Belgium, (Brussels Morning Newspaper) The European Commission has proposed a Macro-Financial Assistance (MFA) of 100 million euros for North Macedonia.
In a statement released on Monday, the body pointed out that it stands by North Macedonia and noted that the country’s external balance is deteriorating quickly due to its dependence on energy imports.
“North Macedonia also faces large external debt repayment needs in 2023 in a context of challenging financial conditions,” the Commission stressed and noted that the proposed assistance would help the country to cover its financing needs this year and in 2024.
The EC noted that the proposal supplements International Monetary Fund (IMF)’s two-year support program worth up to 530 million euros.
According to the Commission’s proposal, the money would be provided in two tranches in the form of loans. The EC stressed that the payments would be conditional on the implementation of reforms that the EU and North Macedonia need to agree on.
Money for reforms
“The memorandum of understanding is likely to focus on policy reforms in the areas of fiscal governance, tax policy, the management of public investment, public-private partnerships, business environment, transparency in state aid, energy efficiency, judiciary reform, and the fight against corruption,” the Commission noted.
The body stressed that planned support would help North Macedonia on its path to EU membership.
EC President Ursula von der Leyen stated “we stand by North Macedonia in these challenging times… we propose up to 100 million euros in Macro-Financial Assistance to support the country’s economy, contributing to covering its financing needs for the next two years.”
Paolo Gentiloni, European Commissioner for Economy, added “we stand in solidarity with North Macedonia as the country continues to feel the shockwaves from Russia’s brutal aggression against Ukraine.”
He stressed that planned assistance will help the country to repay its debts and strengthen its institutions. “With this proposal, we reaffirm the EU’s unwavering commitment to the wider region and to North Macedonia on its road to EU membership,” Gentiloni concluded.
The EC pointed out that the EU Council and Parliament are to discuss the proposal, noting that a memorandum of understanding on planned reforms is to be signed with Skopje after the proposal is adopted.
