In its latest report for Montenegro, the European Commission clearly stated what domestic institutions persistently hide: Montenegro has entered a zone of serious fiscal risks, and public finances are being run like a party ATM, they assessed in the Strategy for a European and Civic Montenegro (STEGA).
"The deficit and debt are growing while the institutions that should control spending do not exist or are silent. The Fiscal Council has not yet been formed and billions in new borrowing are being used for salaries and pensions instead of development. The European Commission openly warns that fiscal rules have been violated, and public enterprises have become budget black holes," STEGA said in a statement.
The organization said that the "Europe Now 2" program and uncontrolled capital budget spending are creating a short-term illusion of prosperity, while the state is sliding into a long-term fiscal abyss.
"While the government celebrates a 'record' increase in wages, Brussels writes that Montenegro is economically vulnerable and fiscally irresponsible. The STEGA economic editorial team assesses that this is the most severe warning from Brussels since the beginning of the negotiations, and that the government must urgently stop populist measures that destroy fiscal stability. Without real control of spending, transparency and reform of public enterprises, Montenegro risks losing fiscal sovereignty as early as 2026, not due to international pressure, but due to its own irresponsibility," the statement concludes.
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