Three years of negotiations: Montenegro’s perspective on winning the path towards the EU

Three years of negotiations: Montenegro’s perspective on winning the path towards the EU
The accession of Montenegro to the EU has been set out as one of the foreign policy top priorities...
Montenegro opened the accession negotiations with the EU on 29 June 2012
Montenegro has historically, culturally and geographically always been part of Europe ...
The EU integration process as a further proof of cherishing European values
KEY message:
the process of transforming Montenegrin society for the sake of better quality of life for its citizens
The presentation will tackle the following aspects:
Milestones of the EU negotiations and the resulting state of play

EU enlargement priorities - the achievements of Montenegro in the rule of law, economic governance and PAR

EU integration as a common denominator for the Region - WB6

Montenegro and the UK in the EU integration
Substantial efforts by our institutions started much before...
In the wake of earlier EU enlargement waves, Montenegro became the first country negotiating under
the new approach:
Chapters
Judiciary and Fundamental Rights and Justice, Freedom and Security
need to be opened among the first in order to provide more time for adoption of the necessary legislation, establishment of institutions and solid track record in implementation prior to closing of negotiations (article 25 of The EU General position)
Focus on the rule of law enforcement, as a prerequisite for building a better society
Negotiating structure: all segments of society on board
about 1300 people from public administration, civil society and academia involved..
After three years of negotiations,
over 3000 meetings of WGs per chapters,
16 sessions of the Negotiating group,
12 College sessions,
over 300 technical meetings with the Commission, Parliamentary committee sessions and expert missions
the statistics is the following:
chapters opened
chapters provisionally closed
Intergovernmental conferences
between Montenegro and the EU held
negotiating positions reaching their addoption by the Government
negotiating positions submitted
chapters with opening benchmarks
chapters with closing benchmarks
chapters with OB fulfilled
Starting from the Commission's EU Enlargement Strategy 2015, the shift in focus towards the three priority pillars:

1. Rule of Law

2. Economic governance

3. Public administration reform
In the framework of the EU integration, Montenegro has continuously been investing efforts to make progress in these areas, aimed at transforming institutional and administrative framework for better results in implementing the reforms.
Progress in the Rule of Law area is reflected in the progress of Montenegro within chapters 23 and 24
PROGRESS IN THESE CHAPTERS IS A GUIDING LIGHT
TOWARDS A TRANSFORMED SOCIETY OF
THE EU VALUES
AND
A PREREQUISITE
FOR FURTHER EU INTEGRATION
Negotiations opened on the IGC on 18 December 2013, following the adoption of the APs for 23 and 24
45 interim benchmarks for ch 23
38 interim benchmarks for ch 24
Interim benchmarks reflect the tasks that Montenegro set in APs
Adapted APs for 23 and 24 adopted on 19 February 2015 to better respond to the interim benchmarks realisation
Structure of action plans
AP23
3 Subareas:

Judiciary;
Fight against corruption;
Fundamental rights
10 sub-areas:

Migrations,
Asylum,
Visa Policy,
External borders and Schengen,
Judiciary cooperation in civil and criminal matters,
Police cooperation and fight against organised crime,
Fight against terrorism,
Cooperation in the area of drugs,
Customs cooperation and cooperation in fight against counterfeiting euro Customs (crime aspects)
AP 24
The elements of the legislative, institutional and administrative framework for
the fight against corruption and organised crime
have been put in place
Special Prosecutor's Office as an independent unit in December 2014
Legislative package in Dec 2014, including the Law on the prevention of the corruption, as a basis for establishing the Anti-corruption Agency in 2016
Legislative package in February 2015 concerning judiciary, aimed at more transparent, unbiased election of judges and prosecutors
In the following period,
FOCUS on a credible track-record
In line with the latest requirements of the Commission in the economic dialogue with the candidate countries, Montenegro adopted its Economic Reform Programme 2015 – 2017 in January 2015
Emphasis on sectoral and structural reforms.
AIM: Pursue consistent economic governance!
Montenegro sets the objective to conduct fiscal policy of reducing current spending, while increasing investment in infrastructure,
so that the public debt could be financed from economic growth
Increased importance of economic governance in the EU enlargement process
It is a medium-term macro-fiscal policy framework
FURTHER CHALLENGES FOR THE EFFICIENT ECONOMIC GOVERNANCE
Reflected in the recommendations of the Joint conclusions of the Economic and Financial Dialogue held on 12 May 2015:
1. Sustain the commitment to fiscal discipline, establish a credible track record on the basis of the new rules-based fiscal framework and revise the public debt management strategy
2. Consider additional reforms for attaining long-term sustainability of the budget
3. Implement the planned voluntary financial restructuring programme (the so-called "Podgorica approach")
4. Amend labour legislation in order to introduce further market flexibility
5. Actively continue education reform
6. Strengthen the transport development strategy
7. Further improve the business environment by ensuring the timely implementation of the so- called "regulatory guillotine"
8. Make further progress with a comprehensive and strategic approach in the field of EU food safety and sanitary and phytosanitary standards to receive accreditation for exporting agricultural and food products to the EU.
The EU integration process is a framework for Montenegro to develop a functioning market economy
Expectations are that the construction of the Bar-Boljare highway as well as
ongoing investments in energy, transport and tourism will support economic growth:
the economy in 2015 boosted by a surge in public works and private investments, particularly in the transport, energy and tourism sectors.
Montenegro is committed to improving the sustainability of public finances and the business environment.
Further efforts to preserve macroeconomic stability:
The Law on Budget and Fiscal Responsibility introduced upper limits for the budget deficit and public debt starting from the 2015 budget.

The cost of setting up new businesses was reduced through the introduction of lower fees for public utility connections on building land, and tax exemptions for companies in strategic sectors (i.e. tourism, energy and food production).
Public administration reform as a pre-condition for the adequate implementation of the EU acquis
Strategic framework for PAR was put in place in 2014:
- PAR Strategy 2011-2016
- A special group on PAR established
New PAR Strategy 2016 - 2020 is to be elaborated together with the Commission and SIGMA
The new law on general administrative procedures adopted in 2015
CHALLENGE: PUBLIC FINANCE MANAGEMENT
EU integration uniting the countries of the Region to tackle common challenges together
Montenegro launched WB6 initiative in spring 2013, aimed at accelerating European integration of each participant (with respect to regatta principle by identifying minimum of common interests);
WB Ministerial meeting in Montenegro, June 2014 - Enhanced cooperation within the SAA, common solutions for regional challenges ;
Conference on WB in Germany, August 2014 Berlin Process - EU support for the integration of the WB countries, reaffirmed European perspective; focus on regional projects in infrastructure

EFFORTS on improving the connectivity within the WB and with the EU
- in line with Junker’s Investment Plan for Europe – structural reforms, fiscal responsibility, strategic investments
- CONNECTIVITY IN THE AREAS OF TRANSPORT AND ENERGY
- GROWTH PACKAGE FOR THE WB – a list of specific investment priorities
EU negotiations- progress in chapters:
14 Transport
15 Energy
21 TENT complementary to the
connectivity goal &
Core Network initiative
REGIONAL INFRASTRUCTURE PROJECTS THAT ARE VITAL FOR MONTENEGRO

Rehabilitation of the railway Belgrade-Bar
Bar-Boljare Motorway
Adriatic - Ionian Motorway
Ionian-Adriatic Pipeline
Electricity Underwater Cable with Italy

Montenegro and the UK
in the EU integration
UK Government has always demonstrated a strong support to the accession of Montenegro to the EU , both at a political level and by providing expert technical assistance
Twinning
„RoL“ (Rule of Law) twinning project with the partner from Northern Ireland
NI-CO: Northern Ireland Co-operation Overseas; estimated value 4 mill EUR for the period 2014 – 2017.
Prior to this, 4 twinning projects whose estimated value amounted to 2.3 mill EUR

TAIEX - a total of 48 events with British expertise
Project Pro - accession, launched in November 2012 and ended in November 2014, was realised in joint action of MFAEI Montenegro and the British Council and enabled improving lcommunication and presentation skills of the negotiating structure of Montenegro.
New cycle of Pro - accession, focused on strategic thinking, started in July 2015
THANK YOU!
aleksandar.pejovic@gov.me
Some major investment projects in course...
"Porto Montenegro" in Tivat
http://www.portomontenegro.com/

Investment: 400 mill EUR
"Portonovi" in Herceg-Novi

Investment: 500 mill EUR
"Luštica Bay" in Luštica,
http://www.lusticabay.com/gallery/

Investment: "Orascom" announced a total of 1.1 billion EUR
Investments in energy sector
Project of Terna, Italy, the underwater power cable between Montenegro and Italy to be set up by 2017.

Value: 800 mill EUR
ongoing discussions with Terna regarding the construction of the second block of
Termo Power Plant Pljevlja, that would increase its production capacity by 30%

Value: 350 mill EUR
A total of 47 laws adopted in the rule of law area, with 21 more laws that we expect to be adopted in the following period.