APPLICATION OF PUBLIC PROCUREMENT REGULATION FOR DEFENSE NEEDS: A COMPARATIVE ANALYSIS BETWEEN THE REPUBLIC OF MACEDONIA AND THE EUROPEAN UNION

Abstract

This research paper provides an in-depth analysis of the regulatory and institutional frameworks governing public procurement for defense needs, focusing on a comparative study between the Republic of Macedonia and the European Union. The study assesses the legal harmonization, administrative capacity, and effectiveness of procurement mechanisms, particularly in the context of Macedonia’s EU accession. Based on the IMRAD methodology, the research combines normative legal analysis, document review, and evaluation of key policy changes implemented between 2022 and 2025. The Macedonian legal framework, particularly the amended Law on Public Procurement (2024), shows signs of alignment with EU Directives 2009/81/EC and 2014/24/EU, yet practical challenges remain. Through integration of electronic procurement systems, increased transparency, and procedural efficiency, Macedonia has improved its procurement environment. However, structural weaknesses such as inconsistent enforcement, lack of sector-specific secondary legislation, and limited coordination between institutions persist. The research reveals that negotiated procedures without public announcement are still overused, increasing the risk of corruption. Comparatively, EU member states utilize more robust control mechanisms and risk analysis tools, often supported by centralized procurement agencies and defense-specific monitoring bodies. The analysis of the Macedonian defense procurement landscape reveals gaps in strategic planning, insufficient human resources with specialized training, and limited market competition. The paper further emphasizes the importance of cross-border cooperation and offset arrangements, which remain underutilized in Macedonia. It concludes with recommendations for drafting a national defense procurement strategy, formalizing offset obligations, improving institutional interoperability, and enhancing transparency through digital risk assessment tools. Since Macedonia strives for EU membership, the need for legal harmonization in all sectors is essential, especially in the strategically sensitive area of defense procurement. Therefore, the comparative analysis highlights the gaps that must be addressed to align Macedonian practice with the European standards, ensuring credibility, competitiveness, and operational integrity in future joint defense projects and integration frameworks.