Montenegro: Country Profile

Montenegro regained its independence in 2006, following a referendum held in May of that year in which a majority of the population voted to leave the State Union of Serbia and Montenegro. The country embarked on a democratic transition away from Communism in 1991, yet ever since then, Montenegro has been ruled by the Democratic Party of Socialists, the successor to the League of Communists of Montenegro.

Overview

The modern Montenegrin state began to emerge in 1852, when a secular principality was proclaimed under Prince Danilo. The new principality replaced a system of theocratic princely rule which had existed since the late 17th century and allowed Montenegro a degree of autonomous self-rule within the Ottoman Empire. The principality’s independence was internationally recognized in 1878 at the Congress of Berlin, and in 1910 the country was transformed into a kingdom.

Following the end of the First World War, Montenegro became part of the Kingdom of Serbs, Croats and Slovenes. During the World War II, it was occupied by Italian troops. Communist-led Partisans liberated Montenegro from Axis rule by December 1944, with the country becoming one of the six republics of the Socialist Federal Republic of Yugoslavia after the end of World War II.

Unlike Slovenia, Croatia, Bosnia and Herzegovina and Macedonia, which sought independence from Yugoslavia following the fall of Communism, Montenegro chose to maintain a common Yugoslav state with Serbia, proclaiming the Federal Republic of Yugoslavia in 1992. This arrangement lasted until 2003, when a more decentralised State Union of Serbia and Montenegro was proclaimed, following the mediation of the European Union, through the Belgrade Agreement. The agreement also allowed for either state to hold a referendum on the dissolution of the State Union within three years.

Montenegro duly exercised this right and held an independence referendum in May 2006. After 55 per cent of voters cast their ballots in support of independence, on June 3, 2006 the Montenegrin parliament proclaimed the country’s independence.

The first multi-party elections in Montenegro were held in December 1990. The League of Communists of Montenegro (SKCG) emerged victorious from these elections, winning 55 per cent of the votes cast, while its leader, Momir Bulatovic, was elected president with 76 per cent of the votes in the second round of the presidential elections. In February 1991, Milo Djukanovic, a senior SKCG official, became the first democratically elected prime minister of Montenegro. Later, in June 1991, the League of Communists transformed itself into the Democratic Party of Socialists (DPS). Despite internal feuding and a rift between Bulatovic and Djukanovic during the late 1990s, the DPS has won elections and retained power in Montenegro to the present day.

Basic facts

Capital city	Podgorica
Population (2016 est.)	620,029 (2011 census)
Land area	13,812 km2
Official language	Montenegrin, Serbian, Bosniak, Croatian
Major religions	Orthodox Christianity, Islam
Life expectancy	73 years (men), 77 years (women)
Currency	Euro
(Sources: World Bank, BBC)

Key events

1878 – Montenegro’s independence recognized by the Congress of Berlin.

1910 – Kingdom of Montenegro proclaimed, replacing the former Principality.

1918 – Montenegro becomes part of the Kingdom of Serbs, Croats and Slovenes following the end of World War I.

1929 – The Kingdom of Serbs, Croats and Slovenes is transformed into the Kingdom of Yugoslavia.

1941 – Yugoslavia occupied and dismembered by Nazi Germany; Montenegro occupied by Italy.

1945 – Following the end of World War II, Montenegro becomes one of the six constituent republics of what later became known as the Socialist Federative Republic of Yugoslavia (SFRY), along with Bosnia and Herzegovina, Croatia, Macedonia, Serbia and Slovenia. The country is ruled by Josip Broz Tito and the Communist Party.

1974 – Yugoslavia adopts a new constitution, decentralising power from the federation to the republics.

1980 – Death of Josip Broz Tito.

1990 – Fall of Communism, first multi-party elections held throughout the year in the various republics; the League of Communists led by Momir Bulatovic is victorious in Montenegro.

1991 – The League of Communists of Montenegro is renamed the Democratic Party of Socialists; Milo Djukanovic becomes prime minister of Montenegro.

1992 – Following the dissolution of the Socialist Federal Republic of Yugoslavia, Serbia and Montenegro form the Federal Republic of Yugoslavia (FRY).

1997 – Split between Momir Bulatovic and Milo Djukanovic within the DPS; Bulatovic and Djukanovic compete in presidential elections in October, with Djukanovic emerging victorious.

1999 – NATO bombing of the Federal Republic of Yugoslavia; Montenegro adopts the Deutschmark as its currency.

2000 – Federal Republic of Yugoslavia President Slobodan Milosevic is toppled from power.

2002 – Milo Djukanovic becomes prime minister of Montenegro.

2003 – State Union of Serbia and Montenegro proclaimed; Filip Vujanovic elected president of Montenegro.

2004 – Prominent journalist and government critic Dusko Jovanovic shot dead.

2006 – Montenegro declares independence; Djukanovic retires from politics.

2008 – Djukanovic comes out of political retirement and becomes prime minister again; Montenegro formally applies for EU membership.

2010 – Montenegro becomes an official EU candidate state; Djukanovic retires from politics for a second time.

2012 – Montenegro joins the World Trade Organisation and opens accession negotiations with the EU; Djukanovic becomes prime minister again following parliamentary elections in October.

2015 – NATO extends an invitation to Montenegro to become a member.

Politics and government

Montenegro is a parliamentary democracy and although the president is directly elected, most executive powers lie with the prime minister and his or her cabinet. The president’s main role is to represent the country domestically and internationally, to call parliamentary elections, nominate the prime minister after each election and sign laws into force. The president may send a law back to parliament for consideration once, but must sign it into force if it is adopted a second time.

Government

Montenegro’s current president is Filip Vujanovic. At the April 2013 presidential election, incumbent Vujanovic narrowly beat the candidate of the united opposition, Miodrag Lekic.

The current government of Montenegro was elected on December 4, 2012. The government is led by the Democratic Party of Socialists (DPS) with the support of the Social Democratic Party (SDP), the Social Democrats of Montenegro (SD), Positive Montenegro (PCG), the Bosniak Party (BS) and Croatian Civic Initiative (HCI).

Prime Minister – Milo Djukanovic – DPS
Deputy Prime Minister for Political System, Foreign and Internal Policy – Dusko Markovic – DPS
Deputy Prime Minister for Economic Policy and the Financial System – Vujica Lazovic – SD
Deputy Prime Minister for Regional Development – Rafet Husovic – BS
Deputy Prime Minister and Minister of Agriculture – Petar Ivanovic – DPS
Deputy Prime Minister – Milorad Vujovic – The Civic Movement URA
Deputy Prime Minister – Azra Jasavic – PCG
Minister of Justice – Zoran Pazin – DPS
Minister of Interior – Goran Danilovic – DEMOS
Minister of Defence – Milica Pejanovic-Djurisic – DPS
Minister of Finance – Rasko Konjevic – SDP
Minister of Education – Predrag Boskovic – DPS
Minister of Science – Sanja Vlahovic – DPS
Minister of Culture – PavleGoranovic – DPS
Minister of Economy – Vladimir Kavaric – DPS
Minister of Transport and Maritime Affairs – Ivan Brajovic – SD
Minister of Sustainable Development and Tourism – Branimir Gvozdenovic – DPS
Minister of Health – Budimir Segrt – DPS
Minister for Human and Minority Rights – Suad Numanovic – DPS
Minister for Information Society and Telecommunications – Vujica Lazovic – SD
Minister of Labour and Social Welfare – Boris Maric, The Civic Movement URA
Minister without Portfolio – Marija Vucinovic – HGI

Parliament

The Montenegrin parliament is composed of 81 members, elected for a four-year term. The entire country is a single constituency and parties and coalitions must clear a three per cent vote threshold to enter parliament, apart from ethnic minority parties, which must clear a 0.8 per cent threshold . The current parliament was elected on October 14, 2012.

Party   Leader   % of votes   Seats
Democratic Party of Socialists   Milo Djukanovic   45.60%   39
Democratic Front   Miodrag Lekic   22.82%   20
Socialist People’s Party (SNP)   Srdjan Milic   11.06%   9
Positive Montenegro   Darko Pajovic   8.24%   7
Bosniak Party (BS)   Rafet Husovic   4.17%   3
For Unity (ZJ)   Genci Nimanbegu   1.45%   1
Albanian Coalition   Fatmir Deka   1.05%   1
Croatian Civic Initiative (HGI)   Marija Vucinovic   0.40%   1

Elections

The last presidential elections were held in April 2013. The incumbent, Filip Vujanovic, won 51.21 per cent of the votes cast in the first round, beating the candidate of the united opposition, Miodrag Lekic, who won 48.79 per cent of the votes.

The next presidential elections are due before April 2018.

The last parliamentary elections were held on October 14, 2012. The coalition around the Democratic Party of Socialists (DPS) narrowly failed to win an absolute majority.

The next regular parliamentary elections are due on October 16, 2016.

EU accession process

Of the remaining six Western Balkan countries which are yet to join the EU, Montenegro has come furthest in the accession process. Upon gaining independence in 2006, the country quickly embarked on negotiations on the signing of a Stabilisation and Association Agreement (SAA). The SAA was signed in October 2007, with Montenegro submitting its formal application for EU membership in December of the following year. Two years later, in December 2010, Montenegro received formal candidate status. In June 2012, formal accession negotiations between the EU and Montenegro were opened. As of September 2016, 24 out of 33 negotiating chapters had been opened, while two had been provisionally closed.

Economy

Montenegro has largely transitioned to a market economy since the fall of communism. Around 85 per cent of its companies have been privatised, including the entire banking and telecommunications sectors. The service sector accounts for around 70 per cent of GDP, with tourism being a particularly large sub-sector. In terms of industry, the main sectors are steelmaking, aluminium and consumer goods, while tobacco, citrus fruits, olives and grapes are important agricultural sub-sectors.

Prior to the onset of the global economic crisis, economic growth averaged around nine per cent in the period 2006-2008. However, in 2009, GDP contracted by 5.7 per cent. In the subsequent years, the country saw sluggish growth, with output recovering to pre-2008 levels only in 2013. While the World Bank is optimistic about the country’s growth prospects, fiscal policy is a source of concern. In the period 2015-2017, the country’s budget deficit is expected to stand at around eight per cent of GDP, before declining to a still high 7.3 per cent in 2018. Public and publicly guaranteed debt is expected to rise from the present 82.6 per cent to 88 per cent in 2018, according to World Bank projections.