The government will do everything to limit price growth and enable the increase in wages through the Europe now 2 program to be sustainable, so that citizens feel the benefits, Prime Minister Milojko Spajić said.
"The government will do everything to limit inflationary growth and make it possible for the increase in wages through Europe Now 2 to be sustainable and for citizens to feel the increase, and not to see a race between prices and wage growth," said Spajić in an interview with the Mina-business agency.
He said that the Government's policy will be that wage growth must always be higher than inflation growth.
"It is something we will stick to until the end," Spajić said.
Speaking about the Government's previous results in the field of economy, he reminded that through the Europe Now 2 program, wages will increase for all employees in the country, about 300 thousand of them, by an average of 25 percent.
As he stated, the average wage will be EUR 700 from October, and the minimum wage will be EUR 600 on average, ie EUR 800 for employees with up to and including an intermediate level of education qualifications and EUR XNUMX for those with a university degree.
Spajić pointed out that pensioners also felt the benefits, and announced the establishment of the Development Bank and the Credit Guarantee Fund.
"Generally, I am satisfied, but realistically speaking, I think that a little more could have been done in terms of inflation. However, it is a fact that 43 percent of the price increase occurred during the 80rd Government, and 20 percent increased during the 42nd and 44th Governments. It is interesting that it is precisely the biggest critics who have contributed the most to the increase in prices," said Spajić.
As he explained, inflation was very high since the beginning of last year, about 20 percent, and then stabilized at about ten percent. After the appointment of the 44th Government, a downward trend was noticeable from November last year, up to 3,9 percent in June. The European Union (EU) average is just under three percent.
"The current inflation is not so much a problem as the very high base that we reached with the incredible price growth in the past, that is, at the end of 2022 and the beginning of last year. And that's exactly what created that benchmark, which is very high, citizens see it, they compare prices in supermarkets with the EU and other countries, I completely understand that," said Spajić.
He said that the inflationary trend cannot be reversed overnight.
"It is a demanding job. We have ideas that have proven themselves well in other countries. Let's say, the limitation of margins will certainly happen very soon, and in this way we will have over 500 products that are essential for the lives of citizens, to check the margins again. "The prices have increased, largely due to geopolitical events," said Spajić.
Speaking about the Europe Now 2 program, Spajić said that it is interesting that their political competitors, who often criticize that program, do not have any of their own.
He claims that the Europe Now 2 program is completely sustainable and that the current budget surplus will continue to be achieved.
"As the Minister of Finance in 2020, I found a minimum wage of 222 euros. Individuals call me various derogatory names and behave insultingly towards me personally and towards my party and the Government. However, we have increased the minimum salary from 222 euros to 450 euros, and from October the minimum salary will be 600 and 800 euros," Spajić announced.
He said that it was easiest for the Government to go with a single figure of 700 euros, but that they accepted constructive criticism from employers and unions.
"You can call it whatever you want, on average the minimum wage is 700 euros, that means 600 and 800 euros," said Spajić.
He also reminded that since the beginning of the year, the minimum pension has been increased to 450 euros, which is much more than in all neighboring countries. Average pensions have also increased and currently amount to 520 euros.
From January of the following year, pensions will be increased by an additional 50 to 60 euros for all pensioners whose pension was not initially increased by increasing the minimum.
When asked whether the promise of seven-hour working hours will be fulfilled, Spajić replied that every promise made to citizens in the parliamentary election campaign will be fulfilled.
"Seven-hour working hours will be implemented soon. It is very important that we talk with employers and unions, in an agreement and social dialogue, which unfortunately has never been used in the right way. We need to foster social dialogue and focus on constant communication with social partners," Spajić said.
Speaking about the excise policy and the industry's indignation at the introduction of the excise tax on "still wines" and the increase in the rate of value added tax (VAT) in the press, Spajić announced that the Government is open to constructive criticism and wants to hear all the advice from both the industry and trade union.
"As far as "still wines" and small wineries are concerned, it is very important that we follow the same principle that we used for small breweries as well. There is definitely room for an agreement with them and I am convinced that the Ministry of Finance, when it sits down with representatives of small wineries and that sector, will find the best solution. We will listen to all criticisms and in the end we will implement the solution that we think is optimal. This also applies to books and the press," explained Spajić.
When asked at what stage is the preparation of the construction of the next sections of the highway, Spajić replied that the tender for the second section, from Mateševo to Andrijevica, was successful and was being finalized.
"Very soon we will enter into the signing of the contract with the winner of that tender. The European Bank for Reconstruction and Development (EBRD) has defined the rules of the tender, so we will soon find a contractor and I hope to be able to start the works as soon as possible", said Spajić.
He added that everything is ready from the Montenegrin side and that now we are waiting for the EBRD to complete the process.
"Also, for the continuation of the highway, from Andrijevica to Boljar, we are currently starting with the conceptual project, which is the second phase after the conceptual solution. We already have a conceptual solution ready for that section. We are starting to create a conceptual project, and according to it, we will be able to call for a tender for the execution of those sections as early as the beginning of next year," Spajić added.
Spajić pointed out that at the moment there are 14 sections of highways and expressways that are in some stage of construction.
Among them are the expressway that will connect Sarajevo with Podgorica, via Pljevlja and Goražde, the branch from Andrijevica to Peć, which will connect Montenegro with Kosovo, southern Serbia, Bulgaria, Turkey, Greece, then sections from Sozina to Luka Bar, from Bara to the border with Albania.
"There will be four lanes, a fast road, from Paštrovacka up to the border with Croatia, via Luštica," said Spajić.
A detour via Brezan is also planned, in order to bypass the serpentines towards Šavnik. It will be the main road that will go to Žabljak.
"We will build a new bridge on Tara, which will go over Bobovo, or another section. The conceptual solution will provide answers to those questions," Spajić said.
Spajić said that the plan includes expressways Podgorica-Nikšić, Nikšić-Pljevlja via Šavnik and Žabljak, as well as the road from Podgorica, via Tuzi to the Albanian border.
"In this way, all municipalities in Montenegro will benefit from this type of investment development, which will take place in the next six years. It will change our future, our economic future. I didn't say for nothing that Montenegro has great economic potential, and I am convinced of that," Spajić said.
He added that there is a great interest of foreign investors to participate in some of these projects, primarily the EBRD and the European Investment Bank (EIB), as partners who have traditionally participated in the construction of infrastructure in Montenegro.
When it comes to the tourist season, Spajić said that it is good, as far as income is concerned, but also that there are some parts of the tourist sector that are not filled enough.
"If you look at revenues, we have fantastic results in July. In that month, we will have an increase in VAT of around 28 percent, which is unprecedented. The income side is very good", said Spajić.
He added that the Government recognizes the weaknesses of the tourism sector and that the issue of the airport is a "bottleneck" of the tourism industry, which should be resolved as soon as possible.
Spajić said that the Government inherited the situation from 2018 or 2019, that is, the tender for concessions for airports and a very irresponsible attitude towards the World Bank (WB) and the International Finance Corporation (IFC), which is a consultant in that project.
"We dragged out this process for seven years and found ourselves on the informal "black list" of the SB precisely because of such frivolity and carelessness. We do not want to be frivolous, especially towards serious institutions such as the SB. We want the best possible partnership with them, and that's why we have to act responsibly," Spajić said.
He said that the Government will bring this process to an end and see what the offers are.
"For seven years, we have been tapping in the place and we have made the status of our country very irresponsible and led to the fact that we are practically on the "black list" of the SB due to frivolous behavior," Spajić said.
He added that the three companies, finalists in the tender, are still interested in making final offers for the airports.
"We will see what the final offers are and as a country we will decide on that issue when we receive them," Spajić said.
He believes that the concession would be good for the state, because its revenues would be at least ten percent of the total that the airports achieve.
"That's a good thing. However, there are many parts of that concession contract that are very unfavorable for the state, so we will work intensively to ensure that, if we go towards the concession, the final contract will protect all the interests of the state", said Spajić.
He added that the concessionaires will have to show that they will contribute to the Montenegrin economy and tourism, and that they will invest significant funds in the development of the airport and tourist offer.
Spajić also stated that Sveti Stefan is one of the inherited problems with which the government has to fight.
He said that the Ministry of Economic Development has been in communication with Amana and investors, but that so far they have not found a satisfactory model for getting out of the crisis.
"If there is a need, I will personally get involved. We will not make compromises to the detriment of state interests, but we will not go to war with investors either," concluded Spajić.
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