The state should be careful about spending public money, realize capital investments, fight the gray economy and reform the administration – these are the key remarks in the latest European Commission report.

Europe notes that the structure of spending is exacerbated and the government needs more ambitious fiscal consolidation to put public finances on a sustainable path. However, it took certain measures and adopted the reforms in taxation of revenues and the pension system. Europe believes that the functioning of the labor market is disturbed by persistent structural problems. Workers do not have the skills required by the business, which is an indicator of the shortcomings in the curricula. According to the commission, this results in impaired productivity and weak competitiveness of the economy. Main business problems remain the grey economy and the implementation of contracts. Prior to the release of the report, Vice Prime Minister Angjushev said he expects generally positive assessments.

Economic growth continued after a year of stagnation, although investments were insufficient. The Commission emphasizes the gap between the necessary and unrealized projects in the public infrastructure. The country, according to the report, is only moderately prepared with reforms in the public sector. The Commission considers that the Government should prevent greater politicization of the public administration and respect the principles of transparency, merit and equal representation in the public sector. There has been progress in adopting a reform strategy, public consultation and greater transparency in policy-making in policy development and coordination.

As regards harmonization with the European legislation, the country is at an early stage of preparation in the area of free movement of workers, as well as in the financial and budgetary provisions. The Commission considers that the country is prepared in areas such as competition, public procurement, transport and energy and has a good level of preparation for company law, customs union, trans-European networks, science and research. According to the European Commission, the country has made progress and is moderately ready to deal with the competition and market forces in the union.