Press release from 20th Cabinet session

At its 20th session held on 15 April 2021, chaired by Prime Minister Zdravko Krivokapić, the Montenegrin Cabinet adopted the Decree on Amendments to the Decree on the Organisation and Manner of Work of the State Administration. In order to more efficiently implement the revenue policy, the proposed changes merge the competencies of the previous Revenue Administration and the Customs Administration. It was estimated that the newly established Revenue and Customs Administration will more effectively implement tax and customs policy. Among the advantages of this change, the following are especially emphasised: fiscal effect (20 percent lower costs), synergetic effect - one control unit for tax liabilities, games of chance and customs, and increased efficiency in detecting customs and tax violations. Also, the new organisational model will make it much easier and more efficient to collect excises and taxes that many products have.

The Proposal of Amendments to the Draft Law on Amendments to the Law on Protection of Population against Communicable Diseases was adopted. The proposed amendments, in order to more efficiently perform inspection supervision and delimit the competencies of inspection bodies, precisely define open public space. The harmonisation with the constitutional provision to guarantee the freedom of peaceful assembly, and to be able to temporarily restrict it by the decision of the competent body, in accordance with the law, has also been done. Also, measures are envisaged to prevent the spread of infectious diseases in passenger railway vehicles, as well as on vessels that include all boats, yachts, ferry and passenger ships and floating facilities which throughout the year, and especially during the summer season, perform transport of passengers and goods, and which sail in the internal waters and the territorial waters of Montenegro.

The coronavirus outbreak required, among other things, the prescribing of the Government's competence to make decisions that do not only affect the field of public health. In that sense, it was necessary to specify the role of the Government regarding the entry into Montenegro from countries with unfavourable epidemiological situation, ban, i.e. restriction of work of companies and entrepreneurs, as well as performing other activities that affect the economic environment. It is envisaged that the Government will determine these measures on the proposal by its working body.

In accordance with the established practice of Montenegro informing the European Commission twice a year on the activities it implements within the pre-accession process, the Cabinet adopted the First Annex to the European Commission Report on Montenegro 2021. With this document Montenegro informs the European Commission about the political and economic criteria, i.e. about the progress in assuming the responsibilities of membership for 33 negotiating chapters, for the period 1 January – 31 December 2020. The Annex submitted by Montenegro represents a significant starting point for the European Commission in drafting its annual Report for Montenegro, which states the results achieved and makes recommendations for further work. On that occasion, the Cabinet assessed that the successful preparation of the document showed a high level of administrative capacity of all bodies involved in the negotiation process, as well as that the implementation of all activities within the EU integration process is proceeding as planned.

The Regulation on Amendments to the Regulation on the Implementation and Procedure for the Use of Funds from the Instrument for Pre-Accession Assistance of the European Union (IPARD II programme) was adopted. The goal of the Programme is to prepare Montenegrin farmers for EU accession, by using the funds from IPA II - agriculture and rural development as much as possible, which will have the effect of improving product quality, increasing production volume, greater competitiveness and achieving EU food safety standards in the primary and processing sectors. In November 2020, a proposal for amendments to the IPARD II programme was adopted, which made certain terminological adjustments for already existing measures 1 and 3 (whose implementation is ongoing), followed by a detailed elaboration of Measure 7 - "Farm diversification and business development" and a change in the budget allocation of the Programme regarding the Measure 7. At the beginning of February this year, Montenegro was informed that the proposed amendments to the Programme were adopted by the European Commission, which created the conditions to amend the current Regulation on IPARD II measures, in a way that will prescribe a new measure "Farm diversification and business development". At the same time, this proposal amended the legal and technical nature of the terminological harmonisation of certain terms, conditions and criteria prescribed by the IPARD II programme.

The Cabinet adopted a Decision on the adoption of the Spatial Plan for the Municipality of Plav. The existing Spatial Plan was made for the period until 2020, with guidelines for the post-planning period until 2025, and covers the territory of the newly formed municipality of Gusinje. The basic concept of land use defined by the new Spatial Plan is the rational use of land.

The Decision on amending the Decision on the establishment of the Limited Liability Company for the Transport of Passengers and Goods in Air Transport "ToMontenegro" was adopted, changing the corporate headquarters.

The Cabinet passed a Decision on temporary restriction of exports of certain wood assortments.

Due to the significant outflow of wood assortments which occurred due to insufficient control and records of execution of forest use contracts from 2010 to 2015, the Cabinet was forced to introduce export restrictions in accordance with the Law on Foreign Trade in this area. It was stated that the export of wood raw materials has been stopped, and that the export of processed wood is significantly increasing, which were the goals of the decision. Further implementation of the Decision on temporary restriction of exports of certain wood assortments will prevent shortages of wood assortments on the domestic market, and companies will have more stable business. The basic raw material will be processed in Montenegro and wood products with added value will be exported, while the citizens will have a secure supply of firewood. Also, the application of this decision will improve the use of wood from legal sources and will reduce illegal logging.

The Report on the forest health status in 2020 was also adopted.

The Cabinet adopted the Information on the signing of the Cooperation Programme between the Ministry of Foreign Affairs of Montenegro and the Ministry of Foreign Affairs of the Republic of Kazakhstan for the period 2021-2023 and accepted the Cooperation Programme. Since the relations of Montenegro of the Republic of Kazakhstan are traditionally friendly and open, the Programme envisages intensification of political dialogue, further development of bilateral relations through joint activities in organising official visits, political consultations, strengthening the bilateral legal framework, including economy, health care and mutual legal assistance. The Programme, among other things, envisages the improvement of cooperation in the field of education, culture, art, sports and youth policy.

The Information on the need to intensify activities and monitoring in the field of prevention of money laundering and terrorist financing was adopted. The Information pointed out the key segments of the fight against money laundering and terrorist financing, as well as the importance of Montenegro's international obligations in this area, problems on this path, planned legal solutions and strategic documents, and stakeholders in accordance with applicable regulations. In addition, given the need for stronger, better and more fruitful coordination in this area, it is proposed to form an interdepartmental working group whose primary task would be to improve the situation through various modalities - cooperation, coordination, proactive action in the form of concrete proposals, etc.

On that occasion, the Ministry of the Interior, in cooperation with the Ministry of Foreign Affairs, the Ministry of Finance and Social Welfare and the Central Bank of Montenegro, is in charge of forming an interdepartmental working group to intensify activities and monitoring in the field of money laundering and terrorist financing. The work of the interdepartmental working group will be coordinated by the Ministry of the Interior.

The Cabinet adopted the Report on the implementation of the 2020 Action Plan for the implementation of the Strategy for the suppression of illicit possession, abuse and trade in small arms and light weapons and ammunition from 2019 to 2025, as well as the Report on the Financial Intelligence Sector of the Police Directorate in 2020.

The Information on the report on the work on the priority development project "Science and Technology Park of Montenegro" for 2020, as well as the Report on the functioning of the Limited Liability Company "Science and Technology Park of Montenegro" in the period from 1 January 2020 to 31 December 2020 and the Financial Report for 2020.

The Cabinet adopted the Tenth National Report on the Implementation of the Amended European Social Charter for 2020. This year's report was prepared in accordance with the prescribed method of reporting. Given that the thematic group "Health, Social Security and Protection" is of the utmost importance for the formulation of measures to be implemented during the crisis caused by the COVID-19 pandemic, a novelty for this year's reporting cycle is the obligation to provide information related to the pandemic.

The Rulebook on the internal organisation and systematisation of the Human Resources Management Authority was adopted.

The Cabinet adopted the Proposal to amend the Cabinet Conclusions, number: 04-812/2, dated 19 February 2021, which creates legal and administrative conditions for the implementation of the earlier decision on the sale of the Mercedes-Maybach passenger motor vehicles, in accordance with positive legal regulations.

The Information for the payment of funds in the amount of EUR 3,000,000.00 to the company "ToMontenegro" LLC Podgorica was adopted. On that occasion, the Ministry of Finance and Social Welfare was instructed to pay the amount of EUR 3,000,000.00, which increases the capital of the Company to EUR 23,000,000.00. The discussion emphasised that the Airline will use the approved funds to provide the necessary conditions for the normal functioning of the company in order to start performing its activities as soon as possible.