Press release from the 23rd Cabinet session

At today's 23rd session chaired by Prime Minister Milojko Spajić, the Cabinet adopted the Draft Law on Amendments to the Tobacco Law. The proposed changes aim to simplify procedures, reduce time, and cut costs for businesses and entrepreneurs. Under the proposed amendments, the registration of business entities and obtaining a certificate of no criminal record would be done automatically by the competent authority. Additionally, the law would now regulate the operation of free zones and warehouses regarding tobacco trade, and measures would be introduced to prohibit various activities related to tobacco products, including their online advertising and remote sales. The duration of permits for tobacco processing and export would also be limited to five years instead of being indefinite. Tobacco processors would be required to sell processed tobacco to tobacco product manufacturers or exporters listed in the appropriate registries. Furthermore, the amendments align with laws prescribing fines for violations.

The Cabinet the Draft Law on the Agricultural Census 2024 with the Public Consultation Report. The purpose of this law is to obtain harmonized, internationally comparable data on the structure of agricultural holdings at the national level of Montenegro and to link information on structure with data on production methods, rural development measures, agroecological aspects, and other related information in line with new EU standards. The proposed regulation introduces a set of rules for the preparation, organization, and implementation of the agricultural census.

Additionally, the Cabinet adopted a decision to draft a capital budget to address the shortcomings of the current decision regarding the evaluation and inclusion of capital projects in the state's capital budget financing. The new decision defines conditions for capital budget preparation, highlights mandatory conditions for candidate projects, prioritizes projects in less developed municipalities in the northern region, and provides more points for projects with resolved expropriation. It also allows for the exclusion of projects recognised in the annual Budget Law but not initiated due to inadequate preparatory stages from the draft Budget Law for the next fiscal year.

Furthermore, decisions were made regarding amendments to the decisions on the formation of part of the mixed commissions for the implementation of agreements with the Serbian Orthodox Church, Jewish Community, and Islamic Community. These changes pertain to the personnel composition involving representatives of the Government.

The Government established the Council for Demography, headed by the Deputy Prime Minister for Demography and Youth and Minister of Sports and Youth, aiming to address demographic challenges effectively.

Moreover, the Cabinet adopted the Fisheries Sector Development Strategy 2024-2029 and the Action Plan for the Transposition, Implementation, and Enforcement of EU Legal Acquis, along with the Public Consultation Report. This strategic document aims to prepare the fisheries and aquaculture sector for the new phase of EU accession, ensure greater alignment with regional policies, particularly the General Fisheries Commission for the Mediterranean (GFCM), and address the European Green Deal and its implications. It predicts and establishes all necessary implementation mechanisms and builds overall capacities to support the fisheries sector.

The Cabinet also adopted the Concession Plan for the water sector for 2024 with the Public Consultation Report, allowing for the introduction of concession granting procedures as a form of encouraging private investments in activities of public interest for optimal utilization of natural resources.

Additionally, the Cabinet adopted the Action Plan for the Implementation of the Integrated Border Management Strategy for the period 2020-2024 for 2024 and adopted the Report on the Implementation of the Action Plan in 2023.

Furthermore, the Cabinet adopted the Report on the Implementation of the Obligations from the Programme of Accession to the European Union 2023-2024 for 2023.

The Cabinet adopted the Report on the Implementation of the Action Plan for the Implementation of the Public Information Strategy on Montenegro's Accession to the EU 2023-2026 for 2023 has been adopted, and the Action Plan for the Implementation of the Public Information Strategy on Montenegro's Accession to the EU 2023-2026 for 2024. The Action Plan for 2024 includes 202 activities aimed at increasing institutional efficiency in communicating the European integration process, strengthening the role of the media in informing citizens about the EU, enhancing the visibility of Montenegro's EU accession process in the international community, and reinforcing the role of the education system and local governments as promoters of EU values.

The Cabinet adopted an Information on the conclusion of the Agreement on Transport Support to the Armed Forces of Montenegro between the Ministry of Defence of Montenegro and the NATO Support and Procurement Organisation (NSPO), represented by the NATO Support and Procurement Agency (NSPA) regarding Montenegro's accession to the NSPA's NATO Transport System (NTS), and accepted the Agreement text.

The Cabinet adopted the Report on Public Debt as of 31 December 2023. Montenegro's total public debt on that date amounted to €4,126.81 million, or 60.27% of GDP. Considering the Ministry of Finance's deposits (including 38,477 ounces of gold), the net public debt stood at €3,974.40 million, or 58.04% of GDP. Compared to the same period in 2022, the public debt increased by €24.60 million due to borrowing and regular repayments, including exchange rate differences.

Additionally, the Cabinet adopted the Information on the state of public finances at the local level as of 31 December 2023. Based on reports from local self-government units, the Ministry of Finance analyzed public spending, revenue, and financial indicators compared to 2022. Total revenues of local self-government units in 2023 amounted to €486.26 million, a €65.24 million increase from 2022, while expenditures totaled €358.67 million, up by €18.26 million from 2022. Unpaid obligations of local self-government units as of 31 December 2023, amounted to €73.12 million, a decrease of €4.72 million compared to the same day in 2022, mainly attributed to reductions in loan and credit obligations. Furthermore, the Tax Administration is tasked with concluding protocols on debt repayment schedules with local self-government units, businesses, and institutions under their jurisdiction with outstanding tax liabilities. The Ministry of Finance is mandated to establish similar protocols with local self-government units regarding outstanding obligations related to transfer loans. Recommendations are also provided for local self-government units to optimize their workforce and restrict new hirings.

The Cabinet adopted the Information on the status of activities aimed at addressing the challenges outlined in the Implementation Report of the Summer Tourist Season Preparation Plan for 2023, and adopted the Summer Tourist Season Preparation Plan for 2024.

The 2024 plan encompasses various activities geared towards enhancing the overall tourism product. This involves improving infrastructure quality, services in tourism and related sectors, creating new tourist products targeting different tourist demographics and source markets, reducing the informal economy, promoting domestic employment, enhancing air accessibility, and increasing Montenegro's visibility as a tourist destination through both traditional and modern promotional methods. By implementing these activities, the groundwork is laid for creating a favourable business environment conducive to achieving positive outcomes. The aim of the Plan is to accelerate the integration and coordination efforts among state institutions and local institutions to ensure a successful summer tourist season and the creation of a high-quality, diversified tourism product.

The Cabinet adopted the Information on the signing of the Grant Agreement for the financing of the Project for the improvement of railway infrastructure and modernization of depots and workshops for maintenance of railway rolling stock.

Moreover, decisions were made regarding the dissolution of the Municipal Assemblies of Andrijevica and Šavnik, with interim committees appointed by the Government until their constitution.

The Cabinet also adopted the Information on the proceedings of the Municipal Assembly of Budva regarding the Decision on Warning ("Official Gazette of Montenegro", No. 22/24).

The Cabinet adopted the Information on the status of the Special Investment Programme of special importance for the economic and business interests of Montenegro as of 5 February 2024 (financial aspect). According to data provided by the Investment Agency, the total amount of funds deposited to investors for the purpose of investing in projects from the Development Project List in the tourism sector as of 5 February 2024 is 190,174,752 euros, while a total of 68,532,503 euros has been deposited into ESCROW accounts for the same purpose. For investments in agriculture and processing industries, a total of 250,000 euros has been deposited into ESCROW accounts, with the same amount being paid to the investor. The total amount of funds deposited to the Montenegro Innovation Fund for the development of innovation policy as of 5 February 2024 is 18,400,000 euros, while a total of 13,900,000 euros has been deposited into ESCROW accounts for this purpose. According to data from the Central Treasury Account, the total amount of funds collected for administrative fees amounts to 43,575,344 euros.

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