Federal Republic of Yugoslavia (1992–2003) Savezna Republika Jugoslavija Савезна Република ЈугославијаState Union of Serbia and Montenegro (2003–2006) Državna Zajednica Srbije i Crnе Gore Државна Заједница Србије и Црне Горе
Serbia and Montenegro (Serbian: Srbija i Crna Gora / Србија и Црна Гора, SCG / СЦГ), officially the State Union of Serbia and Montenegro (Državna Zajednica Srbija i Crna Gora / Државна Заједница Србија и Црна Гора), was a country in Southeast Europe, created from the two remaining federal republics of Yugoslavia after its breakup in 1992. The republics of Serbia and Montenegro together established a federation in 1992 as the Federal Republic of Yugoslavia (FR Yugoslavia or FRY; Savezna Republika Jugoslavija / Савезна Република Југославија), a name which the union held until February 2003.
The FRY was initially dominated by Slobodan Milošević as President of Serbia (1989–1997) and then President of Yugoslavia (1997–2000). Milošević installed and forced the removal of several federal presidents (such as Dobrica Ćosić) and prime ministers (such as Milan Panić). However, the Montenegrin government, initially enthusiastic supporters of Milošević, started gradually distancing themselves from his policies. That culminated in regime change in 1996, when his former ally Milo Đukanović reversed his policies, became leader of Montenegro's ruling party and subsequently dismissed former Montenegrin leader Momir Bulatović, who remained loyal to the Milošević government. As Bulatović was given central positions in Belgrade from that time (as federal Prime Minister), Đukanović continued to govern Montenegro and further isolated it from Serbia. Thus from 1996 to 2006 Montenegro and Serbia were only nominally one country—governance at every feasible level was conducted locally, in Belgrade for Serbia and in Podgorica for Montenegro.
A loose union, Serbia and Montenegro were united only in certain realms, such as defence. The two constituent republics functioned separately throughout the period of the Federal Republic, and continued to operate under separate economic policies, as well as using separate currencies (the euro was the only legal tender in Montenegro). On 21 May 2006, the Montenegrin independence referendum was held, and 55.5% of voters voted in favour of independence. The state union came to an end after Montenegro's formal declaration of independence on 3 June 2006, and Serbia's formal declaration of independence on 5 June. After the dissolution, Serbia became the legal successor of the union, while the newly independent Montenegro re-applied for membership in international organizations.
Even when Serbia and Montenegro was known officially as the Federal Republic of Yugoslavia (from 1992 to 2003), some nations, such as the United States, had referred to it as Serbia and Montenegro as their governments viewed its claim to Yugoslavia's successorship as illegitimate.