What is being negotiated?

This chapter concerns the conditions, structure, and procedures for using the European Structural and Investment Funds (ESIF), primarily the European Regional Development Fund (ERDF) and the European Social Fund (ESF), and, for some member states, the Cohesion Fund. The common provisions applying to these three funds also apply to the European Maritime and Fisheries Fund and the European Agricultural Fund for Rural Development.

Regional policy and the coordination of structural instruments form part of EU policy related to financial support for EU states and regions. The goal of this policy is to provide support for financing projects aimed at developing infrastructure, stimulating industry and employment, with the ultimate aim of promoting economic development in less-developed regions, reducing regional disparities, and enhancing regional competitiveness.

Montenegro will have access to these funds only after EU accession. Until then, through the negotiating process under this chapter and through implementation of EU-financed programs and projects during the pre-accession period, Montenegro is preparing for the most efficient use of ESI funds.

Sub-areas

The sub-areas under Chapter 22 are:

1. Legislative framework

2. Institutional framework

3. Administrative capacities

4. Programming

5. Monitoring and evaluation

6. Financial management and control

When was the chapter opened?

Negotiating Chapter 22 – Regional Policy and Coordination of Structural Instruments was officially opened on 20 June 2017.

Closing benchmarks

I. Montenegro demonstrates a satisfactory level of implementation of pre-accession EU support in Montenegro approved for indirect management, particularly for components and areas relevant for future implementation of ESI funds.

II. Montenegro submits to the Commission an advanced and comprehensive draft Partnership Agreement (PA), defining how Montenegro plans to ensure alignment with the EU strategy for smart, sustainable, and inclusive growth, selected thematic objectives, and key expected results for each ESI fund. The draft PA will include indicative indicators for the planned Operational Program, sources of financing, and a report on the assessment of compliance with applicable ex-ante conditions.

III. Montenegro prepares and submits a detailed plan and schedule of activities for completing the Partnership Agreement and preparing and finalizing operational programs. This plan should include information on how and at which level Montenegro intends to organize the programming process, as well as a precise description of the contributions and tasks of all involved institutions at national and local levels.

IV. Montenegro establishes the institutional framework for implementing EU cohesion policy, including formal designation of institutional structures (with defined tasks and responsibilities) for managing the operational program. This relates to the managing authority, certifying authority, and audit authority, as well as intermediate bodies, where appropriate. Adequate separation of functions between relevant institutions must be ensured.

V. Montenegro adopts individual development strategies for key bodies involved in managing/implementing ESI funds (including SWOT analyses, training needs assessments, staffing plans, and training implementation for capacity building), as well as a comprehensive institutional development and capacity-building strategy based on an appropriate risk assessment for all involved bodies (including beneficiaries where identified).

VI. Montenegro submits to the Commission a detailed plan and schedule regarding the establishment of a monitoring and evaluation system, including the establishment of an electronic management and monitoring information system (MIS).

Next period activities

Activities in the next period will primarily focus on fulfilling the six closing benchmarks, including:

• Regular monitoring of the contracted and disbursed funds under the IPA program

• Establishing partnership principles

• Preparing relevant plans and operational programs

• Establishing the institutional framework

• Strengthening administrative capacities

• Preparing for the establishment of the MIS

Institutions/organizations participating in the negotiating group

The decision to amend the establishment of the Negotiating Working Group (NWG) for Chapter 22 was adopted at the Government session on 31 July 2025 (Official Gazette of Montenegro, no. 88/25 of 5 August 2025). The NWG has 38 members, including the head, deputy head, and secretary.

Apart from the Ministry of European Affairs, the participating institutions include:

• Ministry of Finance

• Ministry of Ecology, Spatial Planning, and Urbanism

• Ministry of Labor and Social Welfare

• Ministry of Economic Development

• Ministry of Agriculture, Forestry, and Water Management

• Ministry of Human and Minority Rights

• Ministry of Education, Science, and Innovation

• Ministry of Regional Investment Development and NGO Cooperation

• Ministry of Public Works

• Ministry of Public Administration

• Audit Authority

• Association of Municipalities of Montenegro

• Employment Bureau of Montenegro

• Agency for the Protection of Competition

• Development Bank of Montenegro

• Innovation Fund of Montenegro

• Statistical Office

• NGOs: Association for Democratic Prosperity – ZID, Network for European Policies – MASTER

Benefits for Montenegro

By implementing EU legislation and policies under this chapter, after EU membership, Montenegro will be able to access European Structural and Investment Funds at a level 6–10 times higher than during the pre-accession period. This will allow Montenegro to improve:

• Infrastructure

• Economic competitiveness

• Human resources

• Quality of life for citizens

• Connectivity with the rest of the European Union