11:59 BELGRADE, Thursday
Agreement was reached in the early hours of this morning
on a new future together for Serbia and Montenegro.
Announcing the news after
yesterdays marathon negotiating sessions Yugoslav
President Vojislav Kostunica thanked Montenegrin
President for his constructive approach to what he
described as a new, original model for the joint state.
The new state,
which officials say will not be called Yugoslavia, will
be neither a loose federation nor a confederation, said
He added the
details would be published after the agreement was signed
The new union
will continue to have a federal president and will be
represented by a single seat at the United Nations.
emphasised that the solution was envisaged as a permanent
Describing it as
a new beginning he said that the agreement
would have to be ratified by the parliaments of Serbia,
Montenegro and Yugoslavia.
This would be
followed by the drafting of a new constitution based on
the agreement, with federal elections in the autumn.
came after marathon negotiating sessions yesterday
involving most senior Belgrade and Podgorica politicians,
brokered by EU foreign policy chief Javier Solana.
Three years probation for new joint state
13:17 BELGRADE, Thursday Three years from todays
agreement on new federal relations between Serbia and
Montenegro, both republics will have the right to review
their status and withdraw from the joint state.
The new united state will be known as Serbia and
Montenegro and the joint institutions will be a
parliament, a council of ministers, a president and a
The president will be elected by the Parliament and will
supervise the work of the ministerial council, whose
members he will propose to the Parliament for
There will be five federal portfolios: foreign affairs,
defence, international economic relations, internal
economic relations and protection of human and minority
Serbia and Montenegro will each retain its own currency,
market and customs regime, but will be obliged to bring
their internal economic systems into line with EU
New institutions for new joint state
13:44 BELGRADE, Thursday The institutions of the
new federal state of Serbia and Montenegro will be
completely new, having little continuity with the
institutions of the present Federal Republic of
A streamlined new parliament will have only one house,
which will elect the president of the joint state.
The president in turn will propose a council of ministers
to the parliament and, once elected, will supervise their
work in the areas of foreign affairs, defence,
international economic relations, internal economic
relations and protection of human and minority rights.
A single Court of Serbia and Montenegro will coordinate
legislation between the two republics and also have a
constitutional function. Both states will appoint judges
to the court.
In other provisions of the agreement, both Serbia and
Montenegro will have the right to opt out of the joint
state after three years.
In the case of Montenegro leaving the union,
international documents applying to Yugoslavia,
particularly UN Security Council Resolution 1244 which
ended the Kosovo war, would apply fully to Serbia as
An act calling a referendum on independence from the
union would be called by the member states taking
internationally recognised democratic standards into
The Supreme Defence Council will, as at present, consist
of the presidents of Serbia, Montenegro and the joint
state. It will command the Army of Serbia and Montenegro
Military service may be served in either state as the
A draft constitutional treaty is to be submitted to the
parliaments for review by the end of June this year.
Elections will be held after the adoption of the
constitutional treaty, following which the Parliament of
Serbia and Montenegro would be constituted and the
president of the union elected. The election of the
Council of Ministers and judges of the Court of Serbia
and Montenegro will follow.
Serbia and Montenegro will appoint representatives to
international institutions on a rotation basis, with
special models of representation to be developed for
international financial institutions.
Some institutions of the joint state may be based in
Economic relations will be determined in accordance with
the level of economic reform achieved in the individual
The European Union will assist in coordinating the
economic systems of the member states with its own, which
will help resolve inconsistencies in trade and customs
policy. The EU will regularly monitor this process.
If one member state believes the other is failing to meet
its obligations in the functioning of the joint market
and harmonisation of trade and customs policy, it has the
right to raise the issue with the EU in order for
adequate measures to be taken.
The European Union guarantees that, if other conditions
and criteria for the process of stabilisation and
association are met, the principle of the constitutional
order agreed on would not be an obstacle to the signing
of an agreement on stabilisation and association in the