Thewesternbalkans
According to the documents of the European Commission, the 2024 reports are presented in a renewed format and structure. The main findings of the report for Montenegro are as follow:
“To date, 33 negotiating chapters have been opened, of which three have been provisionally closed. Montenegro continued to broadly implement the Stabilisation and Association Agreement (SAA) and meetings of the joint bodies under the agreement took place at regular intervals.”
Overall, the government accelerated preparations on EU accession and worked effectively, in particular on meeting the requirements stemming from the interim benchmarks of chapters 23 and 24.
The political commitment of the Montenegrin authorities to the strategic goal of European integration has been consistently stated as the key priority for the country and staying firm on EU strategic orientation remains key. Since its formation in October 2023, the government has been operating in a generally stable political environment, with less polarisation compared to recent years.
However, the country and its institutions are fragile and vulnerable to political crisis and potential institutional blockages. No nationwide elections took place; local elections were held in five municipalities. Overall, the electoral framework requires a comprehensive revision. The parliament elected in June 2023 held its first session at the end of October 2023 and has generally been operating regularly, largely with consensus on key EU related reforms.”
Montenegro has actively engaged in implementing the new Growth Plan for the Western Balkans across its four pillars: gradual integration with the EU’s Single Market, regional economic integration, fundamental reforms and increased financial support.
The assessment Commission is that significant efforts have been made on gradual integration. On 26 September 2024 Montenegro adopted its Reform Agenda, as envisaged under the Reform and Growth Facility.
The main findings of the Commission report are described in 6 clusters:
CLUSTER 1: The fundamentals of the accession process. Democracy. The conduct of the elections is mostly satisfactory but the legal framework requires a comprehensive reform and alignment with EU law of the election legislation, voting and candidacy rights restrictions, transparency, mechanisms of dispute resolution, and oversight of campaign finance and media. The majority of pending OSCE/ODIHR recommendations have not been addressed. Montenegro should further strive to align its electoral processes to highest democratic standards.
Parliament can exercise its powers in a mostly satisfactory way. Montenegro has put in place a revised set of institutional structures that have been delivering adequately on the integration process. The coordinating role of the Ministry of European Affairs should be strengthened, and additional resources and expertise added.
The government has been holding regular sessions. However, recurring internal rifts between certain ministers and the Prime Minister have undermined the government’s cohesion and overall effectiveness.
Civil society organisations (CSOs) in Montenegro operate in an enabling environment. The main legal and institutional framework for civil society to operate freely is in place.
Public administration reform. Montenegro is moderately prepared in this area. Overall, limited progress was made. Some measures were taken to improve the capital investment planning and management, notably by setting up a Public Investments Council, but more effort is needed to improve the public investment management framework.
In Judiciary and fundamental rights, fight against corruption, as well as functioning of the judiciary, Montenegro remains moderately prepared to apply the EU acquis and European standards in this area and has made good progress overall. Good progress was achieved as regards justice reform, the fight against corruption, and freedom of expression and media freedom, with substantial reforms to the legislative and strategic frameworks.
Fundamental rights. The legislative and institutional framework on fundamental rights is largely in place and Montenegro continues to largely meet its international obligations on human rights. However, more effort is needed to fully implement this framework and to ensure access to justice and enforcement of rights in administrative and judicial proceedings, in particular for vulnerable groups.
Freedom of expression. Montenegro has a pluralistic media environment and is between having some level of preparation and moderate level of preparation in the area of freedom of expression. Overall, good progress was achieved in the reporting period, notably with the adoption a media legislative package.
Justice, freedom and security. Montenegro has between a moderate and a good level of preparation in the area of justice, freedom and security. Montenegro has made good progress combating organised crime and on the management of migration and asylum.
Fight against organised crime. Montenegro is moderately prepared in the fight against organised crime. Good progress was made with the adopted legislative amendments in the areas of money laundering and trafficking in human beings.
ECONOMIC CRITERIA
The existence of a functioning market economy. Montenegro has made some progress and is moderately prepared in developing a functioning market economy. Strong economic growth and one-off revenues supported a small budget surplus in 2023, but fiscal vulnerabilities remain given high public financing needs, elevated interest rates and persistent social spending pressures. The labour market situation improved, but structural problems persist. The banking sector remained well capitalised and liquid. Some progress was made in improving the business environment and preparing the reform of state-owned enterprises (SOEs).
Public procurement. Montenegro has between a moderate and a good level of preparation in this area. Some progress was achieved in 2023 in further improving the functioning of the electronic procurement system.
Statistics. Montenegro is moderately prepared in the area of statistics. Overall, some progress was made. In particular, the enumeration and data processing phases of the national population and housing census were completed. Measures were taken to reinforce the Statistical Office of Montenegro (MONSTAT), but challenges remain with human resources and infrastructure. The Commission’s recommendations from last year were partially implemented and remain mostly valid.
Financial control. Montenegro is moderately prepared in the area of financial control. Overall, limited progress was made. Some effort was made to strengthen the centralised budget inspection function at the Ministry of Finance. The delegation of authority in the field of financial management and internal control remains limited.
CLUSTER 2: INTERNAL MARKET
Free movement of goods. Montenegro is moderately prepared as regards the free movement of goods. Some progress was made on alignment with the EU acquis on chemicals, medicines for human and veterinary use, medical devices and on construction products, and on improving the capacity of the bodies working on the EU chemicals acquis.
Freedom of movement for workers. Montenegro has some level of preparation. Limited progress was made related to the conclusion of bilateral social security agreements. Initial steps were also taken to upgrade the administrative and technical capacity of the Employment Agency.
Right of establishment and freedom to provide services. Montenegro is moderately prepared in this area. Limited progress was made by adopting a new strategy for developing the postal services in 2024-2028, and in the area of services by establishing the Point of Single contact portal.
Free movement of capital. Montenegro is moderately prepared in this area. Some progress was made mainly related to the adoption of the new Law on the prevention of money laundering and terrorist financing, amendments to the Law on games of chance and the adoption of secondary legislation on payment systems.
Company law. Montenegro has good level of preparation in the area of company law.
Intellectual property law. Montenegro is between having a good level of preparation and being well advanced in the area of intellectual property law. Very good progress was made during the reporting period in aligning national legislation with the EU acquis namely by adopting amendments to the Law on copyright and related rights and through the adoption of the Law on ratification of the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications.
Competition policy. Montenegro is moderately prepared in this area. No progress was made on last year’s recommendations. A decision on the prohibition of cartel practices was taken and secondary legislation on State aid was adopted.
Financial services. Montenegro is moderately prepared in the area of financial services. Limited progress was achieved, with some secondary legislation acts adopted by the central bank, while work continued on several legal acts on banking, insurance and capital markets.
Consumer and health protection. Montenegro is moderately prepared in the area of consumer and health protection. Some progress was made by strengthening the national Consumer Protection Council, by further alignment with the EU acquis on communicable diseases and the adoption of 2023-2027 healthcare development strategy and 2023-2024 action plan.
CLUSTER 3: Competitiveness and inclusive growth. Digital transformation and media. Montenegro has a good level of preparation in the area of digital transformation and media. Very good progress was made, with the adoption of the Law on audio-media visual services as part of a comprehensive media reform package and the adoption of the Law on electronic communication aligning with the European Electronic Communications Code.
Taxation. Montenegro is moderately prepared in the area of taxation. Overall, limited progress was made, mainly on further aligning the legislation on excise taxes and VAT and corporate income tax with the EUacquis.
Montenegro is moderately prepared and has made some progressin the area of economicand monetary policy. The implementation of the action plan for alignment with the EU acquis advanced.
Social policy and employment. Montenegro has some level of preparation in this area. Some progress was made, in particular on work towards the legislative alignment of the labour law and on anti-discrimination, as well as advancing the reform of the Employment Agency.
Enterprise and industrial policy. Montenegro achieved a good level of preparation in this area. Good progress was made, notably by implementing enterprise and industrial policy and completing preparations foralignment with the current EU policy framework.
Science and research. Montenegro has a good level of preparation in this sector. Good progress was made, notably on continuing the implementation of the Smart Specialisation Strategy and strengthening academia-business cooperation and adoption of the strategy for scientific research.
Education and culture. Montenegro has a good level of preparation in this area. Some progress was made, notably on advancing preparations for the sectoral reform strategy and implementing the strategy on early and preschool education. The recommendation related to evaluation mechanisms for practical learning remains to be addressed.
Montenegro is moderately prepared for the customs union. It made some progress, advancing preparations for its accession to the Common Transit Convention and amending its legislative framework on intellectual property rights and cultural goods.
CLUSTER 4: The Green Agenda and sustainable connectivity
Transport policy. Montenegro is between moderate and a good level of preparation in this area. There was limited progress on key reforms, with the adoption of the new road safety strategy.
Energy. Montenegro has reached a good level of preparation in this area. Limited progress was achieved, with drafting the National Energy and Climate Plan and implementing renewable energy projects.
Trans-European networks. Montenegro is between a moderate and a good level of preparation in this area. There was no progress on key reforms.
Environment and climate change. Montenegro has some level of preparation in this area. Some progress was made in further aligning national legislation with the EU acquis, namely through the adoption of the Law on waste management, the Law on biocidal products, and, in the field of civil protection, by connecting fully to the EU’s Common Emergency Communication and Information System.
CLUSTER 5: Resources, agriculture and cohesion. Agriculture and rural development. Montenegro remains moderately prepared in this area. Good progress was achieved, mainly through improved implementation of the Instrument for Pre-accession Assistance for Rural Development (IPARD II and III), drafting an implementation plan for the establishment of a Paying Agency and an integrated administrative and control system (IACS) extending the area included in the land parcel identification system (LPIS).
Food safety, veterinaryand phytosanitary policy. Montenegro remains moderately prepared. Some progress was achieved through further alignment of implementing legislation with the EU acquis.
Fisheries and aquaculture. Montenegro has some level of preparation in this area. Some progress was made throught he adoption of the new 2024-2029 fisheries and aquaculture strategy and its action plan, the adoption of an agreement onsubsidies and fisheries within the WTO framework.
Regional policy and coordination of structural instruments. Montenegro is moderately prepared in this area. Some progress was made with work on updating the Chapter22 Action Plan and preparations for IPA III operational programmes. (Instrument for Pre-accession Assistance) and the related budget entrustments.
Financial and budgetary provisions. Montenegro has some level of preparation in this area. Overall, limited progress was made.
CLUSTER 6: External relations. Montenegro has a good level of preparation. Some progress was made in the field of regional cooperation and development policy and humanitarian aid.
Foreign, security and defence policy. Montenegro has a good level of preparation. Good progress was made as the country maintained its track record of full alignment with relevant statements by the High Representative on behalf of the EU and Council decisions on sanctions, including with the EU restrictive measures related to Russia’s invasion of Ukraine and has provided assistance to Ukraine. Montenegro continued to participate in EU crisis management missions andoperations under the common security and defence policy. The recommendations from last year were implemented.
Comments: Montenegro can be said to be the “excellence of the course”. It is no coincidence that during his visit to Podgorica, the President of the European Commission Von der Leyen said that if it continues at the same pace next year, Montenegro can close most of the negotiation chapters and join the EU by the end of 2028. This is practically the clearest vision given to a candidate country in the last 20 years. And indeed – all the factors that can make Montenegro the most successful candidate from the Western Balkans group are present: a small but relatively developed economy; clear distancing from Belgrade and the country’s Yugoslav past; a member of NATO and in solidarity with all EU decisions in the field of the Union’s common foreign and security policy; the absorption of the state into the EU is not a particular problem. The experience of the EU in the process of enlargement to Slovenia and later to Croatia shows that these Balkan countries easily adapt to the new conditions, and the previously strained relations with Belgrade only help.
And this Commission will also need to report (finally) some result in the field of enlargement.
In Podgorica they are clearly aware of all these factors and there is very little chance that they will miss their chance.
