Economic Reform Programme

The document Economic Reform Programme 2024-2026 can be downloaded on the following link.

In order to support better economic governance, the European Union (EU) in the Enlargement Strategy of October 2013 introduced a new approach called the European Semester Light, with the countries of the Western Balkans and Turkey being invited by the European Commission (EC) from October 2014 to improve economic policies and strengthen economic governance through the preparation of economic reform programmes – ERP.

The Republic of North Macedonia participates in the process of pre-accession harmonization of economic policies with the European Union and prepares an annual ERP that contains macroeconomic and fiscal policies and indicators, as well as structural reforms and measures to improve the country’s competitiveness and reduce unemployment. The Programme in the part of structural reforms will be the basis for the preparation of the reform agenda for the country, in accordance with the Growth Plan for the countries of the Western Balkans announced by the EU, with the aim of accelerated integration of the countries into the EU single market. The preparation of ERP at the level of the Government is coordinated by the Ministry of Finance and submitted to the EC after its adoption by the Government of the Republic of North Macedonia no later than January 15.

After delivering ERP to the EC, it is assessed through assessment missions in the country by the EC, the European Central Bank and Eurostat. Then a dialogue within the Council of the EU begins. First, a technical level discussion within the auxiliary bodies of the Council takes place in preparation for a dialogue within the Council of the EU represented by the so-called “trio”, i.e. the current and two consecutive presidencies, the finance ministers and the central bank governors of the countries – candidates for EU membership of the Western Balkans and Turkey. The process ends with the adoption of joint conclusions based on the ERP assessments and recommendations that are given to improve the macroeconomic policy of the country, the management of public finances and the quality of structural reforms (the so-called Policy Guidance). The candidate countries, when preparing the next ERP, are obliged to report on the level of implementation of the recommendations in the last year, in order to fulfil the economic criteria for accession to the EU – the existence of a functioning market economy the capacity to cope with competitive pressure and market forces within the Union.

The Economic Reform Programme 2024-2026 text was accepted by the Government of the Republic of North Macedonia on 16^th of January 2024 and was officially submitted to the European Commission on 17^th of January 2024.

The preparation of ERP as a coherent strategic document and its timely submission to the European Commission is a confirmation of the capacity of the country’s administration in terms of coordination of economic policies and work efficiency. ERP is a common result of several institutions, and the overall preparation is coordinated by the Ministry of Finance.

ERP is a complex document that is prepared according to the EU Guidance note for the preparation of the ERP from July 2023. When selecting key sectoral structural reforms, institutions take into account the challenges and problems in the respective areas, which influence the increase of the competitiveness and economic growth of the country, as well as the creation of jobs. During the preparation of ERP 2024-2026 several strategic and other documents were taken into account:

Summary of reform measures in ERP 2024-2026

5.1 Area Competitiveness

5.1.1 Structural reform 1 – Enabling business environment and further integration in EU single market

5.1.1(1) Introduce mechanisms for formalising informal work in sectors with high incidents of undeclared activities

5.1.1(2) Support to development of the innovation eco system

5.1.1(3) Higher compliance to the EU Acquis in the area of single market

5.1.2 Structural reform 2 – Ensuring stable and sustainable food supply

5.1.2(4) Modernisation of the postharvest technologies and processes of the agricultural products

5.2 Area Sustainability and resilience

5.2.1 Structural reform 3 – Strengthen resilience to climate change and reduce environmental pollution

5.2.1(5) Promotion of renewable energy sources

5.2.1(6) Improvement of Energy Efficiency

5.2.1(7) Establishing wastewater collection and treatment infrastructure in accordance with EU requirements

5.2.1(8) Establishing an integrated and financially self-sustainable waste management system

5.2.2 Structural reform 4 – Building efficient digital public services

5.2.2(9): Broadening the scope of digital services provided on National E-service Portal

5.2.2(10): Implementation of an Intelligent Transport System (ITS) along Corridor X

5.2.2(11): Establishment of Management Information System on State Aid

5.2.2(12): Establishing Integrated Tax Information System in Public Revenue Office

5.3 Area Human capital and social policies

5.3.1 Structural reform 5 – Labour force efficiency improvement

5.3.1(13): Further development of the qualification system

5.3.1(14): Increasing the flexibility and security of the labour market

5.3.1(15): Strengthening the quality of the Primary Health Care

5.3.1(16): Building, monitoring and evaluating human resources in health

5.3.2 Structural reform 6 – Further implementation of social reform package

5.3.2(17): Enhancing the system for social inclusion of vulnerable groups

More information on the European Semester and Economic Governance from the aspect of fulfilling the Copenhagen criteria can be found on the following web pages:

https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/eu-economic-governance-monitoring-prevention-correction/european-semester_en and

https://ec.europa.eu/neighbourhood-enlargement/policy/policy-highlights/economic-governance_en

On the Ministry of Finance website you can download all the previous Economic reform programmes and Pre-accession economic programmes.