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Home POLITICS INTEGRATION

EU-North Macedonia: Commission proposes up to €100 million in assistance for North Macedonia

February 7, 2023
in ECONOMY, INTEGRATION, NEWSROOM, POLITICS
EU-North Macedonia: Commission proposes up to €100 million in assistance for North Macedonia
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The European Commission is proposing to provide up to €100 million in Macro-financial Assistance (MFA) to North Macedonia. With this proposal, the Commission is standing by North Macedonia in challenging times, as, following Russia’s war of aggression against Ukraine, the country’s external balance has deteriorated rapidly because of its high dependency on imports of fuel and electricity. North Macedonia also faces large external debt repayment needs in 2023 in a context of challenging financing conditions.

The proposed assistance would contribute to covering North Macedonia’s financing needs in 2023 and 2024, supporting both fiscal sustainability and structural reforms. Today’s proposal accompanies a 24-month support programme concluded with the International Monetary Fund (IMF), of up to €530 million, ec.europa.eu informs.

The assistance would come in the form of loans, to be paid in two tranches. These two payments would be conditional on the implementation of policy measures which need to be agreed between North Macedonia and the EU in a Memorandum of Understanding. The Memorandum of Understanding is likely to focus on policy reforms in the areas of fiscal governance, tax policy, the management of public investment, public-private partnerships, business environment, transparency in state aid, energy efficiency, judiciary reform, and the fight against corruption. The payments would also be conditional on a positive track record in implementing the IMF programme. These reforms will support North Macedonia on its path to EU membership.

Ursula von der Leyen, Commission President, said:  “We stand by North Macedonia in these challenging times. Today, we propose up to €100 million in Macro-financial Assistance to support the country’s economy, contributing to covering its financing needs for the next two years.”

It is now for the European Parliament and the Council to consider and adopt the proposal to provide Macro-financial Assistance to North Macedonia. Once adopted, the proposal will enter into force and payments can follow, provided policy conditions, to be laid out in a Memorandum of Understanding between North Macedonia and the EU, are met.

 

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