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Press release on Cabinet's decissions made without...
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Press release on Cabinet's decissions made without holding a session
Published on: Jul 10, 2020 • 8:14 PM Author: PR Service
On Thursday, 9 July 2020, the Montenegrin Cabinet, without holding a session and based on the obtained consent of the majority of members of the Government, adopted the Spring Analysis of Macroeconomic Trends and Structural Reforms - 2020. The analysis covers the implementation of economic policy in 2019 and in the first quarter of 2020, that is, a review was given of the achievements and trends of macroeconomic parameters (GDP, prices, labour market, monetary and external sector) and public finances. At the same time, an overview of sectoral policies and the most significant structural reforms implemented in 2019 and the current period in 2020 is given.
According to preliminary quarterly data from the Statistical Office, GDP in 2019 amounted to EUR 4,907.9 million, with real growth of 3.6 percent, influenced by strong growth in the sectors: tourism, construction, transport, retail and agriculture. In the first quarter of 2020, real GDP growth of 2.7 percent was achieved, which was partly influenced by the introduction of measures to combat the impact of COVID-19. However, in the second quarter, more radical measures were introduced to prevent the health crisis, which greatly affected economic trends.
The financial sector in 2019 is characterised by high liquidity and adequate capitalisation, with preserved stability of the banking sector and improvement of aggregate financial and monetary parameters. In 2019, the central budget deficit amounted to EUR 143.6 million or 2.98 percent of GDP, and is 15 percent lower than the deficit in 2018.
The analysis estimates that the positive trends, established in the field of public finances in the previous three years, will be temporarily interrupted due to the expected adverse effects of the health crisis on economic trends. The Montenegrin economy, as a small and open system, is sensitive to external influences, which is confirmed by the current coronavirus pandemic. Although significant economic growth rates have been achieved in the previous period, the development model should, as far as possible, be adjusted and focused on those sectors in which Montenegro has underused resources and in which it is possible to achieve a high level of productivity - manufacturing, agriculture, livestock and energy, which, with the adequate application of digital technologies in all spheres of socio-economic development, will strengthen the competitiveness of the Montenegrin economy and provide conditions for reducing the impact of negative phenomena at the national, regional and global levels. Support for the development of these sectors will be the basis of the Third Package of Measures of the Government of Montenegro aimed at mitigating the negative effects of the pandemic.
The Guidelines for Macroeconomic and Fiscal Policy for the period 2020-2023 have been adopted. The document states that Montenegro's good economic results in the past three years will be temporarily interrupted due to a symmetrical external shock to economies around the world, caused by the COVID-19 virus pandemic. The average growth rate of the Montenegrin economy in the previous three years was 4.4 percent, while, according to the current projection, in the period 2020-2023 it will be 1.4 percent, as a result of the estimated decline in GDP of 6.8 percent in 2020. years, and then a stronger recovery and economic growth at an average rate of 4.2 percent over the next three years.
The Government approved the Bill on Amendments to the Law on Scientific Research. The proposed provisions should enable better and more efficient work of the Council for Scientific Research, as well as encourage the quality of scientific research by awarding prizes for scientific achievements.
The Bill on Ratification of the Convention on the Establishment of an International Organisation for Legal Metrology was also approved. The adoption of this Law is an instrument of ratification or a precondition for accession to the Convention establishing the International Organisation of Legal Metrology. By joining the Convention, the Bureau of Metrology would achieve numerous benefits.
The Government adopted a Decree amending the Decree on Prohibited or Permitted Methods of Use, Production and Placing on the Market of Chemicals That Represent an Unacceptable Risk to Human Health and the Environment. The adoption of this Regulation will achieve full alignment with the amendments to Annex XVII of Regulation (EC) No. Regulation (EC) No 1907/2006 of the European Parliament and of the Council on the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) and establishing the European Chemicals Agency.
The Cabinet adopted a Decree on the list of military equipment and products, the procedure and manner of conducting public procurement in the field of defence and security. The Decree aims to improve the procurement system in the field of defence and security, primarily in the area of security of supply and confidentiality of procurement, in accordance with special regulations governing the protection of classified information, and respecting the principles and standards of the European Union and NATO.
The Concessions Plan for the use of watercourses for the construction of hydropower plants in Montenegro for 2020 has been adopted. The plan envisages the award of only one concession on the river Komarnica for the needs of the construction of the hydroelectric power plant Komarnica. Apart from the mentioned watercourse, the Government does not envisage the allocation of concessions for the needs of construction of other micro, small and large hydro power plants in 2020.
The Cabinet adopted the Information on preparation for the 2020 fire season, as well as the Report on the implementation of the action plan for the improvement of the business environment (in selected areas).
The Information on Montenegro's accession, as a guest, to the Tenth Round of the European Social Research of the European Consortium of Research Infrastructures (ESS ERIC) was adopted.
For full press release in Montenegrin please click here.
PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO
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