Macedonia could lose millions of euro in assistance from Europe if it does not speed up reform of its creaking administration.

Macedonia, one of Europe’s poorest countries, expects to get the green light to begin formal talks on joining the European Union by the end of this year - a move that would make it eligible for substantial funding to help it along the way to eventual membership.

But experts in Brussels and Skopje warn that unless proper systems are put in place to help Macedonia cope with an influx of pre-accession cash, the EU may hold fire on the funding altogether.

Macedonia applied to become a member of the EU in March 2004, and now counts as a potential candidate, together with Serbia and Montenegro, Bosnia and Hercegovina, and Albania.

The EU’s executive body, the European Commission, is to issue a formal opinion, known as an “avis”, on November 9 about whether membership talks should begin with Macedonia.

Announcing the move in July, EU enlargement commissioner Olli Rehn warned that as well as concerns such as political stability, progress with reforms, and efforts to curb corruption, the commission would want to see improved "administrative capacities".

If Macedonia is allowed to begin accession talks, it will be able to seek funding for institutional and other reforms that is much greater than the present financing arrangement known as Community Assistance for Reconstruction, Development and Stabilisation, CARDS.