The proposed amendments to the Law on Foreigners, which relate to the conditions for extending the stay of founders of foreign-owned companies, ignore the real situation on the Montenegrin labor market, said the president of the Tourism Committee of the German-Montenegrin Business Club, Mihael Bader.
"The introduction of the obligation that every foreign-owned company must employ at least two Montenegrin citizens raises a key question: whether there is enough labor force in Montenegro, especially qualified ones, to meet such a requirement," said Bader, who is also the president of the foundation called The Future of Montenegrin Tourism.
He recalled that the Montenegrin economy has been facing a serious shortage of workers in almost all sectors for years, and that the lack of qualified personnel affects both domestic and foreign employers.
"We rightly wonder who will fill those jobs, especially when it comes to specialized jobs opened by foreign companies - IT, consulting, architecture, remote services, financial technologies and other knowledge sectors," asked Bader.
He believes that by introducing a rigid norm on employing two Montenegrin citizens per company, the state risks creating pressure not only on foreign investors, but also on domestic businessmen who are already struggling with a shortage of workers.
"This issue is particularly important considering that, according to available data, around 100 foreigners have legal residence in Montenegro, and tens of thousands of foreign-owned companies currently contribute to the Montenegrin economy through investments, employment and taxes. This is, therefore, a significant segment of the economic system, not a marginal phenomenon," Bader said.
He recalled that the free movement of people and services is one of the key pillars of the European Union.
"Limiting the residence of company founders and introducing mandatory employee quotas do not follow the practice of most European countries, where the criteria are based on the actual economic contribution of the business - revenues, investments, taxes paid, and not strictly on the formal number of employees," said Bader.
The basis of an attractive business environment, according to him, is the predictability and stability of regulations, which is why any change made without extensive analysis and consultation creates an impression of uncertainty and sends a negative message to investors.
Bader recalled that foreign residents and foreign-owned companies create around 15 percent of total value added in Montenegro and bring in around EUR 1 billion annually through investments and consumption.
"Improper and restrictive solutions could lead to the withdrawal of some of these people and capital from the country, which would affect the decline in consumption and investment, the departure of companies that already employ Montenegrin citizens, a decrease in deposits in banks, additional pressure on the real estate market and tourism, and a slowdown in the growth of sectors that have developed thanks to the immigration of highly educated professionals," Bader warned.
He believes that instead of rigid measures, Montenegro needs a modern, European-harmonized model of migration and economic policy that valorizes the real economic contribution of companies, takes into account the real capacities of the labor market, ensures legal stability for investors, supports the mobility of experts and entrepreneurs, and contributes to the long-term development of the country.
"The balance between state interests and foreign investor contributions is not a political issue, but an economic necessity. Maintaining Montenegro's credibility, openness and competitiveness in the European space requires measures based on analysis, dialogue and European practices, rather than sudden and restrictive moves that could have lasting consequences," Bader concluded.
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