During the first few years of its existence, the state sought to be recognized as the sole assignee of Yugoslavia, but other former union republics opposed these claims. The United Nations rejected the request to include Yugoslavia. In the end, after the overthrow of Slobodan Milosevic from the post of president of the federation in 2000, the country abandoned these aspirations and accepted the opinion of the Badinter Arbitration Committee on joint succession. He again applied for UN membership on October 27 and was accepted on November 1, 2000.
Guide
In FRY, Slobodan Milosevic initially ruled as president of Serbia (1989–1997) and then president of Yugoslavia (1997–2000). Milosevic installed and forced the removal of several federal presidents (such as Dobrica Chosic) and prime ministers (such as Milan Panich). However, the Montenegrin government, which initially strongly supported Milosevic, began to gradually distance itself from his policies. This led to a regime change in 1996, when his former ally, Milo Zhukanovic, changed his policy, became the leader of the ruling party in Montenegro, and subsequently fired former Montenegrin leader Momir Bulatovic, who remained loyal to the Milosevic government. Since Bulatovic had been appointed central posts in Belgrade (as the Federal Prime Minister) since then, Zhukanovic continued to rule Montenegro and subsequently isolated it from Serbia. Thus, from 1996 to 2006. Montenegro and Serbia were nominally a single country. Management in every possible political, economic and social segment was carried out at the local level, in Belgrade for Serbia and in Podgorica for Montenegro.

Union of Serbia and Montenegro
As a free union, or confederation, Serbia and Montenegro were united only in certain areas, such as defense. The two constituent states functioned separately during the entire period of the existence of the Federal Republic and continued to operate within the framework of a separate economic policy, as well as using separate currencies (the euro was the only legal tender in Montenegro). On May 21, 2006, a referendum on the independence of Montenegro was held, and 55.5% of voters voted for independence. The last remnants of the former Yugoslavia, 88 years after its creation, came to an end after the official declaration of independence of Montenegro on June 3, 2006 and the official declaration of independence of Serbia on June 5. After the dissolution, Serbia became the successor of the union, and Montenegro, which regained its independence, again applied for membership in international organizations.
Consequences of the disaster
After the collapse of Yugoslavia in the 1990s, only the republics of Serbia and Montenegro agreed to preserve the Yugoslav state, and in 1992 adopted a new constitution for a new Yugoslavia. After the collapse of communism in Eastern Europe, the new state followed a wave of democratic change. It abandoned communist symbolism: the red star was removed from the national flag, and the communist coat of arms was replaced by a white double-headed eagle with the arms of Serbia and Montenegro inside. The presidency was also created in the new state, which was held by one person, originally appointed with the consent of the republics of Serbia and Montenegro until 1997, after which the president was elected democratically.
Creation of the Federal Republic of Yugoslavia
With the collapse of Yugoslavia and its institutions in the period from 1991 to 1992, the question arose of the unity of the two republics remaining in a crumbling federation: Serbia, Montenegro; as well as Serb-dominated territories in Croatia and Bosnia that wanted to remain united. In 1991, as a result of diplomatic negotiations led by Lord Carrington with six leaders, all republics, with the exception of Serbia, agreed that Yugoslavia had broken up and each of its autonomous parts should become an independent state. The Serbian government was surprised and outraged by the decision of Montenegro in favor of ending Yugoslavia, as the Bulatovich government was previously closely associated with the Milosevic government in Serbia. The collapse of Yugoslavia began in 1991, when Slovenia, Croatia and Macedonia declared independence. Then the Federal Republic of Yugoslavia was formed.
Third Yugoslavia
On December 26, 1991, Serbia, Montenegro and the Serbian rebel territories in Croatia agreed that they would form a new “third Yugoslavia”. In 1991, efforts were also made to incorporate the Socialist Revolutionary Bosnia and Herzegovina into the federation, where negotiations are being held between Milosevic, the Serbian Democratic Party of Bosnia and the supporter of the Bosnian association Adil Zulfikarpasic, the vice-president of Bosnia. Zulfikarpasic believed that Bosnia could benefit from unification with Serbia and Montenegro, so he supported an alliance that would ensure the unity of the Serbs and Bosnians. The flag of the union republic of Yugoslavia at the same time did not differ from its predecessor country.

Milosevic continued negotiations with Zulfikarpashich on the inclusion of Bosnia in the new Yugoslavia. However, efforts to integrate all of Bosnia into the new Yugoslavia virtually ceased by the end of 1991, when Isetbegovic planned to hold a referendum on independence, while Bosnian Serbs and Bosnian Croats formed autonomous territories.
Quarrel of fraternal peoples
Since 1996, the first public signs of political discord between parts of the Montenegrin and Serbian leadership began to appear. By 1998, when the Prime Minister of Montenegro, Milo Zhukanovich, took the first place in the struggle for power with the President of Montenegro, Momir Bulatovic, the republic pursued a different economic policy, adopting the German mark as its currency. In the fall of 1999, after the war in Kosovo and the NATO bombing campaign, Zhukanovic (who had so far held power in Montenegro since Bulatovic was completely ousted) prepared a draft document called Platforma za redefiniciju odnosa Crne Gorei Srbije ("Platform for redefining relations in Federal Republic of Yugoslavia "), calling for major changes in the division of administrative responsibilities within the SR of Yugoslavia, although it still officially sees Montenegro in a joint state with Serbia. Milosevic did not respond to the Platform, considering it unconstitutional.
Stress increase
Political relations in a federal state became increasingly tense, especially against the backdrop of a wave of murders of senior figures of political, criminal and state business circles in both republics (Zhelko “Arkan” Rozhnatovich, Pavle Bulatovich, Chika Petrovich and Goran Zhugich), as well as two attempts on life opposition politician Vuk Draskovic. By October 2000, Milosevic had lost power in Serbia. Contrary to expectations, Zhukanovichan’s reaction to the change of power in Belgrade was not to push the agenda outlined in his “Platform” even more, but to suddenly start insisting on full independence, thereby completely rejecting it in the process. Subsequent Montenegrin governments pursued a policy of independence, and political tensions with Serbia seethed despite political changes in Belgrade. All these passions were a logical outcome of the history of the creation of the union republic of Yugoslavia.
Confederation Creation
In 2002, Serbia and Montenegro reached a new agreement to continue cooperation, which, among other changes, promised the end of Yugoslavia. Both countries were previously part of the Federal Republic of Yugoslavia. On February 4, 2003, the Federal Assembly of Yugoslavia created a free state union, or confederation, the State Union of Serbia and Montenegro. An agreement was reached on a new constitutional charter that would provide the basis for governing the country.
Montenegro independence
On Sunday, May 21, 2006, Montenegrins voted in a referendum on independence. 55.5% supported independence. Such a number of votes in favor was necessary for the dissolution of Yugoslavia. The turnout was 86.3%, and 99.73% of the more than 477,000 votes cast were declared valid.
The subsequent declaration of independence of Montenegro (June 2006) and Serbia (June 5) put an end to the confederation of Yugoslavia and, thus, the last remaining survivals of the Union Republic.
Economic Development of the Federal Republic of Yugoslavia
The state was economically damaged due to the collapse and inefficient management of the economy, as well as a long period of economic sanctions. In the early 1990s, the FRY suffered from hyperinflation of the Yugoslav dinar. By the mid-1990s, the FRY had overcome inflation. Further damage to the infrastructure and industry of Yugoslavia caused by the war in Kosovo left the economy only half as much as in 1990. After the overthrow of the former president of Federated Yugoslavia, Slobodan Milosevic, in October 2000, the coalition government of the Democratic Opposition of Serbia (DOS) implemented stabilization measures and embarked on an aggressive market reform program. After renewing membership in the International Monetary Fund in December 2000, Yugoslavia continued reintegration with other countries of the world, joining the World Bank and the European Bank for Reconstruction and Development.

The smaller republic of Montenegro separated its economy from federal control and from Serbia during the Milosevic era. Subsequently, the two republics had separate central banks, while Montenegro began to use different currencies: it first adopted the Deutsch brand and continued to use it until it became worthless, and was replaced by the euro. Serbia continued to use the Yugoslav dinar, renaming it the Serbian dinar.
The complexity of political relations in the FRY, the slow progress in privatization, and stagnation in the European economy have damaged the economy. Agreements with the IMF, especially the requirements for financial discipline, were important elements of policymaking. Serious unemployment has been a key political and economic issue. Corruption is also a serious problem with a large black market and a high degree of criminal involvement in the formal economy.