During the collapse of the SFR Yugoslavia in the 1990s, the two Serb majority republics, Serbia and Montenegro, agreed to remain as Yugoslavia, and established a new constitution in 1992, which established the Federal Republic of Yugoslavia essentially as a
rump state, with a population consisting of a majority of Serbs. The new state abandoned the Communist legacy: the red star was removed from the national flag, and the communist coat of arms was replaced by a new coat of arms representing Serbia and Montenegro. The new state also established the office of the president, held by a single person, initially appointed with the consent of the republics of Serbia and Montenegro until 1997 after which the president was democratically elected. The President of Yugoslavia acted alongside the Presidents of the republics of Serbia and Montenegro. Initially, all three offices were dominated by allies of Slobodan Milosevic and his
Socialist Party of Serbia.
Foundation On 26 December 1991, Serbia, Montenegro, and the Serb rebel-held territories in Croatia agreed that they would form a new "third Yugoslavia". Efforts were also made in 1991 to include the
Socialist Republic of Bosnia and Herzegovina within the federation, with negotiations between Miloševic, Bosnia's
Serbian Democratic Party, and the Bosniak proponent of union – Bosnia's Vice-president
Adil Zulfikarpašić taking place on this matter. Zulfikarpašić believed that Bosnia could benefit from a union with Serbia, Montenegro, and Krajina, thus he supported a union which would secure the unity of Serbs and Bosniaks. This was due to the ongoing
Yugoslav Wars during the 1990s, which had prevented agreement being reached on the disposition of federal assets and liabilities, particularly the national debt. The Government of Yugoslavia supported Croatian and Bosnian Serbs in the wars from 1992 to 1995. Because of that, the country was under economic and political sanctions. War and sanctions resulted in economic disaster, which forced thousands of its young citizens to emigrate from the country. The FR Yugoslavia acted to support Serbian separatist movements in breakaway states, including the
Republic of Serbian Krajina and the
Republika Srpska, and sought to establish them as independent Serbian republics, with potential eventual reintegration with FR Yugoslavia. The Government of FR Yugoslavia treated these republics as separate entities, and gave unofficial, rather than active, aid by transferring control of units from the now-defunct
JNA to the secessionist movements. In this way, FR Yugoslavia avoided potential accusations of committing acts of aggression against the breakaway republics recognised by the international community.
Slobodan Milošević, the
President of Serbia, did not consider himself to be at war with the breakaway republics of Yugoslavia. Following the transfer of Yugoslav Army units, Yugoslavia ceased to play an important military role in the Yugoslav Wars, barring conflicts on the border with Croatia, such as the
Siege of Dubrovnik. It instead provided economic and political aid, to avoid provoking the international community further, and to preserve the FR Yugoslavia as the republics of Serbia and Montenegro, rather than 'Greater Serbia.' In 1995, following
Operation Storm, a military offensive by the
Croatian Army, and
NATO involvement in the Bosnian War, President Slobodan Milošević agreed to negotiate, as the Serbian position within Bosnia had become substantially worse. Under threat of economically crippling the Republika Srpska, he took over negotiating powers for all Serbian secessionist movements, as well as the FR Yugoslavia. The ensuing
Dayton Agreements, signed between representatives from the Federal Republic of Yugoslavia, the
Republic of Bosnia and Herzegovina and the
Republic of Croatia, resulted in each state being recognised as sovereign states. It also provided recognition for Serbian
institutions and a rotating presidency within Bosnia and Herzegovina, and the Serbian populated areas of the former
Socialist Republic of Bosnia were absorbed into Bosnia and Herzegovina. Thus the Yugoslav Wars ended, and international sanctions on the FR Yugoslavia were lifted. Slobodan Milošević did not achieve his dreams of admitting the FR Yugoslavia to the United Nations as the successor state of the SFR Yugoslavia, as an 'outer wall' of international sanctions prohibited this.
Economic collapse during Yugoslav Wars Following the adoption of economic sanctions by the international community against the FR Yugoslavia, its economy experienced a collapse. Sanctions on fuel meant that fuel stations across the country ran out of petrol, and foreign assets were seized. The average income of inhabitants of the FR Yugoslavia was halved from $3,000 to $1,500. and hospitals lacked basic equipment. Along with this, supply links were cut, which meant that the Yugoslav economy could not grow, and imports or exports needed for industries could not be obtained, forcing them to close. The crippled state of the Yugoslav economy also affected its ability to wage war, and after 1992, Yugoslavia had an extremely limited military role within the Yugoslav Wars, due to Yugoslav Army (VJ) units being unable to operate without oil or munitions. On top of this, starting in 1992 and until 1994, the Yugoslav dinar
experienced a major hyperinflation, leading to inflation reaching 313 million percent, the third worst hyperinflation in history. Many parts of the FR Yugoslavia, including all of Montenegro, adopted the
Deutsche Mark and
Euro currencies instead of the Yugoslav dinar. International sanctions crippled the Yugoslav economy, and prevented it from playing an active role in aiding Serb breakaway republics. Following the Dayton Agreement, the UN Security Council voted to lift most sanctions, but they were reissued following the outbreak of an Albanian insurgency in Kosovo. The lasting economic impact can be attributed to the eventual downfall of the FR Yugoslavia and Slobodan Milošević's government, as well as a deeper desire in Montenegro to leave Yugoslavia.
Kosovo War In the
Autonomous Province of Kosovo and Metohija, a growing desire for independence emerged among the Albanian majority population. Already, an unrecognised
Republic of Kosova had emerged with underground institutions. In 1996, the
Kosovo Liberation Army, an Albanian militia promoting Kosovar independence, launched attacks against Serbian police stations, killing at least ten Serbian policemen in direct attacks between 1996 and 1998. The low level
insurgency eventually escalated. After Slobodan Milošević was elected President of Yugoslavia in 1997, having served his maximum two terms as President of Serbia, he ordered Yugoslav Army (VJ) units to move into Kosovo to aid in the suppression of the insurrection. The governments of the FR Yugoslavia and the US declared the Kosovo Liberation Army a terrorist organisation, following repeated deadly attacks against Yugoslav law enforcement agencies. US intelligence also mentioned illegal arms sources of the Kosovo Liberation Army, including conducting raids during the course of the
1997 Albanian civil unrest, and drug dealing. Despite this, substantial evidence now shows that the
CIA had aided in training units of the KLA, although not necessarily providing them with arms and funding. In 1998, the Kosovo War began, following increased open combat with Yugoslav police and army units deployed by Milošević. The KLA found itself heavily outnumbered and outgunned in open combat, and had to use guerrilla tactics. Serbian police and VJ units attacked KLA outposts, attempting to destroy them, as KLA units attempted to avoid direct confrontation and use terrorist attacks, including bombings and ambushes, to weaken Yugoslav control. Although unable to gain a strategic advantage, Yugoslav Army units found themselves in a tactical advantage against KLA units which lacked proper training. VJ units themselves lacked morale, and attacks were often directed against civilian targets rather than military targets. 863,000 Albanian civilians were forcibly expelled between March and June 1999 from Kosovo. 169,824 Serb and Romani civilians were estimated by the UNHCR's Belgrade office to have fled from Kosovo-Metohija to either
Serbia proper,
the Autonomous Province of Vojvodina, or
the constituent Republic of Montenegro by 20 June 1999. Out of 10,317 civilians, 8,676 Albanians, 1,196 Serbs and 445 Roma, Bosniaks, Montenegrins and others were killed or went missing in connection with the war between 1 January 1998 - 31 December 2000. The Serbian government attributed 1,953 Serbian, 361 Albanian and 266 other civilian deaths or disappearances from 1 January 1998 - 1 November 2001 to "Albanian terrorism in Kosovo-Metohija". The international community was quick to respond, issuing a
peace proposal to Yugoslavia in 1999. The agreement was seen as an essential ultimatum by
NATO to Yugoslavia, and this rejected by the Yugoslav government. NATO responded in March 1999 by ordering airstrikes against Yugoslav military targets and infrastructure, including roads, railroads, administrative buildings and the headquarters of
Radio Television Serbia. NATO's bombing campaign was not approved by the UN Security Council, for fear of a veto by Russia, which would cause controversy as to its
legality. The UN Security Council adopted
United Nations Security Council Resolution 1160, renewing arms and oil sanctions against the FR Yugoslavia, and thus crippling its economy. The effects of continuous aerial bombardment and sanctions cost the Yugoslav economy hundreds of billions of USD and eventually forced Milošević's government to comply with an agreement put forward by an international delegation.
United Nations Security Council Resolution 1244 led to substantial autonomy for Kosovo, and the establishment of a
UN mission to Kosovo, as well as the complete withdrawal of units of the Yugoslav National Army. As such, Kosovo remained an Autonomous Province of Serbia, but politically and economically independent. The damage to The FR Yugoslavia was immense, with the government estimating $100 billion in infrastructure damage, In the aftermath of the Kosovo War, a low level
insurgency continued in the
Presevo valley in southern Serbia, which had Albanian minorities. The insurgent (
UCPMB) lacked resources, and the Yugoslav Armed Forces and police were able to put down the insurgency.
Bulldozer Revolution The string of defeats, as well as a complete collapse of the Yugoslav economy, led to mass unpopularity of Slobodan Milošević and his allies in the
Socialist Party of Serbia. In September 2000, amongst accusations of electoral fraud, large scale protests struck the nation. Milošević was eventually removed from power, as his
Socialist Party of Serbia lost in the federal elections to the
Democratic Opposition of Serbia. In the aftermath, a new government in Yugoslavia negotiated with the United Nations, accepting that it was not the sole legal successor to the Socialist Federal Republic of Yugoslavia, and was allowed to join the UN. Milošević would later be put on trial for corruption and war crimes, especially during the International Criminal Tribunal for the former Yugoslavia, although he died in prison before his trial could end in 2006. His culpability remains a subject of controversy within Serbia.
Gradual dissolution In March 2002, the governments of Montenegro and Serbia, along with the Federal Republic of Yugoslavia (FRY), signed the
Belgrade Agreement, which outlined the restructuring of their mutual relations. This agreement led to the adoption of the
Constitutional Charter on 4 February 2003, officially transforming the FRY into the State Union of Serbia and Montenegro and formally retiring the name "Yugoslavia" after 74 years. The Constitutional Charter included a provision allowing either republic to hold a referendum on independence after a three-year period. On 21 May 2006, Montenegro held such a referendum. The final results showed that 55.5% of voters supported independence, narrowly surpassing the 55% threshold set by the
European Union for the referendum's validity. Voter turnout was 86.5%. Following the referendum,
Montenegro's parliament formally declared independence on 3 June 2006. == Politics ==