Konjević: On reforms in dialogue with the economy

Only solutions that are part of the broadest consensus can give adequate results, said the general secretary of the CUP

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Konjević, Photo: Boris Pejović
Konjević, Photo: Boris Pejović
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

A public debate on reform proposals that will be part of the Fiscal Strategy is necessary and much needed, because only solutions that are part of the broadest consensus can produce adequate results, said the Secretary General of the Montenegrin Employers' Association (CUP), Raško Konjević.

"The fact that we still don't have clear outlines of the Europe Now 2 program makes a reasoned discussion impossible and introduces the risk of superficial, often inaccurate assessments and potential results that can seriously affect stability," Konjević told the Mina-business agency.

According to him, the statements of government officials, from which some of the measures could be foreshadowed, only fuel the discussion without arguments, which, according to him, is not good.

"Any serious reform endeavor must be based on facts, a good analysis that would explain the reasons and expected results of those reforms, which must not threaten financial stability. Only reforms that are the result of good preparation, dialogue with the economy and reforms that enable a better business environment are acceptable to employers. "Those reforms that do not "hear" the demands and arguments of employers, but "impose themselves with the strength of the stronger", will not help the further growth and development of either society or the economy," said Konjević.

Konjević said that if the Fiscal Strategy implies a reduction in contributions for pension and disability insurance (PIO), with the aim of reducing the burden on the basis of work, employers can support such a measure.

"But, equally, they are interested in financial stability and sustainability of public finances, so the Government is obliged to convince both employers and citizens through public debate/dialogue that this will be possible", said Konjević and added that stability, along with improvement of the business environment, the key to progress and opportunities for further development.

As he stated, fiscal reforms, especially the reform of the pension system due to the potential power of influence on the rest of the system, must be the result of serious analysis and carefully conceived, because their scope of influence is wide and would affect almost every citizen.

"That's why the Government must open a serious dialogue on the Fiscal Strategy, before the discussion in the Assembly. That document should outline the key economic policies in the mandate of the Government, and without a dialogue with the economy, as a key partner, its scope will be either smaller or wrong," warned Konjević.

He reminded that the CUP brings together employers who annually achieve a turnover of more than 3,5 billion euros, that is, they are a pillar of the Montenegrin economy, and that is why there is a clear expectation that the Government respects and listens to their opinion.

"Who will handle the processes through the implementation of potential reforms if not the economy and employers. They predominantly fill the state budget with their work, and if solutions are imposed on them without their consent, it is certain that this will make the position of employers more difficult and negatively affect economic results," explained Konjević.

CUP believes that the broadest possible social consensus of all relevant subjects is needed for a key economic document in one mandate, because it is about something that directly or indirectly affects the business environment and the standard of citizens.

"The ambition of the Government, through the statements of the officials, indicates the intention to influence the increase of wages, average and minimum, through certain measures. We must not lose sight of the fact that only by increasing productivity can you correct earnings. Therefore, this can only be achieved on a realistic basis," Konjević said.

He said that the announcement of a reduction in contributions, ie the burden on work and an increase in the minimum and average salary, would primarily target the economy.

"Decreasing labor costs can give a positive impulse, but also, from other aspects, the economy, especially its sector of small and medium enterprises, can face various kinds of significant challenges. That's why the government must be attentive, careful and take measures not to jeopardize the environment for business", announced Konjević.

According to him, if the announced reforms are passed without a partnership relationship with the economy, it is clear that the environment for economic activity will experience a significant negative change.

"That is why it is important that the relevant representatives of the economy be included in the process of dialogue and public discussion about the measures in the Fiscal Strategy. Without partnership dialogue, the results of the announced reforms will be insufficient, bad and to the detriment not only of the economy, but also of society as a whole," Konjević concluded.

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