Božović: Arbitration is one of the key ways to avoid the shortcomings of standard court forms

Minister of Justice Bojan Božović said that arbitration is one of the key ways to avoid the shortcomings of standard court forms, so Montenegro must prepare on every side to be competitive in the market, and perhaps even become a regional center of arbitration law.

He made this announcement at a conference on arbitration - "Strengthening legal certainty for the arrival and development of foreign investments."

The opening speech at the conference was supposed to be given by Prime Minister Milojko Spajić, but he did not attend due to previously undertaken commitments, so he was replaced by Deputy Prime Minister and Minister of Economic Development Nik Đeljošaj.

Božović stressed that this topic preoccupies every institution in Montenegro because there is no escape from the aspiration for a higher level of rule of law. He pointed out that disputes before domestic courts must be efficient, fair and successful, in order to attract investors and capital, and thus benefits for all citizens.

He added that the Arbitration Law has been in force for the last ten years, and that work is underway on it and an analysis of the Criminal Procedure Law.

"We may also become a regional center for arbitration law. In our conversations, we heard that attracting investments requires a high level of rule of law and political stability. The idea is to continue analyzing the legislative framework and, by adopting the new Law on Business Companies, create a more favorable environment for investors. We cannot expect the arrival of new investors if this is not fulfilled," said Božović.

He also believes that this analysis and the following ones will pave the way for a better legal framework, that they have results but also the potential to seize the moment. He claims that the climate must be used if Montenegro is to close the negotiation chapters.

"Arbitration is more than suitable to be a key institute to avoid the shortcomings of standard court forms. We must prepare ourselves on every side to be competitive in the market. We must take care to strengthen the capacities of the judiciary, it is not enough to create facilities and appoint judges. We must create a legislative framework so that not everything that comes to court comes before the court. We could and must create a framework for alternative dispute resolution, and in this way we can achieve much better results," he said.

Božović emphasized that the courts cannot be overwhelmed with cases because then a larger number of judges would need to be hired, and that investors do not want to participate in processes that last several years...

He pointed out that alternative dispute resolution is dominant in Western Europe, so the acquisition of knowledge should be increased. He announced that Montenegro should organize additional training for arbitrators and judges, because the challenges in the modern world are enormous. He added that judges cannot be expected to respond to all challenges on their own...

Đeljošaj said that he is convinced that no area can be regulated in a quality manner without a legal framework and legal certainty.

"Laws are not there to burden business, but must provide a framework for easier and faster development. Along with numerous measures to improve the business environment, because we are a country with the lowest tax burden on labor, we must have more efficient mechanisms for resolving disputes. Arbitration must be strengthened as a way of resolving disputes, which is why it is necessary to thoroughly approach the strengthening of judges. Then we can become a regional and European center for these issues...", emphasized Đeljošaj.

The European Union Ambassador to Montenegro, Johan Sattler, said that the initiative to establish a regional arbitration center in Montenegro could contribute to greater rule of law. He also claims that negotiating chapters 23 and 24 are the alpha and omega of the EU accession process, and that the past year was good for Montenegro and enabled the closure of many.

"If you do not make progress in legal terms, you will not be able to join the EU. That is why it is important that Montenegro has shown through IBAR that it is possible to adopt 12, 13 laws in a short time... You have managed to elect a new president of the Supreme Court, now we can see that you are serious and that chapters can be closed," he said.

Sattler added that at the December EU conference, one could see the satisfaction of the member states because Montenegro is leading the accession process. He added that the efficiency of the courts is a big problem, that arbitration would take the burden off the courts, that it is cheaper and resolves disputes faster.

He stressed that in the past, indictments have been filed, but a small number of cases have been completed, which must change.

He says that since gaining independence, Montenegro has been a leader in foreign investment, which has helped increase GDP and create the basis for a better standard of living.

"It is important to continue attracting investment during this period. Relying on tourism to the extent of 30 percent of GDP is not healthy, the economy must diversify. We have decided to help diversify the economy, we have recognized that Montenegro has advantages in food production, transport, and especially through the Port of Bar, you have a railway that goes to Belgrade, and the potential for biotechnology in food production, as well as energy," said Satler.

Chargé d'Affaires at the British Embassy in Podgorica, Sarah Pilbeam, said that arbitration is crucial for strengthening investor confidence and development, but also reducing the burden on the court system.

Pilbim also said that this could reduce delays and boost investor confidence, and that Montenegro needs additional efforts to strengthen institutions and train trainers, but that they are ready to help.

"Montenegro's ambition to be a regional hub for arbitration is realistic but requires additional work," she said, adding that the United Kingdom supports legal reform because it is also in the interest of British investors.

Supreme Court President Valentina Pavličić stressed that the Montenegrin judicial system must keep pace with the economy, so that legal regulations prevail at the international level. She emphasized that she is satisfied that the Supreme Court is doing what the Constitution has given it the authority to do, namely to ensure the application and rule of law according to world standards.

She added that they see Great Britain as a "lifeline" on this path, and that they will ensure that the law is in line with the times we live in.

Gary Born, a partner at the London law firm Cutler Pickering Hale and Dorr, said in a video address that he cannot emphasize enough how important arbitration is for the advancement of investment, as businesses around the world demand quick and honest dispute resolution.

He added that it is important for Montenegro to have a system conducive to arbitration, to respect the New York Convention, to improve the system and to continue to do so in order to create a predictable legal climate for companies. He emphasized that Montenegro, as a regional center, has the potential to be a neutral point, where international parties will resolve disputes.