The Montenegrin Cabinet convened for its 89th session today, led by Deputy Prime Minister for International Relations Ervin Ibrahimović. During the session, the Cabinet approved the Draft Law on the Legalization of Informal Structures alongside the Report from the Public Consultation. The main aim of this law is to create an efficient process for legalizing informal structures and to curb further illegal construction, especially given Montenegro’s limited spatial resources. It was underscored that enacting this law will help protect Montenegro’s land—an invaluable national asset compromised by unauthorized buildings. Additionally, the legalization process is expected to boost municipal revenue through urban rehabilitation fees, property taxes, and land use compensation, which will be allocated for necessary infrastructure improvements in affected areas, thereby enhancing the quality of life. Significant updates compared to the existing Law on Spatial Planning and Construction of Structures include:

• Mandatory registration of legalized structures in the Real Estate Cadastre within a six-month timeframe, after which owners lose their right to register. The law also outlines structures ineligible for legalization and specifies conditions for legalization.
• Defined processes for legalizing structures situated in protected zones.
• Clear delineation of responsibilities: Local governments will handle the legalization of structures with a net area up to 500 m², while a newly formed national body, the Legalization Authority, will manage those over 500 m² and in protected zones.
• Structural and seismic stability assessments are retained as per the current legal framework, with additional procedures if assessments find structures to be unstable.
• Clarified legalization processes for collective residential buildings, including rules on land acquisition and payment plans for structures on state-owned land, as well as the Cadastre’s responsibilities regarding the entry of legalization data.
• The authority to issue conformity certificates has been withdrawn from independent reviewers.
• Post-legalization, alignment with the external appearance of the structure is not necessary.
• State property management bodies are required to announce a public call, providing owners of informal structures on state land six months from the publication date to register their properties. After this deadline, ownership will revert to the state and will be registered accordingly by the relevant authority.

Moreover, the Cadastre must register annotations prohibiting the sale and commercial use of structures that haven’t begun the legalization process within the specified timeframe in Article 48, paragraph 1 of the law, as well as structures not legalized within 24 months of the law’s enactment.

The Cabinet also endorsed the Draft Strategy for Combating Fraud and Managing Irregularities to Safeguard the Financial Interests of the EU for 2025–2028, along with the accompanying Action Plan for 2025–2026. This four-year strategic document aims to strengthen policies for managing irregularities associated with EU funds. Safeguarding the EU budget is intrinsically linked to the national budget, as any misappropriated funds must be reimbursed by Montenegro. The Strategy builds on the 2019–2022 framework, ensuring continuity in advancing the national system for protecting EU financial interests. It articulates the strategic goal, vision, mission, and long-term operational objectives, reflecting Montenegro’s ongoing commitment to reform and EU integration. Its implementation furthers the objectives under Chapter 32 of the EU negotiation process—Financial Control—covering four pivotal areas: internal financial control in the public sector, external audit, protection of EU financial interests, and safeguarding the euro against counterfeiting. The ultimate goal is to enhance fiscal discipline and transparency in the utilization of both national and EU resources.

Additionally, the Cabinet approved the Information on the Use of Funds from the Special Investment Programme for Economic and Business Interests of Montenegro, as well as the Proposal for the Support Programme to Enhance Skills in the Information and Communication Technology (ICT) Sector for 2026. The approval has been granted for the Programme. The Innovation Fund of Montenegro is tasked with establishing the general rules for the support programme, preparing, and executing the public call. Funding from this Programme is crucial for developing Montenegro’s innovation ecosystem and addressing skill deficits in high-potential sectors. The ICT Skills Enhancement Programme—dubbed “Iskra”—is a strategic government initiative focusing on acquiring digital skills, enhancing soft skills, and fostering problem-solving and lifelong learning—core elements for human capital development and job creation in Montenegro. As part of this initiative, the Ministry of Labour and Social Dialogue will administer the regular “Education and Training” Programme in 2025, allocating €516,870 to bolster digital skills development. This funding will facilitate participation for 429 unemployed individuals, including 29 NEET (Not in Employment, Education or Training) youth, in various digital competence training programmes. These initiatives are pivotal in preparing the unemployed for careers in the ICT sector, aligning with European priorities and Montenegro’s national development goals.

The Cabinet adopted the Information regarding the Signing of a Memorandum of Understanding between the Ministry of European Affairs of Montenegro and the Ministry of Foreign Affairs, European Union and Cooperation of the Kingdom of Spain aimed at strengthening collaboration in European Integration. This Memorandum signifies Spain’s steadfast commitment to aiding Montenegro’s EU accession journey. It further highlights Montenegro’s readiness to enhance its institutional and administrative capacities through EU member state partnerships. The Memorandum coincides with Montenegro’s substantial progress in EU negotiations, marked by the temporary closure of Chapter 5 – Public Procurement at the 23rd Intergovernmental Conference held on June 27, 2025, in Brussels. This milestone underscores Montenegro’s reform efforts with an aim to join the EU by 2028. The Memorandum will promote enhanced political dialogue, stronger coordination of bilateral and multilateral activities, and facilitate direct exchanges of information and expert support through regular consultations and collaborative initiatives. Both countries reiterated their commitment to reinforcing mutual relations and supporting Montenegro’s advancement in alignment with European values.

The Cabinet also approved the Information regarding the Initiation of the Auction Process for the Allocation of Market Premium Rights for Undesignated Solar Power Plant Locations. The primary goal of the Law on the Use of Renewable Energy Sources is to create more favorable investment conditions for the establishment of facilities that produce electricity from renewable sources. This legal framework also strengthens the regulation of the electricity, heating, cooling, and transportation sectors. To encourage increased utilization of renewable electricity, the law proposes a system of incentives designed to integrate renewable energy into the electricity market on commercial principles, minimizing disruptions while ensuring system stability and cost-effectiveness. A key instrument introduced is the market premium system—a transitional mechanism bridging traditional “feed-in tariffs” and market-oriented models. Under this system, producers sell electricity on the market and are entitled to a premium if the market price dips below the guaranteed price. Conversely, if the market price exceeds the guaranteed price, producers must cover the difference, referred to as the “negative market premium.” The right to the guaranteed price is awarded through a competitive tendering process. In accordance with Article 31 of the Law, auctions for market premium rights for undesignated locations are conducted via public calls that are part of the tender documentation. Following Article 15 of the Law, the Cabinet approved a Decision establishing a quota of 250 MW for the first auction, relevant to solar power plants with capacities of 400 kW and above. Additionally, the Government set the maximum price that bidders can propose during the auction at €65/MWh. The Cabinet also ratified the complete tender documentation, endorsed the Market Premium Contract and the Balancing Responsibility Agreement, and directed the Ministry of Energy and Mining to initiate the public call.