The President of Montenegro, Jakov Milatović, has submitted an initiative to the government urging immediate measures aimed at reducing prices and improving the standard of living for citizens.
Milatović stated that the recent boycott of retail chains clearly demonstrates that rising prices continue to be a heavy burden for citizens, with basic food items often more expensive than in much more developed European countries.
He proposed ten measures to the government, including mandatory price margin displays for products.
“To increase transparency and prevent unjustified price hikes, it is essential to legally require retailers to display the margin on each product. This would allow citizens to see the actual cost structure and compare prices across different retail chains,” Milatović stated in his initiative.
He also proposed limiting profit margins for key products to single digits.
“For essential items like bread, milk, sugar, and flour, it is necessary to impose a cap on retail margins. This would prevent excessive profits from basic living necessities,” Milatović emphasized.
Another proposal was the establishment of commodity reserves. To ensure stable market supply and prevent shortages of products with capped margins, the government must focus on forming and timely replenishing these reserves.
Milatović also suggested creating a website to compare prices of essential goods.
“It is necessary to establish a central, regularly updated online platform where citizens can compare prices of essential products in the largest supermarkets. This would enhance market competition and make it easier for consumers to find the best offers,” he said.
He proposed a VAT (value-added tax) refund for disadvantaged citizens through social cards.
“For socially vulnerable groups, it is essential to provide partial or full VAT refunds on a selected basic food basket. Therefore, the government should urgently begin the development and implementation of a social card system,” Milatović suggested.
He also called for increased subsidies for domestic production.
“Strengthening domestic agriculture is crucial for market stability and sustainable prices. The agricultural budget should be at least 100 million EUR to further increase subsidies and support programs for local agricultural producers, boost local production, and reduce dependence on imports,” Milatović stated.
The proposed measure also includes benefits for sellers of domestic products.
“Consider offering incentives to sellers who primarily sell domestic products. At the same time, in cooperation with municipalities, it is important to establish distribution centers where local producers can directly market their products,” Milatović added.
Another measure is to examine reducing VAT on basic products.
“It is essential to define a list of basic household products, or categories within the ‘decent living basket,’ and consider reducing VAT on such items,” Milatović said.
He also highlighted the need to analyze margins and the reasons for higher prices in Montenegro compared to the EU.
“It is necessary to conduct a comprehensive analysis of margins and key factors that result in higher prices in Montenegro than in EU countries. The results should be clearly communicated to citizens, along with concrete proposals for addressing the issue,” Milatović stressed.
Finally, as the tenth measure, Milatović proposed strengthening the role of the Consumer Protection Center and related organizations.
“It is necessary to enhance the capacity of institutions and organizations dedicated to consumer protection. The Consumer Protection Center and similar associations must be granted wider authority and more resources to play an active role in price control and improving market conditions,” Milatović concluded.
In his letter to the government, Milatović emphasized that only through joint efforts can we contribute to a more economically stable and fairer Montenegro.
