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In the autumn of each year, the European Commission adopts its “Enlargement package” – providing a detailed assessment of the state of play and the progress made by the enlargement countries on their respective paths towards the European Union, with a particular focus on implementing fundamental reforms, as well as clear guidance on the reform priorities ahead.
Separate chapters are developed for the knowledge economy, i.e. the areas that the Western Balkans Info Hub focuses: “Science and Research” (chapter 25) and “Education and Culture” (chapter 26 which includes also a focus on higher education) as well as the chapter “Enterprise and Industrial Policy” (chapter 20 which includes a focus on innovation in the business sector) are referenced below. Further chapters address topics including fundamentals such as the functioning of democratic institutions, rule of law, economic criteria, etc., intellectual property law, digital transformation, enterprise and industrial policy, green agenda and sustainable connectivity, agriculture, external relations and many more.
For the full report on North Macedonia see the Report and Factsheet.
Chapter 25 – Science and Research
The country has a good level of preparation in the area of science and research. Good progress was made in rolling out measures from the Action Plan 2024-2025 of the Smart Specialisation Strategy 2024-2027. North Macedonia also achieved good uptake for the Horizon Europe and European Cooperation in Science and Technology (COST) programmes, set up the European Digital Innovation Hub, and increased state funding for science.
The Commission’s recommendations from last year were partially implemented. In the coming year, North Macedonia should in particular:
→ increase investment for science and research in line with the new European Research Area priorities;
→ continue to promote and increase participation in Horizon Europe;
→ provide support to companies via the European Digital Innovation Hub EDIH
The EU provides significant support to research and innovation. All Member States can participate in the EU’s research and innovation programmes and benefit from them, especiallywhere there is scientific excellence and a solid investment in research and innovation.
EUR 11 million for 2025, a 58% increase compared with 2024. Of this amount, EUR 5.5 million is allocated to the key initiative: implementing the Smart Specialisation Strategy, the main policy for innovation and research. The first measures of the Smart Specialisation Strategy were launched. The European Institute of Innovation and Technology (EIT) Community RIS Hub, Community Officer in North Macedonia (ECO MK), signed a memorandum of understanding with the Chamber of Economy, set up a dedicated website, and held a number of promotional events. The first European Digital Innovation Hub (EDIH) in the country was set up. Also, a competence centre for open science was set up at a state university to provide training and support for data management, policy development and open science practices.
On innovation, the Fund for Innovation and Technological Development closed in August 2025. New Law on Innovation Activity, Scientific and Technological Development, and Entrepreneurship was adopted having as objective to set up a single authority for innovation, scientific and technological development and entrepreneurship support. Pursuant to the law a new body, the Agency for Innovation, Scientific and Technological Development and Entrepreneurship was set up. It took over all mandates of the FITD and started working on a new model for financial support for innovations to the private and public sector. Overall investments in research and innovation in the country remain low (only 0.38% of GDP in 2022), while the participation of the private sector in research continues to be marginal. North Macedonia is included in the European Innovation Scoreboard with a performance at 40 % of the EU average in 2025.
The country’s performance is below the average and the innovation gap with the EU is widening. Further progress should be made regarding venture capital expenditures in the business sector as well as direct and indirect government support of business R&D. North Macedonia’s participation in the EU’s Framework Programme for Research and Innovation – Horizon Europe is increasing. This positive trend continued. Particular strengths are noted in Horizon Europe under the Pillar II “Global Challenges and European Industrial Competitiveness”. The national technology transfer roadmap has not yet been developed. Authorities need to further strengthen their participation in the new European Research Area and in the new European Innovation Agenda.
Chapter 26 – Education and Culture
North Macedonia is moderately prepared in the area of education and culture. Limited progress was made. Work on the 2018-2025 education strategy and on developing a proper monitoring system continued to be slow. The Law on adult education and the Law on vocational education and training (VET) were adopted, while the adoption of a new Law on secondary education was delayed and replaced by a number of amendments to the existing Law.
The Commission’s recommendations from last year were partially implemented and therefore remain largely valid. In the coming year, North Macedonia should in particular:
→ adopt a new Law on secondary education, develop implementing legislation on the Law on adult education and on VET, and continue to set up regional VET centres and ensure they are operational;
→ improve access to quality education for all, in particular for children with disabilities and children from Roma communities, further develop teachers’ skills and invest in their continuous professional development;
→ optimise the school network, adopt and apply the new formulas for financing primary education, complete and apply similar formulas for secondary, VET and higher education.
The EU supports cooperation in education and culture through funding programmes and the coordination of Member State policy through the ‘open method of coordination’. The EU and the Member States must also prevent discrimination and ensure quality education for children of migrant workers, including those from disadvantaged backgrounds.
The 2018-2025 strategy for education is the main document governing the education sector. Monitoring mechanisms remain not well defined. A new strategy for education needs to be developed and adopted. Public spending on education and training decreased slightly to 3.17% of GDP in 2024, which is still far below the EU average of 4.6%. The education budget decreased as a share of the overall State budget in 2024 (9.15%) comparing to 2023 (11.7%).
During the reporting period, the capacity of public and private institutions providing early childhood and care (ECEC) increased by 1 072 places. Among children aged 0 to 6 years, 37.4% are enrolled. Among those aged 3 to 6 years, the enrolment rate is 46.8% showing a slight increase, but still falling considerably short compared to the EU target on ECEC attendance set at 96%. In line with the Law on primary education, the Concept for primary education that also includes green skills as well as new curricula are being gradually introduced. Authorities need to improve capacities in the school system allowing for the optimisation and restructuring of the school network. A total of 10 municipalities prepared a plan to optimise the school network.
A new funding model for primary education aiming to redistribute funds more effectively across municipalities, developed by the Ministry of Education and Science (MoES) was approved by the Government. The number of primary education pupils dropped by 1.5% compared to the previous year while in secondary education increased by 0.53%. In 2024-2025, there were 177 740 (86 051 females) in primary education. In secondary education, the total number of enrolled students amounted to 66 075 (31 948 are female). North Macedonia took part in the Teaching and Learning International Survey (TALIS 2024) and is participating in PISA 2025. The Law on vocational education and training (VET) was adopted in December 2024 introducing several key innovations such as formalising dual education partnerships between vocational institutions and employers, emphasising work-based learning and setting up the legal framework for establishing a network of Regional VET Centres (RVETC).
Four additional RVETC were approved in 2024-2025. There is a clear trend of an increasing share of students enrolled in VET. 4 171 students were enrolled in dual education and cooperating with 650 companies compared to 3 755 students enrolled and 560 companies engaged in dual education in 2023-2024. The number of dual vocational classes has increased from 259 in 2023-2024 to 283 in 2024-2025. In 2024, the Ministry of Education and Science launched several scholarship initiatives to support dual education. The Concept for post-secondary education was adopted in January 2025. On higher education, in the academic year 2024/2025, a total of 53 535 students were enrolled, which represents an increase of 2.33%. Female students represent 59.3%. The majority of students (76.8 %) are enrolled in public higher education institutions, while 23.2 % are enrolled in private institutions. The main challenge remains the improvement of quality of higher education through the development of accreditation and quality assurance processes.
North Macedonia is a member of the European Higher Education Area (Bologna process) and needs to work on the full implementation of the key commitments according to the 2024 Bologna Process implementation report, especially with regards to automatic recognition and quality assurance. Three universities from North Macedonia participate in European Universities alliances. A new law on the national qualifications framework (NQF) was adopted in December 2024. Out of 16 sectoral committees, 14 have been established. A manual for adapting qualifications in VET to the European Qualifications Framework (EQF) and NQF was drawn up, and 10 qualification standards were adopted. The Law for adult education was adopted in December 2024, followed by the Concept of the Adult Education, formalising the system of validation of non-formal and informal learning. An Adult Education Strategy (2025-2030) was adopted in March 2025.
On inclusive education, after some progress being made, namely by making compulsory enrolment of pupils with special educational needs into mainstream primary schools, amendments to the Law on primary education reverted the process by allowing enrolment into resource centres. The share of pupils with special educational needs in mainstream primary schools in 2024-2025 represents 1.3%. The total number of educational assistants in primary education increased from 818 in school year 2023-2024 to 1 018 in school year 2024-2025. Over the reporting period, 44 Roma mediators in primary schools were available in 26 municipalities. In the school year 2024-2025, the total number of Roma pupils in primary education was 10 288, while in secondary enrolment increased to 2 157. The Ministry of Education and Science awarded 934 primary education scholarships. In higher education, 150 scholarships were granted to Roma students whereas the total number of active Roma students is 250. The authorities need to further enable the development of digital skills throughout primary and secondary education and increase educational institutions’ capacities and teachers’ skills to develop these skills in line with the EU Digital Education Action Plan 2021-2027. In 2024, the SELFIEforTEACHERS tool was deployed in the country, offering insights to improve teachers’ digital skills and supporting education strategies.
North Macedonia has taken steps towards the effective, coherent and inclusive digital transformation of its education system, by equipping schools, putting into use digital textbooks in primary education and piloting a new Education Management Information System (EMIS), expected to be fully functional in primary and secondary education as of September 2025. The Law on textbooks, which also promotes digital schoolbooks and innovating educational materials, was adopted in December 2025. North Macedonia continues to participate in the Erasmus+ programme as an associated country. In 2024, organisations participated in 671Erasmus+ projects. The Erasmus+ National Agency is facing increased scrutiny from the Commission due to a high number of non-compliance issues. The country continued to participate in all the European Education Area working groups 2021-2025. On youth policy, there are no reports available on the National Youth Strategy for 2023-2027 and the action plan for 2023-2025.
On sports, North Macedonia continued to participate in the European week of sport. As regards culture, the country further delayed the adoption of amendments to national cultural legislation and the 2023-2027 strategy for cultural development and heritage protection. The Ministry of Culture needs to strengthen its capacity and ensure appropriate financing to protect the country’s diverse cultural expressions and heritage. Greater efforts are required to safeguard cultural heritage. The City of Skopje, designated as the 2028 European Capital of Culture, must accelerate preparatory activities in line with recommendations of monitoring meetings. North Macedonia has ratified the 2005 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions. North Macedonia continues its full participation in the Creative Europe programme.
Chapter 20 – Enterprise and Industrial Policy
The country is between a moderate and a good level of preparation in the area of enterprise and industrial policy. No progress has been made as the Commission’s recommendations from last year were not implemented. Hence in the coming year, North Macedonia should:
→ implement the plan to consolidate the institutional structure and the mandates of public bodies;
→ adopt the strategy for the development of small and medium-sized companies (SMEs); and boost export readiness and the integration of companies in supply chains by stepping up efforts to implement the export promotion strategy;
→ improve the process of consulting enterprises during the preparation of measures and inform them with sufficient lead time about implementation conditions.
EU industrial policy strengthens competitiveness, facilitates structural change and encourages a business-friendly environment that stimulates small and medium-sized enterprises (SMEs).
Enterprise and industrial policy principles remain scattered within a number of strategic documents under the competence of different national authorities. The Ministry of Economy and Labour was restructured by taking over the competence of employment and the coordination functions of the former office of the Deputy Prime Minister for Economic Affairs. while transferring competences in the area of energy, concessions, and public private partnerships to the newly established Ministry of Energy. The plan to consolidate administrative structures in this area, adopted last year, was not put into effect The Parliament approved the National Development Strategy 2024-2044 as the main strategic vision for the country’s development and private-sector development in October 2024. A new action plan for industrial policy is pending. A new strategy for the development of SMEs 2025-2030 based on the Small Business Act was adopted in August 2025.
A strategy on corporate social responsibility is under development. The government secured a EUR 250 million credit line for private companies, based on loans distributed via commercial banks with a fixed interest rate of 1.9%, while the bank’s margin is subsidised. Within the country’s well-capitalised financial sector, this type of state intervention with no stated policy objective is unclear. Dialogue with the Chambers of Commerce and other business associations was reduced after the cancellation of the position of the Deputy Prime Minister for economic affairs. Other than communication via media, a web-based platform remains the main tool for systemic communication with businesses but is limited to legal acts. The country needs to set up a regular, inclusive and systematic mechanism for dialogue that is more responsive to business needs. The trend to adopt measures, laws and implementing legal acts without previous notification and an adjustment period for companies continued in the reporting period, including through the use of expedited procedures in Parliament. The overlap of policy measures for financial and non-financial aid to companies managed by different ministries or public bodies remains in place.
Measures are not assessed against their relevance, their potential to distort market competition, or their effectiveness and impact on overall economic growth. With the exception of the Smart Specialisation Strategy, evidence-based planning and impact assessment seem to be absent. While there is regular monitoring of policy implementation based on input indicators, the evaluation of the impact from strategies is very limited. In 2024, an additional 196 companies benefited from the Law on financial support of investments and over 300 applications were received by September 2025. A lack of objective and transparent award practices distorts the projected effect of the granted State aid. The implementation of the Plan for Accelerated Growth, adopted in 2022, remains uncertain as no specific activities took place in the reporting period.
No significant activities were undertaken in the fight against the informal economy. The potential of simplification and digitalisation of public procedures is underexploited as a way to reduce the administrative burden of companies and informality, notably for business registration and work permits. The role of the Agency for Entrepreneurship was significantly enhanced as more resources and measures are planned in its 2025 operational plan. The Directorate for Technological Industrial Development Zones completed the programme to integrate local companies into global value chains. Furthermore, legislative changes were made to allow already established companies, under prescribed terms, to reallocate businesses within the zones and take advantage of zone benefits. Businesses struggle to recruit qualified workers due to significant emigration and a persisting mismatch between skills demand and supply. VAT refund delays significantly impede the liquidity of companies and predictability of business operations.
On policy instruments, North Macedonia continues to participate in the SME Pillar of the Single Market Programme.
As regards the Late Payment Directive, starting from 1 January 2025 the deadline for settling monetary liabilities of entities in the public sector is up to 30 days; for entities in the healthcare sector, it is up to 60 days. The Fund for Innovations and Technological Development was closed due to numerous acts of mismanagement of resources. Its mandates were transferred to the Agency for Entrepreneurship and Innovation, even though the legal amendment is still pending. In terms of sectoral policies, several measures from the Smart Specialisation Strategy have been rolled out. A new strategy for tourism is under development.
For more information on other chapters see the Report and Factsheet.