The United States and European Union both voiced "serious concerns" about the move by President Gjorge Ivanov, which drew hundreds of demonstrators onto the streets of Skopje yesterday evening.
The Balkan country is also on the frontline of the migrant crisis, with its use of force to prevent desperate migrants from crossing onto its territory leading to a row with neighbouring Greece.
In a televised address to the nation yesterday, Ivanov said he was bringing the legal proceedings to a halt "in order to put an end to this political crisis" ahead of elections planned for June.
The government denied the accusations and in return filed charges against SDSM leader Zoran Zaev, accusing him of "spying" and attempting to "destabilise" the country of two million people, which is hoping to join the EU.
Gruevski was among those targeted in the probes, along with Zaev, former interior minister Gordana Jankulovska and ex-intelligence chief Sasho Mijalkov.
An ally of the president, Gruevski stepped down as premier in January, paving the way for parliamentary elections -- but the opposition has announced plans to boycott the polls, saying it fears electoral fraud.
A group of protesters in Skopje pelted Ivanov's party's headquarters with eggs and calls for further protests were circulating on social networks.
Macedonia has been a candidate for EU membership since 2005 but accession talks have yet to open and the prolonged crisis will do nothing to improve its chances.
The EU voiced alarm over the dropping of the wiretap inquiry, saying it raised "serious concerns".
"We call on all sides to avoid interventions that risk undermining years of efforts within the country and with the support of the international community to strengthen the rule of law," a spokesperson for the bloc's foreign policy chief Federica Mogherini said.
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