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Macedonia’s Regulatory Bodies Face Criticism Over Independence

The European Commission has highlighted concerns over the independence of Macedonia’s financial supervisory bodies in its latest report. The country, an official candidate for EU membership, has made progress in establishing a functioning market economy and improving dialogue with the business community.

Weaknesses in the Rule of Law Hinder Proper Functioning

However, the commission’s 2011 report notes that weaknesses in the rule of law continue to hinder the proper functioning of the internal market. Additionally, financial regulatory bodies lack independence, casting doubts over their ability to effectively oversee the country’s financial sector.

Economic Recovery and Structural Unemployment Concerns

The report praises Macedonia’s economic recovery, which has been driven by external demand and increased investment. However, it warns that high structural unemployment remains a major concern, particularly among young people and those with limited education.

Simplifying Regulatory Framework and Improving Communication

Macedonia has made some progress in simplifying its regulatory framework and improving communication with the business community. The country’s central bank has also taken steps to improve its independence. However, more needs to be done to address the country’s significant structural weaknesses.

Recommendations for Further Reform Efforts

The commission’s report calls for further reform efforts to:

  • Reduce bureaucratic procedures
  • Improve staffing and resource allocation within regulatory bodies
  • Enhance contract enforcement
  • Strengthen the State Audit Office and ensure its independence is anchored in the Constitution

Ongoing Accession Negotiations with the EU

Macedonia’s accession negotiations with the EU are ongoing, with the country seeking to join the bloc in the medium term. The commission will continue to monitor the country’s progress and provide guidance on areas that require improvement.