Skopje, 19 October 2021 (MIA) – The European Commission adopted on Tuesday the 2021 Enlargement Package, containing reports on the progress of the six Western Balkan countries, including North Macedonia. In the report on North Macedonia, which was presented in the European Parliament on Tuesday afternoon, the European Commission criticizes the blockade of the start of negotiations and expresses satisfaction over the fact that North Macedonia continues to meet EU accession criteria and the fact that authorities are exhibiting clear pro-European orientation. “North Macedonia continues to meet conditions for starting accession negotiations. The authorities in North Macedonia continued to demonstrate publicly their commitment to advance on their EU path. The country has continued to maintain a steady and determined pace in advancing EU reforms,” reads the report, adding that North Macedonia also increased efforts to continue to deliver tangible results. It adds that EU reforms are a long-term process that requires constant efforts from the government and the opposition, as well as all other social stakeholders. Moreover, it commends the fact that North Macedonia has increased its alignment with the EU common foreign and security policy to 96%, 2 percentage points more compared to 2020. “In March 2020, the European Council endorsed the decision to open accession negotiations with North Macedonia. The delays in the official launch of accession negotiations are having a negative impact on the credibility of the EU,” warns the European Commission. The Commission also stresses that pending bilateral issues between North Macedonia and Bulgaria need to be solved as a matter of urgency. Following is a summary of the European Commission’s report on reform progress in North Macedonia: Political criteria On the political criteria, North Macedonia continued its efforts to strengthen democracy and the rule of law, including by activating existing checks and balances and through an outreach on key policy and legislative issues. The country has shown its commitment to deliver in the key areas of the fundamentals, including through the ‘Europe at Home' agenda and the ‘Action Plan 21' on the fight against corruption. The first round of the local elections took place on 17 October. The Office for Democratic Institutions and Human Rights of the Organisation for Security and Cooperation in Europe (OSCE/ODIHR) has deployed an Election Observation Mission. Limited progress was made in addressing the outstanding recommendations from OSCE/ODIHR and the Venice Commission over the reporting period. The comprehensive review of electoral legislation and the adoption of the relevant laws still need to be finalised in a timely and inclusive manner. Opposition parties remained actively engaged in Parliament and on some occasions supported key EU related laws. Parliamentary work was nevertheless impeded by political polarisation, compounded by COVID-19, which on occasion affected its ordinary functions. Efforts are needed to strengthen the role of Parliament as a forum for constructive political dialogue, particularly on the EU reform agenda. Parliament continued to exercise its legislative functions. Great care should be taken in the use of fast track procedures, which need to be limited to ensure effective scrutiny and consultation of legislation. Parliament continued to exercise proper oversight of the executive. The proposals for internal reform of Parliament, agreed during the third round of the ‘Jean Monnet Dialogue' in early 2020, have yet to be put in place. The criminal responsibility for those who orchestrated or committed violence in the attack on Parliament on 27 April 2017 continued to be established, including through first instance verdicts. The government needs to keep up the reform momentum and focus on the implementation of the existing legal framework rather than launching sporadic new initiatives. Timely and substantial implementation of the reform agenda requires sustained support from society as a whole. Inter-ethnic relations remained stable and the Ohrid Framework Agreement continued to be implemented. Civil society organisations continued to be active and have an important role to play in the reform process. Further efforts are needed to ensure a more timely, meaningful and transparent consultation process with civil society. In the context of the challenges faced in recovering from the COVID-19 crisis, governmental and non-governmental actors are expected to build long-term partnerships and to strengthen existing cooperation. The reform of the intelligence sector, resulting in new structures being established and a legal framework being developed, has almost been completed. The country needs to strengthen the capacity for parliamentary oversight over the intelligence services. Public administration reform North Macedonia is moderately prepared in the reform of its public administration. Some progress was made in finalising the horizontal functional review of the state administration. It is important that the horizontal functional review is adopted by the government. North Macedonia is currently reviewing the legislative framework on human resources management through the revision of the Law on Administrative Servants and the Law on Public Service Employees, and is introducing a new Law on Top Management Service. The new framework should improve the management of human resources across the administration and will contribute to ensuring better respect for merit-based recruitments, promotions and dismissals, including at senior management level. “The monitoring reports on implementation of the Public Administration Reform Strategy and the Public Financial Management Reform Programme were presented. The State Commission for the Prevention of Corruption (SCPC) continued to address cases of alleged nepotism, cronyism and political influence in the process of recruitment of public sector employees and in the process of appointment of members of supervisory and management boards. Its findings and recommendations need to be systematically followed-up by the concerned institutions,” reads the report. Most of last year’s recommendations have been partially implemented. In the coming period, the country should, in particular:

• adopt and implement the revised Law on Administrative Servants, the Law on Public Service Employees and the Law on Top Management Service;
• adopt and implement the Law on State Organisation and other related laws in line with the recommendations for the new organisation of state administrative bodies;
• ensure full implementation of the Law on General Administrative Procedures.

Public scrutiny of government work is ensured through the publication of government monitoring reports and improved communication. The report adds that professional development remains unsystematic. Many institutions offer specialised training to their employees. Nevertheless, there is no centralised database of all trainings offered by various institutions. Rule of law and fundamental rights The country has some level of preparation / is moderately prepared to apply the EU acquis and European standards in this area. Overall, some progress has been made, including through strengthened judicial independence and addressing instances of police impunity. The implementation of the judicial strategy continues, including the Law on the Public Prosecutor’s Office, ensuring accountability for the crimes arising from and related to the illegal wiretaps. The State Commission for the Prevention of Corruption, using its reinforced powers, continues to deliver results, including on high-level cases. Corruption is prevalent in many areas and remains an issue of concern. North Macedonia continue to meet its general obligations on fundamental rights but there are challenges in implementing the existing legislation. The Ombudsman’s Office needs an increase of its budget, allowing recruitment of specialised staff, in order to better accomplish its role. The functional independence of these bodies must be guaranteed at all times, including through the appropriate financial resources.

• Judiciary

The judicial system of North Macedonia has some level of preparation/ is moderately prepared. Some progress was achieved regarding the implementation of the judicial reform strategy, thereby further addressing the recommendations from the Venice Commission and the Senior Experts' Group on systemic Rule of Law issues. Efforts are still needed to ensure systematic implementation of the updated action plan on the judicial reform strategy and the human resources strategies for the judiciary and prosecution. Judicial institutions continue applying the new rules for the appointment, promotion, discipline and dismissal of judges and prosecutors. Most of the implementing legislation of the revised Law on the Council of Public Prosecutors was adopted. It is important to continue implementing the legal framework and strategic plans related to the reform of the Judicial Council and the Council of Public Prosecutors.  A new draft Law on the Academy for Judges and Prosecutors should maintain the Academy as the sole entry point to the judiciary and prosecution and should secure a fair and transparent access to these professions.

• Fight against corruption

North Macedonia has some level of preparation / is moderately prepared in the prevention and fight against corruption. Some progress has been made, as the country continued to consolidate its track record on investigating, prosecuting and trying several corruption cases, including at high level, and strengthened its institutional framework, especially the State Commission for Prevention of Corruption (SCPC) and the Prosecutor for Organised Crime and Corruption (OCCPO). In April 2021, Parliament adopted the 2021-2025 National Strategy for the Prevention of Corruption and Conflict of Interest and related Action Plan, consolidating the country's commitment to prevent corruption and sanction corrupt behaviour. The country has some level of preparation in the fight against organised crime. The legislative framework is broadly in line with European standards and efforts to implement strategies against organised crime must continue. Some progress was made at the operational level, but more needs to be done to improve the effectiveness of law enforcement in fighting certain forms of crime, such as money laundering and financial crimes. Coordination remains crucial for all stakeholders involved in combatting organised crime.

• Fundamental rights

The legal framework on the protection of fundamental rights is largely in line with European standards. The Law on the Prevention and Protection against Discrimination and the Commission for the Prevention and Protection against Discrimination are in place. The deinstitutionalisation process made real progress and almost all of the children concerned were resettled to community-based care. The Ministry of Labour and Social Policy is investing in community services, including supporting victims of gender-based violence. Important progress was achieved with the adoption of the Law on Prevention and Protection from Violence against Women and Domestic Violence, with cross-party support. Recommendations of European and international human rights bodies, particularly regarding the treatment of detained and convicted persons must be fully implemented without delay.

• Freedom of expression

North Macedonia has achieved some level of preparation/ is moderately prepared in the area of freedom of expression. Overall, there was limited progress during the reporting period. The general context is favourable to media freedom and allows for critical media reporting although there have been increased tensions during the COVID-19 crisis. Self-regulation efforts need to be resumed and followed by concrete results for the advancement in professional standards of journalism. Greater transparency should be ensured regarding media advertising by state institutions and political parties. The authorities need to increase their efforts to reform the public service broadcaster, ensuring its independence and financial sustainability. The public service broadcaster adopted a five-year development strategy but the reform process is hampered by delays in appointing the members in its managing council and of the council of the Agency for Audio and Audio-visual Media Services. The COVID-19 crisis had a strong economic impact on the media sector, especially on the regional and local actors. Media outlets were included in the relief package, but the labour rights of journalists still need to be addressed. Good neighbourly relations and regional cooperation Good neighbourly relations and regional cooperation form an essential part of North Macedonia’s European integration process and contribute to stability, reconciliation and a climate conducive to addressing open bilateral issues and the legacies of the past. North Macedonia maintained its engagement in a number of regional cooperation initiatives, such as the Central European Free Trade Agreement (CEFTA), Energy Community, Transport Community, the South-East European Cooperation Process (SEECP) and the Regional Cooperation Council. The COVID-19 pandemic has accelerated the ambition to enhance regional integration, by displaying the important links between markets in the region as well as between the EU and the six Western Balkans economies. Given the European perspective of the Western Balkans, the EU has continued to treat the region as privileged partners by associating them with the Union’s mechanisms and instruments, including an exemption from temporary EU export restrictions of medical equipment. Economic criteria On the economic criteria, North Macedonia has made some progress and is at a good level of preparation in developing a functioning market economy. Severely hit by the pandemic, the economy slipped into a recession in 2020. A gradual recovery set in as of spring 2021. The government implemented a strong fiscal response to mitigate the crisis impact on households and firms. The fiscal deficit rose to 8.2 % of GDP in 2020 while the public debt level rose sharply to 60.2% of GDP, as additional financing needs had to be covered. Capital expenditure was cut in a budget revision to create space for crisis-related transfer payments, yet it was still heavily under-executed. The authorities took some additional measures to improve fiscal transparency, although a fully operational state aid registry is yet to be developed. There has been little progress made in improving revenue mobilisation and collection, as well as public investment management, including through a stronger framework for public-private partnerships. The new organic budget law, which is expected to significantly improve fiscal governance, is yet to be adopted by Parliament, and its implementation is delayed. The business environment continued to be impeded by the large size of the informal economy. Environment and climate change North Macedonia has some level of preparation in this area. Limited progress was achieved in nature protection and in climate change. However, implementation in all sectors remains a concerning issue. The country is encouraged to considerably step up ambitions regarding the green transition, notably in the context of the Green Agenda for the Western Balkans. Most of last year’s recommendations were not implemented. In the coming year, the country should in particular:

• improve inter-sectoral coordination and increase financial resources for the reduction of air pollution at the local and national level;
• make significant steps to establish a regional waste management system;
• implement the Paris Agreement, including by adopting a comprehensive climate Strategy and a Law, consistent with the EU 2030 framework.