Montenegro is approaching a decisive stage in its European Union accession process, with tangible progress toward closing Negotiating Chapter 9, which covers financial services and capital markets. According to President of the Commission for Capital Markets, recent legislative and institutional reforms are creating the necessary conditions for the provisional closure of one of the most technically demanding chapters in the negotiation framework.
Chapter 9 is central to aligning Montenegro’s financial system with EU standards, encompassing capital markets regulation, investor protection, market transparency, financial infrastructure, and supervisory mechanisms. Progress in this area signals not only regulatory convergence with the European acquis but also a structural upgrade of the domestic financial system.
Drinčić highlighted that a new, comprehensive Capital Markets Act is scheduled to be submitted to Parliament. The law represents one of the most extensive overhauls of Montenegro’s financial-market legislation to date. Although full application of certain provisions is formally linked to EU membership, early adoption is intended to ensure legal certainty, institutional preparedness, and immediate alignment once accession occurs. The objective is to remove regulatory gaps and establish a framework fully compatible with EU rules from the outset.
The reform package aims to harmonize national legislation with EU requirements governing market supervision, trading infrastructure, clearing and settlement systems, and oversight of market participants. A stronger regulatory framework is expected to improve investor confidence, enhance market transparency, and create safer conditions for capital allocation. Particular emphasis is placed on improving access to financing for small and medium-sized enterprises, which remain heavily dependent on bank lending.
Drinčić acknowledged that Montenegro’s capital market has long faced structural challenges, including low liquidity, a limited range of financial instruments, and cautious investor participation. He argued that predictable, well-enforced regulation is a prerequisite for reversing these trends and for gradually developing a more dynamic and diversified market ecosystem.
Beyond legislation, he stressed that sustainable market development also requires improvements in corporate governance, higher-quality financial reporting, stronger institutional investor engagement, and greater financial literacy among citizens. Initiatives aimed at improving public understanding of capital markets are already underway, including cooperation with educational institutions and outreach programs targeting younger generations.
Progress under Chapter 9 forms part of Montenegro’s broader EU accession trajectory, under which the country has already provisionally closed a significant number of negotiating chapters. Advancing toward closure in the financial services chapter is seen as particularly important, as it directly affects financial stability, investor protection, and Montenegro’s integration into the European financial system.
According to Drinčić, alignment with EU financial standards is not only a formal accession requirement but also a strategic development objective. A well-regulated and credible capital market is viewed as a foundation for long-term economic growth, improved access to investment capital, and deeper integration with European markets as Montenegro moves closer to EU membership.
