EU Assistance

Montenegro has been receiving financial assistance from the EU since 1998. Overall, between 1998 and 2010 the EU committed over €408.5 million to Montenegro. From 1998 to 2006, this included EU CARDS assistance worth €277.2 million. Between 2007 and 2013 Montenegro has received a total of €235 million (please see table below).

Since 2007 CARDS assistance was replaced by the Instrument for Pre-Accession Assistance (IPA). The IPA Regulation for the period 2007-2013 expired on 31 December 2013, but implementation was still underway. The IPA II regulation came into force on 16 March 2014 and is applicable retroactively from 1st January 2014. The purpose of IPA is to help candidate (Albania, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey) and potential candidate countries (Bosnia and Herzegovina and Kosovo according to UNSCR 1244) to progress towards fully meeting the Copenhagen political and economic criteria as well as adopting and implementing the EU acquis communautaire.

Montenegro has had an access to all five IPA components under IPA 2007-2013:

  • Component I (Transition Assistance and Institution Building – also known as National Programme) which is available for candidate and potential candidate countries;
  • Component II (Cross-Border Cooperation) which is available for candidate and potential candidate countries;
  • Component III (Regional Development) which is available only for candidate countries;
  • Component IV (Human Resources Development) which is available only for candidate countries;
  • Component V (Rural Development) which is available only for candidate countries.

IPA Financial allocation to Montenegro 2007-2013 by component (€ million)

YEAR

2007

2008

2009

2010

2011

2012

2013

TOTAL

Transition Assistance and Institution Building

27.5

28.1

29.8

29.8

29.8

16.3

5.0

166.5

Cross-border Cooperation

3.9

4.5

4.7

3.7

4.3

4.6

4.7

30.3

Regional Development

-

-

-

-

-

8.0

14.7

22.8

Human Resources Development

-

-

-

-

-

2.8

2.8

5.6

Rural Development

-

-

-

-

-

3.2

7.3

10.5

TOTAL

31.4

32.6

34.5

33.5

34.1

34.9

34.5

235.7

IPA II sets a new framework for providing pre-accession assistance for the period 2014-2020 for which an indicative amount of EUR 270.5 million is foreseen to be allocated (please see table below).

The most important novelty of IPA II is its strategic focus on priority sectors and on the performance of the beneficiary countries in implementing key reforms needed for EU accession. Country Strategy Papers are the specific strategic planning documents made for each beneficiary for the 7-year period. These will provide for a stronger ownership by the beneficiaries through integrating their own reform and development agendas. A Multi-Country Strategy Paper will address priorities for regional cooperation or territorial cooperation.

IPA II targets reforms within the framework of pre-defined sectors. These sectors cover areas closely linked to the enlargement strategy, such as democracy and governance, rule of law or growth and competitiveness. This sector approach promotes structural reform that will help transform a given sector and bring it up to EU standards. It allows a move towards a more targeted assistance, ensuring efficiency, sustainability and focus on results.

IPA II also allows for a more systematic use of sector budget support. Finally, it gives more weight to performance measurement: indicators agreed with the beneficiaries will help assess to what extent the expected results have been achieved.

IPA assistance builds on a number of strategic documents, such as the European Partnership and the Stabilisation and Association Agreement (SAA) priorities which are reflected in the Indicative Strategy Papers (ISP) replacing the Multi-annual Indicative and Planning Documents (MIPDs) used until 2013. The programmes are adopted by the Commission following consultation with the beneficiary countries and other stakeholders. They are implemented in one of three ways: by direct, indirect or shared management.

The Commission supervises the implementation of the programmes through its services in the Directorate General responsible for enlargement and in EU Delegations in the countries concerned. A monitoring system has been established which includes Joint Monitoring Committees between the Commission and the beneficiary countries, where the implementation of financial assistance programmes is discussed with the help of monitoring and evaluation reports and corrective actions are agreed upon as necessary. Further monitoring takes place at strategic, sector and action levels.

Strategic objectives for IPA 2014-2020 in Montenegro are the following:

·Sustained pre-accession assistance in two most strategic sectors:

oRule of Law and Fundamental Rights

oDemocracy and Governance

·Ensuring stable economic growth / convergence towards EU development:

oCompetitiveness and Innovation, Education, Employment and Social policies

·Economic potential and alignment with EU acquis:

oAgriculture and Rural Development, Environment, Transport

·Reconciliation and regional integration:

oRegional Cooperation and Territorial Cooperation (CBC)

IPA II indicative allocation for Montenegro (€ million)

2014

2015

2016

2017

2018-2020

Total

Climate change

(%)

m

DEMOCRACY AND RULE OF LAW

18.8

15.8

12.8

13.3

38.5

99.2

Democracy and Governance

29.1

17.8

46.9

Rule of Law and Fundamental Rights

31.6

20.7

52.3

COMPETITIVENESS AND GROWTH

20.7

19.8

24.7

26.3

85.0

171.3

Environment and Climate Action

18.8

18.7

37.5

80%

Transport

20.2

11.8

32.1

80%

Competitiveness and Innovation

12.3

8.9

21.2

Education, Employment and Social policies

15.3

12.8

28.1

Agriculture and Rural Development

24.7

27.7

52.4

10%

TOTAL

39.5

35.6

37.5

39.6

118.5

270.5

Conferral of management has been given to IPA components III and IV while the Financing Agreements are due to be signed in the beginning of 2015. After the signing of Financing Agreements, Components III and IV will be operational under the decentralized management.

As regards territorial cooperation, during the programming period 2007-2013 Montenegro has successfully participated in five IPA Cross-Border Cooperation programmes with Albania, Bosnia and Herzegovina, Croatia, Serbia and since 2011 with Kosovo[1], as well as in two transnational cooperation programmes (South-East Europe and Mediterranean) and in the IPA Adriatic cross–border programme with Member States.

During the period 2014-2020 Montenegro is expected to participate in the following IPA II CBC programmes: CBC with Member States: Croatia - Bosnia and Herzegovina - Montenegro and Italy – Albania – Montenegro (trilateral) and CBC with IPA II beneficiaries: Serbia - Montenegro; Montenegro - Bosnia and Herzegovina; Montenegro – Albania and Montenegro – Kosovo.

As for the assistance provided to Montenegro through the European Instrument for Democracy and Human Rights (2012 – €0.6 million; 2013 – €0.6 million) the budget of EUR 600.000 has been allocated for each year from 2014 until 2020.



[1] This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the IСJ Opinion on the Kosovo Declaration of Independence.