This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of December 6-January 5, 2015. Montenegro’s government has set as its goal to complete all its obligations and be prepared to become a member of the European Union by 2021, according to Aleksandar Pejovic, the chief negotiator for Montenegro’s accession to the EU. The European Union (EU) opened on December 21 two new chapters in the country’s negotiations – on transport policy (chapter 14) and on energy (chapter 15). The European Commission (EC) adopted a new cross-border cooperation programme for Italy, Montenegro and Albania, worth nearly €93 million. Out of the total, some €79mn will come from the European Regional Development Fund and the Instrument for Pre-accession Assistance (IPA). The former president of Serbia and Montenegro, Svetozar Marovic, was arrested on December 17 in connection with a wide-reaching corruption investigation in his home town of Budva. Montenegro’s telecommunications agency EKIP will create all necessary conditions for the entry of a fourth mobile phone operator in 2016. Key points: • The budget deficit increased more than three times y/y to €266mn in the first eleven months of 2015 from €83.9mn a year earlier • The number of foreign tourists visiting Montenegro increased by 11.5% y/y to 19,137 in November • Industrial output boosted its annual growth to 23.7% in November • Bank assets rose 13.4% y/y to €3.524bn at end-November