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In the autumn of each year, the European Commission adopts its “Enlargement package” – providing a detailed assessment of the state of play and the progress made by the enlargement countries on their respective paths towards the European Union, with a particular focus on implementing fundamental reforms, as well as clear guidance on the reform priorities ahead.
Separate chapters are developed for the knowledge economy, i.e. the areas that the Western Balkans Info Hub focuses: “Science and Research” (chapter 25) and “Education and Culture” (chapter 26 which includes also a focus on higher education) as well as the chapter “Enterprise and Industrial Policy” (chapter 20 which includes a focus on innovation in the business sector) are referenced below. Further chapters address topics including fundamentals such as the functioning of democratic institutions, rule of law, economic criteria, etc., intellectual property law, digital transformation, enterprise and industrial policy, green agenda and sustainable connectivity, agriculture, external relations and many more.
For the full report on Montenegro see the Report and Factsheet.
Chapter 25 – Science and Research
Montenegro has a good level of preparation in this area. Some progress was made, particularly in completing the first cycle of the Smart Specialisation Strategy, strengthening academia-business cooperation and preparing the Law on scientific research activities for
adoption. The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Montenegro should:
adopt and start implementing the second cycle of the Smart Specialisation Strategy
covering the 2026-2031 period;
→ further strengthen the national innovation ecosystem;
→ implement the Law on Scientific Research Activities (and associated implementation regulations).
The EU provides significant support for research and innovation. All EU Member States associated countries and third countries participate in the EU’s research and innovation programmes, and can benefit from them, especially where there is a scientific excellence and solid investment in research and innovation.
Concerning research and innovation policy, the implementation and completion of the Smart Specialisation Strategy for 2019-2024 was finalised in December 2024. The final implementation and evaluation report for 2024 for the first cycle of the Smart Specialisation Strategy for 2019-2024 is underway. Montenegro is in the process of adopting a new Smart Specialisation Strategy for 2026-2031, with an action plan for 2025 as bridge between the two cycles
Montenegro is increasing its Concerning the 2025 funding allocated to research and development, Montenegro increased research. It is estimated at 0.4 % of the GDP for 2024, but further efforts are needed. The Innovation Fund continues to provide grants and support to innovative start-ups and companies, and the Innovation and entrepreneurship center Tehnopolis keeps increasing its own technical capacities and opening new programmes for interested citizens and businesses.
The Science and Technology Park of Montenegro has accepted 26 tenants, while Tehnopolis has now 42 tenants compared to 21 in 2024. 24 national scientific research projects are being implemented based on the co-financing call of the Ministry of Education, Science and Innovation in 2024, with a total funding of around EUR 2.2 million. Collaboration with the European Innovation Council remains strong, with the Innovation Fund’s collaborative grants programme being implemented based on the certification for integration into the European Innovation Council Accelerator’s Plug-In scheme, received in 2023.
In the 2025 European innovation scoreboard Montenegro is an Emerging Innovator with performance at 45.3 % of the EU average. Montenegro’s performance in the Horizon Europe programme has increased compared to previous Framework Programmes: Montenegrin applicants have signed 31 grants with a funding of 4,83 million Euro so far.
Chapter 26 – Education and Culture
Montenegro has a good level of preparation in this area. Good progress was made, particularly on the adoption of the high-quality, comprehensive and costed Education Reform Strategy 2025-2035. The Commission’s recommendations from last year were partially implemented. In the coming year, Montenegro should in particular:
→ ensure the new Education Reform Strategy (2025-2035) and its action plan 2025-2026 are implemented effectively and in a timely manner by allocating them adequate funding in the 2026 education budget and the Medium-Term Expenditure Framework for 2028.
→ focus on action plan measures that aim to improve the quality and inclusiveness of education and access to it;
→ ensure fully implementing, funding and monitoring the new Youth Strategy 2023-2027.
The EU supports cooperation in education and culture through funding programmes and the coordination of Member State policies through the ‘open method of coordination’. The EU and the Member States must also prevent discrimination and ensure quality education for children of migrant workers, including those from disadvantaged backgrounds.
In April 2025 the government adopted the Education Reform Strategy 2025-2035 and its Action Plan for 2025-26. The new strategy includes all levels of education and consists of four key pillars: quality and equity, support to teachers, governance and financing, and school infrastructure and equipment. It focuses on the development of ‘future-proof’ key skills and competencies, reforms of the initial and in-service training of teachers, on enhancing the overall governance and resilience of the education system and on ensuring sustained financing of reforms. It includes also large-scale investment in improving school infrastructure. On 31 July 2025, Montenegro adopted a series of amendments to the General Law on Education aiming, among others, at ensuring education institutions are a safe learning environment for all, enhancing career guidance, and improving quality of teaching.
Around 8.99% of the state budget for 2024 is dedicated to education (except tertiary education). The 2024 public budget for education increased by approximately 20% for non[1]salary items, including an almost 8 times higher allocation for teachers’ professional development compared to 2023 The percentage of children enrolled in preschool education increased in 2024/2025 by 3.4% in comparison to 2023/2024, with a coverage rate of 3–6-year-old children standing at 79.6% (EU average in 2024 was 94.,6%). Regarding international assessments of secondary education, Montenegro took part to the Teaching and Learning International Survey (TALIS 2024). This test aims at providing evidence-based data on the working conditions of teachers and school leaders and learning environments in their schools. Montenegro is participating to PISA 2025.
Moreover, Montenegro has enrolled to join future tests Progress in International Reading Literacy Study (PIRLS) 2026, TIMSS 2027 and International Computer Information and Literacy Study (ICILS) 2028. Regarding vocational education and training (VET), the Ministry of Education continued to be committed to the Osnabruck Declaration and reforms to address skills mismatches. More focus is needed on work-based learning at both VET and higher education levels. The strategy on higher education recognises the need for better alignment of study programmes with the needs of the labour market, adequate recognition of higher education qualifications and improvement of infrastructure. Furthermore, the strategy underlines the necessity to improve the higher education system in accordance with European Higher Education Area (Bologna process) and European Research Area standards and to strengthen the role of institutions of higher education on the international level.
On higher education, according to the 2024 Bologna Process implementation report, Montenegro still needs to work on the full implementation of the key commitments, especially with regards to system level automatic recognition for academic purposes as well as quality assurance. The implementation of the Bologna tools and commitments are key to strengthen higher education in Europe and to foster transnational higher education cooperation. EU policies in higher education build upon, and work in synergy with the Bologna process. Its full implementation is therefore central to achieve the European Education Area in higher education. One Montenegrin university participates in European Universities alliances.
As for inclusive education, enrolment of Roma and Egyptian children remained a challenge. The number of Roma children enrolled in preschool education stayed low, and the number of Roma children in primary and secondary education dropped by 7% and 16%, respectively. On the other hand, the number of children with disabilities enrolled in regular education continued to rise in comparison to 2023, by 27%, 14%, and 1%, in preschool, primary, and secondary schools, respectively. To ensure better support to children from vulnerable groups, Montenegro updated relevant regulations and increased the number of school support staff and assistants in social inclusion of Roma and Egyptian children. Currently, children from other countries make 7% of the total number of students enrolled in preschool, primary, and secondary education in Montenegro. This number reaches almost 30% in primary schools in some municipalities In terms of gender balance, participation in education is relatively even between boys and girls up to and throughout secondary school level. However, at higher education level in 2024, 37% of graduates were boys and 63% were girls.
The digitalization of education is progressing, in alignment with the EU Digital Education Action Plan 2021-2027. More than 50% of teachers and 20% of students are active among the 35 600 registered users of the national Digital School Platform. Over 100 schools established EdTech hubs. There is still no specific strategy focusing on green skills development. However, the issues of climate change, green economy, environmental protection, sustainable cities and settlements, biodiversity, and health education are included in school subjects. [ Montenegro benefits from the international dimension of the 2021–2027 Erasmus+ Programme. As part of the enhanced partnership with the region, Montenegro can apply for the European Universities Initiative calls and one Montenegrin university was selected as partner in a funded alliance. In November 2024, Montenegro appointed members for the European Education Area working groups 2021-2025 and is now participating in all groups. Youth centres and clubs established under the Law on youth should have a multifunctional space and develop activities from the Youth Strategy (2023-2027).
However, only 11 centres are active and work on Youth Plans, despite not having stable funding. A working group was established to work on amendments to the Youth Law to introduce concrete measures for sustainable funding for youth centres. The Ministry of Sports and Youth needs to reinforce the existing youth centres and set up new ones in other more municipalities as they are fundamental for delivering activities under the Youth Strategy and should play a role in the outreach regarding the youth guarantee. The National Youth Council established as an advisory body with representatives of Ministry of Sports and Youth, Ministry of Education, Science and Innovation and Ministry of Labour and Social welfare met for the first time on 13 September 2024.
On 2 December 2024, the Youth Parliament convened in Montenegro and discussed key issues affecting young people, including the Law on youth, the Law on non-governmental organisations, and mechanisms to enhance youth representation in national and local parliaments, as well as their involvement in policymaking. Montenegro needs to ensure a proper follow-up to this important initiative to promote inclusion of youth in policy dialogue In the field of sports, in September 2024, Parliament approved amendments to the Corporate Income Tax Law which became effective on 1 January 2025. These amendments recognised the role of sports for public health, national identity and youth engagement and introduced tax incentives for companies engaged in the development of sports. The Strategy for development of Sport 2024-28 is under implementation.
Montenegro continued to participate in the European Week of Sport. Regarding culture, in December 2024, Montenegro hosted the meeting of the South East Europe Ministers of Culture in Herceg Novi, culminating in the adoption of the ‘Herceg Novi Declaration on Culture and Arts for Sustainable Development. In 2025, Montenegro hosted also the 2025 Western Balkans Ministerial Forum on the Creative Economy, held on 28 May in Kotor as part of the Berlin Process (co-organised by the British Council and the Ministry of Culture of Montenegro). Montenegro took part fully in the Creative Europe Programme. Montenegro has ratified the 2005 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions. The city of Nikšić was designated 2030 European Capital of Culture.
Chapter 20 – Enterprise and Industrial Policy
Montenegro achieved a good level of preparation in this area. Good progress was made, particularly on the implementation of enterprise and industrial policies and on alignment with the EU Late Payments Directive. The recommendations from last year were therefore addressed. In December 2024, the chapter has been provisionally closed. The Commission’s recommendations from last year were only partially implemented and remain largely valid. In the coming year, Montenegro should in particular:
→ continue implementing the industrial policy for 2024-2028 in cooperation with allstakeholders;
→ work to remove various business barriers identified by the Competitiveness Council;
→ implement monitoring and evaluation provisions of the Programme for suppressingthe informal economy
EU industrial policy strengthens competitiveness, facilitates structural change and encourages a business-friendly environment that stimulates small and medium-sized enterprises (SMEs).
In the area of enterprise and industrial policy principles, the implementation of the 2024- 2028 industrial policy, aligned with the current EU industrial policy, is ongoing. The Action Plan for 2025-2026 was adopted in June 2025. Montenegro implements the Programme for the suppression of the informal economy 2024-2026, but without applying the specified monitoring provisions, notably on the publicly available annual report. In the area of enterprise policy and instruments, in March 2025, the Competitiveness Council adopted an updated version of the action plan on barriers for doing business identifying 11 key barriers and 37 actions, further developed and classified into 4 areas: suppressing the grey economy; improving the business environment; improving the legislative framework and improving the efficiency of public administration. The SME definition does not correspond to the EU Recommendation. Regarding sectoral policies, in February 2025, the Ministry of Finance updated the publicly available register of state-owned enterprises (SOEs) and included basic information on municipal enterprises. In October 2024, Parliament adopted the Law on deadlines for settlement of financial obligations aligned.
For more information on other chapters see the Report and Factsheet.