Press release from 26th Cabinet session

The Montenegrin Cabinet, at its 26th session held on 1 June 2021, chaired by Prime Minister Zdravko Krivokapić, adopted the Draft Law on Ratification of Protocol I of the Free Trade Agreement between Montenegro and the Republic of Turkey and Protocol III on Trade in Services of the Free Trade Agreement between Montenegro and the Republic of Turkey. The proposed law should address the problem of a low degree of mutual liberalization in trade in agricultural products and the lack of benefits in trade in services. The discussion noted that liberalization will additionally affect the arrival of foreign investors in Montenegro in the agricultural and service sector.

The Cabinet adopted the Draft Law on Ratification of Additional Protocol 6 on Trade in Services of the Agreement on Amendment and Accession to the Central European Free Trade Agreement, which aims to develop and expand cooperation towards achieving gradual liberalization and mutual opening of service markets, in the context of European integration and taking into account relevant provisions of the General Agreement on Trade in Services (GATS) of the World Trade Organisation. The application of regulations will enable the placement of Montenegrin services on the market of CEFTA parties through cross-border provision of services, commercial presence or temporary entry and stay of natural persons for business purposes.

The Cabinet adopted a Decree on more detailed criteria and methodology for determining the market value of real estate. The decree defines more detailed criteria and methodology necessary for determining the real estate tax by local self-government bodies.

The Decision on amendments to the Statute of the Limited Liability Company for the transport of passengers and goods in air transport "ToMontenegro" was adopted.

The Cabinet adopted the Information on the starting balance of deposits and outstanding liabilities of the budget of Montenegro on 01.01.2020. It was determined that the final balance of deposits of the budget of Montenegro on 31 December 2019 amounts to EUR 545,139,025.23, the final balance of outstanding budget liabilities amounts to EUR 20,554,973.12, while the final balance of undue budget liabilities amounted to EUR 101,681,654.51. Pursuant to the Law on Budget and Fiscal Responsibility, these final balances will be recorded as starting balances of deposits, outstanding and undue liabilities and will be the basis for the preparation of the Law on Final Account of the Budget of Montenegro for 2021.

The Information on the provision of funds from the Current Budget Reserve for the smooth functioning of the Municipality of Tuzi was adopted. The Information states that, in order to ensure the smooth functioning of local self-government and orderly financing of legally established obligations, the Ministry of Finance and Social Welfare in December last year, although the Municipality of Tuzi did not meet the conditions for using the Equalization Fund for this year, gave a positive opinion on the budget of this municipality for 2021, which, among other things, plans a transfer from the state budget in the amount of two million euros. On that occasion, the Ministry of Finance and Social Welfare was instructed to pay EUR 500,000.00 to the Municipality of Tuzi from the Current Budget Reserve, while the remaining amount of the planned transfer will be paid by the end of the year, in accordance with the dynamics determined by the Ministry.

The Cabinet adopted the Basis for conducting negotiations on concluding the Regional Agreement on Freedom of Movement and Residence of Citizens of Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia and gave consent to the Draft Agreement. Expressing readiness to strengthen regional cooperation and mutual understanding and taking into account the importance of free movement of people, the Cabinet noted that the text of the agreement was based on the principles of international law and good relations of the signatory countries in order to enhance cooperation and seek to mutually facilitate travel conditions by simplifying administrative procedures for the citizens of the Western Balkans. The conclusion of the agreement is foreseen by the Action Plan for the Common Regional Market (CRM), which was adopted at the Western Balkans Leaders' Summit in Sofia, and represents a contribution to economic development and increased economic growth, and ensures progress and the European perspective of the region.

The Cabinet considered the Initiative to initiate proceedings to assess the constitutionality and legality of the Rulebook on Internal Organisation and Systematization of the Ministry of Education, Science, Culture and Sports and, in this regard, concluded to submit an Opinion to the Constitutional Court proposing rejection of the Initiative in its entirety since no regulation has been violated, nor has any employee right been violated.

The Cabinet also adopted the Proposal of Amendments to the Draft Law on Amendments to the Law on Excise Duties, which was prepared by the Ministry of Finance and Social Welfare.