Statement of the Deputy Prime Minister and Finance Minister, Mr. Igor Lukšić, PhD., after the meeting with the Mayors of Municipalities

“The analysis will indicate exactly how much money will be needed for severance payments amounting to 12 gross wages. In the next two months we will agree on the models of support, because some municipalities are facing problems in servicing the debt and tax liabilities. We are willing to prepare contracts that could help in bridging the problems, implying more rational attitude towards new employment. Not only that it is necessary to halt new employments, it is necessary to create mechanisms that will allow for an adequate social programme for redundant employees. This includes the pre-approval for the conclusion of business in relation to the public tenders and retention of minimum wage amount to 55 Euros in the future. The Government will assist municipalities facing financial problems in servicing their liabilities up to the adoption of the new set of financial laws aimed at ensuring the stability of local self - government financing sourced in the future. We agreed our cooperation in three directions. Passing new legislation, finding ways to bridge the current financial problems of Municipalities and the third is the cooperation with the Association of Municipalities with other departments. We are in the final stage for the first two questions. We have identified a space for changing the existing practices in the distribution of concessions revenues, real estate turnover tax, and the idea is to increase the allocation of the income tax because, according to our estimates, this tax revenue has the highest growth capacity in the forthcoming period. Activities focused on the third area are intensified, and amendment to some laws are under development in cooperation with the Ministry of Spatial Planning and Environmental Protection”.