Expose of the Prime Minister Zeljko Sturanovic

Honorable Speaker,
Honorable Members of the Presidency,
Ladies and Gentlemen Members of Parliament,

For the first time in recent history, the direction and dynamics of Montenegros development depend exclusively on our capacity to create and implement, in a responsible manner, the best vision of Montenegros European future. By resolving the statehood issue, we have created conditions to consolidate all our potentials and that all political stakeholders and structures are referred to the common perspective of Montenegros further European path, in order to respond efficiently to the challenges and tasks of the European agenda. And, in this context of a certain European and Euro-Atlantic perspective of Montenegro, I see the new Governments term as the greatest test of responsibility yet.

Now when the most important issue, the statehood status, is resolved, the measure of success will be only our capacity to adopt and implement the best European practice and experiences, in order to secure, in all aspects and as soon as possible, the European standard of living for our citizens. This, by all means, involves a great responsibility, but also real chances to bring Montenegro to the doorstep of this strategic goal during this Governments term. A clear vision and the quality of that process are more important than the timeframe within which the goal would be reached. However, it is no less important that, on the basis of real opportunities and capacities, our political ambitions be accompanied by adequate activities in all areas. Meaning, institutional, financial, economic, legal, political If we aspire to a more efficient integration into the EU, then it requires a consistent package of measures and engagement of all stakeholders and every individual. And, only that kind of a proactive, comprehensive approach allows us to affect the quality and pace of our European path. I stand firm on the premise that the EU is no less interested in having Montenegro, together with other states of the Western Balkans, develop, as soon as possible, a system that could function smoothly within the EU. Not only because it is needed for the stability of the European continent, but also because everyone benefits from a democratically developed and prosperous partner.

The new Government is already symbolically referred to by the domestic public as The Brussels Government, which best summarizes the strategic guidelines of the Governments program for the next four-year period. And, to clear up any misconceptions we will work e3xpeditiously to meet the demands of the European agenda, because that is in the interest of all citizens of Montenegro, and not because Brussels or anyone else would dictate that. By all means, it is a channeled process, in which we comply with and adopt the rules of the EU, which we aspire to join, the process in which we can count on further comprehensive support and partnership of the EU. This is how we understand the two-way path of our European perspective.

On these grounds, the new Governments program activity is already considerably defined by efficient implementation of the future Stabilization and Association Agreement and an accelerated rate of our accession process to the EU. Also, by our membership in the World Trade Organization, Partnership for Peace, Council of Europe, international financial and other organizations. During this Governments term, we will also work on creating preconditions for efficient implementation of the second, more demanding stage of our accession to the European Union. This is ambitions, but realistically achievable.

The more because the previous Government has set firm grounds for quick economic growth and development and more dynamic European integration. This is illustrated, among other things, by the following data: gradual, but stable GDP growth; decline in inflation and budget deficit and their maintenance at the European level; strong downward trend in the unemployment rate, which best indicates that we have already entered the stage of economic growth and development; the share of public debt in GDP is being reduced, and based on the current level Montenegro is in the group of low indebted countries; development of entrepreneurial initiative and environment for new investments, amounting to 317 million in the first 9 months of this year; an extremely dynamic development of the financial market; commencing the resolution of restitution issues and old foreign exchange savings and many other positive trends and results.

The standards of living is still not at a satisfactory level, but a solid basis for a dynamic economic development has definitely been created, as confirmed by arrangements with our international financial partners the IMF, WB, EBRD and others.

The most vivid example of implemented reforms and results is the forthcoming institutionalization of cooperation with the EU, through the conclusion of the Stabilization and Association Agreement, as well as the regulation of membership in the World Trade Organization which I expect in the course of next year.

Therefore, this Government starts from positive results achieved over the past four years, committed to further develop Montenegro as a modern, civic state with a developed market economy based on knowledge, observing the principles and goals of sustainable development. And also on stable institutions that guarantee the rule of law, freedoms, economic and overall security of every citizens, human and minority rights, as well as further compliance with the international law principles. Approaching the European level of economic freedoms, in particular, in the segment of possibilities for the full freedom of choice of every individual and his active participation in development, and as the final result higher employment, jobs of higher quality, better standard of living and greater social cohesion compose the core of this Governments program activities, as well. And that means our more dynamic and higher quality integration into European and Euro-Atlantic structures.

On these bases, allow me to point out the priority activity directions of this Government, with the emphasis on issues of particular importance for the realization of the stated strategic goals:

The Government will work energetically on further reform of the state administration, by implementing the adopted legislation, including the Code of Ethics for Civil Servants and State Employees, and by undertaking further measures towards rationalization, modernization and higher professionalism and transparency, in accordance with the Strategy for the Reform of Public Administration of Montenegro 2002-2009. The Government will also continue with the implementation of the Strategy for the Development of Information Society and the Action Plan for its implementation, as well as with the realization of the concept of e-Government.

In terms of rationalizing the state administration, the Government will, in due time, plan and provide funds for severance payments and other programs for resolving the problem of redundancies. Also, it will develop a consistent framework for addressing civil servants housing needs, as well as incentive programs for talented personnel.

In addition, the Government will place priority on establishing and training institutions for the affairs Montenegro has taken over as an independent states. This, above all, refers to the area of defense, foreign affairs, certain affairs concerning human and minority rights, extradition, protection of intellectual property rights, standardization and accreditation of products, quality insurance infrastructure, civil aviation, meteorology. Some studies have already been adopted or are at the final stage of preparation. So is the legislation.

In the area of local self-government, the key activities of the Government in the next period will be directed to the implementation of program activities aimed at strengthening the institutional framework, including adoption of number of systemic laws governing the area of ownership and proprietary relations, legal status of organizations, environmental protection, urban development, etc. The goal is to further develop managerial capacity, increased transparency and higher quality of public services, as well as strengthen mechanisms for citizens participation in local government affairs.

Without an efficient, professional, open and decentralized state administration, as well as impartial, professional and efficient judicial system, there can be neither dynamic development nor progress towards the EU. Those are the cornerstones of development in every system. This is why the strengthening of their capacity, in accordance with the principles of democracy and the rule of law, is essential for the realization of our strategic national goal full integration into the EU and Euro-Atlantic structures. What is even more important, this is a precondition for legal and overall security of citizens, protection of human rights and fundamental freedoms, as well as the security of investment both domestic and foreign. Without this there can be no development and better life for the citizens.

The activities defined by the Judiciary Reform Project - for the period until the end of the 2005, are mostly completed. The Draft of the Strategy for the Judiciary Reform for the following period has already been prepared, with the focus on realization of the following key objectives: strengthening of the rule of law, independence and reliability of judiciary, strengthening of efficiency, strengthening of the accessibility of judicial bodies which means enabling the full access to the justice, as well as building the public confidence in the judiciary. The importance of the "proactive European approach" to all segments of the Strategy is additionally emphasized by the institutionalization of the cooperation with EU. This complex task implies immediate start with the comprehensive training programs as well, in order to acquire more complete and intensive knowledge about Acquis Communautaire and the practice of the European Court of Justice.

The anticipating Constitutional reform will also contribute to further strengthening and building of an independent, professional and functional judicial system.

During the next period, the Government will also intensify the activities referring to conclusion of the international contracts in the area of judicial cooperation and education of judicial area specialists.

The Government will continue with the democratic reform of the police, in order to improve its professionalism, responsibility and transparency. In order to further build capacities, several activities and projects are planned, such as: procurement and modernization of the equipment for processing and analysis of the operative data and efficient safeguarding of evidences, for implementation of special investigating techniques, for forensics, as well as for the needs of the special antiterrorism unit and more efficient combat against drug addiction. Furthermore, for higher quality surveillance, control and protection of the state border (on the ground and on the sea), as well as for modernization of road traffic police and video surveillance. The priority also includes the establishment and modernization of the database, including the criminal offences regarding human trafficking. Further efficient implementation of the Law on Police and the Law on Agency for National Security, as well as the Code of Police Ethics shall be provided for. The focus will be put on continuous specialized training programs.

After reaching independence, Montenegro independently regulates the visa policy, border control, asylum and migrations. The Proposal of the Law on Foreigners has been placed in the Parliamentary procedure, which regulates visa policy issues in line with the European standards. The Law on Citizens Registry, which also envisages the development of the project Central Citizens and Foreigners Registry, as well as the Proposal of the Law on Montenegrin Citizenship are in Parliamentary procedure as well. Fifteen agreements on readmission with the EU member states are already concluded and they are implemented without difficulties. Negotiations about concluding agreements with the remaining EU member states are continued. Also, the Agreement on police cooperation and protocols on joint patrols along the state border with the neighboring countries will be initiated.

As part of the upcoming Stabilization and Accession Agreement, and the expected mandate for opening negotiations of the European Commission for concluding the Agreement on visa concessions between the European Union and Montenegro, as well as other states of Western Balkans, further necessary adjustments and capacity development will be performed.

The Government will also intensify the methods for preventing and eliminating organized crime and corruption, through additional conclusion of bilateral agreements as well, while .the adopted amendments to the Law on Criminal Procedure provide more efficient identification of criminal offences in the area of cross-border organized crime, in the part that relates to the special investigations techniques. Internally, in addition to the aforementioned, we will form the National Commission for monitoring the implementation of the Action Plan for implementation of the Program on combating against corruption and organized crime, adopted by Government in July 2005, as well. The Commission will be tasked to continuously follow the activities undertaken by the State bodies and institutions for the purpose of implementing the Action Plan, evaluate achieved results and propose new activities and measures. It is also planned to further strengthen institutional capacity, especially in the part regarding investigation and prosecution, which, among other things, implies the establishment of a separate organizational unit of the Ministry of Interior for investigation of criminal offenses regarding corruption, protection of all persons reporting on criminal offences regarding corruption, and other measures for strengthening the capacity specialized training, procurement of technical equipment, keeping separate records, statistics and analytics for criminal offences regarding corruption, etc. At the same time, the Government will work on improving other relevant legislation to fully harmonize it with international standards.


Dominant impact on reorganization and further shaping of the state administration will be exercised by institutionalizing of the relationship with the EU, as well as joining the NATO program - Partnership for Peace.

Establishment of the contractual relationship with the EU, forthcoming conclusion of the Stabilization and Accession Agreement, means that the first phase of the essential integration of Montenegro to the EU is starting. Institutionalization of the relations with the EU is confirmed by a significant support to increasing the speed of reforms in all areas, and there is no a single reason for that not to be the case with us, as well. It is clear that the dynamic and quality of that process will depend primarily on the capacities of the Government, but also on all other state structures and stakeholders of the society, which implies the importance of a broader consensus, gathering of all potentials and joint and coordinating effort. In that sense, the focus of the Government will be on a further building and strengthening of the capacity for the efficient implementation of the future Agreement, and, at the same time, preparing the adequate organizational infrastructure for the second, final stage of our EU accession. Therefore, it means further development and better coordination of the overall institutional infrastructure for the issues of the European integrations, as well as intensive reforms in the areas that are of the exceptional importance for this process.

Up-to-date course of negotiation process regarding the Stabilization and Accession Agreement shows that the administrative capacities in Montenegro have met all current needs. Aware of the fact that the essential tasks start with the implementation of the Agreement, the Government will place priority on further improvement of the organizational infrastructure and strengthening of the capacities for its efficient implementation. The important road sign for that direction will be represented by the Action Plan of the Government for the realization of the short term and mid term recommendations from the European partnership for Montenegro, as an independent state. By this Action plan, we will establish the direct correlation between measures and activities necessary for the implementation of the recommendations and the timeframes and institutions responsible for their implementation, as well as needed budget allocations. The focus will also be put on the more precise defining of competencies in the area of harmonization of the domestic legislation and economic harmonization with the EU system, as well as on the further development of the organizational structure for implementation of certain chapters of the future Agreement. We will also develop the capacities for the efficient programming and usage of the new instrument of EU assistance Instrument for Pre-Accession Assistance (IPA), and for the coordination of the European funds. This forthcoming process implies more active cooperation with the Parliament and strengthening its capacity for participation in the joint bodies with the EU. The Government will also develop the dialog and cooperation with other structures business associations, trade unions, educational and scientific institutions, with civil society, media, etc.. The Government will continue to develop the Communication Strategy and the public information campaign on the EU accession process, and raising awareness about EU.

As a priority, the Government will immediately take measures for the strengthening of the administrative capacity in those areas, which have already been identified as key areas for the implementation of the obligations from the future Agreement. It is primarily referred to the efficient implementation of provisions on free trade, sanitary and phyto-sanitary regulations, competition rules, protection of the intellectual property rights, quality and standardization.

The Government will develop the program of organized training of civil servants for the EU affairs, including also the involvement in providing scholarships for reputable European universities for final years students, for particular specialized areas.

The Government will start preparing this National Program for Adopting Acquis.

At the same time with the EU accession, the integration of Montenegro to Euro-Atlantic community, through the membership in the NATO Partnership for Peace and NATO, will be carried out. These are compatible processes, which basically have the same goals -democratic reform of the overall society, security and safety strengthening, rule of law, functional market economy.

We expect rapid accession to the Partnership for Peace, since Montenegro has fulfilled all the requirements. The priority activities of the Government in this area include the establishment and capacity building of the Ministry of Defense, as well as the adoption of the Defense Strategy, the Military Doctrine, the Law on the Military and the Law on Defense.

In accordance with the modern requirements, we will reform the military forces into a small, mobile, professional, modern and interoperable structure and promote the transparency in defense planning and defense budget, and develop the mechanisms for the democratic and parliamentary control of the military forces.

In the context of the defense sector reform, special attention, in the next period, will be paid to security and defense EU policy, development of political and military cooperation with NATO, as well as the bilateral cooperation with the NATO members and the states from the region. Also, the cooperation with the global and regional organizations, primarily with the UN and OSCE, considering their political and military dimension.

The police reform, which has already started, and the development and implementation of integrated borders management concept, will be continued in parallel and complementary to the activities regarding the military reform.

In the area of economy, the Government will continue macroeconomic policy that enforces stability and enhances development. With that respect, the Government will be concentrated on the following priorities:
- Accelerating economic growth, while respecting sustainable development principle, through the further systematic support and advancement of the ambiance for strengthening the private sector, investments, entrepreneurial initiative, primarily through the development of existing and establishment of new small and medium-size enterprises. Also, we will gradually develop the mechanisms for adopting goals of the 2005 EU Lisbon Strategy, and the development of National Action Program for their implementation.

- The particular emphasis is put on further creation of preconditions for more complete potentials valorization on the north of Montenegro, for the purpose of more even development of all parts of our state. We commit ourselves to provide, on the entire territory of our Montenegro, better life conditions, by creating a society of equal opportunities for all citizens.

- In cooperation with the World Bank and other international and domestic partners we will commence the updating of the Poverty Reduction Strategy, for the purpose of focusing on resolving problems of vulnerable social groups. Since the adoption of the Poverty Reduction Strategy many priorities have been elaborated and are being implemented on the basis of other strategic documents of the Government for specific areas.

- The improvement of the active employment policy, through further labor market reform and liberalization, as well as continuous education and prequalification programs. The status of disabled persons will be also systemically resolved.

- The maintenance of full consolidation and further strengthening of public finances efficiency. The budget deficit will be kept at the level of up to 2% due to the investments in infrastructure and restructuring, that is, rationalization of public expenditure. The tendency of reducing share of consolidated debt in GDP will continue. By 2010, we will reduce public expenditure to 35% of GDP. We will gradually increase the labor price.

Such a policy will enable low level of inflation and its maintenance within the limits applicable to the EU countries, as well as the reduction of interest rates.

- The continuation of tax reform through further tax relief, particularly of the income tax.

- The continuation of pension sector reform, including also the adoption of the Law on Capitalized Pension Savings.

- Further privatization, for the purpose of completing this process by the end of this government term. In that direction, during the next year, it will be possible to complete the tourism and financial sector privatization, and to begin with the privatization in transportation area. The activities on the preparation of energy sector privatization, as well as communal services companies privatization, will be intensified, combining it with the concession model, which can realistically be realized by the end of this Government term.

The dynamic investment activities, primarily through the reconstruction of the existing and construction of new capital infrastructure facilities. A special emphasis will be put on creating the conditions for construction of new motorways towards Serbia and of Montenegrin part of the Adriatic-Ionic highway. The future activities will be also referred to development of the roads cadastre and the database in order to optimize the management of the roads infrastructure, as well as the regulation of relations with the local community referring to roads maintenance on city territories. Also, on the application of the Action Plan for the Development of transportation network for the South-East Europe 2007-2011, which will enable the strengthening of regional planning and cooperation capacities. In the area of civil aviation, legislation will be adopted and the implementation of the two most important EU documents will be carried out the so-called Multilateral Agreement on the establishment of equal rights for operations of economic undertakings on the European sky and Horizontal Agreement dealing with unification of security and safety standards, as well as the quality of services in civil aviation. Intensive and continuous activities will be carried out on the harmonization of national legislation with the EU legislation.

- The adoption of the Energy Development Strategy and Action Plan for its implementation. Also, the ratification of the Agreement on the Establishment of the Energy Community and its implementation. Also, the activities on the establishment of institutional and other preconditions to facilitate private sector participation in the energy sector.

The activities on the realization of strategic documents in the area of environmental protection- the Master Plan for Water Supply of the Montenegrin Coast, the Master Plan for Waste Management, the Master Plan for Sewers and Waste Water Treatment of the Montenegrin Coast and the Municipality of Cetinje, the Master Plan for Sewage System and Waste Waters in the Central and Northern Part of Montenegro. We will continue with adoption of the legislation and harmonization in accordance with the EU standards, as well as strengthening institutional capacity, including the establishment of the Agency for Spatial Planning and Urban Development. The cooperation with the key international partners regarding environmental protection will be intensified.

- The center of attention will be placed to the further implementation of the Master Plan for Tourism Development by 2020 and creation of all preconditions for the full use of potentials in this strategic development sector.

- The continuation of the restitution process and, when necessary, further improvement of legislation.

The Government will also continue further implementation of the Strategy for the education reform by the end of 2009 and obligations arising from the accession of Montenegro to the Bologna Process and Lisbon Convention. We will also continue to invest in human resources development and specialized knowledge, which are essential for further advancement and development. Also, to invest in modernization and equipping of educational institutions, including increasing the level of IT culture and greater accessibility of computer technologies. This will be priority, strategic direction of actions of this Government. After having obtained the right to direct our future, we have to show now that we are capable to create and realize the best vision of further development of Montenegro. Thus, to adopt and implement knowledge that corresponds to the 21st century European challenges.

Of course, the priority of the Government is further health care system reform and the implementation of strategic documents in this area, within the framework of the overall social welfare system reform.

The Government will provide more active protection of cultural inheritance and adopt the Strategy for support to the continuous cultural development. Dedication to the cultural inheritance, while encouraging modern creativity, will contribute to the preservation and affirmation of the Montenegrin cultural identity. Montenegro with its Mediterranean, Balkans, European vocation and multicultural heritage can substantially contribute to the promotion of unity beyond differences, which represents the axiom of modern European integration, founded on the interweaving and wealth of different cultures.

The Government will systematically regulate the status of sports.

Honorable Members of Parliament,

I listed these program priorities in the form of strategic directions of the Government activities, without the pretension to elaborate them in all segments. I paid more attention to the issues, which are particularly important for the further democratic and economic development of Montenegro, and our European and Euro-Atlantic integrations. Especially because the program of this Government, as well, is mostly dedicated to our future institutional engagement with the EU and NATO. Also to further development of cooperation with the IMF, the World Bank, EBRD, EIB, and other international financial partners.

To attain these aims, a key role has the regulation of our membership in the Council of Europe, I believe, at the beginning of the next year, and the efficient fulfillment of obligations, especially in the area of human rights and freedoms and minority rights protection. With its active approach, the Government will contribute to the further reinforcement of trust and dedication that have been constantly confirmed by minorities, which makes Montenegro a unique example in the region. The Government is dedicated to fully promote minority rights in accordance with the European standards and practice, respecting the solutions from the relevant conventions of the Council of Europe and other international institutions, and to further develop legal and institutional infrastructure, in that direction.

The Government remains dedicated to the further advancement in the negotiation process concerning the accession of Montenegro to the World Trade Organization, with the goal to complete it next year, and commits itself to further develop foreign trade policy and system in accordance with the rules of this international organization. It will represent significant support to the further economic development and European integration of Montenegro, as these are complementary processes, which basically have and share the same values and objectives.

One of the key components of the foreign policy activities of the Government of Montenegro remains the development of cooperation with both UN and OSCE, based on the consistent compliance and implementation of their basic principles and values.

The Government will resolutely continue to develop versatile links with Serbia, as well as with other countries in the region. In the future, it will also conduct the active policy of good neighborly relations and regional cooperation, which is inseparable from our European and global integration and EU policy towards this region. This is in the interest of the national and regional development and stability. Therefore, the Government will take active measures regarding free flow people, goods, services and capital, by implementing the unique Agreement on free trade regime in the South East Europe, which should be concluded these days. Also, the other regional initiatives in the field of energy, infrastructure, investments, the environment, combating corruption and all kinds of organized crime, visas, asylum, migration, as well as other projects.

And the last, but not the least, is that the Government counts on further development of partnership and support, which the United States of America gives to reforms, and Euro Atlantic integration of Montenegro. As well as with the Russian Federation. On the basis of the principles of international law, we will develop bilateral relations with other states, as well.

In achieving these foreign policy goals and policy of the Government of Montenegro, the important role is given to the straightening of the institutional capacity of the Ministry of Foreign Affairs, especially regarding the international legal affairs and adequate organizing and building of a modern, professional and rational network of the diplomatic-consular missions. It certainly includes appropriate protection of our citizens abroad and provision of consular services.

Honorable members of the Parliament,
Ladies and Gentlemen,

Deputy Prime Minister for European Integrations dr. Gordana Đurović, economist, born in 1964, preceding Minister for Foreign Economic Relations and European Integrations;

Deputy Prime Minister for Economic Policy dr. Vujica Lazović, economist, born in 1963, the Dean of the Faculty of Economics in Podgorica;

Minister of Foreign Affairs Milan Roćen, born in 1950, graduated at the Faculty of Political Sciences, earlier Ambassador of the State Union Serbia and Montenegro in Moscow and Head Councilor of the Prime Minister for Political and Military affairs;

Minister of Finance dr. Igor Lukšić, economist, born in 1976, thus far Minister of Finance;

Minister of Defense Boro Vučinić, lawyer, born in 1954, thus far Minister of Environmental Protection and Urban Development;

Minister of Interior Affairs and Public Administration Jusuf Kalamperović, lawyer, born in 1945, thus far Minister of Interior Affairs;

Minister of Justice Miraš Radović, lawyer, born in 1959, the Judge of the Supreme Court of the Republic of Montenegro;

Minister for human and minority rights protection Fuad Nimani, graduated at the School of pedagogy, born in 1948, previous Mayor of the Municipality of Ulcinj;

Minister of Education and Science dr. Slobodan Backović, physicist, born in 1946, thus far Minister of Education and Science;

Minister of health, labor and social welfare dr. Miodrag Radunović, born in 1959, graduated at the Faculty of Medicine, member of the Parliament of the Republic of Montenegro;

Minister for economic development Branimir Gvozdenović, Graduated at the Electro-Technical Faculty in Podgorica, born in 1961, thus far Deputy Prime Minister for Economic Policy and Industry System;

Minister of Maritime Affairs, Transportation and Telecommunications dr. Andrija Lompar, Graduated at World Maritime Faculty in Sweden, born in 1956, professor at the Maritime Affairs Faculty in Kotor, earlier Minister of Maritime Affairs and Transportation;

Minister of Tourism and Environmental Protection Predrag Nenezić, economist, born in 1970, thus far Minister of Tourism;

Minister of Agriculture, Forestry and Water Management Milutin Simović, graduated at the Faculty of Agriculture, born in 1961, thus far Minister of Agriculture, Forestry and Water Management;

Minister of culture, sport and media Predrag Sekulić, lawyer, born in 1964, member of the Parliament of the Republic of Montenegro and the Chairmen of the Board for Political system, Judiciary and Administration;

Minister without portfolio Suad Numanović physician, graduated at Faculty of Medicine, born in 1960, thus far Minister without portfolio.

I assure you that the Government and I as its Prime Minister will be your partner, open for cooperation and initiatives for issues important to realization of the European perspective of Montenegro.

I thank you for your attention and I expect your support to presented program and to Cabinet members of the Government of Montenegro.