Starting today, Montenegro has access to an additional 380 million euros from European Union funds, with the first 29 million expected to be received by year-end, announced Prime Minister Milojko Spajić.

He expressed gratitude to all EU member states that have supported Montenegro’s reform agenda aimed at fostering growth in the Western Balkans, which the government approved in late September.

“This is a testament to the quality of the reforms implemented by the 44th Government, striving to meet European standards as quickly as possible,” Spajić shared on social media platform X.

The Minister of European Integration, Maida Gorčević, announced yesterday that the European Union has backed Montenegro’s reform agenda.

EU Member States have endorsed the reform agendas of five Western Balkan nations, granting them the right to access financial resources from the European Growth Plan for their region.

Only Bosnia and Herzegovina did not receive approval, as it failed to submit a complete reform agenda, and thus it was not considered at the EU level.

The Montenegrin Reform Agenda for 2024-2027 outlines a total of 32 indicative priority reform measures across four key sectors: business environment and private sector development, digital and green transition, human capital development, and the rule of law and fundamental rights, along with 14 subsectors.

Implementing these reforms is vital for securing funds from the Instrument for Reforms and Growth within the EU Growth Plan for the Western Balkans. The plan combines grants and favorable loans totaling six billion euros for 2024-2027. Montenegro is set to receive 383.5 million euros, of which 110 million euros are grants, and 273.5 million euros are favorable loans. The European Commission aims to provide seven percent of the total amount as pre-financing, with the remainder disbursed in six semi-annual tranches based on the extent of reform implementation.

In the sector focusing on business environment and private sector development, reforms must be implemented by year-end, enhancing the management, efficiency, and accountability of public procurement and state aid procedures, along with improving transparency. This includes upgrading the electronic cadastre and spatial planning, boosting the integrity and performance of inspection services, and curbing the gray economy. It encompasses creating a public registry of state-owned enterprises, adopting a spatial plan, and mandating annual asset declarations and conflict of interest statements for inspectors.

For the Green Energy sector, seven reforms are slated for completion by year-end, addressing energy poverty among other issues, and implementing the Renewable Energy Directive (including permits and guarantees of origin). Additionally, there are plans to gradually eliminate public restrictions on electricity supply pricing.

This also involves adopting the National Broadband Development Plan, the Law on Information Security, and the Law on Renewable Energy Sources.

In the realm of fundamental rights and the rule of law, three reforms are envisaged to bolster judicial independence and reduce domestic violence in alignment with EU standards, particularly regarding countries seen as sources of illegal migration or security threats to the EU. This includes measures such as establishing standard procedures by the President of the Supreme Court and the Supreme State Prosecutor for addressing cases of sexual and gender-based violence, in line with the Istanbul Convention and EU directives on victim protection. The abolition of the visa-free agreement with states (at least one per year) for which the EU mandates visas is also in consideration.

“It is crucial to note that EU regulations establishing an instrument for reforms and growth in the Western Balkans provide for a flexibility mechanism. This means that in exceptional cases of non-compliance, implementation steps initially set for the end of 2024 may extend over the subsequent two years, and measures planned for future periods may have an additional year added to their deadlines,” the Reform Agenda specifies.

However, it notes that this flexibility stipulates that the conditions for fund disbursement may only be met upon fulfillment of the required actions within this extended timeframe.