AGP Executive Report

Corridor 8 Rail Funding: North Macedonia is moving fast on Corridor VIII’s Bulgaria link, with Prime Minister Hristijan Mickoski saying financing agreements are set for the Kriva Palanka–Deve Bair section, including the cross-border tunnel, backed by a €149m EU grant plus EIB/EBRD support. Cross-Border Environment: Greece and North Macedonia launched a €3.07m Interreg project to improve governance and sustainable management of Lake Doirani, with joint monitoring and planning led by Macedonia and Thrace’s decentralized administration. Diplomatic & Trade Links: Kazakhstan opened an honorary consulate in Ohrid, aiming to boost business, investment, culture and tourism ties, while also discussing visa-free travel. Regional Finance Integration: Bosnia and Herzegovina applied to join SEPA, where North Macedonia is already included, promising cheaper and faster euro cross-border payments for firms and consumers. Political Tensions: Reports describe an incident in Strumica area tied to opposition activists protesting Gostivar’s drinking water contamination, with accusations of intimidation by ruling party-linked individuals. EU Security Debate: A European Parliament report warns Russia is intensifying hybrid interference across Western Balkans countries, including North Macedonia, to slow EU integration. Business/Jobs Angle: A regional IT outsourcing story argues cheap labor is losing its edge as foreign HQ decisions and AI-era expectations reshape demand for services.

Corridor 8 Rail Push: North Macedonia’s PM Mickoski says Bulgaria and North Macedonia are locked in on the Corridor VIII cross-border railway tunnel, with financing agreements expected to be signed for the Kriva Palanka–Deve Bair section after two years of talks. EU Funding: The EU is backing the project with a €149m grant under the Western Balkans Investment Framework, alongside financing from the EIB and EBRD, aiming to complete the third phase toward the Bulgarian border. Cross-Border Water Protection: Greece and North Macedonia launched a €3.07m Interreg project to improve governance and sustainable management of Lake Doirani, with joint monitoring and environmental planning led by Macedonia–Thrace authorities. Payments Integration: Bosnia and Herzegovina has applied to join SEPA, which already includes North Macedonia, promising cheaper and faster cross-border euro payments once the transition is complete. Tourism & Travel Costs: New data flags Skopje among Europe’s cheapest 3-star summer breaks (around £42/night), while WTM London reports strong early exhibitor demand, including North Macedonia’s tourism board. Business Climate Watch: A Russia-focused EU Parliament report warns of intensified hybrid interference targeting Western Balkan EU paths, including North Macedonia.

Corridor VIII Rail Financing: North Macedonia’s PM Hristijan Mickoski says Bulgaria and North Macedonia are committed to the Corridor VIII railway tunnel after Thursday’s signing of financing agreements for the Kriva Palanka–Deve Bair section, with EUR 149m in a Western Balkans Investment Framework grant plus EIB/EBRD financing. Regional Payments Integration: Bosnia and Herzegovina has officially applied to join SEPA, aiming to cut cross-border euro payment costs and speed up transactions for consumers and businesses; neighbors including North Macedonia already use SEPA. Energy & Environment: Greece launched a €3.07m Interreg project to improve cross-border governance and sustainable management of Lake Doirani, while a separate report highlights CBAM cost advantages for Albania’s hydropower-based electricity exports versus higher default emission factors for North Macedonia. Diplomacy for Trade: Kazakhstan opened an honorary consulate in Ohrid, positioning it as a catalyst for business partnerships, tourism and cultural cooperation. Business Climate Watch: A U.S. judge set March 2027 for the antitrust trial over Paramount’s $110bn merger with Warner Bros. Discovery, with “ticking fees” adding pressure on deal timing. Local Economy Angle: Wizz Air opened a new Palermo base with two A321neo aircraft and plans to add a third, expanding routes that can boost regional travel demand. Labor & Cost of Living (Europe-wide): Eurostat data show minimum wage changes in 2026 vary widely across Europe, with real purchasing power pressures where inflation outpaced wage growth.

Energy & Trade: HELLENiQ ENERGY reported 2Q26 Adjusted EBITDA of €442m and 1H26 Adjusted EBITDA of €734m, highlighting “security of supply” via diversified crude sourcing and flexible refining, plus a 35% jump in diesel and jet fuel exports. Cross-Border Environment: Greece and North Macedonia launched a €3.07m Interreg project to improve governance and sustainable management of Lake Doirani, with joint monitoring, planning and public-awareness work led by Macedonia and Thrace authorities. M&A Watch: Cygnus Metals’ directors backed a takeover by Central Asia Metals, with a draft scheme booklet lodged for ASIC review and a shareholder vote expected mid-September; Cygnus has North Macedonia production assets. Legal/Media Industry: A US judge set March 2027 antitrust trial dates for Paramount’s $110bn Warner Bros. Discovery merger, with a “ticking fee” that could cost about $7m per day after Oct. 1. Local Business/Travel Costs: A travel-cost study put Skopje among Europe’s cheapest 3-star breaks at about £42.01 per night, alongside Tirana and other lower-cost destinations. Labour & Living Standards: Eurostat data on minimum wages shows real purchasing pressure in parts of Europe, with only eight of 29 countries raising gross minimum wages in early 2026.

Cross-border Environment: Greece and North Macedonia launched a €3.07m Interreg project to protect and sustainably manage Lake Doirani, setting up joint governance, monitoring and hydrological plans with Greek and Macedonian institutions. M&A Watch: Cygnus Metals’ directors back Central Asia Metals’ takeover of 100% of Cygnus; a draft scheme booklet has been lodged with ASIC, with an initial court hearing targeted for Aug. 13 and a shareholder vote planned for mid-September. EU Integration Pressure: A European Parliament report says Russia is intensifying “hybrid interference” to slow Western Balkan EU progress, naming North Macedonia among affected countries. Energy & Trade: A new Energy Community Secretariat report gives Albania a zero default CBAM emission factor for hydropower exports, while North Macedonia’s electricity faces higher CBAM costs—highlighting regional competitiveness in power trade. Business Travel Demand: Wizz Air opened a new Palermo base with two A321neos and will add a third, expanding routes that could boost regional connectivity and tourism flows. Labour & Cost of Living: Eurostat data show North Macedonia’s minimum wage (€586) sits above Albania’s, while broader European minimum-wage trends point to real-term pressure where inflation outpaced pay.

Paramount-Warner Bros. Antitrust: A U.S. judge set the antitrust trial over Paramount’s $110bn Warner Bros. Discovery merger for March 2–19, 2027, with “ticking fees” that could cost Paramount about $7m per day if the deal drags on. Local Business & Travel: Wizz Air opened a new Palermo base with two A321neo aircraft and plans a third plus six new routes, a reminder of how airline capacity can quickly reshape regional tourism demand. Western Balkans Economy: A €3.07m Greece–North Macedonia Interreg project will protect Lake Doirani, focusing on cross-border governance, monitoring and community outreach. Energy & Trade: A report says Albania’s hydropower exports to the EU face zero CBAM costs, while North Macedonia’s electricity imports carry a carbon cost—an angle that matters for regional power pricing. Regional Cooperation: Serbia and North Macedonia reaffirmed plans on transport, rail upgrades and energy connectivity, including work tied to Corridor 8. Jobs & Mobility: A North Macedonia-linked tourism affordability study put Skopje among Europe’s cheapest 3-star breaks, which could support demand for local hospitality and services.

EU Enlargement & Hybrid Influence: A European Parliament report says Russia is stepping up hybrid interference—disinformation, covert financing, cyberattacks and economic pressure—to slow EU progress in Western Balkans states including North Macedonia, warning the EU’s counter-response is uneven. Energy & Trade Costs: A new Energy Community Secretariat report finds electricity exported from Albania to the EU faces zero CBAM costs (default emission factor 0), while regional exports are costlier—North Macedonia is cited at about EUR 66.8 per MWh—highlighting competitive pressure in cross-border power markets. Cashless Payments: Israeli fintech Nayax has launched its cashless payment services in North Macedonia, enabling merchants to accept card payments via its platform and targeting growth in unattended retail like vending, parking and self-service kiosks. Labour & Wages Context: Eurostat data on 2026 minimum wages shows real purchasing power pressure across Europe; North Macedonia is listed among the lower-wage group (EUR 586 gross monthly), underlining affordability challenges for workers. Transport Connectivity: Bulgaria and North Macedonia held the first joint committee meeting for a cross-border railway tunnel under Corridor 8, adopting rules and a timetable and reviewing financing options. Regional Business & Mobility: A travel-price study flags Skopje among Europe’s cheapest 3-star breaks (about £42/night), adding a tourism-demand angle for local hospitality.

Cashless Payments Expansion: Israeli fintech Nayax has launched its full cashless payment services in North Macedonia, letting merchants accept debit and credit cards via its commerce platform—targeting unattended retail like vending, laundromats, EV charging, parking and self-service kiosks. Energy & Trade Costs: A new Energy Community Secretariat report says electricity exported from Albania to the EU is exempt from CBAM costs because Albania’s default emission factor is set at zero; by contrast, the report estimates CBAM carbon costs for North Macedonia at about EUR 66.773 per MWh. Regional Rail Connectivity: Bulgaria and North Macedonia held the first joint committee meeting for the Corridor 8 cross-border railway tunnel, agreeing on rules of procedure, a preliminary timetable and next steps on financing options. Business-Climate Context: A wider European wildfire update notes the Balkans—including North Macedonia—are below historical wildfire medians, while extreme conditions elsewhere are still pressuring commodity and inflation outlooks. Sports With Local Business Angle: Hibs’ Conference League focus shifts to Shkendija, with the first leg in North Macedonia next week—another reminder of how European fixtures can drive short-term travel and spending.

Tourism & Consumer Costs: Budget travel research by hoppa puts Skopje among Europe’s cheapest 3-star summer breaks, at £42.01 per night (just behind Tirana at £41.72), as searches for “cheap holidays” rise. Digital Payments: Israeli fintech Nayax has launched its cashless payment services in North Macedonia, targeting unattended retail (vending, laundromats, EV charging, parking, self-service kiosks) and giving merchants card acceptance plus sales and loyalty tools. Regional Infrastructure: Serbia’s PM Djuro Macut met North Macedonia’s PM Hristijan Mickoski in Ohrid, highlighting growth potential in transport, energy connectivity, agriculture and tourism, including joint work on rail upgrades toward Greece. Energy & Sanctions Watch: Serbia’s energy minister says there are indications NIS may receive a new US OFAC operating licence, crucial for planning crude purchases and refinery operations. EU Transport Project: Bulgaria and North Macedonia held the first joint committee meeting on a cross-border railway tunnel under Corridor 8, adopting rules and a preliminary timetable while discussing financing. Labour & Migration (Regional): Croatia’s Korčula work-permit case renewed debate over security screening for foreign workers, with 56,662 permits issued in Dubrovnik-Neretva since 2021 and 742 refusals. Business Climate (Macro): Eurostat comparisons show North Macedonia among countries where households struggle to afford a one-week holiday, underlining pressure on consumer spending.

Digital Payments Expansion: Israeli fintech Nayax has launched its full cashless payment services in North Macedonia, letting local merchants accept card payments via its commerce platform, with a focus on unattended and self-service retail like vending machines, kiosks, parking and EV charging. Cross-Border Rail Push: Bulgaria and North Macedonia held the first joint committee meeting in Sofia on the Corridor 8 cross-border railway tunnel, adopting rules of procedure and a preliminary timetable while reviewing financing options and reaffirming commitments to the EU and lenders. Energy & Sanctions Watch: Serbian PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, with both sides pointing to transport, energy connectivity, agriculture and tourism; separately, Serbia’s energy minister said there are indications NIS may receive a new US operating licence after OFAC extensions tied to sanctions. Labour Mobility: A Croatia work-permit court case renewed debate over security screening of foreign workers; in the Dubrovnik-Neretva region, 56,662 permits were issued since 2021 with 742 refusals, highlighting how screening decisions can become contentious. Regional Cost of Living: Eurostat data shows 53% of Albanian households can’t afford a one-week holiday, and Albania remains Europe’s lowest minimum-wage country even after the 2026 increase—figures that also frame regional purchasing-power pressure including North Macedonia’s minimum wage level.

Cashless Payments Expansion: Nayax has launched its full suite of cashless payment services in North Macedonia, letting merchants accept debit and credit cards via its commerce platform, with a focus on unattended retail like vending, laundromats, EV charging and parking. Energy Infrastructure: North Macedonia’s gasification push is moving forward as the Greece interconnector nears completion, expected to be finished next year and designed to diversify gas supply and enable phased growth of the domestic distribution network. Regional Rail & Trade Links: Bulgaria and North Macedonia held the first joint committee meeting for the Corridor 8 cross-border railway tunnel, adopting rules and a timetable and discussing financing options with a view to improving Black Sea–Adriatic connectivity. Bilateral Cooperation: Serbian PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, highlighting transport, infrastructure, energy connectivity, agriculture and tourism, with rail modernization and border crossings among the priorities. Business Climate Watch: North Macedonia’s minimum-rate policy stayed steady at 4.25% as inflation eases, a signal for borrowers and investors tracking the cost of capital. Labor & Mobility Context: Eurostat data show Albania’s living pressure remains high, with 53% of households unable to afford a one-week holiday and Albania still recording the lowest minimum wage in Europe—figures that frame regional demand and wage competition.

Cashless Payments Expansion: Israeli fintech Nayax has launched its full cashless payment services in North Macedonia, letting merchants accept card payments via its commerce platform and pushing growth in unattended retail like vending, laundromats, EV charging and kiosks. Energy & Infrastructure: North Macedonia’s gasification push is advancing as the Greece interconnector nears completion, expected next year, paving the way for a more diversified gas supply and phased build-out of the domestic distribution network. Regional Rail Connectivity: Bulgaria and North Macedonia held the inaugural joint committee meeting for a cross-border railway tunnel under Corridor 8, agreeing rules of procedure, a preliminary timetable and potential financing options with EU and international lenders. Telecom Performance: Makedonski Telekom won six Ookla Speedtest Awards in H1 2026, including best overall mobile network and top fixed network, citing EUR 1.19bn in modernization investment. Macroeconomic Policy: North Macedonia kept its key interest rate unchanged at 4.25% as inflation eases. Labour & Migration Signals: Croatia issued 56,662 work permits in the Dubrovnik-Neretva region since 2021, with refusals rising only slightly, highlighting how security screening remains a sensitive policy topic. Business Climate Context: Eurostat data shows 53% of Albanian households can’t afford a one-week holiday, underscoring affordability pressure across the region.

Gasification Watch: North Macedonia’s gas interconnector with Greece is nearing completion, expected next year, as the country moves toward a more diversified gas supply and phased expansion of its distribution network, with private investors allowed under a new energy law harmonised with EU rules. Regional Rail Push: Bulgaria and North Macedonia held the first joint committee meeting for a cross-border railway tunnel under Corridor 8, agreeing rules of procedure, a preliminary timetable, and reviewing financing options with the EIB and EBRD. Payments & Retail Tech: Nayax launched its cashless payment suite in North Macedonia, targeting unattended commerce like vending, parking and kiosks, and giving merchants card acceptance plus sales and loyalty tools. Telecom Performance: Makedonski Telekom won six Ookla Speedtest Awards in H1 2026, including best overall mobile and top fixed network, citing EUR 1.19bn in infrastructure investment. Energy Diplomacy: Serbia’s PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, highlighting transport, rail upgrades toward Greece, energy connectivity, agriculture and tourism as key growth areas. Sanctions Risk: Serbia’s NIS is awaiting a new US OFAC operating licence tied to its Russian ownership, with officials saying timing affects crude purchases and refinery planning. EU Integration Context: Austria’s S3 presidency set priorities for Western Balkan EU enlargement, energy security and cross-border connectivity, with North Macedonia among the focus countries. Sports Business Backdrop: UEFA confirmed it will boycott FIFA competitions if FIFA’s plan to sell World Cup stakes to private investors goes ahead, adding uncertainty for future tournament funding models.

Macedonia-Serbia Deals: Serbia’s PM Djuro Macut met North Macedonia’s PM Hristijan Mickoski in Ohrid, flagging bigger cooperation ahead in transport, energy connectivity, agriculture and tourism, with joint border crossings and rail upgrades on the agenda. Rail Corridor 8: Bulgaria and North Macedonia held the first joint committee meeting for a cross-border railway tunnel under Corridor 8, agreeing rules of procedure, a preliminary timetable and next steps on financing. Gasification Push: North Macedonia’s Greece gas interconnector is nearing completion, expected to unlock phased gasification by enabling a new entry point and supporting expansion of the domestic distribution network. Payments Upgrade: Israeli fintech Nayax launched its full cashless payment suite in North Macedonia, targeting unattended retail with card acceptance plus sales monitoring and loyalty tools. Telecom Performance: Makedonski Telekom says it won six Ookla Speedtest Awards in H1 2026, citing a EUR 1.19bn investment push for network modernisation. Energy Sanctions Watch: Serbia’s NIS may receive a new OFAC operating licence, with officials saying a formal US letter could soon clarify how long the company can plan crude purchases and refinery operations. Business-Policy Context: North Macedonia kept its key interest rate unchanged at 4.25% as inflation eases, according to coverage.

Cashless Payments Expansion: Israeli fintech Nayax rolled out its full cashless payment suite in North Macedonia, letting merchants accept card payments via its commerce platform and targeting unattended retail like vending, laundromats, EV charging and kiosks. Energy Infrastructure: North Macedonia’s gasification push moved closer to reality as the Greece interconnector nears completion, enabling a more diversified gas supply and phased build-out of the domestic distribution network. Telecom Performance: Makedonski Telekom said it won six Ookla Speedtest Awards in H1 2026, including best overall mobile and top fixed network in North Macedonia, citing EUR 1.19bn in modernization investment. Monetary Policy: The National Bank of North Macedonia kept the key interest rate unchanged at 4.25%, pointing to easing inflation but warning about external risks from geopolitics and energy prices. Regional Connectivity: Bulgaria and North Macedonia held the first joint committee meeting in Sofia for the Corridor 8 cross-border railway tunnel, adopting rules and a preliminary timetable while discussing financing options. EU Integration Push: Austria’s S3 presidency set priorities around Western Balkans EU enlargement, energy security, transport connectivity and digitalization. Aviation & Travel Context: European airport traffic growth slowed in early 2026 amid geopolitical disruptions, while a major European airport (Brussels South Charleroi) is set to close for runway works in 2028.

Cross-Border Rail Push: Bulgaria and North Macedonia held the inaugural joint committee meeting in Sofia for the Corridor 8 cross-border railway tunnel, agreeing rules of procedure, a preliminary timetable, and reviewing financing options with the EIB and EBRD. Energy & Gasification: North Macedonia’s gas interconnector with Greece is nearing completion, expected next year, setting up a more diversified gas supply and phased expansion of the domestic distribution network with private investors allowed under a new, EU-harmonised energy law. Monetary Policy: The National Bank of North Macedonia kept the key interest rate unchanged at 4.25%, citing easing inflation but warning that geopolitical risks and energy-price volatility still pose upside pressure. Telecom Performance: Makedonski Telekom won six Ookla Speedtest Awards in H1 2026, topping both mobile and fixed network rankings and citing EUR 1.19bn in infrastructure investment. EU Integration Agenda: Austria’s S3 presidency set priorities for Western Balkan EU enlargement, energy security, transport connectivity, digitalisation, and cutting bureaucracy—areas directly relevant to North Macedonia’s accession path. Sports Governance Spillover: UEFA backed a boycott of FIFA competitions over Infantino’s plan to sell minority stakes in World Cup commercial rights, a move that could affect which countries participate in future tournaments.