In the last few years the Former Yugoslav Republic of Macedonia has made great efforts to fulfil the requirements for EU membership and to establish structures that are in line with EU structural and cohesion policy and thus contribute to a reduction of the regional disparities within the country and the EU. These efforts of the Government together with the contribution of two consecutive programmes of the German bilateral cooperation implemented by GIZ in the period 2005-2012 have resulted in the establishment of the institutional infrastructure and the legal framework for Balanced Regional Development (BRD) in the country. In this context, the Government (namely Cabinet of the Deputy Prime Minister for Economic Affairs (CDPMEA), Deputy PM is chair of the National Regional Development Council (NCRD)) has expressed a commitment to give more support to local and regional structures and shift in the importance of the balanced regional development in the country. It has proposed an establishing of a system for more effective coordination in the field of balanced regional development. AETS has been retained by the European Commission to implement a “Technical Assistance for assessment of existing capacities and capacity building needs for social and economic cohesion” in order to ensure successful implementation of the Balanced Regional Development Policy (BRD) that meets EU requirements.