AmCham Macedonia Winter 2016 (issue 48) | Page 18

ANALYSIS AmCham Comments on Macedonia’s 2016 Economic Reform Program The European Commission invites all enlargement countries to prepare annual Economic Reform Programmes (ERPs); Macedonia, along with all other Western Balkan countries and Turkey, submitted its first annual ERP in January 2015. This exercise is meant to help candidate countries and potential candidates to enhance their economic policy and its governance as well as their “institutional and analytical capacities and to prepare them for participation in the EU’s multilateral surveillance and economic policy coordination procedures upon accession.”1 payment by budget users toward the private sector contributes significantly to the liquidity problem in the country. With the adoption of the Law in 2013, this problem was compounded, since the Law doesn’t apply to all budget users, which exposed the part of the private sector that depends on payment from their budget user clients to additional risk. The Law positions the government in the role of protector of small to medium companies from clients that intentionally delay payment to them to their own advantage. However, the Law introduced new fines that are occasionally issued against private sector entities, regardless of context (e.g., outstanding collections from their clients that are budget users). Late payment by budget users toward the private sector contributes significantly to the liquidity problem in the country. In late December 2015, AmCham Macedonia was invited to review and comment on a draft of the Macedonia’s 2016 ERP. While just 6 working days were allowed for this process, AmCham organized a number of meetings and collected feedback from an impressive number of members to ensure its final comments were an accurate reflection of companies’ reaction to the proposed reforms. Generally, AmCham members felt the proposed program did not adequately address the areas they felt were most relevant and in most urgent need of reform attention. The following are key excerpts from those comments, which should be published in full as an Annex to the final 2016 ERP which the Ministry of Finance should publish very soon. The National Program should include reforms necessary to [