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In 2002, a Peer Review Program was established by the European Training Foundation (ETF) in the south-east European countries that are preparing or currently operating European Union funded CARDS (Community Assistance for Reconstruction, Development and Stabilisation) projects in the field of vocational education and training (VET). The program is designed to evaluate recent progress in VET policy development and to propose activities that could be undertaken to help bring the reform process forward. This report gives policy advice and identifies short and mid-term actions. It contains conclusions and recommendations to help policymakers in Montenegro to design follow-up activities. Education reform in Montenegro is challenged by an unstable and complex economical and political situation. Thus, the main problems are to initiate a real reform process and to ensure its continuity. The first chapter places the current VET reform debate within the national economic and political context. The second chapter discusses critical issues for reform concepts and strategies in Montenegro. The final chapter describes the review team's understanding of possible strategic change drivers and issues associated with the reform of the VET system in Montenegro. It is proposed that regional cooperation be considered as a strategy to facilitate reform.