AGP Executive Report

Energy Infrastructure: North Macedonia’s NOMAGAS and Serbia’s Transportgas Serbia have joined the Vertical Gas Corridor, with TSOs signing an MoU in Thessaloniki to expand interconnected transmission, boost bidirectional flows, and widen cross-border capacity—an upgrade aimed at giving Skopje access to southern supply routes via Greece and LNG terminals at Revithoussa and Alexandroupolis. Energy Market Design: The government has asked MEMO to prepare a plan for setting up a natural gas market operator, covering organisational, technical, IT, legal and financial steps, with the goal of building an integrated electricity-and-gas market structure. Regional Energy Diplomacy: Greece and Balkan partners also signed an MoU to extend the corridor toward North Macedonia and Serbia, framing it as a security-of-supply and competitiveness play tied to reversing south-to-north gas flows. Public Finance & Risk: Hungary has opened a criminal investigation into Eximbank deals, including a €1bn loan to North Macedonia, after an internal audit flagged alleged irregularities such as weak collateral and high risk exposure. Digital Safety (UNICEF): UNICEF reports nearly 20 million children aged 12–17 across 21 countries faced tech-facilitated sexual exploitation or abuse in a year, with Montenegro and the Western Balkans included in the study.

Energy Infrastructure: Greece and Balkan partners signed an MoU to extend the Vertical Gas Corridor toward North Macedonia and Serbia, with NOMAGAS and Transportgas Serbia joining the initiative in Thessaloniki—aiming to boost bidirectional capacity, diversify supply routes, and strengthen regional energy security. Energy Market Reform: North Macedonia asked electricity market operator MEMO to prepare a plan to set up a natural gas market operator, covering legal, technical, IT and financial steps, as gas interconnectors with Greece (mid-2027) and Serbia (end-2028) move closer. Banking & Risk: Hungary opened a criminal investigation into Eximbank’s €1bn loan to North Macedonia, probing alleged abuse of office and mismanagement after an internal audit; documents were seized and no wrongdoing has been proven yet. Digital Economy & Connectivity: 4iG and SpaceX signed agreements for Starlink Mobile and “Sovereign Solutions” across Hungary and the Western Balkans, targeting more reliable mobile satellite connectivity and independent communications. Child Safety Online: UNICEF reported that about 20 million children aged 12–17 across 21 countries faced tech-facilitated sexual exploitation or abuse in a year, with North Macedonia among the higher-risk cases for suicidal thoughts. Diplomacy: North Macedonia’s FM Timcho Mucunski met Ukraine’s Andrii Sybiha in Kyiv, backing US-led and EU-involved diplomacy for a just, lasting peace.

Energy & Infrastructure: North Macedonia and Serbia are moving to join the Vertical Corridor, with grid operators set to sign a memorandum in Thessaloniki, following briefings at Greece’s Alexandroupolis LNG terminal—an effort aimed at diversifying supply routes for landlocked markets. Gas Market Reform: The government has asked MEMO to prepare a plan to establish a natural gas market operator, covering organisational, technical, IT, legal and financial steps, to support upcoming interconnectors with Greece (mid-2027) and Serbia (end-2028). Regional Telecom Investment: 4iG and SpaceX signed agreements for Starlink Mobile in Hungary and the Western Balkans, with next-gen V2 planned for Montenegro and North Macedonia, plus a separate “Sovereign Solutions” package for secure satellite communications. Banking/Finance Risk: Hungary opened a criminal investigation into Eximbank over alleged mismanagement, including a €1bn loan to North Macedonia, with police seizing thousands of pages from the economy ministry. Digital Safety & Social Impact: UNICEF estimates about 20 million children aged 12–17 across 21 countries faced technology-facilitated sexual exploitation or abuse in a year, with North Macedonia included in the study.

Starlink Expansion for the Western Balkans: Hungary’s 4iG Group and SpaceX signed Europe’s first deal for Starlink Mobile direct-to-device service, with initial rollout in Hungary and Albania and next-gen V2 broadband planned for Montenegro and North Macedonia (timing depends on regulators and technical conditions). Public Finance & Risk Checks: Hungary opened a criminal investigation into state Eximbank deals, including a €1bn North Macedonia loan approved in 2024 in two tranches at 3.25% interest, after an internal audit flagged alleged irregularities; police seized thousands of pages from the economy ministry. Energy Diplomacy: North Macedonia’s energy officials are set to join the 10th Southeast Europe Energy Forum in Thessaloniki, where ministers and investors will discuss energy security, affordability, transition financing, cross-border connectivity and the role of data centres. Digital Safety & Social Impact: UNICEF reported that about 20 million children aged 12–17 across 21 countries faced tech-facilitated sexual exploitation or abuse in a year, with nearly 60% of cases on mainstream social media; the study also notes very low reporting to authorities and highlights heightened mental health risks for victims.

UNICEF Digital Safety: UNICEF says about 20 million children aged 12–17 across 21 countries faced tech-facilitated sexual exploitation or abuse in a year, with nearly 60% of cases happening on mainstream social media and children in North Macedonia and Mexico reporting sharply higher risks of suicidal thoughts or behaviours. Energy Diplomacy: North Macedonia’s energy minister is set to attend the 10th Southeast Europe Energy Forum in Thessaloniki, focused on energy security, affordability and financing the next phase of the energy transition. Hungary–North Macedonia Finance Probe: Hungarian police opened a criminal investigation into Eximbank deals, including a controversial €1bn North Macedonia loan backed by a government guarantee, after an internal audit flagged alleged irregularities; police seized thousands of pages of documents. Connectivity Deal: 4iG and SpaceX signed agreements to expand Starlink Mobile in Hungary and Albania first, then bring next-gen V2 services to Montenegro and North Macedonia, with a separate secure satellite communications package planned for governments. Labour Market Pressure: North Macedonia is increasingly turning to foreign workers despite high registered unemployment, with the Employment Agency issuing thousands of opinions for permits across multiple countries and sectors like trade, manufacturing, construction and services. EU Border Rules Clash: Western Balkan truckers and carriers protested Schengen stay limits for professional drivers, warning of a regional freight blockade if the EU doesn’t address the 90-in-180 day rule.

Hungary Probe on North Macedonia Loan: Hungarian police opened a criminal investigation into a €1bn Eximbank loan to North Macedonia, after an audit flagged suspected abuse of office and mismanagement; documents were seized from the economy ministry and the case is still ongoing. Connectivity Deal for the Western Balkans: 4iG and SpaceX signed agreements to expand Starlink Mobile in Hungary and Albania first, then roll out next-gen V2 services to Montenegro and North Macedonia, with a separate secure “Sovereign Solutions” satellite communications package aimed at governments starting in 2027. Schengen Pressure on Truckers: Western Balkan professional drivers, including from North Macedonia, protested Schengen stay limits (90 days in 180) and threatened border blockades on September 14 unless rules are adjusted; the European Commission says the Entry/Exit System only automates existing limits. Foreign Labour Demand in North Macedonia: Despite nearly 90,000 registered unemployed, North Macedonia is issuing more permits for foreign workers, with the Employment Agency issuing hundreds of opinions for workers from countries such as Bangladesh, Turkey, Nepal, India and Pakistan, mainly in trade, manufacturing, accommodation/food services and construction. Defence Industry Watch: Reports say North Macedonia’s Demirovski ammunition maker is competing with Serbia’s Prvi Partizan, with the wider regional defence-production context still under scrutiny.

Schengen Pressure on Western Balkans Freight: The European Commission says it won’t change Schengen stay rules despite protests by professional truck drivers from North Macedonia and the region, who warn of a Sept. 14 freight blockade unless the 90/180-day limit is extended. Foreign Labour Debate in North Macedonia: Despite nearly 90,000 registered unemployed people, the Employment Agency issued hundreds of opinions for foreign workers (notably from Bangladesh, Turkey, Nepal and India), with demand strongest in trade, manufacturing, accommodation/food services and construction. North Macedonia–Serbia Gas Link Moves Forward: NOMAGAS signed for the design and construction of the North Macedonia–Serbia gas interconnector, a 70 km project aimed at boosting supply security and regional market access. Data Centre Investment Talks: PM Hristijan Mickoski says North Macedonia is in talks with 5–6 investors on data centre projects, including a major multinational, and argues the plans are backed by power supply plans. Hungary–North Macedonia Finance Scrutiny: Hungary’s police opened an investigation into Eximbank after an audit flagged irregularities, with a central reference to a €1bn loan tied to North Macedonia. Defence Industry Spotlight: BIRN reports Macedonian ammo producer Demirovski/ATS says it is not implicated in major scandals in Serbia, while noting ongoing legal uncertainty around related cases.

Foreign Labour Watch: North Macedonia is increasingly relying on foreign workers despite nearly 90,000 registered unemployed, with the Employment Agency issuing thousands of quota-related “opinions” for permits tied to demand in trade, manufacturing, accommodation/food services and construction. Energy Infrastructure: NOMAGAS has signed with Rapid Build for the design and construction of the 70-km North Macedonia–Serbia gas interconnector, linking near Klečovce to Serbia’s network near Vranje and positioning the country for wider regional transit, especially alongside the Greece link. Data Centres Push: PM Hristijan Mickoski says North Macedonia is in talks with 5–6 investors on data centre projects, including a major multinational, while stressing the state is not involved in at least one Pehcevo initiative and arguing the projects’ power plans are already central to global tech growth. Schengen Pressure on Transport: Truck drivers from Bosnia, Serbia, Montenegro and North Macedonia protested EU Schengen stay limits and warned of new border blockades from September 14 unless professional drivers get a workable arrangement beyond the 90/180 rule. Regional Business Climate: EU tourism remains resilient, with overnight stays up 1.7% in the first half of 2026, while North Macedonia’s labour and energy bets underline how the region is competing for investment and market access.

Labour & Migration: North Macedonia is increasingly relying on foreign workers despite nearly 90,000 registered unemployed, with the Employment Agency issuing hundreds of opinions for permits (notably for Bangladeshi, Turkish, Nepalese, Indian and Pakistani workers) across trade, manufacturing, accommodation/food and construction. Energy Infrastructure: NOMAGAS signed with Rapid Build for the North Macedonia–Serbia gas interconnector, a 70-km link (23 km in North Macedonia) aimed at boosting supply security and regional market access, with Serbia connectivity targeted as early as 2028. Data Centres & Power Planning: PM Hristijan Mickoski said North Macedonia is in talks with 5–6 investors for data centre projects, including plans tied to gas-fired power generation to support AI and tech growth. EU Border Pressure: Truck drivers from the Western Balkans, including North Macedonia, protested Schengen stay limits and warned of new border blockades from Sept. 14 unless rules are adjusted for professional drivers. Regional Business Risk: Hungary’s police seized thousands of pages from the Ministry of Economy and Energy in an Eximbank-related probe over alleged abuse of office and mismanagement tied to past state deals. EU Tourism: Eurostat reports EU overnight stays rose 1.7% in H1 2026, with foreign tourists accounting for 48.9% of stays. Culture with Economic Angle: Bitola’s Manaki Brothers Film Festival unveiled its 47th programme, highlighting industry awards and international cinematography participation.

Energy Infrastructure: North Macedonia’s gas TSO NOMAGAS signed with Rapid Build for the design and construction of the North Macedonia–Serbia gas interconnector, a 70-kilometre link expected to boost supply security and position Skopje as a regional transit hub. Regional Energy Connectivity: The two countries also signed an agreement for a 67-kilometre pipeline that could connect as early as 2028, running alongside the North Macedonia–Greece interconnector planned for 2027. Data Centres & Power Planning: PM Hristijan Mickoski said Skopje is in talks with 5–6 investors on data centre projects and pushed back on criticism, saying the plans would rely on gas-fired power generation. Transport & EU Rules: Truck drivers from Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia protested Schengen stay limits, warning of border blockades from September 14 unless professional drivers get a tailored solution. Road Building: Construction has started on a 10.5-kilometre motorway section from Skopje to the Kosovo border, with tunnels and bridges and a four-year completion target. Mining & Markets: Central Asia Metals’ H1 2026 earnings call highlighted ongoing production at its Sasa lead-zinc mine in North Macedonia and the wider base-metals portfolio. Business Climate: Morningstar DBRS ranked North Macedonia among European countries with wildfire-related residential property risk, following Greece’s higher exposure ranking. Foreign Investment Signals: Mickoski’s government also reiterated its push to attract capital into critical infrastructure, including energy and digital projects.

Energy Infrastructure: NOMAGAS signed with Rapid Build to design and build the North Macedonia–Serbia gas interconnector, a 70-km link (23 km in North Macedonia) aimed at boosting supply security and turning Skopje into a stronger regional transit player, with the project framed alongside the Greece interconnector push. Regional Energy Deal: North Macedonia and Serbia also signed a pipeline agreement in Skopje for a 67-km pipeline, targeting completion by 2027 and connectivity as early as 2028, with Mickoski calling it part of “full vertical energy connectivity” via Greece’s LNG access. Power & Data Centres: PM Hristijan Mickoski said Skopje is in talks with 5–6 investors for data centre projects, including a major multinational, while stressing the government’s view that the plans are technically sound and tied to gas-fired power generation. Transport & Trade Routes: Construction has started on a 10.5-km motorway segment from Skopje to the Kosovo border, with tunnels and bridges and a four-year timeline, linking toward Albania’s Durrës port and wider regional corridors. Demographics & Education: Education Minister Vesna Janevska reported first-grade enrolment for 2026–27 is sharply below last year’s 17,921, with expectations of continued decline and school closures in rural areas. Agribusiness: Northern Macedonian table grape harvest is underway with a record season on quality and volume, but growers warn prices are lower than expected amid heavy competition from Greece, Spain and Italy. Legal/Business Climate: North Macedonia’s appeals court upheld Nikola Gruevski’s acquittal in the “Talir 2” case, blocking seizure of the VMRO-DPMNE “White Palace” and related properties. Sports Media Rights: Cablenet expanded regional football distribution via a three-year Arena Sport deal covering North Macedonia and other Balkan markets.

Energy Connectivity: North Macedonia and Serbia signed a gas interconnector deal in Skopje for a 67-kilometre pipeline, targeting completion by 2027 and connection as early as 2028, alongside a North Macedonia–Greece link expected in 2027—aimed at diversification and turning Skopje into a more central transit corridor. Road Infrastructure: Construction has started on a 10.5-kilometre motorway from Skopje to the Kosovo border, with tunnels, viaducts and bridges, and a four-year deadline—positioned as a trade and regional integration boost toward Adriatic ports. Mining & Metals: Central Asia Metals plc reported steady production from its North Macedonia Sasa lead-zinc mine in its Q2 2026 earnings call, keeping focus on base metals and exploration. Demographics & Schools: Education Minister Vesna Janevska says first-grade enrolment for 2026-27 is already sharply down versus last year, forcing fewer classes and potential rural school closures. Legal/Business Climate: North Macedonia’s appeals court upheld Nikola Gruevski’s acquittal in the “White Palace” case, blocking confiscation of the party HQ and related properties. Agriculture Markets: Grapes harvest is strong, but grower prices are lower than expected, with competition from stone fruit and heavy imports weighing on returns.

Energy Connectivity: North Macedonia and Serbia signed a gas interconnector deal in Skopje that could link the two systems as early as 2028, with a 67-kilometre pipeline targeted for completion by 2027, alongside a separate North Macedonia–Greece link expected in 2027—aimed at boosting diversification and turning Skopje into a more central transit corridor. Road Infrastructure: Construction has started on a 10.5-kilometre motorway segment from Skopje to the Kosovo border, with tunnels, viaducts and bridges, and a four-year timeline—positioned as a key route connecting the region toward ports and wider trade links. EU Enlargement & Policy: EU enlargement commissioner Marta Kos outlined a reform plan built on transitional measures, internal EU changes, safeguards and gradual integration, with October Council discussions ahead. Demographics & Schools: Education Minister Vesna Janevska reported first-grade enrolment for 2026-27 is already sharply below last year’s level, reinforcing pressure for class reductions and rural school closures. Agribusiness: Northern Macedonian table grapes are entering harvest with a record season on quality and volume, but growers face weaker-than-expected prices amid heavy competition from Greece, Spain and Italy. Legal/Business Climate: North Macedonia’s appeals court upheld the acquittal of former PM Nikola Gruevski in the “Talir 2” case, blocking confiscation of the VMRO-DPMNE “White Palace” and related properties. Regional Trade Pressure: Western Balkan carriers plan protests in Sarajevo over EU rules limiting professional drivers’ Schengen stay, seeking a concrete Brussels solution.

Energy & Infrastructure: North Macedonia and Serbia signed a deal in Skopje for a 67-kilometre gas pipeline, targeting operation as early as 2028 (completion by 2027), alongside a separate North Macedonia–Greece interconnector expected in 2027—positioning Skopje for “vertical energy connectivity” and potential south-north transit. Road Building: Construction has started on a 10.5-kilometre motorway from Skopje to the Kosovo border, with tunnels, bridges and viaducts; the project is due to finish in four years and is framed as a key trade corridor toward Albania’s port of Durrës and onward to Serbia and Montenegro. Regional Energy Investment: Hungary’s 4iG is launching an energy division and a holding company, exploring SMR cooperation with US-based X-Energy and looking at wind and storage opportunities in North Macedonia and Montenegro. Mining & Markets: Central Asia Metals’ H1 2026 earnings call highlights its producing base-metal assets, including the Sasa underground lead-zinc mine in North Macedonia. Agribusiness: Northern Macedonian table grapes face a record harvest but weaker sales prices, with growers reporting lower-than-expected market rates amid strong competition from Greece, Spain and Italy. Demographics & Education: First-grade enrolment for 2026–27 is already sharply down versus last year, reinforcing pressure to cut classes and close small rural schools. Legal/Business Climate: North Macedonia’s appeals court confirmed the acquittal of former PM Nikola Gruevski in the “Talir 2” case tied to the VMRO-DPMNE “White Palace,” blocking confiscation of the headquarters and other frozen properties.

Energy & Infrastructure: North Macedonia and Serbia signed a deal in Skopje for a 67-kilometre gas pipeline, targeting operation as early as 2028 (with completion by 2027), alongside a separate North Macedonia–Greece interconnector expected in 2027—positioning Skopje for “full vertical energy connectivity” and possible south-north transit. Roads & Trade Routes: Construction has started on a 10.5-kilometre motorway from Skopje to the Kosovo border, due in four years, with multiple tunnels and bridges; the link is framed as a corridor to Albania’s port of Durrës and onward to Serbia and Montenegro. Business Climate & Costs: Fuel prices are rising again across the Western Balkans; Albania remains the exception, while diesel in Albania is reported about 30% above the regional average and roughly 41% higher than in North Macedonia. Demographics & Education: The 2026-27 school year is already set to start with far fewer first-graders than last year, with the government warning of class cuts and potential closures of small rural schools. Agribusiness: Northern Macedonian table grape growers report a record season in quality and volume, but weaker-than-expected prices due to heavy competition from Greece, Spain and Italy. Governance & Risk: North Macedonia’s appeals court upheld the acquittal of former PM Nikola Gruevski in the “Talir 2” case, blocking seizure of the “White Palace” and related properties.

Energy & Infrastructure: North Macedonia and Serbia signed a deal in Skopje for a 67-kilometre gas pipeline, aiming for operation by 2028 (construction through 2027), alongside the Greece link expected in 2027—moves meant to diversify supply and improve regional connectivity. Road Building: Construction has started on a 10.5-kilometre motorway from Skopje to the Kosovo border, with tunnels and bridges across hilly terrain; the project is due in four years and is positioned as a trade corridor toward Albania’s Durrës port. Politics & Courts: North Macedonia’s appeals court confirmed the acquittal of fugitive ex-PM Nikola Gruevski in the “Talir 2” case, blocking seizure of the VMRO-DPMNE “White Palace” and about 30 properties. EU & Demographics: Education Minister Vesna Janevska reported first-grade enrolment for 2026-27 is sharply down versus last year, reinforcing pressure on school closures and class reductions. Business & Trade: Grapes are in harvest, but growers warn prices are lower than expected due to heavy competition and market weakness. Foreign Policy: Skopje is pushing to deepen ties with Israel, with talks covering defense, investment, tourism, agriculture and water management, plus a possible direct flight route.