The European Commission will diligently observe the enactment of the Agreement on Cooperation in the Field of Tourism and Real Estate Development between the governments of Montenegro and the United Arab Emirates (UAE). This includes ensuring that the agreement aligns with European Union (EU) regulations, which cover public procurement, state aid, investor selection, impacts on public financial management, anti-corruption measures, and environmental standards.

This information was conveyed to “Vijesti” by the EU Delegation in Podgorica. When asked whether a potential re-adoption of the agreement by the Government, if it then neglects public procurement and tender regulations, could jeopardize the closing of Chapter 5 (public procurement), the Delegation confirmed that any direct deals post-chapter closure, contrary to competition principles, may indeed prompt a reopening of the chapter.

The Delegation acknowledged their familiarity with the agreement and mentioned that European Commissioner for Enlargement Marta Kos, in her response to a query from head of state Jakov Milatović, reminded that all international agreements made by Montenegro must comply with the national constitution and legal framework, as well as the Stabilization and Association Agreement (SAA) with the EU. She emphasized that Montenegro must be mindful of EU acquis obligations it will need to fully implement upon joining the EU.

“Since Montenegro aims to become an EU member, its economic growth must align with EU standards, ensuring transparency in agreement implementations and adherence to EU acquis in diverse areas. The European Commission will be monitoring this closely and is prepared to assist Montenegro if necessary,” they stated.

The Delegation noted that, based on the Commission’s evaluation, the agreement with the UAE does not appear to contain provisions that would inherently contradict EU law or the SAA.

The government is spared criticism, but…

Kos mentioned in her correspondence with Milatović that improper application or interpretation of certain agreement provisions could result in breaches of EU regulations governing public procurement, and could favor potential investors from the UAE over European and Montenegrin companies.

The agreement specifies that the UAE government will propose and guarantee private investors’ cooperation with the Montenegrin government in executing two tourism projects across the country, contingent on obtaining written consent from Podgorica.

Despite not having received Kos’s opinion, Milatović returned the contested document to Parliament for reconsideration on April 29, while simultaneously signing a decree endorsing the Agreement on Economic Cooperation with the UAE.

Civic activist Dina Bajramspahić told “Vijesti” on Wednesday that Kos’s reply serves as a diplomatic checkmate for the Government. She summarized the EC’s position as: “the agreement itself is not problematic, but you must not implement it as written,” which, she noted, spared the Government harsh critiques “yet placed them in a precarious position.”

She expressed concern that the agreement with the UAE casts doubt on the closure of the public procurement chapter, noting that government actions regarding the agreement will be scrutinized more intensely than usual.

“At such a critical time, the Government of Montenegro, unfortunately, seems to be obstructing rather than facilitating a positive outcome,” stated Bajramspahić.

On the night of April 22-23, the Parliament ratified two agreements between Montenegro and the UAE. These were signed in Dubai on March 28 by Prime Minister Milojko Spajic, after which they were submitted to Parliament as a bill.

Previously, he presented the intentions of Arab billionaire Mohamed Alabara to local leaders, claiming an investment of 35 billion euros for a tourist complex and a 99-year lease of Ulcinj Velika Plaza.

Segments of the public, political parties, and the NGO sector argue that the agreements contravene state interests and jeopardize Montenegro’s EU integration. Protests against the agreements have been voiced by local authorities in Ulcinj, parts of civil society, and some Albanian parties within the government.

MEP: Government will not jeopardize European path

The Ministry of European Affairs (MEP) refrained from confirming whether the disregard for the Public Procurement Law could jeopardize the closing of Chapter 5 after the agreement’s re-adoption. Instead, they noted that Montenegro has so far exhibited “a high level of compliance with the EU acquis regarding public procurement,” which has enabled them to meet any requisite benchmarks.

“The Government of Montenegro will diligently oversee the proper implementation of these agreements to ensure compliance with the law and uphold the integrity of reforms, thus safeguarding the country’s European trajectory,” they informed “Vijesti.”

They asserted that the executive will take care not to compromise the progress made in Chapter 5 with respect to the implementation of agreements with the UAE and related contracts.

When questioned about the expected number of chapters closing in a potential intergovernmental conference (IGC) with the EU in June, they mentioned that, during Poland’s presidency of the EU Council (January 1 – June 30 this year), two chapters are anticipated for closure. They also noted that Montenegro is intensifying efforts to meet final benchmarks across several chapters simultaneously, with “three chapters currently prepared internally.”

“… The specific chapters that will close depend on the European Commission’s final assessment of the benchmark fulfillment,” they added.

MEPs pointed out that the delays in key law adoptions necessary for closing Chapter 4 (Free Movement of Capital) were attributed to the parliamentary stagnation at the end of the previous year and the beginning of the current one, impacting the dispatch of final benchmarks.

In response to inquiries about the absence of intergovernmental conferences during the first five months of Poland’s presidency, MEPs clarified that the EU holds these conferences “when there are opportunities to stimulate reform momentum, open chapters or when a candidate demonstrates readiness to close chapters, all with the consensus of member states.” They noted that Montenegro is in the final stages of accession negotiations, meaning the IGC will occur “only when significant developments such as chapter readiness for closure arise.”

“Concrete results are expected in June, aligning with the priorities of the Polish presidency,” they concluded.

Polish Embassy: You still have a chance to cross out one or two chapters

The Polish Embassy in Podgorica informed “Vijesti” that Montenegro still has the opportunity to close one or two chapters before the conclusion of Poland’s Council presidency.

Poland’s mandate lasts until June 30, after which Denmark will assume presidency until January 1 next year.

“There remain chances to organize an intergovernmental conference with Montenegro to close one or two chapters of accession negotiations. However, progress hinges on numerous factors, including the agreement of all EU member states,” they stated.

Mercier: Economic growth must follow EU standards

European Commission spokesperson Guillaume Mercier emphasized that, given Montenegro’s aspirations for EU membership, economic growth must be attained in alignment with EU standards.

He reiterated that agreements should be implemented transparently and with full adherence to the acquis communautaire across various fields.

“The European Commission will monitor this situation closely and stands ready to assist Montenegro if required,” he stated.

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