Press release from 22nd Cabinet session

At the 22nd session held on 29 April 2021, chaired by Prime Minister Zdravko Krivokapić, the Montenegrin Cabinet adopted Measures to support the economy and citizens in the second quarter of 2021.

The Information on the European Union support programmes to Montenegro for 2020 was adopted. During 2020, the preparation and implementation of projects covered by the 2014-2020 perspective (IPA II) continued. However, the COVID-19 pandemic significantly affected project activities and caused reallocations of originally planned IPA funds. Recognising the efforts of the Government of Montenegro to implement preventive, primarily health measures, but also concerns about economic developments after the end of the pandemic, the European Union decided to financially support Montenegro in implementing measures to address the effects of the epidemic. The European Union will, by reallocating funds from the approved programmess IPA 2016, IPA 2018, IPA 2019 and IPA 2020, support Montenegro in the fight against the spread of the virus and remediation of economic consequences of the pandemic with EUR 53 million.

The Information states, among other things, that 191 projects with the participation of Montenegrin organisations and institutions have been contracted within European Territorial Cooperation programmes, 134 within trilateral and transnational programmes, worth about EUR 195.4 million, of which about EUR 36 million for Montenegrin partners, and 57 under bilateral programmes, totaling EUR 21.08 million. In 2020, new projects were approved under trilateral and transnational programmes, as well as projects under bilateral programmes with Albania, Kosovo and Serbia. Also, a call was published within the Mediterranean Transnational Programme.

The Information on the European Union support programmes for Montenegro for 2020 will be submitted for consideration to the competent working body of the Parliament of Montenegro.

The Cabinet adopted the Decision on giving consent to the Decision on the abolition of the regional organisational unit of the Terminal Air Traffic Control “Kraljevo” - Ponikve Air Traffic Control. One of the steps in order to rationalize the business when it comes to terminal air traffic control is to change the operational concept of providing services in the airspace of the Ponikve Air Traffic Control. The application of the new technological solution and changes in the organisation of work imply that the provision of air traffic control services at the airport Užice/Ponikve will be stopped and that the provision of flight information services will continue. Thus, the Ponikve Air Traffic Control ceases to operate, while the Air Traffic Control Kraljevo continues to provide services for which the Ponikve Air Traffic Control was responsible. 

The Decision on establishing the National Control List of Weapons and Military Equipment was adopted, which ensures efficient and adequate application of the Law on Foreign Trade in Weapons and Military Equipment and its harmonization with the EU List. The National Control List of Weapons and Military Equipment covers 22 categories of weapons, military equipment and related technologies and describes the goods under which licenses will be issued for export, import, brokering and provision of technical assistance services.

The Cabinet adopted a Decision amending the Decision on the adoption of the Detailed Site Plan "Veliki pijesak", Municipality of Bar. The amendment adds a new article which prescribes the termination of the validity of the previous planning document.

The National Programme of Priority Activities in the Field of Climate Change Mitigation and Adaptation within the Cooperation with the Green Climate Fund 2021-2023 was adopted. This document defines a list of priority activities, i.e. projects in the field of climate change mitigation and adaptation for cooperation with the Green Climate Fund (GCF). In addition, this document defines the national institutional framework for cooperation with the GCF, within which the responsibilities of the competent departments/institutions and advisory, i.e working bodies in the process of approving the proposed projects are delegated. Also, within the document, for the first time, a methodology for evaluation and prioritization of projects/programmes from the National Programme of Priority Activities is defined, whose implementation will achieve full compliance of proposed projects with the principles, objectives and results of GCF, as well as compliance with national priorities, policies and strategic documents.

GCF is a new global fund established to support developing countries in their efforts to respond to the challenges of climate change. GCF provides support to developing countries in their efforts to limit or reduce greenhouse gas emissions, as well as to adapt to the negative impacts of climate change.

The Cabinet adopted the Proposal of Amendments to the Draft Law on Amendments to the Law on Contributions to Compulsory Social Insurance. The amendments propose that the highest annual base starting from 2021 will be determined based on the movements in the average gross salary in Montenegro in the previous calendar year. The aim of the amendment is to ensure the determination of the maximum annual base on the basis of reference values (average gross earnings), and not as before on the basis of a fixed amount. In that way, clear criteria will be provided on the basis of which the maximum annual base for the payment of contributions is determined, as well as the manner of its determination on an annual level. 

 In this way, the Government is committed to equalizing business and social differences, and not, as before, protecting the richest with the highest incomes in Montenegro.

The Cabinet adopted the Proposal of amendments to the Draft Law on amendments to the Law on Value Added Tax. The proposed amendment provides for the taxation of eggs at a lower rate, in order to align the existing solution with the acquis communautaire, and in particular with Council Directive 2006/112 EC on the common system of value added tax.

The Cabinet adopted the Proposal of Amendments to the Draft Law on Amendments to the Law on Personal Income Tax. The amendments propose that the taxation of undeclared income should be done at a rate of 80%. The goal of the planned changes is to improve the efficiency of the tax system and prevent abuses that result in the possession of property that cannot be justified by the legal income of a natural person. Standardisation of the procedure for determining the origin of property enables the achievement of not only fiscal goals, but also social goals because the differences in the material and social position of taxpayers are reduced. At the same time, the taxation of property whose origin cannot be proven by legal income is one of the effective tools in the fight against corruption.

Also, the amendment proposes that the employer can exercise the right to exemption from payment of personal income tax from Article 32c of this Law from 1 January 2021. This norm has retroactive effect, because this amendment is envisaged due to the economic and health situation in Montenegro and the decline in economic activity caused by the COVID-19 pandemic.

Among other things, it is proposed to conceptually harmonize the provisions contained in the Law on Personal Income Tax with the Law on Life Partnership of Persons of the Same Sex.

The Cabinet adopted the Final Report on the Implementation of the Public Administration Reform Strategy 2016-2020. The Report contains key results achieved, data on the financial sustainability of the reform, key reasons that led to the failure to achieve performance indicators, part of the findings of the mid-term evaluation of the Strategy, as well as recommendations for the next period of strategic planning in public administration reform. The key findings from this Report showed that the Public Administration Reform Strategy 2016-2020 in terms of performance indicators was implemented at the level of about 44%, while the level of unrealized performance is at the level of 56%, which indisputably shows that no results have been achieved nor the key goal to create efficient and service-oriented public administration.

The Information on the implementation of personnel planning in state administration bodies and services of the Government of Montenegro and on the legal obligation to enter data into the Central Personnel Records was adopted.

The Cabinet adopted the Information on the report on the work of the Limited Liability Company Innovation and Entrepreneurship Centre "Tehnopolis" - Nikšić for 2020 and the Report on the operations of this company. Also, the Cabinet gave its consent to the Work Programme of "Technopolis" with the financial plan for 2021.

The Information on the development of the National Strategy for the Fight against Transnational Organized Crime was adopted. The discussion stated that the unwavering, systemically based, organized fight against organized crime is one of the key goals that the Government has set for itself, for the general prosperity of Montenegrin society. The National Strategy for the Fight against Transnational Organized Crime in Montenegro should serve as a comprehensive strategy that refers to the synergy of all security services and other bodies and institutions involved in the fight against organized crime. It was especially emphasised that only true commitment and effort not only of the Government, but also of the entire state apparatus, with close cooperation and coordination with civil society, non-governmental organisations and international partners, as well as determination of the political will of the Government to work vigorously to exterminate transnational criminal organizations, guarantee success.

On this occasion, the Ministry of the Interior is in charge of forming an inter-agency, i.e. inter-departmental working group for the development of the National Strategy for the Fight against Transnational Organized Crime. The work of this working group will be coordinated by the Minister of the Interior.

The Cabinet adopted the Information on the implementation of the conclusions of the Government of Montenegro no. 04-812 / 2 of 19 February 2021, no. 04-915 of 4 March 2021 and no. 04-1961 / 2 of 15 April 2021, concerning the procedure for the sale of a passenger motor vehicle "MERCEDES BENZ", model "MAYBACH S 650", registration marks PG - HM 542. On this occasion, the Cabinet accepted the Assessment Report on the market value of vehicles, prepared by the Agency for Assessment of Market Value of Assets, Court Expertise, Consulting and Energy Efficiency "ANZAS AGENCIJA" Ltd. from Podgorica and accepted the text of the Sale Agreement, which allows the implementation of the procedure prescribed by law which includes the formation of a commission for the sale of vehicles and the publication of an international public invitation to participate in a public tender for the sale.

The Information regarding the termination of the concession agreement, which envisages the construction of small hydroelectric power plants on the Murinska and Komarača watercourses, was adopted. Assessing that the concessionaires had not fulfilled their contractual obligations within the given deadline, the Cabinet instructed the Ministry of Capital Investments to undertake the necessary activities and implement the procedures for termination of concession contracts.

The Cabinet adopted the Information on the implementation of the initiative for the construction of the South East European International Institute for Sustainable Technologies (SEEIIST) in Montenegro. The Information states that the next step in the realization of this important project is the selection of the location of the SEEIIST Institute, which should be known by the end of 2021. The commission composed of external experts, outside the countries of Southeast Europe, is working on defining detailed technical conditions and needs, i.e. basic criteria for site selection by the end of 2021. It was stated that Montenegro has the capacity to provide a site for the construction of the SEEIIST Institute, which would be of immeasurable importance for the country, but also for the entire region. As the ultimate goal of the project is to treat patients in the most modern way, SEEIIST actually has a multiple mission in the region, and that is to promote technological development and research in the field of biomedicine. Also, such a large scientific research infrastructure, which will initiate scientific excellence, prevent the outflow of talent, encourage innovation, mobility, internationalization and knowledge sharing, as well as the development of other complementary technologies, especially in the digitization and use of green infrastructure. In that context, the Ministry of Education, Science, Culture and Sports is in charge of forming an inter-departmental working body in cooperation with the Prime Minister's Office, which will be in charge of implementing the initiative for building the SEEIIST institute on the territory of Montenegro.

The Report on the implementation of the 2020 Plan for the Implementation of the Strategy for the Development of Sports in Montenegro for the period 2018-2021 was adopted. 

The Cabinet postponed the decision on the Draft Law on Amendments to the Law on the Judicial Council and Judges and the Draft Law on Amendments to the Law on Courts for one of the next sessions.