Macedonia leads the way in east with promise of lowest ‘flat’ tax

Macedonia will become the 10th eastern European country to adopt a flat-rate tax next year, in a move which will highlight Britain’s increasingly high levels of tax and spending.

The Macedonian government will introduce a single rate of income and corporation tax of 12% in 2007. It then plans to lower both to 10% by 2008 to attract more foreign investment and reduce tax evasion, according to the country’s finance ministry.

The new flat rate would replace a corporate tax of 15% and personal income tax ranging from between 15% and 24%. The tax on reinvested profits will be scrapped and there will be a significant zero-taxed personal allowance.

A government statement said: “This step should decrease tax evasion and stimulate taxpayers to meet their obligations to the state. It would also encourage foreign investors to put their money in Macedonian businesses, knowing that taxes are low.”

The most recent country to introduce a flat rate was Romania, last year. The other eight countries to operate such a system are Estonia, Lithuania, Latvia, Russia, Serbia, Ukraine, Slovakia and Georgia.

Until now, Georgia boasted the lowest flat tax at 12% but Macedonia’s move will give it the most competitive rates from 2008. The reform will also put pressure on neighbouring countries, including Greece, Albania and Bulgaria, to follow suit.

Supporters of flat-rate taxes believe that they boost economic growth by improving incentives to work, invest and save; by cutting tax evasion; by reducing bureaucratic costs and by attracting global financial and human capital.

Statement of Prime Minister Nikola Gruevski at SEE Ministerial Conference in Ohrid

Prime Minister Nikola Gruevski has announced that the Government will allot resources for revival of the St. Clement University and construction of a floating museum.

Widely known in the world as the first 9-century Slav University, St. Clement University will be located in the compound of the St. Clement Church at Plaosnik, its original venue. Monastery shelters (rooms) will be constructed in the compound and will have both sacral and secular character. This means that the Faculty of Theology or the Secondary School of Theology in Skopje are planned to move to a part of the building with shelters. There will also be a monastic order. And the secular part will include libraries, reading rooms, exhibiting parlours and halls for other cultural events.

St. Clement University is planned to be completed in three years, Prime Minister Gruevski said. The work will be done in phases and the money is provided from the budget for 2007. The first phase will be carried out in parallel to archaeological research of the whole complex of Plaosnik for the contents of the underground vaults, archaeologist Pasko Kuzman said. In the meantime, tenders for conceptual designs of the University will be released.

In two years, a floating museum will be opened in Ohrid. That will be a reconstructed settlement of lake-dwellings which Pasko Kuzman discovered in his underwater explorations seven years ago. He found 6000 wooden piles on the bottom of the lake which served as a wooden platform for the dwellings of people 3200 years ago in the Bronze Age.

The Floating Museum will be built in the Bay of Bones in Gradiste. Kuzman also said Gradiste would thus become an even more attractive tourist settlement for the world.

VMRO Leader: It is Normal for Bulgarians in Macedonia to Recognize the Bulgarian President as Their Own

Sofia. The member of the VMRO-Narodna Den Donchev hasn’t raised anti-Bulgarian slogans during the ceremony in the Bulgarian military cemetery in the village of Novo Selo in Strumica, the Leader of VMRO Krasimir Karakachanov said in an interview for FOCUS News Agency.
Karakachanov confirmed that tens of citizens of Strumica gave an icon of St. George to the Bulgarian President Georgi Parvanov. ‘This was the way Petar Stoyanov was welcomed, six years ago when he was in Ohrid and Strumica, so it is normal for the Bulgarians in Macedonia to recognize the Bulgarian President as their own’, Karakachanov said.

Prodi says EU enlargement is historical challenge

Any attempt to halt the EU enlargement process for countries such as Macedonia and Croatia threatens to halt the entire exercise, said Italian Prime Minister and former European Commission president Romano Prodi in an interview with Financial Times.

"Enlargement of the European Union must continue by pressing ahead with negotiations for the countries that used to be part of Yugoslavia, as well as Turkey," Prodi told Financial Times, just hours before the European Commission is due to publish a report on EU enlargement strategy.

According to Prodi, enlargement is a great historical challenge.

Germany, Italy and Spain will be vital players in the relaunch of the process, he said, adding that France must also become involved after next year's presidential election.

A1: Bosnia and Herzegovina will Help Macedonia to Cope with Electricity Shortage

Vienna. Bosnia and Herzegovina will help Macedonia to cope with the electricity shortage, Bosnian Prime Minister Adnan Terzic said during talks with his Macedonian counterpart Nikola Gruevski on the sidelines of the 3rd Vienna Economic Forum today, the Macedonian television A1 reported. Terzic invited Gruevski to visit Sarajevo after the formation of a Bosnian government in order to sign agreements in the sphere of energy. During the meeting it was proposed that an economic commission for a trade exchange be set up. Macedonian Deputy Prime Minister for Economic Affairs Zoran Stavrevski attended the talks as well.

Roman tombstone unearthed near Bitola

n ancient tomb stone dating from the Roman era has been uncovered today in the Bitola's nearby village of Zabeni, Makfax's correspondent reported.

Mentor Huseinovski found the plaque, dating from the 3rd century A.D., while digging through his yard.

"I was digging a hole by the duct in order to build a crossing bridge over to my doorstep. I found the plaque dug in about half a meter into the ground", said Huseinovski, who notified immediately the Bitola's Museum and Office for Protection of Cultural Heritage.

The preliminary findings of the archeologists suggest that an artifact is likely to be a segment of a family tomb.

The value of the archeological artifact is yet to be determined as Huseinovski family is still pondering what to do with it.

MACEDONIA – EU RELATIONS

The integration of the Republic of Macedonia in the European Union represents a clear and categorically expressed strategic interest and a priority goal in the policy of the Macedonian Government. The bilateral Stabilization and Association Agreement signed in April 2001 is the last stadium before Macedonia’s admission to the family of developed European democracies. The agreement, as part of the stabilization and association process, initiated by the European Union, represents its major contribution to the Stability Pact for Southeastern Europe. By the end of 2002, the agreement was ratified by the parliaments of Germany, Denmark, Ireland, Austria, Spain, Sweden, the Netherlands and United Kingdom. In 2003, the parliaments of France, Portugal, Greece and Luxembourg also ratified the agreement.
Macedonia is the first country in Southeastern Europe that successfully brought to an end the negotiations for signing of such an agreement. Another detail of this accord is interesting, and that is the fact that the Agreement was first ratified by the European Parliament before the separate EU members states did the same. The Stabilization and Association Agreement, as a complex and legally binding political act, places the Republic of Macedonia among the potential members of the EU and makes it a factor in creating a Europe of the future, a society with the highest democratic values, security for all its citizens and social justice.
From an economic point of view, the Agreement opened the doors to one of the largest, and financially one of the most powerful market in the world. The European family is the most significant partner of the Macedonian economy and within those frames, exports to the EU account for 50.7%, as imports account for 45.2% of Macedonia’s total foreign trade. Before the Stabilization and Association Agreement was signed, in 1997, Macedonia and the EU signed an agreement for cooperation, as well as textile, wine, and transport agreements. Macedonia’s most important trade partners in Europe are Germany, Italy, and Greece, and its most important export products are ready-made clothing, hot rolled and zinc-coated plates, non-alloyed zinc, wine, ferrosilicon, flexes, footwear, and cotton yarn. The export of these goods earns Macedonia an annual profit of around $400 million.
The Stabilization and Association Agreement between the Republic of Macedonia and the EU
has an asymmetrical model that regulates their bilateral trade relations. Under the SAA, the Macedonia-made goods imported in the EU will not be subject to customs and quantity restrictions, save for fish, sea products, veal and wine. Macedonian goods will be one-sidedly entitled to customs relieves in a ten years’ period of adjustment towards a future, limitless competition. The European Union is already allowing customs-free import of almost all the Macedonian products, and with the gradual trade liberalization on the Macedonian side, a free trade zone will be introduced over the next ten years. Within the framework of the SAA, special protocols regulate trade in, what are known as, sensitive sectors, such as textiles, and production of steel and steel products.
In March 1996, the Republic of Macedonia became a full member of the PHARE program and between 1996 and 1999, 100 million euros was granted to Macedonia in support of its reforms.
In January 2002, the European Commission adopted a five-year strategy for Macedonia for which
EUR 110.5 million was approved. The EU financial aid will be implemented through the CARDS program from 2002 to 2006 and will support the plan for stabilization and association of the West Balkan countries. Priority will be given to the democratic processes, the legal, economic and social development, ecology and other key matters in the process. An accent will be put on the promotion of the civic society and the inter-ethnic dialogue, and on reconciliation and prevention of any new conflicts. The money will also be used to support the process of creating effective market economy, promote trade, decrease unemployment, improve the judiciary system, reinforce border controls, protect natural environment and prevent money laundering. For the countries in the region
included in the process of stabilization and association - Albania, Macedonia, Bosnia, Croatia, and Serbia and Montenegro - the European Commission committed a total of EUR 5.5 billion.
In the next ten years, the EU, as well as other international political and financial factors are expected to show greater interest in the political consolidation of Southeastern Europe. In this regard, Macedonia is considered one of the leaders that should use its positive influence to help the countries of the Western Balkans get out of the crisis as soon as possible.

Cytostatic medicines to be procured by Clinic Center on monthly basis

Skopje Clinic Center has launched a new practice in procurement of cytostatics, Borce Georgievski, the Director of the Center announced today.

He explained that in the future, each Clinic Center's department will have to file their orders until the fifth day of the month.

Georgievski said that this month's orders have been already executed. It is the first order of medicines and medical material made by the new managerial team.

"All previous orders, have been made by the prior managerial team", Georgievski said.

According to him, the shortage of these medicines occurred due to improper tender procedures.

"We wrapped up this process last month, and conclusion of new contracts with suppliers is now under way. We expect to provide access to the patients of the six types of cytostatics, which were omitted from the list of available medicines' throughout 2006", Georgievski said.

Dnevnik, Skopje: EU Starts Talks with Macedonia on Visa Regime Facilitating

Skopje. The EU started talks with Macedonia for easing the visa regime. Students, business people and air carriers will be the first to take advantage, Macedonia’s Deputy PM Gabriela Konevska-Trajkovska said in Bitola cited by the Macedonian Dnevnik newspaper.
“This is the first step towards the entire liberalization of the regime,” Trajkovska announced. She refused to comment on the European Commission’s draft paper that BBC knows of. The paper states that Western Balkan countries will not join the EU for many years on.

UK Minister for Europe to visit Macedonia

he British Minister for Europe Geoff Hoon will visit Macedonia on 7 - 8 November.

"The award by the European Union of Candidate Status to Macedonia last year was both welcome and deserved. But, as with any other candidate nation, the EU's conditions for membership are tough and will be rigorously applied," Hoon said on his visit to Macedonia.

Minister Hoon will be discussing the work that meeting the conditions will involve with the new government, British Embassy said in a statement.

"No-one doubts that there is hard work ahead. This will include building a modern, independent and professional police force and an efficient and fair judiciary," Hoon said, adding that through this process, Macedonia will realize its future as a modern, democratic European state that can deliver security, justice and prosperity for its citizens.

Minister Hoon kicked off a three-day visit to the region today, visiting Bosnia and Herzegovina, Kosovo, Macedonia and Montenegro.

Macedonia's corruption index worsens

Macedonia ranks 105th in corruption watchdog Transparency International's 2006 Corruption Perceptions Index (CPI).

The CPI is a composite index that draws on multiple expert opinion surveys measuring perceived levels of public sector corruption in 163 countries. It scores countries on a scale of zero to 10, with zero indicating high levels of perceived corruption and 10 indicating low levels.

In the past three years, Macedonia has the same corruption perceptions index (CPI) of 2.7 and it continues to drop in TI's annual reports. In 2005, Macedonia was ranked 103rd, and a year before it was ranked 97th.

In 2006, Macedonia was 105th among 163 countries tying with Bolivia, Iran, Libya, Malawi and Uganda.

According to TI's 2006 rankings of countries in South East Europe (SEE), Macedonia is almost at the bottom of the SEE region. Albania was ranked 111th with CPI 2.6.

As regards the countries in South East Europe, Slovenia was ranked 28th, Greece 54th, Bulgaria 57th, Turkey 60th, Croatia 69th, Romania 84th, Serbia 90th and Bosnia and Herzegovina (BiH) was ranked 93rd.

TI said that some of the world's poorest nations are also the most sleaze-ridden, undermining international development efforts. Corruption is shockingly rampant worldwide with almost three-quarters of the countries in the report scoring below five, including all low-income countries and all but two African states.

Wealthy democracies topped the list, confirming the link between anti-sleaze efforts and prosperity. Finland, Iceland and New Zealand scored a near-perfect 9,6, followed by Denmark (9,5), Singapore (9,4), Sweden (9,2) and Switzerland (9.1).

Worsening perceived levels of corruption was seen in the United States. TI noted that while industrialized nations scored high on this year's index, corruption scandals continued to rock many of them.

Macedonia's opposition social democrats elect new leader

Macedonia's main opposition social democrats elected former deputy prime minister Radmila Sekerinska as their new leader early Monday.

At an emergency congress of the Social-Democratic Alliance for Macedonia, Sekerinksa, 34, won the overwhelming majority of the vote.

She was the only candidate to replace former prime minister Vlado Buckovski, who stepped down after the party lost July's parliamentary elections to Prime Minister Nikola Gruevski's conservative VMRO-DPMNE party.

"We are turning a new page," Sekerinska told reporters after the vote.

Considered a close ally of Macedonian President Branko Crvenkovski, Sekerinska served as deputy prime minister responsible for Macedonia's EU integration in Buckovski's leftist coalition government.

Macedonia applied to join the European Union in March 2004 and was accepted as a candidate last year, after the European Commission praised its efforts in dealing with an ethnic Albanian insurgency in 2001.

The social democrats have 24 deputies in Macedonia's 120-seat unicameral parliament.

Macedonia’s Defense Minister: Dividing Line between Macedonia and Kosovo is Technical Issue

Sofia. The dividing line between Macedonia and Kosovo is a technical issue. If we turn it into a political one we make it a problem, Macedonia’s Defense Minister Lazar Elenovski told a reporter of FOCUS News Agency after a meeting with his Bulgarian counterpart Veselin Bliznakov.
Elenovski pointed out that the dividing line would be specified in the framework of Kosovo status talks. Minister Elenovski underlined after the meeting that he hoped Bulgaria’s EU membership and support would influence Macedonia’s NATO aspirations. He also said that during the meeting plans for future joint defense initiatives between the two countries were swapped.
Minister Elenovski promised to continue cooperating for the reconstruction of the Bulgarian military cemeteries in Macedonia.

BULGARIA TO SUPPORT MACEDONIA’S EU AND NATO ACCESSION

Bulgaria would support Macedonia in its attempts to become NATO and European Union member, Foreign Minister Ivailo Kalfin said.

International Herald Tribune (IHT) quoted Kalfin as saying that he hoped Macedonia would be invited to join NATO in 2008. Macedonia’s NATO accession was important both for Bulgaria and for the whole region, Kalfin said after a meeting with his Macedonian counterpart Antonio Milososki.

Kalfin also said that as an EU member state Bulgaria would support future EU enlargement.

“Bulgaria's position is that the enlargement is the most successful European project in the past decade," Kalfin said.

After the European Commission’s decision to let Bulgaria and Romania join the EU on January 1 2007, EC President Jose Manuel Barroso called for halt in the enlargement process.

Such decision would lead only a ‘distant chance” for Balkan countries such as Croatia, Macedonia, Serbia, Montenegro and Albania to enter the union, IHT said.

Bulgaria would impose a visa regime for the Macedonian citizens after January 1 2007, but “thanks to Bulgaria's decision to issue visas charge-free, mutual travel and communications will not suffer that much", Milososki said.

Macedonia Wildcats Fight for Survival

LESNICA, Macedonia - It's considered a national symbol, displayed on the back of Macedonia's 5-denar coin. But the Balkan lynx, the largest of European wildcats, is a very rare sight in the southern Balkans these days.

Conservationists say only about 100 remain scattered across the region, making it Europe's most endangered wildcat, and they're mounting an urgent effort to save it.

The cat roams the rugged hills of western Macedonia and is also found in parts of Montenegro, Albania, Serbia and Greece. Macedonia is home to the largest number, about 30 - not nearly enough to stave off extinction, experts fear.

Zdravko Moteski, a 70-year-old hunter from the western village of Lesnica, is helping researchers gather information about the elusive cat.

"It's a very rare and sensitive animal, like a shadow moving in the trees," Moteski said during a visit by members of a conservation group to his home in Lesnica, a village 50 miles west of the capital, Skopje.

"I never had a chance to see a lynx. I've only traced its footprints during the winter," he said.

Shepherds and loggers also are being interviewed about the lynx, which can grow to a length of 4 feet, 3 inches and weight of nearly 80 pounds.

A distinct subspecies, the Balkan lynx is generally reddish brown or light gray. Because of its short tail, it largely relies on ear movements for communication.

The cat is adapted for surviving in heavy snow and it follows a largely solitary life. Males are not aggressive among themselves, preferring to avoid one another.

"It's believed the Balkan lynx inhabited the empty territory in the southeast Balkans. This type, like its European relatives, leads a solitary life, moving in territory up to 5 square kilometers (almost 2 square miles)," Svetozar Petkovski, a zoologist and program director at the Macedonian Museum of Natural History.

"Its favorite prey is mammals of different sizes, including mice and rabbits as well as the wild boar piglets. They usually ambush their prey," he added.

Several European conservation groups are providing support for efforts to save the Balkan cat from extinction. They include the German-based Euronatur, the Norwegian Institute for Nature Research and the Swiss-based organization KORA.

The Balkan lynx shares the same fate as other European wildcats, all but vanishing from former roaming grounds. But several European countries, among them Austria, Switzerland, France and Germany, have halted the decline by reintroducing the animal.

Such efforts are a long way off in Macedonia, where the lynx is legally protected from hunting.

"Macedonia is just at the beginning of that road," said Dime Melovski, a 26-year-old biologist who works for a local conservation group.

"Our project is planned to last till the end of 2009. Within that time, after interviewing people, we will carry out field research, setting up photosensors to hopefully photograph a lynx," he said. "Then we hope to eventually capture one for DNA analysis and to reintroduce the Balkan lynx with breeding in captivity."

Melovski isn't optimistic.

"It's still a big cat with slim chances of survival," he said.

Crvenkovski Met Parvanov in Strumica

Strumica. Macedonia’s President Branko Crvenkovski met Bulgaria’s President Georgi Parvanov in the center of the town of Strumica, FOCUS News Agency’s special correspondent Denka Katsarska reported.
The two heads of state laid flowers to the monument of late Macedonia’s President Boris Trajkovski. Trajkovski’s monument is located in the center of the town near the Army Home. The script on the monument quotes the late President’s words: “We all share one and the fate, which is Macedonia”.
A meeting is scheduled to take place between the two heads of state.

Bulgaria to support Macedonia's drive for NATO, EU entry

Bulgaria's Foreign Minister on Friday voiced firm support for neighboring Macedonia's hopes to join NATO and the European Union.

"I hope that in 2008 Macedonia will be invited to join NATO, which is important not only to us, but also to the whole region," Ivailo Kalfin told reporters after meeting Macedonian counterpart Antonio Milososki.

Bulgaria joined NATO in 2004 along with six other eastern European nations, and is set to become an EU member on Jan. 1.

Macedonia, Croatia and Albania are all hoping for early invitations to join NATO, but the alliance has refused to set a date.

Kalfin also said that as an EU member Bulgaria would favor the continuation of the bloc's expansion policy.

"We ourselves feel the expansion fatigue in the union ... but Bulgaria's position is that the enlargement is the most successful European project in the past decade," he said.

After the European Union decided to let Bulgaria and Romania in on Jan. 1, the EU's chief executive, European Commission President Jose Manuel Barroso, called for a halt to further expansion. That leaves only a distant chance of membership for Croatia, which has already begun entry talks, and for EU candidate Macedonia, as well as for other Balkan nations such as Serbia, Montenegro, Bosnia and Albania.

Kalfin and Milososki signed a deal to impose a visa regime on Macedonian citizens' traveling to Bulgaria, as required by Bulgaria's EU entry agreements.

"I am not happy with these visas ... but I hope it is a temporary measure," Milososki told reporters. "But thanks to Bulgaria's decision to issue visas charge-free, mutual travel and communications will not suffer that much."

EU to disappoint Balkan hopefuls

The European Commission will recommend next week that Western Balkans countries postpone any moves towards joining the European Union.

Last year Croatia, Macedonia, Serbia, Bosnia and Albania's all edged closer towards joining the EU.

But a draft Commission report to be published next week says the countries cannot expect to join the EU in the short term, despite some progress.

The report says they are likely to join only in the medium to long term.

The countries are now marking time - not only because reforms have slowed down at home, but also because people in Western Europe want enlargement to pause.

Reforms needed

The Former Yugoslav Republic of Macedonia was hoping to start membership talks, but the European Commission is saying: "Not yet."

The draft report seen by the BBC urges Skopje to speed up political reforms, fight corruption and improve relations with ethnic Albanians if it wants to move ahead with its EU bid.

The report praises Serbia's new constitution and the country's economic stability. But it offers no prospect for the early resumption of talks on an association agreement unless Belgrade helps catch Gen Ratko Mladic, suspected of masterminding some of the worst atrocities of the Bosnian war a decade ago.

Leaders from Balkan nations at a regional summit
Balkan leaders will be told to delay EU membership talks

Serbia is also urged to take a constructive approach to Kosovo, where the majority ethnic Albanians are expected to gain limited independence in the next few months.

The report describes the question of Kosovo's status, relations with Serbia and Bosnia's future as the major challenges for the year ahead.

But it points out that accession for the countries of the region is many years away and calls for the EU to refrain from setting any dates for future new members.

It appears unlikely that a large group of countries will join at the same time, the European Commission says. Future accessions are likely to occur in the medium to long term.

When they meet in December, EU leaders are expected to back those conclusions.

But some, like the French and the Austrians, will be frustrated that the Commission has stopped short of setting the bloc's ultimate borders.

The EU is defined by its values, the draft report says, rather than by fixed geographical limits.

Skopje must accept compromise name or won't get in EU and NATO: Karamanlis

Greece will block the accession of Macedonia in EU and NATO, if Macedonia refuses to accept a compromise over the constitutional name of the country.

Greek Prime Minister Kostas Karamanlis said this in his speech before the Greece's Parliament.

"The leadership of this neighboring country needs to assess the situation and respond to Greece's positive stand", Karamanlis said in the course of debate on state's foreign policy. "On the road (of Macedonia) to EU and NATO, a mutually acceptable name has to be defined. It stands as a condition for Greece's ratification of the accession", the Greek Prime Minister specified.

By signing the 1995 Interim Agreement, Greece undertook an obligation not to block Macedonia's membership in international institutions and organizations.

Athens's problem with the name of Macedonia dates from early 20th century, when Greece formed an alliance with Serbia and Bulgaria in the war against Turkey, and occupied about 50 percent of the geographic territory of Macedonia. This area is now a region in northern Greece.

The part of the territory which was then taken over by the Kingdom of Serbia, is the territory of the present-day Macedonia.

Smaller parts of the geographic territory of Macedonia are now within the borders of Bulgaria and Albania.

Blic, Serbia: Greece to Block Macedonia’s EU, NATO Membership over Name Dispute

Athens. “Greece will block Macedonia’s EU and NATO membership, unless Skopje makes a compromise on the country’s name”, Greek Prime Minister Costas Karamanlis said, the Serbian newspaper Blic reported. A mutually accepted solution is the condition for the ratification of Macedonia’s NATO and EU membership by the Greek Parliament. Since 1991 Greece has disputed Macedonia’s right to use its name because it thinks it belongs only to the Greek national and historic heritage. Besides, Greece is afraid of Macedonia’s possible claims to the Greek border district bearing the same name. In 1993 the UN recognized Macedonia as the Former Yugoslav Republic of Macedonia. Continuous talks between Greece and Macedonia held under the auspices of the UN have been unsuccessful by now, the newspaper comments.