Press release from the 120th Cabinet session

The Montenegrin Cabinet held its 120th session today, chaired by Prime Minister Milojko Spajić. The Cabinet adopted the Draft Law on Amendments to the Law on the Constitutional Court of Montenegro. The adoption of this law aims to further clarify certain legal provisions concerning the procedure for the early termination of the mandate of judges of the Constitutional Court and the President of the Constitutional Court due to meeting the conditions for retirement, in line with the recommendations of the Opinion of the Venice Commission. This will enable the regular functioning of the Constitutional Court by introducing a provision allowing a judge to continue performing their duties until a newly appointed judge assumes office, thereby preventing vacancies arising from delays in appointments. Additionally, the proposed amendments introduce a simplified mechanism for notifying the fulfilment of retirement conditions for Constitutional Court judges, as well as more precise provisions on the recusal of judges due to conflicts of interest, while fully respecting procedural guarantees and ensuring the uninterrupted functioning of the Court.

The Cabinet adopted the Draft Law on the Ratification of the Convention on the International Protection of Adults. The Convention provides a framework for the protection of adults in international situations who are unable to safeguard their own interests due to impairment or insufficiency of their personal capacities. It addresses cross-border situations involving the movement of individuals, including their assets located in different jurisdictions, and establishes a comprehensive set of rules on jurisdiction, applicable law, and the recognition and enforcement of protective measures, with the aim of creating mechanisms for cooperation between authorities of contracting states. Accession to this Convention represents an important step in strengthening the legal protection of vulnerable population groups in Montenegro. Increased mobility, migration, and a growing elderly population lead to situations where individuals have property, residence, or family ties in multiple countries. In such cases, complex issues may arise regarding international jurisdiction, applicable law, and recognition of protective measures adopted in other states. Accession to the Convention contributes to strengthening international legal cooperation, enhancing legal certainty, and aligning Montenegro's legal system with modern international standards in the fields of private international law and human rights protection.

The Cabinet adopted the Draft Law on Amendments to the Law on Games of Chance. It was noted that the proposed amendments extend the deadline for operators to align their business operations with the prescribed provisions to 450 days from the entry into force of the Law on Games of Chance, thereby extending the existing deadline of 270 days by an additional 180 days, i.e. until 11 November 2026. It is important to note that concession agreements shall be deemed extended until the expiry of this deadline. This provides additional time for harmonisation while ensuring continuity of operations and the continued implementation of the Law adopted in August last year. The extended deadline will enable the smooth alignment of operators' systems, particularly in areas related to the regulation of operations concerning the prevention of money laundering and the financing of terrorism.

The Cabinet adopted the Draft Law on Amendments to the Law on Personal Income Tax. The proposed regulation aims to improve the taxation system for winnings from games of chance by introducing a single proportional tax rate of 12%, replacing the current progressive taxation model of 0%, 10%, and 15%. One of the main objectives is to prevent abuses arising from the existing progressive taxation system. The introduction of a single tax rate reduces the possibility of tax avoidance through splitting winnings into smaller amounts. The measure also aims to increase the efficiency and transparency of the tax system and ensure fairer treatment of all taxpayers. Another important goal is the stabilisation and potential increase of budget revenues from taxes on gambling winnings, while in the long term strengthening tax discipline and trust in the tax system.

The Cabinet adopted the Decree on the Conditions, Method and Dynamics of Implementing Agricultural Policy Measures for 2026 - the Agrobudget. The adoption of the Agrobudget creates the conditions for the full implementation of legal provisions governing agricultural policy measures and provides support to agricultural holdings, associations of agricultural producers, and cooperatives. The aim is to secure income for agricultural households, strengthen the competitiveness of Montenegrin agriculture, improve living conditions in rural areas, build institutional capacity, meet EU food safety standards, and strengthen the fisheries sector. The Agrobudget for 2026 amounts to €77,324,258, of which €35,983,629 comes from the Budget of Montenegro, €18,681,852 from European Union funds, €11,658,776 from donations, and €11,000,000 from loan funds. The planned funds are allocated for direct payments in livestock and crop production, market interventions, and support for rural development measures. Funds are also provided for support to general agricultural services, social transfers to rural populations, technical and administrative support for programme implementation, institutional development and strengthening of agriculture, fisheries, phytosanitary measures, food safety programmes, and mandatory animal health protection measures.

The Cabinet adopted the Information on activities undertaken to address outstanding issues related to water supply for the golf courses and the overall "Luštica Bay" project, in line with point 6 of the Government's Conclusions No. 08-063/24-46/2 of 4 April 2024. The Information states that the "Luštica Bay" project is one of the most significant development ventures in the tourism sector, with strong positive effects on economic growth, enhancement of the tourism offering, job creation, and strengthening Montenegro's international recognition as an attractive and competitive destination. One of the key outstanding issues directly affecting its full implementation concerns the provision of an adequate water supply system, particularly for the planned golf courses. In this context, in order to ensure a timely, sustainable, and reliable long-term solution for water supply, the Cabinet has adopted a series of conclusions enabling the further development of the project and the implementation of planned facilities.

The Cabinet adopted the Information on arbitration proceedings No. 215352 conducted before the London Court of International Arbitration. The Information provides an overview of the situation regarding the reopening of the Aman Sveti Stefan complex (the island of Sveti Stefan and Villa Miločer), as well as proposed measures to safeguard the public interest in terms of fiscal revenues, employment, preservation of the cultural landscape, and the international reputation of the destination.