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Press release from 132nd Cabinet session

Published on: Aug 2, 2019 • 2:20 AM Author: PR Service
Podgorica, Montenegro (1 July 2019) -- At its 132nd session, the Montenegrin Cabinet passed the Draft Law amending the Law on Road Transport.

The Cabinet also passed the Draft Law amending the Law on International Legal Assistance in Criminal Matters, which further aligns the legal framework of Montenegro with the European Union's standards. The proposed law, passed in order to adapt to new circumstances and the dynamics of changes in the fight against crime with elements of foreign countries, stipulates, inter alia, the establishment of joint investigation teams as one of the most effective instruments in the fight against cross-border crime.

The Government adopted the Macroeconomic and Fiscal Policy Guidelines for the period 2019 - 2022, which include: medium-term strategic economic and fiscal policy goals, basic macroeconomic and fiscal indicators and spending projections and limits, and set the basis for budget preparation for the next fiscal year. The macroeconomic and fiscal policy guidelines project a real economic growth of 3.1% in 2019, which was assessed as a high growth rate after strong growth in the previous year. Projected average real growth rate of the Montenegrin economy in 2020-2022 is 3%. In the period 2019 and 2022, cumulative real GDP growth will be 12.6%. The growth will be based on continued investment activity, diversification of domestic production and exports, and further improvement of fiscal position.

The macroeconomic and fiscal policy guidelines envisage the continuation of measures to further strengthen the stability and sustainability of public finances, with the projection of reducing the central budget deficit to 2.97% of GDP in 2019 and the achievement of the central budget and public finances surplus as a whole in 2020- 2022 at the average rate of 1.83% of GDP annually. The guidelines provide for a reduction in state debt to below 60% of GDP in 2022. Net public debt is projected at about 67% of GDP in 2019, and will gradually decline to 57.6%  of GDP in 2022. The medium-term macro-fiscal framework, according to this document, will be characterised by a surplus of public finances and a level of public debt in line with the Maastricht criterion.

Today's session adopted the Report on Activities for Suppression of Gray Economy, with the proposal of measures for the suppression of the gray economy and the Analysis of the situation in the field of business registration with measures for its improvement. The analysis details the current status of the business registration process and outlines the basic shortcomings, which are explained by comments collected from the private sector. Furthermore, the report contains a description of the desired state, which implies the possibility of complete electronic registration of companies, that is, simplification of the process for those entrepreneurs who decide to start their own business or register changes by coming to the counter of the Central Register of Business Entities. As business registration is one of the most important indicators for monitoring a country's competitiveness, the document provides an overview of the Doing Business methodology and the proposal to change the organisational status of the Central Register of Business Entities. The Government tasked the ministries of economy, public administration and finance, as well as the Department of Public Revenues and the Secretariat of the Competitiveness Council, and recommended to the Central Bank of Montenegro to start implementing the activities set out in the Action Plan.

The Government adopted the List of Priority Capital Projects financed from the State Capital Budget in 2020 and tasked the Public Works Directorate and the Transport Directorate to submit to the Ministry of Finance, by 15 September, an estimate of the value of the projects and the dynamics of project implementation so that the Government can determine the final list of capital projects for the next fiscal year within the Draft Budget Law for 2020.

The cabinet gave its consent to the Draft Decision on the amount and manner of calculation and payment of fees for the use of goods of national parks. 

The fee for entry into the national parks of Montenegro will remain at the current level, and the fee will not paid by children under 12, organised groups of students of the Faculty of Natural Sciences and Mathematics - Department of Biology, and the Faculty of Philosophy - Department of Geography, researchers - experts, representatives of the diplomatic corps, representatives of the National Tourism Organisation, people with disabilities and journalists. Fees for entering national parks, visiting visitor centres and educational trails are reduced by 50% for organised groups of students, retirees, trade unions and mountaineering societies. No fees for entering national parks will be charged on 22 April (Earth Day), 21 May (Independence Day of Montenegro), 22 May (International Biodiversity Day), 24 May (European Parks Day). Also, no fees will be charged for entering national parks Skadar Lake - on the second Sunday of June (Skadar Lake Day), Durmitor NP - on 6 September (Durmitor NP Day), and Prokletije on 31 July (Diaspora Day of Prokletije NP).

The Government adopted the Information on the Issuance of the Guarantee of the Government of Montenegro for the Loan Agreement between the German Development Bank - KfW and the Electric Power Industry of Montenegro AD Nikšić for the Project of reconstruction and modernisation of the Perućica Hydro Power Plant, Phase II. It was concluded that the Government gave its consent to the Agreement and accepted a guarantee of EUR 33 million for a project aimed at reconstruction and modernisation of the Perućica HPP in order to extend its working life, provide high operational readiness and increase efficiency.

the Government adopted the Information on inviting a public call for long-term lease of state-owned land for the construction of a wind farm at the location of "Brajići" - Budva and Bar municipalities, and tasked the Ministry of Economy to invite the public call.

The Government adopted the Information on the enforcement of contracts for the construction of small hydro power plants at the locations of the Kutska River and Mojanska River and accepted concession contracts, as well as Information on the enforcement of concession contracts based on energy permits for the construction of small hydro power plants "Raštak 1" and "Raštak 2" on the Raštak watercourse and authorised Economy Minister Dragica Sekulić to sign the contracts.

The Cabinet decided to set up the Council for Innovation and Smart Specialisation, as a body that will coordinate the implementation of the Smart Specialisation Strategy of Montenegro for the period from 2019 to 2024.

The newly established Council, chaired by Prime Minister Duško Marković, will be responsible of implementing priority measures defined by strategic development documents in the field of innovation, as well as proposing measures and amendments to the law in order to create a favourable business environment for the development and promotion of innovation and innovative entrepreneurship.

The Government adopted the Report on the implementation of the Action Plan of the Strategy for improving enabling environment for NGOs 2018-2020 for 2018, stating, inter alia, that the key achievements in the first year of implementation of the Action Plan relate to an improved institutional, legal and financial framework for cooperation of state administration bodies and NGOs, that the new Council for cooperation of state administration bodies and NGOs has been established, that a regulation was adopted on the election of NGO representatives to the working bodies of state administration bodies and conducting public hearings in developing laws and strategies, and that a manual and guidelines for better implementation of established public funding standards have been prepared. The Government tasked the stakeholders to take measures to more effectively implement the activities under Chapter IV of the Strategy - the role of NGOs in socio-economic development.

The Government also adopted the Report on the Implementation of the Regulation on the appointment of NGOs representatives to public administration working bodies  and charged the Ministry of Public Administration, in cooperation with the Human Resources Authority, to continue and improve training civil servants at all levels on the importance of public consultation standards, with particular reference to the application of the Regulation, eParticipation as reporting on the results of consultations and to organise, by 1 October 2019, e a meeting with all ministries' secretaries to highlight the importance of public consultation standards in public policy making process.

Today0's Cabinet meeting passed the Decision on identification of priority areas of public interest and the amount of funding for projects and pmerograms of non-governmental organisations in 2020. The Government tasked the ministries of science, economy, sustainable development and tourism, and health to invite, within 15 days, public tenders for the allocation of funds based on the Decision on identifying priority areas of public interest and the amount of funding for NGOs projects and programmes in 2019.

The Government adopted action plans for the implementation of the Strategy for Permanent Resolution of Issues Concerning Displaced and Internally Displaced Persons in Montenegro, with particular reference to the Konik area for 2019, for the implementation of United Nations Security Council Resolution 1325 - Women, Peace and Security in Montenegro (2019-2022) - Implementation Programme 2019-2020, and for the implementation of the Judicial Information and Communication Technology Strategy 2016-2020.

Government adopts the Information on the results of Montenegro's Presidency of the Adriatic-Ionian Initiative in the period May 2018 - June 2019 and Information on the preparation of Montenegro's Presidency of the Central European Initiative and the Western Balkans Fund in the period 1 January - 31 December 2020.

Montenegro's presidency of the Adriatic-Ionian Initiative was assessed as a successful mission in which strengthening regional cooperation is a clear motive and precondition for the progress of all the countries of the Adriatic-Ionian region, especially when it comes to good neighbourly cooperation and meeting the EU agenda.

The Government, dismissed, at the personal request, Dubravka Lalović from the post of Prime Minister's Foreign Policy Adviser due to her assuming the duty as the Permanent Representative of Montenegro to NATO. Also, the Cabinet dismissed Nina Vujošević, the State Secretary of the Ministry of Finance, due to her assuming the duty as the Representative of Montenegro to the World Bank.

Zoran Radusinović, an independent customs inspector for combating smuggling, was appointed Representative of Montenegro at the Law Enforcement Centre in Southeast Europe based in Bucharest.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT


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