Press release from the 44th Cabinet session

At today's 44th session chaired by Prime Minister Milojko Spajić, the Cabinet adopted the Decree amending the Decree on the implementation and use of funds from the European Union's Instrument for Pre-Accession Assistance (IPARD III Programme). This Decree facilitates the implementation of the IPARD III Programme, aiming to prepare Montenegrin farmers for EU membership by maximizing the utilization of IPA III funds for agriculture and rural development. The expected outcomes include improved product quality, increased production volumes, enhanced competitiveness, and adherence to EU food safety standards in both primary and processing sectors. The programme will finance investments for modernizing farms, improving and constructing new processing capacities, as well as enhancing rural infrastructure and tourism. The total non-refundable support for agricultural producers amounts to €81,975,947, with the EU contributing €63 million (75%) and Montenegro providing €18,975,947 (25%). The amended Decree defines the usage of support funds from the IPARD III programme, eligible beneficiaries, sectors, investments, and costs, the conditions required for obtaining non-refundable funds, and the procedures for field and administrative control. This provides users with a clear overview of the conditions and procedures for accessing investment funds and encourages better utilization of IPARD III programme funds.

The Cabinet adopted the Information on settling liabilities due on 21 July 2024 under the loan arrangements concluded between Crnogorska Plovidba and Exim China Bank, and Barska Plovidba and Exim China Bank, for which the State issued guarantees. In light of these companies' inability to meet their repayment obligations, the Government accepted the Bank's request to settle the due liabilities, totaling $4,269,843, of which $2,441,683 pertains to Crnogorska Plovidba and $1,828,160 to Barska Plovidba. The Ministry of Finance is tasked with submitting the necessary documentation to the Protector of Property and Legal Interests of Montenegro after payment, to take all necessary actions to protect the State's property interests.

The Cabinet reviewed the Report on state aid granted in 2023. According to available information submitted to the Agency, state aid granted in 2023 totaled €13.186 million. This is 23.24% more than in 2022 (€10.122 million) but 70.65% less than in 2021 (€44.932 million). The reporting methodology was changed, excluding the agriculture and fisheries sectors from the annual report, unlike previous years when support for these sectors was included in the total amount. The Agency highlighted Article 73 (9) of the Stabilisation and Association Agreement (SAA), incorporated into national legislation, specifying that this law does not apply to incentives for agricultural and fisheries development, which will be regulated by specific regulations in line with EU rules. Horizontal aid in 2023 accounted for 47.36% of total aid, while sectoral aid accounted for 38.86%.

The Cabinet adopted the Report on the work of the Commission for assessing damage from natural disasters for the period from December 2023 to July 2024. The Commission made its first decisions in April 2024, after receiving €200,000 from the Current Budget Reserve. During the reporting period, 232 decisions were made, with €117,300 paid out for 202 decisions, €12,022 reserved for 30 decisions pending due to incorrect bank accounts, and €10.984 under processing for 36 decisions. All decisions were unanimous. The Commission inherited many unreviewed requests from 2023, especially from municipalities in northern Montenegro hit multiple times by disasters. For example, Bijelo Polje submitted four requests for 113 individuals (totaling €495,850), Kolašin six requests for 353 individuals (€1,687,574), and Rožaje two requests for 72 individuals (€324,061). Significant requests were also received in 2024, including from Bijelo Polje (18 individuals, €39,150), Kolašin (10 individuals, €29,150), and Rožaje (165 individuals, €866,913.50) due to severe floods in late 2023. Additionally, 519 requests were submitted from Nikšić for earthquake damage in March 2024. Given the Commission's current lack of funds after fulfilling the existing decisions, the Ministry of Finance was tasked with considering additional funding.

The Cabinet adopted amendments to the Law on Internal Affairs to address the need for filling missing personnel capacities in the Ministry of the Interior to ensure smooth operation and further development. Hiring the missing staff will positively impact the work and motivation of current police officers by distributing the workload and ultimately improving the security sector and public trust in the police. The discussion highlighted the long-standing shortage of police officers, with 1,455 positions out of 5,127 systematized positions vacant, severely affecting operational capacity. The regular hiring process is too slow to meet urgent needs, so a special hiring process is proposed to quickly address specific needs. This includes hiring individuals with training or previous experience in the police or security-intelligence sector, as well as those with specific skills. Many such individuals are not currently employed and will be motivated to apply. Additionally, the preferential retirement procedure deadline is extended to 31 December 2028 to prevent further rapid reductions in police numbers. Besides improving personnel capacities, the law's provisions on asset and income reporting were also updated.