Montenegrin President Jakov Milatović has expressed concerns regarding the European Commission’s opinion on the Cooperation Agreement in tourism and real estate development between the governments of Montenegro and the United Arab Emirates (UAE). He described the Commission’s opinion as a warning and urged caution before the second parliamentary vote on the agreement.
Milatović thanked the European Commission for its opinion, which, he said, confirmed his earlier concerns: that the agreement’s content is not aligned with EU legal standards and that a thorough public debate and consultations with the EU were necessary before proceeding. Montenegro, he noted, aspires to become a full EU member.
“As President of the country, I signed the Economic Cooperation Agreement with the UAE with the belief that it would open space for improving cooperation and strengthening economic ties between our two friendly nations,” Milatović stated.
However, he clarified that he had not signed the controversial tourism and real estate agreement, as it raised significant constitutional and legal concerns. He also raised doubts about its implementation in light of EU legal frameworks.
The European Commission’s opinion noted that while the agreement did not explicitly contradict EU law at first glance, certain provisions—particularly those concerning exceptions to public procurement rules—could conflict with EU regulations. The Commission specifically warned that implementing these provisions would be contrary to EU law, particularly regarding procurement rules and the equal treatment of EU and Montenegrin companies.
Milatović emphasized that the European Commission raised concerns about Article 2.4 of the agreement, which proposes exemptions for UAE investors from public procurement laws, tenders, and competitive procedures. This, the Commission stated, could lead to direct contract awards, violating EU public procurement regulations.
The Commission also highlighted that such an approach could grant UAE companies preferential treatment over EU and Montenegrin companies, violating core principles of market equality and non-discrimination.
Milatović stressed the importance of ensuring that any implementation of the agreement complies with EU public procurement rules, emphasizing transparency, equal treatment, and non-discrimination.
“The application of Article 2.4, which proposes exemptions for future contracts under this agreement from public procurement laws, would be legally unsustainable. According to EU legal standards, public tenders must be organized, which directly contradicts the agreement’s text,” he said.
He warned that adopting the agreement in its current form, with provisions that cannot be implemented without breaching EU norms, could mislead both Montenegro’s international partners in the UAE and the European Union.
Milatović called on the government to work with the UAE to improve the agreement’s text, ensuring that the provisions are clear, precise, and legally sustainable, fully compatible with EU law and Montenegro’s legal framework.
He welcomed the European Commission’s willingness to assist Montenegro on this issue and urged the government to accept this support.
“The Commission has made it clear that transparency, adherence to public procurement rules, state aid regulations, investor selection, public finances, anti-corruption measures, and environmental protection are crucial for Montenegro’s progress on its European path,” Milatović noted.
Given the legal concerns already raised, including those from relevant Montenegrin agencies for corruption prevention and competition protection, and now the European Commission’s objections, Milatović called on the Montenegrin Parliament not to ratify the agreement in its current form.
