UPDATE 1 - Macedonia Fails To Meet Political Criteria for Starting EU Accession Talks - Rehn

In its 2008 progress report on Macedonia released in Brussels, the European Commission (EC) said the country has failed to meet international standards for free and democratic elections, referring to the early general polls held in June.

The June election was marred by series of irregularities and violence, which left one dead and several injured. Incidents happened particularly in parts populated mostly with ethnic Albanians, which make up nearly 25% of Macedonia’s population.

Presenting the report in Brussels, Rehn said that the country is working on fulfilling the conditions for visa free travel, adding that the most advanced countries in the region could achieve this objective next year.

“Political dialogue needs to be strengthened and sustained in order to allow the effective functioning of political institutions, in particular the parliament. Corruption remains widespread and remains a particularly serious problem, although a number of steps have been taken in this regard," the report said.

"Measures need to be taken to ensure that recruitments into the civil service are free from undue political interference," it added.

The report praised Macedonia for its economic achievements, saying the country has moved closer to becoming a functioning market economy.

“It should be able to cope with competitive pressures and market forces within the Union in the medium term, provided that it vigorously implements its comprehensive reform programme in order to reduce significant structural weaknesses”, the report said.

Macedonia improved macroeconomic stability by more effective tax collection, lowering of the tax burden on labour, and increasing spending on education and infrastructure, the report said. However, threats are posed by the deteriorating trade balance, and persistently high unemployment.

“The country continued with structural reforms. Price liberalisation and privatisation are largely accomplished. Foreign direct investments inflows increased markedly during the last year. Challenges remain in building up an attractive business environment, which is still hampered by administrative weakness and low degrees of legal certainty”, the report said.

The EC also confirmed that Macedonia has made good progress in legislative alignment with the EU in areas such as public procurement, competition, transport, enterprise and industrial policy, information society and media.

Macedonia was granted an EU candidate status in 2005 but still awaits a date to be set for the start of negotiations.