Draft Economic Recovery Platform for 2022-2026 presented

After 6 months of intensive work, the Ministry of Economic Development prepared a draft of the Economic Recovery Platform.

At today's round table, Minister of Economic Development Jakov Milatović said that the drafting process of the Economic Recovery Platform is characterised by complete openness to suggestions initiated by the Government during June, July, August and September this year. This approach is a comprehensive and holistic approach to drafting a complex document such as the Economic Recovery Platform and confirms the openness of the Government of Montenegro to suggestions from various actors in Montenegrin society.

The platform is the basis for further design of concrete activities that will be implemented through strategic documents of the Government of Montenegro. The financial plan for the implementation of the mentioned Platform for 2022 - 2026 amounts to 4.35 billion euros.

Having in mind the difficult situation inherited from the previous government, the following principles are defined: citizens of Montenegro in the first place, stabilisation of the demographic crisis, recovery of public finances, reduction of unemployment, responsible social policy, rule of law and zero tolerance for corruption, green transition and digital economy, encouraging and nurturing private initiative, balanced regional growth and development, economy based on innovation and knowledge, promoting Montenegro as a destination for sustainable tourism, attracting foreign direct investment, strengthening control systems, improved coordination and planning of infrastructure projects and regional cooperation in the context of accelerated EU accession.

The Economic Recovery Platform consists of four documents. The first document "Diagnosis of the state of the Montenegrin economy" describes the difficult economic situation that the 42nd Government of Montenegro inherited grom the previous government: record decline in GDP, record budget deficit, non-diversified economy, public debt and high interest rates, youth unemployment, grey economy and endemic corruption, large regional disparities, complex situation in the Pension and Disability Fund, demographic crisis, declining trend of the country's credit rating, inadequate representation of women in society, high tax debt and low tax collection, high illiquidity, low economic productivity and negative international investment position of Montenegro.

The second document "Analysis of financial statements of economic entities from 2015 to 2020 with additional data" analyzes the financial position of Montenegrin companies that submitted financial statements. Detailed analyzes (96 graphs and 113 tables) provide an intensive overview of the main parameters from the financial statements.

The first two documents are essentially the basis for the adoption of "evidence-based policies" and are the basis for the preparation of operational objectives, indicators, priorities and measures of the Platform. As such, they can be useful to other central and local governments, but also private companies and associations in designing development policies.

The third document "Reforms and Investments Submitted by Stakeholders" presents proposals by key actors in Montenegrin society. A total of 118 reform and investment proposals were submitted by 53 key actors of Montenegrin society during June, July, August and September 2021. The total value of the submitted proposals is 1.09 billion euros.

The fourth part of the Economic Recovery Platform "Operational objectives, indicators, priorities and measures" defines six operational objectives for the implementation of the Economic Recovery Platform:

• Macroeconomic stability, strong and sustainable public finances
• Stabilisation of socio-demographic challenges, strengthening human resources
• Diversification of the economy, redesigning tourism
• Better implementation of infrastructure projects
• Innovation, digitalisation and the green economy
• Good governance, effective coordination and monitoring of strategic documents and projects

In order to monitor the implementation of operational objectives, 41 indicators are envisaged (13 qualitative and 28 quantitative indicators). In addition, 223 measures have been defined to implement the principles of economic recovery.

The ultimate goal of the Economic Recovery Platform is to build a middle class. This goal can only be achieved by creating well-paid jobs for people who will stay to live and work in Montenegro, as well as reducing inequality and poverty to acceptable levels. In addition, by implementing the Economic Recovery Platform, Montenegro will be a fully-fledged member of the European Union in 2026, with strong and independent institutions, and with the average living standard of EU member states, said Milatović.

The Ministry of Economic Development thanks the European Union for its support in strengthening the capacity of the Ministry through the project "Establishment of a Single Access Point for SMEs - Institutional Support to the Ministry of Economic Development", implemented by the EBRD and funded by the EU through IPA II Instrument for Pre-Accession Assistance.