2. The Stabilisation and Association Agreement between Montenegro and the EU signed in October 2007, entered into force in May 2010. Montenegro has been smoothly implementing the obligations under the SAA The bodies of the SAA: SA CouncilSA Committee SA Parliamentary Committee Seven Sub- Committees with Committee of the Regions of the EU with European Economic and Social Committee two Joint Consultative Committees:

3.  On 26 June 2012 the European Council confirmed the decision of the General Affairs Council of 26 June 2012 on opening of negotiation on accession of Montenegro to the European Union  The first Intergovernmental Conference between Montenegro and the EU was also held on 29 June 2012, thus officially opening the negotiation process.

4. Government State Delegation for Negotiations on Accession of Montenegro to the EU College for Negotiations on Accession of Montenegro to the European Union Working groups Group for Negotiations on Accession of Montenegro to the EU Office of Chief Negotiator in Podgorica Working groups Information Secretariat Office of Chief Negotiator in Brussels NEGOTIATION STRUCTURE Parliamentary Committee for European Integration

5. 2. Freedom of movement for workers 4. Free movement of capital 5. Public procurement 3. Right of establishment and freedom to provide services 9. Financial services 10. Information society and media 20. Enterprise and industrial policy 13. Fisheries 23. Judiciary and fundamental rights 33. Financial and budgetary provisions 34. Institutions35. Other issues 21. Trans-European networks 24. Justice, freedom and security 8. Competition policy 15. Energy 28. Consumer and health protection 31. Foreign, security and defense policy 19. Social policy and employment 32. Financial control 18. Statistics 29. Customs union 12. Food safety, veterinary and phytosanitary control 16. Taxation 17. Economic and monetary policy 30. External relations 27. Environment and climate change CHAPTER OVERVIEW 6. Company law Screenings are due during Ireland EU Presidency Explanatory and Bilateral screenings completed Explanatory screenings completed 22. Regional policy and coordination of structural instruments 14. Transport policy 11. Agriculture and Rural Development 7. Intellectual property law 26. Education and culture 25. Science and research Chapter Closed Woriking Group created

6. MONTENEGRO 2012 PROGRESS REPORT, issued by European Commission on 10 October 2012  PR Structure: political criteria, economic criteria, ability to take on the obligations of membership  Focus on political criteria- overall progress identified (role of Parliament enforced, reforms of Judiciary, fight against corruption and organised crime, decriminalisation of defamation and insult)  PR reflects the actual state of play ( challenges) focus on the strenghtening of the legislative framework, institution building and administrative capacities

7.  Based on PR, the action plan has been elaborated on activities for the implementation of the EC recommendations.  Government adopted this AP on the end of December 2012.  The AP shall serve as a core element for the Government key policies for the next year. MONTENEGRO 2013 PROGRESS

8. 8 NPP-National Program for Accession  has to be approved by Parliament  it gives general overview of political criteria, economic criteria, ability to take on the obligations of membership  at the same time it contains a specific measures for each issue separately  indication and description of what have be done by now (issues covered by NPI)  the guidelines for what has to be done in the next years  in which way: short-term and medium-term priorities  plan of activities  estimation of the total cost of NPP For the next period it will be one of the most important documents the Government of Montenegro will have to deal with

9. IPA 2007-2013 IPA component I transition assistance and institutional building - In the period 2007-2013:96 projects programmed:152,2 mil € of IPA funds/93,1 mil € national contribution IPA component III (Regional development) - For the period 2012-2013: 22,7 mil € of IPA funds/ national co-financing is 4 mil € - Operational programme for Regional Development adopted by the EC IPA component V – Rural Development For the period 2012-2013 is allocated 10,9 mil € IPA II – Regional and cross-border cooperation - 8 programmes : - 5 bilateral:with Albania, BH, Croatia, Serbia and Kosovo - Adriatic cross-border programme - 2 transnational: South East Europe and Mediterranean - Budget: for the period 2007 - 2013 more than 30 mil€ IPA component IV ( Human resources development) - For the period 2012- 2013: 5,5 mil € of IPA funds/national co-financing is 1 mil € - Operational programme for Human resources development adopted by the EC

10.  Communication strategy for 2010-2014, done in collaboration with NGOs  Close cooperation with Media  Active involvement of the Civil Society in Negotiating Process (e.i. Working groups)  Projects and Activities aimed at raising civil awareness and knowledge about EU (PR Office) 10

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