© Alexandros Michailidis/Shutterstock

© Alexandros Michailidis/Shutterstock

Brief analysis on the progress of Chapter 22 in the negotiation process between the European Union and North Macedonia

18/09/2024 -  Filippo Marinoni

North Macedonia submitted its application for EU membership in March 2004 and received candidate status in December 2005. Since then, however, due to the clear opposition to its entry by Greece (in dispute for the name Macedonia until 2018) and Bulgaria (still existing), North Macedonia has been excluded from the accession negotiations, which began only in July 2022, together with those of Albania.

For the purpose of this brief analysis, the state of progress of Chapter 22 in the negotiation process between the EU and North Macedonia, which is called “regional policy and coordination of structural instruments”, will be considered.

North Macedonia has not yet opened any negotiation clusters with the EU. However, there have been some clusters that have been screened by the European Commission. As regards cluster 5 (which includes chapter 22), in July 2023 there was the so-called “explanatory screening”, in which the Commission presents the cluster at the candidate status in terms of legislative alignment and the need to adapt administrative capacity.

Screening of Chapter 22 in the accession process of North Macedonia

The European Commission, in its November 2023 report on the progress of the accession process of North Macedonia, considers the country “moderately prepared” regarding the topic of regional policy and coordination of structural instruments. The report, however, states that, in the period under analysis - the previous year - there was no progress on the chapter.

More specifically, the Commission recalls the need for North Macedonia to “improve its institutional, administrative and technical capacity for the management of EU funds”. In doing so, the Commission identifies the following guidelines: adopt a policy of staff retention and capacity building; improve the process of implementing EU recommendations and auditing; align management and control systems with the requirements of IPA III - acronym for “Instruments for Pre-Accession Assistance”, the financial assistance to implement the necessary reforms.

From the investment point of view, the Commission stresses the urgency for North Macedonia to strengthen its policies, through a “streamlining of investment flows supported by a solid, transparent and inclusive methodology”, as well as a “clear identification of stakeholders’ responsibilities” and a “sustainable public-private partnership framework”. The Commission recalls that during the IPA II programme (2014-2020) North Macedonia lost almost 25 million Euros, given up due to the unpreparedness of the staff in the management and control of financial resources. The risk of further losses in the IPA III programme (2021-2027) is significant, in case these structural problems are not decisively addressed.

From the point of view of decentralisation, the Commission encourages North Macedonia to consolidate the process, through the implementation of a credible financial framework for municipalities and through the “strengthening of the political dialogue on regional development”.

Among the few positive notes of the Commission’s report are the country’s participation in transnational territorial cooperation programmes, such as the Strategy for the Adriatic and Ionian Region (EUSAIR) and the enactment of the 2022 anti-corruption law. This established the “Anti-Fraud Coordination Service (AFCOS), which forms the backbone of the system for the protection of the EU’s financial interests in North Macedonia”.

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This publication has been produced within the project "EU Cohesion Policy Programming: Chapter 22 Exchange Programme in Albania and North Macedonia", financed by the CEI Fund  of the European Bank for Reconstruction and Development (EBRD) with the contribution of Italy. The CEI Fund is in no way responsible for the information or views expressed within the framework of the project. The sole responsibility for the contents lies with OBC Transeuropa