Category: North Macedonia

 Nikola Lazarov Law Office’s Nikola Lazarov Talks About the Deal of the Year in North Macedonia – Interenergo’s and Trigal’s Acquisition of Wind Farm from Euroing.

CEELM: First, congratulations on winning the Deal of the Year award in North Macedonia!

Lazarov: Thank you! I am delighted that our law firm earned this fascinating award and that the judges appreciated our efforts in this transaction!

CEELM: Please introduce yourself and tell us a little bit about your professional and your firm’s history to date?

Lazarov: Of course. I became interested in law because I recognized that legal issues are present in many aspects of our life and that a law degree may be useful in a variety of occupations. Even if you are not actively involved in litigation or the practice of law, a law school degree provides a broad base of knowledge that may help anyone flourish in many disciplines, including business, government, education, medicine, and politics.

After obtaining an LLM degree in International and Comparative Business Law at the Chicago-Kent College of the Illinois Institute of Technology, and after five years of working as a judicial training coordinator on a USAID judicial reform project, I established my law firm in Skopje back in 2007.

Our firm comprises ten attorneys and lawyers specializing in a wide range of legal disciplines, including trade law, international business transactions, mergers and acquisitions, commercial litigations, civil law, energy law, and arbitration.

CEELM: Can you describe the deal for us and the role of the Nikola Lazarov Law Office in making it happen?

Lazarov: The deal involved the sale of a developed project for the construction of a 30-megawatt wind farm in the country’s southeastern area, which is one of the largest wind renewable energy projects in North Macedonia.

Considering the nature of the project, the sellers required extensive expertise and engagement in a wide range of practice areas, including energy law, construction law, corporate law, and mergers and acquisitions.

Aside from negotiating and closing the transaction, our law firm also led and carefully managed, from the seller’s side, all the preceding phases, including the assistance with the comprehensive due diligence process. At the same time, many activities required implementation during the COVID-19 pandemic, which posed an additional challenge. However, I am pleased that the deal was completed successfully and that all the involved parties can look back on it with pride.

CEELM: How did you land the mandate and what do you believe it was about the team that got it for you – what was it about the firm that you believe stood out?

Lazarov: We are not affirmed or defined by comparing ourselves to someone else.  There are many law firms out there that are excellent at what they do.

What I would say that is unique about us is that we make certain that each of our clients receives the highest quality representation and that each case is prepared with the same dedication and enthusiasm. Our most important characteristics are organization, discipline, and empathy for our clients. We are not satisfied until we have delivered the highest quality, most commercially effective legal advice, no matter how difficult or complex the mandate. We anticipate what our clients want, provide what they need, and establish long-term partnerships by thinking on their behalf every day. We go above and beyond to assist our clients in achieving their goals.

We have had a long-standing relationship with the sellers for decades. Prior to our involvement in this transaction, we had successfully represented them in other disputes and negotiations. I like to believe – and this mandate is proof of that – that in all our previous engagements we lived up to the trust and confidence the clients placed in us.

CEELM: Why do you believe the judges voted for this deal over the others?

Lazarov: I believe that the judges recognized the great significance of the transaction. It was a wonderful mix of four jurisdictions and entities. Interenergo and Trigal have the quality and capacity to considerably benefit the Macedonian environment and energy sector by carrying out this great project. I hope that this is only the beginning of many successful projects that will help North Macedonia meet its ambitious renewable energy targets. Our law office will always be here to provide flexible, creative, and tailored solutions for their endeavors.  

CEELM: What was the most complex aspect of the project?

Lazarov: Macedonian energy laws and by-laws were all either recently amended or introduced during the phase when we were obtaining the relevant authorizations and permits for the implementation of the project. Our law firm, in coordination with our client, was among the first ones to succeed in obtaining all licenses and decisions in line with the new regulations. Therefore, it was challenging to walk a path that had not been walked before and to create a trail for others to follow.

The COVID-19 pandemic and the travel restrictions it brought were also big obstacles that had to be overcome. This was especially the case here, since COVID-19 broke out right at the beginning of the negotiations for the deal, even before the due diligence process, which considerably affected some elements of the schedule, meaning additional efforts and creativity were required to successfully close the deal. 

CEELM: In contrast, what, from your perspective, went particularly smoothly and what do you believe contributed to it?

Lazarov: I believe that clear and effective communication among the consultants involved and the clients significantly contributed to reaching a smooth solution for the benefit of all parties. 

Deep analysis of the client’s issues and their changing needs also contributed to providing them with the strategic counsel at the right moment to solve any obstacles.

CEELM: Can we look forward to future similar deals in North Macedonia? Why/why not?

Lazarov: I am confident that there will be many more similar transactions in the future, mainly because of North Macedonia’s policy towards renewable energy and investment opportunities moving in the right direction. Our country has always had the necessary natural resources, but we had been struggling to discover the appropriate recipe to attract high-level investors such as Interenergo and Trigal. I believe that this has changed dramatically with the implementation of the new regulations.

CEELM: Congratulations again on winning the Macedonian Deal of the Year award and wishing you many more professional achievements!

Lazarov: Thank you. Winning the Macedonian Deal of the Year award is definitely one of the greatest achievements in my career as an attorney at law to date. Nevertheless, I have to say that no achievement has been greater than earning and keeping the respect of my clients, colleagues, and peers within and outside my firm.

The Lazarov Law office will always be on the ground to assist and guide clients through difficult processes, using our innovative approaches to solving the issues to their satisfaction.

This article was originally published in Issue 9.5 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Former SkopSter Senior Legal Counsel Iva Djugumanova has joined ODI Law’s Skopje office as Senior Associate and Head of the Corporate practice.

Specializing in Corporate/M&A, Djugumanova worked at SkopSter between 2021 to 2022. Earlier, she spent over four years at Polenak Law Firm first as Junior Associate from 2017 to 2018, and later as an Associate, between 2018 and 2021. From 2016 to 2017, she also worked as an Associate at Debarliev Dameski & Kelesoska Attorneys-at-Law.

“We are convinced that Iva will be a great asset to our team and her versatility will help us to support our key clients on a number of matters,” ODI Law Managing Partner Gjorgji Georgievski commented. “Her addition will also boost our potential in the areas of M&A, acquisition finance, real estate finance, employment, and data protection.”

“I believe that ODI law will benefit from my contribution, adding value in meeting our client’s needs and simultaneously broadening my knowledge and upshifting my career as a corporate lawyer,” Djugumanova added.

Originally reported by CEE In-House Matters.

ODI Law has successfully represented LSG Building Solutions d.o.o. construction company in a EUR 215,000 claim against the City of Skopje arising out of a public procurement contract for performing construction works for the reconstruction of the Pelagonija building on the Skopje central square. 

According to ODI Law, “LSG Building Solutions d.o.o. raised the claim before the Macedonian courts following the termination of the public procurement contract for performing construction works. In 2015, a consortium comprised of LSG Building Solutions d.o.o. and Mason Engineering d.o.o. and the City of Skopje entered into a EUR 1.6 million public procurement contract for the reconstruction of the Pelagonija building on the Skopje central square. The public procurement contract was terminated by the City of Skopje in 2017 and LSG Building Solutions d.o.o. in 2018 raised the claim against the City of Skopje for the completed works.”

ODI Law’s team was led by Partner Gjorgji Georgievski and included Partner Ana Stojanovska, Senior Associate Kristina Tomashevska-Blazhevska, and Associate Ema Tasevska.

ODI Law has successfully represented Tirana-based A&A Group in a EUR 1 million claim based on unpaid loans against marijuana producer F&M 2017 d.o.o. 

A&A Group operates in the retail and hospitality industries.

According to ODI Law, “A&A Group raised the claim before the Macedonian courts in 2020 following the failure of F&M 2017 to repay the loans granted by A&A Group for the development of the marijuana production facilities in Gostivar.”

ODI Law’s team was led by Partner Gjorgji Georgievski and included Partner Ana Stojanovska, Senior Associate Kristina Tomashevska-Blazhevska, and Associate Ema Tasevska.

The new changes of the Company law published on the 21st of April, 2022, introduce the “real” convertible loan institute for the limited liability companies in North Macedonia.

The law recognized this legal institute before, but the loan could be converted into equity only by the shareholder. Based on the wording of the previous definition, the convertible loan could only work for a limited liability company with one shareholder.

But, with the new changes in the company law, the definition of the convertible loan is changed and now the loan provided to the company by a shareholder or third party can be converted to equity of the company.

Based on the new law, the loan provided by a third party as an investor that is transformed into an investment in the company is given exclusively in money. This loan can be transformed into equity no later than three years after the loan agreement had been signed.

According to the changes of the law, it is stipulated that the loan is transformed into a new investment in the company in a procedure of increasing the share capital of the company.

This increase of the share capital is entered based on a loan agreement that is transformed into an investment in the company in a procedure of increasing the share capital of the company and a decision to transform the loan into an investment.

The new law strictly defines the content of this loan agreement, stipulating that the agreement must include the total amount of the loan, the conditions under which the loan will be repaid, the conditions for transforming the loan into an investment in the company, the period in which the loan can be transformed into an investment in the company and the percentage of a share acquired by transforming the loan or method of calculation of the share if the percentage of the share cannot be foreseen on the day of concluding the contract.

The agreement must be notarized and has to be signed between the manager and the shareholders on one side and the investor / third party on the other side.

The change of the law should be considered very good news, especially for the startup community that can use the convertible loan as a method to acquire more investments in the new startup companies.

By Martin Boskoski, Partner, Lalicic & Boskoski Law Office

On November 17, 2021, the Infectious Diseases Commission of North Macedonia proposed anti-COVID-19 measures requiring unvaccinated healthcare professionals and public sector employees to be vaccinated and recommending the vaccination of private-sector employees. The form of the measures could differ somewhat from this proposal; the definite measures, however, are expected to be adopted soon.

The measures are a logical outcome of the negative effects of COVID-19 on public health, the increased mortality, the economic repercussions across numerous sectors, and the negative impact on the social and political environment in North Macedonia. As in many other Eastern European countries, North Macedonia has vaccinated a low number of citizens – only 47% of its adult population is fully COVID-19 vaccinated, one of the lowest vaccination rates in Europe. That said, and in keeping with the example set by some other European countries, the measures appear to be necessary in order to protect the people, the economy, and the social system.

If properly implemented, these measures may ultimately compel employees in certain categories to accept the COVID-19 vaccine in North Macedonia. Although necessary, in the context of the developing pandemic situation in Europe, the measures raise questions about how they will be implemented in practice, the potential repercussions on the business sector, and the expenses incurred.

How Would the Anti-COVID-19 Measures Affect Employers?

The new anti-COVID-19 measures stipulate that all healthcare professionals must be fully vaccinated, and all public-sector employees should present (1) a certificate confirming they have received one dose of vaccine, or (2) a negative PCR test, or (3) a certificate confirming they have had COVID-19 (not older than 45 days) in order to enter their working premises.

The proposed period for compliance with these conditions is 30 days, for healthcare professionals, and 10-15 days for public-sector employees, from the date on which the measures are adopted.

The public sector (i.e., central administration, local self-government units, state and local self-government institutions, bodies, etc.) employs around 10% of all employees in North Macedonia and, if enacted, these measures would ultimately be expected to result in the mandatory vaccination of all healthcare professionals and most public-sector employees.

At this point, it is only “recommended that the private sector join in and introduce the measures to protect the production capacities and the economic processes of the country.”

Specific Challenges in Implementing the New Anti-COVID-19 Measures

It remains to be seen how the government would compel healthcare and public-sector employees to accept vaccinations, how the measures would be applied in practice, and who would bear the implementation costs.

It is not yet clear whether the measures will be applied to the private sector. The invitation for the private sector “to join in the measures” reveals that they are voluntary for private companies, so they seem to be allowed to decide whether, and to what extent, they will comply with the new measures.

As there is no state of emergency, these measures would be implemented by adopting a new (or amending the existing) law. The adoption of any act other than law (resolutions, decisions, decrees, etc.) by the government or other bodies would be challenging to implement, so it remains to be seen how the government would tackle this issue.

In practice, we have already started seeing a variety of reactions from various stakeholders – employers, commercial chambers, labor union representatives, and others. As already mentioned, the measures’ definite form and content are soon to be solidified. 

By Marija Filipovska, Partner, and Zlatko Kujundjiski, Attorney-at-Law, CMS

This Article was originally published in Issue 8.12 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Traditional banking dominates the financial system of North Macedonia with a share in the total assets of the financial system of over 80%, according to the statistical data of the National Bank of North Macedonia. The rest of the financial assets are distributed between non-banking financial institutions such as pension and insurance funds, investments funds, and alternative financial services institutions.

Concerning the lending market, the global trend of increasing alternative financing has affected North Macedonia as well, with a five times rise in the financial assets of alternative financial institutions between 2015 and 1019 and reaching over EUR 60 million by 2020. In the same period, the share of alternative financial institutions in the total financial assets raised from 0,4% to 0,6%, which is the highest growth rate in the North Macedonian financial sector. The number of registered alternative financial services institutions also tripled from 10 in 2015 to 32 registered market players in 2021.

The rapid growth of alternative financial services in North Macedonia in recent years was driven by local market developments and the changing needs of the consumers. Alternative financial services gained even more traction a drive for financial inclusion and access to finance for the population and small enterprises that usually don’t have access to traditional financing channels. The essence of alternative finance is to provide financial services to consumers in a fast, easy, and accessible manner based on the use of modern and innovative technology focusing on digital channels. Even more in a situation of the persistent COVID-19 crisis, fintech is a new reality that regulators and other stakeholders need to acknowledge.

The latest survey of the National Bank supported by the European Fund for Southeast Europe of 2020 shows that nearly 90% of the participants in the survey representing all stakeholders recognize the need for the development of the fintech sector in North Macedonia. However, a regulatory framework that supports growth and innovation is required for fintech development, digital transformation, and the modernization of the financial system. The National Bank’s survey pointed out that regulatory capacity to support this process is not sufficient and that regulations often pose challenges to the innovations in financial technology and the entry of new players into the market.

While the banks are regulated by the National Bank, alternative financial institutions in North Macedonia are regulated by the Ministry of Finance, and the regulatory framework is limited to the Alternative Financial Institutions Law. Secondary legislation has not been adopted to ensure a more detailed regulation of the operation of the alternative financial institutions as is the case with the banks. This often leads to the parallel operation of alternative financial services providers along the legal lines as the legal framework appears to be limited and inadequate to accommodate modern financial operations based on technology.

Consumer protection regulations with respect to consumer lending as well revealed ambiguities and inconsistencies in practice. There are regulations on electronic signature, electronic documents, and the use of electronic services, but there are still challenges in their practical implementation. The institutional and regulatory capacity for data privacy protection and cybersecurity is still developing and a new cybersecurity law is under consideration.

Nevertheless, North Macedonia needs to keep up with the trends in fintech. Obviously, there is an awareness of the benefits that fintech brings, as well as of the risks of cyber-attacks, financial crime, and money laundering associated with the use of financial technology. While building institutional and legal capacity, special attention needs to be paid to the financial literacy of the population. This is an area that requires coordinated efforts by the regulators, businesses, educational institutions, and associations in educating the public on the use of modern technology in financial services. A survey conducted within the Alternative Financial Services Association in North Macedonia pointed out a low level of knowledge and understanding of financial services by the aged population as well as by the population in rural areas. 59% of the population evaluated its financial literacy level as average and weak in this survey. 

By Svetlin Adrianov, Associate Partner and Law Leader Bulgaria, North Macedonia, Albania, and Kosovo, and Jana Nikodinovska, Law Manager, EY Law North Macedonia

This Article was originally published in Issue 8.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

On June 17, 2018, the Republic of North Macedonia and the Republic of Greece concluded the Prespa Agreement which, according to Pepeljugoski Partner Valentin Pepeljugoski, “resolved the name issue as a historical problem between the countries and was a step forward for North Macedonia to become an EU member.” After Bulgaria opposed the start of accession negotiations in October 2020 and again in June 2021, he says that “the country’s next hopes for EU membership are tied to the EU Summit on December 14, 2021, when a date for the start of negotiations with the EU is expected. The focus in the next period is on preparing the administration for all challenges related to the negotiation process, starting from the screening to the achievement of the final goal.”

“We are now all waiting and hoping for a positive outcome in December,” Lalicic & Boskoski Partner Martin Boskoski confirms, noting that “the European Council summit scheduled for December this year might determine the start of North Macedonia’s process of accession talks for joining the EU. But, in order for this to be resolved, we still need positive vibes coming from Bulgaria.” Boskoski also says the country dodged a bullet in November, with “the current government – more open-minded to negotiate a deal or to push for accession talks than the opposition – having survived a vote of no confidence. But, considering the questionable majority that they have, we remain unsure of the outcome.” According to Trpenoski Managing Partner Natasha Trpenoska-Trencevska, “a realistic timeline for the finalization of North Macedonia’s EU Accession Negotiations is five to seven years after the official start of the negotiations.” Boskoski says the negotiations might drag on much longer than usual, due to the bilateral disagreement with Bulgaria, “and even the greatest optimist should not expect North Macedonia joining the EU before 2030.” Pepeljugoski agrees “it is very difficult to provide any timelines since the process should have been initiated some time ago, however, there is always some new issue arising, which prevents the process of joining the EU.”

Legal Harmonization Wins

Trpenoska-Trencevska says “there is no precise or reliable source for a definitive list of laws that have been harmonized over the last five years,” but she mentions the National Program for Adoption of the Acquis Communautaire (NPAA) – a roadmap for meeting the criteria for membership – with the 2021-2025 NPAA having been adopted by the government on June 29, 2021. It offers “a clear picture for the reforms to be undertaken in the next years, for building and strengthening the administrative structures necessary for acquis implementation, as well as the necessary budget resources.” Pepeljugoski says the NPAA constitutes “an important source of information for the business and economic sector in planning future activities” and represents “an important instrument for transparency.”

He also mentions the EU flag laws, EU harmonized “draft laws which reference the original acts of the EU and include a Declaration of Conformity. When entering the parliamentary procedure, they are marked with the flag of the European Union and are envisaged to be adopted in an abbreviated procedure.”

Boskoski points to the Public Prosecution Law and the Law on Personal Data Protection, “which have been harmonized with EU legislation in 2020.” He mentions that “many laws have been harmonized in the last five years, but the real hurdle remains the practice and interpretation of these laws by Macedonian institutions.”

Still Work to Do

Boskoski says that “at the moment, the process of improvement of the legal framework in the field of indirect and direct taxation, through harmonization with the EU Directives and enhancement of institutional capacities, is ongoing.”

Pepeljugoski adds that the new NPAA includes “a number of national legal acts that are subject to harmonization with EU legislation, for 2021-2025, like: the Law on Administrative Employees; the Law on General Administrative Procedure; the Law on Criminal Procedure; Amendments to the Elections Code; the new Law on Payment Services and Payment Systems; the new Law on the Prevention of Money Laundering and Financing of Terrorism; the new Law on Bankruptcy; amendments to the Law on Trade Companies; a new Law on Audit; the Law on Copyright and Related Rights; a new Banking Law; a new Insurance Law; and the new Criminal Code, among others.” He says the NPAA also includes plans for harmonization with EU practices on “financial services, information society and media, transport policy, energy, taxation, social policy and employment, enterprise and industrial policy, judiciary and fundamental rights, justice, freedom and security, education and culture, the environment, foreign policy, internal control and more.”

Trpenoska-Trencevska highlights the new Law on Civil Procedure (part of the Strategy for Reform of the Judicial System 2017-2022) as possibly the most important piece of legislation currently being addressed. “This is the result of establishing a stable civil law system by filling in the existing legal gaps in the 2005 version of the law, which did not yield the expected results in terms of speeding up litigation proceedings. The pending law is a result of the need for its harmonization with European standards and modern social trends.”

Willpower

“The decline of support for EU membership, which had been a trend for many years, stopped in 2020,” according to Trpenoska-Trencevska, “with a 4% increase in the population supporting Macedonian EU membership compared to 2019, up to 69%.” Boskoski agrees, saying that “the public and the political parties are looking forward to the country progressing towards the EU – but the latest failure of the EU to deliver on its promises, especially after the Prespa Agreement with Greece that changed the name of the country, resulted in worsening of the public perception at the time.”

To conclude, Boskoski says that “North Macedonia has no other alternatives than the EU. This means that the earlier we find an acceptable solution with Bulgaria the better it is for all citizens of the country. For Trpenoska-Trencevska, it’s “the security aspects of the EU integration process that constitute a significant factor for my support of EU membership.” She’s hopeful that “economic development, unemployment, the quality of life, and public infrastructure would be positively affected by Macedonia’s EU membership.” While “North Macedonia’s path to EU membership has proven to be incredibly hard, containing lots of ups and downs,” Pepeljugoski is confident that “the country has a central strategic position, and is fully focused on the European market and cooperation with European countries. Therefore, the country’s membership in the EU does not mean the EU’s enlargement, but rather its completion.”

This Article was originally published in Issue 8.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Mining is significant for North Macedonia, a country with one of the longest mining histories in the Western Balkans and vast natural resources including iron ore, copper, zinc, gold, lead, and lignite. Hence, mining significantly contributes to the development of the Macedonian economy and, in particular, to the development of local governments. Specifically, a local government receives 78% of the fee paid for each concession on its territory. The regulatory framework governing mining is therefore critical for the sector’s future expansion and investment possibilities.

The mining regulations adopted back in 2012 aimed to boost new investments in mining and prioritized only the financial benefits of mining activities. The mining regulations introduced shorter, simpler, and faster procedures for granting mining permits and concessions. Furthermore, they provided easy conversion of the exploratory concession into an exploitation concession, providing an opportunity for investors to commence exploitation faster. Following the adoption of these mining regulations, the sector saw a substantial increase in the number of granted concessions and mining activities. However, the increased mining activities led to increased pollution in the regions where the mining activities began. The development of the industry caused chemical pollution of water and soil, and affected the biodiversity and the health of the local population.

Despite the clear financial benefits of facilitating the growth of the mining sector, the country is now faced with the challenge of striking a balance between financial interest and environmental protection.

In an attempt to strike a balance, in 2019, Macedonian lawmakers adopted significant amendments to the mining regulations to provide greater protection of the health of the population living near the mines and environmental protection. These amendments prohibit the granting of concessions for the exploitation of mineral raw materials through leaching procedures or flotation of metallic mineral raw materials with cyanide or sulfuric acid in open-pit mines. As an exception was provided for the already granted concessions, the amendments only apply to new open-pit mines.

The 2019 legislative amendments fueled the ongoing debate among environmental activists and the business community, triggering the Macedonian Government to reconsider its position on mining regulation. In July 2021, the Macedonian Government proposed new amendments to the mining regulations, which appear to be some sort of a compromise between the demands of environmental activists and the needs of the business community.

The most significant changes include the introduction of new circumstances under which the Macedonian Government will be entitled to unilaterally terminate a concession agreement. More precisely, the recent amendments stipulate that the concession may be terminated due to a material breach of the concession agreement and applicable regulations. The Macedonian Government will now have the opportunity to terminate the concession agreement if exploitation violates the public interest and when the concessionaire performs exploitation outside the territory to which the concession has been granted. However, in such a case, the concessionaire will be provided with an opportunity to apply for a new concession for exploitation at another site.

Concessionaires will be subject to a more thorough audit of their performance. The Macedonian Government will be entitled to terminate the concession agreement if the concessionaire exploits less than 20 percent of the projected amount of mineral raw material within one year. However, even in this case, the termination is conditional on providing an opportunity for the concessionaire to clarify the reduced exploitation. Moreover, the concession will not be terminated if the concessionaire provides an adequate explanation for the reason for the reduced exploitation. The explanation will be reviewed by a competent committee empowered to extend reduced exploitation for another consecutive year. The conditions under which the concessionaires operate will become stricter once the amendments are adopted.

The proposed amendments currently under review by the Macedonian Parliament are expected to bring some reconciliation of the stakeholders. It seems that the amendments tend to satisfy both representatives of the mining industry and environmental activists. However, it is all but certain that the debate will continue.

By Gjorgji Georgievski, Partner, and Fani Dimoska, Associate, ODI Law

This Article was originally published in Issue 8.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Governmental changes, a recovering economy, and the possible introduction of digital courts – these are the latest developments in North Macedonia, according to Popovski & Partners Partner Ognen Martinov.

“Since mid-January, we have had a new government in place,” begins Martinov. “However, it was formed by the same political party as the one before it.” North Macedonian Prime Minister Zoran Zaev quit his position in late December 2021 and, following that, a new government has been appointed. “There were some changes in the ranks of ministers, perhaps most importantly a new justice minister, but there is a significant amount of overlap with the previous government as well.”

With the new government taking the reins of the country, Martinov believes that “a certain amount of political freshness is to be expected, but it is impossible to know what exactly the future holds.” Ongoing projects, such as those seeking to further harmonize North Macedonian legislation with that of the European Union, however, are more than likely to continue.

“The digitalization of the judicial system, most notably the courts, is underway as well,” Martinov continues. “It is a slightly larger undertaking now than it was when it began.” He reports that, in a comprehensive effort to allow the citizens of North Macedonia a more straightforward approach to the justice system, some 200 courtrooms and 34 courts have already been prepared for digital use. “It is quite possible that the project will be completed this year – which would be a huge step forward.”

Speaking of legislative updates of note, Martinov mentions the amendments to the Labor Law framework of North Macedonia. “The new law has officially introduced Sunday as a non-working day, bar some crucial industries. In this respect, parts that regulate employee compensation for working on Sundays have had an overhaul,” he reports. “Also, there is a significant number of new legislative pieces in draft form which await further processing, such as those regulating civil procedure, the criminal code, and the wider civil law area.” 

The North Macedonian economy, while still reeling from the pandemic fallout, is slowly getting back on track. “The legal market is returning to normal and the business sectors are stabilizing,” Martinov reports. “Industry zones are developing various technological aspects, new investors are coming in, and jobs are being created.”

Additionally, Martinov reports that one of the key drivers of this economic recovery is the construction sector. “Construction is in a constant state of growth and development and there are new projects popping up all the time,” he says. “A major landmark in this regard was the completion and start of operations of the East Gate Mall – the largest shopping mall in the country,” he says in conclusion.