The Government of Montenegro, at its recent session, approved the Draft Law amending the 2025 Budget Law to ensure technical alignment following changes in the organization and functioning of state administration. This adjustment allows the transfer of funds corresponding to newly established ministries that absorbed responsibilities from existing ones, ensuring uninterrupted financing of all budgetary units. The overall budget increased by just seven euros due to technical corrections related to budget classification.
Additionally, the government adopted the Draft Law on Covered Bonds, enhancing the regulatory framework and introducing dual supervision by the Capital Market Commission and the Central Bank. This aims to improve investor confidence and market stability, aligning national legislation with EU Directive (EU) 2019/2147 and supporting real estate financing.
The Draft Law on Accounting was also approved, aimed at improving legal clarity and harmonizing with EU accounting and financial reporting directives, except for sustainability reporting, which will be aligned after EU updates are finalized. This law is crucial for closing benchmark 4 under the EU accession Chapter 6 – Company Law.
Similarly, the Draft Law on Audit introduces reforms to comply further with EU regulations (Directive 2014/56/EU and Regulation 537/2014), strengthening auditor independence, improving licensing, oversight, and sanctioning mechanisms. This law also supports closing benchmark 4 under Chapter 6.
Furthermore, amendments to the Craftsmanship Law were approved to modernize the legal framework in line with EU service market directives, removing barriers to cross-border services and promoting competition. Key provisions include the digital registration of craftsmen and mandatory membership in the Craft Chamber of Montenegro with a membership fee.
The government also reviewed the report from the Commission monitoring fixed-term service contracts financed from the state budget. Between February and May 2025, the number of such contracts decreased by 11.5%, while temporary and occasional service contracts declined by 55.56%. The government expressed commitment to further reduce these contracts by 20% by the end of the year, aiming to improve budget efficiency and transparency.
