Head of State Jakov Milatovic He returned only two laws to parliament this year, while last year he sent as many as 16 already passed regulations for reconsideration.
This follows from data provided to "Vijesti" by the President's Public Relations Office.
During his two and a half years in office, Milatović returned a total of 18 laws to the highest legislative chamber, but the deputies adopted 17 of them.
According to the Constitution (Article 94), the President of the State has the option to return the voted law to the Parliament, but is obliged to promulgate that act if the deputies support the regulation again.
Milatović was inaugurated on May 20, 2023, and returned the first laws to parliament in early January 2024 (these regulations were on the agenda of the second regular autumn session in 2023). By the end of 2024, Milatović had returned 13 more laws, and this year two.
The only act that the parliament did not re-vote after Milatović returned it was the amendments to the Law on Electronic Communications. At that time, it needed three “hands” to get the regulation back in support (42 MPs voted - 38 abstained, four against).
Although Milatović returned only two regulations this year, it should be borne in mind that the Parliament will decide on numerous regulations by the end of the year - as announced by the Prime Minister. Milojko Spajic (Europe Now Movement). He said in mid-week that there will be a hundred laws in the highest legislative chamber in December, and that there will be many appointments.
Also, last year, numerous regulations were changed and adopted "under the radar" in parliament due to demands in negotiations with the European Union (EU)...
The head of state's office told the editorial staff that Milatović returned every law with a clear and well-argued explanation, and that "practice has already shown" that his warnings were justified.
According to them, it happened that the regulations that Milatović returned were later changed, not adopted, or even that EU institutions confirmed that the solutions were not in line with European standards, "which further confirms the validity of his objections."
"Thus, he confirmed the role of the president as an important corrective of the legislative process, demonstrating consistency in protecting constitutionality, public interest and Montenegro's European path," the response to "Vijesti" reads.
Public Service and Judicial Council
The first set of laws that Milatović returned (January 3, 2024) were regulations on local government financing, companies, and electronic communications.
As announced by Milatović's cabinet, he assessed at the time that the proposed amendments to the law on financing local self-government, i.e. the reduction of income tax revenues for municipalities in the coastal and central regions - these local governments, especially underdeveloped ones, whose budgets are already planned according to the current law - are being placed in an unequal position.
"He also pointed out that the new institute of financial equalization, with broad discretion of the Ministry of Finance and without clear criteria, could slow down the development of these municipalities and open up space for non-transparent distribution of funds," they stated.
Speaking about the regulation on business companies, they noted that Milatović pointed out that this act provides for the retroactive application of certain provisions on convening and holding shareholders' meetings, which, they claim, is contrary to the constitutional prohibition of retroactive effect of regulations under Article 147 of the Constitution.
"Since no public interest was established in the process of enacting the law that would justify such a deviation, he believed that the Parliament should reconsider this solution," it added.
Regarding the law that he only "successfully" returned (on electronic communications), the head of state assessed at the time that the amendments would change the supervision regime over the Agency for Electronic Communications and Postal Services, because the key control role would be taken over by the Government from the Parliament, "which would call into question the independence of the regulator."
"He also pointed out that the law was not previously agreed with the European Commission (EC), nor followed by a public debate, so the question of its compliance with the EU acquis and the criteria for closing negotiation chapter 10 (Information Society and Media) remains open," the president's office said.
Milatović then, on June 9, returned for decision the acts on the Judicial Council and judges and the national public broadcaster - Radio Television of Montenegro.
These regulations were part of the so-called IBAR (Interim Benchmark Assessment Report for Chapters 23 and 24) of the law.
The Office of the Head of State underlined that Milatović then pointed out that the provision whereby the President and members of the Judicial Council from among distinguished lawyers, after the expiration of their mandate, continue to perform their duties until the election of new members, for a maximum of two years, practically enables the extension of their mandate from four to potentially six years, contrary to the Constitution.
"This places them in a different position compared to other members of the Council and relativizes the obligation of the competent institutions to fill vacant positions in a timely manner," it explains.
They also point out that the head of state has returned the law that reduces the criteria for selecting the director of RTCG from ten to five years of work experience, with the assessment that this ignores the importance of the public service and weakens its editorial independence.
"In his opinion, this is a step backwards compared to the previous solution and comparative practice, which is contrary to the goal of strengthening professionalism and management responsibility in the public service," they noted.
Amendments to the Public Service Broadcasting regulations have provoked harsh criticism from the professional community and the non-governmental sector. The regulation, proposed by the Ministry of Culture and Media, was amended "behind the scenes" of that ministry, and the number of years of work experience required for the position of director was reduced from 10 to 5.
Some critics claimed that the act was deliberately changed so that the general director of RTCG Boris Raonic could remain in that position, given that he did not have the required 10 years of work experience with a seventh-level education.
UIP, energy and Development Bank
In early August 2024, Milatović returned to parliament the laws on inspection supervision and the prescribed provisions on inspection supervision, which aimed to close down the former Directorate for Inspection Affairs (DIA), i.e. return inspections to the line ministries.
Milatović's office explained that Milatović believed that solutions that abolish the UIP and return inspections to ministries carry a high risk of additional politicization of inspection oversight, since ministers are politically elected.
"The objection also relates to the fact that appeals against inspectors' decisions would be decided by the same body, which calls into question the two-tier procedure and the independence of control. The President also assessed the same concept as questionable in the accompanying law, because inspectors are organizationally subordinated to the ministries in which they simultaneously carry out supervision. Such a solution, in his opinion, weakens the professional and institutional independence of inspections and increases the scope for political influence," they emphasized.
In the middle of that month, he returned regulations on education, energy, internal affairs, and a few days later on the Development Bank.
"The President believes that the changes that transfer the election and dismissal of directors of educational institutions from school boards to the minister further centralize the process, reduce its transparency, and increase the risk of politicization. As the education system is one of the key pillars of social development, he assessed that such a solution represents a step backwards compared to the existing model that should have been further improved," the office of the head of state said.
Regarding the Energy Law, they said that Milatović then pointed out that by amending the act, the Parliament would take on a direct role in appointing members of the Energy Regulatory Agency's board, abolishing the previous commission composed of representatives of several institutions. They noted that such a solution increases the risk of political influence on the regulator, reduces objectivity and expertise in the selection of board members, and may jeopardize the long-term stability and depoliticization of the energy sector.
They explained that Milatović returned the Internal Affairs Law because the regulation introduces a special procedure for hiring police officers without public advertising and a personnel plan, with the entire procedure being led by a commission formed by the Minister of Internal Affairs.
"He assessed that the minister is being given broad discretionary authority to hire a large number of police officers, which carries a high risk of additional politicization of the Ministry and the police themselves," they pointed out.
Regarding the Law on the Development Bank, Milatović's cabinet emphasized that the head of state then assessed that the act was prepared without public debate and consultations with key stakeholders in the financial system and the EC, and that it was unacceptable for such an important regulation to be adopted without broader expert review.
"He further pointed out that the law practically equates the Development Bank with commercial banks, giving it the ability to accept deposits and carry out payment transactions, although it simultaneously exempts it from the credit institution control regime, which may conflict with European standards," they noted.
"Europe Now 2", oil, ECHR...
In early September 2024, Milatović returned to the Parliament the laws on value added tax, mandatory social security contributions, and excise duties. These regulations enabled the implementation of the “Europe Now 2” program.
Milatović's office stated that the head of state then assessed that increasing the reduced VAT rate to 15 percent for some products and services in tourism, culture and art, as well as introducing VAT on low-value shipments, could further stimulate price increases and inflationary pressures, undermining citizens' living standards. They added that Milatović also pointed out that such a measure weakens the competitiveness of the key tourism sector and makes access to services in education and culture more difficult, which could deepen social inequalities.
"The President warned that reducing pension insurance contributions, although aimed at increasing net earnings, could seriously jeopardize the long-term sustainability of the pension system based on intergenerational solidarity and turn the basic pension from an economic to a social category," they told "Vijesti".
They reported that Milatović cited as particularly problematic the fact that 5,5 percent of gross earnings are being redirected from the Pension and Disability Insurance Fund (PIO) to employers, who are already making record profits, without a prior comprehensive analysis of the effects and clear projections of future pensions.
Speaking about the excise tax regulation, they also said that Milatović was of the opinion that the introduction of an excise tax on still wines of 25 euros per hectoliter, even with exemptions for small producers, directly threatens the competitiveness of domestic winemakers, including the nationally important company "Plantaže".
"Such measures, as he pointed out, favor imports to the detriment of domestic production, jobs and exports, instead of the state protecting and strengthening its own production base," it said.
At the end of November last year, Milatović returned the law on security of supply of petroleum products. At the time, he stated that he supported the goal of creating state reserves of petroleum products in accordance with European integration obligations, but also assessed that the proposed model places an additional financial burden on citizens and the economy.
"He warned that such levies could increase inflationary pressures and further lower living standards, given that citizens already pay taxes that should cover these needs," they said.
A month later, he sent the regulation on the representative of Montenegro to the European Court of Human Rights (ECHR) for reconsideration.
"The President found the transitional provisions that stipulate that the currently appointed representative of Montenegro before the ECHR remain in office for another six months to be questionable, even though the Administrative and Constitutional Courts had previously challenged the manner in which her predecessor's mandate was terminated and abolished the basis on which she was elected," it states.
The head of state's office said that, in Milatović's opinion, the law is thus attempting to "legalize" a mandate that has already been called into question by two court decisions, instead of eliminating previously established illegalities.
UAE and the conflict with Đeljošaj
Milatović returned only two laws this year - a regulation on the ratification 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) in late April and an act on real estate tax in early August.
The agreement with the UAE stipulates that the government of that Middle Eastern country proposes and guarantees for private investors to cooperate with the Montenegrin government on the implementation of two tourism projects in the north and south of the country, with the written consent of the executive authorities in Podgorica.
The head of state then assessed that the agreement derogates from a number of domestic regulations - from public procurement, public tenders and the disposal of state property to competition protection rules - because the agreement stipulates that investors are selected by another state without a competitive procedure, that public interest is declared for projects in advance, and that the Government is obligated to amend laws and planning documents for their implementation.
"This, in his opinion, threatens the constitutional principle of the separation of powers and the legal security of citizens, opens up space for restricting free competition and expropriation based on pre-given, insufficiently defined obligations," it added.
Milatović's office noted that the president additionally warned that the agreement obliges Montenegro to unknown and potentially very high costs of securing land and infrastructure, while the other contracting party does not have clearly defined obligations, "which puts the state in an unequal position and may threaten fiscal sustainability."
Regarding the Law on Real Estate Tax, Milatović then pointed out that the provision that leaves it to municipalities to independently determine the amount of tax relief on real estate for agricultural producers leads to a violation of the constitutional principle of equality and the creation of an unequal position for citizens depending on their place of residence.
"Such a transfer of tax issues and tax breaks to the exclusive jurisdiction of local governments, contrary to the Constitution and the principle of a single economic space, may directly undermine the free market and competition, while the current law already provides for a single 70 percent reduction for all registered farmers," the head of state's office said.
Deputy Prime Minister Nick Djelosaj (Albanian Alternative) then accused Milatović of refusing to promulgate the law due to nepotism, while the head of state stated that the leader of the Albanian Alternative threatened him, summoning the Prime Minister. Spajić to replace him.
Đeljošaj then wrote to Milatović that he should not have returned the law and that he should expect a reaction from Albanians at all levels and wherever they have influence, and told him that he would get the response he deserved.
Following Milatović's report, the Podgorica Prosecutor's Office opened a case against Đeljošaj, but announced at the end of September that there was no reasonable suspicion that Đeljošaj had endangered the security of the head of state.
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