President of Montenegro Jakov Milatović has signed the Law on the Ratification of the Agreement on Economic Cooperation between the Government of Montenegro and the Government of the United Arab Emirates.
However, when it comes to the Law on the Ratification of the Agreement on Cooperation in the Field of Tourism and Real Estate Development between the two governments, President Milatović has returned it to the Parliament of Montenegro for reconsideration. His decision is based on numerous unresolved issues related to the Agreement, for which the public has not received adequate answers from the Government of Montenegro.
The main objections are as follows:
– Deviations from constitutional provisions related to ensuring free market competition and equal treatment;
– Suspension of Montenegrin laws concerning public procurement, tenders, and state property, with further provisions anticipating future amendments to Montenegrin legislation to facilitate implementation of the Agreement;
– Lack of legal and financial analyses regarding the numerous obligations undertaken by the Government on behalf of Montenegro, which could potentially jeopardize the sustainability of public finances;
– Pre-determination of public interest through the Agreement without specifying locations or project details, creating legal uncertainty for citizens whose property might be targeted by investors;
– Undefined structure of future projects, particularly in terms of the balance between tourism development and real estate development, with the latter not falling under the legal definition of public interest.
The Agreement essentially constitutes a unilaterally binding act that imposes multiple obligations on the State of Montenegro without specifying any concrete reciprocal obligations from the UAE that would safeguard Montenegrin interests.
According to the explanation sent to Parliament, this approach places Montenegro at a disadvantage in relation to the other contractual party.
President Milatović also emphasized the high level of non-transparency during the drafting and signing of the Agreement, warning that deviations from accepted rules of market economy and state aid could jeopardize Montenegro’s EU accession process. He also questioned the Agreement’s compatibility with systemic laws related to competition protection and state aid control, which has also been flagged by the Agency for the Protection of Competition.
He specifically referenced the opinion of the Agency for the Prevention of Corruption dated April 15, 2025, which raises several objections to the Agreement’s content, as well as the concerns expressed by EU officials over possible violations of EU rules in certain provisions.
Finally, the President called on MPs to take into account all the objections raised by state institutions, local communities, civil society, and EU representatives during the upcoming debate, in order to prevent potential harm to national interests.
The full text of President Milatović’s explanation submitted to the Parliament of Montenegro is available at the following link: https://predsjednik.me/press/clanak/article-16
