Address by Prime Minister-Designate Milo Đukanović at Montenegro parliament session

ADDRESS BY PRIME MINISTER DESIGNATE MILO ĐUKANOVIĆ AT THE SESSION OF THE MONTENEGRIN PARLIAMENT HELD ON DECEMBER 4, 2012

PHOTO GALLERY

Mr. President of Montenegro,
Mr. Speaker,
Honourable Chair,
Honourable Deputies,

In the recent parliamentary election Montenegro has decided to continue along the safe path - Forward. Along the path heading towards a better quality of life for the Montenegrin society. The path creating conditions for an enhanced living standard for each individual and each family in our community.

This means more legal certainty, more freedom and more democratic rights. And in the first place more and better jobs on offer so that people in Montenegro can make a decent living off their work. So that they can look forward to a longer life expectancy in Montenegro, with certainty that their hard work during their working life will create conditions for a comfortable old age. This, of course, also entails a more generous care of the state when it comes to people who are unable to support themselves due to some form of disability. At the same time, this entails an enhanced quality of services that the citizens must get in all the fields in which the state is either the direct provider or is responsible for creating an environment of healthy competition that will result in better professional services, adequate for Montenegro’s level of social development. Above all, professionally reliable, patient-friendly, dedicated health care; education that will in the young generation strengthen the values adopted through the irreplaceable family upbringing: loyalty to the family and the state; self-respect – from pride in belonging to one’s cultural, ethnic and religious circle to satisfaction that we live in a society in which we can see that some of our compatriots whom we respect are people of a different identity, to responsibility to ensure through initiative and entrepreneurship a continuously improving living conditions for themselves and their families. And of course, technical expertise that will make them competent and competitive on the global market so that they can make the best of their determination and their responsible attitude. This also comprises conditions that stimulate cultural creativity and development of athletic talent that Montenegro abounds in, as our hallmark in Europe and world wide in the era of globalization.

Support for the choice of such a path does not mean that the citizens of Montenegro are unaware of the constraints that the long-lasting and devastating economic crisis has imposed on the whole world and in particular on our, European continent. On the contrary. It seems that our citizens are reading the situation correctly and putting up with it with more patience than many of those who have found themselves in midst of the crisis with a living standard ten times higher than ours.

All of us who took part in the election campaign regardless of our party affiliation were able to read an identical message sent by the Montenegrin voters –what is expected of us is greater commitment and success in dealing with problems of day-to-day life that trouble more or less each Montenegrin family. And that we use the privileged position we have as public figures, members of Parliament, Government, or of leaderships of parliamentary parties primarily for the purpose of making every day such proposals or using our influence to push for practicable solutions that will open for our citizens new opportunities for a dignified life. Also, a message that, against the backdrop of the crisis, we must have sensors that are more sensitive to welfare problems of people whom the crisis has brought to a situation of dependency, which requires a higher level of solidarity of the society. This does not entail just an obligation of the Government to include those living below a minimum of subsistence among beneficiaries of some form of welfare benefits, as inadequate as they are, but this entails primarily responsibility for all of us, both from Government and from the opposition, to contribute with each gesture we make in public to an atmosphere of welcome for each local and foreign entrepreneur and investor who will spend his money in Montenegro, add new value and provide conditions for employment if only for one citizen of Montenegro.

This also means that we must show by our own example real readiness to make a personal sacrifice in the crisis: temporarily lower salaries for government officials; elimination of various office bonuses, which on a monthly basis often exceed annual payments for any individual on welfare support; ending a practice that anyone can draw multiple salaries and bonuses while young university-trained people with the required educational background are waiting for years for their first job; more restrictive allowances for volunteering in boards of directors appropriate against the backdrop of the crisis; selling a large number of government-owned cars ... Also a drastic reduction of expenses for business travel abroad. A host of regulatory agencies must share the burden of the crisis of the state that has established them. Legislation must put an end to the practice of abuse of the institute of severance compensation in such a way that, once exercised, this right will preclude a possibility for any one’s new employment with the state as the employer without having paid back the severance compensation. The same applies to those who have gone into retirement from a public administration post. Only in cases of an extraordinary need will it be possible for a retired civil servant to be employed in public administration with an additional pay. All this we can – or to be more precise we must do – because of the crisis whose tackling we are committed to. But many of these rules ought to become a template for work in public administration posts in Montenegro.

Before the escalation of the global crisis Montenegro was for several years one of the fastest growing European economies. It is of lesser importance to recall growth indicators of the time. What is more important is that those were the years when we strengthened our economic optimism, became conscious of our resources and our opportunities, began to realize how much we can improve our quality of life by a more responsible attitude towards ourselves. High growth rates in those years reduced the impact of the first consequences of the recession that started in 2009 and was transformed into stagnation or a very low growth in the following three years. Comparisons with our neighbourhood and even with many European states certainly favour us. It would be easy to prove that in the crisis to date we have done better than many and that this, too, required expertise. But this is not the point. This will bring about neither new or better jobs for our citizens, nor higher salaries and pensions, or more optimism and self-confidence that the several-years-long crisis has inevitably dented.

The crisis has, in the first place, showed us a clearer picture of ourselves and of our economy. It has shown us that we are not generating enough and therefore we are borrowing more and more. Also that we are not creating products that are competitive, due to which our exports account for no more than 1/5 to 1/3 of our imports. And that we are largely importing products that we could produce using local resources. Also that this results in a perilous imbalance of our trade, as well as our balance of payments.


Expectations that openness of the Montenegrin economy and elimination of many barriers to business will automatically spur entrepreneurship, small and medium-sized enterprises and develop processing industries have proved unrealistic. Euphoric ideas that tourism and services will completely replace the inherited economic structure in which industry played an important role are proving to be unsustainable. Both here and across the world.

Against such a backdrop and taking account of the crisis, as well as of the fundamental deficit of entrepreneurial skills and initiative, the Government will have to pursue a more active economic and development policy that should open up a process of structural changes in the Montenegrin economy.

Insisting on the topic of failed privatizations, no matter how politically rewarding, is basically just politicking and I consider it unjustified and unproductive. It is likewise playing up to the public, which is everywhere, including Montenegro, opposed to the process, which unavoidably entails some elements of social injustice, as well as a danger of wrong choices, but has been conducted everywhere as a necessary process that for now has no meaningful political alternative. Privatization is part of a process that in Central and Eastern Europe symbolically started with the fall of the Berlin Wall. Montenegro, too, was just a part of this huge transition wave, which paved the way for the unification of Europe. All the privatizations conducted by the Government of Montenegro were carried out in a lawful and transparent fashion, following procedures identical to those in other states in transition. Naturally, the outcome of each of these processes was not identical. In some cases we got a better and in some a not-so-good privatization partner. But a bad experience must not be a reason to challenge the need for the process.

What we can and ought to do is to analyze carefully, with participation of the public, each of the privatization deals and check rigorously the responsibility of the partners with regard to contractual obligations. But, we should not be surprised – this check is bound to result in unavoidable realization of responsibility on our own side for delays and non-fulfilment of many obligations with contractual deadlines. In all cases in which the partners are proven not to have fulfilled their investment obligations towards the employees, or redundancies or other important contractual clauses, such contracts should be promptly terminated. Also in all the cases when the partner has been granted a concession to some state assets and is using it uneconomically, such concession rights should be revoked. Where partners have taken up attractive locations on the Montenegrin coast and are waiting for a better time in which to make a profit, such deals should be terminated by means of lawful economic policies. Although such assets may represent their unquestionable property or concession, one should recall that the state has sold or leased such assets in order that such deals could bring about development, enhance our tourist product, increase our GDP and create new jobs. In order that people in Montenegro can live better.

These rectifications can be done and the Government we are voting in today is prepared to make them. Not because of demagoguery, nor because such are expectations of the critically-minded part of the public, but with an awareness that these are the only resources, the only opportunities that this state has. And that they must be conducive to development either with these or with some other owners or concessionaires. In the transition period the state was very helpful in creating an environment for business in each of the above mentioned resources. It is time to reciprocate for the helpfulness of the state by putting these resources to the intended use, adding new value and employing people. Otherwise, one must give up.

However, in order not to fall prey to an old and bad habit of dwelling on the past, the Government’s attention will wholly be focused on the issues whose tackling will determine our immediate future. In its four-year term the Government will be primarily focused on issues crucially determining the quality of life of citizens of Montenegro. In parallel, and as a prerequisite, we must within the shortest time possible restore the sustainability of public finances by balancing revenues and expenditures, tolerating in an interim period a deficit up to the cost price of carefully chosen investment priorities. Also, all the measures will be aimed at strengthening a desirable diversification of the economic structure of Montenegro, with a particular emphasis on putting to good use energy and food production resources and development of processing industry clusters. This will make the system more stable, more viable, which will also pave the way for making the best of all the potential through development of high-end tourism and services. Understandably, the fundamentals referred to above are at the same time the most important elements of a viable policy of more balanced regional development aimed at overcoming underdevelopment of the north of the country.

Honourable Deputies,

Allow me a brief reference to the situation we are in, with an emphasis on economic aspects, more particularly growth and employment generators.

In 2011 the Gross Domestic Product amounted to 3.2 billion euros. For the first time we exceeded (by abt. 3%) the GDP of 1989 – the year often referred to in comparative analyses. Despite the various international agencies’ reports confirming that GDP per capita in Montenegro is above that in most countries of the region, social dissatisfaction is understandable and real. When we take a look at the chief macro-economic indicators and analyze what we have and what we are generating, it is clear that our potential is underused. In other words GDP is significantly below what we could do, largely because we are not using our full potential, which is not managed efficiently and used in a sustainable fashion. And this calls for knowledge and education, as well as efficient and professional institutions. This means strengthening the rule of law, transparency and accountability in the public, as well as the private sector. Also, this means the right choice of policies, appropriate legislation and their efficient implementation.

In October this year the average net salary was 480 euros. The increasingly frequent discussions on the ratio between the salary and the consumer basket have overshadowed the issues such as diversification of the economy, structural reforms and adjustments, mismatch between the skills and knowledge at our disposal and those needed and efficiency of our work force, which directly determine our economic competitiveness. In addition, as a small country, we are strongly impacted by external factors and no matter how difficult the situation may be no one will help us unless we help ourselves. In the fast changing world this will for long remain a constant.

In view of the size of our economy our foreign direct investments are still high. But they must be higher. The overall atmosphere in the society and unpreparedness to take decisions efficiently has cost us withdrawal of several potential investors. A fear of uncertainty has set in among local investors, largely due to illiquidity and high indebtedness. Inadequate banking practice has put an end to entrepreneurial enthusiasm characterising the first years of independence. On the other hand the experience drives us to a necessary caution in considering in detail all the aspects so as to ensure quality, as well as long-term viability of investments. The stagnation shock has produced an impression that development has been halted, that prospects are endangered, and that nothing is happening, in particular among young people.

In which direction are we heading? In order to know where we are going we must also ask ourselves what the world will look like at least in the near future. The experience tells us that we can hardly predict everything, but we can take note of underlying trends. The globalization process is to continue.
Economic integrations will grow stronger, creating new opportunities for economic progress. At the same time there will be more uncertainty. Economic cycles will be shorter and less predictable and Euro zone’s structural problems will prove a huge constraint not only for faster economic growth, but also for competitiveness. New countries are gradually putting themselves on the map bound to become increasingly important in global economic processes. Demand for ideas, expertise, technologies and capital will be growing. The issues of unemployment and of maintaining a middle class will increase social pressure in all the countries of the world and will pose a challenge for all governments. It is in these circumstances that we will live and work.

The only way to fight the economic crisis is to work harder and do a better job. We have unused facilities, unemployed people, untapped natural resources and money in the banks frozen by fear of uncertainty. Therefore, economic recovery from the consequences of the crisis is necessarily the top priority for the new Government, which will result in a gradual improvement of the quality of life of citizens of Montenegro. Although this is a much broader, multi-layered concept, I think it sensible at this juncture to point to its three most important, priority aspects: creating prerequisites for greater employment, providing better quality of health care and improving the quality of education.


The long-lasting, deepened crisis has additionally highlighted the importance of employment issue. Unemployment is in my view the most difficult economic, social and political problem of Montenegro. Almost without exception it affects each Montenegrin family. Logically, insufficient employment is impacting the Montenegrin economy, too. The ratio of those generating and those using the gross domestic product is unfavourable. That is why GDP is insufficient, that is why we are borrowing and that is why criticism levelled at the government is most frequently over this particular issue. This problem must be the object of a priority attention of the Government, since in Montenegro, too, it predominantly affects young, often university-trained people.

The percentage of unemployment among 25-year-olds is 17% in the US, 28% in Italy, 30% in Ireland, 43% in Spain, while in Montenegro it is 20.9%. In the 15-24 age group, according to a survey by Monstat, the average unemployment rate in 2011 was 37.1%. As a comparison, for this population group the situation in the neighbouring countries is the following: Macedonia 54.9%, Serbia 50.9%, and Croatia 37%.

If, as is often the case in Montenegro, just one family member has a job, with an average salary of 480 euros, this makes it difficult for such a family to make ends meet. Against the backdrop of the crisis, when all the states in the region, as well as many in the EU have already resorted to restriction of wages and salaries in order to reduce public spending, it is hard to foresee in a near future in Montenegro a rise in wages and salaries in real terms that would have a significant impact in terms of an enhanced quality of life. It seems more realistic to try and create conditions for employment of other members of the family, too. Obviously, I do not mean unproductive employment in the already excessive administration, but employment in those activities that generate a new GDP.

In Montenegro this issue is very much linked with attracting direct foreign investment. Not only because of shortage of investment capital in the country, but also in view of the need to overcome a pronounced deficit of entrepreneurial expertise and experience. Namely, it will be much easier to mobilize our local entrepreneurship, small and medium-sized businesses if they can have larger investment projects to stimulate them and provide logistics. That is why it is an imperative, not just for the Government, but for the overall policy of the state, in particular at this time of the crisis when fight for each million of investment capital is stepped up, to offer to potential investors better conditions than others. Expectations that investors will come anyway and that pursuing their interest they will rush into spending large amounts of money – if these have ever been realistic, they are totally outdated against the backdrop of the crisis. Therefore, we must fight for investors. And in particular in present circumstances this will be the criterion that will determine the quality of any government policy in the world. In taking on this task I particularly wish to stress the importance of a competent, accountable, professional administration, as well as of strengthening the rule of law, transparency and accountability in both public and private sector. And consequently the crucial importance of efficient decision making. I have an impression that in a part of our administration, state and local, an atmosphere of fear of making decisions and of taking responsibility has set in. Each decision, understandably, entails a risk of a mistake and in our situation also a certainty of criticism in the media, as well as from the part of politicians. Failure to make decisions is apparently a comfortable choice, which carries no risk and no consequences. But we have to change this. Failure to take a decision, and within a strict time frame provided for under the law, will be an eliminatory criterion for the new administration.
Not only at ministerial level, but for each employee in the public administration, local government, public enterprises and services. I dare say that in each citizen of Montenegro we must raise awareness that our most important national interest is to contribute to a vigorous growth of investment and business and an early restoration of economic growth and development. Without this, or with an attitude to the contrary, there is nothing for us to do but, as was our habit for far too long throughout our history, indulge in futile criticism, muse on missed opportunities, live from hand to mouth instead of making the most of the century we have at our disposal.

The belt-tightening philosophy, as much as it may be necessary after several years of development and consumer boom, has mostly exhausted its capacities. Montenegro must set out to create a larger domestic product. Construction of new infrastructure and power facilities is not just an opportunity to add new value and create new jobs, but it is most often an indispensable path in tackling development bottlenecks that are a constraint to our efforts to develop specific activities faster and use all our potential more effectively, in particular in the north of the country. As these are very costly development projects for which we in Montenegro have neither the necessary capital, nor enough experience, the importance of continuous upgrading of an inspiring environment for foreign investors is additionally highlighted.

In this context it is of particular importance that as soon as possible we should make decisions to build new roads: a highway leading towards the north; a railway extension towards Pljevlja and a good road connecting Montenegro with the Adriatic-Ionian corridor. The more so as each of these facilities is a prerequisite for a better transport integration of Montenegro in the network of regional and European transport corridors, without which a desired pace of the country’s economic development is unthinkable. Besides, we must make use of all our energy potential more efficiently. It is by restricting consumption of the largest industrial consumers, in the first place KAP, that we have created preconditions for a more stable power system. This, of course, cannot be an adequate long-term formula. Since its application has reduced the manufacturing output and exports and decreased the need for jobs. The time of development that we talk of will inevitably (as something desirable) entail higher consumption of electricity, both in manufacturing industry and among citizens. This is why we must create as soon as possible conditions that will allow us to utilize to a fuller extent and in a sustainable fashion our coal deposits, our hydro potential and in particular new clean energy resources. An additional production in this field will create an expensive export product, which we can capitalize on well on the European market thanks to the transmission infrastructure project that we are implementing together with the Italians. Within the shortest time with chosen partners we will proceed with gas and oil exploration in order to verify this development opportunity and enhance the prospect of strengthening full energy stability of Montenegro.

Of course, partnership with strategic investors is also very important in order that we may fully utilize the development potential in the field of food production and processing industry. Instead of constantly resurfacing dilemmas on whether we will in future need the few industrial facilities we have and most often lightly made judgements by non-experts, it makes more sense to try, through cooperation with good strategic partners, to promote a higher level of processing and development of clusters in the fields in which in Montenegro we have a certain level of industrial expertise and experience. A continued passive attitude towards insufficient use of food production potential , in particular in the north of Montenegro would be even more difficult to understand. Through a comprehensive, well-thought out food production concept we must set out to strongly and over a short period of time reduce the need for inexplicably high imports of these products. By being more active and by showing more initiative when it comes to dealing with each individual investor we will try to help give momentum to the implementation of tourist industry projects that have already got under way, as well as those defined in contracts signed to date. Also, by adequately promoting new opportunities, in particular those that have been given clear guidelines through spatial planning documentation (in the Coastal Management Agency zone, as well as the areas of Bjelasica, Komovi and Durmitor) we need to start using the opportunities that are to ensure for Montenegro the status of a high-end tourist destination. All of these are, I believe, very promising opportunities that can give a fresh momentum to development processes and ensure higher employment of Montenegro’s population.

Also, family business development coupled with efficient removal of barriers to business is directly conducive to resolving the issue of unemployment. We will not be able to improve competitiveness, nor create new jobs without adequate education, know-how and skills. That is why we have to make continuous efforts to develop a life-long entrepreneurial learning process in accordance with the established strategic framework, best international practices and specific needs of the Montenegrin economy. Only in this way can we deal with this fundamental deficit.

Consequently, the role of the Investment Development Fund should be more aimed at a practical support aimed at strengthening entrepreneurship and family businesses and less at transformation into a development bank. The new Government will try to motivate, in particular young people, to go into business and it will work with private sector institutions engaged in promoting entrepreneurship. We will also seek to strengthen coordination and capacities of various institutions so as to ensure effectiveness of policies and strategies that are in force.

We need to continue with efforts to strongly reduce still considerable barriers to business, i.e. debureaucratize the system. This is a conclusion to be drawn, inter alia, from numerous reports of international institutions that monitor ease of doing business, economic freedoms, business environment, etc. And while the big picture is positive, the situation is different when viewed from the angle of specific key components. Thus in the most recent World Bank aggregate-based report we occupy 51st place , whereas by the building permit procedure we occupy the 176th place. Looking for pretexts will not help. I have in mind the habit of shifting the responsibility from state to local administration and vice versa. Because mistakes and slowness of both ones and the others produce consequences that we seated in this room are responsible for. That is why simplifying the procedures - cutting red tape, improving the environment for business and removing barriers to business, in particular that creating new jobs, will be a continuous task of the Government.

We will consider all the suggestions relating to the legislative framework, particularly the Labour Act, because our labour market is still not flexible enough. We will continue with harmonization of other regulations and policies, as well as further strengthening of economic freedoms.

Therefore, as Government we will stand ready to bear the brunt of responsibility. But growth of employment will to a large extent also depend on the attitude and readiness of each individual to actively and responsibly participate in creating, as well as taking opportunities. The time of recovery is not a time in which to look for ideal, but above all for responsible and sustainable solutions.

One of the most important issues for the living standard of each individual is quality of health care. That is why this is also a major challenge for the policy of the new Government. A fairly long previous period was characterized by an intense process of health infrastructure development; a lot of efforts and resources have gone into professional development of the medical personnel and purchasing of modern equipment. After reforming the primary level health care, the Government will proceed with hospital system and Clinical Centre reform.

With a view to ensuring better resource utilization, greater mobility of physicians and access to new diagnostic technologies, the Government will, by streamlining the network of health facilities, set up eight healthcare centres and, by further integration of two regional centres, the Clinical Centre of Montenegro. Also, by defining a new package of services, introducing protocols and clinical guidelines and a new payment model (DRG) the Government will work to ensure a systematic enhancement of the quality of health care.

Incidence of and deaths from cardiovascular and malignant diseases in Montenegro have reached levels of EU countries and are very high. That is why the Government is determined to implement already adopted and partly tested National Programmes for prevention and early detection o characteristic malignant diseases. Additionally, through multisectoral policies the Government will put efforts into combating and elimination of risk factors (the use of nicotine, alcohol, stress, unhealthy eating habits, lack of physical exercise) in order to reduce incidence of and deaths from heart and vascular diseases.

Since demographic parameters point to an aging population trend, the Government has the responsibility to show necessary sensitivity and ensure, by reallocating resources, streamlining and a new organisational set-up, a better and continuous health care coupled with defining capacities for palliative measures. This will be made easier in view of the current excess of hospital beds in the Montenegrin health system.

Creating a healthy environment for work and life of young people is a priority task of this, as well as all future Governments.

Through educational work, promotion of healthy life styles, as well as energetic action of institutions of the state we will fight the use of alcohol, tobacco and narcotics and thus raise the level of the fight against all forms of addiction.

The Government will continue to promote the model of private and public partnership in the field of health care and will create an investor-friendly environment. In order to ensure access for citizens to the service that is currently not available, the Government will continue with inclusion of additional private health service facilities in the network.

The Government will implement the adopted Strategy for improving quality of health care and patient safety through the process of accreditation of health service facilities in order to ensure standardization of services, as well as an improved and measurable quality of service.

Despite considerable funds allocated for health care in Montenegro (abt. 5.1% of GDP), the quality of service does not meet the expectations of the citizens. That is why the health care system, as well as the authorities in general, are very often the target of citizens’ criticism. And this is more than enough to push the Government to take on with full commitment real, as well as thus perceived problems. Through a responsible management from the Ministry level, as well as new managing bodies of health institutions we will put in place an enhanced level of professional accountability, coupled with a zero tolerance for corruption. The introduction of complementary voluntary insurance will raise the expectations of the citizens and we must be prepared to meet such expectations.

Good quality of education of the young generation is the strategic prerequisite for a successful future of Montenegro.

This Government will in the forthcoming period, too, ensure investment in construction of new and reconstruction of the existing infrastructure and it will seek to enhance educational standards in all educational institutions in Montenegro.

We will continue with efforts to increase access to pre-school and elementary education, promote flexibility in teaching curricula and subjects of instruction, and strengthen mechanisms aimed at ensuring access to education for children with special educational needs …

While ensuring a better quality of education for each child, we will continue to improve the educational system at the level of general, secondary school and vocational education in order to enable them to develop professional competences and enter the labour market or continue further education.

I draw your attention to the Strategy for University Education and the need to bring enrolment policy in line with demands of the labour market.

Enrolment policy must take account of the rule of supply and demand and be in conformity with strategic documents concerning specific social and economic development of Montenegro. A prompt and well-thought out response is necessary in this regard in order to prevent further adverse consequences of a structural mismatch between the education market and the labour market.

But, gaining an insight into a real quality of our university education and defining concrete measures for its enhancement is I believe our most important task.

Towards defining a sustainable university education model we will support a crucial phase of reform of the State University – its internal transformation and integration. By a proven and recognized method of re-licensing by an independent foreign accredited agency we will carry out an adequate analysis and get an objective picture of the condition of all the existing universities and colleges in Montenegro.

Besides, a model of licensing and re-licensing for teachers, educators, teaching assistants and heads of educational institutions must provide a basis for the establishment of a quality system in the education process and a reliable indicator of advancement of this for the society undoubtedly important profession.

The process of structural reforms in the field of education – at all levels – is in any case difficult and arduous, even if we disregard problems and challenges linked with the crisis. We will therefore have to work even harder, more systematically and with more dedication. We must not delude ourselves by achievements on paper. We must not refuse to face up to a single embarrassing truth...

We must have a better quality education system, it must be more flexible, more efficient, more in tune with specific needs of our model of sustainable development. In parallel, at all education and training levels we need to promote entrepreneurship, gaining of practical knowledge, creativity, research and innovativeness.

Only such an education system can guarantee a desirable quality of knowledge, as well as shaping of personalities of new generations based on fundamental values. And only on the basis of such knowledge and skills can we aspire to achieve the goals we have set and competently plan tasks concerning Montenegro’s future.

European and Euro-Atlantic goals remain a constant for this Government, too. All that we will be doing towards achieving our program priorities will be intertwined with our obligations under the integration agenda. On the other hand, this is most directly linked with accomplishment of our major task – improvement of the quality of life of our citizens. The previous Government has done an excellent job in the integration process, which will prove stimulating for us, too.

The new Government will focus more on accelerating the pace of our progress towards Euro-Atlantic integration, as Montenegro is expected to make a decisive step towards NATO membership during its term of office. We are likely to receive an invitation to join NATO at the next summit dealing with the enlargement issue. Or more precisely, we will do our best to ensure that this happens.

As was the case in the past, time frames will not be given priority, but that does not mean that we do not need a realistic analysis of the current situation and a projection of possible dynamics for the stages to come. Previous programs within the Partnership for Peace, successfully implemented two, and recently initiated third MAP cycle, make this goal realistic. We have to be even more decisive in the reform of the Army and defence and security systems, and maintain the credibility of Montenegro as a reliable partner to the Alliance and the international community. Together with the Parliament and the civil society, the Government will put in place a more aggressive campaign, in order to attract greater public support for the achievement of this strategic goal. Our public needs to be informed in more detail about the opportunities that Montenegrin membership of NATO would bring to the state and to all our citizens. Membership of the Alliance will involve greater security, primarily for our citizens, but also for investors and tourists, as well as all our neighbours. It will encourage our development, sustainability and success of our reforms, and strengthen our course towards united Europe. It will also assist in and enable faster meeting of the criteria from Chapters 23 and 24.

Interrelation between NATO and EU integration processes is much more pronounced in our region than it was, and still is, in other parts of Europe. For a small Balkan country, such as Montenegro, NATO represents a guarantor of continuous stability, which is especially important in times that are increasingly burdened with new challenges.

Montenegro is dynamically moving towards the EU. This remains our general course. The Government is ready to responsibly continue with these activities in the negotiation stage. A great impetus for us is the fact that, out of all the countries created after the fall of the Berlin Wall, Montenegro was the fastest one in passing the road from independence to the opening of negotiations. Each step closer to the EU will actually involve improved standards and living conditions, and more stable prerequisites for further development. At the same time, this will encourage employment and promotion of other aspects that have a significant impact on the quality of life of each and every individual.

Progress in EU integration involves strategic harmonization, not only with the acquis, but also with the key strategic development documents in Europe. The activity program and priorities of this Government are fully compatible with the “Europe 2020 Integrated Guidelines”. Just to remind you, these include: increased employment; investment in research, development and education; poverty reduction and environmental protection.

Having said so we are aware that, when the time comes, Montenegro will join a different Union compared to the EU today. Legal, as well as institutional organization of the EU will change in many aspects in the process of developing the architecture of the new economic, financial and political integration. In the years to come, this will make our tasks even more challenging, and create an even stronger obligation for all of us to start thinking now about how to best protect and promote the interests of Montenegro in the future European family.

I believe that the crisis will not call into question the EU enlargement policy and that its contents will not predominantly involve setting additional criteria for the new candidate countries. We understand the raising of the bar in this process, but we also expect, so to speak, an encouragement to jump over it. Enlargement would make no sense if it were to boil down to wishes on one hand, and conditions on the other. It is necessary to preserve the two-way interest in the process and build a true partnership. This because it is only a united Europe that can be stable and economically prosperous and thus globally competitive in future. Otherwise, one day we could all find ourselves on a hard shoulder ending in an impasse. That is why we think and speak about Europe as Europeans and not as people from the Balkans, because this is our home and our future, too.

During the term of office of this Government we expect opening of negotiations in almost all the chapters, and closure of those in which we meet the criteria. Right after the screening process, we will start drafting the new National Accession Program (NAP). This Program will specify the tasks, as well as the manner of harmonization with the criteria arising from the negotiations. In parallel with that, we will undertake preparatory actions to program resources from the EU pre-accession funds for the upcoming seven-year period, in the expected amount of EUR 200 million.

This Government, too, will pay special attention to furthering the rule of law, that is, to the fight against corruption and organized crime. We will present detailed action plans for chapters Justice and Fundamental Rights (Chapter 23) and Justice, Freedom and Security (Chapter 24) to the European Commission and the member states in the course of the year to come, so that we can open these two most important chapters in an early stage. At the same time, this will be a good recommendation for an early NATO membership.

As the first country in the enlargement process that is starting the negotiations in this order, Montenegro will present a consistent and detailed plan of all the activities in the field of the rule of law, with clearly defined measures, implementing agencies, deadlines and indicators. There is no rule of law without adequate laws that are enforced and observed in practice. We will make Montenegro such a state. For the sake of our citizens primarily, but also for the sake of foreign investors and tourists. It is only a well regulated state of Montenegro that can provide relevant guarantees to all in regard of their work and stay here. This is a prerequisite for progress in economic and financial terms, a prerequisite for progress in integration, an important precondition for the achievement of our key goal – a better standard of living for our citizens and a better overall social standard.

The Government will do its utmost to unite and mobilize the capacities of the whole society. Civil society involvement and contribution already represents a valuable support. I see the process of European and Euro-Atlantic integration as an opportunity for this generation, an opportunity for all of us to participate in creating a better future. And I believe that we will make use of it, thus changing both ourselves and our country Montenegro.

I am certain that progress in European and Euro-Atlantic integration will strengthen the awareness of the need for faster overcoming of divisions and internal controversies, i.e. the integration of the Montenegrin society from within.

Still ongoing dilemmas about identity issues reflect a hundred-year-long struggle between those in favour and those against the Montenegrin statehood. Although we have ended the most important dilemma in 2006, through a democratic process, it seems that there are still some doubts and uncertainties in this regard. The external reasons are well known. Some of the internal ones are also well known, because they have to do with day-to-day politics. Their source is not infrequently in the lack of self-respect, and without it Montenegro does not need us, nor does anybody else. For that reason we have to rid ourselves from the inferiority complex as soon as possible. Historically, Montenegro does not owe anything to anyone, and our present and future generations need to understand this clearly.

By building a sense of allegiance to Montenegro, we uplift ourselves, too. As politically responsible people we are obliged to develop a distinguishing identity of Montenegro. And this identity is not made of symbols only, although they do contribute, but also of our knowledge, capacities and readiness to build a modern society. Identity represents our ID card today and tomorrow – in the multi-centric and multicultural Europe. A democratic spirit and tolerance that we cherished over the past two decades in the decisive moments, including the referendum process, have helped us to protect Montenegro from conflicts and devastation. This is the heritage that generations to come will be proud of, while we who live here today may not even be aware of its importance. This was presumably far more difficult part of the road than the one that we are treading today. Irrespective of all our differences and disagreements, we must act in the spirit of devotion to something that unites us, and that is Montenegro and its prosperity. Serving Montenegro means working more, working harder and in a more responsible manner. We can and must do this. This is our common home, regardless of our nationality or religion. This Government will do its utmost to promote identity cohesion in multicultural and multireligious terms. This involves our full care of all nations and minorities, and their cultures in Montenegro. All of us together must make sure that no one’s rights, as well as expression and fostering of individualities are encroached upon. The Government will make sure that the highest European and global democratic achievements in this field are observed. Accordingly, we will not permit jeopardizing or denial of the Montenegrin nation, language and church. And no person, no matter from which side, will be allowed to use the identity issues as a pretext for failure to act and for obscuring the issues of vital importance for the future of our country. Thus, the Government will seek to adequately promote Montenegro’s culture, fully aware that our cultural diversity represents the pillar of the civic and national identity of Montenegro.

We will be faster in ridding ourselves of remaining traces of retrograde views and overcoming identity ambushes if we demonstrate more sensitivity in defining and implementing our youth policies. This program offers an opportunity to young people, too, to demonstrate their energy and courage, to be promoters of change, and to leave their imprint on modern development of Montenegro. Transition from industrial towards information society, from quantitative to qualitative economic growth still represents an opportunity for small countries like Montenegro, and especially those with a well-educated and dynamic young generation. We will likewise be fully committed to building a society of intergenerational solidarity. Here, there is no need to reinvent the wheel; we should just follow Montenegro’s tradition.

The Government will pursue a more active policy towards our Diaspora, having in mind the necessity to integrate all the available capacities and reach a broad consensus concerning recovery from the crisis and further development and progress of Montenegro.

Honourable Deputies,

The environment in which the new Government will work, upon receiving the expected endorsement from you, will put to a difficult test our capacity to stop unfavourable economic trends, ensure economic recovery and facilitate a balanced and sustainable development of Montenegro. At the same time, this is in my view also a unique opportunity to prove that, in spite of political and ideological differences among us, by promoting shared objectives, those we have all stated our commitment to - the rule of law, a more just and well-off society, society of equal opportunities - we can rise to the challenge defined as a strategic consensus. In essence, I am talking of a necessary, or to put it more precisely, an unavoidable process of internal integration and emancipation. This means that our overall potentials and knowledge need to be consolidated and mobilised in shaping further our common future. It also means democratic capacity for dialogue, tolerance and compromise that will not affect fundamental democratic values and principles – the capacity to assume responsibility for one’s own destiny and development, for the decisions that we need to make ourselves, and bear the responsibility for their consequences. Only a democratic capacity understood in this way may lead to progress, stability and sustainable development.

I think this is the time to make such an important step forward in our emancipation. All of us who are sitting in this honourable house have already stated that the past, most important statehood issues that used to set us apart, have been resolved. And that we will respect the democratic will of citizens. We also claim that we have at heart the well-being of Montenegro and of each and every one of its citizens. Well, this is the opportunity to prove it.

It is not easy and it will not be easy. Fully aware of this and with cautious optimism, the new Government is assuming the responsibility to lead the country towards economic recovery, continue the reforms and maintain the pace of integration in NATO and the EU, as well as the important position that Montenegro has in our region.

The time ahead calls for determination and wisdom rather than dilemmas. Dignity and self-confidence rather than inferiority. Mutual respect, and not continuous levelling of accusations. Trust instead of prejudice and suspicion. More solidarity at both personal and social level. The obligation to conduct ourselves in this way is imposed on us by the Montenegrin humanistic tradition, as well as the idea of Europe and European humanism.

The scale and duration of the crisis makes it additionally imperative that we strengthen cooperation among all branches of power, political parties, the highest institutions of the state, non-governmental sector, universities, media, trade unions...

The road that we are treading is full of challenges, but I believe that together we can make it. It will require fundamental changes, including personnel changes at all levels. Shallow political rhetoric, unfounded labelling and obstructions bring no good to anyone. My hand remains extended to all. We can hope for a faster recovery and progress if we work together, if we take advantage of the experience and expertise we have, if we can manage to faster overcome our divisions and disputes. The issues that this Government will deal with are of critical importance for both our citizens and the state. Resolving these issues will require an efficient and competent Government. I stand ready together with the Government to assume that responsibility before you and before the Montenegrin citizens. But I expect the same kind of responsibility from others, at all levels.

Let me take this opportunity to thank the previous Government led by Mr Luksic for meeting significant obligations in difficult circumstances and thus paving the way to moderate optimism that we will manage to take Montenegro towards economic recovery and fulfil our obligations towards achieving strategic development and foreign policy goals. In any case, proper recognition for the previous Government is the fact that a majority of its members, including the former prime minister, will continue to work in the new Government as well.

On the basis of the program presented and article 103. paragraph 2 of the Montenegrin Constitution, I propose the following Cabinet line-up:

- Deputy Prime Minister and Minister of Foreign Affairs and European Integration – IGOR LUKŠIĆ, PhD, born in 1976 in Bar, with a PhD in economic sciences, former Minister of Finance and Deputy Prime Minister, and most recently Prime Minister of the Government of Montenegro;

- Deputy Prime Minister for Political System, Internal and Foreign Policy, and Minister of Justice - DUŠKO MARKOVIĆ, lawyer, born in 1955, former director of Agency of National Security and minister without portfolio, and most recently Minister of Justice and Human Rights;

- Deputy Prime Minister for Economic Policy and Financial System and Minister for Information Society and Telecommunication – VUJICA LAZOVIĆ, PhD, (incumbent), PhD in economic sciences, born in 1963, former Dean of the Faculty of Economics;

- Deputy Prime Minister – RAFET HUSOVIĆ, born in 1964, with a degree from the Faculty of Mathematics and Sciences, president of Bosniac Party, former minister without portfolio;

- Minister of Defence – MILICA PEJANOVIĆ ĐURIŠIĆ, PhD, born in Niksic, DS degree in electrical engineering, major: telecommunications, full professor at the University of Montenegro, expert of UN Union of Telecommunications of Geneva (incumbent);

- Minister of Interior – RAŠKO KONJEVIĆ, born in 1979, master of science in economics, vice-president of the Social Democratic Party, former member of Parliament as representative of SDP;

- Minister of Finance – RADOJE ŽUGIĆ, PhD, born in 1961 in Novakovići, Municipality of Zabljak, with a PhD in economic sciences, former governor of the Central Bank of Montenegro;

- Minister for Human and Minority Rights – SUAD NUMANOVIĆ, internal medicine specialist, born in 1960 in Bijelo Polje, former Minister of Labour and Social Welfare;
- Minister of Economy – VLADIMIR KAVARIĆ, PhD in economic sciences, born in 1973 in Podgorica (incumbent);

- Minister of Sustainable Development and Tourism – BRANIMIR GVOZDENOVIĆ, born in 1961 in Bar, graduated from the Faculty of Electrical Engineering, former deputy prime minister and minister, most recently political director of the Democratic Party of Socialists;

- Minister of Agriculture – PETAR IVANOVIĆ, PhD, born in 1965, PhD in economic sciences, former director of Montenegrin Investment Promotion Agency;

- Minister of Transport and Maritime Affairs – IVAN BRAJOVIĆ, born in 1962 in Podgorica, with a degree from the Faculty of Civil Engineering, former minister of internal affairs;

- Minister of Labour and Social Welfare – PREDRAG BOŠKOVIĆ, MS, born in 1972 in Pljevlja, former minister of economy, chairman of the Board of Directors of Pljevlja Coal Mine;

- Minister of Culture – BRANISLAV MIĆUNOVIĆ, born in 1852, graduated from the Faculty of Dramatic Arts (incumbent);

- Minister of Education and Sports – SLAVOLJUB STIJEPOVIĆ, born in 1959, lawyer (incumbent);

- Minister of Science – SANJA VLAHOVIĆ, PhD, born in Bar, PhD in leadership from the Belgrade Faculty of Management (incumbent);

- Minister of Health – MIODRAG RADUNOVIĆ, PhD, born in 1959 in Berane, PhD in medicine (incumbent), former Minister of Labour and Social Welfare;

- Minister without Portfolio – MARIJA VUČINOVIĆ, President of HGI (Croatian Civic Initiative), shipbuilding engineer, technical director of Public Water Supply Utility in Tivat.

Looking forward to your approval of the proposed Programme and composition of the Government, I would like to thank you for your attention.

Podgorica, December 4, 2012