Initiation of EU Accession talks still on hold
Overview:
The Macedonian economy has successfully survived the global economic crisis. The fixed exchange rate regime proved stable despite considerable financial market turbulence due to appropriate policy responses: a large interest rate hike and the maintenance of tight fiscal policy during the downturn. The economy is now recovering, albeit unevenly, and the central bank has been able to lower rates as inflation is low and the balance of payments situation now more stable. Good news on the economic front is not, however, matched by progress in terms of EU integration. Despite a European Commission recommendation for Accession negotiations to begin no breakthrough has been made on the "name dispute" with Greece. Indeed, the EU has expressed disappointment with the pace of implementation of key reforms also.