Proposal for a Council Decision providing exceptional financial assistance for Montenegro
Date: 2000-05-10
Institutions: European Commission
Subjects: EU aid, Montenegro, economic development, financial aid

28.11.2000

EN

Official Journal of the European Communities

C 337 E/29

Proposal for a Council Decision providing exceptional financial assistance for Montenegro

(2000/C 337 E/03)

COM(2000) 288 final (cid:14) 2000/0114(CNS)

(Submitted by the Commission on 11 May 2000)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 308 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the following:

(1) The Commission has

consulted the Economic
Financial Committee before submitting its proposal.

and

(2) The Montenegrin government pursues

a policy of
openness towards the EU and reforms towards a well-
functioning market economy.

(9) On 23-24 March 2000, the European Council in Lisbon
underlined ;. . . the urgent need for substantial assistance
to Montenegro in order to ensure the survival of demo-
cratic government and to avoid another serious crisis in
the region<. Furthermore, the European Council asked ;. . .
the competent
institutions to take without delay the
necessary decisions on the funding (. . .) of projects,
programmes and other forms of assistance which would
help to alleviate
financial needs of
if necessary by resorting to EU budgetary
Montenegro,
reserves, as well as macro-economic assistance<.

immediate

the

(10) Exceptional financial assistance from the Community in
the form of straight grants to be made available to the
Republic of Montenegro would ease
the Republic’s
financial constraints in the current difficult circumstances.

(11)

In the
absence of macroeconomic monitoring and
financial support from the IMF and the World Bank to
the Republic of Montenegro particular attention should be
devoted to the proper implementation and monitoring of
this assistance; all related preparation, implementation and
monitoring costs shall be covered by the assistance.

(3) Montenegro’s overall economic situation has deteriorated
during recent years and the Republic’s budget suffered a
substantial deterioration in 1999.

(12) The exceptional financial assistance should be managed by

the European Commission.

(4) In recognition of the difficult situation of the democratic
government of Montenegro and of the severe economic
crisis afflicting the population,
the Community has
provided strong support for Montenegro in 1998-1999.

(5) Montenegro’s budgetary needs are expected to remain

substantial in 2000.

(6) The external support in the year 2000 required from
international donors is expected to be substantial, also
in view of the need to clear the arrears, notably in the
pensions fund.

(13) The Treaty does not provide, for the adoption of this
decision, powers other than those of Article 308,

HAS ADOPTED THIS DECISION:

Article 1

The Community shall make available to the Republic of
1.
financial assistance in the form of
Montenegro exceptional
straight grants of up to EUR 20 million, with a view to
alleviating the Republic’s external financing needs

(7) The Republic of Montenegro is not in a position to obtain
long-term borrowing either domestically or abroad.

2.
This assistance shall be managed by the Commission in
close consultation with the Economic and Financial Committee.

(8) The Republic of Montenegro is not

for
the Bretton Woods Institutions. As a
the Republic of Montenegro may not
Bank

membership of
consequence,
benefit
arrangements in support of an economic programme.

from conventional

or World

eligible

IMF

Article 2

The Commission is empowered to agree with the
1.
Republic
the
after
Economic and Financial Committee, the economic conditions
attached to this assistance.

consultation with

of Montenegro,

C 337 E/30

EN

Official Journal of the European Communities

28.11.2000

The Commission shall verify at

in
2.
consultation with the Economic and Financial Committee,
that economic policies in the Republic of Montenegro respect
the objectives
this
assistance.

and economic policy conditions of

intervals,

regular

Article 3

1.
The grant assistance shall be made available to the
Republic of Montenegro in at least two instalments on the
basis of a successful completion of
the economic policy
conditions referred to in Article 2(1). The second tranche
shall not be released before two months after the release of
the first tranche.

All related preparation, implementation and monitoring

2.
costs shall also be covered by this assistance.

The funds shall be made available to the budget of the

3.
Republic of Montenegro.

Article 4

The Commission shall address to the European Parliament and
to the Council an annual
include an
evaluation on the implementation of this Decision.

report, which will