Montenegro has reassigned responsibility for verifying expenditure under EU territorial cooperation programmes to the Ministry of European Affairs, as the country expands its participation in European funding mechanisms and prepares to manage larger financial allocations ahead of potential EU membership.
The government amended its administrative rules on October 20, transferring first-level control functions for Interreg programmes from the Finance Ministry to the ministry responsible for European integration. The responsibilities include expenditure verification, assessment of cost eligibility and compliance checks required before beneficiaries can receive reimbursements from EU programmes.
Relevant civil servants, documentation and equipment are also expected to move between the ministries. Both institutions have 30 days after the amendment enters into force to adjust their internal organisation.
Interreg Programme Approves 19 Projects Worth €29.89 Million
The administrative change comes as Montenegro’s participation in EU-supported regional cooperation expands. Under the third call of the Interreg Danube Region Programme, 19 projects with a combined value of €29.89 million have been approved. Montenegrin institutions participate in 13 of these projects, involving 14 domestic partners. Approximately €1.19 million is allocated directly to the Montenegrin participants.
Implementation is scheduled to begin on December 1, 2026, with projects running for 28 months. The €29.89 million figure represents the total value of the regional projects rather than Montenegro’s direct funding allocation.
Reimbursement Procedures and Cash Flow
Montenegro is also expanding its participation in Instrument for Pre-Accession Assistance (IPA) programmes, the Western Balkans Investment Framework and other EU-supported mechanisms covering transport, environmental protection, energy, digitalisation and regional development.
As the funding pipeline grows, the ability to verify expenditure and process reimbursement claims efficiently becomes increasingly important for project cash flow. EU grants frequently operate on a reimbursement basis, requiring beneficiaries to incur eligible costs and submit supporting documentation before expenditure can be certified.
Delays in verification can create working-capital pressures for municipalities, public institutions, universities, consultants and other beneficiaries, even when grant financing has already been approved.
Moving expenditure controls to the Ministry of European Affairs could bring project administration, EU-policy oversight and financial verification closer together. The institutional reorganisation also requires files, responsibilities and staff to be transferred without disrupting ongoing payment claims or creating uncertainty over who has the authority to approve expenditure. The timing is particularly relevant as newly approved projects approach their planned implementation start in December.
Administrative Requirements for Future EU Funding
The longer-term requirements extend beyond the current Interreg allocations. Potential EU membership would provide access to structural, cohesion and other investment funds exceeding the amounts currently managed through pre-accession programmes.
Managing those resources would require stronger project preparation, procurement, accounting and audit capabilities across ministries and municipalities. EU funding depends on institutions being able to spend allocated resources correctly and demonstrate compliance with increasingly detailed requirements. Insufficient documentation or ineligible expenditure can delay reimbursement and, in more serious cases, result in financial corrections.
Implications for Infrastructure Projects and Beneficiaries
Administrative capacity also affects project bankability. Contractors and consultants working on EU-supported infrastructure need predictable procedures for verifying invoices and processing payments. Municipalities facing reimbursement delays may need temporary borrowing or could postpone other investments. The transfer of expenditure controls places greater emphasis on the systems supporting EU-funded projects, including continuity in payment processing and compliance procedures during the institutional transition.
