What is being negotiated?

The objective of industrial policy in the EU is to promote industrial strategies aimed at increasing competitiveness, accelerating adaptation to structural changes, and encouraging the creation of a favourable business environment, as well as establishing a framework for increasing gross value added, employment, and exports, addressing issues of regional development and structural adjustment of the economy, and increasing both domestic and foreign investment. This chapter also includes various areas related to the principles and instruments of entrepreneurship and sectoral competitiveness policies, thereby fostering entrepreneurship and innovation.

Chapter 20 also covers policy instruments, including financial support and regulatory measures, as well as sectoral policies. In this regard, the EU highlights entrepreneurship and industry as one of the priorities for the future of the European economy and defines this chapter through three main pillars: entrepreneurial policy, industrial policy, and sectoral policies aimed at enhancing market competitiveness.

Sub-areas

Within this chapter, Montenegro will negotiate in the following areas: industrial policy; small and medium-sized enterprises (SMEs) and entrepreneurial policy; innovation policy; Community programmes; banking and finance; tourism; aviation and maritime industries; construction; wood industry; steel; metals; and other raw materials.

When was the chapter closed?

Montenegro opened Chapter 20 – Entrepreneurship and Industrial Policy on 18 December 2013 and provisionally closed it at the Intergovernmental Conference held on 16 December 2024 in Brussels.

Closing benchmarks?

Within this chapter, Montenegro has defined one closing benchmark, as follows:

The preparation and implementation of a comprehensive industrial strategy, supported by a system for evaluating indicators and benchmarks, as proposed in the EU industrial policy.

In order to meet this closing benchmark, the Government of Montenegro adopted the Industrial Policy of Montenegro until 2020 on 30 June 2016, together with a multiannual Action Plan for its implementation. The objective of this strategy was to improve industrial competitiveness, the investment environment for industrial modernisation, promote innovation and entrepreneurship through increased productivity and employment, and improve access to domestic and international markets by simplifying trade procedures. Continuous monitoring of the implementation of the Industrial Policy of Montenegro until 2020 and its multiannual Action Plan has been carried out through the adoption and implementation of annual Action Plans and Reports on the implementation of the Action Plan by the Government of Montenegro.

Institutions/organisations participating in the negotiating working group

The Head of the Negotiating Working Group comes from the Ministry of Economic Development, which is the lead institution for this chapter.

In addition to the Ministry of Economic Development, the following institutions/organisations are also involved in this chapter: the Ministry of Education, Science and Innovation; the Ministry of Tourism; the Ministry of Finance; the Ministry of Ecology, Spatial Planning and Northern Development; the Ministry of Public Administration; the Ministry of Defence; the Ministry of Agriculture, Forestry and Water Management; as well as the Statistical Office of Montenegro (MONSTAT), the Chamber of Economy of Montenegro, the Investment and Development Fund, the Union of Employers of Montenegro, and others.

What are the benefits of this chapter for Montenegro?

A better business environment for enterprises will result in fewer administrative barriers and changes in legislation, thereby facilitating business operations. At the same time, the availability and diversification of sources of financing will increase, including access to various EU funds and programmes. Moreover, small and medium-sized enterprises, as the most important drivers of industrial growth, economic development, and new employment, will be directed—through increased EU financial support—towards strengthening competitiveness, introducing innovations, and adopting modern technologies. Particular emphasis is placed on promoting entrepreneurship among young people, start-ups, persons with disabilities, and women, as well as investment in energy efficiency, environmental protection, and the introduction of quality management systems and international quality standards.

Further progress in this area, which is directly linked to industrial development, through a clearly defined industrial policy, the development of priority industrial sectors, and policies supporting the development of small and medium-sized enterprises, creates the conditions for the development of a modern society, a strong market economy, and an innovative economy.

In the negotiation process with the EU to date, within Negotiating Chapter 20, Montenegro has implemented a number of activities and followed the suggestions and guidelines of the European Commission in order to align with key documents in the field of entrepreneurial and industrial policy and to harmonise with EU-level principles and instruments. The Negotiating Working Group for Chapter 20 – Entrepreneurship and Industrial Policy assesses that Montenegro has fulfilled its obligation related to the preparation of a comprehensive industrial strategy, while implementation is ongoing. Through the Industrial Policy of Montenegro 2024–2028, new initiatives at the level of EU industrial policy have been recognised, and recommendations from the evaluation of the previous strategy have been incorporated, thereby fully meeting the conditions for fulfilling the sole closing benchmark in this chapter and the provisional closure of Chapter 20.