Serbia and Montenegro: Current Situation and U.S. Policy

Publication Date: June 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

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Abstract:

Serbian strongman Slobodan Milosevic's long reign came to an end in October 2000, when he was deposed from power by a popular revolt after he refused to concede defeat in an election for the post of President of the Federal Republic of Yugoslavia (FRY) won by his opponent, Vojislav Kostunica. The new government suffered a great blow in March 2003, when Serbian Prime Minister Zoran Djindjic was murdered by organized crime figures linked to the Serbian security apparatus. Organized crime, extremists within the Serbian military and security apparatus, and the links between them continue to pose a threat to Serbia's democratic development.

On December 28, 2003, the extreme nationalist Serbian Radical Party won a stunning victory in early Serbian parliamentary elections, but fell short of a majority. In March 2004, a minority government of democratic parties formed a government without the Radicals. However, the government depends on the parliamentary support of the Socialists (Milosevic's former party), who are not in the government but are in a position to extract concessions from it. Democratic forces in Serbia received a boost from Serbian presidential elections in June 2004, which resulted in a victory for Boris Tadic, a pro-Western, pro-reform figure over a Radical Party candidate.

In a years-long confrontation with Milosevic, Montenegrin leader Milo Djukanovic seized control of virtually all levers of federal power on the republic's territory. He sought to rapidly achieve an independent Montenegro, but opposition from the United States, European Union and Russia stymied these efforts. After a largely unsuccessful three-year decentralized union with Serbia, Montenegro voted for independence in a referendum held on May 21, 2006. Montenegro's independence has been recognized by Serbia, the United States, the European Union, and other countries.

The United States and other Western countries have sought to encourage Serbia and Montenegro's integration into Euro-Atlantic institutions. However, these efforts have been hampered by controversy over the future status of Serbia's Kosovo province, Serbia's failure to fully cooperate with the Yugoslavia war crimes tribunal (in particular its failure to arrest former Bosnian Serb army chief Ratko Mladic), and Serbia's fitful progress in such areas as rule of law and military and security sector reform.

Since Milosevic's downfall, Congress has appropriated significant amounts of aid to Serbia and Montenegro to promote reforms. In each fiscal year from FY2001 through FY2006, Congress conditioned U.S. aid to Serbia on a certification by the President that a series of conditions had been met by Serbia, above all cooperation with the Yugoslav war crimes tribunal. The House has passed such a certification provision in its version of the FY2007 foreign aid bill (H.R. 5522). This report will be updated as events warrant.