Montenegro and Albania will hold separate accession conferences on 12 and 13 October as the European Commission introduces proposals for stronger safeguards against democratic backsliding, linking the next phase of EU enlargement to reforms within the Union itself.

Montenegro and Albania are preparing for another round of European Union accession negotiations this week, with meetings in Luxembourg scheduled to advance their membership bids as Brussels considers substantial changes to the conditions under which future countries will join the bloc.

Montenegro’s 29th accession conference will take place on Monday, 12 October, followed by Albania’s tenth conference on Tuesday. The meetings come less than a week after the European Commission presented a package of proposals intended to prepare the EU for enlargement while strengthening its ability to respond to breaches of democratic standards by newly admitted members.

For Montenegro, the immediate objective is to continue closing negotiating chapters after years of institutional and legal reforms. Albania’s meeting has a more precisely defined agenda: the provisional closure of Chapter 20, covering enterprise and industrial policy.

Both countries have made progress towards membership, but the Commission’s latest proposals indicate that the terms of accession could become more demanding as the EU considers admitting several new members.

Montenegro moves towards the final negotiating stage

Montenegro is widely regarded as the most advanced candidate among the Western Balkan countries.

Accession negotiations began in 2012, and all 33 negotiating chapters have been opened. Progress towards closure has accelerated as the government seeks to complete the process and secure an accession treaty.

At the end of 2025, Montenegro provisionally closed five chapters covering services, capital movements, company law, agriculture and fisheries.

As EU Today reported following that conference, the agreements brought the number of provisionally closed chapters to twelve at that stage, while the EU continued to emphasise the importance of judicial reform and sustained implementation.

Subsequent accession conferences have continued the negotiating process, with the 29th conference scheduled for 12 October.

The Commission has identified Montenegro as a country capable of concluding accession negotiations by the end of 2026, provided sufficient progress is maintained.

That objective does not mean membership would follow automatically. A completed negotiation must still lead to an accession treaty, which requires approval by all existing member states and ratification under their constitutional procedures.

Outstanding questions include the independence of the judiciary, enforcement of anti-corruption legislation and the capacity of state institutions to apply EU law consistently.

Albania advances in industrial policy negotiations

Albania’s accession process has also gained momentum, supported by renewed EU interest in incorporating the Western Balkans into European political and economic structures.

The conference scheduled for 13 October is expected to provisionally close Chapter 20, which covers enterprise and industrial policy.

The chapter concerns the legal and institutional environment in which businesses operate, including industrial competitiveness, entrepreneurship and policies supporting small and medium-sized enterprises.

Provisional closure would represent further progress in Albania’s alignment with EU legislation and policy, although it would not constitute a final agreement on accession.

As with Montenegro, the negotiating framework requires sustained progress on the fundamentals of membership, notably judicial independence, fundamental rights, corruption and organised crime.

Brussels prepares stronger safeguards

The latest accession conferences follow the European Commission’s proposals of 6 October, which address the institutional consequences of admitting new countries.

The Commission argues that enlargement can be accommodated within the existing treaties, but that the EU will need additional safeguards and improvements to decision-making.

Among the most consequential proposals is the possibility of suspending a new member state’s voting rights in the Council if it commits serious breaches of the Union’s fundamental values or the principle of sincere cooperation.

Such provisions would be incorporated into future accession arrangements, making some membership conditions enforceable after a country has joined.

The proposal reflects concerns that the EU’s existing mechanisms for responding to democratic backsliding can be slow and politically difficult to apply.

In June, EU Today reported on proposals advanced by five member states seeking stronger protections against governments that might undermine common decisions after accession.

The Commission’s October package develops that argument into a broader programme of institutional preparation.

Enlargement beyond the Western Balkans

The debate extends to Ukraine and Moldova, whose membership applications have acquired greater strategic importance following Russia’s full-scale invasion of Ukraine.

The Commission is examining how candidate countries can progressively participate in EU policies and programmes before obtaining full membership.

These arrangements could include greater integration in energy, transport, defence and selected areas of the single market, subject to the implementation of relevant reforms.

Brussels is also considering transitional arrangements affecting agricultural support, financial transfers and sensitive sectors of the economy.

The political challenge is to provide candidate countries with credible membership prospects while reassuring existing members that enlargement will not weaken common decision-making or create unsustainable budget commitments.

For Montenegro and Albania, the October conferences therefore take place at a pivotal point in the accession process.

Both governments are moving through the technical stages of membership negotiations while the EU is still determining how its next enlargement will operate.

The outcome will depend not only on their progress towards meeting accession conditions, but also on whether the existing 27 member states can agree on the institutional changes required for a larger Union.

The EU’s annual rule of law report, tackling advancements in corruption and fundamental rights, shares overly optimistic improvement that is far from the reality on the ground, a civil liberties group revealed. 

Presented on a sweltering Friday in July, the EU commission’s 2026 rule of law report failed to avoid scrutiny, with NGO Civil Liberties Union for Europe (Liberties) observing a gap between professed achievements in member states and the reality of a significant lack of implementation of Brussels’ recommendations. 

“This year’s Report shows continued positive progress across many Member States. And that is precisely why our Rule of Law Report matters. It has become a reference point, helping to shape national debates and drive reforms across our Union,” EU Commission president Ursula von der Leyen said back then in a statement.

But of all recommendations in the July report, Liberties’ Gap analysis report revealed that only four percent had been fully implemented, while 54 percent show limited to no progress.

“The Commission’s Rule of Law Report has the potential to be one of the EU’s strongest tools for preventing democratic backsliding,” said Kersty McCourt, Liberties’ rule of law expert. “But when recommendations are repeatedly issued without being implemented, and new threats are not identified early enough, the system loses its power”. 

The report, published on Monday (12 October) and shared in advance with EUobserver, found that almost all recommendations issued in 2026 were regurgitations of those given in previous years, with only seven new recommendations being introduced this year.

The commission’s annual report “fails to unpack why some problems remain so entrenched,” Liberties said. 

In its own study, the Berlin-based NGO suggested the reasons for slow movement to be bound from a lack of willingness from member states, a vacuum in the EU’s enforcement mechanisms, or issues becoming “so entrenched that progress is effectively impossible.”

This reduces the function of the report as a warning system for identifying early signs of democratic backsliding, since recommendations on emerging issues remain unaddressed and even if are formally adopted, often don’t translate into effective implementation.

Liberties observed this to be evident in the example of Nordic countries, which have grown to be exempt from scrutiny due to their traditionally strong reputations.

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

EU governments were allowed to water down targets in their post-Covid pandemic recovery plans after they had already asked Brussels for the money, the European Court of Auditors (ECA) said on Thursday (8 October).

Of 20 milestones and targets the auditors examined, 13 were amended after the member state had already submitted its payment request. In nine of those cases, the change itself was requested after the payment application had already been made. 

The revised targets were “aligned with actual achieved outputs, which made the payment possible,” the auditors wrote in their annual report on the 2025 EU budget.

Rewriting measures

Ireland, for example, asked for a payment in December 2024. But in January 2025 it requested to cut the target for ICT graduates down from 12,450 to 10,900, citing a high administrative burden.

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

This article is paid for by Council of the Notariats of the European Union (CNUE).

An address rented in a European capital, an electronic signature obtained online, a 48-hour waiting period.

Under the proposed regulation establishing a 28th company law regime, known as ‘EU Inc.’, this could be enough to establish a company with legal personality throughout the European Union.

No share capital would be required. The founder could complete the entire process without appearing, even digitally, before a public authority or another person entrusted with preventive legal control.

There would be no personal verification of their legal capacity, of whether they understand what they are signing, or of whether they are acting on behalf of someone who wishes to remain invisible.

The company could then open bank accounts, enter into contracts, own assets and employ people across the European Union. If the company later fails to meet its obligations, creditors and employees may find that there are no assets to recover and that the person formally responsible for it was acting merely as a front man. 

This scenario illustrates the serious concerns raised by the proposal for a Regulation on ‘EU Inc.’ put forward by the European Commission and currently being examined by the European Parliament and the Council of the European Union.

The preventive checks set out in Article 14 of the commission’s proposal are largely limited to formal requirements.

There is no independent and impartial scrutiny of the founders’ legal capacity, of the lawfulness of the articles of association, or of whether the transaction complies with substantive legal requirements. Transfers of shares and capital transactions are also not subject to substantive control. Liquidation is treated primarily as an administrative formality, even though it can directly affect creditors and employees.

The consequences may extend far beyond company law.

Companies own real estate and are entered in land registers. If it is no longer possible to establish reliably who owns a company, it also becomes more difficult to establish who ultimately owns the real estate held by that company. Reliable company information therefore matters for the transparency of property ownership.

‘Not reliably verified’?

If the information in a register has not been reliably verified, others have to verify it themselves. Banks, business partners and investors may need additional legal opinions, audits and insurance. Costs that a preventive check avoids at the outset may therefore arise repeatedly at a later stage.

This would represent a shift from the European tradition of public preventive legal control towards a model that relies more heavily on resolving disputes after they arise.

Delaware is a prominent example of such an approach, supported by specialised courts and a correspondingly prominent role for litigation. Transplanting it to Europe would place additional demands on national judicial systems that lack the necessary resources.

The proposal also raises questions with regard to the recent European efforts to combat money laundering and the financing of terrorism.

The creation of the Anti-Money Laundering Authority (AMLA) is the latest milestone in this process. To create, at the very same time, a legal form with significantly reduced checks risks severely undermining these efforts.

The same applies to sanctions: their enforcement depends on knowing who is really behind a company – especially when shares are transferred. Without reliable legality control of share transfers, corporate ownership can change unnoticed and become a vehicle for sanctions circumvention.

The amendments required are straightforward. The acquis of European company law, as established by Directive (EU) 2017/1132 and recently reinforced by Directive (EU) 2025/25, should also apply to EU Inc. companies.

This means reliable identification of founders and directors, public oversight of legal compliance at the time of formation and at subsequent stages, and reliable business registers. 

Public protection

These safeguards exist for a reason.

They protect not only the parties to a transaction, but the public at large. Because they serve a public purpose, they must remain a public responsibility. Private service providers cannot replace independent preventive control carried out under public responsibility. 

How these checks are organised differs between member states. In some member states, public authorities carry them out directly. In others, the state entrusts notaries with this public function.

Notarial involvement therefore does not add another layer of control: the same public function is simply carried out by different public authorities. In many member states, a company can already be formed digitally within 48 hours, with full legal verification carried out by a public official.

The European Parliament and the Council of the European Union will decide their positions in the coming weeks.

There is still time to improve the legislative framework of EU Inc. significantly and to make it a success.

This requires digital and efficient procedures without compromising legal certainty. The rule of law is one of the European Union’s strengths. EU Inc. should build on that strength, not weaken it.

The Commission is “going a bit too fast” in unlocking €4.2bn and restarting the Erasmus+ student exchange programme in Hungary, according to budget committee MEPs.

The EU froze its financial assistance to Hungary in 2022 due to concerns about rule of law breaches and misappropriation of funds by Viktor Orbán’s government.

Green MEP from Germany, Daniel Freund, told EUobserver he “would have taken a more staged approach to not release everything in one go,” admitting that the reform agenda of Péter Magyar’s new government still has some way to go.

The commission’s proposal to unlock part of the €16.4bn in funds available to Hungary requires the green-light from the EU council, representing member states, one month after its announcement on 23 September.

Freund said that he was “happy about the changes we have seen” following his visit to Hungary on 1 October.

“Hungary needs this money, I also want Hungarians to have this money, since for years it was just going to Orbán and his cronies,” he said on Tuesday (6 October).

However, Freund and other MEPs on the fact-finding mission found that “the same risks of corruption exist,” and “there are new laws that are still fragile in their implementation,” French socialist and democrat Jean-Marc Germain told reporters in Strasbourg on Monday. 

The Parliament can serve as a pressure point, although the decision on funds is largely in the hands of the commission and the council.

“There is no real political pluralism in Hungary, which may in the long run be a reason for worrying,” he said, adding that most companies are still owned by the same few people as during Orbán’s rule.

The tone is different on the other side of the political spectrum.

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership