Crypto-law and safe milk for a faster path to the EU: What obligations does the state need to fulfill in several demanding chapters?

The adoption of the law on crypto-assets, amendments to the regulations on competition protection and voluntary pension funds, and increased quality and safety controls of raw milk are, along with judicial reform and strengthening the rule of law, some of the key remaining obligations that Montenegro needs to fulfill in several demanding chapters in order to close all negotiations with the European Union (EU) by the end of the year.

According to unofficial information from "Vijesti", key obligations include the adoption of local waste management plans, amendments to the Law on Liability for Environmental Damage, and the adoption of a Marine Environment Protection Strategy...

As the Government and the European Commission have repeatedly pointed out, the most difficult chapters to close are Chapters 23 (judiciary and fundamental rights) and 24 (justice, freedom and security), which are being closed last, as well as Chapter 27 (environment and climate change).

In order for a country to close a negotiation chapter, it needs to meet the final benchmarks set by the EU for that chapter. The European Commission then monitors progress, but the chapter is not closed until each member state is satisfied with the progress. The decision to close is made by the Council of the EU, following a prior recommendation by its working bodies, and the decision is formalised at an intergovernmental conference.

Head of the EU Delegation in Podgorica Johan Sattler, said yesterday in an interview with "Pobjeda" that outside of the rule of law area (chapters 23 and 24), a number of other chapters require accelerated work to align Montenegrin legislation with EU standards.

"For example, in the areas of the internal market (Chapter 1 - free movement of goods), competition (Chapter 8), financial services (Chapter 9), food safety (Chapter 12), transport (Chapter 14) and customs (Chapter 29). These chapters require extensive legislative alignment, but also investments in administrative capacities, equipment and systems, such as border laboratories and modern IT systems," said Satler, adding that Chapter 27 is also particularly demanding and will require significant investments.

ENVIRONMENTAL PROTECTION LAWS

Under Chapter 27, Montenegro is obliged to meet eight final benchmarks, which relate to alignment with European directives on environmental protection, air quality, water... Specifically, Montenegro must adopt and amend a set of laws, including amendments to the Criminal Code, the Law on the Liability of Legal Persons for Criminal Offences and the Law on Liability for Environmental Damage.

Within Chapter 1 (free movement of goods), the state is obliged to meet four final benchmarks, and specific steps include, among others, amendments to the Law on Technical Requirements for Products and Conformity Assessment, and the Rulebook on the Method of Recognition of Certificates and Marks of Conformity and Mutual Recognition of Products.

Key obligations under Chapter 8 (Competition) include, in addition to amendments to competition legislation, the adoption of the Law on Procedures for Compensation for Violations of Competition Rules in the Market, strengthening the administrative capacity of the Agency for the Protection of Competition (APC) and the competent courts, as well as improving the capacity of existing staff at the APC. Four final benchmarks have been defined for this chapter, relating to alignment with European legislation.

Five final benchmarks have been set for Chapter 9 (financial services), and a key obligation, in addition to the adoption of the law on crypto-assets, is to amend the Law on Voluntary Pension Funds and Insurance.

PRODUCT QUALITY AND SAFETY

Chapter 12 (food safety, veterinary and phytosanitary surveillance) has three final benchmarks, and among the key obligations are the preparation of a roadmap for strengthening the capacities of competent authorities and official controls related to the quality and safety of raw milk, i.e. - that Montenegro must provide assurances that raw milk and dairy products do not pose a risk to the health of consumers.

It is necessary to provide reliable data on animal by-products and develop a program that will ensure sufficient and permanent infrastructural capacity (for example, processing or incineration facilities) for their safe disposal.

Montenegro is also required to prepare a roadmap with clear steps to confirm the adequacy of resources (human and technical equipment) for effective surveillance, investigations and implementation of an EU-compliant system of official controls for live animals and products of animal origin, as well as to provide guarantees for the employment of qualified staff (e.g. official veterinarians and support staff) for transparent and impartial surveillance.

When it comes to Chapter 14 (transport policy), which has four final benchmarks, Montenegro's obligations are, among other things, to amend the Law on Roads, on Road Transport, to adopt regulations on the detailed manner, technical requirements, special conditions and elements of interoperability of electronic toll collection and on more detailed criteria for calculating tolls...

Chapter 29 (Customs Union) has three final benchmarks, and the remaining obligations include the adoption of the customs law, the accession to common transit, and for the Customs Administration, among others, to continue approving simplified import and export customs procedures, to protect intellectual property rights, ex officio and at the request of the party, as well as to continue approving simplified import and export customs procedures, issuing binding information on origin and tariff classification of goods, and approving the status of authorized exporter, in accordance with the new customs legislation.

JUSTICE, WAR CRIMES, CORRUPTION

In June 2024, Montenegro received a positive Interim Benchmark Assessment Report for Chapters 23 and 24 (IBAR), and a total of six final benchmarks were set, relating to judicial reform, the fight against corruption, respect for human rights, migration, asylum and visas, and organized crime.

Three final benchmarks with 17 sub-benchmarks were given for Chapter 23 - five for judicial reform and war crimes prosecution, six for prevention and repression of corruption, financing of political parties, and six for human rights.

Three final benchmarks are foreseen for Chapter 24, with seven sub-benchmarks - migration, asylum and visas three, and organized crime four.

The final benchmarks for these chapters are intended to ensure, in law and practice, the continued independence, accountability, professionalism, access to justice and integrity of the judicial system at all levels, including the freedom of the judiciary from attempts at improper internal and external influence and the resilience of the system to such attempts...

It is also necessary, as stated, to ensure that the capacity, independence, accountability and efficiency of the self-governing bodies of the judiciary - including issues of the composition and decision-making process of the Judicial Council - are in line with European standards and that the system, including courts and state prosecutors' offices, is efficient as a whole, that judges and prosecutors issue quality decisions and indictments within a reasonable time, that there is a well-functioning integrated case management system, including reducing the number of backlogs of cases...

In order for a country to close a chapter, it needs to meet the closing benchmarks. The EC then monitors progress, but the chapter is not closed until every member state is satisfied. The decision to close it is made by the EU Council, and it is formalised at an intergovernmental conference.

Key obligations include the establishment of adequate operational capacities of specialised anti-corruption bodies and regular judicial institutions to fight corruption, including high-level corruption, through cooperation with relevant EU bodies. A solid and sustainable track record of investigations, prosecutions and final convictions in corruption cases, in particular high-level corruption cases, is also required.

The state should ensure the effective application and enforcement of the rights and freedoms established by the European Convention on Human Rights, its protocols and the case law of the European Court of Human Rights, and establish a credible record of results in the implementation of provisions on the prohibition of discrimination, gender equality and combating gender-based violence, the protection of persons belonging to minorities...

It also calls for full harmonisation of visa policy with the EU visa policy, particularly by ending the practice of issuing seasonal visas and amending the list of countries whose citizens are subject to the EU visa regime and those whose citizens are exempt from that obligation upon entry.

Montenegro has opened all negotiation chapters in its negotiations with the EU, 33, and temporarily closed 13.