Highlights from the 63rd Cabinet Session

The 63rd Cabinet session, chaired by Prime Minister Dritan Abazović, addressed several crucial legislative amendments to enhance the public sector and the economy. The decisions were aimed at improving various sectors, ranging from salaries in the public sector to energy efficiency and infrastructure development.

1. Salary Increase for Judges and Prosecutors in the Public Sector

In an effort to accommodate increased workloads, the Cabinet adopted a proposal to amend the Law on Salaries of Public Sector Employees. The amendment results in the elevation of the salary levels for judges of basic courts and basic state prosecutors. The changes entail moving the ranks and coefficients of these professionals from Group C to Group B, effectively increasing their earnings.

2. Amendments to Excise Laws

The Cabinet adopted a proposal for amendments to the Law on Excise Taxes. The changes concern excise duties on smokeless tobacco products and fizzy beverages containing sugar or other sweetening agents. The revised legislation aims to moderate the scheduled increases in excise taxes for smokeless tobacco products, setting the rate at 145 euros per kilogram of tobacco mixture throughout 2024. Additionally, excise taxes on sugary fizzy drinks and non-alcoholic beer will be adjusted, with rates set at 35 euros per hectoliter for fizzy beverages and 25 euros per hectoliter for non-carbonated drinks.

3. Implementation of International Restrictive Measures

In line with the European Union's Common Foreign and Security Policy, the Cabinet adopted decisions to implement international restrictive measures against Venezuela in view of the ongoing situation in the country and actions taken by the Russian Federation that destabilize the situation in Ukraine.

4. Review of Business Performance in the Energy Sector 

The Cabinet reviewed the performance analysis of state-owned enterprises operating in the energy sector from 2019 to 2022. The analysis included nine companies, totaling over 2.2 billion euros, constituting about 40% of the country's GDP and 45% of all assets in Montenegro. Despite a drop in profitability during the reviewed period, recent data indicate positive trends in overall business and financial indicators in the energy sector.

5. Infrastructure Development

The Cabinet adopted proposals for amendments to contracts for the rehabilitation and improvement of road sections M2 Rožaje-Špiljani, reconstruction of road M-6 Pljevlja-Mihajlovica, and reconstruction of road M-18 Podgorica-Danilovgrad. These amendments consider significant increases in construction material and product prices, allowing for the completion of vital infrastructure projects.

The Cabinet also granted lease agreements for state-owned properties to facilitate the construction of a wind power plant and approved the implementation of projects related to agriculture, flood control, and water management.

6. National Strategies and Plans

Several national strategies and action plans were adopted to guide the country's development in various sectors. The strategies cover culture (2023-2027), chemical management (2024-2026), 5G mobile communications (2023-2027), and energy efficiency in industry. Additionally, the Cabinet adopted a program to support innovation for energy efficiency in industries and its involvement in various international research and development projects.

7. International Collaboration

Montenegro reaffirmed its commitment to international collaboration by participating in the EUREKA multilateral call for research and development projects for the Western Balkans. Additionally, the government signed an implementation agreement with the Ministry of Defence of the Republic of Slovenia to collaborate in the field of military reconnaissance and aerial surveillance using BELIN unmanned aircraft system.

8. Enhancing Education Program and Financing Agreement

The Cabinet adopted an Information on Amendments to the Financing Agreement for the "Program for the Improvement of Montenegro's Education," concluded on 5 November 2019, between Montenegro and the European Investment Bank (EIB). The amendments involve the inclusion of the construction of the Vladimir Nazor Primary School in the project, funded partly by credit and partly by a grant provided by WBIF and bilateral donors. Additionally, due to an increased grant amount from ERI, rising from 1.2 million to 2.8 million euros, the total contract value has been adjusted to 42.14 million euros, instead of the initial 40.54 million euros. The credit amount from the European Investment Bank (EIB) remains unchanged at 18 million euros, with the structure now comprising 2.8 million euros from the ERI grant and 21.34 million euros from Montenegro's own funds. Considering the project's progress, the revised financing agreement sets a new project completion deadline of June 2027, as the original deadline of 2023 is extended. Other elements of the agreement remain unchanged.

9. EU Integration Progress and Anti-Fraud Strategy

The Cabinet adopted the XXXVIII Quarterly Report on Montenegro's overall activities within the EU integration process for the period April to June 2023.

The Cabinet also adopted the Final Report on the Implementation of the Strategy for Combating Fraud and Irregularities to Protect EU Financial Interests (2019-2022). With a satisfactory implementation rate, 65% of the planned activities were completed by the end of 2022, 20% were partially implemented, and 15% remained unimplemented.

10. Boosting Public Administration Efficiency

An Information on the Conclusion of the Financing Agreement between the Ministry of Public Administration and the United Nations Development Programme (UNDP) was adopted. The "Efficient Public Administration Serving Citizens" project aims to support the Ministry in improving internal business processes, enhancing communication and quality management skills for public officials, setting an example for the entire public administration. Moreover, the project will enable the Ministry, as the driving force of public administration reform, to improve internal workflow processes, while employees enhance their internal and external communication skills, as well as change management skills. The project, with a budget of 150,000 euros, already secured within the Ministry's budget for the current year, will receive a contribution of 26,000 euros from UNDP.

11. Pursuing Smart Specialization Strategy

The Cabinet adopted the Action Plan for the implementation of the Operational Program for the Smart Specialization Strategy (2021-2024) for the period 2023-2024. The plan outlines five strategic goals, twelve operational objectives, and fifty-three activities. Out of these, 47 activities will be implemented in both years, four activities solely in 2023, and two activities exclusively in 2024. The implementation of the Action Plan is budgeted at 45,768,405 euros.

For the full press release in Montenegrin, please click here.