The Chamber of Commerce believes that the eventual limitation of trade margins should be the result of detailed analysis as well as the partnership between the Government and the economy, and the Montenegrin Employers' Association (CUP) believes that such a unilateral decision would be a precedent with serious consequences.
This was announced to "Vijesta" by those two organizations after the announced decision on limiting margins prepared by the Cabinet of the Deputy Prime Minister and the Minister of Economic Development Nika Đeljošaj, on which the Government should declare by the end of the week. "Vijesti" yesterday published the details of the prepared decision, which would limit trade margins for a large number of products to five to 15 percent, in order to stop inflation and preserve citizens' standards.
CUP, which has several large retailers among its members, unofficially told "Vijesta" that they were surprised by the media announcement that the Government is considering the possibility of making a decision on limiting prices.
"We believe that this will not be the final position of the Government. Such a decision would cause huge disruptions in the market as it relates to over 5.000 items. The government must be aware that it would be a unilateral precedent with serious consequences. CUP, as the strongest employers' association, nor its members, was not contacted by anyone regarding the decision to limit prices, and any unilateral adoption will be to the detriment of the real sector and citizens. This kind of intention cannot be a good move by the Government", according to the CUP.
The employers' organization reminds that he is the prime minister Milojko Spajic recently spoke about the Government's inclusive approach on all issues, and that the Government's intention to make a decision without consultation is exactly the opposite approach.
"CUP members, respected businessmen who are among the largest tax contributors, are open to dialogue and ready to discuss all issues with the Government, believing that the Government's decisions will not violate market principles and negatively affect the business environment. We expect dialogue on this and other topics of economic policy. Any different approach will produce harmful consequences for society", they told "Vijesta", stressing that the system is difficult to build, especially the principles of the market economy, and very easy to destroy with such ideas that cause damage not only to the real sector, but ultimately to the Government and society as a whole.
The Chamber of Commerce states that on January 22nd of this year, a consultative meeting of businessmen was organized with Đeljošaj, after they were informed in communication with the Ministry that they were considering adopting measures to limit trade margins.
"Until today, we have not received a proposal for limiting margins from the Ministry of Economic Development or the Government, which we would analyze with businessmen, and give an expert review as an umbrella organization that brings together the Montenegrin economy", PKCG announced.
They state that their and the businessmen's position during that meeting was that such measures should be the result of detailed analyses, as well as the partnership between the Government and the economy.
"We still stand by that point of view today, and we are against unilateral moves that may result in damage, not only for individual sectors, but for the entire Montenegrin economy. The issue of any interventionism in the market is a topic to which we will pay due attention, and as we understood that the proposed decision will be presented at the Government session, the Chamber of Commerce will, after it is available, analyze all aspects of that decision", the PKCG stated.
Đurović: Populism that would destroy the market economy
On the day of voting on the decision to limit margins on huge groups of products without an agreement with the economy, Montenegro would collapse the market economy and we would return to the time of communism and the managed economy, said the until recently Minister of Economic Development yesterday. Goran Đurović.
"To be clear, this means that any government can cap the margins on any product of any company as it pleases without any analysis, all for the purpose of populist adulation of the public. After this, the next step that was immanent to communist regimes and managed economy could be to nationalize private companies and be in line with Venezuela and Bolivia. Such a move sounds good to the general public because an environment has been created in which the punishment of private individuals is accepted with enthusiasm, and the profits made by companies are considered a shame", said Đurović.
He states that the risks of making such a decision could be that it would not be profitable for importers and traders to have these items, as well as that they would cause a reduction in wages, dismissal of workers, cessation of business expansion, lower tax collection...
"Inflation is a serious problem, but you don't fight against it by exercising strictness on the economy and measuring the earnings of companies. During the biggest blow of inflation, Montenegro did everything it could, reduced excise duties on fuel, maintained the level of electricity prices and implemented the 'Stop Inflation' campaign in agreement with the economy. And all of this led to falling inflation, but it is illusory to expect that any country, including Montenegro, can stop it by itself. Bearing all this in mind, I appeal to the Government to think carefully before introducing the announced measures, because the benefit may be short-term, and the consequences may be long-term.
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