mk flag go to the original language article
This article has been translated by Artificial Intelligence (AI). The news agency is not responsible for the content of the translated article. The original was published by MIA.

The EU has provided 50 million euros in macrofinancial assistance to North Macedonia.

by AI | 10.May 2024 | Europe in brief AI

North Macedonia has made progress in the field of public finances by setting up an independent fiscal council and by strengthening the management of public investments. To improve public revenues, North Macedonia adopted tax policy measures that expand the tax base. The government also made further progress towards formalizing the informal economy and took steps to improve energy efficiency. Finally, the government strengthened the judiciary with a new Justice Reform Strategy, highlights the European Commission.

EU and North Macedonia flags (Photo: MIA Archive)

Brussels – The European Commission has provided loans to North Macedonia amounting to 50 million euros, as the first tranche from the current macro-financial assistance operation for the country, reports MIA correspondent from Brussels.

As announced today by the European Commission, these funds are intended to provide additional support for North Macedonia, whose economy has been severely affected by the energy crisis caused by the Russian invasion of Ukraine.  

– The assistance will support macroeconomic stability and will ensure further reforms related to the current International Monetary Fund (IMF) program for North Macedonia. This will also help North Macedonia to advance on its European path, is added in the statement. 

Providing this support follows the European Commission’s determination that the country has met the relevant political commitments agreed with the EU for the release of the first tranche.  

– North Macedonia has made progress in the area of public finances by forming an independent fiscal council and by strengthening the management of public investments. To improve public revenues, North Macedonia has adopted tax policy measures that broaden the tax base. The government has also made additional progress towards formalizing the informal economy and has taken measures to improve energy efficiency. Finally, the government strengthened the judiciary with a new Strategy for Judicial Reform, emphasizes the European Commission. 

Otherwise, the entire current operation for macro-financial assistance for the country is in a total value of up to 100 million euros in the form of loans. After the disbursement of this first tranche of 50 million euros, a second tranche in the same amount remains available, the release of which will depend on progress in the implementation of agreed conditions. 

Macro-financial assistance is part of the broader EU engagement with neighboring countries intended as a unique instrument of the Union for crisis response, which is available to countries involved in the enlargement process, as well as countries from the broader European neighborhood facing serious balance of payments issues. 

The proposal from the EC for this macro-financial assistance operation for North Macedonia was approved by the European Parliament and the Council of the EU on July 12 last year. Overall, since 2020, including the latest 50 million euros, the EU has so far paid out about 210 million euros in support under the macro-financial assistance. (May 10, 2024)