Press release from 106th Cabinet session

Podgorica, Montenegro (24 January 2019) — At today’s session, the Montenegrin Cabinet passed the Montenegro Economic Reform Programme 2019-2021, as the most important document in the economic dialogue with the European Union. The Economic Reform Programme is also a strategic document for medium-term macroeconomic and fiscal programming, which also contains the accompanying agenda of structural reforms important for reducing or eliminating obstacles to economic growth and strengthening competitiveness. Montenegro’s strategic development goal defined by the programme is a sustainable and inclusive economic growth that will contribute to reducing the development gap in relation to the EU average and increasing the quality of life of citizens. The programme is fully consistent with the annual Budget Law and the Medium-Term Budget Framework, as well as the strategic development documents of Montenegro.

The Cabinet also passe the Agrobudget for 2019 amounting to EUR 52.4 million (31% more than last year).

The Government passed the Customs Tariff Regulation for 2019, which specifies the level of customs rates for this year, in line with the dynamics established by the Law on the Confirmation of the Protocol on the Accession of Montenegro to the Marrakesh Agreement on the Establishment of the World Trade Organisation. The basic changes relate to the reduction of customs rates and changes in the nomenclature. Annex I of the Protocol on the Accession of Montenegro to the WTO for a certain number of products from the Customs Tariff (mainly agricultural products) defines the so-called “the ultimate upper boundary restriction,” which represents the rate of duty to be applied by Montenegro up to a certain date on imports of those products. It is stipulated that the reduction of customs rates will be implemented annually in the same stages, starting from the date of accession of Montenegro to the WTO.

In order to comply with European and international laws, the Government amended the National Air Transport Facilitation Programme.

The Government passed the Action Plan for the harmonisation of special laws with the Law on State Administration. The new Law on State Administration prescribes, among other things, the criteria for the establishment of state administration bodies, state agencies and funds, the way of planning work and reporting through monitoring the results achieved in relation to the set goals, clear lines of responsibility at all levels, in order to contribute efficiency of work and operation and provide a high level of quality in the provision of services. The harmonisation of special laws with the Law on State Administration improve the organisational structure and align the organisation of the state administration with the European standards.

At today’s session, the Cabinet passed the Information on the conclusion of the Agreement on the transfer of credit and grant funds for the needs of implementing the project “Wastewater Collection and Treatment in Podgorica,” ​​financed from a loan arrangement signed on 22 September 2017 by the German Development Bank (KfW) and the Government of Montenegro, in the amount of 35 million euros. On that occasion, the Government gave its approval to the Capital City of Podgorica for loan funds provided by the arrangement with KfW Bank, and accepted the Agreement on the transfer of credit and grant funds for the needs of the project “Collection and treatment of wastewater in Podgorica”. It is envisaged that the Capital City will transfer funds of a loan arrangement of 35 million euros, of which the amount of 26 million euros will be transferred without obligation to return, while the remaining amount of 8,050,000 euros the Capital City will be obliged to return to the State.

The total value of the project is around EUR 50.35 million and will be financed from three sources: a grant of EUR 10.15 million provided by the Investment Framework for the Western Balkans, a loan from KfW Bank in the amount of EUR 35 million and the Capital City’s sources amounting to about EUR 5.2 million.

The Government passed the Report on the Implementation of the Action Plan for the Implementation of the United Nations Security Council Resolution 1325 – Women, Peace and Security in Montenegro (2017-2018). The Action Plan elaborates three key areas for the implementation of Resolution 1325, which deal with increasing women’s participation in decision-making and peace processes, the protection of women and girls in conflict zones, and the integration of gender perspectives and gender education in peacekeeping operations, and the areas of mechanisms for its implementation and its accompanying resolution. The plan identified 9 goals and 41 activities, out of which 32 activities were realised, 4 activities were partially realised, 1 activity is in progress, while 4 activities are not realised.

The Government passed the Information on the provision of funds for covering the expenses for conducting elections for electing councilors in the Municipal Assembly of Tuzi, which will take place in March 2019. In accordance with the Law on Territorial Organisation of Montenegro and the Law on Financing Political Entities and Election Campaigns, the Government decided to provide EUR 58,250.00 for covering the expenses of the elections, as well as EUR 2,992.00 for financing the costs of the election campaign for submitters of the electoral lists in the Municipality of Tuzi.



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