Press release from the 129th Cabinet session

At its 129th session held today and chaired by Prime Minister Milojko Spajić, the Cabinet adopted the Draft Law on the Final Budget Account of Montenegro for 2025. During the discussion, it was emphasized that the growth in budget revenue collection in 2025 confirms strong economic activity, a reduction in the grey economy, and improved tax compliance, thereby ensuring a stable and favourable public finance outlook for Montenegro and strengthening confidence in fiscal sustainability. Concrete results achieved already in the first year of implementation of the Government’s Fiscal Strategy, through measures such as the write-off of interest on tax liabilities, the expansion of excise products, the introduction of a new VAT rate in tourism, and enhanced collection of personal income tax, have created a solid foundation for further economic growth. According to preliminary data from the Statistical Office of Montenegro (MONSTAT), the gross domestic product in 2025 is estimated at a nominal amount of EUR 8,170.7 million. Current revenues in 2025 amounted to EUR 2,806.3 million, exceeding the planned level by 1.06% and accounting for 34.3% of GDP. It is important to note that, during the reporting period, almost all categories of current revenues recorded growth compared both to the planned amounts and to the previous year. Among other indicators, the Final Budget Account shows that budget expenditure in 2025 amounted to EUR 3,187.3 million, representing 39% of GDP, while the cash budget deficit stood at EUR 313.7 million, accounting for 3.8% of GDP.

The Cabinet also adopted the Draft Law on Amendments to the Law on Public Procurement, together with the Report on the Public Consultation. It was noted during the discussion that the Law on Public Procurement is one of the key systemic laws ensuring the lawful, efficient and transparent spending of public funds. Given the importance of public procurement for the functioning of public administration, the business environment and public trust in institutions, as well as Montenegro’s obligations in the process of accession to the European Union, the need arose for further improvement of the existing legislative framework. In this regard, the proposed amendments aim to strengthen the integrity of the public procurement system, enhance the anti-corruption framework, and further align national legislation with the European Union acquis, as well as with the recommendations under Chapter 5 – Public Procurement and Chapter 23 – Judiciary and Fundamental Rights.

The Cabinet adopted the Draft Law on Air Protection. The adoption of the new law is necessary for further alignment with the European Union acquis, particularly with Directive (EU) 2024/2881 on Ambient Air Quality and Cleaner Air for Europe, which is an obligation of Montenegro under Chapter 27 – Environment and Climate Change, as well as to clarify institutional competencies and further improve monitoring and planning of emission reduction measures and public information. The draft law aims to enhance the protection of human health and the environment, the monitoring system, measurement and assessment of air quality, reduction of major pollutant emissions, data exchange, international reporting, inspection oversight, and the legal framework for access to justice and compensation for health-related damages.

The Cabinet adopted Draft Amendments to the Draft Law on the Management of State-Owned Enterprises. The amendments recognize the role of the competent ministries in conducting periodic analyses of the portfolio of state-owned enterprises and the need for the ministries responsible for a particular sector to provide opinions on the results of these analyses. The amendments also specify that competent ministries are involved in the preparation of the strategy for exercising state ownership in the relevant enterprises. Furthermore, it clarifies that the provision stipulating the continuation of duties until the end of the commenced mandate does not apply to members of the governing bodies of enterprises whose governing bodies or the enterprises themselves cease to exist under this law.

The Cabinet reviewed the Draft Law on Amendments to the Law on Domestic Trade, submitted to the Parliament by MPs Nikolla Camaj and Artan Çobi, and concluded that the proposed amendments should be adopted. The draft law provides the legal basis for the adoption of subordinate regulations to further regulate certain conditions for conducting trade, define the classification of commercial premises, and organize traders’ records. The proposed measures will contribute to greater legal certainty and more effective inspection oversight.Furthermore, the obligation to adopt these amendments in the second quarter of 2026 is an integral part of the Negotiating Position for Chapter 3, which was provisionally closed in December 2025.

The Cabinet adopted the Regulation Supplementing the Regulation on Job Groups and Salary Coefficients for Police Officers. During the discussion, it was emphasized that the purpose of adopting this regulation is to align it with the Law on Amendments to the Law on Internal Affairs, by formally recognizing the newly introduced initial police rank – Junior Police Officer – and determining the salary coefficient for this rank. This ensures a clearer hierarchical structure and a fairer salary calculation system, while additionally strengthening the efficiency and professionalization of the police service.

The Cabinet adopted the Regulation Amending the Regulation on the Selection of NGO Representatives in Working Bodies of State Administration Authorities and the Conduct of Public Consultations in the Preparation of Laws and Strategies. With the adoption of this amendment, when selecting NGO representatives for working bodies of state administration authorities and conducting public consultations in the preparation of laws and strategies, NGOs will no longer be required to provide proof to the state administration authority that more than half of the members of the NGO’s governing body are not public officials, nor that the NGO representative in the working body is not a public official.

The Cabinet adopted the Decision on the Establishment of an Inter-Ministerial Working Group for the Analysis of the Situation in the Field of Recognition of Foreign Educational Qualifications, i.e., the equalization of qualifications and the provision of recommendations to competent authorities. It was emphasized that, given the importance of this field for lawful and proper employment in state administration authorities, public institutions, and other entities performing public functions, as well as the need to strengthen citizens’ trust in the education and public sector employment system, a comprehensive analysis of the current situation is necessary. The task of the Working Group will include collecting relevant data and documentation on the educational qualifications of employees in the public sector, analyzing the collected information, and preparing recommendations for the improvement of the normative and institutional framework in this field.

The Cabinet adopted the Decision amending and supplementing the Decision on the introduction of international restrictive measures established by Decisions of the Council of the European Union and Regulations of the European Union in view of the actions of the Russian Federation destabilising the situation in Ukraine. The adopted amendments update the existing legal framework through which these measures were previously transposed into the legal system of Montenegro, in line with the latest decisions and regulations of the European Union. By adopting this Decision, Montenegro confirms its full alignment with the current restrictive regime of the European Union with regard to the Russian Federation.

The Cabinet gave its consent to the Statute of the Limited Liability Company for the Management of the “Ulcinj Salina” Nature Park, Ulcinj, thereby completing the requirements for the establishment of the Nature Park management body, which is one of the obligations defined by the Action Plan for meeting the closing benchmarks under Chapter 27 – Environment and Climate Change.

The Cabinet adopted management plans for the national parks “Biogradska Gora”, “Durmitor”, “Lovćen”, “Skadar Lake” and “Prokletije” for the period 2026–2030. During the discussion, it was emphasized that the management plans represent a continuation of activities aimed at improving the management system of protected areas, with a particular focus on biodiversity conservation, enhancement of the monitoring of natural values, sustainable use of space and natural resources, development of sustainable tourism, improvement of infrastructure, and strengthening cooperation with local communities and other relevant stakeholders. Based on the analyses conducted, the management plans for each national park define general activities that will be elaborated in greater detail through the annual management programmes of the Public Enterprise for National Parks of Montenegro (JPNPCG). The defined activities relate to improving the protection of habitats and species, marking the boundaries of protected areas, enhancing monitoring systems, adapting and constructing the necessary infrastructure, promotion, education, improvement of the tourism offer, cooperation with key stakeholders, as well as strengthening the administrative and institutional capacities of national park managers. The financing of the planned activities is envisaged from multiple sources, including the Budget of Montenegro, JPNPCG’s own revenues, the Capital Budget, donations, as well as international funds and projects. The total estimated budgetary support for all five national parks for the period 2026–2030 amounts to EUR 5,326,700.

The Cabinet adopted the General Crisis Management Plan for crisis situations in the field of food and feed safety. It was emphasized that the preparation of the updated plan is one of the obligations within the accession negotiations with the European Union and one of the conditions for the provisional closure of Negotiating Chapter 12, which Montenegro plans to provisionally close by October 2026. The new plan is aligned with European Union standards and incorporates all recommendations of the European Commission, thereby further strengthening capacities for the efficient management of crisis situations in this field.

The Cabinet gave its consent for the execution of preparatory works for the construction of a facility of public interest, the Bar–Boljare Motorway, Mateševo–Andrijevica section. During the discussion, it was emphasized that the route of this section largely passes through a mountainous area, adapted to the terrain configuration and the designed gradients. The design speed on the future motorway is 100 km/h, with dual carriageways and four traffic lanes. The preparatory works will commence immediately upon obtaining the consent and will be carried out along the entire route. They include fencing off the construction site, constructing auxiliary access roads for the site, connecting to the necessary utility infrastructure, preparing locations for the delivery of materials, clearing the terrain, marking the construction site area, removing vegetation, as well as the excavation, loading and transportation of earth material.

The Cabinet adopted the Decision on the selection of the entity responsible for marking liquid petroleum fuels and biofuels. The introduction of the marking procedure for liquid petroleum fuels and biofuels is envisaged by Montenegro’s Fiscal Strategy for the period 2024–2027, as a measure aimed at improving fuel trade control, combating illegal trade and strengthening fiscal discipline. The Consortium consisting of “Labex Analytics” D.O.O., “Inspekt RGH” Sarajevo, Institute for Ferrous Metallurgy Nikšić, “Institut za transport” D.O.O. Podgorica and “Authentix” Inc., Addison, Texas, USA, was selected as the entity responsible for marking liquid petroleum fuels and biofuels. As the Energy Law stipulates that the mutual rights and obligations of the parties shall be regulated by contract, the Decision establishes the legal basis for regulating these relations, as well as the duration of the contract for a period of five years.