State Treasury Closed to "Solidarno"? Ministry of Finance Against Extension of Agreement with Teachers' Cooperative

The Ministry of Finance is requesting a comprehensive analysis of the implementation of the agreement so far and the effects of the millions invested before any new financing of the educational housing cooperative.

The director of the cooperative, Zoran Stanišić, expects negotiations to continue at the end of August, while Radomir Božović says that the Education Union cannot make a decision regarding the position of the Ministry of Finance, because it has not yet received it.

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The Cooperative still hopes for the continuation of negotiations (illustration), Photo: Shutterstock
The Cooperative still hopes for the continuation of negotiations (illustration), Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The Ministry of Finance has refused to support the extension of the agreement that would have given the Housing Cooperative of Educators "Solidarno" another 2,1 million euros from the state budget over the next three years, "Vijesti" has learned.

The department he manages Novica Vuković He responded to the Ministry of Education, Science and Innovation (MESI) that before assuming new financial obligations, a detailed examination should be conducted of how the money has been used so far and what the effects of multi-year financing of "Solidarno" have been.

"In this regard, the Ministry of Finance does not agree with the proposed extension of the Agreement," states the Ministry of Finance's letter dated June 30, which "Vijesti" had access to.

"Solidarno" sought to conclude a new agreement under which it would receive 700.000 euros per year to address the housing needs of education employees during 2026, 2027, and 2028.

The previous three-year agreement referred to 2023, 2024 and 2025, and on the same basis, a total of 2,1 million euros was paid to the Cooperative from the budget.

The MF now, however, believes that a line must be drawn before any continuation of funding.

"Given that budget funds have already been allocated for the implementation of the project in the previous period, the Ministry of Finance believes that before any new obligations are assumed, it is necessary to conduct a comprehensive analysis of the implementation of the agreement to date, determine the effects of the invested funds, and consider the possibilities for further addressing the housing needs of employees through a sustainable and efficient model," the document states.

The state has paid 12,5 million euros to the cooperative since its establishment in 2022. In the previous three years, 2,1 million euros have been paid.

The assembly of the "Solidarno" Housing Cooperative rejected the proposal of the Ministry of National Economy and Finance to delegate representatives to the bodies of that legal entity in early June, in order to better control the money that has been flowing from the state budget into the coffers of the cooperative members for more than two decades.

Cooperative Director Zoran Stanišić He told "Vijesti" yesterday that he expects negotiations to continue upon his return from vacation - at the end of August, but also referred the journalist to the Education Union, one of the founders of the cooperative.

President of the Education Union Radomir Božović He briefly told the editorial staff that the workers' organization still does not have official information about the Government's position on the future of financing the solution to the housing issue for teachers.

"We cannot comment on this issue until we receive official information from the relevant departments," he said.

There will be no separate model for one group of employees

The Ministry of Finance also states in the letter that a "systemic and uniform approach" is needed and that in the future, state financial participation should be implemented universally, through mechanisms prescribed by the social housing system.

They warn that allocating money through special arrangements intended for employees in only one state body or area can lead to unequal treatment of other employees and citizens.

"Implementing financial support outside this framework, through arrangements related to employees in an individual body or area, implies potentially unequal treatment of comparable categories of employees and citizens, makes it difficult to allocate funds in a planned and transparent manner, and is not in the function of long-term fiscal sustainability," the Ministry of Finance states.

The department says that any state support should be directed through social housing mechanisms, but only after analyzing the current model.

Such an attitude practically stops the plan for "Solidarno" to continue receiving hundreds of thousands of euros annually from the state treasury according to the current model.

Rejected state proposals, but requested continued funding

In June, the assembly of "Solidarno" rejected the initiative of the Ministry of National Education and Research to have the state, as a long-term financier of the cooperative, have its representatives in its management bodies.

"Vijesti" previously reported that 76 out of 90 members of the Assembly present voted against the proposal, ten voted in favor, while four abstained.

The Ministry of Education and Science requested amendments to the Statute that would allow this department to have representatives in the Assembly and the Board of Directors of the Cooperative, which was justified by the need for the state to have more direct insight and control over the way citizens' money is used. The Ministry of Education proposed at the time that the representatives of the Ministry of Education would be from among the members of the cooperative.

"Solidarity" rejected such a model, but at the same time expected a new agreement with the state and continued funding.

The director of the Cooperative Stanišić previously claimed that "Solidarno" does not reject control and transparency, but rather a model according to which the Ministry would have pre-reserved positions in management bodies.

The Assembly's decision provoked strong reactions from some educational workers and the Education Union.

Božović assessed at the time that with such a decision, the cooperative had practically “slapped the Ministry in the face.” The union, he said at the time, warned of the possible consequences if the state withdrew.

"We also expressed concerns regarding the further work of the cooperative, because the money for this year, but also for the following years, has not yet been secured, and the question is whether there will be any after this. The situation is only getting more and more complicated," said Božović.

He reiterated that the cooperative is currently waiting for over 1,2 million euros in loans and the construction of apartments has been announced.

"The question justifiably arises as to how so many pending loans will be paid out if there is no cooperation with the Ministry of National Economy and Finance," said Božović.

Former President of the Cooperative Assembly Nihad Kršić, who resigned at that very meeting in early June, said at the time that he "sincerely hopes that the Ministry will not sign a new agreement with such a cooperative."

"If he signs, it will show the powerlessness of the state. The cooperative has fallen many times, and the state has helped each time. And now the cooperative members are rejecting the outstretched hand of the Ministry of Agriculture and Rural Development," said Kršić.

More than 12 million from the budget

"Solidarno" has been financed with state money for more than two decades.

"Vijesti" recently announced that over the 23 years of operation of the cooperative, more than 12,5 million euros have been allocated from the state budget to address the housing needs of educators.

In the last three years alone, the Ministry of National Education and Research has paid 2,1 million euros to the Cooperative.

Responding to questions from members of the Parliament of Montenegro, the Minister of Education Anđela Jakšić Stojanović At the beginning of July, it announced that since 2002, according to data from that department, the cooperative currently has 2.320 members.

"According to data submitted to the Ministry of Housing and Urban Development by the cooperative itself, a total of 788 housing units have been allocated in 14 municipalities in Montenegro so far, and 315 cooperative members have received loans to improve their housing situation," she said.

Jakšić Stojanović then emphasized that such a model of resolving the housing issue "deserves serious analysis."

"In Austria, for example, there is a social housing model that implies that employees are given apartments on very favorable terms for a long period of time, but that they do not have the right to purchase these apartments. But there are different models, and all of these models should certainly be carefully analyzed and seen which model is best for Montenegro," she said recently.

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