This is the 2006 Progress Report for Montenegro by the European Commission. The report briefly describes the relations between Montenegro and the Union; analyses the political situation in Montenegro in terms of democracy, the rule of law, human rights, protection of minorities, and regional issues; analyses the economic situation in Montenegro; reviews Montenegro's capacity to implement European standards, that is, to gradually approximate its legislation and policies with those of the acquis, in line with a Stabilisation and Association Agreement and the European Partnership priorities. The period covered by this report is October 1, 2005 to September 30, 2006. Progress is measured on the basis of decisions taken, legislation adopted and measures implemented. The report is based on information gathered and analysed by the Commission.