Press release from the 43rd Cabinet session

The Montenegrin Cabinet held its 43rd session, chaired by Deputy Prime Minister Aleksa Bečić.

The Cabinet adopted the Draft Law on deadlines for the settlement of monetary obligations. This proposed law aligns the deadlines for settling monetary obligations between economic entities, as well as between the public sector and economic entities, with Directive 2011/07/EU on combating late payment in commercial transactions. The new law aims to shorten these deadlines to improve the business environment and enhance liquidity, particularly for small and medium-sized enterprises (SMEs) that suffer significant impacts due to delayed payments. The current law does not adequately define terms related to the collection of undisputed claims, retention of ownership rights, and transparency, as stipulated by the Directive. The new legislation addresses these gaps. Additionally, the proposal reduces the special fee for costs incurred by the creditor due to the debtor's delay from 50 euros to 40 euros, in line with the Directive's minimum requirement. The implementation of the new law is expected to improve cash flows within the business sector and ensure creditors fully exercise their rights under the law.

The Cabinet adopted the Draft Law on the write-off of interest on overdue taxes. This proposed law will enable the write-off of calculated interest for tax debtors who submit all due tax returns by 31 December 2024 and pay the principal tax debt in full within 60 days from the start of the law’s application. The law aims to help taxpayers avoid problems arising from tax debt, such as account blockages and long-term illiquidity, and to ensure conditions for regular tax obligations in the future. The law's objectives include reducing tax debt, accelerating the collection of budget revenues from tax claims, avoiding consequences for taxpayers due to tax debt, and ensuring their long-term liquidity.

The Cabinet adopted the Draft Law on organic production along with the report from the public consultation. The new law regulates the principles of organic production, general and specific rules related to organic production, labeling, advertising, distribution, marketing, import and export, certification, official controls, and other issues significant for organic production. It provides a foundation for sustainable development of organic production and ensures the efficient functioning of the organic products market and fair competition. The law also aims to enhance consumer confidence and protect their interests. Importantly, it brings Montenegro closer to closing Chapter 11 in its EU accession negotiations. Montenegro has committed to aligning its national legislation with the EU’s legal framework in organic production, as part of its candidacy for EU membership.

The Cabinet adopted an analysis of the institutional and regulatory framework for the operation of public enterprises and majority state-owned companies. The Ministry of Finance, in cooperation with all relevant sectors, is tasked with:

• Preparing a draft document clearly defining state ownership policy in public enterprises and majority state-owned companies, with a focus on strengthening ownership functions and moving towards a centralized management model.
• Preparing a draft new legal framework for a comprehensive and unified system of management and oversight of the state enterprise sector, addressing all specifics related to the operation and business of these entities.
• Preparing a strategic document for managing public enterprises and majority state-owned companies with an action plan for further reform by the end of the first quarter of 2025.

The Cabinet adopted the Information on the need to consider the possibility of introducing a special criminal offense for attacks on individuals engaged in healthcare activities through amendments to the Criminal Code of Montenegro. The new offense would provide criminal law protection, primarily through general prevention by deterring potential offenders from such attacks and prescribing stricter criminal sanctions appropriate to the societal danger posed. Recognising the humanitarian nature of the medical profession, the Government aims to protect health workers who serve on the front lines of public health. The Ministry of Justice is tasked with considering the introduction of this special criminal offense and informing the Deputy Prime Minister for Political System, Judiciary, and Anti-Corruption.