Montenegro has adopted a 2027–2031 Public Financial Management Reform Programme covering budget execution, accounting, reporting and financial control as the country prepares for increased access to European Union funding. The programme is aligned with Montenegro’s fiscal strategy, public-administration reforms and the EU Growth Plan.
Montenegro is preparing multibillion-euro investments in transport, energy, healthcare, education and environmental infrastructure, while expecting substantially greater access to EU funding after accession.
Implementation has remained a recurring issue. Road, railway and municipal projects can face delays because of incomplete documentation, expropriation procedures, procurement processes and limited administrative capacity. The reform programme therefore extends beyond accounting systems, with public institutions required to strengthen project appraisal, expenditure monitoring and management of fiscal risks associated with municipalities, state-owned companies, guarantees and major infrastructure commitments.
The framework is also relevant to more complex financing arrangements and public-private partnerships. These structures can reduce immediate expenditure from the state budget while creating longer-term liabilities, making greater transparency in financial reporting important. Improved public-finance systems are also linked to Montenegro’s management of European funding. Procurement, audit and financial-control weaknesses can lead to payment delays or financial corrections when larger EU allocations come under national management.
For businesses, stronger project preparation could provide a more predictable public procurement pipeline and reduce the number of tenders launched before project designs and financing arrangements are sufficiently developed. The reform is being implemented as Montenegro faces concurrent fiscal pressures from infrastructure spending, energy-price interventions and the planned 2027 wage overhaul, increasing the importance of medium-term budget planning. The 2027–2031 programme places greater emphasis on the systems needed to manage and prioritise public resources as Montenegro prepares to handle a larger volume of investment financing.
