2007/49/EC: Council Decision of 22 January 2007 on the principles, priorities and conditions contained in the European Partnership with Montenegro
Date: 2007-01-22
Institutions: Council of the European Union
Subjects: Montenegro, aid policy, association agreement (EU), cooperation policy, economic stabilisation

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 22 January 2007

on the principles, priorities and conditions contained in the European Partnership with Montenegro

(2007/49/EC)

THE COUNCIL OF THE EUROPEAN UNION,

mechanisms established under the stabilisation and asso-
ciation process, notably by the annual progress reports.

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 533/2004 of 22
March 2004 on the establishment of partnerships
in the
framework of the stabilisation and association process (1), and
in particular Article 2 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

The Thessaloniki European Council of 19 and 20 June
2003 endorsed the introduction of the European Part-
nerships as a means to support the European perspective
of the western Balkan countries.

Regulation (EC) No 533/2004 provides that the Council
is to decide on the principles, priorities and conditions to
be contained in the European Partnerships, as well as any
subsequent adjustments.

(3)

Regulation (EC) No 533/2004 states that the follow-up
to the European Partnerships is ensured through the

(1) OJ L 86, 24.3.2004, p. 1. Regulation as amended by Regulation (EC)

No 269/2006 (OJ L 47, 17.2.2006, p. 7).

(4)

(5)

(6)

(7)

The Council adopted on 14 June 2004 a first European
Partnership with Serbia
and Montenegro including
Kosovo as defined by the United Nations Security
Council Resolution 1244 (2). The Council decided on
30 January 2006 to update that European Partnership (3).

Montenegro proclaimed its independence on 3 June
2006 following a referendum which was held on 21
May 2006.

At the General Affairs and External Relations Council of
the European Union and its Member
12 June 2006,
further
States decided that
relations with the Republic of Montenegro as
a
sovereign, independent State.

they will develop their

Therefore, it is appropriate to establish a new European
Partnership with Montenegro on the basis of the part
the European Partnership
referring to Montenegro of
with Serbia and Montenegro adopted on January 2006,
updated in view of the findings of the 2006 progress
report, and supplemented with priorities addressing the
challenges that Montenegro faces as an independent state.

(2) Council Decision 2004/520/EC of 14 June 2004 on the principles,
priorities and conditions contained in the European Partnership with
Serbia and Montenegro including Kosovo as defined by the United
Nations Security Council Resolution 1244 of 10 June 1999 (OJ
L 227, 26.6.2004, p. 21).

(3) Council Decision 2006/56/EC of 30 January 2006 on the principles,
priorities and conditions contained in the European Partnership with
Serbia and Montenegro including Kosovo as defined by the United
Nations Security Council Resolution 1244 of 10 June 1999 and
repealing Decision 2004/520/EC (OJ L 35, 7.2.2006, p. 32).

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(8)

In order to prepare for further integration with the
European Union,
of
Montenegro should develop a plan with a timetable
and specific measures to address the priorities of this
European Partnership,

competent

authorities

the

HAS DECIDED AS FOLLOWS:

Article 1

In accordance with Article 1 of Regulation (EC) No 533/2004,
the principles, priorities and conditions in the European Part-
nership with Montenegro are set out
in the Annex hereto,
which forms an integral part of this Decision, and which shall
replace, for Montenegro, the Annex to Decision 2006/56/EC.

Article 2

implementation of

European Partnership with
The
Montenegro shall be examined through the mechanisms estab-

the

lished under the stabilisation and association process, notably
the annual progress reports presented by the Commission.

Article 3

This Decision shall take effect on the third day following its
publication in the Official Journal of the European Union.

Done at Brussels, 22 January 2007.

For the Council
The President

F.-W. STEINMEIER

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ANNEX

MONTENEGRO: 2006 EUROPEAN PARTNERSHIP

1.

INTRODUCTION

The European Council endorsed the introduction of European Partnerships as a means to support the European
perspective of the western Balkan countries.

On 30 January 2006 the Council of the European Union adopted a European Partnership for Serbia and Montenegro
including Kosovo as defined by the United Nations Security Council Resolution 1244 of 10 June 1999. Montenegro
proclaimed its independence on 3 June 2006 following a referendum held on 21 May. That was followed by
recognition by the EU and its Member States. Therefore, it is appropriate to adopt an updated European Partnership
only for Montenegro. This updated Partnership is based on the parts related to Montenegro of the previous European
Partnership for Serbia and Montenegro (including Kosovo). It adds elements reflecting the new competences of
Montenegro and the challenges it faces as an independent state.

The competent authorities in Montenegro should develop a plan including a timetable and specific measures to
address the European Partnership priorities.

2.

PRINCIPLES

The Stabilisation and Association Process remains the framework for the European course of the western Balkan
countries, all the way to their future accession.

The main priorities identified relate to the capacity of Montenegro to meet the criteria defined by the Copenhagen
European Council of 1993 and the conditions set for the Stabilisation and Association Process, notably the
conditions defined by the Council in its Conclusions of 29 April 1997 and 21 and 22 June 1999, the content
of the final declaration of the Zagreb Summit of 24 November 2000 and the Thessaloniki Agenda.

3.

PRIORITIES

The priorities listed in this European Partnership have been selected on the basis that it is realistic to expect that
Montenegro can complete them or make substantial progress on them over the next few years. A distinction is made
between short-term priorities, which are expected to be accomplished within one to two years, and medium-term
priorities, which are expected to be accomplished within three to four years. The priorities concern both legislation
and its implementation.

Taking into account the substantial costs involved with meeting all the EU requirements as well as the complexity of
these requirements in certain areas, this Partnership does not include all
important tasks at this stage. Future
partnerships will include further priorities in line with progress made by Montenegro.

Among the short-term priorities, the key ones have been identified and grouped together at the beginning of the list.
The order of these key priorities does not imply ranking as to their importance.

3.1. SHORT-TERM PRIORITIES

Key priorities
— Adopt a new constitution, based on broad consensus, in line with European standards, in particular in the areas

of human and minority rights, organisation of the judiciary, audit, defence and security structures.

— Complete the establishment of the legal and institutional set-up required for an independent country including
instruments to which the State Union of Serbia and

the international

the signature and ratification of
Montenegro had adhered.

— Continue efforts to implement the reform of the public administration, including the civil service pay system, to
ensure transparent recruitment, professionalism and accountability; continue,
in particular, to strengthen the
European integration structures at all levels (including in the relevant ministries and in the parliament) and the
mechanisms of coordination on EU matters.

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— Finalise plans to reform the judicial system; remove recruitment and career management from the parliament's
powers and establish transparent procedures based on professional and objective criteria for selection and career
advancement; rationalise the court system and modernise proceedings and improve administration; provide
adequate and sustainable financing for the judicial system.

— Enhance the fight against organised crime and corruption at all levels, including by setting up efficient institu-
tional mechanisms for inter-agency cooperation and enhancing the operational capacity of law enforcement
bodies.

— Strengthen parliamentary control over defence and security structures.

— Continue ensuring full cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY).

— Strengthen the capacity to adopt and implement measures deriving from commitments negotiated under the
Stabilisation and Association Agreement, in particular upgrade the capacity of customs to correctly apply the
rules of origin and the methods of administrative cooperation.

Political criteria

Democracy and the rule of law

E l e c t i o n s
— In line with the recommendations of the Office for Democratic Institutions and Human Rights, depoliticise the
election administration, improve its functioning, in particular regarding announcement of results, codify election
legislation, establish rules for media coverage of campaigns and introduce rules guaranteeing transparency for the
allocation of seats in line with European standards; set up a transparent framework for campaign financing.

P a r l i a m e n t
— Strengthen the overall legislative and control capacity of the parliament in particular through the implementation

of the newly adopted rules of procedure.

— Strengthen the capacity of the parliament in new areas of competence.

— Strengthen the functioning of the Committee on European Integration and provide appropriate administrative

and expert support.

P u b l i c a d m i n i s t r a t i o n
— Continue the depoliticisation process of the public administration.

— Strengthen the administrative capacity of the ombudsman's office; ensure proper follow-up of the ombudsman's

recommendations.

— Continue to implement the decentralisation process and upgrade the capacities of municipalities.

J u d i c i a l s y s t e m
— Ensure implementation of the legislation on mandatory initial and continuous training for judges, prosecutors

and court support staff, and continue to strengthen the judicial training centre.

— Finalise plans to reform the judicial system; remove control of recruitment and career management from the
parliament and establish transparent procedures based on professional and objective criteria for selection and
career advancement; rationalise the court system and modernise proceedings and improve administration;
provide adequate and sustainable financing for the judicial system.

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— Provide guarantees to strengthen the autonomy and efficiency of the prosecution system, including in relation to
budget issues. Strengthen the office of the prosecutor for organised crime and upgrade the capacity in the area of
anti-corruption policy.

— Upgrade the capacity of the Ministry of Justice for international judicial cooperation.

A n t i - c o r r u p t i o n p o l i c y
— Amend the law on conflict of interest and implement it in order to eliminate all possible cases of conflict of

interests of officials.

— Upgrade efforts to implement the anti-corruption strategy, notably through providing adequate financial and

human resources to law enforcement bodies to ensure its implementation.

— Develop and fully implement the laws on political parties and the financing of political parties ensuring

transparency and clarity.

H u m a n r i g h t s a n d t h e p r o t e c t i o n o f m i n o r i t i e s
— Ensure effective mechanisms for implementation of the obligations deriving from international

instruments,
notably with regard to the European Convention on Human Rights and Fundamental Freedoms and the
European Convention for the Prevention of Torture.

— Take comprehensive and transparent action in all alleged cases of ill-treatment. Strengthen the internal control

services dealing with ill-treatment by law enforcement agents.

— Improve prison conditions, in particular as regards vulnerable groups such as juvenile offenders and those in
need of psychiatric care; ensure appropriate monitoring of prison conditions for long-term inmates and for
organised crime inmates, ensure further training of penitentiary staff and improvement of special needs facilities.

— Adopt comprehensive anti-discrimination legislation.

— Ensure implementation of the law on access to public information. Continue the transformation of Radio and

Television of Montenegro into a public service broadcaster and provide appropriate means for it.

— Implement the memorandum on cooperation between NGOs and governmental bodies.

— Continue implementing the legislation on the restitution of property.

— Provide an adequate framework, including at constitutional level, for the protection of the rights of minorities.

Implement the strategy and action plan relevant to the integration of Roma people, including refugees.

i s s u e s a n d i n t e r n a t i o n a l o b l i g a t i o n s

R e g i o n a l
— Continue strengthening regional cooperation and good neighbourly relations, with the perspective of, inter alia,
promoting reconciliation. Implement free trade agreements with neighbouring countries, notably in the context
of the new Central European Free Trade Agreement (CEFTA). Upgrade cross-border cooperation in the areas of
the fight against organised crime, trafficking and smuggling,
judicial cooperation, border management, envir-
onment, transport and energy.

— Ensure protection of the rights of refugees and internally displaced persons. Repeal all discriminatory provisions
in the fields of labour, access to property rights, legal redress and access to citizenship; guarantee unhindered
access to health services and personal documents. Ensure the right of a real choice between sustainable return
and integration and provide conditions for integration for those who choose the latter.

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— Align national

legislation and practice with the relevant international standards and agreements through the
signing and ratification of the relevant international instruments at the level of the Council of Europe and the
United Nations on fighting organised crime and financial crime, including corruption.

Economic criteria
— Sustain macroeconomic stability by pursuing the necessary fiscal adjustment and consolidation.

— Develop the institutional and analytical capacity necessary to draft and implement the ‘Economic and Fiscal

Programme’ proposed by the Commission of the European Communities.

— Implement the public expenditure management system, notably programme budgeting, medium-term budgeting

and the introduction of elements of accrual accounting.

— Fully integrate capital budget into general government accounts, including local government capital expenditures.

— Continue the restructuring and privatisation process of publicly owned enterprises.

— Adopt and implement the law on insurance supervision.

— Continue efforts to promote adaptability and skills of the labour force, with full engagement of employers and

trade unions in that process.

— Continue to make the necessary adjustments to the Montenegrin trade regimes, to render them compatible with

the autonomous trade measures and the future Stabilisation and Association Agreement (SAA).

European Standards

Internal market

F r e e m o v e m e n t o f g o o d s
— Complete the establishment of the legal and institutional set-up on standardisation, market surveillance, certifi-
cation, metrology, accreditation and conformity assessment in line with the European Community acquis commu-
nautaire to create conditions favourable to trade. Start adopting European standards.

— Establish internal consultation and notification mechanisms for new technical regulations prior to their adoption

on measures having an impact on trade.

— Establish a legal framework and administrative capacity for active consumer and health protection in line with

EU consumer and health policy.

— Continue the necessary reforms to comply with WTO rules and obligations in order to accelerate the WTO

accession process.

C u s t o m s a n d t a x a t i o n
— Further align customs legislation and procedures with the acquis. Continue to modernise the customs adminis-
trations in order to ensure a high level of administrative capacity and to fight against corruption, cross-border
crime and fiscal evasion.

— Amend and implement legislation in the area of rules of origin in order to introduce a legal basis for the
application of the EC rules of origin for the purposes of the autonomous trade measures, for this purpose ensure
the provision of information and training to operators and customs officers.

— Further align tax legislation with the acquis. Improve implementation of tax laws, focusing on revenue collection

and control in order to reduce tax fraud.

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— Apply the principles of the code of conduct for business taxation and ensure that new tax measures are in

conformity with those principles.

C o m p e t i t i o n
— Establish and provide adequate means for the operation of a competition authority with full functional inde-

pendence.

— Strengthen the state aid framework and increase transparency, as a first step towards state aid control in line with

the requirements of the Stabilisation and Association Agreement.

P u b l i c p r o c u r e m e n t
— Implement an effective public procurement regime in line with EU principles, including in relation to remedies.
Ensure full transparency of procedures, regardless of the value of the contract concerned, and non-discrimination
between Montenegrin and EU suppliers.

— Ensure the establishment and functioning of the public procurement agency and review body and upgrade their
administrative capacity; provide appropriate training of staff in contracting entities responsible for implementing
procurement rules.

I n t e l l e c t u a l p r o p e r t y l a w
— Significantly strengthen the level of protection of

in particular by adopting a
comprehensive legal framework on intellectual property rights, including effective enforcement provisions, and
by establishing an intellectual property rights office.

intellectual property rights,

— Strengthen implementation and enforcement capacity in this field, including in border services, law enforcement

agencies and the judiciary.

— Formally confirm participation in the main international agreements in the field of intellectual property law.

F i n a n c i a l s e r v i c e s
— Strengthen the regulatory and supervisory framework for financial
current EU practices, in particular concerning the banking sector.

institutions and markets, consistent with

— Reinforce cooperation with the home supervisors of foreign banks with significant subsidiaries in Montenegro,

including by concluding cooperation agreements.

C o m p a n y l a w
— Strengthen enforcement of financial reporting requirements,

companies.

in particular for financial

institutions and listed

E m p l o y m e n t a n d s o c i a l p o l i c i e s
— Upgrade the capacity of the Ministry of Labour and Social Welfare on policy formulation and monitoring, with
emphasis on labour market integration of young people, women and vulnerable groups; upgrade performance
management of active employment measures implemented by the Montenegrin employment service.

— Enhance the work of labour inspectorates to ensure health and safety at work.

— Step up efforts to promote quality in the education system and life-long learning.

— Continue improving the quality, efficiency and relevance of the higher education system and support its inte-

gration into the European Higher Education Area.

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Sectoral policies

I n d u s t r y a n d S M E s
— Continue implementing the European Charter for Small Enterprises.

— Strengthen the investment promotion agency. Improve business advocacy and consultation.

— Adopt a law on harmonisation and acceleration of

implement
legislation in close cooperation with local government authorities; and, adopt and implement an action plan
on the reduction of business barriers.

licensing and systems for issuing permits;

— Accelerate the setting up and implementation of a national guarantee fund for SMEs.

A g r i c u l t u r e a n d f i s h e r i e s
— Continue strengthening administrative capacity for agricultural and rural development policy formulation and

implementation.

— Adopt the food safety law, a law on animal welfare and a new veterinary law and strengthen the veterinary and

phytosanitary services, including control and laboratory capacities.

— Continue efforts to align legislation with the EU veterinary and phytosanitary acquis including the setting up of an
integrated food safety system aiming at avoiding overlapping, and increasing food safety. Prepare a system of
animal identification and registration for bovines in line with EU requirements.

— Finalise the fisheries strategy and upgrade the capacity of Montenegro to conduct a fisheries policy in line with

EU standards, including those concerning international cooperation.

— Ensure protection of the geographical

indications and designations of origin registered in the Community

pursuant to Council Regulation (EC) No 510/2006 (1).

E n v i r o n m e n t
— Continue approximating Montenegrin legislation to EU legislation and standards, notably environmental
protection framework legislation. Develop the administrative capacity to implement and enforce adopted legis-
lation.

— Develop an overall environment protection strategy (water, waste, air). Adopt the land use plan; adopt the
sustainable development strategy and sectoral strategies (integrated coastal zone management, biodiversity,
climate change). Strengthen environmental management administrative capacity.

T r a n s p o r t p o l i c y
— Continue to align aviation legislation, including air traffic control, with the acquis, in line with the commitments

undertaken by signing the European Common Aviation Area Agreement.

— Strengthen the civil aviation authority, and appoint an operationally independent aviation accident investigation
body, a national supervisory body for the air navigation service provider, and a body responsible for the
enforcement of air passenger rights.

— Continue implementing the Memorandum of Understanding on the Development of the South East Europe Core

Regional Transport Network, including cooperation in the South East Europe Transport Observatory.

— Implement the road transport law (including establishment of the relevant implementation structures). Ensure

sufficient resources for the maintenance of transport infrastructures and institutions.

(1) Council Regulation (EC) No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin for

agricultural products and foodstuffs (OJ L 93, 31.3.2006, p. 12).

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E n e r g y
— Ratify and continue implementing the commitments undertaken in the framework of

the signed Energy

Community Treaty.

— Complete and implement the energy development strategy, and the energy efficiency strategy; strengthen the

administrative capacity of the Ministry of Economy in the field of energy.

— Put in place a regulatory body and adopt appropriate legislation in the field of nuclear safety and radiation

protection.

— Ensure law enforcement and transparency in the energy market.

I n f o r m a t i o n s o c i e t y a n d m e d i a
— Strengthen the agency for telecommunications to foster competition in the market by applying the relevant
legislation, in particular in relation to the introduction of the necessary competitive safeguards in the market.

— Improve the administrative capacity of the Ministry of Economy in the area of electronic communications. Take
further steps in tariff balancing, further address the terms and conditions of interconnection tariffs, and address
the issue of licence fees.

— Guarantee the operational independence of the broadcasting authority.

— Ensure a smooth transformation of Montenegrin radio and television into a public service provider, and ensure

means for its efficient functioning.

F i n a n c i a l c o n t r o l
— Upgrade the public internal financial control strategy with references to short- and medium-term objectives and

with corresponding IT system support; enhance internal audit capacity.

— Further strengthen the State audit office and provide for the appropriate constitutional guarantees.

S t a t i s t i c s
— Collect and transmit statistical information in compliance with statistical requirements related to the economic,

trade, monetary and financial areas, consistent with current EU practices.

— Revise and adopt the master plan on statistics with a view to enhancing the quality and broadening the scope of
statistics. Reinforce the collection and processing of agriculture statistics in line with EU standards and meth-
odology; implement HS nomenclature 2007.

Justice, freedom and security

V i s a , b o r d e r c o n t r o l , a s y l u m a n d m i g r a t i o n
— Develop institutional capacity in relation to visa policy and align visa policies with those of the EU.

— Strengthen integrated border management and ensure consistent implementation by all responsible bodies,

including civilian control.

— Adopt the asylum law and carry out the construction of the planned reception centres for asylum seekers and

refugees.

M o n e y l a u n d e r i n g
— Ensure efficient implementation and coordination of the anti-money-laundering legislation and strengthen the

financial intelligence unit.

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D r u g s
— Further develop the international cooperation capacity of the centre for fighting drugs and smuggling and

improve operational analysis capabilities, including the establishment of relevant databases.

— Develop a national strategy for combating drug abuse and trafficking, in line with the EU Drugs Strategy 2005 to
2012 and the EU Action Plan on Drugs 2005 to 2008, and develop a public awareness campaign on drugs.

— Establish standards relating to preventing the diversion of chemical precursors and other essential substances

towards the production of illicit drugs.

— Develop the capacity of relevant law enforcement authorities to combat drug abuse and trafficking.

P o l i c e
— Further strengthen the professional capacity of the police, by specialised training, development of intelligence and

risk analysis tools.

— Ensure the proper functioning of the police academy.

F i g h t a g a i n s t o r g a n i s e d c r i m e a n d t e r r o r i s m
— Establish efficient institutional mechanisms for inter-agency cooperation in the area of the fight against organised

crime and upgrade the capacity of the police department in the fight against organised crime.

— Upgrade capacity to use special investigative means in line with appropriate guarantees and strengthen criminal

intelligence.

— Adopt the legislation and develop the capacity to seize assets and proceeds of crime.

— Increase the efficiency of international cooperation and implementation of the relevant international conventions
on terrorism and preventing and fighting organised crime; improve cooperation and the exchange of information
between all branches of the security services and with other states; prevent the financing and preparation of acts
of terrorism.

T r a f f i c k i n g i n h u m a n b e i n g s
— Continue strengthening the fight against the trafficking of human beings, including the provision of adequate

assistance and protection to the victims.

P r o t e c t i o n o f p e r s o n a l d a t a
— Adopt legislation on the protection of personal data and set up an independent data protection supervisory

authority.

— Take the necessary steps to prepare for the conclusion of a cooperation agreement with Europol.

3.2. MEDIUM-TERM PRIORITIES

Political criteria

Democracy and the rule of law

C o n s t i t u t i o n a l
— Fully implement the new constitution adopted in line with European standards.

i s s u e s

E l e c t i o n s
— Continue providing for high standards regarding the organisation of elections; enforce a transparent framework

for campaign financing.

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P a r l i a m e n t
— Continue strengthening the capacity of the parliament in all areas, in particular in relation to the adoption of the

EU acquis.

P u b l i c a d m i n i s t r a t i o n
— Further strengthen European integration units in the relevant ministries and coordination mechanisms on EU

matters including on SAA and IPA.

— Develop principles, procedures and relevant administrative capacity in view of establishing a decentralised

implementation system for management of EU assistance in line with EU requirements.

— Further strengthen the authority for human resources management. Strengthen policy-making process. Continue

implementing decentralisation reform.

— Further strengthen transparent recruitment, professionalism and accountability, including through codes of ethics

and guidelines.

— Continue the process of restructuring and reform of the armed forces, including, as appropriate, reducing their

numbers.

J u d i c i a l s y s t e m
— Ensure adequate functioning of the judicial training centre. Implement the IT strategy for the judiciary.

— Complete the strategic framework for judicial reform;

implement the reform plans;

implement transparent

recruitment and career management procedures; continue upgrading the resources of the judicial system.

— Continue upgrading the efficiency of the prosecution system.

— Continue upgrading the capacity of the Ministry of Justice for international judicial cooperation.

A n t i - c o r r u p t i o n p o l i c y
— Continue with determination the prevention of and fight against corruption at all levels, and provide increased
means for prevention and suppression of corruption. Ensure full compliance with the UN Convention on the
fight against corruption and with the relevant Council of Europe conventions.

— Establish effective procedures for the detection, treatment and follow-up of cases of suspected fraud and other

irregularities affecting national and international funds, including EU funds.

H u m a n r i g h t s a n d t h e p r o t e c t i o n o f m i n o r i t i e s
— Implement the anti-discrimination legislation and legislation on minority rights.

— Continue improving prison conditions.

— Prevent and address ill-treatment by enforcement agencies.

— Ensure the inclusion of disabled or minority children in mainstream education; reform the childcare system.

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— Continue to promote integration of minorities and good inter-ethnic relations.

— Continue cooperation with NGOs at government and municipal level.

i s s u e s a n d i n t e r n a t i o n a l o b l i g a t i o n s

R e g i o n a l
— Facilitate integration for refugees who choose not to return. Implement the national strategy on refugees as part

of a comprehensive strategy on social inclusion and social integration.

— Continue implementing regional cooperation arrangements.

Economic criteria
— Strengthen macroeconomic stability by continuing fiscal adjustment and consolidation to further reduce external

imbalances.

— Increase efficiency of government expenditure, notably by improving the budgetary process and financial
management at central and local government level. Increase capacity for budget preparation and execution to
enable prioritisation.

— Ensure a more flexible labour market through a gradual liberalisation.

— Strengthen the business environment to promote the development of the private sector and employment. In

particular streamline judicial procedures in commercial matters, especially for bankruptcy cases.

— Design and start applying an integrated research policy to support research and development activities.

European standards

Internal market

F r e e m o v e m e n t o f c a p i t a l
— Fully liberalise capital movements and payments in line with EU principles.

F r e e m o v e m e n t o f g o o d s
— Further develop standardisation, in particular through the adoption of European standards. Continue transposing
the New and Global Approach and Old Approach directives. Establish a market surveillance structure as required
by the acquis.

C u s t o m s a n d t a x a t i o n
— Ensure continued approximation of Montenegrin customs and taxation legislation to the acquis, and further
increase the administrative capacity to implement customs legislation, and to fight against corruption, cross-
border crime and fiscal evasion.

— Improve transparency and the exchange of information with the Member States of the European Union in order

to facilitate the enforcement of measures preventing the avoidance or evasion of taxes.

— Establish a transparent exchange of information with Member States of the EU and with the Commission of the
European Communities in order to strengthen the enforcement measures preventing tax fraud, evasion and
avoidance.

C o m p e t i t i o n
— Continue strengthening the competition authority, including its functional independence.

— Continue strengthening the state aid framework and establish state aid control in line with the requirements of

the Stabilisation and Association Agreement.

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P u b l i c p r o c u r e m e n t
— Continue strengthening the public procurement regime,

including in the utilities sector and in relation to
concessions, by further aligning domestic legislation with the acquis and by upgrading the administrative
capacity of the public procurement agency, the review body and of contracting entities.

— Continue ensuring full transparency of procedures, regardless of the value of the contract concerned, and non-

discrimination between Montenegrin and EU suppliers.

I n t e l l e c t u a l p r o p e r t y l a w
— Ensure a level of protection similar to that provided by the EU, by aligning fully domestic legislation with the
acquis on intellectual property rights, and by continuously strengthening administrative capacity and enforcement
by all relevant public authorities, including border services, law enforcement agencies and the judiciary.

F i n a n c i a l s e r v i c e s
— Establish a comprehensive regulatory and supervisory framework for financial institutions and markets in line

with EU principles.

C o m p a n y l a w
— Start aligning financial reporting requirements with the acquis and ensure their effective enforcement.

E m p l o y m e n t a n d s o c i a l p o l i c i e s
— Further upgrade the policy formulation and monitoring capacities of the Ministry of Labour and Social Welfare,
with emphasis on labour market integration of young people, women and vulnerable groups and on modern-
ising social policies; further upgrade performance management of active employment measures implemented by
the Montenegrin employment service.

Sectoral policies

I n d u s t r y a n d S M E s
— Ensure the European Charter for Small Enterprises is fully implemented.

— Start introducing regulatory impact assessments. Further improve access to finance and develop business support

structures (clusters, incubators, business and technology parks).

A g r i c u l t u r e a n d f i s h e r i e s
— Further administrative capacities for policy formulation and implementation in the agricultural and rural devel-

opment sector. Design and start implementing a rural development policy.

— Strengthen institutional capacity for food safety. Prepare a programme for upgrading food processing estab-
lishments to meet EU requirements. Start action with a view to identification of sheep and goats and registration
of their movements. Start action to ensure efficient control of domestic plant production,
in particular for
products subject to specific EU requirements.

— Take measures to ensure that the fisheries policy moves closer to EU standards, in particular in the areas of

resource management, inspection and control and in market and structural policies.

— Continue ensuring protection of the geographical

indications and designations of origin registered in the
Community pursuant to Council Regulation (EC) No 510/2006 and its subsequent amendments. Update the
list of protected geographical indications and designations of origin in line with developments of the EU acquis in
this area.

E n v i r o n m e n t
— Continue the approximation of Montenegrin legislation to EU legislation and standards, notably legislation on air

pollution, water and chemicals.

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— Begin implementing the land use plan and the overall environment protection strategy. Begin implementing the
sustainable development strategy and other sectoral strategies (integrated coastal zone management, biodiversity,
climate change). Ensure a viable financial framework for implementing a mid- to long-term environmental
protection policy.

— Ratify and start implementing the Kyoto protocol.

— Continue strengthening the administrative capacity of ministries and bodies in charge of environmental planning,

permitting, inspecting, enforcement and monitoring, as well as project management.

T r a n s p o r t p o l i c y
— Strengthen capacity building, including project preparation for large investments. Continue to earmark sufficient

resources for the maintenance of transport infrastructures and institutions.

— Implement international commitments under International Maritime Organisation Conventions and improve

maritime safety conditions of the fleet in the light of the Paris Memorandum of Understanding.

E n e r g y
— Adopt and implement a long term strategy for an environmentally sustainable energy policy.

— Continue to implement regional and international commitments in this area in view of establishing a competitive

regional energy market.

— Become party to international nuclear safety conventions to which Euratom is already a Contracting Party.

I n f o r m a t i o n s o c i e t y a n d m e d i a
— Finalise transposition into national legislation of the EU 2002 framework for electronic communications.

— Establish a competitive electronic communications market through progressive implementation of legislation, and

by applying competitive safeguards and addressing any existing market entry barriers.

— Maintain the independence of the regulatory authorities and ensure there are sufficient resources and expertise to

execute their tasks.

— Fully align legislation to the audiovisual acquis.

F i n a n c i a l c o n t r o l
— Develop and implement the principles of decentralised managerial accountability and functionally independent

internal audit in accordance with the internationally accepted standards and EU best practice.

— Strengthen the operational capacity, and the functional and financial independence of the State audit Office.

— Develop procedures and administrative capacities to ensure effective protection of the EU's financial interests.

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S t a t i s t i c s
— Continue developing reliable economic statistics. Build up institutional capacity to produce and publish basic
statistical data harmonised with European standards in the area of business statistics, labour market statistics and
national accounts.

— Fully include local government in general government accounts.

Justice, freedom and security

V i s a , b o r d e r c o n t r o l , a s y l u m a n d m i g r a t i o n
— Develop the technical

the Integrated Border
infrastructure and human resource capacities to implement
Management policy, including strengthening the border police and the customs services. Improve cross-border
facilitations through new border posts.

— Further align visa policy with EU legislation and practice.

D r u g s
— Strengthen inter-agency and international cooperation and further develop the capacity of relevant law enfor-

cement authorities to combat drug trafficking.

P o l i c e
— Continue restructuring; ensure accountability; reform police education; ensure cooperation among law enfor-

cement agencies.

F i g h t a g a i n s t o r g a n i s e d c r i m e a n d t e r r o r i s m
— Develop an effective system of witness protection, which also incorporates regional elements.

— Reinforce the fight against economic and financial crime (including money-laundering and counterfeiting of

currencies), fraud and corruption, and improve the relevant legislation.

— Facilitate the placement of liaison officers, seconded from EU Member States in the relevant state bodies involved
in the fight against organised crime. Implement the Palermo Convention and its Protocols on transnational
organised crime and the applicable international standards on financial and economic crime.

— Increase administrative and judicial capacity to implement the criminal code as regards organised crime. Further
strengthen the unit for the fight against organised crime in the Ministry of the Interior, and ensure coordination
of all the enforcement bodies, including the further development of appropriate criminal intelligence capacity.

— Reinforce the fight against economic and financial crime (including the fight against counterfeiting of both cash
and non-cash means of payment) and upgrade institutional and administrative capacity to deal with related
challenges.

P r o t e c t i o n o f p e r s o n a l d a t a
— Ensure the smooth functioning of the data protection supervisory authority.

— Ensure the capacity of State authorities, in particular law enforcement bodies, to implement the legislation on

protection of personal data.

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4.

PROGRAMMING

Community assistance under the Stabilisation and Association Process to the western Balkan countries will be
provided under the existing financial instruments, in particular under Council Regulation (EC) No 1085/2006 of
17 July 2006 establishing an Instrument for Pre-Accession Assistance (IPA) (1). Montenegro can thus have access to
funding from multi-country and horizontal programmes.

5. CONDITIONALITY

Community assistance to the western Balkan countries is conditional on progress in satisfying the Copenhagen
criteria as well as progress in meeting the specific priorities of this European Partnership. Failure to respect these
conditions could lead the Council to take appropriate measures on the basis of Article 21 of Regulation (EC) No
1085/2006. Community assistance is also subject to the conditions defined by the Council in its Conclusions of 29
April 1997, in particular as regards the recipients' undertaking to carry out democratic, economic and institutional
reforms.

6. MONITORING

The implementation of the European Partnership shall be examined through the mechanisms established under the
Stabilisation and Association Process, notably the annual reports presented by the Commission of the European
Communities.

(1) OJ L 210, 31.7.2006, p. 82.