Closing Chapter 17: A Step Closer to Full Participation in the European Economic and Monetary Union

By closing this chapter, Montenegro has taken an important step toward full integration into the European economic and monetary framework, confirming progress in strengthening the independence of the Central Bank, fiscal responsibility, and institutional readiness for European Union membership. To become a member of the euro area, Montenegro must join the European Union, meet the prescribed legal and economic convergence criteria, and participate in the Exchange Rate Mechanism II (ERM II) for at least two consecutive years, followed by a formal assessment and decision by the relevant EU institutions. Our goal is for the Central Bank to be ready, from the moment Montenegro joins the European Union, to assume the obligations arising from membership in the European System of Central Banks and, subsequently, following formal accession to the euro area, the obligations of full participation in the Eurosystem. The closing of Chapter 17 confirmed the fulfilment of all five closing benchmarks, covering alignment with European rules on economic and monetary policy, strengthening the independence of the Central Bank, improving fiscal governance and economic oversight, and accepting an adapted framework for future formal accession to the euro area. Key results include the constitutional and legal strengthening of the independence of the Central Bank of Montenegro, alignment with rules prohibiting monetary financing of the public sector and its privileged access to financial institutions, improvement of the fiscal framework, and development of the institutional capacities needed to apply European rules. At the same time, the Central Bank of Montenegro continues preparations for future membership in the European System of Central Banks by strengthening its institutional, analytical, and operational capacities, including cooperation with the national central banks of EU member states.