North Macedonia was granted EU candidate status in December 2005.The prospect of EU integration depends on progress in key areas, including the judiciary’s efforts to combat corruption and organized crime, as well as improvements in intelligence services and public administration, particularly in the management of public resources.
Programme support for North Macedonia
In North Macedonia, we are part of the effort to establish a sound and transparent public finance management system. Digital transformation of society and inclusive ecosystems is the principal objective of activities focused on investing in SDGs. We also supported projects that engage private sector in development cooperation. North Macedonia has been a programme partner since 2018.
Public finance
Leveraging the expertise and successful experience from Slovak public finance reforms help align North Macedonia’s financial governance with EU standards. Current activities focus on:
- Strengthening tax compliance and efficiency, aiming to reduce the informal economy, corruption, and tax evasion,
- Promoting fiscal decentralization and empowering local governments to effectively manage resources,
- Strengthening the implementation, monitoring, and evaluation of the National Development Strategy (NDS) and establishing auditing mechanisms to ensure alignment with the national development goals and SDGs.
The third intervention builds on earlier support provided by the Slovak Ministry of Finance (MFSR). Previously, MFSR assisted the government of North Macedonia in preparing the National Development Strategy for 2024-2044. This strategy is the most comprehensive framework aimed at ensuring coordinated, holistic development of the country. Specifically, the MFSR contributed to establish a national cooperation structure that brings together key stakeholders, including the public, to participate in the formulation, communication, monitoring, and adjustment of the strategy.
Private sector engagement
Thanks to co-funding from the private sector, we are implementing the Enhancing Cybersecurity in Water Services Management in North Macedonia project to prevent threats to cybersecurity systems in water companies. This will strengthen the cyber security of water infrastructure operators, improve coordination with national cyber security agencies and promote a safer and more resilient water infrastructure.
In the past, projects supported through Resource Mobilization Facility (RMF) focused mainly on digital transformation of municipalities and waste management. See details for each project here.
We are proud to see how Slovakia’s long-standing experience in public finance reform has translated into tangible benefits for North Macedonia. For us, this is what partnership is about: sharing what we’ve learned and supporting reforms that genuinely improve people’s lives. Through the Public and Private Finance for Development project, we have been able to share practical know-how in areas such as transfer pricing, automatic exchange of tax information, tackling the grey economy, and strengthening public financial management. These efforts are helping make public finances more transparent, predictable, and fair. Our cooperation has also extended to shaping the National Development Strategy 2024–2044, a 20-year vision for the country’s growth and transformation. We’re glad to stand with North Macedonia as it moves forward with its long-term development plans and its EU ambitions.
Participation in the Public Finance for Development programme strengthened Public Revenue Office’s capacities to introduce international taxation as well as the knowledge in the transfer pricing segment. The expert guidance from the Financial Administration of the Slovak Republic at the organized on-job trainings improved tax officials’ acquaintance of international practices and we learned from Slovak experience in the transfer pricing regulation, conducting financial risk analysis, and transfer pricing audit.
The State Audit Office successfully enhanced the state audit capacities under the Public Finance for Development Programme. We conducted five training courses through which the SAO employees exchanged knowledge and experience with leading international and local experts. They significantly improved state auditors’ skills and capacities and are now applied in ensuring high-quality and transparent audit reports, available to all the stakeholders. Insights transferred by the Slovak experts are particularly significant, due to country’s strategic commitment for EU membership.
In cooperation with UNDP and under the Public Finance for Development programme, the Ministry of Finance of North Macedonia has over the past three years improved its operations in fiscal decentralization and tax policy, transfers from the central budget, audit and accounting, informal economy and cash flow reduction. Together, we conducted a study identifying the leading factors behind the informal economy, followed by an awareness raising campaign on the “grey economy” consequences. The ministry’s staff greatly valued the trainings and study visits, which effectively conveyed Slovakia’s expertise in automatic data exchange for tax purposes.
