Enlargement Strategy and Main Challenges 2006 - 2007

Community Treaty which was ratified by the former Yugoslav Republic of Macedonia in May
2006.
Progress in the legislative alignment could be reported in the area of taxation. However,
significant efforts will be needed to further align legislation, ensure effective implementation
of the legislation, as well as to strengthen the administrative capacity in the area of tax
collection.
Progress in the area of economic and monetary policy has been limited. However, overall,
preparations are well advanced. There has been some progress in the area of statistics. Further
alignment with the acquis is needed and administrative capacity needs to be substantially
strengthened.
Notable progress has been made in the area of social policy and employment, mainly in the
field of labour and equal opportunities legislation. However, much of the acquis remains to be
transposed, notably in the area of health and safety at work, and considerable efforts in the
employment policy are required to address the difficult labour market situation. There has
been limited progress in the area of enterprise and industrial policy. The country still lacks
industrial, technology and innovation strategies and further efforts are needed to develop
instruments and sector policies. As regards Trans-European networks, the former Yugoslav
Republic of Macedonia participates in the regional initiatives. The need for substantial
financial input remains a bottleneck to upgrade the infrastructures. Progress has been limited
in the area of regional policy and co-ordination of structural instruments. Considerable
efforts will be needed to align the legislation on regional development and strengthen the
institutional framework and administrative capacity.
In the area of the judiciary and fundamental rights, the Constitution and the legal framework
were amended to allow for the implementation of the judiciary reform. Some progress has
been made in the legal and institutional framework to fight corruption. However, improving
the independence and the efficiency of the judiciary remains a major challenge and very
strong political will is needed to tackle corruption. There is further scope for improvement in
fundamental rights. The situation as regards protection of personal data remains a matter of
concern. There has been progress in parts of the area of justice, freedom and security, notably
as regards migration and visa policy, and border management. Further implementation of the
border management strategy is needed. Progress has been more limited in judicial
cooperation, police cooperation, the fight against organised crime and drugs. Considerable
efforts and sustained efforts are needed to strengthen enforcement and administrative
capacity.
The former Yugoslav Republic of Macedonia has started to prepare a more integral policy in
the field of science and research. Progress has been made in the area of education and
culture. As regards environment, some progress has been made to strengthen the legislative
framework. However, preparations to align with the acquis in this chapter are at an early stage
and very significant efforts will be needed to ensure the implementation and the enforcement
of the legislation. On consumer and health protection, some legislative progress has been
made, mainly in the area of safety related measures. Further legislative alignment is needed as
well as sustained efforts to establish a functioning system of consumer and health protection
throughout the country.
Substantial legislative progress took place in the area of customs union. Fees which were
breaching the SAA have been abolished, in line with a key priority of the European
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