# EUR-Lex - 52012PC0156 - EN

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# 52012PC0156

**Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union within the Stabilisation and Association Council established by the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part, with regard to the provisions on the coordination of social security systems /* COM/2012/0156 final - 2012/0078 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

Grounds for and objectives of the
proposal

Article 51 of the Stabilisation and
Association Agreement between the European Communities and their Member States,
of the one part, and Montenegro, of the other part[1] ("the Agreement"),
lays down that the Stabilisation and Association Council shall, by decision, put
provisions in place to implement the principles on the coordination of social
security systems set out in that Article.

General context

Article 51 of the Agreement with Montenegro
contains provisions for limited coordination between the social security
systems of Member States and Montenegro. A Decision of the Stabilisation and Association
Council established by the Agreement is required in order that the principles
set out in Article 51 can take effect.

A number of other Agreements with third
countries contain similar provisions on the co-ordination of social security
systems. This proposal is part of a package of proposals which includes similar
proposals with regard to the Agreements with Albania, San Marino and Turkey. A
first package with similar proposals in respect of Algeria, Morocco, Tunisia,
Croatia, the former Yugoslav Republic of Macedonia and Israel was adopted by
the Council in October 2010.[2]

In order to establish the position to be
taken on behalf of the Union in this Stabilisation and Association Council, a
Council Decision is necessary.

Existing provisions in the area of the
proposal

At the level of the European Union, Member
States' social security systems are coordinated by Regulation (EC) No 883/2004[3] and its implementing Regulation
(EC) No 987/2009[4].

Council Regulation (EU) No 1231/2010[5] extends the provisions of
Regulation (EC) No 883/2004 and Regulation (EC) No 987/2009 to nationals of
third countries who are not already covered by those provisions solely on the
grounds of their nationality. This Regulation already covers the principle of
aggregation of insurance periods acquired by Montenegrin workers in the various
Member States regarding entitlement to certain benefits, as set out in Article
51(1)(a) of the Agreement with Montenegro.

Consistency with other policies and
objectives of the Union

The Stabilisation and Association Agreement
with Montenegro has as one of its objectives to support the efforts of Montenegro
to develop its economic and international cooperation. The Agreement is a step
towards preparing Montenegro for accession to the EU. Implementation of the
social security coordination provisions in Article 51 of the Agreement between
the EU and Montenegro will enhance the special relationship with Albania, as
envisaged in Article 8 TEU.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

Consultation of interested parties

The proposal for limited coordination
between the social security systems of the Member States and Montenegro is
modelled almost identically on the package of six draft Association Council
Decisions, respectively Stabilisation and Association Council Decisions, in
respect of Algeria, Morocco, Tunisia, Croatia, the former Yugoslav Republic of
Macedonia and Israel, in respect of which the European Union position was
decided by the Council in October 2010. Detailed negotiation took place in
Council in 2010 on the content of such decisions. These negotiations were
preceded by an intensive discussion with all Member States in the
Administrative Commission for the Coordination of Social Security Systems.

Collection and use of expertise

There was no need for external expertise.

Impact assessment

Article 51 of the Agreement with Montenegro
contains the principles for limited coordination between the social security
systems of Member States and Montenegro. Additionally, a number of other agreements
with third countries contain similar provisions on the coordination of social
security systems. All of them require a Decision of the relevant body set up by
those agreements so that the coordination principles can take effect.

The aim of the Articles on social security in
these agreements is that a worker from the associated country concerned can
receive certain social security benefits provided under the legislation of the
Member State(s) to which he is or has been subject. This also applies, by way
of reciprocity, to an EU national working in the associated country.

As the provisions in the proposals included
in the current package of proposals with regard to four countries (Albania, Montenegro,
San Marino and Turkey) are almost identical – and also almost identical to the
first package of six decisions in respect of Algeria, Morocco, Tunisia,
Croatia, the former Yugoslav Republic of Macedonia and Israel adopted by the
Council in October 2010, this will facilitate the application of these
provisions by Member States' social security institutions. There might be some
financial implications for national social security institutions resulting from
the application of these proposals, since they have to provide, for example,
the benefits as described in Article 51 of the Agreement with Montenegro. However,
this Article only concerns persons who are or have been contributing to the
national social security system of the country concerned, as provided for under
its national legislation. In any case, it may be difficult to gauge the precise
impact of these proposals on the national social security systems at this
stage.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

Summary of the proposed action

This proposal consists of a Council
Decision on the position to be taken on behalf of the Union within the Stabilisation
and Association Council established by the Agreement with Montenegro and, in
the Annex, of a draft Decision of the Stabilisation and Association Council in
the social security field.

The proposed Decision of the Stabilisation
and Association Council fulfils the requirement of Article 51 of the Agreement
with Montenegro for such a Decision, in order to put in place the social
security principles contained in that Article. The Decision therefore contains
implementing provisions with regard to those provisions of Article 51 of the
Agreement with Montenegro which are not already covered by Regulation (EU) No 1231/2010.

Moreover, the proposed Decision of the Stabilisation
and Association Council ensures that the provisions on the export of benefits
and the granting of family benefits also apply, by way of reciprocity, to EU
workers legally employed in Montenegro and to their family members legally
resident in Montenegro.

Legal basis

Article 218(9) of the Treaty on the
Functioning of the European Union in conjunction with its Article 79(2)(b). As
a consequence, Denmark will not participate in the adoption of this decision.
Neither will Ireland and the United Kingdom participate in the adoption of this
decision, unless notice is given of the wish to take part in the adoption and
application of it. The non-participation of these countries in the Council
decision is without prejudice to their participation in the decision of the Stabilisation
and Association Council.

Subsidiarity principle

The Agreement with Montenegro provides for
principles on coordination of social security systems which have to be applied
equally by all Member States. The implementation of these principles should
therefore be submitted to uniform conditions, which can be better achieved at
Union level.

Proportionality principle

The proposal complies with the
proportionality principle for the following reasons.

Member States continue to have exclusive
competence in determining, organising and financing their national social
security systems.

The proposal only organises to some extent
the coordination of social security systems of Member States and Montenegro, to
the benefit of the citizens of these countries. Moreover, the proposal does not
affect any rights and obligations arising from bilateral social security
agreements concluded between the Member States and Montenegro where the latter
provide for more favourable treatment of the persons concerned.

The proposal minimises the financial and
administrative burden for national authorities, as it is part of a package of
similar proposals which ensure a uniform application of social security
provisions contained in Association Agreements with third countries.

Choice of instruments

Proposed instruments: Council Decision
(containing in Annex a draft Stabilisation and Association Council Decision).

Other means would not be adequate for the
following reason.

There is no alternative option to the
proposed action. Article 51 of the Agreement requires a Decision of the Stabilisation
and Association Council. Article 218(9) of the Treaty on the Functioning of the
European Union provides for a Council Decision for the purpose of establishing
the positions to be adopted on behalf of the Union in a body set up by an agreement,
when that body is called upon to adopt decisions having legal effects.

4.           BUDGETARY IMPLICATION

The proposal has no implications for the
budge of the European Uniont.

5.           OPTIONAL ELEMENTS

Simplification

The proposal will lead to simplification of administrative procedures for national public authorities and simplification of administrative procedures for private parties.

The provisions in the proposal relating to the coordination of social security systems for Montenegrin nationals are almost identical to those for the nationals of the other associated countries. This will lead to a simplification of the procedures and fewer administrative burdens for national social security institutions.

Persons falling under the proposal are not confronted with different national provisions as regards the social security principles contained in Article 51 of the Agreement with Montenegro, and can therefore rely instead on uniform provisions within the Community.

Detailed explanation of the proposal

A. Council Decision on the position to
be taken on behalf of the European Union within the Stabilisation and Association
Council established by the Stabilisation and Association Agreement with Montenegro
with regard to the provisions on the coordination of social security systems.

Article 1

This Article provides for the adoption of
the EU position in the EU-Montenegro Stabilisation and Association Council.

B. Annexed draft Decision of the Stabilisation
and Association Council with regard to the provisions on the coordination of
social security systems contained in the Agreement.

Part I: General provisions

Article 1

This Article defines, for the purposes of
the legislation of a Member State and for the purpose of the legislation of Montenegro,
the terms "Agreement", "Regulation", "implementing
Regulation", "Member State", "worker", "member of
the family", "legislation", "benefits" and "exportable
benefits", and refers to the Regulation and implementing Regulation for
the other terms used in the annexed Decision.

Article 2

In line with the wording of Article 51 of
the Agreement with Montenegro, this Article defines the persons covered by the
annexed Decision.

Article 3

This Article provides for
non-discriminatory treatment of all persons covered by the Agreement with
regard to all social security benefits covered by it.

Part II

Relations between the Member States and Montenegro

This Part of the annexed draft Decision
covers the principles contained in Article 51(1)(b) of the Agreement with Montenegro
as well as the reciprocity clause with regard to EU nationals and the members
of their family, as provided for in Article 51 (2).

Article 4

This Article contains the principle of the
export of cash benefits as provided for in Article 51 (1)(b) of the Agreement
with Montenegro and makes it clear that this principle is limited to the
benefits contained in Article 1(1)(i) of the annexed Decision which lists the
benefits referred to in this paragraph.

Part III

Miscellaneous provisions

Article 5

This Article contains general provisions
for cooperation between Member States and their institutions, of the one part,
and Montenegro and its institutions, of the other part, as well as between the
beneficiaries and the institutions concerned. These provisions are similar to those
of Article 76 (3), (4), first and third sub-paragraphs, and (5) of Regulation
(EC) No 883/2004.

Article 6

This Article lays down the procedures for
administrative checks and medical examinations similar to those contained in
Article 87 of Regulation (EC) No 987/2009. Moreover, it provides for the
possibility to adopt other implementing provisions in this area.

Article 7

This Article refers to the possiblity to
use the conflict settlement procedure laid down in the Agreement.

Article 8

This Article refers to Annex II to the
annexed Decision which is similar to Annex XI to Regulation (EC) No 883/2004,
and which is necessary in order to lay down the necessary special provisions
for the application of Montenegrin legislation with regard to the annexed
Decision.

Article 9

This Article allows administrative
proedures from existing agreements between a Member State and Montenegro to
continue to apply under certain conditions.

Article 10

This Article provides for the possibility
to conclude supplementary administrative Agreements.

Article 11

The transitional provisions provided for
under this Article are similar to the transitional provisions in Article 87
(1), (3), (4), (6) and (7) of Regulation (EC) No 883/2004.

Article 12

This Article clarifies the legal status of
the Annexes to the annexed Decision and the procedure for amending them.

Article 13

This Article clarifies the date of entry
into force of the annexed Decision.

2012/0078 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken on behalf of
the European Union within the Stabilisation and Association Council established
by the Stabilisation and Association Agreement between the European Communities
and their Member States, of the one part, and the Republic of Montenegro, of
the other part, with regard to the provisions on the coordination of social
security systems

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 79(2)(b) in
conjunction with Article 218(9) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       Article 51 of the
Stabilisation and Association Agreement between the European Communities and
their Member States, of the one part, and the Republic of Montenegro, of the
other part[6]
("the Agreement"), provides that the Stabilisation and Association
Council shall, by decision, put in place the provisions to implement the principles
set out in that Article.

(2)       In accordance with Article
3 of Protocol (No 21) on the position of the United Kingdom and Ireland in
respect of the Area of Freedom, Security and Justice, annexed to the Treaty on
European Union and to the Treaty on the Functioning of the European Union, [Ireland]
[and] [the United Kingdom][has] [have] notified, by letter[s] of [ ...], [its] [their]
wish to take part in the adoption and application of this Decision.

(3)       In accordance with
Articles 1 and 2 of Protocol (No 21) on the position of the United Kingdom and
Ireland in respect of the Area of Freedom, Security and Justice, annexed to the
Treaty on European Union and to the Treaty on the Functioning of the European
Union, and without prejudice to Article 4 of that Protocol, [Ireland] [the
United Kingdom] [is] [are] not taking part in the adoption of this Decision and
[is] [are] not bound by it or subject to its application.

(4)       In accordance with
Articles 1 and 2 of Protocol (No 22) on the position of Denmark, annexed to the
Treaty on European Union and to the Treaty on the Functioning of the European
Union, Denmark is not taking part in the adoption of this Decision and is not
bound by it or subject to its application.

HAS ADOPTED THIS DECISION:

Article 1

The position to be taken on behalf of the
European Union within the Stabilisation and Association Council set up by the
Stabilisation and Association Agreement between the European Communities and
their Member States, of the one part, and the Republic of Montenegro, of the
other part ("the Agreement"), concerning the implementation of
Article 51 of the Agreement, shall be based on the draft decision of the Stabilisation
and Association Council attached to this Decision.

Minor changes to the draft decision may be
agreed to by the representatives of the Union in the Stabilisation and
Association Council without further decision of the Council.

Article 2

The Decision of the Stabilisation and Association
Council shall be published in the Official Journal of the European Union.

Article 3

This Decision shall enter into force on the
day of its adoption.

Done at Brussels,

For
the Council

The
President

ANNEX

Draft

DECISION
No.../.... OF THE EU – MONTENEGRO STABILISATION AND ASSOCIATION COUNCIL

of
...

with regard to the provisions on the
coordination of social security systems contained in the Stabilisation and
Association Agreement

THE STABILISATION AND ASSOCIATION COUNCIL,

Having regard to the Stabilisation and
Association Agreement establishing an association between the European
Communities and their Member States, of the one part, and the Republic of
Montenegro, of the other part[7],
and in particular Article 51 thereof,

Whereas:

(1)
Article 51 of the Stabilisation and Association
Agreement between the European Communities and their Member States, of the one
part, and the Republic of Montenegro, of the other part ("the
Agreement"), provides for the coordination of the social security systems
of Montenegro and the Member States and lays down the principles for such
coordination.

(2)
Article 51 of the Agreement provides that the
Stabilisation and Association Council shall adopt a Decision for the purposes
of implementing the principles set out in that Article.

(3)
With regard to the application of the
non-discrimination principle, this Decision should not give any additional
rights arising from certain facts or events occurring on the territory of the
other Contracting Party, where such facts or events are not taken into account
under the legislation of the first Contracting Party, other than the right to
export certain benefits.

(4)
In applying this Decision, the right of
Montenegrin workers to family benefits should be subject to the condition that their
family members legally reside with these workers in the Member State where the
workers are employed. This Decision should not give any entitlement to family
benefits with respect to members of their family who reside in another state,
for instance Montenegro.

(5)
Council Regulation (EU) No 1231/2010[8] already extends the provisions
of Regulation (EC) No 883/2004 and Regulation (EC) No 987/2009 to nationals of
third countries who are not already covered by those provisions solely on the
grounds of their nationality. Regulation (EU) No 1231/2010 already covers the
principle of aggregation of insurance periods acquired by Montenegrin workers
in the various Member States regarding entitlement to certain benefits, as set
out in Article 51(1)(a) of the Agreement.

(6)
It might be necessary to lay down special
provisions which correspond to the specific characteristics of the legislation
of Montenegro, in order to facilitate the application of the coordination
rules.

(7)
To ensure the smooth functioning of the
coordination of the social security systems of the Member States and of
Montenegro, it is necessary to provide for specific provisions regarding the
cooperation between the Member States and Montenegro as well as between the
person concerned and the institution of the competent State.

(8)
Transitional provisions should be adopted to
protect the persons covered by this Decision and to ensure that they do not
lose rights as a result of its entry into force.

HAS ADOPTED THIS DECISION:

PART I

GENERAL PROVISIONS

Article 1

Definitions

1.           For the purposes of this
Decision

(a)          "Agreement" means the
Stabilisation and Association Agreement between the European Communities and
their Member States, of the one part, and the Republic of Montenegro, of the
other part;

(b)          "Regulation" means
Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29
April 2004 on the coordination of social security systems[9] as applicable in the Member
States of the European Union;

(c)          "implementing
Regulation" means Regulation (EC) No 987/2009 of the European Parliament
and of the Council of 16 September 2009 laying down the procedure for
implementing Regulation (EC) No 883/2004 on the coordination of social security
systems[10];

(d)          "Member State" means a
Member State of the European Union;

(e)          "worker" means,

(i)      for
the purposes of the legislation of a Member State, a person pursuing an
activity as an employed person within the meaning of Article 1(a) of the
Regulation;

(ii)      for
the purposes of the legislation of Montenegro, a person pursuing an activity as
an employed person within the meaning of that legislation;

(f)           "member of the family"
means,

(i)      for the
purposes of the legislation of a Member State, a member of the family within
the meaning of Article 1(i) of the Regulation;

(ii)      for the
purposes of the legislation of Montenegro, a member of the family within the
meaning of that legislation;

(g)          "legislation" means,

(i)      in relation
to the Member States, legislation within the meaning of Article 1(1) of the
Regulation as applicable to the benefits covered by this Decision;

(ii)      in
relation to Montenegro, the relevant legislation as applicable in Montenegro
relating to the benefits covered by this Decision;

(h)          "benefits" means,

–
old-age pensions,

–
survivors' pensions,

–
pensions in respect of accidents at work and
occupational diseases,

–
invalidity pensions related to accidents at work
and occupational diseases,

–
family allowances.

(i)           "exportable benefits"
means,

(i)      in relation
to the Member States:

–
old-age pensions,

–
survivors' pensions,

–
pensions in respect of accidents at work and
occupational diseases,

–
invalidity pensions related to accidents at work
and occupational diseases,

within the meaning of the Regulation, with the
exception of special non-contributory cash benefits as listed in Annex X to the
Regulation;

(ii)      in relation to Montenegro, the
corresponding benefits provided under the legislation of Montenegro, with the
exception of special non-contributory cash benefits as set out in Annex I to
this Decision;

2.           Other terms used in this
Decision shall have the meaning which is assigned to them:

(a)          in relation to the Member States,
in the Regulation and the implementing Regulation;

(b)          in relation to Montenegro, in the
relevant legislation as applicable in Montenegro.

Article 2

Persons
covered

This Decision shall apply:

(a)          to workers who are Montenegrin
nationals and who are or have been legally employed in the territory of a
Member State and who are or have been subject to the legislation of one or more
Member States, and their survivors;

(b)          to the members of the family of
workers referred to in point (a) provided that these family members are or have
been legally resident with the worker concerned while the worker is employed in
a Member State;

(c)          to workers who are nationals of a
Member State who are or have been legally employed in the territory of
Montenegro and who are or have been subject to the legislation of Montenegro
and their survivors; and

(d)          to the members of the family of
workers referred to in point (c) provided that these family members are or have
been legally resident with the worker concerned while the worker is employed in
Montenegro.

Article 3

Equality of Treatment

1.           Workers who are
Montenegrin nationals and are legally employed in a Member State and any
members of their families legally residing with them shall enjoy, with regard
to the benefits within the meaning of Article 1(1)(h), treatment free from any
discrimination based on nationality relative to nationals of the Member States
in which those workers are employed.

2.           Workers who are nationals
of a Member State and are legally employed in Montenegro and any members of
their families legally residing with them shall enjoy, with regard to the
benefits within the meaning of Article 1(1)(h), treatment free from any
discrimination based on nationality relative to Montenegrin nationals.

Part II

RELATIONS
BETWEEN THE MEMBER STATES AND MONTENEGRO

Article 4

Waiving of
residence clauses

1.           Exportable benefits within the meaning of Article 1(1)(i)
to which the persons as referred to in Article 2(a) and (c) are entitled shall
not be subject to any reduction, modification, suspension, withdrawal or
confiscation by reason of the fact that the beneficiary is residing,

(i)           for
the purpose of a benefit under the legislation of a Member State, within the
territory of Montenegro, or

(ii)          for
the purpose of a benefit under the legislation of Montenegro, within the
territory of a Member State.

2.           Family members of a worker
as referred to in Article 2(b) are entitled to exportable benefits within the
meaning of Article 1(1)(i)(i) in the same way as the family members of a worker
who is a national of the Member State concerned when these family members
reside within the territory of Montenegro.

3.           Family members of a worker
as referred to in Article 2(d) are entitled to exportable benefits within the
meaning of Article 1(1)(i)(ii) in the same way as the family members of a
worker who is a national of Montenegro when these family members reside within
the territory of a Member State.

PART III

MISCELLANEOUS
PROVISIONS

Article 5

Cooperation

1.           The Member States and Montenegro shall communicate to
each other all information regarding changes in their legislation which may
affect the implementation of this Decision.

2.           For the purposes of this Decision, the authorities and
institutions of the Member States and of Montenegro shall lend one another
their good offices and act as though implementing their own legislation. The
administrative assistance given by the said authorities and institutions shall,
as a rule, be free of charge. However, the competent authorities of the Member
States and of Montenegro may agree to certain expenses being reimbursed.

3.           The authorities and
institutions of the Member States and of Montenegro may, for the purposes of
this Decision, communicate directly with one another and with the persons
involved or their representatives.

4.           The institutions and
persons covered by this Decision shall have a duty of mutual information and
cooperation to ensure the correct implementation of this Decision.

5.           The persons concerned must
inform the institutions of the competent Member State or Montenegro, where the
latter is the competent state, and of the Member State of residence or
Montenegro, where the latter is the State of residence, as soon as possible of
any change in their personal or family situation which affects their right to
benefits under this Decision.

6.           Failure to respect the
obligation of information referred to in paragraph 5 may result in the
application of proportionate measures in accordance with national law.
Nevertheless, these measures shall be equivalent to those applicable to similar
situations under domestic law and shall not make it impossible or excessively
difficult in practice for claimants to exercise the rights conferred on them by
this Decision.

7.           The Member States and Montenegro
may provide for national provisions that establish conditions for verification
of the entitlement to benefits to take into account the fact that the
beneficiaries are staying or residing outside the territory of the State where
the debtor institution is located. Such provisions shall be proportionate, free
from any discrimination based on nationality and in accordance with the
principles of this Decision. Such provisions shall be notified to the Stabilisation
and Association Council.

Article 6

Administrative
checks and medical examinations

1.           This Article shall apply
to the persons as referred to in Article 2 and in receipt of exportable
benefits as referred to in Article 1(1)(i), as well as to the institutions in
charge of the implementation of this Decision.

2.           Where a recipient or a
claimant of benefits, or a member of his family, is staying or residing within
the territory of a Member State when the debtor institution is located in
Montenegro or in Montenegro when the debtor institution is located in a Member
State, the medical examination shall be carried out, at the request of that
institution, by the institution of the beneficiary’s place of stay or residence
in accordance with the procedures laid down by the legislation applied by that
institution.

The debtor institution
shall inform the institution of the place of stay or residence of any special
requirements, if necessary, to be followed and points to be covered by the
medical examination.

The institution of the
place of stay or residence shall forward a report to the debtor institution
that requested the medical examination.

The debtor institution
shall reserve the right to have the beneficiary examined by a doctor of its
choice, either in the territory where the recipient or claimant of benefit is
staying or residing or in the country where the debtor institution is located.
However, the beneficiary may be asked to return to the State of the debtor
institution only if he or she is able to make the journey without prejudice to
his health and the cost of travel and accommodation is paid for by the debtor
institution.

3.           Where a recipient or a
claimant of benefits, or a member of his family, is staying or residing in the
territory of a Member State when the debtor institution is located in
Montenegro or in Montenegro when the debtor institution is located in a Member
State, the administrative check shall, at the request of the debtor
institution, be performed by the institution of the beneficiary’s place of stay
or residence.

The institution of the
place of stay or residence shall forward a report to the debtor institution
that requested the administrative check.

The debtor institution
shall reserve the right to have the situation of the beneficiary examined by a
professional of its choice. However, the beneficiary may be asked to return to
the State of the debtor institution only if he or she is able to make the
journey without prejudice to his health and the cost of travel and accommodation
is paid for by the debtor institution.

4.           One or more Member States
and Montenegro may agree on other administrative provisions, subject to their
informing the Stabilisation and Association Council thereof.

5.           As an exception to the
principle of free-of-charge mutual administrative assistance set out in Article
5(2) of this Decision, the effective amount of the expenses of the checks
referred to in paragraphs 2 and 3 of this Article shall be
refunded to the institution which was requested to carry them out by the debtor
institution which requested them.

Article 7

Application
of Article 129 of the Agreement

Article 129 of the Agreement shall apply in
case either Party considers that the other Party has not complied with the
obligations as laid down in Articles 5 and 6.

Article 8

Special
provisions for the application of the legislation of Montenegro

The Stabilisation and Association Council
may, if necessary, lay down special provisions for the application of the
legislation of Montenegro in Annex II.

Article 9

Administrative
procedures from existing bilateral agreements

Administrative procedures contained in
existing bilateral agreements between a Member State and Montenegro may
continue to apply provided that these procedures do not adversely affect the
rights or obligations of the persons concerned established by this Decision.

Article 10

Agreements
supplementing the procedures for implementing this Decision

One of more Member States and Montenegro
may conclude agreements designed to supplement the administrative procedures
for implementing this Decision, especially with regard to preventing and
combating fraud and error.

PART IV

TRANSITIONAL
AND FINAL PROVISIONS

Article 11

Transitional
provisions

1.           No rights shall be
acquired pursuant to this Decision for the period before its entry into force.

2.           Subject to paragraph 1, a
right shall be acquired under this Decision even if it relates to a contingency
arising before its date of entry into force.

3.           Any benefit which has not
been awarded or which has been suspended by reason of the nationality or place
of residence of the person concerned shall, at the request of that person, be
provided or resumed with effect from the date of entry into force of this
Decision, provided that the rights for which benefits were previously provided
have not given rise to a lump-sum payment.

4.           If a request as referred
to in paragraph 3 is submitted within two years from the date of
entry into force of this Decision, the rights acquired in accordance with this
Decision shall have effect from the date of entry into force of this Decision,
and the legislation of any Member State or Montenegro concerning the forfeiture
or limitation of rights may not be invoked against the persons concerned.

5.           If a request as referred
to in paragraph 3 is submitted after the expiry of the two-year period
following the date of entry into force of this Decision, rights not forfeited
or not time-barred shall have effect from the date on which the request was
submitted, subject to any more favourable provisions under the legislation of
any Member State or Montenegro.

Article 12

Annexes to
this Decision

1.           The Annexes to this
Decision constitute an integral part thereof.

2.           At the request of
Montenegro or the European Union, the Annexes may be amended by a decision of
the Stabilisation and Association Council.

Article 13

Entry into
force

This Decision shall enter into force on the
day following that of its publication in the Official Journal of the
European Union.

Done at Brussels,

For the Stabilisation and
Association Council

The President

ANNEX I

LIST
OF MONTENEGRIN SPECIAL NON-CONTRIBUTORY CASH BENEFITS

ANNEX II

SPECIAL
PROVISIONS FOR THE APPLICATION OF THE LEGISLATION OF MONTENEGRO

[1]               OJ L 108, 29.4.2010, p.1.

[2]               OJ L306, 23.11.10.

[3]               OJ L 166, 30.4.2004, p. 1.

[4]               OJ L 284, 30.10.2009 p. 1.

[5]               OJ L 344, 29.12.2010, p. 1. In
accordance with Protocols Nos 21 and 22, Denmark and the United Kingdom are not
bound by or subject to the application of Regulation (EU) No 1231/2010.
However, the United Kingdom continues to be bound by and subject to the
application of the previous Regulation (EC) No 859/2003, OJ L124, 20.5.2003,
p.1.

[6]               OJ L 108, 29.4.2010, p.1.

[7]               OJ L108, 29.4.2010, p.1.

[8]               OJ L 344, 29.12.2010, p. 1.

[9]               OJ L 166, 30.4.2004, p.1.

[10]             OJ L 284, 30.10.2009, p. 1.