The continuation of Montenegro’s European path will primarily benefit its economy, said Prime Minister Milojko Spajić during a traditional meeting with business representatives at the Chamber of Commerce (PKCG). The meeting focused on the document “Montenegrin Economy in 2024,” prepared by PKCG. Unlike previous years, no journalists were invited to this year’s gathering.
“The barriers we faced in the past will gradually disappear as we approach the EU and the single market. We should not fear this, but rather seize the opportunity. This depends primarily on us, how hardworking, smart, and strategically oriented we are,” said Spajić, who believes that Montenegro meets the conditions to join the Eurozone upon entering the EU.
Infrastructure development
The Prime Minister emphasized the importance of developing infrastructure, highlighting the continued construction of the second section of the highway, fast roads and the Adriatic-Ionian motorway. He also mentioned the revitalization of airports, noting that final bids have been invited, and the development of the Port of Bar, which the government aims to consolidate to better utilize this valuable resource.
Spajić outlined plans to address the labor shortage, a key barrier to business development, by adopting two important laws—the law on permanent seasonal workers and the law on foreigners.
Regarding the diversification of the tourism industry and extending the tourist season, the Prime Minister informed business representatives that the government had decided to lift visa requirements for citizens of Saudi Arabia and Bahrain and introduce yacht incentives. These measures are expected to boost nautical tourism and attract high-spending tourists, a move welcomed by PKCG.
He also announced the launch of the Development Bank and the Credit-Guarantee Fund, stressing the importance of adopting Montenegro’s Spatial Plan. In response to concerns raised by business leaders about abuse of sick leave, the government reported that the number of sick leave abuses had decreased by nearly a third this year.
Discussing the “Velje Brdo” project, the Prime Minister announced the launch of a website to gauge interest in the apartments to be built. He believes that the domestic construction sector should lead the development of this settlement.
The Prime Minister reiterated that all issues vital for the business environment, including the introduction of a seven-hour workday, will be addressed through dialogue with the business community.
Challenges
PKCG President Nina Drakić pointed out that in a dynamic global environment, where economies face inflationary pressures, geopolitical and trade challenges, and slowed growth, Montenegro must act swiftly and efficiently to maintain stability and leverage its comparative advantages.
“Despite these challenges, our country has been one of the fastest-growing economies in Europe over the past three years, with an average growth rate of 8.6 percent annually. This year, economic activity has slowed, with a real growth rate of 3 percent for the first nine months. The growth has mainly been driven by personal consumption, which increased by 8.3 percent compared to the previous year, fueled by rises in minimum pensions, wages, and increased lending,” said Drakić.
She noted that quarterly growth rates this year, significantly lower than last year, indicate that long-term sustainable economic growth cannot rely solely on boosting consumption.
“Our economy and society face many challenges. The intensification of dialogue with the EU, which should result in membership, will bring numerous demands and tasks we must fulfill. This further obliges us to be analytical and thoughtful when making decisions related to the economy. The Chamber’s doors are open for cooperation and agreement, as we are aware that we are the foundation for achieving sustainable economic development,” Drakić added.
Labor shortage
During the meeting, business leaders stressed the need for stronger collaboration between the government and the private sector to achieve better results and make the most of the “Europe Now 2” program.
They highlighted the labor shortage, noting that the current deficit of skilled workers seriously affects business efficiency and sustainability. They also emphasized the importance of agriculture for sustainable economic development and halting the depopulation of the north. Therefore, it is essential to encourage the development of this sector, at least doubling the agricultural budget, providing premiums, and improving road infrastructure for producers.
Concerns were also raised about the abuse of sick leave and the introduction of a seven-hour workday, which could result in additional costs.
Business representatives called for the removal of administrative barriers and the acceleration of permit issuance processes to stimulate investment and facilitate faster growth. They also highlighted the need for greater digitalization and modernization of public services to improve communication between businesses and the government, reduce bureaucracy, and enhance business efficiency. Special attention was drawn to challenges in the retail sector, including the shadow economy, difficulties in collecting receivables, and the impact of decisions to limit profit margins without consulting with businesses.
Entrepreneurs expect the swift activation of business zones to attract investment. The banking sector emphasized the importance of improving financial infrastructure, including the implementation of the SEPA system, and the need for regulatory balance to avoid negative effects on the economy.
The importance of supporting the ICT sector was also stressed, as it continues to grow and could make an even greater contribution to economic development if domestic companies are further stimulated. Business leaders emphasized the role of social dialogue as the foundation for societal stability and development, calling for reforms that would ensure the equal participation of representative social partners.
The meeting was attended by Deputy Prime Ministers Nik Đeljošaj and Vladimir Joković, Minister of Energy Saša Mujović, Minister of Labor, Employment, and Social Dialogue Naida Nišić, and Prime Minister’s Cabinet Chief Branko Krvavac.
It was noted that Đeljošaj commented on the law limiting interest rates, which aims to align with EU standards and protect citizens.
Minister Mujović highlighted the importance of completing the Trans-Balkan Corridor, which is a prerequisite for laying the second undersea cable to Italy.
Minister Nišić spoke about the significance of the law on permanent seasonal workers, which will provide various benefits for employment, and the efforts to simplify the process for obtaining permits for temporary and occasional work. She also announced the adoption of a new law on the representativeness of trade unions and business associations.
