REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON MONTENEGRO'S PROGRESS IN THE IMPLEMENTATION OF REFORMS
Date: 2012-05-22
Institutions: European Commission
Subjects: Montenegro, accession criteria, administrative reform, corruption, electoral reform, fight against crime, fundamental rights, judicial cooperation, judicial reform, social integration

EUROPEAN COMMISSION 

Brussels, 22.5.2012  
COM(2012) 222 final 

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

ON MONTENEGRO'S PROGRESS IN THE IMPLEMENTATION OF REFORMS 

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REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

ON MONTENEGRO'S PROGRESS IN THE IMPLEMENTATION OF REFORMS 

INTRODUCTION 

1. 
In  its  Opinion1  on  Montenegro's  application  for  membership,  the  European  Commission 
identified seven key priorities2 which had to be fulfilled for the Commission to recommend 
the  opening  of  accession  negotiations  with  Montenegro.  In  its  2011  Enlargement  Strategy 
Paper3,  based  on  the  analysis  in  the  2011  Progress  Report4,  the  Commission  concluded  that 
Montenegro has successfully addressed the key priorities set out in 2010 by the EU as a pre-
requisite to opening accession negotiations. The December 2011 European Council welcomed 
the Commission's assessment on the good progress made by Montenegro, which has achieved 
overall satisfactory results. With a view to opening accession negotiations with Montenegro in 
June 2012, the European Council tasked the Council to examine Montenegro's progress in the 
implementation of reforms, with particular focus on the area of rule of law and fundamental 
rights, especially the fight against corruption and organised crime, on the basis of a report to 
be presented by the Commission in the first half of 2012. 

Following  the  European  Council  conclusions  of  December  2011,  the  Commission  has 
initiated the screening process for the chapters on judiciary and fundamental rights as well as 
on  justice,  freedom  and  security.  In  light  of  the  new  approach  for  both  chapters,  this  will 
allow  the  issues  identified  under  both  chapters  to  be  addressed  at  an  early  stage  of  the 
accession negotiations. 

This  report  assesses  the  additional  progress  made  by  Montenegro  in  the  period  from  1 
September  2011  in  the  implementation  of  reforms  linked  to  the  key  priorities.  During  this 
period, Montenegro achieved further progress in strengthening the work of the parliament, the 
professionalism  and  de-politicisation  of  public  administration,  media  freedom  and 
cooperation with the civil society. The process of constitutional revision aiming at providing 
solid  guarantees  for  the  independence  of  the  judiciary  is  ongoing.  Montenegro  has  further 
developed  its  track  record  in  combating  corruption  and  organised  crime.  Implementation  of 
recently  adopted  anti-discrimination  and  anti-corruption  measures  has  started  and  further 
progress has been made with respect to displaced persons and Roma, Ashkali and Egyptians. 
Montenegro continued to play a constructive role in the region and to implement smoothly its 
Stabilisation  and  Association  Agreement.  Montenegro  will  need  to  sustain  its  efforts, 
however, to further develop a track record in the area of rule of law, in particular with respect 
to  high-level  corruption  and  organised  crime  cases,  and  to  ensure  a  safe  environment  for 
investigative journalism.  

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COM(2010) 670 final. 
The  key  priorities  concern  the  following  areas:  legislative  framework  for  elections  and  Parliament's 
legislative  and  oversight  role;  public  administration  reform;  judicial  reform;  fight  against  corruption; 
fight against organised crime; media freedom and cooperation with civil society; implementation of the 
anti-discrimination  framework  and  the  situation  of  displaced  persons.  For  the  full  text  of  the  key 
priorities, please see COM (2010) 670. 
COM(2011) 666 final. 
SEC(2011) 1204 final. 

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The  assessment  in  this  report  is  based  on  information  gathered  and  analysed  by  the 
Commission,  including  input  provided  by  Montenegro,  the  findings  of  peer-assessment 
missions  as  well  as  information  shared  by  Member  States,  international  and  civil  society 
organisations in their regular contacts with the Commission. 

2. 

IMPLEMENTATION OF REFORMS 

Parliament 

Amendments to the Law on the election of municipal councillors and members of parliament 
were  adopted  in  September  2011,  thus  harmonising  the  legislative  framework  for  elections 
with  the  Constitution  and  addressing  the  main  OSCE/ODIHR  and  Venice  Commission 
recommendations on elections. Implementation of the electoral legislation has started. Vacant 
positions of members of Parliament have started to be filled according to the order in electoral 
lists. The president  and  nine members of the State Election Commission were appointed by 
the  Parliament  in  December  2011.  Recent  legislation  needs  to  be  completed  as  regards  a 
number  of  pending  OSCE/ODHIR  and  Venice  Commission  recommendations,  in  particular 
those  related  to  gender  equality,  the  dissolution  of  coalitions  and  their  funding  obligations, 
and the extension of the mandate of the Central Election Commission to municipal elections. 

The Parliament has continued its intensive legislative activity, including in a number of areas 
related  to  European  integration  such  as  prevention  of  money  laundering  and  terrorism 
financing,  and  audit  of  EU  funds.  The  role  and  the  capacity  of  the  Parliament  in  regulatory 
impact  assessment  and  monitoring  the  process  of  alignment  with  EU  legislation  need  to  be 
further strengthened. 

Parliament's oversight role has been further strengthened, notably through a steady increase in 
the number of parliamentary questions, control and consultative hearings with high-level state 
institutions.  As  regards 
officials  and  discussions  of  reports  submitted  by  various 
parliamentary  oversight  in  the  area  of  anti-corruption,  in  February  2012  the  Parliament 
decided, for the first time, to open a parliamentary investigation and establish a committee of 
inquiry in charge of collecting information and preparing a report on alleged corruption in the 
privatisation of the company 'Telekom Crne Gore'.  

The  Parliament's  administrative  capacity  has  been  further  strengthened,  notably  through 
increasing  staff  numbers  from  100  in  October  2011  to  129  in  March  2012.  However, 
continued  efforts  are  needed  to  further  enhance  the  Parliament’s  administrative  and  expert 
capacity.  

There has been further progress with regard to transparency in the work of the Parliament. In 
December 2011, the Parliament started publishing the voting record of individual MPs on its 
website. Further measures have been taken to improve interaction with civil society and the 
public.  The  new  law  on  lobbying  adopted  in  November  2011  inter  alia  regulates  the 
relationship of the Parliament with lobbyists. 

Overall,  further  progress  has  been  made  in  this  field.  Implementation  of  recently  adopted 
legislation on elections has started. Parliament's legislative and oversight role has been further 
strengthened,  including  on  rule  of  law  matters.  The  transparency  of  the  work  of  the 
Parliament and cooperation with civil society have improved. The administrative and expert 
capacity  of  the  Parliament  has  been  reinforced  in  terms  of  staff  and  training.  These  efforts 
need to continue with a view to consolidating the Parliament’s legislative role, notably with 
regard to thorough compatibility checks of new legislation with the EU acquis. Parliament's 
capacity for oversight and control of the executive still needs to be further strengthened.  

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Public administration 

At the government's initiative, a comprehensive reform of the public sector has been launched 
to reorganise and rationalise the public administration, with the support of the EU and other 
international  organisations.  A  plan  to  reorganise  the  public  administration  was  endorsed  by 
the government in April 2012. 

As  part  of  the  implementation  of  this  reform,  additional  secondary  legislation  was  adopted 
aiming  at  streamlining  the  structures  of  public  administration,  increasing  its  efficiency, 
strengthening  cooperation  with  non  governmental  organisations  and  at  introducing  public 
hearings  in  law  drafting.  Since  January  2012  impact  assessments  have  to  be  carried  out  for 
new legislation, and submitted to the government together with the opinion of the Ministry of 
Finance on the budgetary impact of the implementation of the new law. A total of 90 opinions 
on new legislation have been issued since then. 

The  competences  of  the  State  Audit  Office  (SAI)  were  extended  to  include  the  auditing  of 
political  party  financing  through  the  adoption  of  amendments  to  the  Law  on  Political  Party 
Financing;  the  capacity  and  independence  of  the  SAI  need  to  be  reinforced  notably  in  this 
regard. A strategy for the development of this institution was adopted by the government in 
April 2012. 

Overall, Montenegro has made some further progress to address the challenges of the public 
administration reform. However, the comprehensive plan on the reorganisation of the public 
administration  needs  to  be  finalised.  The  legal  framework  needs  to  be  further  improved, 
especially  in  the  area  of  recruitment  procedures  for  civil  servants,  strengthening  of  the 
institutions  in  charge  of  the  overall  management  of  the  civil  service,  as  well  as  the 
administrative  procedures;  implementation  of  recent  legislation  needs  to  be  enhanced.  The 
public administration reform needs to continue, taking due account of the need to strengthen 
areas  related  to  European  integration,  and  the  financial  sustainability  of  the  reform  itself. 
Mechanisms  for  the  implementation  and  monitoring  of  the  Public  Administration  Reform 
Strategy have to be put in place. 

Judicial system 

With regard to the independence and impartiality of the judiciary, procedures are ongoing for 
the adoption of constitutional amendments aimed at further enhancing judicial independence, 
in  particular  through  de-politicised  and  merit-based  appointments  of  the  Judicial  and 
Prosecutorial  Councils'  members  and  of  state  prosecutors.  Draft  constitutional  amendments 
were  adopted  by  the  Parliament  with  the  required  2/3  majority  on  28  September  2011. 
Following  consultations  held  between  the  Government  and  the  opposition  parties,  the 
Parliamentary Committee for Legal and Constitutional affairs adopted in March 2012 a set of 
constitutional  amendments,  to  be  submitted  to  a  plenary  vote.  The  initiated  constitutional 
reform  should  bring  the  judicial  system  in  line  with  European  standards,  in  particular  by 
judicial 
safeguarding  against  political 
independence,  notably  through  the  replacement  of  MPs  who  were  members  of  the  Judicial 
Council  by  renowned  lawyers  and  a  new  appointment  procedure  of  the  Supreme  Court 
President by the Judicial Council. Constitutional amendments enhancing the capacity and the 
independence  of  the  Constitutional  Court,  and  setting  out  clear  grounds  for  dismissal  of 
judges and prosecutors should also be adopted. 

in  appointments  and  strengthening 

influence 

Implementation  of  the  legislation  on  courts,  the  Judicial  Council  and  the  State  prosecutor’s 
office,  amended  last  July  to  strengthen  judicial  accountability  and  independence,  continued. 
In January, the Supreme Court established the Commission for the appointment of members 

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of the Judicial Council from among judges. Based on the list of candidates compiled by this 
Commission,  in  March  the  Conference  of  Judges  elected  the  new  members  of  the  Judicial 
Council from the ranks of judges. The Judicial Council and the Prosecutorial Council adopted 
their  Rules  of  Procedure  defining  their  organisational  structure,  functioning  and  decision-
making procedures. In September 2011, the Judicial Council established the Commission for 
conducting the written tests for the first-time appointment of judges and the Commission for 
the control of courts. The first written tests for judges were held in February 2012 and four 
judges have been appointed so far, in accordance with the new criteria. However, vacancies 
continue to be published for specific courts and a country-wide single recruitment system on 
the  basis  of  transparent  and  objective  criteria  remains  to  be  established  for  judges  and 
prosecutors. The functioning of the Judicial and Prosecutorial Councils is hampered by their 
insufficient administrative capacity and budget allocations.  

Random  allocation  of  cases  continues  to  be  ensured  in  courts  with  the  aid  of  an  IT  system, 
with the exception of smaller courts with limited staff. 

Concerning accountability of the judiciary, all decisions of the Administrative Court and the 
Appellate  Court  became  publicly  accessible.  Commissions  for  monitoring  compliance  with 
the  Code  of  Ethics  of  judges  and  prosecutors, respectively,  have  been  appointed  in  October 
2011.  The  Commission  for  monitoring  compliance  with  the  Code  of  Ethics  of  judges  acted 
upon  two  complaints  in  the  reference  period,  both  of  which  were  rejected.  Members  of  the 
Disciplinary Commission were appointed, together with two staff to assist the verification of 
complaints concerning alleged cases of corruption in the judiciary. A disciplinary procedure 
against  one  judge  has  been  launched  in  January  2012.  No  disciplinary  procedure  against  a 
prosecutor has taken place so far. The double competence of the Disciplinary Commission in 
investigating  and  deciding  on  disciplinary  proceedings  needs  to  be  revised.  Procedures  for 
removing functional immunity need to be strengthened to ensure full accountability of judges 
and  prosecutors  under  criminal  law.  A  reliable  system  of  professional  evaluation  of  judges 
and prosecutors still needs to be established. 

Regarding  the  efficiency  of  the  judiciary,  Montenegro  has  taken  further  measures  to  reduce 
the backlog of cases. With around 11,500 unresolved cases from previous years in all courts 
in Montenegro at the end of 2011, the backlog was approximately 4% lower in 2011 than in 
2010.  Four  further  notaries  were  appointed  in  January  2012,  in  addition  to  the  34  notaries 
appointed last July. Following the entry into force of the Law on enforcement and security of 
claims,  transferring  powers  for  civil  enforcement  to  the  bailiffs,  the  Parliament  enacted  in 
December  2011  the  Law  on  public  bailiffs.  Nonetheless,  enforcement  of  civil  decisions 
remains  weak,  bailiffs  are  yet  to  be  recruited  and  the  functioning  of  the  newly  established 
bailiffs system still needs to be assessed.  

With  a  view  to  increasing  the  efficiency  of the  overall  judicial  system,  the  Judicial  Council 
initiated the establishment of special units of judges dealing with juvenile justice at the High 
Courts of Podgorica and Bijelo Polje. A Juvenile Justice Code was enacted by the Parliament 
in December 2011. The Action Plan for the Implementation of the Judicial Reform Strategy 
for the period 2007-2012 was revised in December 2011. Initial steps have been taken with 
regard to the rationalisation of the court network. As regards access to justice, following the 
entry into force of the Law on free legal aid in January 2012, three implementing acts have 
been  adopted  and  free  legal  aid  offices  were  opened  in  all  basic  courts.  However,  the 
implementation of the law is hampered by the insufficient budget allocations for these offices. 
The  independence  and  the  administrative  and  financial  self-sustainability  of  the  Judicial 
Training  Centre  remains  to  be  strengthened  and  initial  training  with  set  curricula  for  all 
members  of  the  judiciary  to  be  established.  The  quality  of  judicial  statistics  needs  to  be 

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improved  in  line  with  European  standards  and  on  the  basis  of  reliable  indicators,  such  as 
productivity and clearance rates. A system to clearly monitor the length of trials still needs to 
be introduced. The legal remedies available in case of violation of the right to a fair trial have 
limited effect and need to be revised in line with the right to an effective remedy stemming 
from Article 13 of the European Convention on Human Rights.  

Overall,  further  progress  has  been  made  in  the  area  of  judicial  reform.  Implementation  of 
recently adopted legislation has started and the process of constitutional reform has advanced. 
Progress has been made with regard to the publication of court rulings. The case backlog has 
been  further  reduced  and  a  new  enforcement  system  has  been  introduced  to  improve 
efficiency. However, enforcement of civil decisions remains weak and the court network still 
needs  to  be  rationalised.  A  country-wide  single  recruitment  system  for  first-time  judicial 
appointments is yet to be established. The reliability of judicial statistics needs to be improved 
and  a  system  to  monitor  the  length  of  trials  is  to  be  set  up.  Judicial  training  needs  to  be 
streamlined and strengthened. 

Anti-corruption policy 

The  implementation  of  the  government's  strategy  for  the  fight  against  corruption  and 
organised  crime  and  its  revised  2011-2012  Action  Plan  has  further  advanced.  The  National 
Commission  responsible  for  monitoring  the  implementation  of  the  Action  Plan  adopted  its 
third report in April 2012, concluding that the implementation of the majority of the measures 
due in the second half of 2011 has started. The overall institutional framework for monitoring 
the implementation of the Action Plan is functioning well. 

Montenegro  has  made  additional  efforts  to  further  strengthen  its  anti-corruption  legal 
framework, with a view to ensuring alignment with the relevant EU acquis and international 
standards.  The  amendments  to  the  Labour  Law  adopted  by  Parliament  in  November  2011 
complete the legal framework for whistleblowers with provisions ensuring their protection in 
the private sector. Amendments to the Law on free access to information were adopted by the 
Government in April 2012. Amendments to the Law on political party financing, enacted in 
December  2011  regulate  the  supervisory  institutional  framework,  in-kind  contributions  and 
the ceiling of membership fees, fixing an upper limit of 10 % of a member’s annual income. 
The  State  Audit  Institution  (SAI)  is  now  responsible  for  auditing  political  parties'  annual 
balance sheets and reports on election campaign costs, while the State Election Commission is 
in  charge  of  monitoring  the  implementation  of  other  aspects  of  the  law.  However,  the 
administrative  and  professional  capacity  of  the  State  Election  Commission  has  to  be 
strengthened  to  ensure  a  fully  effective  independent  oversight.  The  mechanisms  for 
controlling  funding  of  political  parties  and  electoral  campaigns,  and  the  enforcement  of 
sanctions need to be reinforced and further specified in the legal framework. The sanctioning 
system remains insufficiently dissuasive and undifferentiated, while reporting and accounting 
obligations for political parties need to be further strengthened.  

Implementation  of  recently  adopted  legislation  in  the  area  of  conflict  of  interest  and  public 
procurement  has  started.  Following  the  entry  into  force  of  the  amended  law  on  conflict  of 
interest prevention, all 36 MPs who were also members of management boards of state-owned 
companies  resigned  from  these  positions  and  all  16  MPs  who  also  held  executive  positions 
(including  2  mayors)  have  resigned  from  one  of  their  functions.  Members  of  the  Public 
Procurement Commission were appointed in February 2012 and a budget was allocated for its 
functioning. In December 2011, the Government adopted a Strategy and an Action Plan for 
the  development  of  the  Public  Procurement  System, and a decision to set up a coordination 
body  for  monitoring  their  implementation.  However,  no  notifications  have  been  sent  so  far 

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from the Public Procurement Commission to the prosecution and the control system needs to 
be strengthened. 

Further steps have beent taken as regards the prevention of corruption. In December 2011, the 
Directorate for Anti-Corruption Initiatives (DACI) was transferred under the authority of the 
Ministry  of  Justice  to  ensure  better  coordination  of  anti-corruption  activities.  During  the 
reference  period,  the  DACI  received  70  complaints  concerning  allegations  of  corruption  in 
local  self-government,  public  administration,  judiciary,  health  and  the  education  sectors,  of 
which  it  submitted  27  reports  on  alleged  corruption  cases  to  the  police.  The  inflow  of 
complaints  also  results  from  a  number  of awareness-raising  campaigns  conducted  by  DACI 
for reporting corruption and the protection of whistleblowers. Based on the risk assessment of 
areas vulnerable to corruption, adopted by the Government last July, the relevant authorities 
have submitted reports on the implementation of recommendations  given in the assessment. 
Measures have been taken to prevent corruption in the judiciary. The Judicial Council decided 
to  allocate  a  special  allowance  to  those  judges  working  on  organised  crime,  corruption, 
terrorism  and  war  crimes  cases.  Continuous  trainings  have  been  provided  to  judges  and 
prosecutors in the area of anti-corruption, in particular to facilitate implementation of the new 
Criminal  Procedure  Code.  Civil  society  organisations  continue  to  actively  contribute  to 
enhancing the strategic framework and providing key evidence for initiating corruption cases. 
However, asset declarations by judges and prosecutors are not yet cross-checked against other 
data  and  measures  to  prevent  corruption  in  the  judiciary  are  to  be  further  strengthened. 
DACI's  competences  need  to  be  upgraded  and  its  capacities  reinforced  to  coordinate 
corruption  prevention  activities  and  to  monitor  the  implementation  of  the  government's 
Action Plan for the fight against corruption and organised crime. 

Further progress has been made in the suppression of corruption. The full entry into force of 
the  new  Criminal  Procedure  Code  (CPC)  in  September  2011  has  lead  to  a  significant 
acceleration of the criminal investigation procedure and reduced risk of information leakage. 
The institutional and operational capacity of the prosecutors, judges and police to fight against 
corruption  has  been  strengthened  through  substantial  training  support  and  additional 
equipment.  The  use  of  special  investigative  measures  is  more  systematic  as  a  result  of  the 
enhanced  administrative  and  technical  capacity  of  the  Special  Checks  Unit.  Nine 
representatives  of  the  police  administration,  the  Office  for  prevention  of  money  laundering 
and  terrorism  financing,  the  tax  and  customs  administrations  were  appointed  to  the  special 
investigation team, which became operational in October 2011. The team has been provided 
with additional financial resources, however its capacities need to be further strengthened, in 
particular through access to relevant information databases.  

Montenegro  has  further  developed  its  track  record  of  investigations,  prosecutions  and 
convictions  in  corruption  cases.  High-level  corruption  cases  remain  a  matter  of  concern, 
however.  In  the  reference  period,  four  employees  of  the  public  property  administration  of 
Ulcinj  were  sentenced  by  a  second  instance  court  to  imprisonment  for  abuse  of  official 
position,  and  one  customs  officer  for  bribery.  First  instance  verdicts  have  been  issued  in 
December  2011,  January  and  March  2012  against  sixteen  persons,  including  two  municipal 
officials  sentenced  to  imprisonment,  the  managers  of  a  public  company  and  a  judge.  Court 
hearings are ongoing in the high-level corruption case 'Zavala', involving the former Mayor of 
Budva,  his  deputy  and  a  Member  of  Parliament,  and  two  other  cases  against  23  persons 
accused  of  abuse  of  official  position  and  bribery.  During  the  reporting  period,  two  police 
officers have been indicted for bribery. Investigations are ongoing against the former Mayor 
of  Ulcinj,  the  President  and  a  judge  of  a  Basic  Court,  the  former  and  current  directors  of  a 
public company in Budva, and three employees of the Ministry of Interior. 

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However, the track record in combating corruption needs to be systematically developed, in 
particular in terms of investigations and final convictions for high-level corruption cases. The 
fact that all high-level corruption cases have been initiated on the basis of evidence provided 
by a third party is a matter of concern. The number of corruption cases in which seizure of 
assets  was  ordered  is  still  very  low.  Provisions  of  the  CPC  and  the  Criminal  Code  on 
confiscation  and  extended  confiscation  of  criminal  assets  have  not  been  used  so  far.  The 
procedures  for  seizure,  confiscation  and  management  of  proceeds  of  crime  still  need  to  be 
regulated.  Inter-agency  cooperation  has  improved  to  a  certain  extent,  but  it  is  to  be  further 
enhanced, in particular to ensure  the prosecutors' leading role in investigations. Prosecutors' 
lack  of  access  to  relevant  databases  and  lack  of  sufficient  capacity  hampers  the  effective 
implementation of the CPC. The administrative capacity of the Special Prosecution Office for 
fighting organised crime, corruption, financing of terrorism and war crimes in particular needs 
to be strengthened. Despite its strengthened administrative capacity, the Commission for the 
prevention  of  conflict  of  interest  still  lacks  the  capacity  to  control  the  accuracy  of  civil 
servants' asset declarations and declarations of interest to identify illicit enrichment as it has 
no investigative powers and access to relevant databases. The independence of the judiciary 
remains a matter of concern affecting the determination to combat corruption. Corruption is 
still an issue of serious concern. 

Overall,  progress  has  been  made  in  the  area  of  anti-corruption.  Implementation  of  recently-
adopted  legislation  in  the  key  areas  of  political  party  financing,  prevention  of  conflict  of 
interest and public procurement has started. Their provisions on control mechanisms need to 
be further strengthened. Further steps have been taken to develop the track record in the fight 
against  corruption,  as  shown  by  a  number  of  new  investigations  of  high-level  corruption 
cases. Nonetheless, the number of final convictions and of corruption cases in which seizure 
or  confiscation  of  assets  were  ordered  remains  low.  Inter-agency  cooperation,  in  particular 
between  police  and  prosecutors,  needs  to  be  further  enhanced  and  the  leading  role  of  the 
prosecution strengthened, in line with the new CPC. 

Police cooperation and the fight against organised crime 

Regional and international police cooperation on organised crime has improved. A number of 
police  operations  have  been  conducted  in  cooperation  with  the  authorities  of  various  EU 
Member  States,  countries  of  the  region,  Interpol  and  Europol,  increasing  the  number  of 
indictments  and  arrests.  The  agreement  on  extradition  between  Montenegro  and  the  Former 
Yugoslav  Republic  of  Macedonia  was  signed  in  October  2011.  Police  authorities  from 
Montenegro  and  Bosnia  and  Herzegovina  signed  a  memorandum  of  cooperation  on  jointly 
fighting  corruption,  organised  crime,  drug  trafficking  and  terrorism.  Two  agreements  on 
police  cooperation  were  also  signed  with  Croatia  and  the  former  Yugoslav  Republic  of 
Macedonia. The ratification of the agreement on reciprocal enforcement of court decisions in 
criminal matters with Croatia took place in December 2011. 

Since  September  2011  the  new  CPC  is  being  implemented  by  all  relevant  state  bodies. 
Amendments  to  the  Rulebook  on  internal  organisation  and  job  description  of  the  Police 
Administration were adopted in November 2011, introducing more specialised organisational 
units  within  the  Police.  An  Action  Plan  for  combating  organized  crime  was  adopted  in 
January 2012 which introduces operational measures and indicators in line with the priorities 
identified  in  the  2011  organized  crime  threat  assessment  (OCTA).  Since  becoming 
operational 
team  has  opened  financial 
investigations on three major cases of organised crime and has been provided with additional 
financial  resources.  Since  December  2011,  a  coordination  body  is  active  for  monitoring 
results in the implementation of the Strategy of Development and Functioning of the Police. 

in  October  2011, 

investigation 

the  special 

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However,  relations  between  the  prosecution  service  and  the  police  within  the  framework  of 
the  new  CPC  should  be  better  clarified  and  improved,  especially  in  conducting  financial 
investigations;  additional  equipments  and  specialised  staff  are  needed  to  manage  complex 
cases. Provisions on use of special investigative measures should be revised to extend its time 
limitations. The Intelligence-led Policing project should be rolled out throughout the country, 
and  the  police  staff  should  be  trained  in  parallel.  Further  financial  allocations  need  to  be 
devoted to increasing investigative capacities and concrete resources – including IT - within 
departments of the police.  

Montenegro has continued to develop its track record of cases dealing with organised crime. 
Two second instance verdicts have been issued, for cases of drug trafficking and trafficking in 
human  beings.  Three  first  instance  verdicts  have  been  issued  in  two  cases  concerning 
production and smuggling of drugs, in September 2011 and in January 2012, respectively, and 
in a case of money laundering in January 2012. As regards the Saric case, two members of a 
criminal  organisation  have  been  sentenced  respectively  to  6  and  8  years  of  prison  for  drug 
trafficking  and  money  laundering  of  more  than  €  12  million.  An  indictment  was  raised  in 
December 2011 in the Kalic case, involving three individuals accused of money laundering; 
the assets seized amount to more than € 28 m illion. Hearings have started in six new cases. 
Investigations were initiated between the end of 2011 and the first months of 2012 on three 
cases of drug smuggling and on a case of passport forgery, involving a total of 65 individuals. 
The value of criminal assets temporarily seized in the country has increased and amounts to 
over €40 million, according to the estimation of  the Public Property Administration which is 
tasked to manage it. Amendments to the law on management of temporary and permanently 
seized  property  were  adopted  in  April  2012.  However,  the  competent  agency  needs  to  be 
further strengthened, particularly with regards to its ability to evaluate and effectively manage 
temporarily seized and confiscated assets. Secondary legislation to ensure the enforcement of 
court  decisions  and  procedures  for  the  management  of  the  seized  and  confiscated  property 
need to be prepared. The overall number of financial investigations and seized assets remains 
low, due to the very weak administrative capacities in this field. 

The Law on prevention of money laundering and terrorist financing was amended in February 
2012 to align it with the EU acquis. Cooperation and exchange of information was enhanced 
between the Ministry of Finance, the Administration for Prevention of Money Laundering and 
Terrorism  Financing  (APMLTF),  the  Central  Bank,  the  Securities  Commission  and  the 
Insurance Supervision Agency in December 2011. A total of 107 cases have been opened by 
the  APMLTF,  which  took  part  in  a  financial  investigation  led  by  the  Special  Prosecution 
Office  for  fighting  organised  crime,  corruption,  financing  of  terrorism  and  war  crimes. 
However, police expertise in this area needs to be consolidated, as well as the track record of 
proactive  financial  investigations.  The  capacities  of  the  AMLTF  to  supervise  the  banking 
system should be strengthened. 

Overall,  further  progress  can  be  reported  in  the  fight  against  organised  crime.  The  track 
record  has  continued  to  develop.  International  cooperation  has  improved  and  various  police 
operations  resulted  in  the  seizure  of  drugs  and  criminal  assets;  however,  drug  trafficking 
remains a major concern since the country is a transit area on the smuggling route to and from 
the EU. The legal framework has continued to be strengthened, but its implementation would 
require continued attention. The investigative capacities of the law enforcement bodies and of 
the  prosecution  need  to  be  further  strengthened,  particularly  in  the  field  of  financial 
investigations. Interagency cooperation needs to be enhanced. 

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Freedom of expression and freedom of assembly and association 

The decriminalisation of defamation has contributed to a decrease in the number of lawsuits 
against the media. The backlog of libel and defamation cases in the courts is being gradually 
reduced, in accordance with the Supreme Court guidelines regulating the level of pecuniary 
compensation in defamation cases against media. These guidelines are based on the case law 
of  the  European  Court  of  Human  Rights.  Trainings  for  judges  and  prosecutors  have  been 
organised by the Judicial  Training Centre, with special emphasis on the right to freedom of 
expression  stemming  from  Article  10  of  the European Convention on Human Rights. High-
level  state  officials  have  continued  to  promote  a  more  favourable  and  safer  media 
environment,  including  by  condemning  attacks  and  encouraging  investigations  into  cases  of 
violence against media. 

However,  in  some  old  cases  of  defamation,  fines  not  paid  have  been  converted  to  custodial 
sentences. These cases need to be brought in line with ECtHR case-law in particular to ensure 
no prison sentence is imposed in case of unpaid fines. Further progress needs to be made on 
certain recent and earlier cases of violence against media, which still have to be thoroughly 
investigated  and  prosecuted,  including  a  physical  attack  on  an  investigative  journalist  in 
March 2012. 

A media self-regulatory body was set up in March 2012, gathering part of some mainstream 
and local media outlets; a parallel one was recently established, representing some important 
national  media.  Additional  staff  has  been  hired  to  increase  the  monitoring  capacities  of  the 
Electronic Media Agency. The public broadcaster is undergoing a structural reform, aimed at 
making  it  more  modern  and  self-sustainable.  The  lack  of  financial  sustainability  and 
operational resources could undermine the functioning of the media, however, as well as of 
the audiovisual self-regulators. Recent legislative amendments to the Law on electronic media 
put  at  risk  the  independence  of  the  audiovisual  regulator.  Its  lack  of  resources  to  monitor 
media throughout the country is cause for concern. Professionalism and independence of the 
public broadcaster are not yet fully achieved. 

Cooperation with civil society has continued to be strengthened. Two decrees enhancing the 
role  of  civil  society  were  adopted  in  February  2012,  on  cooperation  between  state 
administration  authorities  and  non  governmental  organizations  (NGOs),  and  on  conducting 
public debates on draft legislation.  

The Council for cooperation with the NGOs is now fully operational and meets regularly. It 
has been involved in drafting relevant legislation, including in preparing amendments to the 
Law on games  of  chance  which provides for financial support to NGOs. Representatives of 
civil  society  organisations  are  currently  involved  in  the  activities  of  different  state  bodies, 
through their participation in working groups and councils dealing with various policy areas. 
A public register of NGOs has been updated. 

Overall,  there  has  been  some  progress  on  enhancing  media  freedom  and  good  progress  on 
strengthening cooperation with civil society. However, solid implementation of the Supreme 
Court guidelines regulating the level of pecuniary compensation in defamation cases against 
media needs to continue, and measures alternative to prison should be found for unpaid fines 
resulting  from  previous  libel  cases.  Unresolved  cases  of  violence  against  media  represent  a 
concern.  Continuous  further  efforts  are  needed  to  ensure  sustainable  and  long  term 
cooperation between authorities and civil society.  

Anti-discrimination policies, displaced persons and Roma, Ashkali and Egyptian persons  

The  administrative  and  budgetary  capacities  of  the  Ombudsman  have  been  strengthened. 
Reports  have  been  prepared  by  the  institution,  analysing  respectively  the  state  of  the  Police 

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Administration's  premises  used  for  detainees,  the  protection  from  discrimination  and  the 
situation of child begging. These reports were endorsed between October and November 2011 
by  the  Parliamentary  Committee  for  human  rights  and  freedom,  which  has  become  more 
active in promoting human rights and anti-discrimination. The portfolio of the Deputy Prime 
Minister and Minister for Justice has been extended to human rights in March 2012. 

The Council for Protection against Discrimination is now operational. The fifteen members of 
this  body  have  been  appointed  in  February  2012,  including  representatives  from  the  Roma 
community  and  one  member  representing  civil  society  organisations  dealing  with  lesbian, 
gay, bisexual and transgender (LGBT) rights. Anti-discrimination campaigns and training for 
civil  servants  have  continued.  Authorities  have  continued  to  actively  promote  a  positive 
environment for LGBT rights in the country. A shelter and a support and counselling line for 
LGBT persons are fully functional.  

The  capacity  of  the  Ombudsman  need  to  be  strengthened  in  terms  of  financial  and  human 
resources. Implementation of legislation in the field of anti-discrimination is lagging behind; 
institutional capacities in the field of promotion, monitoring and enforcement of human rights 
are  limited,  especially  as  regards  the  rights  of  disabled  persons  and  social  and  vulnerable 
persons.  LGBT  persons  are  still  subject  to  discrimination  and  these  cases  would  require  a 
thorough follow-up by the authorities. 

Progress  has  been  made  guaranteeing  the  legal  status  of  displaced  persons,  in  particular 
Roma, Ashkali and Egyptians (RAE), and ensure respect for their rights, have moved forward. 
Amendments  to  the  Law  on  Foreigners  were  passed  in  November  2011,  to  postpone  the 
deadline  for  application  for  the  status  of  foreigner  to  December  2012.  The  number  of 
applications  is  slowly  but  steadily  increasing:  around  48%  of  displaced  persons  submitted 
applications and 29% of them have been granted the status of foreigner in the country. Several 
measures have been put in place to facilitate the legalisation of status of vulnerable displaced 
persons.  Decisions  to  change  the  urban  plan  of  Konik  area  were  adopted  in  February  2012; 
they  represent  the  framework  for  construction  of  housing  for  the  existing  population. 
Montenegro  has  taken  an  active  role  in  the  Sarajevo  Declaration  Process.  The  temporary 
decree granting  equal  economic  and social rights to displaced persons has been extended to 
June  2013.  Progress  in  facilitating  civil  registration  of  RAE  population,  in  particular  those 
internally  displaced,  has  continued.  The  government  adopted  a  strategy  for  improving  their 
situation  for  the  period  2012-2016  and  an  action  plan  for  its  implementation.  RAE  persons 
have  received  vocational  trainings.  Registration  of  displaced  persons  needs  to  advance,  in 
particular  for  vulnerable  cases.  Further  measures  are  needed  to  improve  the  access  to 
economic  and  social  rights  of  displaced  persons  and  the  RAE  persons.  Roma  women 
experience double discrimination - as members of a minority group and as women. 

The Law on social housing should be adopted without delay, as key to further progress on the 
Konik camp.  

Overall, some further progress has been made on anti-discrimination, legalising the status of 
displaced  persons,  and  ensuring  the  rights  of  the  RAE  persons.  Institutional  capacities  to 
monitor, promote and enforce human rights in practise should be enhanced, as well as to fight 
discrimination.  The  settlement  of  legal  status  of  displaced  persons  has  to  be  completed; 
inclusion policies towards RAE persons should be reinforced. 

3. 

CONCLUSION 

Montenegro has made further progress in the implementation of reforms in the areas of rule of 
law and fundamental rights, including in the fight against corruption and organised crime. 

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In view of the further progress made, the Commission remains of the view that Montenegro 
has  achieved  the  necessary  degree  of  compliance  with  the  membership  criteria  and  in 
particular  the  Copenhagen  political  criteria,  to  start  accession  negotiations.  In  light  of  these 
considerations  and  taking  into  account  the  Council  conclusions  of  December  2011,  the 
Commission  reiterates  its  recommendation  that  accession  negotiations  be  opened  with 
Montenegro.  

During  the  accession  negotiations’  process,  the  Commission  will  continue  to  put  particular 
focus on the area of rule of law and fundamental rights, especially the fight against corruption 
and  organised  crime,  so  as  to  ensure  a  solid  track  record.  It  will  make  full  use  of  the  tools 
available at all stages of the accession process. In this respect, the new approach proposed by 
the  Commission  and  endorsed  by  the  December  2011  European  Council  as  regards  the 
chapters on judiciary and fundamental rights and justice, freedom and security will allow to 
firmly anchor reforms in this area and ensure the close monitoring of their implementation.  

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