WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR:M.J. GDNUS
The Agreement on Cooperation in the Field of Tourism and Real Estate Development between the Governments of Montenegro and the United Arab Emirates (UAE) is not at first glance contrary to European Union (EU) law or the Stabilization and Association Agreement of Montenegro with the EU (SAA), but improper application and interpretation of some of its provisions could lead to violations of these regulations in the field of public procurement and discrimination against European and Montenegrin companies in favor of potential investors from the UAE, stated in the response of Enlargement Commissioner Marta Kos to the President of Montenegro Jakov Milatović.
In the response that arrived yesterday at the Office of the President, Kos reminds that all international agreements concluded by Montenegro should be in accordance with the national, constitutional and legal framework, the EU acquis, as well as the Stabilization and Association Agreement (SAA) between Montenegro and the EU.
According to the Commission's analysis, the Agreement on Cooperation in the Field of Tourism and Real Estate Development does not at first sight contain sufficiently precise provisions that would in themselves be contrary to EU law.
However, Kos points out, some of the provisions will have to be carefully implemented in order to avoid conflict with the principles of public procurement, as defined by the EU acquis. It will therefore be important to monitor their implementation, as it would be desirable, she notes, to avoid such situations.
- In particular, the Agreement on Cooperation in the Field of Tourism and Real Estate Development states that all contracts, programmes and further agreements with investors from the UAE are exempt from the legislation of both countries regarding public procurement, public tenders and competitive procedures (Article 2.4). It can therefore be assumed that future contracts could be awarded directly, which could constitute a breach of EU public procurement law - stated Kos's response.
Also, as she noted, this Agreement does not in principle contain provisions that are in themselves contrary to the SAA. Compliance, she said, will depend on the interpretation and implementation of the "projects" described in Article 1.
Kos noted that the Stabilisation and Association Agreement (SAA) contains a very broad provision on the opening of the public procurement market, based on non-discrimination and reciprocity, equal treatment between EU and Montenegrin companies, as well as transparency of public procurement procedures.
- The agreement, depending on the way it is implemented, could potentially weaken the position of EU and Montenegrin companies, given the preferential treatment given to companies from the UAE. Given Montenegro's ambition to become an EU member, it would be essential to ensure that this agreement, once implemented, is compliant with the EU acquis in the field of public procurement, which is based on non-discrimination, equal treatment of companies and transparency of public procurement procedures - Kos said.
In order to avoid any concerns, the way in which the Agreement will be interpreted, applied and enforced will have to be carefully managed, Kos said.
- The European Commission stands ready to assist Montenegro in this regard. Transparency, respect for public procurement rules, state aid, choice of investors, wider implications for public finances and the fight against corruption, as well as respect for environmental standards, will be of the utmost importance in this context - Kos said.
The Commissioner for Enlargement recalled that EU accession is Montenegro's strategic and political objective.
- In order to continue the progress made in the previous year, it is essential to continue to foster a constructive dialogue among all political actors in order to reach the necessary consensus on reforms. The Commission will continue to support Montenegro on its path towards the EU - Kos concluded.
