A new government but little change in policy
Overview:
The VMRO-DPMNE won yet another victory in June parliamentary elections even if the vote did, at the same time, also see some recovery in the fortunes of the opposition Social Democrats. As Nikola Gruevski starts his third, consecutive term as Prime Minister it seems that little is likely to change. This is reflected in the make-up of the new cabinet – little changed from the old. Hence, we are likely to see continued sound economic management but at the same time no resolution of the “name” issue. The authorities managed to preserve the exchange rate peg during the global economic crisis and the recovery is now underway. Some improvement in the business climate has been achieved although unemployment remains high. However, the government has made little serious effort to improve relations with Greece.