President Jakov Milatovic on Tuesday returned a proposed law on cooperation with the United Arab Emirates to parliament for reconsideration.
He said the agreement with the UAE, enabled by the proposed law, would put Montenegro at a disadvantage.
The law “foresees a series of obligations for the state of Montenegro while it does not contain any concrete obligations of the other party that would ensure the protection of the interests of our state”, Milatovic said, explaining his move.
“With this approach, the government of Montenegro has put the state of Montenegro in an unequal position in relation to the other contracting party,” he added.
The agreement with the UAE would pave the way for the controversial development of the untouched 12-kilometre Velika Plaza beach in Ulcinj, in southern Montenegro. It forms part of efforts by Prime Minister Milojko Spajic’s government to attract more foreign investment and further develop tourism.
Milatovic’s office said there were “numerous open questions concerning the agreement in question to which the public has not received adequate answers from the government of Montenegro”.
Milatovic’s main concerns include “deviations from the constitutional provisions concerning the provision of free competition and an equal position on the market” and “suspension of the application of Montenegrin legislation related to public procurement, public tenders and state property”, his office said.
He also cited the “high level of non-transparency that followed the preparation and signing of the agreement … and the danger that deviations from the accepted rules of the market economy and the provision of state aid could call into question the continuation of [Montenegro’s] path to the EU”.
On Sunday, parliament approved two pieces of legislation confirming agreements with the UAE, paving the way for Emirati investment in Montenegro, despite criticism from some civil society activists, environmentalists and the opposition.
Milatovic signed one of the two, a Law on Confirmation of the Agreement on Economic Cooperation between the two governments.
His refusal to sign the other into law marks the latest quarrel between him and Prime Minister Spajic.
Since they entered politics together in 2020 as ministers in the government of Zdravko Krivokapic, relations between the two have ranged from closeness to sharp disagreement, which they seemingly resolved with a coalition in the Podgorica local elections last year.
But tensions resurfaced again after the recent announcement of large-scale investment in Velika Plaza, which Milatovic has deemed illegal.
According to the constitution, if the President orders parliament to reconsider a law, the speaker must put the law on the agenda of the next session. If it is approved, the speaker submits the law back to the President for approval.
