He said that the assessment of the conditions in which businesses conduct their business activities is the most important element of the many challenges that society faces, stating that one of the main characteristics of the business environment is its predictability.
"Business in market conditions is inherently unpredictable and associated with many internal and external influences and risks, so it is always desirable that the part of business conditions that concerns regulations and the implementation of state policies, which can be made less unknown and risky through the state's strategic approach, be made predictable to the extent possible," explained Nikolić.
He emphasized that this request from the business community is particularly understandable, considering that for making long-term business and investment decisions, it is extremely important to consider and assess the impacts over as long a period as possible.
Mirza Muleskovic, an economic analyst, said that research by business associations has shown that the Montenegrin business environment has not changed significantly in the last few years, with minimal improvements, and that it is characterized by the same, systemic, barriers.
"In terms of predictability of the business environment, the rule of law stands out in particular, which should ensure quality, stable regulations, equal treatment for all, and effective protection of employers. However, in almost all research, the rule of law is recognized as a key barrier," said Mulešković.
He added that research continues to recognize the "great lack of involvement" of the economy in the decision-making process, weaker influence on changes in legal regulations, as well as frequent and ad hoc changes.
"As a small economy that cannot offer a large market to its economy, Montenegro must have an attractive and predictable business environment, which at the moment, according to the voice of the economy and investors, it does not," concluded Mulešković.
Nina Drakić, President of the Chamber of Commerce of Montenegro, said that a strategic approach to policymaking is key, through clearly defined development priorities and a stable regulatory framework that will last longer than one budget cycle.
"Such an approach, especially if supported by well-designed incentives, for example for sectors such as energy, tourism, manufacturing or ICT, can strengthen our competitiveness in the long term and attract capital that seeks security, clarity and predictability," Drakić explained.
She added that "economy is not looking for privileges, but for stability, clarity and equal treatment. "If we ensure that companies know the 'rules of the game', and that these rules are not changed suddenly and without consultation - we can count on investment and growth. Transparency and dialogue are not a matter of form, but are key elements of a competitive economy."
Nikola Perišić, member of the Board of Directors of Crnogorska Komercijalna Banka responsible for the Corporate Banking Sector, said that for a financial institution such as CKB, which actively supports all key sectors of the Montenegrin economy, predictability of the business environment is not only desirable, but also necessary.
"When the rules of the game are clear and stable, our clients can plan more ambitiously, and we as a bank have a stronger basis to support them, through financing, consulting and long-term cooperation. Uncertainty slows down decisions. Companies postpone investments, and banks become more cautious. That is why we believe that it is the responsibility of all of us - the state, the economy and the financial sector, to build an environment of trust, understanding and stability," said Perišić, emphasizing that CKB is ready to be a partner in this process, because "a strong economy rests on clear rules and reliable relationships. And that is the path we should all take together."
Angela Gajević, Acting Director General of the Directorate for Improving Economic Competitiveness at the Ministry of Economic Development, said that this year, special attention will be focused on incentive measures to strengthen domestic production, with the aim of reducing foreign dependence, import substitution, stimulating innovation, technological development and creating new jobs.
"This approach will not only contribute to economic growth, but will also enable stronger resilience of the economy to external shocks, contribute to reducing unemployment and strengthening the competitiveness of the domestic economy," said Gajević.
, a full professor at the Faculty of Economics, University of Montenegro, said that during the prolonged negotiations on accession to the European Union, observing the movement of GDP per capita, economic convergence is recognized, but that it is not happening at a satisfactory speed.
"Also, data on foreign trade, as well as the volume of FDI from EU countries, show that significant economic integration has not yet occurred and that the extended accession to the Union has not led to the strengthening of foreign trade relations with EU partners, not even through the Stabilization and Association Agreement. The causes of this situation can be found in the insufficient competitiveness of the Montenegrin economy to produce and place goods on European markets, as well as in the insufficient attractiveness to attract reference investors from the EU," said Đurović, explaining that she was referring to the growing uncertainty and high degree of unpredictability of the legal and economic framework during the implementation of investments, to which investors from the EU react particularly negatively.
One of the attendees, the founder of the Šajo Group, Žarko Rakčević, also joined the discussion, emphasizing the importance of holding such panel discussions and saying that unpredictability when it comes to tax policies is unacceptable. He supported this with concrete examples from practice and relations with the tourism industry.
"Tourism, as the most important economic sector, had the status of a public activity, and the construction of 4- and 5-star hotels was strategically recognized as an interest of the Montenegrin economy, so they were exempt from paying utilities during construction. Now we have a situation where utilities are being reintroduced for these hotels, while simultaneously announcing incentives for some investments that could be mostly housing construction, which shows selectivity in decision-making," Rakčević concluded.
He also cited the example of the decision to increase the VAT rate in tourism. In addition to the fact that the rate is not competitive with neighboring countries, he considered it unacceptable for a country for which tourism is a strategic activity to double VAT without notice, with implementation as early as next year, for which arrangements have already been offered and even sold.
( BI Consulting )
