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PM Milo Djukanovic, the longest-serving leader in the Balkans, has resigned but will remain as head of the Democratic Party of Socialists.
Djukanovic, 48, led Montenegro's campaign for independence from Serbia in 2006.
It recently received EU candidate status - a key step towards membership.
"This decision of mine is not sudden or rash, and was not reached, as certain irresponsible individuals claim for reasons known only to themselves, under anyone's pressure, either from the inside or from the outside," he said.
