Press release from the 89th Cabinet session

The Montenegrin Cabinet held its 89th session today, chaired by Deputy Prime Minister for International Relations Ervin Ibrahimović. The Cabinet adopted the Draft Law on the Legalization of Informal Structures, accompanied by the Report from the Public Consultation. The primary objective of this law is to ensure an efficient legalization process and to prevent further illegal construction, particularly in light of Montenegro’s limited spatial resources. As emphasized during the session, the implementation of this law will contribute to preserving Montenegro’s land—a nation’s most valuable asset—which has been severely compromised by unauthorized construction. It was further noted that the legalization process will undoubtedly increase municipal revenue through the collection of urban rehabilitation fees and property taxes, as well as compensation for land use—revenues that fall under the jurisdiction of local governments. These funds will be used to develop the necessary infrastructure in affected areas, ultimately improving quality of life. Key novelties compared to the current Law on Spatial Planning and Construction of Structures include:

• A mandatory registration of legalized structures in the Real Estate Cadastre within a six-month deadline, which is preclusive—meaning that once the deadline expires, owners will no longer have the right to register their properties. The law also defines structures that cannot be legalized and introduces specific conditions for legalization.
• Defined procedures for legalizing structures located within protected zones.
• Clear division of responsibilities: Local governments are authorized to process legalization for structures with a net area up to 500 m², while a newly established national body, the Legalization Authority, will oversee legalization of structures exceeding 500 m² and those located in protected zones.
• Structural and seismic stability assessments are maintained as in the current legal framework, with additional procedures in cases where assessments conclude that structures are unstable.
• Legalization procedures for collective residential buildings are clarified, including provisions on land purchase and installment payments for structures built on state-owned land, as well as the Cadastre’s obligations regarding entry of legalization data.
• The authority to issue conformity certificates has been removed from independent reviewers.
• Once the legalization decision is issued, alignment with the external appearance of the structure is not required.
• State property management bodies are mandated to publish a public call, giving owners of informal structures built on state land six months from the publication date to register their properties. After this period, ownership will revert to the state and will be registered accordingly by the competent authority.

Additionally, the Cadastre is obligated to register annotations prohibiting the sale and commercial or other use of structures that have not entered the legalization process within the timeframe specified in Article 48, paragraph 1 of the law, as well as structures not legalized within 24 months of the law’s entry into force.

The Cabinet adopted the Draft Strategy for Combating Fraud and Managing Irregularities to Protect the Financial Interests of the EU for 2025–2028, along with the accompanying Action Plan for 2025–2026. This four-year strategic document aims to enhance policies related to managing irregularities arising from the use of EU funds. Protecting the EU budget also means protecting the national budget, as any misused funds must be reimbursed by Montenegro. The Strategy builds on the 2019–2022 framework and ensures continuity in the development and strengthening of the national system for protecting EU financial interests. It outlines the strategic goal, vision, mission, and long-term operational objectives and reflects Montenegro’s ongoing commitment to reform and EU accession. Its implementation continues the efforts under Chapter 32 of the EU negotiation process—Financial Control—which encompasses four critical areas: internal financial control in the public sector, external audit, protection of the EU's financial interests, and protection of the euro from counterfeiting. The aim is to enhance fiscal discipline and transparency in the use of both national and EU funds.

The Cabinet adopted the Information on the Use of Funds from the Special Investment Programme for Economic and Business Interests of Montenegro, along with the Proposal for the Support Programme to Strengthen Skills in the Information and Communication Technology (ICT) Sector for 2026, granting approval for the Programme. The Innovation Fund of Montenegro has been tasked with defining the general rules of the support programme, preparing, and implementing the public call. Funds from this Programme are vital for financing the development of Montenegro’s innovation ecosystem and addressing skill gaps in priority sectors with high innovation potential. The ICT Skills Enhancement Programme—titled “Iskra”—is a strategic government initiative. Its focus is on acquiring digital skills, enhancing soft skills, promoting problem-solving and lifelong learning—pillars identified for human capital development and job creation in Montenegro. As part of these efforts, the Ministry of Labour and Social Dialogue, through the Employment Agency of Montenegro, will implement the regular "Education and Training" Programme in 2025, allocating €516,870 to support digital skills development. This funding will enable 429 unemployed individuals, including 29 NEET (Not in Employment, Education or Training) youth, to participate in various digital competence training programmes. These activities represent a crucial first step in preparing the unemployed for careers in the ICT sector, aligning with European priorities and Montenegro’s national development objectives.

The Cabinet adopted the Information on the Signing of a Memorandum of Understanding between the Ministry of European Affairs of Montenegro and the Ministry of Foreign Affairs, European Union and Cooperation of the Kingdom of Spain For the Development of the Greater Collaboration in the Area of European Integration, and approved the Memorandum text. The signing of this Memorandum sends a strong signal of Spain’s firm commitment to supporting Montenegro’s EU accession path. It also demonstrates Montenegro’s readiness to strengthen its institutions and administrative capacities through partnerships with EU member states. The Memorandum comes at a time when Montenegro is making tangible progress in its EU negotiations, as evidenced by the temporary closure of Chapter 5 – Public Procurement at the 23rd Intergovernmental Conference held on 27 June 2025 in Brussels. This marks a milestone in Montenegro’s reform efforts and underscores its aim to join the EU by 2028. The Memorandum will foster intensified political dialogue, stronger coordination of bilateral and multilateral activities, and direct exchange of information and expert support through regular consultations and joint initiatives. Both countries reaffirm their commitment to strengthening mutual relations and supporting Montenegro’s advancement in line with European values.

The Cabinet adopted the Information on Initiating the Auction Process for the Allocation of Market Premium Rights for Undesignated Solar Power Plant Locations. The key objective of the Law on the Use of Renewable Energy Sources is to create more favorable investment conditions for building facilities that produce electricity from renewable sources. This legal framework also strengthens the regulation of electricity, heating, cooling, and transportation sectors. To promote increased use of renewable electricity, the law envisages a system of incentives. These are designed to integrate renewable energy into the electricity market on commercial principles, minimizing disruptions and ensuring system stability and cost-effectiveness. One of the main instruments introduced is the market premium system, a transitional mechanism between traditional “feed-in tariffs” and market-oriented models. Under this system, producers sell electricity on the market and are entitled to a premium if the market price falls below the guaranteed price. If the market price exceeds the guaranteed price, producers must cover the difference (known as the "negative market premium"). The right to a guaranteed price is granted through a competitive tendering process. Pursuant to Article 31 of the Law, auctions for awarding market premium rights for undesignated locations are conducted through a public call, which forms part of the tender documentation. In accordance with Article 15 of the Law, the Cabinet adopted a Decision setting a quota of 250 MW for the first auction, applicable to solar power plants of 400 kW and above. Furthermore, the Government set the maximum price that bidders may offer in the auction process at €65/MWh. The Cabinet also adopted the full tender documentation, approved the Market Premium Contract and the Balancing Responsibility Agreement, and tasked the Ministry of Energy and Mining with launching the public call.