The State Union of Serbia and Montenegro was a political entity formed in 2003, replacing the former Federal Republic of Yugoslavia. It consisted of two republics: Serbia and Montenegro, and aimed to create a more cooperative relationship between the two. The union was characterized by a shared government and common institutions, although each republic maintained its own administrative structures. The state union faced various challenges, including differing national identities and political aspirations. In 2006, a referendum in Montenegro led to its independence, effectively dissolving the union. This marked the end of the State Union of Serbia and Montenegro, allowing both nations to pursue their own paths.