1. 1 DPM for European Integration Prof. Dr Gordana Djurovic Regional conference: THROUGH COOPERATION TOWARDS INTEGRATION Milocer, 7. October 2007 MONTENEGRO AND EUROPEAN INTEGRATION PROCESS Country Presentation REPUBLIC OF MONTENEGRO GOVERNMENT OF THE REPUBLIC OF MONTENEGRO

2. 2 200020012002200320042005 20062007(IMF*) GDP u mil € (current prices) 1,022.21,244.81,301.51,329.01,565.11,690.018292.027 Population 612,496614,791617,085618,233620,706623,189624.963 GDP/pc (current prices) 1.6682.0242.1092..3172.5212.7112.926 Average wage (€) 150.00176.00193.00271.03302.81326.50377.36 Real growth (% GDP) 3.11.00.82.54.24.36.5 7,0 CPI change (annual average) -22.817.87.93.41.82.8 3.0 Employed 195.271197.388192.901190.417192.501194.426203.546 Unemployed 81.06979.96076.29368.62559.00254.45843.190 Unemployment rate 32.731.530.525.822.618.414,7 11,71 (sept) General state balance (% GDP) --1.6-2.1-3.3-2.2-2.171,2* Trade balance (% GDP) -45.1-49.4-35.5-26.1-29.2-30.8-39,2 External Public Debt (%GDP) 65.764.373.234.434.131.128,7 External Debt (billion of euros) 0.6710.6740.8940.4720.5020.5130.524 FDI (%BDP) -1.07.13.23.522.835,2 FDI – net u billion -10.686.943.851.8382.8644* Totoal tourism revenues (mil €) 144151.2179.7217.0320.0 Montenegro: Main economic indicators, 2000-2006

3. 3 EUROPEAN PERSPECTVE OF MNE SIGNING OF SAA - OCTOBER 15, 2007 RATIFICATION IN THE MNE PARLIAMENT – NOV 2007 I Q 2008 -NATIONAL PROGRAMME INTEGRATION ( incl. NATIONAL PROGRAMME FOR GRADUAL ACQUIS ADOPTION) 1. 1. 2008 - INTERIM SAA EUROPEAN SUPPORT FUNDS – IPA 2007 (31,5 MIL €) MN MISSION TO BRUSSELS (since 2006) / EC DELEGATION IN PODGORICA ( Nov. 2007) 2008 - APPLICATION FOR CANDIDATE COUNTRY STATUS CANDIDATE COUNTRY STATUS ENLARGEMENT POLICY CONSOLIDATION IN EU Continuity ! 1. ADMINISTRATIVE CAPACITY BUILDING FOR EUROPEAN INTEGRATION PROCESS 2. COMMUNICATION STRATEGY

4. 4 ARTICLE 72 SAA 1.THE PARTIES RECOGNISE THE IMPORTANCE OF THE APPROXIMATION OF THE EXISTING LEGISLATION IN MONTENEGRO TO THAT OF THE COMMUNITY AND OF ITS EFFECTIVE IMPLEMENTATION. MONTENEGRO SHALL ENDEAVOUR TO ENSURE THAT ITS EXISTING LAWS AND FUTURE LEGISLATION WILL BE GRADUALLY MADE COMPATIBLE WITH THE COMMUNITY ACQUIS. MONTENEGRO SHALL ENSURE THAT EXISTING AND FUTURE LEGISLATION WILL BE PROPERLY IMPLEMENTED AND ENFORCED. 2.THIS APPROXIMATION SHALL START ON THE DATE OF SIGNING OF THIS AGREEMENT, AND SHALL GRADUALLY EXTEND TO ALL THE ELEMENTS OF THE COMMUNITY ACQUIS REFERRED TO IN THIS AGREEMENT BY THE END OF THE TRANSITIONAL PERIOD DEFINED IN ARTICLE 8 OF THIS AGREEMENT ( 5 YEARS). 3.APPROXIMATION WILL, AT AN EARLY STAGE, FOCUS ON FUNDAMENTAL ELEMENTS OF THE INTERNAL MARKET ACQUIS, INCLUDING FINANCIAL SECTOR LEGISLATION, JUSTICE, FREEDOM AND SECURITY AS WELL AS ON TRADE ‑ RELATED AREAS. AT A FURTHER STAGE, MONTENEGRO SHALL FOCUS OF THE REMAINING PARTS OF THE ACQUIS. APPROXIMATION SHALL BE CARRIED OUT ON THE BASIS OF A PROGRAMME TO BE AGREED BETWEEN THE EUROPEAN COMMISSION AND MONTENEGRO. 4.MONTENEGRO SHALL ALSO DEFINE, IN AGREEMENT WITH THE EUROPEAN COMMISSION, THE MODALITIES FOR THE MONITORING OF THE IMPLEMENTATION OF APPROXIMATION OF LEGISLATION AND LAW ENFORCEMENT ACTIONS TO BE TAKEN.

5. 5 COUNCIL FOR STABILISATION AND ASSOCIATION MNE Government Members EU Concil Members EC Members COMMITTEE FOR STABIL. AND ASSOCIATION MNE Government Representatives EU Council Represent. EC Representatives PARLIAMENTARY COMMITTEE FOR STABILISATION AND ASSOCIATION MNE Parliament Representatives EU Parliament representatives Sub-committees ALL BODIES ARE ESTABLISHED ON DIFFERENT LEVELS OF THE POLITICAL RESPONSIBILITY – JOINTLY MONTENEGRO AND EUROPEAN UNION. SUB-COMMITTEES ARE THE KEY PLACE FOR CHECKING AND IMPLEMENTING OF SAA OBLIGATIONS, SO AS FOR CONDUCTING OF NEGOTIATION PROCESS. 1243567 COLLEGIUM for EI COMMISSION for EI 1. GEI - TRADE, INDUSTRY, CUSTOMS AND TAXATION 2. GEI - AGRICULTURE AND FISHERY 3. GEI - INTERNAL MARKET AND COMPETITION 4. GEI - ECONOMIC AND FINANCIAL ISSUES AND STATISTICS 5. GEI - JUSTICE, FREEDOM, SECURITY AND MIGRATION 6. GEI - INNOVATIONS, TECHNICAL DEVELOPMENT AND SOCIAL POLICY 7. GEI - TRANSPORT, ENVIRONMENT, ENERGY AND REGIONAL DEVELOPMENT Structure / responsibilities of the GEI correspond to the common SUB-COMMITTEES for monitoring of the SAA implementation

6. 6

7. 7 EU INTEGRATION STRUCTURE AND IPA DPM for European Integration (NIPAC) SEI (under direct competence of NIPAC) - Sector for Aid Coordination and EU Funds - Department for national programs - Department for CBC IPA management in the Sector is in charge for: - coordination of process of programming, - implementation and monitoring the EU financial assistance programs, - coordination of cooperation of state authorities with the EU institutions, organs and bodies, its member states regarding foreign assistance and - coordination of donor activities in MNE, etc. UNDER WAY... Introduction of: DIS - Cooperation with various experts on implementing DIS and AMP (Assistance Management Platform) - Data base Pilot Project, starting in October 2007; - Cooperation with donors to get a donor data base with all the other funding project ideas so as to successfully manage project implementation

8. 8 IPA 2007 Political requirements6.0 Civil Society / media 1.0 Fight against corruption / Police Reforms3.0 Justice / Prison conditions 2.0 Socio-economic Requirements 10.9 HRD/Empl/VET/Social pol & serv. 1.5 Tempus / Erasmus Mundus 1.5 Transport (25%) 6.2 Energy 1.5 Nuclear Safety 0.2 European Standards9.37 Preparation for DIS / EU Integration 1.1 Agriculture / Phytosanitry / Veterinary 1.4 Statistics 1.0 Customs 1.92 Public Finance/ Taxation/ Public Pr 0.8 Public Procurement 1.25 Quality Infrastructure 2.0 Total IPA I Component26.27 COMPONENTS IPA II 200720082009 IPA CBC Adriatic CBC Program 0,731,241,36 Montenegro – Albania 0,6 Montenegro - BiH 0,6 Montenegro - Croatia 0,5 Montenegro - Serbia 0,6 SEES 0,680,740,81 MED 0,2 TOTAL 3,914,484,67 Montenegrin SEI actively takes part in CBC: 1. Four programs with neghbouring countries and 2. Three programs with member states Component of MIPD 2007-20092007200820092007-2009 I.Transition Assistance and Institution Building 27.528.128.684.2 II. Cross Border Cooperation 3.94.54.713.1 Total 31.432.633.397.3

9. 9 EUROPEAN INTEGRATION PROCESS OF MONTENEGRO EVOLUTIION EFFICIENCY 2006200720092008201120102012 LET’S GO!

10. 10 LOOKING FORWARD: EUROPEAN INTEGRATION DYNAMIC... EU INTEGRATION CAPACITY Region APSORPTION (administrative) CAPACITY Regata approuch Politics, Acquis,Institutions Budgeting Decision-makin Raise of Efficiency C ondicionality C onsolidation C ommunication 2009 – EU budget revision; Consolidation of enlargement policy; EU Parliament election EU PRESIDENCY 1st half2nd half 2007GermanyPORTUGAL 2008SLOVENIAFRANCE 2009Czech Republic Sweden 2010SpainBelgium 2011HungaryPoland 2012DenmarkCyprus 2013IrelandLithuania 2014GreeceItaly 2015LatviaLuxembourg