A study visit of the Albanian delegation from the Ministry of Economy and Finance to the Ministry of Labour and Social Policy and the Ministry of Education and Science of the Former Yugoslav Republic of Macedonia took place on 29 October 2019. The topic was the exchange of experience on the development and implementation of sector budget support.

The Ministry of Labour and Social Policy and the Ministry of Education and Science of the Former Yugoslav Republic of Macedonia are considering implementing the IPA 2 allocations for 2019 through Sector Budget Support (SBS). SBS is an implementation modality strictly linked to the national priorities in a given area. More specifically, priorities and objectives of the sector reform contract in the Former Yugoslav Republic of Macedonia will be linked to the objectives and measures of the Employment and Social Reform Programme (ESRP) which is considered as an overarching strategy covering employment, education and social protection in the country.

Currently, national authorities are elaborating a programming document (Action Document) and discussing with the European Commission a Sector Reform Contract (SRC) in the Sector “Education, Employment and Social Policy”. Thus far, the Former Yugoslav Republic of Macedonia has not implemented SBS. At the same time, neighbouring economies, such as Albania, have already been implementing Sector Reform Contracts in the sector Education and Employment.

Therefore, ESAP supported this learning exchange between the representatives of the Ministry of Labour and Social Policy, Ministry of Education, Secretariat for European Affairs and Ministry of Finance in the Former Yugoslav Republic of Macedonia and the representatives of the Ministry of Economy and Finance of Albania. This was an opportunity for the experts from the Ministry of Economy and Finance of Albania to transfer relevant experience and knowledge on the particular issues of preparation and practical implementation of the sector budget support in the fields related to employment, labour market, education, skills, social protection and inclusion. Participants agreed that the design of the programme, selection of indicators, definition of the tranches and conditions, require continuous open interaction among the line institutions involved and the delegation of the EU. Further, specific institutional arrangements need to be established related to the SRC implementation with a focus on the relationship between the Ministry of Labour in charge of implementation and the Ministry of Finance which manages the budget.

This exchange of information and practice from institutions with experience in sector budget support has allowed the host authorities and other participants to better understand the challenges in the design and implementation of such a programme.

Download: EN