AGP Executive Report

Gas Infrastructure: Greece and North Macedonia reaffirm the Greece–North Macedonia natural gas interconnector schedule, targeting completion in 2027, with direct access to diversified supplies via Greece’s LNG and regasification assets. Cross-Border Funding: Bulgaria will channel EUR 14 mln through two Interreg IPA programmes into business, municipalities and civil society along the Bulgaria–Serbia and Bulgaria–North Macedonia borders, aiming to boost competitiveness and living standards. Cybersecurity: Researchers warn of SharkLoader malware spreading via fake Cisco AnyConnect and Google Update installers, with confirmed activity including North Macedonia. Climate & Transport Disruption: A severe storm flooded key Skopje routes on July 1, turning Srbija Boulevard into an impassable stretch and trapping industrial trucks in traffic chaos. Energy Transition Angle: A reminder that EV adoption still lags in the region—Eurostat data cited North Macedonia among the lowest adopters in Europe—while policy and subsidies remain the sticking points. Policy & Economy: North Macedonia’s PM Mickoski unveils a limited cabinet reshuffle, including changes to coalition posts and the abolition of the deputy PM role for good governance. Public Health: Europe’s WNV update shows North Macedonia reporting one locally acquired human case as of 24 June, part of the early seasonal pattern.

Energy Infrastructure: Greece and North Macedonia reaffirmed the gas interconnector schedule, with completion still expected in 2027 after Skopje talks between DESFA and NOMAGAS. Climate & Resilience: A severe storm hit Skopje on July 1, flooding key roads like Srbija Boulevard and choking industrial and supply transport with major traffic chaos. Transport & Investment: The International Transport Forum put Azerbaijan top for transport infrastructure spending at 3.5% of GDP (2022–2024), while noting North Macedonia and Serbia among the few investing above 2% to modernize networks. EU Funding for Cross-Border Projects: Bulgaria will invest EUR 14m under Interreg IPA programmes across border areas with Serbia and North Macedonia, backing business, municipalities and the non-governmental sector. Cybersecurity: Researchers flagged SharkLoader, a malware loader using fake Cisco AnyConnect and Google Update installers, with reported victims including North Macedonia. Governance: North Macedonia’s PM Mickoski unveiled a limited cabinet reshuffle, adding the Democratic Party of Turks and scrapping the deputy PM post for good governance. Public Health: Europe’s monthly WNV report lists North Macedonia’s first human case in Vardarski, alongside Italy’s two cases. Water Stress Context: A new global map highlights extreme water stress in many countries, underscoring pressure on agriculture and industry as climate patterns shift.

Energy Infrastructure: Greece and North Macedonia have reaffirmed the schedule for the Greece–North Macedonia natural gas interconnector, targeting completion in 2027 after meetings in Skopje between DESFA and NOMAGAS leadership and the energy minister. Climate & Transport Disruption: A severe storm hit Skopje on July 1, flooding key roads like Srbija Boulevard and triggering major traffic chaos, with heavy vehicles stuck in the waterlogged corridor. EU Funding for Cross-Border Development: Bulgaria’s cross-border cohesion programmes with Serbia and North Macedonia will invest EUR 14 million in business, municipalities and civil society through Interreg IPA projects. Cybersecurity Threat: Researchers report SharkLoader malware spreading via fake Cisco AnyConnect and Google Update installers, with confirmed activity including North Macedonia. Politics & Governance: Prime Minister Hristijan Mickoski unveiled a limited cabinet reshuffle, adding the Democratic Party of Turks and scrapping the deputy PM post for good governance. Public Health Watch: Europe’s monthly WNV update notes North Macedonia recorded one human case of West Nile virus in Vardarski as of 24 June.

Cross-Border EU Funding: Bulgaria will invest EUR 14M in Interreg IPA projects to boost business, municipalities and NGOs along the Bulgaria–Serbia and Bulgaria–North Macedonia borders, aiming to raise local living standards and competitiveness. Transport Infrastructure Push: A new International Transport Forum bulletin ranks Azerbaijan first for transport investment at 3.5% of GDP (2022–2024), placing North Macedonia among the few countries spending over 2% to modernize roads, rail and logistics. Cybersecurity Threat: Researchers warn of SharkLoader malware using fake Cisco AnyConnect and Google Update installers, targeting victims including North Macedonia and delivering Cobalt Strike Beacon. Local Disruption from Extreme Weather: A July 1 storm flooded Skopje streets, especially Srbija Boulevard, paralysing traffic and trapping heavy industrial vehicles. EU Budget & Reforms: The EU is set to redistribute Western Balkans Reform and Growth Facility funds, with North Macedonia among frontrunners likely to receive more as other candidates fall behind on reforms. Energy Transition Angle: A regional focus on prosumers and active customer participation highlights how utilities can support the energy transition across Southeast and Eastern Europe.

Tourism Uptick: North Macedonia is seeing a modest rebound in visitors, up 7% in 2025, with new direct Wizz Air flights from the UK to Skopje and Ohrid helping put the country on more travel radars. Storm Disruption: A severe July 1 summer storm hit Skopje with heavy rain, flooding key roads like Srbija Boulevard and triggering major traffic chaos, including stalled industrial trucks. Energy Transition: The Energy Community Regulatory Board is pushing reforms to help “active customers” in North Macedonia and the region generate, store and sell green power—calling for clearer rules to unlock flexibility and cut transition costs. EU Funding Shift: The EU plans to redistribute Western Balkans Reform and Growth Facility money, with Montenegro, Albania and North Macedonia set to receive more cash as other candidates risk losing out. Macroeconomic Outlook: A Vienna Institute update keeps the region’s growth picture mixed, while North Macedonia is the only Western Balkan country with an improved 2026 growth forecast (2.9%). Governance Shake-Up: Prime Minister Hristijan Mickoski unveiled a limited cabinet reshuffle, adding a minister without portfolio for the Democratic Party of Turks and abolishing the deputy PM post for good governance. Public Health Watch: West Nile virus monitoring shows two European countries reporting locally acquired human cases, including one in North Macedonia, with all reported patients hospitalized and no deaths reported.

SEPA Push for Faster Cross-Border Payments: Turkey has submitted a letter of intent to join SEPA, aiming to make euro transfers between Turkey and Europe faster, safer and cheaper—an EU-linked step that could boost regional business payments and settlement efficiency. EU Funding Shift for Western Balkans: The European Commission plans to redistribute Reform and Growth Facility money, with frontrunners Montenegro, Albania and North Macedonia set to receive more while Bosnia and other laggards risk losing out. Skopje Storm Disrupts Industry Logistics: A severe summer storm flooded key Skopje routes, including Srbija Boulevard, trapping vehicles and blocking heavy trucks and tankers that normally move industrial and supply goods. North Macedonia Cabinet Reshuffle: PM Hristijan Mickoski unveiled a limited reshuffle, adding a minister without portfolio for the Democratic Party of Turks and scrapping the deputy PM post for good governance, reshaping how government responsibilities are handled. Energy Transition Focus on Active Customers: The Energy Community Regulatory Board highlights reforms needed for households and businesses in North Macedonia and the region to participate actively in electricity markets through flexibility and storage. Health Watch—West Nile Virus: Europe’s monthly update shows new WNV activity, including one human case in North Macedonia, with cases hospitalised and no deaths reported so far.

Severe Weather Disrupts Industry Logistics: A strong summer storm flooded key Skopje routes, turning Srbija Boulevard into an impassable “shallow lake” and trapping trucks and tankers that normally move industrial and supply goods, with police redirecting traffic. Energy Transition & Regulation: The Energy Community Regulatory Board pushed an agenda to help “active customers” (households and businesses generating and selling green power) participate more easily, calling for clearer rules to unlock flexibility and storage across North Macedonia and the region. Energy Infrastructure Update: A new power substation in Kamza is underway, signaling continued grid investment. Government Moves Affect Business Climate: North Macedonia’s PM Mickoski unveiled a limited cabinet reshuffle, adding the Democratic Party of Turks and abolishing the deputy PM post for good governance, while reallocating health and social policy responsibilities. Public Health Watch: West Nile virus monitoring reported three locally acquired human cases in Europe as of 24 June, including one in North Macedonia (Vardarski). Cross-Border Trade & Transport Strategy: IMEC corridor planning highlights how expanded India–Middle East–Europe logistics networks could reduce reliance on chokepoints and cut container traffic exposure to disruptions. EU Steel Safeguards: The EU halved duty-free steel quotas while granting higher allocations to 12 partners, a move aimed at limiting cheap Chinese steel impacts on European industry.

Storm & Transport Disruption: A severe summer downpour hit Skopje on July 1, flooding key roads like Srbija Boulevard and trapping commuters in major traffic jams, with police redirecting vehicles as heavy trucks and tankers added to the gridlock. Government & Coalition Update: North Macedonia’s PM Hristijan Mickoski unveiled a limited cabinet reshuffle, adding the Democratic Party of Turks with a minister without portfolio and adjusting roles after the deputy PM for good governance post was scrapped. Public Health Watch: Europe’s monthly West Nile virus update shows North Macedonia reporting one locally acquired human case (in Vardarski) as seasonal transmission patterns continue. Energy Transition Policy: The Energy Community Regulatory Board highlights the need to remove barriers for “active customers” in the region, pushing rules that enable households and firms to generate and trade green power. Local Infrastructure & Power: Plans for a new power substation in Kamza aim to modernize the grid and improve electricity stability, supported by Albanian and German cooperation. EU Trade & Industry: The EU halved duty-free steel quotas while keeping higher allocations for partners including the UK, as Brussels tries to curb cheap imports and protect domestic industry. Migration & Labor Markets: Europe-bound legal migration rose sharply as Gulf recruitment weakened, with agriculture and manufacturing among sectors drawing workers. Business & Tech: AIDLC software development is pitched as a faster, agent-first alternative to traditional sprint-based delivery, targeting regulated fintech deployments.

Government & Cabinet: North Macedonia PM Hristijan Mickoski presented a proposed new cabinet lineup after coalition talks with Vlen and ZNAM, including Sašo Klekovski as Minister of Health and changes tied to the new Ministry of Social Policy, Demography and Youth, plus shifts in local self-government and Roma inclusion responsibilities. Energy Transition: The Energy Community Regulatory Board flagged barriers to households and businesses becoming “active customers” in electricity markets, calling for clearer rules to unlock flexibility and storage across the region, including North Macedonia. AI in Public Services: A regional look at AI-powered governance highlights how Balkan administrations are experimenting with robotics and AI tools to modernize public procurement and citizen-facing services. Cybersecurity: Kaspersky reported a new malware campaign dubbed SharkLoader, targeting organizations across multiple countries including North Macedonia, with links to post-compromise tools used by Chinese-speaking developers. Trade & Industry Policy: The EU halved its duty-free steel quota while adjusting higher allocations for 12 partners, a move aimed at reducing cheap Chinese steel pressure on European industry. Regional Climate & Work Risks: A heatwave push is expected to hit the Balkans hard, with warnings for outdoor workers and vulnerable groups, including North Macedonia. Wildlife Trafficking: A Serbian eastern imperial eagle, Feliks, was rescued after being poached and illegally sold during a migration route that included North Macedonia, spotlighting cross-border illegal animal trade.

Energy Transition & Power Infrastructure: North Macedonia is moving to integrate a gigawatt-sized project pipeline, with investor interest rising as the Ministry of Energy, Mining and Mineral Resources approves dozens of solar projects totaling over 3 GW for 2026. Energy Markets & Regulation: The Energy Community’s regulator board is pushing reforms to help “active customers” in North Macedonia and the wider region generate, store and sell electricity—arguing rules must evolve to unlock flexibility and cut transition costs. Solar Buildout: A separate report highlights that approvals for new power projects in North Macedonia are accelerating sharply versus last year, pointing to faster capacity growth once the regulatory shift settles. Governance & Oversight: Skopje’s Anti-Corruption Commission is investigating the Cabinet Secretary General’s assets, keeping pressure on public-sector integrity. Cybersecurity: A new malware campaign, SharkLoader, has targeted organizations including entities linked to North Macedonia, raising fresh concerns for diplomacy, software firms and critical sectors. Business & Investment Climate: Slovenia’s central bank data shows manufacturing leading inbound FDI and notes outbound investment growth—useful context for regional capital flows that North Macedonia competes for. EU Trade Watch: The EU’s steel safeguard changes—halving duty-free quotas while adjusting rates for FTA partners—could ripple into regional construction and manufacturing supply chains. Climate & Industry Risk: Europe’s heatwave continues to disrupt energy and operations, with knock-on risks for agriculture and infrastructure planning across the region.

Energy Transition & Grid: North Macedonia is preparing to integrate a gigawatt-sized solar project pipeline, with the 2026 annual plan approving 59 solar projects totaling over 3 GW, pushing cumulative capacity past 1 GW and signaling faster build-out once regulatory momentum returns. Power Infrastructure: Albania’s Kamza is getting a new power substation aimed at higher standards and more stable electricity supply, supported by Albanian and German cooperation and tied to broader substation digitalization and rehabilitation. Energy Market Rules: The Energy Community’s regulator board says “active customers” are key to the region’s decarbonisation, but regulatory barriers still block households and businesses from fully participating in flexibility and storage markets. EU Trade & Industry: The EU has halved its duty-free steel quota while giving better rates to 12 partners, a move meant to curb cheap Chinese steel inflows and reshape how Balkan and other exporters plan production and sales. Retail & Consumer Demand: Hyprop’s Eastern Europe exposure includes North Macedonia, and the group reports strong rental reversions and low vacancies, pointing to resilient demand for retail space in the region. Cybersecurity: A new SharkLoader campaign linked to Cobalt Strike Beacon has targeted organizations including entities tied to North Macedonia, raising fresh risks for government and business IT systems. Climate Pressure: A heatwave across Europe is stressing agriculture and infrastructure, with Balkans temperatures forecast to soar and workers outdoors facing heightened health and productivity risks.

NATO Defense Push: NATO parliamentary leaders met in Istanbul calling for stronger defense capabilities, tighter alliance unity, and closer cooperation, while stressing continued support for Ukraine and respect for international law. Energy Transition & Grid Flexibility: The Energy Community’s regulator board highlights how “active customers” across North Macedonia and the region need clearer rules to unlock flexibility and storage as systems move toward 2030 decarbonisation goals. Local Energy Infrastructure: Albania’s Kamza is getting a new power substation aimed at higher standards and more stable electricity supply, with German-backed digitalisation and network upgrades. Solar Pipeline Boost: North Macedonia is preparing to integrate a gigawatt-scale solar project pipeline, with 59 solar approvals totaling over 3 GW under its 2026 plan. AI for Industry & Public Services: Skopje launched the Vezilka national AI center to connect universities, institutions, and private firms to European AI infrastructure via a EUR 6.2m, three-year Horizon Europe/EuroHPC-backed programme. Cybersecurity Risk: A SharkLoader malware campaign linked to StrikeShark is targeting victims including North Macedonia, using fake installers to deliver Cobalt Strike Beacon. Heatwave Pressure on Supply Chains: Europe’s extreme heat continues to disrupt health and infrastructure planning, with knock-on risks for agriculture and energy cooling.

Energy Transition & Grid Flexibility: The Energy Community Regulatory Board says active “prosumers” in North Macedonia and the region need clearer, more effective rules to unlock flexibility and storage as renewables scale up. Solar Pipeline Boost: North Macedonia is moving fast on new power—approvals for dozens of solar projects total over 3 GW this year, with a wider plan pointing to multi-gigawatt growth beyond the current ~1 GW installed base. AI Infrastructure for Industry: Skopje launched the Vezilka national AI center, linking universities, public institutions and private firms to EU supercomputing and data spaces under a ~EUR 6.2m, three-year Horizon Europe/EuroHPC-backed programme. Retail & Property Demand: Investor interest remains strong as Hyprop reports low vacancies and rental reversions near 10% in its Eastern Europe portfolio, including assets in North Macedonia. Cybersecurity Risk: A new SharkLoader campaign tied to Cobalt Strike Beacon has targeted organizations across multiple countries, including North Macedonia, using fake installers and known enterprise software flaws. Heat & Water Stress: Europe’s heatwave is stressing agriculture and infrastructure, while a new global map highlights where safe drinking water is still out of reach—both issues that can hit local industry and public services. Governance & Oversight: Skopje’s anti-corruption body is investigating the government secretary general’s assets, including checks involving foreign property declarations.

Heat & Agriculture: Europe’s extreme heat is stressing vineyards, pushing earlier harvest timelines and raising knock-on logistics risks for southern growers. Water Security: A new global map highlights where safe drinking water is still out of reach, with major gaps in low-income countries and uneven progress worldwide. Energy Infrastructure: North Macedonia’s solar pipeline is accelerating: the 2026 plan approved 59 solar projects totaling 3+ GW, after last year’s ~210 MW and cumulative capacity crossing 1 GW. AI for Industry & Public Services: Skopje launched the Vezilka project for a national AI center, linking universities, institutions and firms to EU AI infrastructure via Horizon Europe and EuroHPC support. Cyber Risk for Business: A SharkLoader malware campaign tied to StrikeShark is targeting organizations across multiple countries including North Macedonia, using fake installers and deploying Cobalt Strike Beacon. Governance & Oversight: Skopje’s anti-corruption body is investigating the government secretary general’s assets, including property declared abroad, as scrutiny intensifies. EU Integration Watch: The EU is considering “membership-lite” benefits for candidates, including North Macedonia, while accession talks remain bogged down. Local Development: Bitola’s former Partizan cinema is set for reconstruction into a multifunctional cultural center, aiming for completion by end-2027.

AI & Digital Infrastructure: North Macedonia officially launched the Vezilka project for a national AI center, linking the scientific community, public institutions and private sector to European AI infrastructure via a three-year EUR 6.2m plan (about half EU-funded through Horizon Europe/EuroHPC), with access through Greece’s Pharos AI Factory. Energy Buildout: North Macedonia’s solar pipeline is accelerating: the Ministry approved 59 solar projects totaling over 3 GW under the 2026 annual plan, after last year’s ~210 MW pushed cumulative capacity past 1 GW. Power & Grid Reliability (region): New power substation works are underway in Kamza, Albania, aimed at higher standards and more stable electricity supply, supported by Albanian and German cooperation. Corruption Oversight: Skopje’s Anti-Corruption Commission is investigating Government Secretary General Igor Janushev’s assets, including property declared in Skopje and claims tied to foreign holdings. Cybersecurity: A new SharkLoader malware campaign (tracked as StrikeShark) is targeting entities including North Macedonia, using fake installers to deploy Cobalt Strike Beacon. EU Industry Context: The European Commission is preparing a “membership-lite” approach for candidate countries, including North Macedonia, offering partial access to EU funding and parts of the Single Market while reforms continue. Environment & Compliance: A Bankwatch report says coal plants across the Western Balkans, including North Macedonia, repeatedly breach SO₂ limits, with 2025 emissions far above permitted levels. Real Estate (regional business signal): Investor interest in the Western Balkans remains strong, with retail and infrastructure upgrades continuing to attract capital.

AI & Digital Infrastructure: North Macedonia officially launched the Vezilka project for a national AI center, linking the scientific community, public institutions and private sector with European AI infrastructure; it runs for three years with a ~EUR 6.2m budget, half funded via EU Horizon Europe and EuroHPC, and will connect users to Greece’s Pharos AI Factory. Energy & Renewables Pipeline: North Macedonia is preparing to integrate a gigawatt-sized solar project pipeline: the 2026 plan approved 59 solar projects totaling over 3 GW, after last year’s ~210 MW brought cumulative capacity past 1 GW. Electricity Networks: Albania’s Kamza is getting a new power substation aimed at higher standards and more stable supply, with reported support from Albania and Germany and a wider digitalization and rehabilitation package. Cybersecurity: A new SharkLoader malware campaign tied to “StrikeShark” has targeted victims including government and diplomatic organizations, with confirmed activity reaching North Macedonia among other countries. Governance & Oversight: Skopje’s anti-corruption body is investigating the Government Secretary General’s assets, after media reports raised questions about foreign property declarations. EU/Regional Policy: EU candidate “membership-lite” financial benefits are being discussed, while Hungary’s block on a procedural step risks delaying Ukraine’s push to open more accession clusters.