Today, the Government established the Intervention Procurement Plan, the Bill on Temporary Measures to Limit the Prices of Products of Special Importance to People's Life and Health, and other temporary economic measures in response to the crisis caused by the war in Ukraine.
The Ministry of Economic Development announced that the Government, bearing in mind that there is a significant increase in the prices of food, energy and raw materials, has created a set of measures to maintain economic stability and preserve the standard of living, which has been significantly improved by the Europe Now program.
The measures were adopted at the proposal of the Ministries of Economic Development, Finance and Social Welfare and Agriculture, Forestry and Water Management.
"Montenegro, as an import-dependent and collapsing economy for decades, is already feeling the consequences of what is happening in Ukraine, which is why it is necessary to make decisions that will help citizens in the short term," the announcement states.
In order to create a legal basis by which the Government will be able to introduce temporary measures to mitigate the negative effects of price increases, the Ministry of Economic Development has prepared a Bill on Temporary Measures to Limit the Prices of Products of Special Importance to People's Life and Health.
"That law stipulates that the Government, in cases of serious inflationary risks that threaten the living standards of citizens and economic activity, can determine the list of products, the maximum retail prices that will apply to all retail chains and the duration of the temporary measure by means of a by-law," the announcement states.
The choice of products that will be on the list will depend on the Government's assessment at the given time, based on detailed analyses. The Ministry of Economic Development has already developed a special methodology for monitoring the prices of basic foodstuffs on a monthly basis, and thus has information on prices and margins for basic food items.
The government is obliged to review the decision periodically, at least quarterly.
At today's session, support measures for the economy and citizens were determined in the amount of 13 to 50 million euros, depending on their duration.
"The measure of reducing excise duty on fuel by up to 40 percent will contribute to ensuring the stability of fuel prices in the amount of up to five million euros per month. A measure to reduce the value added tax (VAT) rate for basic foodstuffs with zero percent VAT for the sale and import of flour and edible sunflower oil and a reduction of the VAT rate from 21 percent to seven percent for salt, in the amount of about three million euros", specified the Ministry.
The Ministry of Agriculture, Forestry and Water Management decided on additional subsidies for the production of cereals in the amount of 350 thousand euros, for the production of late potatoes, which are treated as a staple food, in the amount of 150 thousand euros, the allocation of free greenhouses for the production of vegetables in the amount of 500 thousand euros and the allocation of agricultural vouchers to registered agricultural producers worth 200 euros in the total amount of four million euros.
In addition, the Ministry of Economic Development has prepared an intervention procurement plan that the Government can activate in case of problems in supplying the market after making a decision declaring such a situation in the territory of the entire country or in one part of it.
"The plan prescribes the measures, type, quantity and value of goods for which it is estimated that there is a problem in the supply, as well as the bearers of realization by municipalities," the statement added.
The procedure for supplying the Montenegrin market with wheat, basic wheat products, edible oil, sugar and other products is regulated by the Law on Intervention Procurements, which was adopted after the commodity reserves were abolished in 2003 because they were judged not to be commercial.
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