Macedonia is a priority partner country of German Development Cooperation. Since 1993, GTZ has been supporting Macedonia on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

Under Socialist rule Macedonia was considered the poorhouse of Yugoslavia and was dependent on transfer payments from the Central Government in Belgrade. The dissolution of the Yugoslavian Federation was accompanied by international sanctions on Belgrade. The 2001 conflict between Albanian separatists and Macedonian security forces aggravated the country’s economic situation. Although the civil-war like tensions between the Slavic-Macedonian majority and Albanian communities in the north have lessened, Macedonia’s security situation remains unstable. The implementation of the Ohrid peace agreement in 2002 is crucial to the continuing democratisation and stabilisation of the country’s political landscape. A high unemployment rate of over 30 percent is placing an additional burden on Macedonia's social stability.

In the long term, Macedonia is aiming for integration into the Euro-Atlantic community. A Stabilisation and Association Agreement with the European Union (EU) was signed in April 2001. The Macedonian Government submitted an application for EU membership in March 2004.

The political instability notwithstanding, thanks to its reform efforts Macedonia has to some extent succeeded in establishing the basic framework for a competition-oriented market economy.

During the first few years after Macedonia’s independence, GTZ mainly implemented emergency aid and income creation projects. German-Macedonian cooperation focuses on the following priority areas:

In this situation, Technical Cooperation contributes towards Macedonia’s rapprochement with the EU. GTZ works with the following cooperation partners:

• KfW Entwicklungsbank (development bank)
• Capacity Building International (InWEnt)
• Centrum für internationale Migration und Entwicklung (CIM)
• European Union (EU) and other international donor organisations

GTZ maintains a coordination office that is attached to Macedonia’s Ministry of Finance in Skopje.