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Questions to the Prime Minister: Employment, social measures, rule of law, EU integration, economy, argument with MPs

Published on: Nov 22, 2013 7:05 PM Author: Bureau
• Government undertakes measures to stimulate employment of university graduates, Montenegrin citizens, set to lower unemployment, PM Đukanović says in question time 
• Child and social care to be further improved, solidarity in society needed in times of crises 
Irresponsible companies with long-standing debts and late payments sanctioned and good ones stimulated towards further growth of economy 
• Government strongly devoted to improving the rule of law and progressing in EU integration 
• Prime Minister exchanges harsh words with MPs, apologises to the Parliament and public 


Podgorica, Montenegro (22 November 2013) – Questions to the Prime Minister session was held yesterday at the Parliament of Montenegro, where MPs got to ask the Prime Minister about the Government’s policies and activities. The most important topics covered at yesterday’s PMQ were employment; social measures; insolvency of companies and late payments; the rule of law; and EU integration of Montenegro. The Prime Minister explained Government’s policies and planned activities in these areas, putting an emphasis on the goals of economic growth, EU and NATO integration, and improving social care. Prime Minister Đukanović entered into an argument with a group of MPs and exchanged harsh words with them, after which he apologised to the Parliament. 


EMPLOYMENT 

Prime Minister Milo Đukanović responded first to the question on how the Government plans to combat rising unemployment among youth. He noted the Government is aware of this issue, which is spread across Europe, and has introduced a number of measures, most important of which is professional training of university graduates. This programme, introduced in 2012, enables young graduates to apply for positions in companies and state institutions of their choice, which tnen select them based on academic merit and prepare them for the job market over the course of nine months. This year, the programme has been adjusted to accommodate the market needs better, and the focus is now on the private sector, with only a few state institutions offering positions in education, health, police, military, and state-owned companies. 

The Prime Minister stressed the Government has introduced measures to stimulate employers to hire university graduates by subsidising companies that do so, and has launched a programme to stimulate entrepreneurship, offering favourable loans for self-employment in the form of starting small- or medium-size enterprises. 

Mr Đukanović underlined the Government pays special attention to domestic work force employment during the summer season and in tourism in general. He reminded of Government activities aimed at promoting employment of Montenegrins on new tourism projects, such as Kumbor, noting that investment in tourism in the next few years is expected to reach the sum of EUR 3 billion. 


SOCIAL MEASURES 

The Prime Minister received a question on how the Government plans to combat poverty of most vulnerable groups (pensioners, people with disabilities, children, and people receiving social care). 

He noted that especially in times of economic crises social insecurity is on the rise, and the budgetary funds are declining, and added that it is of utmost importance to improve social care and institutional framework for helping citizens with such problems. He also reiterated solidarity is needed for most vulnerable groups in the times of economic crises. 

Mr Đukanović underlined the new law on social and child care (in force since June 2013) enhances the framework for protection by providing for more means and better job opportunities for the work force belonging to that group. He noted that the 2013 budget provides more than EUR 52 million for social and child care, which will rise to almost EUR 56 million in the 2014 budget. 


ECONOMY 

An MP asked the Prime Minister how the Government intends to solve the problem of late payments and incurred debts, which affects company solvency and good trading practices and harms the economy. 

The Prime Minister responded that the Government recognises the negative implications outlined by the MP, and explained it has undertaken, on its own and together with the Central Bank, a number of measures to overcome this issue. He mentioned in particular the amendments to the law on payments aimed at ensuring better transparency and public disclosure of blocked accounts with a view to stimulating healthy economic practices. He also discussed the new draft law, made together with the World Bank, on voluntary restructuring of loans, with new measures stimulating the banks and companies to harmonise the assessments of credit portfolios with post-crisis economic conditions of debtors. This would, the Government believes, allow for easier recovery from financial hardship through well timed restructuring of debts by debtors able to maintain the sustainability of their activities, and would aid the stability of the financial sector.

EU INTEGRATION 

Answering to the question on EU integration and this year’s and next year’s EU Commission progress report, the Prime Minister noted Montenegro has made a long way in short time – six years from restoring to EU accession negotiations. He stressed this year’s report has been very affirmative and has confirmed Montenegro’s dedication to its EU agenda. He noted Montenegro is drafting the Accession Programme 2014-2018 which will outline a detailed approach to reforms needed in economy and institutional and political development. He underlined that monitoring of the measures from the Programme will ensure easy checking of achievements and further tasks in harmonising with the EU’s legal system. 

The Prime Minister voiced the Government’s awareness of the need to develop the available capacities further in order to continue with the pace of negotiations the country envisages. He noted the Government expects Chapters 23 and 24 to be opened soon, and would be followed by other chapters in 2014. 

The MP noted that insolvency and tardiness in debt payments is among the biggest problems of Montenegro’s economy, and noted that on 30 September 2013 total debt among companies in Montenegro amounted to EUR 421 million, and that virtually one in four companies has a blocked account (12.449 out of 54.119). He warned this debt is probably even higher, as the EUR 421 million referred to include only accounts blocked by the courts. He explained this insolvency is due to misuse by certain companies, who have little to no competition, or are too powerful and are abusing such market position to set their own terms, which harms smaller business and hampers trade. 


RULE OF LAW 

Responding to a question by MP from opposition party Positive Montenegro implying certain persons are exempted from the legal system in Montenegro, the Prime Minister noted the Government assigns top priority to strengthening the rule of law. He underlined these efforts have been recognised by the citizens, and the institutions in which we want to integrate – EU and NATO. He reminded that action plans for Chapters 23 and 24 have been prepared, as well as the negotiating positions, by working groups comprising all society’s stakeholders, and mentioned other activities in the country aimed at boosting the rule of law and the division of power. 

The Prime Minister noted such activities are well known to all those interested in political processes in Montenegro, and invited the MP to be more precise in disclosing the information he might possess as regards the issue of alleged exemption of certain individuals from the legal system, as he has not been precise in his question. 

During the question time, Positive Montenegro’s MP has stated, without offering evidence, the Prime Minister has committed bad business practices and has accused him, on a personal level, for incompetence. To this, the Prime Minister responded with remarks that Positive Montenegro advocates the interests of what he dubbed as Montenegro’s ‘media mafia’ set to tarnish the Prime Minister’s reputation. Another Positive Montenegro MP took the floor to protest and sent a demanding and fervent request to the Prime Minister never to utter such words in the Parliament again. As he later explained, the Prime Minister felt his individual integrity has been attacked and has responded with personal remarks and harsh words addressed to the MP, after which the Positive Montenegro MPs left the Parliament. After retaking the floor, the Prime Minister apologised to the MPs, to the house, and to the public for his harsh words, but noted he does not apologise to those who take it as their right to insult him.
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