North Macedonia

Although being spared the inter-ethnic violence following the break-up of Yugoslavia in the early 1990s, the North Macedonia´s socioeconomic and political development has been hindered by decades of political turmoil. It included an ethnic-Albanian uprising in the beginning of the 2000s; a dispute over the country´s name with Greece, and years of authoritarian rule filled with suspicions of corruption. The country´s path took a different turn after 2017, following massive popular protest and a six-month political stalemate, when a new coalition government was formed, led by former opposition leaders. A set of reforms was launched, and in 2018, an agreement was reached with Greece on a new name – the Republic of North Macedonia.
North Macedonia was granted the EU candidate status in December 2005, but opening of the accession negotiations had later been made conditional to implementation of the “Urgent Reform Priorities”. In light of the progress achieved, the path towards opening accession was unblocked in 2018. The EU integration outlook will depend on progress being made in key areas, such as the judiciary, fight against corruption and organised crime, intelligence services and public administration, including managing public resources.

Public Finance for Development Program in North Macedonia

North Macedonia had been added among the project countries in 2018. The decision of the Project Board to support activities in the country followed the request for technical assistance by the Ministry of Finance of North Macedonia. The demand has been centred on transfer pricing and exchange of information for tax purposes.

The technical assistance programme that has been set up is fully aligned with the measures and activities of the 2018-2020 PFM Reform Programme, and the Ministry of Finance of North Macedonia’s long-term vision regarding public finance management. The action focuses on reinforcing the capacities of the Ministry of Finance and the Public Revenue Office regarding the introduction of an international taxation process, and strengthening the tax administration capacities of the local self-government units in the country.

The cooperation is based on three main components:

  1. Guidance on Transfer Pricing
  2. Exchange of Information for Tax Purpose Component
  3. Improvement of administration property taxes

The activities include expert missions in North Macedonia, desk reviews and consultations, study visits in Slovakia, and design of Guidelines by the national consultants.