Capital city: Podgorica / Total area: 13,812 km² / Population: 0.6 million

Montenegro is located in the south of the Adriatic and borders Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the southeast. A Serbian principality in the late Middle Ages, its independence from the Ottoman Empire was formally recognised in 1878. Since 1918, Montenegro was later a part of various incarnations of Yugoslavia and the state union of Serbia and Montenegro.

On May 21st 2006 Montenegro organised a referendum on independence, in line with the provisions of Article 60 of the Constitutional Charter of Serbia and Montenegro. The modalities for the referendum were agreed upon by the political forces of Montenegro following a mediation mission of Ambassador Miroslav Lajčak, the personal representative of the EU High Representative for Common Foreign and Security Policy, Javier Solana. Montenegro subsequently declared independence on June 3rd.

In October 2007 Montenegro signed the Stabilization and Association Agreement (SAA) with the EU. An Interim Agreement on trade and trade-related issues has been implemented since January 2008, while the SAA ratification is underway.

Montenegro has profited from EU autonomous trade measures since 2000. As from 1 January 2008 access of Montenegrin products to the EU was expanded and EU exports to Montenegro have been granted trade preferences following the Interim Agreement.

Montenegro benefits of EU financial assistance and during 2007-2012 it will receive 132.7 million euros. Focus areas for financial assistance under the Instrument for Pre-Accession Assistance (IPA) include the continuation of reforms in areas such as judiciary, public administration, the fight against corruption and organised crime, as well as in the overall process of transposing and implementing the EU standards in various areas.