Distinguished citizens of the Republic of Macedonia,
Honorable President of the Assembly of the Republic of Macedonia,
Honorable President of the Government of the Republic of Macedonia,
Esteemed Members of the Parliament,
Esteemed members of the Government,
Respected members of the judiciary of the Republic of Macedonia,
Distinguished representatives of the diplomatic corps,
Respected members of the religious communities in the Republic of Macedonia,
Respected media representatives,
Your Excellencies,
Ladies and Gentlemen,

We are about to leave behind us a year that will be remembered by many ordeals and hardships at global level. In the wider region, the Middle East and the Mediterranean, there are still rampaging conflicts, unrest and discontent that produce new victims, huge material damage, as well as new waves of refugees and countless personal tragedies.

Due to the global economic, debt and financial crisis, for many people in Europe and in the world, this and the subsequent years will be years of facing difficulties, bleakness and unfulfilled dreams.

In brief, we live in an era of global change. An era in which the world we used to know is changing. The changes at global level are really economic, but the weaknesses are primarily political.This is also present in our continent. The roles of the global actors within the international community and, thus, in the region, are changing.

New economic multilateralism at global level is established. The growing economic forces bring new needs and new forms of distribution and utilization of resources. In less than two decades, the need for drinking water in the world will increase by 35%. The need for food will increase by 40%. The demand for energy will increase by 50%. These are huge changes that will result in the need of new economic development models and new cooperation models.

Life is becoming increasingly dependent on modern technology, computerization and digitalization. The characteristics of the information and communication technologies contribute to even greater changes. Both autocratic and democratic states will use and increase the power of information technology and new media.

Yet, it seems that the cyber-era contributes to completely new forms of communication by destroying myths, fears and prejudices based on intolerance and xenophobia.

Exactly in such global and regional environment, the Republic of Macedonia has been accomplishing its goals. Nevertheless, we have managed in every domain by achieving results that need to be commended. Results confirmed in the most relevant international report.

Ladies and Gentlemen,
At macro-economic level, the Republic of Macedonia in 2012 was under a great influence of the global state of play and in particular the developments in the EU, being the most important trading partner.

In such circumstances, we have shown that we know how to deal with the challenges. The Republic of Macedonia has not been struck by the fatal wave that brought doubt and uncertainty in many European countries. Although we entered the recession in the first two quarters with GDP growth of 0.2%, we were able to get out of the recession in the third quarter.

We have a low budget deficit of 2.5% of GDP, and as of November, a low level of inflation of 3.2%. The banking system in the country is stable. With reference to the public debt, with debt rate of 30.6%, the Republic of Macedonia is among the 4 lowest-indebted countries in Europe.

According to the index of economic freedom in the world for 2012, we are ranked on the 43rd place, better ranked than seven countries from our region. According to the Forbes Global Ranking for 2012, the Republic of Macedonia is ranked at the high 37th position in the world according to the category of best country for business. In the last 4 years, through the foreign investments in the Republic of Macedonia, about 1 billion and 550 million Euros have entered.

We are the world’s third best reformer.

All this demonstrates that we are better than many countries in the region, and even better than some European Union member-states. It can always be better. There is still plenty of work to do. But, let us be realistic. Even next year, the economic growth pace will be largely conditioned by the global economy recovery.

The Project for the Technological Industrial Development Zones provides results in terms of number of employed persons, production and export. Besides attracting foreign direct investments, Macedonia is committed to providing support for local businessmen and support for small and medium enterprises. I am glad that the investments in tourism give results. This year, in the period January-October, compared to the same period last year, the number of foreign tourists has increased by 8.6%. Modernization of the airports and investment in the air traffic, introducing new flights to several European and world destinations resulted in a growth in the number of air traffic passengers for 21.5%.

I congratulate the Government and the economy on the results achieved in 2012. I particularly strongly support the Government's efforts to encourage agriculture by investing 670 million euros for the period 2011-2015. Imagine such a commitment in the past decades, instead of today! By now we would have become a regional agricultural force.

Esteemed Excellencies,
In parallel with the growth and development of our urban centers, we need to revitalize the rural areas. It is unsustainable and irresponsible to import what we can produce. There are certainly conditions for this; they only need to be utilized.

One of our priorities is to ensure energy production, security and stability, infrastructure and energy connectivity. With the accession to the "South Stream", the Republic of Macedonia ensures its energy and economic future. I believe that the access to energy sources will be an additional incentive both for foreign and domestic investors.

With approximately 250 to 300 sunny days per year, the Republic of Macedonia is a country of sun. We have to use renewable energy sources, primarily sun, but also water, wind and geothermal waters, if available. Therefore, we must start using effectively and efficiently the available energy sources.

We must not forget that development and growth of economy directly depend on infrastructure connectivity. Hence, at all meetings I raise the need of connecting the Adriatic-Ionian Highway with Corridors 8 and 10. Infrastructure and connectivity are essential prerequisites for overcoming differences, bridging and economic cooperation.

Dear fellow citizens,
We all heard last week's conclusions of the European Council. There was a justified expectation in our country and outside that the several repeated positive reports of the European Commission and the recommendations for setting a date for start of negotiations, this time would be accepted. Especially due to the fact that throughout this year the Republic of Macedonia has invested much and accelerated the reform pace. Macedonia has successfully led the High-Level Pre-Accession Dialogue with the European Union.

The Assembly of the Republic of Macedonia and its working bodies, the Prime Minister, the relevant ministers, and I personally, were fully committed to the European integration process at the many meetings and in the communications that we have had in 2012. Of all the meetings and contacts that I have had, my assessment is that the position and support for Macedonia internationally is strengthened significantly.

The judgment of the International Court of Justice has changed the perception towards the Republic of Macedonia. It has ascertained in the most authoritative and most transparent manner the correctness of our policy, for which we were accused by some from outside but also from inside. Indeed, the importance of the international law has been confirmed in the final document of this year's high-level meeting at the UN General Assembly. Document that reaffirms "the obligation of all States to comply with the decisions of the International Court of Justice in cases to which they are parties". Following this judgment, the number of our supporters, friends and partners is constantly increasing. Both in Chicago and in Brussels, for those who without arguments and contrary to the international law wanted and succeeded in blocking us, from day to day, is getting harder and harder to find reasonable arguments for their conduct. They cannot indefinitely maintain the imprudent policy of blockades.

Esteemed Excellencies,
I am personally disappointed with the outcome of this year's Summit in Brussels; I believe you are too, distinguished members of the parliament, members of the government and all citizens of the Republic of Macedonia. It seems that the old, worn-out Balkan manners, Balkan interests, aspirations and divisions still persist and are imposed on the outcomes of the European Union summits.

I have repeatedly stressed the commitment of the great Jean Monnet that only enlarged and united Europe is primarily peace project. I am afraid that the postponement of the enlargement process for the Republic of Macedonia and for the region is not helping in achieving the commitments of the founders of the united Europe. I regret that they failed to send a real message. Obviously, some people do not understand the importance of this message for us, for our citizens, for our societies in the region.

My message to those who influenced such conclusions at the Council's meeting is that they are mistaken. My message to all those who did not concur and, indeed, they were a majority is: Thank you for your courage, leadership and vision. We will never forget what you have done for us.

Despite everything, not only that we remain loyal and determined to our Euro-Atlantic orientation and integration, but we will also adhere to the recommendations and intensify our efforts. We will cooperate closely with the European Commission and we will proceed with our internal reforms. Our policy has always been and will be the European policy.

We continue with the policy of openness to all. It is a policy that helps expand the horizons of our overall, and, in particular, economic, cooperation with the world. Openness to all is my highest principle in the relations with our friends and partners. Many of my visits were focused on this. In this regard, some things we should and must have done much earlier. Only this 2012, I have paid 21 visit to foreign countries and participated at multilateral and regional meetings, including the last United Nations General Assembly. In this passing year, I have had 86 meetings with heads of state and government and highest representatives of international organizations.

Ladies and Gentlemen,
This year, with dignity, we celebrated 20 years since the establishment of our Army. As a vital pillar of our independence, the Army has provided exceptional contribution to the affirmation of the Republic of Macedonia internationally. I am aware that it would not have been possible without the diligent, professional and dedicated work of many generations. As President and Supreme Commander, I can proudly state that the Army of the Republic of Macedonia was, is and will be the guarantor of the territorial integrity and sovereignty of the Republic of Macedonia. Therefore, once again, I repeat clearly: there is no room for daily politics within the Army.

Marking the 20th anniversary of the establishment of the Army, we mark 10 years of active contribution to the ISAF mission. In these 10 years, we have become one of the five countries contributing the most per capita in this mission. We will further adhere to this global partnership even after 2014. As an active participant in the ISAF, Macedonia shares the responsibilities, obligations and risks. At the same time, Macedonia expects to share the rights and benefits deriving from the membership.

Esteemed Excellencies,
As regards the talks on the name issue, I must say that, as before, we apply sincere and committed approach. We are expecting the new round of meetings with Mr. Matthew Nimetz, something that I personally discussed with Secretary-General Ban Ki-moon. On this occasion, I would like to make it clear, first to my fellow citizens and then to the international community, that a mutually acceptable solution can be reached if we are not faced with ultimatums and requirements detrimental to our national interests and identity. Everyone has a feeling of belonging and shall be free to express it. "Human dignity is inviolable. It must be respected and protected". This is written in Article 1 of the Charter of Fundamental Rights of the European Union. "All human beings are born free and equal in dignity and rights", is stipulated in Article 1 of the Universal Declaration of Human Rights.

Every citizen of every country in the neighborhood may feel as he prefers, but it is unacceptable that we are requested to feel as others prefer. I have always reacted and I will react in future when any aspect of our identity is concerned, because identity is one of those fundamental categories that one can not compromise with. It is something that no one in this world talks of, and we do not want and we will not talk of it, too. I urge stringent observance of the framework in which the talks are led, namely, the resolutions of the United Nations, the Interim Accord and the judgment of the International Court of Justice.

I repeatedly ask the most responsible in the process, the UN Secretary-General Ban Ki-moon and mediator Matthew Nimetz, to keep the process within the set frameworks. Indeed, as the Secretary-General himself said during his recent visit to the Republic of Macedonia: "I would never accept a compromise when it comes to ... the fundamental human rights and dignity ..." The assessment is that any inadequate solution can have a very adverse impact on the entire region. We hope that in the time ahead, the process will be led in a spirit of tolerance, mutual understanding and reason, something that we, as a party, have never lacked.

The Republic of Macedonia has always believed and applied in practice the stance that dialogue is indispensable, particularly in terms of good neighborly relations, which, however, are a two-way street. We must help and not obstruct each other. Blockades and obstacles are also detrimental to those that impose them, and the greatest victim is our region as a whole. We are completely open to all our neighbors. We will further strive to develop good neighborly relations. Unacceptable are all accusations of alleged irredentism and nationalism that comes from Macedonia. Because life is short, and the neighbor is eternal.

Therefore my message to you would be: let us not create false perception of the situation regarding the good neighborly relations. The real picture is that the Macedonian society has no problem with any neighboring society. What kind of a distorted prism we should look through in order to see, in this real cooperation, absence or lack of good neighborly relations? The countries from our region simply can not let the past further steal the present and the future.

Ladies and Gentlemen,
We demonstrate our continuous and strong commitment to the region in words, numerous initiatives and deeds. Now, we have successfully taken over the chairmanship of the South East European Cooperation Process. It is the oldest, authentic regional initiative, which was not imposed to us, but it emerged out of the desire of the leaders in the region to cooperate.

Simultaneously, we will host the 11th Annual Forum of the Dialogue among Civilizations, initiated by President Trajkovski, in cooperation with UNESCO and the Council of Europe, with focus on youth. Next year we will also host the Third World Conference on Dialogue among Religions and Civilizations.

I expect 2013 to be a year when the reform course continues in areas where additional progress is needed. The European Commission Report is the most important roadmap.



Ladies and Gentlemen,
This year again, the Republic of Macedonia received absurd or insulting statements by few "on duty" politicians from the neighborhood pertaining to our inter-ethnic and inter-neighborly relations. We have not succumbed to any provocations. Our people throughout the past centuries have survived much. We have acquired great wisdom, toughness and strength. Such statements for daily political use neither could nor can in the future breach the centuries-old good neighborly relations of our peoples in this region. Our ties with the neighborhood are deep, family, friendly, business, sports, cultural, spiritual ... Not a single incident of a power-hungry individual at any cost can change this. If someone thinks that such behavior can divide and disturb the citizens of the Republic of Macedonia, obviously he is not aware of the characteristics of our people as moderate and wise people.

In our region, not only in the Republic of Macedonia, there are still individuals who dream of radical ideas and myths of great countries. My response to these ideas would be the thought of one of the fathers of Europe, the great Kalergi, who 90 years ago said: "There is but one radical way to a permanent and just solution of the European frontier question, and that is: not the alternation, but the abolition, of those frontiers."

We must never allow the inter-ethnic relations in the Republic of Macedonia to be at stake. All communities in the Republic of Macedonia have lived for centuries peacefully, in the spirit of mutual cooperation and respect.

Although it has already been said, I will reiterate: With the implementation of the Ohrid Framework Agreement we have achieved a level of greater understanding, respect and tolerance. We have built a model that aims to integrate, not to assimilate. Strict adherence to the basic principles of the Ohrid Framework Agreement is needed, as well as political process which will be conducted in that framework.

Regrettably, this year we saw several unacceptable events which disturbed the citizens and which are not appropriate to what we have been building so far as a country. We witnessed several incidents, tensions and even tragic cases. The worst is that in those cases many young people were, and even today are, involved. I am personally very concerned with this because, except as President, my determination is for peace, coexistence and tolerance. I urge all those who instigate and are engaged in these offences, give serious consideration of the consequences and be aware that justice will come. No one will be unpunished.

If someone thinks that the feelings or symbols which are sacred to our citizens can be ignited with a word or a deed is really mistaken. It cannot be allowed two million citizens to be kept in fear by a few who do not think well to anyone and who are inspired by dishonest motives.

The responsibility of all key actors in promoting tolerance and inter-ethnic coexistence is obligation and responsibility of us all. Here, I do not only think of political actors, but I think of the media, religious communities, local communities, sports federations. It is not by accident that I mention the importance of sports in this field. As rare any other social activity, sports has the power to attract, mobilize and inspire individuals and communities. Sport helps us promote ideas of peace, tolerance, justice, nonviolence and solidarity.

Consequently, this year I was the patron of the project "Sport as Factor of Tolerance, Unity and Respect". Project which involved thousands of students Macedonians, Albanians, Turks, Roma, Serbs, Vlachs, Bosniaks. We were together in sports and together we visited religious temples and cultural-historical monuments. Children from Prilep, Shuto Orizari Vrapchishte, Centar, Tetovo and Staro Nagorichane sent a message which was internationally recognized. This project was awarded with a special recognition by Prince Albert II of Monaco at the International Forum "Peace and Sport" in Sochi, Russia.

Ladies and gentlemen,
This year, in this Dome, in the Parliament, among the parliamentary groups, there was prolific, sometimes tight and not always productive democratic debate.

In the new year, citizens expect more solutions and less problems. Democracy implies struggle of ideas but it fulfills its purpose only if it delivers and implements solutions to everyday problems of the citizens.

In the new year, citizens expect unity on key priorities of the Republic of Macedonia. Such a consensus exists in the reality, but in the fierceness and emotion of the political struggle sometimes we lose sight of the image we sent to the citizens, to our Diaspora, our partners from abroad and the investors. One of the key priorities is development of economy and decrease of unemployment and poverty. I commend on all efforts in this direction and I believe that they will continue with the same pace. But if we create barriers on that path and act in spite, then we are extremely irresponsible.

These days, in this Dome, there is a harsh and unproductive debate on the adoption of the Budget of the Republic of Macedonia. I have to say that this concerns the citizens. I urge that a prompt way out of this situation is found. Citizens expect this from you. The entire society, with all its needs, can not be held hostage to irresponsible behavior. If it happens that, due to the irresponsible political behavior, Macedonia suffers economic damage, how you would be able to face the citizens tomorrow and ask their confidence. When it comes to the interests of the citizens and to the undisturbed functioning of the state, then there is no room for partial interests. It really concerns all of us. The Republic of Macedonia.

Ladies and Gentlemen,
I urge the coming local elections to be at the level of the highest democratic standards, a level that has already been achieved in the past few election cycles. I am convinced that it is necessary the Parliament as a whole, and all other entities involved in this process, such as the NGOs, media and religious communities to ensure all necessary conditions.

People's real life takes place at local level. I am confident that together we will ensure that all citizen equally, justly and independently elect their respective local government – the apparatus that should serve their needs, regardless whether the needs of the citizens in Shar Planina or Veles, Mariovo or Kichevo, Strumica or Skopje or of other citizens.

Respected citizens of the Republic of Macedonia,
We all ask ourselves what the next year will bring. Leading politicians and analysts from Europe announced that the worst is already past and that the state of affairs in Europe is improving. Confidence of investors returns. Private capital flows again in the countries most affected by the crisis.

This is good news for us. The European countries are the most important economic partner of Macedonia. What is a priority for Europe must be a priority for us. And that is reducing cost, placing new products on the market, boosting export - these are the assumptions for the development of Macedonia.

In the next period, in the field of economy, we should focus on the priorities that will mark our 21st century. These are water, food, energy security, and information and communication technologies.

Those countries that have experienced strong growth started the reforms with a careful privatization, export-oriented economy and many investments in science. There was inadequate privatization, mainly import-oriented economy and almost no investment in education and science in our country. In the last years, we are investing strong efforts to remedy everything that is missed. But I think we should be even more decisive and bolder in that direction. Especially when it comes to investing in science and research.

We can not open the new door - the door of the future, with the old key. Therefore, it is necessary to work systematically and in long-terms in order to foster innovation and creation and create and educate generations with open minds who will think outside the patterns, who will innovate new solutions.

At the regular meetings I had with the best students from the universities in the Republic of Macedonia I learnt of the challenges they face. Not only the curriculum should be adjusted and enhanced, but also the manner and the model of transfer of knowledge.

Instead companies to invest additional resources in training graduates, they should acquire that kind of practical knowledge during their studies. When they have new ideas, and are willing to experiment. Therefore, I encourage all universities to start the establishment of technological parks. To establish business incubators, where students can practically apply the knowledge during their studies. Indeed, they will be prepared not only for the local but also for the global market.

We really have positive experiences in this field with the School for Young Leaders. These young people acquire knowledge and skills that will build their success. In every field, Macedonia has success stories, success examples, and successful people.

Macedonia is not just here. It is everywhere where people from Macedonia are successful. I am impressed by our young people I meet throughout the world. Despite official diplomacy, cultural, economic, military diplomacy are real promoters of our homeland.

As President of all citizens of the Republic of Macedonia, I would like to address today every citizen individually. I would like to recollect the ideal of many generations, the ideal of the united Europe without borders.

When the fathers of Europe, Jean Monnet and Robert Schuman, laid the principles of its historic building, they actually prepared the path, not only the states to be united, but all well-meaning people to be united on the continent that lived before in armed conflicts and destruction of the human ideal.

There are exactly thirty days to the great jubilee of the modern European history. Europe, in its entirety, next year will celebrate the 50th anniversary of the Treaty of the Franco-German friendship. On January 22nd, 1963, Charles de Gaulle and Konrad Adenauer signed the famous Elysee Treaty which was the foundation for the future vision of Europe of peace. This same document created the conditions for the establishment of the Youth Cooperation Foundation between the two countries.

Imagine what would have the Balkans looked like today if immediately after the end of the Cold War it had followed the Franco-German example. But it is never too late. I hope that we, the Balkan nations, will gather the strength to look into the future as France and Germany did in 1963.

In the year of marking this anniversary, we should make this inspiration concrete. Let us create a place where young people from the Balkans cooperate in all areas. Let us create future for the youth and youth for the future. Let us guide and project the future, not only expect it.

Let us build Macedonia in height. With highest standards, highest principles, highest values. In addition to this, let us be reminded of the covenant left to us by St. Clement of Ohrid – to compete in goodness.

Congratulating you the upcoming holiday season, I wish you and your family good health, happiness and prosperity.

Thank you.