Changes

Montenegro shares borders with other former Yugoslav-countries - [[Croatia]], [[Serbia]], and [[Bosnia]]-[[Herzegovina]] - and [[Albania]] to the south; it also has a coastline on the Adriatic Sea.

Montenegro shares borders with other former Yugoslav-countries - [[Croatia]], [[Serbia]], and [[Bosnia]]-[[Herzegovina]] - and [[Albania]] to the south; it also has a coastline on the Adriatic Sea.

*Area: Montenegro (13,938 sq. km.) is slightly smaller than Connecticut.

*Area: Montenegro (13,938 sq. km.) is slightly smaller than Connecticut.

*Cities: Capital--Podgorica. Other cities--Bar, Berane, Bijelo Polje, Budva, Cetinje, Herceg Novi, Kotor, Niksic, Pljevlja, Tivat, Ulcinj.

*Cities: Capital—Podgorica. Other cities—Bar, Berane, Bijelo Polje, Budva, Cetinje, Herceg Novi, Kotor, Niksic, Pljevlja, Tivat, Ulcinj.

*Terrain: Varied; mountainous regions with thick forests; central plains; southwestern Adriatic coast with high shoreline with very few islands off the coast.

*Terrain: Varied; mountainous regions with thick forests; central plains; southwestern Adriatic coast with high shoreline with very few islands off the coast.

*Climate: Generally continental; Mediterranean along the coast.

*Climate: Generally continental; Mediterranean along the coast.

==People==  

==People==  

*Nationality: Noun--Montenegrin(s); adjective--Montenegrin.  

*Nationality: Noun—Montenegrin(s); adjective—Montenegrin.  

*Population (2003 Republic census): 630,548.  

*Population (2003 Republic census): 630,548.  

*Population growth rate (EU 2008 Progress Report): 3.0%.  

*Population growth rate (EU 2008 Progress Report): 3.0%.  

*Religions (2003 census): Orthodox 74%, Muslim 18%, Roman Catholic 4%.  

*Religions (2003 census): Orthodox 74%, Muslim 18%, Roman Catholic 4%.  

*Languages (2003 Census): Serbian 63.49%, Montenegrin 21.96%, Albanian 5.25%, Bosniak 3.2%, Bosnian 2.28%, Croatian 0.45 and Roma 0.4%. The October 2007 constitution established Montenegrin as the official language, and decreed that Serbian, Bosniak, Albanian, and Croatian also may be used officially.  

*Languages (2003 Census): Serbian 63.49%, Montenegrin 21.96%, Albanian 5.25%, Bosniak 3.2%, Bosnian 2.28%, Croatian 0.45 and Roma 0.4%. The October 2007 constitution established Montenegrin as the official language, and decreed that Serbian, Bosniak, Albanian, and Croatian also may be used officially.  

*Health (2008 EU Progress Report): Infant mortality rate--7.4 deaths/1,000 (2007 data). Life expectancy--male 70.6 yrs., female 74.8 yrs. (2006 data).  

*Health (2008 EU Progress Report): Infant mortality rate—7.4 deaths/1,000 (2007 data). Life expectancy—male 70.6 yrs., female 74.8 yrs. (2006 data).  

==Government and Political Conditions==

==Government and Political Conditions==

===Principal Government Officials===

===Principal Government Officials===

*President--Filip Vujanovic (DPS)

*President—Filip Vujanovic (DPS)

*Prime Minister--Igor Lukšić  

*Prime Minister—Igor Lukšić  

*Foreign Minister--Milan Rocen (DPS)

*Foreign Minister—Milan Rocen (DPS)

*Defense Minister--Boro Vucinic (DPS)

*Defense Minister—Boro Vucinic (DPS)

*Speaker of the Parliament--Ranko Krivokapic (SDP)

*Speaker of the Parliament—Ranko Krivokapic (SDP)

===Foreign Relations===

===Foreign Relations===

*Agriculture: 8.4% of GDP.

*Agriculture: 8.4% of GDP.

*Services: 49.6% of GDP.

*Services: 49.6% of GDP.

*Trade (2008): Exports--$728.2 million (€495.18 million). Major markets--Italy ($196.1 million; €133.3 million), Serbia ($168.4 million; €114.5 million), Greece ($80.7 million; €54.9 million) Slovenia ($57.1 million, €38.8 million); Kosovo ($55.6 million; €37.8 million). Imports--$2.865 billion (€1.948 billion). Major suppliers--Serbia ($1.119 billion; €761.3 million), Italy ($216.5 million; €147.2 million), Bosnia and Herzegovina ($207.1 million, €140.8 million); Croatia ($201.2 million, €136.8 million), Slovenia ($195.8 million, €133.2 million).

*Trade (2008): Exports--$728.2 million (€495.18 million). Major markets—Italy ($196.1 million; €133.3 million), Serbia ($168.4 million; €114.5 million), Greece ($80.7 million; €54.9 million) Slovenia ($57.1 million, €38.8 million); Kosovo ($55.6 million; €37.8 million). Imports--$2.865 billion (€1.948 billion). Major suppliers—Serbia ($1.119 billion; €761.3 million), Italy ($216.5 million; €147.2 million), Bosnia and Herzegovina ($207.1 million, €140.8 million); Croatia ($201.2 million, €136.8 million), Slovenia ($195.8 million, €133.2 million).

During the last few years, Montenegro has begun creating a business-friendly investment climate. The Euro replaced the DM on March 31, 2002. The country established the lowest corporate tax rate in the region (9%) and Standard & Poors confirmed the long-term (BB+) and short-term (B) credit rating for Montenegro in November 2008. It also confirmed the AAA rating, which concerns the transfer and assessment of convertibility. According to official statistics the inflation rate in 2008 was 8.4%. More than 85% of capital value in Montenegrin companies had been privatized by June 2009. The banking sector, telecommunications, and oil import and distribution in Montenegro are 100% privately owned. Capital structure analysis shows that the state still has shares in 65 companies, and in 53.8% of those the state has more than 50% ownership. The biggest improvement Montenegro has made has been in the area of tax policy. Montenegro introduced value added tax (VAT) in April 2003, and introduced tax rates of 17% and 7% (for tourism) as of January 2006. The lower VAT rate for tourism is to encourage growth in this strategic industry. Montenegro also decreased the personal income tax (PIT), and a 12% flat rate was implemented in January 2008; a 9% rate will be implemented in January 2010.

During the last few years, Montenegro has begun creating a business-friendly investment climate. The Euro replaced the DM on March 31, 2002. The country established the lowest corporate tax rate in the region (9%) and Standard & Poors confirmed the long-term (BB+) and short-term (B) credit rating for Montenegro in November 2008. It also confirmed the AAA rating, which concerns the transfer and assessment of convertibility. According to official statistics the inflation rate in 2008 was 8.4%. More than 85% of capital value in Montenegrin companies had been privatized by June 2009. The banking sector, telecommunications, and oil import and distribution in Montenegro are 100% privately owned. Capital structure analysis shows that the state still has shares in 65 companies, and in 53.8% of those the state has more than 50% ownership. The biggest improvement Montenegro has made has been in the area of tax policy. Montenegro introduced value added tax (VAT) in April 2003, and introduced tax rates of 17% and 7% (for tourism) as of January 2006. The lower VAT rate for tourism is to encourage growth in this strategic industry. Montenegro also decreased the personal income tax (PIT), and a 12% flat rate was implemented in January 2008; a 9% rate will be implemented in January 2010.