https://www.youtube.com/watch?v=mFkYg0UkKJA

The post Economists from WEBecon Network in the podcast “Where Is the Money?” first appeared on Finance Think.

The post Economists from WEBecon Network in the podcast “Where Is the Money?” appeared first on Finance Think.

The post In an Interview for Bloomberg Adria, Blagica Petreski speaks on current fiscal issues first appeared on Finance Think.

The post In an Interview for Bloomberg Adria, Blagica Petreski speaks on current fiscal issues appeared first on Finance Think.

On January 21, the Regional Policy Debate titled “After the Energy Crisis: A Roadmap for Energy Self-Sustainability in the Western Balkans Region – Lessons Learned and the Way Forward” was held.
During the debate, we discussed how to become a more energy-resilient region, as well as the socio-economic implications of the green transition.
Stay tuned! In the coming period, we will organize another Regional Policy Debate, this time focusing on food security.
WEBecon Network SMART Balkans

The post Regional debate „After the energy crisis“ first appeared on Finance Think.

The post Regional debate „After the energy crisis“ appeared first on Finance Think.

The trainer for the session was Marjan Bojadziev, who shared critical tools and strategies for boosting productivity and managing conflicts in dynamic work environments, drawing on his expert advice and decades of experience.

#RandomizedControlledExperiment continues to be supported by the British Embassy Skopje. #WorkplaceProductivity #ProfessionalDevelopment #FinanceThink #ManagementTraining

The post 🚀 The Program for Excellence and Personal Growth (PEPG) continues to thrive with success! first appeared on Finance Think.

The post 🚀 The Program for Excellence and Personal Growth (PEPG) continues to thrive with success! appeared first on Finance Think.

In response to this inflationary pressure, the Government introduced a series of measures to mitigate the negative impacts on consumption and the living standards of the population. Between 2021 and 2024, measures included freezing the prices of certain basic products and/or limiting trade margins to prevent further price increases. A total of nine key decisions were made by December 2024, three of which targeted margin limitations, while the others focused on price controls. Some measures applied to specific food products, while others covered a broader range of food items.

The findings of the analysis show that price control measures for food had a mild aggregate effect and a strong immediate effect. During periods without such measures, the average month-on-month food inflation rate was 0.5%. Under these measures, food inflation averaged as low as -1%, indicating that food prices decreased during the intervention. Thus, the estimated effect is relatively significant. However, this effect diminishes after the first month of implementation (if the measure lasted longer than one month). This indicates that while the measures achieve their strongest expected effect on reducing food prices in the first month, the impact quickly weakens, likely due to market adjustments (e.g., rising prices of alternative products not covered by the measures).

Another finding suggests that price control measures only temporarily suppress inflation, as prices tend to increase again once the measure expires. Inflation returns almost entirely to its pre-measure dynamics, without evidence of overshooting.

Finance Think recommends that food price control measures be used only in cases of exceptionally high inflation. In all other situations, they should be replaced with structural or market-based measures, such as:

• Consistent and impartial enforcement of the Law on Unfair Trading Practices.
• Strengthening the capacity and tools of the Commission for Protection of Competition.
• Overhauling the agricultural subsidies system to increase domestic production.
• Targeted budget support for the most vulnerable segments of the population.

The post Price and margin control measures stabilize inflation only in the first month, after which it returns first appeared on Finance Think.

The post Price and margin control measures stabilize inflation only in the first month, after which it returns appeared first on Finance Think.

The post Read our latest 📖 Policy Brief 7⃣1⃣ first appeared on Finance Think.

The post Read our latest 📖 Policy Brief 7⃣1⃣ appeared first on Finance Think.

The post Our Economic Forum effectively delivered key insights on state aid management first appeared on Finance Think.

The post Our Economic Forum effectively delivered key insights on state aid management appeared first on Finance Think.

The goal of this study is to examine the types, amounts, and measures of state aid provided by the governments of the six Western Balkan countries to domestic and foreign companies, aiming to foster innovation, technological advancement, productivity, and more.

State aid in the Western Balkan countries ranges from below 0.5% of GDP in Kosovo and Albania to 5.9% of GDP in Serbia (2022 data). North Macedonia allocates state aid amounting to 1.9% of GDP or €253 million (Figure 1).

In general, all countries have numerous state aid measures targeting three segments: farmers, domestic companies, and foreign companies. To some extent, these measures are similar across the countries, especially those aimed at farmers and foreign companies operating in free economic zones. Low transparency and lack of information regarding the measures and the amounts of allocated aid are additional commonalities among the analyzed countries.

More specifically, the results show that state aid allocated to farmers accounts for more than half of the total state aid in four countries (Kosovo, Bosnia and Herzegovina, Montenegro, and North Macedonia). On the other hand, this aid cannot be linked to increased agricultural and livestock production, suggesting the need to reassess the purpose, model, and distribution methods of such aid. For example, in North Macedonia, a significant reduction in livestock production aid has been observed over the past two years, while meat production has consistently increased. Although aid for plant production support varies from year to year, vegetable production remains relatively stable.

State aid targeting domestic companies varies between countries, particularly in terms of the sectors being supported. More than half of the aid for domestic companies in Albania is directed toward manufacturing and tourism. Serbia is the only country allocating a larger portion of state aid to the development of small and medium-sized enterprises. In North Macedonia, over 90% of the aid is allocated across all sectors, with the remainder targeting manufacturing, energy, and tourism. Similar trends are observed in Bosnia and Herzegovina and Kosovo.

State aid should not function as a form of social assistance for companies. It should lead to increased productivity, innovation, competitiveness, job creation, and technological development for both the recipient company and the economy as a whole. An increased amount of state aid allocated to innovation correlates with an improved ranking of the Macedonian economy in the Global Innovation Index. The introduction of aid for new start-ups and spin-off companies is associated with an increased number of newly established companies. On the other hand, despite the continuous increase in aid for new employment, training, and employee specialization, labor productivity in the country has not improved.

All Western Balkan countries, except Kosovo, offer a wide range of attractive measures to attract and support foreign investors. The state aid scheme for foreign investors in North Macedonia is rated the most transparent, straightforward, and attractive compared to other countries. All foreign companies, regardless of location, can utilize the measures outlined in the Law on Financial Support of Investments, which, according to the analysis, account for two-thirds of state aid allocated to foreign investors. For the other analyzed countries, data on aid for foreign investors is incomplete (Serbia and Albania) or non-existent (Bosnia and Herzegovina and Montenegro), highlighting the need for increased transparency among the institutions responsible for managing and overseeing this type of aid.

The recommendations from the analysis are focused on three segments:

1. Improving regional cooperation to align state aid policies, enabling a more integrated market that can attract cross-border investments and stimulate regional development. This can be achieved through joint initiatives, sharing best practices, and creating regional funds addressing common challenges.
2. Focusing state aid on strategic sectors by promoting innovation, digitalization, and sustainability. In the future, aid should target sectors such as green technologies, renewable energy, and digital infrastructure, positioning the countries as competitive players in the global market.
3. Enhancing transparency and accountability of relevant institutions by introducing more robust mechanisms for monitoring and reporting the types and amounts of state aid allocated.

The post Transparency, Scope, and Targeting of State Aid in the Western Balkans: A Key to Growth? first appeared on Finance Think.

The post Transparency, Scope, and Targeting of State Aid in the Western Balkans: A Key to Growth? appeared first on Finance Think.

The post In a video interview for Sloboden Pechat, Blagica Petreski discusses current economic topics first appeared on Finance Think.

The post In a video interview for Sloboden Pechat, Blagica Petreski discusses current economic topics appeared first on Finance Think.