North Macedonia is set to become the first Western Balkan country to sign a strategic partnership agreement with the United Kingdom, in a deal estimated to be worth around €6 billion.
The agreement is expected to be signed on Thursday in London by a government delegation led by Deputy Prime Minister Aleksandar Nikolovski. While details of the partnership and the financial terms remain undisclosed, both Skopje and London have denied rumors that the agreement involves hosting UK asylum seekers.
“It never even crossed our minds, and no one has asked us to do it,” Prime Minister Hristijan Mickoski told his party VMRO-DPMNE in Skopje on Sunday.
Mickoski hailed the deal as “historic,” emphasizing that access to €6 billion in favorable loans will bring a “revolution of investments” in the country, including railways, highways, hospitals, and student dormitories.
British Ambassador to Skopje, Matthew Lawson, also denied claims regarding migrant relocation, stating that cooperation in this area will instead focus on combating criminal networks and sharing intelligence.
Talks on Irregular Migration
Deputy PM Nikolovski will also meet with Dame Angela Eagle, UK Minister for Border Security and Asylum, to discuss irregular migration issues.
Ambassador Lawson called the agreement a “milestone” in bilateral relations, noting that the UK is already the second-largest investor in North Macedonia, with half of British investments in the Western Balkans located there.
The agreement was initiated during a meeting between Prime Ministers Mickoski and Keir Starmer on the sidelines of the Tirana summit on May 16.
Where Will the €6 Billion Be Invested?
The agreement aims to support infrastructure projects in healthcare, transportation, technology, energy, and digital transformation. These investments almost match the country’s annual budget of €6.5 billion.
Planned projects include:
- Reconstruction of rail corridor 10 from Tabanovce to Gevgelija (up to €2 billion)
- Construction of a Clinical Hospital, Medical Faculty, and Student Dormitory in Shtip
- Full reconstruction of Tetovo’s Clinical Hospital
- A new hospital and health center in Kičevo (€200 million total)
While the Social Democratic opposition supports the deal’s ratification, party leader Venko Filipče criticized the lack of transparency:
“It’s crucial to know all the parameters of this deal, as it involves large sums, unknown interest rates, and future debt generations will have to repay,” said Filipče.
Full Terms Expected Within a Month
Although details of the credit terms are unknown, government officials assure they will not exceed 60% of GDP debt ratio.
Deputy PM Nikolovski said that interest and repayment terms will be more favorable than any previous borrowing. He expects full details to be disclosed within a month to six weeks.
From the €6 billion total, about €2.2 billion will be accessed in the first five-year cycle, according to Finance Minister Gordana Dimitrieska-Kochoska. She added:
“€2 billion over five years equals €400 million per year — this will increase public debt but will boost economic growth through infrastructure investment.”
Deputy PM Nikolovski stated that initial funds are expected by the end of summer, with construction beginning in early October. Local companies are anticipated to participate in up to 70% of project implementation.
