BASIC INFORMATION

Full Country Name:Republic of Montenegro (formerly part of the State Union of Serbia and Montenegro)


Country Profile: Montenegro

Capital City: Podgorica (administrative centre) and Cetinje (historic/cultural capital)

Area: 13,812 sq km
Population: 650,575. Figures as published on Montenegro Government website.
Major Languages: Montenegrin, Serbian, , Albanian, Croatian.
Major Religions and Denominations: Christianity (Eastern Orthodoxy and Catholicism), Islam.
Currency: Euro
Major Political Parties: Democratic Party of Socialists (DPS), Social Democratic Party (SDP), Movement for Changes (PZP), Socialist People's Party (SNP), People's Socialist Party (NSS), People's Party (NS), Democratic Serbian Party (DSS), Serbian Radical Party (SRS), Serbian People's Party (SNS), Liberal Party (LP), Party of Democratic Prosperity (PDP), Croatian Civic Initiative (HGI), Bosniak Party (BS), Democratic Party of Unity (DSJ), Democratic Union of Albanians (DUA), Democratic Alliance of Albanians (DSA), Albanian Alternative (AA).
Montenegro Parliament: 81 seats (elected by direct vote every 4 years)
Head of State: President Filip Vujanovic (DPS)
Prime Minister: Zeljko Sturanovic (DPS)
Foreign Minister: Milan Rocen (DPS)
Membership of International Organisations: United Nations (UN), Organisation for Security and Co-operation in Europe (OSCE), International Monetary Fund (IMF), World Bank (WB), European Bank of Reconstruction and Development (EBRD), Central European Initiative (CEI), International Labour Organisation (ILO) and the Stability Pact.
Currently applying for membership of the following International Organisations: Council of Europe (CoE), World Trade Organisation (WTO), South-Eastern Co-operation Initiative (SECI) and the South Eastern Europe Co-operation Process (SEECP).


GEOGRAPHY

shares external borders with to the north-west, to the north-east and east, to the south, and has a 14km border with to the west. To the south west has 293.5 kilometres of coastline on the Adriatic Sea, including 52km of beaches.

's landscape is varied. The Adriatic coastline enjoys a Mediterranean climate and is made up of beaches, bays and coves. The impressive Bay of Kotor is Europe's southernmost fjord. The inland landscape ranges from fertile lowlands alongside lakes and river valleys to high mountains with dense forest and deep canyons. The name '' – meaning black mountain – probably came from the dense 'black' forests which covered the country's mountainous alpine regions.


HISTORY

Longer Historical Perspective

In 1858, as Ottoman influence in the Balkans declined, became an independent principality within the Austro-Hungarian Empire. In 1878 was recognised as an independent and sovereign principality by the Congress of Berlin.

The 1912-13 Balkan wars against , followed by the Treaty of London, brought more territorial gains on the Albanian and Kosovan borders. In the First World War, fought on the side of the Allies but was defeated and occupied by . King Nikola I and his government went into exile and, in 1918, an Assembly in Podgorica deposed Nikola I and declared Montenegro part of the new 'Kingdom of Serbs, Croats and Slovenes' under a Serbian King, a move that was resisted by some Montenegrins. The new state was renamed the 'Kingdom of Yugoslavia' in 1929.

During the Second World War, in April 1941, was invaded and partitioned by the Axis powers, with falling under the control of the Italians. However, 's mountainous interior and the strength of the local Communist Party made it an ideal operating base for the Partisans.

When emerged in 1945 as a socialist federation, under the communist partisan leader Josip Broz (Tito), was granted the status of a republic, along with , , , and . Tito ruled the Socialist Federal Republic of Yugoslavia (SFRY) for 35 years, sharing power amongst 's constituent nations.

Recent History

Tito's death in 1980 signalled the beginning of the end of the SFRY. The state's economic decline continued and, increasingly, the power sharing issue rose up the agenda. In 1989 Slobodan Milosevic, riding a wave of nationalist sentiment, came to power in , quickly installing his supporters in positions of power and severely restricting the autonomy of Kosovo and Vojvodina. In the wars of the early nineties, remained an ally of . Montenegrins fought in and ; and were involved in the siege and bombing of Dubrovnik. Following the secession of the other Yugoslav republics between 1991 and 1992, and adopted the Constitution of the Federal Republic of Yugoslavia (FRY) on 27 April 1992, and declared themselves a new state.

Prime Minister Milo Djukanovic remained loyal to Milosevic until the mid-nineties, when he began to advocate Montenegrin independence. In 1997, following bitterly contested elections in , Djukanovic became President (defeating the incumbent Milosevic candidate). The Montenegrin government distanced itself from Belgrade and criticised Milosevic's policies and the Serbian army's actions in Kosovo in 1998-1999. The ruling coalition boycotted the 2000 federal elections, which led to Milosevic's eventual removal from power. His regime came to an abrupt end on 5 October 2000, following the FRY Presidential elections and widespread street protests.

The State Union of and

On 14 March 2002, following months of negotiations between the two republics and mediation by EU High Representative Javier Solana, the federal and republic level governments signed the 'Belgrade Agreement' forming a looser union between Serbia and Montenegro. With the formal adoption of a new Constitutional Charter on 4 February 2003 the became the State Union of Serbia and . Foreign policy, defence policy, foreign economic relations and human/minority rights were dealt with at State Union level. Svetozar Marovic, a Montenegrin, was appointed President of Serbia and , and Vuk Draskovic was Foreign Minister.

The State Union was intended to promote stability within the region and to help both republics to make further progress towards European integration, but, since its birth, opinion about the future of the union was divided in both republics and it never functioned effectively. Under the terms of the Constitutional Charter either republic could hold a referendum on independence after three years. In 2006 decided to exercise this right and, under the close watch of the EU, held a referendum on its future status on 21 May. The result was 55.5% in favour of independence (For further details on the referendum see 'Recent Political Situation' section below.)

The Montenegro Assembly made a formal declaration of independence on 3 June 2006, thus bringing the union between and to an end. Since then the government has been transforming itself into an independent sovereign state, establishing diplomatic relations and applying for membership of international organisations that it was a member of as part of the Union.

On 5 June 2006 the Serbian National Assembly decreed to be the continuing international personality of the State Union of Serbia and , fully succeeding its legal status. Serbia therefore inherited membership of international organisations of which Serbia and Montenegro was a member and remains party to all international agreements, treaties and conventions to which Serbia and Montenegro was a party.


ECONOMY

Basic Economic Facts
(Source CIA World Factbook and Government of Montenegro)

GDP: € 1.644 billion (2005)
GDP real growth rate: 4.3% (2005)
GDP per capita: € 2600
Population below poverty line: 12.2% (2003)
Unemployment rate: 16.4% (2006)
Inflation: 3.4% (2005)
Official Currency: Euro
Major industries: Tourism, aluminium production, steel production, agricultural processing.
Major trading partners: , , , , , .

The Republic of Montenegro severed its economy from the former 's federal control and from during the Milosevic (pre-2000) era and maintained its own central bank, collected customs tariffs, and managed its own budget. On 1 January 2002, it ceased to use the Yugoslav Dinar and adopted the Euro as its official currency in response to rising inflation across and . Inflation has since reduced significantly.

Following the dissolution of the State Union with in May 2006, applied for membership of several international financial institutions, such as the IMF, World Bank, and the European Bank for Reconstruction and Development. is also pursuing its own membership to the World Trade Organisation.

Economic reform in recent years has led to economic recovery though the pace has been relatively slow. Reform of the financial sector in 2005 helped improve growth across all sectors of the economy. Tourism is becoming a major strength in the Montenegrin economy and continues to grow. Visitor numbers were up 35% in the first quarter of 2006 over the same period the previous year. Unemployment remains a key political and economic problem, though it has reduced significantly over recent years.

International Assistance

The EU, the largest donor, has since 1991 committed €2.9 billion to and and currently has in place a programme of aid for the region called the Community Assistance for Reconstruction, Development and Stabilisation (CARDS). Large amounts of aid have been spent, particularly in the reconstruction of 's physical infrastructure. Now the focus is on the institutional changes required for the continuation of the transition process and European integration. From 2007–2013, the EU's aid for the region will be delivered through the Instrument for Pre-Accession (IPA), which streamlines and simplifies all existing pre-accession assistance within a single framework covering both candidate and potential candidate countries.

The supports the Government of Montenegro through the CARDS programme and through our share of World Bank and EBRD lending to . For further information, please consult the following websites:

POLITICS

Recent Political Developments

Since the birth of the State Union in 2002, the 'independence' issue has dominated politics in . The 2003 Constitutional Charter provided for either republic to hold a referendum on independence after 3 years. The Montenegrin government and opposition decided to hold a referendum on 21 May 2006.

In December 2005, EU High Representative Javier Solana appointed Miroslav Lajcak, former Slovak Ambassador in Belgrade, as his personal envoy for the referendum. Lajcak's role was to facilitate dialogue between the pro-independence bloc (led by Prime Minister Milo Djukanovic and his government) and the pro-union bloc (led by opposition leader Predrag Bulatovic) and help them to agree terms for the referendum. Lajcak successfully brokered a deal with both sides, agreeing that for to become independent at least 50% of the electorate must take part, with 55% voting in favour of independence. This was then enshrined in a special referendum law adopted by the Montenegrin Parliament in March 2006.

For the outcome to be accepted both internationally and within Montenegro it was imperative that the referendum and the preceding campaign was constitutional, democratic, free, fair, peaceful and in line with international standards. The referendum was monitored by thousands of international and domestic election observers, made up of the OSCE's Office for Democratic Institutions and Human Rights (ODIHR), European Union Monitoring Mission, the Parliamentary Assembly of the Council of Europe, and Montenegrin NGOs including CEMI and CDT. Given the size of the electorate it was one of the most intensely scrutinised votes in European history.

Turnout on referendum day was 86.5% of registered voters and 55.5% voted for independence from the State Union, just above the 55% threshold. ODIHR assessed that the referendum was conducted according to OSCE and Council of Europe commitments and other international standards for democratic election processes and was marked by an active and generally peaceful campaign. On 3 June 2006 the Montenegro Assembly passed a declaration on independence. This was followed on 5 June by a Serbian National Assembly resolution declaring to be successor to the State Union.

The first Parliamentary Assembly elections in an independent were held on 10 September 2006. The DPS-SDP Coalition for a European Montenegro led by Prime Minister Djukanovic won, securing a majority of 41 of the 81 parliamentary seats – enough to form a government. The Serb List (a coalition of SNS, SRS, NSS and DSJ) led by Andrija Mandic made considerable gains, winning 12 seats to become the official opposition, while the former opposition SNP-NS-DSS coalition led by Predrag Bulatovic dropped to 11 seats, having formerly held 26. The new party (and former NGO) Movement for Changes, led by Nebojsa Medojevic, also won 11 seats. The remaining five seats are shared between the LP and minority parties.

The ODIHR's international observation mission assessed that the elections were conducted largely in line with international standards, but highlighted some remaining challenges which must be addressed to ensure a democratic and transparent election process.

On 3 October 2006 President Vujanovic announced the resignation of Prime Minister Djukanovic and nominated the Minister for Justice, Zeljko Sturanovic, as the next Prime Minister. On 10 November 2006 the Montenegrin Parliament ratified this decision and Prime Minister Sturanovic announced his new cabinet, in which Milan Rocen replaced Miodrag Vlahovic as Foreign Minister.

The current President of Montenegro Filip Vujanovic (DPS) was successfully elected on 11 May 2003, winning 64.25% of the valid votes cast. The next presidential elections will be in 2008.

Organised Crime

Like many countries in the Balkans region, faces problems with organised crime. The conflicts of the 1990s and the isolation caused by international sanctions created a vacuum, which criminals exploited in order to establish lucrative networks, which reached into government and retarded social and economic development. Organised crime and corruption are obstacles to the rule of law, democratic stability, and sound and accountable institutions.

The supports the countries of the region in the fight against organised crime and has funded various initiatives in and . These have included: a €944,780 Customs Enforcement Project, which, through the recruitment and training of specialist staff, helps reduce illegal immigration and trafficking; and a RTV B92 “Stop the Crime” programme, after the assassination of Prime Minister Djindjic, which produced 52 Truth and Reconciliation programmes, 24 Stop the Crime programmes and paid for airing the international version of the Fall of Milosevic series (this project was worth over �100,000). It will be important that the Montenegrin Authorities continue their efforts to tackle organised crime as they move towards the EU.

DEFENCE

Minister of Defence: MS Boro Vucinic
Chief of the General Staff: Colonel General Lakcevic
Head of the Navy: Rear Admiral Samardzic

Defence was formerly dealt with at State Union level, so the Montenegrin Government is now in the process of forming its own Ministry of Defence. A Defence Law is being drafted, which will provide a legal basis for the creation and authority of a Ministry of Defence. The Montenegrin Armed Forces will be army based but also include a Navy (with a primarily frigate and coastal protection maritime force) and an Air Force (with a rotary wing air capability).

The split of the Montenegrin Armed Forces from has been tackled maturely, with some personnel in choosing to serve the Serbian Armed Forces and some in choosing to serve as a Sovereign State. Initial reforms of the Armed Forces have already been delivered. These include reducing the number of personnel by half (from around 6000) and fully professionalising the Armed Forces by ending conscription and compulsory armed service. Such reforms are expected to continue.

INTERNATIONAL RELATIONS

Relations with International Community

After the removal of Milosevic in 2000, the FRY authorities made great efforts to rebuild bridges with the international community. FRY rejoined the United Nations, and joined various other international organisations, including the IMF, OSCE and the Council of Europe. In October 2005, and began negotiations with the EU for a Stabilisation and Association Agreement (SAA), the first step in the process of EU integration.(Please see “Relations with the EU” section below for more on the status of ’s SAA negotiations.)

The government believes that 's future lies in the EU and NATO, should the country wish. Close relations with her neighbours and the rest of the international community are also important. We look forward to 's membership in further European and international organisations, once the necessary requirements and conditions are met.

Relations with NATO

The UK government wants to maintain the same clear Euro-Atlantic perspective it had when part of the State Union, whilst remaining subject to the same conditions.

In the past the and NATO have shown commitment to working with and on defence reform. In May 2003 NATO Allies agreed a Tailored Co-operation Programme to help and prepare for PfP membership. and adopted a Defence Strategy in November 2004 and a White Paper in April 2005.

At the NATO Riga Summit on 29 November 2006, was invited to join PfP. The programme aims to promote regional stability by supporting defence reform and defence diplomacy activities between NATO Allies and PfP members. We hope PfP will encourage and facilitate continued progress on defence reform..

Relations with the European Union

The EU formally took the decision to open Stabilisation and Association Agreement (SAA) negotiations with and at the General Affairs and External Relations Council on 3 October 2005 and the ceremonial opening of negotiations took place on 10 October. Official and technical rounds of negotiations follow every couple of months. The decision followed a positive Feasibility Study in April 2005 – a Commission led evaluation report establishing whether a country is ready to negotiate a SAA with the EU. The EU made clear that the 'pace and conclusion' of SAA talks would depend on 'progress in developing legislative framework and administrative capacity, the effective implementation of the constitutional charter, and full co-operation with the ICTY'.

On 3 May 2006 EU Enlargement Commissioner Olli Rehn suspended SAA negotiation talks following an assessment by ICTY Chief Prosecutor Carla Del Ponte that Belgrade was not co-operating fully with the Tribunal, particularly in respect of the high profile fugitive indictee Ratko Mladic. The decision followed several warnings from the EU earlier in the year. However, following independence and a positive report from the ICTY on ’s co-operation, SAA talks were restarted on 26 September 2006. ’s SAA talks remain suspended

When negotiations are completed, the signed SAA creates a contractual relationship between a country of the region and the EU, after which formal accession negotiations may follow.

The Europa website has further information on EU relations with :

Council of Europe

The Council of Europe was set up in 1949 and works to promote democracy and human rights throughout its member states. and became the 45th member on 3 April 2003, having satisfied the membership condition of adopting the Constitutional Charter. Following the break-up of the State Union, Serbia inherited this membership of the Council of Europe, and applied for her own membership on 6 June 2006. The request has been passed to the Parliamentary Assembly of the CoE who will make a decision. In order to become a member will need to ratify the European Convention on Human Rights and work with the Council to promote and protect human rights and the rule of law.

HUMAN RIGHTS

The human rights situation in has greatly improved over the past five years. Typically for a country in political and economic transition, some problems still remain. The State Union of Serbia and adopted a Charter for Human and Minority Rights in 2003 and ratified the majority of human rights-related international conventions. Following independence we expect to remain faithful to human rights commitments it made while part of the State Union and to ratify relevant international conventions and ensure they are fully implemented. We expect the new constitution to affirm 's commitment to defend human rights and implement international human rights legislation.

Legislation on the protection of national minorities was adopted in May 2006, but further efforts from the authorities are needed to implement it. A draft law on asylum should be adopted before the end of 2006.

Establishing freedom of the media, an independent judiciary, police reform, better accountability mechanisms for treatment of detainees by prison and law enforcement agencies, and combating human trafficking are all areas to address. also has a role to play in bringing to justice those who perpetrated war crimes in the region in the 1990s, by continuing to co-operate with the ICTY.

ICTY

The International Criminal Tribunal for the former Yugoslavia (ICTY) was established in 1993 by the United Nations and is situated in The Hague in The Netherlands. It was set up through UN Security Council Resolution 827. The objectives of the Tribunal are: to bring to justice those allegedly responsible for violations of international humanitarian law; to render justice to the victims of these crimes; to deter further crimes; and to contribute to the restoration of peace by promoting reconciliation in the former Yugoslavia. All members of the United Nations are legally obliged to co-operate with the ICTY.

The Federal Republic of Yugoslavia (FRY) passed a Law on Co-operation with the ICTY in April 2002 which provided a framework for co-operation with ICTY. This included responsibility to transfer people indicted for war crimes by ICTY to The Hague, and granting ICTY full access to archives and witnesses in and . The Law was amended in April 2003 by the and Montenegro Government to state that all indictees, regardless of the their indictment date, should be extradited to The Hague. The law was also amended so that witnesses testifying in The Hague are no longer obliged to keep official state and military secrets.

On 7 June 2006 Chief Prosecutor Carla Del Ponte told the UN Security Council that “ICTY has maintained a positive relationship with for over a year”. Continued co-operation with the ICTY will remain a key international obligation as moves towards the EU and NATO.

The continues to press for the speedy arrest and transfer of all outstanding indictees, including Bosnian Serb leaders Ratko Mladic and Radovan Karadzic.