We are building a knowledge-based economy

The first 100 days of the Ministry of Economic Development were marked by the launch of structural reforms and support to citizens and the economy through a larger package of measures, increased minimum salaries, encouraged new employment, while working on ensuring a successful tourist season, strengthening the business environment and improving innovation system.

Minister of Economic Development Jakov Milatović, within the Government's video campaign "Potpisujem" (I sign) on the first 100 days of work, sad that Montenegro recorded the highest economic decline in Europe during the global crisis caused by the coronavirus.

"The decline of the economy of more than 15% was caused by the pandemic, but also by bad policies, which further hampered the entire economic activity. That is why we have created a package of support measures that aims to help citizens, support the liquidity of the economy and employment, but also encourage new employment," Milatović reminded. Support to the economy and citizens in the amount of over EUR 160 million is significantly higher and more comprehensive than the previous ones, and it provides assistance to more than 100,000 citizens. Pensioners with incomes of less than EUR 222 received EUR 50 each, and the unemployed persons received EUR 100 each. Certain tax obligations were postponed, while new employment has also been encouraged through strong tax breaks.

When it comes to tourism activity, he pointed out that it collapsed last year and that, in addition to the pandemic, the often politically motivated wrong decisions of the previous government also contributed to that, primarily in the area of border management. In order to support the tourist activity, subsidies for tour operators in the amount of EUR 150,000 are being awarded and vouchers worth EUR 5 million are being realized. A programme of additional interest rate subsidies has been created during the grace period for loans in the field of tourism and hospitality, whose implementation will further support this activity.

"We are doing everything to make this summer season successful. In conditions of uncertainty, people travel to those places they know well, and that is why we are counting on the return of tourists from the region and Russia, but also on tourists from Western European countries," Milatović emphasised.

In these 100 days, structural reforms have been launched which are the foundation of a rapid economic recovery.

"We have mobilized all the knowledge and available processes to support small businesses, improve corporate governance, reform the labor market, strengthen the business environment, improve the innovation system to raise the stagnant economy," Milatović said.

The Government has declared this year the year of social justice, and in that spirit, the minimum salary has been increased to EUR 250, while at the same time we are working to reduce the tax burden on the economy.

"This is just the beginning. We are building a knowledge-based economy," Milatović concluded.