Press release from the 109th Cabinet session

The Montenegrin Cabinet held its 109th session, chaired by Prime Minister Milojko Spajić. The Cabinet adopted the Draft Law on Amendments to the Law on the Organisation of the Agricultural Products Market. The purpose of adopting this law is alignment with the Common Agricultural Policy of the European Union, and it forms an integral part of the obligations Montenegro was required to fulfil in the process of harmonisation with EU legislation in accordance with the Action Plan for Alignment with the EU Acquis, as one of the initial benchmarks for opening negotiating Chapter 11 - Agriculture and Rural Development. Amendments to EU legislation since 2019 have necessitated, inter alia, amendments to this law, which represents the continuation of harmonisation with the EU acquis in this area. In addition, certain provisions of the previous legislative solution had not been fully transposed, resulting in partial alignment with EU legislation governing this field. It was noted that the adopted amendments create a strong basis for the adoption of by-laws that will enable continued harmonisation and full implementation of the Law in line with practices applied in EU Member States. Amendments to the existing legislative framework will thus improve the application of this law within the legal system of Montenegro, as a future EU Member State.

The Cabinet adopted the Draft Law on Freshwater Fisheries, together with the Report on the Public Consultation. The adoption of this law stems from the need to harmonise with the EU acquis, particularly regarding the development of a national management plan, the authorisation process for eel fishing, and restrictions related to eel fishing (introduction of closed seasons and a ban on recreational and sport fishing). The law ensures the collection of data on eel populations for the implementation of the national data collection plan and establishes obligations regarding landings at designated landing sites. Furthermore, since provisions on traceability and first sale apply to all fisheries products, including those from freshwater fisheries, this law ensures compliance with European rules.

The Cabinet adopted the Draft Law on Cross-Border Energy Infrastructure Projects, together with the Report on the Public Consultation. As a member of the Energy Community and a candidate country for EU membership, Montenegro is obliged to harmonise its legislation with EU regulations in the field of energy. One such obligation is the transposition of Regulation (EU) 2022/869 on guidelines for trans-European energy infrastructure, which repealed Regulation (EU) 347/2013 from 2013. This law regulates the procedure, conditions and methods for the implementation of cross-border energy infrastructure projects of particular importance to Montenegro, cross-border cost allocation and incentives granted for such projects, as well as other matters relevant to their implementation. The law will contribute to creating appropriate conditions for the successful and timely implementation of cross-border energy infrastructure projects, attracting investment, accelerating economic development, and achieving environmental protection objectives. In this way, it supports overall development, regional and international connectivity, energy security, market and system integration, competition and energy price accessibility, mitigation of climate change, achievement of energy and climate goals, and climate neutrality.

Draft laws amending the Law on the Judicial Council and Judges, the Law on the State Prosecutor's Office, and the Law on the Constitutional Court of Montenegro and Judges were also adopted. These amendments are based on the principle that judges and prosecutors are entitled to remuneration consistent with the dignity and responsibility of their functions. Judicial salaries guarantee independence and material security; therefore, a temporary solution was adopted by introducing an allowance for holding office through organisational laws until the adoption of the Law on Salaries and Other Rights Related to the Exercise of Judicial and Constitutional Court Functions. The amendments extend the right to an allowance for holding office for judges and prosecutors until 31 December 2026.

The Cabinet adopted the Draft Law on Amendments to the Law on Arbitration. The proposed amendments aim to position arbitration as an important dispute resolution mechanism, not only for domestic economic entities but also for foreign investors. Increased use of arbitration will improve the business environment and enhance legal certainty for investments in Montenegro. The law also aims to better position Montenegro as a future EU Member State. Among other provisions, it enables the establishment of a permanent arbitration institution, defines arbitrability of disputes over rights freely disposed of by the parties (except where courts have exclusive jurisdiction), improves arbitration procedures, regulates the appointment of arbitrators, and recognises the full jurisdiction and procedural powers of arbitral tribunals.

The Draft Law on the Ratification of the Second Additional Protocol to the Convention on Cybercrime on Enhanced Cooperation and Disclosure of Electronic Evidence was adopted. The Convention on Cybercrime has established international cooperation standards unmatched by any previous international legal instrument and is one of the most universally accepted Council of Europe instruments. The Second Additional Protocol aims to set new standards in direct cooperation for securing and exchanging electronic evidence, strengthening the capacity of law enforcement authorities to combat cybercrime and other forms of crime while fully respecting human rights and fundamental freedoms, and emphasising the value of a free and open internet.

The Cabinet adopted the Draft Law on Free Zones, together with the Report on the Public Consultation. The law establishes a modern regulatory framework for the establishment, operation, management, supervision and termination of free zones in Montenegro, with a strong emphasis on transparency and customs control through mandatory digitalisation, video surveillance and controlled access. It clarifies the responsibilities of founders, operators and users, strengthens penalties and interinstitutional cooperation, suppresses abuse and illicit trade, and aligns regulations with international standards and best practices. The goal is for free zones to function as a reliable and sustainable development instrument contributing to economic growth, investment security and fiscal stability.

The Draft Law on Amendments to the Law on Postal Services was also adopted. The aim is to align market freedoms, economic interests and consumer protection with EU regulations and standards, ensure universal postal services, and develop modern postal services. The law improves consumer protection, inspection oversight and digital postal services, in line with the Postal Sector Development Strategy 2024-2028.

The Cabinet adopted the Draft Law on Amendments to the Law on Credit Institutions, together with the Report on the Public Consultation. The law transposes EU standards related to digital operational resilience (DORA), crypto-assets (MiCA), capital requirements (CRD VI/CRR III), and EMIR 3 reforms. It strengthens resilience to economic shocks, improves corporate governance, transparency, risk management (including ESG risks), and supervisory cooperation with EU authorities, ensuring future alignment with the Single Supervisory Mechanism (SSM).

The Draft Law on Consumer Protection, together with the Report on the Public Consultation, was adopted. The law completes alignment with the latest EU consumer acquis from 2019, which is a prerequisite for the provisional closure of Chapter 28 - Consumer and Health Protection, and represents the final step in a four-year harmonisation process launched in December 2019.

The Draft Law on Geological Exploration, together with the Report on the Public Consultation, was adopted to address shortcomings of the 2011 law, modernise procedures, enhance efficiency, clarify institutional responsibilities, strengthen environmental and public health protection, and align with technological developments.

The Cabinet adopted amendments to the Decree on Public Service Obligation Air Routes, aligning it with EU Regulation (EC) No 1008/2008 and competition protection requirements, in order to ensure timely completion of procedures ahead of the 2026 summer IATA season and improve Montenegro's accessibility and competitiveness as a tourist destination.

A Decision on the Basic and Supplementary List of Medicines was adopted. The revised list includes 9 new INN medicines, 24 generic medicines, and 2 new indications, improving treatment outcomes, quality of life, and overall healthcare system efficiency.

Amendments to regulations governing the IPARD III Programme were adopted, enabling better use of EU pre-accession funds to improve agricultural competitiveness, food safety, rural development and institutional capacity.

A regulation on the implementation of IACS measures and direct payments under IPARD III was adopted, enabling financial support for rural development, climate resilience, renewable energy, and the annual Agrobudget.

The Cabinet adopted the Economic Reform Programme for Montenegro for the period 2026-2028. During the discussion, it was emphasized that this is the most important document for meeting the economic criteria in the EU accession negotiations. On the one hand, the Programme serves as an instrument for planning the country's economic policy and managing reforms aimed at maintaining macroeconomic stability, strengthening international competitiveness, and improving conditions for inclusive growth. On the other hand, the Economic Reform Programme represents a core element of the "fundamentals first" approach within Montenegro's EU accession negotiations, particularly with regard to meeting the Copenhagen economic criteria. The document consists of two key chapters: the macroeconomic framework and the fiscal framework. According to preliminary projections of the Ministry of Finance, Montenegro's economy is expected to achieve an average annual growth rate of 3.2% in the medium term, specifically 3.2% in 2026, 3.1% in 2027, and 3.2% in 2028. In the upcoming medium-term period, Montenegro will continue implementing measures from the Fiscal Strategy, focusing on: further strengthening control and rationalisation of public expenditure; improving revenue collection through the modernisation of the tax administration and the fight against the informal economy; prudent management and refinancing of public debt; prioritising capital investments in growth-enhancing projects; and further consolidation of fiscal discipline, which has already been significantly improved compared to the period prior to major tax reforms. In line with the fiscal framework for the period 2026-2028, projected public revenues range from EUR 3,506.1 million (40.9% of GDP) in 2026 to EUR 3,727 million (39.7% of GDP) in 2028. The expected growth in public revenues is the result of increased consumption, strengthened economic activity, and a reduction in the size of the informal economy.

A Decision on the establishment of an Intersectoral Working Group for the creation of a mechanism for the safety of journalists was adopted. During the discussion, it was emphasized that the establishment of this body will enable a systematic, coordinated and inclusive approach to addressing issues related to the safety of journalists, as well as improving the institutional framework and practice. The establishment of the Intersectoral Working Group provides a forum for continuous dialogue and cooperation between representatives of state authorities and the media, with the possibility of involving other relevant institutions, experts and civil society organizations.

The Working Group consists of: a media representative as Chair; a media representative as Deputy Chair; a representative of the Secretariat- General of the Government of Montenegro as a member; a representative of the Ministry of the Interior as a member; a representative of the Basic State Prosecutor's Office as a member; and two media representatives as members. Representatives of state authorities in the Working Group are appointed by the heads of those bodies, while media representatives are appointed by the Government of Montenegro upon the proposal of the Media Union of Montenegro. The tasks of the Working Group include analysis of the existing institutional, normative and operational framework in the field of journalist safety; continuous monitoring, including the establishment of a rapid response system; provision of free legal and psychological support; as well as analysis and identification of an institutional framework for a future mechanism. The Working Group will also identify challenges, risks and shortcomings in the actions of competent authorities and propose concrete measures and mechanisms to improve the safety of journalists, including prevention, protection and effective institutional response measures. Special emphasis is placed on the preparation of recommendations and, where necessary, proposals for amendments or adoption of new regulations, with the aim of strengthening cooperation and trust between state authorities and the media community. It was concluded that the adoption of this Decision represents a justified, necessary and systemic response by the Government of Montenegro to challenges in this area.