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Funds of the European Union

Through the policy of solidarity, every year the European Union allocates significant funds from the communitarian budget to the less developed regions and member countries of the EU. Furthermore, the EU development funds are intended also for those countries that are not yet EU members, i.e. candidate and potential candidate countries.
In September 2004, the European Commission proposed the establishment of a new Instrument for Pre-Accession Assistance (IPA 2007-2013), which is designed to support the candidate countries for EU membership, as well as potential candidates.
IPA is a unique instrument for assistance designed for the period 2007-2013 that combines the pre-accession instruments: PHARE, SAPARD, ISPA, CARDS.
Montenegro has been receiving financial assistance from the EU since 1998. Overall, between 1998 and 2010 the EU committed over €408.5 million to Montenegro. From 1998 to 2006, this included EU CARDS assistance worth €277.2 million.
In 2007, CARDS assistance was replaced by the Instrument for Pre-Accession Assistance (IPA) which extends to 2013.

The IPA consists of the following five components:
• Component I (Transition Assistance and Institution Building – also known as National Programme) which is available for candidate and potential candidate countries;
• Component II (Cross-Border Cooperation) which is available for candidate and potential candidate countries;
• Component III (Regional Development) which is available only for candidate countries;
• Component IV (Human Resources Development) which is available only for candidate countries;
• Component V (Rural Development) which is available only for candidate countries.
Montenegro currently has access to IPA Component I and IPA Component II. As a candidate country, components III to V are available for Montenegro but they can only be operational when the country receives accreditation for the Decentralized Implementation System (DIS).

Component I


The IPA National Programme for Montenegro (Transition Assistance and Institution Building) focuses on key political criteria such as judicial reform, public administration reform and institutional building, fight against corruption and organised crime. Financial support is also being provided to civil society. As regards economic and other membership criteria the IPA programme concentrates on supporting reforms and strengthening the administrative capacity in areas such as the internal market, environment, transport, statistics, education, employment and social inclusion.
Montenegro has received €131.3 million of IPA assistance from 2007 to 2010.(please see table bellow).

Component II


Montenegro participates in four IPA Cross-Border Cooperation Programmes(Component II) with neighbouring Western Balkan countries (Albania, Bosnia andHerzegovina, Croatia and Republic of Serbia).
Montenegro also participates in the IPA Adriatic cross–border programme with Member States and the trans-national cooperation programmes: South-East Europe and Mediterranean under the European Regional Development Fund.
Assistance is also provided to Montenegro through the European Instrument for Democracy and Human Rights (2008: 0,3 M€; 2009: 0,51 M€; 2010: 0,4 M €).

Decentralized Implementation System (DIS).


All countries that aim to become a member state of the European Union should, at a certain point, prepare its administration for the management of the pre-accession funds in a decentralized manner. Therefore, it is of crucial importance to get prepared for taking ownership and responsibility of the management of the projects financed by the European Union.
The Decentralized Implementation System (DIS) means that the responsibility for the implementation of the IPA programme is transferred from the European Commission to the Government of Montenegro. The process itself contributes to institutional strengthening of the state and obtaining accreditation by the European Commission is a clear signal of the trust from the EU into the system. When Montenegro becomes a EU member state, this will allow a successful use of the Structural and Cohesion Fund. The precondition for the transition to the so-called Decentralized Implementation System is the building of capacities and establishment of structures as defined in the provisions regulating IPA as well as in the Framework Agreement. With the establishment of DIS, the beneficiary countries of the IPA funds become owners of the entire process of the managing aid.
The projects under the IPA Components III, IV and V, which correspond to the future structural funds in the area of employment, social and regional policies and rural development, will be piloted by Montenegro.

So far, within the IPA Programme, the following funds were allocated:

YEAR

2007

2008

2009

2010

2011

2012

2013

TOTAL

Transition Assistance and Institution Building

27,490, 504

28,112,552

28,632,179

29,238,823

29,843,599

16,346,471

5,296,035

164,960,163

Cross-border Co-operation

3,909,496

4,487,448

4,667,821

4,282,690

4,310,344

4,338,551

4,418,687

30,415,037

Regional Development

0

0

0

0

0

8,000,000

15,200,000

23,200,000

Human Resources Development

0

0

0

0

0

2,800,000

2,900,000

5,700,000

Rural Development

0

0

0

0

 

3,300,000

7,600,000

10,900,000

Total

31,400,000

32,600,000

33,300,000

33,521,513

34,153,943

34,785,022

35,414,722

235,175,200

 

Source: website of the EU Delegation to Montenegro,http://www.delmne.ec.europa.eu

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