromsø 
Convention. The Convention applies as of March 2025. 

The  country  maintains  a  good  reporting  record  with  international  and  regional  bodies  yet 
faces challenges in implementing and following up on recommendations. National capacities 
have  improved,  but  there  is  a  need  to  improve  stakeholder  knowledge  and  engagement. 
Strengthening  evidence-based  monitoring,  reporting  and  interinstitutional  coordination  is 
recommended.  More  efforts  are  necessary  for  North  Macedonia  to  fully  benefit  from  its 
observer status in the European Union Agency for Fundamental Rights (FRA). 

European Court of Human Rights 

32 

 
 
found  breaches  of 

the 
cooperation  with 
The 
European  Court  of  Human  Rights 
(ECtHR)  and  the  implementation 
of  its  judgements  is  adequate. 
During  the  reporting  period,  the 
ECtHR  delivered  6  judgements 
against  North  Macedonia.  The 
Court 
the 
European  Convention  on  Human 
Rights 
the 
relating  mainly 
respect  for  private  and  family  life, 
right to a fair trial and protection of 
property.  Currently,  there  are  5 
cases 
enhanced 
supervision  by  the  Committee  of 
Ministers  related  to  ill  treatment  by  the  police,  protection  of  private  life,  discrimination  of 
Roma pupils (7 cases last year).  

under 

to 

North  Macedonia needs  to  address  systematic  issues  or  structural  issues  raised  by  the 
Court,  notably  in  the  areas  right  to  life  and  protection  against  torture,  prohibition  of 
discrimination.  

The  Government  rejected  the  initial  three  nominations  for  a  new  national  judge  to  ECtHR 
and established a new selection commission.   

Promotion, protection and enforcement of human rights 

is 

for 

and 

legal 

The 
institutional 
framework 
the 
promotion,  protection 
and  enforcement  of 
human  rights 
in 
place but needs to be 
The 
improved. 
country  continues  to 
general 
meet 
its 
obligations 
on 
rights, 
fundamental 
legislation  and 
but 
strategies 
pertinent 
should 
be 
in  a 
implemented 
systematic  manner. 
The Ombudsman has 
been  accredited  as  a 
National 
B-status 
Rights 
Human 
Institution since 2014. Parliament did not adopt the long-awaited amendment to the Law on 
the  Ombudsman’s Office,  necessary to upgrade  its  ‘B’  accreditation status  under the  Paris 
Principles.  Parliament  did  not  elect  a  new  Deputy  Ombudsman  nor  the  8  new  Deputy 
Ombudspersons, for the regional offices and Skopje, out of the 10 envisaged. Parliament’s 
election  of  members  of  independent  human  rights  and  equality  bodies,  including  the 
Commission for Prevention and Protection against Discrimination, needs to be merit-based 
and  in line  with applicable legal  provisions.  The Ombudsman’s  Office  and  the  Commission 
for  Prevention  and  Protection  against  Discrimination  continue  to  lack  the  financial  and 
human resources needed to function independently and effectively. 

33 

 
 
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. North Macedonia provides adequate legal guarantees on the prevention of torture 
and ill-treatment. However, follow-up on cases remains insufficient. Idrizovo Prison, despite 
the  recent  refurbishment  of  the  women’s  section,  shows  persistent  deficiencies  and,  in 
particular,  seriously  dilapidated  facilities.  Poor  detention  conditions  remain  a  serious  and 
persistent concern which, according to ECtHR case law, can amount to ill-treatment. 

for 

North Macedonia needs to 
continue  dialogue  with  the 
the 
Committee 
Prevention  of  Torture  of 
the  Council  of  Europe 
implementing 
(CPT)  on 
CPT 
the 
recommendations 
published 
and 
previous reports. 

in  May  2024 
all 
from 

those 

There 
systemic 
shortcomings  and  delays 
and 
investigating 
in 
prosecuting 
of 
alleged  violence  by  law 
enforcement officers, as well as cases of violence in prisons. North Macedonia must step up 
its efforts to conduct efficient, effective and investigations to address police torture, violations 
and  illegal  use  of  coercive  measures  through  a  well-functioning  external  oversight 
mechanism for the police. 

cases 

are 

The  number  of  National  Preventive  Mechanism  (NPM)  staff  decreased  to  three  full-time 
officers.  The  body  continues  to  have  limited  budget  resources  to  carry  out  its  mandate 
effectively in line with the Optional Protocol to the UN Convention against Torture and other 
Cruel, Inhuman or Degrading Treatment or Punishment (OPCAT). 

Execution of criminal sanctions 

The  system  for  execution  of  criminal 
sanctions (including probation) needs 
to be improved. 

Out  of  11  penitentiary  institutions,  5 
are  managed  by  acting  governors. 
The  remaining  6  acting  governors 
were  appointed  on  a  full-time  basis 
after  they  completed  the  competitive 
nomination  procedure  in  April.  An 
acting  head  is  still  managing  the 

34 

Directorate 
Sanctions.  

for 

the  Execution  of 

A  high  level  of  corruption  in  prisons 
concern.  To 
remains 
serious 
the  Anti-
implement  activities 

from 

a 

 
 
Corruption  Plan  (2022-2026),  mandatory  searches  of  premises  and  individuals  by  prison 
police have been conducted in prisons since November 2024. 

Prisons are overcrowded and no progress was made on providing healthcare to prisoners. A 
stronger commitment  from the  Ministry  of  Health  is  needed,  in particular with regard to  the 
accreditation  of  healthcare  staff  for  each  prison  and  access  to  healthcare.  The  lack  of 
adequate measures to treat drug addiction in prisons remains an issue of serious concern. 

The probation system continued to improve, with more cases handled by probation officers 
and  better  coordination  between  stakeholders.  The  Academy  for  Judges  and  Prosecutors 
organised round table meetings with judges and prosecutors. This was to promote electronic 
supervision and the probation service in order to raise awareness about the need for more 
widespread  use  of  probation,  including  house  arrest  with  electronic  supervision  and 
conditional  release  with  electronic  supervision.  There  were  a  total  of  793  newly  received 
cases in 2024, a rise from 2023, and a total of 262 cases by March 2025. 

No  progress  was  made  on  amending  the  legal  framework  for  alternative  sentences. 
Amendments to the Law on primary education entered into force, setting the legal framework 
for  the  educational  process  in  penitentiary  institutions.  North  Macedonia  must  take  the 
necessary steps to provide educational, cultural and sports activities for remand prisoners. 

Protection of personal data 

The legal framework for the protection of personal data is insufficient and the capacities of 
the  data  protection agency  need 
to be improved. 

No  progress  was  made  on  the 
protection  of  personal  data. 
Adoption of the legislation to fully 
align  with 
the  General  Data 
Protection  Regulation  and  with 
the  EU 
Law  Enforcement 
Directive  is  still  pending.  The 
Parliament amended the Law on 
Data Protection to include NATO 
countries  as  eligible  recipients 
for  personal  data 
transfer, 
without  prior  consultation  with 
the  Personal  Data  Protection 
Agency  (PDPA).  However,  there 
are no legal or procedural frameworks in place to ensure that the transferred data receives 
protection  equivalent  to  the  standards  set  by  the  GDPR.  Due  to  a  lack  of  budgetary 
independence and insufficient funds, the PDPA continues to struggle to fulfil its institutional 
role.  In  a  concerning  development,  the  government  removed  the  PDPA  from  the  list  of 
bodies  that  must  be  systematically  consulted  before  sectoral  laws  or  implementing 
regulations are adopted. Parliament has not appointed a director of the PDPA since January 
2025.  All  these  factors  negatively  affected  the  implementation  of  the  Personal  Data 
Protection Strategy 2025-2030. No progress was noted on coordination, communication and 
responsiveness  to  PDPA  recommendations.  Data  breaches  are  increasingly  frequent,  and 
some are not reported in line with the legal requirements. There is still a low awareness of 
data  protection  and  insufficient  IT  protection  of  personal  data  in  the  state  administrative 
bodies. 

Freedom of religion or belief 

North Macedonia provides adequate legal guarantees on freedom of religion or belief. The 
rights to freedom of religion or belief continue to be guaranteed by the Constitution and 
upheld in practice. 

35 

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

Freedom of expression 

North  Macedonia  provides  adequate  legal  guarantees  on  the  freedom  of  expression.  The 
enabling environment for the media’s free, independent and professional operation needs to 
be improved. 

Intimidation of journalists 

Implementing  legal  protections  for  journalists  effectively  continues  to  be  challenging,  in 
particular  concerning  online  harassment  and  gender-based  violence  directed  at  female 
journalists. 

In  2024,  four  physical  attacks  and  serious  threats  against  journalists  were  reported  to  the 
Ministry  of  Internal  Affairs  and  one  case  was  referred  to  the  Public  Prosecutor’s  Office. 
Although  the  number  of  attacks  decreased  compared  with  2023,  when  seven  cases  were 
reported,  only  two  of  the  cases  had  been  resolved,  investigations  were  slow,  and  charges 
had  not  been  filed  in  some  incidents,  particularly  those  involving  online  abuse  targeting 
investigative journalists. Data for 2024 shows that there were 15 cases involving journalists 
or  media  outlets  as  either  the  plaintiff  or  defendant  in  lawsuits  concerning  insult  and 
defamation. This is an increase compared with 2023, when 12 such cases were recorded. 

The  absence  of  specific  legislation  against  strategic  lawsuits  against  public  participation 
(SLAPPs)  and  judges’,  lawyers’ and journalists’  limited  awareness  of  this  issue  continue to 
hinder  effective  protection  for  journalists  and  other  persons  who  engage  in  public 
participation from this form of persecution. Alignment with the EU Anti-SLAPP Directive and 
Recommendations needs to be ensured. 

To  strengthen  the  legal  protection  of  journalists,  four  public  prosecutors  have  been 
designated to coordinate and oversee cases involving attacks on journalists. 

Legislative environment 

The legal framework governing the media is not fully aligned with the EU acquis, particularly 
the European Media Freedom Act (EMFA). In April 2025, Parliament adopted amendments 
to  the  Law  on  media  in  a  transparent  manner.  Under  the  changes  to  the  legal  framework, 
online  media  providers  are  required  to  register  with  the  Agency  for  Audio  and  Audiovisual 
Media Services, the aim being to improve transparency, provide legal recognition and help in 
eliminating or reducing the flow of disinformation. The rules on media concentration remain 
unaligned with the EU acquis and European standards. The Law on audio and audiovisual 
media services does not lay down rules on assessing the impact of market concentration on 
media pluralism. 

Implementation of legislation/institutions 

The  financial  independence  of  the  Agency  for  Audio  and  Audiovisual  Media  Services  has 
improved. In 2025, the authorities allocated funds to the broadcasting sector, as required by 
the  Law  on  audio  and  audiovisual  media,  increasing  its  financial  independence  and 
operational capacities. However, the advertising in commercial media, where not allocated in 
a transparent and non-discriminatory manner, constitutes a risk for political misuse of funds, 
potentially undermining media independence and distorting the market. 

In June 2025, Parliament elected the new members of the Council of the Agency for Audio 
and Audiovisual Media Services (AVMU). Concerns were raised about the way the members 
of  the  Agency’s  Council  were  selected  due  to  a  lack  of  transparency,  clear  criteria  and 
impartiality. 

The  media  regulator  continued  monitoring  broadcast  media  in  an  effective  manner. 
Upgrading the media regulator’s technical and institutional capacities is essential to meet the 

36 

 
 
new responsibilities arising as a result of the legal framework being aligned with the Media 
Directive. 

Implementation of the Law on free access to information remains inconsistent. This is due to 
some  public  institutions  rejecting  requests  on  arbitrary  grounds,  including  using  personal 
data protection as a blanket justification. The process of obtaining information is excessively 
long. 

Public service broadcaster 

Despite  improved  funding,  the  public  service  broadcaster  continues  to  face  significant 
challenges, particularly regarding its institutional autonomy. Parliament has appointed in July 
a  new  Programme  Council  for  Macedonian  Radio  Television  (MRT),  resolving  a  delay 
pending since December 2018. MRT has yet to settle its outstanding debts. While efforts to 
modernise and improve professional standards are ongoing, limited administrative autonomy 
remains a barrier to recruiting new staff. 

Economic factors 

The country needs a comprehensive strategy for the development of all media sectors. Local 
private  media  are  in  decline,  while  non-profit  and  community  media  continue  to  face 
significant  financial  challenges,  with  national  terrestrial  TV  stations  remaining  the  most 
financially  stable.  Political  parties  continue  to  allocate  state  funds  for  advertising,  but 
transparency  surrounding  paid  political  advertising  remains  an  issue,  particularly  on  social 
media.  Print,  broadcast  and  digital  media  are  legally  obliged  to  disclose  their  ownership  to 
the  audiovisual  media  regulatory  body.  A  self-regulatory  ownership  register  for  digital 
national media is also in place. 

Internet 

The  amendments  to  the  Law  on  media  establish  a  Register  of  Online  Media,  requiring 
portals to be legal entities with a local office, use a national domain, and employ at least two 
staff members to gain access to facilities reserved for recognised media outlets. 

Net  neutrality  is  ensured  both  legally  and  in  practice.  However,  challenges  persist  in  the 
online  media  sector,  with  rising  threats  from  disinformation,  hate  speech  and  intellectual 
property  violations.  The Council  of  Media  Ethics reported  84  complaints for  hate  speech  in 
2024, a decrease compared with the previous year. 

Professional organisations and working conditions 

The  self-regulatory  Council  of  Media  Ethics  continues  its  work  despite  concerns  over 
securing  long-term  sustainable  funding.  Shortcomings  in  journalists’  working  conditions 
persist,  particularly  due  to  short-term  or  part-time  contracts,  the  lack  of  health  and  social 
insurance, unpaid overtime and low wages. These issues contribute to self-censorship and 
allow media owners to exert influence over editorial content. 

(See also Chapter 10 – Digital transformation and media) 

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

Freedom of assembly and association 

North  Macedonia  provides  adequate  legal  guarantees  to  the  freedom  of  assembly  and 
association. The rules on public assemblies needs to be improved. 

The  Constitution  guarantees  the  right  to  freedom  of  assembly  and  association.  The  legal 
framework generally aligns with international obligations on freedom of association. Further 
action  is  necessary  to  implement  the  European  Court  of  Human  Rights  (ECtHR)  rulings 
concerning the registration  of  associations.  There was no  progress  on  revising  the  Law  on 
associations  and  foundations.  Legislative  changes  should  comply  with  international 
the 
standards,  recommendations  of 

the  Venice  commission  and  be 

line  with 

in 

37 

 
 
Recommendation of the European Commission against Racism and Intolerance (ECRI). The 
protests  during  the  year  took  place  without  incidents.  There  were  no  reports  of  excessive 
use  of  force  during  assemblies.  In  August,  participants  in  a  march  for  the  victims  of  the 
tragedy  in  Kochani reported  that  police  were stopping  vehicles  coming  from  other cities  on 
their way to the protest, though the Ministry of Interior denied restricting access, stating the 
checks were part of routine traffic control measures. 

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

Property rights 

The legal and institutional framework for enforcing property rights is broadly in place. 

Progress  on  property  rights  remains  limited,  primarily  because  of  lengthy  and  expensive 
procedures.  There  has  been  little  advancement  on  implementing  the  national  strategy  for 
property  rights,  and  municipal  property  registers  are  outdated  and  maintained  in  analogue 
format.  The  Cadastre  Office  has  launched  new  digital  services  for  the  public,  reducing  the 
number  of  unresolved  cases  by  20%  compared  with  2024  and  decreasing  the  backlog  of 
total received cases by 10%. The registration of land and properties is complete, and laser-
scanning  has  been  implemented  nationwide.  However,  the  administrative  authorities 
responsible for restitution, compensation and legalisation processes are struggling with their 
workloads, primarily due to understaffing and insufficient funding. Despite the official closure 
of the denationalisation process in 2013, over 5 000 cases remain unresolved. 

Non-discrimination 

The legal and institutional framework for non-discrimination remains to be fully aligned with 
the EU acquis, including inter alia as regards the Racial Equality Directive and the Directives 
on  standards for  equality  bodies.  A  national  anti-racism  strategy  or  action plan,  in line  with 
the Commission’s strategy, should be adopted. 

The  country  further  delayed  harmonisation  of  non-discrimination  principles  across  all 
relevant  laws.  Early  in  2025,  Parliament  adopted  amendments  to  the  Law  on  primary 
education,  the  Law  on  secondary  education  and  the  Law  on  textbooks  for  primary  and 
secondary  education.  The  amendments,  which  were  adopted  through  an  expedited 
procedure and without consultations with relevant stakeholders, removed content on sexual 
and reproductive health and gender equality. This raised concerns over compliance with the 
Law on Prevention and Protection from Discrimination and international standards.  

Parliament’s  appointments  of  Commissioners  to  the  Commission  for  the  Prevention  and 
Protection  against  Discrimination  need  to  be  merit-based  and  in  line  with  the  criteria 
established  by  law.  Consideration  should  be  given  to  both  the  candidates’  experience  and 
their performance during the interview, who must also demonstrate their ability to address all 
areas  within the  equality  body’s  mandate. In  2024, the  Commission for the  Prevention  and 
Protection against Discrimination addressed 485 discrimination cases. Most complaints were 
based on national or ethnic origin, which was also the most prevalent form of discrimination. 
As  in  the  previous  year,  the  public  sector  remains  the  primary  place  of  discrimination, 
accounting for 66% of cases. The most common areas of discrimination in 2024 were work 
and  employment  (39%),  followed  by  issues  related  to  trade  union  membership,  public 
information  and  media,  as  well  as  education,  access  to  goods  and  services,  and  the 
judiciary.  

The Commission for the Prevention and Protection against Discrimination lacks institutional 
and financial independence, and insufficient administrative staff. The 2021-2026 Strategy for 
Equality and Non-Discrimination has not yielded visible results. 

The  legal  framework  and  interinstitutional  capacity  to  combat  hate  speech  and  hate  crime 
require  further  strengthening  to  align  with  the  EU  acquis  and  European  standards,  and 
notably  the  2008  Council  Framework  Decision  on  combating  racism  and  xenophobia  by 
means  of  criminal  law.  The  country  should  act  on  the  Council  of  Europe’s  European 

38 

 
 
Commission against Racism and Intolerance (ECRI) General Policy Recommendation No 15 
on combating hate speech and fully address the findings and recommendations outlined in 
ECRI’s  September  2023  report.  Authorities  do  not  collect  data  on  hate  speech  and  hate 
crime in a systematic manner, though civil society organisations consistently document hate 
crime cases in their own databases. 

In 2024, CSOs registered 1 391 cases of alleged hate speech, the most prevalent being on 
grounds of nationality, ethnic origin, political affiliation, sexual orientation and gender identity. 

Gender equality 

legal  and 

The 
institutional 
framework  on  gender  equality 
and  combating  gender-based 
incomplete. 
is 
violence 
Implementation 
and 
enforcement  mechanisms  need 
to be improved. 

There  were  no 
significant 
developments  in  the  national 
policy framework for integrating 
the 
gender  equality  nor 
efforts  to  align  with  the  EU 
acquis 
relevant 
and 
on 
international 
gender equality. Implementation of the national strategy for gender equality (2022-2027) and 
its corresponding action plan remain deficient. 

standards 

in 

Greater efforts are needed for institutional and legal reforms to address key gender equality 
aspects,  particularly  on  access  to  political,  economic  and  social  life,  accessing  health 
services, preventing gender-based and domestic violence, and protecting victims. 

Gender-based  hate  speech,  including  threats  against  female  human  rights  defenders, 
remains  prevalent,  in  particular  on  social  media.  Shifts  in  municipal  policies  from  gender 
equality to ‘equality between men and women,’ undermine gender equality. 

Challenges  remain  in  implementing  the  Istanbul  Convention  due  to  missing  legislation  and 
inadequate  funding.  No  analysis  of  national  legislation  for  compliance  with  the  Directive 
2024/1385  on  violence  against 
women  and  domestic  violence  has 
been conducted so far. The Criminal 
Code  needs 
further  alignment, 
particularly  by  criminalising  forced 
marriage,  psychological  violence, 
and  ex  officio  prosecution 
for 
domestic  violence-related  harm. 
judges, 
Ongoing 
prosecutors and police is crucial, as 
recommended  by 
the  Group  of 
Experts  on  Action  against  Violence 
against  Women  and  Domestic 
Violence  (GREVIO).  In  2024,  1 087 
domestic  violence  cases  were 
reported, 84% involving women, but this only represents 3% of the estimated gender-based 
violence cases. There are 14 centres for victims of domestic violence, but only 6 are active 
and functioning. 

training 

for 

39 

 
 
The  national  reintegration  programme  for  victims  of  violence  against  women  and  domestic 
violence was adopted in September 2024 but lacks clear procedures, budgets and properly 
defined roles. Its effectiveness is hampered by the absence of transitional housing, the lack 
of economic empowerment measures and poor coordination across sectors. The preventive 
health  programmes,  adopted  in  February  2025,  aligning  with  EU  Victims’  Rights  Directive 
and  the  Equal  Treatment  in  Goods  and  Services  Directive,  offer  free  medical  services  and 
co-payment  exemptions  for  gender-based  violence  and  domestic  violence  survivors. 
However, these remain symbolic due to limited funding and insufficient crisis centre access, 
focusing only on sexual violence.   

Rights of the child 

The  legal  and institutional  framework  on  rights  of  the  child is  in place.  Implementation and 
enforcement need to be improved. 

The  main  challenges  in  ensuring  effective  implementation  are  the  poor  accountability 
framework,  inappropriate  and  insufficient  capacity  and  funding,  a  lack  of  systematic 
monitoring,  and  insufficient  interinstitutional  cooperation.  Further  reforms  are  needed  to 
ensure respect for children’s rights to education, health, protection from violence, and non-
discrimination. 

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  National 
Action Plan for Children’s Rights (2025-2029) is yet to be adopted. 

Implementation efforts in children’s rights protection should also be in line with the EU acquis 
and  draw  guidance  from  key  European  Commission  recommendations,  in  particular  as 
concerns  integrated  child  protection  systems.  More  funds  are  needed  to  implement  the 
National Strategy for prevention and justice for children (2022-2027) and its accompanying 
Action  Plan  (2022-2026),  and  the  National  Strategy  (2020-2025)  on  prevention  and 
protection of children from violence. 

The Law on justice for children broadly reflects the requirements on procedural safeguards 
for  children  who  are  suspects  or  accused  in  criminal  proceedings.  Regular  monitoring  and 
inspection of  educational  correctional  facilities  and prisons  is  crucial  to protect  and  provide 
services  to  detained  children.  Access  to  justice,  legal  representation  and  capacity  building 
for  public  officials  working  with  child  victims,  witnesses  and  offenders  are  currently 
insufficient. 

Implementation  of  the  Deinstitutionalisation  Strategy  (2018-2027)  continues.  All  large 
institutions have been closed, and all children have been relocated to family-based care or 
small group homes. 

Persons with disabilities 

The legal and institutional framework on the rights of persons with disabilities is incomplete. 
Implementation and enforcement need to be improved. 

Persons with disabilities are still unable to fully enjoy their rights. This is because legislation 
and government policies are not aligned with the UN Convention on the Rights of Persons 
with Disabilities  (UNCRPD).  The  capacity  of  national  authorities  needs  to be strengthened. 
The  Ombudsperson’s  Office  oversees  the  implementation  of  the  UNCRPD  in  close 
cooperation with CSOs. Implementation of the national strategy on the rights of persons with 
is 
disabilities 
implemented  through  the  activities  outlined  in  the  action  plan  for  2023-2025.  Persons  with 
intellectual  and  physical  disabilities  are  gradually  being  transferred  to  residential  units 
operated by community services for organised supported living. The Commission Guidance 
on  independent  living  and  inclusion  in  the  community  of  persons  with  disabilities  in  the 
context of EU funding (C/2024/7188) could serve as a guiding document in this respect. 

is  ongoing.  The  National  Deinstitutionalisation  Strategy  (2018-2027) 

40 

 
 
Overall,  persons  with  disabilities  continue  to  encounter  significant  forms  of  discrimination, 
including insufficient access to information and services, discriminatory attitudes and social 
marginalisation. 

Accessibility  remains  limited,  including  due  to  infrastructure  barriers.  The  legislative 
framework  needs  to  be  aligned  with  the  EU  acquis  in  the  area,  including  the  European 
Accessibility  Act.  A  law  on  the  accessibility  of  websites  and  mobile  applications  of  public-
sector  institutions  (in  accordance  with  Directive  (EU)  2016/2102)  was  adopted  by  the 
Parliament in September 2025.   

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

LGBTIQ persons 

The  legal  protection  of  the  rights  of  LGBTIQ  persons  needs  to  be  improved.  LGBTIQ 
persons  face  discrimination.  The  Law  on  prevention  and  protection  against  discrimination 
explicitly lists sexual orientation and gender identity as protected grounds for discrimination. 
The  current  legislation  does  not  recognise  same-sex  partnerships.  The  adoption  of  a 
national LGBTIQ equality strategy or action plan is still pending. No steps have been taken 
to implement the January 2019 European Court of Human Rights (ECtHR) judgment on legal 
gender recognition. 

On  21 June  2025,  a  LGBTIQ  pride  parade  was  organised  in  the  form  of  a  protest  march, 
which  took  place  without  incidents.  Hate  speech  against  the  community  persists  on  social 
media.  In  2024,  CSOs  reported  230  cases  of  alleged  hate  speech  based  on  sexual 
orientation and gender identity, yet legal responses remain insufficient (298 cases in 2023). 
CSOs  also  documented  two  cases  of  hate-motivated  violence  based  on  sexual  orientation 
and  gender  equality,  with  no  updates  on  investigations  into  decade-old  attacks  on  the 
LGBTIQ  Support  Centre  or  vandalism  and  threats  against  LGBTIQ  organisations  and 
activists.  LGBTIQ  organisations  raised  concerns  about  the  negative  impact  of  USAID 
funding cuts to LGBTIQ programming, which will potentially further weaken the LGBTIQ and 
gender  equality  movements,  as  anti-democratic  activists  continue  to  gain  influence. 
Awareness-raising  campaigns  to  fight  LGBTIQ-phobia,  currently  insufficient,  could  improve 
the situation. 

Procedural rights and victims’ rights 

The legal framework on procedural rights for suspects and accused as well as the rights of 
victims of crime is partially aligned with the EU acquis and needs to be improved. 

The country has a solid network providing primary and secondary free legal aid. Free legal 
aid is accessible through 34 regional branch offices of the Ministry of Justice, relevant civic 
associations,  legal  clinics  within  the  faculties  of  law,  and  through  lawyers  certified  to  give 
secondary legal aid. The legal aid system in criminal proceedings should however be further 
strengthened to improve access to justice. In particular, there needs to be a reassessment of 
eligibility  criteria  for  mandatory  defence,  and  free  legal  aid  for  persons  who  lack  sufficient 
resources,  as  well  as for  representation  of  crime  victims’  interests.  Legislation  on  legal  aid 
for victims of trafficking in human beings needs to be revised. 

Amendments  to  the  Law  on  criminal  procedure  aimed  at  ensuring  full  alignment  with  the 
Victims’  Rights  Directive  are  not  yet  implemented.  There  needs  to  be  greater  public 
awareness  about  compensation  mechanisms  and  the  role  of  the  Commission  for  the 
Implementation  of  the Law  on  the  payment  of monetary  compensation  to victims  of  violent 
crimes. 

Protection of minorities 

41 

 
 
The  recommendations  of  the  Advisory  Committee  on  the  Framework  Convention  for  the 
Protection  of  National  Minorities  on  promoting  and  assuring  the  sustainability  of  the  ‘One 
Society’ strategy are still not fully implemented. 

The  National  Strategy  for  Inter-culturalism  and  Social  Cohesion  2024-2026,  published  in 
2024, is still pending adoption by Parliament. 

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

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

Roma 

The legal and institutional framework on Roma is in place, yet Roma people continue to face 
discrimination. 

North  Macedonia  has  made  satisfactory  progress  on  Roma  inclusion,  implementing  the 
strategy  for  2022-2030.  The  Minister  without  portfolio  in  charge  of  integrating  and 
implementing the Strategy for the Inclusion of Roma 2022-2030 was appointed as National 
Coordinator  and  National  Contact  Point  for  Roma  Inclusion  in  North  Macedonia.  However, 
the  strategy  lacks  a  clear  approach  to  participation,  empowerment  and  capacity  building. 
Interinstitutional  cooperation  remains  at  a  low  level.  The  action  plan  for  Roma  women  and 
girls’  rights  is  being  implemented  to  a  moderate  extent.  Outstanding  challenges  include 
irregular  school  attendance,  street  children  and  segregation  in  schools.  The  government 
remains committed to the priorities of the Poznan Declaration, but implementation needs to 
be significantly improved and action plans for 2025-2026 need to be adopted. 

Citizenship rights 

North Macedonia needs to adapt its legislative framework to the EU acquis on EU citizenship 
rights, with the aim of full alignment ahead of accession. This should include carrying out an 
analysis  of  the  alignment  and  implementation  needs  arising  from  Directive  2004/38/EC 
across all policy areas affected, and planning timely alignment accordingly. 

North  Macedonia  allows  the  acquisition  of  citizenship  of  special  economic  interest.  The 
Commission  maintains  the  view,  as  expressed  in  the  visa  suspension  mechanism  reports 
that  the  law’s  implementation  should  not  lead  to  the  systematic  granting  of  citizenship  in 
return for investment, as it may be used to bypass the EU short-stay visa procedure and the 
in-depth  assessment  of  individual  migratory  and  security  risks.  The  absence  of  the 
systematic  granting  of  citizenship  based  on  special  economic  interest  is  also  needed  to 
ensure  compliance  with EU  law. In  2024,  economic  citizenship  was  granted to  two  Turkish 
nationals and in 2025 to one national of Bosnia and Herzegovina. 

2.2.2  Chapter 24: Justice, freedom and security 

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

Fight against serious and organised crime 

The legal framework on serious and organised crime is partially aligned with the EU acquis, 
and  further  progress  is  needed.  The  capacity  to  fight  against  serious  and  organised  crime 
needs to be improved. 

Legal alignment, strategic and institutional frameworks 

North  Macedonia  is  partially  aligned  with  the  EU  acquis  in  the  fight  against  serious  and 
organised crime and has in place several strategic documents based on the corresponding 

42 

 
 
EU strategies. The new national Serious and Organised Crime Threat Assessment (SOCTA) 
2025  was  presented  in  June  2025.  On  29  July  2025,  Parliament  adopted  the  Law  on  the 
Ministry of Interior and amendments to the Law on Police.  

The  Ministry  of  Interior  has  an  Integrity  Plan  (2023-2025)  and  an  action  plan.  A  second 
annual  report  on  their  execution  was  issued  at  the  end  of  2024,  indicating  a  high 
implementation rate, with all training, controls and other activities performed. A Department 
for  Internal  Control,  Criminal  Investigations  and  Professional  Standards  operates  in  the 
ministry. In addition, a unit for corruption cases exists within the Department for Suppression 
of Organised Crime, Bureau for Public Safety, in the Ministry of Interior. 

Regarding  the  institutional  framework,  the  National  Coordination  Centre  for  the  Fight 
against Organised Crime is operational, but more of its resources should be devoted to the 
fight  against  serious  and  organised  crime  should  be  intensified.  The  investigative  centres, 
which  are  integrated  into  several  public  prosecutors’  offices,  continue  to  suffer  from 
insufficient  human  and  financial  resources,  and  lack  appropriate  access  to  the  necessary 
databases, professional training courses and equipment. 

The  2018  reform  in  the  security  and  intelligence  sector  resulted  in  the  creation  of  the 
National Security Agency (NSA), a counterintelligence service separate from the Ministry of 
Interior,  and 
for  authorised 
the  Operational  Technical  Agency  (OTA),  responsible 
surveillance of communications. To ensure the agencies’ full independence, the NSA should 
not remain within the Ministry of Interior’s premises, while the OTA should not remain in the 
same  premises  as  a  national  telecommunications  operator.  Proper  financial  and  human 
resources have to be secured to ensure the proper functioning of the OTA.  

On the prevention of money laundering, North Macedonia is expected to align with the EU 
acquis.  

An  asset  recovery  office  (ARO)  has  been  functional  since  2018.  Further  implementing 
legislation and standard operational procedures regulating in detail its functioning should be 
adopted.  However,  sufficient  human  and  financial  resources  should  be  secured  to  make  it 
fully operational. 

The  Agency  for  Management  of  Confiscated  Property  (AMCP)  was  to  have  recruited 
sufficient  personnel  to  ensure  its  full  functioning  by  June  2025,  in  line  with  North 
Macedonia’s  Reform  Agenda.  However,  the  Agency  still  lacks  sufficient  staff  and  financial 
resources,  storage  facilities,  equipment  and  budget,  and  an  effective  case  management 
system, so it is not fully operational. 

On  cybercrime,  Parliament  has  not  yet  ratified  the  Second  additional  protocol  to  the 
Cybercrime Convention. No progress was made over the reporting period on alignment with 
the  EU  acquis  on  child sexual  abuse and  exploitation.  The strategy  for  the  fight  against 
trafficking  of  children  (2021-2025)  needs  to  be  aligned  with  the  Lanzarote  Convention  and 
the EU legislation on child sexual abuse and exploitation.  

The  legal  framework  on  trafficking  in  human  beings  is  only  partially  aligned  with the  EU 
acquis.  It  should  be  amended  to  align  with  the  Directive  on  preventing  and  combating 
trafficking in human beings and protecting trafficking victims and the revised Directive which 
entered  into  force  in  July  2024.  A  new  National  Coordinator  of  the  Commission  for 
Combating  Trafficking  in  Human  Beings  and  Illegal  Migration  was  appointed  in  November 
2024. The Commission held its first meeting in February 2025. 

The regulatory framework concerning small arms and light weapons, including on marking 
and  alarm  and signal  weapons,  is still  not  completely  harmonised  with the  EU  acquis.  The 
existing  law  on  weapons  needs  to  be  amended  by  December  2025  in  accordance  with 
commitments under the Reform Agenda. . In April 2025, Parliament adopted amendments to 
the  Law  on  misdemeanours  against  public  order  and  peace,  prohibiting  the  usage  of 
pyrotechnics and explosive materials indoors. The firearms focal point within the Ministry of 

43 

 
 
Interior  is  still  not  fully  operational.  In  September  2025,  the  destruction  of  over  100 
confiscated  firearms  and  1  000  rounds  of  confiscated  ammunition,  and  other  weapon 
components  took  place.  It  is  the  first 
destruction since 2023.  

Implementation  and  enforcement 
capacity 

its 

continues 
record 

to 
North  Macedonia 
in 
track 
develop 
prosecuting  cases  of  organised 
crime. The number of investigations, 
final 
final  court  decisions  and 
the 
convictions 
number  of  indictments  fell  in  2024 
(compared with 2023). 

increased,  while 

operational 

of 
capacity 
The 
fighting 
structures  responsible 
for 
organised  crime  needs 
to  be 
improved.  Particular  attention  needs 
their 
to  be  given 
budget, 
to 
databases, staffing and training, and 
to 
legislative  harmonisation  with 
European and international standards.  

equipment,  access 

increasing 

to 

Financial investigations remain an area of weakness for North Macedonia and needs to be 
promptly  improved.  North  Macedonia  reported  that  only  18  financial  investigations  were 
conducted  in  parallel  with  organised  crime  and  money  laundering  cases  in  2024.  In 
September 2025, the establishment of the National Council for Financial Investigations and 
Asset Confiscation was approved. The new coordination body will be chaired by the Deputy 
Prime Minister for Good Governance Policies.  

North Macedonia should strengthen its capacities to seize and confiscate assets. The level 
of asset seizures slightly increased in 2024 compared with 2023. North Macedonia reported 
about EUR 6 million worth of seized assets (compared with EUR 4 million in 2023). Progress 
was made on asset confiscation: more than EUR 5 million worth of assets were confiscated 
in 2024, compared with EUR 0.5 million in 2023. 

North  Macedonia  continues  to  implement  its  national  strategy  on  combating  trafficking  in 
human beings and illegal migration (2021-2025), which is in line with the corresponding EU 
strategy. 

transmitted 

Operational  cooperation  with  Europol  remains  at  a  good  level.  The  number  of  messages 
exchanged marks  a slight  increase in comparison with the  previous  reporting  period,  while 
the  number  of  cases  initiated  on  bilateral 
and  multilateral  bases  almost  doubled  in 
the  same  period.  In  both  instances,  data 
was 
the  Secure 
Information Exchange Network Application 
(SIENA).  In  the  reporting  period,  relevant 
national  authorities:  (i)  participated  in joint 
investigation  teams  for  counterfeit  euros, 
led by Europol and Serbia; (ii) contributed 
to  analytical  products  developed  by 
in 
(iii) 
Europol; 

participated 

through 

and 

44 

 
 
operational meetings and operational actions organised by Europol. 

As part of the European Multidisciplinary Platform against Criminal Threats (EMPACT), the 
relevant  national  institutions  took  part  in  94  operational  actions,  with  North  Macedonia  co-
leader in six of them. North Macedonia should make greater use of resources from the EU 
Agency  for  Law  Enforcement  Training  (CEPOL)  and  revise  the  working  arrangement  to 
strengthen  its  cooperation  with  the  Agency.  North  Macedonia  should  integrate  the 
knowledge and competencies gained at CEPOL’s trainings into the national law enforcement 
training system. 

In  2024,  there  were  12  registered  crimes  related  to  online  child  sexual  exploitation; 
investigations led to the indictment of 10 individuals. 

A  legal  and  institutional  framework  for  addressing  gender-based  violence  has  been 
established.  There  are  mechanisms  in  place  for  prevention,  protection  and  support  for 
victims  of  gender-based  violence,  including  temporary  accommodation  services  for  victims 
and  their  relatives.  The  capacities  of  law  enforcement  agencies  and  other  involved 
institutions need to be strengthened. 

Cooperation in the field of drugs 

The legal framework for cooperation in the field of drugs needs to be improved. 

Legal alignment, strategic and institutional frameworks 

The Law on the control of drugs and psychotropic substances is not fully aligned with the EU 
acquis or international standards. The country’s national strategy against drugs, covering the 
period  from  2021  to  2025,  is  aligned  with  the  EU  strategy.  There  is  no  action  plan  to 
implement the strategy for 2024-2025. Preparations for the new strategy should be stepped 
up, based on an evaluation of the current strategy. 

The  Inter-ministerial  Commission  for  Narcotic  Drugs,  responsible  for  coordinating  activities 
against  illegal  production,  trafficking  and  use  of  drugs,  is  still  not  functional.  The  National 
Drugs  Observatory,  based  within  the  Ministry  of  Health,  continues  to  suffer  from  a  lack  of 
sufficient  resources,  which  affects  its  operational  capacity  to  perform  daily  drug monitoring 
tasks. 

An  early  warning  system  for  rapid  exchange  of  data  on  new  psychotropic  substances  has 
not  been  established  yet.  Although  a  national  early  warning  system  coordinator  was 
nominated in 2016, a limited number of activities have been observed. 

A  new  working  arrangement  between  the  EU  Drugs  Agency  (EUDA)  and  the  competent 
national  authorities  should  be  concluded.  The  exchange  of  data  with  EUDA  and  national 
representation  in  EUDA-organised  events  deteriorated.  Strengthening  cooperation  with 
EUDA should be prioritised, as it is key for the renewal of the working arrangement. 

Implementation and enforcement capacity 

Under  the  EMPACT  framework,  North  Macedonia’s  competent  law  enforcement  agencies 
took  part  in  two  operational  action  plans  on  illicit  drug trafficking,  one relating  to  cannabis, 
cocaine, heroin, and the other on synthetic drugs and precursors. 

45 

 
 
International police cooperation in the fight against drug trafficking continued at a good level 
in  2024.  Regular  exchanges  of  information  took  place  with  Europol,  INTERPOL  and  the 
Southeast European Law Enforcement Centre (SELEC). 

The  level  of  drug  seizures  and  confiscations  slightly  increased  but  remained  very  low.  in 
2024.  On  15  September  2025,  the  Agency  for  Management  of  Confiscated  Property 
destroyed  more  than  4,000  tonnes  of  marijuana,  18,000  marijuana  plants,  79  kilograms  of 
flower,  and  more  than  21  kilograms  of  other  drugs,  including  amphetamines,  cocaine,  and 
heroin,  confiscated  in  the  course  of  already  concluded  criminal  proceedings.  It  is  the  first 
destruction since 2023.  

Fight against terrorism and prevention of radicalisation and violent extremism 

The  legal  framework  for  the  fight  against  terrorism  is  partially  aligned  with  the  EU  acquis. 
The fight against terrorism and violent extremism is at a satisfactory level. 

The legal framework for critical infrastructure protection and the resilience of critical entities 
is not aligned with the EU acquis. The protection of critical infrastructure and the resilience of 
critical entities needs to be improved.  

Legal alignment, strategic and institutional frameworks 

Since  the  dismissal  of  the  previous  leadership  of  the  National  Committee  for  Countering 
Terrorism and Prevention of Violent Extremism of North Macedonia and the assignment of a 
new  National  Coordinator  in  July  2024,  the  Committee  has  been  functioning  without 
deputies.  This  can  have  a  negative  effect  on  the  proper  performance  of  the  coordination 
body. The Committee’s first constitutive meeting was held in March 2025. 

The  country  has  a  national  strategy  on  countering  terrorism  and  a  national  strategy  on 
countering violent extremism, both covering the period from 2023 to 2027 and accompanied 
by action plans for their implementation. 

No  referral  mechanism  for  preventing  and  countering  violent  extremism  and  radicalisation 
exists in the country.  

North Macedonia has no law in force on the protection of critical infrastructure/the resilience 
of critical entities and should step up efforts to align with the EU acquis, particularly the EU 
Directive on the resilience of critical entities. 

Implementation and enforcement capacity 

The  level  of  risk  from  terrorism  is  considered  low.  North  Macedonia  implements  activities 
under the Joint Action Plan for Countering Terrorism in the Western Balkans and its bilateral 
agreement.  The  National  Committee  submits  reports  on  the  implementation  of  these 
activities. 

In December 2024 and January 2025, the country’s law enforcement agencies demonstrated 
positive  results  in  the  fight  against  terrorism  and  radicalisation  by  dismantling  two  terrorist 
cells spreading jihadi propaganda online and threatening to commit terrorist attacks against 
soft targets. 

The  country  applies  a  national  plan  for  reintegration,  resocialisation  and  rehabilitation  of 
foreign terrorist fighters and their family members. Involvement is on a voluntary basis. 

Measures  to  prevent  and  counter  violent  extremism  are  implemented  at  local  level  by  six 
community  action  teams  and  ten  local  multidisciplinary  teams  and  the  local  preventative 
councils. There continues to be a need for a proper legislative framework setting out in detail 
the division of powers, tasks and responsibilities between local and central level actors. 

Radicalisation  in  prisons  remains  an  issue,  despite  the  existence  of  a  strategy  on  the 
penitentiary  system  (2021-2025),  which  includes  measures  against  prison  radicalisation. 
Individuals convicted of terrorist offences have been observed interacting with other inmates. 
This  increases  the  risk  of  regular  inmates  being  radicalised  and  of  links  being  forged 

46 

 
 
between  terrorism  and  organised  crime.  Close  monitoring  by  the  security  services  is 
required. Moreover, law enforcement agencies should be more actively involved in the pre- 
and post-release processes of individuals convicted of terrorist offences radicalised while in 
prison. 

Online radicalisation remains one of the most prevalent forms of radicalisation.  To respond 
properly,  the  security  agencies  of  North  Macedonia  have  to  be  adequately  financed, 
equipped, supplied with human resources, and trained professionally. 

11  foreign terrorist fighters  are  serving  their  sentences in a prison  in  North Macedonia.  No 
repatriation has been performed during the reporting period. 

Judicial cooperation in criminal, civil and commercial matters 

limited  progress  on 
There  was 
judicial  cooperation  in  civil  and 
criminal 
Judicial 
matters. 
cooperation  in  civil  and  criminal 
matters needs to be improved with 
EU  Member  States,  the  European 
Public  Prosecutor’s  Office  (EPPO) 
and Eurojust.  

The  legal  framework  for  judicial 
cooperation  in  civil  and  criminal 
matters is partially aligned with the 
EU  acquis 
that 
the  extent 
to 
alignment is already possible.  

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

Progress was limited on the legal framework for cooperation in civil and commercial matters. 
The  Law  ratifying  the  Hague  Convention  of  30 June  2005  on  Choice  of  Court  Agreements 
was adopted during the reporting period and ratified on 21 November 2024. The Convention 
entered into force for North Macedonia on 1 March 2025. 

the 

North Macedonia needs to further 
improve 
timeliness  and 
efficiency  of  the  processing  of 
requests, 
judicial 
particularly 
legal 
assistance in criminal matters.  

cooperation 

mutual 

with 

active 

in 
despite 

Eurojust 
Cooperation 
continues.  North  Macedonia’s 
Eurojust  Liaison  Prosecutor  has 
facilitating 
been 
still 
investigation 
operating  from  the  country  The 
government  has  still  not  ensured 
the  necessary 
the 
liaison prosecutor to become fully operational. North Macedonia has a working arrangement 
with the European Public Prosecutor’s Office. North Macedonia participated in 41 new cases 
at Eurojust between March 2024 and July 2025: most of these cases are related to money 
laundering, fraud and drug trafficking; almost half (18) of them were opened at the request of 
the Liaison Prosecutor. Three joint investigation teams (JITs) are currently operating, out of 
which one is supported by Eurojust. 

funds 

for 

Legal and irregular migration 

47 

 
 
The legal framework for the management of legal and irregular migration is partially aligned 
with the EU acquis. The management of legal and irregular migration needs to be improved. 

Legal alignment, strategic and institutional frameworks 

and 

North Macedonia has expiring strategic documents in place on migration, including the 2021-
for 
2025  national  strategy 
border 
integrated 
management 
its 
accompanying  action plan  for 
2022-2025, and the resolution 
on  migration  policy  for  2021-
2025.  Preparations 
the 
post-2025  strategies  need  to 
be  prioritised  and  based  on 
an  evaluation  of  the  ongoing 
ones.  

for 

The  country  continues 
to 
actively  manage  mixed 
migration 
legal 
framework  is  broadly  in  line 
with European standards. 

flows.  The 

The  Law  on  the  work  and  employment  of  foreigners  and  legislation  on  the  right  to  family 
reunification should be further aligned with the EU  acquis. North Macedonia should ensure 
that  legal  pathways  developed  towards  third  country  nationals  prevent  irregular  secondary 
movements to the EU.  

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. 

Implementation and enforcement capacity 

Arrivals  from  Syria  fell  in  2024,  and  arrivals  from  Afghanistan  and  Morocco  steadily 
decreased.  However,  arrivals  from  Egypt  are  increasing.  Cases  of  migrant  smuggling 
increased in 2024, and the number of smuggled migrants detected in 2024 also decreased if 
compared with 2023. 

Systematic  migrant  registration  and  protection-sensitive  profiling  remains  a  priority.  The 
fragmentation of tasks across institutions, particularly the Ministry of Interior and the Ministry 
of Social Policies and Youth, makes migration management less effective. 

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

The  registration  of  apprehended  irregular  migrants  continues  to  improve  significantly,  with 
support  from  the  European  Border  and  Coast  Guard  Agency  (Frontex).  North  Macedonia 
needs  to  continue  to  step  up  the  fight  against  migrant  smuggling,  including  through 
international cooperation. 

North Macedonia continues to implement readmission agreements with EU countries. It has 
an  agreement  with  the  EU  and  protocols,  further  facilitating  its  implementation,  with  11 
Member  States,  and  bilateral  readmission  agreements  with  8  non-EU  countries.  North 
Macedonia needs to make progress in establishing practical cooperation on returns of third 
country  nationals  with  countries  of  origin  and  actively  step  up  engagement  with  these 
countries.  

48 

 
 
The arbitrary detention of irregular migrants at 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  decreased  in  2024.  Effective  judicial  control  over 
detention practices is lacking, and detained migrants benefit only from legal counselling and 
assistance  in  the  asylum  procedure.  Living  conditions  for  asylum  seekers  remain 
unsatisfactory. 

North Macedonia takes part in the Global Alliance against Migrant Smuggling and is invited 
to  renew  its  engagement  at  the  occasion  of  the  Global  Alliance's  second  conference 
scheduled to take place end of 2025. 

Asylum 

The legal framework on asylum is partially aligned with the EU acquis. The management of 
asylum needs to be improved. 

Legal alignment, strategic and institutional frameworks 

While  the  Law  on  asylum  is  partially  aligned  with  the  EU  acquis,  the  quality  of  asylum 
procedures remains a concern. 

no 

further 
There  were 
developments 
legislative 
during  the  reporting  period. 
As  a  result,  previously  raised 
concerns  remain  valid.  The 
personal 
of 
absence 
identification  numbers 
for 
asylum  seekers  remains  a 
critical 
their 
systematic  access  to  rights 
such 
employment, 
opening  a  bank  account  or 
education 
ID 
issued 
cards 
immediately  after  an  asylum 
application  is  submitted  and 
are not machine-readable, in contrast with documents issued to other non-nationals. 

certificates. 
not 

barrier 

are 

as 

to 

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

the 

interpretation 
throughout 
procedure 
issue. 

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

under 

49 

 
 
 
The third generation of the Roadmap for Cooperation agreed between the European Union 
Agency for Asylum (EUAA) and North Macedonia for 2025-2027 was endorsed and remains 
a  key  tool  to  strengthen  the  asylum  and  reception  system.  Cooperation  with  the  EUAA  is 
satisfactory. Reception conditions, including for asylum seekers with special needs, need to 
improve. 

Implementation and enforcement capacity 

North Macedonia remains a transit country. For the first time since 2016, in 2024 six people 
were  granted  refugee  status.  Asylum  applications  in  the  country  remain  low.  In  2024,  334 
asylum  applications  were  submitted,  compared  with  604  in  2023.  The  low  number  of 
processed asylum seekers is largely due to restricted access to the procedure, compounded 
by  irregular  returns  to  Greece  following  inadequate  screening  and  poor  integration 
prospects. There was a significant rise in applications for asylum by nationals of Egypt, while 
the highest numbers continued to be for Syrians, followed by Morocco and Iraq. According to 
Eurostat,  in  2024,  3  375  nationals  of  North  Macedonia  applied  for  asylum  in  the  EU-27, 
compared with 6 760 (in 2023). 

The prevailing perception of North Macedonia as merely a transit country continues to hinder 
investment  in  the  asylum  system.  Institutional  reluctance  to  ensure  access  to  the  territory 
and  asylum  procedures  remains  a  challenge.  Instead,  the  focus  remains  on  returning 
individuals to Greece through an irregular process that lacks safeguards, including the right 
to appeal. North Macedonia should immediately suspend these returns without a framework 
and/or  a  readmission  agreement  with  Greece.  Effective  screening  at  arrival  is  not  in  place 
because the tools designed to identify and refer individuals with potential protection needs or 
vulnerabilities are underutilised. 

Implementation  of  the  asylum  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, with an average duration 
of one to two years. 

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. 

Asylum-seeking  children’s  enrolment  in  primary  education  continued  as  provided  for  under 
the Law on primary education, but not always immediately after arrival. The same provision 
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 seventh report under the Visa Suspension Mechanism of 2024 concluded 
that  North  Macedonia  continued  taking  action  to  address  the  Commission’s  previous 
recommendations.  Progress  should  be  made  to  remove  the  visa  waiver  for  citizens  of 
Türkiye. 

Schengen governance and external borders 

The  legislative  and strategic  framework  for  the management  of  external  borders  is  partially 
aligned with the EU acquis. The management of borders needs to be improved.  

Legal alignment, strategic and institutional frameworks 

50 

 
 
Given  the  need  to  reinforce  and  establish  solid  foundations  for  the  Schengen  system,  it  is 
necessary to continue strengthening the national Schengen governance by establishing the 
Schengen Action Plan covering the whole Schengen framework 

As  of  September  2025,  133  members  of  the  European  Border  and  Coast  Guard  standing 
corps  are  deployed  at  Skopje  Airport  and  North  Macedonia’s  borders  with  Greece  and 
Serbia under Frontex Joint Operation North Macedonia, which is being implemented on the 
basis of the status agreement between North Macedonia and the European Union. Un 

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

Parliament extended the state of crisis on all borders until the end of 2025, due to a high risk 
of  increased  influx  and  transit  of  migrants  and  allowed  the  deployment  of  the  army  on  all 
borders.  

Implementation and enforcement capacity 

Cooperation with the competent border services of Albania, Bulgaria, Kosovo* and Serbia is 
in  line  with  the  Schengen  catalogue  of  recommendations  and  best  practices.  North 
Macedonia  established  joint  (one-stop)  border-crossing  points  with  Kosovo  and  Serbia  to 
simplify and facilitate movement of people, vehicles and goods. 

Counterfeiting of the euro (criminal law aspects) 

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. 

  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. 

51 

 
 
 
 
2.3. ECONOMIC CRITERIA 

2.3.1. The existence of a functioning market economy 

Economic governance 

The  government  did  not  progress  on  key  reforms.  The  government  delayed  fiscal 
consolidation  plans  and  postponed  full  implementation  of  the  2023  organic  budget  law 
(OBL)5,  originally  planned  for  2025.  A  new  department  for  public  investment  management 
(PIM)  was set  up  in  2024,  and  the  decree  governing  PIM  procedures  was  adopted  in April 
2025  after  significant  delay.  The  government  suspended  direct  subsidies  to  the  domestic 
electricity  producer,  ESM,  but  replaced  them  with  large  guarantees  for  commercial  bank 
loans  and  took  on  new  spending  commitments  that  required  a  supplementary  budget. 
Regarding  the  EU’s  macro-financial  assistance  (MFA),  the  government  has  not  expressed 
an  interest  in  implementing  the  second  and  final  tranche  and  the  related  reforms. In 
November, the IMF’s two-year precautionary and liquidity line (PLL) expired. In line with PLL 
commitments,  the  country  progressed  on  fiscal  and  structural  reforms,  bolstered  fiscal 
governance  through  the  adoption  of  the  OBL  and  reduced  external  imbalances  during  the 
PLL period. However, it did not fulfil some other commitments, in particular regarding timely 
assessment  of  fiscal  risks  from  public  works  on  Road  Corridors  VIII  and  Xd  as  well  as  a 
budget revision that substantially lifted the planned budget deficit against the PLL target. 

Implementation  of  the  policy  guidance  agreed  at  the  May  2024  Economic  and 
Financial  Dialogue  has  been  limited.  The  government  did  not  meet  the  original  fiscal 

5 The OBL, passed by Parliament in September 2022 and supposed to enter into force in its entirety by 1 January 
2025, introduces fiscal rules and a Fiscal Council, and strengthens the medium-term budget procedure. 

52 

Table 19:202220232024North Macedonia - Key economic figuresGDP per capita (% of EU-27 in PPS)1)41424142Real GDP growth1.82.82.12.8Activity rate of the population aged 15-64 (%), total65.466.465.466.0      female52.854.454.755.7      male77.678.476.076.2Unemployment rate of the population aged 15-64 (%), total2)19.614.513.212.5      female19.112.611.411.2      male19.915.914.413.4Employment of the population aged 15-64 (annual growth %)2)1.1-0.1-0.20.6Nominal wages (annual growth %)4.911.115.312.9Consumer price index (annual growth %)1.314.19.43.5Exchange rate against EUR61.5861.6261.5661.53Current account balance (% of GDP)-2.0-6.10.4-2.3Net foreign direct investment, FDI (% of GDP)3.14.93.37.1General government balance (% of GDP)-3.6-4.3-4.6-4.4General government debt (% of GDP)43.749.749.853.8Notes:1) Eurostat2) In 2023, the implementation of a new regulation caused changes in the survey affecting     the scope and definition of employment and unemployment.     This caused an interruption of the time series of data, restricting comparability with previous data.Sources: State Statistical Office, National Bank of North Macedonia, Ministry of Finance and Eurostat2016-21 average 
 
 
 
target in 2024. Public-sector wages were raised in the course of the year beyond the original 
budgeted funds, and pensions were raised in September 2024 and again in March 2025, in 
a linear way rather than by indexation. The 2025 budget does not comply with the new deficit 
rule,  the  application  of  which  has  been  postponed  to  2027,  one  year  later  than  originally 
planned.  The  government  did  not  initiate  any  measures  eliminating  tax  exemptions.  It  has 
not yet adopted the draft law on public-private partnerships. 

Macroeconomic stability 

increased 

Economic  growth  strengthened  in  2024,  despite  muted  external  demand.  After  a 
significant  growth  slowdown 
in 
2023,  annual  real  GDP  growth 
picked  up  in  2024,  from  2.4%  in 
the first half to 3.1% in the second 
half.  For the  year  as  a whole,  real 
GDP 
2.8%, 
compared  with  an  average  growth 
rate  of  1.7%  over  2019-2023. 
Economic  activity  was 
largely 
driven  by  investment  and  public 
consumption,  with  the  latter  partly 
reflecting  a  strong  rise  in  public-
sector  wages.  Gross 
capital 
formation  increased  by  8.9%  in 
2024,  following  a  steep  decline  in 
2023,  signalling  the  end  of  a  prolonged  drawdown  of  inventories.  Household  consumption 
growth picked up too, helped by an increase in real disposable incomes. The contribution of 
net exports to growth turned negative due to slowing exports, largely reflecting the weakness 
in the main European trading partners.  Convergence with EU income levels remained very 
slow,  with  real  GDP  per  capita  in  purchasing  power  standards  increasing  from  40%  of  the 
EU-27 average in 2017 to 43% in 2021 and then dropping to 42% in 2024. 

by 

The  country’s  external  position 
deteriorated somewhat. After a small 
surplus in 2023 driven by the decline in 
energy  prices, 
the  current  account 
balance slipped back into deficit during 
2024 (to 2.3% of GDP), on the back of 
a  deterioration 
the  merchandise 
in 
trade  deficit  (down  3 pps  to  20.1%  of 
GDP)  and  a  lower  surplus  in  the 
income  balance.  The 
secondary 
primary  income  deficit  widened.  This 
together more  than  offset the  increase 
in  the  services  trade  surplus,  which  is 
increasingly  driven  by  the  contribution 
of professional, technical and scientific services. Foreign direct investment rose by 4.2 pps to 
7.1% of GDP in 2024, well above its average in the preceding five years (4.0%), and hence 
exceeding the current account deficit by a large margin. The economy remains vulnerable to 
a  potential  renewed  surge  in  energy  prices,  given  its  high  energy  intensity  and  heavy 
reliance on imported energy. Foreign reserves were boosted by two large government loans 
from  Hungary  of  EUR 1  billion,  half  of  which  was  earmarked  for  refinancing  a  Eurobond 
maturing  in  January  2025.  Foreign  reserves  stood  at  4.8  months  of  prospective  imports  of 
goods and services at the end of June. Gross external debt increased by 3.3 pps in 2024, to 
79.8% of GDP. The increase was due to a rise in both general government foreign borrowing 

53 

 
 
and intercompany lending. The structure of gross external debt, dominated by long-term and 
fixed-rate financing, posed limited risk. 

Inflation  surged  again  in  late  2024.  Inflation  slowed  to  3.5%  on  average  in  2024,  down 
from  9.4%  in  2023.  This  reflected  mainly  the  drop  in  global  commodities  prices,  and  a 
gradual,  albeit  slow,  abatement  in  second-round  effects  of  high  energy  and  food  prices  on 
other  domestic  sectors. However,  headline  inflation  has  been  rebounding  since  September 
2024, driven by rising food prices, despite the government’s temporary price controls which 
include limits on gross profit margins of basic food products. Headline inflation stood at 4.4% 
in August 2025. Core inflation remained sticky amid rising labour costs. 

The  central  bank  started  to 
ease  monetary  policy.  The 
central  bank  lowered  the  key 
policy rate in several steps as of 
September 2024, from 6.30% to 
2025. 
5.35% 
in  February 
overall 
Nevertheless, 
stance 
monetary 
remained 
cautious, 
acknowledging 
that  domestic 
risks  to  inflation  are  increasing, 
in  particular  from  high  nominal 
wage growth. 

the 
policy 

Fiscal consolidation has been delayed. The 2024 fiscal deficit turned out at 4.4% of GDP, 
higher  than  the  initial  plan6  but  lower  than  the  revised  projection  (4.7%),  on  the  back  of  a 
large  budget  revision  and  subsequent  additional  rebalancing  which  cut  funds  for  capital 
expenditure. Capital expenditure was reduced by 17.3% and current expenditure was raised 
by 9% to fund: (i) the repayment of arrears; (ii) public-sector wage increases; (iii) higher than 
anticipated transfers to the health fund and to local government units; and (iv) new spending 
priorities,  in  particular  the  linear  pension  increase.  The  wage  bill  therefore  rose  by  0.5 pps 
year-on-year to 4.6% of GDP, while transfers to the pension fund increased by 1 pp. to 11% 
of GDP. Capital expenditure implementation remained significantly below the revised target 
(77%), amounting to 3% of GDP.7 The government expects a boost to revenue in 2025 and 
beyond  from  measures  to  formalise  the  informal  economy  and  the  expected  increased 
effectiveness of  the  Public  Revenue Office  (PRO) through  digitalisation.  A  budget revision, 
adopted by the Parliament in July, did not raise the 2025 deficit target (4% of GDP), but lifted 
projections  for  both  revenue  and  spending,  the  latter  to  account  for,  in  particular,  further 
linear  increases  in  pensions,  a  rise  in  public  sector  wages,  and  additional  projects  by 
municipalities.  

Progress  on  bolstering  the  fiscal  framework  has  been  mixed.  Against  the  backdrop  of 
the postponement of full implementation of the 2022 OBL and of the new deficit rule, which 
weakened  the  fiscal  framework,  the  new  Fiscal  Council,  in  line  with  the  OBL  provisions, 
published  its  opinion  on  the  October  2024  Medium-term  Fiscal  Strategy.  The  government 
published a fiscal policy statement in September 2024, also as required by the OBL, and in 
April  2025  it  adopted  the  Fiscal  Strategy  2026-2030.  Fiscal  governance  suffers  from  a 
deterioration  in  the  quality  of  statistical  data.  Revisions  of  national  accounts  data  have 
increased  in  number  and  in  size.  Moreover,  fiscal  data  remains  partial,  with  large  parts  of 
public entities excluded, and does not reflect the ESA2010 standards. 

6 The original fiscal deficit for 2024 was projected at 3.4% of GDP, in line with the previous government’s plan for 
fiscal consolidation, which was to achieve a deficit of 3% in 2026 in line with the new fiscal rules. 
7 Including the Public Enterprise for State Roads (PESR), which by the ESA2010 rules should be accounted for 
under the general government, capital spending was around 6.6% of GDP in 2024. 

54 

 
 
 
The  cumulative  rise  in  public  debt  levels  over  the  last  five  years  raises  concerns. 
Public debt increased by 4.3 pps y-o-y to 62.4% of GDP in 2024, significantly above its level 
of  five  years  earlier  (49.2%).  While  the  share  of  external  debt  in  public  debt  has  been 
declining  over  the  past  five  years  (-5.7 pps),  it  remains  high,  at  55.6%.  Overall,  foreign 
currency debt made up 66% of total debt. 91% of the foreign currency debt is in euro, which 
is  significantly  above  the  threshold  set  in  the  public  debt  strategy  (80%).  However,  risks 
stemming  from  exchange  rate  depreciation  are  mitigated  by  the  ‘de  facto’  currency  peg  to 
the euro. 

The policy mix was not fully aligned to meet current challenges arising from inflation 
and fiscal  consolidation needs.  Monetary  policy  started to  ease  cautiously  as of  autumn 
2024, standing ready to tighten again if necessary. However, monetary policy is constrained 
by the peg and weakened by excess liquidity, leaving fiscal policy as the main stabiliser. Yet 
expansionary  fiscal  policies  have  reduced  fiscal  space  and  risk  raising  domestic  price 
pressures.  Furthermore,  through  its  temporary  price  ceilings  for  key  food  categories  and 
caps on retailers’ profit margins, the government contributed to inflation volatility.  

Functioning of product markets 

Business environment 

Long-standing  obstacles  to  doing  business  persist.  The  large  informal  economy, 
accounting  for  as  much  as  38%  of  GDP  according  to  some  estimates8,  undermines  the 
competitiveness of domestic companies. In 2024, the share of the workforce employed in the 
informal  sector  rose  by  1.6 pps  to  12.3%,  according  to  the  State  Statistical  Office. 
Implementation  of  the  government’s  2023  Action  Plan  to  formalise  the  informal  economy 
slowed,  partly  because  of  a  reorganisation  of  responsibilities  in  the  new  government. 
Furthermore, legal certainty in the business environment is hampered by an increase in fast-
track parliamentary procedures, as well as by inconsistent application of regulations. 

State influence on the product market 

Caps on profit margins have only a temporary impact on prices, and State aid control 
remains weak. The government continued to impose temporary price ceilings for key food 
categories  as  well  as  caps  on  retailers’  profit  margins.  Since  2023,  the  government  has 
introduced  these  measures  on  four  occasions,  linking  them  with  public  holidays  when 
consumption spikes9. The latest measure expired on 30 April 202510. However, the impact on 
price levels was not lasting and the capacity of the two institutions responsible for monitoring 
proved insufficient. The transparency and effectiveness of State aid continues to be affected 
by the high number of State aid providers, the lack of an updated registry, and the still limited 
powers of the Commission for the Protection of Competition (CPC) in State aid supervision. 
The  procurement  of  a  management  information  system  connecting  different  institutions  as 
part of setting up a State aid registry has been postponed to 2026. 

Privatisation and restructuring 

The public sector’s stake in the economy is low. In 2024, the number of companies in full 
state ownership remained unchanged compared with the preceding year, at 14. The number 
of  companies  in  partial  ownership  remained  at  38,  most  of  these  with  a  state  ownership 

8 Kelmanson, Kirabaeva, Medina, Mircheva, and Weiss (2019) “Explaining the shadow economy in Europe: size, 
causes and policy options,” Working Paper No. 19/278, International Monetary Fund. 
9 There were two price control mechanisms introduced in the second half of 2024. While both limit retailers’ 
margins, the latest imposes a price cap on some 700 products (at least 10% discount over the lowest price of the 
previous month). The gross profit margin caps also affect producers.  
10 Following a temporary limit in autumn 2024 and a one-month cap from mid-December to mid-January 2025, 
the government on 17 February 2025 introduced graduated caps of 5%, 10% and 15% margin limits in both retail 
and wholesale trade for basic food products until 30 April. 

55 

 
 
 
share  of  below  1%  of  issued  capital11.  The  total  value  of  state  ownership  in  enterprises 
declined,  from  about  10%  of  GDP  in the  preceding  years to 7.7%  in 2024.  While the  state 
ownership is relatively small, economy-wide it has large implications as it is mostly contained 
in  the  network  industries  which  are  critical  for  well-functioning  of  the  rest  of  the  economy. 
SOE  governance remains  weak,  while energy,  railways,  posts,  utilities companies keep on 
creating 
source of large fiscal risks. 
Functioning  of 
market 

losses  and  are 

financial 

the 

the 

and 

The  banking  sector  proved 
resilient 
the 
toolkit  was 
macroprudential 
Financial 
bolstered. 
intermediation 
is  still  relatively 
weak  in  North  Macedonia,  with 
financial  sector  assets  at  some 
87%  of  GDP  at  the  end  of  2024. 
This  is,  however,  above  the  level 
of  five  years  earlier  (79%).  Diversification  is  progressing  slowly,  with  banks  accounting  for 
78%  of  total  financial  sector  assets  at  the  end  of  2023  (2019:  81.4%).  Banks’  capital 
adequacy  ratio  increased  further  to  18.8%  in  the  first  quarter  of  2025,  supported  by  the 
gradual rise in the central bank’s countercyclical capital buffer throughout 2024, amidst solid 
bank profitability. Banks’ return on equity dropped, compared to one year earlier, to 16.6% (-
1.6pps).  Liquidity  in  the  banking  sector  is  high.  At  the  end  of  the  first  quarter  the  share  of 
liquid  to  total  assets,  at  21.4%,  was  above  its  level  of  one  year  earlier.  The  central  bank 
increased reserve requirements to absorb excess liquidity. The ratio of non-performing loans 
in total loans to the non-financial sector dropped to a record low of 2.7% in 2024. The annual 
growth  in  both  deposits  and  bank  lending  to  the  private  sector  picked  up,  in  particular  to 
companies.  

Functioning of the labour market 

The  labour  market  remained  resilient,  although  structural  challenges  persist.  Over 
recent  years,  there  have  been  steady  improvements  in  key  labour  market  indicators.  The 
unemployment  rate  (age  group  15-64)  dropped  gradually,  to  12.5%  on  average  in  2024, 
compared  with  17.1%  five  years  earlier.  The  employment  rate  also  improved  (57.8%, 
compared with 47.5% in 2019). High emigration continues to take its toll on the labour force, 
even  though  in  2024  the  labour  force  decreased  by  much  less  (0.2%)  than  in  2023  (2%). 
Labour  market  participation  rose  to  66%  (2019:  57.3%).  Unemployment  among  young 
people (age group 15-24) remains high, at 29%. The labour market continues to suffer from 
structural  shortcomings  such  as  low  participation  rates,  in  particular  for  women,  and  skills 
mismatches. These are a large obstacle to economic growth. Wage growth remained high, 
fuelled  by  public  sector  wage  agreements  and  a  rise  in  minimum  wages.  Average  gross 
nominal  wages  rose  by  12.9%  in  2024,  somewhat  less  than  in  the  preceding  year,  with 
annual increases further slowing down to 8.5% in June 2025, Real wage growth accelerated 
to 8.8% in 2024 (+3.7 pps y-o-y), winding down to reach 3.8% in June 2025. 

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

Education and innovation 

11 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 in North 
Macedonia, with the government holding a 100% stake in 35 of them. 

56 

 
 
 
The  reform  of  vocational  education  and  training  is  progressing,  while  higher 
education  still  suffers  from  outdated  curricula  and  skills  mismatches  persist. 
Foundational  learning  outcomes  are  weak  and  worsening.  The  OECD’s  latest  Programme 
for  International  Student  Assessment  (PISA)  results  for  North  Macedonia  shows  declines 
across  all  subject  areas.  The  number  of  people  with  higher  educational  attainment  has 
increased,  but  curricula  fail  to  equip  graduates  with  the  necessary  skills  to  match  labour 
demand.  Parliament  adopted  the  new  Law  on  vocational  education  and  training  (VET)  in 
December  2024.  The  law  introduces  several  key  innovations  such  as  formalising  dual 
education  partnerships  between  vocational  institutions  and  employers,  increasing  the 
number of practical training hours in VET and setting the legal framework for establishing a 
network  of  regional  VET  centres.  On  the  digital  transformation  of  the  education  system, 
under the new curriculum for primary education, the subject of technical education and IT will 
be studied in grades 4-9. In April 2025, Parliament also adopted amendments to the Law on 
secondary education, providing for an updated curriculum for secondary education, including 
digital  and  green  skills.  The  new  financing  formulas  for  primary  and  secondary  education 
have been adopted.  Public spending on education and training decreased slightly to 3.2% 
of  GDP  in  2024  (2023:  3.7%),  remaining  below  the  EU  average  of  4.7%.  The  education 
budget  decreased  as  a  share  of  the  overall  state  budget  from  11.7%  in  2023  to  9.2%  in 
2024.  Spending  is  often  inefficient,  focused  on  wages  and  goods  and  services  rather  than 
infrastructure maintenance and investment. Overall investment in research and innovation in 
the country remains very low (2022: 0.38% of GDP) and the private sector’s participation in 
research continues to be marginal. 

Physical capital and quality of infrastructure 

The need to modernise transport infrastructure remains substantial, but investment is 
limited. Works on the key transport project, sections of Trans-European Road Corridors VIII 
and Xd, started after long delays, but their completion has been postponed by two years, to 
2029. Railway construction on Corridor VIII, which would link North Macedonia with Albania 
and  Bulgaria and provide  an  alternative export  option via ports  in  these  two countries,  has 
stalled  due  to contractual  difficulties.  Completing  these  and  other  vital  transport  projects  is 
essential  to  boost  productivity  growth  and  the  competitiveness  of  the  domestic  economy. 
Public  investment  as  a  share  of  GDP,  after  spiking  in  2023,  has  dropped  again.  Overall 
investment,  at  28.4%  of  GDP  in  2024,  also  dropped  compared  with  2023  (31.9%),  but 
remained above the average for the preceding five years.  

The  digitalisation  of  the  economy  is  advancing  slowly.  The  share  of  households  with 
internet  access  at  home  increased  by  11.4 pps  between  2020  and  2024,  to  90.8%.  There 
was  some  progress  in  ICT  infrastructure  development  –  fixed  broadband  was  available  to 
79.6%  of  households  (2019:  70.9%)  at  the  end  of  2023,  below  the  EU  average  (EU  2024: 
93.1%). Digital adoption among SMEs in North Macedonia has accelerated in recent years, 
but remains uneven and largely focused on basic technologies. Smaller companies and rural 
areas  still  face  significant  obstacles  in  obtaining  access  to  broadband.  Several  laws  were 
adopted by the government in May 2025 to spur digitalisation, in line with the Roadmap for 
Digital Transformation from late 2023. 

Measures  to  improve  energy  efficiency  are  delayed.  The  Energy  Efficiency  Fund  is  not 
yet operational, even though its legal basis was created in 2023. Key operational documents 
and  the  setting  up  of  a  joint  Steering  Board  need  to  be  agreed  between  the  Ministry  of 
Finance  and  the  Development  Bank.  In  September,  Parliament  adopted  the  new  Energy 
Efficiency Law, which provides for a range of measures to improve energy efficiency and cut 
greenhouse  emissions,  such  as  a  requirement  for  the  renovation  of  at  least  3%  of  public 
buildings per year and financial support for private energy efficiency investment. 

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 

57 

 
 
renewable  energy  sources  increased  to  55.7%  of  total  capacity  in  2024,  up  from  17%  in 
2021. Renewables accounted for 41% of total electricity production in 2024, up from 22.8% 
in 2021. However, progress on climate change abatement policies is lagging. Adoption of the 
Law  on  climate  change,  which  would  introduce  carbon  pricing  mechanisms,  is  delayed.  A 
newly  adopted  energy  law  harmonises  legislation  in  North  Macedonia  with  the  recently 
adopted  Energy  Community  legislation,  providing  a  legal  basis  for  electricity  market 
integration  and  coupling  with  the  EU.  The  law  also  provides  for  further  development  of 
energy storage. 

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  (67.4%  of  total  value  added  in 
2024,  about  the  same  as  in  2023,  compared  with  60%  in  2019).  The  contribution  of 
manufacturing  (15.3%  of  value  added)  and  construction  (6.6%)  remained  relatively  steady 
over  the  past  five  years.  ICT  is  becoming  an  increasingly  important  sector  for  output  and 
employment. Its contribution to value added rose from 4.1% in 2019 to 5.6% in 2024, while 
the  IT  sector  contributed  3.5%  of  employment  in  2024,  compared  with  1.9%  in  2019.  The 
share of agriculture has declined both in terms of value added (from 9.4% in 2019 to 6.8% in 
2024)  and  employment  (from  13.9%  to  9%  in  the  same  period).  On  employment,  the 
services  sector,  including  trade,  accounted  for  36.8%  of  total  employment  (compared  with 
31.7% in 2019), followed by manufacturing (19.8%, the same as five years earlier) in 2024. 
The share of agriculture declined over the period 2019 to 2024 by 4.9 pps to 9.0%. 

Economic integration with the EU and price competitiveness 

Trade openness decreased but is still at historically high levels. Exports and imports of 
goods and services as a share of GDP dropped further in 2024, to 138.5% (2023:148.7%), 
due to a decrease in both import and export values, but trade openness remains  above its 
five-year  pre-COVID  average  of  120%.  The  share  of  higher  value-added  products  in  the 
export structure rose further in 2024, including chemicals (39% of total goods exports) and 
machinery  and  transport  equipment  (37%).  The  EU  is  the  country's  main  trading  partner, 
accounting for 61.4% of its total trade in goods (2023: 61.8%). 76.9% of North Macedonia’s 
total  goods  exports  went  to  the  EU,  while 
50.5%  of  its  imports  derived  from  there. 
CEFTA, the country’s second biggest trading 
partner,  accounted 
trade 
(2023:10%).  EU  countries  are  also  still  the 
in  North  Macedonia, 
biggest 
accounting  for  44%  of  total  foreign  direct 
investment  inflows  in  2024,  after  a  record 
high  of  69.7%  in  2022.  The  EU-27  share  in 

for  11.1%  of 

investors 

the total stock rose to 67% in 2024, up from 
64.2% in 2021. 

External 
competitiveness 
decreased  slightly.  The  consumer  price 
index-deflated  real  effective  exchange  rate 
(REER),  as  a  measure  of  external 
competitiveness,  depreciated  by  0.1%  in 
2024,  following  an  average  appreciation  of 
1.8% between 2019 and 2023. Nominal unit labour costs rose starkly in 2024, reflecting the 
strong rise in nominal wages in a context of subdued productivity growth. 

price 

58 

 
 
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. 

Institutional set-up and legal alignment 

The  legal  framework  for  public  procurement  is  largely  aligned  with  the  EU  acquis.  An 
addendum to the Law on public procurement (PPL), adopted in February 2025, replaced the 
‘administrative  controls’  with  an  ex ante  administrative  check  of 
existing 
tender 
documentation  and  introduced  changes  to  the  composition  and  functioning  of  the  State 
Appeal  Commission  (SAC).  However, 
for 
professional misconduct during the procurement phase persists, which is not in line with EU 
regulations. In 2024, the Public Procurement Bureau issued 32 negative references against 
31  economic  operators;  18  expired  and  10  were  removed.  By  the  end  of  2024,  only  four 
negative references remained active. 

‘blacklisting’  companies 

the  practice  of 

The process of finalising and adopting the Law on public-private partnership (PPP) continues 
to  be  delayed.  The  responsibility  for  coordinating  PPPs  has  shifted  from  the  Ministry  of 
Economy  to the Ministry  of  Energy,  Mining and Mineral  Resources.  There is  still  a  need to 
establish comprehensive register for PPPs and for concessions. 

Implementation and enforcement capacity 

In  2024,  the  public  procurement  market  amounted  to  8.8%  of  the  country’s  GDP  as 
compared with 10.9% in 2023. Competition in public procurement remains limited. The use 
of negotiated procurement procedures decreased to 1.5% in 2024, as compared with 1.6% 
in 2023. In 2024, the electronic procurement system facilitated 350 small-value procurement 
transactions. 

Despite the development of guidelines for using qualitative award criteria, the application of 
the most economically advantageous tender (MEAT) criterion remains limited. In 2024, only 
1 251  out  of  22 975  procurement  notices  (5.4%)  applied  MEAT  criteria,  a  slight  decrease 
from 5.6% in 2023. In terms of value, in only 5.8% of tenders MEAT criteria were used. It is 
imperative  to  organise  further  training  and  provide  methodological  instructions  on  applying 
MEAT to enhance its adoption. During 2024, six new PPP agreements were concluded. 

The capacity for managing public procurement processes, particularly at the local level, 
requires  further  enhancement  to  ensure  a  coherent  approach  throughout  the  procurement 
cycle.  Smaller  contracting  authorities  continue  to  face  challenges  concerning  the  quality  of 
tender  documentation.  By  the  end  of  2024,  there  were  1 221  certified  public  procurement 
officers, up from 1 142 at the end of 2023. 

The public procurement strategy includes measures to combat corruption and conflicts of 
interest.  However,  the  risk  management  systems  integrated  into  the  procurement  cycle, 
along with reporting on potential corrupt practices or irregularities, need to be improved. Red 
flag reports are published regularly on PPB’s website and are an important development to 
combat corruption. However, follow-up actions remain insufficient. 

The  electronic  procurement  system  continues  to  function  efficiently.  On  1 Apr  2025,  the 
Public  Procurement  Bureau  launched  an  updated  version  of  the  electronic  public 
procurement system. 

Efficient remedy system 

The legislation on the right to legal remedy is largely harmonised with the EU acquis. The 
amendment  to  the  PPL  increased  the  number  of  members  of  the  SAC.  Following  the 

59 

 
 
 
adoption  of  the  addendum,  all  members  of  the  SAC  were  dismissed,  and  new  members 
were  reappointed.  The  implementation  capacity  of  the  SAC  remains  inadequate  given  the 
substantial  number  of  appeals  (1 014  in  2024  compared  with  1 019  in  2023).  Additional 
qualified  staff  are  needed  to  ensure  timely  processing  of  appeals.  In  2024,  85  complaints 
were filed against the decisions of the SAC before the Administrative Court. 

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,  accessibility  and 
statistical  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. 

While the statistical infrastructure continues to be largely aligned with the European acquis, 
the  level  of  human  resources  at  the  State  Statistical  Office  (SSO)  poses  a  significant 
challenge  for  efficient  implementation.  Data  transmission  to  Eurostat  has  improved  during 
the  reporting  period,  notably  in  the  areas  of  national  accounts, sectoral statistics  and  price 
indices. 

On  classifications  and  registers,  the  national  standard  NACE  was  updated  to  align  with 
NACE Rev 2.1 and has started to be implemented since January 2025. 

In the area of macroeconomic statistics, annual and quarterly accounts series have been 
updated  and  improved.  National  Accounts  and  the  compilation  of  Gross  National  Income 
(GNI)  are  based  on  the  European  System  of  National  and  Regional  Accounts  2010  (ESA 
2010) standards. The State Statistical Office (SSO) has continued the regular  transmission 
of GNI and GDP data to Eurostat under the ESA 2010 transmission programme. However, 
further  improvements  are  required,  particularly  the  updating  of  the  GNI  inventory  which 
poses  continuous  work  for  the  SSO.  The  recommendations  from  the  previous  report  have 
not  been  addressed,  as  the  excessive  deficit  procedure  (EDP)  and  government  finance 
statistics (GFS) are still not published. 

Business  and  trade  statistics  continue  to  be  collected  regularly,  especially  short-term 
statistics  for  industry  and  structural  business statistics.  Further  work  is  required  to improve 
data collection and direct reporting on international trade in services. 

As regards social statistics, accuracy increased following revision of intercensal population 
estimates based on the 2021 census results, and improvements were made in transmission 
of labour market statistics. Some progress has been made regarding the survey on Income 
and Living Conditions (EU-SILC) with improved data transmission and the implementation of 
recommendations and guidelines for survey design.  

On agricultural statistics, integrated farm statistics should be completed. Work is ongoing 
to carry out an agricultural census in 2026, based on a pilot census in 2022. 

In  the  area  of  energy  and  environmental  statistics,  forest  accounts  were  transmitted  to 
Eurostat for the first time. 

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) 

PIFC  initiatives  are  embedded  under  pillar  VI  of  the  2025-2028  Public  Finance  Reform 
Programme. The Central Harmonisation Unit (CHU) produced and adopted the annual report 

60 

 
 
on the functioning of Public Internal Financial Controls. Parliament adopted the PIFC law in 
December 2024 after more than four years of parliamentary procedure. 

The implementation of the legal framework on internal control remains broadly aligned with 
international  standards  yet  requires  further  strengthening.  Efficient  implementation  of 
managerial  accountability  is  still  a  challenge  for  budget  users  at  central  and  local  levels. 
Risk management requires further reinforcement. 

Good  progress  continued  on  developing  secondary  legislation  to  implement  the  financial 
inspection  law.  However,  financial  inspection  is  still  not  functioning  efficiently,  due  to  an 
inadequate structure and limited human resources capacity. 

The  internal  audit  function  continues  to  be  undermined  by  fragmentation  and  inadequate 
staffing. By end of 2024, 117 internal audit units were established at public-sector entities at 
central level, employing 118 internal auditors. Internal audit units at central level performed 
132 audits in 2024. The capacity of the Central Harmonisation Unit remains insufficient to 
coordinate,  monitor  and  report  on  the  functioning  of  the  overall  financial  management  and 
internal control system in the public sector. 

External audit 

The new state audit law, aimed to strengthen the State Audit Office’s (SAO) independence 
and  the  role  of  Parliament  in  following  up  individual  audit  reports,  remains  in  government 
procedure. The annual audit report was submitted to Parliament and published in June 2025  

The quality of audit work remains sufficient. In 2024, SAO carried out fully its Audit Work 
Programme  that  envisaged  88  audits.  SAO’s  institutional  capacity  is  still  insufficient.  On 
the impact of audits, SAO’s recommendations continue to be ineffectively implemented by 
the  auditees  and  parliamentary  follow-up  of  individual  audit  reports  still  needs  to  be 
strengthened. By the time of publication of the annual report, auditees had taken measures 
to respond to 85% of 2024 audit recommendations. 

Protection of the EU’s financial interests 

National legislation is largely aligned with the EU Directive on the fight against fraud to the 
EU’s  financial  interests  by  means  of  criminal  law.  However,  the  anti-fraud  coordination 
services require further enhancement, as they continue operating with only three employees. 
In  2024,  national  authorities  reported  34  irregularities  via  the  irregularity  management 
system,  compared  to  four  in  the  previous  reporting  period.  Collaboration  with  the 
European  Commission  Anti-fraud  Office  (OLAF)  on  investigations  and  irregularity 
reporting is crucial for improving the national track record and should continue. 

Protecting the euro against counterfeiting 

National  legislation  is  partially  aligned  with  EU  regulations  that  establish  a  framework  for 
combating euro counterfeiting. The capacities of the national bank and Ministry of the Interior 
must  be  bolstered  further.  The  national  bank  remains  committed  to  delivering  regular 
mandatory training for employees at credit institutions and private cash centres to manually 
verify the authenticity of 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  maintained  its  involvement  in  a  number  of  regional  cooperation 
initiatives  such  as  the  Central  European  Free  Trade  Agreement  (CEFTA),  the  Energy 
Community,  the  Transport  Community,  the  South-East  European  Cooperation  Process 
(SEECP) and the Regional Cooperation Council. 

61 

 
 
 
The  fifth  annual  EU-Western  Balkans  Summit  took  place  in  Brussels  in  December  2024, 
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, participating in both ministerial meetings and hosting a leaders’ meeting 
in Skopje in July 2025. 

On  the  Common  Regional  Market  (CRM),  at  the  Berlin  process  summit  in  London  in 
October 2025, the leaders of the region endorsed a revised and streamlined action plan to 
implement the Green Agenda for the Western Balkans, adopted a Western Balkans Climate 
Adaptation Roadmap and committed to make progress in the promotion of regional mobility 
and 
implementation  of  relevant  regional  agreements  and  CEFTA  decisions.  North 
Macedonia signed the fifth mobility agreement on access to higher education and admission 
to studies in the Western Balkans and adopted the CRM action plan for 2025-2028. So far, 
North Macedonia has ratified all of the five regional mobility agreements. The roadmap for 
roaming  between 
first  phase  of 
implementation.  The  implementation  of  the  12  decisions  were  agreed  by  the  CEFTA  Joint 
Committee in October 2024, following an agreement between CEFTA members that allowed 
decision making in the organisation to be unblocked.  

the  Western  Balkans  and 

the  EU  entered 

the 

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

Relations  with  Albania  remained  good,  with  meetings  held  at  the  highest  level.  Several 
bilateral  agreements  are  in  place  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,  with  occasional  high-level 
bilateral visits. Several bilateral agreements are in place, including on cooperation over EU 
integration and on economic cooperation. 

Cooperation  with  Kosovo  continues  to  be  comprehensive  and  constructive,  with  several 
meetings held at the highest level. In November 2024, both governments held a joint session 
in  Pristina  where  they  announced  the  establishment  of  joint  checkpoints  at  the  two  main 
border crossings.   

Relations  with  Montenegro  remained  good,  with  no  pending  bilateral  issues.  High-level 
meetings  between  representatives  of  the  two  countries  were  held  during  the  reporting 
period.  The  North  Macedonia  and  Montenegro  customs  offices  signed  a  memorandum  of 
cooperation to improve the efficiency of customs controls and prevent customs fraud, and to 
speed up legal trade between the two countries. The two countries also signed memoranda 
of understanding to cooperate on judicial reform and the digitalisation of public services. 

Relations with Serbia intensified. The Prime Minister of North Macedonia paid an official visit 
to Belgrade. Memoranda  of  cooperation  were  signed  on  the  energy  sector,  gas  sector  and 
public administration reform. Serbia opened an honorary consulate in Kumanovo. The one-
stop border control system was launched at the Tabanovce-Preševo crossing. 

Relations  between  Türkiye  and  North  Macedonia  have  intensified.  Several  high-level 
meetings  were  held  during  the  reporting  period.  In  February  2025,  the  Prime  Minister  of 
North Macedonia and the Turkish President signed in Istanbul a political declaration on the 
establishment  of  a  high-level  cooperation  council  between  the  two  countries.  The  two 
countries  agreed  to  boost  economic  and  trade  exchanges,  including  updating  the  existing 
free trade agreement. In October 2024, they also signed a framework agreement on military 
cooperation. Türkiye donated military equipment to the army of North Macedonia. 

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 

62 

 
 
Ukraine  have  agreements  on  trade,  the  protection  of  investments,  culture,  education, 
tourism,  transport  and  military  cooperation.  The  two  countries  signed  a  new  protocol  for 
liberalisation of road transport. 

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

Relations  with  the  Republic  of  Moldova  are  good.  There  are  agreements  in  place  on 
transport, trade, customs, finance, medicine and health, police, foreign affairs and consular 
matters.  The  two  countries  signed  a  memorandum  of  cooperation  to  facilitate  coordination 
between the respective institutions in the process of accession to the EU. 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  and  on  railway  Corridor  VIII.  Tangible 
results  and  implementing  in  good  faith  bilateral  agreements,  including  the  Treaty  of 
Friendship,  Good  Neighbourliness  and  Cooperation  and  its  Protocol,  remain  important. 
Meetings of the expert working groups were held to monitor implementation of the Treaty of 
Friendship,  Good  Neighbourliness  and  Cooperation  and  its  Protocol.  North  Macedonia 
changed  its  representatives  in  the  Multidisciplinary  Expert  Commission  on  Historical  and 
Educational  Issues.  Several  meetings  were  held  during  the  reporting  period.  Cooperation 
between both countries on Corridor VIII has improved. In November 2025, North Macedonia 
and  Bulgaria  are  expected  to  sign  an  agreement  on  the  preparation,  construction  and 
operation of the tunnel along the corridor at the border between both countries. The dialogue 
to  find  concrete  solutions  to  implement  and  finalise  the  key  project  under  the  agreed 
timelines needs to continue and be supported at the highest political level. Significant further 
efforts  are  needed  to  promote  an  atmosphere  of  dialogue  and  mutual  respect.  North 
Macedonia  expressed  gratitude  for  the timely  assistance  that  Bulgaria provided  to some  of 
the injured in the Kochani tragedy. 

intensified,  particularly 

Cooperation  with  Greece 
in  key  areas  such  as  economic 
cooperation,  priority  connections  in  infrastructure  and  energy,  tourism  and  culture.  An 
agreement  to  build  the  gas  interconnector  with  Greece  (Gevgelija-Negotino)  was  signed. 
The  construction  of  a  new  border  crossing  (Markova  Noga-Lemos)  was  started.  Tangible 
results  and  implementing  in  good  faith  bilateral  agreements,  including  the  Prespa 
Agreement, remain important. North Macedonia expressed gratitude to Greece for the timely 
assistance provided to some of the injured in the Kochani tragedy. On 18 September 2025, 
the  ninth  meeting  of  the  Joint  Interdisciplinary  Committee  of  Experts  on  Historical, 
Archaeological and Educational Issues was held in Athens.  

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. 

63 

 
 
 
General principles 

The  country  has  a  functioning  institutional  framework  for  the  marketing  of  industrial 
products. A new Strategy for free movement of goods and a new 2024-2028 action plan to 
eliminate  the  non-tariff  barriers  to  trade  and  ensure  compliance  with  Articles  34-36  TFEU 
were  drafted  in  2024  but  neither  have  been  adopted  yet.  The  capacity  of  the  ministry 
responsible for the legal alignment with the EU acquis in this area remains insufficient. 

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  has  now  adopted  24 930  European  standards, 
representing approximately 99% alignment. 

The Institute for Accreditation ensures the accreditation procedures for testing, calibration 
and  medical  laboratories,  conformity  assessment  bodies,  and inspection bodies.  There  are 
224  active  conformity  assessment  bodies  in  the  country.  A  new  law  on  market 
surveillance designed to align with the latest EU acquis was drafted in 2024 but has still not 
been adopted. The State Market Inspectorate (SMI) faced increased workload as a result of 
government  decisions.  The  SMI  ensured  1  196  market  surveillance  inspections  in  2024, 
which  resulted  in  withdrawal  of  56  products  from  the  market.  A  list  of  these  withdrawn 
products  was  published  on  the  SMI’s  website.  SMI  staffing  needs  to  be  reinforced.  There 
was  no  progress  on  the  SMI’s  restructuring  or  digitalisation  of  the  internal  operating 
procedures for market surveillance. North Macedonia needs to ensure the SMI’s operational 
independence. 

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. 

On  access  to the  labour  market,  there  were  no  legislative  developments  in  the  reporting 
period. The Law on employment of foreigners does not distinguish between EU citizens and 
other  foreigners.  The  quota  of  work  permits  is  set  annually  (10 000  permits  for  2025),  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.  The  Law  on  the  work  engagement  of  individuals 
was  adopted.  The  law  regulates  the  conditions  for  temporary  employment  of  individuals 
performing seasonal work in agriculture, forestry, and fisheries; accommodation and catering 
service; and household activities. The access of EU citizens to this market is allowed but the 
conditions remain to be specified in implementing legislation.   

In 2024, North Macedonia issued some 8 900 work permits to foreign workers. The country 
has signed bilateral agreements with Germany and Slovenia for seasonal workers.  

64 

 
 
On the European Employment Services (EURES), there were no developments over the 
reporting period. 

On  bilateral  coordination  of  social  security  systems,  no  new  coordination  of  social 
security  systems  agreements  or  recognition  of  the  healthcare  services  were  signed  during 
the reporting period.  

There has been no development in the area of European Health Insurance Card (EHIC). 
Fourteen EU Member States (Austria, Belgium, Bulgaria, Croatia, Czech Republic, France, 
Germany,  Hungary,  Italy,  Luxembourg,  Poland,  The  Netherlands,  Slovakia  and  Slovenia) 
obtained access to medical services in public and some private healthcare institutions in the 
country for their citizens.  

The  Employment  Agency  applies  the  Code  of  Civil  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  a 
decree  on  the  notification  procedure  and the  compliance  assessment  of  draft  legislation  in 
the sectors of tourism, catering, trade, handcrafts and services of customs representatives. 
The  point  of  single  contact  was  upgraded,  reaching  312  online  services  for  citizens  and 
businesses  by  September  2025.  While  applications  may  be  submitted  electronically,  the 
portal  needs  to  be  improved  to  increase  the  number  of  e-services  and  the  information 
available, in particular in relation to licensees and procedures needed for businesses. 

In  the  area  of  postal  services,  the  national  legislation  is  partially  aligned  with  EU  postal 
acquis. Following the amendment of the Law on postal services in December 2024, the full 
postal market opening to competition was postponed until the country’s accession to the EU. 
A  restructuring  process  to  privatise  the  universal  service  provider  is  ongoing.  A  working 
group  was  established  to  prepare  for  the  alignment  with  the  Regulation  on  cross-border 
parcel delivery services. The Postal Agency is the independent regulatory authority ensuring 
compliance  with  the  Law  on  postal  services.  There  is  one  universal  service  provider  (Post 
Office -  state-owned joint  stock  company)  and 29  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. 

On  the  mutual  recognition  of  professional  qualifications,  Parliament  ratified  the 
Agreement  under  CEFTA  on  mutual  recognition  of  professional  qualifications  for  nurses, 
veterinary surgeons, pharmacists and midwives. North Macedonia needs to intensify efforts 
to fully align with the Directive on the recognition of professional qualifications especially with 
the minimum training requirements for professions benefiting from automatic recognition and 
to  set  up  a  transparent  electronic  register  of  all  regulated  professions.  The  institutional 
capacity of the Ministry of Education and Science’s unit dealing with the mutual recognition 
of professional qualifications remains insufficient. 

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. 

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On capital movements and payments, North Macedonia introduced critical amendments to 
the  Law  on  foreign  exchange  operations  in  February  2025.  These  changes  harmonised 
existing provisions with the Law on payment services and payment systems, broadening the 
scope for commercial banks, payment institutions, electronic money institutions and savings 
houses  to  undertake  international  payment  transactions.  However,  alignment  is  lacking  on 
the opening and holding of accounts by residents abroad. Moreover, no progress has been 
made on the liberalisation of the acquisition of agricultural land. 

Concerning payment services, having undertaken the necessary alignment with the acquis, 
North Macedonia joined the geographical scope of the Single Euro Payments Area (SEPA) 
schemes  in  March  2025.  The  recent  amendments  to  the  Law  on  payment  systems  and 
services, adopted in February 2025, aligned with the relevant provisions of the EU Payment 
Services Directive 2 to meet the European Payments Council criteria.  

As  regards  the  fight  against  money  laundering  and  terrorist  financing  (AML/CFT),  in 
October  2024,  North  Macedonia  adopted  amendments  to  the  Law  on  the  prevention  of 
money  laundering  and  financing  of  terrorism,  which,  inter  alia,  facilitates  better  tracking  of 
transactions  with  the  aim  to  improve  security  and  align  with  anti-money  laundering 
measures.  This  aims  to  align  the  national  legislation  with  the  EU’s  Transfer  of  Funds 
Regulation.  In  2024,  the  third  National  Risk  Assessment  Report  on  Money  Laundering, 
Financing  of  Terrorism,  and  Financing  of  Weapons  of  Mass  Destruction-Proliferation 
covering  2019-2023  was  prepared  in  compliance  with  the  World  Bank  methodology.  The 
government adopted the document in March 2025.  

Implementing legislation has been adopted and continued to be developed by the Financial 
Intelligence  Unit  (FIU).  The  FIU  expanded  its  institutional  capacity  and  enhanced  its 
operational effectiveness by employing additional staff and adopting a new methodology for 
risk-based  off-site  supervision  of  all 
institutions.  The  FIU  strengthened 
communication channels, particularly for data exchange with relevant stakeholders such as 
the Public Prosecutor’s Office for Organised Crime and Corruption. Cooperation with banks, 
casinos  and  specific  sectors’  operators  has  led  to  improved  reporting  of  suspicious 
transaction  reports.  FIU  demonstrated  its  capability  by  obtaining  interim  measures  for 
sizeable financial assets. 

financial 

In terms of international compliance, North Macedonia has improved compliance ratings on 
three  FATF  recommendations.  However,  further  efforts  are  necessary  to  enhance 
compliance with other recommendations. 

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,  alignment  with  the  Directive  on  Company 
Law  is  well  advanced  on  the formation,  registration  and domestic mergers and divisions  of 
companies. The Central Registry provides a solid and available one-stop shop system where 
company  registration  and  the  filing  of  documents  -  including  financial  documents  -  can  be 
carried out fully online. 

The  2021  Corporate  Governance  Code  remains  mandatory  only  for  listed  companies  that 
meet  certain  criteria.  National  legislation  is  broadly  harmonised  with  the  EU  acquis  on  the 
legal  forms  ‘Societas  Europaea’  and  ‘European  Economic  Interest  Grouping’,  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 cross-border 
operations (mergers, divisions and conversions), on the use of digital tools and processes in 
company  law,  takeover  bids  as  well  as  with  the  rules  on  the  encouragement  of  long-term 
shareholder engagement (SRD II Directive). 

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On company reporting, there was no progress in adopting the long-standing draft Law on 
accounting, aimed at further alignment with the EU acquis. Further alignment is also needed 
on  transparency  requirements  for  listed  companies  and  statutory  audit.  North  Macedonia 
should continue aligning with the Corporate Sustainability Reporting Directive and the Non-
Financial  Reporting  Directive,  bearing  in  mind  ongoing  developments  in  the  EU  acquis. 
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,  and  further  efforts  are  needed  to 
ensure its independence. 

Chapter 7: Intellectual property law 

The EU has to a large extent harmonised rules for the legal protection and enforcement of 
intellectual  property  rights  (IPR),  covering  notably  patents,  biotechnological  inventions  and 
pharmaceuticals, 
including  supplementary  protection  certificates  (SPCs),  trademarks, 
designs, geographical indications (GIs), including craft and industrial GIs, and copyright and 
related rights. 

On  copyright  and  related  rights,  amendments  to the  Law  on  copyright  aimed  at  aligning 
with the EU acquis on collective rights management, orphan works and the implementation 
of  the  Marrakesh  Treaty  have  been  submitted  to  Parliament,  but  not  yet  adopted.  North 
Macedonia has yet to align its legislation with the SatCab II Directive and the DSM Directive. 
The  relevant  intellectual  property  rights  unit  in  the  Ministry  of  Culture  remains  significantly 
understaffed, which undermines its capacity to execute its tasks. 

On 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  IPR 
enforcement. 

On enforcement, SOIP has made efforts to speed up the digitalisation of its database and 
online  public  services.  However,  it  lacks  capacity  to  develop  hardware  infrastructure  to 
provide full insight into the institutional handling of intellectual property rights infringements. 

In  2024,  the  Customs  Administration  seized  147 525  goods  suspected  of  infringing 
intellectual property rights across 73 cases, involving 60 different trademarks. All counterfeit 
goods originated from Türkiye and China. 

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, limiting its enforcement capacity. Its technical capacities and financial 
resources remain limited. Further training of judges dealing with antitrust cases is needed. 

On  implementation,  the  number  of  merger  decisions  maintained  the  average  as  in  the 
previous  years  (120).  The  number  of  ex  officio  and  on-site  interventions  remains  low.  The 
leniency instrument is still rarely used to improve enforcement. 

State aid 

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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 Commission for the Protection of Competition (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 needs to be strengthened. 

Concerning implementation, the CPC issued 26 decisions and 39 opinions on State aid in 
the reporting period. 

Liberalisation 

Antitrust  and  State  aid  rules  also  apply  to  state-owned  undertakings  and  undertakings 
entrusted  with  special  or  exclusive  rights,  except  when  application  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  at  ensuring  fair  competition  among financial  institutions,  and  the  stability  and 
integrity  of  financial  markets,  namely  in  the  fields  of  banking,  insurance,  supplementary 
pensions, investment services and securities. They include rules on authorisation, operation 
and supervision of these institutions.  

On banking and financial conglomerates, the country needs to continue efforts to align with 
the  amended  Capital  Requirements  Regulation  and  the  Capital  Requirements  Directive 
(CRR/CRD).  The  amended  banking  law  broadened  the  scope  of  the  activities  that  can  be 
performed by savings banks. The preparations for implementing the Law on bank resolution 
were advanced with the adoption of important implementing legislation.  

There was no progress on insurance and occupational pensions, especially on alignment 
with  the  Solvency  II  Directive.  The  legislation  allowing  the  Ministry  of  Finance  to  set 
premiums for motor vehicle insurance has not been repealed either.  

On  financial  market  infrastructure,  no  progress  was  made.  North  Macedonia  remains 
partially  aligned  with  the  Central  Securities  Depositories  (CSDR)  Regulation  and  not  yet 
aligned with the EU Directive on financial collateral, the Regulation on Securities Financing 
Transactions,  and  Regulation  on  OTC  derivatives,  central  counterparties  and  trade 
repositories. 

On  securities  markets  and  investment  services,  all  the  implementing  legislation  was 
completed for the Law on prospectus and transparency of securities issuers and to the Law 
on  financial  instruments.  The  implementing  legislation  to  the  Law  on  financial  instruments 
strengthened the requirements for managing investment firms. Work is still needed to further 
align  with  the  EU  acquis,  including  the  changes  with  regard  to  undertakings  for  collective 
investment in transferable securities and alternative investment fund managers. 

There  were  no  developments  on  sustainable  and  digital  finance.  Only  the  legislation  on 
the prevention of money laundering and counterfeiting terrorism addresses the use of crypto-
assets.  Further  work  is  needed  to  align  with  the  EU  acquis  on  sustainable  and  digital 
finance. 

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  human  and  veterinary 
medicinal  products.  The  EU  also  has  rules  for  upholding  patients’  rights  in  cross-border 
healthcare and in preparing for and responding to serious cross-border health threats. 

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Consumer protection 

The Law on consumer protection is broadly aligned with most of the EU consumer acquis 
and  clearly  defines  the  responsibilities  of  physical  and  legal  commercial  bodies  towards 
consumers.  In  2024,  implementing  legislation  was  adopted  designed  to  align  with  the  EU 
acquis  on  consumer  rights,  and  on  the  marking  of  goods  offered  to  consumers.  National 
legislation  is  still  not  aligned  with  the  EU  acquis  on  package  travel.  The  adoption  of  the 
consumer  protection  strategy  (2025-2028)  is  still  pending,  and  a  web  platform  providing 
information  on  consumer  protection  still  needs  to  be  developed.  Mediation  in  consumer 
disputes  is  in  place,  based  on  the  national  Law  on  mediation,  but  it  remains  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  remains  partly 
aligned  with  the  legal  requirements  on  the  EU  rapid  alert  system  for  dangerous  non-food 
products (Safety Gate). The State Market Inspectorate (SMI) faced increased workload as a 
result  of  government  decisions.  The  SMI  ensured  900  market  surveillance  inspections  in 
2024, which resulted in withdrawal of 50 products from the market. A list of these withdrawn 
products  was  published  on  the  SMI’s  website.  The  number  of  inspectors  (170)  remains 
insufficient. 

On  non-safety  related  issues,  further  efforts  are  needed  to  develop  guidance  and 
procedures on consumer appeals and on compensation. 

Public health 

Financing of public healthcare in North Macedonia increased slightly from 4.8% of GDP in 
2023  to  5.07%  in  2024  but  remains  below  the  EU  average.  Primary  healthcare  provides 
universal  health  coverage  and  is  free  of  charge.  The  scope  of  health  services  and  their 
availability, 
in  particular  of  specialist  medical  services,  medical  staffing,  and  their 
geographical distribution remained inadequate. The outflow of medical staff from the public 
health  sector  to  the  private  sector  or  to  work  abroad  continued.  Out-of-pocket  healthcare 
costs  are  41.7%  of  total  health-related  costs,  representing  a  barrier  to  equal  access  to 
healthcare. While the national eHealth system and its mobile application were upgraded with 
a number of new modules and functions, the appointment system needs to be improved, and 
it is not yet interoperable with the Health Insurance Fund data 

On  tobacco  control,  the  country  ratified  the  Protocol  to  Eliminate  Illicit  Trade  in  Tobacco 
Products.  The  tobacco  control  legislation  is  partly  aligned  with  the  EU  acquis,  but  proper 
implementation  and  enforcement  is  not  ensured.  Penalties  are  still  not  being  given  for 
smoking  in  restaurants  and  other  closed  areas,  including  public  offices  and  some  medical 
facilities.  On  antimicrobial  resistance  (AMR)  the  use  of  anti-biotics  remains  high.  There 
was  no  progress  on  serious  cross-border  threats  to  health,  and  the  country  needs  to 
complete  alignment  with  the  EU  acquis  on  communicable  diseases.  The  overall 
vaccination  level  increased  slightly.  Transplantations  of  blood,  tissues,  cells  and  organs 
continued to increase. However, the legal framework is not fully aligned with the EU acquis. 
The  country  is  not  aligned  with  the  EU  acquis  on  patients’  rights  in  cross-border 
healthcare. 

There were no developments with regard to medicines for human use and medicines for 
veterinary  use,  on  health  technology  assessment,  on  cosmetics,  or  on  medical 
devices,  which  all  remain  partially  aligned.  The  budget  allocation  and  number  of  medical 
staff  involved  in  the  mental  health  of  children  and  adolescents  needs  to  rise  to  meet  the 
increasing needs of this part of the population. Cancer screening campaigns continued, but 
awareness  needs  to  be  enhanced,  and  the  campaigns  need  to  cover  more  population 
groups.  The  cancer  register  shows  an  increase  in  the  number  of  registered  cases,  and  an 
increased mortality rate. More budget and new medicines were planned for treatment of rare 

69 

 
 
diseases  but  remain  only  sufficient  for  about  a  third  of  registered  patients.  Monitoring  of 
drug  abuse  prevention  and  reduction  of  harmful  use  of  alcohol  continue  to  indicate 
medium  levels  of  abuse.  Ensuring  healthy  environments  remains  a  concern,  as  studies 
indicate increased impact of air pollution on health. The efforts to fight  health inequalities, 
in  particular  for  Roma,  for  people  living  in  poverty  and  those  living  in  remote  areas, 
continued  with  limited  impact.  More  efforts,  beyond  awareness  campaigns,  are  needed  to 
improve women’s access to health, including sexual and reproductive health. 

Health is one of the sectors most prone to corruption. The country has established criteria for 
selecting and determining prices for health services and medicine prices and has improved 
the procedures for treatment abroad. Investigations were launched on the abuse of disability 
health insurance schemes. Further efforts are needed towards strengthening integrity, asset 
declarations and digitalisation to help prevent corruption in the area of health protection. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

Chapter 10: Digital transformation and media 

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

internal  market 

functioning  of 

the  smooth 

the 

On  digital  transformation,  in  June  2025,  four  laws  were  adopted,  including  the  Law  on 
electronic communications, the Law on security of network and information systems, the Law 
amending the  law  on  electronic  documents,  electronic  identification  and  trust  services,  and 
the  Law  on  archival  material  and  archival  activities.  The  country  adopted  a  long-term 
information and communication technologies (ICT) strategy and its action plan. The Ministry 
of  Digital  Transformation  needs to improve  its  capacities to  more  effectively  coordinate  the 
country’s digital transformation policies. 

On electronic communications, North Macedonia needs to make further improvements to 
align  with  the  EU  Gigabit  Infrastructure  Act  (GIA).  The  2019-2029  national  broadband 
operational  plan  remains  valid.  According  to  the  Broadband  Competence  Office  (BCO),  in 
2024, the fixed broadband coverage in the country with fast broadband amounts to 87.29%. 
The  public  broadcasting  enterprise,  responsible  for  developing  optical  infrastructure  and 
ensuring broadband access in areas with insufficient commercial investment from operators, 
needs  to  strengthen  its  capacities.  The  Agency  for  Electronic  Communications  needs  to 
bolster its independence. 

The capacity of the 112 European emergency number services has been further increased. 
The  country  is  a  member  of  the  European  Emergency  Number  Association  (EENA), 
maintaining active coordination. 

The  National  eServices  Portal  was  upgraded  to  offer  services  to  businesses.  The  user 
access interface was facilitated, and the offer of e-services was widened with new services 
mostly  demanded  by  the  citizens.  Some  personal  documents,  such  as  birth,  marriage  and 
citizenship certificates are now available online. North Macedonia should continue its efforts 
to align with the European Interoperability Framework, and the Interoperable Europe Act. 

The  country still  needs to  align  with the  Digital  Services  Act (DSA)  and  the  Digital Markets 
Act  (DMA),  which  would  strengthen  the  regulation  of  online  platforms,  enhance  consumer 
protection,  promote  fair  competition,  and  support  the  development  of  a  safer  and  more 
transparent digital environment.  

On digital trust and cybersecurity, the adoption of the Law on the security of networks and 
information  systems  and  the  Law  on  electronic  communication,  further  contributes  to  the 
alignment  with  the  NIS2  Directives.  The  national  cybersecurity  strategy  was  adopted  in 
January  2025.  However,  state  institutions  must  further  strengthen  their  infrastructure  and 

70 

 
 
 
increase  cybersecurity  expertise.  The  staffing  and  operational  capacities  of  the  national 
Computer Incident Response Centre also require significant strengthening. The coverage of 
the  mobile  5G  network  continued  to  expand  across  the  country.  A  new  telecom  operator 
successfully participated in a tender for frequencies. North Macedonia needs to continue the 
implementation of the EU 5G Cybersecurity Toolbox measures, including assessing the risk 
profile  of  suppliers  and  putting  in  place  appropriate  restrictions  and/or  exclusions  for  high-
risk suppliers.  

The  Law  on  electronic  documents,  electronic  identification  and  trusted  services  was 
amended. The existing tools for e-identification and e-signature certificates are still not user 
friendly and not free of cost for citizens. Further efforts are required to achieve full alignment 
with  the  new  EU  Digital  Identity  Framework  (eIDAS  2.0)  Regulation  and  the  ePrivacy 
Directive. 

On media,  the  process  of  drafting  and  amending  several  bylaws  of  the  Law  on  audio  and 
audiovisual  media  services (LAAMS) to  strengthen  its  professional  capacity  in  line  with the 
Audiovisual  Media  Services  Directive  has  started.  The  media  regulator  adopted  various 
guidelines and rulebooks, including those on product placement, accessibility, broadcasting 
European works and monitoring hate speech. However, the regulator still needs to boost its 
capacities  to  effectively  implement  its  competencies,  particularly  oversight  and  the 
registering  of  video  sharing  platform  providers.  The  public  service  broadcaster  (PSB)  has 
benefited from improvements to the funding framework in the Law on audio and audiovisual 
media  services.  However,  challenges  remained  throughout  the  reporting  period,  including 
delayed  appointments  to  the  PSB’s  Programme  Council  and  insufficient  institutional 
autonomy. Additionally, the PSB should systematically follow a self-regulatory document for 
content  outside  of  elections,  and  stakeholder  involvement  in  its  programming  remains 
limited. 

The  EU  invites  North  Macedonia  to  fully  align  with  the  EU’s  Artificial  Intelligence  Act, 
ensuring the necessary enforcement structures. 

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,  the  Law  on  excise  was  amended  to  postpone  application  of  the 
provisions  for  registration,  submission  of  monthly  reports  and  declarations  of  excise 
taxpayers who work with wine and new energy products (electricity, natural gas, coal, coke 
and  lignite),  for  which  excise  duty  rate  is  prescribed  at  0  denars,  given  that  there  are  no 
fiscal implications for the budget. Delays in the VAT refund process remain quite prominent, 
as only 10% of the refund was paid within the legal deadline. 

As regards direct taxation, a new Law on minimum global corporate profit tax was adopted, 
which  introduces  a  profit  tax  rate  of  15%  to  domestic  companies  which  are  subsidiaries  of 
multinational companies, thus bringing it into line with OECD global minimum tax (GMT) and 
Council  Directive  (EU)  2022/2523.  The  new  rate  will  be  applicable  as  of  2026,  based  on 
companies’  performance  in  2025.  The  country  still  needs  to  align  its  legislation  with  the 
Merger Directive. 

On  administrative  cooperation  and  mutual  assistance,  North Macedonia has signed  49 
double  taxation  agreements,  including  with  23  EU  Member  States  except  Cyprus,  Malta, 
Portugal  and  Greece.  The  country  has  not  yet  committed  to  a  date  to  start  the  automatic 
exchange of financial account information as per the Organisation for Economic Cooperation 
and  Development  (OECD)  standard,  although  technical  cooperation  and  exchange  of 
information  is  ongoing  with the  OECD  Secretariat.  The  country continued to  implement  the 
Inclusive Framework on Base Erosion and Profit Shifting (BEPS) minimum standards. 

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On operational capacity and computerisation, the Public Revenue Office (PRO) still needs to 
improve  its  business  processes,  develop  compliance  risk  management  and  continue  the 
process of expansion of e-services. A new strategic plan 2025-2027 was adopted, as well as 
a  new  reform  programme  for  digital  transition,  as  a  roadmap  for  modernising  the  PRO. 
Preparations  to  implement  a  new  integrated  IT  tax  system  have  started,  aiming  to  replace 
the current fragmented IT system by 2028. However, progress was slow. 

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  economic policy,  North Macedonia has  a high  level  of  alignment  with the  EU 
acquis on medium-term budgetary frameworks. The legislation is partly aligned with the EU 
acquis on budgetary forecasts, statistics, numerical fiscal rules, and transparency of general 
government  finances.  The  recently  established  Fiscal  Council  continued  its  work,  issuing 
opinions on the fiscal strategy and the budget. However, the implementation of new Organic 
Budget Law, expected to enter into force in January 2025, is delayed. Macroeconomic and 
budgetary forecasts are often overly optimistic, frequently lacking quantified fiscal impacts of 
new  proposals.  Moreover,  fiscal  data  remains  partial  with  large  parts  of  public  entities 
excluded. 

On monetary policy, North Macedonia has a high level of alignment with the EU acquis.  

The  implementation  of  the  Commission’s  recommendation  to  ensure  the  independence  of 
the National Bank with respect to the status of its employees has been successfully carried 
out. The newly adopted Law on administrative servants explicitly exempts the National Bank, 
while the Law on public sector employees implicitly excludes it by omitting the National Bank 
from  the  definition  of  public  sector  institutions.  These  legislative  updates  have  effectively 
reduced  the  risk  of  compromising  the  National  Bank's  independence  concerning  its 
employees' status. 

The  January  2025  amendment  to  the  Law  on  the  National  Bank  of  the  Republic  of  North 
Macedonia,  adopted  in  a  shortened  parliamentary  procedure,  introduces  changes  to  the 
mechanism  for  distributing  the central  bank’s  profits  set  up  in March  2024,  which  aimed  at 
building  general  reserves  and  strengthening  the  financial  independence  of  the  National 
Bank.  Following  the  legislative  change,  most  of  the  profits  will  be  distributed  to  the 
government budget. 

The  Economic  Reform  Programme  (ERP)  for  2025-2027  submitted  to  the  European 
Commission  outlines  North  Macedonia’s  medium-term  macroeconomic  and 
fiscal 
framework.  The  implementation  of  the  policy  guidance  set  out  in  the  conclusions  of  the 
Economic  and  Financial  Dialogue  of  May  2024  was  only  limited,  which  is  worse  than  in 
previous years. 

Chapter 19: Social policy and employment 

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

On  labour  law  legislation,  the  Law  amending  the  law  on  labour  relations  was  adopted  in 
February 2025, and the Law on work engagement of persons was adopted in May 2025. In 
June,  the  labour  relations  law  was  changed  to  decrease  the  required  threshold  for 
representation of the trade unions at the national level, alongside amendment of the Law on 
protection from mobbing in the workplace.  

72 

 
 
On health and safety at work, the new Law on occupational safety and health is yet to be 
adopted.  In  2024,  9 806  inspections  in  the  field  of  occupational  safety  and  health  were 
carried  out.  2 543  decisions  on  deficiencies  and  irregularities  were  issued.  484  payment 
orders, 27 misdemeanour charges and 19 criminal charges in the field of occupational safety 
and  health  were  issued.  Some  3 000  inspections  were  carried  out  following  reports  of 
accidents at work. Authorities need to adopt the new strategy 2026-2030 and the action plan 
2026-2027  for  safety  and  health  at  work.  There  is  a  need  to  increase  the  capacity  of  the 
State Labour Inspectorate to tackle issues pertaining to occupational safety and  health and 
establish a system to monitor work-related injuries and deaths. 

On  social  dialogue,  the  enforcement  and  adoption  of  collective  agreements  in  the  private 
sector  remained  weak.  The  Constitutional  Court  decision  of  October  2024  repealed  the 
procedure for submitting and registering collective agreements and their amendments. The 
Law  on  the  peaceful  settlement  of  labour  disputes  has  yet  to  be  implemented.  Social 
partners’  capacities  require  further  strengthening.  The  Agreement  for  the  establishment  of 
the Economic and Social Council (ESC) was amended in October 2024. With the amended 
agreement, the government members in the ESC are the Minister of Economy and Labour 
(President of ESC), the Minister of Finance, the Minister of Social Policy, Demography and 
Youth, and the Minister of Education and Science. 

On employment policy, the Employment Service Agency’s capacity must be strengthened 
to  improve  delivery  of  active  labour  market  measures  and  the  Youth  Guarantee.  The  new 
strategy on the Employment Action Plan for the period 2025-2027 needs to be adopted. 

On  labour force  participation  and  the  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 the Youth Guarantee 
implementation plan for 2023-2026. The Youth Guarantee included a total of 21 641 young 
unemployed  individuals,  of  whom  11 032  were  women.  A  total  of  7 116  young  individuals 
were  employed,  while  1 564  participated  in  active  employment  measures  to  increase 
employability.  Employment  measures  created  jobs,  with  251  people  benefiting  from  wage 
subsidies and 281 from new job creation. Unemployed individuals participated in internships 
(848),  digital  skills  training  (294),  and  high-demand  occupation  training  (211),  and  1 084 
persons  received  career  support,  profiling  and  individual  plans.  The  Youth  Guarantee 
supported 1 453 Roma individuals, resulting in 271 employment offers within four months.  

On social protection and inclusion, there was no adjustment of pensions according to the 
formula  prescribed  in  article  37  of  pension  and  disability  law.  All  the  pensioners  who 
acquired their right until 28 February 2025, received a fixed increase of their pension. As of 
end  of  August  2025,  32  865  households  were  receiving  guaranteed  minimum  assistance 
(GMA).  To  address  energy  poverty,  households  receiving  GMA  and  social  security 
beneficiaries also receive an energy allowance, the number of which is 13 765 recipients. 

The  decentralisation  of  social  assistance  is  still  moderate.  Progresses  continued  in  the 
implementation of the 2018-2027 National Deinstitutionalisation Strategy. The primary focus 
the  National 
of 
Deinstitutionalisation Strategy 2018-2027 was to complete the transformation of the Institute 
for Rehabilitation of Children and Youth in Skopje into a social service centre. 

the  Deinstitutionalisation  Action  Plan  2023-2025 

implementing 

for 

The  Ministry  of  Social  Policy,  Demography,  and  Youth  adopted  a  Decision  on  determining 
prices for social services for 2025. The eligible applicants are associations, private providers 
of  social  services,  and  municipalities.  As  of  end  of  August  2025,  there  are  152  licensed 
social  service  providers,  as  outlined  by  the  Law  on  social  protection,  with  the  capacity  to 
serve  around  7  327  beneficiaries,  primarily  targeting  the  elderly (1602  beneficiaries  /  22%) 
and individuals with disabilities (5 230 beneficiaries / 71%). The network of authorised state-
financed social service providers has grown with 83 concluded administrative contracts. 

73 

 
 
A national Contact Point for the European Child Guarantee has been nominated. 

On  non-discrimination  in  employment  and  social  policy,  there  is  still  no  alignment  of 
national legislation with the 
acquis, 
relevant 
EU 
including  as  regards  the 
Employment 
Equality 
Directive  and  the  Racial 
Equality  Directive.  The 
harmonisation  of  the  Law 
on labour relations with the 
Law  on  prevention  and 
against 
protection 
discrimination  was  further 
In  2024,  most 
delayed. 
the 
reported  cases 
the 
Ombudsman 
Commission 
the 
Prevention  and  Protection 
against Discrimination involving discrimination were in the context of employment and labour 
relations. In 2024, the Commission for the Prevention and Protection against Discrimination 
addressed  485  discrimination  cases,  407  of  which  were  newly  opened.  Most  complaints 
were  based  on  national  or  ethnic  origin,  which  was  also  the  most  prevalent  form  of 
discrimination  identified  in  the  Commission’s  findings.  As  in  the  previous  year,  the  public 
sector remains the primary place of discrimination, accounting for  66% of cases. The most 
common  areas  of  discrimination  in  2024  were  work  and  employment  (39%),  followed  by 
issues  related  to  trade  union  membership,  public  information  and  media,  as  well  as 
education,  access  to  goods  and  services,  and  the  judiciary.  Women  (49.6%)  and  men 
(50.4%)  submit  complaints  to  the  Commission  equally.  A  total  of  53  complaints  were 
submitted to the Ombudsman (three more than in 2023). An analysis of the data shows that, 
once again this year, the highest number of complaints were in the areas of employment and 
labour relations (31 complaints) and access to goods and services (9 complaints). 

to 
and 
for 

On  equality  between  women  and  men  in  employment  and  social  policy,  the  notable 
gender  gap  in the  labour  market  persists,  despite  the  planning  of  a  new  action  plan  2024-
2027  for  implementing  the  National  Employment  Strategy  (2021-2027).  The  Strategy  for 
Formalising the Informal Economy (2023-2027) is not sufficiently gender sensitive. Data on 
women  beneficiaries  of  active  labour  market  measures  for  2024  is  unavailable  (46%  in 
2023),  and  rural  women  remain  poorly  integrated  into  the  labour  market,  highlighting  the 
need to strengthen the Employment Service Agency. 

The new law on harassment at work has not yet been adopted. Gender gaps in labour force 
participation remain stark - 57% of working-age women are economically inactive, compared 
to  38%  of  men.  Poor  childcare  infrastructure  remains  a  major  reason,  with  only  1.3 
kindergartens  available  per  1 000  preschool-age  children.  Over  half  of  municipalities  have 
coverage  rates  below  30%.  The  2024  Programme  for  Social  Security  of  Women  Farmers 
introduces  maternity  benefits  but  remains  discretionary, 
legal  permanence. 
Monitoring the gender pay gap is hindered by the absence of official and up-to-date data. 

lacking 

North  Macedonia  still  needs  to  align  its  legislation  with  the  Gender  Equality  acquis  in  this 
Chapter,  including  the  Work-life  balance  directive,  the  Pay  Transparency  directive  and  the 
Women on Boards directive.    

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). 

74 

 
 
Chapter 20: Enterprise and industrial policy 

industrial  policy  strengthens  competitiveness, 

EU 
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. The Ministry of Economy 
and  Labour  was  restructured  by  taking  over  the  competence  of  employment  and  the 
coordination functions of the former office of the Deputy Prime Minister for Economic Affairs. 
while  transferring  competences  in  the  area  of  energy,  concessions,  and  public-private 
partnerships  to  the  newly  established  Ministry  of  Energy.  The  plan  to  consolidate 
administrative structures in this area, adopted last year, was not put into effect. 

The  Parliament  approved  the  National  Development  Strategy  2024-2044  as  the  main 
strategic  vision  for  the  country’s  development  and  private-sector  development  in  October 
2024. A new action plan for industrial policy is pending. A new strategy for the development 
of  SMEs  2025-2030  based  on  the  Small  Business  Act  was  adopted  in  August  2025.  A 
strategy on corporate social responsibility is under development.  

The  government  secured  a  EUR 250  million  credit  line  for  private  companies,  based  on 
loans  distributed  via  commercial  banks  with  a  fixed  interest  rate  of  1.9%,  while  the  bank’s 
margin is subsidised. Within the country’s well-capitalised financial sector, this type of state 
intervention with no stated policy objective is unclear. 

Dialogue  with  the  Chambers  of  Commerce  and  other  business  associations  was  reduced 
after the cancellation of the position of the Deputy Prime Minister for economic affairs. Other 
than  communication  via  media,  a  web-based  platform  remains  the  main  tool  for  systemic 
communication  with  businesses  but  is  limited  to  legal  acts.  The  country  needs  to  set  up  a 
regular,  inclusive  and  systematic  mechanism  for  dialogue  that  is  more  responsive  to 
business  needs.  The  trend  to  adopt  measures,  laws  and  implementing  legal  acts  without 
previous  notification  and  an  adjustment  period  for  companies  continued  in  the  reporting 
period, including through the use of expedited procedures in Parliament.  

The overlap of policy measures for financial and non-financial aid to companies managed by 
different  ministries  or  public  bodies  remains  in  place.  Measures  are  not  assessed  against 
their relevance, their potential to distort market competition, or their effectiveness and impact 
on  overall  economic  growth.  With  the  exception  of  the  Smart  Specialisation  Strategy, 
evidence-based planning and impact assessment seem to be absent. While there is regular 
monitoring  of  policy  implementation  based  on  input  indicators,  the  evaluation of  the  impact 
from strategies is very limited. 

In  2024,  an  additional  196  companies  benefited  from  the  Law  on  financial  support  of 
investments  and  over  300  applications  were  received  by  September  2025.  A  lack  of 
objective  and transparent  award  practices  distorts  the  projected  effect  of the  granted  State 
aid.  The  implementation  of  the  Plan  for  Accelerated  Growth,  adopted  in  2022,  remains 
uncertain as no specific activities took place in the reporting period.  

No  significant  activities  were  undertaken  in  the  fight  against  the  informal  economy.  The 
potential of simplification and digitalisation of public procedures is underexploited as a way 
to  reduce  the  administrative  burden  of  companies  and  informality,  notably  for  business 
registration and work permits. 

The role of the Agency for Entrepreneurship was significantly enhanced as more resources 
and  measures  are  planned  in  its  2025  operational  plan.  The  Directorate  for  Technological 
Industrial  Development  Zones  completed  the  programme  to  integrate  local  companies  into 
global  value  chains.  Furthermore,  legislative  changes  were  made  to  allow  already 
established  companies,  under  prescribed  terms,  to  reallocate  businesses  within  the  zones 
and take advantage of zone benefits. Businesses struggle to recruit qualified workers due to 

75 

 
 
significant  emigration  and  a  persisting  mismatch  between  skills  demand  and  supply.  VAT 
refund  delays  significantly  impede  the  liquidity  of  companies  and  predictability  of  business 
operations. 

On  policy  instruments,  North Macedonia continues  to participate  in  the SME  Pillar  of  the 
Single Market Programme. 

As regards the Late Payment Directive, starting from 1 January 2025 the deadline for settling 
monetary  liabilities  of  entities  in  the  public  sector  is  up  to  30  days;  for  entities  in  the 
healthcare sector, it is up to 60 days. 

The Fund for Innovations and Technological Development was closed due to numerous acts 
of  mismanagement  of  resources.  Its  mandates  were  transferred  to  the  Agency  for 
Entrepreneurship and Innovation, even though the legal amendment is still pending. In terms 
of  sectoral  policies,  several  measures  from  the  Smart  Specialisation  Strategy  have  been 
rolled out. A new strategy for tourism is under development. 

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. 

North  Macedonia  significantly  increased  the  budget  allocation  for  science,  reaching  almost 
EUR 11  million  for  2025,  a  58%  increase  compared  with  2024.  Of  this  amount,  EUR 5.5 
million is allocated to the key initiative: implementing the Smart Specialisation Strategy, the 
main  policy  for  innovation  and  research.  The  first  measures  of  the  Smart  Specialisation 
Strategy were launched. 

The European Institute of Innovation and Technology (EIT) Community RIS Hub, Community 
Officer  in  North  Macedonia  (ECO  MK),  signed  a  memorandum  of  understanding  with  the 
Chamber  of  Economy,  set  up  a  dedicated  website,  and  held  a  number  of  promotional 
events. The first European Digital Innovation Hub (EDIH) in the country was set up. Also, a 
competence centre for open science was set up at a state university to provide training and 
support for data management, policy development and open science practices. 

On  innovation,  the  Fund  for  Innovation  and  Technological  Development  closed  in  August 
2025.  New  Law  on  Innovation  Activity,  Scientific  and  Technological  Development,  and 
Entrepreneurship was adopted having as objective to set up a single authority for innovation, 
scientific and technological development and entrepreneurship support. Pursuant to the law 
a  new  body,  the  Agency  for  Innovation,  Scientific  and  Technological  Development  and 
Entrepreneurship was set up.  It took over all mandates of the FITD and started working on a 
new model for financial support for innovations to the private and public sector. 

Overall  investments  in  research  and  innovation  in  the  country  remain  low  (only  0.38%  of 
GDP  in  2022),  while  the  participation  of  the  private  sector  in  research  continues  to  be 
marginal. 

North Macedonia is included in the European Innovation Scoreboard with a performance at 
40 % of the EU average in 2025. The country’s performance is below the average and the 
innovation gap with the EU is widening. Further progress should be made regarding venture 
capital expenditures in the business sector as well as direct and indirect government support 
of business R&D.  

North  Macedonia’s  participation  in  the  EU’s  Framework  Programme  for  Research  and 
Innovation - Horizon Europe is increasing. This positive trend continued. Particular strengths 
are noted in Horizon Europe under the Pillar II “Global Challenges and European Industrial 
Competitiveness”.  The  national  technology  transfer  roadmap  has  not  yet  been  developed. 

76 

 
 
Authorities need to further strengthen their participation in the new European Research Area 
and in the new European Innovation Agenda. 

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. 
Monitoring mechanisms remain not well defined. A new strategy for education needs to be 
developed  and  adopted.  Public  spending  on  education  and  training  decreased  slightly  to 
3.17%  of  GDP  in  2024,  which  is  still  far  below  the  EU  average  of  4.6%.  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. Among children aged 0 to 6 years, 
37.4% are enrolled. Among those aged 3 to 6 years, the enrolment rate is 46.8% showing a 
slight  increase,  but  still  falling  considerably  short  compared  to  the  EU  target  on  ECEC 
attendance  set  at  96%. In line  with  the  Law  on  primary  education, the  Concept  for  primary 
education  that  also  includes  green  skills  as  well  as  new  curricula  are  being  gradually 
introduced.  Authorities  need  to  improve  capacities  in  the  school  system  allowing  for  the 
optimisation and restructuring of the school network. A total of 10 municipalities prepared a 
plan  to  optimise  the  school  network.  A  new  funding  model  for  primary  education  aiming  to 
redistribute  funds  more  effectively  across  municipalities,  developed  by  the  Ministry  of 
Education and Science (MoES) was approved by the Government. 

The number of primary education pupils dropped by 1.5% compared to the previous year 
while  in  secondary  education  increased  by  0.53%.  In  2024-2025,  there  were  177  740  (86 
051  females)  in  primary  education.  In  secondary  education,  the  total  number  of  enrolled 
students  amounted  to  66  075  (31  948  are  female).  North  Macedonia  took  part  in  the 
Teaching and Learning International Survey (TALIS 2024) and is participating in PISA 2025.   

The  Law  on  vocational  education  and  training  (VET)  was  adopted  in  December  2024 
introducing several key innovations such as formalising dual education partnerships between 
vocational  institutions  and employers,  emphasising  work-based learning and  setting  up  the 
legal  framework  for  establishing  a  network  of  Regional  VET  Centres  (RVETC).  Four 
additional  RVETC  were  approved  in  2024-2025.  There  is  a  clear  trend  of  an  increasing 
share  of  students  enrolled  in  VET.  4  171  students  were  enrolled  in  dual  education  and 
cooperating  with 650  companies  compared to  3 755 students  enrolled  and  560  companies 
engaged  in  dual  education  in  2023-2024.  The  number  of  dual  vocational  classes  has 
increased  from  259  in  2023-2024  to  283  in  2024-2025.  In  2024,  the  Ministry  of  Education 
and Science launched several scholarship initiatives to support dual education. The Concept 
for post-secondary education was adopted in January 2025. 

On  higher  education,  in  the  academic  year  2024/2025,  a  total  of  53  535 students  were 
enrolled,  which  represents  an  increase  of  2.33%.  Female  students  represent  59.3%.  The 
majority of students (76.8 %) are enrolled in public higher education institutions, while 23.2 
% are enrolled in private institutions. The main challenge remains the improvement of quality 
of  higher  education  through  the  development  of  accreditation  and  quality  assurance 
processes. North Macedonia is a member of the European Higher Education Area (Bologna 
process) and needs to work on the full implementation of the key commitments according to 
the  2024  Bologna  Process  implementation  report,  especially  with  regards  to  automatic 
recognition  and  quality  assurance.  Three  universities  from  North  Macedonia  participate  in 
European Universities alliances. 

77 

 
 
A  new  law  on  the  national  qualifications  framework  (NQF)  was  adopted  in  December 
2024.  Out  of  16  sectoral  committees,  14  have  been  established.  A  manual  for  adapting 
qualifications in VET to the European Qualifications Framework (EQF) and NQF was drawn 
up, and 10 qualification standards were adopted. 

The  Law for  adult  education  was adopted  in December  2024, followed  by  the  Concept  of 
the Adult Education, formalising the system of validation of non-formal and informal learning. 
An Adult Education Strategy (2025-2030) was adopted in March 2025.  

On  inclusive  education,  after  some  progress  being  made,  namely  by  making  compulsory 
enrolment  of  pupils  with  special  educational  needs  into  mainstream  primary  schools, 
amendments  to  the  Law  on  primary  education  reverted  the  process  by  allowing  enrolment 
into  resource  centres.  The  share  of  pupils  with  special  educational  needs  in  mainstream 
primary schools in 2024-2025 represents 1.3%. The total number of educational assistants 
in primary education increased from 818 in school year 2023-2024 to 1 018 in school year 
2024-2025.  

Over  the  reporting  period,  44  Roma  mediators  in  primary  schools  were  available  in  26 
municipalities.  In  the  school  year  2024-2025,  the  total  number  of  Roma  pupils  in  primary 
education  was  10  288,  while  in  secondary  enrolment  increased  to  2  157.  The  Ministry  of 
Education  and  Science  awarded  934  primary  education  scholarships.  In  higher  education, 
150 scholarships were granted to Roma students whereas the total number of active Roma 
students  is  250.The  authorities  need  to  further  enable  the  development  of  digital  skills 
throughout  primary  and  secondary  education  and 
institutions’ 
capacities  and  teachers’  skills  to  develop  these  skills  in  line  with  the  EU  Digital  Education 
Action  Plan  2021-2027.  In  2024,  the  SELFIEforTEACHERS  tool  was  deployed  in  the 
country,  offering  insights  to  improve  teachers’  digital  skills  and  supporting  education 
strategies.  North  Macedonia  has  taken  steps  towards  the  effective,  coherent  and  inclusive 
digital  transformation  of its  education  system,  by  equipping  schools,  putting  into  use digital 
textbooks  in  primary  education  and  piloting  a  new  Education  Management  Information 
System  (EMIS),  expected  to  be  fully  functional  in  primary  and  secondary  education  as  of 
September  2025.  The  Law  on  textbooks,  which  also  promotes  digital  schoolbooks  and 
innovating educational materials, was adopted in December 2025. 

increase  educational 

North  Macedonia  continues  to  participate  in  the  Erasmus+  programme  as  an  associated 
country.  In  2024,  organisations  participated  in  671Erasmus+  projects.  The  Erasmus+ 
National Agency is facing increased scrutiny from the Commission due to a high number of 
non-compliance  issues. The country  continued  to participate in  all  the  European Education 
Area working groups 2021-2025. 

On  youth  policy,  there  are  no  reports  available  on  the  National  Youth  Strategy  for  2023-
2027  and  the  action  plan  for  2023-2025.  On  sports,  North  Macedonia  continued  to 
participate in the European week of sport. 

As  regards  culture,  the  country  further  delayed  the  adoption  of  amendments  to  national 
cultural  legislation  and  the  2023-2027  strategy  for  cultural  development  and  heritage 
protection. The Ministry of Culture needs to strengthen its capacity and ensure appropriate 
financing  to  protect  the  country’s  diverse  cultural  expressions  and  heritage.  Greater  efforts 
are  required  to  safeguard  cultural  heritage.  The  City  of  Skopje,  designated  as  the  2028 
European  Capital  of  Culture,  must  accelerate  preparatory  activities 
line  with 
recommendations of monitoring meetings. North Macedonia has ratified the 2005 UNESCO 
Convention on the Protection and Promotion of the Diversity of Cultural Expressions. North 
Macedonia continues its full participation in the Creative Europe programme. 

in 

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 

78 

 
 
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,  the  customs  tariff  for  2025  was  adopted  to  align  with  the  EU  Combined 
Nomenclature. The Protocol on Elimination of Illicit Trade in Tobacco Products of the WHO 
Framework  Convention  on  Tobacco  Control  was  ratified  in  December  2024.  This  is  an 
important  commitment  undertaken  by  the  country  in combating  customs fraud,  in  particular 
the smuggling of tobacco products. Amendments to the Regional Convention on pan-Euro-
Mediterranean preferential  rules  of  origin  were  ratified  and  took  effect  on  1  January  2025. 
The Law ratifying the amendments to the Convention on a Common Transit Procedure has 
been  adopted  and  published  in  the  Official  Gazette  in  December  2024.  This  law  is  a 
prerequisite for the launch of the New Computerised Transit System  – Phase 5, which was 
put into operation in January 2025. 

On administrative and operational capacity, a new Customs Administration Development 
Strategy  was  adopted  for  the  period  2025-2027.  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 5.5% (5.7% in 
2023) and documentary controls-yellow channel accounting for 17.4% (16.9% in 2023) of all 
shipments in 2024. A new Strategy on Integrity and Anti-Corruption for the period 2024-2027 
was  adopted  and  is  being  implemented.  The  strategy  includes  22  targeted  measures 
designed to prevent corruption and boost the integrity of customs officers and of the customs 
institutions.  Advanced  training  on  ethics,  integrity  and  the  fight  against  corruption  was 
conducted. 

Total  revenues  collected  by  the  Customs  Administration  in  2024  were  6.3%  higher  than  in 
2023, exceeding EUR 2 billion. The number of seizures of illicit goods also increased. One-
stop  control  was  introduced  with  Kosovo  in  April  2025  at  the  main  Blace-Elez  Han  border-
crossing  point.  The  ICT  development  strategy  for  2021-2025  was  implemented,  aiming  to 
provide development and implementation of national systems aligned with those of the EU. 
Maintenance and further development of the Integrated Tariff Environment (ITE) system was 
secured,  and  development  has  commenced  of  the  Economic  Operator  Registration  and 
Identification  (EORI)  and  Uniform  User  Management  and  Digital  Signature  (UUM&DS) 
systems. The Customs Administration has established regular data exchange with a number 
of  state  institutions  through  the  interoperability  platform.  To  be  to  be  able  to  address  the 
current  workload  and  the  planned  reform  agenda  for  the  expansion  of  customs  eservices, 
staff recruitment is necessary, in particular in IT. 

The  Customs  Administration  participated  in  five  international  operations  in  2024  and 
continued its cooperation and exchange of intelligence with customs agencies in the region 
and with international and regional organisations. 

The country should strengthen combating customs fraud, in particular smuggling of tobacco 
products and by cooperating with the European Anti-Fraud Office (OLAF). 

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. 

79 

 
 
 
On the general transport acquis, key strategic documents for transport and its sub-sectors 
are already in place since 2023. However, no progress was made in developing the action 
plan  to  accompany  the  2018-2030  national  transport  strategy.  The  operational  and 
administrative capacity for all modes of transport remains low and little effort has been made 
to  strengthen  these.  Although  North  Macedonia  is  actively  engaged  in  the  work  of  the 
Transport Community, there was limited progress on implementing the Transport Community 
Treaty  action  plans.  For  the  period  2025-2027,  North  Macedonia  should  focus  on  the 
implementation of the next-generation Transport Community action plans endorsed in 2025. 
Skopje does not have a sustainable urban mobility plan. 

is 

still 

On road transport, alignment with the EU acquis is only partial. Further efforts are needed 
to  fully  align  with  the  EU  acquis 
on  social  and  market  rules.  The 
executive  body  for  road  traffic 
safety has yet to be established, 
road  safety 
and  a  national 
lacking. 
strategy 
Legislation on road infrastructure 
safety  management  and  tunnels 
safety 
trans-European 
road  network  is  not  aligned  with 
EU  rules.  Although  the  Law  on 
dangerous  goods  is  aligned  with 
the  EU  acquis,  there  is  still  no 
legal  entity  appointed  to  assess 
equipment  conformity.  The  five-
year  road  maintenance  plan  is  still  pending  publication  and  national  laws  have  not  been 
updated  to  reflect  the  EU  Intelligent  Transport  Systems  acquis.  In  September,  Parliament 
adopted the Law on working hours of mobile workers in road traffic and recording devices in 
road traffic for complete harmonisation with EU regulation for the smart tachographs. 

the 

in 

the 

infrastructure  manager  and 

On  rail  transport,  the  requirements  of  the  EU  acquis  market  pillar  are  met,  regarding  the 
unbundling  of 
the  national  railway  operator.  The 
amendments to  the  law aimed  at  closing  the market to  new  entrants  until  the  country  joins 
the  EU  are  still  in  force  and  represent  a  departure  from  the  key  objective  of  the  EU 
legislation and the Transport Community Treaty. Enforcement of the amended railway safety 
and  interoperability  legislation  remains  delayed  and  preparatory  measures  have  not  yet 
started. The Railway Safety Directorate has not taken any steps to strengthen its operational 
capacities.  There  was  no  progress  in  setting  up  an  accident  and  investigation  body.  The 
mutual agreement on cross-border railway cooperation with Greece is still pending. 

On maritime transport, North Macedonia, while being a landlocked country, participates in 
all  basic  transport  conventions  of  the  International  Maritime  Organization.  The  basic 
alignment with the legislation has to start without delays. 

On  inland  waterway  transport,  North  Macedonia  is  partially  aligned  with  the  EU  acquis. 
The  country  has  requested  to  participate  in  the  EU  strategy  for  the  development  of  the 
Danube Region and remains active in the International Commission of the Sava River Basin. 
Aligning  the  legislation  with  common  rules  applicable  to  passenger  transport  by  inland 
waterway remains to be completed. 

On aviation, the country has maintained a good level of alignment with the EU acquis and 
has  partially  aligned  with  the  aviation  safety  legislation  within  the  reporting  period.  More 
needs to be done on the remaining areas of attention on the process of regulatory alignment 
following the 2024 ECAA assessment visit. The IT system for certification was upgraded in 
the Civil Aviation Agency, to comply with the EU standards.  Further efforts are still needed 
by  the  Civil  Aviation  Agency  in  relation  to  findings  of  the  European  Union  Aviation  Safety 

80 

 
 
Agency as regards the safety oversight of air navigation services. Independent functioning of 
the air navigation service provider needs to be maintained. 

On  multimodal  transport,  some  progress  was  made,  with  the  preparatory  work  for  the 
Trubarevo  multimodal  node  advancing  well.  Key  technical  studies  and  preliminary  design 
with  tendering  documentation  are  expected  to  be  completed  in  November  2025.    North 
Macedonia has not yet aligned with the Combined Transport Directive.  

On  the  passenger  rights  acquis,  while  in  the  air  transport  sector  the  relevant  national 
legislation is enacted, the national legislation has not been aligned with the passenger rights 
rules.  

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. 

On security of supply, the new Law on Energy adopted in May 2025 aims at aligning with 
the  Risk  preparedness Regulation  in  the  electricity  sector  while  the risk-preparedness plan 
has not yet been drawn up. Primary and secondary legislation in North Macedonia is aligned 
with Directive  2009/119/EC.  The  country  remains  significantly  dependent  on coal.  Both  the 
Bitola  and  Oslomej/Kichevo  thermal  power  plants  continue  to  operate  on  coal  from  limited 
domestic  resources  and  imports.  The  production  cost  of  electricity  generated  by  the  state-
owned  company  ESM  exceeds  the  selling  price  to  the  universal  supplier,  leading  to 
persistent  financial  losses  and  undermining  both  the  implementation  of  ESM’s  reform 
agenda and the advancement of the green transition. The installed capacity of power plants 
from  renewable  energy  sources  increased  to  55.72%  of  the  overall  electricity  installed 
capacity and 41.03% of the overall electricity production. On gas, progress has been made 
with  legislative  amendments  to  align  with  the  security  of  supply  EU  acquis  and  North 
Macedonia is pursuing its implementation. 

The  government  adopted  the  Just  Transition  annual  implementation  plan  for  2025  and 
governance structures are formally established. However, the plan needs to be made more 
operational and used as a monitoring mechanism. 

On  internal  energy  markets,  the  new  Energy  Law  represents  the  first  step  towards 
electricity market integration, partially aligning with the Electricity Integration Package, while 
the  adoption  of  Network  Codes  and  Guidelines  remains  pending.  The  regulatory  authority 
has received additional resources, but dismissals of board members at the end of 2024 and 
more recent attempts have raised concerns about its institutional independence.  

On renewable energy, the National Energy and Climate Plan (NECP) sets a 38% target for 
the share of renewable energy sources in gross final consumption of energy in 2030, in line 
with  Energy  Community  commitments.  Progress  in  the  use  of  renewable  energy  is  taking 
place  in the  power sector,  but  not  in the  transport  and  heating and cooling  sectors.  A  new 
renewable  energy  law  was  drafted  to  further  align  national  legislation  with  the  Renewable 
Energy Directive (RED II), including provisions on biofuels. Some progress was made, with 
the  launch  of  renewable  energy  auctions  and  development  of  the  Guarantees  of  Origin 
system  (the  electronic  registry  for  guarantees  of  origin  is  operational).  However,  further 
efforts are needed to upgrade the grid optimise balancing services and ensure hydropower 
investments comply with the relevant environmental acquis. 

Legislation  on  environmental  impact  assessment  (EIA)  is  not  aligned  with  the  acquis  and 
poses a significant risk to 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  was  updated  to  comply  with  the  latest  amendments  to  the 
Energy  Efficiency  Directive.  Energy  performance  certification  is  not  implemented  as 

81 

 
 
stipulated  in  the  construction  law.  The  implementation  of  the  current  legislation  has  not 
improved.  

The country is not aligned with the EU acquis on energy labelling. 

On governance, the government has still not fully implemented the measures set out in the 
National Energy Action Plan adopted in December 2022. The implementation of the NECP 
and Just Transition Roadmap are lagging behind. Administrative capacity to deal with energy 
policy, strategic planning and investments in the energy sector increased with the creation of 
the  new  Ministry  of  Energy  and  Mineral  Resources.  However,  there  is  no  energy  data 
collection system in place to monitor and report on policy implementation. 

For nuclear energy, nuclear safety, radiation protection and nuclear safeguards, there 
were  no  changes  in  the  reporting  period.  North  Macedonia  should  accelerate  its  efforts  to 
align with Euratom legislation. 

Chapter 21: Trans-European networks 

The  EU  promotes 
transport, 
telecommunication  and  energy  to  strengthen  the  internal  market  and  contribute  to  growth 
and employment. 

trans-European  networks 

the  areas  of 

(TENs) 

in 

On  transport  networks,  the  majority  of  the  road  network  is  not  compliant  with  the  TEN-T 
requirements,  Corridor  X  being  more  advanced  in  this  respect  than  Corridor  VIII.  Both 
corridors are a strategic backbone for North Macedonia’s connectivity to the TEN-T network, 
significantly  enhancing  the  country’s  regional  accessibility,  trade  links  and  economic 
cohesion.  The  National  Transport  Strategy  for  2018-2030  is  in  line  with  the  TEN-T 
objectives,  although  an  action  plan  is  still  not  in  place.  There  is  limited  interest  in  the 
development  of  sustainable  urban  mobility  plans.  A  study  for  the  multimodal  node  in 
Trubarevo  is  under  preparation.  The  Gradkso-Drenovo  highway,  part  of  Corridor  X-d,  and 
the Stracin-Kriva Palanka road on Corridor VIII were opened to traffic in January 2025. 

The authorities interrupted phase III of the Corridor VIII rail project linking Kriva Palanka to 
the  border  with Bulgaria.  Urgent  efforts  are  needed  to  accelerate and  reinvigorate  work  on 
rail Corridor VIII and to advance development on other priority sections of the core network 
for  both  rail  and  road.  Cooperation  between  North  Macedonia  and  Bulgaria  on  the 
construction  of  the  rail  connection  along  Corridor  VIII  has  recently  improved.  In  November 
2025, North Macedonia and Bulgaria are expected to sign an agreement on the preparation, 
construction  and  operation  of  the  tunnel  along  the  corridor,  at  the  border  between  both 
countries.  More  efforts  are  needed  from  both  sides  to  urgently  finalise  the  agreement  with 
Greece on the Kremenica-Neos Kafkasos railway border crossing, given that the operational 
rail  infrastructure  is  already  built.  Some  progress  was  made  on  building  adequate 
infrastructure at the Tabanovce railway station at the border with Serbia. 

The five-year road and rail maintenance plans are still not published. 

the  construction  of  a  new  400kV  electricity 

On  energy  networks, 
transmission 
interconnector  line  with  Albania  is  under  implementation.  Preparation  of  the  technical 
documentation to strengthen the transmission network in the country’s south-eastern region 
is still ongoing, and implementation of the technical assistance for greening and digitalisation 
of the transmission network in the Southwestern and Pelagonia regions has begun.  

National  legislation  is  not  aligned  with  the  previous  TEN-E  Regulation,  although  it  should 
have been aligned with the revised one by the end of 2024. 

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. 

82 

 
 
Environment 

On horizontal legislation, no progress was made. There is insufficient capacity and lack of 
qualified staff working on environment-related matters in the public administration. Reforms 
to  implement  and  enforce  environmental  legislation  have  stalled.  In  June  2025,  Parliament 
adopted  amendments  to  the  Law  on  environment.  North  Macedonia  has  ratified  the  two 
amendments of the Espoo Convention relating to: (i) public participation in the procedures of 
the  Convention,  including  the  involvement  of  civil  society  and  in  particular  NGOs;  and  (ii) 
further strengthening the implementation of the Espoo Convention while improving synergies 
with  other  multilateral  environmental  agreements.  There  is  no  coordinated  and  strategic 
planning  or  quality  preparation 
investments. 
Furthermore,  procedures  are  not  sufficiently 
transparent,  while  compliance  with 
environmental  impact  assessment  and  strategic  environmental  assessment  (EIA/SEA)  and 
other  elements  of  the  horizontal  acquis  is  weak.  No  steps  have  been  taken  to  ensure  full 
alignment with the EU Directive on environmental liability. North Macedonia has not initiated 
investigations  into  environmental  crimes  (e.g.  illegal  disposal  of  hazardous  waste),  despite 
the new Criminal Code being in place for more than a year. Environmental monitoring does 
not  meet  EU  standards.  There  was  no  progress  on  preparing  the  national  implementation 
report  to  the  Aarhus  Convention.  The  Aarhus  Centre  is  not  fully  operational  and  provides 
obsolete  data  and  information.  Civil  society’s  attempts  to  access  justice  on  environment 
matters have been rejected, as the courts did not determine legal accountability. 

for  environmental  and 

infrastructure 

On air quality, there were no legislative developments during the reporting period. Limited 
steps have been taken to improve the very limited capacities to maintain, run and extend the 
existing monitoring system and structures in charge for collection, processing and reporting 
of  data.  Initial  steps  have  been  taken  to  amend  and  complete  the  legislative  and  strategic 
framework,  in  line  with  the  new  EU  acquis.  The  process  of  delineating  zones  and 
agglomerations  has  progressed  but  still  needs  to  be  finalised.  A  total  of  10  municipalities 
need to have air quality improvement plans, with such plans having been adopted already by 
7  of  them.  Of  these,  three  were  adopted  during  the  reporting  period  and  one  is  currently 
under  development.  The  municipalities  that  adopted  plans  were  Ohrid,  Prilep  and  Veles. 
Strumica’s  plan  is  being  developed,  while  plans  for  Kumanovo,  Kavadarci,  Gostivar  and 
Struga are being updated. 

Air  pollution  cadastres  for  10  municipalities  –  Kichevo,  Prilep,  Shtip,  Kavadarci,  Kochani, 
Gevgelija,  Veles,  Struga,  Tetovo  and  Gostivar  –  have  been  completed,  with  cadastres  for 
seven more municipalities – Strumica, Bitola, Probistip, Kriva Palanka, Delchevo, Debar and 
Sveti Nikole – expected to be completed. 

On waste management, implementation remains a significant challenge across the sector. 
The  national  strategies  for  waste  management  and  sludge  management  still  need  to  be 
adopted. The authorities submitted a formal request to the European Commission related to 
information listed in Annex VIII to the Waste Shipment Regulation, requesting the possibility 
to import from the EU of 18 waste streams from the list of non-hazardous waste. 

Regional  waste  management  structures  are  not  functional  and  the  municipal  utility 
enterprises  are  not  operating  efficiently.  Further  delays  are  being  encountered  in 
establishing a regional waste management system across the country. No tangible progress 
was  made  in  the  northeast  and  east  regions,  despite  the  significant  financial  assistance 
provided.  The  process  is  still  affected  by  lack  of  ownership  and  commitment  from  local 
authorities, and weak interinstitutional relations and decision-making.  

Implementation of the circular economy is stagnating. Limited stakeholder awareness and 
knowledge, insufficient financial means and infrastructure limitations continue to be the main 
challenges. 

The Extended Producers Scheme (EPR) has not yielded the anticipated improvements and 
continues to face  a range of  persistent  challenges.  The  number  of  producers responsibility 

83 

 
 
organisations  (PROs)  continues  to  increase,  but  without  sufficient  supervision  it  may 
seriously jeopardise market functioning and undermine achievement of the national targets. 

Remediation activities related to the clean-up of Organic Chemical Industry Skopje (OHIS), a 
former organic chemicals factory dump, are progressing. More work and funding is required 
to complete the clean-up of the site. 

On water quality management, the new Law on water needs to be adopted to further align 
with the Water Framework and Groundwater Directives. River basin management plans and 
the  upgraded  water  monitoring  strategy  have  not  been  adopted.  There  is  no  progress  on 
aligning  with  the  EU  acquis  on  flood  and  water  reuse.  Weak  administrative  and  technical 
capacities at central and local level, unbalanced distribution of functions and heavy reliance 
on  donor  support  hinder  implementation.  The  2025  water  management  programme  was 
adopted.    Untreated  sewage  and  discharge  from  the  bigger  cities  remain  the  primary 
sources of water pollution, particularly for rivers. Lack of designation of sensitive areas and 
the  lack  of  a  sludge  management  strategy  hinder  wastewater  treatment  in  line  with  the 
relevant  EU  acquis.  Infrastructure  sustainability  requires  reforms  in  the  public  communal 
enterprises and the use of a funding model, applying the polluter-pays and full-cost-recovery 
principles.  The  inspection  and  sanctions  system  remains  ineffective  and  needs  to  be 
significantly strengthened, as it has raised public discontent. 

On  nature  protection,  the  laws  aligning  with  the  Habitat  and  Bird  Directives  and  CITES 
legislation have not been yet adopted. No progress was made in aligning the Zoo Directive, 
and zoos lack capacity for biodiversity conservation. A dedicated nature protection institution 
has still not been established, despite being an important target in the national strategy for 
nature protection. The national information system for biodiversity is still not functional, and 
identifying  potential  NATURA  2000  sites  faces  institutional  difficulties.  The  process  of 
declaring  protected  areas  of  high  importance  such  as  Lake  Ohrid,  Studenchisko  Blato, 
Matka Canyon and the re-proclamation of the Mavrovo National Park, is still not finalised and 
may  further  deteriorate  the  biodiversity  and  natural  values  of  the  sites.  The  management 
plan  for  the  Lake  Prespa  Monument  of  Nature  (2024-2033)  has  been  adopted  and  the 
Galichica,  Shara  Mountain  and  Pelister  national  parks  show  improved  sustainable 
management. Central budget support for the four national parks continued in 2025, enabling 
progress,  but  sustainable financing  and administrative  capacity to manage protected  areas 
remains  a  major  challenge.  The  implementation  of  UNESCO  recommendations  for  the 
natural and cultural heritage of the Ohrid Region remains insufficient. 

In  the forestry  sector,  the Integrated  Forest Information  System  (IFIS) was developed  and 
over 100 000 hectares of state forests were certified for sustainable forest management with 
EU  support.  IFIS  should  be  maintained  as  a  core  information  tool  and  certification  should 
expand  to  additional  forests.  Alignment  with  the  EU  acquis  remains  incomplete.  A 
harmonised Law on Forests is needed to comply with the FLEGT and Timber Regulations, 
while  institutional  reforms  should  clarify  authorities’  roles,  strengthen  enforcement,  and 
improve  forest  data.  Swift  adoption  and  implementation  of  these  measures  would  secure 
sustainable management and EU compliance. 

As  regards  industrial  pollution  and  risk  management,  the  March  2025  accident  at  the 
Toranica  lead  and  zinc  mine,  which  resulted  in  the  pollution  of  the  Kriva  River  with 
hazardous  substances,  revealed  serious  enforcement  gaps  and  the  authorities’  lack  of 
preparedness  and  protocols  to  handle  such  incidents.  Mid-September  2025,  Parliament 
adopted  the  law  on  industrial  emissions.  There  were  no  developments  in  the  area  of 
chemicals pollution and of noise pollution in the reporting period. 

On  civil  protection,  no  progress  was  made  in  implementing  the  necessary  reforms  to 
ensure streamlined,  coordinated  and  efficient  disaster mitigation  and  response  action  at  all 
levels. The country needs to improve legal, governance and financial frameworks related to 
disaster prevention, preparedness and response. Although risk analysis was completed, the 
national protection and rescue strategy is still pending. The mandatory training programme 

84 

 
 
for  all  territorial,  fire  and  rescue/civil  protection  staff  was  only  partially  completed.  The 
training provided to the newly hired firefighters was extremely limited. An action plan for fire 
prevention  and  handling  was  prepared,  including  a  review  of  human  resources  and 
equipment. North Macedonia is encouraged to make use when appropriate of the scientific 
partnership for natural hazards, through the Emergency Response Coordination Centre. The 
country  activated  four  times  the  Union  Civil  Protection  Mechanism:  once,  following  the 
Kochani nightclub fire in March 2025, evacuating 40 patients with burn injuries to European 
countries for specialised treatment and three times due to heavy wildfires in July 2025. The 
organisation  of  these missions  revealed  serious shortcomings,  such  as  insufficient  national 
coordination,  unclear  roles  and  responsibilities,  and  insufficient  communication  among 
relevant authorities. The national emergency communication system is not yet linked to the 
European  Commission’s  Common  Emergency  Communication  and  Information  System. 
Public awareness and basic emergency skills require strengthening. 

Climate change 

No  progress  was  made  in  the  area  of  climate  change  during  the  reporting  period.  North 
Macedonia should urgently step up its efforts to align with the EU climate acquis. 

The  country  needs  to  adopt  the  long-awaited  climate  law  and  subsequently  urgently  align 
with  and  implement  the  monitoring,  reporting,  verification  and  accreditation  (MRVA)  acquis 
for  the  purpose  of  introducing  carbon  pricing  and  aligning  with  the  EU  Emissions  Trading 
System (ETS) in its full scope. 

North Macedonia needs to finalise and adopt its revised National and Energy Plan (NECP). 
The  country  needs  to  step  up  the  implementation  of  its  revised  Nationally  Determined 
Contribution (NDC) and submit a new and ambitious NDC to the United Nations Framework 
Convention on Climate Change (UNFCCC) in line with the efforts to limit global warming to 
1.5°C.  Furthermore,  they  should  submit  their  first  Biennial  Transparency  Report  without 
delay.  

North  Macedonia  urgently  needs  to  significantly  reinforce  its  administrative  capacity  in  the 
sector  in  order  to  make  progress  in  aligning  with  the  EU  climate  acquis  and  awareness-
raising activities should be strengthened. 

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 continues to align its agricultural policy with the EU 
acquis, but some gaps remain with income support coupled to production. The new Law on 
agriculture and rural development has still to be adopted. 

All core components of the Integrated Administration and Control System (IACS) are in place 
and  operational.  The  update  of  the  Land  Parcel  Identification  System  (LPIS)  is  in  its  final 
stage.  However,  the  transfer  of  the  Farm  Register  and  LPIS  to the  authority  of  the  Paying 
Agency  (AFSARD)  is  pending.  Real-time  interoperability  with  the  animal  identification  and 

85 

 
 
 
registration system remains hampered by persistent data governance issues in the Food and 
Veterinary Agency. A Check by Monitoring (CbM) System and a Geospatial Aid Application 
System (GSAA) were piloted and led to encouraging results. However, national roll-out faces 
challenges,  particularly  in  digital  infrastructure,  human  resources  and  user  readiness. 
Further  progress  and  additional  resources  are  needed  to  develop  the  Farm  Sustainability 
Data Network (FSDN) incorporating environmental and social sustainability data in line with 
the EU acquis. 

The  Law  on  advisory  services  adopted  in  2023  set  out  the  legal  framework  for  developing 
farm advisory services in line with the EU acquis, but implementing legislation has not been 
adopted, preventing any provision of services to farmers. 

On agricultural markets – common market organisation (CMO), the overall legislation is 
yet to be aligned, and institutional mandates are yet to be defined. North Macedonia should 
prioritise implementing legislation on school schemes and producer organisations in line with 
EU acquis. 

On rural development, IPARD III implementation is continuing, with insufficient progress in 
the  entrustment  of  new  measures  under  the  IPARD  III  programme.  Strengthening  the 
administrative capacities of the IPARD III authorities needs to be addressed promptly. 

On  quality  policy,  the  legislative  framework  is  yet  to  be  fully  aligned  with  the  EU  acquis. 
Administrative capacity and resources remain insufficient, despite growth prospects. 

There has been no progress in adopting the new Law on organic farming. North Macedonia 
should make use of available support under the IPARD III programme to support the sector 
to grow 

On the anti-corruption measures, the IPARD bodies are obliged to prevent, detected and 
report irregularities.  

Chapter 12: Food safety, veterinary and phytosanitary policy 

The EU food acquis, including hygiene rules for foodstuff production, ensures 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  reproductive  material,  protection  against  harmful  organisms,  animal  nutrition 
and the use of plant protection products. 

On general food safety, the legal framework is still partially aligned with the General Food 
Law Regulation. A new Law on official controls, under preparation for a couple of years, has 
still not been adopted. The Food Safety Agency performed regular audits of laboratories in 
the veterinary and food safety area. The Agency carried out its missions in line with quality 
management standards in most areas. However, the risk-based approach and transparency 
principle  have  yet  to  be  applied  to  all  official  control  systems.  The  systems  must  be 
adequately financed to retain their sustainability. 

On  veterinary  policy,  a  new  Law  on  animal  health,  which  intends  to  align  with  the  EU 
acquis, including implementing legislation on disease control, has yet to be adopted. Control 
measures  for  animal  diseases  are  yet  to  be  updated  in  line  with  the  principles  of  the  EU 
Animal Health Law. The collection, verification and analysis of data remain insufficient. North 
Macedonia  did  not  implement  rabies  vaccination  campaigns  in  2024  and  spring  2025. 
Moreover,  efforts  on  the  rabies  surveillance  programme  remain  insufficient  and  should  be 
further  strengthened  to  provide  reliable  data  to  support  for  disease  freedom.  The  country 
secured EU cofinanced programmes for African swine fever, avian influenza and rabies for 
the period 2025-2027.  

Regarding animal welfare, North Macedonia should continue ongoing efforts to further align 
with  the  EU  acquis.  There  are  challenges  with  the  implementation  of  some  requirements 
such as the routine tail docking of pigs and the transition to enriched cages for laying hens.  

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The  2025  national  monitoring  programme  on  control  of  residues  of  veterinary  medicinal 
products and contaminants in live animals and foodstuffs of animal origin was approved by 
the  European  Commission  with  regard  to  bovine,  ovine/caprine  and  porcine  meat,  poultry, 
aquaculture,  milk,  eggs,  wild  game  and  honey.  Implementing  legislations  on  zoo-technics 
were  adopted.  Further  efforts  on  alignment  and  implementing  capacity  are  necessary  to 
implement the EU acquis on zoo-technical issues. 

Regarding the placing on the market of food, feed and animal by-products, preparatory 
activities to build an animal by-products rendering plant are yet to be completed. Overall, an 
EU compliant system of collection, storage and processing of animal by-products is not yet 
in place. 

On food safety rules and its specific rules for feed, no new developments were reported. 

On  phytosanitary  policy,  a  new  Law  on  plant  health  has  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 remained in place, and the phytosanitary information system was further developed. 
However, no measures for the sustainable use of pesticides were implemented. According to 
the  EU  Rapid  Alert  System  for  Food  and  Feed  (RASFF),  EU  Member  States  reported 
unauthorised chemicals in several vegetable shipments from North Macedonia, highlighting 
inadequacies  in  pesticide  control  within  the  country.  Significant  efforts  are  still  needed  to 
gather reliable data on national pesticide use and its effects on human health. 

The  legislation  on  genetically  modified  organisms  is  yet  to  be  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  a  landlocked  country,  North  Macedonia  does  not  apply  much  of  the  EU  legislation  on 
marine  fisheries.  Nevertheless,  it  is  still  required  to  align  with  the  relevant  parts  of  the  EU 
acquis on inland fisheries, aquaculture, control measures, data collection, structural actions, 
State  aid  and  market  policy.  The  basic  legal  framework  is  in  place  in  the  Law  on  fisheries 
and aquaculture of 2024, but its implementing legal acts are yet to be adopted. Institutional 
capacity  has  improved  thanks  to  the  creation  of  a  dedicated  Department  for  Fisheries  and 
Aquaculture  within  the  Ministry  for  Agriculture,  Forestry  and  Water  Economy.  However, 
understaffing persists. 

On resources and fleet management, resources management plans have been developed 
for  certain  water  bodies  and  major  lakes.  Progress  is  noted  in  resuming  the  restocking 
efforts  for  Ohrid  trout  in  2025  in  collaboration  with  the  scientific  institutes.  The  permanent 
ban on fishing eel and trout remains in place. North Macedonia should establish systematic 
stock  assessments  and  enforce  science-based  management  of  fish  stocks,  including 
restocking  and  zero-catch  reporting  for  sensitive  species  such  as  the  Ohrid  trout  and 
European  eel.  Even  though  marine-specific  rules  of  the  EU  acquis  do  not  apply,  North 
Macedonia  is  expected  to  align  vessel  registration  systems,  licensing  and  establishing 
monitoring systems to track their activities. 

Data  collection  has  advanced  in  terms  of  state  statistical  data  for  fisheries.  Further  efforts 
are needed to align with the EU Fisheries Data Collection Framework. 

Inspection  and  control  improved  during  the  reporting  period  despite  understaffing  of  the 
State  Agriculture  Inspectorate.  Fish  health  monitoring  is  regularly  implemented  by  the 

87 

 
 
veterinary  controllers,  but  environmental  monitoring  needs  further  improvement.  Stronger 
cooperation  between  the  State  Agriculture  Inspectorate,  Veterinary  Inspection  and  Border 
Police is needed for enforcement against Illegal, Unreported and Unregulated (IUU) fishing 
and  cross-border  violations.  Additional  efforts  are  needed  to  establish  fish  traceability 
systems and improved enforcement mechanisms. 

Financial  support  for  national  structural  actions  remains  limited.  No  State  aid  schemes 
aligned with EU rules were implemented so far.  

No progress can be reported in the area of market policy.  

Aquaculture  in  North  Macedonia,  primarily  focused  on  trout  and  carp  production,  is  in 
development.  Adoption  of  relevant  bylaws  remains  pending.  North  Macedonia  should 
accelerate its efforts to finalise the Multiannual National Strategic Plan for Aquaculture. 

International  cooperation  continues  with  Albania  under  the  Ohrid  and  Prespa  Lakes 
Agreement, although no joint meeting took place in 2024. Coordination with Greece on Lake 
Dojran  remains  functional.  North  Macedonia’s  European  Inland  Fisheries  and  Aquaculture 
Advisory Commission membership supports regional dialogue on inland fisheries. 

The  country  should  improve  anti-corruption  measures  in  concession  rights,  licensing, 
quota  allocation  and  financial  aid  distribution.  Strengthening  oversight  and  transparency, 
supported  by  digital  systems,  will  improve  accountability  and  align  with  EU  standards.  The 
transparency  of  the  aquaculture  register,  use  of  digital  records,  streamlining  licensing 
procedures, and controls and on-site verifications are areas that require improvement. 

Chapter 22: Regional policy and coordination of structural instruments 

inclusive  socio-economic  growth. 

Regional  policy  is  the  EU’s  main  tool  for  reducing  regional  disparities  and  investing  in 
sustainable  and 
‘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. 

is  operating 

through 

It 

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.  A  Public  Investment  Management  (PIM)  Decree  establishing 
the methodology for appraisal and prioritisation of projects was adopted in April 2025. A new 
legislation  on  administrative  servants  and  public  sector  employees  was  enacted  in  July 
2025. However, the job classification and salary system need to be improved to ensure job 
security, stability and retention of the staff working on EU related issues. In November 2024, 
the mayors  of four  Prespa  Basin municipalities (in Albania,  Greece,  and North Macedonia) 
signed a memorandum to promote environmental protection, sustainable development, and 
cross-border  cooperation,  potentially  linking  to EU  territorial  cooperation (EGTC)  initiatives. 
Additionally, North Macedonia should enhance the decentralisation process through a sound 
for  municipalities  and  strengthen  policy  dialogue  on  regional 
financing 
development. 

framework 

The  institutional  framework  for  the  management  of  EU  funds  under  IPA  III  has  been 
improved to reflect IPA III requirements, particularly in line with the principles of EU cohesion 
policy.  Nevertheless,  the  operating  structures  established  for  the  multiannual  operational 
programmes  have 
to  be  addressed. 
limited  administrative  capacity  which  needs 
Management and control systems need to be further aligned 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  high  staff  turnover  across  the  IPA  structures  remain  key  concerns.  In  the  reporting 

88 

 
 
period, the average turnover rate was 6%, and occupancy rate was 85%. Training remains 
weak  and  donor-dependent,  with  the  IPA  training  centre  understaffed  and  lacking  a 
functional trainer roster. 

As  regards  programming,  the  policy  dialogue  that  supports  the  strategic  planning  and 
programming of EU assistance continued over the reporting period, through the organisation 
of  meetings  of  the  sector  working  groups  (SWGs).  The  dialogue  also  improved  its  quality. 
The meeting of the SWG on Regional and Local Development, held in February 2025, was 
an  important  milestone  in  advancing  sustainable  development  and  decentralisation  in  the 
government  political  agenda.  The  new  Action  Plan  for  2024-2026  of  the  Programme  for 
Sustainable Local Development and Decentralisation 2021-2026 has been updated and was 
adopted by the government in October 2024. 

North  Macedonia  continues  to  build  on  the  experiences  gained  through  its  participation  in 
regional  and  territorial  cooperation  programmes,  engaging  in  five  cross-border  cooperation 
(CBC)  programmes,  two  transnational  programmes  and  two  interregional  programmes. 
North Macedonia also participates in the EU Strategy for the Adriatic Ionian region for which 
it  currently  holds  the  presidency  till  June  2026.  Nonetheless,  the  pressing  need  for  more 
qualified  and  experienced  staff  in  key  ministries  persists,  in  order  to  boost  programme 
implementation and effectiveness. 

The  transition  from  IPA  II  CBC  to  IPA  III  CBC  has  been  delayed  due  to  the  postponed 
ratification of the financing agreement between North Macedonia and Albania, as Albania left 
the CBC programme without a Joint Technical Secretariat in July 2024. Establishment of the 
Secretariat  commenced  in  May  2025  and  its  Head  was  selected  in  June,  while  the 
appointment of all relevant staff has been gradual and remains at a measured pace. 

Inadequate capacities and a lack of effective coordination, both at the national and bilateral 
levels,  have jeopardised  key  strategic  projects  under  the  CBC  programme.  Ineligible  costs 
continue 
the  Technical  Assistance  programme 
implemented by both partners. To address these issues, there is an urgent need to establish 
a sustainable human resource management system for staff working in the Joint Technical 
Secretariats for all CBC programmes. 

implementation  of 

to  occur 

the 

in 

On monitoring and evaluation, North Macedonia actively participates in the IPA and sector 
monitoring committees, but a limited number of conclusions are subsequently implemented. 
Weak  coordination,  delayed  inputs  from  the  institutions  and  poor  central  reporting  and 
monitoring hinder IPA reporting quality. Stronger political commitment is essential to improve 
programme implementation. 

Internal and external audit functions are in place, but internal audit needs to be strengthened 
to  better  support  the  functioning  of  the  management  and  control  systems.  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. Implementation of the audit findings by the auditees remains very low. 

The  financial  management  and  control  systems  are  functioning  but  are  under  pressure 
due to limited administrative capacity, which continued to negatively affect the programmes 
managed  indirectly  by  the  beneficiary  country.  The  weak  administrative  capacities  and  the 
consequent difficulty in absorbing funds have led to decommitments, and the risk of further 
decommitments  remains  high.  To  address  the  critical  shortcomings,  North  Macedonia  has 
reorganised  the  financial  and  control  systems  related  to  the  operational  programmes 
financed under IPA III. Further efforts are needed to address the recommendations on staff 
management and retention policy, procurement and contract planning, internal audit function 
and quality assurance. 

On the fight against corruption, the Anti-Fraud Coordination Service (AFCOS) network is 
in place and fully operational, but its capacity has to be further strengthened. 

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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 
the  appropriate 
resource  based  on  value  added  tax.  Member  States  must  have 
administrative  capacity  to  adequately  coordinate  and  ensure  the  correct  calculation, 
collection, payment and control of own resources. 

Progress  remains  limited  in  the  development  of  the  specific  institutional  set-up  and  the 
legal  and  methodological  framework  for  own  resources.  However,  some  advancement 
was  achieved  in  strengthening  public  internal  financial  control  (PIFC),  marked  by  the 
adoption  of  the  PIFC  law  in  December  2024  (for  further  information,  see  developments 
under  Chapter  16  –  Taxation,  Chapter  18  –  Statistics,  Chapter  29  –  Customs  union  and 
Chapter 32 – Financial control). 

In the area of traditional own resources, customs legislation is highly aligned with the EU 
acquis. However, the guidelines for the application of EU traditional own resources still need 
to  be  developed.  Additionally,  the  establishment  of  an  IT  system  for  managing  A  and  B 
accounts, as well as enabling access to the OWNRES electronic system for reporting fraud 
and irregularities related to traditional own resources, remains pending.  

The  2025  customs  tariff  was  adopted  to  reflect  the  most  recent  updates  in  the  EU 
Combined Nomenclature.  Nonetheless, the  capacity  of  customs  authorities requires  further 
strengthening. 

Good  progress  was  noted  in  the  consolidation  and  upgrading  of  IT  systems,  including  the 
successful completion and launch of the New Computerised Transit System (NCTS) Phase 
5  in  January  2025.  The  Customs  Administration  now  operates  in  a  fully  paperless 
environment for processing customs declarations and excise documents. 

Persistent  delays  in  the  VAT  refund  process  remain  a  concern,  with  only  15%  of  refunds 
issued  within  the  legal  deadline.  The  Public  Revenue  Office  has  maintained  its  efforts  to 
implement  the  Integrated  Tax  Information  System  (ITIS),  aimed  at  digitalising  business 
processes  and  improving  the  monitoring  of  tax  collection.  (See  further  information  under 
Chapter 16 – Taxation). 

National  accounts  and  the  compilation  of  gross  national  income  (GNI)  are  based  on  the 
European  System  of  National  and  Regional  Accounts  2010  (ESA  2010)  standards.  The 
State  Statistical  Office  (SSO)  has  continued  regular  transmission  of  GNI  and  GDP  data  to 
Eurostat under the ESA 2010 transmission programme. However, further improvements are 
required, particularly the updating of the GNI inventory, which poses continuous work for the 
SSO. 

The administrative infrastructure is yet to be operational and cannot yet ensure the timely 
and efficient functioning of the calculation, collection, payment and control of own resources. 
In  addition,  reporting  and  coordination  mechanisms  among  all  bodies  involved  require 
improvement. 

CLUSTER 6: EXTERNAL RELATIONS 

This  cluster  covers:  external  relations  (Chapter  30);  foreign,  security  and  defence  policy 
(Chapter 31). 

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. 

90 

 
 
 
On  common  commercial  policy,  North  Macedonia  continued  to  coordinate  its  positions 
and  align  closely  its  policies  with  those  of  the  EU,  including  within  the  World  Trade 
Organization.  The  Protocol  for  acceptance  of  the  Agreement  on  Fisheries  Subsidies  was 
ratified  by  Parliament  in  December  2024  and the  Instrument  for  ratification  was  deposited. 
The Trade Facilitation Agreement is fully applied. The Ministry of Foreign Affairs and Foreign 
Trade became responsible for trade policy in December 2024, as trade competences were 
transferred from the Ministry of Economy. 

North  Macedonia  participated  actively  in  the  Central  European  Free  Trade  Agreement 
(CEFTA)  and  has  continued  to  implement  the  action  plan  for  the  development  of  the 
Common  Regional  Market  (CRM)  of  the  Western  Balkan  partners.  The  country  is 
implementing the three agreements related to the CRM, covering freedom of movement with 
ID  cards,  recognition  of  professional  qualifications,  and  recognition  of  academic 
qualifications.  In  December  2024,  the  Agreement  on  mutual  recognition  of  professional 
qualifications for nurses, veterinary surgeons, pharmacists and midwives was ratified, which 
provides  mobility  of  an  expanded  number  of  professions  among  the  CEFTA  parties. 
Additional Protocol 7 on Dispute Settlement was adopted by the CEFTA Joint Committee in 
October 2024. 

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. In 2024, 12 licences for exports of dual-
use  goods  were  issued.  A  working  group  was  formed  to  prepare  a  law  on  establishing  a 
national  screening  mechanism  for  foreign  direct  investments.  North  Macedonia  has  yet  to 
align with the EU acquis on screening of foreign direct investments. 

There  were  no  new  bilateral  agreements  with  third  countries  negotiated.  Some  39 
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  policy 
and security issues at all levels. In April 2025, North Macedonia participated in the eleventh 
EU-Western Balkan Meeting of Political Directors. In November 2024, North Macedonia and 
the EU signed a Security and Defence Partnership, establishing a platform for enhanced 
dialogue on security and defence. In May 2025, the first session of the EU-North Macedonia 
Security and Defence Dialogue took place in Skopje. 

The institutional framework enabling the country’s participation in the EU common foreign 
and security policy (CFSP) and in the common security and defence policy is in place and 
operational.  North  Macedonia  has  maintained  its  track  record  of  full  alignment  with 
statements  by  the  High  Representative  on  behalf  of  the  EU  and  Council  decisions  on 
sanctions,  including  all  EU  restrictive  measures  against  Russia  and  Belarus  related  to 
Russia’s war of aggression against Ukraine. 

A  time  lag  remains  between  alignment  with  the  restrictive  measures  and  their  formal 
implementation. Other ongoing related challenges are the time and cost of translations. 

On  cooperation  with 
international  organisations,  North  Macedonia  continues  to 
contribute  to  regional  and  global  peace  and  security.  North  Macedonia  continued  to 
implement  resolution  1325  on  Women,  Peace  and  Security  through  its  Second  National 
Action Plan 2020-2025. In May, North Macedonia hosted and participated in the ‘Immediate 
Response  25’  drills,  together  with  six  other  NATO  allies.  The  country  was  elected  as  a 

91 

 
 
member  of  the  UN’s  Human  Rights  Council  for  2025-2027.  In  February  2025,  North 
Macedonia  abstained 
‘Advancing  a 
comprehensive,  just  and  lasting  peace  in  Ukraine’  marking  the  third  anniversary  of  the 
Russian full-scale invasion of Ukraine. North Macedonia instead backed the US-sponsored 
Resolution  on  ‘A  path  to  peace’.  North  Macedonia  presented  its  candidacy  as  the  fifth 
candidate in the UN Economic and Social Council (ECOSOC) elections in June 2025. 

the  UN  General  Assembly  Resolution 

from 

A bilateral immunity agreement between North Macedonia and the United States continues 
to  be  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 continues to be needed. 

On  conflict  prevention,  North  Macedonia  continued  supporting  EU  measures,  including 
through contribution to EU missions as well as to UN and NATO missions. In August 2025, 
North Macedonia deployed two new members to UNIFIL in Lebanon.  

On  non-proliferation,  North  Macedonia  implemented  the  2018  regional  roadmap  for  a 
sustainable solution to the illegal possession, misuse and trafficking of small arms and light 
weapons (SALW) and their ammunition in the Western Balkans, and in October 2024 agreed 
to the new SALW roadmap 2030. The country has a functional weapons registration system. 
Additional legislation regulating weapons, military armaments, and dual-use items is in place 
and partially aligned with EU directives and regulations. Yet, further alignment is needed. 

North  Macedonia  has  signed  all  major  conventions  and  is  aligned  with  the  EU’s  policy  on 
weapons  of  mass  destruction  (WMD).  North  Macedonia  has  committed  to  becoming  a 
member  of  the  Wassenaar  Arrangement  and  potentially  of  the  Australian  Group.  In  May, 
North Macedonia aligned with the Council Decision concerning restrictive measures against 
the  proliferation  and  use  of  chemical  weapons. The  country  has  deepened its engagement 
with  the  Organisation  for  the  Prohibition  of  Chemical  Weapons  (OPCW)  agenda,  first 
through  its  membership  of  the  OPCW  Executive  Council  in  the  period  2023-2025  and 
currently as a member of the Council (2025-2027).  

On  security  measures,  the  Law  on  classified  information  is  in  force.  North  Macedonia 
continued  to  implement  its  security  of  information  agreement  with  the  EU  on  procedures 
regarding exchange of classified information. 

On the common security and defence policy (CSDP), North Macedonia has continued to 
participate  in  EU  crisis  management  missions  and  operations  and  decided  to  deploy  32 
further  military  staff  to  the  EUFOR  ALTHEA  operation  in  Bosnia  and  Herzegovina  from 
November  2025  to  May  2026.  North  Macedonia  also  continued  to  be  a  part  of  the  EU 
Battlegroup HELBROC. In addition, North Macedonia contributes to regional cooperation in 
military medicine through the Balkan Medical Task Force. 

Hybrid  threats  remain  a  risk  to  North  Macedonia,  mainly  through  malign  foreign 
interference,  the  use  of  economic  instruments  of  power,  the  use  of  instruments  in  the 
information  sector  and  cyber-attacks  on  ICT  infrastructure.  North  Macedonia  continued  to 
implement  the  Strategy  and  Action  Plan  for  Building  Resilience  and  Dealing  with  Hybrid 
Threats  2021-2025.  An  Operational  Team  for  Cybersecurity  and  Hybrid  Threats  was 
established within the Ministry of Interior to provide guidance to build institutional resilience 
and strengthen communication with the public. Although strategies for countering cyber and 
hybrid  threats  exist,  there  is  no  clear  legal  framework  on  foreign  information  manipulation 
and  interference  (FIMI).  North  Macedonia  has  aligned  with  the  EU’s  July  2025  statement 
condemning Russia's hybrid campaigns against the EU and its partners. Additionally, North 
Macedonia has  actively engaged in  negotiations  in the  UN Open  Ended  Working  group  on 
security  of  and  in  the  use  of  information  and  communications  technologies.  Further  efforts 
are  needed  to  close  the  space  for  FIMI,  including  disinformation,  and  to  build  societal 
resilience, against this and other forms of hybrid threats. 

92 

 
 
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 Council’s approval of the negotiating framework. The Commission launched the 
screening process on the same day. The screening was completed in December 2023 and 
all screening reports on the six clusters were presented to the Council. 

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  subcommittees  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,  notably  in  the  EUFOR  ALTHEA  operations  in  Bosnia  and 
Herzegovina and the EU Battlegroup HELBROC. 

A Security and Defence Partnership between North Macedonia and the EU was signed in 
November 2024 and the EU-North Macedonia Security and Defence Dialogue was launched 
in Skopje in May 2025. 

The EU has supported the Army of North Macedonia via three bilateral assistance measures 
under  the  European  Peace  Facility  worth  a  total  of  EUR 38  million  by  April  2025,  with  a 
view  to  strengthening  their  military  equipment,  operational  effectiveness  and  mobility.  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  July  2025,  the  multiannual  financing  decision  under  the  Instrument  for  Pre-accession 
Assistance  (IPA  III)  2025-2027  was  adopted.  The  decision  allocates  EUR 67  million  for  a 
three-year period from 2025 to 2027. The funding aims to support key areas such as rule of 
law,  good  governance,  education  and  the  integration  facility.  This  complements  the  work 
done in July 2024, when three financing decisions for a total of EUR 160 million for the 2024-
2027  multiannual  operational  programmes  on  transport,  environment  and  human  capital 
were  adopted.  North  Macedonia  benefits  from  complementary  support  for  civil  society  and 
migration  management.  It  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.  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.  The  EU-supported  Youth 

93 

 
 
 
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.  Under  the  multiannual  programme,  a  substantial  amount  of  EU  financial 
assistance has been allocated to protect the environment and boost connectivity with the EU 
transport  systems.  On  transport,  with  EU  support,  construction  of  the  Gradsko-Drenovo 
highway,  part  of  the  Corridor  X  Road,  was  finalised  and  put  into  operation.  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.  Due  to  the  weak  administrative  capacity  under  this  multiannual 
programme, 
of 
EUR 122 053 668.08. 

decommitment 

cumulative 

automatic 

country 

faced 

the 

a 

Under  the  Reform  and  Growth  Facility,  North  Macedonia  benefits  from  a  programmed 
allocation of EUR 750.4 million, channelled via the country’s Reform Agenda. The allocation 
covers  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  EU  support  is  conditional  on  compliance  with  the  pre-conditions  and 
delivery  on reforms  as  set  out  in  the  Reform  Agenda  and  will  be  channelled  directly to the 
treasury  and  through  the  Western  Balkans  Investment  Framework  (WBIF)  investment 
pipeline.  

On 18 March 2025, North Macedonia received EUR 24.4 million out of the EUR 52.5 million 
as  the  pre-payment  of  7%  of  the  total  amount  provided  for  under  the  Reform  and  Growth 
Facility.  The  pre-financing  was  disbursed  for  the  state  budget  as  support  for  the 
implementation  of  the  reforms  envisaged  by  the  Reform  Agenda,  while  the  remaining 
EUR 28.1  million  will  be  injected  directly  to  the  WBIF  and  will  be  used  for  infrastructure 
projects in the country.  

The  first  set  of  reforms  was  due  in  December  2024,  consisting  of  five  steps,  with  a  total 
value  of  approximately  EUR 17  million.  In  July  2025,  the  Commission  concluded  its 
assessment and considered two out of the five steps as achieved: the adoption of the public 
financial control law, and the reform of the governance of state-owned companies. This led 
to  the  disbursement  of  the  first  tranche  of  approximately  EUR 7.9  million.  The  second 
deadline under the Reform Agenda was June 2025, with 16 reforms across all policy areas 
of  the  Reform  Agenda.  In  October  2025,  the  Commission  concluded  its  assessment  and 
considered  four  out  of  the  sixteen  steps  as  achieved,  including  the  adoption  of  relevant 
legislation  in  the  digitalisation  area.  This  led  to  the  disbursement  of  the  second  tranche  of 
approximately EUR 17.1 million.  

In  2025  there  was  enhanced  implementation  of  projects  financed  under  the  Western 
Balkans  Investment  Framework.  In  cooperation  with  the  World  Bank,  a  23 km  express 
road  from  Kriva  Palanka  to  Stracin  was  constructed,  which  was  the  last  remaining  section 
towards the border with Bulgaria. In a Team Europe spirit, work began on building the gas 
interconnector  with  Greece  and  the  Skopje  wastewater  treatment  plant,  with  KfW  joining 
forces  with  the  EIB  and  EBRD.  KfW  also  continued  to  fund  the  reconstruction  and 
rehabilitation  of  student  dormitories,  the  enhanced  implementation  of  phase  2  of  the 
Bogdanci Wind Park and the rehabilitation of North Macedonia’s six hydro power plants. 

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 adopted by the European Parliament and the Council on 
12 July  2023.  Further  efforts  are  expected  to  meet  conditions  for  the  disbursement  of  the 
second instalment.   

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.  

94 

 
 
95 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 

Note 

Annex II – Statistical data 
STATISTICAL DATA (as of 11/09/2025) 

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 per capita (euro) 
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 (%) 

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 (%) 
Death rate: number of enterprise deaths in the reference period (t) divided by the number of 
enterprises active in t (%) 

Note 

96 

2012 
2 060 i 
: 

2012 
466 703 
7 585 
3 930 e 
9 398 e 
36.2 e 
-  0.5 
1 
-  2 

: 
: 
44 

10.5 
17.8 
6.6 
65.2 i 
92.5 
23.4 
45.4 
66.8 
: 

2012 
88.1 
: 
: 

: 

2020 
2 076 i 
25 434 

2020 
669 280 
10 852 
5 840 e 
12 730 e 
41.8 b 
-  4.7 
-  7 
2 

: 
: 
47 

9.8 
19.8 
6.0 
64.3 i 
82.8 
21.6 
57.8 
70.5 
: 

2020 
102.4 
: 
: 

2021 
2 069 i 
25 435 

2021 
729 445 
11 835 
6 440 e 
14 124 e 
42.6 e 
4.5 
3 
2 

: 
: 
47 

8.3 
19.7 
6.4 
65.5 i 
83.6 
23.5 
65.4 
81.3 
: 

2021 
103.9 
66 890 
9.2 i 

2022 
1 837 i 
25 435 

2022 
816 084 
13 243 
7 230 e 
15 086 e 
42.0 e 
2.8 
-  6 
10 

: 
: 
44 e 

8.4 
19.7 
6.9 
64.9 i 
84.6 
24.0 
72.8 
93.4 
: 

2022 
103.6 
67 338 
9.6 i 

2023 
1 830 i 
25 435 

2023 
897 694 p 
14 583 p 
7 980 e 
15 823 e 
41.5 e 
2.1 p 
0 p 
2 p 

2024 
1 826 i 
25 437 

2024 
948 905 e 
15 425 e 
: 
: 
: 
2.8 e 
4 e 
-  2 e 

4 e 
: 
: 

7.6 p 
19.8 p 
6.9 p 
65.6 pi 
83.4 p 
24.7 p 
67.8 p 
80.9 p 
: 

2023 
104.3 
68 577 
9.3 i 

: 
: 
: 

6.8 e 
19.2 e 
6.6 e 
67.3 i 
84.7 e 
23.8 e 
62.7 e 
75.8 e 
: 

2024 
: 
: 
: 

: 

7.9 i 

7.1 i 

12.8 pi 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 and house prices 
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) 
*Annual change in financial sector liabilities (%) 
*Private debt, consolidated, relative to GDP (%) 

: 

: 
: 

: 

: 
: 

2012 
1.8 d 

2020 
1.2 d 

2012 
-  240.0 
- 2 007.9 
309.4 
-  163.8 
1 622.3 
60.3 
: 
: 
131.1 w 
-  19.9 w 
-  5.5 w 
111.2 w 
116.6 w 
-  55.1 
2.6 iw 

2012 
: 
: 
: 
: 

2012 
68.2 iw 
153.3 w 
1 109.6 w 
: 
: 
: 

2020 
-  318.0 
- 1 803.6 
423.7 
-  411.5 
1 473.4 
110.0 
-  1.9 
38.3 
154.7 w 
46.7 w 
31.3 
201.4 w 
42.3 
-  63.6 
: 

2020 
: 
: 
: 
: 

2020 
78.7 iw 
136.3 w 
3 314.2 w 
7 545.4 
3.0 
: 

1) 

1) 

Note 

Note 

Note 

Note 

97 

93.96 

95.96 

96.03 

4 147 i 
6 253 

2021 
3.4 d 

2021 
-  329.0 
- 2 336.9 
497.9 
-  519.5 
2 029.4 
138.5 
-  2.9 
26.1 
387.5 w 
83.0 w 
59.7 
470.5 w 
449.7 
-  61.2 
: 

2021 
: 
: 
: 
: 

2021 
80.9 iw 
123.0 w 
3 605.5 w 
8 169.1 
10.5 
: 

5 221 i 
7 026 

2022 
14.0 d 

2022 
-  801.3 
- 3 481.6 
748.5 
-  568.4 
2 500.2 
59.1 
-  3.9 
18.7 
654.2 w 
90.8 w 
67.3 
745.0 w 
519.6 
-  61.4 
: 

2022 
: 
: 
: 
: 

2022 
81.5 iw 
112.0 w 
3 830.2 w 
8 763.5 
8.2 
: 

5 938 i 
8 019 

2023 
9.0 d 

2023 
55.6 
- 2 634.1 
735.5 
-  742.4 
2 696.6 
131.6 
-  2.8 
13.7 
488.1 w 
89.7 w 
84.7 
577.7 w 
486.9 
-  57.0 
: 

2023 
: 
: 
: 
: 

2023 
77.9 piw 
114.9 w 
4 250.8 w 
9 472.4 
5.7 
: 

: 

: 
: 

2024 
4.2 d 

2024 
-  355.5 
- 3 103.4 
1 061.9 
-  800.9 
2 486.9 
57.2 
-  2.7 
2.8 
1 088.1 w 
166.9 w 
102.6 w 
1 255.0 w 
548.1 w 
-  56.8 
: 

2024 
: 
: 
: 
: 

2024 
79.9 eiw 
127.7 w 
4 753.1 w 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) 

2.10 w 
61.532 
: 
: 

1.00 w 
61.675 
: 
: 

0.94 w 
61.636 
: 
: 

1.08 w 
61.623 
: 
: 

3.88 w 
61.559 
: 
: 

2.16 w 
61.517 
: 
: 

2 193.3 w 

114.6 

304.7 

271.6 

603.1 

318.7 

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 
(%) 
People employed in the private sector as a share of total employment, persons aged 20–64 
(%) 

2012 
5 071 
3 124 
- 1 947 
101.4 iw 
63.7 iw 
51.7 iw 

2020 
7 599 
5 781 
- 1 818 
107.0 iw 
77.5 iw 
46.3 iw 

2012 
1.7 

9.8 
73.0 
76.9 

2012 
69.6 

48.2 

57.5 
38.7 
35.4 

17.3 i 
23.6 i 
6.3 i 
52.8 i 
: 

: 

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 
: 

: 

Note 

2) 

Note 

Note 

98 

2021 
9 647 
6 969 
- 2 678 
100.0 iw 
77.1 iw 
46.2 iw 

2021 
-  5.1 

4.6 
71.1 b 
75.5 b 

2021 
: 

: 

: 
: 
: 

: 
: 
: 
: 
: 

: 

2022 
12 126 
8 300 
- 3 826 
99.0 iw 
78.3 iw 
46.8 iw 

2022 
-  2.4 

: 
: 
: 

2022 
: 

: 

: 
: 
: 

: 
: 
: 
: 
: 

: 

2023 
11 149 
8 323 
- 2 826 
: 
78.7 iw 
49.2 iw 

2023 
-  1.9 

1.9 
: 
: 

2023 
: 

: 

: 
: 
: 

: 
: 
: 
: 
: 

: 

2024 
11 066 
7 784 
- 3 282 
: 
76.9 iw 
50.5 iw 

2024 
-  2.3 

: 
: 
: 

2024 
: 

: 

: 
: 
: 

: 
: 
: 
: 
: 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

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 
Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8) 
Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8), 
males 
Percentage of persons aged 30-34 with a tertiary education level (ISCED 2011 levels 5 to 8), 
females 
Participation in early childhood education (children aged 3 and over) 
Participation in early childhood education (children aged 3 and over), males 
Participation in early childhood education (children aged 3 and over), females 
Low achieving 15-year-olds in reading 
Low achieving 15-year-olds in mathematics 

31.0 
31.5 
30.3 
53.9 
25.5 

36.4 

18.8 

16.4 
16.7 
15.9 
35.7 
12.4 

21.4 

12.9 

: 
: 
: 
: 
: 

: 

: 

: 
: 
: 
: 
: 

: 

: 

: 
: 
: 
: 
: 

: 

: 

: 
: 
: 
: 
: 

: 

: 

Note 

2012 
20 902 w 
95 w 

2020 
27 182 w 
116 w 

2021 
28 718 w 
119 w 

2022 
31 859 w 
115 w 

2023 
36 614 w 
121 w 

2024 
41 239 w 
132 w 

: 
43.1 

Note 

2012 
146.0 
1 084.6 w 

: 
: 

2012 
: 

259 

2012 
21.7 
20.8 

22.6 

78.1 w 
77.7 w 
78.5 w 
: 
: 

Note 

Note 

99 

31.4 
34.9 

2020 
207.0 
896.8 w 

66.1 w 
23 w 

2020 
26.9 i 

335 

2020 
39.7 
34.3 

45.3 

30.0 
29.4 
30.6 
: 
: 

30.3 b 
35.9 b 

2021 
260.0 
902.7 w 

67.6 w 
23 w 

2021 
26.9 i 

335 

2021 
: 
: 

: 

35.1 
35.2 
35.0 
: 
: 

29.8 
31.8 

2022 
264.0 
: 

: 
: 

2022 
26.9 i 

335 

2022 
: 
: 

: 

42.4 
41.4 
43.4 
73.6 
66.2 

: 
: 

2023 
303.0 
: 

: 
: 

2023 
26.9 i 

335 

2023 
: 
: 

: 

46.1 
46.2 
46.1 
: 
: 

: 
: 

2024 
: 
: 

: 
: 

2024 
: 

: 

2024 
: 
: 

: 

: 
: 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Low achieving 15-year-olds in science 
Early leavers from education and training: proportion of persons aged 18-24 with at most 
lower secondary education (at most ISCED 2011 level 2) who are not in further education or 
training 
Early leavers from education and training: proportion of men aged 18-24 with at most lower 
secondary education (at most ISCED 2011 level 2) who are not in further education or 
training 
Early leavers from education and training: proportion of women aged 18-24 with at most 
lower secondary education (at most ISCED 2011 level 2) who are not in further education or 
training 
Proportion of persons aged 25-64 having participated in education and training (last 4 
weeks) 
Proportion of persons aged 25-64 having participated in education and training (last 4 
weeks), men 
Proportion of persons aged 25-64 having participated in education and training (last 4 
weeks), women 
Exposure of vocational education and training (VET) graduates to work-based learning (% of 
population aged 20-34) 
Share of individuals having at least basic digital skills (% of population aged 16-74) 
Share of individuals having at least basic digital skills (% of population aged 16-74), males 
Share of individuals having at least basic digital skills (% of population aged 16-74), females 
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 (%) 

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) 

: 
11.7 

11.1 

12.3 

4.1 

4.1 

4.0 

: 

: 
: 
: 
: 
: 
: 

58.3 

2012 
132.0 w 
366.8 

16.7 
93.2 w 

2012 
1 561 
0 
1 246 
0 
1 448 i 
3 004 

Note 
3) 

Note 

100 

: 
5.7 

5.7 

5.8 

2.6 

2.5 

2.7 

: 

: 
: 
: 
: 
0.37 
: 

79.4 

2020 
: 
270.3 

23.5 
96.9 w 

2020 
992 
0 
685 
0 
1 649 i 
2 597 

: 
: 

: 

: 

: 

: 

: 

: 

34.6 
38.1 
31.1 
: 
: 
: 

83.7 

2021 
: 
266.5 

22.8 
96.8 w 

2021 
886 
0 
552 
0 
1 823 i 
2 677 

65.3 
: 

: 

: 

: 

: 

: 

: 

: 
: 
: 
: 
0.37 
: 

: 

2022 
: 
267.0 

25.9 
98.1 w 

2022 
1 040 
0 
710 
0 
1 734 i 
2 738 

: 
: 

: 

: 

: 

: 

: 

: 

: 
: 
: 
: 
0.37 
: 

: 

2023 
: 
: 

32.2 
98.8 w 

2023 
936 
0 
573 
0 
1 713 i 
2 701 

: 
: 

: 

: 

: 

: 

: 

: 

: 
: 
: 
: 
: 
: 

90.8 

2024 
: 
: 

: 
: 

2024 
: 
: 
: 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross electricity generation (GWh) 

6 262 

5 347 

5 532 

5 942 

6 875 

: 

Agriculture 
Agricultural output volume index (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 

2012 
88.3 w 
1 267.9 
251.0 
152.0 
796.0 i 
: 
465.1 
0.0 
691.4 

2020 
102.2 w 
1 270.5 
222.0 
164.0 
726.0 i 
461.1 
585.5 
0.0 
794.2 

2021 
92.2 w 
1 268.8 
178.0 
186.0 
709.0 i 
389.2 
568.9 
0.0 
798.0 p 

2022 
101.9 w 
1 265.1 
165.0 
182.0 
726.0 i 
388.0 
548.4 
0.0 
803.1 

2023 
: 
1 258.6 
149.0 
193.0 
673.0 i 
291.7 
529.0 
0.0 
742.6 

2024 
: 
: 
144.0 
180.0 
615.0 i 
: 
538.3 
0.0 
790.3 

: = 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 

* = Macroeconomic Imbalance Procedure (MIP) indicator 

Footnotes: 

1)  NACE Rev2. Coverage: B-N (excl. K); P-S (excl. S94) 
2)  Laspeyres unit value index. 2021 = 100. 

3)  Part of the greenhouse gas inventory prepared in the context of the Fourth National Communication (UNFCCC). 

101