We expect the government to create the third package of measures to support the economy as soon as possible in agreement with social partners, to adopt it at the beginning of May and to include solutions that will provide employers and entrepreneurs with business that carries minimal risks and can stop potential layoffs.
This was said yesterday to the "News" in the Union of Employers (UPCG), which analyzes the final version of the second package of state economic measures.
Prime Minister Duško Marković announced the third package of measures in 15 days. He explained that it is being prepared in cooperation with international partners and "everything that is strategically important for the Montenegrin economy will be in that package".
"We are aware that we are entering a period of long-lasting economic crisis that we will face every day and month", said the Prime Minister, emphasizing that it will be difficult "never more difficult in the last 50 years" and that everyone should bear the burden of the crisis, and that does not mean only profit.
Yesterday, the government adopted new measures to support citizens and the economy, and the prime minister said that the gross effect of the package is worth 75 million euros, or 45 million euros in net amount.
Support includes wage subsidies for employees in closed activities (including the tourism sector) and those at risk (entrepreneurs, micro, small and medium-sized enterprises with a significant decrease in income) for April and May, as well as for those who are in quarantine or self-isolation and who remain with children who are not older than 11 years old due to closed schools. A portion of pensioners and the unemployed who do not receive benefits will receive 50 euros each, help has been announced for the socially disadvantaged, agricultural workers, fishermen, and the media through the IRF credit line, along with lines for editors, for which the procedures must also be relaxed...
"Vijesti" gives the details of subsidies and other packages of the state in a graphic display.
The Union of Free Trade Unions (USS) told "Vijesta" that they were dissatisfied because their most important demands were not respected again. A special problem for them is that there is no automatic extension of fixed-term employment contracts during the epidemic, which was introduced by many European countries to protect employees from dismissal, i.e. non-renewal of contracts.
They also complain that subsidies are given in relation to the minimum wage instead of 70 percent of the average wage (365 euros).
In the consulting firm Fidelity, they believe that the Government's subsidies per worker should have been at least 322,65 euros, which is half of the March consumer basket for a family of four.
How to get a subsidy
Closed businesses are all those that had to stop working due to state measures to combat the coronavirus epidemic (cafes, restaurants, hairdressers, beauticians, boutiques, fitness centers, taxi drivers, shopping centers, children's playhouses, betting shops...).
The application for applications for subsidies will be in operation from May 1. Companies and entrepreneurs submit subsidy requests by the 15th of the month for the previous month electronically through the electronic service "Subsidy Allocation Program". This service will be implemented on the portal of the Tax Administration. The request is submitted using a digital certificate with the obligation to first submit the IOPPD form. The list of all activities that are entitled to subsidies, as well as explanations about this right, are on the Government's website.
Minister of Economy Dragica Sekulić explained that the support program includes six types of subsidies and is aimed at over 100.000 employees in Montenegro and several thousand entrepreneurs, micro, small and medium enterprises.
"The company submits a request for all employees, and an employee of the company can exercise the right only on one basis in one month. The money is paid into the bank employee's account and cannot be subject to forced collection," Sekulić explained.
Employers welcome the fact that the Government recognized the demands of the economy, and included a part of it in the adopted set of measures, among which is the fulfillment of the request for a subsidy of 100 percent of the minimum wage in the gross amount for employees in closed activities, including the tourism sector.
"The new IRF credit lines are yet to be created, so any reaction at this point is premature. Through the announcement of the Government's task given to the IRF in that part, we hope that it will also be realized in accordance with the expressed expectations of our membership. The losses suffered by businessmen these days are so great that, for a number of them - especially the micro and small business sector - they have exceeded their strength and it will be very difficult to rehabilitate them by the end of the year. That is why one of the important measures that indicates that our request has been heard is the one that refers to the announcement of the relaxation of work ban measures. Although the list of economic activities for which the work ban will be lifted has yet to be announced, we hope that it will be as long as possible", said UPCG.
Those who can - let them provide something
Marković once again called on entrepreneurs and companies, especially the banking sector, to engage the acquired capital and realized profit and return it to economic flows, where it is most needed.
"Thus, we will preserve man as the most valuable resource, preserve companies and be ready for a new development momentum when the time comes. Success requires an alliance between the state and the economy, collectives and individuals, and global risks have shown us that without solidarity, even the strongest and most powerful easily stumble," said Marković.
He believes that everything must be done in Montenegro to organize production so that they do not depend on others.
"The message to our partners who say that we need to give money and help is that the UPCG, the Chamber of Commerce and the Association of Managers offer us programs to start production in Montenegro, and the Government will provide the money," added Marković.
Deputy Prime Minister and Minister of Agriculture Milutin Simović said that the package of support for agriculture and fisheries is worth 17 million. He pointed out that the Government will buy surplus agricultural products, that budget consumers will give priority to domestic products in their purchases... Minister of Labor and Social Welfare Kemal Purišić indicated that they are in charge of one-time assistance of 50 euros each for about 16.000 unemployed and part pensioners who receive a balanced pension in Montenegro and another country, additional subsidies for electricity to those who receive them (details in the "News" graphic display).
The first - March package of measures, among other things, referred to the postponement of tax and credit obligations for up to 90 days, the payment of 50 euros to pensioners with the lowest income and those with material security.
IRF credit to the media, they expect an offer for ACG in a few months
The Prime Minister said that the state Investment and Development Fund (IRF) will prepare a special credit line for the media, the conditions for which will be different from those that the fund gives to businessmen.
"In this situation, the media should not ax themselves for their work and salaries," said Marković.
Minister Radunović indicated that the IRF is in charge of working with the Central Bank on more relaxed procedures for approving loans to the economy by April 30.
Marković reminded that this year he does not expect serious income from the tourism industry, stating that it is ungrateful to give estimates on the amount of losses from tourism now, and that the government's intention is to preserve that sector as much as possible.
He expects that in a few months there will be an offer on the table for the long-term lease of the state Aerodorm (ACG).
120 million can be obtained from the EBRD
The European Bank for Reconstruction and Development (EBRD) is ready to support Montenegro with a package of 120 million euros, it was announced during the conversation between Montenegrin President Milo Đukanović and EBRD President Suma Chakrabarti.
"At this moment, the framework support package of 120 million represents a good opportunity for the private sector, but also for the continuation of infrastructure projects of interest to the state or individual local governments," Đukanović pointed out.
Officials get less pay for two months, half a million savings
The Minister of Finance, Darko Radunović, said that the salaries of public officials who are in the Law on Salaries in the Public Sector in job groups A and B will be reduced by 50 percent. This reduction is about half a million euros and it covers 223 officials. It refers to May and June, that is, while, says Radunović, the second package of measures lasts. Their current basic salaries amount to over 1.000 to around 2.100 euros.
The UA category includes the presidents of the Government, the Assembly, the Supreme Court and the Constitutional Court. The UB category includes the Supreme State Prosecutor, President of the Senate of the State Audit Institution, Vice Presidents of the Assembly and Government, Deputy Presidents of the Supreme and Constitutional Court, Ministers, Members of Parliament, Chief Negotiator for the EU, Supreme and Constitutional Court judges, State Prosecutors, Chief Special Prosecutor, Presidents of the Judicial Council and the Court of Appeal, members of the Senate of the SAI, the Protector of Human Rights and Freedoms, directors of the ANB and KAS, general secretaries of the Government, the Assembly and the Constitutional Court, heads of the cabinet of the Prime Minister, the President of the State and the Parliament, other holders of judicial and prosecutorial functions...
In March, it was decided to abolish the variables and fees from the commissions for the public sector. The minister announced the rebalancing of the budget for May, and said that in the first week of May there will be an operational guarantee from the World Bank of 80 million.
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