By the end of February, Montenegro has met ten out of the 14 commitments outlined in the Reform Agenda. As a result, it will receive 18 million euros from the European Union (EU) Growth Plan for the Western Balkans, a reduction from the initially planned 29.5 million euros.

This information is included in the First Semi-Annual Report on the Implementation of Montenegro’s Reform Agenda for the EU Instrument for Reform and Growth 2024-2027, which the Government adopted on March 13 and was submitted to the European Commission by the Ministry of European Affairs (MEP) the following day. Among the “partially fulfilled commitments” noted is the requirement to abolish visas for at least one country annually, aligning with EU visa policies.

The report mentions that the maximum amount of EU support, set at 14 million euros, is contingent on the initial 29.5 reform steps, which are proportionally decreased by seven percent in pre-financing.

“For the partially completed steps, Montenegro will utilize provisions in Article 21 of EU Regulation 2024/1449, establishing an Instrument for Reforms and Growth. This allows for the fulfillment of these steps to be recognized even after the reporting period, within 24 months, without affecting the disbursement of allocated funds for the Reform Agenda. These steps are currently being implemented, and their results are anticipated by mid-year, with funds relating to these four reform steps disbursed upon their completion,” the document notes.

The Reform Agenda was adopted by the Government on September 26 last year and outlines 32 indicative priority reform measures across four sectors: Business Environment and Private Sector Development, Digital and Energy/Green Transition, Human Capital Development, and Rule of Law and Fundamental Rights, with 14 sub-sectors.

Implementing the reforms from this Agenda is essential for receiving funds from the Reform and Growth Instrument under the EU Growth Plan for the Western Balkans, which combines grants and soft loans equaling six billion euros for the period spanning 2024-2027. Of this, 383.5 million euros have been designated for Montenegro, comprising 110 million euros in grants and 273.5 million euros in soft loans. The European Commission plans to allocate seven percent of the total amount at the commencement of the Growth Plan as initial funding, with subsequent disbursements made in six semi-annual tranches based on the progress of the reform implementation.

Partially completed steps concerning electricity and the Spatial Plan

The Ministry of European Affairs informed “Vijesti” that ten steps (commitments) from the Reform Agenda have been fully accomplished, while four are partially completed, with expectations of receiving the first tranche of funds by the end of April.

“The deadline for completing the first 14 steps from the Reform Agenda concluded on February 28. The assessment from the relevant ministries indicates that this period ended with ten fully completed and four partially completed steps, which will undergo further evaluation by the European Commission. A final assessment of all steps by the EC is anticipated by the end of the second quarter of 2025,” they stated.

They noted that the steps associated with transposing the electricity integration package in alignment with the Energy Community requirements have been partially realized.

Moreover, they added, the public intervention in electricity supply pricing has been progressively reduced according to Article 5 of Directive 2019/944, regarding common rules for the internal electricity market. The issuance of energy performance certificates has also been ensured per the Energy Performance of Buildings Directive.

“As for the adoption of the Spatial Plan of Montenegro, the completion of this step is anticipated during the second quarter of 2025,” said the MEP.

They clarified that procedural delays in these steps are related to legal solutions requiring extensive consultations and coordination with the European Commission’s competent services, such as the new Energy Law and the legal base for enacting the new Spatial Plan. A broader dialogue with the European Commission is also being held regarding steps related to harmonizing the visa policy with the EU’s list of countries requiring visas, considering its impact on Government economic policy.

“The assessments from the responsible ministries regarding these four steps suggest they will be completed by the next reporting period, which ends in June,” they added.

Appointment of the Supreme Court President and establishment of the state-owned enterprises registry

The First Semi-Annual Report on the Implementation of the Reform Agenda states that, regarding fulfilled obligations, the President of the Supreme Court was appointed, and a registry of state and municipal-owned companies was established by the end of February.

Transparency surrounding interstate agreements and contracts with third countries has improved through the integration of project-specific information into the e-procurement system. Integrity within inspection services has also been enhanced, with the introduction of mandatory annual asset declarations and conflict-of-interest disclosures for inspectors, subject to checks by the Agency for the Prevention of Corruption.

Legislation compliant with the Renewable Energy Directive has been adopted, the issuance of energy performance certificates has been addressed, and plans for the National Broadband Infrastructure Development (2025-2029) and the Digital Services Plan (2025-2027) have been approved.

The Government also enacted the Law on Information Security and the Instructions for State Prosecutors’ Procedures in Cases of Domestic or Family Violence.

The government plans to finalize six additional chapters by year-end.

Minister of European Affairs Maida Gorčević stated on Wednesday, during a consultative session before the parliamentary Committee on European Integration, that the aim is to internally close at least six negotiation chapters by the end of this year.

These chapters include Chapter 3 – Right to Establish a Company and Freedom to Provide Services, Chapter 4 – Free Movement of Capital, Chapter 5 – Public Procurement, Chapter 6 – Commercial Law, Chapter 11 – Agriculture and Rural Development, and Chapter 13 – Fisheries.

“We aim to work on a greater number of chapters for closure, indicating that, with the current pace, 2026 could see the official closure of nearly 20 negotiation chapters in the Intergovernmental Conferences between the EC and Montenegro,” Gorčević remarked.

Currently, she noted, three negotiation chapters are ready for internal closure: Chapter 31 – Foreign, Security and Defense Policy, Chapter 4 – Free Movement of Capital, and Chapter 5 – Public Procurement.

Chapter 31 was ready for closure in December; however, due to ongoing discussions with Croatia regarding bilateral matters, it will be closed at one of the upcoming Intergovernmental Conferences.

“For now, we are pleased with the negotiation dynamics with Croatia, and we will provide updates accordingly,” Gorčević added.

Croatia has hindered the closure of Chapter 31 due to unresolved bilateral issues.

Regarding the remaining chapters, Gorčević mentioned that around 20 laws need to be adopted by June, which serve as final benchmarks. The Government plans to submit everything to parliament in May.

Negotiations between Montenegro and the EU commenced on June 29, 2012. Within this time, Montenegro has opened all 33 chapters and closed six.

Three project proposals in the energy sector will receive funding

The Ministry of European Affairs stated that from the approved amount of the first tranche, approximately half will provide budget support, while the other half will fund infrastructure projects through the Western Balkans Investment Framework (WBIF) mechanism.

The European Commission has positively evaluated three project proposals in the energy sector for this portion of the funds.

The first project involves the construction of the 110 kV Herceg Novi – Vilusi transmission line, the reconstruction of the 110/35 kV TS (transformer station) Vilusi, and the expansion of the 110/35 kV TS Herceg Novi.

The second project is the ”CEDIS (Montenegrin Electricity Distribution System) Smart Digitalization” – Phase I, alongside the construction of the TS 400/110 kV Brezna – Phase II.

“The combined value of these three projects is 79.87 million euros, with a contribution from the Growth Plan funds amounting to 14.67 million euros,” the MEP confirmed.

Visa policy not yet harmonized for 11 nations

The visa policy remains unaligned for 11 countries, as reported in the First Semi-Annual Report.

“Montenegro is actively working to align its visa policy with EU standards through amendments to the Law on Foreigners and the modernization of the visa information system,” the document states.

It is mentioned that Vanuatu was removed from the visa-free regime in February, “signifying progress towards further harmonization with the EU visa policy.”

“Currently, citizens from nine countries can enter and stay in Montenegro without visas year-round (Azerbaijan, Bahrain, Qatar, China, Kuwait, Saudi Arabia, and Turkey for up to 90 days, and Belarus and Russia for up to 30 days),” it specifies.

Additionally, on February 13 this year, Montenegro temporarily exempted citizens from Egypt, Armenia, Kazakhstan, Uzbekistan, and the United Arab Emirates (UAE) from visa requirements “to stabilize the tourism sector and stimulate economic development.”

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