Legal and Financial Regulations to Create New Investment Opportunities in Macedonia

As a small, open economy, Macedonia continues to take active steps to attract foreign direct investment (FDI). The country has enacted legislation that not only ensures an equal footing for foreign investor‘s vis-à-vis their domestic counterparts, but also provides numerous incentives to attract such investment. The legal system in Macedonia is undergoing substantial reforms. However, it is still slow, inefficient, lacking the adequate resources, and sometimes subject to political pressures and corruption. Enforcement of the law and upholding of contracts is inconsistent and not always impartial. This paper examines the legal changes in Macedonia and its effect on FDI from the historical perspectives and forecast on strategic management changes simplifying the administrative decisions on investment. New legal and administrative regulations on investment incentives for FDI and business regulations will provide a new momentum for the economic development of this EU candidate state