Montenegrin President Jakov Milatović stated that the country can accelerate its economic growth only by advancing all five key factors simultaneously: the import–export balance, tourism, the performance of state-owned enterprises, the quality of investments, and institutional strength. He presented this view during an economic briefing at the Faculty of Economics of the University of Montenegro in Podgorica, titled “Montenegro Must Accelerate! Will We Reach the EU Standard in 15 or 40 Years?”
According to a statement from his office, Milatović spoke to students and professors about the main challenges facing the economy and the measures needed to secure faster growth and reach European living standards.
He emphasized the historically low level of import coverage by exports, describing it as one of the biggest obstacles to Montenegro’s competitiveness. He noted that the country still imports almost all basic food categories — from meat and dairy products to fish, vegetables, and fruit.
Milatović argued that the state should urgently implement five targeted measures: increasing the agricultural budget and strengthening support for domestic farming; operationalizing a Development Bank; enabling full functionality of the Credit Guarantee Fund; introducing employment subsidies in production sectors; and stimulating investments in industries that generate added value.
Addressing the tourism sector, he said that tourism, which accounts for one-third of the economy, has recorded a decline in overnight stays for the second consecutive year. He stressed the need for better destination promotion and improved preparation for the tourist season.
Speaking about state-owned enterprises, Milatović noted that many of them suffer from political hiring and inefficient administration, stating that “a party membership card still serves as the main diploma,” which significantly hampers productivity and growth. He also commented on the energy sector, where the number of employees has grown sharply in recent years without corresponding improvements in performance.
He described the management of state-owned companies and shared resources as one of Montenegro’s most important constitutional issues. Milatović announced a Declaration on Good Governance of State-Owned Enterprises, aimed at ensuring greater professionalism, accountability, and full transparency.
He also highlighted the unfavorable trend of foreign investment continuing to flow primarily into real estate rather than development-oriented projects. Rising inflation, which increases month by month, further burdens citizens, prompting him to propose a set of measures aimed at reducing prices and protecting living standards.
Milatović stressed that weak institutions remain a major barrier to development. Institutional stability, he said, is essential, adding that the core of EU integration lies in the effective functioning of the Parliament, Government, judiciary, education, innovation, research, and the healthcare system.
He encouraged students to actively participate in public debate, emphasizing that “economics is a dialogue, not a monologue.” Montenegro, he concluded, needs a clear change of course to allow young people to enjoy European living standards in their own country. If economic growth remains stuck at 2–3 percent, he warned, the country will face higher taxes and declining living standards. To achieve EU-level living standards domestically, Montenegro needs growth of 5 percent and inflation of 2 percent — not the other way around.
