The Government of Montenegro has adopted the Economic Reform Program for Montenegro for the period 2024-2026. The document serves as the basis for the country’s dialogue with EU member states and institutions on macroeconomic, fiscal, and structural reform issues. The Economic Reform Program (ERP) is a key document in the country’s economic policy, providing a framework for planning and managing reforms aimed at maintaining macroeconomic stability, strengthening international competitiveness, and improving conditions for inclusive growth. It is also a fundamental element of Montenegro’s ‘fundamental first’ approach in the EU accession negotiations, especially regarding the fulfillment of Copenhagen economic criteria.
According to preliminary macroeconomic forecasts, economic growth in the next three-year period will average 3.2 percent annually. Growth will be primarily driven by domestic demand through strong household consumption and the initiation of a new investment cycle, stimulated by easing business barriers, regulatory reforms, and youth employment policies.
The fiscal framework of the ERP for 2024-2026 includes the implementation of fiscal consolidation measures based on reducing discretionary expenditures and creating conditions for generating new revenues through improved collection and expanding the tax base.
In the area of public spending, the main objectives for the period 2024-2026 include:
Achieving a surplus of current budgetary expenditure (financing all state’s current obligations from current revenues). Reducing the budget deficit to below 3% of GDP in 2026, in line with fiscal responsibility rules. Maintaining the public debt level at around 62% in 2024, with a downward trend in the period 2025-2026. Ensuring that new borrowing is solely used to finance capital projects, debt repayment, and refinancing existing state debt. Issuing state guarantees only for projects of general public interest contributing to long-term development.
