The document Economic Reform Programme 2023 – 2025 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 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 31.
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 fulfill the economic criteria for accession to the EU – the existence of a functioning market economy and capacity to cope with competitive pressure and market forces within the Union.
The Economic Reform Programme 2023-2025 text was accepted by the Government of the Republic of North Macedonia on 1st of February 2023 and was officially submitted to the European Union on the same day.
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 June 2022. 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 2023-2025 several strategic and other documents were taken into account:
- The Work Program of the Government of the Republic of Macedonia 2022-2024, published by the Government;
- Revised fiscal strategy 2023-2025 (with outlook to 2027)
- Budget of the Republic of North Macedonia for 2023;
- Tax System Reform Strategy 2021 – 2025;
- Revised 2023-2025 Public Debt Management Strategy (with prospects until 2027)
- Fiscal Sustainability and Economic Growth Support Plan 2022;
- Economic Growth Acceleration Plan 2022 – 2026;
- Public Finance Management Reform Programme 2022-2025;
- National Program for the Adoption of the Acquis of the European Union, published by SEA;
- Stabilization and Association Agreement with the European Communities and their Member States, published by the SEA;
- Strategy for formalization of the informal economy in the Republic of Macedonia 2018-2022, published by the Ministry of Labour and Social Policy in the section on Documents in the field of labour relations and employment;
- Program for Employment and Social Policy Reform 2020 – ESPR, published by the Ministry of Labour and Social Polic;y
- Health Strategy 2021 – 2030;
- Strategy for Energy Development;
- Water Strategy for the Republic of Macedonia 2012 – 2042;
- National Strategy for Sustainable Development for the Republic of Macedonia;
- National transport strategy;
- Small and Medium-sized Enterprises Strategy, published by Ministry of Economy;
- Education Strategy 2018 – 2025 and Action Plan;
- Industrial Strategy 2018 – 2027;
- National Employment Strategy 2021 – 2027;
- Annual assessment of the Economic Reform Programme 2022-2024;
- Recommendations from the Joint conclusions of the Economic and Financial dialogue on ;
- 2022 Progress Report on the Republic of North Macedonia;
- The Multi-annual Action Plan for a Regional Economic Area in the Western Balkans
- OECD Report – Competitiveness in Southeast Europe: Policy Review 2021;
- The UN Sustainable Development Goals;
- The Southeast Europe Strategy 2030, published by the Regional Cooperation Council;
- The European Green deal;
- The Green Agenda of the Western Balkans;
- The Digital agenda;
- The Economic Investment Plan for Western Balkans.
Summary of reform measures in ERP 2023-2025
A. Reforms addressing the three key challenges: |
1. Strengthening of human capital for inclusive development |
Measure 1: Further development of qualification system |
Measure 2: Increasing the flexibility and security of the labour market |
Measure 3: Enhancing the system for social inclusion of vulnerable groups |
Measure 4: Strengthening the quality of the Primary Health care |
2. Fostering the green transition |
Measure 5: Promotion of renewable energy sources |
Measure 6: Improvement of energy efficiency |
Measure 7: Establishing wastewater collection and treatment infrastructure in accordance with EU requirements |
Measure 8: Establishing an integrated and financially self-sustainable waste management system |
3. Improving the competitiveness of domestic companies, their integration in the global value chains and formalisation of the economy |
Measure 9: Implementation of an Intelligent Transport System (ITS) along Corridor X |
Measure 10: Broadening the scope of digital services provided on National E-service Portal |
Measure 11: Streamline the use of parafiscal charges |
Measure 12: Hybrid fund for green and digital start-ups and innovative SME’s |
Measure 13: Financial support for Roma entrepreneurs |
Measure 14: Establishment of Management Information System on State Aid |
Measure 15: Introducing mechanisms for formalising informal work in sectors with high incidents of undeclared activities |
Measure 16: Support to development of the innovation eco system |
Measure 17: Strengthening the market rules in the Republic of North Macedonia |
Measure 18: Modernisation of the postharvest technologies and processes of the agricultural products |
B. Reforms addressing other challenges: |
Measure 19: Establishing Integrated Tax Information System in Public Revenue Office (PRO) |
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/neighbourhood-enlargement/policy/policy-highlights/economic-governance_en