Press release of the 5th session of the Government of Montenegro

At its 5^th session held today, chaired by Prime Minister MEc Milojko Spajić, the Cabinet adopted the Information on the European Commission Report on Montenegro for 2023. The document outlines a brief overview of assessments of annual progress and general readiness for EU membership in the area of political criteria and chapters related to the rule of law (Chapters 23 and 24) and recommendations for enhancing the state of play in these areas, as well as the overview of assessment on annual progress and general readiness in separate chapters of the EU’s acquis communautaire. Also, a comparative analysis of annual progress and general readiness for EU membership in separate chapters of the EU acquis communautaire between the EC Report on Montenegro for 2022 and Report for 2023, was made, as well as a comparative analysis of the annual progress and general readiness for the EU membership of the Western Balkan, Turkey, Ukraine, Georgia and Moldova.

Decision on establishing the negotiation structure on Montenegro’s accession to the EU was adopted. By adopting the new Decision, legal assumptions were established for innovating the overall negotiations structure, i.e. conditions for better and more efficient coordination of negotiation process obligations in the upcoming period, considering the numerous structural and personnel changes that occurred by forming the new Government, as well as the need to fulfil the remaining obligations in the negotiation process in full capacity, enhanced and in a more quality and responsible manner. The Decision states that the negotiation structure includes: Negotiation Collegium, Chief Negotiator on the accession of Montenegro to the European Union, Rule of Law Council, Negotiation Team for conducting negotiations on Montenegro’s accession to the European Union and negotiation working groups for preparation and conducting negotiations of Montenegro’s accession to the European Union by separate negotiation chapters. Establishing the new structure will additionaly speed up the dynamics of negotiation process, i.e. fulfilling the closing benchmarks according to the EU acquis communautaire chapters, as well as interim benchmarks in chapters 23 and 24. Also, this Decision outlines the structure of each of the stated working bodies, under the obligation to introduce the position of the Chief Negotiator, who will perform duties of managing the work of the Negotiation Team and report on his work to the Government and the Minister of European Affairs.

The Cabinet established the Draft Law on the Amendments to the Law on Public Sector Accounting which, due to objective circumstances, proposes to delay the commencement of its enforcement by three years, instead of 1 January 2024 to 1 January 2027, in order to create conditions for implementation of the new accounting regulations. During discussion, it was highlighted that for the implementation of this Law it is necessary to provide an adequate and highly demanding IT solution, that would support keeping the budget accounting and financial reporting in compliance with accrual accounting principle, which differs to a great extent from the existing accounting information system, supported by cash basis accounting principle.

The Cabinet adopted the Decree on amending the Decree on criteria for internal organization and systematization of job positions in public administration bodies, which stipulates that National Office for negotiations on Montenegro’s accession to the European Union may be organized within public administration body in charge of European affairs, and it will be led by the Chief Negotiator. During discussion, it was concluded that by stronger positioning of the Chief Negotiator and his return in the negotiation structure, the initiated integration process of Montenegro’s accession to the EU will be accelerated.

The Cabinet adopted a Decision on establishing the Council on Innovation and Smart Specialisation to be chaired by the Minister of Education, Science and Innovation. In 2019 Montenegro adopted, under the official approval of the European Commission, a Smart Specialisation Strategy (2019 - 2024), which represents “Made in EU” approach to the optimization of investments in research and innovations in the EU regions and member states (including candidate states).  Smart Specialisation is often referred to as a horizontal strategy or comprehensive development strategy of Montenegro. Its modification towards the concept of “sustainable smart specialisation: S3 >> S4” on which the EU has insisted since the adoption of the Green Deal, has created the possibility that improved S3 Strategy of Montenegro (S4.me) encompasses development based on knowledge, under rational use of resources and adhering to international conventions and objectives in terms of reducing negative impact on climate changes.

The Cabinet gave consent to the draft Decision on establishing coefficients for salaries of the employees in the Public Institution “Museum” Bijelo Polje. In compliance with the Law on Wages of Employees in the Public Sector, the Decision creates conditions for the implementation of Branch Collective Agreement in the area of culture, related to establishing wages coefficient for employees in this Institution, subject to the level of education qualification, complexity of works, responsibility or other elements relevant for evaluation of certain work.

The Cabinet issued the Urban-technical conditions for the development of technical documentation for the construction of electric power production facility from renewables resources - wind power plant “Sinjajevina – Part I”, and upon request of “ENERGY 2“ d. o. o. Podgorica. The location for the construction of the facility is the land in the area of CM Lipovska Bistrica, Kolašin Municipality, of total surface area approximately 279 ha. According to the submitted preliminary assessment, the construction of 17 wind turbines, of total installed power 112.20 MW, has been envisaged.

Information on the 17^th meeting of the Board of Directors of AD “Plodovi Crne Gore“, Podgorica held on 3 November 2023, in relation to making decisions on discharge and appointment of the CEO and Company Secretary was adopted. The Information states that the Company was founded in 2004 as a joint stock company, in which the Government’s share is 25.96%, the Capital City share 52.74%, Association of agricultural fruit and vegetables producers “Ratar” 10.65% and Association of agricultural producers “Malesija” 10.65 %. Although the Company was established with the goal to purchase oversupply of agricultural products, its overall property was leased out, so the business activities actually imply rent collection and provision of wages and other expenditures from these funds, which is absolutely of no interest to the State or agricultural producers for whom it was established. Given that the Company’s Board of Directors, when making disputable decisions, failed to take into consideration the proposals of the Government representatives to submit the required documentation, the Government assigned the Ministry of Agriculture, Forestry and Water Management to submit the Information to the Protector of Property and Legal Interests for taking further actions and establishing if any financial damage was done to the Company and the State. Also, the Ministry was assigned to prepare and submit to the Cabinet, within 7 days, the Analysis on business operations of the company “Plodovi Crne Gore” AD, with proposal for measures, in cooperation with the Capital of Podgorica and other shareholders.

The Cabinet adopted the Information on the implementation of platform for Certification Authority (CA) and Information system for electronic management of documents and management of Cabinet electronic sessions process. The implementation of Certification Authority (CA) – Ministry of Public Administration, in compliance with the Law on Electronic Identification and Electronic Signature, provides electronic trust services to state administration bodies, i.e. provides and issues digital certificates for employees in the public administration bodies (according to the valid Decree on organization and manner of work of the State administration for 19 ministries and 25 administration bodies). Electronic identification is the process of using identification data in electronic form, which uniquely represents a natural person, legal entity or State authority. Since the current systems were used from 2010 to 2023 and function on outdated platforms, new systems will be established, based on most modern technologies and in accordance with the world best practices and international standards governing this area and the area of information security. With a view to implementing the Project, the Cabinet made conclusions delegating tasks to competent authorities to form teams for monitoring, management, development and a team for analysis of business process and testing.

The Cabinet adopted the Information on entering into a Framework Agreement on international cooperation between the Ministry of Health of Montenegro and Assistance Publique – Hopitaux de Paris, AD-HP International and adopted the draft Agreement. The Agreement outlines several activities as follows: exchange of health care workers and students, in accordance with regulations that are in force in both states; exchange of good practices in the area of health protection; clinical research programmes, and any other area on which the parties agree. As stated in the discussion, in addition to a significant contribution to the enhancement of health system via specialisation of health personnel and other planned types of cooperation, the signing of this Agreement will significantly improve the development of bilateral and friendly relations with France. The Agreement also envisages that AP-HP hospital may delegate the implementation of any requests for specific expertise, more precisely development of studies preceeding the construction of new university hospital, to its private affiliate AP-HP International. In that event, the request for specific expertise will be the subject of agreement between AP-HP International and the Ministry of Health of Montenegro.

The Cabinet adopted the Information in the area of prevention of money laundering and terrorism financing. The Information states that this year the fifth round of evaluation by Moneyval (Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism), as a European Council body, which is expected to adopt the Report in mid-December, which, in case the assessment is poor, might put Montenegro on FATF (Financial Action Task Force) grey list, i.e. list of states that do not implement or insufficiently implement anti-money laundering and terrorism financing measures. The evaluation was carried out before the commencement of the term of office of this Government, therefore, since it implies as-is state, it was concluded that potential putting of Montenegro on the grey list, cannot be considered as the result of this Government. It was concluded during discussion that putting the State on the grey list might result in lowering its credit rating, as well as downturn in the implementation of foreign investments coming from the states that fully observe the rules in the area of prevention of money laundering and financing of terrorism. In that regard, the Government will take all necessary measures for Montenegro to fulfil obligations in this area, and particularly the adoption of Draft Law on the Prevention of Money Laundering and Terrorism Financing, which has been already drafted, because this Government recognizes the importance of this issue and aims to regulate the area of money laundering and terrorism financing in compliance with the requirements of the Council of Europe and the EU as a priority. Furthermore, it was concluded that the new Draft Law on Restrictive Measures should be submitted to the European Commission for giving their opinion, in order to demonstrate the readiness of Montenegro to fulfil all of its obligations, as required by both Moneyval and the European Commission. In that regard, the Cabinet made decisions according to which the competent ministries were assigned to finalise these tasks with utmost priority. Moreover, the competent ministries were assigned to harmonise the provisions of the Draft Law on Amendments to the Law on Games of Chance with the Law on the Prevention of Money Laundering and Terrorism Financing as soon as possible, and also submit the Proposal for Amendments to the Criminal Code of Montenegro to the Government for consideration and adoption.