EU enlargement is a two-way process. The new member states benefit from being part of the world's largest trade bloc, with more than 500 million consumers. On the other hand, the EU benefits from expanding into new territories, accepting new cultures and connecting with new markets. Recently, this process has taken on new dimensions as the EU begins to integrate countries on its eastern borders. Many countries have had to undertake major reforms - economic, political and social - in order to meet EU membership criteria. Although these reforms bring prosperity at the national level, they also impose costly domestic investment and present challenges on the road to EU accession. In order to facilitate the accession process, the EU has created various types of assistance, both financial and technical.

The purpose of this research is to provide an objective analysis of the use of European funds by municipalities, ie to study the key challenges faced by municipalities in applying and implementing European projects and to propose measures for greater inclusion and better use of EU funds than side of the municipalities in the Republic of Macedonia.