Press release from the 28th Cabinet session

The Montenegrin Cabinet held its 28th session today, chaired by Prime Minister Milojko Spajić. The Cabinet adopted the Draft Law on Information Security. In line with the ongoing process of alignment with EU legal standards, the draft law incorporates the latest EU directives, significantly enhancing the field of information security. This legislation lays the groundwork for establishing a sustainable system for efficiently detecting and defending against high-level cyber threats and incidents, ensuring the continuity of service provision in the event of future incidents. This contributes to the more effective functioning of the economy and society at large, as well as strengthening users' trust in the protection of their data within the electronic governance framework. The draft law defines key entities, such as critical information infrastructure operators, and outlines cybersecurity measures, including risk management measures. It also establishes a process for monitoring the implementation of these measures through the establishment of expert oversight, enabling regulatory oversight over key entities.

The Cabinet has approved a plan to acquire shares from minority shareholders of "Montenegro Railways" (ŽPCG) and "Maintenance of Railway Rolling Stock" (OŽVS) in order to facilitate the merger of these two companies as directed during the February 15 session. An analysis of the value of the shares held by minority shareholders, constituting 5.18% in ŽPCG and 8.15% in OŽVS, revealed a total value of approximately €1.83 million as of 31 December 2023. Negotiations with representatives of these shareholders have resulted in an agreement on the purchase price per share: €1.70 for ŽPCG and €2.10 for OŽVS, totaling €1.4 million for both packages. Considering the presence of shares held by individuals not covered by the minority shareholder packages (2.26% in ŽPCG and 4.25% in OŽVS), it is anticipated that some dispersed shareholders may participate in the stock exchange process. If the state were to acquire the mentioned share package from minority shareholders for less than €1.5 million, along with existing shares, it would enable the increase of the share capital to over 98% in ŽPCG and over 96% in OŽVS. Accordingly, the Government has approved the purchase of a maximum of 368,388 ŽPCG shares at a maximum price of €1.70 per share and a maximum of 366,597 OŽVS shares at a maximum price of €2.10 per share on the Montenegro Stock Exchange. Additionally, the Government has authorized the purchase of the aforementioned shares from dispersed shareholders up to a maximum amount of €100,000 if offers are made at the same price during the acquisition process.

The Cabinet adopted the Water Management Funding Programme for the year 2024. In order to finance obligations and needs related to water resource management, a budget of €491,200 has been allocated. This funding encompasses essential activities in water management, water protection, flood protection, efficient water usage, and the functioning of the Water Information System. Among other provisions, the Programme includes funding for data collection, drafting, and revision of planning and project documentation, without which the regulation of watercourses and proper water management would not be possible. In terms of water resource management, the largest portion of funds has been designated for watercourse regulation, regular maintenance, and condition monitoring. Additionally, funds have been allocated for the revision of cadastres, registers, plans, and programmes, particularly focusing on their alignment with EU legislation.

The Cabinet adopted the Report on negotiations between delegations of Montenegro and Bosnia and Herzegovina regarding the conclusion of the Agreement between Montenegro and Bosnia and Herzegovina on social security. The conclusion of the Agreement on social security between Montenegro and Bosnia and Herzegovina will enable the regulation of mutual relations in the field of pension and disability insurance, health insurance, unemployment insurance, and other matters within the domain of social security, particularly equalizing the rights of citizens based on residence and work in the contracting states. The Agreement is based on generally accepted principles and experiences of our country in this area, as well as standards provided for by EU Regulation No. 883/2004 on the coordination of social security systems. In this regard, the Cabinet has accepted the proposals for the Agreement between Montenegro and Bosnia and Herzegovina on social security and the Administrative Agreement for its implementation.

The Cabinet adopted an Information on the conclusion of a Protocol between the Ministry of the Interior of Montenegro, the Police Directorate, and the Ministry of the Interior of the Republic of Serbia, the Police Directorate on cooperation during the tourist season, and has accepted the Protocol text. In collaboration with Montenegrin police officers, Serbian police officers assist in improving communication with tourists and collectively contribute to creating a favourable security environment on the Montenegrin coast. The Information recalls that since 2012, Montenegro has continuously conducted the exchange of police officers with the Republic of Serbia to enhance security during the tourist season. Such cooperation strengthens security protection through the exchange of experiences and acts preventively against international criminal activities during the tourist season. Serbian police officers, working jointly with Montenegrin counterparts, assist in enhancing communication with tourists and contribute to fostering a favourable security atmosphere on the Montenegrin coast. As per the Protocol, at the request of the Montenegrin police, the Serbian police will dispatch three criminal police officers and three uniformed police officers to Montenegro from 1 July to 1 September, for periods not less than 20 days.

The Cabinet adopted an Information regarding the organisation of the Western Balkans Six (WB6) Leaders Summit on the Growth Plan, scheduled to take place on 15 and 16 May 2024 in Kotor. The Information underscores that the new Growth Plan for the Western Balkans will strengthen economic cooperation in the region and deliver tangible benefits for the region's countries through access to the EU's single market. It emphasises that successful implementation requires joint efforts and synergy among all regional states. In this context, ministerial meetings and regional summits of Western Balkan leaders have been held in Skopje and Tirana in recent months. At these gatherings, leaders, ministers from regional countries, and representatives of the European Union and the United States discuss the Growth Plan for the Western Balkans. This plan includes six billion euros in grants and loans to accelerate socio-economic convergence with the European Union, comprising two billion euros in grants and four billion euros in favourable loans guaranteed by the EU. In addition to leaders and ministers, partner organisations such as the Regional Cooperation Council, the European Bank for Reconstruction and Development, the European Investment Bank, the World Bank, the Transport Community, the Atlantic Alliance, the Energy Community, the Open Society Foundation, Respa, GIZ, high representatives of the European Commission, and others have been invited to the Summit.

The Cabinet adopted a Decision amending the Decision on the establishment of the Commission for the implementation of a public auction for the allocation of emission credits. Given that the Commission, based on the aforementioned regulations and prescribed documentation, makes decisions regarding the allocation of free emission credits, it was necessary to further regulate certain legal and technical issues to ensure they are properly formalized and issued by the relevant body established for this purpose.