AGP Executive Report

Aviation & Connectivity: Wizz Air opened a new base at Palermo Falcone Borsellino with two Airbus A321neos, already adding a third from 6 September and launching six more routes—Rome, Barcelona, Prague, Marrakech, Dortmund and Pisa—signaling stronger-than-expected demand for regional links. Energy & Industry Costs: A new Energy Community Secretariat report says electricity exported from Albania to the EU is treated as zero-emission under CBAM, while North Macedonia’s default carbon cost is estimated at about EUR 66.773 per MWh—an immediate competitiveness signal for regional power trade. Infrastructure & Cross-Border Works: Bulgaria and North Macedonia held the first joint committee meeting for the Corridor 8 cross-border railway tunnel, agreeing rules and a preliminary timetable while discussing financing options with EU lenders. Digital Payments: Israeli fintech Nayax launched its full cashless payment suite in North Macedonia, targeting unattended retail like vending, laundromats, EV charging and kiosks. EU Integration & Geopolitics: A European Parliament report warns Russia is using tailored hybrid interference to slow EU enlargement, explicitly naming North Macedonia among the focus countries. Environment & Agriculture: A €3.07m Interreg project starts to protect and sustainably manage Lake Doirani, building cross-border governance between Greek and North Macedonian authorities. Labour & Migration: Croatia’s work-permit security screening is back in the spotlight after a court case involving a denied permit, as the country relies more on foreign workers across tourism and construction. Regional Cooperation: Serbian PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, highlighting transport, energy connectivity, agriculture and tourism as priority areas.

Energy & Trade: Albania’s hydropower-based electricity exports to the EU are set to face zero CBAM costs, while North Macedonia’s default carbon cost is reported at about EUR 66.8 per MWh—an advantage that could shape regional power pricing. Infrastructure & Transport: Bulgaria and North Macedonia launched the joint committee for a cross-border railway tunnel under Corridor 8, agreeing rules and a preliminary timetable while discussing financing options. Regional Business & Investment: Serbia’s PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, flagging transport, energy connectivity, agriculture and tourism as key growth areas. Digital Payments: Israeli fintech Nayax rolled out its cashless payment suite in North Macedonia, targeting unattended retail like vending, laundromats, EV charging and kiosks. Local Energy Security: North Macedonia’s gasification push moves closer as the Greece interconnector nears completion, enabling phased expansion of the domestic gas distribution network. Labour & Mobility: A court case in Croatia renewed debate on security screening for foreign work permits, with thousands of permits issued and a small share refused. Culture & Media: Macedonian director Milcho Manchevski’s documentary “Good People” will premiere at the Sarajevo Film Festival, spotlighting the aftermath of a nightclub fire in North Macedonia.

Energy & Trade: A new Energy Community Secretariat report says Albania’s electricity exports to the EU get a default CBAM emission factor of zero, thanks to a hydropower-heavy mix—while North Macedonia’s calculated carbon cost is listed at about EUR 66.773 per MWh, putting regional exporters under very different carbon pricing. Infrastructure & Energy Security: North Macedonia’s gasification push moves forward as the Greece interconnector nears completion, aiming to diversify supply and enable phased expansion of the domestic gas distribution network. Transport Connectivity: Bulgaria and North Macedonia launched the joint committee for a cross-border railway tunnel under Corridor 8, setting rules and a preliminary timetable and discussing financing options. Payments & Retail Tech: Nayax has launched its cashless payment suite in North Macedonia, targeting unattended commerce like vending, parking, EV charging and self-service kiosks. Regional Business & Government: Serbian PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, flagging transport, energy connectivity, agriculture and tourism as key growth areas. Environment: Wildfire data show parts of Europe facing their worst season in years, while the Balkans—including North Macedonia—sit below historical wildfire medians.

Balkan Infrastructure & Energy: Serbia’s PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, with both sides pointing to transport links, energy connectivity, agriculture and tourism as the biggest growth levers; the talks also covered rail upgrades tied to the Serbia–Greece corridor and plans for a gas interconnector. Gasification Push: 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. Payments Modernization: Nayax launched its full cashless payment suite in North Macedonia, targeting unattended retail like vending, laundromats, EV charging and kiosks, and adding merchant tools for sales monitoring and loyalty management. Cross-Border Rail Planning: Bulgaria and North Macedonia held the first joint committee meeting for the Corridor 8 cross-border railway tunnel, setting procedural rules and a preliminary timetable while discussing financing options. Labour & Security Screening: A Croatia work-permit case has reignited debate over security checks for foreign workers, as the country continues relying on foreign labour in tourism, construction and hospitality. Aviation Demand Watch: Europe’s airport passenger growth slowed sharply in Q2 2026 amid Middle East disruptions and higher jet fuel prices, with domestic traffic outperforming international. Local Environment: Lake Ohrid avoided UNESCO’s Danger List again, but experts warn illegal construction, wastewater and shoreline damage remain serious risks. Digital Finance Event: Singapore’s BFSI IT Summit Singapore 2026 will bring 150+ CIOs/CTOs/CISOs to discuss AI, trust and transformation in financial services.

North Macedonia Energy & Industry: The gasification push gets a boost as North Macedonia’s Greece interconnector nears completion, paving the way for phased gasification and a wider domestic gas distribution network. Regional Infrastructure: Bulgaria and North Macedonia kick off the joint committee work for a cross-border railway tunnel under Corridor 8, setting rules and a preliminary timetable while discussing financing options. Bilateral Business & Energy Links: Serbia’s PM Djuro Macut meets North Macedonia’s Hristijan Mickoski in Ohrid, with transport, energy connectivity, agriculture and tourism flagged as top cooperation areas, including rail upgrades and gas interconnector plans. Payments & Retail Modernization: Nayax launches its full cashless payment suite in North Macedonia, targeting unattended commerce like vending, parking and EV charging with card acceptance plus merchant tools. Monetary Policy: North Macedonia’s central bank keeps the key interest rate at 4.25% as inflation cools but external risks from geopolitics and energy prices remain. Environment & Risk: Europe’s wildfire season is worsening amid a strengthening El Niño, while the Balkans—including North Macedonia—are currently below their historical wildfire median.

Bilateral Industry & Energy: Serbia’s PM Djuro Macut met North Macedonia’s PM Hristijan Mickoski in Ohrid, with both sides pointing to transport links, energy connectivity, agriculture and tourism as the biggest growth areas, including plans for a Serbia–Greece rail upgrade and a gas interconnector. Cross-Border Infrastructure: Bulgaria and North Macedonia advanced the Corridor 8 cross-border railway tunnel by launching the joint committee in Sofia, setting rules and a preliminary timetable while discussing financing with EU institutions. Energy Transition: North Macedonia’s gasification push moved closer to reality as the Greece interconnector nears completion, paving the way for a diversified gas supply and phased expansion of the domestic distribution network. Payments & Retail Tech: Nayax launched its cashless payment suite in North Macedonia, targeting unattended commerce like vending, parking and EV charging with card acceptance plus merchant tools. Local Business Climate: The central bank kept North Macedonia’s key interest rate at 4.25%, citing easing inflation but warning that geopolitical and energy-price risks remain. Aviation & Trade Links: Athens Airport posted strong first-half passenger growth, while European airport traffic growth slowed in Q2 amid geopolitical tensions and higher jet fuel costs. Labor & Security Screening: Croatia issued 56,662 work permits in the Dubrovnik-Neretva region since 2021, but a new court case highlights how security checks tied to social media can affect foreign worker approvals.

Work Permits & Security Screening: Croatia’s Dubrovnik-Neretva police say 56,662 residence and work permits were issued in the county from 2021 to July 28, 2026, while 742 were refused—after a Korčula court case renewed debate over security checks that reportedly used social media content. Regional Infrastructure & Energy: Serbia’s PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, flagging transport, rail upgrades, energy connectivity, agriculture and tourism; the same visit included Mining/Energy Minister Dubravka Djedovic Handanovic saying NIS may get a new OFAC licence. Cross-Border Rail Tunnel (Corridor 8): Bulgaria and North Macedonia launched the joint committee for a cross-border railway tunnel, adopting rules and a timetable and discussing financing. Gasification Push: North Macedonia’s Greece interconnector is nearing completion, expected next year, to diversify gas supply and enable phased gasification via a distribution network. Cashless Payments: Nayax launched its cashless payment suite in North Macedonia, targeting unattended retail like vending, kiosks, parking and EV charging. Aviation Demand Watch: Europe’s airport passenger growth slowed in Q2 amid Middle East disruptions and higher jet fuel prices, with Athens among top mega-airport performers. Monetary Policy: North Macedonia kept its key interest rate unchanged at 4.25% as inflation eases but external risks remain.

Bilateral Infrastructure & Energy: Serbian PM Djuro Macut met North Macedonia’s PM Hristijan Mickoski in Ohrid, flagging transport, rail upgrades toward Greece, energy connectivity, agriculture and tourism as the biggest growth levers. Cross-Border Rail (Corridor 8): Bulgaria and North Macedonia launched the joint committee work in Sofia for a cross-border railway tunnel under Corridor 8, agreeing rules and a preliminary timetable while discussing financing with EU-linked institutions. Gasification Push: North Macedonia’s Greece interconnector is nearing completion, setting up a more diversified gas supply and phased expansion of the domestic distribution network. Payments Modernization: Nayax rolled out its cashless payment suite in North Macedonia, targeting unattended retail like vending, parking and EV charging. Local Industry & Finance: The National Bank kept North Macedonia’s key interest rate at 4.25% as inflation cools but external risks from geopolitics and energy prices remain. Aviation & Mobility: ACI Europe reported European airport passenger growth slowed sharply in Q2 2026 amid geopolitical disruptions. Culture with Industry Impact: Ohrid’s Beach Film Festival crowned Czech/Slovak coproduction “Broken Voices” and also recognized Macedonian student work.

Serbia–North Macedonia Infrastructure Push: Prime Ministers Djuro Macut and Hristijan Mickoski met in Ohrid, with both sides flagging transport links, energy connectivity, agriculture and tourism as top priorities, and pointing to major rail upgrades between Serbia and Greece that will reshape North Macedonia’s rail corridor. Energy & Sanctions Watch: Serbian Energy Minister Dubravka Djedovic Handanovic said there are indications NIS may receive a new OFAC operating licence, a move that would affect crude planning and refinery operations. Gasification Milestone: North Macedonia’s gas interconnector with Greece is nearing completion, expected next year, setting up phased gasification and a broader distribution network. Cross-Border Rail Planning: Bulgaria and North Macedonia launched joint committee work in Sofia on a Corridor 8 cross-border railway tunnel, agreeing rules of procedure, a preliminary timetable and financing options. Payments Modernization: Nayax launched its cashless payment suite in North Macedonia, targeting unattended retail like vending, EV charging, parking and self-service kiosks. Monetary Policy: North Macedonia’s central bank kept the key interest rate unchanged at 4.25% as inflation eases but external risks and energy prices remain. EU/Regional Environment: Lake Ohrid avoided UNESCO Danger List placement, but experts warn illegal construction and wastewater gaps still threaten the site. Industry Growth & Jobs: FitActive opened its 181st club in Skopje and targets 250–280 clubs across its network, including North Macedonia.

Rail Infrastructure: Bulgaria and North Macedonia kicked off joint committee work in Sofia on a cross-border railway tunnel under Corridor 8, adopting rules of procedure, a preliminary timetable, and discussing financing with the EIB/EBRD in view. Energy & Industry: North Macedonia’s gasification push moves closer to reality as the Greece interconnector nears completion, enabling a more diversified gas entry point and phased expansion of the domestic distribution network. EU Integration & Connectivity: Austria’s S3 presidency set priorities for Western Balkan EU enlargement, energy security, transport links, digitalization, and cutting bureaucracy—aimed at accelerating regional convergence. Monetary Policy: North Macedonia’s central bank kept its key interest rate unchanged at 4.25% as inflation cools, while warning that geopolitical and energy risks remain. Environment & Construction: Lake Ohrid avoids UNESCO’s Danger List for now, but both countries get a five-year deadline to tackle illegal construction, wastewater gaps, and shoreline damage. Business Expansion: FitActive says it is targeting 250–280 clubs across Europe and beyond, with its Skopje site among the latest openings. Aviation: Europe’s airport passenger growth slowed in H1 2026 as geopolitical tensions disrupted routes and airlines adjusted capacity. Legal/Local: A Kočani court hearing in the Iva Mihaylova case continues amid conflicting traffic documents and testimony. Culture & Media: North Macedonia’s documentary “The Tale of Silyan / Siljan” earned two Primetime Emmy nominations, reinforcing the country’s film production footprint.

Cross-Border Rail (Corridor 8): Bulgaria and North Macedonia held the inaugural Joint Committee meeting in Sofia to advance a cross-border railway tunnel under Corridor 8, adopting rules of procedure, a preliminary timetable, and discussing financing options with the EIB and EBRD in view. Energy & Gasification: North Macedonia’s gas interconnector with Greece is nearing completion, expected next year, to diversify supply, reduce dependence on a single route, and enable phased expansion of the domestic gas distribution network. Monetary Policy: The National Bank of North Macedonia kept the key interest rate unchanged at 4.25% as inflation cools to 3.4% in June, while warning that geopolitical and energy-price risks remain. UNESCO Ohrid Update: The Ohrid region avoided being listed as World Heritage in Danger, but North Macedonia and Albania were given until 2030 to implement protection measures, with a new progress report due in early 2027. Aviation & Connectivity: European airport passenger growth slowed in 2026’s second quarter amid Middle East disruptions, while a separate report highlights how major hubs like Istanbul, Paris CDG and Amsterdam Schiphol lead Europe in direct connections. Business Expansion (Fitness): FitActive says it is targeting up to 280 clubs in Italy and notes its presence already includes North Macedonia, where it opened its 181st club in Skopje in April. Diplomacy for Trade: India’s President Droupadi Murmu visited North Macedonia and agreed to double bilateral trade, including cooperation in tourism, hospitality and filmmaking, alongside an India–North Macedonia Business Forum.

Energy Security: Romania’s energy shift highlights Europe’s new vulnerability: gas storage is only ~55% full, LNG imports are weaker as Asian buyers return, and any Black Sea or shipping disruption could quickly hit prices—an issue that matters for North Macedonia’s supply planning. Gasification & Infrastructure: North Macedonia’s gasification push moves forward as the Greece interconnector nears completion, expected to enable phased expansion of the domestic gas distribution network and more diversified supply. Monetary Policy: The National Bank of North Macedonia kept the key interest rate unchanged at 4.25% as inflation cools to 3.4% in June, while warning that energy and geopolitical risks still cloud the outlook. UNESCO & Environment: The Ohrid region avoided the UNESCO Danger List, but got a five-year deadline to tackle illegal construction, uncontrolled urban growth, shoreline damage, and wastewater gaps. Air Quality: Eurostat ranks Albania among Europe’s worst for PM2.5-related premature deaths, underscoring the wider Western Balkans public-health pressure that also affects regional industry and transport. Business Expansion: FitActive says it is targeting 250–280 clubs in Italy and lists its presence across Europe including North Macedonia, where it opened its 181st club in Skopje in April. Diplomacy for Trade: President Droupadi Murmu’s visit to North Macedonia focused on doubling trade and boosting cooperation in tourism, hospitality, and filmmaking, with a business forum in Skopje.

Energy Infrastructure: North Macedonia’s gasification drive gets a boost as the Greece interconnector nears completion, paving the way for a new gas entry point, less dependence on a single supply route, and phased expansion of the domestic gas distribution network with private investors enabled under a new, EU-harmonised Energy Law. Monetary Policy: The National Bank of North Macedonia kept the key interest rate unchanged at 4.25% as inflation cools to 3.4% in June, while warning that energy and external risks from geopolitics and the Ukraine war still keep pressure on prices. UNESCO & Environment: The Ohrid region narrowly avoids the UNESCO Danger List, but experts say illegal construction, uncontrolled urban growth, shoreline damage, weak wastewater management, and ecosystem protection gaps remain—UNESCO has set a five-year implementation deadline. Business & Connectivity: TAV Airports reported first-half growth, with Antalya Airport ramp-up lifting consolidated revenue to €867.3m and highlighting continued strong performance at TAV’s North Macedonia airport. Cross-border Trade Links: Hungary has launched an investigation into a €1bn Eximbank loan to North Macedonia over unusually favourable terms, including a 3.25% interest rate and full state guarantee. Public Health: WHO Europe urges prevention as West Nile virus cases rise across the region, stressing mosquito control and protection measures. Industry Growth: FitActive says it is targeting 250–280 clubs in Italy while expanding across Europe, including its Skopje opening in April. Culture & Media: North Macedonia’s documentary “The Tale of Silyan / Siljan” earned two Primetime Emmy nominations, with worldwide distribution rights secured by National Geographic Documentary Films.

Aviation & Retail: TAV Airports (incl. North Macedonia) reported H1 growth: consolidated revenue up 5% to €867.3m, EBITDA up 3% to €245m, and net profit at €8m; duty-free spend per head rose 20% to €9.70 and food & beverage revenue climbed 20% to €111.8m, supported by new Antalya airside commercial space. Monetary Policy: North Macedonia’s central bank kept the key interest rate unchanged at 4.25% as inflation eases to 3.4% in June, while warning about external risks from geopolitics and energy prices. Heritage & Environment: UNESCO postponed adding the Ohrid region to the World Heritage in Danger list, giving North Macedonia and Albania until 2030 to implement protection measures; illegal construction, wastewater and shoreline damage remain key threats. Water Safety: A drinking tap-water ban was introduced in Valandovo after arsenic levels exceeded WHO guidance; water is still allowed for industrial use and bathing. Cross-Border Infrastructure: Bulgaria and North Macedonia’s Klepalo border crossing is on track for completion by 2029 after environmental procedures were approved; €11m is earmarked for the project. Health Alert: WHO urged prevention as West Nile virus cases rise across Europe, including North Macedonia, stressing mosquito control and protection outdoors. Trade & Diplomacy: India’s President Droupadi Murmu completed a landmark visit to North Macedonia (first by an Indian head of state) and pushed plans to double bilateral trade, with focus on tourism, hospitality and filmmaking. Investment & Governance: Hungary launched an investigation into a €1bn Eximbank loan to North Macedonia over alleged overly favorable terms and potential misuse of public funds.

UNESCO Watch: Lake Ohrid stays off UNESCO’s Danger List, but Albania and North Macedonia get a five-year deadline to tackle illegal construction, shoreline damage, and weak wastewater management. Monetary Policy: North Macedonia’s central bank holds the key interest rate at 4.25% as inflation cools to 3.4% in June, while warning that energy prices and geopolitical risks could still push costs up. Water Safety: Valandovo imposes a ban on tap water for drinking after arsenic levels exceed WHO guidance; the water is OK for industrial use and bathing, but long-term consumption is flagged. Border & Logistics: Bulgaria–North Macedonia’s Klepalo crossing is moving forward after environmental approvals, with construction expected to finish by 2029 and €11m allocated. Business & Investment Ties: India’s President Droupadi Murmu makes a first-ever visit to North Macedonia, pushing trade doubling and cooperation in tourism, technology, and filmmaking. EU Health & Environment: WHO urges West Nile prevention as cases rise across Europe, including North Macedonia.

Water Safety Alert: Valandovo in North Macedonia has imposed a ban on drinking tap water after arsenic levels were found about 40% above WHO guidance, with authorities urging residents to use it only for industrial purposes until new tests. Public Health Watch: West Nile virus is spreading across parts of Europe, with locally transmitted cases reported in Greece, Italy, Spain, Romania and North Macedonia, prompting WHO Europe prevention advice. Border & Infrastructure: Bulgaria–North Macedonia’s Klepalo border crossing is on track for completion by 2029 after environmental procedures and €11m funding were presented, aiming to boost regional business and tourism. Trade & Diplomacy: India’s President Droupadi Murmu wrapped up a three-country European tour that included a first-ever visit to North Macedonia, where both sides agreed to double bilateral trade and discussed cooperation in tourism, hospitality, filmmaking and tech. Energy Finance Scrutiny: Hungary has launched investigations into a €1bn Eximbank loan to North Macedonia over alleged overly favorable terms and possible misuse of public funds. Industry Expansion: FitActive says it is targeting 250–280 clubs in Italy and notes its presence already includes Skopje, with plans continuing across Europe.