President Jakov Milatović emphasizes that Montenegro must begin servicing part of its public debt from domestic revenues instead of relying solely on borrowing, which often comes with high interest rates. Doing so would demonstrate fiscal responsibility, increase investor confidence, and create space for deeper economic reforms. Borrowing, if necessary, should be limited to high-return projects that create jobs and stimulate economic activity.
He identifies key economic challenges, including high inflation, low domestic production, overdependence on imports, lack of diversification, and declining tourism revenues. Although macroeconomic indicators remain relatively stable, there is an urgent need to resume structural reforms to ensure sustainable growth. He believes Montenegro has the potential to grow at a rate of 5% annually or higher if reforms are implemented effectively.
Milatović sees public debt as a major risk, especially in the context of slowing economic growth and rising interest costs. He stresses the importance of reforming public administration and state-owned enterprises, which must be managed based on merit, transparency, and efficiency. These entities should serve the public interest, and failure to reform them leads to economic inefficiency and public distrust.
Structural weaknesses include a chronic trade deficit, deindustrialization, and politicized management of state resources. Montenegro must boost domestic production, modernize public services, and invest in sectors like agriculture, renewable energy, and IT. Tourism remains a vital export sector but needs a more strategic and proactive approach to reverse recent declines.
Milatović supports EU integration as Montenegro’s most important development path, noting that progress in rule of law, anti-corruption, and judicial reforms is essential for attracting investments. He calls for ending corruption and political favoritism, and for creating a competitive, innovation-driven economy supported by small and medium enterprises.
On foreign investment, he highlights the need for legal certainty, transparent procedures, and equal treatment for all investors. He criticizes the Montenegro–UAE real estate deal for lacking clarity and risking public resources. A sustainable investment strategy must prioritize long-term benefits and institutional integrity.
To stop youth emigration, Milatović calls for restoring trust in institutions, ensuring equal opportunity, and creating an environment where young people can build careers and lives in Montenegro. Support for education, innovation, entrepreneurship, and returnee engagement is crucial to reversing the brain drain and realizing the country’s full potential.
