| Montenegro Proceeding Points for the Restructuring of Relations Between Serbia and Montenegro
 March 14, 2002 [see also 
Constitutional Charter of the State Union of Serbia and Montenegro and
Constitution of the Republic of 
Montenegro, 1992] 
 Agreement on Principles. The Agreement on Principles of relations 
			between Serbia and Montenegro within the state union shall be signed 
			by participants in the talks: the President of the Federal Republic 
			of Yugoslavia, the Deputy Federal Prime Minister, the President of 
			the Republic of Montenegro, the Serbian and Montenegrin Premiers 
			and, as witnesses, the EU High Representative for Common Foreign and 
			Security Policy. The document shall be submitted for debate to the 
			Parliaments of member states and the Federal Parliament.
 Constitutional Charter. On the basis of opinions put forward in 
			parliamentary debates, that is, parliamentary conclusions, a 
			constitutional commission, whose members shall be delegated by the 
			Parliaments of the Federal Republic of Yugoslavia (FRY), Serbia and 
			Montenegro, shall draft the Constitutional Charter, the highest 
			legal act of the state union of Serbia and Montenegro. The text of 
			this act shall be adopted by the republican parliaments first, and 
			then submitted to the Federal Parliament. Such procedure would 
			reaffirm the elements of Serbian and Montenegrin statehood, stemming 
			from present-day factual situation and the historic rights of the 
			two member states.
 
 Provision on Reconsideration. Upon the expiration of a three-year 
			period, the member states shall be entitled to instituting 
			proceedings for a change of the state status, that is, withdrawal 
			from the state union. If Montenegro withdraws from the state union, 
			international documents related to the FRY, the UN Security Council 
			Resolution 1244 in particular, shall relate and fully apply on 
			Serbia as its successor.
 
 A member state that uses this right, shall not inherit the right to 
			international and legal status, and all debatable issues shall be 
			regulated specifically between the state successor and the newly 
			established state. If in a referendum process both member states 
			declare themselves in favor of a change of the state status 
			(independence), all debatable issues shall be resolved in succession 
			proceedings, as was done in the case of former Yugoslavia.
 
 The Laws on Referendum shall be adopted by the member states, taking 
			full account of internationally recognized democratic standards.
 
 The name of the state: Serbia and Montenegro.
 
 Institutions of Serbia and Montenegro: the Parliament, the 
			President, the Council of Ministers and the Court.
 
 Parliament: A unicameral parliament providing certain positive 
			discrimination for Montenegrin representatives. The Laws on the 
			Election of Representatives to the Parliament of Serbia and 
			Montenegro shall be adopted by the member states, in compliance with 
			the principles defined by the Constitutional Charter. Mechanisms to 
			protect against outvoting of member states shall be provided for.
 
 President of Serbia and Montenegro: The President, elected by the 
			Parliament of Serbia and Montenegro, shall propose the composition 
			of the Council of Ministers and direct its work.
 
 Council of Ministers: The Council of Ministers, shall be composed of 
			five departments: foreign affairs, defence, international economic 
			relations, internal economic relations and protection of human and 
			minority rights. The competences of the ministries shall be defined 
			in detail subsequently.
 
 The Court of Serbia and Montenegro: The Court shall have 
			constitutional-court and administrative court functions, and shall 
			deal with harmonization of court practice. The administrative court 
			function shall be exercised in relation with administrative acts of 
			the ministries of the Council of Ministers. The Court shall take 
			legal views and give opinions related to the harmonization of court 
			practice. The Court is not an appellate court and has an equal 
			number of judges from the member states.
 
 The Army: The Army of Serbia and Montenegro shall be under the 
			command of the Supreme Defense Council, composed of three 
			presidents. The Supreme Defense Council shall make decisions by 
			consensus. Conscripts shall serve the army on the territory of their 
			respective member states, with the possibility of serving on the 
			territory of the other member state, if they wish so.
 
 Elections and Appointments: Upon the promulgation of the 
			Constitutional Charter under the specific procedure, elections shall 
			take place, the Parliament of Serbia and Montenegro shall be 
			constituted, the President of Serbia and Montenegro shall be 
			elected, as well as members of the Council of Ministers and judges 
			of the Court of Serbia and Montenegro. It shall be possible to 
			provide for rotating during a term in office. (In the Ministry of 
			Foreign Affairs and the Ministry of Defense, the minister and 
			his/her deputy from different member states shall take turns when 
			one half of the term in office expires).
 
 In representing the member states in international organizations 
			(UN, OSCE, EU and the Council of Europe), parity shall be provided 
			for through rotation, whereas special models for representation 
			shall be defined for international financial organizations. In 
			diplomatic and consular representative offices of Serbia and 
			Montenegro abroad, a special agreement shall be made on 
			proportionate representation of the member states.
 
 The Constitutional Charter shall be submitted to the Parliaments for 
			deliberation by the end of June 2002 at the latest.
 
 Dislocation of federal institutions. Some federal institutions can 
			be headquartered in Podgorica.
 
 Constitutional reconstruction of the member states. Within the 
			activities aimed at the promulgation of the Constitutional Charter 
			of Serbia and Montenegro, the member states shall amend their 
			respective constitutions in compliance with the Constitutional 
			Charter of Serbia and Montenegro or promulgate new constitutions by 
			the end of 2002 at the latest.
 
 Economic sphere. The level of economic reforms reached in Serbia and 
			Montenegro shall be a proceeding point for regulating mutual 
			economic relations.
 
 The member states shall be responsible for unhindered operation of a 
			common market, including the free flow of people, goods, services 
			and capital.
 
 Harmonization of the economic systems of the member states with the 
			EU economic system shall overcome the existing differences, 
			primarily in the spheres of trade and customs policies.
 
 In both regards, economic reforms that have already been carried out 
			in the member states shall be taken into full account, while 
			solutions that would provide for the quickest integration into the 
			European Union shall be accepted. Transitional solutions in 
			harmonizing trade and customs policies should take into account the 
			interests of the member states.
 
 The European Union shall assist in the accomplishment of these 
			objectives and monitor the process on a regular basis.
 
 The modalities for the achievement of these objectives shall be 
			elaborated in parallel with the Constitutional Charter.
 
 If one of the member states believes that the other does not live up 
			with commitments under this agreement concerning the operation of a 
			common market and the harmonization of trade and customs policies, 
			it shall reserve the right to raise the matter with the EU in the 
			context of the Stabilization and Association Process with the view 
			to the adoption of appropriate measures.
 
 The EU shall guarantee that, if other conditions and criteria for 
			the Stabilization and Association Process are fulfilled, the agreed 
			principles of constitutional organization shall not be an obstacle 
			to a rapid conclusion of the Agreement on Association and 
			Stabilization.
 
 President of the Federal Republic of Yugoslavia
 Vojislav Kostunica
 
 Deputy Federal Prime Minister
 Miroljub Labus
 
 President of the Republic of Montenegro
 Milo Djukanovic
 
 Premier of the Republic of Serbia
 Zoran Djindjic
 
 Premier of the Republic of Montenegro
 Filip Vujanovic
 
 Witnessed by:
 
 EU High Representative for Foreign and Security Policy
 Javier Solana
 
 Belgrade, March 14, 2002
 
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