One year after the implementation of the Europe Now 2 program, Montenegro’s Finance Minister Novica Vuković stated that the results have been positive, noting that the average net salary increased by more than 20% and that citizens’ living standards have improved despite rising prices.
However, economic analyst Mirza Mulešković cautioned that it is too early to fully assess the program’s effects after just one year. He emphasized that while wages, pensions, and social benefits have risen, Montenegro’s inflation rate has doubled compared to EU countries, eroding real purchasing power.
According to data from Monstat and Eurostat, Montenegro’s purchasing power parity reached 54% of the EU average by the end of 2024, up only slightly from 50% in 2019. Mulešković explained that administrative increases in wages do not translate into real growth because the economy and production base have not expanded, leading instead to price inflation.
He pointed out that reports from the IMF and European Commission also highlight inflationary pressures caused by these reforms and call for medium- and long-term fiscal consolidation measures. Mulešković warned that reliance on indirect taxes to finance public spending poses a serious fiscal risk, especially since the reforms were introduced without long-term economic analysis.
For sustainable wage growth and higher living standards, he concluded, Montenegro must focus on developing and diversifying its economy.
