EconomyMontenegro risks losing EU Growth Plan funds over delayed constitutional reforms

Montenegro risks losing EU Growth Plan funds over delayed constitutional reforms

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Montenegro could lose €4.6 million from the European Union’s Growth Plan for the Western Balkans unless constitutional amendments linked to judiciary reform are adopted by the end of June, adding new political and financial pressure on Podgorica’s EU accession process.

The warning relates to obligations under Montenegro’s Reform Agenda agreed with the European Commission, specifically measures tied to strengthening judicial independence, accountability and institutional integrity in line with EU legal standards and recommendations from the Venice Commission and GRECO.

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According to reform documentation, the disputed constitutional amendments are tied to a funding tranche worth €4.63 million, with the Ministry of Justice identified as the responsible institution. The measure had originally been scheduled for implementation in mid-2025, but the deadline was missed, pushing the final implementation window to June 2026.

The issue has become increasingly sensitive because Montenegro has positioned itself as the most advanced EU accession candidate in the Western Balkans and has relied heavily on the political momentum created by the EU Growth Plan. The six-billion-euro regional package was designed to accelerate reforms, infrastructure investment and gradual integration of Western Balkan economies into the EU single market.

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For Montenegro, the mechanism carries both financial and symbolic importance. The country has already secured multiple disbursements through the programme, including earlier pre-financing and additional approved tranches linked to reform delivery. Government officials previously stated that Montenegro could secure more than €100 million through the mechanism if reform commitments continue to be fulfilled.

However, Brussels has increasingly linked payments to measurable implementation rather than political declarations. Across the Western Balkans, the European Commission has signaled that delayed reforms may directly affect future disbursements. Regional estimates published earlier this year suggested Western Balkan countries collectively risk losing more than €700 million in potential financing if agreed reform milestones are not completed on time.

In Montenegro’s case, the constitutional amendments focus primarily on reforms affecting the Judicial Council and Prosecutorial Council, areas long viewed by Brussels as central to rule-of-law credibility. The government has already adopted an initiative for constitutional changes, while parliamentary committees began reviewing amendment proposals earlier this year. The next phase is expected to include political consultations, a 30-day public debate and a final parliamentary vote requiring a two-thirds majority.

The funding risk comes at a particularly important moment for the Montenegrin economy. EU Growth Plan resources are increasingly being viewed not only as institutional reform incentives but also as quasi-development financing capable of supporting infrastructure, digitalisation, energy transition projects and broader fiscal stability. Delays therefore create not only political uncertainty but also concerns over the continuity of external financing flows.

For investors and lenders following Montenegro’s EU trajectory, the episode reinforces a broader regional pattern: access to European funding is becoming increasingly conditional on institutional execution capacity. In practical terms, constitutional and governance reforms are no longer treated solely as accession benchmarks but as direct determinants of capital inflows and public investment availability.

The political challenge is intensified by Montenegro’s fragmented parliamentary environment, where securing a two-thirds majority for constitutional amendments remains difficult. Failure to complete the process before the June deadline could raise questions about reform momentum precisely as the country attempts to accelerate negotiations with Brussels and position itself as the leading EU accession candidate in the region.

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