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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 Country factsheet.
Chapter 25 – Science and research
Montenegro has a good level of preparation in this sector. Good progress was made, notably on continuing the implementation of the Smart Specialisation Strategy and strengthening academia-business cooperation and adoption of the strategy for scientific research.
The Commission’s recommendations from last year were partially implemented and remain largely valid. In the coming year, Montenegro should:
→ adopt a new smart specialisation strategy and continue to implement it;
→ further strengthen the national innovation ecosystem;
→ adopt the new research and development strategy and adopt the law on scientific research activities.
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 of the smart specialisation strategy has delivered on expected objectives. In March 2024, Montenegro adopted a roadmap for the new smart specialisation strategy.
Several projects, partially funded by the EU, helped strengthening the academia-business cooperation and raising the interest of young people as well as representatives of vulnerable groups to be involved, especially in new social entrepreneurship projects.
The government adopted the Programme for Innovation 2023-2027, the Programme for encouraging innovation in the function of energy efficiency in industry, and the Action Plan for the implementation of the operational programme for the Smart Specialisation Strategy for the period 2023/2024.
In January 2024 the government adopted the decision on forming the Council of Science and Research Activities which held several sessions. In July 2024, the government adopted the Strategy of Scientific Research Activity of Montenegro 2024-2028 along with the Action Plan for the period 2024-2025. Concerning the funding allocated to research and development for the year 2024, approximately EUR 15 million has been allocated which represents an increase of 19% compared to the previous year.
The Innovation Centre continues to provide grants and support to innovative start-ups and companies on a regular basis, while Tehnopolis keeps increasing its own technical capacities and opening new programmes for interested citizens and businesses. The Science and Technology Park of Montenegro opened on 11 June 2024 to further promote and support the scientific community and innovations in the country.
22 national scientific research projects are being implemented based on the co-financing call of the Ministry of Education, Science and Innovation in 2023, with a total funding of EUR 2.3 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 2024 European Innovation Scoreboard Montenegro is an Emerging Innovator with performance at 47.5% of the EU average. Its performance is slightly below the average of the Emerging Innovators. The performance gap with the EU has increased.
Montenegro’s performance in the Horizon Europe programme dropped in 2023 to only four projects receiving total funding of EUR 0.9 million.
Chapter 26 – Education and culture
Montenegro has a good level of preparation in this area. Some progress was made, notably on advancing preparations for the sectoral reform strategy and implementing the strategy on early and preschool education. The recommendation related to evaluation mechanisms for practical learning remains to be addressed. In the coming year, Montenegro should in particular:
→ adopt a high-quality, comprehensive and costed education sector strategy with clear and realistic targets based on evidence; and a solid financial framework for its sustained implementation;
→ put in place mechanisms to evaluate practical learning at VET and higher education levels and to ensure increased work-based learning with employers.
→ ensure full implementation, funding and monitoring of 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.
Education and training
A working group is operational for the development of a 10-year comprehensive and costed education sector strategy (2025-2035). Montenegro has also included various measures relating to education sector reform in its Growth Plan Reform Agenda.
Around 9% of the state budget for 2024 is dedicated to education, science, culture and sports. The 2024 public budget for education was increased by approximately 20% for non-salary items, including an almost eight times higher allocation for teachers professional development compared to 2023.
The enrolment in preschool education (3-6 years old) went up to 78% (EU average in 2022 was 92.5%). Montenegro is working on the construction of new buildings, and reconstruction of existing buildings in order to increase the spatial capacity. The number of Roma children in preschool education increased by 11% and the coverage of the children with disabilities increased by less than 1%.
Regarding international assessments of secondary education, the PISA 2022 results published end 2023 show declining results for Montenegrin students in all areas (mathematics, reading and science). The results show a high proportion of students of 15-year-olds failing to demonstrate basic proficiency (level 2) in reading (53%), in maths (60%) and in science (55%). The relative underperformance of Montenegrin students in reading is confirmed also by the findings of the latest Progress in International Reading Literacy Study (PIRLS 2021), which show that Montenegro’s performance in reading is below the international median. Montenegro is taking part in the ongoing Trends in International Mathematics and Science Study (TIMSS 2023) and Teaching and Learning International Survey (TALIS 2024).
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 should be put on work-based learning at both VET and higher education levels. On 1 August 2024 the government adopted the Action plan related to the strategy on national vocational education and training for 2020-2024.
In April 2024, Parliament adopted the Law on amendments to the Law on higher education, which will enable students to complete their studies under the same conditions that were valid at the time of their enrolment in the first year of the studies. In July 2024 the government adopted a new strategy for the development of higher education in Montenegro 2024-2027 with the action plan for 2024-2025. Montenegro is a member of the European Higher Education Area (Bologna process).
As for inclusive education, the number of Roma children in primary and secondary education dropped by 4% and 9% respectively. For children with disabilities the number continued to rise in primary and secondary schools, by 6% and 9%, respectively. The low take-up is still evident in the north and overall more efforts are needed to provide accessible and quality education for vulnerable groups. The support of mediators to Roma and Egyptian children continued.
In terms of gender balance, participation in education is relatively even between boys and girls up to and throughout secondary school level. Instead, at higher education level in 2023 38.2% of graduates were boys and 61.8% were girls.
Montenegro remains committed to progress in the area of digital education, emphasising the development of digital competencies, based on quality standards for digital content creation and aligning with the EU Digital Education Action Plan 2021-2027.
There is 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 under all school subjects.
Some civil society organisations reported on politicisation of education, especially in relation to the employment of teachers and professors, and the selection of directors and heads of educational institutions. Montenegro should, therefore, take measures to secure an effective and merit-based system of appointing and electing school staff and management.
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 has been selected as a partner in a funded alliance. Montenegro is not taking part to the European Education Area working groups 2021-2025.
Youth
The Youth Strategy 2023-2027, adopted in 2023, is under implementation. The Law on youth is under revision to address some key issues related to youth policy implementation. Support should be provided for all youth centres and clubs to operate with and for adolescents and young people, with adequate space and human resources, alongside budget, and with more efforts to collaborate with schools, school parliaments, municipalities and the private sector. The National Youth Council is not in place and inter-ministerial and cross-sectoral cooperation remains a challenge.
Sport
The draft Strategy for the Development of Sport for the period 2024-2028, along with the Action Plan 2024-2025 was publicly consulted and is awaiting adoption by the government.
Culture
The National Cultural Development Programme 2023-2027 is being implemented and the procedures for the amendment of the new Laws on culture and in the field of cultural heritage are under revision. The revision is linked to amendments to the Law on the protection of cultural properties, the Law on library field and the Law on museum field that need alignement with international standards. Despite a temporary suspension from the MEDIA strand between January and July 2024, Montenegro continues to participate fully in the Creative Europe Programme. Efforts could be intensified to implement protection measures for the preservation of Kotor’s UNESCO World Heritage status.
Chapter 20 – Enterprise and industrial policy
Montenegro achieved a good level of preparation in this area. Good progress was made, notably by implementing enterprise and industrial policy and completing preparations for alignment with the current EU policy framework. The Commission’s recommendations from last year were mostly implemented. In the coming year, Montenegro should:
→ implement the new industrial policy, in cooperation with all relevant stakeholders;
→ align with the EU Late Payments Directive;
→ continue addressing various business barriers identified by the Competitiveness Council.
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 2023-2026 strategy for the development of micro, small and medium enterprises (MSMEs) was adopted in June 2023. Following up on the Joint Conclusions of the Economic and Financial Dialogue between the EU and Montenegro from May 2023, the government adopted 2024-2026 Programme for the Suppression of the Informal Economy in December 2023. In August 2024, the government adopted the 2024-2028 industrial policy, aligned with the current EU industrial policy.In the area of enterprise and industrial policy instruments, in 2023, the government supported 380 MSMEs through financial support programmes, which amounted to a support73of EUR 2.4 million, 18% above the figure registered in 2022. The agreement for participation of Montenegro in the Single Market Programme (SMP) 2021-2027 came into force in September 2023.In the area of sectoral policies, the report on the implementation of Montenegro’s 2019-2023 Industrial Policy was published in April 2024. Overall, from the 61 planned activities, 41 were fully implemented, 16 partially implemented and 4 were not implemented, while the financial implementation reached 86% of the target or EUR 1.28 billion in the period 2019-2023.In March 2024, the Competitiveness Council adopted an action plan on barriers for doing business. The plan identifies 11 key barriers and 37 actions, classified into 4 areas: suppressing the grey economy; improving the business environment; improving the legislative framework and improving the efficiency of public administration. A first version of the register of state-owned enterprises (SOEs) was set up by the Ministry of Finance in February 2024. The register is intended to collect data and help in monitoring and reporting on fiscal risks of SOEs. As data will be publicly available, it should also improve transparency of information in the public domain. The Law on Deadlines for Settlement of Financial Obligations (aligned with the Directive on combating late payment in commercial transactions) is expected to be adopted in Q4 2024.
For more information on other chapters see the Report and Country factsheet.