The price of electricity will not increase from January next year, and we do not expect an increase in inflation due to the implementation of the Europe Now 2 program.
Prime Minister Milojko Spajić said this at a press conference.
"Because of Europe Now 2, there will be no increase anywhere. There will be no increase in electricity prices from January 2025," he emphasized.
Spajić pointed out that electricity prices will be harmonized with the European price, and that this is mandatory through reforms by the first day of 2027. He also said that he will not allow an increase in water prices in the municipalities where the Movement of Europe is now part of the government.
He emphasized that the new increase in minimum wages to 600 and 800 euros further closes the gap that exists between Montenegro and countries of the European Union, such as Croatia. As he said, salaries are on average 20 percent higher, with the increase being seven percent for some and more for others.
"We will continue to close it and expect further salary growth, Europe now 2 is not the end but the beginning and the flywheel. The minimum pension is the highest in the region, we believe that after the adjustment in January, the average pension will be 600 euros," he pointed out.
Private people to catch up
When asked whether employers will comply with the measures from this program, he stated that private individuals can decide whether they want to increase their salaries further, and that he believes that there will be plenty of those who will do so.
When asked whether the Government, as an employer, will transfer part of the money to the accounts of employees in the public sector, Spajić explained that it is already regulated by the collective agreement that this part is not paid out, because it is a saving for the employer. He added that the private sector can use this to catch up with the public sector, since the wage gap is already large. He indirectly said that the state will not do this, so that the difference would not increase further.
"If the public sector were to increase further, it would only increase the gap," he said.
He emphasized that during the implementation of Europe Now 1, the private sector had an average salary of 720, while the public sector had around 700 euros.
"Which is a healthy ratio. Unfortunately, before the implementation of Europe now 2 precisely because of the actions of the 43rd Government, which inappropriately increased wages in the public sector without the same step towards the private sector, without any balance. We have a situation where wages in the public sector were on average 950 750 euros in the private sector and now that the public sector increases wages, in addition to the increase that Europe now 2 offers, I think that we would only increase that gap and create a big problem for the private sector, and for it to find labor and to pay. We think that this is the best balance and that we want the private sector to catch up with salaries in the public sector," he explained.
He added that now the burden is on private individuals to increase salaries and that the balance is maintained, and he also announced that the Ministry of Finance is working on the Law on Salaries in the Public Sector, in order to increase salaries targeted for certain jobs. He reiterated that this will not lead to additional imbalance and inflation.
Asked about the announcements that they are working on further economic steps and new salary increases, Spajić said that he will inform the public about everything very soon. Spajić stated that the salary calculation remains the same as it was when the minimum was 450, that is, it does not change due to the application of Europe now 2.
When asked about the application of the seven-hour working time, he emphasized that he is working with social partners, that is, companies and unions, to find a solution and that he is asking for a little more patience.
He repeated that inflation had nothing to do with the implementation of Europe Now 1, that they expect the same for the continuation of the program, and that he believes that housing prices will also decrease through the Velje brdo project.
There are not enough inspectors to monitor Europe now 2
Asked if there is a sufficient number of inspectors to monitor compliance with the measures from Europe now 2, Spajić stated that unfortunately there are none. He stated that the reform of the Directorate for Inspection Affairs (UIP) has now been carried out, with which inspections have been divided into departments, so as he says, ministers have no excuse not to do their job.
"Any minister who does not do his job will no longer be able to blame the UIP, but it will be - you, comrade, are not doing your job, your ministry is not doing well. That is the goal of this reform, and we hope that it will encourage all ministries to work full steam ahead," he pointed out.
Will water be more expensive?
Spajić emphasized that no water supply company will receive their support for raising water prices, and that they are in trouble because the 43rd Government signed a collective agreement without a strategy.
"They created a problem for themselves in the waterworks, and now they want to transfer that problem to the citizens through water prices - they won't be able to do that. Those waterworks that are in trouble, let them find a solution that they made themselves. If they are not capable as directors, let them give resignation. There will be no increase in water or electricity prices," Spajić pointed out.
Asked if the calculation value of the coefficient will change, which is 63 euros since 2014, which stipulated that the same daily wages are retroactive in 12 installments, jubilee awards...
Spajić added that a new collective agreement is necessary, on which both the employer and the unions must agree, so social dialogue is crucial.
The reaction of the European Commission is standard
Commenting on the report of the European Commission, which states that fiscal vulnerabilities remain in the Montenegrin economy due to high needs for public financing, elevated interest rates and constant pressure on social spending, Spajić said that one should read the paragraphs, because in one part they praise Europe now 2 and in the other warn of risks.
"I think that this is the standard vocabulary of international organizations after any major reform, for example the International Monetary Fund, the World Bank and the European Commission used exactly the same vocabulary for Europe now 2021 during 1, and after that they only had words of praise," he emphasized he.
He pointed out that citizens have no reason to fear, that a surplus was recorded in the first eight months and that Montenegro will again be within the Maastricht criteria by the end of the year, that is, the deficit will be below three percent. Spajić added that the debt to GDP ratio is already below 60 percent, and that he hopes that the accession to the Single Euro Payment Area (SEPA) from January 2025 will make it possible for Montenegro to immediately become a part of the European Union upon accession euro zone.
"No EU member has managed to do that. If we enter in January 2028, we can also enter the eurozone on that day, because we have been meeting the requirements for four years already," he pointed out.
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