By implementing policies from Chapter 20 - Entrepreneurship and industrial policy, Montenegro will improve the competitiveness of companies, facilitate access to the European market and contribute to the development of a modern, innovative economy, based on the principles of sustainable development, said the head of that negotiating chapter, Maja Jokanović.
Jokanović said that Montenegrin companies will experience numerous benefits through the implementation of measures and activities from Chapter 20, which are mostly aimed at improving the business environment and strengthening the competitiveness of the economy.
She reminded that the European Union (EU) emphasizes the importance of entrepreneurship and industry for economic development, which includes reducing administrative barriers, optimizing legal regulations and creating more favorable conditions for business.
"In all these areas, in various spheres, numerous activities are already being carried out continuously to constantly improve the business environment and to consider in detail all potential obstacles in the company's operations," said Jokanović in an interview with the Mina-business agency.
According to her, special emphasis is placed on the elimination of business barriers faced by the business community through specific activities and interdepartmental cooperation, while the Program for Suppression of the Informal Economy is aimed at reducing its share in the economy, on which plan a whole set of measures for simplification has been established tax administration, support for the transition to the formal economy, and improvement of electronic services and institutional capacities.
Jokanović stated that one of the key steps and an important policy instrument in this chapter is the adoption of the Law on Payment Deadlines, which regulates payment delays in commercial transactions.
"This measure will protect micro, small and medium-sized enterprises, which are often the most vulnerable due to insolvency problems. The application of this directive, along with other measures, will reduce the risks of account blocking, and provide greater protection to the sector of micro, small and medium-sized enterprises, which are most affected by non-payment of financial obligations on time, given the limited access to financing sources and slightly higher financing costs," she explained. is Jokanović.
All these activities, as she said, contribute to creating a fair and competitive business environment, increasing employment and investments, with a special focus on supporting the sector of micro, small and medium enterprises, which are the key pillar of the Montenegrin economy.
She announced that Montenegro has made significant progress within Chapter 20, which was confirmed in the report of the European Commission (EC) for this year.
"Especially highlighted are the results of implementation in the key areas of the chapter in support of strengthening processing capacities and modernization of industry, development of innovation infrastructure, support for start-ups and small and medium-sized enterprises, as well as in digital transformation and further development of the industry based on the principles of sustainable "green" business" , stated Jokanović.
Summarizing the results of the implementation of the Industrial Policy for the period from 2019 to last year, it is evident the focus on investment activities in the sectors of energy, ICT infrastructure, financial support to the economy in the form of loans, factoring and guarantee schemes, grants for self-employment, and significant investments were also made in education and skills acquisition for industry competitiveness, grants for business and science cooperation.
"In order to harmonize with the EU Industrial Policy framework, activities to support the development of the green and circular economy, improved digital transformation of companies, provision and development of innovative tourism products and services and infrastructure, as well as market access through the simplification of trade procedures and the reduction of technical trade barriers have been implemented Jokanović reminded.
Analysis of the planned and realized funds for the five-year implementation period, of the planned 1,49 million EUR for the implementation of action plans and the implementation of various programs, projects and support instruments for the development of industry, 1,28 million was spent, which represents 85,95 percent of the realization.
"With the implementation of the new Industrial Policy for the period from this year to 2028, which was adopted in the middle of the year, activities will continue to further solve challenges in the industry sector in terms of digital and energy transition, access to finance and investment, smart and sustainable development and access to regional and the EU market", Jokanović added.
Also, as she said, Montenegro continuously improves the sector of micro, small and medium-sized enterprises through the implementation of strategic documents aimed at improving the regulatory framework, reducing bureaucracy, optimizing costs and digitizing the registration process and electronic administration services.
Special attention is devoted to strengthening the institutional infrastructure to support the sector of micro, small and medium enterprises, from national to local level, as well as improving access to finance and support in the transition to the green agenda, as well as continuous development of specific skills through training and targeted support programs.
"According to the latest edition of the Small and Medium Enterprises Policy Index, Montenegro recorded progress in all key areas, including innovation, green economy and public procurement, which further improved the environment for further development and improvement of the sector of small and medium enterprises, entrepreneurial learning, female entrepreneurship Jokanović stated.
According to her, all these results contributed to Montenegro fully implementing the recommendations of the EC, which will crown many years of work and commitment with the temporary closure of negotiating chapter 20 at the Intergovernmental Conference at the beginning of next week, which represents a significant step towards EU membership.
When asked whether Montenegrin companies, and the economy in general, are ready to adopt the new policies that this chapter brings, Jokanović replied that Montenegrin companies, with the support of the state, are working to a significant extent on strengthening their competitiveness and preparing for adaptation to the principles of entrepreneurial and industrial policy from Chapter 20, through comprehensive financial and non-financial support to the economy for improving productivity and profitability, as well as stimulating the establishment of new businesses.
She said that the program lines within the Program for Improving the Competitiveness of the Economy continuously carry out activities aimed at encouraging investment activity.
"I would also like to mention that through the concept of smart specialization and interdepartmental cooperation, the implementation of the Program for Encouraging Innovations in the Function of Energy Efficiency in Industry has launched a model of non-refundable financial support for introducing innovations and increasing energy efficiency in the processing industry, which further strengthens companies to enter the single market EU," said Jokanovic.
This is only part of the support mechanisms available to our companies, and the main challenges may be the adaptation and adoption of new technologies and the application of innovations, increasing the level of necessary knowledge and skills of employees, as well as overall preparation for strong competition on the EU market.
"However, digitized support systems and regular consultations with businessmen facilitate the implementation of these policies and program support measures, enabling Montenegrin companies to use the available mechanisms for their further development and growth," Jokanović said.
When asked to what extent certain funds from EU funds will be available to Montenegro under this chapter, Jokanović replied that Montenegro has significant experience in using EU funds through programs such as the Program for Competitiveness and Innovation CIP-EIP, the Program for Competitiveness of Enterprises COSME and now the Single Market Programme.
"Participation in these programs in the previous period also enabled Montenegrin companies to have equal access to funds and support for improving competitiveness, innovation and sustainability," said Jokanović.
She explained that the signing of the agreement for Montenegro's participation in the current EU Single Market Program (SMP 2021-2027) enabled participation in three pillars that were assessed as the most relevant for us, namely a more efficient internal market, competitiveness and sustainability of small and medium-sized enterprises and promotion of consumer interests and provision of greater consumer protection and product safety.
"Thus, Montenegro has joined a new strategic and integrated approach that will enable European small and medium-sized enterprises to fully utilize the functional Single Market and apply equally with European small and medium-sized enterprises to calls within the framework of this program, the total budget of which is 4,2 billion EUR", specified Jokanović.
At the same time, through the European Entrepreneurship Network (EEN), Montenegrin companies are enabled to provide assistance for easier finding of business partners and establishment of business cooperation, access to information on legal aspects and EU business regulations, information on support programs and preparation for better use of available EU funds, transfer technology and knowledge and innovation.
"Also, favorable financial arrangements were made possible through the previous COSME program, including guarantees for small and medium-sized enterprises with limited collateral, such as young people, women in business and small agricultural producers, etc.," Jokanović pointed out.
She explained that the new Single Market Program provides additional opportunities for green transition, energy efficiency and the development of social entrepreneurship and similar initiatives.
In addition, the policy complementary to the Industrial and Entrepreneurial Policy is the policy of innovation, which through the implementation of national and international programs and support projects is also very important for a stronger connection between the economy and the innovation community.
"All these activities, promoted through platforms such as biznis.gov.me and MontEENegro, enable companies to have better access to information, support and markets, preparing them for competition on the European market," emphasized Jokanović.
Montenegro's upcoming obligations under Chapter 20, as Jokanović said, include the high-quality and timely implementation of the Industrial Policy for the period from now until 2028, through the implementation of two-year action plans in accordance with the established priorities of digital transformation and improvement of the innovative performance of companies, as well as their transformations towards green and sustainable business and faster integration with the EU single market.
"The challenges for the next period can be considered the need for further continuous improvement of the business environment, strengthening of administrative capacities for effective implementation of entrepreneurial and industrial policy, as well as sectoral policies within this negotiation chapter," said Jokanović.
Additionally, it is important to emphasize the aspect of continuous dialogue between the private and public sectors, the involvement of the academic community and relevant stakeholders so that we all contribute to the creation of various incentive mechanisms to stimulate economic activity and create products of greater added value.
"Small and medium-sized enterprises, as drivers of growth, require continuous support through national and EU funding sources, with a special focus on young people, women and beginners in business, as well as investments in energy efficiency and environmental protection and the introduction of quality management systems and international quality standards Jokanović concluded.
The interview with Jokanović was realized through the "28to28" project, which the MINA agency implements in cooperation with the Ministry of European Affairs, through the EU4ME project, with the aim of presenting the negotiation structure and progress in the process of negotiations between Montenegro and the EU.
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