Montenegro has begun implementing a reform of state-owned enterprises (SOEs) aimed at improving their financial performance, reducing political influence over management and strengthening fiscal-risk monitoring. It follows adoption of a new law in June 2026 and is described as one of the country’s most consequential corporate-governance changes ahead of EU membership.
The Law on the Governance of SOEs is designed to establish continuous, centralised monitoring of state companies and their fiscal risks. The government adopted a state ownership policy as the main strategic instrument for applying the law. The companies operate in energy, transport, infrastructure and other strategically important sectors.
The Ministry of Finance has expanded its monitoring of SOE fiscal risks, producing aggregate analysis of companies’ financial performance and a fiscal-risk statement. Work to update the central SOE register is continuing; the register is considered essential to managing the companies as a portfolio rather than through fragmented oversight by individual ministries.
Poor governance can affect public finances through subsidies, guarantees, unpaid obligations or underinvestment. Stronger state companies can improve power supply, transport and infrastructure services used by private businesses. More transparent procurement and financial reporting can also reduce market uncertainty.
Implementation is the next test. Governance laws can clarify board responsibilities and reporting, but financial performance will depend on professional appointments, transparent objectives, investment discipline and enforcement when companies fail to meet targets. The reform’s credibility will depend on whether the rules change how Montenegro’s state assets are managed.
