Deputy Prime Minister and Minister of Economic Development Nik Đeljošaj stated that food prices in Montenegro have remained stable over the past two years, noting that inflation growth has been driven primarily by other factors, such as the increase in VAT on tourism services, higher prices at coastal resorts, and rising wages.
During today’s session of the Montenegrin Parliament, members discussed the economic challenges facing the country.
Particular attention was drawn to a question from Andrija Nikolić, a member of the opposition Democratic Party of Socialists (DPS), who asked whether the government has a clear strategy to protect citizens from inflation. He pointed out that inflation in Montenegro is roughly twice as high as in the eurozone and most EU member states.
“All indicators show that we are in a red-alert situation and that public finances are at risk of collapse if urgent measures are not taken. Montenegro has become the most expensive country to live in across the region. The state budget has turned into a bank machine for party objectives — five thousand people have been newly employed in the public sector over the past three years, which, along with the harmful effects of certain economic programs, has fueled inflation,” Nikolić said.
Đeljošaj acknowledged that inflation in Montenegro is higher than in EU countries but argued that prices in certain sectors, particularly food, have remained largely stable. He added that he expects positive economic effects from upcoming infrastructure and development projects, including investments in highways, railways, and the arrival of new low-cost airlines.
Nikolić, however, accused Đeljošaj of “trying to defend the indefensible.”
“Inflation here isn’t just slightly higher than in the EU — it’s double. Our prices have risen twice as much as in the eurozone,” he said.
He also noted that this year’s government strategy initially planned for €450 million in borrowing, but by March, public debt had already reached €850 million.
“We still don’t know what the deficit in the pension fund looks like or how much it will cost us by the end of the year. I am deeply concerned about the state of Montenegro’s economy,” Nikolić warned.
The DPS MP also referred to the recommendations of the European Commission, which, he said, has urged Montenegro to tighten fiscal discipline.
“The EU is asking Montenegro to limit spending on public sector wages. And do you know what that means? Either you will have to start laying off workers, reducing salaries — or both,” Nikolić concluded.
