Substantial reforms that are being made by the Republic of Macedonia in a bid to improve the business climate and to establish an image of attractive European destination were presented by Premier Nikola Gruevski before German businessmen in Munich on Wednesday.

"Recently, profound and substantial reforms have been made in the fiscal sphere. Concerning tax policy, a flat tax of 10% has been introduced, making Macedonia a country with the lowest taxes in Europe. Efforts have been made towards cutting down the administrative and regulatory burden for running a business through the regulatory guillotine project. The procedure for building has been simplified, utilities are reduced, subsidies for agricultural production are boosted... Many other reforms have been implemented that positively affect the business climate in Macedonia," the PM stated at a Macedonian-German business forum.

He added that the improved business climate and activities carried out to promote Macedonia as an attractive business destination had resulted in attracting famous foreign companies, including Johnson Controls, Johnson Matthey, TeknoHose, Kemet Electronics, Protekt Group...

"Macedonia's political and business communities have their eyes fixed on the Federal Republic of Germany. Prompt recovery of its economy is seen as one of the most important conditions to bolster Macedonia's export and to retain high rates of economic growth between 4 and 6 percent, which was achieved prior to the crisis and once again in the first half of 2011," Gruevski said highlighting that the countries' excellent economic cooperation was a result of mutual trust, Macedonia's reforms and Germany's support on the road to EU integration.

Underscoring that Germany was one of the most crucial trade partners of Macedonia, being amongst the 10 biggest investors in the country, PM Gruevski urged German businessmen to be decisive in reaching their business decisions.

Macedonian government's team introduced the potential investors with macroeconomic indicators, projects and sectors where investments are possible. German capital is expected to be invested in production of car components, ICT, agriculture, business services, pharmaceutics, energy, renewable energy sources, tourism, construction and infrastructure.

In Munich, Gruevski and his business team have met with the management of Siemens and BMW and with representatives of several German companies planning to invest in Macedonia.

German foreign direct investments up to 2010 amount to EUR 71 million, i.e. approximately three percent of the total FDIs in Macedonia, mainly through privatization and post-privatization of textile industry, metal-processing industry and transport. Germany is one of Macedonia's most significant trading partners, topping the list in 2010 with regards to bilateral trade exchange. Total exchange in 2011 amounts to US$ 1,1 billion with surplus on the Macedonian side.

Macedonia's investment opportunities will be also presented at a business forum in Dusseldorf tomorrow. PM Gruevski is accompanied by Vice Premier for European Affairs Vladimir Pesevski, Minister for Foreign Investments Vele Samak, director of Agency for Foreign Investments and Export Promotion Visar Fida, and director of the Directorate for Technological Industrial Development Zones, Viktor Mizo.