Number: RS21568 Title: Serbia and Montenegro Union: Prospects and Policy Implications Authors: Julie Kim, Foreign Affairs, Defense, and Trade Division Abstract: Serbia and Montenegro are united in a highly decentralized joint state under an agreement brokered by the European Union (EU) in 2002-2003. After extended mediation by the EU, the Montenegrin government and opposition agreed to terms for holding a long-awaited referendum on independence, which will be held on May 21, 2006. Montenegro's pro-independence government is confident of victory, although a sizeable minority of the population and the political opposition in Montenegro oppose independence. Most of Serbia's political leaders support continuation of the union but say they will recognize any result that is accepted by the EU. Uncertainty about the state union's future comes at the same time as the EU is negotiating an association agreement with Serbia and Montenegro and as the international community is conducting talks on the future status of Kosovo, a disputed province in Serbia. For additional information, see CRS Report RL30371, Serbia and Montenegro: Current Situation and U.S. Policy. Pages: 6 Date: May 24, 2006