COMMISSION STAFF WORKING DOCUMENT Montenegro 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy
Date: 2024-10-30
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Montenegro, accession criteria, accession negotiations, pre-accession strategy, regional cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 30.10.2024  SWD(2024) 694 final  COMMISSION STAFF WORKING DOCUMENT Montenegro 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy                           {COM(2024) 690 final} - {SWD(2024) 690 final} - {SWD(2024) 691 final} - {SWD(2024) 692 final} - {SWD(2024) 693 final} - {SWD(2024) 695 final} - {SWD(2024) 696 final} - {SWD(2024) 697 final} - {SWD(2024) 698 final} - {SWD(2024) 699 final}  
 
 
Contents 

1. 

INTRODUCTION .................................................................................................................................3 

1.1.   CONTEXT 3 
1.2. Main findings of the reports ............................................................................................................4 
State of play of the accession negotiations ............................................................................... 20 
1.3. 

2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ........................................... 22 

2.1. Functioning of democratic institutions and public administration reform .................................... 22 
2.1.1 Democracy ...................................................................................................................... 22 
2.1.2. Public administration reform .......................................................................................... 24 
Chapter 23: Judiciary and fundamental rights ......................................................... 27 
2.2.1 
Chapter 24: Justice, freedom and security ............................................................... 43 
2.2.2 
2.3. Economic criteria .......................................................................................................................... 52 
2.3.1. The existence of a functioning market economy ............................................................ 52 
2.3.2. The capacity to cope with competitive pressure and market forces within the EU ........ 56 
2.4 Public Procurement, Statistics, Financial control ........................................................................... 58 
Chapter 5 - Public procurement................................................................................................ 58 
Chapter 18 - Statistics .............................................................................................................. 59 
Chapter 32 - Financial control .................................................................................................. 60 

3.  GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION ................................. 61 

4. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP....................................................... 63 

Chapter 1: Free movement of goods ........................................................................................ 63 
Chapter 2 - Freedom of movement for workers ....................................................................... 64 
Chapter 3 - Right of establishment and freedom to provide services ....................................... 65 
Chapter 4 - Free movement of capital ...................................................................................... 65 
Chapter 6 - Company law ......................................................................................................... 66 
Chapter 7 - Intellectual property law ........................................................................................ 67 
Chapter 8 - Competition policy ................................................................................................ 68 
Chapter 9 - Financial services .................................................................................................. 69 
Chapter 28 - Consumer and health protection .......................................................................... 69 
Cluster 3: Competitiveness and inclusive growth ................................................................................ 71 
Chapter 10 - Digital transformation and media ........................................................................ 71 
Chapter 16 - Taxation ............................................................................................................... 72 
Chapter 17 - Economic and monetary policy ........................................................................... 72 
Chapter 19 - Social policy and employment ............................................................................ 73 
Chapter 20 - Enterprise and industrial policy ........................................................................... 75 
Chapter 25 - Science and research ........................................................................................... 76 
Chapter 26 - Education and culture .......................................................................................... 76 
Chapter 29 - Customs union ..................................................................................................... 78 
Cluster 4: The Green agenda and sustainable connectivity .................................................................. 79 
Chapter 14 - Transport policy .................................................................................................. 79 
Chapter 15 - Energy ................................................................................................................. 80 
Chapter 21 - Trans-European networks .................................................................................... 81 
Chapter 27 - Environment and climate change ........................................................................ 82 
Cluster 5: Resources, agriculture and cohesion.................................................................................... 84 
Chapter 11 - Agriculture and rural development ...................................................................... 84 
Chapter 12 - Food safety, veterinary and phytosanitary policy ................................................ 85 

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Chapter 13 - Fisheries and aquaculture .................................................................................... 86 
Chapter 22 - Regional policy and coordination of structural instruments ................................ 87 
Chapter 33 - Financial and budgetary provisions ..................................................................... 87 
Cluster 6: External relations ................................................................................................................. 88 
Chapter 30 - External relations ................................................................................................. 88 
Chapter 31 - Foreign, security and defence policy ................................................................... 89 
Annex I – Relations between the EU and Montenegro ........................................................................ 91 
Annex  II – Statistical data ................................................................................................................... 93 

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1. 

INTRODUCTION1  

1.1.   CONTEXT 

Accession negotiations with Montenegro were opened in June 2012. To date, 33 negotiating chapters 
have been opened, of which three have been provisionally closed. Montenegro continued to broadly 
implement the Stabilisation and Association Agreement (SAA) and meetings of the joint bodies under 
the agreement took place at regular intervals.  

Overall,  the  government  accelerated  preparations  on  EU  accession  and  worked  effectively,  in 
particular on meeting the requirements stemming from the interim benchmarks of chapters 23 and 24. 
On  26  June  2024,  the  16th  meeting  of  the  Accession  Conference  with  Montenegro  confirmed  that 
Montenegro  overall  met  the  interim  benchmarks  for  chapters  23  and  24  and  adopted  the  closing 
benchmarks  for  these  chapters.  This  opens  a  new  phase  in  the  accession  negotiations,  with  the 
possibility  to  proceed  with  provisionally  closing  further  chapters.  To  do  so,  it  will  be  essential  for 
Montenegro to establish a track record of implementation and deliver results on the ground. 

The political commitment of the Montenegrin authorities to the strategic goal of European integration 
has  been  consistently  stated  as  the  key  priority  for  the  country  and  staying  firm  on  EU  strategic 
orientation remains key. Since its formation in October 2023, the government has been operating in a 
generally stable political environment, with less polarisation compared to recent years.  

However,  the  country  and  its  institutions  are  fragile  and  vulnerable  to  political  crisis  and  potential 
institutional  blockages.  No  nationwide  elections  took  place;  local  elections  were  held  in  five 
municipalities.  Overall,  the  electoral  framework  requires  a  comprehensive  revision.  The  parliament 
elected in June 2023 held its first session at the end of October 2023 and has generally been operating 
regularly, largely with consensus on key EU related reforms.  

Montenegro  has  actively  engaged  in  implementing  the  new  Growth  Plan  for  the  Western  Balkans 
across  its  four  pillars:  (i)  gradual  integration  with  the  EU’s  Single  Market,  (ii)  regional  economic 
integration, (iii) fundamental reforms and (iv) increased financial support.   

Significant  efforts  have  been  made  on  gradual  integration.   On  26  September  2024  Montenegro 
adopted  its  Reform  Agenda,  as  envisaged  under  the  Reform  and  Growth  Facility2.  The  Reform 
Agenda  covers  reform  milestones  in  the  areas  of:  (1)  business  environment  and  private  sector 
development;  (2)  digital  and  green  transition;  (3)  human  capital  development  and  (4)  fundamental 
rights and the rule of law.  

The Commission’s 2024 rule of law report also covered Montenegro for the first time.  

1.2. MAIN FINDINGS OF THE REPORTS3 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

1  The  2024  report  is  presented  in  a  renewed  format  and  structure.  Main  findings  of  the  report,  together  with  the 
recommendations (previously grey assessment boxes) are brought together at the beginning of the report. Furthermore, 
under the fundamentals cluster, for better readability and comparability across all reports, certain data is provided (also) 
in the form of graphs. 
2 OJ L, 2024/1449, 24.5.2024 
3  This  report  covers  the  period  from  15  June  2023  to  1  September  2024.  It  is  based  on  input  from  a  variety  of  sources, 
including  contributions  from  the  government  of  Montenegro,  EU  Member  States,  European  Parliament  reports  and 
information  from  various  international  and  non-governmental  organisations.  It  also  includes  the  results  of  comparative 
assessments and indices produced by other stakeholders, in particular in the area of rule of law.  
The  report  uses  the  following  assessment  scale  to  describe  the  state  of  play:  early  stage,  some  level  of  preparation, 
moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting period, it 
uses the following scale: backsliding, no progress, limited progress, some progress, good progress and very good progress. 
Where appropriate, interim steps have also been used. 

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Democracy  

While  the  conduct  of  the  elections  is  mostly  satisfactory  overall,  the  legal  framework  requires  a 
comprehensive reform and alignment with EU law of the election legislation, voting and candidacy 
rights restrictions, transparency, mechanisms of dispute resolution, and oversight of campaign finance 
and  media.  The  majority  of  pending  OSCE/ODIHR  recommendations  have  not  been  addressed. 
Montenegro should further strive to align its electoral processes to highest democratic standards. 

Parliament can exercise its powers in a mostly satisfactory way. Despite the persisting fragmentation 
of  the  parliamentary  landscape,  a  majority  has  emerged  since    October  2023,  ending  a  prolonged 
period of political instability. Consensus on key EU accession related reforms extended to both ends 
of  the  political  spectrum  and  EU-related  legislation  was  adopted  by  unanimity  in  Parliament. 
However, tensions and inter-ethnic polarisation has resurfaced, having an adverse impact on political 
stability. During the summer of 2024 the Parliament took some hasty legislative initiatives failing to 
apply the necessary transparency. 

Montenegro  has  put  in  place  a  revised  set  of  institutional  structures  that  have  been  delivering 
adequately  on  the  integration  process.  A  new  negotiation  structure  in  charge  of  EU  accession 
negotiations, headed by the Chief Negotiator, adequately fulfils its role of coordinating the country’s 
EU  accession  negotiations.  The  coordinating  role  of  the  Ministry  of  European  Affairs  should  be 
strengthened, and additional resources and expertise added. 

The government has been holding regular sessions. However, recurring internal rifts between certain 
ministers  and  the  Prime  Minister  have  undermined  the  government’s  cohesion  and  overall 
effectiveness. 

Civil  society  organisations  (CSOs)  in  Montenegro  operate  in  an  enabling  environment.  The  main 
legal and institutional framework for civil society to operate freely is in place. The role of civil society 
in policy making is formalised, yet at times purely symbolic. The Council for Cooperation between 
the Government and non-governmental organisations (NGOs) has not resumed work. Further efforts 
are needed to ensure genuine and meaningful cooperation between the government and CSOs.  

Public administration reform  

Montenegro  is  moderately  prepared  in  this  area.  Overall,  limited  progress  was  made.  Some 
measures were taken to improve the capital investment planning and management, notably by setting 
up  a  Public  Investments  Council,  but  more  effort  is  needed  to  improve  the  public  investment 
management  framework. The  number  of requests  for public  information and  related appeals  further 
increased.   

The Commission's recommendations from last year were partially implemented and remain valid.  In 
the coming year, Montenegro should, in particular: 

→  adopt and implement amendments to the Law on access to information, in line with the principles 
of good public administration, and introduce measures to reduce the high number of requests for 
information and related appeals;  

→  amend and implement the Law on civil servants and state employees and the Law on local self-
government,  to  ensure  that  recruitment  follows  the  principles  of  merit,  competence  and 
transparency;  

→  put in place a unified, comprehensive and transparent system for capital investment planning and 

management.  

Chapter 23: Judiciary and fundamental rights 

Montenegro  remains  moderately  prepared  to  apply  the  EU  acquis  and  European  standards  in  this 
area and has made good progress overall. Good progress was achieved as regards justice reform, the 
fight against corruption, and freedom of expression and media freedom, with substantial reforms to 
the  legislative  and  strategic  frameworks.  In  June  2024,  the  European  Commission  assessed  in  its 

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interim  benchmark  assessment  report  that  Montenegro  had  fulfilled  the  interim  benchmarks  for 
chapter 23, and consequently the closing benchmarks for chapter 23 were set.  

Functioning of the judiciary  

Montenegro’s judicial system is moderately prepared and has made good progress on key judicial 
reforms  and  last  year’s  recommendations.  A  new  strategic  framework  was  put  in  place,  and 
substantial amendments were adopted to the Law on Judicial Council and Judges, the Law on State 
Prosecution Service, and the Law on Special State Prosecution Service aiming to align them with the 
the  European  and  Venice  Commissions’ 
EU  acquis  and  European  standards,  based  on 
recommendations.  Further efforts will need to be ensured to continue their alignment.  Progress was 
made  on  transparent  and  merit-based  high-level  judicial  appointments,  following  a  long  period  of 
standstill.  The  Parliament  appointed  by  qualified  majority  a  new  permanent  Supreme  State 
Prosecutor, three members of the Judicial Council and one judge of the Constitutional Court, and only 
a permanent President of the Supreme Court remains to be appointed. 

The  Commission’s  recommendations  from  last  year  were  largely  met.  In  the  coming  year, 
Montenegro should, in particular: 

→  appoint a permanent President of the Supreme Court, as well as other high-level judicial positions, 
through  a  merit-based  and  transparent  procedure,  to  ensure  the  proper  functioning  and 
accountability of the justice system; 

→  ensure full and effective implementation of the improved strategic and legal framework to address 
existing  challenges,  and  further  align  the  legal  framework,  including  the  Constitution,  in 
particular on the composition and decision making process of the Judicial Council, with the EU 
acquis  and  European  standards  on  judicial  independence,  accountability,  impartiality,  integrity, 
efficiency, and professionalism of the judicial system, addressing the remaining recommendations 
from  the  European  Commission,  the  Venice  Commission  and  the  Council  of  Europe  Group  of 
States against Corruption (GRECO), to decisively restore the stability, credibility and public trust 
in the justice system;  

→  fully implement the Plan for the rationalisation of court network and the Strategy for digitalisation 
of the judiciary, to improve human, financial, and physical infrastructure in the judiciary and state 
prosecution service.  

Fight against corruption  

Montenegro is between having some level of preparation and a moderate level of preparation in 
the  fight  against  corruption.  Good  progress  was  made  on  key  reforms  and  last  year’s 
recommendations.  The  strategic  framework  has  improved  with  the  adoption  of  a  new  a  new  2024-
2028  Anticorruption  Strategy,  aiming  to  align  it  with  European  and  international  standards,  by 
addressing prevention and repression of corruption, as well as international cooperation. Likewise, the 
legal  framework  was  substantially  upgraded  with  the  adoption  of  a  new  Law  on  Prevention  of 
Corruption and amendments to the Law on Confiscation,  with the aim to align them with European 
standards by addressing existing loopholes. In addition, a new Law on lobbying was adopted, in line 
with the EU acquis and European standards. New guidelines were adopted to improve the use of plea 
bargain agreements by prosecutors and judges in corruption cases, including high-level corruption, to 
ensure an effective and deterrent criminal justice response.  

The  Commission’s  recommendations  from  last  year  were  largely  met.  In  the  coming  year, 
Montenegro should, in particular: 

→  ensure  full  and  effective  implementation  of  the  improved  strategic  and  legal  frameworks  to 
address  existing  challenges,  and  continue  its  alignment  with  the  EU  acquis  and  European 
standards  on  prevention  and  fight  against  corruption  by  addressing 
the  remaining 
recommendations  from the  European  Commission,  the  Venice  Commission  and  the  Council  of 
Europe Group of States against Corruption (GRECO) and peer review missions, including on its 
institutional set up and effective functioning;  

5 

 
 
→ 

further  improve  the  track  record  on  corruption,  including  high-level  corruption,  by  urgently 
strengthening  the  effective  enforcement  of  the  existing  criminal  legislation  by  the  prosecution 
and courts, including by imposing effective and deterrent penalties; 

→  urgently  amend  Law  on  financing  of  political  entities  and  election  campaign  to  address  the 
existing shortcomings and bring it fully in line with European standards, to substantially increase 
transparency  and  control  of  the  spending  of  political  parties,  and  prevent  the  abuse  of  state 
resources, including through dissuasive sanctions. 

Fundamental rights  

The legislative and institutional framework on fundamental rights is largely in place and Montenegro 
continues  to  largely  meet  its  international  obligations  on  human  rights.  However,  more  effort  is 
needed to fully implement this framework and to ensure access to justice and enforcement of rights in 
administrative  and  judicial  proceedings,  in  particular  for  vulnerable  groups.  The  most  vulnerable 
groups  in  society  (including  Roma  and  Egyptians,  persons  with  disabilities,  LGBTIQ  persons) 
continued  to  be  subjected  to  discrimination,  hate  speech  and  hate  crime.  More  effort  is  needed  to 
effectively address all recommendations from the European Committee for the Prevention of Torture 
and Inhuman or Degrading Treatment (CPT). 

The  Commission's  recommendations  from  last  year  were  partially  implemented,  with  substantial 
progress in drafting a new anti-discrimination law, and the revision of relevant criminal legislation, 
and remain largely valid. In the coming year, Montenegro needs in particular to: 

→  make  substantial  progress  in  implementing  all  pending  recommendations  of  the  European 

Committee for the Prevention of Torture and Inhuman or Degrading Treatment (CPT);  

→  make  substantial  progress  in  implementing  the  Strategy  for  the  Advancement  of  the  Status  of 
Roma4 and Egyptians in Montenegro, as well as commitments under the Poznan Declaration;  

→  adopt a new law on anti-discrimination and a new law on personal data protection, in line with the 

EU acquis, European and international standards.  

Freedom of expression 

Montenegro has a pluralistic media environment and is between having some level of preparation 
and  moderate level  of  preparation    in the  area  of freedom of expression.  Overall,  good  progress 
was  achieved  in  the  reporting  period,  notably  with  the  adoption  a  media  legislative  package  –  new 
Media Law, new Law on Audiovisual Media Services and new Law on Public Broadcaster RTCG – in 
line  with  the  EU  acquis,  and  European  standards,  which  was  a  key  recommendation  of  last  year’s 
report.   

The  Commission’s  recommendations from last  year were  largely implemented.  In  the  coming  year, 
Montenegro needs in particular to: 

→  continue  to  provide  prompt  and  effective  law  enforcement  and  institutional  protection  to 
journalists against all forms of violence, while prioritising investigations and judicial follow-up in 
key cold cases;  

→  ensure  consistent  implementation  of  all  media-related  legislation  and  uphold  a  zero-tolerance 

policy to any form of pressure or harassment of journalists, including by public officials;  

→  safeguard  against  any  form  of  undue  influence  on  the  editorial,  institutional  or  financial 
independence of the public broadcaster RTCG, which needs to comply fully with the law and with 
the highest standards of professional integrity and accountability. 

4  In  line  with  the  terminology  of  European  institutions  the  umbrella  term  ‘Roma’  is  used  here  to  refer  to  a  number  of 

different groups, without denying the specificities of these groups. 

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Chapter 24: Justice, freedom and security  

Montenegro has between a moderate and a good level of preparation in the area of justice, freedom 
and  security.  Montenegro  has  made  good  progress  combating  organised  crime  and  on  the 
management of migration and asylum. In June 2024, the European Commission assessed in its interim 
benchmark  assessment  report  that  Montenegro  had  fulfilled  the  interim  benchmarks  for  chapter  24, 
and consequently the closing benchmarks for chapter 24 were adopted.  

The Commission’s recommendations from last year were partially implemented. In the coming year, 
Montenegro should in particular: 

→ 

→ 

→ 

increase  the  efficiency  of  prosecution/adjudication  for  serious  and  organised  crime  cases, 
especially cases of money laundering; address the lengthiness of trials and frequent adjournments 
in organised crime cases; ensure the application of key legal concepts such as stand-alone money 
laundering  (independent  of  the  predicate  crime)  and  quality  of  evidence  by  the  courts  and  the 
prosecution; and ensure the seizure and confiscation of criminal assets – by systematic tracking 
of  money  flows,  the  efficient  use  of  special  investigative  measures  and  the  consistent  use  of 
extended confiscation; 

further strengthen border management capacity by addressing critical gaps in border surveillance 
infrastructure  and  equipment;  take  the  necessary  steps  to  set  up  an  advance  passenger 
information system and a biometric migrant registration system; 

further align Montenegro’s visa policy with the EU’s list of visa-required countries, in line with 
the commitments taken in the Reform Agenda, in particular with regard to countries presenting 
irregular migration or security risks to the EU. 

 Fight against organised crime  

Montenegro is moderately prepared in the fight against organised crime. Good progress was made 
with the adopted legislative amendments in the areas of money laundering and trafficking in human 
beings.  

The Commission’s recommendations from last year were partially implemented. In the coming year, 
Montenegro should in particular: 

→  make  progress  on  filling  vacancies  in  the  Special  Police  Unit  (SPU),  SSPO  and  High  Court  of 
Podgorica;  provide  suitable  premises  to  the  SSPO  and  SPU  and  reorganise  the  Special 
Investigative Measure (SIM) division;  

→  further amend its legislation on weapons to align with EU acquis and international standards;  

→  address the risks of corruption and infiltration of organised crime into law enforcement agencies 
and  the judiciary  by implementing  a strong  prevention  policy  and  providing a  stringent judicial 
response  to  detected  cases;  urgently  implement  the  reorganisation  in  the  Ministry  of  Interior 
/police in the area of corruption prevention and internal control. 

ECONOMIC CRITERIA 

The existence of a functioning market economy 

Montenegro  has  made  some  progress  and  is  moderately  prepared  in  developing  a  functioning 
market economy. Strong economic growth and one-off revenues supported a small budget surplus in 
2023, but fiscal vulnerabilities remain given high public financing needs, elevated interest rates and 
persistent  social  spending  pressures.  The  labour  market  situation  improved,  but  structural  problems 
persist.  The  banking  sector  remained  well  capitalised  and  liquid.  Some  progress  was  made  in 
improving the business environment and preparing the reform of state-owned enterprises (SOEs). 

Last year’s recommendations were addressed to some extent but remain mostly valid. To improve the 
functioning of the market economy, Montenegro should in particular: 

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→  adopt and implement additional fiscal measures, which would help targeting the achievement of a 
budget  deficit  below  3%  of  GDP,  and  a  public  debt  ratio  converging  towards  60%  of  GDP  by 
2026; 

→  implement the Law on budget and fiscal responsibility to set up a fiscal council, while ensuring 

full transparency in selecting its council members; and 

→  prepare an analysis of the economic and fiscal impact of current tax exemptions and a fiscal risk 

assessment of SOEs. 

The capacity to cope with competitive pressure and market forces within the EU 

Montenegro  has  made  limited  progress  and  is  moderately  prepared  to  cope  with  competitive 
pressure and market forces in the EU. The education system still faces numerous challenges, as shown 
by  the  results  of  international  surveys.  Efforts  to  advance  a  green  and  digital  transition  have 
continued, but large infrastructure gaps persist. Further efforts are needed to diversify Montenegro’s 
narrow production base. Obstacles to increasing the productivity and competitiveness of local firms 
include the low  value  added  by  domestic  products, the  small  size  of local companies  and  their  low 
level of participation in exports. 

The Commission’s recommendations from last year were implemented to a limited extent and remain 
mostly valid. In the coming year, Montenegro should in particular: 

→  continue  implementing  digital  services  for  micro,  small  and  medium-sized  enterprises  and 
prioritise  the  development  and  implementation  of  an  interactive  e-government  platform  for 
transactional electronic services; 

→  improve  programmes for  dual vocational  education  and  training  and tertiary  education,  in  close 

cooperation with business associations, and providing work-based learning;  

→  improve the institutional and regulatory environment for the green transition and increase energy 
resilience by adopting the National Energy and Climate Plan and implementing energy efficiency 
legislation. 

Chapter 5 - Public procurement  

Montenegro has between a moderate and a good level of preparation in this area. Some progress 
was achieved in 2023 in further improving the functioning of the electronic procurement system. 

The  Commission’s  recommendation  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Montenegro should, in particular: 

→  increase 

the 

level  of 

regarding  public  procurement  contracted  under 
intergovernmental  agreements  and  reduce the number  of  procurement procedures  for  which no 
contract notice is published; 

transparency 

→  reach full compliance with the EU public procurement rules and principles in all cases. 

Chapter 18 - Statistics  

Montenegro is moderately prepared in the area of statistics. Overall, some progress was made. In 
particular, the enumeration and data processing phases of the national population and housing census 
were completed. Measures were taken to reinforce the Statistical Office of Montenegro (MONSTAT), 
but challenges remain with human resources and infrastructure.  

The  Commission's  recommendations  from  last  year  were  partially  implemented  and  remain  mostly 
valid. In the coming year, Montenegro should, in particular: 

→  start regular production and transmission to Eurostat of: (i) government financial statistics, which 

can be published; and (ii) properly completed tables for the excessive deficit procedure;  

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→  strengthen  the  human  and  financial  resources  of  MONSTAT  so  it  can  fully  fulfil  its 

responsibilities and retain expert staff; 

→  implement the agricultural census and publish the results of the national population and housing 

census, in line with EU requirements and recommendations.  

Chapter 32 - Financial control 

Montenegro is moderately prepared in the area of financial control. Overall, limited progress was 
made.  Some effort was made to strengthen the centralised budget inspection function at the Ministry 
of  Finance.  The  delegation  of  authority  in  the  field  of  financial  management  and  internal  control 
remains limited.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  mostly 
valid. In the coming year, Montenegro should in particular: 

→  further  operationalise  the  centralised  budget  inspection  function in  the  Ministry  of  Finance,  by 

allocating appropriate staff; 

→  extend  the  application  of  managerial  accountability  in  public  administration,  with  increased 

delegation of authority in the field of financial management and internal control; 

→  further align its legislation with the EU acquis on fraud prevention regarding the EU’s financial 
interests,  by:  (i)  adopting  amendments  to  the  Criminal  Code;  (ii)  further  strengthening  the 
coordination capacity of the National Anti-fraud Coordination Service; and (iii) adopting a new 
national anti-fraud strategy for 2024-2027.  

CLUSTER 2: INTERNAL MARKET 

Chapter 1: Free movement of goods  

Montenegro  is  moderately  prepared  as  regards  the  free  movement  of  goods.  Some  progress  was 
made  on  alignment  with  the  EU  acquis  on  chemicals,  medicines  for  human  and  veterinary  use, 
medical devices and on construction products, and on improving the capacity of the bodies working 
on the EU chemicals acquis.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  mostly 
valid. In the coming year, Montenegro should in particular: 

→  complete  the  alignment  of  its  legislation  with  the  EU  acquis,  notably  on  medicines,  motor 

vehicles and market surveillance; 

→  complete  all  the  measures  necessary  to  ensure  full  membership  of  the  Institute  for 
Standardisation  of  Montenegro  (ISME)  in  the  European  Committee  for  Standardisation  (CEN) 
and the European Committee for Electrotechnical Standardisation (CENELEC); 

→  continue to strengthen the human and financial capacity of its quality infrastructure and market 

surveillance bodies.  

Chapter 2 - Freedom of movement for workers  

Montenegro has some level of preparation. Limited progress was made related to the conclusion of 
bilateral  social  security  agreements.  Initial  steps  were  also  taken  to  upgrade  the  administrative  and 
technical capacity of the Employment Agency.  

Last  year’s  recommendations  remain  largely  valid.  In  the  coming  year,  Montenegro  should  in 
particular: 

→ 

take decisive action to improve the functioning of the Employment Agency such that it promotes 
and implements relevant and evidence -based active labour market policies; 

9 

 
 
→  adopt  an  action  plan  for  implementing  the  EU  acquis  in  this  area  and  step  up  legislative 

alignment to implement EU acquis on free movement of workers upon accession;  

→  step up efforts to conclude bilateral social security agreements with all EU Member States, and at 

least with additional five Member States in the coming year.  

Chapter 3 - Right of establishment and freedom to provide services  

Montenegro  is  moderately  prepared  in  this  area.  Limited  progress  was  made  by  adopting  a  new 
strategy for developing the postal services in 2024-2028, and in the area of services by establishing 
the Point of Single contact portal.  

The Commission’s recommendations from last year were partially implemented and remain partially 
valid especially the need to progress in the area concerning professional qualifications to advance on 
the closing benchmarks in this chapter. In the following period, Montenegro should in particular: 

→   adopt and finalise the justification grounds for each of the professions it regulates; 

→  amend the  horizontal  law on  services to ensure  full compliance  with  the  EU  Services  Directive 
and  adopt  legislation  to  align  at  least  5  priority  service  sectors  with  the  EU  Services  Directive, 
following  the  finalisation  of  an  exhaustive  mapping  exercise  regarding  the  state  of  play 
concerning alignment of Montenegrin sectoral legislation with the EU Services Directive;  

→  accelerate the alignment of the study programmes and finalise it for the seven sectoral professions 
(doctors  of  medicine,  dental  practitioners,  architects,  general  care  nurses,  veterinary  surgeons, 
pharmacists and midwives) with the Professional Qualifications Directive. 

Chapter 4 - Free movement of capital  

Montenegro is  moderately  prepared   in  this area.  Some  progress  was made mainly  related  to  the 
adoption of the new Law on the prevention of money laundering and terrorist financing, amendments 
to the Law on games of chance and the adoption of secondary legislation on payment systems.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Montenegro should in particular: 

→  continue  aligning  with  the  EU  acquis  on  capital  movements  and  payments,  including  on  the 

acquisition of property rights by EU nationals; 

→  strengthen further the anti-money laundering supervision of the non-financial sector, particularly 
in high-risk areas such as games of chance, by further amending the Law on games of chance and 
the Law on the prevention of money laundering and terrorism financing.  

Chapter 6 - Company law  

Montenegro has good level of preparation in the area of company law. No progress was made.  

The  Commission’s  recommendation  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Montenegro should, in particular: 

→  finalise,  adopt  and  start  implementing    (i)  the  draft  company  Law  and  Law  on  business 
organisations, to further align national legislation with the acquis on company law including on 
certain aspects of company law, which includes amongst others the conversion of documents and 
information  recorded  in  the  national  business  register  into  a  machine  readable  and  searchable 
format or structured data, the connection of the national business register with the EU Business 
Register  Interconnection  System  (BRIS),  (ii)  the    use  of  digital  tools  and  processes,  (iii)  the  
cross-border  mergers,  divisions,  conversions  and  (iv)  the  encouragement  of  long-term 
shareholder engagement; 

10 

 
 
→  complete  alignment  with:  (i)  the  Transparency  Directive,  including the  sanctioning  regime  and 
the  Directive  on  the  harmonisation  of  transparency  requirements;  and  (ii)  the  Directive  on 
accounting,  as  regards  the  financial  reporting  regime  for  micro  and  small  companies  and 
dividend distribution; 

→  finalise and adopt the revision of the Corporate Governance Code.  

Chapter 7 - Intellectual property law  

Montenegro is between having a good level of preparation and being well advanced in the area of 
intellectual  property  law.  Very  good    progress  was  made  during  the  reporting  period  in  aligning 
national legislation with the EU acquis namely by adopting amendments to the Law on copyright and 
related  rights  and  through the  adoption  of the  Law  on  ratification  of the  Geneva  Act  of the  Lisbon 
Agreement on Appellations of Origin and Geographical Indications.  

The  Commission’s  recommendations  from  last  year  were  fully  implemented.  In  the  coming  year 
Montenegro should in particular: 

→  continue  to  reinforce  the  implementation  of  the  intellectual  property  strategy  2023-2026, 
specifically  addressing  staff  shortages,  providing  annual  training  to  market  inspectors  on  IPR 
matters and strengthening the IT capacity;    

→  improve criminal enforcement by, inter alia, adopting legislation and providing trainings to the 

relevant authorities; 

→  reestablish a fully functional online register of industrial property rights by end of 2024 publicly 

available online; 

Chapter 8 - Competition policy  

Montenegro  is  moderately  prepared  in  this  area.  No  progress  was  made  on  last  year’s 
recommendations.  A  decision  on  the  prohibition  of  cartel  practices  was  taken  and  secondary 
legislation on State aid was adopted.  

The Commission’s recommendations from last year were not  implemented and remain  valid. In the 
coming year, Montenegro should, in particular: 

→  adopt  the  new  Law  on  protection  of  competition  and  the  new  Law  on  control  of  State  aid, 
ensuring  further  alignment  with  the  EU  acquis.  Finalise  and  implement  a  plan  to  ensure  the 
financial  independence  of  the  Agency  for  Protection  of  the  Competition  (APC)  and  judicial 
overview  in  compliance  with  the  Directive  to  empower  the  competition  authorities  of  the 
Member States to be more effective enforcers and to ensure the proper functioning of the internal 
market;  

→  strengthen  administrative  and  judicial  capacities  in  the  area  of  antirust,  mergers  and  State  aid 
control,  including  by  ensuring  additional  personnel,  as  well  as  specific  measures  to  address 
identified gaps in judicial capacity;  

→  Montenegro should intensify its efforts to further improve its track record on antitrust, mergers 
and  State  aid,  as  well  as  to  conclude  the  pending  major  investigations  of  benchmark  State  aid 
cases, and, if necessary, recover the funds in question. 

Chapter 9 - Financial services  

Montenegro  is  moderately  prepared  in  the  area  of  financial  services.  Limited  progress  was 
achieved, with some secondary legislation acts adopted by the central bank , while work continued on 
several legal acts on banking, insurance and capital markets.  

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  remain 
valid. In the coming year, Montenegro should: 

11 

 
 
→  adopt  EU-aligned  legislation  on  capital  requirements,  bank  resolution  and  supervision  of 

financial conglomerates; 

→  continue  working  on  alignment  with  the  EU  acquis  on  insurance,  including  Solvency  II 

Directive; 

→  complete alignment with the EU laws on open-ended investment funds,  alternative investment 

funds and financial market infrastructures. 

Chapter 28 - Consumer and health protection 

Montenegro is moderately prepared in the area of consumer and health protection. Some progress 
was made by strengthening the national Consumer Protection Council, by further alignment with the 
EU acquis on communicable diseases and the adoption of 2023-2027 healthcare development strategy 
and 2023-2024 action plan.   

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  mostly 
valid. In the coming year, Montenegro should in particular: 

→  complete the alignment of national legislation with the EU consumer protection acquis and with 

the EU acquis on substances of human origin and on patients’ rights in cross-border healthcare; 

→ 

further strengthen the role and effectiveness of the Council for Consumer Protection; 

→  develop  a  national  strategy  on  immunisation,  in  line  with  the  best  international  practices  and 

methodologies. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH  

Chapter 10 - Digital transformation and media  

Montenegro has a  good level of preparation in the area of digital transformation and media.  Very 
good progress was made, with the adoption of the Law on audio-media visual services as part of a 
comprehensive  media  reform  package  and  the  adoption  of  the  Law  on  electronic  communication 
aligning with the European Electronic Communications Code. Through this Law, Montenegro brough 
its legislation in line with the EU acquis as regards the provisions on the independence of the national 
regulatory  authority  for  electronic  communications.  In  addition,  the  Agency  for  Electronic  Media 
(AEM), now known as Agency for Audiovisual Media Services (AMU), was granted legal powers to 
impose fines. Montenegro launched public calls under the Digital Europe Programme.  

The  Commission’s  recommendations  from  last  year  were  implemented.  In  the  coming  year, 
Montenegro should in particular: 

→  adopt  and  implement  the  Law  on  information  security,  fully  aligning  with  the  Network  and 

Information Security (NIS2) Directive;  

→  ensure it maintains a good track record on enforcing the EU acquis on electronic communications 

and audiovisual media services;  

→  proceed with additional recruitment of staff to fulfil the remaining planned posts, thus  strengthen 
further the administrative capacities in the field of electronic communications, information society 
services and audio-visual media services. 

Chapter 16 - Taxation  

Montenegro  is  moderately  prepared  in  the  area  of  taxation.  Overall,  limited  progress  was  made, 
mainly on further aligning the legislation on excise taxes and VAT and corporate income tax with the 
EU  acquis.  The  separation  of  the  Tax  Administration  from  the  former  Revenue  and  Customs 
Administration entailed organisational changes and slowed down the development of administrative 

12 

 
 
capacity and required infrastructure, notably as concerns the interconnection with the EU IT systems 
in the area of taxation.   

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  mostly 
valid. In the coming year, Montenegro should in particular: 

→  further remove indirect tax exemptions that are not aligned with the EU acquis including those 
on  fuel  supplied  to  pleasure  boats,  and  introduce  fuel  markers  to  avoid misuse of  reduced-rate 
fuel;  

→  increase  staffing  in  the  Tax  Administration  to  the  level  necessary  for  effective  and  efficient 
operations,  including  fighting  corruption,  and  provide  extensive  training  in  the  fields  of  tax 
inspection and risk assessment;  

→  strengthen the technical capacity and infrastructure needed to apply the EU IT systems, such as 
the  Excise  Movement  Control  System  (EMCS)  and  the  VAT  Information  Exchange  System 
(VIES), and the IT systems necessary for tax cooperation and exchanging information in the field 
of direct taxation.    

Chapter 17 - Economic and monetary policy  

Montenegro  is  moderately  prepared  and  has  made  some  progress  in  the  area  of  economic  and 
monetary policy. The implementation of the action plan for alignment with the EU acquis advanced. 

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Montenegro should: 

→  continue  to  implement  the  revised  action  plan  for  alignment  with  the  EU  acquis  under  this 

chapter; 

→  ensure  that  the  Ministry  of  Finance,  the  Central  Bank  of  Montenegro  and  Monstat  cooperate, 
coordinate  among  themselves  and  have  appropriate  capacity  to  produce  government  finance 
statistics and fiscal notifications in accordance with the ESA 2010 methodology. 

Chapter 19 - Social policy and employment  

Montenegro has some level of preparation in this area. Some progress was made, in particular on 
work  towards  the  legislative  alignment  of  the  labour  law  and  on  anti-discrimination,  as  well  as 
advancing the reform of the Employment Agency.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Montenegro should in particular: 

→  continue to strengthen the Employment Agency so that it can efficiently play its role as a modern 
public employment service, and effectively implement the Youth Guarantee and future use of the 
European Social Fund (ESF); 

→  intensify reform efforts for improved and timely provision of active labour market measures with 

an emphasis on their labour market relevance; 

→  adopt the Strategy and Law on social and child protection and start implementing the reform. 

Chapter 20 - Enterprise and industrial policy  

Montenegro achieved a good level of preparation in this area. Good progress was made, notably by 
implementing  enterprise  and  industrial  policy  and  completing  preparations  for  alignment  with  the 
current EU policy framework.  

The  Commission’s  recommendations  from  last  year were  mostly  implemented.  In  the  coming  year, 
Montenegro should: 

→  implement the new industrial policy, in cooperation with all relevant stakeholders;  

13 

 
 
→  align with the EU Late Payments Directive;  

→  continue addressing various business barriers identified by the Competitiveness Council.  

Chapter 25 - Science and research  

Montenegro  has  a  good  level  of  preparation  in  this  sector.  Good  progress  was  made,  notably  on 
continuing  the  implementation  of  the  Smart  Specialisation  Strategy  and  strengthening  academia-
business cooperation and adoption of the strategy for scientific research. 

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Montenegro should:  

→  adopt a new smart specialisation strategy and continue to implement it; 

→ 

further strengthen the national innovation ecosystem; 

→  adopt  the  new  research  and  development  strategy  and  adopt  the  law  on  scientific  research 

activities. 

Chapter 26 - Education and culture  

Montenegro  has  a  good  level  of  preparation  in  this  area.  Some  progress  was  made,  notably  on 
advancing  preparations  for  the  sectoral  reform  strategy  and  implementing  the  strategy  on  early  and 
preschool  education.  The  recommendation  related  to  evaluation  mechanisms  for  practical  learning 
remains to be addressed. 

In the coming year, Montenegro should in particular: 

→  adopt a high-quality, comprehensive and costed education sector strategy with clear and realistic 
targets based on evidence; and a solid financial framework for its sustained implementation; 

→  put in place mechanisms to evaluate practical learning at VET and higher education levels and to 

ensure increased work-based learning with employers. 

→  ensure full implementation, funding and monitoring of the new Youth Strategy 2023-2027. 

Chapter 29 - Customs union  

Montenegro  is  moderately  prepared  for  the  customs  union.  It  made  some  progress,  advancing 
preparations  for  its  accession  to  the  Common  Transit  Convention  and  amending  its  legislative 
framework on intellectual property rights and cultural goods.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Montenegro should in particular: 

→ 

finalise the legal and technical preparations for the country’s accession to the Common Transit 
Convention and for the implementation and operation of the New Computerised Transit System 
(NCTS – phase 5); 

→  adopt and implement new business strategy and IT strategy of Customs Administration; 

→  ensure sufficient staffing levels and funding to upgrade its IT systems, enabling interconnection 

and interoperability with the EU electronic customs environment. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

Chapter 14 - Transport policy  

Montenegro is between moderate and a good level of preparation in this area. There was limited 
progress on key reforms, with the adoption of the new road safety strategy.   

14 

 
 
 
The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  r  remain 
valid. In the coming year, Montenegro should in particular: 

→  adopt  a  new  railway  law  to  ensure  that  fully  functional,    operationally  independent  and 

appropriately staffed   railway regulatory body and  railway safety authority are in place;  

→ 

lay  down  the  strategic  Intelligent  Transport  System  framework  for  the  rail  and  maritime 
networks; 

→  ensure full implementation, funding and monitoring of 2024-2030 road safety strategy. 

Chapter 15 - Energy  

Montenegro has reached a good level of preparation in this area. Limited progress was achieved, 
with  drafting  the  National  Energy  and  Climate  Plan  and  implementing  renewable  energy  projects. 
Montenegro  is  significantly  delayed  on  drafting  and  adoption  of  the  National  Energy  and  Climate 
Plan,  alignment  with  the  acquis  on  mandatory  oil  stocks  and  on  alignment  with  the  Electricity 
Integration Package. 

The  Commission’s  recommendations  from  last  year  were  only  partially  implemented  and  remain 
largely valid. In the coming year, Montenegro should, in particular: 

→ 

finalise  and  start  implementing  the  National  Energy  and  Climate  Plan,  in  line with  the  Energy 
Community energy and climate targets; 

→  adopt and implement the Law on energy, transposing the Electricity Integration Package and the 
Law  on  security  of  supply  of  oil  products,  also  appointing  the  stockholding  body  for  the 
mandatory oil reserves;  

→  accelerate  alignment  with  the  Energy  Performance  of  Buildings  Directive  and    deployment  of 

energy efficiency along new targets, to align with the EU renovation wave policy.  

Chapter 21 - Trans-European networks  

Montenegro  is  between  a  moderate  and  a  good  level  of  preparation  in  this  area.  There  was  no 
progress on key reforms.  

The Commission’s recommendations from last year were not implemented and  remain valid.  In the 
coming year, Montenegro should in particular: 

→ 

review its transport development strategy and align it with the strategy for sustainable and smart 
mobility  in  the  Western  Balkans,  confirming  a  policy  shift  towards  rail,  multimodality  and 
reducing CO2 emissions and other environmental impacts; 

→  strengthen  administrative  capacity  and  develop  institutional  policies  to  hire  and  retain  skilled 

staff to manage infrastructure projects in the areas of transport, telecommunications and energy; 

→ 

revise  institutional  policies  to  improve  decision-making  on  infrastructure  projects  and  increase 
the capacity to absorb funding. 

Chapter 27 - Environment and climate change  

Montenegro has some level of preparation in this area. Some progress was made in further aligning 
national  legislation  with  the  EU  acquis,  namely  through  the  adoption  of  the  Law  on  waste 
management, the Law on biocidal products, and, in the field of civil protection, by connecting fully to 
the EU’s Common Emergency Communication and Information System.  

The Commission’s recommendations from last year were partially implemented , and remain  valid, in 
particular on the priority reforms needed. In the coming year, Montenegro should, in particular:  

→  significantly  intensify  work  to  achieve  the  closing  benchmarks  for  Chapter  27,  specifically  on 
implementation  and  enforcement  of  legislation,  including  the  adoption  and  implementation  of 

15 

 
 
sectoral strategies, particularly in the areas of waste management, air and water quality, nature 
protection, and climate change and ensure that there is there an institutional structure in place to 
deliver coordinated, strategic planning for climate and environmental investments; 

→  adopt implementing legislation necessary to implement the new Law on waste management and 
finalise and adopt the national waste management plan for the next 5-year period, followed by 
the adoption of waste management plans at local level;  

→ 

implement commitments under the Energy Community’s Decarbonisation Roadmap in particular 
adopt  and  implement  the  National  Energy  and  Climate  Plan  (NECP),  and  take  steps  for  the 
alignment with the EU Emission Trading Scheme (ETS). 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION  

Chapter 11 - Agriculture and rural development 

Montenegro  remains  moderately  prepared  in  this  area.  Good  progress  was  achieved,  mainly 
through    improved  implementation  of  the  Instrument  for  Pre-accession  Assistance  for  Rural 
Development (IPARD II and III), drafting an implementation  plan for the establishment  of a  Paying 
Agency and an integrated administrative and control system (IACS) extending the area included  in 
the  land  parcel  identification  system  (LPIS).  However,  there  were  no  developments  regarding 
legislative alignment apart from the wine sector.  

The  Commission’s  recommendations from last  year were  largely implemented.  In  the  coming  year, 
Montenegro should in particular:  

→  ensure  full  absorption  of  the  IPARD  II  funds  by  the  end  of  2024,    and  intensify  the 

implementation of the  IPARD III programme;  

→  further  implement  the  action  plan  for  aligning  with  the  EU  acquis  on  agriculture  and  rural 
development including the setting up of the paying agency and adoption of related legislation; 

→  ensure further progress with the roll-out of the land parcel identification system (LPIS) across the 

whole territory. 

Chapter 12 - Food safety, veterinary and phytosanitary policy  

Montenegro remains moderately prepared. Some progress was achieved through further alignment 
of implementing legislation with the EU acquis, the adequate monitoring of zoonoses, zoonotic agents 
and their antimicrobial resistance (AMR), the prompt tackling of an outbreak of African swine fever 
and an increase of establishments fulfilling EU standards.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid.  In the coming year, Montenegro should in particular:   

→  finalise  alignment  of  its  legislation  with  the  acquis  on    official  controls  and  strengthen  its 
administrative,  inspection  and  infrastructure  capacities  to  implement  the  system  of  official 
controls;  

→  establish robust passive surveillance of rabies and independently continue with the aerial rabies 
vaccination as necessary. In addition, strengthen the surveillance programme for notifiable avian 
diseases; 

→  pursue the efforts to approximate national legislation with the EU animal welfare legislation until 
alignment 
its 
implementation by engaging additional staff for food safety, veterinary and phytosanitary sectors. 

is  complete and  strengthen  administrative  and 

inspection  capacities  for 

Chapter 13 - Fisheries and aquaculture 

16 

 
 
Montenegro  has  some  level  of  preparation  in  this  area.  Some  progress  was  made  through  the 
adoption of the new 2024-2029 fisheries and aquaculture strategy and its action plan, the adoption of 
an  agreement  on  subsidies  and  fisheries  within  the  WTO  framework,  the  adoption  of  the  Law  on 
market organisation in fisheries and aquaculture and the updating of legislation.  

The Commission’s recommendations from last year were partially implemented and  remain partially 
valid. In the coming year, Montenegro should, in particular:  

→  increase its administrative, control and inspection capacities;  

→  finalise  and  adopt  pending  legislation  on  structural  measures  and  State  aid  in  fisheries  and 
aquaculture,  on Marine fisheries and Mariculture  and start work on implementing legislation. 

Chapter 22 - Regional policy and coordination of structural instruments  

Montenegro is moderately prepared in this area. Some progress was made with work on updating 
the Chapter 22 Action Plan and preparations for IPA III operational programmes (Instrument for Pre-
accession Assistance) and the related budget entrustments. 

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Montenegro should in particular 

→  advance implementation of the updated action plan for chapter 22. 

→  strengthen its administrative capacity in both designing and implementing policies relevant for the 
country’s economic and social cohesion and its regional competitiveness,  including strengthened 
interinstitutional coordination and structured dialogue with social partners (employers groups and 
unions)  and  civil  society,  which  should  be  involved  in  policy  development,  implementation, 
monitoring and evaluation. 

→  work on a solid pipeline of projects irrespective of the source of funding, along with a framework 
for strategic sectoral orientations and policies, while improving project preparation, procurement 
and implementation in line with EU and international standards. 

Chapter 33 - Financial and budgetary provisions  

Montenegro  has  some  level  of  preparation  in  this  area.  Overall,  limited  progress  was  made. 
Progress took place mainly concerning the adoption of implementing legislation and guidelines on the 
procedure for planning the resources that Montenegro pays to the EU budget.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  mostly 
valid. In the coming year, Montenegro should in particular:  

→  strengthen the administrative capacity of the Directorate for Coordination and Management of EU 
Own  Resources  and  of  all  other  institutions  involved  in  the  own-resources  system,  notably  by 
developing organisational and procedural links between these institutions; 

→  fully implement the improvements to the IT system of the Revenue and Customs Administration 

enabling a full audit trail and reporting on customs duties;  

→  adopt  implementing  legislation  on  collecting  debts  on  movable  and  immovable  property  and 

procedures for writing off uncollectible customs debt and start their implementation.  

CLUSTER 6: EXTERNAL RELATIONS  

Chapter 30 - External relations 

Montenegro  has  a  good  level  of  preparation.  Some  progress  was  made  in  the  field  of  regional 
cooperation and development policy and humanitarian aid.  

17 

 
 
 
The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Montenegro should in particular: 

→  continue to actively participate in the implementation of measures under the Common Regional 
Market action plan for 2021-2024, implement actions under the new action plan for 2025-2028 
and  take  the  necessary  steps  to  implement   Additional  Protocol  7  to  the  CEFTA  on  dispute 
settlement; 

→  ensure  proper  implementation  of  the  new  Law  on  international  development  cooperation  and 

international humanitarian assistance and set up a database on donor support projects. 

Chapter 31 - Foreign, security and defence policy 

Montenegro has a good level of preparation. Good progress was made as the country maintained its 
track record  of  full  alignment  with  relevant  statements  by  the  High  Representative  on  behalf  of the 
EU and Council decisions on sanctions, including with the EU restrictive measures related to Russia’s 
invasion of Ukraine and has provided assistance to Ukraine. Montenegro continued to participate in 
EU crisis management missions and operations under the common security and defence policy.   
The recommendations from last year were implemented. In the coming year, Montenegro should, in 
particular:  
→   maintain  its  full  alignment  with  the  EU  common  foreign  and  security  and  strengthen  its 

enforcement capacity regarding restrictive measures. 

→   take  further  efforts  to  close  space  for  foreign  interference  and  information  manipulation, 
including disinformation, and take action towards building resilience against all forms of hybrid 
threats by adopting the strategy on countering hybrid threats and its related action plan.  

1.3. STATE OF PLAY OF THE ACCESSION NEGOTIATIONS  

CLUSTERS 

Chapters / areas  

Date chapter opened / closed with 
interim or closing benchmarks   

Fundamentals 

All chapters open 

Internal market 
All chapters open 

Competitiveness and 
inclusive growth 

All chapters open,  ch.25  

23-Judiciary and fundamental rights  
24-Justice, freedom, security  
  5-Public procurement  
18-Statistics  
32-Financial control 
…Economic criteria 
…Functioning of democratic institutions  
…Public administration reform 
 1-Free movement of goods   
 2-Freedom of movement for workers   
 3-Right of establishment and freedom to 
establish services  
 4-Free movement of capital 
 6-Company law  
 7-Intellectual property rights 
 8-Competition  
 9-Financial services  
28-Consumer and health protection 

10-Information society and media  
16-Taxation 
17-Economic and monetary policy 
19-Social policy and employment  
20-Enterprise and industrial policy  

18 

December 2013  
December 2013  
December 2013  
December 2014 
June 2014  

- 
- 
June 2017  
December 2017  
December 2017  
… 
June 2014  
December 2013  
March 2014  
June 2020  
June 2015  
December 2014   
March 2014  
March 2015  
June 2018  
December 2016  
December 2013  

 
 
 
 
 
 
 
and 26 provisionally 
closed 

25-Science and research 

26-Education and culture 

Green Agenda and 
sustainable 
connectivity 
All chapters open 

Resources, agriculture 
and cohesion 

All chapters open  

External relations 
Both chapters open, 
ch.30 provisionally 
closed  

29-Customs union  
14- Transport policy 
15- Energy 
21-Trans-European Networks 
27-Environment and climate change  
11-Agriculture and rural development  
12-Food safety, veterinary, phytosanitary 
services 
13- Fisheries and aquaculture 
22-Regional policy and coordination of  
      structural instruments  
33-Financial and budgetary provisions  

30-External relations  
31- Foreign, security & defence policy  

December 2012 (opened and closed - no 
closing benchmarks);  
April 2013  (opened and closed – no 
closing benchmarks) 
December 2014   

December 2015  
December 2015  
June 2015  
December 2018  
December 2016  

June 2016  
June 2016  

June 2017  
December 2014  
March 2015 – June 2017 provisionally 
closed 
June 2014   

   

19 

 
 
  
  
 
 
 
 
 
 
 
 
2. CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM  

2.1.1 Democracy  

The  functioning  of  democratic  institutions  is  satisfactory.  Since  its formation  at  the  end  of  October 
2023,  the  government  has  been  operating  in  a  generally  stable  political  environment,  with  a  lower 
level  of  polarisation  compared  to  recent  years.  However,  the  country  and  its  institutions  are  fragile 
and vulnerable to political crisis and potential institutional blockages.  

Elections 

No  nationwide  elections  took  place.  Early  elections  were  held  in  the  municipalities  of  Budva  and 
Andrijevica on 26 May 2024 and 2 June 2024 respectively, due to serious dysfunctionalities in their 
governance. Further early elections took place in Gusinje on 15 September, in Podgorica and Kotor on 
29  September  2024  The  election  process  in  the  municipality  of  Savnik,  held  in  October  2022  and 
suspended in December 2022 due to irregularities, has not been completed to date. 

4

81

for 

23,5
22

legal 

basis 

22
27,16

the 
a 

35
11,43
4

100
80
60
40
20
0

Graph 1 : Montenegro - Women in political life

framework 
While 
provides 
the 
democratic  conduct  of  elections, 
it  should  be  comprehensively 
revised  to  address  a  number  of 
gaps 
inconsistencies. 
Parliament  set  up  a  committee 
for  a  comprehensive  electoral 
reform,  with  a  mandate  until  31 
December 2024, but no progress 
was made in following up on the 
OSCE/ODIHR 
pending 
recommendations  and  crucial 
electoral 
issues 
legislative  reform  .  Montenegro    should  further  strive  to  align  its  electoral  processes  to  highest 
democratic  standards,  such  as  the  ones  highlighted  in  the  Commission  Recommendation(EU) 
2023/2829 of 12 December 2023. 

Number of
Deputy Prime
Minsiters /
Ministers

100,00
80,00
60,00
40,00
20,00
0,00

Source: Parliament, State Election Commission, Ministry of Interior

Number of
party leaders

Number of
MPs

concerning 

Women

Mayors

and 

Total

25

%

1

4

The  inclusion  of  women  in  political  life  remains  low  and  is  undermined  by  insufficient  state  and 
public  efforts  to  overcome  gender  stereotypes  and  the  failure  of  most  political  parties  to  promote 
women’s participation.  

Parliament  

The  parliament elected  in June  2023  held  its first session  at the  end  of  October  2023  and  has  been 
operating  regularly  overall.  It  assembled  a  clear  majority  to  approve  several  key  judicial 
appointments. In June 2024, it unanimously adopted twelve EU-related  in the areas of judiciary, anti-
corruption,  and  media.  However,  during  summer  2024  the  Parliament  took  some  hasty  legislative 
initiatives failing to apply the necessary transparency. The PM’s question time took place irregularly 
and on some occasions was filibustered by the opposition. 

Following  its  endorsement  of  the  United  Nations  General  Assembly  Resolution  on  the  Srebrenica 
genocide in May 2024, the government faced criticism from some majority parties in Parliament, with 
one temporarily withdrawing its support. On 28 June, part of the ruling majority supported a resolution 
on  the  ‘genocide  in  the  system  of  concentration  camps  Jasenovac,  Dachau  and  Mauthausen’  which 
was  considered  politically  instrumental  by  the  opposition  and  was  perceived  as  antagonising  by 
Croatia.  

As part of their supervisory activities, the parliamentary committees considered numerous reports that 
independent bodies submitted to Parliament in accordance with the law. However, there is no uniform 
practice  or  approach  to  the  conduct  of  parliamentary  hearings.  During  2024,  the  ruling  majority 

20 

 
 
repeatedly voted against control hearings requested by the opposition. 

In 2023, the public submitted 52 requests for free access to information to Parliament, which were all 
responded to. Of 80 citizen petitions Parliament received by 31 December 2023, 58 were admissible 
and were all dealt with. Of 40 e-petitions, 22 did not get the required amount of signatures, 14 were 
not  within  the  jurisdiction  of  Parliament,  one  resulted  in  a  consultative  hearing  before  the  relevant 
committee, two are pending to be discussed at the relevant committee. One e-petition ended up in the 
form of a Draft Resolution submitted to the Parliament of Montenegro.  No reports of violations of the 
Code of Ethics were submitted to the Committee on Human Rights and Freedoms.  

In December 2023, Parliament formed a cross-party Women’s MP Group.  

EU integration  

In  December  2023,  Montenegro  established  a  new  negotiation  structure  and  appointed  a  Chief 
Negotiator as General Director in the Ministry of European Affairs reporting to the Minister. As part 
of the structure, lead negotiations for the clusters have been appointed and working groups in charge 
of  each  negotiating  chapter  were  formed  in  February  2024.  However,  they  are  not  meeting  on  a 
regular basis. The Ministry of European Affairs’ overall coordination role is somewhat undermined 
by a lack of resources and limited influence over other ministries and structures. 

Overall, the government greatly accelerated preparations on EU accession and worked effectively, in 
particular on meeting the requirements stemming from the interim benchmarks of chapters 23 and 24. 
This  culminated  in  the  adoption  of  a  legislative  package  of  12  laws,  as  well  as  a  package  of  three 
strategies,  on  which  the  European  Commission  and  where  relevant  the  Council  of  Europe  or  the 
Venice Commission had been consulted.  

On 11 April 2024, the government adopted Montenegro's Programme of Accession to the European 
Union for 2024-2027. On 7 March  and 2 August 2024, Montenegro adopted quarterly reports  on its 
activities  in  the  EU  accession  process.  On  26  June  2024,  the  16th  meeting  of  the  Accession 
Conference with Montenegro at ministerial level confirmed that, overall, Montenegro met the interim 
benchmarks for Chapters 23 and 24 and adopted the closing benchmarks for these chapters.  

Governance  

Following  the  June  2023  early  parliamentary  elections,  the  new  government  was  established  on  30 
October  2023.  In  March  2024,  the  Prime  Minister  and  Minister  of  the  Interior  failed  to  agree  on  a 
candidate  for  the  acting  Police  Director,  causing  political  tensions.  In  June,  the  PM  initiated 
proceedings to dismiss the Minister of Justice, due to intra-party political disagreements. The coalition 
agreement from October 2023 envisaged a government re-shuffle within a year, which took place on 
23 July 2024. The new government comprises 7 Deputy Prime Ministers and 24 ministers. 

As  for local  governance,  decentralisation  in  Montenegro is limited  and  primarily  confined to utility 
services, water supply and public space maintenance. Even though local governments have their own 
remits  on  paper,  in  practice  they  often  must  secure  approval  from  central  authorities.  Local 
governments have restricted financial autonomy and are often not consulted on draft laws that directly 
impact them. In December 2023, the Law on local self-government financing was amended, entailing 
reallocation  of  funds  among  the  municipalities  and  aimed  at  increasing  the  income  of  the 
municipalities in the north.  

Civil society 

The overall legal and institutional framework on freedom of expression, association and assembly is 
in place, but some important pieces of legislation need reinforcing. The adoption of amendments to 
the Law on access to information has been pending for years. The tax law provides some incentives 
for philanthropy, but its notion of ‘public interest’ is limited, therefore restricting tax incentives for 
supporting CSOs. Montenegro has a Law on voluntary work, which sets out the rights and obligations 
of volunteers. However, a broader legal framework is needed. 

Civil society’s role in policy-making is formalised, yet at times purely symbolic,  so the government’s 
practical implementation of this principle needs to be further reinforced. The 2022-2026 strategy for 

21 

 
 
cooperation  between  state  administration  bodies  and    NGOs  is  being  implemented,  its  practical 
application remains inadequate both in terms of public funding as well as its involvement in public 
consultations.  The  Council  for  Cooperation  between  the  Government  and  NGOs  has  not  resumed 
work since October 2021.  

The  relaunching  of  a  dialogue  between  the  government  and  civil  society  should  be  addressed  as  a 
matter of priority. A structure to monitor the strategy and to discuss the future Law on NGOs is yet 
not in place. In 2023, some ministries appointed CSO representatives to working groups for draft laws 
and  national  strategies,  in  compliance  with  the  Law  on  public  administration.  However,  not  all 
ministries conducted public consultations on draft laws.  

The  public  funding  of  NGOs  is  regulated  by  a  set  of  rules  to  ensure  transparency,  including  the 
obligation of ministries to conduct consultations with NGOs on annual funding priorities, to publish 
open calls and to award grants through a selection process involving external evaluators.  

Despite the obligation prescribed by the Law on NGOs, not all ministries launched calls for proposals 
to finance NGO projects. Montenegro needs to strengthen ministries’ capacity for strategic planning, 
monitoring  and  evaluation  of  support  provided  to  CSOs  to  ensure  public  funding  is  awarded  in  a 
transparent and objective manner. 

2.1.2. Public administration reform  

Strategic framework for public administration reform  

The strategic framework for public administration is in place. The quality and effectiveness of public 
administration reform (PAR) strategy still needs to be improved. The implementation rate of the PAR 
Strategy  for  2022-2026  was  low.  Political  instability  and  cyberattacks  were  reported  as  the  main 
reasons  for  this.  Political  support  for  PAR  was  ensured  through  the  PAR  Council,  chaired  by  the 
Prime  Minister,  although  at  administrative  level  coordination  is  lacking.  Dialogue  with  the  non-
governmental stakeholders on the PAR agenda is underdeveloped, and Montenegro does not have a 
central  online  platform  that  would  allow  public  and  non-governmental  stakeholders  to  regularly 
monitor progress achieved.   

Policy development and coordination  

The policy development and coordination aspects still need to be developed. The legal framework is 
in place. In April 2024, the government adopted its annual work programme for 2024 and its mid-term 
work  programme  (2024-2027).  Coordination  between  governmental  bodies  could  be  improved. 
Montenegro’s programme for accession does not include information on costing. There is no central, 
publicly accessible depository of government planning documents or reports.   

Evidence-based  policymaking  is  only  partially  implemented.  The  government  report  from August 
2023 indicates that ministries do not regularly conduct public consultations, and wide use is made of 
exemptions. Moreover, the state administration falls short of its obligation to publish an annual list of 
laws  and  strategies  scheduled  for  public  consultation,  and  the  e-participation  portal  is  not  used  by 
citizens and stakeholders. The Ministry of Finance had an active role in promoting regulatory impact 
assessments  (RIA)  and  it  made  the  reports  available  on  its  website.  However,  the  quality  of  legal 
drafts proposed by Members of Parliament is low, without any RIA or public consultations and almost 
non-existent  quality  control.  The  capacity  of  line  ministries  to  integrate  evaluations  into  the 
policymaking cycle is underdeveloped. 

Public financial management  

Public  financial  management  is  broadly  in  place  but  needs  to  be  improved.  The  Fiscal  Council, 
established by law, is not yet functional, as Parliament has yet to appoint its members. Fiscal targets 
(public debt) do not comply with fiscal rules. In February 2024 the government published an official 
list  of  50  state-owned  enterprises  (SOE)  at  central  level,  with  basic  data  about  their  financial 
performance. There has been no debt management strategy in place since 2020.   

The government made efforts to improve the management of the capital budget. In January 2024, it 
set  up  its  first  Public  Investments  Council  to  improve  planning  and  implementation  of  public 

22 

 
 
infrastructure  projects. And  in  March  2024  it  adopted  a  decision  to  improve  procedures  and  define 
conditions for preparing capital budget projects. However, no independent appraisal of large capital 
investment projects is in place.  

Due  to  the  late  formation  of  the  government  after  the  elections,  the  government  breached  the  legal 
deadline for delivering the budget proposal for 2024 to Parliament. The draft mid-term government 
agenda  published  in  February  2024  has  no  clear  links  to  the  annual  programme  budget framework. 
Reporting on the accomplishment of non-financial targets from the programme budget framework is 
yet to be established. The credibility of medium-term revenue and expenditure forecasts remains low. 
Montenegro  continued  to  make  progress  on  introducing  gender-responsive  budgeting  but  it  is  not 
embedded  in  the  legal  framework  and  the  efforts  have  yet  to  yield  tangible  results.    Accounting 
reforms  have  been  delayed.  Commitment  control  is  not  fully  operational  due  to  limitations  in  the 
accounting system and there are no accounting standards in place.   

The Open Budget Survey published in May 2024 gives Montenegro a transparency score of 48 (out of 
100),  indicating  insufficient  budget  transparency.  Significant  issues  remain  in  the  availability  and 
content  of  the  key  budget  documents.  The  amount  of  information  in  the  annual  budget  seems 
excessive and poses difficulties for efficient scrutiny in Parliament.  

Public service and human resources management  

The  management  of  public  service  and  human  resources  still  needs  to  be  improved.  The  legal 
framework only partially ensures that the civil service is professional, de-politicised and merit-based. 
The administration does not have a complete overview of all public employees under different types 
of public employment contracts, and the salary system continues to lack clarity and transparency. As 
concerns  gender  parity  in  the  public  administration,  315  women  were  employed  in  2023  which  is 
19.8%  fewer  than  in  2022,  while  in  the  same  year  424  men  were  employed,  an  increase  of  73% 
compared to 2022.   

Modern human resources management capacity within the Human Resource Management Authority 
(HRMA) and public administration bodies remains limited, with no significant progress on the human 
resources  management  information  system.  As  concerns  recruitment,  testing  is  insufficiently 
standardised  and  the  skills  framework  only  exists  for  senior  management  staff.  The  selection 
processes  for  managerial  positions  are  subject  to  political  influence,  and  in  non-managerial 
recruitment the heads of authorities have ample discretion to appoint candidates who are not the best 
ranked.  The  legal  framework  also  leaves  wide  discretion  for  easily  triggered  dismissals  without 
objective grounds.   

Human  resources  plans  are  not  aligned  with  the  budget  process,  and  the  government  has  adopted 
only a partial personnel plan for 2024. HRMA continues to perform well as the central coordinating 
body  for  civil  service  training.  There  was  no  improvement  in  defining  job  descriptions  and 
requirements, while the high concentration of performance appraisal in the highest rating categories 
undermines the usefulness of the system for rewarding good performance.  

Although rightsizing (optimising) public administration is one of the main objectives of the PAR 
strategy, in November 2023 there was a total staff increase of 3.9% at the central level and 7% at local 
level as compared to 2 years earlier.  

Accountability of administration  

The  accountability  of  administration  still  needs  to  be  improved.  The  legislative  framework  is  in 
place,  but  the  Law  on  state  administration  does  not  cover  all  administrative  bodies.  Internal 
management of the ministries remains centralised in the hands of minister. Since the establishment of 
the new government in October 2023, major reorganisation of some state administration bodies took 
place without prior analysis, leading to significant staff turnover.  

Adoption of amendments to the Law on access to information has been pending for years.  

The  legal  basis  is  in  place  to  ensure  the  citizens’  right  to  good  administration  in  administrative 
procedures,  but  cases  of  administrative  disputes  are  not  treated  in  a  reasonable  time.  The 

23 

 
 
Administrative  Court  has a  very  large  number  of  administrative  disputes  from  the  area of  access  to 
information, which results in a significant backlog.  

As  regards  the  strategic  framework  for  anti-corruption  and  integrity,  the  existing  legislation  on 
asset declarations, whistleblowers and lobbying does not provide effective measures for eliminating 
irregularities in public administration.  

Service delivery to people and businesses 

This still needs to be improved. The process of modernising public service delivery is slow. The Law 
on  administrative  procedures  was  not  consistently implemented,  notably  concerning the  ‘once only’ 
principle  and  electronic  communication.  Services  in  general  remain  bureaucratic  and  are  not  user-
friendly.  Currently  there  is  no  user-friendly  central  public  service  catalogue  or  standards  for  public 
service.  Moreover,  there  is  no  adequate  institutional  set-up  or  capacity  for  steering  administrative 
simplification across the public administration.   

There was some progress in digital governance, particularly regarding the interoperability framework 
and  the  electronic  exchange  of  data  among  various  government  bodies. Also,  the  e-Payment  portal 
became  fully  operational  in  2023,  allowing  citizens  to  electronically  pay  administrative  fees. 
Regarding cross-border  interoperability, Montenegro is   aligning  with  the  European  Interoperability 
Framework (EIF), but in practice interoperability for cross-border services needs to be substantively 
increased. 

The  government  should  work  towards  full  deployment  of  transactional  public  electronic  services 
under the e-government platform and interoperability of registers through the Reform Agenda. At the 
end  of  2023,  the  number  of  e-government  services  was  389,  down  from  403,  due  to  internal 
reorganisation and work on launching the new eGovernment Portal, expected by the end of 2024. A 
small  number  of  new  services  came  into  operation,  including  applications  for  student  loans  and 
scholarships.  Since  the  2022  cyber-attack,  the  Open  Data  Portal  has  been  operating  with  limited 
functionality and the government has been working on a new solution, with EU assistance.   

2.2.1  Chapter 23: Judiciary and fundamental rights 

The  EU’s  founding  values  include  the  rule  of  law  and  respect  for  human  rights.  An  effective 
(independent, high-quality and efficient) judicial system and an effective fight against corruption are 
of paramount importance, as is respect of fundamental rights, in law and in practice. 

Functioning of the judiciary  

Strategic documents 

A new strategic framework for the reform of the justice system is now in place.  

A new Judicial Reform Strategy 2024-2027 and its action plan were adopted in May 2024 in line with 
European  standards,  and 
its 
implementation,  including  representatives  of  the  main  stakeholders  in  the  executive,  judiciary  and 
state prosecution service.   

the  Government  established  a  new  council  for  monitoring 

Overall, the planning, monitoring and timely implementation of the strategic framework remains to be 
improved, and a holistic approach should be followed, involving all concerned stakeholders. 

Management bodies 

The management bodies are in place, but further efforts are needed to improve their performance and 
restore public trust in the judicial system. 

In June 2024, Montenegro adopted amendments to the Law on Judicial Council and Judges and the 
Law on the State Prosecution Service, further aligning them with the EU acquis and EU standards.  

The  main  bodies  managing  the  judicial  system  and  the  careers  of  judges  and  prosecutors  are  the 
Judicial  and  Prosecutorial  Councils.  Their  composition  and  appointment  procedures  are  broadly  in 
line with European standards. The role of the Minister of Justice as ex officio member of the Judicial 
Council remains to be further limited and a long-term legal solution found, to align with the European 

24 

 
 
standards in this regard, which specify that in such cases the Minister shall not vote on decisions on 
transfer  and  disciplinary  proceedings  for  judges,  as  a  minimum  safeguard.  The  Council  of  Europe 
Group  of  States  against  Corruption  (GRECO)  recommends  abolishing  the  ex-officio  membership 
altogether.  

Pending the legislative and constitutional changes needed to bring the constitution into line with these 
recommendations,  in  May  2024  the  Minister  of  Justice  issued  a  decision  recusing  himself  from 
participating  in  the  work  of  the  Judicial  Council,  which  was  supported  by  the  Government  as  the 
Prime Minister informed the Commission. He did not participate in the work of the Judicial Council 
since February 2024. In August, a new Minister of Justice was appointed.  

Another relevant standard on the  composition of the Judicial Council is that judges chosen by their 
peers must make  up  at least  half  of  its members  and  ex-officio judge members do  not  count in this 
regard. The present composition of the Council in Montenegro, it appears that judges selected by their 
peers are in a minority. This situation will also need to be addressed through legal amendments.  

In  addition,  the  Venice  Commission  has  noted  the  need  to  find  a  more  sustainable  solution  to  the 
regulation of the composition of the Prosecutorial Council and the method of election of its members, 
which could require adding a constitutional provision.  

Both Councils have yet to consolidate their regular work and practices, and to improve their strategic 
approach  to  addressing  deficiencies  in  the  operation  of  the  courts  and  prosecution  offices.  The 
working premises and conditions of both Councils are inadequate. The administrative capacity of both 
Council secretariats needs to be further strengthened. Overall, transparency is ensured, as the sessions 
of both Councils are public.  

Independence and impartiality 

The legal framework guaranteeing judicial independence and impartiality is in place. The June 2024 
substantial  amendments  to  the  Law  on  Judicial  Council  and  Judges  and  to  the  Law  on  State 
Prosecution Service ensured further alignment with the EU acquis and European standards regarding 
the independence, impartiality, accountability and integrity of the judiciary.  

5

n/a

16

15

10

20

18

Graph 2: Montenegro - Requests for protection from undue 
influence

Therefore,  Montenegro 
must  focus  its  efforts  in 
ensuring full and effective 
the 
implementation  of 
legal 
to 
framework 
address 
existing 
challenges,  and  continue 
its  alignment  to  further 
improve  it  by  addressing 
remaining 
the 
from 
recommendations 
the 
European 
Commission,  the  Venice 
Commission 
the 
Council  of  Europe  Group 
of 
against 
Corruption  (GRECO),  as, 
overall,  the  judiciary  and  the  prosecution  remain  perceived  as  vulnerable  to  political  interference, 
which may contribute to undermining the public trust in the judiciary.  

Outcome of decisions Validation
Outcome of decisions Pending

Requests received
Outcome of decisions Rejection

Prosecutorial council of Montenegro

Judicial Council of Montenegro

Source: Ministry of Justice

States 

n/a: not available

and 

2023

2022

2023

2022

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0

0

1

0

0

0

After  years  of  deadlock, in  November,  December  2023  and  January  2024  Parliament  appointed,  by 
qualified  majority,  a  new  permanent  Supreme  State  Prosecutor,  three  lay  members  of  the  Judicial 
Council  and  one  judge  of  the  Constitutional  Court,  through  a  transparent  and  merit-based  selection 
procedure. However, the appointment of a permanent President of the Supreme Court has failed eight 
consecutive times and is still pending. A new appointment procedure is currently ongoing.   

25 

 
 
The random allocation of cases is provided for by the Law on courts and implemented automatically 
through the judicial information system. However, limitations remain in very small courts, where the 
system is not functional due to the lack of judges. The system of random allocation of cases is yet to 
be introduced in the misdemeanour courts. 

Accountability 

15

20

Graph 3: Montenegro- Disciplinary 
procedures - 2023

The legal framework ensuring the accountability 
of  the  judiciary  is  largely  in  place  and  was 
further  improved  through  the  June  2024  legal 
amendments.  Its  full  and  effective  enforcement 
must be ensured to improve the accountability of 
the  judiciary  in  practice.  The  promotion  and 
standards  of 
enforcement  of  ethics  and 
behaviour 
professional 
and 
judges 
of 
prosecutors, 
implementation  of 
the 
and 
disciplinary  rules  and  ethics  for  judges  and 
prosecutors  remain  challenging.  There  is  an 
initial  track  record  of  reported  and  established 
violations  of  the  Codes  of  Ethics  and  of  the 
enforcement  of  disciplinary  accountability  of  judges  and  prosecutors.  However,  the  Judicial  and 
Prosecutorial Councils must improve their practice and proactiveness, since disciplinary proceedings, 
when  substantiated,  tend  to  result  in  relatively  minor  sanctions  and  dismissals  remain  rare.  The 
Ethical  Commission  of  the  Judicial  Council  did  not  perform  its  duties  between  August  2022  and 
March 2024, and there are no disciplinary violations by judges established in 2023.  

Sanctions pronounced

Prosecutors

Completed

Source: CEPEJ

Initiated

Judges

10

11

16

5

3

0

2

0

0

In December 2023, the Agency for the Prevention of Corruption adopted a step-by-step methodology 
for  the  in-depth  verification  of  assets  and  income  declarations  for  judges  and  prosecutors  based  on 
European  best  practice,  which  introduces  a  risk-based  approach  for  initiating  cases  ex-officio,  thus 
improving  the  accuracy,  quality,  efficiency,  and  impartiality  of  the  Agency’s  work  in  this  area. 
However,  there  have  been  no  convictions  of  judges  and  prosecutors  based  on  criminal  proceedings 
arising from checks of asset declarations.  The verification of asset declarations can be improved by 
providing for substantive checks by the Agency, as well as the effective disciplinary action by the two 
Councils for failure to submit assets and income declarations to the Agency.  

codes 

There was no progress 
implementing 
in 
ethical 
for 
public 
notaries, 
bailiffs, 
court 
interpreters,  and  there 
is no code of ethics for 
lawyers.  The  Ministry 
of Justice established a 
special  Directorate  for 
judicial 
supervision 
the 
increased 
and 
number  of  officials 
(General  Director  and 
judicial 
eight 
The 
inspectors). 
three 
positions 
judicial inspectors remain vacant. In 2023, judicial inspectors performed supervision on the work of 
21 courts, 16 state prosecution offices, 44 notaries and 21 public bailiffs’ offices.  

and 

of 

Quality of justice  

The quality of justice needs to be improved. The Judicial and Prosecutorial Councils regularly adopt 

26 

 
 
plans  for  filling  vacant  judicial  and  prosecutorial  positions  through  single  nationwide  competitions. 
However, a significant portion of vacancies exists in both the judiciary and prosecution. Specifically, 
17.6%  of  judicial  positions  and  39.7%  of  prosecutorial  positions  need  to  be  filled.  Only  a  small 
number of candidates applied for the competition for trainees in courts published in January 2024.  

Rules on the evaluation of judges and prosecutors were revised, introducing a system of evaluation for 
judges of the Supreme Court for the first time.  

While judges and prosecutors are occasionally evaluated (84 in 2023), both Councils still do not carry 
out systematic regular professional appraisals.  

Furthermore,  the  quality  of  appraisals  needs  to  improve  with  a  detailed  assessment  of  individual 
performance and capacity, including quality and quantity of the completed tasks. The effectiveness of 
the  judiciary  is  hampered  by  the  lack  of  strategic  investment  in  human  resources,  ICT  and 
infrastructure.  The  2023  annual  budget  for the  judiciary  was  EUR  30.6 million,  which  stakeholders 
considered insufficient. Furthermore, at all levels of the judiciary, the allocated working spaces and 
working conditions including equipment, are considered 
inadequate.  

Graph 5: Montenegro - Alternative 
dispute resolution - 2023

3125

The  functioning  of 
the  Judicial  Training  Centre 
continues  to  improve,  and  its  2023  budget  was  in 
accordance with the amount prescribed by law.  

234

1124

The  positive  trend  in  alternative  dispute  resolution 
continued and the system continued to expand.  

Settlement
agreements

Finalised
court-related
mediations

Mediators

Mediation cases

Source: CEPEJ

In  2023,  Montenegro  spent  EUR 42.2  million  on  the 
implemented  judicial  system  budget  (EUR  66.5  per 
inhabitant, significantly above Western Balkans average 
of EUR 45.2 per inhabitant).  

Efficiency 

3500
3000
2500
2000
1500
1000
500
0

The efficiency of justice needs to be significantly improved.  

The  backlog  of cases  pending  before  courts is significant.  At  the  end  of  2023, the  number  of cases 
older  than  3  years  increased  by  20%.  The  average  disposition  time  in  2023  increased  to  309  days 
(2022: 238 days). It is of particular concern that the disposition time of Administrative Court cases 
further increased to 1 411 days (2022: 1 158).  

The clearance rate in 2023 remained at 82.49%.  

The  judicial  system  suffers  from  inadequate  human  resources  and  courtrooms.  In  May  2024,  the 
Ministry  of  Justice  adopted  a  new  2024-2027  Plan  for  the  Rationalisation  of  the  Judicial  Network. 
Montenegro must complete the rationalisation of the judicial network based on the existing analyses 
and the adopted plan. More efforts are needed to digitalise justice system, in particular in relation to 
communication  with  courts.  A  new  Directorate  for  judicial  infrastructure  was  formed  within  the 
Ministry  of  Justice.  As  regards  the  digitalisation  of  the  judicial  system,  in  September  2023  the 
Secretariat  of  the  Judicial  Council  adopted  alternative  solutions  to  improve  the  existing  Judicial 
Informative System (PRIS). Once the new Strategy for the digitalisation of the judiciary  is adopted, 
these measures will be applied, to enable advanced reporting through IT tools. 

27 

 
 
Graph 6.1: Montenegro - Efficiency of 
courts (%) 

Graph 6.2: Montenegro - Efficiency of 
courts (days) 

95

81

94

83

89

85

72

67

100
90
80
70
60
50
40
30
20
10
0

662

492

313

305

110

118

201

132

700

600

500

400

300

200

100

0

1st instance

2nd
instance

1st instance

2nd
instance

Criminal cases

Non-criminal cases*

Clearance rate in 2022 %
Clearance rate in 2023 %

* Civil and commercial cases, administrative
cases, non-litigous cases, other cases

Source:CEPEJ

1st instance

2nd
instance

1st instance

2nd
instance

Criminal cases

Non-criminal cases*

Disposition time 2022 (days)
Disposition time 2023 (days)

* Civil and commercial cases, administrative
cases, non-litigous cases, other cases

Source:CEPEJ

Domestic handling of war crimes 

Montenegro’s  track  record  in  the  domestic  handling  of  war  crimes  must  continue  improving,  by 
applying a proactive approach to effectively investigate, prosecute, try, and punish war crimes in line 
with  international  law  and  standards,  including  full  cooperation  with  the  International  Residual 
Mechanism for Criminal Tribunals, and to ensure access to justice and reparations for victims. 

In June 2024, the Supreme State Prosecution Office adopted a new War Crimes Investigation Strategy 
for  2024-2027.  To  ensure  effective  implementation,  Montenegro  needs  to  improve  its  proactive 
investigation and prosecution of war crimes, in line with international humanitarian law.  

In  May  2024,  the  Criminal  Procedure  Code  (CPC)  was  amended  to  address  the  legal  and  practical 
obstacles to effectively investigating, prosecuting, trying and punishing war crimes, in line with the 
recommendations of the International Residual Mechanism for Criminal Tribunals (IRMCT).  

The Special State Prosecutor's Office (SSPO) is currently investigating 12 cases. In June 2024, SSPO 
launched an investigation against the former Chief Special Prosecutor for alleged war crimes against 
civilians during the 1990s war in Croatia. In 2023, 10 requests for legal assistance were received (five 
from  Bosnia  and  Herzegovina,  three  from  Serbia,  one  from  Kosovo,  and  one  from  Croatia). 
Responses were provided to eight requests, while the process is ongoing in two cases.  

Six  requests  for  international  legal  assistance  were  sent  (two  to  Serbia,  two  to  Bosnia  and 
Herzegovina  and  two  to  Croatia).  The  SSPO  made  progress  on  the  proactive  investigation  and 
prosecution of war crimes. Cooperation with the IRMCT has intensified, resulting in the transmission 
of material from the IRMCT Office, indicating the involvement of Montenegrin citizens in wartime 
events  in  Bosnia  and  Herzegovina.  Based  on  this  material,  in  December  2023,  the  SSPO  in 
cooperation  with  the  competent  authorities  of  Bosnia  and  Herzegovina  issued  an  order  for 
investigation against one individual for the crimes against humanity as per the Criminal Code. In June 
2024, following the investigation, the SSPO issued an indictment in this case. 

Montenegro participates in the regional  Missing Persons Group and is implementing the framework 
plan  signed  in  2018.  There  is  cooperation  with  neighbouring  countries  under  bilateral  cooperation 
protocols. The Commission on Missing Persons of Montenegro has compiled a list of missing persons 
that includes 51 active cases of Montenegrin citizens or people whose families reside in Montenegro. 

 This designation is without prejudice to positions on status and is line with UNSCR 1244/1999 and the ICJ Opinion on the 

Kosovo declaration of independence. 

28 

 
 
   
 
 
Fight against corruption  

Track record 

The track record on fighting corruption remained stable. The track record regarding investigations and 
prosecutions in cases of high-level corruption remained stable and needs to be further consolidated.  

The track record on preventing corruption improved in quantitative terms. In 2023, the Agency for the 
Prevention  of  Corruption  (ACA)  received  the  highest  number  of  income  and  assets  declarations 
compared to previous years, an increase of 11.5%. The growth is due to an increased number of newly 
appointed  public  officials,  as  well  as  a  higher  number  of  declarations  submitted  on  termination  of 
office.  

On incompatibility of functions and conflict of interest, the ACA issued in 2023 the highest number of 
opinions in a year since it was established – 227. The impact of controls on funding of political parties 
and  electoral  campaigns  remains  limited,  due  to  the  unclear  provisions  in  the  legislation,  namely 
regarding the exemption of some categories of political subjects from the ACA’s scrutiny.  

As regards whistleblower’s reports, in 2023 the ACA received the highest number of cases since its 
establishment (190), of which 45% were submitted anonymously. In the same period, it forwarded 17 
cases  to  the  competent  prosecutor's  offices  and  21  reports  to  other  competent  institutions.  Two  of 
these  resulted  in  irregularities  being  found.  The  ACA  initiated  its  highest  ever  number  of 
misdemeanour  proceedings  with  the  misdemeanour  courts  for  violations  of  anti-corruption  laws  (a 
29.7% increase over 2022). In 2023, of the total number of whistleblower reports, 4.8% related to the 
private sector. 

The  ACA  developed  a  pre-appointment  integrity  checklist,  to  be  applied  to  the  Agency’s  future 
employees, thus partly fulfilling one recommendation in the 5th GRECO evaluation round. Following 
the  election  of the  new  Council  in  August  2024,  a  Code  of  Ethics  and  new  Rules  of  Procedure for 
ACA’s employees were adopted.  

Further  work  is  needed  to  effectively  address  the  2021  EU  peer  review  recommendations  on  the 
ACA’s mandate and functioning, including in dealing with conflicts of interest. 

Institutional framework 

The institutional framework on preventing corruption is in place but needs to be strengthened, both as 
regards  prevention  and  law  enforcement  capacities.  As  regard  prevention,  the  key  institution  for 
promoting integrity and preventing corruption, through investigations related to asset declarations and 
verifications, is the ACA. In performing its activities, the ACA cooperates with several public bodies, 
including the prosecution services and the State Audit Institution (SAI).  

While  overall  the  ACA’s  results  further  improved  in  quantitative  terms,  its  working  methods  and 
governance have been criticised, regarding a formalistic approach that impedes the effectiveness of its 
work.  Since  July  2023  the  ACA  worked  in  an  incomplete  institutional  set  up,  due  to  the  one-year 

29 

 
 
 
vacancy of the Agency’s Council, which ended with the election of a new Council by the Parliament 
on 31 July 2024. In April 2024, the Agency’s Director was arrested for alleged abuse of office and 
damaging the state budget by over EUR 100 000. An investigation led by the SSPO is ongoing. In the 
meantime, as of 15 August  2024, the new ACA’s Council dismissed the former Agency’s Director 
and  appointed  as  Acting  Director  a  former  head  of  ACA’s  section  for  implementation  of  control 
measures  in  financing  of  political  entities  and  election  campaigns.  The  appointment  of  a  full-term 
director will be done through a public call. The ACA’s independence, impartiality and accountability 
need to continue strengthening. 

In  2023,  the  SAI  performed  audit  reports  on  both  financial  and  regularity  audits  from  2022  for 
10 political  entities  and  submitted  them  to  Parliament  in  line  with  the  Protocol  on  cooperation 
between the SAI and Parliament. 

As  regard  tackling  corruption,  the  Special  State  Prosecution  Office  (SSPO)  leads  prosecutions  in 
cases  of  high-level  corruption.  The  Chief  Special  State  Prosecutor  also  leads  the  Special  Police 
Department  (SPU).  As  in  previous  years,  the  SSPO’s  human  resources  remain  insufficient  to  cope 
with its workload. Also worrying is the shortage of police officers assigned to the SPU: currently only 
30 out of 50 positions are filled.  

The office conditions are well below the minimum required European standards. This prevents SSPO 
and SPU from performing their duties appropriately, efficiently and independently. The High Court of 
Podgorica, whose remit covers organised crime, corruption, terrorism and war crimes, is understaffed. 

Strategic documents 

A new upgraded strategic framework for preventing and fighting corruption is now in place. 

In  February  2024,  the  government  established  a  new  National  Council  for  the  Fight  against 
Corruption,  headed  by  the  Deputy  Prime  Minister  for  the  Political  System,  Justice  and  Anti-
Corruption. In May 2024, Montenegro adopted a new 2024-2028 anticorruption strategy and its action 
plan,  aiming  to  align  with  European  and  international  standards,  by  addressing  prevention  and 
repression of corruption, as well as international cooperation.  The National Council will monitor its 
implementation,  and  ensure  an  integrated  approach  to  the  prevention  and  fight  against  corruption, 
where different entities should work in coordination.  

Legal framework 

The  legal  framework  on  the  prevention  and  fight  against  corruption  is  largely  in  place.  The 
prosecution  service  and  courts  must  substantially  improve  the  effective  enforcement  of  criminal 
legislation, including preventive measures.  

In  this  regard,  good  progress  was  achieved  with  the  adoption  in  June  2024  of  a  new  Law  on 
prevention of corruption with the aim to align it with European standards. It includes new provisions 
to  improve  the  protection  of  whistleblowers,  pending  the  adoption  of  a  specific  law.  In  addition, 
amendments to the Criminal Code and the Law on games of chance, and a new Law on prevention of 
money laundering and financing of terrorism, were adopted. 

Montenegro  adopted  in  May  a  new  Law  on  lobbying  in  line  with  the  EU  acquis  and  European 
standards.  It  must  now  be  complemented  by  the  timely  adoption  of  nine  pieces  of  implementing 
legislation, drafted in line with EU and Council of Europe experts’ recommendations.  

In  May  2024,  Montenegro  adopted  amendments to the  Law  on  seizure  and  confiscation  of material 
benefit  derived  from  criminal  activity  to  address  existing  loopholes  in  the  legal  framework  and 
practice  on  assets  confiscation.  The  changes  aim  to  address  relevant  EU  acquis  and  European 
standards.  While  seizure  and  confiscation  of  illicit  assets  is  adequately  prioritised,  financial 
investigations should also always trace the financial flows behind criminal activities. 

There  is  scope  to  improve  the  legal  framework  by  further  aligning  it  with  existing  EU  acquis, 
international  standards,  and  Venice  Commission  recommendations.  Montenegro  has  yet  to  address 
several recommendations made by the EU peer review missions conducted in 2021 and 2022, and the 
GRECO evaluation reports, including the fourth and fifth evaluation rounds. In 2023, the ACA issued 

30 

 
 
13 opinions for improving the legal framework related to corruption. Likewise, several of the Venice 
Commission and European Commission’s recommendations remain to be addressed. 

The Law on financing of political entities and election campaign (LFPEEC) has not yet been amended 
to  bring  it  fully  in  line  with  European  standards,  notably  through  complying  with  GRECO  and 
ODIHR recommendations to substantially increase transparency, control of the spending of political 
parties and prevent abuse of state resources, including dissuasive sanctions. Montenegro has to ensure 
that it treats the LFPEEC separately from the comprehensive electoral reform legislative package, in 
view of accelerating the work to amend the Law by the end of 2024. 

Fundamental rights  

General framework 

The general framework for fundamental rights is satisfactory. 

International human rights instruments  

Montenegro  has  yet  to  ratify  the  International  Convention  on  the  Protection  of  the  Rights  of  All 
Migrant Workers and Members of their Families, the 2014 Protocol to the ILO 1930 Forced Labour 
Convention,  and  the  2019  Framework  Convention  on  Tourism  Ethics  of  the  UN  World  Tourism 
Organization.  

350
300
250
200
150
100
50
0

Montenegro  needs  to  improve  its  mechanisms 
rights 
to 
reporting 
for 
mechanisms  and 
their 
recommendations,  as  highlighted  during  the 
universal periodic review in 2018.  

the  UN  human 
following  up  on 

European Court of Human Rights  

Graph 8: Montenegro - ECtHR judgments 

292

144

89

84

to 

ensure 

continues 

Montenegro 
good 
cooperation with the European Court of Human 
Rights  (ECtHR).  During  the  reporting  period, 
the  Court 
found  breaches  of  European 
Convention  on  Human  Rights  in  nine cases,  all 
related  to  the  right  to  a  fair  trial  and  the 
protection of property. Currently, there are three 
cases  under  enhanced  supervision  by 
the 
Committee  of  Ministers  relating  to  non-enforcement  of  domestic  decisions  against  socially/State-
owned companies (no cases last year). Montenegro needs to find a solution to the systemic problems 
in relation to these cases and to ensure systematic enforcement of ECtHR judgements.  

New
allocated
applications
16.06.2022 - 15.06.2023

16.06.2023 - 01.09.2024
Source: ECtHR

Pending
applications

Judgments Breaches

9

9

0

0

Promotion and enforcement of human rights  

There  are  shortcomings  regarding  access  to  justice  and  enforcement  of  rights  in  administrative  and 
judicial  proceedings,  in  particular  for  vulnerable  groups.  By  31  July  2024,  the  backlog  of  cases 
pending before the Constitutional Court stood at 2 440, of which 2 107 are related to the protection of 
human  rights.  The  duration  of  proceedings  before  the  Constitutional  Court  needs  to  be  reduced  to 
comply with the ECtHR case law on the effectiveness of the constitutional complaint as a domestic 
legal remedy.  

Although  the  revision  of  the  criminal  legislation  (Criminal  Code  and  Procedural  Criminal  Code)  is 
ongoing,  further  efforts  are  needed  to  align  it  with  the  EU  acquis,  and  European  and  international 
standards on victims’ rights and procedural safeguards.  

31 

 
 
yet 

and 

The Ministry of Human and 
Minority  Rights  (MHMR) 
was  reinforced,  with  staff 
increases 
a 
reorganisation.  Montenegro 
has 
a 
to 
comprehensive  monitoring 
and  data  collection  system 
level  of 
the 
to  assess 
implementation  of  human 
rights  legislation,  policies, 
and strategies.  

adopt 

Graph 9: Montenegro - Promotion and enforcement of 
human rights

10000

1000

100

10

1109

979

658

1107

958

455

19,3

38

1

2022

Complaints
Decisions
Recommendations to the authorities
Implementation of the recommendationsby the authorities (% of the total)

The 
and 
regulatory 
institutional  framework  of 
the  Ombudsperson’s  Office 
is not fully aligned with the 
The 
Paris 
principles. 
and 
decisions 
recommendations  of 
the 
Office  are  non-mandatory, 
and  Montenegro  needs  to 
improve  their  systematic  follow-up  across  all  public  institutions.  The  2024  budget  for  the  Office 
increased by 1% compared with the 2023 budget and is adequate and sustainable. The Office’s staff is 
satisfactory (35 in 2023). The Ombudsperson’s office also functions as Equality Body. 

Source: Ombudsperson's Office Annual Report 2022 and 2023

Main themes: children's rights, youth and social protection; economic, social and cultural rights 

*The ombudsperson also acts as equality

Ombudsperson*

2023

Prevention of torture and ill treatment 

Montenegro  made  limited  progress  in  addressing  the  recommendations  of  the  European  Committee 
for  the  Prevention  of  Torture  and  Inhuman  or  Degrading  Treatment  (CPT)  and  the  UN  Committee 
Against Torture (CAT). The December 2023 amendments to the Criminal Code removed the statute 
of  limitations  regarding  the  crime  of  torture  but  did  not  abolish  it  concerning  the  extortion  of 
testimony and ill treatment. The amendments increased the penalties for torture, but the definition of 
torture  is  not  aligned  with  CAT’s  recommendation.  There  are  systemic  shortcomings  and  delays  in 
investigating and prosecuting cases of alleged violence by law-enforcement officers, as well as cases 

of violence in prisons.  

In 
the 
2023, 
Ombudsperson’s  Office 
received  57  complaints 
about  the  conduct  of  the 
police,  with  the  majority 
concerning allegations of 
potential 
inhumane  or 
degrading  treatment.  In 
February 
the 
Basic 
Cetinje 
Office 
Prosecutor’s 
suspended 
the 
investigation 
against 
police  officers  suspected 
of tampering with reports 
on  the  use  of  tear  gas 
during the September 2021 protests against the enthronement of the Metropolitan of Montenegro, due 
to lack of evidence.  

2024, 

In February 2024, the Niksic Basic Court ruled that the police used excessive force to dismantle the 

32 

 
 
peaceful civic protest and that the state failed to prove the legality and proportionality of the police 
action.  

In  2023,  the  National  Prevention  Mechanisms  (NPM)  received  76  complaints,  from  individuals 
deprived of liberty, against the Administration for Execution of Criminal Sanctions and 52 against the 
Police Administration. The NPM issued 63 recommendations to institutions and relevant ministries. 

Execution of sentences with imprisonment  

In  June  2023,  the  government  adopted 
the 2023-2024 action plan for the 2023-
2026  strategy  for  the  execution  of 
criminal  penalties.  Parts of  the  existing 
prison  and  remand  facilities  underwent 
modernisation. 
adaptation 
Preparations  for  constructing  the  new 
prison  facility  in  Mojkovac  and  four 
facilities in Spuz are ongoing.  

and 

100

80

60

40

20

Graph 11: Montenegro - Prisons 

76,9

78,5

11

13

0

some 

improvement, 

Despite 
the 
material  conditions  in  prisons,  pre-trial 
detention 
facilities  and  psychiatric 
hospitals  are  still  below  international 
standards.  Poor  conditions  and  severe 
overcrowding in remand prisons in Podgorica and Bijelo Polje and the living conditions and hygiene 
in the overcrowded Dobrota psychiatric hospital remain issues of concern.  

Average duration of pre-trial
detention (months)

Source: Administation for execution of criminal sanctions

Occupancy rate (%)

2023

2022

Protection of personal data  

The Law on personal data protection remains to be aligned with the EU acquis. Montenegro has not 
yet  ratified  the  2018  Council  of  Europe  Protocol  amending  the  Convention  for  the  Protection  of 
Individuals with regard to Automatic Processing of Personal Data (CETS 223).  

Graph 12: Montenegro - Data protection

87

150

100

127

The  human  and 
financial  capacity 
as  well  as  the  IT 
the 
expertise  of 
for 
Agency 
Data 
Personal 
and 
Protection 
Free  Access 
to 
Information  does 
the 
not  match 
legal 
agency’s 
responsibilities. In 
January 2024, a new Director of the Agency was appointed.  

Complaints
received

Inspections

n/a: not available

20

50

2022

0

4

4

20

0

0

n/a

n/a

Decisions

Administrative
sanctions

Declarations of
data breaches

2023

Source: Agency for Personal Data Protection and Free Access to Information 

Freedom of religion or belief  

The  rights  to  freedom  of  religion  or  belief  are  broadly  respected.  In  April  2024,  the  Constitutional 
Court rejected the pending requests to assess the constitutionality of the  Law on the amendments to 
the  Law  on  freedom  of  religion  or  belief  and  the  legal  status  of  religious  communities,  and  the 
Fundamental Agreement between the State of Montenegro and the Serbian Orthodox Church.  

---------------------------------------------------------------------------------------------------------------------------
------------------------- 

Freedom of expression 

Protection of journalists  

The authorities provided a generally prompt and effective institutional and law enforcement response 

33 

 
 
to new cases of violence against journalists. In April 2024, the Supreme State Prosecutor (SSP) issued 
a  binding  instruction  to  all  state  prosecutor's  offices,  mandating  urgent  intensification  of 
investigations into cases involving violence against journalists, and attacks on media property.  

The SSP also instructed the prosecution to provide prompt feedback on all the recommendations made 
by  the  ad  hoc  commission  for  monitoring  cases  of  violence  against  media.  In  December  2023,  the 
Special State Prosecutor's Office (SSPO) filed an indictment in the case of the 2018 shooting of an 
investigative journalist. The Podgorica High Court confirmed the indictment in August 2024 

The  authorities  reported,  and  independent  sources  confirmed,  a  notable  decrease  in  the  number  of 
cases of violence against media in 2023, with 11 cases registered by the police (in 2022: 22 cases). 
However,  concerns  remain  about  the  several  incidents  of  harassment  by  senior  public  officials 
reported by journalists in 2024.  

Legislative environment  

The  new  media  legislation,  which  was  enacted  in  June  2024,  provided  a  number  of  legislative 
improvements,  including  the  alignment  with  the  EU's  Audiovisual  Media  Services  Directive.  In 
October 2023, the government adopted its 2023-2027 Media Strategy, with the accompanying action 
plan for 2023-2024.  

It is the first government strategy in the field of media policy, designed through extensive engagement 
with  civil  society  and  the  media,  and  it  aims  to  promote  an  environment  conducive  to  free  and 
professional journalism. 

Implementation of legislation/institutions  

The legal provisions regulating the transparency of public funding allocations for media are yet to be 
fully implemented. Only 37% of active media and 9% of public sector entities complied with the legal 
requirement  to  disclose  the  public  funding  received  and  allocated  to  media,  respectively.  The  new 
media  legislation  addresses  the  issue  of  registration  for  online  media,  which  remains  to  be 
implemented in practice in line with applicable international standards.  

Public service broadcaster  

In  December  2023,  Parliament  adopted  an  amendment  to  the  Law  on  Radio  and  Television  of 
Montenegro  (RTCG),  providing  for  continuity  of  predictable  funding  for  RTCG.  The  new  Law  on 
RTCG was enacted in June 2024.  

First-instance  courts  delivered  two  rulings  overturning  as  unlawful  the  RTCG  Council’s  re-
appointment of its Director-General in June 2023.  In April and May 2024 two first instance rulings 
found the  June  2023  re-appointment of the  RTCG  Director  General  as  unlawful.  Both  rulings  were 
appealed. A preliminary criminal investigation into the case is ongoing. The RTCG Director-General 
resigned in July 2024, but continued to serve as acting Director-General. In August 2024, the RTCG 
Council  appointed  the  same  person  to  a  full-term  position,  raising  questions  about  lack  of 
transparency  and  possible  breach  of  legal  procedure.  The  competent  national  authorities  need  to 
effectively address any situations of possible unlawful conduct at the RTCG, in line with the national 
legislation and relevant international and European standards. 

Economic factors 

The  economic  viability  of  commercial  media  remained  constrained  by  a  relatively  small  audience 
base and limited advertising market. The new Media Law introduced a major increase in state funding 
for  content  of  public  interest  in  broadcast,  print  and  online  media,  raising  the  Media  Pluralism  and 
Diversity  Fund  from  0.09%  to  0.2%  of  the  current  national  budget.  This  made  public  funding  an 
increasingly significant source of income for the commercial media.  

Internet  

Internet provision functioned without undue restrictions.  

Freedom of artistic expression 

34 

 
 
In May 2024, a manager of a public theatre in Niksic refused to allow the staging of a theatrical play 
addressing the issue of gender equality and violence against women. The decision was condemned by 
public authorities, including the Ombudsperson’s Office.  

Professional organisations and working conditions 

The  media  landscape  is  pluralistic,  but  highly  polarised,  with  the  media  community  divided  along 
political lines. Only around 10% of media outlets were involved in some form of self-regulation. The 
rare  existing  self-regulation  instruments  are  fragmented,  with  the  public  largely  unaware  of  the 
complaint mechanisms available to them.  

Overall,  media  professionals  continued  to  report  poor  working  conditions,  including  salaries  below 
the national average, self-censorship and various forms of pressure and undue influence, both external 
and  within  their  editorial  offices.  No  progress  was  made  towards  the  signing  of  the  long-overdue 
sectoral collective agreement for the media industry.  

---------------------------------------------------------------------------------------------------------------------------
------------------------- 

Freedom of assembly and association  

The rights to freedom of assembly and association are broadly respected. 

Labour and trade union rights are covered in Chapter 19 - Social policy and employment. 

Property rights  

The  process  of  restoring  properties  expropriated  in  the  past  remained  slow.  In  December  2023,  the 
Council of Europe Committee of Ministers adopted a Resolution on the closure of the case Nesic v. 
Montenegro  concerning  expropriation  of  costal  land,  assessing  that  Montenegro  has  taken  all 
measures  to  execute  the  ECtHR  decision.  Montenegro  needs  to  ensure  fair  restitution  proceedings 
within a reasonable time and the full independence of the three Regional Restitution Commissions. 

Non-discrimination  

Social  polarisation  continued  during  the  reporting  period.  The  most  vulnerable  groups  in  society 
(including Roma and Egyptians, people with disabilities, LGBTIQ people) continued to be subjected 
to  discrimination,  hate  speech  and  hate  crime.  Significant  progress  on the  criminalisation  of  racism 
and  hate  speech  has  been  made  with  the  amendments  to  the  Criminal  Code  adopted  in  December 
2023, aiming to align it with relevant EU acquis.  

There is scope to increase the number of prosecuted cases based on the amended Code, and ensure 
appropriate  institutional  follow-up,  including  by  law  enforcement.  A  new  Law  on  Prohibition  of 
Discrimination is being finalised with the support of the European Commission, aiming to fully align 
with the EU acquis and European standards on anti-discrimination.  

In 2023, the Ombudsperson’s Office worked on 243 complaints of discrimination (2022: 256). As in 
previous years, most complaints were related to labour and employment. In 2023, the Ombudsperson 
processed 12 cases of hate speech and 7 cases in the field of public discourse / media (2022: 16 and 
14, respectively).  

Gender equality  

The  Ministry  of  Human  and  Minority  Rights’  mid-term  evaluation  of  implementation  of  the  2021-
2025  National  Gender  Equality  Strategy  and  its  2023-2024  action  plan  showed  a  strong  downward 
trend  of  budget  allocations  for  gender  equality  and  the  marginalisation  of  gender  equality  on  the 
political agenda.  

The Law on gender equality is not sufficiently aligned with the EU acquis and international standards. 
Policy  measures  for  achieving  and  improving  gender  equality,  the  obligation  to  perform  gender 
analysis  in  different  sectors  and  the  institutional  framework  for  achieving  gender  equality  are  not 
defined.  A  new  law  on  legal  gender  recognition  on  the  basis  of  self-determination  remains  to  be 
adopted.  

35 

 
 
In July 2023, the second Gender Equality Index in Montenegro was published, with a score of 59.3, 
an improvement of 4.3 index value points compared to 2019, but it is still 9.3 index points below the 
EU-27  average.  The  index  shows the  highest  gap  in  gender  equality  in  the  area  of  power, and 
the lowest gap in the area of health, compared to the EU-27 average.  

In  May  2024, the  UN  Committee  on the  Elimination  of  Discrimination  Against Women  (CEDAW) 
published  its  concluding  observations  on  the  third  periodic  report  on  Montenegro.  It  welcomed  the 
progress achieved since 2017 on legislative reforms, but noted with concern the lack of penalties for 
non-compliance with the Gender Equality Law, the only law that provides clear and legally binding 
requirements  for  incorporating  gender  into  all  aspects  of  policymaking  and  carrying  out  gender-
related analysis.  

It  also  noted  that  women’s  access  to  justice  and  the  national  institutions  for  promoting  women’s 
advancement  still  need  to  be  improved  and  it  called  for  an  end  to  harmful  practices  such  as  sex-
selective abortions and patriarchal attitudes and gender stereotypes regarding the roles of women and 
men in the family and in society. 

Graph 13: Montenegro- Violence against women 
(including domestic and sexual violence)

481

496

330

600

500

400

300

200

100

0

253

189

155

1

1

2

Police reports

Final criminal
convictions

Violence against women

Femicides

2021

2022

2023

Gender-based  violence  remains  a 
matter  of  serious  concern.  In  July 
2023,  the  National  plan  for  the 
implementation  of  the  2023-2027 
Istanbul  Convention  was  adopted. 
The  December  2023  amendments 
the  Criminal  Code  were 
to 
sexual 
adopted, 
in  a 
harassment  and  ‘violence 
family  or  family  community’  as 
new  criminal  offences.  This  will 
bring more operational clarity as to 
when  domestic  violence  qualifies 
as  a  misdemeanour  or  a  criminal 
offence.  

defining 

Source: Ministry of interior

it  does  not  address 
femicide, digital violence and gender-based hate speech. The definitions of gender-based violence and 
domestic violence across legislation need to be further aligned with the Istanbul Convention and the 
recommendations by the Group of Experts on Action against Violence against Women and Domestic 
Violence  (GREVIO).  The  effective  implementation  of  the  legislative  framework  also  needs  to  be 
improved. 

However, 

Rape crisis and/or sexual violence referral centres have still not been set up. Measures to ensure wider 
levels  of  awareness  of the harmful  effects  of  domestic  violence  on  children  are missing,  as  well  as 
adequate resources for psycho-social counselling for the children affected. Protection orders need be 
available for immediate protection to all victims of domestic violence as well as access to free legal 
aid for all victims, in particular through active measures to ensure victims are aware of this right. The 
database for domestic violence as part of the Integrated Social Welfare Information System (SWIS) 
covers cases of domestic and non-gender-based violence.  

In  2023,  of  all  imposed  misdemeanour  penalties,  the  most  frequent  were  fines  (29%),  and  20%  of 
cases  ended  with  an  acquittal.  Prison  sentences  were  imposed  in  only  around  10%  of  all  cases. 
Restraining orders were issued in only 18% and evictions of perpetrators from the apartment in only 
8% of completed cases. The range of available emergency measures to protect victims during ongoing 
proceedings is rarely used. 80% of misdemeanour cases last up to 6 months.   

Rights of the child  

The legislative and institutional framework is largely aligned with the EU acquis, international human 
rights instruments, including all areas covered by the UN Convention on the Rights of the Child and 
its optional protocols. Challenges remain in effectively implementing the legislative and institutional 

36 

 
 
framework, due to a poor accountability framework, inappropriate and insufficient capacity, lack of 
systematic  monitoring  and  sufficient  funding,  and  lack  of  quality  assurance  for  existing  laws, 
strategies and action plans.  

In 2023, the Children’s Rights Council did not meet regularly. On 29 December 2023, the government 
adopted  a  decision  on the new  composition  of the  Council,  chaired  by the  Vice  Prime Minister for 
Demography  and  Youth,  but  it  held  only  three  thematic  sessions.  The  recent  amendments  to  the 
Criminal Code aligned the definition of a child with the recommendations of Committee on the Rights 
of  the  Child  (CRC),  significantly  tightened  the  penal  policy  regarding  child  sexual  abuse  and 
introduced specific surveillance measures for perpetrators after they are released from prison.  

There  was  no  follow-up  on  UN  monitoring  bodies’  recommendations  and  Resolution  1468  of  the 
Council  of  Europe  Parliamentary  Assembly,  recommending  that  Montenegro  amend  its  family  law 
and raise the minimum age for entering a marriage to 18 years, without exception. Montenegro is late 
in submitting its fourth periodic report to the UN CRC (it was due in November 2023).   

Violence against children remains a matter of serious concern. In August, Montenegro established a 
paedophiles  register  with  currently  98  registered  individuals.  Access  to  justice  for  children,  in 
particular  in  vulnerable  groups,  still  needs  to  be  improved.  Child-friendly  proceedings  are 
implemented  only  sporadically  in  criminal  court  cases  for  children  in  conflict  with  the  law,  child 
victims and witnesses of crime, while in civil and family law-related and misdemeanour proceedings 
children  are  often  invisible.  The  amendments  to  the  law  on  the  Treatment  of  Juveniles  in  Criminal 
Proceedings  –  which  should  guarantee  better  protection  for  children  in  criminal  proceedings  and 
which define ‘child’ as recommended by the CRC – are pending adoption . An updated Strategy on 
prevention and protection of children from violence is not in place.  

In 2023, the Ombudsperson received 240 complaints related to children’s rights (2022: 237)  

Persons with disabilities  

Persons  with  disabilities  cannot  fully  exercise  their  rights  and  continue  facing  multiple  forms  of 
discrimination. There was no progress in this area except the re-establishment of the Directorate for 
Persons  with  Disabilities  at  the  Ministry  of  Human  and  Minority  Rights  (MHMR)  and  the 
establishment  the  Council  for  the  Rights  of  Persons  with  Disabilities  in  April  2024,  which  had  its 
constitutive session on 19 July 2024. Montenegro needs to ensure implementation of the provisions of 
the UN Convention on the Rights of Persons with Disabilities.  

Montenegro has yet to adopt the draft law on a unified disability assessment body, which will be the 
basis  for  reforming  the  system  to  bring  about  more  just,  more  equal  and  easier  access  to  rights, 
enabling a shift from a medical to a human rights-based model. Montenegro has yet to adopt the law 
on professional rehabilitation and employment of persons with disabilities, which would also regulate 
the  location  and  management  of  the  corresponding  fund.  The  National  Council  for  the  rights  of 
persons  with  disabilities,  the  entity  in  charge  of  monitoring  the  implementation  of  all  laws  and 
strategies  to  promote  rights  and  to  support  better  coordination  on  disability,  remains  unable  to 
exercise  its  functions.  The  recommendations  of  the  UN  Committee  on  the  Rights  of  Persons  with 
Disabilities from 2017 are not fulfilled, especially regarding the necessary reform of guardianship and 
decision-making on behalf of persons with disabilities. Montenegro has not adopted an action plan to 
implement  the  Committee’s  recommendations.  Some  definitions  of  disability  in  Montenegrin 
legislation use derogatory terminology.  

Likewise,  Montenegro  has  yet  to  adopt  a  strategy  on  deinstitutionalisation,  with  the  meaningful 
involvement of relevant civil society stakeholders. 

LGBTIQ persons  

On  27  June  2024,  Montenegro  adopted  the  2024-2028  Strategy  for  improving  the  quality  of  life  of 
LGBTIQ  persons  together  with  its  action  plan  for  2024-2025.  The  previous  strategy  for  2019-2023 
did not  achieve its  objective  of improving  social acceptance  of  LGBTIQ  people  and  their access  to 
labour, services and support services.  

37 

 
 
Although  the  revised  Criminal  Code  was  aligned  with  the  2020  same-sex  partnership  law,  by 
including  crimes  directed  at  civil  partnerships  as  criminal  acts  against  marriage  and  family,  further 
efforts are needed to align all other relevant implementing legislation. Anti-LGBTIQ and misogynistic 
hate speech and political rhetoric continued to be a serious issue. During 2023, the Police Directorate 
received 264 reports against 264 people for hate speech against LGBTIQ people.  

Procedural rights and victims’ rights  

The 2023 amendments to the Criminal Procedure Code are not yet fully aligned with the EU  acquis 
and European and international standards on victims’ rights and procedural safeguards. Montenegro 
still needs to further align  the criminal legislation with the Victims’ Rights Directive, to ensure that 
all provisions are implemented, and that the rights provided therein apply to all victims of all crimes. 
Amendments to the Law on free legal aid remain to be adopted . Comprehensive data on free legal aid 
is  lacking  as it  depends  on  the  new  judicial  information  system.  In  2023,  the  amount  spent  on free 
legal aid was EUR 106 476 (2021: EUR 108 776).  

Protection of minorities 

The Law on minority rights and freedoms ensures the protection of human rights and freedoms for all 
citizens,  including  the  right  to  publicly  manifest  national,  ethnic,  cultural,  religious  and  linguistic 
identity. Montenegro adopted its 2024-2028 Minority Policy Strategy  and its 2024-2025 action plan 
on  11  July  2024.  The  threshold  for  political  representation  of  Roma  in  Parliament,  which  would 
ensure equal treatment of minorities, has still not been reduced.  

Roma  

The  level  of  discrimination  against  Roma  remains  high.  Since  October  2023,  the  Assembly  of  the 
capital  city  of  Podgorica  has  one  Roma  representative,  for  the  first  time.  There  has  been  limited 
progress in implementing the Poznan Declaration commitments, due to the lack of coordination and 
political will to prioritise Roma inclusion. In June 2024, the report on the implementation of the 2023 
action  plan  and  the  2024-2025  action  plan  for  the  Implementation  of  the  Strategy  for  the  social 
inclusion of Roma and Egyptians were adopted by the government. 

School  attendance  among  the  Roma  population is very  low.  The  constant  poor quality  of  education 
negatively  affects  learning  outcomes  and  transition  to  higher  levels  of  education.  The  practice  of 
arranged  child  marriages  in  Roma  communities  remains  a  concern.  Roma  children  still  face 
significant barriers and inequalities in their access to basic services such as healthcare, nutrition and 
housing.  

The  state  employs  and  pays  Roma  education  mediators  and  Roma  mediators  in  the  area  of 
employment, social care and healthcare. A significant number of Roma are employed in the informal 
economy. 96% of Roma registered with the Employment Agency have either no qualifications or the 
lowest level of qualifications. There are limited results regarding re-skilling or upskilling of Roma and 
no progress on formalising their informal employment. There are no social housing quotas for Roma. 

Refugees and internally displaced persons 

Regarding displaced and  internally  displaced  persons,  from  7  November 2009  to 31  March  2024, 
there  were  15  274  requests  for  permanent  or  temporary  residence.  Of  these,  15  172  requests  were 
resolved, and 102 cases are still pending. A total of 12 422 people received permanent or temporary 
residence  of  up  to  3  years,  297  requests  were  refused,  and  2  453  cases  were  suspended  due  to 
incomplete or duplicated requests.  

Since  the  entry  into  force  of  the  new  Law  on  foreigners  in  2018  and  April  2024,  10  people  were 
recognised as stateless, out of 29 submitting the request. Montenegro has yet to adopt amendments to 
the Law on foreigners to strengthen the statelessness determination procedure, as regards procedural 
guarantees and rights during the procedure and on recognition of stateless status.  

Citizenship rights  

The investor citizenship scheme expired on 31 December 2022. Montenegro introduced procedures in 
the  screening  of  pending  applications,  to  check  whether  applicants  are  on  the  sanctions  list  or 

38 

 
 
recognised  as  entities  whose  funds  come  from  illegal  sources.  Montenegro  should  refrain  from 
operating  an  investor  citizenship  scheme,  as  such  schemes  pose  risks  as  regards  security,  money 
laundering,  tax  evasion,  terrorist  financing,  corruption  and  infiltration  by  organised  crime,  and  are 
incompatible with the EU acquis. 

2.2.2  Chapter 24: Justice, freedom and security  

The  EU  has  common  rules  for  border  control,  visas,  external  migration  and  asylum.  Schengen 
cooperation entails the lifting of border controls inside the EU. There is also cooperation in the fight 
against  organised  crime  and  terrorism,  and  judicial,  police  and  customs  cooperation,  all  with  the 
support of the EU Justice and Home Affairs agencies. 

Fight against organised crime  

Montenegro has continued to work on aligning its legal framework on organised crime with the EU 
acquis. 

Institutional set-up and legal alignment  

Progress was made in the reporting period on aligning national legislation further with the EU acquis 
regarding the legal framework on police cooperation and organised crime. 

In  December  2023,  Parliament  adopted  amendments  to  the  Criminal  Code,  including  its  alignment 
with  the  UN  Firearms  Protocol,  by  explicitly  criminalising  illicit  firearms  trafficking,  carrying 
firearms and tampering with firearms markings. However, Montenegro needs to amend the Law on 
weapons  to  become  aligned  with  the  EU  acquis  including  in  relation  to  the  technical  standards  of 
marking of firearms, deactivation of firearms, as well as alarm and signal weapons. 

The  amendments  to  the  Criminal  Code  also  introduced  an  explicit  provision  on  non-punishment  of 
victims  of  trafficking  in  human  beings  in  line  with  the  EU  acquis.  Furthermore,  changing  the  term 
‘minor’ to ‘child’ raised the age at which children can be considered to have been trafficked from 14 
to 18 years. It also introduced a new criminal offence for the sale of children.  

In December 2023, Parliament adopted the Law on prevention of money laundering and financing of 
terrorism and the Law on games of chance. As a consequence, Montenegro was not made one of the 
Financial Action Taskforce (FATF) jurisdictions under increased monitoring (the ‘grey list’). In May 
2024,  Parliament  adopted  amendments  to  the  Law  on  seizure  and  confiscation  of  material  benefit 
derived  from  criminal  activity,  to  address  legal  obstacles  to  confiscating  criminal  assets,  including 
setting  strict  deadlines  for  the  prosecution  and  the  courts  in  finalising  investigations  and  applying 
provisional measures.  

The Central Bank of Montenegro does not have a central register of non-resident accounts, a crucial 
tool for investigations. Montenegro did not address the problem of its incomplete land cadastre, which 
hampers the conduct of financial investigations and the confiscation of assets.  

There  was  significant  progress  in  setting  up  a  fully  functional  interoperable  system  with  a  single 
search  feature.  The  Division  for  international  Police  Operative  Cooperation  is  the  single  point  of 
contact  (SPOC)  centre  and  has  adequate  capacity.  In  the  reporting  period  a  clear  needs  assessment 
was drafted and procurement and work to construct a new operational centre started.  

The  police  Department  of  Internal  control  and  the  Ministry  of  Interior’s  anti-corruption  unit  have 
overlapping  competences  and  should  be  urgently  reorganised.  Further  effort  needs  to  be  made  to 
combat corruption within law enforcement agencies.  

In  September  2024,  Parliament  adopted  amendments  to  the  Law  on  internal  affairs  concerning  the 
recruitment of police officers. The preparation of these amendments was carried out without a public 
consultation  and  without  the  participation  of  non-governmental  organisations.  Montenegro  needs  to 
ensure  that  appointments  in  law  enforcement  authorities  are  merit-based  and  procedural  safeguards 
against undue political interference in law enforcement authorities are in place. 

Implementation and enforcement capacity  

39 

 
 
Montenegro  established  good  cooperation  with  CEPOL,  Eurojust,  Europol  and  Interpol.  In  2023, 
Montenegro participated in 54 operational actions across 14 operational action plans (OAPs) and in 
several  joint  action  days  (JAD)  under  the  European  Multidisciplinary  Platform  against  Criminal 
Threats (EMPACT).  

Regarding  organised  crime,  in  2023,  the  High  Court  in  Podgorica  had  a  total of  97  cases  pending 
against 761 defendants (690 individuals and 71 legal entities).  

In relation to money laundering, in 2023 the High Court in Podgorica had a total of 11 cases pending 
against  86  people  (70  natural  persons  and  16  legal  entities),  of  which  five  cases  were  related  to 
organised crime in conjunction with money laundering. In 2023, three new cases were received. One 
case of money laundering, which took the form of an independent criminal offence against a single 
defendant, was resolved by an acquittal, which has not yet become final. 

In 2023, the SSPO issued five investigations for the criminal offence of money laundering against 13 
people and one extension of an investigation against one person. The estimated total amount of funds 
acquired through criminal activities and placed in legal channels amounts to EUR 8 132 822. The data 
shows  an  increase  (compared  with  2022)  in  investigation  and  prosecution,  but  also  shows  that  the 
capacity  to  address  money  laundering  is  limited.  There  is  a  lack  of  cases  of  stand-alone  money 
laundering.  

In 2023, the courts determined temporary security measures in 17 cases of organised crime against 
67  defendants  (56  individuals  and  11  legal  entities)  including  bans  on  the  disposal  and  use  of 
immovable property and the freezing of assets.  

The data shows an improvement compared with 2022, the Financial Investigation Unit (FIU) is very 
proactive  and  the  SSPO  has  initiated  more  investigations.  However,  there  is  a  limited  capacity  to 
conduct financial investigations.  

Prosecutors, financial forensic experts and the FIU frequently rely on open-source databases such as 
the land registry and tax administration. Despite the increase in the number of financial investigations 
opened, the number of confiscations has remained low.  

Extended confiscation is not consistently applied and the disproportionality in assets of the convicted 
people  is  not  consistently  taken  into  account  by  judges  and  prosecutors  when  deciding  if  extended 
confiscation  should  be  applied.  The  capacity  to  manage  seized  assets  and  avoid  the  loss  of  their 
commercial value should also be strengthened. 

In  cybercrime,  the  police  submitted  23  cases  to  the  relevant  prosecution  offices,  of  which  eight 
(involving  11  people)  were  related  to  online  child  sexual  abuse.  Regarding  this  crime,  significant 
progress was made during the reporting period both in prevention and repression. The SPO issued two 
indictments  concerning  cybercrime.  Montenegro’s  legal  framework  is  aligned  with  the  Budapest 
Convention.  

In  the  field  of  people  smuggling,  in  2023  criminal  charges  were  brought  against  16  people  for 
smuggling 44 migrants. The SPO indicted one person.  

In 2023, the track record of prosecutions and convictions for trafficking in human beings continued 
to  improve.  During  2023,  the  Police  Directorate  submitted  16  criminal  charges  to  the  prosecution 
(2022:  9;  2021:  5)  which  resulted  in  seven  indictments  (2022:  5;  2021:  4)  following  investigations 
conducted by the prosecution services. And, for the first time in 2 years, the courts made two final 
convictions with enforceable decisions. Montenegro needs to improve victims’ access to information 
about their rights and trafficking-related trials.  

In  2023,  the  multidisciplinary  team  for  the  formal  identification  of  victims  of  trafficking  in  human 
beings identified 18 victims. In the context of increased online recruitment, there is a great need to 
support the  process  of  victim  identification.  The capacity  of  labour inspectors  and  law  enforcement 
agencies  to  combat  trafficking  for  the  purpose  of  labour  exploitation  needs  to  be  strengthened, 
including for seasonal workers. Training on trafficking should be provided to prosecutors and judges. 

In January 2024, the Ministry of Labour and Social Welfare issued a 3-year licence to the NGO ‘SOS 

40 

 
 
Hotline for women and children, victims of violence Niksic’, for a shelter which can accommodate up 
to  three  female  victims  of  trafficking.  In  April  2024,  a  temporary  state  shelter  for  10  child  victims 
opened within the ‘Ljubovic’ complex in Podgorica. The support and assistance services for victims 
of trafficking should be improved, in particular for child victims and victims from vulnerable groups.  

Intersectoral  cooperation  was  further  strengthened  in  May  2024  with  the  signing  of  the  revised 
Agreement on Mutual Cooperation in the Field of Combating Trafficking in Human Beings between 
judicial institutions, ministries and non-governmental organisations (NGOs). 

In  the  area  of  firearms,  261  criminal  offences  of  unlawful  possession  of  weapons  and  explosive 
substances were registered in 2023. A total of 724 weapons were seized in 2023 (2022: 729).  

The number of users of the ‘Traffic’ application increased. ‘Traffic’ connects the Firearms Focal Point 
(FFP) to the ballistics laboratory and to the police unit in charge of international cooperation, enabling 
the secure exchange of data.  

400

300

200

100

0

Graph 14: Montenegro - Serious* and organised crime 
cases

299

223

118

116

145

109

34

20

207

179

100

95

173

127

11

4

283

270

124

118

103

70

46

44

Organised
crimes

Serious
crimes

Organised
crimes

Serious
crimes

Organised
crimes

Serious
crimes

2021

2022

2023

Number of individuals / legal entities under Investigation
Individuals / legal entities indicted
Final court decision
Final convictions

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

the 

needs 

reporting 

system 
to 
During 

Police  officers  were  trained  to 
use 
iARMS  database. 
Montenegro’s  data  collection 
on 
and 
be 
firearms 
standardised. 
the 
standard 
reporting 
period, 
operating 
procedures  were 
developed  for  the  FFP.  Border 
police  capacities  to  prevent  and 
counter  illicit  arms  trafficking 
were 
the 
delivery of detection equipment 
and 
the  Firearms 
Detection  Training  conducted 
jointly  with 
the  European 
Border 
and  Coast  Guard 
Agency (Frontex) in Croatia.  

increased 

through 

through 

*Data on serious crime cases stem from the aggregation of cases of money laundering, cybercrime, production and 
trafficking  of  drugs,  firearms  related  offenses,  terrorism,  trafficking  in  human  beings  and  smuggling  of  persons. 
Corruption  cases  are  showcased  in  Chapter  23.  In  addition,  Montenegro  also  reported  3  convictions  for  tobacco 
smuggling in 2023 (compared with 3 in 2022 and 10 in 2021). 

The  Forensic  Centre  made 
significant  progress 
its 
procedures  and  processes,  in 
line  with  the  relevant  international  standards  ISO  17020  and  ISO  17025,  and  it  approved  all 
documents  for  the  accreditation  of  a  method  of  the  Arson  and  Explosives  Laboratory.  In  2023, 
Montenegrin authorities destroyed 798 firearms by melting down.  

in 

Despite the existence of a storage facility for small arms, light weapons and ammunition in Rogame, 
until the end of the legal proceedings seized weapons are stored in inappropriate storage and safety 
conditions in the SPO premises.  

Montenegro needs to increase efforts on awareness raising, outreach and education on the dangers and 
risks related to the misuse, illicit possession and trafficking of firearms. Measures aimed at reducing 
illicit  firearms  through  legalisation,  voluntary  surrender,  de-activation  and  destruction  should  be 
implemented, in line with the EU action plan on firearms trafficking. 

As  regards  tobacco  smuggling,  21  criminal  charges  were  filed  against  five  legal  entities  and  39 
people.  Among  those,  six  are  Customs  Administration  officials,  four  of  whom  are  members  of  the 
Commission for the Destruction of Confiscated Cigarettes. The ban on storage of tobacco products in 
the free zone of the port of Bar led to the seizure of an unprecedented number of cigarettes. Despite 
assistance  offered  by  the  EU  and the  United  Kingdom, the  process  of destruction  has  not yet  taken 
place. In 2023, there was no final court decision on tobacco smuggling.  Montenegro needs to make 
stronger efforts to address the illicit trade of cigarettes. This would involve strengthening the capacity 
of  all  institutions  involved,  further  strengthening  the  work  of  the  whole  judicial  chain,  dismantling 

41 

 
 
criminal  networks,  and  improving  the  track  record  in  final  convictions  and  confiscations  of  the 
proceeds of crime. 

Cooperation in the field of drugs 

Cooperation in the field of drugs needs to be improved.  

Institutional set-up and legal alignment  

Montenegro’s strategic and regulatory framework in this area is not fully aligned with the EU acquis. 
The national drug information system does not fully meet European standards. Montenegro has had 
no  drug  strategy  in  place  since  the  previous  strategy  came  to  an  end  in  2020.  The  capacity  of  the 
Directorate  for  the  prevention  of  drug  abuse  in  the  Ministry  of  Health,  which  embeds  the  National 
Drug  Observatory,  was further  strengthened.  The  involvement  of  the  National Drug  Observatory  in 
the activities of the EU Drugs Agency (EUDA) is satisfactory and the national early warning system 
is  operational  and  considered  ready  to  be  linked  to  the  EU  early  warning  system.  Preparations  are 
ongoing  between 
Montenegro 
on 
Arrangement. 

the  EUDA  and 
a  Working 

Graph 15: Montenegro - Cases related to 
production and trafficking of drugs

Implementation 
capacity  

and 

enforcement 

Montenegro  continued  to  be  a  transit 
country  for  drugs  as  a  part  of  the 
Balkan  route.  In  2023,  a  total  of 
960 kg of drugs were seized. 

In  the  reporting  period,  the  courts 
were working on 19 cases against 131 
individuals  and  resolved  one  case 
against  one  defendant,  with  a  final 
conviction. 

300
250
200
150
100
50
0

233

249

249

196

168

179

106

99

121

104

95

116

Number of
individuals /
legal entities
under
Investigation

Individuals /
legal entities
indicted

Final court
decision

Final
convictions

2021

2022

2023

Montenegro  did  not  address 
insufficient 
storage  capacity 
seized drugs and has yet to make legislative changes to keep only a sample of drugs as evidence for 
court proceedings.  

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

the 
for 

Montenegro has sufficient operational capacity allowing it to actively engage in international police 
cooperation on drugs related cases, including via Europol and Interpol. 

Fight against terrorism  

Fight against terrorism is satisfactory. 

Institutional set-up and legal alignment  

Montenegro’s legal framework on the fight against terrorism is largely in line with the EU acquis and 
international instruments on anti-terrorism. Montenegro continues to implement measures in the EU-
Montenegro  Implementing  Arrangement  of  the  Joint  Action  Plan  on  Counter-Terrorism  for  the 
Western  Balkans.  In  the  light  of  the  progress  made,  in  November  2023,  Montenegro  and  the  EU 
signed a revised bilateral arrangement and the country submitted its sixth implementing report in June 
2024.  Montenegro  should continue to  implement  the  actions  agreed  under  the Joint  Action  Plan  on 
Counter Terrorism for the Western Balkans and keep its strategic and legislative framework up to date 
and aligned to the EU legislative acquis and policy priorities. 

In December 2023, the government appointed the third National Coordinator in 2 years. In December 
2023, the Ministry of Interior established a new National Operational Team (NOT) for the prevention 
and  suppression  of  radicalisation,  violent  extremism,  terrorism,  money  laundering  and  terrorism 
financing. In February 2024, the Bureau for Operational Coordination of Intelligence-Security Sector 
Bodies created an interdepartmental working group to establish a national ‘watch list’ in line with UN 

42 

 
 
Security  Council  resolution  2396.  In  December  2023,  the  Passenger  Data  Collection  Group 
commenced the pilot phase of data collection from airlines.  

Implementation and enforcement capacity  

During 2023, no individual was convicted of a terrorism offence. A cause for concern is the growing 
right-wing extremist content online, hate speech and disinformation, exacerbated by Russia’s war of 
aggression in Ukraine and the war in Gaza.  

An  investigation  against  nine  suspects  indicted  for  criminal  offences  (for  creating  a  criminal 
organisation) has been ongoing since 2020. The retrial of 13 defendants (including two Russian and 
eight  Serbian  citizens)  found  guilty  of  terrorism  in  the  2016  coup  attempt  case  ended  in  July  2024 
with the acquittal of all defendants. The prosecutor can still appeal this judgement. 

In 2023, due to the change of the National Coordinator and the NOT, implementation was limited for 
the two National Strategies on ‘Prevention of Terrorism, Money Laundering and Terrorism Financing 
2022-2025’ and on ‘Prevention and Suppression of Radicalisation and Violent Extremism 2020-2024’ 
and their action plans.  

Montenegro actively participated in the EU Radicalisation Awareness Network (RAN).  It continued 
its  good  cooperation  with  Europol  on  foreign  terrorist  fighters.  In  2023,  the  number  of  messages 
exchanged  with  foreign  counterterrorism  units  through  Europol’s  Secure  Information  Exchange 
Network Application (SIENA) communication link rose to 480 (from 342 in 2022).  

The  problem  of  foreign  terrorist  fighters  is  limited  in  Montenegro.  There  is  currently  no  intent  to 
repatriate the 14 foreign terrorist fighters and family members reported to be in Syria and Iraq.  

Judicial cooperation in civil and criminal matters is satisfactory. 

 Montenegro should further improve the speed and efficiency of international judicial cooperation by 
increasing  its  use  of  judicial  cooperation  instruments,  such  as  joint  investigations  teams  and  direct 
court-to-court cooperation. In February 2024, Montenegro signed the Ljubljana-Hague Convention on 
International  Cooperation  in  the  Investigation  and  Prosecution  of  the  Crime  of  Genocide,  Crimes 
against Humanity, War Crimes and Other International Crimes.  

The LURIS database, an electronic system for monitoring cases of judicial cooperation, is functional. 
In 2023, there were 959 cases (117 with EU Member States  of judicial cooperation in criminal cases, 
while in judicial cooperation in civil matters there were 459 cases (171 with EU Member States ).  

345

701

959

594

514

800

356

400

600

1200

1000

Graph 16: Montenegro - Requests for mutual assistance in civil and 
criminal matters

In 2023, there was 
intense 
cooperation 
between 
Montenegro 
and 
Eurojust,  with  76 
cases  of  judicial 
cooperation 
processed 
by 
Montenegro  with 
support  of 
the 
Eurojust, 
including 58 cases 
initiated 
by 
Montenegro. 
Montenegro 
continued 
to 
participate  in  the 
Eurojust  regional  project  ‘Increasing  cross-border  cooperation  in  criminal  justice  in  the  Western 
Balkans’ (WB CRIM JUST). 

Total
Source: Ministry of Justice

Incoming requests

Outgoing requests

Criminal

Criminal

Criminal

n/a: not available

2022

2023

2021

Civil

Civil

Civil

603

200

271

190

283

459

356

275

301

239

554

269

293

0

43 

 
 
To  date  Montenegro  has  not  engaged  in  any  joint  investigation  teams  (JITs)  with  an  EU  Member 
State.  

The working arrangement signed between the Montenegrin Supreme State Prosecution Office and the 
European Public Prosecutor’s Office (EPPO) in September 2022 has had limited effects in practice.  

Legal and irregular migration  

Institutional set-up and legal alignment  

The management of legal and irregular migration is satisfactory, and the legal framework is largely 
aligned  with  the  EU  acquis.  The  2021-2025  strategy  on  migration  and  reintegration  of  returnees 
regulates  best  practice  on  legal  migration,  asylum,  prevention  of  irregular  migration,  readmission, 
return, integration, internally displaced persons and statelessness.  

Implementation and enforcement capacity  

Montenegro is in the initial stages of implementing a modern migrant fingerprinting identification and 
registration system, connected to a central biometric database.  

9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Graph 17: Montenegro - Number of irregular 
movements 

In  2023,  5 314  migrants  were  apprehended  crossing  the  borders  illegally,  a  37%  decline  compared 
with  2022  (8  519),  reflecting 
regional  trends.  The  majority  of 
these  migrants 
an 
asylum, 
intention 
therefore  benefiting  from  the 
two 
centres’ 
accommodation and provision of 
healthcare.  

reception 

register 

747 722

seek 

1929

3405

5181

1284

8519

2429

5314

to 

698

448 316

l

l

n
a
r
I

n
a
r
I

n
a
r
I

a
t
o
T

a
t
o
T

o
c
c
o
r
o
M

n
a
t
s
i
n
a
h
g
f
A

n
a
t
s
i
n
a
h
g
f
A

In  2023,  83  migrants  were 
detained  in  the  detention  centre 
for  foreigners  in  Spuz  (2022: 
78).  Montenegro 
is  actively 
engaged 
in  the  EU  regional 
project  EU4FAST  ‘Support  to 
the  Fight  against 
Strengthen 
Migrant Smuggling and Trafficking in Human Beings in the Western Balkans’ and takes part in the 
Global Alliance against Migrant Smuggling, launched in November 2023.  

2023
Source: Ministry of Interior

n
a
t
s
i
n
a
h
g
f
A

h
s
e
d
a
g
n
a
B

n
a
t
s
i
k
a
P

2021

2022

a
t
o
T

l

l

The  readmission  agreement  with  the  EU  continues  to  be  implemented  smoothly.  As  of  2023, 
Montenegro  concluded  implementing  protocols  with  15  EU  Member  States.  The  number  of 
readmission requests from EU Member States continued to  decline. In 2023, Montenegro processed 
156  readmission  requests  from  EU  Member  States.  Of  these,  85  requests  were  accepted.  In  2023, 
Montenegro  accepted  43  returnees  (2022:  71)  and  drew  up  readmission  plans  on  their  return  to 
Montenegro. 

Montenegro has 11 readmission agreements with non-EU countries, including all Western Balkan 
partners  and  Türkiye  but  none  with  any  of  the  main  countries  of  origin  of  migrants  coming  to 
Montenegro.  The  quality  of  implementation  of these readmission  agreements continues to  improve. 
Readmission from Montenegro to neighbouring countries (including Croatia) fell to 70 people in 2023 
(from  87  in  2022).  Readmissions  of  non-EU  nationals  from  neighbouring  countries  to  Montenegro 
also  continued  to  decline,  with  50  readmissions  in  2023,  mainly  from  Croatia  (36).  In  2023,  31 
voluntary  returns  were  carried  out  (2022:  37).  The  border  police  carried  out  19  returns  to 
neighbouring countries and the International Organisation for Migration carried out 12 returns. 

Montenegro  must  continue  to  develop  its  international  cooperation  on  readmission,  increase  its 
capacity  to  prosecute  migrant  smuggling  networks,  establish  a  modern  data  collection  system  for 
screening migrants and refugees and improve the coordinated approach by all actors responsible for 
managing mixed migration flows. 

44 

 
 
Asylum 

The management of asylum is good. 

Institutional set-up and legal alignment  

Montenegro’s  legal  framework  is  largely  aligned  with  the  EU  acquis.  Cooperation  with  the  EU 
Agency for Asylum is very good and continued to reinforce Montenegro’s overall asylum system.  

In 2023, 4 998 people registered an intention to request asylum (2022: 8 320), reflecting a downward 
trend in irregular entries. In 2023, equipment was installed in Bozaj for the electronic acquisition of 
biometric data from migrants who expressed their intention to apply for asylum.  

The  Directorate  for  Asylum  continued  to  reduce  the  backlog  for  handling  asylum  applications  and 
decides on requests for international protection within 6 months, except in complex cases.  

In  2023,  the  Directorate  overturned  fewer  decisions  at  second  instance,  reflecting  a  better  quality 
determination process. The quality of the status determination procedure  for refugees was improved 
(113  interviews  in  2023,  compared  to  63  in  2022),  resulting  in  an  increase  in  positive  decisions  of 
56%.  

In 2023, the Directorate for Asylum improved its staffing by two more officials, including the head of 
the  procedure.  Montenegro  needs  to  continue  increasing  staffing  levels  for  the  status  determination 
procedure.  

Implementation and enforcement capacity 

Graph 18: Montenegro - Asylum applications

200

150

272

250

300

accommodated 

In 2023, the number of asylum 
seekers 
in 
reception centres  was  3  093,  a 
50%  decline  compared  with 
2022  (6  202). Montenegro  has 
two reception centres with 164 
beds,  however,  the  reception 
capacities  must  be 
further 
expanded to cope with possible 
flows, 
increased  migration 
especially in view of future EU 
membership.  In  March  2024, 
Montenegro  signed  contracts 
for  preparing  and coordinating 
and 
construction 
reconstruction 
to 
expand and improve accommodation capacities in the Spuz and Bozaj centres. 

projects 

n
a
t
s
i
n
a
h
g
f
A

n
a
t
s
i
n
a
h
g
f
A

o
c
c
o
r
o
M

a
i
s
s
u
R

a
b
u
C

a
b
u
C

2022

2021

a
t
o
T

a
t
o
T

100

175

27

44

97

72

40

12

50

0

l

l

145

78

10

10

a
i
s
s
u
R

a
b
u
C

e
y
i
k
r
ü
T

l

a
t
o
T

2023
Source: Ministry of Interior

Montenegro is the Western Balkan partner hosting the highest number of Ukrainian nationals having 
fled Russia’s war of aggression, both in absolute figures and proportionally to its population (1%). It 
continued to grant Ukrainian citizens with ‘temporary protection’ status, access to health services and 
accommodation  beyond  the  minimum  European  standards,  although  it  relied  largely  on  ad  hoc 
solutions. In March 2024, the Decision on granting temporary protection was prolonged for one year. 

Administrative barriers hinder access for these Ukrainians to healthcare, bank accounts and financial 
services,  and  several  laws  need  to  be  aligned  with  the  Law  on  asylum  to  ensure  that  temporary 
protection holders are entitled to their social rights. Written procedures for the approval and denial of 
requests for accommodation, including appeal procedures, are not in place.  

Visa policy 

The national visa regime continues not to be aligned with that of the EU.  Progress is needed on the 
alignment of Montenegro’s visa policy with the EU’s list of visa-required countries, in particular as 
regards countries presenting irregular migration or security risks to the EU. The only progress made in 
2024,  was the government adoption in April of  a decision on seasonal visa waivers, including the 

45 

 
 
removal of seasonal visa waivers for citizens of Uzbekistan.  

Montenegro  still  has  a  visa-free  regime  with  11  countries  that  are  on  the  EU  list  of  visa-required 
countries, of which seven enjoy permanent visa exemption (and four have a seasonal visa waiver to 
enter  Montenegro  for  tourism  between  April  and  October  2024.  Seasonal  visa  exemption  measures 
are not in line with the EU acquis. As part of its Reform Agenda under the Growth Plan, Montenegro 
committed to further align with the EU-list of visa-required countries, reach interoperability between 
its  systems  and  databases  used  in  the  current  visa  approval  system,  start  working  on  collecting 
biometric data as well as introduce additional security measures. 

Montenegro is gradually rolling out its Visa Information System (VIS). Currently, 31 of its diplomatic 
and consular missions are connected to the VIS.  

According to Eurostat, 360 Montenegro nationals applied for asylum in the EU27 in 2023 (decrease 
by 11% compared to 410 in 2022). 

Schengen and external borders 

Institutional set-up and legal alignment  

The  legislative  framework  for  the  management  of  external  borders  is  largely  aligned  with  the  EU 
acquis.  On  1  November  2023,  the  status  agreement  between  Montenegro  and  the  EU  entered  into 
force5. 

Electronic  sea  surveillance  enables  real-time  image  transmission  to  Montenegro’s  Centre  and  the 
Frontex Coordinating Centre in Warsaw, a key mechanism for border control in the Adriatic Sea and 
rapid interception of suspicious vessels. 

On 31 December 2023, 1 075 out of 1 514 posts in the Border Police were filled (71%). 

Implementation and enforcement capacity  

In  2023,  Montenegro  conducted  647  joint  border  patrols  with  neighbouring  countries  (2022:  500, 
2021:  437).  The  activity  of  the  joint  police  cooperation  centres  increased,  with  a  higher  volume  of 
exchanged information. A total of 94 forged documents were seized. 

Border  management  equipment  continued  to  be  progressively  upgraded  in  accordance  with  the 
Schengen  action  plan,  but  reliance  on  support  from  the  EU  and  other  donors  remained  high.  The 
border police still lack proper capacity to monitor the purchase of equipment, set priorities and draw 
up a purchase plan, linked with the Schengen action plan.  

The  Border  Police  established  the  Group  for  Suppression  of  Human  Smuggling  and  Cross-Border 
Crime  to  develop  analytics  and  intelligence  on  smuggling  networks.  The  Border  police  now  have 
direct access to Europol's SIENA channel. In 2023, they started operational-investigative measures, in 
cooperation with the competent prosecutors and the criminal police, leading to the opening of several 
new SIENA cases to investigate groups of migrant smugglers operating throughout Montenegro. 

From 1 August 2023 onwards, border passes have been issued for inhabitants of cross-border areas of 
Montenegro  and  Bosnia  and  Herzegovina.  During  2023,  the  Montenegrin  authorities  demolished 
alternative  roads  towards  Bosnia  and  Herzegovina  in  six  locations  and  towards  Kosovo  in  six 
locations. 

Euro counterfeiting (criminal law aspect) 

The  relevant  legislation  is  broadly  in  line  with  the  EU  acquis  on  the  suppression  of  counterfeit 
currency. The Criminal Code provides for the criminal offence of ‘counterfeiting money’. 

In 2023, six reports were received for the criminal offence of counterfeiting money, four indictments 
were filed and confirmed, and 10 indictments were pending before the court, one of which ended in a 
conviction.  

5 Official Journal L 140, 30.5.2023 

46 

 
 
 
All aspects of customs cooperation are covered in Chapter 29 – Customs Union. 

2.3. ECONOMIC CRITERIA 

2.3.1. The existence of a functioning market economy 

Economic governance 

The  new  coalition  government  adopted  several  major  reforms.  The  government  increased  the 
minimum  pension  by  52%  to  EUR  450  from  2024  onwards.  In  September  2024  the  government 
adopted the work programme, called Europe Now 2.0 and the related Medium-Term Fiscal Strategy. 
Key  reforms  relate  to  increasing  average  minimum  wage  from  EUR  450  to  EUR  700  and  halving 
pension contributions. These measures pose a considerable risk to the sustainability of public finance, 
despite some compensatory measures and accelerated investment programme.  

The policy guidance set out in the conclusions of the Economic and Financial Dialogue of May 
implemented. 
2023  was  partially 
Progress  was  made  in  improving  the 
budget  balance  and  creating  the  legal 
basis for setting up a Fiscal Council, but 
structural  reforms  aiming  to  address 
SOE 
informality 
governance 
limited 
implementation. 

improve 
only 

and 
saw 

Macroeconomic stability 

Economic  growth  in  2023  continued 
to  be  robust  and  broad-based.  GDP 
to  be  6.0%, 
growth 
somewhat  below  the  2022  growth  rate 
of  6.4%.  Economic  expansion  was 

is  estimated 

47 

Table 6.1:202120222023Montenegro - Key economic figuresGDP per capita (% of EU-27 in PPS)1)46475052Real GDP growth 0.813.06.46.0Activity rate of the population aged 15-64 (%), total63.759.267.771.7      female56.852.961.466.3      male70.565.573.977.0Unemployment rate of the population aged 15-64 (%), total16.916.815.013.4      female17.016.113.114.3      male16.717.316.612.6Employment of the population aged 15-64 (annual growth %)0.1-2.417.210.5Nominal wages (annual growth %)1.31.411.211.8Consumer price index (annual growth %)1.12.511.98.7Exchange rate against EUR1.01.01.01.0Current account balance (% of GDP)-16.8-9.2-12.9-11.6Net foreign direct investment, FDI (% of GDP)10.311.713.26.3General government balance (% of GDP)-5.7-1.9-4.20.6General government debt (% of GDP)74.082.568.059.3Notes: 1) EurostatSource: national sources2015-20 average-18-15-12-9-6-30369121518201820192020202120222023Graph 6.1: Montenegro -Real GDP growthand contributionsPriv. cons.Gov. cons.GFCFStocksNet exportsReal GDP growthSource: WiiW% y-o-y 
 
 
 
mainly  driven  by  exports  of  services  and  private  consumption,  underpinned  by  growing  disposable 
income and a large inflow of Russian, Ukrainian and Turkish nationals. Further support came from 
recovering investment and government consumption. Strong growth in exports, which benefited from 
a good tourism season, together with a considerable slowdown in import growth, resulted in a positive 
contribution  of  net  exports  to  GDP  growth.  In  the  first  quarter  of  2024  the  economy  expanded  by 
4.4% y-o-y on the back of domestic demand. Overall, 3 years of strong growth brought Montenegro’s 
per capita GDP in purchasing power standards to 52% of the EU-27 average in 2023. 

The  current  account  deficit  narrowed  to  11.6%  of  GDP  in  2023,  owing  to  a  strong  tourism 
season and slower import growth. Surging services exports (+21%) offset a decline in merchandise 
exports caused by weaker performance in metal products. The growth in overall imports, which are 
much  larger  than  exports,  decelerated  to  8.3%  in  2023,  following  an  exceptional  43%  expansion  a 
year before. The overall trade deficit declined by 3pps to 18.8% of GDP in 2023. The surpluses in the 
primary  and  secondary  accounts 
declined  marginally  and  stood  at 
1%  and  6.4%  of  GDP  in  2023, 
respectively,  the  latter  on  the  back 
of  lower  remittances.  In  the  first 
quarter  of  2024  the  four-quarter 
moving  average  current  account 
deficit  widened  to  13.8%  of  GDP 
due  to  a  slump  of  merchandise 
exports  and 
in 
primary  and  secondary 
income 
surpluses.  More  than  half  of  the 
current 
deficit  was 
financed  by  net  foreign  direct 
investment  (FDI)  inflows  in  2023, 
while the  remainder  was  covered  by  reserves.6  Net  FDI  inflows  declined  by  45%  year  on  year  and 
amounted to 6.3% of GDP in 2023, with a large share traditionally going into real estate. The drop in 
FDI  was  driven  by  a  combination  of  lower  inflows  of  equity  investment  and  inter-company  debt, 
together with higher outflows (mainly the withdrawal of funds by non-residents). In the four quarters 
to  March  2024,  net  FDI  inflows  remained  broadly  stable  amounting  to  6.2%  of  GDP.  International 
reserves fell to EUR 1.4 billion in 2023, covering 3.4 months of imports of goods and services but 
improved to 4.7 months in early 2024 due to a decline in imports. 

lower  surpluses 

account 

Following  the  inflation  easing  throughout  2023,  the  downward  trend  continued  in  2024. 
Throughout 2023, consumer price inflation was on a declining trend from 16.2% y-o-y in January to 
4.3%  in  December  and  averaged  8.9%  for  the  year  as  a  whole.  The  decline  was  driven  by  abating 
pressures from global energy and food prices as well as monetary policy tightening in the euro area, 
albeit  limited  by  domestic  policy-induced  increases  in  wages  and  pensions.  In    March-April  2024 
inflation bounced back to 5.5% y-o-y, but moderated to 3.5% in July. In March 2024 the government 
launched a programme to limit price increases for some basic food commodities. 

6 In 2023 there was a large increase in errors and omissions which stood at 10.7% of GDP as compared to 9.6% in 2022 and 
5.6% in 2022. The surge in errors and omissions is likely due to the recovery of tourism and large inflows of foreign 
nationals. 

48 

-40-30-20-100102020192020202120222023Graph 6.2: Montenegro -Current account selected components and FDI Workers' remittances balanceGoods and services trade balanceCurrent account balanceNet FDI% of GDPSource: IMFand Central Bank of Montenegro  
 
 
Due  to  extraordinary  revenues,  2023  budget  achieved  a  surplus  of  0.6%  of  GDP,  while  2024 
budget  projection  was  revised  in  line  with  new  developments.  The  2023  outcome  significantly 
overshot the revised deficit target of 3.4%, adopted in November. The key driver was a much higher 
budget  revenue,  which  increased  by  26.3%  compared  to  2022  and  outweighed  the  increase  in 
spending,  which  rose  by  12.8%.  Public 
revenue  growth  was  driven  by  high 
consumer  spending  fuelled  by  a  large 
inflow of foreign nationals and increasing 
wages, high inflation, a successful tourism 
season,  improved  tax  discipline  and  one-
off  items.7  The  main  drivers  on  the 
spending side were higher social transfers, 
an  increased  wage  bill  and  a  surge  in 
interest  payments,  while  there  was  a 
decline in capital spending, worsening the 
quality  of  public  spending.  At  the  end  of 
December  2023,  the  parliament  of  Montenegro  adopted  the  2024  Budget  Law,  which  envisages  a 
significant  deterioration  in  the  budget  balance,  with  a  projected  deficit  of  3.4%  of  GDP,  driven  by 
expected strong growth in social transfers and capital spending and the absence of one-off revenue. 
The 2024 budget was revised due to better than planned revenue performance and measures related to 
Europe Now 2 programme, which are set to enter into force in October 2024. 

The  public  debt  ratio  declined  in  2023,  but  large  upcoming  debt  service  obligations,  coupled 
with newly adopted measures, point to vulnerabilities and require offsetting actions. At the end 
of 2023, the general government debt ratio decreased to 59.3% of GDP, down from 68% of GDP a 
year  earlier.  The  marked  reduction  was  driven  by  high  nominal  GDP  growth  and  some  use  of 
government  deposits  to  repay  maturing  debt.  Due  to  good  fiscal  performance  in  2023,  the  stock  of 
government deposits increased to 2.3% of GDP at the end of 2023, up from 1.9% a year earlier. Large 
repayments  of  public  debt,  amounting  to  7.6%  and  11%  of  GDP,  are  due  in  2024  and  2025, 
respectively,  and  will  require  substantial  new  borrowing.  In  March  2024,  Montenegro  successfully 
issued Eurobonds of EUR 687 million8 at an effective rate of 5.88%. Fiscal projections, including new 
measures adopted in September 2024, set public debt at 63.3% at the end of 2024 with a rising trend 
to 65.2% in 2027. 

Montenegro’s macroeconomic policy mix is constrained by the lack of an autonomous monetary 
policy.  Fiscal  policy  is  the  main  tool  for  managing  aggregate  demand.  In  view  of  debt-related 
vulnerabilities,  large  upcoming  financing  needs  and  measures  adopted  within  the  Europe  Now  2 
programme, a careful fiscal management with offsetting measures and an overall tighter fiscal stance 
appear appropriate.  

Functioning of product markets 

Business environment 

Efforts  to  improve  the  regulatory  business  environment  have  resumed.  In  March  2024,  the 
Competitiveness  Council adopted  an  action  plan  aiming  to  eliminate  11  key  barriers  to  business  by 
2026.  The  dynamic  development  of  local  and  foreign  companies  is  hindered  by  the  informal 
economy, inefficiencies and delays in dealings with the administration, excessive complexity of the 
legal  framework  and  the  administrative  burden  related  to  para-fiscal  charges  as  well  as  insufficient 
quality  of  e-services.  Further  obstacles  are  related  to  insufficient  transparency  in  decision-making, 
arbitrary law interpretation and enforcement by public authorities and access to finance for small and 
medium-sized enterprises (SMEs).  

7 Sources of one-off revenues included the economic citizenship programme, the termination of a hedging arrangement and 

the energy-related budget support from the EU. 

8 Montenegro issued Eurobonds in the amount of USD 750 million, with a maturity of 7 years and at an effective interest rate 
of  7.25%.  Following  a  cross-currency  transaction,  the  debt  amounts  to  EUR  687  million,  with  a  more  favourable 
interest rate of 5.88%. 

49 

020406080100120-12-8-404201820192020202120222023Graph 6.3: Montenegro -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public debt (rhs)Source: Nationalsources% ofGDP 
 
 
The  informal  economy  constitutes  a  major  obstacle  to  Montenegro’s  competitiveness. 
Deficiencies  in  the  institutional  and  regulatory  environment,  weaknesses  in  the  labour  market, 
insufficient  enforcement  capacity  on  the  part  of  the  public  authorities,  corruption  and  tax 
non-compliance  are  all  conducive  to  undeclared  work,  which  is  especially  harmful  to  legally 
operating  SMEs  and  microenterprises  in  the  service  sector.  At  the  end  of  2023,  the  government 
adopted a programme and action plan to address the informal economy, including measures to tackle 
tax avoidance and evasion, but it lacks a monitoring mechanism for reviewing its implementation.  

State influence on product markets 

While  the  government  undertook  measures  to  contain  price  increases,  the  transparency  and 
efficiency of State aid in Montenegro remains weak.  In March 2024, the government launched a 
price  cap  programme,  in  cooperation  with  the  country’s  largest  supermarket  chains,  in  an  effort  to 
prevent anti-competitive measures and address surging prices for basic food products, such as flour, 
sugar,  oil  and  salt.  The  initiative  was  later  expanded  to  include  a  broader  range  of  products  and 
support domestic producers. The Agency for Protection of Competition (APC) issued two decisions 
on  unlawful  State  aid,  which  should  be  repaid.  While  Montenegro made  progress  towards  ensuring 
better transparency of State aid decisions, further work is needed to increase awareness of State aid 
rules among aid grantors and to increase staff at the Agency for Protection of Competition (APC). The 
APC issued two decisions on unlawful State aid, which should be repaid. 

Privatisation and restructuring 

The  privatisation  of  state-owned  enterprises  (SOEs)  did  not  advance,  but  initial  steps  were 
undertaken  to  create  a  framework  for  improving  SOE  governance  and  profitability.  The 
financial performance of Montenegro’s SOEs9, including those at the local level, should be improved 
by  transforming  their  management  structures  and  eliminating  political  patronage.  This  would  also 
reduce  SOE-related  fiscal  risks.  While  improvement  of  SOE  governance  featured  prominently  in 
Montenegro’s  Economic  Reform  Programme  in  the  last  years,  the  progress  was  very  slow.  The 
Ministry of Finance continued the preparatory work on analysing the legal and regulatory framework 
for SOE reform and has received IMF technical assistance for assessing the SOE-related fiscal risks.  

Functioning of the financial market  

The banking system remained stable with adequate levels of liquidity and profitability. Most of 
the  temporary  measures  aimed  at  preserving  the  liquidity  and  solvency  of  domestic  banks  expired 
during  2023.  The  central  bank  of  Montenegro  (CBM)  strengthened  the  supervisory  process  in 
November 2023, by requiring credit institutions to pass the conformity check before paying dividends. 
The  sector-wide  capital  adequacy  ratio  stood  at  19.5%  in  June  2024,  well  above  the  statutory 
minimum  of  8%.  Banks  continued  to  fund  themselves  mainly  through  domestic  deposits  which 
increased  by  15.5%  in  2023,  but  growth  decelerated  to  some  3%  in  the  first  half  of  2024.  Non-
performing loans made up 4.3% of total loans in mid-2024, down from 5.2% in mid-2022. Increasing 
net interest margins led to a surge in banking sector profits (+75.3%) in 2023.  

Credit activity continued to grow despite higher lending rates. Credit growth accelerated to 10.8% 
in 2023, from 6.6% in the previous year and continued to expand in the first months of 2024, mainly 
on  the  back  of  inter-bank  lending  and  lending  to  households.  Corporate  sector  loans  recorded  a 
slowdown  in  an  environment  of  higher  interest  rates  in  2023,  but  accelerated  in  May-July  2024. 
Borrowing costs increased in 2023 and remained high, with the nominal weighted averaged lending 
rate reaching 6.6% in July 2024 compared to 5.92% at the end of 2022.  

Functioning of the labour market 

9 The central government is the majority or full owner of some 50 SOEs in Montenegro. (OECD 2024) 

50 

 
 
 
The  economic  recovery  led  to  strong  job  growth  and  a  fall  in  unemployment,  but  structural 
challenges in the labour market remain. According to the labour force survey (LFS), the average 
unemployment  rate  declined  to  13.4%  in  2023  from  15.1%  in  2022.  The  number  of  employed 
increased strongly, by 10.8%, and the rate of employment stood at 55.6%. The average gross wage 
increased by 11.8%, driven by public sector wages. Regional disparities  persisted in 2023, with the 
unemployment  rate  varying  from  3.1%  in 
the  coastal  region  to  10.1%  in  the  centre 
and  31.9%  in  the  poorer  northern  region. 
The gender gap narrowed, but the activity 
rate  of  women 
remained 
significantly  below  that  of  men  (77%). 
Remaining major structural challenges are 
youth  unemployment  (those  aged  15-24), 
which stood at 23.3% in 202310 and long-
term  unemployment:  72.1%  of  all  the 
unemployed  have  been  looking  for  a  job 
for more than 12 months. Ongoing reform 
efforts,  aimed  at  improving  administrative  capacities  and  the  digitalisation  of  the  Employment 
Agency,  are  expected  to  result  in  more  targeted  and  effective  employment  activation  measures. 
Reforming  the  Employment  Agency  is  instrumental  for  both  the  implementation  of  the  Youth 
Guarantee and a well-functioning labour market. 

(66.3%) 

2.3.2. The capacity to cope with competitive pressure and market forces within the EU 

Education and innovation 

The latest PISA results confirmed significant gaps in education quality. The 2022 PISA11 average 
scores  were  below the  results in  2018,  and  below the  OECD  average.  Skills mismatches  persist for 
those with vocational education and training and those with a higher education qualification, despite 
existing efforts to improve the transition from education and training to the labour market.  

Albeit  underfunded,  public  and  private  investment  in  research,  development  and  innovation 
increased in 2023.12 The Innovation Fund continued to play a vital role in implementing the national 
innovation  policy,  through    eight  innovation  support  programmes  implemented  in  2023,  aiming  to 
encourage  cooperation  on  developing  innovative  projects  and  products  between  private  sector  and 
research institutions. The links between academia, research institutes and business need to be further 
reinforced.  Research  staff  are  employed  almost  exclusively  by  the  government  or  in  the  higher 
education sector. 

Physical capital and quality of infrastructure 

Some progress was made in improving energy infrastructure. While the use of renewable energy 
sources  is  high,  there  is  a  lack  of  diversification  in  renewable  sources  (electricity  production  relies 
mainly  on  hydropower  and  biomass)  and  insufficient  focus  on  environmental  standards  in  energy 
infrastructure projects. In 2023, the national electric power company implemented two solar projects 
and  some  progress  was  made  in  preparing  the  construction  of  a  new  wind  power  plant.  In  August 
2024,  Montenegro  adopted  the  Law  on  the  use  of  energy  from  renewable  sources,  but  the 
implementing  legislation  is  missing.  Montenegro  has  not  yet  taken  a  strategic  decision  on  how  to 
replace the thermal (lignite) power plant in Plevlja, which currently produces approximately 50% of 
Montenegro’s  electricity  and  is  vital  for  security  of  supply  and  the  stability  of  the  country’s  power 
system, but remains its main polluter.  

Investment  in  digital  infrastructure  continued.  After  a  series  of  large-scale  cyberattacks  on  the 

10 NEET rate declined to 20.3% in 2023 from 23.2 in 2022. 
11 Released in December 2023. 
12 In 2023, the government allocated nearly EUR 10 million to implement R&D activities, which represent a sharp increase 

compared to EUR 4.1 million in 2022. (OECD 2024) 

51 

 
 
 
state  IT  infrastructure  in  2022,  the  government  progressed  with  the  digital  transformation  reforms. 
Cybersecurity was made a priority in 2023, through the establishment of an advanced cybersecurity 
defence  ecosystem.  After  auctioning  and  awarding  the  5G  spectrum  in  2022,  all  three  operators 
continued to work on 5G activation in all municipalities by the end of 2024. At end of 2023, around 
85.4%  of  the  population  of  Montenegro  was  covered  by  the  5G  network  signal.  Rural  broadband 
development  is  however  lagging  behind,  thereby  widening  the  connectivity  gap  between  urban  and 
rural populations. 

Modernising  the  transport  sector  requires  broad  action  and  close  partnership  with  the  EU 
Progress  on  improving  and  modernising  short  sections  of  the  road  and  rail  networks  was  slow. 
Montenegro is yet to adjust its strategy for developing the transport sector in line with its Transport 
Community  Treaty  commitments  on  sustainable  and  smart  mobility.  Improving  road  transport 
connections, in particular the rail and road corridor linking the port of Bar to Boljare,  at the border 
with Serbia, is a national priority for Montenegro. The government has reached an agreement with the 
EBRD  and  the  EC  for  a  favourable  loan  to  continue  construction  on  the  Bar-Boljare  highway, 
however  rail  corridor  part  (Bar-Vrbnica)  faces  significant  delays,  due  to  limited  absorption  and 
management capacity of the responsible administrative bodies. Montenegro did not engage with the 
European  Commission  on  the  latest  investment  planning  projects  until  2030,  except  for  the  Bar-
Boljare corridor.  A number of recently announced road development projects, such as a new inland 
route for the Adriatic-Ionian Highway, in addition to the previously planned coastal route expressway, 
depart  significantly  from  the  plans  agreed  under  TEN-T  network  and  the  country’s  Transport 
Community commitments and makes EU-funded feasibility and design studies partially obsolete.    

Sectoral and enterprise structure 

The  structure  of  the  economy  remains  broadly  unchanged.  Micro,  small  and  medium-sized 
enterprises (MSMEs) accounted for 50.4% of total employees in 2023. Micro enterprises accounted 
for  95%  of  all  MSMEs.  Across  sectors,  the  distribution  of  employment  remained  broadly  stable  in 
2023, with the services sector absorbing 77% of total employment, while the  shares of industry and 
construction (18.4%) and agriculture (4.5%) were much lower. The share of agriculture in gross value 
added declined to 5.9% in 2022, compared with an average of 7.4% in the previous 10 years, while 
the share of industry was roughly stable at some 10%. The share of construction fell to 3.8% in 2022, 
from its 10-year average of 5.1%. 

Economic integration with the EU and price competitiveness 

Growth  of  merchandise  trade  was  supported  by  higher  imports.  Montenegro’s  foreign  trade 
expanded by 5.8% year on year, with exports of goods shrinking by 3.7%, and imports increasing by 
7.8%  in  2023.  Bilateral  trade  with  the  EU  grew  by  12%  and  the  EU  remained  Montenegro’s  main 
trade partner, accounting for 36.1% and 45.8% of merchandise exports and imports, respectively. The 
share of countries in the CEFTA (Central European Free Trade Agreement) accounted for 48.4% and 
26%  of  Montenegro’s  total  exports and imports  of  goods.  The  EU  also  remains the main  source  of 
FDI  inflows,  accounting  for  29.8%  of  total  FDI  inflows  in  2023,  followed  by  Russia,  Türkiye  and 
Serbia.  Montenegro’s  price  competitiveness  was  negatively  affected  by  the  appreciation  of  the  real 
effective exchange rate due to a positive inflation differential with the euro area.13 

13 The IMF (2024) estimates the differential between the Montenegrin and euro area inflation narrowing to 1.7 percentage 

points in early 2024. 

52 

 
 
 
2.4 PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL  

Chapter 5 - Public procurement  

EU  rules  ensure  that  public  procurement  of  goods,  services  and  works  in  any  Member  State  is 
transparent and open to all EU companies on the basis of non-discrimination and equal treatment. 

Institutional set-up and legal alignment 

The legal framework on public procurement is well aligned with the EU acquis.  

In  December  2023,  the  World  Bank  Methodology  for  the  Assessment  of  the  Procurement  System 
(MAPS)  project  ended  with  a  comprehensive  evaluation  of  the  public  procurement  system  in 
Montenegro, with a special focus on electronic public procurement. The results will serve as a basis 
for further improvements in the fields of contract management, introduction of green and sustainable 
public  procurement  and  enhancement  of  the  electronic  public  procurement  system.  In  June  2024, 
secondary legislation was changed to reduce the number and value of negotiated procedures for which 
no contract notice is published.  

In April 2024, the government decided to continue with the second stage of the tender procedure for 
airports concession, with advisory support of the International Finance Corporation. 

Implementation and enforcement capacity  

The  implementation  and  enforcement  capacity  in  the  area  of  public  procurement  is  adequate  and 
remains  stable. Training  sessions  on  public  procurement  rules  and  courses  for  procurement  officers 
are organised systematically. A framework on integrity and conflict of interest in public procurement 
is  in  place.  In  January  2024,  Montenegro  introduced  a  monitoring  mechanism  for  procurement 
procedures  without  a  publication  of  the  contract  notice  (simple  procurements),  aimed  at  preventing 
irregularities in these types of procedures.  

Continuous improvements to  the  electronic  public  procurement system,  implemented  in 2023-2024, 
facilitate the exchange of data between the public institutions and are aimed at detecting and limiting 
possible irregularities and corrupt practices in the public procurement. Improved functionalities of the 
system facilitate the monitoring of contract award and implementation and appeals.  

Efficient remedy system 

Appeal procedures are in line with the EU standards and practice. At the end of 2023, a new president 
and members of the Commission for the Protection of Rights in Public Procurement Procedures were 
appointed, alleviating staff shortage issues. There are no significant  delays in treating and resolving 
complaints and the remedy system works efficiently. 

Chapter 18 - Statistics  

European  statistics  ae  developed,  produced  and  disseminated  by  EU  Member  States,  guided  by  the 
principles  and  quality  criteria  elaborated  in  the  Regulation  on  European  statistics,  such  as 
professional  independence,  impartiality,  reliability,  transparency  and  confidentiality.  Common  rules 

53 

02040608020162017201820192020202120222023Graph 6.5a: Montenegro -Exports of goodsEUCEFTAOtherSource: WiiW% ofGDP02040608020162017201820192020202120222023Graph 6.5b: Montenegro -Imports of goodsEUCEFTAOtherSource: WiiW% ofGDP 
 
 
 
are in place for the methodology, production and dissemination of statistical information, which are 
further specified in sectoral legislation that constitute the EU acquis on statistics.  

The  legal  framework  for  statistical  infrastructure  remains  broadly  in  line  with  the  European 
standards  and  integrates  the  principles  of  the  European  Statistics  Code  of  Practice.  In  2024,  the 
management  structure  of  the  Statistical  Office  of  Montenegro  (MONSTAT)  was  reinforced,  but  the 
number  of  employees  remains  at  about  60%  of  the  number  of  posts  envisaged  in  the  organisation 
chart.  The  lack  of  proper  premises  remains  a  serious  issue,  without  any  viable  solution  being 
implemented. In December 2023, the Development Strategy of Official Statistics 2024-2028 and the 
Programme of Official Statistics 2024-2028 were adopted. 

On  classifications  and  registers,  Montenegro  has  to  undertake  the  necessary  preparations  to 
introduce the new versions of the nomenclature of economic activities (NACE) and the classification 
of products by activity (CPA), entering into force in 2025. As regards the nomenclature of territorial 
units  for  statistics  (NUTS),  the  calculation,  evaluation  and  agreement  of  some  territorial  typologies 
are  still  pending.  In  terms  of  business  registers,  94%  of  the  mandatory  variables  are  available,  but 
overall compliance still needs to improve significantly.  

In the area of macroeconomic statistics, and especially implementation of the European System of 
Accounts (ESA) 2010, Montenegro still needs to achieve significant progress, both in terms of quality 
and completeness.  On quarterly and annual national accounts main aggregates, Montenegro extended 
the  length  of  time  series  on  several  datasets,  but  it  needs  to  continue  its  efforts  to  close  remaining 
gaps, further improve time series and timeliness and remove flags preventing publication of a large 
part of the data. Good progress was made towards regular production of supply, use and input-output 
tables, even though gaps remain. Only some limited preliminary government finance statistics (GFS) 
data were sent to Eurostat, while regular production is not in place. Therefore, significant efforts are 
needed  to  start  sending  regular  GFS  data  which  can  be  published,  as  well  as  properly  completed 
excessive deficit procedure (EDP) tables.  

In the  area  of  business and  trade statistics,  Montenegro   increased  its  compliance  with  short-term 
business statistics (STS) datasets, of which nine are now fully compliant. Data should be provided on 
sales volume in wholesale trade, and data on services producer prices are also missing.  For structural 
business statistics, Montenegro did not transmit data due to using the old format of transmission and is 
therefore invited to use the new format and transmit data for the relevant reference years. For business 
demography, no data is received, and Montenegro is encouraged to prepare the data collection in the 
medium term. As regards trade by invoicing currency (TIC), the required data was transmitted for the 
first  time  in  the  new  required  format.  Equally,  the  new  data  transmission  format  was  successfully 
implemented for international trade in services statistics (ITSS). For trade by enterprise characteristics 
(TEC), gaps remain, and no data was transmitted in 2023. Montenegro is therefore encouraged to step 
up efforts to transmit data for the most recent reference periods as soon as possible. 

In  the  area  of  social  statistics,  the  enumeration  phase  of  the  census  of  population,  households,  and 
dwellings  took  place  in  December  2023  and  data  entering  and  processing  was  completed.  The 
publication of census results is expected during 2024. In social protection statistics (ESSPROS), there 
is full compliance. In general, MONSTAT should improve the collection of sex disaggregated data.  

In the area of agriculture statistics, the Law on agricultural census was adopted on in July 2024, and 
the census is to take place between  October and  December 2024. Improvements should be achieved 
in several agriculture-related areas, such as crop products statistics, where most of the data is marked 
as provisional since years. On the other hand, good efforts were made in organic farming statistics. 

In  transport  statistics,  Montenegro  used  to  provide  good  quality  road  freight  transport  data  on  a 
regular basis. However, there were delays in recent transmissions and some tables are not transmitted, 
for which reason the compliance has decreased. Energy statistics are highly compliant.  

Chapter 32 - Financial control 

The EU promotes the reform of national governance systems to improve  managerial accountability, 
sound  financial  management  of  income  and  expenditure,  and  external  audit  of  public  funds.  The 

54 

 
 
financial control rules further protect the EU’s financial interests against fraud in the management of 
EU funds and the euro against counterfeiting. 

Public internal financial control (PIFC)  

Montenegro’s  strategic  framework  for  public  internal  financial  control  (PIFC)  is  in  place.  The 
government  has  adopted  annual  reports  on  the  implementation  of  relevant  strategies  and  on 
governance  and  internal  control  in  the  public  sector.  Even  though  the  development  of  managerial 
accountability in public administration is one of the key strategic objectives, its application remains 
limited, notably regarding the delegation of authority in the field of financial management and internal 
control. 

The  legislative  and  operational  framework  for  internal  control  and  internal  audit  is  in  place.   
However,  low  implementation  in  various  aspects  of  internal  control  indicates  insufficient 
understanding and non-appreciation of the system.   

In December 2023, a new methodology on internal reporting was adopted. However, many central 
government organisations bypass the parent ministries and submit their budget proposals directly to 
the  Ministry  of  Finance. The  centralised  budget  inspection  within  the  Ministry  of  Finance  started 
working  and,  in  January  2024,  published  for  the  first  time  its  annual  oversight  plan  with  a  list  of 
institutions  and  processes  it  intends  to  tackle  during  the  year.  However,  it  needs  to  be  substantially 
strengthened with appropriate human resources.   

Internal  audit  establishment and  quality  is  improving,  with  consistent  planning and  reporting 
practices  as  well  as  internal  quality  assurance  process.  However,  communication  between  internal 
auditors and senior management is limited, and frequently internal audit recommendations do not get 
implemented.  

The  Central  Harmonisation  Unit  (CHU)  made  efforts  to  increase  the  functionality  of  the  PIFC 
system, especially in the state-owned enterprises. The government endorsed the conclusions of CHU’s 
annual  report,  but  their  implementation  needs  strengthening.  CHU  and  the  Human  Resources 
Management Authority established a well-functioning continuous development programme as well as 
a certification programme for auditors.  

At the level of PIFC, an anti-corruption system exists.  All public entities are obliged to inform the 
CHU on suspicions of irregularities and fraud through the reporting system. CHU keeps the register 
on  these  cases  and  monitors  the  mitigation  measures  and  actions  undertaken.  However,  very  few 
bodies have reported any irregularities.  

External audit 

Parliament  appointed  the  fifth  member  of  the  Senate  in  July  2024  (the  position  was  vacant  since 
January 2021) of the State Audit Institution (SAI), but it has still not appointed the President of SAI 
(the position is vacant since July 2022).  An assessment by the International Organisation of Supreme 
Audit  Institutions  (INTOSAI)  concluded  that  the  delay  in  these  appointments  represents  an 
infringement  to  the  SAI  independence.  While  several  SAI  reports  have  been  discussed  in 
parliamentary  committees  during  2023,  Parliament  does  not  yet  have  an  institutionalised  follow-up 
system  of  audit  findings  and  recommendations  of  the  SAI.  Public  control  hearings  are  not  taking 
place.  

SAI adopted and implemented its annual audit plan based on risk assessment and on clearly stated 
criteria.  SAI  conducted the  audit of  the  year  end  budget report  and  24  other  audits  as  well  as  three 
audits of the State-owned enterprises, representing a significant increase compared to previous period. 
SAI also published 47 reports on the implementation of the audit recommendations.  

Protection of the EU’s financial interests 

Amendments to the Criminal Code are yet to be adopted in order to further align with the EU acquis 
on fight against fraud to the EU's financial interests by means of criminal law. The preparation of a 
new national anti-fraud strategy 2024-2027 is at an early stage. The Anti-Fraud Coordination Service 
(AFCOS) strengthened its knowledge and skills through EU-funded training activities. 

55 

 
 
Montenegro  is  cooperating  with  the  European  Anti-Fraud  Office  (OLAF).  Twelve    cases  of 
irregularities were reported in the Irregularity Management System in 2023, building a track record of 
reporting  of  irregularities.  Montenegro  should  continue  building  a  track  record  of  cooperation  on 
investigation involving EU funds. 

Protection of the Euro against counterfeiting 

Montenegro’s legislation on protecting the euro against counterfeiting is in line with the EU acquis. 
The Central Bank of Montenegro carried out activities in accordance with the European Central Bank 
(ECB) and the EU standards regulating the integrity of the euro and cash handling standards including 
trainings and exchange of information. 

3.  GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION  

Good  neighbourly  relations  and  regional  cooperation  form  an  essential  part  of  Montenegro’s 
European integration process. They contribute to stability, reconciliation and a climate conducive to 
addressing open bilateral issues and the legacies of the past. 

Montenegro  maintained  its  engagement  in  a  number  of  regional  cooperation  initiatives,  such  as  the 
Central  European  Free  Trade  Agreement  (CEFTA),  the  Energy  Community,  the  Transport 
Community,  the  South  East  European  Cooperation  Process (SEECP)  and  the  Regional  Cooperation 
Council  (RCC).  Montenegro  also  actively  participates  in  initiatives  such  as  the  Central  European 
Initiative (CEI) and the Centre for Security Co-operation (RACVIAC). 

On 7 December 2023, Montenegro ended its 2023 chairmanship of the Central European Free Trade 
Agreement (CEFTA.  

The  fourth  annual  EU-Western  Balkans  Summit  took  place  in  Brussels  in  December  2023, 
reaffirming the EU membership perspective of the Western Balkans and exploring measures aimed at 
further advancing gradual integration. 

Montenegro  has  actively  engaged  in  the  regional  dimension  of  the  Growth  Plan  for  the  Western 
Balkans,  actively  participating  in  both  ministerial  and  leaders’  meetings,  and  it  hosted  the  May 
leaders meeting in Kotor. 

On the Common Regional Market (CRM), in October 2023 the Berlin Process summit took place 
for  the  first  time  in  the  region,  in  Tirana,  adopting  an  additional  agreement  on  the  recognition  of 
professional qualifications, concerning nurses, veterinary surgeons, pharmacists, and midwives. The 
roadmap  for  roaming  between  the  Western  Balkans  and  the  EU  entered  into  the  first  phase  of 
implementation. Montenegro has ratified all four  mobility agreements  and  has deposited the related 
notification  instruments.  Twelve    major  decisions  were  agreed  by  the  CEFTA  Joint  Committee  in 
October  2024.  On  the  sidelines  of  the  Berlin  Process  summit,  Montenegro,  Slovenia  and  France 
signed  the  agreement  on  establishing  the  Western  Balkans  Cyber  Capacity  Centre  (WB3C),  with 
headquarters in Podgorica.  

Montenegro continued to closely cooperate with Croatia, Bosnia and Herzegovina and Serbia under 
the Sarajevo Declaration Process. By the end of November 2023, 681 refugee families were selected 
to benefit from the Regional Housing Programme. In 2024 a total of 646 refugee families benefited 
from this project, covering an estimated 2 000 individuals. 

The  Commission  on  Missing  Persons  of  Montenegro  continued  cooperating  with  neighbouring 
countries under bilateral cooperation protocols. There are 51 active cases of missing persons who are 
Montenegrin citizens or whose families reside in Montenegro. 

Montenegro  generally  maintains  good  bilateral  relations  with  other  enlargement  countries  in  the 
region and with neighbouring EU Member States. 

Relations with Albania  remained good, with occasional high-level bilateral visits and consultations. 
and continued work on improving bilateral cooperation in fields of mutual interest.  

Relations with Bosnia and Herzegovina remained good overall. The agreed border demarcation is yet 

56 

 
 
  
to be physically marked. Political tensions in Montenegro were sparked by a visit by the leader of the 
Republika Srpska entity in February 2024 and the UN Resolution on Srebrenica. 

Relations  with  Kosovo  remained  good,  with  several  ministerial  level  consultations,  confirming  the 
common  European  and  Euro-Atlantic  perspective,  however  with  occasional  inter-party  tensions 
within the parliamentary majority, specifically regarding the admission of Kosovo to the Council of 
Europe. The coalition agreement includes support for Kosovo’s independence and sovereignty.  

Relations  with  North  Macedonia  remained  good  with  no  pending  bilateral  issues.  High-level 
meetings between representatives of both countries took place during the reporting period, including 
in  the  context  of  the  Western  Balkans  heads  of  states  meeting  and  the  NATO  Secretary  General 
meeting with the heads of states from the region in Skopje. 

Relations with Serbia are generally stable, albeit with occasional mutual accusations. High-level visits 
took  place  and  cooperation  agreements  were  signed  between  the  two  countries.  After  a  long  delay, 
diplomatic  relations  were  restored.  A  new  Serbian  Ambassador  to  Montenegro  was  accredited  in 
February 2024, whereas the appointment of an Ambassador to Serbia is still pending. 

Bilateral  relations  with  Türkiye  remained  stable,  with  stated  intentions  to  further  develop  bilateral 
cooperation.  Montenegro’s  Parliament  Speaker  paid  an  official  visit  to  Türkiye  in  December  2023. 
Following the government reshuffle, the newly appointed Minister of Foreign Affairs visited Türkiye 
as his first official visit abroad. 

Montenegro  continued  to  provide  unequivocal  support  to  Ukraine  in  light  of  Russia’s  war  of 
aggression including humanitarian and military aid. In February 2024, the President participated in the 
Ukraine – South-East Europe Summit in Tirana. 

Relations  with  the  Republic  of  Moldova  are  good  overall.  The  Presidents  of  Montenegro  and 
Moldova met on the margins of the European Political Community in Chisinau in June 2023 and at 
the Ukraine – South East Europe Summit in Tirana in February 2024. Montenegro and Moldova also 
maintain relations through the South-East European Cooperation Process (SEECP).  

Relations with Georgia are generally friendly. In October 2023, the Prime Minister attended the Silk 
Road Forum held in Tbilisi. 

Despite  regular  bilateral  meetings,  relations  with  Croatia  have  been  souring,  with  tensions  arising 
from pending bilateral issues among other things. There was no progress regarding the pending border 
demarcation  between  the  two  countries  or  the  ownership  of  the  “Jadran”  vessel.  The  Montenegrin 
Parliament  adoption  in  June  of  a  resolution  focusing  on  the  historical  events  of  Jasenovac, 
Mauthausen  and  Dachau  sparked  a  strong  diplomatic  reaction  from  Croatia,  including  three  top 
Montenegrin officials being declared personae non gratae.  

Relations with Italy remained good. In September 2023, the President paid an official visit to Italy, 
and several cooperation protocols were signed.  

4. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

CLUSTER 2: INTERNAL MARKET 

This cluster covers: free movement of goods (Chapter 1); freedom of movement for workers (Chapter 
2);  right  of  establishment  and  freedom  to  provide  services  (Chapter  3);  free  movement  of  capital 
(Chapter  4);  company  law  (Chapter  6);  intellectual  property  law  (Chapter  7);  competition  policy 
(Chapter 8); financial services (Chapter 9) and consumer and health protection (Chapter 28).  

Chapter 1: Free movement of goods  

The free movement of goods ensures that many products can be traded freely across the EU based on 
common rules and procedures. Where products are governed by national rules, the principle of the 
free movement of goods prevents these rules from creating unjustified barriers to trade. 

57 

 
 
 
General principles 

In  April  2024,  Montenegro  adopted  its  EU  accession  programme  2024-2027,  which  includes 
planning for legislative alignment on free movement of goods.  

Non-harmonised areas 

Montenegro continued to implement its action plan for compliance with Articles 34-36 of the Treaty 
on the Functioning of the European Union (TFEU) on the prohibition of quantitative restrictions.   

Harmonised area: quality infrastructure  

On standardisation, the Institute for Standardisation of Montenegro (ISME) is continuing to address 
the  recommendations  of  the  European  Committee  for  Standardisation  (CEN)  and  the  European 
Committee  for  Electrotechnical  Standardisation  (CENELEC)  ensure  its  full  membership  of  these 
bodies. From June 2023 until June 2024, ISME published 2 486 Montenegrin standards aligned with 
EU standards.   

On metrology, Montenegro’s Bureau of Metrology is a full member of the International Organization 
of Legal Metrology since January 2023. Improvements were made to the capacity of the laboratories 
for temperature and pressure and for testing precious metal articles. 

The  Accreditation  Body  of  Montenegro  (ATCG)  accredited  42  conformity  assessment  bodies  and 
terminated  four  accredited  conformity  assessment  bodies.  In  December  2023,  the  European  co-
operation  for  Accreditation  (EA)  signed  a  multilateral  agreement  putting  ATCG  on  an  equivalent 
position to that of national accreditation bodies of the EU Member States. 

Montenegro is yet to align to the latest EU acquis on market surveillance.  1 278 market surveillance 
inspections were ensured, which identified 618 dangerous and non-compliant products (32 258 items). 
New market surveillance inspectors were hired.  

Harmonised area: sectoral legislation 

Regarding  ‘new  and  global  approach  product  legislation’,  Montenegro  adopted  implementing 
legislation  on medicines for  human  and  veterinary  use,  medical  devices,  and construction  products, 
designed to ensure partial alignment with the EU acquis.  

On ‘old approach product legislation’, Montenegro adopted implementing legislation, designed to 
ensure  high  level  of  alignment  with  the  EU  acquis  on  chemicals,  notably  certain  annexes  and  an 
implementing  regulation  of  the  EU  Regulations  on  Registration,  Evaluation,  Authorisation  and 
Restriction of Chemicals (REACH) and Classification, Labelling and Packaging (CLP).  

On procedural measures, there were no new developments to report.   

On  anti-corruption  measures  under  this  chapter,  the  integrity  plan  of  the  Administration  for 
Inspection Affairs (covering market surveillance) is in place.  

Chapter 2 - Freedom of movement for workers  

Citizens of one Member State have the right to work in another Member State and must be given the 
same working and social conditions as other workers. 

There were no legislative developments concerning access to the labour market. In 2023, a total of 
38 943  permits  for  temporary  residence  and  work  were  issued,  32.83%  more  than  in  2022.  The 
government  set  at  28 988  the  annual  number  of  permits  for  temporary  residence  and  work  of 
foreigners in 2024.  

Montenegro  is  preparing  to  join  the  European  network  of  employment  services  (EURES)  upon 
accession to the EU and developed a practical guide for the Agency to improve labour force mobility 
and  a  roadmap  to  join  the  EURES  portal.  Training  was  provided  to  Agency  staff.  Business  and  IT 
solutions to fulfil requirements for EURES Interoperability are being developed.  

Montenegro has 24 bilateral agreements in force for the coordination of social security systems, of 
which 16 are with the EU Member States. Further effort is required to ratify the agreement on social 

58 

 
 
insurance  with  Albania  ,  to  sign  a  draft  agreement  with  Bosnia  and  Herzegovina  and  to  strengthen 
administrative capacity.  

The European Health Insurance Card (EHIC) is recognised under the Law on compulsory health 
insurance but will only be introduced after EU accession. No new agreement on the use of the card 
was signed with EU Member States. In line with the 2023 Health Insurance Fund staffing plan, three 
executors were hired for the positions of senior adviser for international health insurance. 

Chapter 3 - Right of establishment and freedom to provide services  

EU  natural  and  legal  persons  have  the  right  to  establish  themselves  in  any  Member  State  and  to 
provide  cross-border  services.  For  certain  regulated  professions,  there  are  rules  on  mutual 
recognition of qualifications. EU rules on postal services focus on improving the quality of universal 
service, gradual market opening to competition, and the establishment of an independent regulator. 

On the right of establishment and freedom to provide cross-border services, the horizontal law on 
services  needs  to  be  amended  to  ensure  full  compliance  with  the  EU  Services  Directive.  Sectoral 
legislative alignment with the EU Services Directive continued, namely through the adoption of the 
Law  on  Waste  Management  in  April  2024.  Efforts  however  should  step  up  to  increase  sectoral 
legislative alignment. In July 2024, the Point of Single Contact for services portal was established and 
is operational. Activities on electronic company registration continued as part of the ongoing efforts to 
increase number of e-services in state administration.  

On postal services, the national legislation is aligned with the EU postal acquis, including the Postal 
Services Directive and the Regulation on cross-border parcel delivery services. There is one universal 
service  provider  and  23  other  postal  operators.  In  October  2023,  the  government  adopted  the  final 
report  on  the  implementation  of  the  Strategy  for  the  development  of  postal  services  2019-2023.  In 
December 2023, the government adopted the new strategy for the Development of the Postal Services 
2024-2028 and its action plan for 2024-2025. Montenegro should continue monitoring  and ensuring 
compliance with  the established postal market rules. 

On  mutual  recognition  of  professional  qualifications,  Montenegro  should  continue  its  alignment 
with the acquis. In December 2023, Parliament adopted the Law on confirmation of the agreement on 
the recognition of professional qualifications for doctors of medicine, dentists and architects under the 
Common  European  Free  Trade  Agreement  (CEFTA)  signed  within  the  framework  of  the  Berlin 
Process. It entered into force in February 2024 and the Montenegrin institutions have 18 months to 
align  sectoral  legislation  with  this  agreement.  Additionally,  in  December  2023,  Parliament  adopted 
the  Law  on  confirmation  of  the  agreement  on  the  recognition  of  professional  qualification  of  the 
general care  nurses,  doctors  of veterinary medicine, pharmacists and midwives under  CEFTA.  This 
agreement  is  yet  to  enter  into  force  for  Montenegro.  Efforts  to  align  with  the  Proportionality  Test 
Directive and the minimum training requirements of all sectoral professions need to accelerate.  

Chapter 4 - Free movement of capital  

In the EU, capital and investments must be able to move without restriction, with common rules for 
cross-border payments. Banks and other economic operators apply certain rules to support the fight 
against money laundering and terrorist financing. 

There were no developments in the area of capital movements . Montenegro has yet to implement its 
obligations  under  the  Stabilisation  and  Association  Agreement  as  regards  amending  the  Law  on 
ownership rights, removing preferential treatments and ensuring that EU nationals can buy real estate 
or farming land under the same conditions as Montenegro nationals. 

In the area of payment systems, the legal framework on payment systems was further aligned with 
the EU acquis . The Law on interchange fees and business rules concerning payment cards came into 
force. Subsequently, the Central Bank of Montenegro adopted implementing legislation on payment 
systems as well as the Decision on the method and time limits for submitting data on interchange fees. 

The Central Bank continued to check the compliance of operations with the regulations in the field of 
payment transactions. The Central Bank has completed the implementation and system-wide thematic 

59 

 
 
control  of  payment  service  providers’  business  compliance  with  certain  provisions  of  the  Law  on 
payment transactions, imposed appropriate measures on six banks, as a result of which it initiated five 
misdemeanour  proceedings  and  carried  out  two  targeted  extraordinary  controls  and  four  regular 
controls  of  payment  service  providers  (banks).  In  July  2024  Montenegro  submitted  its  formal 
application to join the Single Euro Payments Area (SEPA). 

In  the  area  of  fight  against  money  laundering  and  terrorism  financing,  Montenegro  made  some 
progress  aiming  to  align  with  the  acquis  on  the  prevention  of  money  laundering  and  terrorism 
financing, as well as international instruments. The new Law on prevention of money laundering and 
financing  of  terrorism  was  adopted,  aiming  to  further  align  the  legal  framework  with  relevant  EU 
directives  and  to  comply  with  the  Financial  Action  Task  Force’s  (FATF)  recommendations  . 
Amendments were also adopted to the Law on games of chance. Further efforts are needed to fully 
meet FATF recommendations. 

The Central Bank continued to carry out regular controls of business compliance with regulations in 
the  field  of  preventing  money  laundering  and  terrorist  financing.  During  2023,  the  Central  Bank 
imposed  five  measures  and  two  misdemeanour  proceedings against two  banks were initiated before 
the  Court  for  Misdemeanours.  In  2023,  five  controls  were  carried  out  in  connection  with  the 
verification of the execution of the imposed supervisory measures. 

During  2023,  the  Capital  Market  Authority  (CMA)  carried  out  12  direct  controls  of  investment 
companies  and  companies  for  the  management  of  investment  funds.  The  CMA  took  adequate 
measures within its powers to eliminate irregularities and remedy non-compliance.  

Chapter 6 - Company law  

The EU has common rules on the formation, registration and disclosure requirements of a company, 
with complementary rules for accounting and financial reporting, and statutory audit. 

In  the  area  of  company  law,  Montenegro  is  preparing  a  new  company  law  and  a  law  on  business 
organisations to further align national legislation with the EU acquis in this area.  Montenegro needs 
to  align  with the directives  on  certain  aspects  of  company  law  (Directive  2017/1132)  on the use  of 
digital tools and processes (Directive 2019/1151), on cross-border conversions, mergers and divisions 
(Directive 2019/2121), on gender balance among directors of listed companies (Directive 2022/2381) 
and  on  the  encouragement  of  long-term  shareholder  engagement  (‘SRD  II’  Directive).  No  progress 
was  registered  on  the  finalisation  of  the    revision  of  the  Corporate  Governance  Code.  Montenegro 
should ensure that the national business register is  technically ready to interconnect with the Business 
Registers Interconnection System (BRIS). 

In the area of company reporting, legislative work to achieve full alignment with the EU acquis on 
transparency  requirements for  listed  companies  is  ongoing through  the  Law  on  Amendments  to  the 
Law  on  Capital  Market.    Concerning  accounting,  it  is  important  that  Montenegro  completes  its 
alignment  with  the  accounting  directive  concerning  financial  reporting  regime  for  micro  and  small 
companies,  and  dividend  distribution.  The  World  Bank  is  currently  conducting  an  assessment  of 
financial  reporting  on  the  observance  of  standards  and  codes  concerning  accounting  and  auditing 
('ROSC').  

The capacity of both the Department for Audit Oversight with two quality assurance inspectors and 
the  Department  for  Accounting  with  two  employees  is  operational,  but  needs  to  be  further 
strengthened in the coming period. 

Chapter 7 - Intellectual property law  

The EU has to a large extent harmonised rules for the legal protection and enforcement of intellectual 
property rights (IPR), covering notably patents, trade mark and designs, biotechnological inventions 
and  pharmaceuticals,  trade  secrets,  (craft  and  industrial)  geographical  indications,  supplementary 
protection certificates, copyright and related rights.  

Montenegro  made  significant  progress  on  copyright  and  related  rights.  In  May  2024  Parliament 
adopted  the  Law  on  Amendments  to  the  Law  on  copyright  and  related  rights,  to  align  national  

60 

 
 
legislation with (i) the Directive on certain permitted uses of works and other subject matter protected 
by copyright and related rights for the benefit of persons who are blind, visually impaired or otherwise 
print-disabled,  and  (ii)  the  Directive  on  the  coordination  of  certain  rules  concerning  copyright  and 
rights related to copyright applicable to satellite broadcasting and cable retransmission. Furthermore, 
in October 2024, Montenegro adopted further amendments to the Law on copyright and related rights 
to align with the Directive on the exercise of copyright and related rights applicable to certain online 
transmissions of broadcasting organisations and retransmissions of television and radio programmes, 
(SatCab II); and the Directive on copyright and related rights in the Digital Single Market. 

On  industrial  property  rights,  in  May  2024  Parliament  adopted  the  Law  on  ratification  of  the 
Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications, which 
reinforces cultural contributions and reward the creativity of authentic know-how. 

On enforcement, in December 2023, a guide for enforcement of intellectual property rights and an 
improved reporting methodology were adopted. A number, but not all, of activities in the 2023 action 
plan were completed, including to strengthen administrative capacities, IT tools and databases and to 
raise public awareness. In May 2024, the government adopted the action plan for the implementation 
of  intellectual  property  strategy  for  2024.  In  October  2024,  the  Parliament  finalised  the  legislative 
alignment with the enforcement Directive by adopting the necessary amendments through the Law on 
copyright and related rights.  

The performance of the Market Inspectorate and Customs Administration notably improved and the 
number  of  misdemeanour  orders  increased  as  did  the  value  of  fines  and  the  number  of  items 
confiscated  by  the  Customs  Authority.  Joint  actions  of  the  authorities  responsible  for  protection  of 
intellectual property rights took place in July and November 2023. It is important to step up efforts in 
securing  disposal  facilities  for  seized  goods  and  strengthening  joint  actions  with  the  Police 
Administration.  In  August  2024  the  government  adopted  the  decision  on  disassembling  the 
Administration of Inspection Affairs, effective as of 1 October 2024. In that regard, Montenegro is to 
ensure  transitional  provisions  and  continuity  of  operations  of  market  inspectors  and  inspection 
regarding  intellectual  property  rights  by  swift  implementation  of  the  new  personnel  plan  and  job 
systematisation of the Ministry of Economic Development, to which they will be attached. 

In October 2023, Montenegro amended the Decree on detailed implementation of customs procedures 
and customs formalities to improve the handling by customs authorities of goods for which there is a 
reasonable suspicion that they infringe intellectual property rights. This decree includes all provisions 
of  the  relevant  EU  regulations  governing  the  actions  of  the  customs  authority  for  the  protection  of 
intellectual property rights at the border.  

Montenegro  Intellectual  Property  Office  has  signed  with  the  European  Union  Intellectual  Property 
Office  an  MoU,  which  mainly  focuses  on  convergency  of  common  practices,  technical  and 
operational support with harmonisation of  acquis and examination guidelines, as well as integration 
into EUIPO data bases and networks. 

Chapter 8 - Competition policy  

EU rules protect free competition. They include antitrust rules against restrictive agreements between 
companies and abuse of a dominant position, and rules on concentrations between companies which 
would significantly impede effective competition. EU rules also set out a system of State aid control. 
Governments  are  only  allowed  to  grant  State  aid  if  restrictive  conditions  are  met,  with  a  view  to 
preventing distortion of competition. 

Antitrust and mergers 

The  legislative  framework  is  broadly  aligned  with  the  EU  acquis  and  the  Stabilisation  and 
Association  Agreement.    Limited  cooperation  with  the  Court  and  regulators  is  hampering  the 
performance of the Agency for Protection of the Competition (APC). Montenegro should finalise and 
adopt  without  further  delay  the  Action  Plan,  with  realistic  timelines,  for  achieving  the  closing 
benchmarks in Chapter 8.  

61 

 
 
As regards the institutional framework, the management structure was further improved through the 
appointment  of  an  acting  Deputy  Director  in  October  2023.  The  organisational  structure,  however, 
requires further modifications and additional personnel to function properly. 

In  the  area  of  enforcement  capacity,  the  APC’s  operational  and  financial  capacity  needs  to  be 
strengthened. 

As regards implementation, in December 2023, the APC adopted a decision regarding the prohibition 
of cartel practices. This is a significant development considering that in the past 8 years there were no 
procedures  initiated  and  no  decisions  taken  regarding  potential  abuse  of  a  dominant  position.  The 
APC is still committed to issue decisions on individual exemptions, a category that is obsolete in the 
EU but still present in the Montenegrin Competition Act 

State aid 

The  legislative  framework  is  mostly  in  line  with  the  EU  acquis.  Montenegro  adopted  secondary 
legislation on State aid rules. The 2018 Law on State aid control sets out the notion of aid as well as 
procedural State aid rules but further alignment with the EU acquis is needed.  

On implementation, the APC adopted 40 decisions and opinions in ex ante and ex post procedures. 
The APC started to deal with cases in the energy sector.  

The APC continues ongoing investigations, including on whether the agreement concluded between 
the National Tourist Organisation of Montenegro and Montenegro Airlines was a basis for granting 
illegal  State  aid.  The  APC  also  continued  examining  financial  support  for  To  Montenegro  and  the 
Bar-Boljare  highway  cases.  In  September  2023,  the  APC  initiated  an  examination  procedure 
concerning a purchase made by Elektroprivreda Crne Gore EPCG. The APC issued an opinion on the 
state guarantee for the loan to the Montenegrin Electric Transmission System (CGES) for financing 
electricity transmission system infrastructure with funding by the European Bank for Reconstruction 
and  Development  (EBRD).  There  are  no  final  outcomes  from  the  ongoing  State  aid  investigations, 
including for the recovery of potentially illegal aid regarding Montenegro airlines. 

The APC conducted outreach activities and awareness raising in the field of State aid addressed to aid 
grantors and judges. The cooperation between APC and State aid grantors from public administration 
at central and local level intensified; yet public administration guidelines on State aid, to ensure that 
there is systematic consultation of the APC when new policies with potential impact on competition 
or qualifying as State aid are being designed, are still missing.  

The  APC  regularly  participates  in  legislative  processes  to  ensure  the  compliance  of  new  legislation 
with State aid rules. 

Liberalisation 

There are no significant developments in this area. 

Chapter 9 - Financial services  

EU  rules  aim  to  ensure  fair  competition  among,  and  the  stability  of,  financial  institutions,  namely 
banking, insurance, supplementary pensions, investment services and securities markets. They include 
rules on authorisation, operation and supervision of these institutions.   

On banks and financial conglomerates, work continued on further implementation and alignment of 
the  banking  legislation  with  acquis,  notably  in  the  areas  of  capital  requirements  and  recovery  and 
resolution of credit institutions, with several secondary legislation acts adopted by the central bank.  

There  were  no  relevant developments in the area  of  insurances and  occupational  pensions.  Work 
continued  on  alignment  with  Solvency  II  Directive,  Insurance  Distribution  Directive  and 
accompanying secondary legislation. 

Regarding financial market infrastructure, there were no relevant developments.  

62 

 
 
On  securities  markets  and  investment  services,  there  were  no  relevant  developments.  Work 
continued  on  alignment  with  the  Directive  on  Alternative  Investment  Fund  Managers  and  the 
Directive on undertakings for collective investment in transferable securities.  

They were no relevant developments in the area of sustainable and digital finance. Alignment with 
two Regulations in this area should be achieved upon the EU accession. In 2024, the Central Bank of 
Montenegro joined the Sustainable Banking and Finance Network, a global platform on sustainable 
finance for regulators, coordinated by the World Bank Group. 

Chapter 28 - Consumer and health protection 

EU  rules  protect  consumers’  economic interests  and also ensure  product safety,  prevent  dangerous 
imitations, and establish liability for defective products. The EU also ensures high common standards 
for  tobacco  control,  blood,  tissues,  cells  and  organs,  and  medicines  for  human  and  veterinary  use. 
The EU also has rules for upholding patients’ rights in cross-border healthcare and in preparing for 
and responding to cross-border health threats, including communicable diseases. 

Consumer protection 

On  horizontal  aspects,  Montenegro  continued  to  implement  the  recommendations  of  the  EU  peer 
review  on  consumer  protection,  including  training  and  capacity  building.  The  composition  of  the 
Consumer  Protection  Council  was  expanded,  and  remuneration  for  participation  in  this  body  was 
introduced to encourage the members to further engage in the work of the Council. The low level of 
activity by local governments on consumer protection remains a persistent challenge. Montenegro’s 
Law on Consumer Protection is yet to be further aligned with the EU acquis. 

Concerning enforcement and redress, the composition of the Committee for out-of-court settlement  
of  consumer  disputes  was  improved.  In  early  2024,  the  High  Court  of  Podgorica  confirmed  that  a 
processing fee for loans as percentage of the approved loan amount was declared unlawful, following 
a  collective  proceeding  initiated  by  a  consumer  organisation.  It  demonstrates  the  readiness  of  the 
Montenegrin judiciary to interpret legislation in line with EU  acquis and judgments of the CJEU. A 
total of 596 complaints were registered in the central consumer information  system, with more than 
96% resolved, of which more than 58% were fully or partially in favour of the consumer. As for the 
complaints that could not be resolved, the consumer was informed that they can exercise their rights 
in  court  /  out-of-court  proceedings.  Controls  by  the  Central  Bank  of  Montenegro  led  to  warning 
measures  to  creditors  whose  level  of  consumer  protection  was  determined  to  be  unsatisfactory. 
Montenegro is yet to complete its planned reorganisation of the inspection services and to establish a 
coordination  body  for  the  harmonisation  and  monitoring  of  inspection  supervision.  It  also  needs  to 
align its legislation with the EU acquis on representative actions.  

On  product  safety,  national  legislation  was  aligned  with  the  EU  acquis  on  the  Safety  Gate  Rapid 
Alert system for dangerous non-food consumer products (See also Chapter 1 on market surveillance). 
However,  Montenegro  is  yet  to  further  align  its  legislation  with  the  EU  acquis  on  general  product 
safety.   

Public health  

On public health, in October 2023 the 2023-2027 healthcare development strategy and its 2023-2024 
action plan were adopted. Health accounts for 12.5% of the total 2024 state budget (compared to 14% 
in  2023).  In  January  2024,  Montenegro  signed  an  association  agreement  to  join  the  EU4Health 
programme. Regarding eHealth, in July 2023 a new IT system of the Clinical Centre of Montenegro 
(which provides two thirds of all medical services in Montenegro) was put into operation to improve 
the  accessibility  and  quality  of  healthcare  services  to  patients.  However,  the  system  is  not  fully 
functional and certain aspects cause challenges for both doctors and patients. Following the call for 
interest to join the Critical Medicines Alliance, one entity from Montenegro is now participant.   

There were no developments to report on tobacco control.  

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On communicable diseases, Montenegro adopted implementing legislation designed to further align 
to the EU acquis. The level of immunisation of children with the measles, mumps and rubella (MMR) 
vaccines has declined. Progress was made on the construction of the new infectious diseases centre.  

There  were  no  developments  to  report  on  blood,  tissues,  cells  and  organs  nor  patients’  rights  in 
cross-border health care.  

On  preventive measures, a  new  clinic for  mental  health  is  being  built and is expected to  provide 
comprehensive treatments to both adults and children in respective psychiatric departments.  

There were no developments to report on nutrition and physical activity, on alcohol-related harm 
reduction or on drug abuse prevention and harm reduction. 

On health inequalities, there were no developments to report. 

On corruption, several public opinion surveys and reports by CSOs report that many citizens are not 
satisfied with the public healthcare system, citing corruption as one of the most common challenges.   

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH  

This cluster covers: digital transformation and media (Chapter 10); taxation (Chapter 16); economic 
and  monetary  policy  (Chapter  17);  social  policy  and  employment  (Chapter  19);  industrial  policy 
(Chapter  20);  science  and  research  (Chapter  25);  education  and  culture  (Chapter  26);  and  customs 
union (Chapter 29). 

Chapter 10 - Digital transformation and media  

The  EU  supports  the  smooth  functioning  of  the  internal  market  for  electronic  communications, 
electronic commerce and audiovisual services. The rules protect consumers and support the universal 
availability of modern services. 

Significant  progress  was  made  regarding  electronic  communications.  In  October  2024,  the 
Parliament adopted national legislation aligning with the European Electronics Communication Code. 
Through  this  Law,  Montenegro  brought  its  legislation  in  line  with  the  EU  acquis  as  regards  the 
provisions on the independence of the national regulatory authority for electronic communications i.e. 
the  Agency  for  Electronic  Communications  and  Postal  Services  (EKIP).  The  government  should 
adopt the National Plan for the development of broadband infrastructure and work towards alignment 
with  the  Gigabit  Infrastructure  Act.  New  Council  members  of  EKIP  were  appointed  in  April  2024. 
This has enabled the regulator to resume its normal functions: an important step for Montenegro in 
building up a track record ensuring the independence of the media and telecommunications regulators.  

Regarding  digital  trust  and  cybersecurity,  Montenegro  has  strengthened  its  cybersecurity 
infrastructure, improved the capacities of the government’s Computer Incident Response Team, and 
established  an  online  portal  to  raise  awareness  of  cybersecurity  issues.  Montenegro  formally 
committed to achieve full alignment of national legislation with the Network and Information Security 
Directive (NIS 2) by December 2024 and the Open Data Directive by December 2026 and to establish 
a Cybersecurity Agency and meet cybersecurity requirements for critical infrastructure. Montenegro 
is not yet aligned with the e-Privacy Directive and needs to continue the implementation of the 5G 
Cybersecurity Toolbox measures, including assessing the risk profile of suppliers and putting in place 
appropriate restrictions and/or exclusions for high-risk suppliers. Regarding electronic identification 
and trust services, Montenegro is encouraged to swiftly align its national legislation with the new EU 
Digital Identity and Trust Services framework. 

Concerning digital services, alignment with the Digital Services Acts (DSA) and Digital Markets Act 
(DMA) needs to be stepped up to provide predictability for business.  

The  Ministry  of  Public  Administration  (MPA)  continued  implementing  the  National  System  for 
Electronic Collection and Control of Collection of Administrative Fees (NS NAT) project to facilitate 
the  process  of  paying state  fees and  services.  Montenegro  started  implementing activities related  to 
public calls under the Digital Europe Programme. 

64 

 
 
Concerning  media,  in  June  2024,  Parliament  adopted  the  Law  on  audiovisual  media  services,  the 
amendments  to  the  Law  on  media,  and  the  Law  on  the  national  public  broadcaster  following 
consultations  with  the  Commission.  This  paved  the  way  for  the  reactivation  of  Montenegro’s 
participation  in  the  media  and  cultural  strands  of  Creative  Europe  Programme  in  July  2024.  The 
Regulatory  Agency  for  Electronic Media (AEM)  which  became  the  Agency  for  Audiovisual  Media 
Services  (AMU),  was  accorded  the  authority  to  effectively  monitor  and  impose  fines  in  case  of 
violations of the law. The AMU has taken steps to  strengthen its operational capacity in order to  use 
its  newly  acquired  powers  to  effectively  monitor    the  functioning  of  the  audiovisual  market  and 
promote media literacy.  

Chapter 16 - Taxation  

EU  rules  on  taxation  cover  value-added  tax,  excise  duties  and  aspects  of  corporate  taxation.  They 
also cover cooperation between tax administrations, including the exchange of information to prevent 
tax evasion. 

In the area of indirect taxation, VAT related implementing legislation was adopted.  

Excise taxation is partially aligned with the EU  acquis. Minimum excise duty rates for alcohol and 
alcoholic beverages mostly comply with the EU law (except beer). Amendments to the Law on excise 
taxes introduced excise duty calendar for cigarettes to ensure full compliance with the EU minimum 
requirements by 1 January 2025 and aligned the excise duty applied to other manufactured tobacco to 
the EU acquis. Further alignment is needed with the general rules for the production, keeping, storage, 
movement, and controls on products that are subject to excise duties according to the EU acquis. 

In the area of direct taxation, amendments to the Law on corporate income tax aligned the legislation 
further with the EU acquis, by introducing a special tax status for certain transactions between income 
taxpayers  and  non-resident  legal  entities,  modifying  taxation  applicable  to  mergers,  divisions  and 
transfers of assets and exchanges of shares concerning companies of different Member States, as well 
as transfers of the headquarters of European companies from one Member State to another.  

The EU cooperates with Montenegro through an enhanced dialogue on tax good governance within 
the framework of the EU list of non-cooperative jurisdisctions for tax purposes. 

On administrative cooperation and mutual assistance, in December 2023, the OECD conducted a 
peer review in the area of exchange of information on request, but the report is not yet issued. Work 
continued to procure software for the automatic exchange of information.  

the  operational  capacity  and  computerisation, 

As  concerns 
the  Revenue  and  Customs 
Administration was separated into two separate bodies in January 2024 and the Tax Administration 
was created. The tax inspection and VAT refunds were centralised in 2023 based on recommendations 
of the IMF. Work continued to implement the integrated information system which paved the way for 
future interconnectivity with the EU IT systems on VAT and excise as well as tax cooperation and 
exchange of information.  

On anti-corruption measures, joint inspection controls were carried out by the Tax Inspectorate, the 
Police  Administration  and  the  Prosecutor’s  Office  to  detect  tax  fraud  and  evasion,  resulting  in 
criminal reports.   

Chapter 17 - Economic and monetary policy  

EU rules require the independence of central banks and prohibit them from directly financing the 
public sector. Member States coordinate their economic policies and are subject to fiscal, economic 
and financial surveillance. 

Montenegro does not have standard monetary policy tools at its disposal, as it uses the euro  as legal 
tender, leaving fiscal policy as the main macroeconomic policy instrument. Montenegro’s use of the 
euro  is  based  on  a  decision  that  the  authorities  made  under  exceptional  circumstances  and  is  fully 
distinct  from  membership  of  the  euro  area.  A  new  Governor  was  appointed  at  end-2023,  further 
challenge  relates  to  codifying  the  selection  procedures  for  Vice-Governors  which  would  be 

65 

 
 
transparent, focused on candidates’ technical competence, and free from political influence. 

In December 2023, following the action plan for alignment with the EU acquis, Montenegro adopted 
amendments  to  the  Law  on  the  Central  Bank  of  Montenegro  (CBM)  aimed  at  strengthening  its 
functional, institutional, personal and financial independence.  

In the area of economic policy, there were no significant progress in terms of alignment with Council 
Directive  on  requirements  for  budgetary  frameworks  of  the  Member  States,  or  introduction  of 
European  System  of  Accounts  (ESA  2010)  standards.  .  Ministry  of  Finance,  Central  Bank  of 
Montenegro  and  Monstat  should  undertake  concrete  efforts  to  ensure  practical  cooperation  and  to 
develop the appropriate capacity to produce government finance statistics and fiscal notifications in 
line with the EU acquis. 

The  government  adopted  and  submitted  its  2024-2026  Economic  Reform  Programme  on 
12 January 2024. The programme integrates macroeconomic, fiscal and structural reform plans into a 
single strategic document. Core reforms under the ERP continue from the previous programme and 
are in line with key reforms presented in the Reform Agenda.   In September 2024 the government 
adopted a medium-term fiscal consolidation strategy . The implementation of the policy guidance set 
out in the conclusions of the Economic and Financial Dialogue of May 2023 has been partial. 

Chapter 19 - Social policy and employment  

EU rules in the social field include minimum standards for labour law, equality, health and safety at 
work  and  non-discrimination.  They  also  promote  social  inclusion  and  social  protection,  and  social 
dialogue at EU level. 

Concerning  the  Law  on  Labour,  amendments  are  under  preparation, including  the  transposition  of 
the Directive on work-life balance for parents and carers and repealing  Directive on transparent and 
predictable working conditions as well as with the EU Framework Agreement on Telework. 

The  enforcement  of  the  Labour  Law  remains  weak  and  inspection  services  understaffed.  The 
appointment  of  inspectors  for  a  certain  period  is  not  in  accordance  with  Art.  6  of  the  ILO  Labour 
Inspection Convention No. 81. 

Between 15 June 2023 and 1 April 2024, the labour inspectorate carried out 5 149 inspections (3 478 
regular and 1 671 per initiative) and 2 306 irregularities were identified. Most irregularities concerned 
work without an employment contract and a declaration to compulsory social security cover, as well 
as provisions concerning working time. 

The annual action plan for Health and Safety at Work 2024 was adopted in May 2024.   

Monitoring  and  enforcement  mechanisms  of  the  Law  on  Occupational  Safety  and  Health  (OSH)  as 
well  as  data  availability,  accuracy  and  analysis  are  weak.  There  is  no  supervision  of  licensed  OSH 
coordinators in place.  SMEs face challenges in implementing comprehensive OSH measures due to 
resource constraints and a lack of awareness. The OSH inspectorate carried out 267 inspections. 419 
irregularities  were  identified,  397  were  remedied.  One  death  (in  the  construction  sector)  and  two 
serious injuries (one in the construction sector and one in the woodworking industry) were reported. 

Concerning  social  dialogue,  a  number  of  branch  collective  agreements  have  been  concluded  or 
amended.  Collective  bargaining  primarily  occurs  at  the  sector  and  national  level,  with  agreements 
primarily regulating employees’ salaries and working hours. Some important sectors remain without 
collective agreements, such as the banking sector or the media.  

The tripartite Social Council met three times. The working group within the Social Council dealing 
with occupational health and safety is not functional. The involvement and impact of social partners 
in  relevant  policy  making  processes  remains  weak.  The  Law  on  Strikes  and  the  Labour  Law  lack 
coherence  concerning  minimum  work  processes.  Following  the  creation  of  a  Directorate  for  Social 
Dialogue  under  the  new  Ministry  of  Labor,  Employment  and  Social  Dialogue  the  enhancement  of 
capacity building of social partners and efforts to strengthen social dialogue need to continue. 

66 

 
 
Regarding  labour  force  participation  and  unemployment  rate  see  the  statistical  annex  and  the 
section on the functioning of the labour market under 2.3 Economic criteria. 

As concerns employment policy, the Annual Action Plan for 2024 under the National Employment 
Strategy  was  adopted  in  early  2024.  While  at  the  level  of  strategies  equal  opportunity  and  the 
inclusion  of  vulnerable  groups  is  well  targeted,  their  employment  rates  remain  limited.  The 
implementation of Active Labour Market Measures by the Employment Agency lacks flexibility and 
is underfunded. The level of informal employment remained high, estimated to constitute 26-31% of 
national GDP. This is addressed in the Programme for Suppressing of informal economy (2024-2026) 
the government adopted at the end of 2023. 

The Employment Agency continued implementing an ambitious digitalisation process. It is planned to 
be in place by the end of 2024. A revised Youth Guarantee Implementation Plan for 2024-2026 was 
adopted in July 2024, but a reform of the graduate programme and a strengthening of the capacities of 
the Employment Agency are crucial for its effective implementation.  

MONSTAT  produces  labour  strategic  documents  to  ensure  equal  opportunities  and  inclusion  for 
vulnerable  groups  (Roma  and  Egyptian  minorities  and  persons  with  disabilities).  The  National 
employment  strategy (2021-2025) and the  National  strategy  for gender  equality  (2021-2025)  aim  at 
increasing the employment of women. 

Concerning social protection and social inclusion, the risk of poverty rate in Montenegro is 20.3% 
with children being the most exposed compared to other age groups. Income inequality persists, with 
the Northern region at a higher risk of poverty. 40.4% of children are ‘at the risk of poverty or social 
exclusion’ as per the at risk of poverty or social exclusion (AROPE) indicator, down from 45.5% in 
2022.  

The  policy  framework  for  social  and  child  protection  is  outdated  and  the  adoption  of  the  social 
protection  reform  is  delayed  facing  challenges  it  terms  of  sequencing,  costing  of  measures.  A  new 
social  and  child  protection  strategy  has  been  prepared  and  is  pending  adoption.  A  serious  lack  of 
child,  family  and  victim  support  services  persists.  Social  assistance  spending  is  relatively  high  but 
remains untargeted with a limited impact on the risk of poverty. An outdated disability identification 
model leads to unfair and ineffective provision of disability based benefits and services. The draft law 
on  a  unified  disability  determination  system  passed  through  public  consultation  and  legal 
harmonisation, but is pending adoption. An IT system for tracking and calculating social benefits is in 
place.  Upgrading  and  upscaling  of  the  system  is  envisaged.  Individual  activation  plans  aim  at 
including beneficiaries of social assistance into the labour market. 

With regard to de-institutionalisation, insufficient progress has been made to continue the transition 
from institutional to community and family-based services. A Strategy for Deinstitutionalisation has 
been developed but is pending adoption. Centres for Social Work continue to lack adequate staffing, 
organisation  and  capacities.  The  Institute  for  Social  and  Child  Protection  does  not  have  sufficient 
human capacities to ensure quality assurance and professional supervision.  

As  concerns  non-discrimination in  employment  and  social  policy,  in  2023  the  largest  number  of 
complaints presented to the Ombudsman were filed in the field of labour and employment (122).   

With  regard  to  equality  between  women  and  men  in  employment  and  social  policy,  the  labour 
rate  of 
force  participation 
women in Montenegro remains 
with  66.3%  lower  than  the  EU 
average  (79.4%).  The  gender 
employment  gap  persists.  Men 
make up 53.9% of all employed 
persons, compared to 46.1% of 
women  despite  the  fact  that 
women  make  up  a  better-
educated part of the population. 
Efforts  continued  to  expand 

67 

 
 
access  to  childcare,  but  structural  barriers  affecting  female  labour  force  participation  remain. 
Legislation  exists  in  Montenegro  to  promote  equal  pay  for  work  of  equal  value  but  weaknesses  in 
policy mean that wage gaps persist. 

Chapter 20 - Enterprise and industrial policy  

EU  industrial  policy  strengthens  competitiveness,  facilitates  structural  change  and  encourages  a 
business-friendly environment that stimulates small and medium-sized enterprises (SMEs). 

In  the  area  of  enterprise  and  industrial  policy  principles,  the  2023-2026  strategy  for  the 
development of micro, small and medium enterprises (MSMEs) was adopted in June 2023. Following 
up on the Joint Conclusions of the Economic and Financial Dialogue between the EU and Montenegro 
from May 2023, the government adopted 2024-2026 Programme for the Suppression of the Informal 
Economy  in  December  2023.  In  August  2024,  the  government  adopted  the  2024-2028  industrial 
policy, aligned with the current EU industrial policy. 

In the area of enterprise and industrial policy instruments, in 2023, the government supported 380 
MSMEs  through  financial  support  programmes,  which  amounted  to  a  support  of  EUR  2.4  million, 
18% above the figure registered in 2022. The agreement for participation of Montenegro in the Single 
Market Programme (SMP) 2021-2027 came into force in September 2023. 

In  the  area  of  sectoral  policies,  the  report  on  the  implementation  of  Montenegro’s  2019-2023 
Industrial Policy was published in April 2024. Overall, from the 61 planned activities, 41 were fully 
implemented,  16  partially  implemented  and  4  were  not  implemented,  while  the  financial 
implementation reached 86% of the target or EUR 1.28 billion in the period 2019-2023.  

In March 2024, the Competitiveness Council adopted an action plan on barriers for doing business. 
The  plan  identifies  11  key  barriers  and  37  actions,  classified  into  4  areas:  suppressing  the  grey 
economy; improving the business environment; improving the legislative framework and improving 
the efficiency of public administration.  

A first version of the register of state-owned enterprises (SOEs) was set up by the Ministry of Finance 
in  February  2024.  The  register  is  intended  to  collect  data  and  help  in  monitoring  and  reporting  on 
fiscal  risks  of  SOEs.  As  data  will  be  publicly  available,  it  should  also  improve  transparency  of 
information in the public domain.  

The  Law  on  Deadlines  for  Settlement  of  Financial  Obligations  (aligned  with  the  Directive  on 
combating late payment in commercial transactions) is expected to be adopted in Q4 2024.  

Chapter 25 - Science and research  

The EU provides significant support for research and innovation. All EU Member States, associated 
countries and third countries participate in the EU’s research and innovation programmes, and can 
benefit  from  them,  especially  where there  is  a scientific excellence  and  solid investment in  research 
and innovation. 

Concerning research and innovation policy, the implementation of the smart specialisation strategy 
has  delivered  on  expected  objectives.  In  March  2024,  Montenegro  adopted  a  roadmap  for  the  new 
smart specialisation strategy. 

Several projects, partially funded by the EU, helped strengthening the academia-business cooperation 
and raising the interest of young people as well as representatives of vulnerable groups to be involved, 
especially in new social entrepreneurship projects. 

The government adopted the Programme for Innovation 2023-2027, the Programme for encouraging 
innovation  in  the  function  of  energy  efficiency  in  industry,  and  the  Action  Plan  for  the 
implementation  of  the  operational  programme  for  the  Smart  Specialisation  Strategy  for  the  period 
2023/2024. 

In  January  2024  the  government  adopted  the  decision  on  forming  the  Council  of  Science  and 
Research Activities which held several sessions. In July 2024, the government adopted the Strategy of 

68 

 
 
Scientific  Research  Activity  of  Montenegro  2024-2028  along  with  the  Action  Plan  for  the  period 
2024-2025.  Concerning  the  funding  allocated  to  research  and  development  for  the  year  2024, 
approximately EUR 15 million has been allocated which represents an increase of 19% compared to 
the previous year. 

The Innovation Centre continues to provide grants and support to innovative start-ups and companies 
on a regular basis, while Tehnopolis keeps increasing its own technical capacities and opening new 
programmes for interested citizens and businesses. The Science and Technology Park of Montenegro 
opened on 11 June 2024 to further promote and support the scientific community and innovations in 
the country.  

22 national scientific research projects are being implemented based on the co-financing call of the 
Ministry of Education, Science and Innovation in 2023, with a total funding of EUR 2.3 million. 

Collaboration  with  the  European  Innovation  Council  remains  strong,  with  the  Innovation  Fund's 
collaborative grants programme being implemented based on the certification for integration into the 
European Innovation Council Accelerator's Plug-In scheme, received in 2023. In the 2024 European 
Innovation Scoreboard Montenegro is an Emerging Innovator with performance at 47.5% of the EU 
average. Its performance is slightly below the average of the Emerging Innovators. The performance 
gap with the EU has increased. 

Montenegro’s performance in the Horizon Europe programme dropped in 2023 to only four projects  
receiving total funding of EUR 0.9 million. 

Chapter 26 - Education and culture  

The  EU  supports  cooperation  in  education  and  culture  through  funding  programmes  and  the 
coordination of Member State policies through the ‘open method of coordination’. The EU and the 
Member States must also prevent discrimination and ensure quality education for children of migrant 
workers, including those from disadvantaged backgrounds. 

Education and training  

A working group is operational for the development of a 10-year comprehensive and costed education 
sector  strategy  (2025-2035).Montenegro  has  also  included  various  measures  relating  to  education 
sector reform in its Growth Plan Reform Agenda. 

Around  9%  of  the  state  budget  for  2024  is  dedicated  to  education,  science,  culture  and  sports.  The 
2024  public  budget  for  education  was  increased  by  approximately  20%  for  non-salary  items, 
including an almost eight times higher allocation for teachers professional development compared to 
2023.  

The  enrolment  in  preschool  education  (3-6  years  old)  went  up  to  78%  (EU  average  in  2022  was 
92.5%). Montenegro is working on the construction of new buildings, and reconstruction of existing 
buildings  in  order  to  increase  the  spatial  capacity.  The  number  of  Roma  children  in  preschool 
education increased by 11% and the coverage of the children with disabilities increased by less than 
1%. 

Regarding  international  assessments  of  secondary  education,  the  PISA  2022  results  published  end 
2023 show declining results for Montenegrin students in all areas (mathematics, reading and science). 
The  results  show  a  high  proportion  of  students  of  15-year-olds  failing  to  demonstrate  basic 
proficiency  (level  2)  in  reading  (53%),  in  maths  (60%)  and  in  science  (55%).  The  relative 
underperformance of Montenegrin students in reading is confirmed also by the findings of the latest 
Progress  in  International  Reading  Literacy  Study  (PIRLS  2021),  which  show  that  Montenegro’s 
performance in reading is below the international median. Montenegro is taking part in the ongoing 
Trends  in  International  Mathematics  and  Science  Study  (TIMSS  2023)  and  Teaching  and  Learning 
International Survey (TALIS 2024).  

Regarding  vocational  education  and  training  (VET),  the  Ministry  of  Education  continued  to  be 
committed to the Osnabruck Declaration and reforms to address skills mismatches. More focus should 
be  put  on  work-based  learning  at  both  VET  and  higher  education  levels.  On  1  August  2024  the 

69 

 
 
government  adopted  the  Action  plan  related  to  the  strategy  on  national  vocational  education  and 
training for 2020-2024. 

In April 2024, Parliament adopted the Law on amendments to the Law on  higher education, which 
will enable students to complete their studies under the same conditions that were valid at the time of 
their enrolment in the first year of the studies. In July 2024 the government adopted a new strategy for 
the development of higher education in Montenegro 2024-2027 with the action plan for 2024-2025. 
Montenegro is a member of the European Higher Education Area (Bologna process). 

As  for  inclusive  education,  the  number  of  Roma  children  in  primary  and  secondary  education 
dropped  by  4%  and  9%  respectively.  For  children  with  disabilities  the  number  continued  to  rise  in 
primary and secondary schools, by 6% and 9%, respectively. The low take-up is still evident in the 
north and overall more efforts are needed to provide accessible and quality education for vulnerable 
groups. The support of mediators to Roma and Egyptian children continued.  

In terms of gender balance, participation in education is relatively even between boys and girls up to 
and throughout secondary school level. Instead, at higher education level in 2023 38.2% of  graduates 
were boys and 61.8% were girls. 

Montenegro  remains  committed  to  progress  in  the  area  of  digital  education,  emphasising  the 
development  of  digital  competencies,  based  on  quality  standards  for  digital  content  creation  and 
aligning with the EU Digital Education Action Plan 2021-2027.  

There is  no specific strategy  focusing  on  green  skills  development.  However, the  issues of  climate 
change, green economy, environmental protection, sustainable cities and settlements, biodiversity, and 
health education are included under all school subjects.  

Some civil society organisations reported on politicisation of education,  especially in relation to the 
employment  of  teachers  and  professors,  and  the  selection  of  directors  and  heads  of  educational 
institutions.  Montenegro  should,  therefore,  take  measures  to  secure  an  effective  and  merit-based 
system of appointing and electing school staff and management.  

Montenegro benefits from the international dimension of the 2021–2027 Erasmus+ Programme. As 
part of the enhanced partnership with the region, Montenegro can apply for the European Universities 
Initiative  calls  and  one  Montenegrin  university  has  been  selected  as  a  partner  in  a  funded  alliance. 
Montenegro is not taking part to the European Education Area working groups 2021-2025. 

Youth 

The Youth Strategy 2023-2027, adopted in 2023, is under implementation. The Law on youth is under 
revision  to  address  some  key  issues  related  to  youth  policy  implementation.  Support  should  be 
provided for all youth centres and clubs to operate with and for adolescents and young people, with 
adequate  space  and  human  resources,  alongside  budget,  and  with  more  efforts  to  collaborate  with 
schools, school parliaments, municipalities and the private sector. The National Youth Council is not 
in place and inter-ministerial and cross-sectoral cooperation remains a challenge. 

Sport  

The draft Strategy for the Development of Sport for the period 2024-2028, along with the Action Plan 
2024-2025 was publicly consulted and is awaiting adoption by the government. 

Culture  

The National Cultural Development Programme 2023-2027 is being implemented and the procedures 
for the amendment of the new Laws on culture and in the field of cultural heritage are under revision. 
The revision is  linked to amendments to the Law on the protection of cultural properties, the Law on 
library field and the Law on museum field that need alignement with international standards. Despite 
a  temporary  suspension  from  the  MEDIA  strand  between  January  and  July  2024,  Montenegro 
continues  to  participate  fully  in  the  Creative  Europe  Programme.  Efforts  could  be  intensified  to 
implement protection measures for the preservation of Kotor's UNESCO World Heritage status. 

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Chapter 29 - Customs union  

All  Member  States  are  part  of  the  EU  customs  union  and  follow  the  same  customs  rules  and 
procedures.  This  requires  legislative  alignment  as  well  as  adequate  implementing  and  enforcement 
capacity and access to the common computerised customs systems. 

On  customs  legislation,  in  December  2023,  the  government  adopted  the  Customs  Tariff  for  2024, 
aligned with the Combined Nomenclature of the European Union for 2024. The Law on accession to 
the Convention on a common transit procedure is still not adopted.  

In October 2023, Montenegro aligned its secondary legislation on customs procedures and formalities 
in  relation  to  goods  with  reasonable  suspicion  of  infringing  intellectual  property  rights.  In  March 
2024, the government adopted secondary legislation on temporary export of cultural goods, antiques 
and  works  of  art.  Legislation  to  control  the  production  of  and  trade  in  drug  precursors  and 
psychotropic substances is not yet adopted.  

Concerning operational and administrative capacity, in December 2023, the government reversed 
the  merger  of  the  Customs  Administration  and  Tax  Administration,  accomplished  in  2021.  A  new 
personnel plan for the Customs Administration was  adopted in August 2024.  

Work  on  the  severely  delayed  implementation  of  the  New  Computerised  Transit  System  (NCTS) 
continued.  The  implementation  of  the  NCTS  at  national  level  was  delayed  again.  Several  projects 
funded  by  the  EU  and  its  Member  States  are  under  way  to  upgrade  various  customs  IT  systems  or 
build capacity in different areas of the customs service operation. 

Ten  operators  are  currently  licensed  in  the  Authorised  Economic  Operator  (AEO)  programme.  In 
October 2023, Montenegro submitted a formal request to the CEFTA Secretariat for validation of the 
AEO programme, which took place in June 2024. The validation mission concluded that Montenegro 
is fully compliant with CEFTA Additional Protocol 5 AEO standards.  

In  2023,  the  Customs  Administration  collected  EUR  2.54  billion,  22.5%  more  than  in  2022.  In  the 
first semester of 2024, revenue collection amounted to EUR 592,87 million, which is 7.15% higher 
than in the comparative period in 2023. 

The implementation of the cargo targeting system in the Port of Bar is in its trial phase. The initial 
results show that it has improved the risk analysis and enabled the exchange of electronic records of 
containers and ships entering and exiting the port. Once fully operational, the system should reinforce 
Custom’s capacity to enforce customs legislation at this critical border crossing point. 

In March 2024, the government established a coordination body for the stock inventory in the Free 
Zone  of  the  Port  of  Bar,  which  adopted  the  action  plan  for  the  destruction  of  seized  cigarettes. 
However, surveillance and control of all port operations, including on shipments of tobacco products, 
still remains an issue. In December 2023, the Revenue and Customs Administration seized cigarettes 
worth EUR 1.6 million without excise stamps in the free zone of the port.  

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

This cluster  covers:  transport (Chapter  14);  energy (Chapter  15);  trans-European  networks  (Chapter 
21); and environment and climate change (Chapter 27).  

Chapter 14 - Transport policy  

The EU has common rules on technical and safety standards, security, social standards, State aid and 
market liberalisation  in  road  transport,  railways,  inland  waterways,  multimodal  transport,  aviation 
and maritime transport. 

As regards general transport, there was no progress on the update of the national transport strategy 
(Transport  Development  Strategy  2019-2035)  to  align  it  with  the  European  Smart  and  Sustainable 
Mobility Strategy. Montenegro actively participates in the Transport Community work and structures, 
but progress on the implementation of the action plans endorsed by the organisation remains slow to 

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moderate.  

There  is  an  urgent  need  to  increase  the  number  and  the  level  of  expertise  of  staff  working  in 
regulatory  and  policy  implementation  functions  in  the  recently  divided  Ministries  of  Transport  and 
Maritime  Affairs.  The  inter-ministerial  coordination  of  transport  and  maritime  policies  needs  to  be 
ensured.  For  larger  transport  agglomerations,  sustainable  urban  mobility  plans  that  respect 
environmental and social standards should be developed, following EU practice.  

In the area of  road transport, Montenegro adopted its new, 2024-2030 road safety strategy in July 
2024 Good institutional governance with a shared responsibility amongst stakeholders is essential for 
its  full  implementation  and  swift  reduction  of  the  current,  high  number  of  fatalities  and  serious 
injuries.  A  new  mid-term  road  maintenance  and  rehabilitation  programme  is  not  yet  adopted  and 
Montenegro  continues  to  rely  on  annual  planning.  The  implementation  of  the  Intelligent  Transport 
Systems programme 2022 – 2026 for national roads is lagging behind schedule and the allocation of 
capacities and resources remains unclear. Further efforts are needed to fully align with the EU acquis 
on social and market rules in road transport. 

On rail transport legislation, there was no progress on alignment with the EU acquis. In December 
2023,  the  government  agreed  on  remedy  measures  to  address  a  number  of  systematic  and 
sustainability  issues  in  the  railways  sector.  One  of  the  actions  is  a  merger  of  the  railway  transport 
company with the rolling-stock maintenance company, to avoid the imminent insolvency of the latter. 
In  a  first  step,  in  May  2024,  the  government  purchased  shares  of  minority  stakeholders  in  both 
companies, becoming their sole owner.  

In the area of maritime transport, full implementation of the Vessels Traffic and Monitoring System 
(second phase) was delayed, which complicates the enforcement of maritime safety polices in Boka 
Kotorska Bay. National maritime Single Window was launched in August 2024.  

In the area of inland waterway transport, there were no developments.  

As  regards  aviation,  Montenegro  achieved  a  good  level  of  alignment  with  the  EU  acquis.  Before 
transition  to  the  second  phase  of  the  European  Common  Aviation  Area  Agreement  (ECAA)  is 
possible, competition and State aid requirements need to be fulfilled. In April 2024, the government 
decided  to  continue  with  the  second  stage  of  the  tender  procedure  for  airports  concession,  with 
advisory support of the International Finance Corporation.  

There  were  no  relevant  developments  on  multimodal  transport,  neither  on  passenger  rights. 
Montenegro is encouraged to improve them for all modes of transport. 

Chapter 15 - Energy  

EU  energy  policy  covers  energy  supply,  infrastructure,  the  internal  energy  market,  consumers, 
renewable  energy,  energy  efficiency,  nuclear  energy  and  nuclear  safety,  radiation  protection  and 
nuclear safeguards.  

The  heavily  delayed  work  on  the  National  Energy  and  Climate  Plan,  a  strategic  document  for  the 
development of the energy sector until 2030, is still ongoing. The document is yet to be submitted for 
opinion to the Energy Community Secretariat.  

In the area of security of supply, another long-delayed document, the Law on security of supply of 
petroleum products was sent to Parliament, but is yet to be adopted. 

The construction of the electricity interconnection with Serbia, a crucial section for the completion of 
the trans-Balkan electricity transmission network, did not start yet. The connection to the state border 
with Serbia (from Pljevlja) is planned for completion by 2028. Another section in Montenegro (Lastva 
– Pljevlja) is still not finished due to property issues and environmental concerns. 

Concerning  the  internal  energy  market,  Montenegro  is  delayed  in  the  alignment  with  and 
implementation of the Electricity Integration Package, which is a precondition for market integration. 
The  day-ahead  market  registered  26  participants;  the launch  of  the  intraday market  is  still  pending. 
The designation of the Nominated Electricity Market Operator in May 2024 paves the way for energy 

72 

 
 
market coupling with neighbouring countries. The national energy regulatory authority’s (REAGEN) 
institutional independence should be enhanced by aligning its staff regulations with those applicable 
to other independent bodies.   

In  the  area  of  hydrocarbons,  Parliament  is  yet  to  adopt  the  Law  on  safety  measures  in  offshore 
exploration and production of hydrocarbons. The construction of Montenegro’s section of the Ionian-
Adriatic Gas Pipeline (IAP) did not progress as a consensus on the preferred alignment is yet to be 
achieved.  

On  renewable  energy,  in  August  2024,  Parliament  adopted  the  Law  on  the  use  of  energy  from 
renewable  sources.  However,  the  adoption  of  secondary  legislation  is  still  needed  for  the  practical 
implementation. The registry of Guarantees of Origins is operational since July 2024. The government 
of  Montenegro,  together  with  the  Electrical  Power  Company  of  Montenegro  (EPCG),  implemented 
two  programmes  of  installing  solar  panels  in  households,  leading  to  the  installation  of  29.3 MW  in 
3 200 households by the end of 2023. It remains essential that all new renewable energy projects are 
developed in conformity with the acquis on concessions, State aid and the environment. 

In the area of energy efficiency, a localised support to the Pljevlja coal region was achieved with the 
support  of  international  partners.  The  implementation  of  2023  Energy  Support  package  funds 
earmarked  for  energy  efficiency  (EUR  13  million)  started  in  July  2024,  focusing  on  households, 
tourism sector and energy efficiency innovation projects. The application of new rules for minimum 
energy performance requirements and certification of buildings started in July 2024. However, further 
alignment with the Energy Performance of Buildings Directive needs to be accelerated. 

Regarding  nuclear  energy,  nuclear  safety  and  radiation  protection,  Law  on  Ionising  Radiation 
Protection, Radiation and Nuclear Safety and Security was adopted in May 2024, aligning the legal 
framework with numerous EU legal acts. However, the implementation will start in July 2027.  

Chapter 21 - Trans-European networks  

The  EU  promotes  trans-European  networks  in  transport,  telecommunications  and  energy  to 
strengthen the internal market and contribute to growth and employment. 

In  the  area  of  transport  networks,  the  revised  TEN-T  regulation    is  setting  up  a  new  Western 
Balkans-Eastern Mediterranean European Transport Corridor, which includes Montenegro. 

In  the  area  of  transport-infrastructure  development,  the  TEN-T  rail  corridor  Bar-Vrbnica  faced 
significant  delay,  due  to  limited  absorption  and  management  capacity  of  the  responsible 
administrative bodies.  

On road network, the EU-financed update to the Bar-Boljare highway’s feasibility study and detailed 
design of the next section of the highway (Matesevo – Andrijevica) started in September 2023, with 
significant  delays.  However,  in  January  2024,  Montenegro  decided  to  fast-track  the  construction  of 
this  section  under  a  design  and  built  works  contract.  Partial  funding  should  come  from  the  state 
budget, with co-financing from the EBRD and the EU (EUR 200 million). The prequalification tender 
procedure started in April 2024, following EBRD procurement policies and rules.  

In March 2024, Montenegro ratified an agreement with Bosnia and Herzegovina for the construction 
of  a  cross-border  bridge  over  the  Tara  river  on  the  TEN-T  comprehensive  Route  2b.  A  number  of 
recently  announced  road  development  projects,  such  as  a  new  inland  route  for  the  Adriatic-Ionian 
Highway, in addition to the previously planned coastal route expressway, depart significantly from the 
plans  agreed  under  TEN-T  network  and the  country’s  Transport  Community  commitments,  making 
EU-funded  feasibility  and  design  studies  obsolete  and  potentially  undermining  the  progress  of 
Montenegro under this chapter.  

In the area of energy networks, work continued slowly on the electricity interconnection between the 
systems  of  Serbia,  Bosnia  and  Herzegovina,  Italy  and  Montenegro.  There  was  no  progress  on  the 
Ionian-Adriatic Gas Pipeline (IAP) project.  

Overall,  infrastructure  investments  need to  comply  fully  with  EU  standards  on  public  procurement, 
State aid and environmental impact assessment. New investment needs to address changing strategic 

73 

 
 
priorities,  decarbonisation,  digitalisation  and  resilience  of  transport  and  energy  networks,  including 
prior cost-benefit analyses carried out in line with EU best practice.  

Montenegro did not engage with the European Commission on the latest investment planning projects 
until 2030, except for the Bar-Boljare corridor. The country is yet to align its legislation with the EU 
acquis on TEN-T and TEN-E, including the recent revisions. 

Chapter 27 - Environment and climate change  

The EU promotes strong climate action, sustainable development and protection of the environment. 
EU  rules  contain  provisions  addressing  climate  change,  water  and  air  quality,  waste  management, 
nature protection, industrial pollution, chemicals, noise and civil protection. 

In November 2023, the government adopted the fifth semi-annual report on the implementation of the 
action  plan  for  fulfilling  the  closing  benchmarks  in  Chapter  27. The  report  showed  that  out  of  116 
planned activities only nine were implemented (8%).  

In  the  fields  of  environment  and  climate  change,  Montenegro  needs  to  significantly  strengthen  the 
administrative capacities at central and local level by urgently addressing staff shortages and hiring 
personnel,  address  the  issue  of  insufficient  inspection  services  at  both  levels,  and  address  the 
insufficient interinstitutional coordination and the lack of sustainable financial framework. The lack of 
administrative  capacities  significantly  hinders  the  progress  in  Chapter  27  and  fulfilling  its  closing 
benchmarks.  Montenegro  should  ensure  that  there  is  an  institutional  structure  in  place  to  deliver 
coordinated,  strategic  planning  for  environmental  and  climate  investments,  including  the  quality  of 
the preparation and implementation of investments. 

Environment 

As  regards  horizontal  legislation,  Montenegro  completed  one  Strategic  Environmental  Assessment 
and  73  Environmental  Impact  Assessments.    Montenegro  is  encouraged  to  increase  synergies, 
coordination between Strategic Environment Assessments and Environmental Impact Assessments to 
make  better  use  of  such  documents  in  its  planning  and  implementation.  Montenegro  should  also 
ensure  that  environmental  monitoring  meets  EU  standards  and  that  all  infrastructure  investments 
comply with the EU environmental and climate acquis and ensure public participation. 

On air quality, Montenegro did not make progress and the adoption of the Air Quality Management 
Strategy was once again postponed.  

In April 2024, Parliament adopted the Law on  waste management. Efforts should now be directed 
towards  its  implementation  and  the  adoption  of  the  long-awaited  state  waste  management  plan  for 
2024-2029. When  it  comes  to single-use  plastic  products,  Montenegro  announced  that  a ban on the 
use  of  plastic  bags  with  a  wall  thickness  of  5  to  15  microns  will  be  applied  as  of  October  2024 
whereas the use of light plastic bags with a wall thickness of less than 5 microns will be allowed with 
the  introduction  of  an  environmental  tax.  As  part  of  the  implementation  of  the  new  law  on  waste 
management,  it  was  planned  that  from  July  2024,  consumers  of  all  plastic  bags,  except  for 
biodegradable ones, will be obliged to pay an environmental fee. Cooperation of local authorities and 
municipalities  on  waste  management  is  paramount.  Infrastructure  for  separate  waste  collection  and 
recycling  exists,  but  it  is  however    not  used  properly  by  citizens,  and  the  issue  of  illegal  and 
temporary waste disposal has yet to be resolved. Educational campaigns including in school curricula 
and media for awareness raising and proper enforcement rules, targeting citizens including children 
and local authorities, about separating waste disposal and recycling, are needed.  

Concerning  water  quality,  in  February  2024,  the  government  adopted  the  2024  programme  for 
monitoring surface and ground water. In December 2023, the Water Administration presented a new 
water  information  system  (VIS),  a  unique  database  on  surface  and  underground  water,  providing  a 
solid basis for the sustainable management of water resources. This should enable the establishment 
of  a  cadastre  of  water  polluters.  Four  new  inspectors  were  recruited.  Montenegro  should  adopt  a 
sewage  sludge  management  plan  that  would  define  the  matter  and  handling  and  treatment  of 
generated sewage sludge at both the state and local self-government levels.  

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Work is still ongoing on the draft law on nature protection and the National Strategy for biodiversity 
and its action plan is still pending. Work on Natura 2000 network continued and about 60% of habitat 
territory is mapped – that work should further continue to identify and pre-designate all the sites that 
will be covered by the Natura 2000 network. Montenegro still needs to address the recommendations 
of  the  Bern  Convention  related  to  Skadar  lake.  The  management  issue  in  Ulcinj  Salina  is  not  yet 
resolved and the management plan  is still pending; more active involvement from both central and 
local  level  including  the  municipality,  is  needed  to  address  these  issues  and  to  ensure  that  Ulcinj 
Salina remains ecologically sustainable. Montenegro should find an adequate solution for the military 
training polygon at Sinjajevina Natural Park. 

Concerning  industrial  pollution  and  risk  management,  the  Agency  for  Environmental  protection 
issued one new integrated permit and reissued another one, and two more permits were revised. The 
ecological  reconstruction  for  the  Pljevlja  coal  power  plant  will  not  address  the  core  issues  and 
Montenegro needs to step up efforts to permanently close the plant to meet EU emission standards. 
the Agency for Environmental protection issued one new integrated permit and re-issued another one, 
and two more permits were revised. 

On  chemicals,  in  January  2024,  the  government  adopted  amendments  to  the  Law  on  biocidal 
products. In line with the Law on chemicals, a number of implementing acts were adopted. Work is 
also ongoing on amending the Law on flammable liquids and gases.  

In  December  2023,  Montenegro  adopted  the  rulebook  on  the  methods  of  calculations  and 
measurement of noise in the environment. The revision of strategic noise maps started for Podgorica. 
No public awareness raising campaigns were held on noise protection.  

Significant  progress  was  made  in  the  area  of  civil  protection.  In  February  2024,  Montenegro’s 
Rescue  and  Protection  Directorate’s  Operational  Center  (OKC  112)  successfully  completed  its 
connection  to  the  Common  Emergency  Communication  and  Information  System  (CECIS)  network 
thus  strengthening  the  operational  capacity  of  Montenegro  and  coordination  with  the  Union’s  Civil 
Protection Mechanism.  

Climate change 

There  were  no    developments  on  climate  change  nor  on  legislative  alignment  with  the  acquis  on 
climate.  Montenegro  needs  to  step  up  its  efforts  to  implement  commitments  under  the  Energy 
Community’s  Decarbonisation  Roadmap,  particularly to finalise  and  adopt  the  National  Energy  and 
Climate Change Plan (NECP) in line with the 2050 climate neutrality target.  

 Montenegro  is  urged  to  fully  implement  the  Monitoring,  Reporting,  Verification  and Accreditation 
(MRVA) of greenhouse gas emissions by December 2025 as well as take decisive steps for improving 
its current and/or establishing new  carbon pricing mechanisms, to facilitate a future alignment with 
the EU Emission Trading Scheme.  

Montenegro is working on developing a low  emissions development strategy. Montenegro is also 
set to adopt its draft Law on the protection from negative impacts of climate change and ozone layer 
protection  to  align  with  EU  acquis  on  Ozone  Depleting  substances.  The  country  should  set  a  coal 
phase  out  date  and  prepare  and  submit  new  National  Determined  Contribution  under  the  Paris 
Agreement. Consideration ought to be given to aligning with major upgrades of the EU climate policy 
as a result of the Fit for 55 package. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION  

This  cluster  covers:  agriculture  and  rural  development  (Chapter  11);  food  safety,  veterinary  and 
phytosanitary  policy  (Chapter  12);  fisheries  and  aquaculture  (Chapter  13);  regional  policy  and 
coordination of structural instruments (Chapter 22); and financial and budgetary provisions (Chapter 
33). 

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Chapter 11 - Agriculture and rural development 

The EU’s common agricultural policy supports farmers and ensures Europe’s food security. It helps 
tackle climate change and the sustainable management of national resources; maintains rural areas 
and landscapes across the EU; and keeps the rural economy alive by promoting jobs in farming, agri-
food industries and associated sectors. This requires strong management and control systems. There 
are also common EU rules for marketing standards, quality policy and organic farming.  

On horizontal issues, legislative alignment with EU acquis on agriculture and rural development still 
needs to see progress. Montenegro has prepared the first draft of an Implementation plan to set up the 
paying  agency  and  the  integrated  administration  and  control  system  (IACS)  as  per  the  two  closing 
benchmarks in Chapter 11. 

Work is ongoing on the register of agricultural holdings. There was progress in establishing IACS by 
significantly  increasing  the  land  area    encoded  in  the  land  parcel  identification  system  (LPIS).  The 
rolling  out  of  LPIS  across  the  whole  territory  should  be    accelerated  to  advance  on  the  closing 
benchmark  in this  chapter.  Preparations  are  still ongoing  to  secure  new  orthophotographs to  update 
the  system.  The  development  of    the  farm  accountancy  data  network  (FADN),  its  extension  to 
environmental  and  social  data  il  line  with  the  EU  acquis,  and  the  strengthening  of  farm  advisory 
services should be accelerated.  

As  regards  the  common  market  organisation  (CMO),  Montenegro  needs  to  step  up  the 
implementation of activities under the action plan on EU acquis alignment. Legislation on oenological 
practices in the wine sector aligning with the EU acquis was adopted in October 2024. The Law on 
wine will continue to be further updated in line with EU acquis developments. Work on developing an 
electronic vineyard register should be finalised in 2024.  

The  amendments  to  the  Law  on  olive  growing  and  olive  oil,  laying  down  clearer  rules  for  the 
production  and  placing  on  the  market  of  olive  oil  and    on  control  provisions  are  still  pending 
Parliamentary adoption.  

In  the  area  of  rural  development,  Montenegro received  a  conditional  roll  over  entrustment  for  the 
IPARD  III  programme,  followed  by  the  opening  of  four  calls  for  applications  under  the  new 
programme covering  four  measures. This is a significant development.  Spending under the IPARD 
II has  improved in the past year, and with 2024 the last year of implementation of the programme  
Montenegro is   strongly encouraged  to  put further efforts into ensuring full absorption  of  the funds 
this year. Montenegro continued to strengthen the administrative capacity of the IPARD Agency by 
hiring additional staff. Work on setting up the IPARD Agency’s regional offices needs to continue.  

As  regards  quality  policy,  the  recommendations  of  the  2019  EU  peer  review  mission  still  require 
follow-up, including activities to strengthen the control system. 

For  organic farming  legislation on organic production further aligning with the EU  acquis is still 
pending. 

Chapter 12 - Food safety, veterinary and phytosanitary policy  

The EU food acquis including hygiene rules for foodstuff production ensure a high level of food and 
feed safety and a high level of protection of consumers’ interests. Animal health and welfare and the 
safety  of  food  of  animal  origin  are  safeguarded  together  with  quality  of  seeds,  plant  protection 
material, protection against harmful organisms and animal nutrition.  

There was a small reduction in inspection capacities in  the  sectors of food safety and veterinary due 
to retiring of staff but tenders have been launched for the employment of eight new personnel, which 
should help reverse this trend.  Adequate training should be provided to officials including developing 
measures to avoid conflict of interest of the authorised veterinarians carrying out official duties which 
is a basic principle of the Official Controls Regulation. 

In the area of  general food safety, the 2023 programme for food and feed safety quality measures, 
including  the  monitoring  programme  for  residues  in  animals  and  products  of  animal  origin  was 
implemented and the 2024 programme was prepared.  

76 

 
 
 As  regards  veterinary  policy  and  animal  welfare.  Montenegro  adopted  further  implementing 
legislation to align with the EU acquis. The first programme for monitoring zoonoses, zoonotic agents 
and  their  antimicrobial  resistance  (AMR)  was  implemented.  The  2023  programme  of  mandatory 
animal health protection measures was implemented and the 2024 programme prepared. The disease 
surveillance programmes were implemented. In January 2024, the presence of the African swine fever 
virus was confirmed in Montenegro and measures to reduce the risk of spread of the disease as well as 
awareness  raising  campaigns  were  implemented.  In  March  2024,  the  government  adopted  a  crisis 
management plan. 

Measures were in place to prevent, detect and control avian influenza and there were no new cases. 
However,  efforts  are  still  necessary  to  further  strengthen  the  surveillance  programme  for  notifiable 
avian diseases.  

The last EU-financed vaccination campaign against rabies was successfully implemented in autumn 
2023.  As  necessary,  Montenegro  should  continue  the  campaign  autonomously.  A  robust  passive 
surveillance system of the disease remains to be established. There was no progress in implementing a 
dog population control programme. Local governments awareness on the importance of establishing 
such controls remains low and further work in this area is necessary.  

In the area of placing food, feed and animal by-products on the market, the implementation of the 
national programme for the upgrading of food establishments dealing with the food of animal origin 
continued.  According  to  Montenegrin  authorities,  a  total  of  75  establishments  have  now  been 
upgraded  and  classified  as  Category  I  – i.e. compliant  with  EU  requirements.    The  total  number  of 
establishments dealing with food of animal origin regarded as compliant with EU requirements at the 
moment is 128. 

The  implementation  of  activities  linked  to  the  management  of  animal  by-products  not  intended  for 
human consumption progressed slowly due to problems with the location of the facility for processing 
animal  by-products.    A  new  location  was  found  in  the  Municipality  of  Niksic  and  the  government  
approved  in  April  2024  the  information  regarding  the  change  in  location  and  construction  of  the 
facility  The  5-year  Management  Plan  for  animal  by-products  not  intended  for  human  consumption 
expired in 2023 and a new one is yet to be prepared. 

The  national  programme  for  improving  raw  milk  quality  and  handling  non-compliant  milk  was 
implemented  leading  to  an  increase  in  the  percentage  of  raw  milk  that  meets  EU  requirements. 
Measures to improve hygiene in all stages of milk productions have to be developed. 

In  the  area  of  food  safety  rules  and  specific  rules  for  feed,  Montenegro  implemented  the  2023 
programme of food and feed safety measures and adopted the 2024 programme.  

On  phytosanitary  policy,  further  pieces  of  implementing  legislation  were  adopted.  The  2023 
programme  of  phytosanitary  measures  was  implemented,  including  the  programme  of  control  of 
production of seed and propagating material and plant genetic resources and the programme for 2024 
was prepared. It is important to strengthen actions in the field, and especially with regard to surveys, 
early detection and eradication of pests. The programme for monitoring pesticide residues in food of 
plant and animal origin for 2023 was implemented and the results were reported to the European Food 
Safety Agency. Implementation of the 2021-2026 national plan for sustainable use of pesticides was 
carried out and awareness was raised. 

 In  the  area  of  genetically  modified  organisms  (GMOs),  the  programme  of  control  testing  of  seed 
and planting material for GMOs for 2024 was adopted.   

Chapter 13 - Fisheries and aquaculture 

The  common  fisheries  policy lays  down  rules  on  fisheries  management, protects  living resources of 
the sea and limits the environmental impact of fisheries. This includes setting catch quotas, managing 
fleet  capacity,  rules  on  control  and  inspection,  rules  on  markets  and  aquaculture  and  support  for 
fisheries and coastal communities. Further, it promotes a sustainable aquaculture. 

77 

 
 
In March 2024, Montenegro adopted a new fisheries and aquaculture strategy 2024-2029 and action 
plan.  In  April  2024,  the  Law  on  ratification  of  the  Protocol  on  Amendments  to  the  Marrakesh 
Agreement  on  the  Establishment  of  the  World  Trade  Organization  -  agreement  on  subsidies  in 
fisheries was adopted. The Law on market organisation in fisheries and aquaculture was adopted by 
the  Parliament  in  August  2024.  There  were  no  significant  developments  concerning  structural 
actions, or State aid. The Law on structural measures and State aid in fisheries and aquaculture has 
been  pending  adoption  by  Parliament  since  2019  and  work  is  ongoing  on  its  update.  Work  is  also 
ongoing on the draft Law on Marine Fisheries and Mariculture.   

The  administrative  capacities  of  the  Directorate  for  fisheries  were  strengthened  by  employing  an 
additional adviser for the market organisation of fishery and aquaculture products.  

As  regards  resource  and  fleet  management,  the  2023  annual  data  collection  programme  on 
Montenegrin  fisheries,  for  both  commercial  catches  and  biological  data,  was  implemented.  The 
management plan for the fishing gear bottom trawls, purse seines and beach seines, aligned with the 
recommendations of the General Fisheries Commission for the Mediterranean (GFCM), was adopted 
in  October  2023.  .  Efforts  were  undertaken  to  modernise  the  fishing  fleet  and  introduce  and  apply 
measures  of  sustainable,  profitable  and  efficient  fishing,  increase  market  competitiveness  and  meet 
EU  food  safety  standards and maritime  regulation.  Eight  contracts  were  signed with  fishermen  as  a 
result  of  the  second  call  for  grant  support  for  investments  in  fishing  vessels,  including  fishing 
equipment and  electronic devices (MIDAS  2  project).  The value  of  the  grant  support  was  EUR  1.2 
million (70% of the investment).  

Regarding  inspections  and  control,  work  is  ongoing  to  further  update  and  upgrade  the  Fisheries 
Information  System  (FIS).  The  equipping  of  10  landing  places  with  devices  for  measuring  and 
registering catches is underway.  

There were no developments in the dialogue with Albania to harmonise the management of the joint 
European eel resources and on control of illegal, unreported and unregulated (IUU) fishing. There was 
no increase in the number of fisheries inspectors. However, the capacity strengthening of the current 
inspectors  continued  through  participation  in  field  training  conducted  by  the  European  Fisheries 
Control  Agency  (EFCA),  as  well  as  training  aimed  at  familiarisation  with  CFP  legislation  and  its 
application.  

Concerning  international  fora,  Montenegro  initiated  the  process  to  ratify  the  agreement  for  full 
membership  of  International  Commission  for  the  Conservation  of  Atlantic  Tunas  (ICCAT).    The 
implementation  of  the  European  Strategy  for  the  Adriatic-Ionian  Region  and  collaboration  with the 
GFCM continued.   

Chapter 22 - Regional policy and coordination of structural instruments  

Regional policy is the EU’s main tool for reducing regional disparities and investing in sustainable 
and  inclusive  socio-economic  growth.  It  is  operating  through  ‘shared  management’  between  the 
Commission  and  EU  Member  States.  The  implementation  of  cohesion  policy  programmes  requires 
appropriate administrative capacity on programme and project level, the establishment of systems of 
sound financial management and control and also the fulfilment of other EU acquis elements such as 
environmental or public procurement legislation. 

Regarding the legislative framework, as part of the updated action plan for chapter 22,the adoption 
of  the  Law  on  European  Structural  and  Investment  Funds,  which  lays  down  the  institutional 
framework  for  the  management  of  investment  funds  and  future  European  structural  funds,  is 
envisaged for 2026. 

Concerning the institutional framework, the entrustment of budget implementation for managing the 
IPA 2021 annual programme indirect management parts was approved in April 2024. The process for 
requesting  entrustment  for  the  management  of  IPA  III  operational  programmes  has  advanced  but 
needs  to  be  finalised  as  per  agreed  timelines.  The  Working  Group  for  Chapter  22  met  twice  and 
engaged into a multi-stakeholders consultation for updating the Chapter 22 Action Plan with a focus 
on closing benchmarks. 

78 

 
 
The administrative capacity remains a crucial area for reform. The government resumed a retention 
policy within the public administration. A number of temporary contracts were turned into permanent 
positions.  A  competency-based  training  needs  analysis  was  commissioned  with  the  aim  to  prepare 
recommendations  on  capacity  development  for  IPA  structures  and  the  government  engaged  into  a 
functional review in selected policy areas relevant to regional policy. Funds were set aside throughout 
IPA  financial  support  to  target  the  preparation  and  implementation  of  a  merit-based  recruitment 
policy.  

In the area of programming, monitoring and evaluation, the country completed the design of two 
IPA  III  multi-annual  operational  programmes  (2024-2027)  and  deployed  international  expertise  to 
strengthen  its  capacities.  Inter-ministerial  coordination  and  structured  dialogue  with  social  partners 
and  civil  society  need  to  be  strengthened.  Montenegro  continues  to  participate  in  the  Interreg 
cooperation programmes, the EU Strategy for the Adriatic and Ionian Region and the EU Strategy for 
the Danube Region. 

On  financial  management,  control  and  audit,  the  government  engaged  into  a  process  of 
strengthening its capacities and of assurance mechanisms for the management of the IPA II and IPA 
III  programmes.  The  National  Authorising  Officer  approved  improved  reporting  templates  and  an 
updated manual of procedures in December 2023. 

Chapter 33 - Financial and budgetary provisions  

This  chapter  covers  the  rules  governing  the  funding  of  the  EU  budget  (‘own  resources’).  These 
resources  mainly  consist  of:  (i)  contributions  based  on  the  gross  national  income  of  each  Member 
State; (ii) customs duties; (iii) the non-recycled plastic resource; and (iv) a resource based on value-
added  tax.  Member  States  must  have  the  appropriate  administrative  capacity  to  adequately 
coordinate and ensure the correct calculation, collection, payment and control of own resources.  

There  was  some  progress  in  the  underlying  policy  areas  indirectly  affecting  the  own-resources 
system  (for  progress  in  these  areas,  see  chapters  16:  Taxation,  18:  Statistics,  27:  Environment  and 
climate change; 29: Customs union, and 32: Financial control).  

On  traditional  own  resources,  the  government  adopted  implementing  legislation  on  the  procedure 
for planning the resources that Montenegro pays to the EU budget in July 2023. In October 2023, the 
Ministry  of  Finance  adopted  the  Guidelines  for  Planning  the  European  Union’s  Own  Resources  in 
Montenegro  which  set  the  obligations,  procedures,  responsible  institutions,  overview  of  current  EU 
regulations  and  reporting  forms  to  the  European  Commission.  In  August  2023,  the  government 
adopted the final report on the implementation of the action plan for establishing a system of the EU’s 
own resources in Montenegro.  

As  regards  VAT-based  resources,  the  Statistical  Office  has  calculated  the  average  weighted  VAT 
rate. 

In  the  area  of  gross  national  income-based  resources,  Montenegro’s  GDP  is  calculated  using  the 
European system of national and regional accounts 2010 methodology, while the informal economy is 
calculated in accordance with the OECD and Eurostat manuals. 

As regards administrative infrastructure, the Directorate for Coordination and Management of EU 
Own Resources in the Ministry of Finance continued to improve its capacity, focusing on planning, 
coordination, calculation and administrative conditions of own resources. 

CLUSTER 6: EXTERNAL RELATIONS  

There  are  two  chapters  in  this  cluster:  external  relations  (Chapter  30)  and  foreign,  security  and 
defence policy (Chapter 31). 

Chapter 30 - External relations 

79 

 
 
 
The  EU  has  a  common  commercial  policy  towards  non-EU  countries,  based  on  multilateral  and 
bilateral agreements and autonomous measures. There are also EU rules in the field of humanitarian 
aid and development policy. 

As regards the  common commercial policy, Montenegro continued to coordinate its positions with 
those of the EU, including in the World Trade Organization.  

Montenegro  continued  to  actively  participate  in  Central  European  Free  Trade  Agreement  (CEFTA) 
working  groups,  including  in  the  negotiations  on  CEFTA  Additional  Protocol  7  on  trade  dispute 
settlement.  In  December  2023,  the  Parliament  ratified  the  Agreement  on  the  recognition  of 
professional qualification of the general care nurses, doctors of veterinary medicine, pharmacists and 
midwives under CEFTA. The agreement is yet to enter into force for Montenegro. 

In  December  2023,  the  Parliament  also  ratified  three  agreements  of  the  Common  Regional  Market 
concerning freedom of movement based on identity cards, recognition of professional qualifications 
for  regulated  professions  (medical  doctors,  dentists  and  architects),  and  recognition  of  academic 
qualifications. These agreements entered into force in February 2024.  

Given  that  the  country’s  Trade  Facilitation  Strategy  expired  in  2022  and  has  not  been  replaced  by 
another  trade  facilitation  programme,  in  March  2024  the  government  invited  all  interested 
stakeholders to participate in the preparation of a new proposal. 

On dual-use goods, Montenegro’s application for membership in the Australia Group is now in the 
scrutiny phase. The application process to join the Wassenaar Arrangement is still ongoing.  

In  accordance  with  a  new  draft  Law  on  Montenegro’s  Development  Bank,  this  newly  established 
entity  should  become  the  export  credit  insurer  against  non-market  risks  for  the  Montenegrin 
companies.   

Regarding  bilateral  trade  agreements,  negotiations  with  Ukraine  to  amend  the  Free  Trade 
Agreement concerning rules of origin and methods of administrative cooperation are ongoing. Given 
that the ratification procedure for the Agreement on Economic Cooperation with South Korea was not 
finalised in 2023 under the previous term of Parliament, the procedure needs to restart. There were no 
relevant  developments  in  negotiations  for  an  Agreement  on  Trade,  Partnership  and  Cooperation 
between Montenegro and the United Kingdom of Great Britain and Northern Ireland. 

In the area of development policy and humanitarian aid, in April 2024, Parliament adopted the Law 
on international development cooperation and international humanitarian assistance. The law updates 
the country’s legal and institutional framework by setting up a decentralised system in these areas. A 
database on donor support projects, to be set under the new law, remains to be developed. 

Chapter 31 - Foreign, security and defence policy 

Member States must be able to conduct political dialogue under the EU foreign, security and defence 
policy, align with EU statements, take part in EU actions, and apply agreed sanctions and restrictive 
measures. 

The  political  dialogue  between  the  EU  and  Montenegro  on  foreign  and  security  policy  issues 
continued.  In  February  2024  Montenegro  participated  in  the  tenth  EU-Western  Balkans  meeting  of 
Political Directors on CFSP. In June 2024 Montenegro participated in a working lunch with members 
of the Foreign Affairs Council.  

The  institutional  framework  enabling  Montenegro’s  participation  in  the  EU  CFSP  and  CSDP  is  in 
place.  On  common  foreign  and  security  policy  (CFSP),  Montenegro  continued  its  100%  CFSP 
alignment with statements by the High Representative on behalf of the European Union and Council 
decisions  on  sanctions.  This  included  all  EU  sanction  packages  against  Russia  and  Belarus. 
Montenegro  also  aligned  with  the  EU  position  in  UNGA  when  voting  on  resolutions  regarding 
Russia’s war of aggression against Ukraine and its humanitarian impact and on initiatives in the UN 
Human Rights Council with regard to the human rights situation in China, Iran and Gaza. Montenegro 
participated in the Summit on Peace in Ukraine hosted by Switzerland. 

80 

 
 
On  restrictive  measures  implementation,  the  Ministry  of  Foreign  Affairs  drafted  a  new  law  on 
restrictive measures to improve the national legal framework in line with European Commission and 
FATF recommendations.  

Montenegro  continued  cooperating  with  international  organisations  (UN,  OSCE  and  Council  of 
Europe) and remained an active member of NATO. Montenegro  needs to update the national action 
plan on implementation of Women, Peace and Security.  

In  September  2024  Montenegro  has  notified  the  United  States  of  its  wish  to  bring  to  an  end  the 
bilateral  immunity  agreement  with  the  United  States,  granting  US  citizens  exemptions  from  the 
jurisdiction of the International Criminal Court. This brings Montenegro to alignment with the EU 
common positions on the integrity of the Rome Statute or with the related EU guiding principles on 
bilateral immunity agreements. 

Concerning  conflict  prevention,  during  the  reporting  period,  Montenegro  met  all  obligations  in 
accordance with the OSCE Conflict Prevention Centre Implementation Calendar in the area of arms 
control. 

Regarding  non-proliferation,  Montenegro  remained  actively  engaged  in  the  implementation  of  the 
Western  Balkans  Small  Arms  and  Light  Weapons  (SALW)  Roadmap  and  implemented  its  2019-
2025  strategy  and  action  plan  for  combating  illegal  possession,  misuse,  and  trafficking  of  SALW. 
While Montenegro is not yet a participating state to any of the multilateral export control regimes, a  
meeting  with  Australia  Group  took  place  in  January  2024  for  Montenegro  to  update  on  its  export 
control  processes.  Montenegro  implements  the  2023-2028  Roadmap  for  the  prevention,  detection, 
suppression  and  protection  against  chemical,  biological,  radiological  and  nuclear  threats  and  risks 
(CBRN), prevention and suppression of the proliferation of weapons of mass destruction and means 
of their delivery and preventing them from falling into the hands of non-state actors. Alignment with 
the EU Common Position 2008/944 on arms export control is advanced, with further work required on 
inter-state exchange of information. Montenegro is a signatory state to the Arms Trade Treaty since 
2013 and should ratify and domesticate the Treaty as soon as possible. 

In  terms  of  security  measures,  Montenegro  continued  to  implement  its  agreement  on  security  of 
information with the EU on procedures regarding exchange of classified information.  

As  regards  common  security  and  defence  policy  (CSDP),  Montenegro  continues  to  participate  in 
EU crisis management missions and operations under the CSDP, currently in the EU NAVFOR 
ATALANTA. In September 2023, Montenegro submitted an official request to contribute to the EU 
Military Assistance Mission in support of Ukraine (EUMAM Ukraine) in cooperation with the Armed 
Forces of Slovenia. Montenegro contributes to regional cooperation in military medicine through the 
Balkan Medical Task Force (BMTF). 

As  regards  hybrid  threats,  Montenegro  aligned  with  EU  Declarations  and  restrictive  measures  in 
reaction to cyber-attacks in 2023 and 2024. 

81 

 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND MONTENEGRO  

Within  the  framework  of  the  accession  negotiations,  by  October  2024,  all  33  screened  chapters, 
including  chapters  23  and  24  on  the  rule  of  law,  had  been  opened,  three  of  which  –  science  and 
research,  education  and  culture,  and  external  relations  –  have  been  provisionally  closed.  In  in  June 
2024 the Inter-Governmental Conference on accession negotiations with Montenegro confirmed that 
Montenegro overall met the interim benchmarks for the rule of law chapters 23 and 24, and set the 
closing  benchmarks  for  these  chapters.  This  opens  a  new  phase  in  the  accession  negotiations  to 
proceed with provisionally closing further chapters. 

Montenegro is participating in the Stabilisation and Association Process. Montenegro continued to 
broadly  implement  its  obligations  under  the  Stabilisation  and  Association  Agreement  (SAA). 
Regular political and economic dialogue between the EU and Montenegro has continued through the 
SAA structures. Regular subcommittee meetings were held throughout the period. The Stabilisation 
and Association Committee met in February 2024 and the SA Council in July 2022. The Stabilisation 
and Association Parliamentary Committee met in March 2024. 

Montenegro participates in the ministerial dialogue between the economic and finance ministers of the 
EU  and  the  candidate  countries,  which  aims  at  helping  the  latter  to  gradually  meet  the  economic 
accession  criteria  and  be  better  prepared  in  terms  of  economic  reforms,  competitiveness  and  job 
creation. The most recent meeting was held on 14 May 2024. 

Montenegro  has  maintained  its  full  alignment  with  the  EU  common  foreign  and  security  policy 
and  has  continued  contributing  to  EU  crisis  management  missions  and  operations  under  the 
common  security  and  defence  policy.  The  Balkans  Medical  Task  Force,  in  which  Montenegro 
participates, benefits from a EUR 6 million 2022 support measure under the European Peace Facility. 

Visa liberalisation for citizens of Montenegro travelling to the Schengen area has been in force since 
December 2009. As part of the visa liberalisation monitoring mechanism, the Commission has been 
regularly assessing the progress made by the country in implementing reforms introduced under the 
visa  roadmap.  The  Commission’s  sixth  report  under  the  Visa  Suspension  Mechanism  adopted  in 
October  2023  concluded  that  Montenegro  continues  to  take  action  to  address  the  recommendations 
from  the  previous  year’s  report.  A  readmission  agreement  between  the  European  Union  and 
Montenegro has been in force since 2008. 

The Instrument for Pre-accession Assistance 2021-2027 (IPA III)14 continues to provide financial 
support to the region and finances the Economic and Investment Plan for the Western Balkans.  

The 2024 annual programme was adopted in May 2024 with a budget of EUR 26.6 million, focuses 
on  (i)  support  for  Montenegro  on  the  rule  of  law;  (ii)  further  alignment  with  the  EU  acquis  and 
institutional capacity building; (iii) preparations for the upcoming IPA III operational programmes in 
the areas of environment and climate change and employment and social inclusion.  

Following  approvals  by  the  WBIF  operational  board  Montenegro  has  significant  support  for 
upcoming infrastructure investment, notably in the areas of rail transport and environment. Moreover, 
additional EUR 100 million from IPA III have been mobilised to support the construction of a next 
section of the Bar-Boljare highway.  

The  bilateral  annual  programmes  are  complemented  by  a  package  of  multi-country  and  regional 
programmes, supporting the environmental sector, dealing with migration, social housing, as well as 
TAIEX and competitiveness programmes together with IFIs and IOs.  

Under the Reform and Growth Facility, Montenegro could benefit from an indicative allocation of 
EUR 383.5 million, to be channelled via a Reform Agenda covering key reforms in four policy areas: 
business  environment  and  private  sector  development;  digitalisation  and  energy  (green  transition); 
human capital development; fundamental rights and rule of law. Disbursement of Union support will 

14 Official Journal L 330, 20.9.2021 

82 

 
 
 
be conditional on compliance with the preconditions and delivery on reforms as set out in the Reform 
Agenda. 

Montenegro is also benefiting from the rural development programme IPARD III (in continuation of 
its  support  under  IPARD  II),  providing  a  significant  contribution  to  the  implementation  of  the 
Economic and Investment Plan for the Western Balkans and the Green Agenda.  

Montenegro  also  continues  to  participate  actively  in  cross-border  cooperation  programmes  with 
neighbouring countries and EU Member States (Adriatic and Danube – macro regional strategies), as 
well as transnational cooperation programmes and EU programmes. To improve the mental health of 
youth  and  strengthen  capacities  in  modelling  the  macroeconomic  effects  of  green  policies  and 
investments,  Montenegro  is  participating  as  an  observer  in  two  pilot  projects  under  the  Technical 
Support Instrument. 

Measures  programmed  under  IPA  III  are  building  on  and  adding  to  the  previous  and  ongoing 
measures from IPA II (2014-2020) programmes, which have provided significant support through the 
EU  integration  facility,  support  for  participation  in  EU  programmes,  the  Civil  Society  Facility  and 
IPARD,  aiming  at  the  social  and  economic  development  of  the  country  and  improving  the  reform 
process of the rule of law sector, fundamental rights, public administration reform, and other critical 
sectors.  

The  EU  provides  support  via  the  IPA  and  the  Foreign  Policy  Instrument  to  strengthen  Western 
Balkans  partners’  resilience  to  face  hybrid  threats  including  cyber  and  foreign  information 
manipulation and interference. 

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ANNEX  II – STATISTICAL DATA 

STATISTICAL DATA (as of 5/09/2024) 
Montenegro 

Basic data 
Population (thousand) 
Total area of the country (km²) 

National accounts 
Gross domestic product (GDP) (million national currency) 
Gross domestic product (GDP) (million euro) 
GDP (euro per capita) 
GDP per capita (in purchasing power standards (PPS)) 
GDP per capita (in PPS), relative to the EU average (EU-27 = 100) 
Real GDP growth rate: change on previous year of GDP volume (%) 
Employment growth (national accounts data), relative to the previous year (%) 
Labour productivity growth: growth in GDP (in volume) per person employed, relative to the 
previous year (%) 
Unit labour cost growth, relative to the previous year (%) 
**3 year change (T/T-3) in the nominal unit labour cost growth index (2015 = 100) 
Labour productivity per person employed: GDP (in PPS) per person employed relative to EU 
average (EU-27 = 100) 
Gross value added by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
Final consumption expenditure, as a share of GDP (%) 
Gross fixed capital formation, as a share of GDP (%) 
Exports of goods and services, relative to GDP (%) 
Imports of goods and services, relative to GDP (%) 
Gross fixed capital formation by the general government sector, as a percentage of GDP (%) 

Note 

Note 

2011 
620 i 
13 812 w 

2018 
622 i 
13 812 w 

2011 
3 265 
3 265 
5 270 
10 783 
42.0 
3.2 
: 
: 

: 
: 
: 

9.6 
12.1 
5.9 
72.4 i 
102.6 
19.5 
42.3 
64.3 
: 

2018 
4 663 
4 663 
7 490 
14 587 
48.1 
5.1 
: 
: 

: 
: 
: 

8.2 
12.5 
7.0 
72.4 i 
91.9 
29.2 
42.9 
66.7 
: 

2019 
622 i 
: 

2019 
4 951 
4 951 
7 960 
15 697 
50.0 
4.1 
: 
: 

: 
: 
: 

7.9 
11.9 
7.9 
72.2 i 
89.2 
27.3 
43.8 
65.0 
: 

2020 
622 i 
: 

2020 
4 186 
4 186 
6 740 
13 417 
44.5 
-  15.3 
: 
: 

: 
: 
: 

9.1 
13.5 
7.3 
70.0 i 
103.8 
27.9 
26.0 
61.0 
: 

2021 
621 i 
: 

2021 
4 955 
4 955 
8 000 
15 456 
47.1 
13.0 
: 
: 

: 
: 
: 

8.0 
12.5 
5.8 
73.8 i 
92.7 
22.1 
42.8 
62.2 
: 

2022 
618 i 
: 

2022 
5 924 
5 924 
9 600 
17 577 
49.4 
6.4 
: 
: 

: 
: 
: 

7.5 
11.3 
4.8 
76.3 i 
92.5 
21.5 
51.5 
74.4 
: 

Business 
Industrial production volume index (2015 = 100) 
Number of active enterprises (number) 
Birth rate: number of enterprise births in the reference period (t) divided by the number of 
enterprises active in t (%) 

Note 

2011 
101.8 w 
: 
21.4 w 

2018 
113.8 w 
: 
11.2 w 

2019 
106.6 w 
: 
11.2 w 

2020 
105.6 w 
: 
8.5 w 

2021 
110.8 w 
: 
11.4 w 

2022 
107.2 w 
: 
21.6 w 

84 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Death rate: number of enterprise deaths in the reference period (t) divided by the number of 
enterprises active in t (%) 
People employed in SMEs as a share of all persons employed (within the non-financial 
business economy) (%) 
Value added by SMEs (in the non-financial business economy) (EUR million) 
Total value added (in the non-financial business economy) (EUR million) 

Inflation rate 
Consumer price index (CPI), change relative to the previous year (%) 

Balance of payments 
Balance of payments: current account total (million euro) 
Balance of payments current account: trade balance (million euro) 
Balance of payments current account: net services (million euro) 
Balance of payments current account: net balance for primary income (million euro) 
Balance of payments current account: net balance for secondary income (million euro) 
Net balance for primary and secondary income: of which government transfers (million euro) 
**3 year backward moving average of the current account balance relative to GDP (%) 
**Five year change in share of world exports of goods and services (%) 
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 
Foreign direct investment (FDI) abroad (million euro) 
of which FDI of the reporting economy in the EU-27 countries (million euro) 
Foreign direct investment (FDI) in the reporting economy (million euro) 
of which FDI of the EU-27 countries in the reporting economy (million euro) 
**Net international investment position, relative to GDP (%) 
Year on year rate of change in gross inflow of remittances (in national currency) from migrant 
workers (%) 

Public finance 
General government deficit / surplus, relative to GDP (%) 
General government gross debt relative to GDP (%) 
Total  government revenues, as a percentage of GDP (%) 
Total government expenditure, as a percentage of GDP (%) 

: 

: 

: 
: 

2011 
: 

2011 
: 
: 
: 
: 
: 
: 
: 
: 
389.1 w 
12.3 w 
: 
401.4 w 
: 
: 
5.7 iw 

2011 
-  5.4 w 
45.4 w 
39.4 w 
44.8 w 

Note 

Note 

Note 

Financial indicators 
Gross external debt of the whole economy, relative to GDP (%) 
Gross external debt of the whole economy, relative to total exports (%) 
Money supply: M1 (banknotes, coins, overnight deposits, million euro) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
**Annual change in financial sector liabilities (%) 

Note 

1) 

2011 
145.9 iw 
346.7 w 
: 
1 951.6 w 
: 

85 

4.8 w 

3.3 w 

4.7 w 

4.9 w 

5.6 w 

: 

: 

: 

: 

: 

: 
2 021 w 

: 
2 205 w 

: 
1 819 w 

: 
2 164 w 

: 
2 870 w 

2018 
2.6 d 

2019 
0.5 d 

2020 
-  0.5 d 

2021 
2.5 d 

2022 
11.9 d 

2018 
-  793.0 
- 2 050.0 
935.0 
55.0 
265.0 
34.0 
-  16.4 
19.0 
323.0 i 
92.0 
78.0 
415.0 
19.0 
-  168.5 w 
4.9 i 

2018 
-  4.6 w 
70.1 ew 
42.2 w 
46.2 w 

2018 
164.7 i 
381.7 w 
: 
2 528.0 w 
: 

2019 
-  707.0 
- 2 065.0 
1 019.0 
56.0 
284.0 
49.0 
-  15.8 
26.8 
345.0 i 
67.0 
1.0 
412.0 
41.0 
-  166.3 w 
4.8 i 

2019 
-  2.0 w 
76.5 w 
43.4 w 
45.4 w 

2019 
167.4 i 
381.8 w 
: 
2 727.3 w 
: 

2020 
- 1 091.0 
- 1 643.0 
176.0 
66.0 
308.0 
51.0 
-  19.1 
-  31.4 
470.5 w 
-  4.5 w 
-  2.0 w 
466.0 w 
90.9 w 
-  205.0 w 
6.3 i 

2020 
-  10.7 ew 
103.1 w 
43.7 ew 
54.4 ew 

2020 
221.6 i 
852.4 w 
: 
2 841.0 w 
: 

2021 
-  457.0 
- 1 914.0 
956.0 
103.0 
401.0 
66.0 
-  16.5 
4.6 
581.6 w 
9.3 w 
-  7.8 w 
590.9 w 
172.4 w 
-  165.4 w 
6.8 i 

2021 
: 
: 
: 
: 

2021 
191.7 i 
447.6 w 
: 
2 884.2 w 
: 

2022 
-  766.0 
- 2 671.0 
1 317.0 
118.0 
467.0 
41.0 
-  16.1 
17.7 
782.6 w 
49.9 w 
8.3 w 
832.6 w 
223.6 w 
-  130.9 w 
7.4 i 

2022 
: 
: 
: 
: 

2022 
158.4 i 
307.3 w 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, per annum (%) 
Euro exchange rates: average of period (1 euro = … national currency) 
Trade-weighted effective exchange rate index, 42 countries (2015 = 100) 
**3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries 
(2015 = 100) 
Value of reserve assets (including gold) (million euro) 

: 
: 
1 w 
: 
: 

: 
: 
1 w 
: 
: 

: 
: 
1 w 
: 
: 

: 
: 
1 w 
: 
: 

303.5 w 

202.0 

316.0 

376.0 

External trade in goods 
Value of imports: all goods, all partners (million euro) 
Value of exports: all goods, all partners (million euro) 
Trade balance: all goods, all partners (million euro) 
Terms of trade (export price index / import price index * 100) (number) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 
Crude rate of natural change of population (natural growth rate): number of births minus 
deaths (per thousand inhabitants) 
Infant mortality rate deaths of children under one year of age (per thousand live births) 
Life expectancy at birth: male (years) 
Life expectancy at birth: female (years) 

Labour market 
Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that 
is economically active (%) 
*Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are 
in employment (%) 
Male employment rate for persons aged 20–64 (%) 
Female employment rate for persons aged 20–64 (%) 
Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are 
in employment (%) 
Employment by main sectors 
Agriculture, forestry and fisheries (%) 
Industry (%) 
Construction (%) 
Services (%) 
People employed in the public sector as a share of total employment, persons aged 20–64 
(%) 
People employed in the private sector as a share of total employment, persons aged 20–64 
(%) 

86 

Note 

Note 

Note 

2) 

2) 3) 
4) 

2011 
1 823 
454 
- 1 369 
101.5 iw 
59.2 iw 
43.5 iw 

2018 
2 554 
400 
- 2 154 
100.7 iw 
43.1 iw 
47.1 iw 

2011 
2.2 

4.4 
73.3 
78.8 

2011 
63.0 

50.7 

57.0 
44.4 
33.8 

5.5 i 
13.6 i 
6.0 i 
74.9 i 
35.3 w 

2018 
1.2 

1.7 
74.5 
79.3 

2018 
70.5 

59.8 

66.7 
52.9 
46.6 

8.0 i 
9.9 i 
9.0 i 
72.5 i 
31.7 w 

2019 
2 601 
416 
- 2 185 
99.1 iw 
37.0 iw 
47.0 iw 

2019 
1.0 

2.4 
74.0 
79.5 

2019 
71.8 

60.8 

67.5 
54.2 
50.1 

7.1 i 
9.5 i 
9.9 i 
73.1 i 
29.3 w 

2020 
2 105 
366 
- 1 739 
94.4 iw 
37.7 iw 
44.2 iw 

2020 
-  0.3 

2.8 
73.2 
78.8 

2020 
67.2 

55.2 

61.7 
48.8 
44.2 

7.5 i 
10.1 i 
8.3 i 
73.5 i 
30.5 w 

: 
: 
1 w 
: 
: 

8.0 

2021 
2 504 
437 
- 2 067 
99.8 iw 
31.1 iw 
45.7 iw 

2021 
-  3.4 

1.4 
70.8 
77.0 

2021 
64.7 w 

54.2 w 

59.8 w 
48.7 w 
41.1 w 

6.4 w 
10.2 w 
6.7 w 
76.7 w 
32.7 w 

: 
: 
1 w 
: 
: 

164.0 

2022 
3 540 
700 
- 2 840 
110.6 iw 
30.3 iw 
44.3 iw 

2022 
-  0.1 

: 
: 
: 

2022 
: 

: 

: 
: 
: 

: 
: 
: 
: 
: 

: 

48.5 w 

63.9 bw 

66.5 w 

65.6 w 

63.7 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unemployment rate: proportion of the labour force that is unemployed (%) 
Male unemployment rate (%) 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 
Long-term unemployment rate: proportion of the labour force that has been unemployed for 
12 months or more (%) 
Unemployment rate for persons (aged 25–64) having completed at most lower secondary 
education (ISCED levels 0-2) (%) 
Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED 
levels 5-8) (%) 

Social cohesion 
Average nominal monthly wages and salaries (national currency) 
Index of real wages and salaries (index of nominal wages and salaries divided by the 
inflation index) (2016 = 100) 
GINI coefficient 
Poverty gap 
*Early leavers from education and training: proportion of the population aged 18–24 with at 
most lower secondary education who are not in further education or training (%) 

Note 

19.7 
19.3 
20.1 
36.6 
15.7 

30.9 

12.1 

2011 
479 w 
104 w 

: 
: 
7.2 

15.2 
15.3 
15.1 
29.4 
11.4 

21.0 

10.0 

2018 
511 w 
98 w 

: 
35.3 
4.6 

15.2 
14.7 
15.7 
25.2 
12.0 

26.9 

11.0 

2019 
515 w 
98 w 

: 
33.1 
5.0 

17.9 
17.5 
18.4 
36.0 
13.4 

35.2 

12.0 

2020 
524 w 
100 w 

: 
28.2 
3.6 

16.6 w 
17.1 w 
15.9 w 
37.1 w 
11 w 

31 w 

11.5 w 

2021 
532 w 
99 w 

: 
29.5 
6.7 w 

: 
: 
: 
: 
: 

: 

: 

2022 
712 w 
117 w 

: 
29.5 
: 

Note 

2011 
277.0 
1 875.0 bw 

2018 
332.0 
1 822.8 w 

2019 
350.0 
1 849.9 w 

2020 
338.0 
1 736.8 w 

2021 
358.0 
1 804.4 w 

2022 
369.0 
2 062.6 w 

Standard of living 
Number of passenger cars relative to population size (number per thousand population) 
Number of mobile phone subscriptions relative to population size (number per thousand 
population) 
Mobile broadband penetration (per 100 inhabitants) 
Fixed broadband penetration (per 100 inhabitants) 

Infrastructure 
Density of railway network (lines in operation per thousand km²) 

Length of motorways (kilometres) 

Education, innovation and research 
Public expenditure on education relative to GDP (%) 
*Gross domestic expenditure on R&D relative to GDP (%) 
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP 
(%) 
Percentage of households who have internet access at home (%) 

Note 

Note 

10.4 w 
13 w 

2011 
: 

: 

2011 
: 
0.31 
: 

: 

8.8 w 
25 w 

2018 
18.0 i 

m 

2018 
: 
0.50 
: 

72.2 

Environment 
*Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 

Note 

2011 
85.0 w 

2018 
76.3 w 

87 

8.0 w 
29 w 

2019 
18.0 i 

m 

2019 
: 
0.36 iw 
: 

74.3 

2019 
78.5 w 

7.7 w 
30 w 

2020 
18.0 i 

0 

2020 
: 
: 
: 

80.3 

7.7 w 
30 w 

2021 
18.0 i 

0 

2021 
: 
: 
: 

80.8 

2020 
75.4 w 

2021 
75.5 w 

8.5 w 
32 w 

2022 
18.0 i 

0 

2022 
: 
: 
: 

81.0 

2022 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant 
prices) 
Electricity generated from renewable sources relative to gross electricity consumption (%) 
Road share of inland freight transport (based on tonne-km) (%) 

Energy 
Primary production of all energy products (thousand TOE) 
Primary production of crude oil (thousand TOE) 
Primary production of solid fuels (thousand TOE) 
Primary production of gas (thousand TOE) 
Net imports of all energy products (thousand TOE) 
Gross inland energy consumption (thousand TOE) 
Gross electricity generation (GWh) 

Agriculture 
Agricultural production volume index of goods and services (at producer prices) (2015 = 100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand heads, end of period) 
Livestock numbers: live swine (thousand heads, end of period) 
Livestock numbers: live sheep and live goats (thousand heads, end of period) 
Raw milk available on farms (thousand tonnes) 
Harvested crop production: cereals (including rice) (thousand tonnes) 
Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

Source: Eurostat and/or the statistical authorities in Montenegro 

5) 

Note 

Note 

328.9 

259.5 

258.2 

280.3 

265.0 

241.9 

41.6 
43.1 w 

52.4 
55.7 w 

53.6 
45.4 w 

61.5 
41.8 w 

60.5 
65.1 w 

63.2 
47.4 w 

2011 
721 
0 
434 
0 
411 i 
1 134 
2 656 

2011 
: 
222.9 
: 
: 
: 
: 
6.6 
0.0 
29.3 

2018 
728 
0 
362 
0 
334 i 
1 074 
3 811 

2018 
: 
256.8 p 
83.3 p 
23.6 p 
216.0 pi 
181.5 p 
8.0 p 
0.0 
42.3 p 

2019 
736 
0 
396 
0 
365 i 
1 112 
3 433 

2019 
: 
257.5 p 
81.4 p 
23.0 p 
210.8 pi 
178.0 p 
7.6 p 
0.0 
40.1 p 

2020 
726 
0 
400 
0 
280 i 
1 023 
3 381 

2020 
: 
258.0 p 
77.9 p 
25.8 p 
204.4 pi 
: 
7.3 p 
0.0 
39.4 p 

2021 
749 
0 
371 
0 
340 i 
1 093 
3 777 

2021 
: 
255.6 p 
71.2 p 
24.3 p 
195.0 pi 
: 
7.1 p 
0.0 
40.9 p 

2022 
743 
0 
416 
0 
309 i 
1 062 
3 322 

2022 
: 
253.7 p 
70.8 p 
24.5 p 
190.5 pi 
: 
7.2 p 
0.0 
40.9 p 

: = not available 
b = break in series 
d =  definition differs 
e = estimated value 
p = provisional 
i = Eurostat estimate 
m = missing value / data cannot exist 

w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and 
without any assurance as regards their quality and adherence to EU statistical methodology 
* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator 

Footnotes: 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1)  Loans include total banks' loans granted to non MFI residents and other claims (factoring and forfeiting, claims on 

outstanding bills of acceptance, guarantees and bills of exchange). 

2)  Data refer to number of employees in the public sector as a share of the total number of persons employed. 
3)  Comprises data of private companies or enterprises, entrepreneurs, private households and NGO. 
4)  Break in series as previously only employees were answering this question; Since 2018 all employed persons  are giving 

answer to this question. 

5)  Total freight traffic (national territory and international transport). 

89 

 
 
90