Press release from the 40th Cabinet session

The Montenegrin Cabinet held its 40th session today, chaired by Deputy Prime Minister for Security, Internal Policy, European and Foreign Affairs Aleksa Bečić.

The Cabinet adopted the Draft Law on Ratification of the Agreement between Montenegro and the Republic of North Macedonia on Regulation of Mutual Property and Legal Relations. The agreement aims to regulate ownership rights and other real rights acquired by individuals and legal entities of one contracting party over movable and immovable property located in the territory of the other contracting party. These rights will enjoy the same legal protection before the courts and other state authorities as guaranteed to domestic individuals and legal entities. The agreement also defines that both parties will facilitate the acquisition of ownership and other real rights by individuals and legal entities of the other contracting party, regardless of the location of the legal transaction from which the legal basis for acquisition arose.

The Cabinet adopted the Decree on Payment of Compensation to Former Owners of Confiscated Property Rights in Cash for the Year 2024. Compensation to former owners, in accordance with the provisions of the Law on the Return of Confiscated Property Rights and Compensation, will be paid in annual installments. The payment will be made on 15 July each year based on final decisions submitted to the Compensation Fund by 31 December of the previous year, depending on the availability of funds in the Fund until their final payment. The budget for 2024 allocates €9,050,000 for compensation, and the Decree outlines the schedule and method of payment for the current year. Payments will be calculated based on 13% of the remaining unpaid amount of compensation determined by final decisions of the commissions. Each former owner or heir will receive payment according to their share (inheritance share) in the remaining unpaid amount of compensation determined by the Commission's decision, starting from 15 July 2024. The Decree stipulates that for enforcement decisions with compensation amounts not exceeding €10,000, the annual installment payment will be made in full.

The Cabinet reviewed the report on the implementation of the Capital Budget for the second quarter of 2024. The Montenegro Budget Law for 2024 allocates €240,012,958.82 for the Capital Budget to implement 332 activities (projects) with a total estimated value of €2.9 billion. These projects are managed through the Transport Administration and the Administration for Capital Projects. In the first six months, €61.2 million, or 26% of the total planned amount, has been spent. Of this, €5.7 million came from loans, and €4.73 million from EU donations (IPA projects). Compared to the same period last year when €36.69 million (18% of the planned amount) was spent, a significant improvement of 66% in execution dynamics for the first two quarters of this year was noted in the report. Pursuant to the conclusion of the Committee on Economy, Finance, and Budget from its Eighth Session held on 27 December 2023, the Government will submit the report to the Parliament of Montenegro.

Approval was granted to the State Property Administration to fill a position for the Director which was not included in the Personnel Plan for 2024. This appointment is necessary to ensure the functional operation of the body.

In order to ensure a quality reform of public administration in Montenegro, the Cabinet adopted the Decision on the establishment of a Coordination Team for the implementation of the Public Administration Reform. In December 2021, the Cabinet adopted the Strategy for Public Administration Reform 2022-2026, with an Action Plan for 2022-2024. The primary goal defined in this document is the joint construction of a responsible, efficient, transparent public administration focused on the needs of citizens and the economy. The effective coordination of this process, both at the political and administrative levels, is essential for the successful implementation of the Strategy.

The Cabinet endorsed the statement confirming, in accordance with the National Security Memorandum on Protective Measures and Responsibilities Regarding Transferred Defense Articles and Services from the United States of America, that Montenegro will use assistance from the United States in accordance with international humanitarian law and will facilitate the delivery of humanitarian assistance by the United States in conflict areas. The Memorandum stipulates that all countries receiving defence articles and, if necessary, defence services, must submit a written statement confirming that they will use US assistance in accordance with applicable international humanitarian law before receiving assistance. Moreover, the Memorandum requires countries that have already received or continuously receive this type of US assistance and are not in armed conflict to submit the relevant statements in writing within 180 days from the date of entry into force of this Memorandum. The intention of the Memorandum is to prevent the transfer of weapons that may lead to violations of both human rights and international humanitarian law. In this regard, the Cabinet accepted the text of the Statement and authorized the Minister of Defence to sign the document.