Macedonia’s Financial Data Breach Consequences Raise Concerns

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The former Yugoslav Republic of Macedonia is facing the consequences of a financial data breach, according to a recent report from the European Commission. The country’s economy has been affected by the challenging external economic environment, with the economic situation deteriorating mildly in 2012.

Structural Weaknesses Remain

The report highlights that while Macedonia remains well advanced and has made progress towards becoming a functioning market economy, significant structural weaknesses remain. These include:

• Corruption
• Inadequate public financial management

These weaknesses have led to concerns about the country’s ability to cope with competitive pressures and market forces within the European Union in the medium term.

Recommendations for Reform

The Commission has recommended that the country implement its reform programme vigorously to reduce these structural weaknesses. The report notes that:

• The business environment is still affected by corruption, which hinders economic growth and development.
• Further efforts must be made to address this issue and improve the overall business climate.

Impact on EU Obligations

The financial data breach has also raised concerns about the country’s ability to implement its obligations under the Stabilisation and Association Agreement (SAA) with the EU. The Commission has recommended that the country move to the second stage of the association, but this will depend on its ability to address the structural weaknesses and implement reforms.

Progress Towards EU Accession

The report concludes that while Macedonia has made progress in aligning itself with EU legislation and policies, there is still much work to be done to achieve full alignment. The country must continue to reform and improve its economic governance if it is to move forward in the accession process.

Visa-Free Travel Recommendations

In related news, the Commission has recommended that visa-free travel for citizens of Macedonia to the Schengen area should remain in place. This decision was made following a review of the country’s progress in implementing EU-related reforms and good neighbourly relations with other countries in the region.

Accession Progress Report

The full report can be found on the European Commission’s website, along with further information on the country’s progress towards accession.