I NAME

The name of the State Union is Serbia and Montenegro.

II THE PRINCIPLE OF EQUALITY

Serbia and Montenegro are constituted on equality basis of two member states, the state of Serbia and the state of Montenegro.

III GOALS

The goals are:

• respect of the human rights of all persons under its competence,
• preservation and improvement of human dignity, equality and the rule of law,
• integration with the European structures, particularly with the European Union,
• harmonization of legislation and practices with the relevant European and international standards,
• establishing of market economy based on free entrepreneurship, competition and social justice and
• establishing and ensuring the unhindered functioning of the internal market within its territory through the coordination and harmonization of the economic systems of the member states in line with principles and standards of the European Union.

IV SYMBOLS OF SERBIA AND MONTENEGRO

Serbia and Montenegro shall have a flag, an anthem and a Coat of Arms defined by the Law of Serbia and Montenegro.

V THE TERRITORY OF SERBIA AND MONTENEGRO

The territory of Serbia and Montenegro consists of the territories of the member states of Serbia and Montenegro. The border of Serbia-and Montenegro is inviolable. The border between member states is inviolable, unless mutually agreed otherwise.

VI COMMON MARKET AND FREEDOM OF MOVEMENT

The economic relations of Serbia and Montenegro shall be based on the establishment and development of a market economy established on freedom of economic activity, competition and a liberal external trade policy and protection of property/ownership.

Serbia and Montenegro shall have the common market.

Within Serbia and Montenegro the movement of persons, goods, services and capital shall be free.

It is forbidden to introduce obstacles to free movement of goods, persons, services and capital between the state of Serbia and the state of Montenegro.

The member states shall be responsible for an unhindered common market functioning.

Serbia and Montenegro coordinates and harmonizes the economic systems with the member states.

VII THE HEADQUARTERS OF THE INSTITUTIONS OF SERBIA AND MONTENEGRO

The administrative headquarters of Serbia and Montenegro shall be located in Belgrade.

The headquarters of the Assembly of Serbia and Montenegro and the Council of Ministers shall be located in Belgrade, while the headquarters of the Court of Serbia and Montenegro shall be located in Podgorica.

VIII CITIZENSHIP

A citizen of a member state is also a citizen of Serbia and Montenegro. A citizen of a member state has equal rights and duties in the other member state, as its citizens, except for the electoral right.

IX HUMAN AND MINORITY RIGHTS AND CIVIL FREEDOMS

The Charter on human and minority rights and civil freedoms, which consists an integral part of this Charter, shall be adopted according to the procedure and in the mode anticipated for the Constitutional Charter adoption.

The member states shall effect, provide and protect human and minority rights and civil freedoms in their territory. Provisions of the international agreements on human and minority rights and civil freedoms valid within the territory of Serbia and Montenegro are applied directly.

Serbia and Montenegro shall provide supervision over respect of human and minority rights and civil freedoms and provide their protection in the event that such protection is not provided in the member states. The obtained level of human and minority rights of individuals and groups, and civil freedoms cannot be diminished.

X INTERNATIONAL LAW AND RELATIONS

Serbia and Montenegro shall be an entity of International Law and member of the international global and regional organizations whose membership is conditioned with being an international entity.

Serbia and Montenegro shall establish international relations with other countries and international organizations and conclude international treaties and agreements.

Ratified international treaties and generally accepted rules of international law have priority over the law of Serbia and Montenegro and the law of member states.

The member states can maintain international relations, conclude international agreements and establish representatives in other states, if it is not in opposing the competences of Serbia and Montenegro and interests of the other member state. The member states could be members of international, global and regional organizations whose membership is not conditioned with being the international entity.

XI THE COMPETENCES OF SERBIA AND MONTENEGRO

Serbia and Montenegro has those competences entitled by this Constitutional Charter.

The member states could mutually entitle Serbia and Montenegro to supplementary competences.

The member states will provide financial means for performing assigned competences and additional tasks/responsibilities of Serbia and Montenegro.

XII THE ASSEMBLY OF SERBIA AND MONTENEGRO

The Assembly of Serbia and Montenegro shall decide on the Constitutional Charter, as the highest legal act of Serbia and Montenegro in a mode defined by this Constitutional Charter and enacts Law and other Acts on:

• the institutions established in accordance with this Constitutional Charter and their operation,
• the application of International Law and the conventions establishing the obligation on cooperation of Serbia and Montenegro with the International Courts,
• proclaiming and abolishing the state of war with a prior approval of the member states' Assemblies
• military issues and the defence,
• the membership of Serbia and Montenegro as an entity of international law in international organizations and rights and obligations resulting from that membership with a prior approval of relevant bodies of member states,
• defining borders of Serbia and Montenegro, with a prior approval of the member state Assembly on whose territory the border is,
• issues related to standards, intellectual property, measures and precious metals and statistics,
• policy of moving in, granting the asylum, visa regime and the rules on the integrated border management in line with the European Union standards,
• ratification of the international agreements of Serbia and Montenegro,
• annual revenues and expenditures necessary to finance responsibilities assigned to Serbia and Montenegro at the proposal of the competent bodies of member states and Councils of Ministers
• preventing and removing obstacles to the free movements of goods, services, persons and capital within Serbia and Montenegro,
• election of the President and the Council of Ministers
• the flag, the anthem and the Coat of Arms of Serbia and Montenegro,
• performs other activities within the competences of Serbia and Montenegro defined by this Constitutional Charter.

The Assembly is unicameral and is consisted of 126 deputies, of whom 91 from Serbia and 35 from Montenegro. The mandate of a deputy is a four-year period.

The deputies of the Assembly of Serbia and Montenegro shall be elected among each member state in line with European and democratic standards based on the law of member states. In the course of the initial two years after the Constitutional Charter adoption deputies shall be elected indirectly in proportion to the representation in the National Assembly of Serbia and Assembly of Montenegro.

In the course of the first elections the deputies shall be elected among the members of the National Assembly of Serbia, Assembly of Montenegro and the Federal Assembly. If the member state holds parliamentary elections in the due course of time, the membership of its delegation at the Assembly of Serbia and Montenegro shall be aligned in proportion with the election results.

After this initial period the deputies of the Assembly of Serbia and Montenegro shall be elected at the direct elections.

The Assembly elects, from among its deputies, the President and the Vice-President of the Assembly and they cannot be from the same member state. The President of the Assembly and the President of Serbia and Montenegro cannot be from the same member state.

The Assembly takes decisions by a majority of votes of the entire number of deputies, if only the decision was voted by the majority of entire number of deputies from each member state.

A draft Law could be submitted to the Assembly by the Council of Ministers, a deputy and the Assembly of the member state.

A deputy has freedom of speech in the Assembly and enjoys immunity for the opinion he expresses and other deeds in the capacity of a deputy. Without the Assembly's approval a deputy may not be called to account, detained or punished unless he has been found in the act of committing a criminal offence for which the sentence of more than five years in prison is proscribed.

Immunity, enjoyed by a deputy , is also enjoyed by the President of Serbia and Montenegro, the members of the Council of Ministers and the judges of the Court of Serbia and Montenegro.

The Assembly shall pass its rules of operating procedure.

XIII PRESIDENT OF SERBIA AND MONTENEGRO

The President and the Vice-President of the Assembly shall propose to the Assembly the candidate President of Serbia and Montenegro.

In the event that the nominated candidate has not gained the majority of votes, the President and the Vice-President of the Assembly in the course of ten days nominate the new candidate. In the event this candidate shall not gain the necessary majority of votes, the Assembly is dissolved and new elections are scheduled.

If the elected President of Serbia and Montenegro is from the same member state as the President of Assembly, then the President and the Vice-President of the Assembly switch their roles.

The President of Serbia and Montenegro could not be elected two times repeatedly from the same member state.

The President of Serbia and Montenegro shall:

• represent Serbia and Montenegro at home and abroad,
• preside over the Council of Ministers and run its activities,
• propose the membership of the Council of Ministers and its members relief of duty,
• be a member of the Supreme Defence Council,
• enact decrees on appointment and revocation of Heads of diplomatic-consular representatives of Serbia and Montenegro and receive credentials and letters of revocation from foreign diplomatic representatives,
• confer medals and other acknowledgements,
• proclaim the Laws passed by the Assembly of Serbia and Montenegro and regulations enacted by the Council of Ministers,
• call the elections for the Assembly of Serbia and Montenegro,
• perform other duties as laid down by this Constitutional Charter.

The Mandate of the President of Serbia and Montenegro is a four-year term.

XIV THE COUNCIL OF MINISTERS

The President of Serbia and Montenegro proposes to the Assembly the candidates for the Ministers of the Council of Ministers and candidates for the Deputy Minister for Foreign Affairs and the Deputy Minister of Defence.

The two candidates for Ministers are from the same member state as well as the President and the remaining three shall come from the other member state. The candidates for the Minister for Foreign Affairs and the Minister of Defence shall come from different member states, as shall their deputies.

The mandate of Ministers is a four-year period.

In the representations of Serbia and Montenegro with international organizations UN, OSCE, EU, Council of Europe, the member states are represented on the parity basis by rotation.

The mode of member states' representation in the international financial organizations is defined by the Council of Ministers having the approval of the competent institutions of the member states.

The representation of the member states in the diplomatic and consular missions of Serbia and Montenegro is defined by the Council of Ministers with the consent of the competent institutions of the member states.

The Assembly votes the list of candidates for the Council of Ministers. If the list has not been adopted by a necessary majority of votes, the President may propose up for two times the list of candidates. If none of these lists obtains the required majority of votes within 60 days from the proposal day of the first list of candidates, the Assembly shall be dissolved and new elections shall be called. The Council of Ministers shall:

• formulate and conduct the policy of Serbia and Montenegro in accordance with the established common policy and interest of the member states,
• coordinate the work of Ministries,
• propose to the Assembly laws and other acts within Ministries' competences,
• appoint and dismiss the Heads of the diplomatic-consular missions of Serbia and Montenegro and other officials in accordance with the law,
• perform sub-legal acts, decisions and other general acts for conducting laws of Serbia and Montenegro,
• perform other executive duties as laid down by this Constitutional Charter. The Council of Ministers shall take decisions by the majority of votes. In the event of equal number of votes the casting vote is the President's vote, if the decision is voted by at least one Minister from the other member state.

XV ACCOUNTABILITY AND THE MANDATE CESSATION OF THE PRESIDENT

The President of Serbia and Montenegro is responsible to the Assembly for the performance of his/her duties.

The mandate of the President of Serbia and Montenegro is terminated prior to the expiry of the term of office he/she has been elected to in the event of resignation, relieving of the duty and the Assembly dismissal.

The mandate of the President of Serbia and Montenegro shall be terminated upon the Assembly's approval.

The Assembly may relieve of duty the President of Serbia and Montenegro if determined that he/she has violated the Constitutional Charter. The violation of the Constitutional Charter is determined by the Court of Serbia and Montenegro. The procedure for determining the violation of the Constitutional Charter is brought by the Assembly of Serbia and Montenegro.

The President of Serbia and Montenegro, whose mandate is terminated due to the Assembly dismissal, shall proceed performing his/her duties until the new President is appointed. If the President of Serbia and Montenegro submits a resignation or be relieved of his/her duty, his/her duty is temporarily taken over by the Vice-President of the Assembly until the appointment of a new President of Serbia and Montenegro.

The procedure of the election and relieving of the duty of the President of Serbia and Montenegro is established according to the law.

XVI ACCOUNTABILITY AND THE MANDATE CESSATION OF THE COUNCIL OF MINISTERS

The Council of Ministers is accountable to the Assembly for the performing of their duties.

The mandate of the Minister and Deputy Ministers is terminated prior to the expiry of the term of office they have been elected to by resignation, vote of no-confidence, relieving of duty or dismissal of the Assembly.

The Ministers and Deputy Ministers whose mandate has terminated shall proceed performing their duties until new ones are elected. The procedure of the election and mandate cessation of the Council of Ministers is established according to the law.

XVII THE MINISTERS

The Minister for Foreign Affairs performs and is responsible for conducting the foreign policy of Serbia and Montenegro, negotiates on the international agreements and proposes to the Council of Ministers candidates for Heads of consular representations to Serbia and Montenegro. The Minister for Foreign Affairs shall coordinate establishing of the foreign policy with competent bodies of the member states.

The Minister of Defence shall be a civilian. The Minister of Defence shall coordinate and conduct established defence policy and command the Army in accordance with the Law and the Supreme Defence Council Competences. He proposes to the Supreme Defence Council candidates for appointment and shall appoint, promote and relieve of duty officers in accordance with the law. Upon the expiry of the two-year period, the Ministers for Foreign Affairs and Defence switch their roles with their deputies. The Minister for Foreign Economic Relations is responsible for negotiating and coordinating the implementation of international agreements, including Treaty relations with the EU and the coordination of relations with international economic and financial institutions after consultation with the relevant ministers of the member states.

The Minister for Internal Economic Relations is responsible for the coordination and harmonization of the economic systems of the member states for the purpose of the establishment and the unhindered functioning of common market operations, including the free flow of people, goods, services and capital.

The Minister for Human and Minority Rights performs the duty of supervising the implementation of the human and minority rights, and together with competent bodies of the member states coordinates duties in implementing and recognizing the International Conventions on the protection of human and minority rights.

XVIII THE ARMY OF SERBIA AND MONTENEGRO

Serbia and Montenegro has the Army under the democratic and civilian control. The Army's role is to defend Serbia and Montenegro, in accordance with this Constitutional Charter and the principles of the International law governing the use of military force. The defence strategy shall be enacted by the Assembly of Serbia and Montenegro in accordance with the law.

The Supreme Army Commander is the Supreme Defence Council that is taking decisions on the Serbia and Montenegro Army engagement. The Supreme Defence Council is made up of the President of Serbia and Montenegro and the Presidents of the member states. The Supreme Defence Council takes decisions by consensus. The conscripts do their military service in the territory of their respective member state whose nationals they are, with the possibility of serving in the territory of the other member state upon their wish.

The Conscripts are guaranteed the right to conscientious objection. The authority of the military judicial bodies shall be transferred to the regular ones in accordance with the Law.

XIX THE COURT OF SERBIA AND MONTENEGRO

The Court of Serbia and Montenegro shall have an equal number of judges from each member state. The judges of the Court of Serbia and Montenegro are appointed by the Assembly of Serbia and Montenegro at the proposal of the Council of Ministers for the period of six (6) years. The judges are law graduates with at least 15 years of practice. The judges may only be elected once. Independent in their work, they could not 5e relieved of duty before the expiry of the term they were elected to, except in cases stipulated by the law. The Court has jurisdiction to resolve:

• disputes among institutions of Serbia and Montenegro related to the issues of their competences under the Constitutional Charter,
• disputes between Serbia and Montenegro and one or both member states or between the two member states as regards issues concerning their competences,
• claims of citizens after all other legal remedies were exhausted, if any institution of Serbia and Montenegro has endangered the rights or freedoms guaranteed by the Constitutional Charter,
• compatibility of the Constitutions of member states with the Constitutional Charter,
• compatibility of laws of Serbia and Montenegro with the Constitutional Charter,
• compatibility of laws of member states with the law of the State Union
• legality of the final administrative acts of the institutions of Serbia and Montenegro.

The Court issues legal opinions and findings related to harmonization of the jurisprudence. The decisions of the Court of Serbia and Montenegro are binding and with no right of appeal. The Court is authorised to invalidate laws, other regulations and enactments of the institutions of Serbia and Montenegro which are in contravention to the Constitutional Charter and the laws of Serbia and Montenegro. The structure and the functioning of the Court of Serbia and Montenegro are stipulated by the law.

XX THE RELATIONS OF LAWS AND THE COMPETENCES OF SERBIA AND MONTENEGRO AND THE MEMBER STATES

The Constitutional Charter, the Laws and the competences of Serbia and Montenegro and the Constitutions, the laws and competences of the member states have to be harmonized.

When judgements are made on harmonization of Laws or competences of member states with the Laws or competences of Serbia and Montenegro or member states mutually, the judges of the member states' Constitutional Courts participate and take decisions in the course of the Court of Serbia and Montenegro session.

When judgements are made on harmonization of the Constitution, Laws or competences of a member state with the Constitutional Charter, Laws or competences of Serbia and Montenegro, the judges of the Constitutional Court of that member state participate and take decisions in the session of the Court of Serbia and Montenegro.

XXI ENTRY INTO FORCE

The Laws and other acts issued by institutions of Serbia and Montenegro shall enter into force not earlier than on 8th day from the day of publishing at the Official Gazette. Exceptionally, when there are reasons established in the procedure of its enactment, the Laws and other acts issued by institutions of Serbia and Montenegro shall come into force at earliest date with the day of its publishing at the Official Gazette.

XXII RETROACTIVITY

The Laws and other acts issued by the institutions of Serbia and Montenegro cannot be retroactive. Exceptionally, if required by the public interest established in the process of law enactment, certain provisions of the Law can be retroactive.

XXIII TRANSITIONAL PROVISIONS

This Constitutional Charter shall be adopted by the National Assembly of the Republic of Serbia and the Assembly of Montenegro as an identical text and shall come into force when, as such, adopted and proclaimed by the Assembly of FRY. Upon this Constitutional Charter coming into force, all rights and responsibilities of FRY shall be transferred to Serbia and Montenegro in accordance with this Constitutional Charter. FRY laws will apply as laws of Serbia and Montenegro when relating to activities of Serbia and Montenegro.

FRY laws outside the activities of Serbia and Montenegro shall apply as laws of the member states until enactment of new regulations by the member states, except for laws that the assembly of a member state may decide that they will not apply.

The member states will make amendments to their Constitutions or adopt new Constitutions for the purpose of bringing them in line with this Constitutional Charter in the period of six months from the day the Constitutional Charter was adopted.

XXIV THE PROPERTY OF SERBIA AND MONTENEGRO

The FRY property necessary for functioning of the institutions of Serbia and Montenegro continuing to function shall be the property of Serbia and Montenegro.

The FRY property in the territory of the member states shall be the property of the member states on the basis of the territorial principle. The FRY property abroad shall be the property of Serbia and Montenegro. XXV LEAVING THE STATE UNION OF SERBIA AND MONTENEGRO

Upon the expiry of a three-year period, the member states have the right to initiate the procedure for change of the State status, that is for withdrawal from Serbia and Montenegro. Decision to withdraw from Serbia and Montenegro shall be taken following a referendum. The Law on referendum shall be enacted by the member state taking into account internationally recognized democratic standards.

In the event of Montenegro leaving Serbia and Montenegro the international documents related to FRY, particularly the Resolution 1244 UNSC, will relate to and be fully valid for Serbia as the successor. legal personality, and all disputable issues are separately regulated between the successor-state and the newly-established state. In the event that both member states through referendum declare in favour of changing the State status, that is in favour of independence, all disputable issues shall be regulated through a succession procedure, as was the case with the former Yugoslavia.

XXVI AMENDMENTS TO THE CONSTITUTIONAL CHARTER

Amendments to this Constitutional Charter shall be performed according to the procedure and the mode concurrent with the Constitutional Charter.

XXVII

THE LAW ON THE CONSTITUTIONAL CHARTER IMPLEMENTATION

A Law on the Constitutional Charter implementation shall be proclaimed and shall come into force concurrently with the Constitutional Charter.