Council Decision of 30 January 2006 on the principles, priorities and conditions contained in the European Partnership with Serbia and Montenegro including Kosovo as defined by the United Nations Security Council Resolution 1244 of 10 June 1999 and repealing Decision 2004/520/EC (2006/56/EC) (repealed)

SERBIA AND MONTENEGRO(1)

SHORT-TERM PRIORITIES

Key priorities

• Fully respect the Constitutional Charter and ensure the effective functioning of the State Union (in particular with regard to the competences of the Court of Serbia and Montenegro, the functioning of the State Union Parliament and the adoption of legislation on the sustainable financing of the State Union); take a constructive approach in implementing the distribution of powers between the State Union and the Republics.

• Make further sustained efforts to implement the reform of the public administration, including the civil service pay system, to ensure transparent recruitment, professionalism and accountability; in particular strengthen the European integration structures at all levels (including with regard to line ministries and the parliaments) and improve cooperation among them.

• Pursue with determination the reform of the judiciary to guarantee its independence, professionalism and efficiency, in particular review the system of recruitment and career to be based on technical and professional criteria, avoiding political influence, and secure permanent tenure of judicial posts.

• Ensure effective democratic control over the military by strengthening parliamentary control and establishing a transparent financial management.

• Ensure full cooperation with International Criminal Tribunal for the former Yugoslavia (ICTY).

• Fully respect the UNSCR 1244 and intensify dialogue with Pristina. Encourage the participation of Kosovo Serbs in the provisional institutions of self-government. Show constructive approach with regard to Kosovo.

Political requirements

Democracy and the rule of law

Constitutional issues

• Revise the Constitutions of the Republics in line with European standards.

Elections

• In Serbia: Complete the reform of the electoral law reform (including electoral register), in line with the recommendations of the Office for Democratic Institutions and Human Rights; fully implement legislation on financing of political parties.

• In Montenegro: De-politicise election administration in line with the recommendations of Office for Democratic Institutions and Human Rights and set up a transparent framework for campaign financing.

Public administration

• In Serbia: Implement the legislation to set up an ombudsman’s office.

• In Montenegro: Strengthen the administrative capacity of the ombudsman’s office; ensure proper follow-up to the ombudsman recommendations.

Judicial system

• In both Republics: Adopt and implement legislation on mandatory initial and continuous training for judges, prosecutors and court support staff, and strengthen the training centres; start rationalising the court system and modernise proceedings, in particular in the field of commercial law. Strengthen the autonomy of the prosecution system, particularly the offices of the prosecutors for organised crime.

• In Serbia: Strengthen the office of the prosecutor for war crimes; establish administrative and appellate courts.

Anti-corruption policy

• In both Republics: Fully implement the laws on conflict of interests.

• In Serbia: Adopt and implement a comprehensive anti-corruption strategy and subsequently detailed Action Plans, notably through establishing a competent body for implementation.

• In Montenegro: Implement the anti-corruption strategy, notably through establishing a competent body for implementation.

Human rights and the protection of minorities

• Fulfil all remaining obligations arising out of membership of the Council of Europe. Ensure uniform effective implementation of these obligations, throughout the State Union, notably with regard to the European Convention on Human Rights and Fundamental Freedoms and the European Convention for the Prevention of Torture.

• In both Republics: Take comprehensive and transparent action in all alleged cases of ill-treatment. Strengthen the internal control services dealing with ill-treatment by law enforcement agents.

• In both Republics: Improve prison conditions, in particular as regards vulnerable groups such as juvenile offenders; ensure appropriate monitoring of prison conditions for long-term inmates and for organised crime inmates, ensure further training of penitentiary staff and improvement of special needs facilities.

• In Serbia: Implement legislation on the execution of penal sentences.

• Adopt comprehensive anti-discrimination legislation.

• In Serbia: Enforce media legislation. Ensure effective independence of the Broadcasting Council, as well as fair and transparent allocation of broadcasting frequencies for media operators. Ensure the full and timely transformation of the state-owned broadcasting media into public service broadcasters; complete the transformation of Radio Television of Serbia into a public service broadcaster in line with European standards. Fully implement the law on free access to information.

• In Montenegro: Implement the law to ensure access to public information. Continue the transformation of Radio Television of Montenegro into a public service broadcaster.

• In Serbia: Encourage the development of civil society organisations financially and otherwise, notably by adopting the law on associations, and legislation on the legal status of foreign NGOs.

• In Montenegro: Adopt strategy on cooperation between NGOs and governmental bodies.

• In Serbia: Adopt adequate legislation on the restitution of property and ensure its full implementation, notably by addressing the issue of (State-owned) urban property.

• In Montenegro: Fully implement legislation on the restitution of property.

• Ensure adequate cooperation between the State Union and Republics and where appropriate the provincial and local level as regards the legislative basis for and practical protection of the rights of minorities. Implement the Strategies and Action Plans relevant to the integration of Roma people, including returnees.

• In Serbia: Strengthen the functioning of minority national councils. Promote good inter-ethnic relations, in particular by taking adequate measures in the field of education. Promote participation of minorities in the judiciary and law enforcement bodies.

• In Montenegro: Adopt the law on protection of minority rights.

Regional issues and international obligations

• Fully respect the Dayton Agreement.

• Strengthen regional cooperation and good neighbourhood relations, with a view, inter alia, to promoting reconciliation. Conclude and implement agreements with neighbouring countries, notably on free trade, cross-border cooperation, the fight against organised crime, trafficking and smuggling, judicial cooperation, border management, environment, transport and energy. Work towards the future regional Free Trade Agreement in South-East Europe.

• Contribute to ensuring a solution of outstanding border issues with Croatia and Bosnia-Herzegovina.

• Ensure adequate cooperation between the State Union and Republics as regards the legislative basis for and practical protection of the rights of refugees and internally displaced persons. Repeal all discriminatory provisions, in particular in Montenegro in the field of the labour market, access to property rights, legal redress and access to citizenship; guarantee unhindered access to health services and personal documents. Ensure right of a real choice between sustainable return and integration. Contribute to ensuring the implementation of the Sarajevo Declaration.

Economic requirements

In Serbia:

• Sustain macroeconomic stability. Continue with the necessary fiscal adjustment and consolidation to help reduce external imbalances and contain inflationary pressures. Maintain a prudent monetary policy stance, backed by an appropriate exchange rate policy. Pursue a moderate wage policy and avoid public sector wage increases above productivity gains. Monitor rapid credit expansion and adjust prudential rules. Further develop and implement the reform of the pension system and continue the reform of the health insurance system.

• Continue to formalise the grey economy and broaden the tax base through implementation of a public expenditure management system (treasury, public internal financial control) and comprehensive tax reforms, with fewer exemptions and lower rates, in particular on labour.

• Speed up the restructuring and privatisation of large socially-owned and state-owned enterprises to strengthen financial and corporate discipline. Continue with bankruptcy procedures against heavily indebted loss making socially-owned companies to reduce quasi-fiscal losses. Accelerate the restructuring of large publicly-owned utilities. Ensure the allocation of sufficient budgetary resources for redundancy and restructuring costs.

• Complete the banking sector reform, in particular the privatisation of State-owned banks. Continue with the restructuring and privatisation of the insurance sector.

• Reform the system of regulated and administered prices. In particular, further adjust energy prices towards cost recovery levels, also gradually replacing all existing price subsidies to the poor consumers with direct transfers.

• Develop a stable and functioning land/real estate market. Prepare cadastre legislation.

• Continue to promote employment and combat unemployment, in particular through vocational training and labour market reforms, involving all relevant actors; improve public employment services and allocate sufficient staff and financial resources to policy implementation.

• Continue to make the necessary adjustments to the Serbian trade regime, to render it compatible with the autonomous trade measures, the WTO rules and the future SAA.

In Montenegro:

• Sustain macroeconomic stability. Maintain necessary fiscal adjustment and consolidation to reduce external imbalances.

• Implement the public expenditure management system.

• Ensure flexible labour market price-setting mechanisms. Implement the law on employment, improve public employment services and allocate sufficient staff and financial resources to policy implementation.

• Complete remaining price liberalisation. Further adjust energy prices towards cost recovery levels, by implementing the new system for determining electricity tariffs. Gradually replace all existing price subsidies to poor consumers with direct transfers.

• Speed up the restructuring of State-owned enterprises. Complete the privatisation of socially-owned enterprises. Adopt and implement the law on insurance supervision.

• Develop a stable and functioning land/real estate market. Adopt the law on the spatial planning and the law on construction land, and ensure their effective implementation.

• Continue to make the necessary adjustments to the Montenegrin trade regimes, to render it compatible with the autonomous trade measures, the WTO rules and the future SAA.

European standards

Internal market

• Dismantle existing obstacles and avoid new obstacles to the State Union’s common market. Ensure State Union-wide market access for domestic and foreign operators regarding goods, services, capital and persons. Ensure legislative consultation and apply the principle of mutual recognition of all decisions by the Republics on market access.

Free movement of goods

• Continue efforts to align rules and regulations on standardisation, certification, metrology, accreditation and conformity assessment with the EU acquis to create conditions favourable to trade. Start adopting European standards.

• Establish an internal consultation and notification mechanisms for new technical regulations prior to their adoption on measures having an impact on trade.

• In both Republics: Establish a legal framework and administrative capacity for active consumer protection in line with EU consumer policy.

Free movement of capital

• In both Republics: Implement a system of corresponding accounts in commercial banks to ensure the free movement of capital between the Republics.

Customs and taxation

• In both Republics: Further align customs legislation and procedures with the EU acquis. Continue to modernise the customs administrations in order to ensure a high level of administrative capacity and to fight against corruption, cross-border crime and fiscal evasion. Strengthen administrative cooperation and ensure continuous observance of obligations related to the implementation of preferential trade measures (origin).

• In both Republics: Further approximate tax legislation with the EU acquis. Improve implementation of tax laws, focussing on revenue collection and control in order to reduce tax fraud.

• In both Republics: Commit to the principles of the Code of Conduct for Business Taxation and ensure that new tax measures are in conformity with these principles.

Competition

• In both Republics: Put in place anti-trust regimes, applicable to all anti-competitive effects. Ensure administrative capacity for the efficient and independent enforcement of these rules.

• In both Republics: Strengthen State aid coordination points and create full state aid transparency, as a first step towards state aid control.

Public procurement

• Implement consistent and effective public procurement regimes in both Republics. Ensure transparent procedures, regardless of the value of the contract concerned, and non-discrimination between Serbian, Montenegrin and EU suppliers.

Intellectual property law

• Further strengthen the protection of intellectual property rights by adopting the remaining laws and by-laws. Ensure penal provisions and strengthen implementation and enforcement capacity in this field, notably in border services.

Statistics

• In both Republics: Develop reliable economic statistics. Revise and adopt the master plan on statistics with a view to enhancing the quality and broadening the scope of statistics. Coordinate its implementation between the Republics and with the State Union. Reinforce the collection and processing of agriculture statistics in line with EU standards and methodology; finalise process of harmonisation with HS nomenclature 2000/2002. In Serbia: Adopt legislation on statistics.

Sectoral policies

Industry and SME

• In both Republics: Continue implementing the European Charter for Small Enterprises.

• In Serbia: continue implementation of the new accelerated company registration system and, introduce quicker procedures for licensing. Continue the introduction of regulatory impact assessments. Improve possibilities for business advocacy and representation. Further develop local/regional business support structures (clusters, incubators, business/technology parks).

• In Montenegro: Strengthen the newly established autonomous investment promotion agency. Continue implementation of the national guarantee fund. Improve business advocacy/consultation. Step up efforts to streamline and accelerate licensing systems. Introduce ‘silent approval’ in licensing and registration. Start introduction of regulatory impact assessments. Improve access to finance and develop business support structures (clusters, incubators, business/technology parks).

Agriculture and fisheries

• In Serbia: Continue strengthening administrative capacity for policy formulation and implementation. Adopt and begin implementing food safety, veterinary and phytosanitary framework legislation; upgrade veterinary, phytosanitary and sanitary laboratories, inspectorates and controls at external borders; complete the establishment of a bovine animal identification and registration system.

• In Montenegro: Continue strengthening administrative capacity for policy formulation and implementation. Implement the law on veterinary matters (including fishery products) and strengthen the veterinary and phytosanitary laboratories; strengthen controls. Step up efforts to align legislation with the EU veterinary and phytosanitary acquis. Align the system of animal identification and registration for bovines with EU requirements.

Environment

• In Serbia: Continue approximating legislation to EU legislation and standards (air pollution, waste management and nature protection); adopt and begin implementing the national environment protection strategy. Adopt and start implementing the planned strategy for sustainable development. Strengthen administrative capacity notably of institutions and bodies in charge of planning, permitting, inspecting and monitoring, as well as project management. Develop a multiannual plan for financing investment. Implement adopted legislation, notably on environmental assessments and industrial pollution. Start construction of a facility for the treatment and safe disposal of hazardous waste.

• In Montenegro: Continue approximating legislation to EU legislation and standards, notably environmental protection framework legislation. Implement and enforce adopted legislation. Develop an overall environment protection strategy (water, waste, air). Adopt the land use plan; Adopt the sustainable development strategy and sectoral strategies (integrated coastal zone management, biodiversity, climate change). Strengthen administrative capacity.

Transport policy

• Complete the programme and continue to align the aviation legislation with the EU acquis in view of the European Common Aviation Area (ECAA).

• Implement the Memorandum of Understanding on the development of the south-east Europe core regional transport network including the transport observatory.

• In Serbia: Adopt and implement a national transport strategy (road, rail, aviation and waterways), with attention to the economic viability of the sector. Implement the law on rail. Complete the master plan for inland navigation.

• In Montenegro: Implement the road transport law (including establishment of the relevant implementation structures). Start earmarking sufficient resources for the maintenance of transport infrastructures and institutions.

Energy

• Start implementing the commitments undertaken in the framework of the Energy Community Treaty.

• In Serbia: Fully implement the Energy Law also ensuring a smooth functioning of the independent Energy Regulatory Agency; continue environmental audits on energy plants and address the worst polluters. Ensure unbundling with a view to restructuring and privatisation. Strengthen the necessary administrative structures. Make further progress towards a regional energy market (including through improved interconnectivity).

• In Montenegro: Complete and implement the energy development strategy, including the energy efficiency strategy; strengthen the administrative capacity of the Ministry of Economy in the field of energy; unbundle and restructure the electric power utility. Strengthen the Energy Regulator. Complete the restructuring and liberalisation of the internal energy market; privatise and/or allow development of public/private partnerships in the sector.

Information society and media

• In Serbia: Ensure that the electronic communications sector is liberalised, that the regulatory bodies are independent and effectively functioning and that the necessary laws and policies for the sectors are adopted and applied.

• In Montenegro: Foster competition in the market through strengthening of the Agency for Telecommunications, in particular by introducing the necessary competitive safeguards and setting terms and conditions for interconnection charges.

Financial control

• Develop a public internal financial control strategy.

Justice, freedom and security

Visa, border control, asylum and migration

• Develop a State Union-level approach on integrated border management and ensure consistent implementation at the level of the Republics in line with the relevant Memorandum of Understanding. As a follow-up to the Ohrid Regional Conference on border security and management in May 2003, implement the short-term measures that were adopted by the Government.

• In Serbia: Take concrete steps to implement best practices concerning border police; proceed without delay with the demilitarisation of border control in coordination with the State Union authorities.

• In Montenegro: Further strengthen civilian control of borders (including training and equipment compatible with EU standards).

• Develop a State Union-level approach to issues related to visas, asylum and migration in line with the Constitutional Charter, notably through the complete harmonisation of the visa regimes applied in the Republics. Put in place mechanisms to monitor the consistent implementation of these policies at the level of the Republics.

• Adopt the Asylum Laws in both Republics and proceed with the conclusion and implementation of readmission agreements. In Serbia: enhance the capacity and infrastructure of the reception centre for asylum seekers and refugees. In Montenegro: Carry out the construction of the planned reception centres for asylum seekers and refugees.

Money laundering

• In both Republics: Ensure efficient implementation of the anti-money laundering legislation and strengthen the financial intelligence units.

Drugs

• In both Republics: Increase the capacity to fight against drug trafficking and develop and start implementing a national drugs strategy in line with the EU drugs strategy.

Police

• Implement the agreed institutional frameworks for judicial and law-enforcement cooperation between the Republics, notably through full implementation of the Memoranda of Understanding signed by the respective Ministries of Justice and Interior.

• In Serbia: Implement the law on Police in order to establish professionalism and accountability.

• In Montenegro: Implement the Laws on Police and national security agency and ensure professionalism and accountability.

Fight against organised crime and terrorism

• Establish efficient institutional mechanisms for inter-agency cooperation within the Republics and formalise cooperation between them.

• In both Republics: Adopt the legislation and develop the capacity to seize assets. Strengthen criminal intelligence. Adopt legislation on the protection of personal data and take the necessary steps to prepare for the conclusion of a cooperation agreement with Europol. Strengthen the fight against the trafficking of human beings, including the provision of adequate assistance and protection to the victims.

• Increase the efficiency of international cooperation and implementation of the relevant international conventions on terrorism; improve cooperation and the exchange of information between all branches of the security services and with other States; prevent the financing and preparation of acts of terrorism.

MEDIUM-TERM PRIORITIES

Political requirements

Democracy and the rule of law

Public administration

• Further strengthen European integration units in the line ministries and cooperation mechanisms with European integration offices.

• In Serbia: Continue full implementation of civil service and public administration laws. Implement civil service human resources development measures. Strengthen capacity (policy-making and inter-ministerial coordination) of the public administration at government and local levels; establish a centralised payroll system. Strengthen the economic policy-making process. Adopt and implement decentralisation reform ensuring viability of local governments.

• In Montenegro: Ensure sustainability of the Authority for human resources management. Strengthen policy-making process. Implement decentralisation reform.

Defence reform

• Continue process of restructuring and reform of the armed forces, including, as appropriate, downsizing (taking into account the social impact) conversion and privatisation of military assets and defence industry as well as increased transparency and civilian control.

Judicial system

• In Serbia: Adapt national strategy for judicial reform and subsequent action plan, particularly in the field of appointment and trial period for judges, and autonomy of prosecutors. Create and implement an IT network for prosecutors at all levels; ensure enforcement of court decisions. Further strengthen the capacity to try war crimes domestically in full compliance with international obligations as to cooperation with ICTY.

• In Montenegro: Ensure adequate functioning of the Judicial Training Centre. Implement the IT strategy for the judiciary.

Anti-corruption policy

• Ensure full compliance with the UN Convention on the fight against corruption.

Human rights and the protection of minorities

• Implement the anti-discrimination legislation.

• Ensure the inclusion of disabled children and children from minorities in mainstream education; reform the childcare system.

• Continue to promote integration of minorities and good inter-ethnic relations.

Regional issues and international obligations

• Facilitate integration for refugees who choose not to return. In Serbia: Adopt new legislation on refugees; continue to implement the national strategy. In Montenegro: Implement the National strategy on refugees as part of a comprehensive strategy on social inclusion and social integration.

Economic requirements

In Serbia:

• Continue sustainable macroeconomic policies; continue fiscal adjustment and consolidation to further reduce external imbalances and contain inflationary pressures. Prioritise public spending in annual and medium-term budgeting; in particular reduce quasi-fiscal losses of the part of State-owned or socially-owned companies. Continue implementing a moderate wage policy. Further pursue the reform of the pension and health insurance systems.

• Improve the budget process and financial management; strengthen capacity building for budget preparation and execution to enable prioritisation. Improve financial management at central and local government level.

• Establish effective procedures for the detection, treatment and follow-up of cases of suspected fraud and other irregularities affecting national and international funds.

• Continue the process of privatising large socially-owned and State-owned enterprises and, where appropriate, publicly-owned utilities to help increase the share of the private sector in the economy.

• Strengthen the business environment to promote the development of the private sector and employment with competitive markets, level playing fields and access to finance through development of the financial sector.

• Strengthen the functioning of the land/real estate market. Adopt and implement legislation on cadastre and legislation allowing private ownership of urban land. Start land reform, restructuring and privatisation of large farms.

• Continue the necessary reforms to comply with WTO rules and obligations in order to accelerate the WTO accession process.

• Step up efforts to improve the education system, including primary education, and to create a modern vocational education and training system.

• Start designing and applying an integrated research policy.

In Montenegro:

• Continue sustainable macroeconomic policies; continue fiscal adjustment and consolidation to further reduce external imbalances. Prioritise public spending in short and medium term budgeting; in particular, reduce subsidies, transfers and the civil service wage bill. Continuously reduce overall public spending as a share of GDP.

• Improve the budget process and financial management; strengthen capacity building for budget preparation and execution to enable prioritisation. Improve financial management at central and local government level.

• Establish effective procedures for the detection, treatment and follow-up of cases of suspected fraud and other irregularities affecting national and international funds.

• Strengthen the business environment to promote the development of the private sector and employment with competitive markets, level playing fields and access to finance through the development of the financial sector. Streamline commercial judiciary procedures.

• Continue the necessary reforms to comply with WTO rules and obligations in order to accelerate the WTO accession process.

• Step up efforts to improve the education system, including primary education, and to create a modern vocational education and training system.

• Start designing and applying an integrated research policy.

European standards

Internal market

Free movement of capital

• Further liberalise short- and medium-term capital movements, in both Republics.

Free movement of goods

• Further develop standardisation, in particular through the adoption of European standards. Continue transposing the new and global approach and old approach directives. Establish a market surveillance structure required by the acquis.

Customs and taxation

• Ensure continued approximation of Serbian and Montenegrin customs and taxation legislation to the acquis, and further increase the administrative capacity to implement customs legislation, and to fight against corruption, cross-border crime and fiscal evasion.

• Improve transparency and the exchange of information with EU Member States in order to facilitate the enforcement of measures preventing the avoidance or evasion of taxes.

Statistics

• In both Republics: Develop reliable economic statistics. Build up institutional capacity to produce and publish basic statistical data harmonised with European standards in the area of business statistics, labour market statistics and national accounts.

Sectoral policies

Industry and SME

• In both Republics: Implement the European Charter for SMEs

Agriculture and fisheries

• In Serbia: Further build administrative capacity for policy formulation and implementation. Design and start implementing a rural development policy. Continue strengthening veterinary, sanitary, phytosanitary and food-safety legislation and controls, including wine laboratories. Improve waste management and reduce agricultural pollution. Strengthen agricultural and food market systems, including quality controls and hazard analysis critical control point (HACCP); reduce policy distortions of agricultural markets and reform the Directorate for Commodity Reserves. Extend animal identification and registration to other species. Prepare a programme for upgrading food processing establishments to meet EU requirements.

• In Montenegro: Further build administrative capacity for policy formulation and implementation. Design and start implementing a rural development policy. Strengthen institutional capacity for food safety. Prepare a programme for upgrading food processing establishments to meet EU requirements. Start action in view of identification of sheep and goats and registration of their movements. Start action in view to ensure an efficient control of domestic plant production in particular for products with EU specific requirements. Take measures to ensure that the fisheries policy moves closer to EU standards, in particular in the areas of resource management, inspection and control and in market and structural policies.

Environment

• In both Republics: Continue implementing and enforcing legislation approximated to EU legislation. Continue to implement legislation on environmental impact assessment. Ratify and start implementation of the Kyoto protocol. Ensure a viable financial framework for the implementation of a mid to long-term environmental protection policy.

• In Serbia: Adopt and start implementing strategies on air pollution, waste management and nature protection. Continue implementing the national environment protection strategy, and the water strategy. Continue strengthening administrative capacity of environmental institutions and bodies Begin implementing the multiannual plan for financing investment. Finalise construction of a facility for the treatment and safe disposal of hazardous waste.

• In Montenegro: Continue approximating legislation to EU legislation and standards, notably legislation on air pollution, water and waste. Begin implementing the land use plan and the overall environment protection strategy. Develop an overall environment protection strategy (water, waste, air). Begin implementing the sustainable development strategy and sectoral strategies (integrated coastal zone management, biodiversity, climate change). Continue strengthening the administrative capacity of line ministries and bodies in charge of environmental planning, permitting, inspecting and monitoring, as well as project management.

Transport policy

• In both Republics: Strengthen capacity building, including project preparation for large investments. Continue to earmark sufficient resources for the maintenance of transport infrastructures and institutions.

• Implement international commitments under International Maritime Organisation conventions and improve maritime safety conditions of the fleet in the light of the Paris Memorandum of Understanding.

Energy

• In both Republics: Adopt and implement a long-term strategy for an environmentally sustainable energy policy.

• Continue to implement regional and international commitments in this area in view of establishing a competitive regional energy market

Information society and media

• In both Republics: Transpose and implement the new EU framework for electronic communications. Ensure the independence, sufficient resources and expertise of the regulatory authorities. Start the alignment with the EU audiovisual acquis.

Financial control

• Develop and implement the principles of decentralised managerial accountability and functionally independent internal audit in accordance with the internationally accepted standards and EU best practice.

• Strengthen the operational capacity and functional as well as financial independence of the Supreme Audit Institution,

• Develop procedures and administrative capacities to ensure effective protection of the EU financial interests.

Justice, freedom and security

Visa, border control, asylum and migration

• In both Republics: Develop the technical infrastructure and human resource capacities to implement the integrated border management policy including strengthening the border police and the customs services. Improve cross-border facilitations through new border posts. Enhance the cooperation between the Republics’ agencies responsible for fighting human trafficking.

Police

• In both Republics: Continue restructuring; ensure accountability; reform police education; ensure cooperation among law enforcement agencies.

Fight against organised crime and terrorism

• In both Republics: Develop an effective system of witness protection which also incorporates regional elements. Reinforce the fight against economic and financial crime (including money-laundering and counterfeiting of currencies), fraud and corruption as well as improve the related legislation. Facilitate the placement of liaison officers, seconded by EU Member States in the relevant State bodies involved in the fight against organised crime. Implement the Palermo Convention on trans-national organised crime.

• In Serbia: Strengthen capacity at the Ministry of Interior (notably the directorate for organised crime). Develop procedures and the capacity to share intelligence between agencies.

• In Montenegro: Increase administrative and judicial capacity to implement the criminal code as regards organised crime. Strengthen the Unit for the fight against organised crime at the Ministry of Interior and ensure coordination of all the enforcement bodies.

(1)

Not including Kosovo as defined by UNSCR 1244.