The Commission is monitoring how you choose your investor: EU Delegation on possible violation of European regulations due to the agreement with the UAE

The Delegation did not directly answer whether the implementation of the agreement in its current form could jeopardize the closure of the chapter on public procurement;

The MEPs say that Montenegro has so far demonstrated a high degree of compliance with the EU acquis in the field of public procurement, which, they say, has enabled the fulfilment of the benchmarks.

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Milojko Spajić and UAE President Sheikh Mohamed bin Zayed Al Nahyan, Photo: Bojan Gnjidić/Government of Montenegro
Milojko Spajić and UAE President Sheikh Mohamed bin Zayed Al Nahyan, Photo: Bojan Gnjidić/Government of Montenegro
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The European Commission will closely monitor the implementation of the Agreement on Cooperation in the Field of Tourism and Real Estate Development between the Governments of Montenegro and the United Arab Emirates (UAE), as well as the compliance of that document with European Union (EU) rules, which include compliance with rules on public procurement, state aid, investor selection, impact on public financial management and the fight against corruption, and compliance with environmental standards.

This was announced to "Vijesti" yesterday by the EU Delegation in Podgorica. The newspaper asked her whether, if the Government, after the possible re-adoption of the agreement, avoids the application of regulations on public procurement and tenders, as well as prevents competition in the market, this will jeopardize the closure of Chapter 5 (public procurement), and whether, if the state closes that chapter in June, and the executive branch subsequently concludes a direct deal with one of the Arab companies, ignoring the principles of competition and the laws on public procurement and tenders, it is possible to reopen the said chapter.

The Delegation stated that they are aware of the agreement and that the European Commissioner for Enlargement Marta Kos in response to a request for the opinion of the head of state Jakov Milatović recalled that all international agreements concluded by Montenegro should be in accordance with the national constitutional and legal framework, as well as the Stabilization and Association Agreement (SAA) between Montenegro and the EU, and that Podgorica should take into account the obligations from the EU acquis that it will have to fully respect upon accession to that community.

"Given Montenegro's aspiration to become a member of the EU, its economic growth must be achieved in a manner that is in line with EU standards, and agreements must be implemented transparently and in line with the EU acquis in various areas. The European Commission will monitor this closely and stands ready to assist Montenegro in this process, if necessary," they said.

The Delegation said that based on the Commission's analysis, the agreement with the UAE, at first glance, does not contain sufficiently detailed provisions "which would in themselves be contrary to EU law or the SAA."

The government is spared criticism, but...

Kos stated in her letter to Milatović that improper application and interpretation of some provisions of the agreement could lead to violations of European regulations in the field of public procurement, and discrimination against European and Montenegrin companies in favor of potential investors from the UAE.

The agreement with the Emirates stipulates that the government of that country proposes and guarantees for private investors to cooperate with the Montenegrin executive authorities on the implementation of two tourism projects in the north and south of the country, with the written consent of the Government in Podgorica.

Although he had not received the Kos opinion, on April 29th, Milatović returned the disputed document to the Parliament for reconsideration, while he signed the decree promulgating the Agreement on Economic Cooperation with the UAE.

Civic activist Dina Bajramspahić, told "Vijesti" on Wednesday that Kos' response is a diplomatic checkmate for the Government. The shortest way, she says, is to say that the EC's position is - "the agreement is not a problem, but you must not implement it the way you wrote it", which, she adds, spared the Government harsh criticism, "but put it in a hopeless situation".

She stated that the agreement with the UAE makes the closure of the public procurement chapter questionable, adding that the government's steps regarding the agreement "will be monitored even more closely than usual."

"At such a sensitive moment, the Government of Montenegro, unfortunately, is hindering more than helping to ensure a positive outcome," Bajramspahić stated.

On the night of April 22-23, the Parliament ratified two agreements between the governments of Montenegro and the UAE. These documents were signed in Dubai on March 28 by the Prime Minister Milojko Spajic, after which he sent them to the parliamentary procedure in the form of a bill.

Previously, he presented the Arab billionaire's intention to the leaders of Ulcinj and local parties there. Mohamed Alabara to allegedly invest 35 billion euros in the construction of a tourist complex in that municipality and to lease the entire Ulcinj Velika Plaza for 99 years.

Part of the public, political parties and the non-governmental sector claim that the agreements are contrary to state interests in several areas and that they jeopardize Montenegro's path towards the EU. The Ulcinj authorities, part of the civil sector, as well as some Albanian parties in the state government protested against the agreements.

MEP: Government will not jeopardize European path

The Ministry of European Affairs (MEP) did not specify whether avoiding the application of the Public Procurement Law, after the re-adoption of the agreement with the UAE, could jeopardize the closure of Chapter 5, but instead stated that Montenegro has so far demonstrated "a high degree of compliance with the EU acquis in the field of public procurement", which, they say, enabled the fulfillment of the benchmarks.

"The Government of Montenegro will carefully monitor the proper implementation of the agreements in question, so that it does not lead to a derogation of the law, nor does it call into question the credibility of the reforms and jeopardize the country's European path," they told "Vijesti".

They claim that the executive branch, with regard to the implementation of the agreement with the UAE and accompanying contracts, "will not risk undermining the progress achieved in Chapter 5."

When asked how many chapters the country expects to close at a possible intergovernmental conference (IGC) with the EU in June, they replied that during the Polish presidency of the Council of the EU (January 1 - June 30 this year), two chapters are planned to be closed. They said that Montenegro has intensified its efforts to meet the final benchmarks in several chapters simultaneously, and that "three negotiation chapters are currently internally ready."

"... And which one will be closed also depends on the European Commission's final assessment of the fulfillment of the benchmarks," they added.

During the Polish Presidency of the Council of the EU, two chapters are scheduled to be closed: Government of Montenegro (Illustration)
During the Polish Presidency of the Council of the EU, two chapters are scheduled to be closed: Government of Montenegro (Illustration)

The MEPs note that "due to the standstill in the work of the Parliament at the end of last year and the beginning of this year," the adoption of key laws necessary for the closure of Chapter 4 (Free Movement of Capital) was delayed, which, they say, also affected the dynamics of sending the final benchmarks.

When asked why there were no intergovernmental conferences in the first five months of the Polish presidency, MEPs replied that the EU organizes conferences “when there are reasons such as encouraging reform momentum, opening chapters or a candidate’s readiness to close chapters, and when all member states give the green light for this”. They stated that Montenegro is currently in the final phase of accession negotiations, so that the IGC will be held “exclusively when there are major developments such as the determination of readiness to close chapters”.

"It is expected that thanks to the previous work, concrete results will be achieved in June, which coincides with the priorities of the Polish presidency," they told the newspaper.

Polish Embassy: You still have a chance to cross out one or two chapters

The Polish Embassy in Podgorica told "Vijesti" that Montenegro still has a chance to close one or two chapters by the end of that country's presidency of the Council of the EU.

Poland's mandate to manage the Union lasts until June 30th, after which Denmark will take over the "baton" until January 1st of next year.

"There are still chances to organize an intergovernmental conference with Montenegro and close one or two chapters of the accession negotiations. However, progress in accession depends on a number of factors, including the consent of all EU member states," they said.

Mercier: Economic growth must follow EU standards

European Commission spokesperson Guillaume Mercier announced that, given Montenegro's aspiration to become an EU member, the country's economic growth will have to be achieved in a manner that is in line with EU standards.

He added that the agreements reached should be implemented in a transparent manner, and with full respect for the acquis communautaire in various areas.

"The European Commission will monitor this closely and is ready to provide assistance to Montenegro in this regard, if necessary," he said.

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