CAPITAL MARKET IN THE REPUBLIC OF MACEDONIA AND APPROXIMATION OF THE REGULATION IN THE STAGE OF THE CANDIDATE STATUS OF THE REPUBLIC OF MACEDONIA FOR EU MEMBERSHIP

In the 1990s, the EU activities in the financial services sector were primarily aimed at smooth transition towards the single European currency, while the financial markets were placed in the background. After the introduction of the Euro, the issues regarding the uniformity of the financial market regulations became a top priority. A consensus was reached that greater integration of the financial markets is a key process for the success of the Euro and the monetary union, as a whole. It was unanimously agreed that a single plan of activities needs to be adopted, with a timetable for commencing the process of harmonization of the regulations, having an ultimate goal - establishment of a single European Securities Market. At the end of 2005, the new Law on Securities was enacted in the Republic of Macedonia. It was developed, besides the experts from Macedonia, by experts from the USA and the EU. Despite the opinion given in the Report of the European Commission, (which did not take into account the new solutions in the Law on Securities) it is considered that this completely new text of the Law is largely harmonized with the current EU Investment Directives, and particularly with the Market Manipulation Directive, Prospectus Directive, Transparency Directive, Directive on International Financial Reporting Standards. There are only two capital market-related laws left to be revised and harmonized with the Directive on Collective Investment Undertakings (investment funds) and Directive on Taking Up, that is the Law on Investment Funds and the Law on Taking Up Joint Stock Companies. Taking into account the EU determination to take active role in the capital market regulations of the EU member candidates, it one should expect that the process of open consultations concerning the securities market regulation be launched in 2007