Republic of Macedonia1: Trying to look beyond the name issue
Overview:
International press coverage of the Republic of Macedonia (ROM) centres on the "name" dispute. This is certainly a major issue delaying the country's membership of NATO and the start of EU Accession negotiations. Unfortunately, it seems unlikely that it will be resolved soon. However, there are some positive economic developments in ROM for those prepared to look beyond this issue. The ruling coalition has a two-thirds majority in parliament and is pushing through pro-market reforms. The fixed exchange rate regime appears sustainable and economic growth has risen, although monetary and fiscal policies should be tightened to rein in large macro imbalances. Domestic political noise is high, but the Ohrid Agreement has formed the basis for improved relations with the ethnic Albanian minority.