COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Commission Opinion on Montenegro's application for membership of the European Union
Date: 2010-11-09
Institutions: European Commission
Subjects: European Commission, Montenegro, accession to the European Union

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EUROPEAN COMMISSION 

Brussels, 9.11.2010 
COM(2010) 670 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

Commission Opinion on Montenegro's application for membership of the European 
Union 

{SEC(2010) 1334 final} 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

Commission Opinion on Montenegro's application for membership of the European 
Union 

A. 

a) 

INTRODUCTION 

Application for membership 

Montenegro presented its application for membership of the European Union on 15 December 
2008.  Subsequently,  on  23  April  2009  the  Council  of  the  European  Union  requested  the 
Commission to submit its opinion on this application, in line with the procedure laid down in 
Article  49  of  the  Treaty  on  European  Union,  which  states:  “Any  European  State  which 
respects the values referred to in Article 2 and is committed to promoting them may apply to 
become a member of the Union. The European Parliament and national Parliaments shall be 
notified of this application. The applicant State shall address its application to the Council, 
which shall act unanimously after consulting the Commission and after receiving the consent 
of  the  European  Parliament,  which  shall  act  by  a  majority  of  its  component  members.  The 
conditions of eligibility agreed upon by the European Council shall be taken into account.” 

Article  2  states  that  ‘the  Union  is  founded  on  the  values  of  respect  for  human  dignity, 
freedom,  democracy,  equality,  the  rule  of  law  and  respect  for  human  rights,  including  the 
rights of persons belonging to minorities. These values are common to the Member States in a 
society  in  which  pluralism,  non-discrimination,  tolerance,  justice,  solidarity  and  equality 
between women and men prevail.’ 

This is the legal framework within which the Commission submits the present Opinion.  

The Feira European Council in June 2000 had acknowledged that Western Balkan countries 
participating  in  the  Stabilisation  and  Association  Process  were  'potential  candidates'  for  EU 
membership.  The  European  perspective  of  these  countries  was  further  confirmed  by  the 
Thessaloniki  European  Council  in  June  2003  which  endorsed  the  "Thessaloniki  Agenda  for 
the  Western  Balkans".  This  agenda  remains  the  cornerstone  of  the  EU  policy  towards  the 
region.  

The European Council of December 2006 renewed the EU's commitment "that the future of 
the Western Balkans lies in the European Union" and reiterated that "each country's progress 
towards the European Union depends on its individual efforts to comply with the Copenhagen 
criteria  and  the  conditionality  of  the  Stabilisation  and  Association  Process.  A  country's 
satisfactory  track-record  in  implementing  its  obligations  under  a  Stabilisation  and 
Association Agreement (SAA), including trade related provisions, is an essential element for 
the  EU  to  consider  any  membership  application".  At  the  Sarajevo  EU-Western  Balkans 
ministerial  meeting  on  2  June  2010,  the  EU  reiterated  its  unequivocal  commitment  to  the 
European perspective  of the Western  Balkans and stressed that the future of these countries 
lies in the European Union. 

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In line with the Treaty requirements, the current assessment is made in terms of the conditions 
of eligibility laid down by the European Council. In Copenhagen in June 1993, the European 
Council concluded that:  

"Accession  will  take  place  as  soon  as  a  country  is  able  to  assume  the  obligations  of 
membership by satisfying the economic and political conditions required. 

Membership requires: 

–  that  the  candidate  country  has  achieved  stability  of  institutions  guaranteeing  democracy, 

the rule of law, human rights and respect for and protection of minorities; 

–  the  existence  of  a  functioning  market  economy,  as  well  as  the  capacity  to  cope  with 

competitive pressure and market forces within the Union; 

–  the  ability  to  take  on  the  obligations  of  membership  including  adherence  to  the  aims  of 

political, economic and monetary union". 

The Union’s capacity to absorb new members, while maintaining the momentum of European 
integration, is also an important consideration in the general interest of both the Union and the 
candidate countries. 

In  December  1995,  the  Madrid  European  Council  referred  to  the  need  "to  create  the 
conditions for the gradual, harmonious integration of [the applicant] countries, particularly 
through  the  development  of  the  market  economy,  the  adjustment  of  their  administrative 
structures and the creation of a stable economic and monetary environment". 

The Stabilisation and Association Process (SAP) conditionality was defined by the Council on 
31 May 1999. It includes co-operation with the International Criminal Tribunal for the former 
Yugoslavia (ICTY) and regional co-operation. These conditions are a fundamental element of 
the SAP and are integrated into the SAA with Montenegro, which entered into force in May 
2010. 

In  December  2006,  the  European  Council  agreed  that  "the  enlargement  strategy  based  on 
consolidation,  conditionality  and  communication,  combined  with  the  EU’s  capacity  to 
integrate new members, forms the basis for a renewed consensus on enlargement". 

In the present Opinion, the Commission analyses Montenegro’s application on the basis of the 
country’s capacity to meet the criteria, set by the Copenhagen European Council of 1993 as 
well  as  the  conditionality  of  the  Stabilisation  and  Association  Process.  Montenegro's  track-
record in implementing its obligations under the SAA, including trade related provisions, is 
also being examined. The Opinion has been prepared following a methodology similar to that 
used in previous Opinions with some adaptations reflecting the elements included in the 2006 
'renewed consensus on enlargement'. The Commission organised a number of expert missions 
in  Montenegro  concentrated  mainly  in  the  fields  covered  by  the  political  criteria.  This 
approach  allowed  for  an  assessment  of  the  administrative  capacities  of  Montenegrin 
institutions  and  of  the  way  legislation  is  implemented.  It  also  helped  to  better  identify 
remaining challenges and priorities for future action. The Commission has analysed both the 
present  situation  and  medium-term  prospects.  For  the  purpose  of  this  Opinion  and  without 
prejudging any future date of accession, the medium-term perspective has been defined as a 
period of five years. 

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The  detailed  analysis  on  which  this  Opinion  is  based  is  contained  in  a  separate  document 
(Analytical  Report  accompanying  the  Opinion  on  Montenegro's  application  for  membership 
of the European Union)1. In line with the renewed consensus on enlargement, the analytical 
report provides initial estimates of the impact of the future accession of Montenegro in some 
key policy areas. The Commission provides more detailed impact assessments for these policy 
areas  at  later  stages  of  the  pre-accession  process.  In  addition,  the  EU  accession  treaty  for 
Montenegro  would  involve  a  technical  adaptation  of  the  EU  institutions  in  the  light  of  the 
Treaty on the European Union.  

b) 

Relations between the EU and Montenegro 

Montenegro  declared  its  independence  on  3  June  2006,  following  a  referendum  held  on  21 
May 2006. In June 2006 the EU decided to establish relations with Montenegro as a sovereign 
state and all EU Member States recognised Montenegro's independence.  

In  October  2007  a  Stabilisation  and  Association  Agreement  between  the  European 
Communities and their Member States and Montenegro2 and an Interim Agreement on trade 
and trade-related matters were signed. The Interim Agreement entered into force in January 
2008 and the Stabilisation and Association Agreement in May 2010 after its ratification by the 
parties.  Montenegro  has,  overall,  smoothly  implemented  obligations  under  the  Stabilisation 
and Association Agreement, including its trade-related provisions. Whenever problems arose, 
Montenegro has been open and constructive to identify means to address them. 

A European Partnership with Montenegro was adopted by the Council on 22 January 2007.3 

Political  dialogue  meetings  at  ministerial  level  between  the  EU  and  Montenegro  have  been 
held  since  February  2007.  Policy  dialogue  between  the  European  Commission  and 
Montenegro  has  been  taking  place  since  the  country's  independence.  The  Joint  Committee 
established  under  the  Interim  Agreement  met  twice  since  the  entry  into  force  of  the 
agreement.  The  first  meeting  of  the  Stabilisation  and  Association  Council  was  held  in  June 
2010.  Annual  inter-parliamentary  meetings  between  representatives  of  the  European 
Parliament  and  the  Parliament  of  Montenegro  have  been  held  since  2006.  and  the  first 
meeting of the Stabilisation and Association Parliamentary Committee was held in September 
2010. 

Visa liberalisation for Montenegrin citizens was granted by the Council after consultation of 
the European Parliament, as of 19 December 2009. It applies to holders of biometric passports 
travelling to the Schengen area. This decision was based on substantial progress in the areas 
of  justice,  freedom  and  security  and  fulfilment  of  the  specific  conditions  set  out  in  the 
roadmap  for  visa  liberalisation.  An  agreement  on  readmission  between  the  European  Union 
and Montenegro is in force since January 2008. 

Montenegro signed the Energy Community Treaty in October 2005 subsequently becoming a 
full  member  of  the  Energy  Community  of  South  East  Europe.  Montenegro  signed  the 
European Common Aviation Area (ECAA) agreement in June 2006. 

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SEC(2010) 1334 of 09.11.2010. 
OJ L 108, 29.4.2010, p. 1. 
OJ L20, 27.1.2007, p. 16. 

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Montenegro  takes  an  active  part  in  the  EU  economic  and  fiscal  surveillance  and  reporting 
arrangements applying to potential candidate countries since 2006. 

In June 2008 the Government of Montenegro adopted its National Programme for Integration 
in the European Union for the period of 2008-2012. This document represents a plan for the 
adoption of the acquis, providing for short-term and medium-term priorities. 

The European Union is Montenegro's most important trading partner. In 2009, more than 40% 
of Montenegro’s imports came from the EU and 48% of its exports went to the EU.  

Montenegro  has  received  EU  financial  assistance  since  1998.  Overall,  between  1998  and 
2010 the EU committed over € 408.5 million to Montenegro. From 1998 to 2006, Montenegro 
benefited from EU CARDS assistance worth € 277.2 million. Since 2007, CARDS has been 
replaced by the Instrument of Pre-Accession Assistance (IPA), under which Montenegro has 
received assistance worth € 131.3 million from  2007 to 2010. IPA aims to support the reform 
process  in  the  country  in  the  context  of  European  integration  with  a  focus  on  institution 
building,  introduction  of  the  EU  acquis  and  improvement  of  socio-economic  conditions  as 
well as environmental protection and sustainable development. Financial support is also being 
provided to civil society. 

The Stabilisation and Association Agreement provides for Montenegro's participation in EU 
Programmes.  Montenegro  actively  participates  in  three  EU  programmes  under  the  financial 
perspective  2007-2013:  the  7th  Framework  Programme  for  research  and  technological 
development,  in  the  Entrepreneurship  and  Innovation  Programme  (EIP)  and  the  Culture 
Programme.  IPA  funds  are  used  to  meet  part  of  the  costs  of  participation  in  the  three 
programmes. 

B. 

CRITERIA FOR MEMBERSHIP 

1. 

POLITICAL CRITERIA 

The present assessment is made on the basis of the Copenhagen criteria related to the stability 
of  institutions  guaranteeing  democracy,  the  rule  of  law,  human  rights  and  respect  for  and 
protection of minorities and of the conditionality of the Stabilisation and Association Process. 

Montenegro  is  a  parliamentary  democracy  based  on  a  constitutional  and  legislative 
framework,  which  is  largely  in  line  with  European  principles  and  standards.  Montenegro 
managed  smoothly  the  referendum  on  its  independence  in  2006,  in  line  with  EU 
recommendations, on the basis of rules which were adopted by political consensus. Consensus 
among  political  parties  on  state-building  is  becoming  stronger.  There  is  also  political 
consensus with regard to membership to the European Union. However, while the country's 
legal  and  institutional  basis  is  broadly  in  place,  there  are  deficiencies  in  the  functioning  of 
democratic  institutions  and  shortcomings  in  implementation  of  the  legislation  persist.  The 
parliament's  overall  capacity  to  ensure  appropriate  oversight  of  the  government  remains 
limited. The separation of powers is not fully respected in the case of the judiciary. The public 
administration remains weak and highly politicised. 

Elections  in  Montenegro  have  generally  been  conducted  in  accordance  with  international 
standards for democratic elections. The last parliamentary elections held in March 2009 were 
assessed  by  OSCE-ODIHR  as  having  met  almost  all  international  standards,  but  remaining 

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shortcomings  need  to  be  addressed.  In  particular,  the  election  law  has  not  been  fully 
harmonised with the constitution. 

Montenegro has in recent years strengthened the legal and institutional framework of rule of 
law. However, implementation is deficient. The main concerns are related to the politicisation 
of  the  judiciary  and  shortcomings  in  the  functioning  of  law  enforcement  institutions,  in 
particular in fighting organised crime and corruption.  

Reforms  in  the  judiciary  are  being  pursued.  Achieved  results  include  the  setting  up  of  new 
institutions such as the judicial and prosecutorial councils and measures adopted to improve 
independence  and  efficiency.  However,  serious  concerns  remain  over  the  role  of  the 
parliament in appointing the judicial and prosecutorial councils and state prosecutors. There 
are also concerns over the efficiency and accountability of the judiciary.  

Montenegro  has  largely  put  in  place  the  legal  and  institutional  framework  needed  for 
combating corruption. However, corruption remains prevalent in many areas and constitutes a 
particularly  serious  problem.  Anti-corruption  legislation  is  not  consistently  implemented. 
Furthermore,  the  legal  frameworks  on  prevention of  conflict  of  interest  and  on  financing  of 
political parties and electoral campaigns have important deficiencies. Supervisory authorities 
lack  the  full  legal  powers  and  the  capacity  to  ensure  enforcement  of  the  legislation  on 
prevention of conflict of interest and on the control over the financing of political parties and 
election campaigns. There are also concerns regarding the supervision of public procurement, 
privatisation, spatial planning and construction permits. There is no consistent internal control 
to  monitor  corruption  and  ensure  accountability  and  respect  of  rule  of  law  within  the  state 
bodies. This applies in particular in areas such as tax administration and customs, the police 
and  judiciary  and  local  administration.  Investigation  capacities  and  law-enforcement  co-
ordination remain weak. Strong political will is needed to significantly improve performance 
in  combating  corruption.  The  track  record  of  investigations,  prosecutions  and  final 
convictions in corruption cases at all levels remains low.  

In  the  area  of  the  fight  against  organised  crime,  the  legal  framework  developed  by 
Montenegro  is  generally  adequate  and  capacities  have  improved.  However,  organised  crime 
remains a serious problem. Money laundering and drug-smuggling are key areas of concern. 
Law  enforcement  capacities  and  coordination  are  weak  and  implementation  track  records 
remain  limited.  Proactive  investigative  capacities  remain  inadequate.  Threat  assessment  and 
the  collection  and  processing  of  criminal  intelligence  are  unsatisfactory.  The  prosecution's 
capacity  to  fully  implement  the  new  Criminal  Procedure  Code  needs  to  be  ensured.  Further 
strengthening  of  cooperation  at  the  international  level  is  necessary,  including  with 
neighbouring countries. 

Montenegro's legal and policy framework regulating human rights and the respect for and 
protection  of  minorities  is  largely  in  place  and  broadly  corresponds  to  European  and 
international  standards.  The  institutional  framework  is  largely  adequate.  However,  there  are 
gaps  in  implementation  of  the  legislation  and existing  strategies  and  action  plans.  Increased 
awareness  and  sensitivity  of  the  administration,  police  and  the  judiciary  to  standards  in  this 
field are needed. 

Human rights are broadly respected in Montenegro. However there are concerns related to the 
effectiveness  of  anti-discrimination  policies,  freedom  of  expression  and  relations  with  the 
civil  society.  The  anti-discrimination  legal  framework  has  been  substantially  improved. 
However, in practice, Roma, Ashkali and Egyptian, persons with disabilities and lesbian, gay, 

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bisexual  and  transgendered  (LGBT)  persons  are  still  subject  to  discrimination,  including  on 
the  part  of  state  authorities.  The  implementation  mechanisms  for  preventing,  monitoring, 
sanctioning  and  prosecuting  discrimination  cases  need  to  be  strengthened.  The  July  2010 
Anti-discrimination law needs to be fully implemented. Gender equality is not fully ensured 
in  practice.  As  regards  freedom  of  media,  intimidation  of  journalists  and  disproportionate 
fines for defamation are a matter of concern. Legislation and practice on defamation needs to 
be  fully  aligned  with  the  jurisprudence  of  the  European  Court  of  Human  Rights.  The 
independence  of  media  regulator  needs  to  be  preserved.  As  regards  relations  with  civil 
society, the existing dialogue is not fully satisfactory. In some cases, the most critical NGOs 
have been exposed to political and administrative pressures. Domestic violence, ill-treatment 
and sub-standard prison conditions are also issues of concern. 

The  respect  for  and  protection  of  minorities  are  broadly  guaranteed.  However,  cooperation 
between  the  government  and  minority  councils  as  well  as  the  representation  of  persons 
belonging to minorities in public services, state authorities and local self-government bodies 
needs  to  be  improved.  The  access  of  Roma,  Ashkali  and  Egyptians  to  economic  and  social 
rights,  in  particular  education  and  employment,  is  unsatisfactory.  As  regards  displaced 
persons from Croatia, Bosnia and Herzegovina and Kosovo4, estimated at around 17,000, the 
Law on foreigners of 2009 allows for their access to the status of resident. The reduction of 
administrative taxes in July 2010 has created better conditions for their access to this status. 
Montenegrin authorities have also adopted in July 2010 transitional measures allowing access 
of displaced persons to social and economic rights in the period prior to acquiring the status of 
a  resident.  However  the  action  plan  on  displaced  persons  is  poorly  implemented  on  the 
ground. The number of persons who have been granted resident status remains low, notably 
due to the difficulties they face in providing all documents required. The laws guaranteeing 
access  to  economic  and  social  rights  need  to  be  harmonised  with  the  Law  on  foreigners. 
Living  conditions  in  the  Konik  camp  sheltering  mainly  displaced  Roma,  Ashkali  and 
Egyptians from Kosovo are a matter of serious concern.  

Montenegro  broadly  satisfies  the  Stabilisation  and  Association  Process  conditions. 
Cooperation  with  the  International  Criminal  Tribunal  for  the  former  Yugoslavia  is 
satisfactory.  The  country  is  strongly  committed  to  regional  cooperation  and  plays  a 
constructive  regional  role.  It  participates  actively  in  regional  initiatives.  Bilateral  relations 
with all neighbours are generally good and developing further. Relations with Serbia, after the 
dissolution  of  the  State  Union,  are  generally  good,  however  some  pending  issues  remain. 
Delimitation of borders  with  neighbouring countries has  not been  finalised. Building  on the 
political  agreement  achieved  so  far,  Montenegro  needs  to  finalise  together  with  Croatia  the 
joint  submission  to  the  International  Court  of  Justice  (ICJ)  of  the  Prevlaka  peninsula  case. 
Montenegro is a party to the Rome Statute. However, the country ratified a bilateral immunity 
agreement with the United States regarding the International Criminal Court which is not in 
line with the EU common positions and guiding principles. The country needs to align with 
the EU position. 

4 

Under UNSCR 1244/1999. 

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2. 

ECONOMIC CRITERIA 

The  present  assessment  is  made  on  the  basis  of  the  Copenhagen  criteria  related  to  the 
existence  of  a  functioning  market  economy,  as  well  as  the  capacity  to  cope  with 
competitive pressure and market forces within the Union. 

Montenegro achieved a broad domestic consensus on the fundamentals of economic policy as 
well as a track record in the implementation of economic reforms. Economic stability reached 
a degree considered sufficient to allow economic operators to make decisions in a climate of 
predictability. This has resulted in high growth rates which were on average above 5% in the 
years  preceding  the  economic  crisis.  Budget  deficit  and  public  debt  have  been  kept  at 
moderate  levels.  Unemployment  has  been  reduced  to  below  12%  in  2009  and  labour 
legislation  modernised.  The  free  interplay  of  market  forces  has  been  developing  in  the  last 
decade  through  privatisations  and  the  abolition  of  controls  on  prices,  foreign  exchange  and 
trade regimes. Foreign investments were attracted by the improved business environment. The 
restructuring  process  of  strategic  enterprises  and  sectors  is  underway.  State  aid  has  been 
historically low, often related to privatisation clauses or supporting distressed companies. The 
Montenegrin  economy  remains  very  open  and  the  level  of  trade  and  investment  integration 
with the EU and the Western Balkan region is high. 

However, after years of strong capital inflows supporting rapid economic growth, the global 
crisis  unveiled  significant  internal  and  external  imbalances  exposing  the  country  and 
threatening macroeconomic stability. The crisis also revealed vulnerabilities in the regulation 
and supervision of the banking sector, calling for critical recapitalisation of banks. In absence 
of  fiscal  space,  the  government  could  mainly  react  by  providing  guarantees  to  firms  in 
difficulties,  which 
the  growing  public  debt.  Persisting 
unemployment,  and  informal  employment,  point  to  weaknesses  in  the  education  and 
vocational training systems as well as to some labour market rigidities. The country has a still 
insufficient energy and transport infrastructure. Small businesses in particular are confronted 
with  scarce  and  expensive  financing.  Persisting  weaknesses  in  the  rule  of  law  negatively 
affect the business environment. The informal sector remains an important challenge.  

to  materialise 

threaten 

in 

3. 

ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

The  ability  of  Montenegro  to  assume  the  obligations  of  membership  has  been  evaluated 
according to the following indicators: 

–  the obligations set out in the Stabilisation and Association Agreement; 

–  progress with adoption, implementation and enforcement of the EU acquis. 

Montenegro  has  overall  smoothly  implemented  the  obligations  under  the  Stabilisation  and 
Association  Agreement.  However,  there  have  been  some  gaps  in  certain  areas  (state  aids, 
transit traffic).  

Montenegro adopted in 2008 a National Programme for Integration, which is a comprehensive 
and ambitious plan providing for the approximation of national legislation to the EU acquis. 
Important  progress  in  adopting  legislation  aligned  with  the  EU  acquis,  particularly  in  some 
areas  of  the  internal  market,  trade-related  provisions,  customs  and  taxation  has  been  made. 
However  the  country  faces  major  challenges  in  implementing  and  enforcing  legislation. 
Administrative  and  judicial  capacities  remain  overall  limited  and  the  country  will  need  to 

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make sustained efforts to strengthen them in order to assume the obligations of membership in 
the medium-term. 

If it continues its efforts Montenegro should, in the medium term, have the capacity to comply 
with the requirements of the acquis in the following fields: 

–  Taxation 

–  Enterprise and industrial policy 

–  Science and research  

–  Education and culture 

–  Customs union 

–  External relations  

–  Foreign, security and defence policy 

–  Financial and budgetary provisions 

Montenegro  will  have  to  undertake  additional  efforts  to  align  with  the  acquis  and  to 
implement it effectively in the medium term in the following fields: 

–  Freedom of movement for workers 

–  Right of establishment and freedom to provide services 

–  Free movement of capital 

–  Public procurement 

–  Company law  

–  Competition policy 

–  Financial services 

–  Information society and media  

–  Transport policy 

–  Energy  

–  Economic and monetary policy 

–  Trans-European networks 

–  Consumer and Health Protection 

Further adjustments of the legal and institutional framework and in particular strengthening of 
administrative and implementation capacities are needed in the above areas. 

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Montenegro will have to make considerable and sustained efforts to align with the EU acquis 
and to implement it effectively in the medium term in the following fields: 

–  Free movement of goods 

–  Intellectual property law 

–  Agriculture and rural development 

–  Food safety, veterinary and phyto-sanitary policy 

–  Fisheries  

–  Statistics 

–  Social policy and employment 

–  Regional Policy and coordination of structural instruments 

–  Judiciary and fundamental rights  

–  Justice, freedom and security 

–  Financial control 

Considerable  adjustments  of 
legal  and 
strengthening of administrative and implementation capacities are needed in these areas. 

institutional  framework  and  significant 

the 

Regarding  environment,  further  coordinated  and  significant  efforts  will  be  needed  to  align 
with  the  EU  acquis  and  to  implement  it  effectively.  These  should  include  substantial 
investments  and  strengthening  administrative  capacity  for  the  enforcement  of  legislation  in 
order  to  achieve  compliance  on  the  most  important  issues,  including  climate  change,  in  the 
medium term. Full compliance with the acquis could be achieved only in the long term and 
would necessitate increased levels of investment. 

C. 

CONCLUSION AND RECOMMENDATION 

Montenegro  has  made  progress  towards  fulfilling  the  criteria  related  to  the  stability  of 
institutions  guaranteeing  democracy,  the  rule  of  law,  human  rights  and  respect  for  and 
protection  of  minorities,  set  by  the  Copenhagen  European  Council  in  1993,  as  well  as  the 
conditions  of  the  Stabilisation  and  Association  Process.  Nonetheless,  further  efforts  are 
needed. 

As  regards 
the  economic  criteria,  Montenegro  has  achieved  a  certain  degree  of 
macroeconomic stability. However, to become a  functioning market  economy, as set out by 
the 1993 Copenhagen European Council, Montenegro needs to address internal and external 
imbalances, as well as existing weaknesses, notably in the financial sector and the functioning 
of labour markets, and strengthen the rule of law. In order to enable it to cope in the medium 
term  with  competitive  pressure  and  market  forces  within  the  Union,  Montenegro  needs  to 
strengthen  its  physical  infrastructure  and  human  capital  and  to  continue  implementing 
structural reforms. 

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Montenegro's  track  record  in  implementing  its  obligations  under  the  Stabilisation  and 
Association Agreement is positive overall. 

Montenegro would be in a position to take on the obligations of membership in the medium 
term,  in  most  of  the  acquis  fields,  provided  that  the  alignment  process  continues  and  that, 
considerable  and  sustained  further  efforts  are  made  to  ensure  the  implementation  and 
enforcement of legislation. Particular attention needs to be paid to the areas of free movement 
of goods, intellectual property law, agriculture and rural development, food safety, veterinary 
and  phyto-sanitary  policy,  fisheries,  statistics,  social  policy  and  employment,  regional  policy 
and coordination of structural instruments, judiciary and fundamental rights, justice, freedom 
and  security  and  financial  control.  Full  compliance  with  the  acquis  in  the  field  of  the 
environment could be achieved only in the long term and would necessitate increased levels 
of investment; efforts in this area need to be accelerated. 

Montenegro's accession would have a limited overall impact on European Union policies and 
would not affect the Union's capacity to maintain and deepen its own development. 

The Commission considers that negotiations for accession to the European Union should be 
opened with Montenegro once the country has achieved the necessary degree of compliance 
with the membership criteria and in particular the Copenhagen political criteria requiring the 
stability of institutions guaranteeing notably the rule of law. In this regard Montenegro needs 
in particular to meet the following key priorities:  

–  Improve  the  legislative  framework  for  elections  in  line  with  the  recommendations  of  the 
OSCE-ODIHR  and  the  Venice  Commission;  strengthen  the  Parliament’s  legislative  and 
oversight role.  

–  Complete essential steps in public administration reform including amendments to the law 
on general administrative procedure and the law on civil servants and state employees and 
the  strengthening  of  the  Human  Resources  Management  Authority  and  the  State  Audit 
Institution,  with  a  view  to  enhancing  professionalism  and  de-politicisation  of  public 
administration  and  to  strengthening  a  transparent,  merit-based  approach  to  appointments 
and promotions. 

–  Strengthen rule of law, in particular through de-politicised and merit-based  appointments 
of  members  of  the  judicial  and  prosecutorial councils  and  of  state  prosecutors  as  well  as 
through  reinforcement  of  the  independence,  autonomy,  efficiency  and  accountability  of 
judges and prosecutors.  

–  Improve  the  anti-corruption  legal  framework  and  implement  the  government's  anti-
corruption  strategy  and  action  plan;  establish  a  solid  track  record  of  proactive 
investigations, prosecutions and convictions in corruption cases at all levels. 

–  Strengthen  the  fight  against  organised  crime  based  on  threat  assessment  and  proactive 
investigations, increased cooperation with regional and EU partners, efficient processing of 
criminal intelligence and enhanced law enforcement capacities and coordination. Develop 
a solid track-record in this area.  

–  Enhance media freedom notably by aligning with the case-law of the European Court for 

Human Rights on defamation and strengthen cooperation with civil society. 

EN 

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–  Implement  the  legal  and  policy  framework  on  anti-discrimination  in  line  with  European 
and  international  standards;  guarantee  the  legal  status  of  displaced  persons,  in  particular 
Roma,  Ashkali  and  Egyptians,  and  ensure  respect  for  their  rights.  This  will  include  the 
adoption and implementation of a sustainable strategy for the closure of the Konik camp. 

Montenegro  is  encouraged  to  continue  its  constructive  engagement  in  regional  cooperation 
and  in  strengthening  bilateral  relations  with  neighbouring  countries.  Outstanding  bilateral 
issues need to be addressed. The SAA needs to continue to be implemented smoothly; in this 
context, due attention to addressing identified gaps in areas such state aids and transit traffic is 
required.  In  addition,  the  country  is  strongly  encouraged  to  continue  enhancing  its 
administrative  capacity  across  the  board.  Particular  efforts  are  required  as  regards  the 
effectiveness  and  impartiality  of  the  state  administration  in  sensitive  areas  such  as 
environmental  protection.  Cases  of  violence  and  intimidation  against  journalists  and  NGO 
activists  need  to  be  properly  prosecuted.  The  issues  of  domestic  violence,  ill-treatment  and 
sub-standard prison conditions need to be addressed. 

In the light of the progress made so far, the Commission recommends that the Council should 
grant Montenegro the status of candidate country.  

The  Commission  will  monitor  progress  of  the  necessary  reforms  within  the  institutional 
framework  of  the  Stabilisation  and  Association  Agreement  and  continue  to  support  efforts 
through the IPA financial instrument. The Commission will present a report on Montenegro's 
progress  in  the  2011  enlargement  package.  This  report  will  focus  in  particular  on  the 
implementation of the key priorities which need to be addressed with a view to the opening of 
accession negotiations.  

EN 

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   EN