Skopje, 2 October 2023 (MIA) – Deputy Prime Minister in charge of European affairs, Bojan Marichikj, on behalf of the Government, signed Monday the financial agreement on IPARD III, at a ceremony attended by EU Ambassador David Geer, Finance Minister Fatmir Besimi, and Minister of Agirculture, Forestry and Water Economy, Ljupcho Nikolovski. As part of the IPARD III programme, EUR 97 million in non-refundable funds are set to be provided for the modernization and development of Macedonian agriculture.

According to Marichikj, the financial agreement is essential for Macedonian agriculture and is a continuation of the successful IPARD story in the country.

“By strengthening the agricultural sector, we are getting closer to the standards of the EU’s common agricultural policy, which is among the most important policies and the one with the most investment, whose fundamental goal is support for the economic sustainability of rural areas,” said Marichikj.

“The agreement signed today,” said Marichikj, “will represent a continuation and an even greater development of the successful cooperation we’ve had with the EU thus far.”

The good news, according to Ambassador Geer, is that IPARD III will broaden investment opportunities.

“Apart from the traditional activities which we support for agricultural businesses and farms, once again there will be support for reforestation and protection of forests which is exceptionally important for climate change. Also for advisory services and rural infrastructure, as well as an opportunity for farmers to submit projects that will encourage groups of producers in short supply chains,” said Geer.

The EU Ambassador stressed that North Macedonia has used almost EUR 223 million through the IPARD programmes since 2007. 

“North Macedonia is a country which is leading the country in terms of the use of IPARD funds. It is a country where agriculture is at the core of the economy, society, and identity of its citizens. So far almost 3.100 projects have been successfully completed with the support of IPARD. They helped upgrade farms, agricultural business, modernize businesses and diversify the economic activities in rural areas. We expect the new program to bring even more ambitious results, more funds and a broader coverage of activities,” said Geer.

In order to ensure efficient and transparent use of the public funds, according to the Ambassador, corrective activities are necessary to shorten the delays when paying out the funds and eliminate the misuse of funds. “That’s why the funds will be granted through an adapted software for an electronic submission of requests which will enable a better administration and control over the IPARD funds and shorten the procedure, making it more efficient,” said the Ambassador.

Finance Minister Besimi assessed the IPARD programme as the strongest signal of solidarity from the European Union for North Macedonia as a future EU member state.

“Today’s agreement for a grant of EUR 97 million for the IPARD III programme is proof that Europe never gave up on us, and that we didn’t give up on Europe. On top of those EUR 97 million we have the national co-financing of EUR 31 million, which means the agricultural sector will receive support of around EUR 128 million,” said Besimi. 

The Finance Minister noted that a lot of EU funds, as well as budget funds, have been allocated for agriculture thus far.

“Compared to 2017, when we had Mden 1.6 billion for this sector, in the past year we have almost three times as much in the budget. The subsidies which stood at Mden 7.7 billion have exceeded 9 billion, and with the latest reallocation of funds, which is set to be adopted in Parliament tomorrow, an additional Mden 800 million are planned,” said Besimi. 

According to Besimi, around EUR 70 million have been used from IPARD I and IPARD II so far. The Minister added that until the end of 2023, the realization is expected to reach 80 percent. Through the IPA programme, North Macedonia receives additional EU assistance of more than EUR 2 billion, which, Besimi noted, is almost 15 percent of the country’s GDP.

Minister of Agriculture, Forestry and Water Economy, Ljupcho Nikolovski, said a very low percentage of IPARD I funds were used, noting that as a result, since the very beginning of the IPARD II in June 2017, the Government worked to restore the belief of the citizens and the business sector that “it is possible to get European funds in a fair, transparent, legal way, through quality applications, and simplified procedures.”

“Now we have way more agreements than Serbia, Albania and Montenegro combined, and over 2.100 investments paid out,” said Nikoloski, adding that as a result, the EU has made a decision to provide EUR 97 million through IPARD III, which is a 62 percent increase in non-refundable European funds. 

“We expect the funds of the new IPARD III programme to be used up by 2027, and alongside the national co-financing and the co-financing of the applicants, we expect investments to reach up to EUR 250 million,” stressed Nikolovski.

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