President Jakov Milatović did not sign the Law on Ratification of the Agreement on Cooperation in the Field of Tourism and Real Estate Development between the Government of Montenegro and the Government of the United Arab Emirates and returned it to the Parliament of Montenegro for reconsideration.
As announced by the Cabinet of the President of Montenegro, Milatović signed the Law on Ratification of the Agreement on Economic Cooperation between the Government of Montenegro and the Government of the United Arab Emirates.
The reasons for returning the Law on Ratification of the Agreement on Cooperation in the Field of Tourism and Real Estate Development between the Government of Montenegro and the Government of the United Arab Emirates for re-decision by the Parliament of Montenegro Milatović are contained, as stated, in numerous open questions regarding the Agreement in question, to which the public has not received adequate answers from the Government of Montenegro.
The main objections, as announced, relate to:
- deviations from constitutional provisions concerning the provision of free competition and equal position in the market;
- suspension of the application of Montenegrin legislation relating to public procurement, public tenders and state property, with the additional provision that the rest of Montenegrin legislation will also be subject to amendments in order to implement the Agreement;
- lack of legal and financial analyses in relation to the numerous obligations assumed by the Government on behalf of Montenegro under the Agreement, the implementation of which in the future may lead to the fiscal unsustainability of the public finance system;
- determination of public interest by the Agreement, in advance, without specifying the locations and characteristics of future projects, which introduces legal uncertainty for all citizens of Montenegro whose property may be the subject of investor interest;
- failure to define the structure of future projects when it comes to the relationship of the tourism development component to real estate development, especially considering that real estate development cannot be treated within the legal definition of public interest.
"The agreement practically represents a unilaterally binding act that stipulates a series of obligations for the state of Montenegro, while it does not contain any specific obligation of the other party that would ensure the protection of the interests of our state in this legal matter," it was announced.
He adds that with this approach, the Government has "put Montenegro in an unequal position in relation to the other contracting party, the explanation states."
"In the document submitted to the Parliament of Montenegro, the President also pointed out the high level of non-transparency that accompanied the preparation and signing of the Agreement in question and the danger that deviations from the accepted rules of the market economy and the provision of state aid could jeopardize the continuation of the EU path. Also, the question of the compliance of the Agreement with systemic laws in the field of competition protection and state aid control is raised, which was also discussed by the management of the Agency for the Protection of Competition. He particularly highlighted the statements from the opinion of the Agency for the Prevention of Corruption of April 15, 2025, which contains numerous objections to the content of the Agreement in question, as well as the positions of EU officials who expressed concern about possible deviations from EU rules in certain segments of the Agreement."
The statement also states that Milatović called on MPs to take into account all objections to the Agreement that have been raised in the past period by representatives of state bodies, local communities, the NGO sector and EU officials, in order to prevent harmful consequences for the realization of state interests, when making a new decision.
The full text of the explanation that Milatović sent to the Parliament of Montenegro can be read here. HERE.
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