Government adopts Montenegro’s 2012-2015 PEP, aims at boosting competitiveness and growth, reducing crisis effects

Podgorica, Montenegro (27 December 2012) – At today’s Cabinet session, the Government of Montenegro adopted the Pre-accession Economic Programme (PEP) for 2012-2015, drafted by the Ministry of Finance.

The 2012-2015 Pre-Accession Economic Programme outlines the policies and structural reforms that need to be implemented over a three-year period. It will serve as a basis for creating a consistent economic policy aimed at boosting Montenegro’s economic competitiveness, mitigating the negative effects of the new wave of the economic crisis, and establishing a stable basis for a sustainable growth in the long term. 

The PEP provides two macroeconomic and fiscal scenarios: baseline and lower growth scenario. Real GDP growth in the medium term is forecast at 2.5% in 2013, 3.0% in 2014 and 3.5% in 2015. The lower growth scenario is based on the assumption of growing negative trends in the eurozone: the recession, reduced loan activity, and higher unemployment. This scenario forecasts the following GDP growth in real terms: 1.0% in 2013, 1.5% in 2014, and 2% in 2015.

The 2012-2015 Pre-Accession Economic Programme will be submitted to the European Commission by late January 2013, followed by assessment and presentation of assessment findings at the ministerial meeting with candidate states and the European Commission in May 2013.

The PEP is part of the pre-accession fiscal surveillance procedure, which aims at preparing the candidate countries for the participation in the multilateral surveillance and economic policy co-ordination procedures currently in place in the EU as part of the Economic and Monetary Union.