Real EconomyIn this part of ’, we focus on AB’'s macro-financial assistance; This is emergency financial assistance to neighbouring countries to help stabilise their economies in times of crisis.
In the last 30 years, 77 MFA operations worth 16 billion euros have been carried out, providing assistance to 27 countries. The last example was this: Ukraine’ya 1.2 billion euros providedWe stand in solidarity with the Ukrainian people.
Macro-financial assistance (MFA)It often comes in the form of loans with extremely favorable terms and low interest rates. To receive the money, countries must enroll in a funding programme with the IMF, meet conditions for respect for human rights and anti-corruption, and implement democratic, economic and governance reforms.
The broader goal is to help ensure stability and prosperity beyond the EU.
the North Macedonia
EU candidate North Macedonia received 160m euros from MFA’ to help stabilize the country's economy after the shock caused by Covid-19’.
The unpaid leave of a large number of workers created a kind of scissor effect: On the one hand, financial income slowed down, while on the other hand, it led to a sharp increase in public spending.
In addition, foreign direct investment dried up and the country's trade balance deteriorated.
Impact on young people
The youth unemployment rate in ’ has been falling steadily since 2005’, but has increased in 2020’.
Marija Sepetovska, 23, found a job thanks to AB’'s Youth Guarantee, has been put into practice by the country's job seekers agency.
“Of course, starting your career during the pandemic was a stressful time, especially for young people. Especially when I see that there are many programs that support our country, I actually have more confidence in myself.”
Marija admits that some of her friends aren't so lucky.
“It was very easy for me, but unfortunately for many other Macedonian youth, this is not the case. Some people have a hard time finding the big opportunity. So this place is still not the best, adds ”.
The first tranche of macro-financial aid was sent as emergency aid. For the second payment, North Macedonia’ had to meet a number of requirements. This included the creation of a youth unemployment unit.
Explaining what the unit does, unit head Goran Petkovski told Real Economy’: They are primarily involved in the development of active labour market measures under the operational plan and how we can better target young people with these active market measures we have. They are also responsible for coordinating the work of youth counselors within the local employment office and, of course, monitoring and reporting on the Youth Guarantee.”
The 160m-euro emergency loan has helped ’ through a difficult economic period, but Shenaj Hadzimustafa, an Associate Professor in the Department of Business and Economics at the University of South East Europe, believes these benefits will last for a long time in the future.
During the “O period, money was needed to meet some budget needs and the need for balance of payments. But on the other hand, the reforms will be permanent and have a positive impact on the country. Therefore, I think that these reforms should have an impact not only in the short term but also in the medium and long term.”
Now in its fourth decade, the EU has recently provided 1.2 billion euros in macro-financial assistance to support the Ukrainian ’. Paolo Gentiloni, AB’'s chief economic officer, said: The real economySuch support is very important.
“We are interested in the stability of the region. Stability in migration. Stability for peace, etc. And finally, we have great interest as trading partners of these countries because the European Union’ne member countries are the main trading partner of all these countries in general.” said.
Naomi Lloyd of Real Economy’ spoke with the country's Prime Minister Dimitar Kovačevski to learn more about how AB’'s macro-financial assistance is helping North Macedonia’.
Naomi Lloyd, euronews:
How much has “AB’'s Macro-financial assistance made a difference to the country?”
Prime Minister of North Macedonia Dimitar Kovačevski:
“AB’'s macro-financial assistance has helped a lot to sustain the reforms we have initiated, not only in terms of financial aid, but also in the area of public finance management and other areas. But it also gave other international and financial institutions and donors with whom we cooperate a clear signal that we have a stable economic policy in times of crisis.”
Naomi Lloyd, euronews:
“How difficult were these reforms to implement?”
Prime Minister of North Macedonia Dimitar Kovačevski:
“Transparency InternationalThe fight against crime and corruption has come to fruition as we have improved our position in ’'s reports. We have entered a country with democratic conditions. Because in the past, there were deficiencies in democratic procedures in the country. We are very, very happy about this. - ”
Naomi Lloyd, euronews:
How do you ensure that “Reforms don't end here, but are fully implemented going forward?”
Prime Minister of North Macedonia Dimitar Kovačevski:
“We have regular coordination with the European Union and European Commission institutions, so we have regular reporting. We have also worked hard on the implementation of internal mechanisms in the country and in public institutions to ensure these reforms are carried out.”
Naomi Lloyd, euronews:
“Now North Macedonia is a candidate to join AB’. The next step is accession negotiations. How hopeful are you that this will all start soon?”
Dimitar Kovačevski. Prime Minister of North Macedonia:
“ North Macedonia’ has a clear strategic goal of becoming a full member of Euro-Atlantic troops. Last year we celebrated the 30 ’th anniversary of our independence, and this was accompanied by the fact that we are the 30’th member of NATO’. It's already the 17th year of ’ and we still can't start negotiations. Unfortunately, there was another challenge imposed by the old one last year. The Bulgarian government.We have already opened a new dialogue with the two new governments and held a meeting with the Bulgarian Prime Minister in Skopje ’ to restore trust and confidence.
