European Commission published its annual enlargement reports yesterday. We report the key findings of the Report on Montenegro in the area of democracy, rule of law and economic criteria:
While the conduct of the elections is mostly satisfactory overall, the legal framework requires a comprehensive reform and alignment with EU law of the election legislation, voting and candidacy rights restrictions, transparency, mechanisms of dispute resolution, and oversight of campaign finance and media. The majority of pending OSCE/ODIHR recommendations have not been addressed. Montenegro should further strive to align its electoral processes to highest democratic standards.
Parliament can exercise its powers in a mostly satisfactory way. Despite the persisting fragmentation of the parliamentary landscape, a majority has emerged since October 2023, ending a prolonged period of political instability. Consensus on key EU accession related reforms extended to both ends of the political spectrum and EU-related legislation was adopted by unanimity in Parliament. However, tensions and inter-ethnic polarisation has resurfaced, having an adverse impact on political stability. During the summer of 2024 the Parliament took some hasty legislative initiatives failing to apply the necessary transparency.
Montenegro has put in place a revised set of institutional structures that have been delivering adequately on the integration process. A new negotiation structure in charge of EU accession negotiations, headed by the Chief Negotiator, adequately fulfils its role of coordinating the country’s EU accession negotiations. The coordinating role of the Ministry of European Affairs should be strengthened, and additional resources and expertise added.
The government has been holding regular sessions. However, recurring internal rifts between certain ministers and the Prime Minister have undermined the government’s cohesion and overall effectiveness.
Civil society organisations (CSOs) in Montenegro operate in an enabling environment. The main legal and institutional framework for civil society to operate freely is in place. The role of civil society in policy making is formalised, yet at times purely symbolic. The Council for Cooperation between the Government and non-governmental organisations (NGOs) has not resumed work. Further efforts are needed to ensure genuine and meaningful cooperation between the government and CSOs.
Montenegro is moderately prepared in the area of public administration reform. Overall, limited progress was made. Some measures were taken to improve the capital investment planning and management, notably by setting up a Public Investments Council, but more effort is needed to improve the public investment management framework. The number of requests for public information and related appeals further increased.
Montenegro’s judicial system is moderately prepared and has made good progress on key judicial reforms and last year’s recommendations. A new strategic framework was put in place, and substantial amendments were adopted to the Law on Judicial Council and Judges, the Law on State Prosecution Service, and the Law on Special State Prosecution Service aiming to align them with the EU acquis and European standards, based on the European and Venice Commissions’ recommendations. Further efforts will need to be ensured to continue their alignment. Progress was made on transparent and merit-based high-level judicial appointments, following a long period of standstill. The Parliament appointed by qualified majority a new permanent Supreme State Prosecutor, three members of the Judicial Council and one judge of the Constitutional Court, and only a permanent President of the Supreme Court remains to be appointed.
Montenegro is between having some level of preparation and a moderate level of preparation in the fight against corruption. Good progress was made on key reforms and last year’s recommendations. The strategic framework has improved with the adoption of a new a new 2024-2028 Anticorruption Strategy, aiming to align it with European and international standards, by addressing prevention and repression of corruption, as well as international cooperation. Likewise, the legal framework was substantially upgraded with the adoption of a new Law on Prevention of Corruption and amendments to the Law on Confiscation, with the aim to align them with European standards by addressing existing loopholes. In addition, a new Law on lobbying was adopted, in line with the EU acquis and European standards. New guidelines were adopted to improve the use of plea bargain agreements by prosecutors and judges in corruption cases, including high-level corruption, to ensure an effective and deterrent criminal justice response.
The legislative and institutional framework on fundamental rights is largely in place and Montenegro continues to largely meet its international obligations on human rights. However, more effort is needed to fully implement this framework and to ensure access to justice and enforcement of rights in administrative and judicial proceedings, in particular for vulnerable groups. The most vulnerable groups in society (including Roma and Egyptians, persons with disabilities, LGBTIQ persons) continued to be subjected to discrimination, hate speech and hate crime. More effort is needed to effectively address all recommendations from the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment (CPT).
Montenegro has a pluralistic media environment and is between having some level of preparation and moderate level of preparation in the area of freedom of expression. Overall, good progress was achieved in the reporting period, notably with the adoption a media legislative package – new Media Law, new Law on Audiovisual Media Services and new Law on Public Broadcaster RTCG – in line with the EU acquis, and European standards, which was a key recommendation of last year’s report.
Montenegro is moderately prepared in the fight against organised crime. Good progress was made with the adopted legislative amendments in the areas of money laundering and trafficking in human beings.
Montenegro has made some progress and is moderately prepared in developing a functioning market economy. Strong economic growth and one-off revenues supported a small budget surplus in 2023, but fiscal vulnerabilities remain given high public financing needs, elevated interest rates and persistent social spending pressures. The labour market situation improved, but structural problems persist. The banking sector remained well capitalised and liquid. Some progress was made in improving the business environment and preparing the reform of state-owned enterprises (SOEs).
Montenegro has made limited progress and is moderately prepared to cope with competitive pressure and market forces in the EU. The education system still faces numerous challenges, as shown by the results of international surveys. Efforts to advance a green and digital transition have continued, but large infrastructure gaps persist. Further efforts are needed to diversify Montenegro’s narrow production base. Obstacles to increasing the productivity and competitiveness of local firms include the low value added by domestic products, the small size of local companies and their low level of participation in exports.