The European Commission has provided €50 million in loans to North Macedonia to support the country’s economy, severely affected by the recent energy crisis triggered by Russia’s invasion of Ukraine. This assistance is part of an ongoing Macro-Financial Assistance (MFA) operation, which will help North Macedonia achieve macroeconomic stability and implement further reforms in conjunction with the ongoing International Monetary Fund (IMF) programme. The assistance will also help North Macedonia advance on its European path.
The European Parliament and Council, in a display of strong solidarity, adopted the Commission’s proposal for this MFA operation on July 12, 2023. This united front underscores the European Union’s unwavering support for North Macedonia. The implementation of this operation will be complemented by EU bilateral cooperation under the Neighbourhood, Development and International Cooperation Instrument-Global Europe.
Since 2020, the EU has provided approximately €210 million in MFA support for North Macedonia, including the recent payment of €50 million. The release of this funding followed the Commission’s assessment that North Macedonia had fulfilled the relevant policy commitments agreed with the EU.
North Macedonia’s commitment and progress in various areas are commendable. The country has established an independent Fiscal Council and bolstered public investment management, demonstrating its dedication to improving public finance. It has also implemented tax policy measures to broaden the tax base and formalise the informal economy. Furthermore, North Macedonia’s efforts to enhance energy efficiency and strengthen its judiciary with a new Strategy for Judicial Reform are noteworthy. These achievements are a testament to North Macedonia’s determination to meet its commitments.
The overall worth of the ongoing MFA operation in North Macedonia is up to €100 million in loans. After the first tranche of €50 million disbursement, the second tranche of the same amount remains available, depending on progress on the agreed policy conditions.
