The subchapters of Chapter 32 are:
1. Public Internal Financial Control (PIFC)
2. External audit
3. Protection of the EU’s financial interests
4. Protecting the euro against counterfeiting
When was the chapter opened?
Chapter 32 – Financial Control was officially opened at the Intergovernmental Conference on 24 June 2014. Negotiations in this chapter are ongoing.
Montenegro is working intensively towards meeting european standards and creating of the conditions for closing of this chapter, related to:
1. Montenegro implements PIFC legislation and underlying policies and ensures sufficient administrative capacity at central and local level, in social security funds and in the state-owned enterprises. Montenegro further ensures that the proposed centralised budget inspection function is in line with the PIFC requirements.
2. The State Audit Institution (SAI) of Montenegro complies with the standards of the International Organization of Supreme Audit Institutions (INTOSAI), including ensuring financial, functional and institutional independence, implementation of finance and performance audits, and ensures sufficient administrative capacity.
3. Montenegro ensures an effective and efficient coordination of anti-fraud activities to guarantee the fulfilment of future obligations arising from Article 325(3) of the TFEU and application of the provisions of Regulation (EC) No 2185/96 concerning on-the-spot checks and inspections carried out by the Commission, in particular the obligation of assistance to Commission inspectors. Montenegro provides a track record on cooperation with the Commission on reported irregularities and investigation cases involving EU funds.
4. Montenegro ratifies and implements the 1929 Geneva International Convention for the suppression of counterfeiting currency, aligns its legislation with the EU acquis on medals and tokens similar to euro coins and ensures sufficient administrative capacity for the technical analysis centre.
What are the activities in the coming period?
The focus of the activities in the forthcoming period will be on further harmonization of legal and strategy documents, implementation of regulations and strengthening of administrative capacities.
Institutions / organizations participating in the negotiation group?
The Negotiator for Chapter 32 as well as the Head of the Working Group are from the Ministry of Finance, while the contact person for the Working Group 32 is selected by the European Integration Office.
In addition to representatives of the Ministry of Finance, members of the Working Group are representatives of the following bodies and organizations: Central Bank of Montenegro, State Audit Institution, Parliament of Montenegro, European Integration Office, NGO “Institut Alternativa”, Employers Union of Montenegro, University of Donja Gorica and University of Montenegro, Mediteran University.
What are the benefits to Montenegro of this chapter?
The aim of european policy in this chapter is to combat financial fraud and counterfeiting of the euro, which will contribute to improvement of the overall financial situation and security in Montenegro. Also, this chapter aims to ensure that public funds and their expenditure are appropriately managed.