Montenegro

Montenegro Part of the Ottoman Empire since 1582, it became independent in 1878, and was declared a Kingdom in 1910. It joined its neighbour, Serbia, in the Balkan Wars (1912–13) and World War I. From 1918 it was part of the Kingdom of Serbs, Croats, and Slovenes, which in 1929 became Yugoslavia. During World War II it was an Italian protectorate (1941–4). Thereafter, it became a federal republic of Yugoslavia. Partly in reaction to Serbia's brutality against uprisings in Kosovo, in 1989 and 1990 there were increasing demands to follow Croatia, Slovenia, and Bosnia-Hercegovina into independence. In contrast to Croatia and Bosnia-Hercegovina, it was of comparatively small interest to the Serbs, who formed only 2 per cent of the population, with Macedonians constituting 67 per cent, and Albanians 20 per cent.

The free elections of December 1990 were won by the Communists (renamed Democratic Party of Socialists in 1991), which favoured remaining in union with Serbia. This was confirmed in a referendum in March, whereupon it formed the Federal Republic of Yugoslavia on 29 April 1992. As the poorest state of former Yugoslavia, it had much to gain from its alliance with the comparatively wealthy Serbia.

The lure of a union with Serbia weakened as Yugoslavia's economy began to suffer from international economic sanctions imposed first during the Bosnian Civil War and then before the Kosovan War in 1999. Moreover, when Serbia was attacked and its economy destroyed during the Kosovan War, the Montenegrin government under Milo Djukanović sought to distance the province from Serbia. In 2000 it introduced a currency reform, whereby the euro became sole legal tender. Complete independence continued to be controversial, however, as popular opinion for and against independence was evenly balanced. Following elections in late 2000, Djukanović was able to form a new government, but his separatist coalition failed to obtain an absolute majority of seats in parliament. In 2002, a new agreement was negotiated with Serbia which would provide de facto independence, and maintain a nominal link with Serbia.