Defence reforms in Montenegro lauded as the country moves closer to NATO accession.
Participants in foreign conflicts can receive jail sentences of at least five years.
The proposed law, which would be supported by a loan from the World Bank, is being considered by Parliament. In other business news: optimism grows for the economy's future in southeast Europe.
Serbia is increasing efforts to fight terrorism, which is crucial for citizens' safety, EU integration and resistance to ISIL, experts and officials say.
Political analysts expect the pro-European coalition will win the upcoming parliamentary election in Moldova.