Approximation of the legislation with EU Acquis on free movement of services and competition protection – ALA Project
Project description
Title: Approximation of the legislation with EU Acquis on free movement of services and competition protection – ALA Project
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Montenegro
Lead executing agency: Ministry of Economy
Overall term: 2014 to 2016
Context
A Stabilisation and Association Agreement has been in place between Montenegro and the European Union since 2010, and in June 2012 the country entered into accession negotiations with the EU. Under the terms of the Association Agreement, and in order to meet the requirements for accession, Montenegro’s legislation must be harmonised with the EU acquis.
A market characterised by stronger competition, based on both trust as well as regulatory authorities equipped to cope with different kinds of market imperfections and obstructions, will in turn stimulate innovations and other consumer benefits, economic growth and a well functioning and equitable economy at the macro level.
At the same time, making it easier to set up new companies will help save both time and money, and facilitating the cross-border provision of services by local authorities can bring significant gains in terms of foreign direct investment, growth and job creation, as has been witnessed elsewhere, in EU Member States that have already fully implemented the Service Directive.
Objective
Montenegro’s legislation on the protection of competition and the freedom to provide services has been aligned with the EU acquis.
Approach
Commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), this project is also co-financed by the European Union (IPA 2012). It supports Montenegro’s efforts to adapt its regulatory systems in the areas of competition protection and freedom to provide services, such that the country is gradually prepared for the challenges of joining the internal market.
The project combines activities to improve the legislative systems with measures to build up administrative capacities at both central and local levels. It is working, for instance, with the Agency for Protection of Competition to develop the Agency’s capacity to enforce the new legislation. And it is supporting a process of continuous screening and amendment to legislation which will allow Montenegro to meet the requirements of the EU Services Directive, even after the project has ended.
At the same time, it conducts awareness raising campaigns to improve public understanding regarding key aspects of competition law and the freedom to provide services, both of which are essential to the normal functioning of a market economy. And it is working to enhance the knowledge of the Service Directive among the private sector, local self-government authorities and the general public.
With this integrated approach, the project should encourage a larger space for competition, while enhancing market conditions and prompting the stronger development of small and medium-sized enterprises. This should have a positive impact on the national economy as a whole, and bring benefits to the citizens of Montenegro.