President of Montenegro Jakov Milatovic sent a letter to the European Commissioner for Enlargement Marty Kos in which it requests an official opinion on the compliance of the intergovernmental Agreement on Cooperation in the Field of Tourism and Real Estate Development, signed between the Government of Montenegro and the United Arab Emirates (UAE), with the acquis communautaire of the European Union (EU), the Stabilization and Association Agreement of Montenegro with the EU and the values it cherishes, "Vijesti" has learned from diplomatic sources.
A source for "Vijesti" explained that Milatović sent a letter regarding this Agreement last Friday, which MPs should vote on this week. In addition to this, MPs should also vote on the Agreement on Economic Cooperation between the two countries.
"Milatović stated in the letter that the Government had sent the aforementioned Agreement with the UAE to the Parliament with the aim of its adoption in the form of a lex specialis. Upon completion of the legislative procedure in the Parliament, the adopted law (which represents the Agreement with the UAE) will be sent to the President of Montenegro, where he will have to decide whether to sign it or not. In making that decision, as he stated, he must be absolutely certain that the Agreement on Cooperation in the Field of Tourism and Real Estate Development is fully in line with EU legislation and the long-term vision of Montenegro's development as a future EU member," the source of "Vijesti" stated.
In his letter, Milatović informed Kos that a discussion in the Parliament is expected this week, given that the Government has requested urgent parliamentary consideration and adoption of the law, and that therefore, as a source in "Vijesti" says, the EC's opinion on this issue would be of crucial importance for the discussion in the Parliament, as well as for his decision when the law is submitted to him for signature.
The President pointed out to the European Commissioner that, given Montenegro's goal of EU membership, significant concerns arise from the incompatibility of key provisions of these agreements with the SAA.
“For example, Article 3a of the Agreement provides for an exemption from the laws regulating public procurement, which allows a private investor from the UAE to directly gain access to a part of state land in Montenegro without prior public procurement procedures. According to Article 3c of the Agreement with the UAE, the Government undertakes to carry out all public infrastructure works necessary for the investment of the private investor. On the other hand, according to the SAA, any state aid that distorts market competition by giving an advantage to a particular participant is prohibited (Article 73). Also, Montenegro is obliged to provide non-discriminatory conditions for domestic and EU companies in procedures concerning the award of contracts (Article 76). This raises the question of whether the Agreement on Cooperation in the Field of Tourism and Real Estate Development between Montenegro and the UAE is in line with EU legislation,” the letter states, citing a source from “Vijesti”.
The President, according to a source from "Vijesti", pointed out that Montenegro has made significant steps towards its European path, and believes that we are currently the most advanced candidate for EU membership, and that the progress made in EU-related reforms, especially in the area of the rule of law, will prove crucial if we want to become the 28th member of the EU.
"Milatović agrees that these two agreements with the UAE can have a number of positive aspects for the development of the Montenegrin economy, and different interpretations of their legal and institutional effects have emerged in Montenegro - especially when it comes to their compliance with domestic legislation and international obligations of Montenegro, including the Stabilization and Association Agreement (SAA) with the EU," the interlocutor of "Vijesti" pointed out.
Hope will prevail over the voice of reason in the messengers
Yesterday, Milatović received representatives of some non-governmental organizations in Montenegro who approached him regarding the Agreement on Cooperation in the Fields of Tourism and Real Estate Development.
As announced by his office, representatives of the non-governmental sector and various associations expressed their views and expressed concern regarding the agreement itself.
"First of all, I would like to thank them for the active role they have played in this, so far, rather non-transparent relationship of the authorities towards the agreement. I would like today, after this meeting, to send an appeal that the discussion regarding the agreement, which has now already come to the Parliament in the form of a law, should not take place until we receive clear positions from the EC, but also from the competent agencies in Montenegro, such as the Agency for the Prevention of Corruption and the Agency for the Protection of Competition (AZK) regarding the agreement. I think it is very important to respect these legal prerequisites and to receive very clear positions from these agencies, but also from the EC, before the MPs start discussing the agreement in the Parliament," Milatović said after the meeting.
Executive Director of the Center for Bird Conservation and Research Jovana Janjušević said that what concerns 36 non-governmental organizations and 10.000 petition signatories is the Agreement signed with the UAE in the field of tourism and real estate, which completely derogates from our national legislation and abolishes the institute of public tendering.
"In addition to the fact that we are talking about an area that is of international importance and is not only the heritage of Montenegro, leasing and enabling an investor to lease Velika Plaža or any location in the south and north of the country will allow them to become not only a tenant of this location for 99 years, but will also transfer ownership rights, because our legislative framework allows a villa investor to purchase the ownership rights of the land on which the property in question is located in a single period without a public tender," Janjušević pointed out.
On behalf of the NGO she represents, she called on MPs not to vote on this agreement and stressed that she hopes that the voice of reason will prevail in the political life of Montenegro.
Representatives of the Strategy for a European and Civic Montenegro (STEGA) yesterday called on MPs to temporarily postpone the decision on the agreement with the UAE. This was announced at a press conference organized by STEGA on the topic "Construction of apartments, with a smile, kills tourism".
"If the Agreement is adopted, it would, as a "lex specialis", have priority over domestic laws in the event of disputes. Additionally, arbitration in the event of a dispute is not provided for anywhere. The Agreement, which relates to tourism and real estate development, states that in its implementation "no procedure related to public procurement, public tender or public competition will be applied", which also applies to the alienation of state property, which has not been included in any interstate agreement between Montenegro and any state, but only the exclusion for the procurement of raw materials and materials", said a member of the economic editorial staff of Stege Vladimir Nikaljević
Contract with UAE under scrutiny by the Competition Protection Agency
Before signing an intergovernmental agreement with the United Arab Emirates or any similar document that could potentially contain elements of state aid, the Government had to consult the Competition Protection Agency (CPA), and only after receiving an opinion, formalize the aforementioned procedure.
This was officially announced yesterday by the President of the Council of the Agency for the Protection of Competition (AZK). Dragan Damjanovic.
A few days ago, AZK told "Vijesti" that they have not been asked for their opinion on the proposed two agreements signed by the governments of Montenegro and the United Arab Emirates (UAE) on cooperation in the field of tourism and real estate development and on economic cooperation because none of them asked for their opinion on them.
Since this step was not respected, the AZK Council, Damjanović announced, will give precise instructions to the expert services and, through the pre-examination procedure, collect all necessary documentation for the possible initiation of a subsequent control procedure.
"The agency will assess the effects of the agreement in question through subsidies and benefits that Montenegro will provide to the investor in terms of state aid, with the aim of realizing the announced investment. We note that the EU framework for granting state aid and granting subsidies is very strict and precise, and therefore requires transparency and full compliance with European rules. The Stabilization and Association Agreement (SAA) defines obligations between member states and Montenegro, and the introduction of such an agreement into Montenegrin legislation could cause a collision of norms and significantly slow down the path towards the EU, which the Government considers a priority," said Damjanović.
He pointed out that initiating the ex-post control procedure would lead to the suspension of all procedures regarding the implementation of the Agreement with the UAE, until the Agency's final opinion.
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