Using Eli Gateva’s theory of the EU enlargement’s conditionality and the balance in the incitement structure between the terms of rewards and threats, the purpose of the study is to examine the EU commission’s reports of the ongoing negotiation process with Serbia and Montenegro. Furthermore, the study discusses Serbia’s and Montenegro’s relative positions concerning an EU-membership. Through a content analysis of the EU commission’s 2020 reports on Serbia and Montenegro, the study examines how the EU has used rewards and threats on Serbia and Montenegro, and what differences and similarities exist. The study finds that the EU has used different forms of rewards and threats according to Eli Gateva’s Model to conform the respective countries in the EU’s preferred direction. The study mostly discovered similarities but also some differences in how the EU has used rewards and threats on Serbia and Montenegro. The study also finds that Montenegro appears to be closer to a membership than Serbia.