Prime Minister Nikola Gruevski in a New Year's interview with the Macedonian Radio-Television, aired on Saturday evening, announced that new investments, major infrastructural projects and public sector salary, pension and social aid raise are expected next year.

"In March, pensions and social aid will be increased by 5% as a 5% increase in salaries can be expected in December," Gruevski said. He rejected claims by the opposition criticizing the 2014 budget for being 'non-developing'. The PM added that it envisages increase in expenditures for capital projects paving the way for new investments.

Tax will not be raised in 2014. "On the contrary, profit tax has been slashed from 10% to zero for its reinvestment while VAT has been reduced from 18% to 5% in several sectors," PM Gruevski stated.

He noted that a number of companies from the automotive industry have announced their investments in Macedonia, namely in Kicevo, Struga and other cities.

The Premier said financial construction for all large-scale infrastructural projects, including the motorways Skopje-Stip and Kicevo-Ohird, has been completed. "Construction works are expected to begin in mid-February with financing agreed with partners from the People's Republic of China."

Gasification, according to Gruevski, is one of the major infrastructural projects, which should be realized with funds from the debt by former USSR toward Macedonia as the rest will be provided by the European Bank of Reconstruction and Development (EBRD).

Gruevski denied accusations that Macedonia is a highly indebted country. "On the contrary, Macedonia is one of the least indebted countries i.e. it is the fourth least indebted country in Europe having a public debt of 34% of the GDP and there is no room for concern."

Referring to the economy, he said that Macedonia has the lowest business costs offering an access to hundreds of millions of consumers through the free trade treaties.

Gruevski considers the decrease in the unemployment rate from 38 to 28 percent as his biggest achievement during his tenure as prime minister 'in times when neighboring countries, Europe and the world were hit by a grave economic crisis.'

He pinpointed the delay in disbursement of payments from the budget as his biggest failure.

Speaking about the relations with DUI within the government coalition, Gruevski confirmed that there are differences over certain issues, which are being solved through dialogue.

"There are differences about many issues. We talk about them, some issues have been resolved and others haven't. We are not trying to hide the fact that there are different positions on some issues, but we meet in order to seek solutions through dialogue," the Macedonian Premier stressed.

The same principle of dialogue is being applied to overcome misunderstandings stirring inter-ethnic and inter-religious tensions. "The Ohrid Framework Agreement has met its goal - it has brought peace. The government works on its full implementation, however it is oftentimes interpreted in different ways."

"Unfortunately, we live next to each other, not with each other. Dialogue is needed in which political stakeholders will play a major role. Macedonia has no other choice but all of its citizens to live together," Gruevski noted.

Referring to criticism over the development of democracy, he said the accusations are made by officials who in the 1990s exerted severe pressure on the media.

Gruevski also denied the accusations that Macedonia has political prisoners. "There are no political prisoners in Macedonia. Those few people who are regarded as political prisoners have committed certain crimes backed with arguments and facts. It is a political manipulation on a daily basis by those who want to portray them as victims and political prisoners," stated Gruevski.

Asked about the case involving the journalist Tomislav Kezarovski, who has been jailed for revealing the identity of a protected witness, he said the court is in charge to decide upon the case. "It is unfortunate that a journalist in Macedonia is imprisoned. It is perceived differently outside the country, because no one understands the nature of this situation."

PM Gruevski dismissed as "groundless" the accusations that the people in Macedonia are being divided into traitors and patriots.

With respect to foreign policy, the Premier said Macedonia remains focused on the EU and the US while developing its relations and seeking interest for cooperation with countries such as China, Russia, Canada, Australia, Singapore...

Given the issue with Greece and the blockades imposed by the country, Gruevski said Macedonia has many allies and supporters. "However, they are powerless when it comes to persuading Athens to change its stance. The priority of these countries is the economic crisis within the EU and the eurozone. They are making efforts to urge Greece to implement the economic measures in order to pay its debts," he stressed.

The issue raised by Athens is the main reason behind the blockade of Macedonia's EU integration, according to him. "Macedonia has received a fifth consecutive recommendation to start EU negotiations without delay. Our southern neighbor is the biggest problem. We are not ideal, however the main conditions for start of negotiations have been met," Gruevski stated.

Macedonia with its other neighbors fosters favorable relations, according to him. "With Bulgaria, the issue is rather artificial, minor things are blown out of proportion. Macedonia wants good neighborly ties with Bulgaria and as a result a direct dialogue is being under way to overcome all open issues."

In connection to the upcoming presidential elections and possible presidential candidates nominated by VMRO-DPMNE, the PM said the issue will be discussed early in 2014.

"The ruling party will discuss possible VMRO-DPMNE candidates in the beginning of 2014 through party procedures and debates. VMRO-DPMNE will pick the best candidates through democratic procedures," stated Gruevski.

Asked about the possibility of organizing early parliamentary elections simultaneously with the presidential polls, Gruevski noted that the party is not focused on snap elections. "However, early parliamentary polls are not ruled out if our projects are put into question," concluded PM Nikola Gruevski in an interview with MTV.