Statement by the Minister of Finance, dr Igor Lukšić, on occasion of adopting the Information on planned activities for creating conditions for employment incentives in Montenegro, with special attention paid to the Northern region and

This is a topic which was also present in all activities of the Government in previous period, representing the view on the social dimension of the transition process, as well as creating stimulating framework for new employment, predominantly, for those people registered with the Employment Agency, reflecting the structural unemployment at this moment.

We believe that we are already entering the stage when our economic reality is such that we can announce the end of transition process. Transition process is transfer from centralized planning to market economy, and in our circumstances with some 85% of privatized and restructured economy, which is in some degree even greater than in some Western-European countries. We must start facing the issues of post-transitional challenges, such as the reform of social security system, strengthening the institutional rule of law, and in this particular case, decrease of unemployment.

This information is divided into two sections; the first one deals with the issue how to adequately solve the problem of transition consequences in enterprises which did not have a positive market fortune and manifestation. Such situation exists in a certain number of enterprises in Niksić municipality, while the second issue is related to the additional proactive measures for employment and creating conditions for employment. For the purpose of solving transition consequences and solving the social issues arising as consequence to transition, based on the fact that the union had multiple times advocated previously, in communication with the Association of unions the agreement will be promoted on the method for the Government to contribute certain funds in favor of the Union. This agreement should provide certain funds up until establishing the institutional response to these issues, which would be a Labor fund, to be established after adopting the Labor Law.

This information shows that there is a room for a certain number of enterprises and a significant number of workers to make a decision of buy-off of security period with approximately 2 million 200 thousand euro, which is a continuation of the activities implemented in several municipalities few months ago. Likewise, we had defined a certain number of activities for which the project owners Employment agency, Directorate for Development of Small and Medium sized companies, Development fund, and in the segment of special support for the agriculture, where the Ministry of Agriculture, Forestry and Waters shall also take participation. During the following months, we shall start an intensive campaign, presentation of the stimulating framework of employment, which will be directed towards the least developed municipalities in the North of country and Cetinje. From July 1, the more active campaign and presence of the Government in these municipalities shall be started, in order to enable discussion on these topics. This is a whole set of measures to be applied, depending on the owner of mobile project, measurements taken by the Employment Agency shall be better defined or appended in the following period when employing trainees, intensifying public works projects, employment and a more stimulating framework for employing the persons registered in our agency, instead of non-residents. The Directorate for Small and Medium Sized Enterprises shall intensify its projects regarding entrepreneurship, start-up projects with somewhat wider trajectory lines, more favorable funds than presently available, and we can also expect establishing a special credit warranty fund in the next year, in line with the new Law on Banks and the appropriate by-laws, to be adopted by the Central bank.