Montenegro abolishes program that was its trump card for investments: No more economic citizenship

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The Montenegrin government will not extend the program based on which it was granting economic citizenship. It expires on December 31, 2021, and the decision was made in order not to hinder Montenegro's path toward EU membership, the daily Dan writes.

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"Support for economic citizenship programs runs counter to European Union principles," the government said in a decision on Thursday.

Promoting such a program, it is added, runs contrary to the trends to revise existing programs within the EU, and to a critical remark by the EU institutions, as well as the requirements to abolish similar programs in member countries.

"It is therefore concluded that further support for such a program may complicate and slow down the process of Montenegro's accession to the European Union," the decision reads, noting that Montenegro as a candidate country must not compromise its commitment to European integration.

EU institutions, it has been explained, do not look favorably on programs of economic citizenship, bearing in mind reputational risks, as well as risks of financial integrity, such as money laundering, terrorist financing, corruption and infiltration of organized crime.

"As the program has already been abolished in Cyprus, Malta has received a warning, while Bulgaria has been asked for additional information, it is assumed that the only potentially sustainable program within the EU is the one applied in Portugal, which changes frequently."

An additional argument for canceling the program is that it is unquestionably unsustainable based on the data so far.

"That only 37 citizenships, out of the total of 2,000 set aside by the end of 2021, have been granted, calls into question the purpose and sustainability of the program. The 131 applications submitted to the Investment Agency does not contribute to the argument that investors based investments in development projects solely on economic dependence, cost-effectiveness or expected gains," the government said, and added that ending the program will not lead to obstructions in implementing development projects.

(Telegraf Biznis)