We are more willing than ever to welcome Montenegro to our club

The European Union and its member states are more willing than ever to welcome Montenegro to our club as soon as the country has completed its “homework”, i.e. undertaken the necessary reforms to live up to what we call the EU acquis. This is not rocket science – this being a crucial message of the German ambassador to Montenegro, Peter Felten. In an interview for Diplomacy & Commerce, ambassador explains that it requires strong political will to strategically address the issues still open, and hard and resolute qualified work on the technical questions to be solved. If this happens, as he says, EU accession can be a matter of just a couple of years.

Saratov, New York, Lisbon, Juba, Islamabad, Baghdad then Podgorica. When first read, this line may resemble a geographic trivia. Yet it is a simple dot distribution map of your diplomatic career. With a full bag of knowledge and professional experience you have arrived at Montenegro. Did you have a chance to get to know our country? Could you think of three lesser-known spots you would recommend to your friends as worth visiting?

Yes, I have been lucky to work and live in numerous fascinating places around the world during my 30 years so far in the German diplomatic service. But Montenegro is, without any doubt, one of the most beautiful and hospitable among them, and I consider it a real privilege to have been assigned the post of German Ambassador to your country. Since taking office I have seized every opportunity to explore the treasures of this great country and to meet its people.

As to your question – of course, the first that comes to one’s mind is Montenegro’s superb coastline and its spectacular mountain region in the north. But there is much more to be seen. Let me choose the following places:

First, Žabljak Crnojevica, founded in the 10th century, and the throne city of Ivan Crnojevič, the founder of Cetinje. It is just 30 minutes from central Podgorica, but still not easy to find: a hill with the ruins of the medieval castle on top and a splendid view of the Lake Skadar wetlands and the various mountain ranges; with the houses of the village nestled against the castle hill. And all this surrounded by lushly green vegetation, rivers, canals, and lakes. Don’t expect sophisticated touristic infrastructure. Just enjoy the beauty of the place.

Another gem I found is the village of Medun, again just a 30 minute drive from the capital, with its museum dedicated to Marko Miljanov, where you will learn a lot about the remarkable history of this Montenegrin tribal leader and writer, who participated in the wars of the mid 19th century to liberate Montenegro from Ottoman reign, and who, only after that, already in his 50s, learned to read and write and became an important author and chronist of his time, with his famous work “The Examples of Humanity and Bravery”, also available in English. And if you climb up to the castle hill right behind the museum you will find his grave on a plateau, with a beautiful view all the way to the “sacred mountain” of the Montenegrins, the Lovćen, with its mausoleum for Petar II Petrovič Njegoš.

Finally, let me recommend you to visit Ulcinj Solana. Some years after salt production there was discontinued in 2013, Solana become a nature park, and has since been internationally recognized as an environmentally valuable wetland under the Ramsar Convention. These days, the Government of Montenegro and the city of Ulcinj are working, with the support of the German Government, on a concept for the future sustainable management of Solana. Take a walk, or a bicycle ride, in this vast area and enjoy the beauty of the landscape and rich biodiversity and, in particular, the around 250 species of birds that breed, rest or winter there, including flamingos and pelicans. My favorite time for a walk through Solana are the early morning or evening hours when the birds are particularly active, especially in spring and autumn during bird migration. I really hope that Montenegro will manage to preserve this unique ecosystem.

The analyses show a growing interest of German nationals in Montenegro. Not only in terms of a leisure travel destination but also as a place to settle down. According to the statistics published by the Central Bank of Montenegro, in 2022 German citizens were the first largest source of the real estate investments, amounting to even 57 mil EUR. Moreover, in the last five years Germany invested over 230 mil EUR, while the commodity exchange has also shown signs of growth. What is your view of the dynamics of economic relations between the two countries in the first half of 2023? At the Business Forum Montenegro – Germany held in Podgorica earlier this year, you spoke of Montenegro as an attractive destination for German investors, with possibilities for economic cooperation not being exhausted to the full extent. On the same occasion, the largest potential was recognized in sustainable agriculture, green energy, sustainable and health tourism and ICT sector. Are there any specific plans at hand at this moment?

Government, but also by the German Business Club, which was founded just two years ago by small, medium-size and big companies from Montenegro and Germany that are engaged in economic exchange between our countries. The Business Club will give additional impetus to the expansion of our business relations.

In the light of economic relations, would you say Montenegro today is a more business friendly environment than it used to be some five years ago?

There is a collective opinion that Montenegrin administration still suffers from often redundant and time-consuming procedures, thus discouraging both local and foreign investors. Some of the enthusiastically awaited German investment projects are for example Lidl or Brajici Wind Farm. Would you say now is the right time to team up and develop a case study aimed to identifying the bureaucratic hurdles that need to be cleared? You one noticed that such hurdles hinder effi-

The figures you are quoting sound quite impressive, but, believe me, there is still a lot of untapped potential. Last year, only 6% of tourists in Montenegro were from Germany, while in other countries around the Mediterranean we reach a share of 20 to 30%. We see encouraging signs of increase though, in particular during the off-season, including longer-term stays, e.g. to escape the dark and cold winter months in central Europe. But there is potential for even more long-term residents from Germany, e.g. those with professions that do not confine them to a specific physical workplace, like in the IT sector.

Overall, I expect a significant increase in private business activities and exchange between our countries, provided key reform needs are courageously addressed. This will be supported not only by my cient cooperation which otherwise may lead to mutual benefits. The laws and regulations thereof apply equally regardless of the sphere of business.

You are rightly mentioning two of the biggest German private investment projects that are currently in the pipeline. The sectors of green energy and retail are in general among those where German private business has a lot to offer to support Montenegro on its way into a sustainable and climate-friendly future, and to stimulate competition for the benefit of consumers.

Private investors must earn money, and they undertake very rational cost-benefit calculations before investing their money. These calculations also take into account the stability and reliability of the business environment. Montenegro is not a big market, due to the size of the country and its popula- tion. All the more important is it that the business environment is conducive to doing business: supportive politics, a framework of legislation, and administrative regulations you can rely on, competent and non- discriminatory implementation of rules and regulations. Most of these issues are linked to the overall ambition to strengthen the rule of law, which is, at the same time, at the heart of Montenegro’s reform priorities in order to advance on its path into the EU.

Yes, I think there is room for improvement. The lack of continuity and stability in political life in the past years has made it more difficult for companies to make their calculations. And companies are desperately waiting for legislative projects like the reform of spatial planning to materialize.

We hope that the early elections in June will lead to a stable government, which can count on a stable majority in Parliament, so that necessary reforms can move forward in a focused and strategic manner. And let us not forget – EU accession will give the greatest boost to the development of our business re- lations. So, resolutely going the last mile and fulfilling the EU accession “benchmarks” is also a key step to improve the business climate.

In recent years, Germany has recorded impressive achievements in the renewable energy generation, with the current renewable energy share of even 50% and the 80% target set for 2030. Back to Montenegro and its efforts to promote the brand of an ecologic state, our country has been a regional record-holder when it comes to energy generation from renewable sources, yet with evidently untapped potential. This above all refers to solar and wind energy. Based on the German experience, what signpost should we follow?

There can be no doubt. We need to stop greenhouse gas emissions as soon as possible if we want to save our planet and preserve humane living conditions on earth. The German government has set ambitious targets for our country: we have committed to become climate-neutral by 2045. The despicable Russian war of aggression against Ukraine has caused a short-term set-back on this path. On the other hand, it has given additional impetus to our ambitions to end our dependency on carbon fuels as soon as possible. When it comes to Montenegro, I believe that the Green Agenda for the Western Balkans adopted at the Berlin Process Summit in Sofia in 2020 is a key signpost. We are pleased that the Regional Climate Partnership that Germany has offered to the Western Balkans countries at the last Berlin Process Summit in Berlin in November last year is now taking shape and will support the efforts of the countries in the region.

Montenegro has ideal conditions to produce energy in a climate-neutral manner. In addition to the existing huge hydroelectric power plants – by the way, I am pleased that a German company is actively involved in maximizing the technological efficiency of these plants –, there is huge potential for wind and solar energy. Montenegro should really create the conditions to make full use of its wind and solar potential – by reforming spatial planning legislation, strengthening its grid, developing its energy market. In doing so, Montenegro could easily make carbon dioxide-intensive electricity production from coal superfluous and could become a major exporter of clean energy to the European energy market. By the way, energy export has the potential to reduce Montenegro’s foreign trade deficit considerably.

– of course from an economic, but equally from a human perspective. Labour migration has been, for a long time, an important aspect of the relations between our countries and peoples. It is not – and should not be – a one-way street.

Given the strength of our economy and the demographic devel-

Germany extended the privileged access to the labor market to period from 1 January 2021 to 2023 for citizens of Montenegro, Albania, Bosnia and Herzegovina, Kosovo, Nort Macedonia and Serbia. What does this privileged access actually mean and does Berlin have the up-to-date overview of the number of visas issued to the nationals of the foregoing countries? Can we say there is a specific skill or qualification in-demand at this moment?

The Montenegrin diaspora in Germany is an invaluable bridge between our countries opment in Germany, we need to rely on a labour force coming to our country from abroad, even without highly specified qualifications, and we have established privileged conditions in this regard for the Western Balkans countries. For Montenegro, for example, we have been granting 1,000 visa per year on this basis. This number will probably be doubled from next year. In the future, we will also widen the existing possibilities for higher-qualified professionals across the board to work in Germany. Draft legislation is under way.

All this is, of course, only a prelude for full labour mobility that will come with Montenegro’s accession to the EU.

German Embassy has continuously offered scholarships for students from Montenegro. What is your personal impression of the human potential of our country?

Personally, I am impressed with the level of education of many young Montenegrins that I have met on various occasions. In relation to the small size of the population, Montenegrin applicants are very successful in securing German scholarships. This testifies not only to their qualifications, but also to their determination, and dedication to international exchange. Applying for German scholarships, such as IPS, a programme allowing scholars to work in the office of a German Member of Parliament, or DAAD, the German Academic Exchange Service, is a highly competitive and challenging process. No wonder that many of the alumni later hold senior positions in

Government and public service. Among the alumni of these and other German scholarship programmes are the current Head of State, a former Prime- Minister, various Ministers, State Secretaries, a former Mayor of the capital city, and other high-ranking public servants, as well as opinion-makers in civil society, the media or political parties. I think the alumni are a valuable resource for our bilateral relations, since it is always people, individuals, that shape the relations between countries and societies through their concrete actions – in all fields of cooperation: political, economic, cultural, educational or, simply, people-to-people.

At the same time, Montenegro is on its way to elevate its entire education system, from basic schools to universities, to the European level. Germany supports Montenegro in this endeavor, for example through a Partner School Programme (“PASCH”) with intensified German language training, and through a lecturer from DAAD teaching at the State University, to name just two prominent examples.

Given that you are thoroughly familiar with the people, natural potential, Montenegrin administrative framework and the fact that Montenegro has reached the unwavering consensus on the accession to the European Union, what would be a realistic prospect?

The EU and its member states are more willing than ever to welcome Montenegro to our club as soon as the country has completed its “homework”, i.e. undertaken the necessary reforms to live up to what we call the EU “acquis”. This is not rocket-science. It requires strong political will to strategically address the issues still open, and hard and resolute qualified work on the technical questions to be solved. If this happens, EU accession can be a matter of just a couple of years. And I sincerely hope that this is really going to happen. Because, every day, I hear from Montenegrin citizens that they see the future of their country, and their own future, in the European Union.