1 DPM for European Integration Prof. Dr Gordana Djurovic Regional conference: THROUGH COOPERATION TOWARDS INTEGRATION Milocer, 7. October 2007 MONTENEGRO.

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DPM for European Integration

Prof. Dr Gordana DjurovicRegional conference: THROUGH COOPERATION TOWARDS INTEGRATION

Milocer, 7. October 2007

MONTENEGRO AND EUROPEAN INTEGRATION PROCESS

Country Presentation

REPUBLIC OF MONTENEGROGOVERNMENT OF THE REPUBLIC OF MONTENEGRO

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2000 2001 2002 2003 2004 2005 2006 2007(IMF*)

GDP u mil € (current prices) 1,022.2 1,244.8 1,301.5 1,329.0 1,565.1 1,690.0 1829 2.027

Population 612,496

614,791 617,085

618,233 620,706

623,189 624.963

GDP/pc (current prices) 1.668 2.024 2.109 2..317 2.521 2.711 2.926

Average wage (€) 150.00

176.00 193.00 271.03 302.81 326.50 377.36

Real growth (% GDP) 3.1 1.0 0.8 2.5 4.2 4.3 6.5 7,0

CPI change (annual average) - 22.8 17.8 7.9 3.4 1.8 2.8 3.0

Employed 195.271 197.388 192.901 190.417 192.501 194.426 203.546

Unemployed 81.069 79.960 76.293 68.625 59.002 54.458 43.190

Unemployment rate 32.7 31.5 30.5 25.8 22.6 18.4 14,7 11,71 (sept)

General state balance (% GDP) - -1.6 -2.1 -3.3 -2.2 -2.17 1,2*

Trade balance (% GDP) -45.1 -49.4 -35.5 -26.1 -29.2 -30.8 -39,2

External Public Debt (%GDP) 65.7 64.3 73.2 34.4 34.1 31.1 28,7

External Debt (billion of euros) 0.671 0.674 0.894 0.472 0.502 0.513 0.524

FDI (%BDP) - 1.0 7.1 3.2 3.5 22.8 35,2

FDI – net u billion - 10.6 86.9 43.8 51.8 382.8 644*

Totoal tourism revenues (mil €) 144 151.2 179.7 217.0 320.0

Montenegro: Main economic indicators, 2000-2006

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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

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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.

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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.

1 2 43 5 6 7

COLLEGIUM for EI

COMMISSION for EI

1. GEI - TRADE, INDUSTRY, CUSTOMS AND TAXATION2. GEI - AGRICULTURE AND FISHERY3. GEI - INTERNAL MARKET AND COMPETITION 4. GEI - ECONOMIC AND FINANCIAL ISSUES AND STATISTICS5. GEI - JUSTICE, FREEDOM, SECURITY AND MIGRATION6. GEI - INNOVATIONS, TECHNICAL DEVELOPMENT AND SOCIAL POLICY7. GEI - TRANSPORT, ENVIRONMENT, ENERGY AND REGIONAL DEVELOPMENT

Structure / responsibilities of the GEI

correspond to the common SUB-COMMITTEES

for monitoring of the SAA implementation

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EUROPEAN INTEGRATION PROCESS COORDINATION ORGANIGRAM

International and Domestic partners for

development

TECHNICAL SUPPORT EXPERT SUPPORT

Deputy Prime Minister for European Integration

Mission to Brsseles

SEI COMMISSION FOR EU INTEGRATION

HEADS OF GROUPS

GROUPS (Subcommittees)

MINISTRIES

Training IT

Translation

Local Partners CBM, faculties, bussines associations, trade unions, NGOs...

MFA

GOVERNMENT

College for European Integration

MONTENEGRIN PARLIAMENT Parliamentary Committee

for International Cooperation and

European Integration

COUNCIL FOR EUROPEAN

INTEGRATION

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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

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IPA 2007

Political requirements 6.0Civil Society / media 1.0Fight against corruption / Police Reforms 3.0Justice / Prison conditions 2.0Socio-economic Requirements 10.9HRD/Empl/VET/Social pol & serv. 1.5Tempus / Erasmus Mundus 1.5Transport (25%) 6.2Energy 1.5Nuclear Safety 0.2European Standards 9.37Preparation for DIS / EU Integration 1.1Agriculture / Phytosanitry / Veterinary 1.4Statistics 1.0Customs 1.92Public Finance/ Taxation/ Public Pr 0.8Public Procurement 1.25Quality Infrastructure 2.0Total IPA I Component 26.27

COMPONENTS IPA II 2007 2008 2009

IPA CBC Adriatic CBC Program 0,73 1,24 1,36

Montenegro – Albania 0,6 0,6 0,6

Montenegro - BiH 0,6 0,6 0,6

Montenegro - Croatia 0,5 0,5 0,5

Montenegro - Serbia 0,6 0,6 0,6

SEES0,68

0,74 0,81

MED 0,2 0,2 0,2

TOTAL 3,91 4,48 4,67

Montenegrin SEI actively takes part in CBC:

1. Four programs with neghbouring countries and2. Three programs with member states

Component of MIPD 2007-2009 2007 2008 2009 2007-2009

I. Transition Assistance and Institution Building 27.5 28.1 28.6 84.2

II. Cross Border Cooperation 3.9 4.5 4.7 13.1

Total 31.4 32.6 33.3 97.3

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EUROPEAN INTEGRATION PROCESS OF MONTENEGRO

EVOLUTIION

EFFICIENCY

2006 2007 20092008 20112010 2012

LET’S GO!

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LOOKING FORWARD: EUROPEAN INTEGRATION DYNAMIC...

EU

INTEGRATION CAPACITY

Region APSORPTION

(administrative)CAPACITY

Regata approuch

Politics, Acquis,Institutions

BudgetingDecision-makin

Raise of Efficiency

Condicionality

Consolidation

Communication

2009 – EU budget revision; Consolidation of enlargement policy; EU Parliament election

EU PRESIDENCY

1st half 2nd half

2007 Germany PORTUGAL

2008 SLOVENIA FRANCE

2009 Czech Republic Sweden

2010 Spain Belgium

2011 Hungary Poland

2012 Denmark Cyprus

2013 Ireland Lithuania

2014 Greece Italy

2015 Latvia Luxembourg