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Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...

In the Spotlight Capacities of local self - governments to absorb EU funds The EU accession process will increase the importance of local governments and their role in the regional development of Montenegro. Programs and projects are being implemented to encourage development at local and regional levels, and to obtain available financing from a variety of bodies in order to achieve EU regional policy status. If local governments are able to attract funds from the pre-program they will also clearly be successful in managing much larger resources available from structural funds which are one part of EU regional policy.

The Center for Entrepreneurship and Economic Development (CEED) has conducted an analysis to assess the capacity of local governments in attracting funds from the EU. The research contains several thematic sections: human resources, participation in the European Union programs, cooperation with other organizations and the assessment of needs for further development. According to the results of the research, it can be concluded that local governments play an important role in the use of available funds. Apart from NGOs, local authorities fall into the category of successful users of available funds. Also, it should be noted that local governments have worked hard over the last two years to strengthen their own capacities in order to attract EU funding.

Human resources

Cooperation with other organizations

Over the last two years there has been an increase of 200% Local governments have developed cooperation initiatives with a regarding the number of employees involved in the preparation and variety of state authorities, NGOs, and local governments from implementation of projects. This indicates that local governments Montenegro and other countries during the preparation and have recognized the importance of investing in human resources implementation of projects. However, there is still room to expand in order to better utilize their available resources. In the future it the level of cooperation between local governments and other will be necessary for all local governments to form units for the organizations that are interested in applying for EU initiatives. preparation and implementation of EU projects. In turn, these units The results showed that it is necessary to improve the level of will be represented by special bodies within local governments. cooperation that presently exists between local governments and However, the further training of employees during the preparation business associations, as this is currently a low level. By doing so, (feasibility studies, cost benefit analyses, assesments of the impact and to better use EU funds, it is necessary for local governments on environmental processes) and the implementation of projects to intensify existing levels of cooperation among themselves in (knowledge and use of PRAG and the preparation of tender order to create regional EU projects. documents during the implementation of the project) is also needed.

Participation in EU programs

The need for further improvement

During the last two years, local authorities have submitted 42 The results clearly show the need to further strengthen the capacity project applications, of which 21 projects were approved. The total of local governments. The five most important priorities are: value obtained from these successful project applications totaled to improve the training of staff who work on applying for and about â‚Ź 12 million. As it is known that a much larger number of implementing projects, to appoint more employees to work on resources will be available in the future, it is necessary for local applying for and implementing projects, to make available more governments to increase their number of EU project programs. funding for applying for and implementing projects, to improve Evidently, more financial resources will be required to increase cooperation with European partners, to create a better work the number of projects applications as well as implementing evironment including improved technology. successful projects. To resolve the problem of co-financing of projects, it will be necessary to establish a mechanism to ensure Among the specific skills that are required during the application co-financing between local governments that receive EU project process for projects and and also during the implementation of grants. projects, the local government has earmarked the following priority needs for further training: feasibility studies, cost benefit analyses, knowledge assessment procedures, assessment of the impact on the environment, knowledge and use of PRAG and the planning of a project budget.

Step towards EU: Montenegro has received a conditional date for negotiation to commence A year after receiving candidate status in early December, Montenegro received a date for starting negotiations on accession to the EU under certain conditions. The European Council decided that Montenegro could be given a date to start negotiations in June 2012, when the Council will review the progress Montenegro has made in implementing reforms. There will be a particular focus on the following areas: the rule of law, respect for fundamental rights and combating corruption and organized crime.

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