Press release of the 3rd session of the Government of Montenegro

The Cabinet held its 3^rd session today, chaired by Prime Minister MEc Milojko Spajić. In the opening part, the Prime Minister presented Verbal information regarding the current blatantly published misogynistic attack at prof. Draginja Vuksanović Stanković, PhD, by Vojislav Šešelj. In that regard, the Cabinet unanimously condemned that act and assigned the Ministry of Culture and Media to initiate procedures before relevant authorities, in accordance with the regulations, to restrict cataloging and marketing of the contents and titles with elements of hatred speech, that are the subject of the Information and affect the fundamental social values and democratic standards.

The Cabinet adopted the Information – Overview of the Report of the European Commission on Montenegro for 2023. The Information states that the Report outlines an objective review of the state of affairs and achieved results to be used as a guideline for further improvement of the state of affairs and continuation of reform activities, that findings will be examined with due care in order to prepare a comprehensive Action plan to address all recommendations in the upcoming period. The Government highlighted its awareness of the importance of political moment, both on national and European level, and that it will make maximum efforts for Montenegro to take the opportunity and make a step forward on its European path, now that the enlargement policy is back in the focus of the EC and member states. The Information concludes that along with forming the new Government, the institutional stability at the level of executive power was established, however, the issue of additionally consolidating judicial power and intensifying the Parliament work remains open. In that regard, top priority is the appointment of the remaining holders of judicial functions – both in the context of fulfilling temporary measures in chapters 23 and 24, and in terms of creating conditions to close new chapters. In that respect, the Cabinet expressed expectation that all three branches of power would demonstrate a required level of responsibility and increased focus on issues referred to in the European agenda. The EC Report recognizes the identical general readiness in all areas, as it was the case in the previous year document: no progress was achieved, but there was also no regression concerning the overall readiness in the areas that are the subject of the Report.

Information on the implementation of planned obligations in 2023 referred to in Montenegro’s Programme of Accession to the European Union 2023 – 2024 was adopted. The review of implemented obligations referred to in the Programme of Accession includes the overview of total implementation in 2023 as at 31 October, as well as overviews by quarters. In addition, the document outlines all institutions presented separately with pertaining implementation degree. The total number of planned obligations in the previous year was 300, of which 77 (or 26 %) have been implemented at the moment. As regards the legislative part, out of 229 obligations, 39 (17%) were implemented, whereas out of 71 planned strategic documents, 38 (54%) were implemented.

The Cabinet adopted the Draft Law on the Final Account of the Budget of Montenegro for 2022. The final account, among other things, shows that the public revenues in the period January – December 2022 amounted to 2,322.3 million euros or 40.1 % of estimated GDP (5,796.8 million) and in comparison with the planned ones, they are higher by 117.3 million or 5.3 %. In relation to the comparative period of 2021, the collection of public revenues is higher by 128.3 million or 5.8%. Public expenditure in the period January – December 2022, amounted to 2,571.2 million euros or 44.4% GDP, and is reduced by 156.5 million or 5.7 % in comparison to the planned, while compared to the previous year, it is higher by 283.7 million or 12.4%. Taking into consideration the revenue and expenditure trends, in the period January – December 2022, public finance cash deficit was generated in the amount of 248.9 million or 4.3% GDP, while the adjusted deficit amounted to 220.4 million or 3.8%.

Decision on Energy Balance of Montenegro for 2024 was adopted. The document includes Balance of electric power, Balance of coal, Balance of oil, oil derivatives and biofuels, Annual analysis of energy share from renewable energy sources in the total energy production, and measures for its implementation. In 2024, the total production of electric power is planned in the quantity of 3,600 GWh, while the planned gross consumption is 3,117. Therefore, the planned surplus, difference between production and consumption, for 2024 will be 483 GWh. In the next year, it is planned to produce more than half of the electric power, i.e. 51%, from hydropower plants, 37% from thermal power plants, 9% from wind power plants and 3% from solar power plants. The production of TE Pljevlja for 2024 is planned in the quantity of 1,317 GWh, which is less than estimated results in 2023 by 12.2%. With regard to the balance of oil derivatives, the total turnover for the needs of consumption in Montenegro in 2024 is planned in the quantity 421,070 tons, which is by 12.3 % more than the estimated consumption in this year.

The Cabinet adopted a Decision amending the Decision on determining the annual number of permits for temporary residence and work of foreigners for 2023. Taking into consideration the needs of labour market and the used number of permits for specific purposes, and in order to ensure smooth operations of companies, the Decision determined the increase of the number of permits for temporary residence and work of foreigners for 2023 by 6,000 permits, i.e. instead of up to date 21,454 permits to 27,454.

The Cabinet adopted the Information on Montenegro’s preliminary activities for invitation to “European Digital Innovations Hubs” within the EU “Digital Europe” Programme. Montenegro holds a status of associated state to this Programme, which enables its users to have access, under equal conditions as EU member states, to invitations for the following four areas: supercomputing, artificial intelligence, advanced digital skills and ensuring the wide use of digital technologies across the economy and society. One of the objectives outlined in the “Digital Europe” Work Programme is to create a network of so-called European Digital Innovation Hubs. It implies a single legal entity or a consortium of legal entities with complementary expertise and not-for-profit objectives to support large-scale digital transformation of – on the one hand economy, with particular focus on micro, small and medium companies, and on the other hand public sector organizations conducting non-economic activities. The invitation for this Programme follows a two-step process: prepare a List of candidates for EDIHs call through a transparent national process, then, in the second step, the EC will publish a special call where all candidates from the national list can participate. For Montenegro, the planned EU funds (grant) amounts one million euros for the project in duration of four years, which is 50% of the total value of the project, while the remaining amount needs to be provided from other sources (national funding, donations, private funds, etc.). In that regard, the Ministry of Education, Science and Innovations and the Ministry of Public Administration are assigned to undertake all necessary ativities in order to enable participation of potential users from Montenegro in the above-mentioned call, and in compliance with applicable national regulations governing the area of innovation and state aid. 

The Cabinet adopted the Information on the implementation of the Concession Agreement on exploitation of Otilovići accumulation for the construction of small hydropower plant with the purpose of electric power production, and agreed to the draft Annex no. 1 to the Concession Agreement. The Annex was drafted at the Concessionaire’s request, who asked to specify new deadlines for the beginning of both the first stage and the concession period, stating as the reason the delay in obtaining Urban-Technical Conditions. The Cabinet assessed the Concessionare’s request as justified and drafted Annex no. 1 to the Concession Agreement that envisaged the following amendments – stage 1 – stage of Technical documentation development and the Concession Period will commence from the date of issuing the Urban-Technical Conditions, while the remaining provisions of the Agreement will remain unchanged.

Information on the need to accomplish a sustainable judicial infrastructure system in Montenegro was adopted. In that regard, the Conclusions of the Government of Montenegro no. 07-8337/2 dated 12 January 2023, 07-100/23-4269/2 dated 28 September 2023 and 07-011/23-4595/2 dated 19 October 2023, related to solving spatial capacities of the judicial authorities having seat in Podgorica, were repealed. Also, the Ministry of Justice was assigned to consider the options and propose an adequate location for the construction of facilities for the needs of these authorities in cooperation with the Cadastre and State Property Administration.

The Cabinet adopted the Information on reallocation of funds in order to provide the shortage of funds for paying the compensation based on rights related to social protection for October. The Ministry of Labour and Social Welfare submitted a request to release funds for the payment of compensations based on rights related to social, child, veteran and disabled persons protection for October 2023 in the total amount of 18,258,050 euros. It was determined that for fullfiling this liability, there is a shortage of 5.6 million euros that cannot be provided from the funds allocated by the Law on the Budget of Montenegro for 2023. Therefore, having in mind the importance of paying the compensation based on social protection rights, the Cabinet agreed to provide that amount by reallocation, in compliance with the Law on Budget and Fiscal Responsibility. Since the necessary funds for paying the compensation based on social protection rights by the end of this year were envisaged in the Draft Law on Amendments to the Law on the Budget of Montenegro for 2023, which is in the procedure before the Parliament, it was concluded that the Amendment to the Draft Law on Amendments to the Law on the Budget for 2023 should be prepared, in order to compensate the reallocated funds.

The draft of amendment to the Draft Law on Amendments to the Law on the Budget of Montenegro for 2023 was agreed. It refers to two amendments, of which the first amendment reallocates funds within the social protection transfer, whereas the total amount remains the same, while the second amendment redistributes funds allocated to the Ministry of Labour and Social Welfare and the Pension and Disability Insurance Fund, with adequate changes in the total amount, considering the significance of timely payment of social benefits in November.

The Cabinet adopted a Decision on amending the Decision on the amount and distribution of funds to census commission for financing the census of population, households and dwellings in 2023. The main reason for adopting this decision, as stated in discussion, is the need to provide a sufficient number of participants in the Census, by additional incentive, i.e. increase of compensation for their work. Compensations will be increased to the chairman, members of census commission, instructor and census takers, and total funds for that purpose shall amount 6,560,755 euros. This Decision shall enter into force on the day of its publication in the Official Gazette of Montenegro, in order to provide the sufficient number of persons for successful performance of activities and tasks in the upcoming Census via published open competition.