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European Western Balkans
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Key findings of the 2024 European Commission Report on North Macedonia

European Commission published its annual enlargement reports yesterday. We report the key findings of the Report on North Macedonia in the area of democracy, rule of law and economic criteria:

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

The Parliament was found to exercise its powers in a mostly satisfactory way. However, political polarisation in Parliament persisted, delaying the adoption of important reforms and several long-overdue appointments. In November 2023, new rules of procedure were adopted based on a high degree of consensus, completing the commitments under the ‘Jean Monnet Dialogue’. The new Parliament, constituted in May, was able to find a broad consensus on the implementation of the new rules of procedure, on the need for a constructive and inclusive political debate and should accelerate its work on the continuation of reforms necessary for the EU integration process.

Parliament should plan and adopt its agenda carefully and limit the use of fast-track legislative procedures or inappropriate use of the ‘EU flag’ procedure, which has been the practice up to now. Crossparty collaboration is essential to accelerate the implementation of EU-related reforms, in the interest of citizens. Despite attempts, thus far, no progress was made on adopting the constitutional changes, with a view to including in the Constitution citizens who live within the borders of the State and who are part of other peoples, such as Bulgarians, as referred to in the Council Conclusions of 18 July 2022, which the country committed to launch and achieve.

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

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

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

North Macedonia remains moderately prepared in the area of public administration reform. Limited progress was made during the reporting period, notably the adoption of amendments to the Law on state organisation, which brought about improvements by clarifying lines of accountability, introducing impact assessments for the creation of new state bodies and decreasing the number of primary budget users.

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

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

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

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

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

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

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

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

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

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