Spajić announced the Fiscal Strategy for 20 days, which will also include "Europe Now 2"

Prime Minister Milojko Spajić announced that the Fiscal Strategy will be discussed publicly in the next 15 to 20 days.

He stated this in his answer to MP Milun Zogović of the Democratic People's Party (DNP), who asked Spajić if he was satisfied with the dynamics of the implementation of the "Europe Now 2" program, and what was the deadline for the implementation of all measures from the program. Zogović also asked if the unfounded media announcements that the abolition of pension contributions and the reform of the Pension Disability Insurance Fund are a necessary precondition for the full implementation of the "Europe Now 2" program?

The Government's Public Relations Service sent Spajić's answers to the MPs' questions to the media, even though the Prime Minister's Hour was not held today. MPs of the DPS blocked the floor, not allowing the holding of the Prime Minister's Hour, after which the Speaker of the Parliament Andrija Mandić closed the session and announced the holding of the new Prime Minister's Hour.

"According to the legal regulations, we will prepare the Fiscal Strategy, which Montenegro has not had since 2021, and offer it to the entire public for discussion in the next 15-20 days. The Fiscal Strategy will contain all the fiscal policy measures of the 44th Government, including 'Europe Now 2' As you know, 'Europe now 2' basically contains a vision of reducing the tax burden on work and increasing the minimum and average salary, and therefore requires respect for social dialogue, i.e. decision-making based on a tripartite dialogue between the Government, trade unions and employers," he said. Spajic.

He added that the Fiscal Strategy is adopted by the Assembly, and that it must state that such reforms must earn general social consent, which we achieved when adopting the "Europe Now 1" program.

The fiscal strategy was announced until the end of March, then until the end of June, so this is now its third postponement.

Spajić said that the fiscal strategy is adopted by the Parliament, and that it must state that such reforms must earn general social consent, which was also achieved during the adoption of the "Europe Now 1" program.

Spajić said that contributions for pension and disability insurance will not be abolished but reduced, while the Pension and Disability Insurance Fund will continue to function as it has until now, when pensions are funded as part of the first pension pillar.

"In the foreseeable future, as it has been presented in certain circles in public, we do not plan to use the second (II) pension pillar, which implies that the employee pays contributions for pension and disability insurance".

Answering whether he is satisfied with the dynamics of the implementation of the "Europe Now 2" program, Spajić reminded that only two months after the constitution of the current government, the Parliament adopted the Law on the Budget of Montenegro and Amendments to the Law on Pension and Disability Insurance, which increased the minimum pension to 450 euros .

"At that time, we heard in the Parliament, from some deputies, that the increase in the minimum pension is not sustainable, that we will finance it from debt, from the increase in the general rate of VAT, from the sale of Elektroprivreda Crne Gore, etc. Today, after the payment of the increased pension for five months this year, we are witnessing that all those 'predictions' were incorrect. For the period January-May, the budget surplus was achieved, while the revenues were higher than last year as well as the planned ones , not a single cent of the debt is or will be used for the purposes of paying pensions or any other current expense, but exclusively for the repayment of old debts and the financing of infrastructure projects".

The Prime Minister added that the first part of the program aimed at improving the standards of pensioners has been fulfilled and that the part of the program aimed at improving the standards of all employees in Montenegro will follow.

"I would emphasize 'everyone' because the previous government witnessed an increase in wages for only one category of employees, namely employees in the public administration. That is why we now have an even greater imbalance in the labor market, since the economy was left aside, and businessmen precisely those who fill the Budget", Spajić said.

"Europe now 2 as well as Europe now 1 is aimed at reducing the tax burden on wages"

The Prime Minister said that the vision of improving the standards of all citizens remains unchanged.

Radinka Ćinćur, a member of the Special Club, asked him what mechanisms he plans to use to reach the minimum wage of 700 euros for every employee in Montenegro and the average salary of 1.000 euros.

"How will you perform that 'magic' that we have average net salaries in the amount of 1.000 euros, while our gross salaries remain unchanged, i.e., the lowest in the region, and how will this be reflected on the pension fund? More specifically, are you able to explain to us the reform of the pension system that you intend to implement?", asked Ćinćur.

Spajić replied that the "magic" she mentioned, Ćinćur, was not disputed when "Europe Now 1" was prepared and implemented.

"On the basis of that 'magic', you and I are talking in the Parliament today, you as a member of parliament who received the mandate of the citizens through that program. In the meantime, you have decided on some other programs and other agendas, and I remain on what we have in common promised: a minimum salary of 700 euros, an average salary of 1.000 euros and a minimum pension of 450. The government I lead, just two months after its establishment, proposed and the Parliament adopted changes to the law that enabled the increase of the minimum pension by over 44 of our pensioners. Pensioners whose standard for years, and I would say for decades, was below the limit necessary for a dignified life. How pensioners were treated by previous governments - the minimum pension in 74.000 was 2016 euros, in 121,92 euros in 2017, 122,83 euros in 2018 and 125,63 euros in 2019".

Spajić said that this is why this is the first measure of the Europe now 2 program, "and in a completely fiscally responsible and sustainable way".

"Our vision of improving the standards of all citizens remains unchanged. We are dedicatedly working on the preparation of a new Fiscal Strategy that will include all planned measures with a precise definition of the impact of those measures on the fiscal and macroeconomic framework... Europe now 2 as well as Europe now 1 is aimed at reducing the tax burden on wages, in order to reduce the fixed cost of work for the employer, and at the same time enable an increase in the minimum and average wages. The reduction of contributions to the pension and disability insurance does not imply the introduction of the second pillar of the pension system, nor the payment of pensionable years by the employee the continuation of the financing of pensions through the first pillar, i.e. the Pension and Disability Insurance Fund, as before. To be completely carefree, no measure proposed by this Government will endanger any employee, especially pensioners and the pension system, as well as the state budget," he said. is Spajić.