Montenegrin President Jakov Milatović has signed the Law on the Ratification of the Economic Cooperation Agreement between the governments of Montenegro and the United Arab Emirates (UAE). However, he has returned the Law on Cooperation in Tourism and Real Estate Development to the Parliament for reconsideration.
Milatović’s decision to return the tourism and real estate development agreement is based on several open issues that the public has not received adequate answers to from the government. Main concerns include deviations from constitutional provisions regarding free competition and equal market conditions, as well as the suspension of Montenegro’s laws on public procurement, public tenders, and state property. Additionally, future changes to Montenegrin legislation could be required to implement the agreement.
Other objections include the lack of legal and financial analyses regarding the obligations Montenegro has undertaken in the agreement, which could lead to fiscal instability. There are also concerns about the definition of public interest in the agreement, as it sets future projects without specifying their locations or characteristics, creating legal uncertainty for Montenegrin citizens whose property might be affected by investors.
Milatović also criticized the agreement for not defining the structure of future projects, particularly the relationship between tourism development and real estate development, which cannot be treated as part of public interest under current legal definitions. Furthermore, the agreement is seen as unilaterally binding, imposing obligations on Montenegro without any concrete obligations from the UAE to protect Montenegro’s interests.
The agreement has been criticized for its lack of transparency in preparation and signing, and concerns have been raised about deviations from market economy rules and potential EU rule violations, which could jeopardize Montenegro’s EU accession path.
Milatović also highlighted the concerns raised by the Anti-Corruption Agency and EU officials about possible EU rule violations in certain parts of the agreement. He urged the Parliament to consider these concerns during the re-vote to prevent harmful consequences for the state’s interests.
