Strengthening state aid governance in the Western Balkans

Today’s panel debate, Strengthening state aid governance in the Western Balkans: transparency, effectiveness and EU alignment, brought together a diverse group of policymakers, representatives of public institutions from the Western Balkans, international organizations, and research and civil society actors. The discussion highlighted that state aid is often perceived as a technical or administrative issue, while in practice it represents a powerful economic policy instrument with direct implications for public finances, market competition, and public trust.

The debate underscored that although state aid has proven to be an important anti-cyclical tool—particularly during periods of crisis—its role cannot be assessed solely through the volume of resources allocated. Participants emphasized that the key challenge lies in ensuring that state aid is well-targeted, effective, and aligned with long-term development objectives and EU rules. Recent regional trends point to increasingly diverging approaches across countries, raising questions about coherence, effectiveness, and the risk of ad-hoc policy interventions.

A central takeaway from the panel was the critical importance of transparency and accountability. Fragmented and non-standardized data continue to limit meaningful monitoring and evaluation of state aid in the region. In this context, the discussion highlighted the value of the newly developed regional platform on state aid as a practical tool to support evidence-based policymaking, cross-country comparison, and informed public debate—ultimately contributing to stronger governance and closer EU alignment in the Western Balkans.

Blagica Petreski on FinSight: Public Debt and the Economic Outlook in 2026

North Macedonia has once again borrowed on international markets through the issuance of its tenth Eurobond, worth one billion euros, aimed at servicing maturing obligations and stabilizing public finances. However, in the coming months, additional borrowing is expected—this time through loans—in order to secure funds for the regular settlement of obligations.

What does this mean for the economy? Can economic growth or stagnation be expected this year, how will inflation evolve, and what can the business sector anticipate?

In the new episode of FinSight, we speak with Blagica Petreski, Executive Director of Finance Think – Institute for Economic Research and Policy. We analyze where budget funds are being allocated, the burden of public debt, how realistic the projected growth of 3.5 percent is, and whether rising wages could further fuel inflation.

The discussion also focuses on labor productivity, the grey economy, the effects of the “My VAT” project, and the key reforms the economy needs to achieve sustainable growth and a higher standard of living.

NEW Policy Study 57!

📘 New Policy Study
We analyze how public finances translate (or fail to translate) into better education and health outcomes across six Western Balkan countries, using panel data for the period 2006–2020 and CMP methodology.

🔍 Key findings:
• 🧾 It’s not just how much we spend — it’s how we spend it: stronger budget execution is the key channel through which PFM affects outcomes
• 🎓 In education, PFM does not operate directly, but through improved technical efficiency → higher preschool enrolment and better student–teacher ratios
• 🏥 In health, better budget execution is associated with more doctors, higher DPT immunization coverage, and longer life expectancy
• 📉 Weak transparency and insufficient medium-term planning constrain the effectiveness of public spending
• ⚙️ PFM is the “silent driver” of social outcomes — without it, even higher spending fails to deliver results

📌 Policy message:
Improving health and education outcomes does not start in the classroom or the hospital, but in the budget process: medium-term planning, transparency, and disciplined execution.

🔗 shorturl.at/Wxdkc
#PublicFinanceManagement #Education #Health #WesternBalkans #EvidenceBasedPolicy #PFM

Training on Monitoring Public Procurement at the Municipal Level

💡 Today, December 12, 2025, we held a Training on Monitoring Public Procurement, where 20 representatives from local public institutions, civil society organizations, and the media from Prilep and Krushevo gained new information and knowledge on the proper monitoring and implementation of public spending.It is time for efficient and transparent public procurement!

Webinar on the alignment of state aid regulation

💻The first Webinar on the alignment of state aid regulation with EU Acquis was held, attended by 35+ representatives of public institutions that control, manage and/or grant state aid in the Western Balkan countries.
📃 Olgica Spevec, an expert on state aid and competition policies, shared Croatia’s experience through practical challenges and lessons learned in the accession phases – from the perspective of a negotiator for Chapter 8 and President of the Croatian Competition Council.

📣 We want to hear your opinion!

What is key to improving the quality of life❓
🔗 bit.ly/anketa—

We kindly ask you to take 5 minutes of your valuable time and tell us about your satisfaction with public services by completing the questionnaire above ☝️

#CHinMK #CivicaMobilitas
Civica Mobilitas
Macedonian Medical Association
Youth Educational Forum – YEF
@youtheducationalforum
@mcgo_mcec_mk
MCEC – Macedonian Center for Civic Education
@360stepeni
360 Degrees

Prof. Marjan Petreski in the podcast “Where Is the Money?”

In the podcast “Where Is the Money?” on Pari.com.mk, Professor Marjan Petreski discusses the Draft Budget 2026:
⚠ As in our FT Commentary 43 (https://shorturl.at/67wyD), the overall budgeting framework is moving in the right direction, but a series of fiscal risks remain.
❗ The inflation target of 2.5% is achievable only if fiscal policy supports monetary policy, without populist expectations of “easy money.”
❗ Productivity in the public sector is declining, while in the private sector it is rising – a critical factor for sustainable wage growth and stable budget revenues.

Our MK-MOD is officially featured on the EUROMOD European map

✅ We are proud that MK-MOD, the Macedonian tax-benefit microsimulation model – developed and maintained by Finance Think – is officially featured on the European models map within EUROMOD 🇪🇺.

With this, MK-MOD stands shoulder to shoulder with the models of the European Union, Norway, Switzerland, the United Kingdom, and other countries that develop modern analytical tools for assessing public policies.

🔎 This recognition confirms that Macedonia, through Finance Think, is building capacities comparable to European standards – enabling better testing, planning, and evaluation of tax, transfer, and social protection policies.

👉 EUROMOD models map: https://euromod-web.jrc.ec.europa.eu/…/euromod-models-map
👉 About MK-MOD: https://www.financethink.mk/…/tax-benefit…/

💡 We continue improving the model and providing strong support for evidence-based policymaking.