Enlargement Strategy and Main Challenges 2006 - 2007

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Montenegro has made some progress in approximating its legislation and policies with European standards in most areas and has advanced in strengthening its administrative capacity in particular in coordination of European integration matters including on the negotiation of an SAA. However, it is still at an early stage of preparations and considerable resources need to be allocated for finalisation of the legislative process and implementation. Concerning internal market, Montenegro has started legislative and administrative preparations to fully assume the new competences in the fields of standardisation, certification, metrology, market surveillance and intellectual property rights. Consumer and health protection including veterinary, fisheries and phyto-sanitary controls remain also at an early stage of preparation. Improvement is needed in reinforcing implementation of intellectual property rights legislation. Montenegro will also have to accede to all international agreements in this area the State Union was a party to. . Progress has been made in the area of services and the right of establishment and free movement of capital. Customs reform has advanced but significant problems remain regarding the legal framework and the implementation of rules of origin. An adaptation to the EU standards in this area is essential for the conclusion and subsequent implementation of the Stabilisation and Association Agreement. Duty free shops have recently been established at land borders, which is a matter of concern, as it increases the risk of smuggling. Reforms in the area of taxation should be pursued. Some progress has been achieved in the area of competition. However, further progress is needed in establishing the operational independence and providing resources for the competition authority and in advancing preparations to introduce and implement the legal framework for state aids. Some progress has been made in the field of public procurement and currently prepared amended legislation and secondary legislation is expected to strengthen the performance of the relevant bodies. However, the overall implementation of public procurement legislation has not been satisfactory and needs to be upgraded. Progress in all these fields is essential for the implementation of the SAA. Limited progress has been registered in relation to employment policies. Unemployment is still a significant problem in Montenegro, with inadequate actions to match needs and skills. Much of the acquis remains to be transposed, notably in the area of health and safety at work and gender equality. In the field of education, ongoing reforms mean that integration into the European area of Higher Education in the context of the Bologna process is on track. However, significant efforts are still needed to develop skills in line with the requirements of the economy. As far as sectoral policies are concerned, Montenegro has moderately advanced in implementing the European Partnership priorities in the area of industry and SMEs. However, Montenegro has made little progress in streamlining licensing systems. The business environment needs to be improved by simplifying administrative procedures. The steel sector requires restructuring to achieve viability and competitiveness. Some progress has been made in the field of agriculture. Strategies for agricultural development and fisheries have been adopted by the Government and put up for public discussion. Montenegro has designed plans for the development of the veterinary sector. Overall it has moderately advanced on reforms with EU support and allocation of budget resources. However, implementation is still below European standards and needs to be upgraded. EN 41 EN
Preparations in the field of environment remain at an early stage. Strategic and legislative documents have been adopted but the environment-related administrative capacity in management and control bodies should be substantially strengthened. As for transport and energy, some progress can be reported. Montenegro is participating actively in regional transport networks and deciding its priorities accordingly. Progress has been registered in the adoption of the law on road transport. In energy progress has been registered in particular in the area of restructuring of the electricity and gas sectors and in promoting energy efficiency. Montenegro has ratified the Energy Community Treaty. Progress has been noticed in the areas of public internal financial control and external audit. The State Audit institution progressed in strengthening its capacity. However, Montenegro will have to substantially upgrade its system of internal and external control and the State Audit institution should be upgraded into a supreme audit institution with constitutional guarantees and in line with EU best practices. In statistics, some progress has been made regarding the establishment of a national statistical system in Montenegro. However, the overall quality of statistics remained low. The Statistical Office of Montenegro and the other parts of the national statistical system need substantial upgrading in order to implement commitments and to deliver timely, reliable and accurate statistics in accordance with EU standards. In the area of justice, freedom and security, some progress has been achieved concerning border management. Montenegro has assumed full responsibility in the area of visa policy, asylum and migration following independence. Preparations have started to put in place the legal and institutional framework required for implementation. Some progress has been registered in the area of anti-money laundering. The Directorate against Money Laundering, which operates as a Financial Intelligence Unit, upgraded its cooperation with law enforcement bodies and with neighbouring countries. However, coordination and exchange of information needs to be substantially enhanced. Some progress has been made in the fight against drugs. Montenegro is a transit country for drug trafficking, and drug use is increasing. Some progress has been made regarding overall police restructuring. However, the resources and means available for police, in particular in the area of the fight against organised crime, remain inadequate. Montenegro has achieved some progress as regards the fight against organised crime. An action plan to implement the strategy for the fight against corruption and organised crime was adopted in August 2006. It should be followed by an upgrading of the implementation capacity of law enforcement bodies. Some progress has been achieved in the fight against trafficking in human beings. A shelter for victims has been established with public funding. Preparations are advancing to prepare a law on the protection of personal data, a key requirement of the SAA. The situation as regards protection of personal data remains a matter of concern. Montenegro is in the process of upgrading its capacities in the area of the fight against terrorism. Serbia EN 42 EN
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Page 3 and 4: COMMUNICATION FROM THE COMMISSION T
Page 5 and 6: 2. THE FIFTH ENLARGEMENT Enlargemen
Page 7 and 8: The negotiations proceed in a struc
Page 9 and 10: process. The Commission also welcom
Page 11 and 12: Good neighbourly relations and regi
Page 13 and 14: Serbia is to be commended for its r
Page 15 and 16: 10. Croatia has made a good start i
Page 17 and 18: The present enlargement agenda is b
Page 19 and 20: The Commission conducted a study on
Page 21 and 22: The Union needs to be in a position
Page 23 and 24: The Union, its Member States and ca
Page 25 and 26: Limited progress has been achieved
Page 27 and 28: to adopt the relevant laws, but ele
Page 29 and 30: The Refugee Return Fund is operatio
Page 31 and 32: emains to be completed. This is pre
Page 33 and 34: As regards regional issues and inte
Page 35 and 36: and gas market. Croatia ratified th
Page 37 and 38: absence of a proper legal framework
Page 39 and 40: Community Treaty which was ratified
Page 41: Willingness to advance in the area
Page 45 and 46: eplaced by an Office under the Prim
Page 47 and 48: The Law on Foreigners which is to d
Page 49 and 50: As regards economic criteria, Kosov
Page 51 and 52: As regards democracy and the rule o
Page 53 and 54: and supervision has been further st
Page 55 and 56: Turkey made good progress on enterp

Enlargement Strategy and Main Challenges 2006 - 2007

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