Montenegro Cabinet’s meeting

    Podgorica, Montenegro (18 June 2015) – At today’s session, Montenegro’s Cabinet adopted the Spring Analysis of Macroeconomic Trends and Structural Reforms – 2014. The analysis covers the implementation of the economic policy for 2014 and the first quarter of 2015, while the macroeconomic and fiscal projections stem from the recently adopted macroeconomic and fiscal policy guidelines for the period 2015-2018, updated by preliminary data for 2014, which led to minor changes in the indicators as well as in changes in nominal GDP for the period 2014-2018. At the same time, the analysis provides an overview of structural reforms and sectoral policies having been implemented in the reporting period, with suggestions for their improvement. It shows that the overall real growth in 2014 was 1.5% and nominal growth amounted to 2.9%. Short term indicators of the real sector and data on employment and earnings show that real GDP growth in the first quarter of 2015 could be between 3.2 to 3.5%, which is in line with the annual growth projections.

    The session noted that, primarily due to the slowdown of some capital investment, the estimated GDP growth for 2015 had not been reached. In order to overcome historical backwardness of the Montenegrin economy and boost its dynamic growth, the government stressed the need to persevere macroeconomic stability, coming period. Sustainability of public finances, limiting the public debt growth, reducing tax burden and improving the investment environment remain priorities of Montenegro’s fiscal policy, the today’s session concluded.

    The Government adopted the Information on the award and implementation of grants for sub-projects of research and development project titled “Montenegro – Higher Education and Research for Innovation and Competitiveness”, which will be funded by the World Bank loan worth EUR 2.6 million. The aim of this project is to strengthen quality and relevance of higher education and research in Montenegro through reforming the system of financing and ensuring quality of higher education, and strengthening research and development capacities.

    At the proposal of the Governing Board of the University of Montenegro, the Government reached a decision on the number of first-year students to be admitted in 2015-2016 and financed from the budget of Montenegro. The right to be financed from the budget will have 1,619 students, while 2,089 places will be available for self funded- students. Total number of students will be reduced by 800, including foreign students.

    Among other things, the Cabinet discussed the redundancy issue in the Adriatic Shipyard AD Bijela and adopted conclusions reading that all tax liabilities and contributions should be settled for every employee who terminates employment voluntarily.

    Source: Government of Montenegro