Prime Minister Milojko Spajić has emphasized that the “Europe Now 2” program has not resulted in any pension reductions, urging pensioners who believe they received less to contact his office for a personal resolution. He reassured them that any discrepancies would be rectified with the government covering the difference.
During a session in the Montenegrin Parliament dedicated to the premier’s address, Spajić firmly stated that no pensioner had received a smaller pension under the program, which he described as a critical step in improving the country’s economy. He also responded to concerns about the program’s impact on inflation, attributing the rise in prices to the previous government and external factors like the war in Ukraine, while noting that his administration has successfully reversed inflation into deflation.
Spajić revealed that the government expects a current budget surplus next year and guaranteed that electricity bills would not increase in January, with subsidies in place to protect citizens from rising costs.
No pension reductions
Addressing claims about pension cuts, Spajić called on all pensioners to check their bank accounts and transaction records and to report any discrepancies to the government. He promised to personally cover the difference for anyone who had been shortchanged. The Premier added that prior to the implementation of “Europe Now 2”, there was intense campaigning warning that the program would lead to reduced pensions and soaring inflation. However, he pointed out that, in October, inflation was flat, and food prices had even decreased by 1.2%.
While acknowledging that food prices remain high, Spajić stressed that much of the price increase had occurred during the previous government’s tenure, which coincided with the war in Ukraine. Under his leadership, the government had managed to contain inflation, which was now transitioning into deflation. Citizens, Spajić added, would enjoy increased wages alongside stable or even decreasing prices.
Economic growth and debt management
Responding to concerns about rising public debt, Spajić denied claims that the government was borrowing to increase wages and pensions. He explained that this year, the government had used €250 million in current revenue to pay down legacy debt, something that had never been done in Montenegro’s history. The new debt of €885 million for 2024 would primarily go toward settling old debts, with only a small portion of it (approximately €100 million) allocated for debt repayment to Deutsche Bank.
Energy prices and budget surplus
Spajić reiterated that electricity bills would not increase, even with higher transmission costs imposed by the regulator, as the government would subsidize the increases. He also forecast a fiscal surplus, with Montenegro using current revenues to pay off old debts, rather than borrowing to fund higher wages or pensions. The Premier praised the “Evropa sad 2” program for improving wages and helping employers, leading to a positive impact on the labor market.
New Law on Maritime Property and infrastructure plans
Looking ahead, Spajić revealed that the government plans to propose a new Law on Maritime Property in 2025, which will better account for the evolving legal landscape and ensure that the coastal municipalities, including Ulcinj, have a say in managing this vital resource. In response to questions about the border between Montenegro and Albania in the Ulcinj region, Spajić confirmed that the government was working to find an optimal solution.
The Prime Minister also provided updates on infrastructure projects, including the planned construction of a bridge over the Bojana River connecting Montenegro to Albania. The project, estimated to cost €10 million, will be included in the government’s budget for 2024 and 2025, with the aim of completing the planning phase soon.
