AGP Executive Report

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.

Antitrust & Media: Paramount Skydance has agreed to pause its $110bn Warner Bros. Discovery merger until June 1, 2027 (or until U.S. lawsuits end), after a California-led coalition won a temporary restraining order—keeping pressure on the deal’s competition and pricing claims. Public Health: Eurostat data show Albania ranks 4th in Europe for premature deaths tied to PM2.5, underscoring how air pollution remains a major Western Balkans health risk. Water Safety in North Macedonia: Valandovo imposed a ban on tap water for drinking after arsenic levels rose above WHO guidance; the water is still considered safe for industrial use and bathing while contamination sources are investigated. Ohrid Protection: UNESCO postponed adding Ohrid Region to the “in danger” list, giving North Macedonia until 2030 to meet protection recommendations, with a new progress report due in early 2027. Trade & Diplomacy: India’s President Droupadi Murmu’s first-ever visit to North Macedonia (as part of a three-nation tour) focused on doubling bilateral trade and expanding cooperation in tourism, hospitality, filmmaking, and tech. Border Infrastructure: Bulgaria–North Macedonia’s Klepalo border crossing is on track for completion by 2029, with €11m allocated and construction steps moving forward. Health Alerts: WHO and European health agencies are urging mosquito-bite prevention as West Nile virus cases rise across parts of Europe, including North Macedonia. Culture & Industry: Macedonian documentary “The Tale of Silyan/Siljan” earned two Primetime Emmy nominations, boosting visibility for local film production and global distribution.

Diplomacy & Trade: India’s President Droupadi Murmu wrapped up a three-nation European tour, with her North Macedonia stop (July 21–22) focused on doubling bilateral trade and boosting cooperation in tourism, hospitality and filmmaking, alongside talks with President Gordana Siljanovska-Davkova and the India–North Macedonia Business Forum. Water Safety: Valandovo introduced a ban on drinking tap water after arsenic levels were found about 40% above WHO guidance; the water is still considered safe for industrial use and bathing while authorities trace the contamination source. Heritage Protection: UNESCO postponed the Ohrid Region’s “World Heritage in Danger” listing, giving North Macedonia until 2030 to implement protection recommendations, including action on illegal construction and urban planning gaps. Border & Logistics Infrastructure: Bulgaria’s Klepalo (Strumyani–Berovo) border crossing is moving toward construction, with environmental procedures approved and completion expected by 2029—aimed at improving regional business access and tourism. Public Health: WHO urged prevention as West Nile virus cases rise across Europe, including locally reported infections in North Macedonia. Industry & Energy Finance: Hungary launched investigations into a €1bn Eximbank loan to North Macedonia over allegedly unusually favorable terms, raising scrutiny of cross-border state-backed financing. Weather Disruption: A severe storm hit North Macedonia, damaging cars, roofs and power lines and causing thousands of fallen trees.

Diplomacy & Trade: Indian President Droupadi Murmu wrapped up a three-nation European tour, arriving in New Delhi after stops in Moldova, North Macedonia and Romania, with a clear push to double bilateral trade and expand cooperation in agriculture, logistics, infrastructure, tourism, hospitality and filmmaking. In Skopje, she also unveiled a Mahatma Gandhi bust, reinforcing people-to-people ties. Local Water Safety: North Macedonia introduced a ban on drinking tap water in Valandovo after arsenic levels were found above WHO guidance; water is still allowed for industrial use and bathing while sources are investigated. Heritage Protection: UNESCO gave North Macedonia an extension until 2030 to prevent the Ohrid Region being listed as endangered, with a timeline and a new progress report due in early 2027. Border Infrastructure: Work is advancing on the Klepalo border crossing between Bulgaria and North Macedonia, with completion expected by 2029 and €11m allocated for the strategic investment. Energy/Finance Watch: Hungary launched investigations into a €1bn Eximbank loan to North Macedonia over alleged overly favorable terms and suspected misuse of public funds. Public Health: WHO and European health bodies urged prevention as West Nile virus cases rise across parts of Europe, including North Macedonia. Climate & Risk: Europe’s heat and wildfire risk remains elevated, with severe impacts reported across the region.

India–North Macedonia Business Push: President Droupadi Murmu wrapped up a landmark three-nation visit to Moldova, North Macedonia and Romania, becoming the first Indian head of state to visit both Moldova and North Macedonia; in Skopje she addressed the Assembly and the India–North Macedonia Business Forum, and the sides backed plans to double bilateral trade, with cooperation flagged across trade, technology, tourism, and filmmaking. Diplomatic Deal-Making: In Romania, Murmu and President Nicușor Dan agreed to double trade over three years and deepen defence and technology cooperation, with MoUs signed for science and technology, sports, and an Indian Studies chair at the University of Bucharest. Water Safety Alert: In North Macedonia, Valandovo introduced a ban on drinking tap water after arsenic levels were found above WHO guidance; industrial use and bathing remain allowed while authorities trace contamination. Heritage Under Watch: UNESCO postponed the Ohrid Region listing as endangered, giving North Macedonia until 2030 to implement recommendations, with a new progress report due in early 2027. Border Infrastructure: Bulgaria’s Klepalo border crossing with North Macedonia is on track for completion by 2029, with €11m earmarked for the strategic project and connecting roads.

Cross-border Infrastructure: Bulgaria’s Klepalo border crossing with North Macedonia is moving from paperwork to build. Environmental steps are approved and the project is expected to be completed by 2029, with €11 million earmarked to support the facility and connecting infrastructure—aimed at boosting regional business value and tourism. Public Health & Water Safety: Valandovo in North Macedonia has introduced a ban on tap water for drinking after arsenic levels were found above WHO guidance; the water is still considered suitable for industrial use and bathing while authorities trace the contamination source. Diplomacy for Trade & Industry: Indian President Droupadi Murmu wrapped up a three-nation European visit, including a first-ever Indian presidential stop in North Macedonia, with both sides agreeing to double bilateral trade and discussing cooperation in tourism, hospitality, and filmmaking—while talks in Romania also targeted trade growth and defence cooperation. Governance & Oversight: Hungary launched criminal investigations into a €1 billion Eximbank loan to North Macedonia over alleged misuse of public funds and unusually favorable terms, adding pressure to how cross-border financing is approved and monitored. Health Alerts: WHO is urging prevention as West Nile virus cases rise across Europe, including North Macedonia, with mosquito-control steps highlighted for households.

UNESCO & Heritage Protection: UNESCO postponed the Ohrid Region listing as endangered, giving North Macedonia until 2030 to meet protection recommendations, with a new progress report due in early 2027 and calls to tackle illegal construction and planning gaps. Water Safety: Valandovo introduced a ban on drinking tap water after arsenic levels were found above WHO limits; the water is still allowed for industrial use and bathing while authorities trace contamination. Border Infrastructure: Bulgaria–North Macedonia’s Klepalo crossing is on track for completion by 2029 after environmental steps and €11m funding were presented, aiming to boost regional business and tourism. Storm Damage: Severe storms hit North Macedonia, damaging cars, roofs, power lines and public buildings, with authorities reporting thousands of fallen trees and injuries. Health Alert: WHO and European health bodies warn of rising West Nile virus cases across Europe, including North Macedonia, urging mosquito-prevention steps. Trade & Jobs Diplomacy: India’s President Droupadi Murmu’s North Macedonia visit pushed trade, technology and tourism cooperation, including a push to double bilateral trade by 2030. Regional Industry Context: Serbia’s labour market shows high fixed-term work (including in agriculture and construction), while Kosovo’s trade deficit widened in June—signals of ongoing pressure on regional production and supply chains.

Water Safety & Public Health: Valandovo introduces a ban on drinking tap water after arsenic levels were found above WHO-recommended limits; the water remains OK for industrial use and bathing, while authorities point to finding the contamination source. Legal Accountability: In Gostivar, prosecutors opened an investigation into drinking-water contamination after a stomach-illness outbreak; suspects include Komunalec officials tied to pump testing that allegedly spread coliform bacteria into the supply system. Border & Infrastructure: Bulgaria–North Macedonia’s Klepalo border crossing (Strumyani–Berovo) cleared key environmental steps; construction is expected to start after permits and finish by 2029, with €11m allocated and tourism/business benefits cited. Industry & Trade Links: India and North Macedonia spotlight “three Ts” — trade, technology and tourism — during President Droupadi Murmu’s first-ever Indian head-of-state visit to Skopje, with calls to double bilateral trade by 2030 and cooperation across IT, agri, food processing, pharma, construction, textile and engineering. Climate & Disruption: A severe storm hit North Macedonia, damaging cars, roofs, power lines and public buildings, with authorities reporting thousands of fallen trees and injuries. Health Alert: WHO urges West Nile prevention as cases rise across Europe, including North Macedonia, recommending mosquito control and protection during peak mosquito hours.

India–North Macedonia Business Push: President Droupadi Murmu’s first-ever visit by an Indian head of state to Skopje focused on doubling bilateral trade by 2030, with “three Ts” — trade, technology and tourism — plus pharma, agriculture, food processing, construction, textiles and green energy. Water Safety Crisis: In Valandovo, a ban on tap drinking water was introduced after arsenic levels rose above WHO guidance; in Gostivar, prosecutors opened an investigation into drinking-water contamination after a stomach-illness outbreak. Border Infrastructure: Bulgaria–North Macedonia’s Klepalo crossing is moving ahead after environmental sign-offs, with construction expected to finish by 2029. Storm Damage: Heavy storms hit North Macedonia, with hundreds of trees uprooted, damaged cars/roofs and disruptions including at the Skopje airport. Cross-border Health Watch: Europe’s West Nile virus season is active, with locally acquired cases reported including in North Macedonia.

India-North Macedonia Business Push: President Droupadi Murmu wrapped talks in Skopje with a clear target: double bilateral trade by 2030, anchored in the “three Ts” of trade, technology and tourism, plus pharma, agriculture, AI, renewable energy and agro-processing. Water Safety Crisis: In public health, Valandovo imposed a ban on drinking tap water after arsenic levels rose above WHO guidance; meanwhile in Gostivar, prosecutors opened an investigation into drinking-water contamination after a stomach-illness outbreak, with officials and Komunalec staff arrested. Border & Infrastructure: On regional development, work on the Strumyani–Berovo border checkpoint is on schedule for completion by 2029, with EU co-financing and plans to improve access roads. Industry & Jobs Context: For labour and business climate, Serbia’s fixed-term contract share remains high, a reminder of how seasonal work patterns can shape regional hiring. Storm Impacts: Weather and infrastructure disruptions continued after severe storms hit North Macedonia, damaging cars, roofs, power lines and public buildings in Skopje. Diplomacy in the Region: Murmu’s tour continued with her arrival in Romania, focusing on expanding trade and tourism.