What is being negotiated?

The goal of industrial policy in the EU is to promote industrial strategies that aim to increase competitiveness, accelerate the adaptation to structural changes, and foster the creation of a favorable business environment. It focuses on creating a framework to increase gross added value, employment, exports, addressing regional development issues, and structural alignment of the economy, as well as increasing both domestic and foreign investments. This chapter also covers various areas of principles and instruments of entrepreneurship and sectoral competitiveness policies, encouraging entrepreneurship and innovation.

Chapter 20 also includes political instruments, such as financial support and regulatory measures, as well as sectoral policies. In this context, the EU highlights entrepreneurship and industry as one of the priorities for the future European economy and defines three key pillars for this chapter: entrepreneurship policy, industrial policy, and sectoral policies aimed at raising competitiveness in the market.

Subareas?

Montenegro will negotiate the following areas within this chapter: industrial policy, small and medium-sized enterprises (SMEs) and entrepreneurship policy, innovation policy, Community programs, banking and finance, tourism, air and maritime industries, construction, wood industry, steel, metals, and other raw materials.

When was the chapter opened?

Montenegro opened Chapter 20 – Entrepreneurship and Industrial Policy on December 18, 2013, and temporarily closed it at the Intergovernmental Conference on December 16, 2024, in Brussels.

Closing benchmark?

Montenegro has one closing benchmark in this chapter, which is:

The development and implementation of a comprehensive industrial strategy, supported by an evaluation system of indicators and benchmarks, as proposed in the EU industrial policy.

To meet the closing benchmark, the Government of Montenegro adopted the Montenegro Industrial Policy until 2020 on June 30, 2016, along with a multi-year action plan for its implementation. The goal of this strategy is to enhance the competitiveness of industry, create an investment framework for industry modernization, promote innovation and entrepreneurship by increasing productivity and employment, and improve access to domestic and international markets by simplifying trade procedures. The continuous monitoring of the implementation of the Montenegro Industrial Policy 2020 and its multi-year action plan is carried out through the adoption of annual action plans and reports on the implementation of the action plan by the Government of Montenegro.

Institutions/organizations involved in the negotiation group?

The head of the Negotiating Working Group is from the Ministry of Economic Development, as the leading institution in this chapter.

In addition to the Ministry of Economic Development, the following institutions/organizations are involved in this chapter: Ministry of Education, Science and Innovation, Ministry of Tourism, Ministry of Finance, Ministry of Ecology, Spatial Planning and Northern Development, Ministry of Public Administration, Ministry of Defense, Ministry of Agriculture, Forestry, and Water Management, as well as the Statistical Office (MONSTAT), the Chamber of Commerce of Montenegro, the Investment and Development Fund, the Employers’ Union of Montenegro, and others.

What is the benefit for Montenegro from this chapter?

A better business environment for businesses will mean fewer administrative barriers and changes in legal regulations, thus facilitating business operations. On the other hand, the availability and diversification of financing sources will increase, i.e., access to various EU funds and programs. Additionally, small and medium-sized enterprises, as the key drivers of industrial growth, economic progress, and new employment, will be supported with increased EU financial assistance, focusing on enhancing competitiveness, introducing innovations, and modern technologies. Special attention is given to promoting youth entrepreneurship, business startups, people with disabilities, and women, as well as investing in energy efficiency, environmental protection, and the introduction of quality management systems and international quality standards.

Through further progress in this area, which is more directly related to industrial development, clear industrial policy, the development of priority industrial sectors, and policies to support the growth of small and medium enterprises, conditions are created for the development of a modern society, strong market economy, and innovative economy.

Montenegro has implemented numerous activities within the framework of the negotiations with the EU in Chapter 20 and has followed the suggestions and guidelines of the European Commission to align with key documents in the field of entrepreneurship and industrial policy, ensuring the necessary alignment with the principles and instruments at the EU level. The Negotiating Working Group for Chapter 20 – Entrepreneurship and Industrial Policy estimates that Montenegro has fulfilled its obligation regarding the development of a comprehensive industrial strategy, and the implementation is ongoing. The Montenegro Industrial Policy 2024-2028 also identifies new initiatives at the EU industrial policy level and includes recommendations from the evaluation of the previous strategy, thus fully meeting the conditions for fulfilling the only closing benchmark in this chapter and temporarily closing Chapter 20.