Montenegro is nearing a critical juncture in its European Union accession efforts, making significant strides toward the closure of Negotiating Chapter 9, which pertains to financial services and capital markets. The President of the Commission for Capital Markets has indicated that recent legislative and institutional reforms are paving the way for the provisional closure of this technically complex chapter.
This chapter is essential for aligning Montenegro’s financial system with EU regulations, covering areas such as capital markets oversight, investor protection, market transparency, financial infrastructure, and supervisory frameworks. Progress in this domain not only indicates regulatory alignment with the European acquis but also signifies a structural enhancement of Montenegro’s domestic financial landscape.
A new Capital Markets Act is set to be presented to Parliament, representing one of the most comprehensive revisions of Montenegro’s financial legislation to date. While certain provisions will be fully implemented only upon EU membership, early adoption aims to ensure legal clarity, institutional readiness, and immediate compatibility with EU standards upon accession. The goal is to eliminate regulatory gaps and establish a foundation that aligns completely with EU rules from the beginning.
The reform initiative seeks to synchronize national laws with EU directives regarding market supervision, trading infrastructure, clearing and settlement systems, and the oversight of market participants. A robust regulatory framework is anticipated to bolster investor confidence, enhance market transparency, and foster safer conditions for capital allocation. Special attention is directed toward improving financing access for small and medium-sized enterprises (SMEs), which continue to rely heavily on bank loans.
Drinčić noted that Montenegro’s capital market has historically encountered structural issues such as low liquidity, a narrow range of financial instruments, and cautious investor engagement. He emphasized that consistent and well-enforced regulations are essential for reversing these trends and gradually fostering a more vibrant and diversified market environment.
In addition to legislative efforts, he highlighted that sustainable market growth necessitates advancements in corporate governance, enhanced quality of financial reporting, increased participation from institutional investors, and improved financial literacy among the populace. Initiatives aimed at raising public awareness of capital markets are already in progress, including collaborations with educational institutions and outreach programs targeting youth.
Progress within Chapter 9 is part of Montenegro’s wider EU accession journey, during which the country has already provisionally closed numerous negotiating chapters. Advancing toward closure in the financial services chapter is particularly crucial as it directly impacts financial stability, investor protection, and Montenegro’s integration into the European financial system.
Drinčić asserted that aligning with EU financial standards serves not only as a formal requirement for accession but also as a strategic objective for development. A well-regulated and trustworthy capital market is considered vital for fostering long-term economic growth, enhancing access to investment capital, and facilitating deeper integration with European markets as Montenegro approaches EU membership.
