Montenegro's Europe Now 1 programme validated by IMF, Prime Minister announces next steps

Prime Minister Milojko Spajić addressed a joint press conference of the International Monetary Fund (IMF), the Government of Montenegro, and the Central Bank of Montenegro. The discussion primarily centered around the outcomes of the Europe Now 1 programme.

It's worth noting that back in December 2021, we couldn't foresee the world's events unfolding as they did in February 2022, which significantly impacted Montenegro. It's remarkable that things turned out so well, and the data unequivocally shows progress not only in the tax system, the intended focus of Europe Now 1 measures but also in employment, overall consumption, and growth, remarked Mr. Srikant Seshadri, the Head of the IMF mission for Montenegro.

Prime Minister Spajić expressed satisfaction, stating, "Srikant Seshadri, the Head of the IMF mission, has confirmed today the validity of the Europe Now 1 programme and its implementation, despite considerable opposition from various quarters. The programme has positively impacted wage increases and brought about numerous other benefits. We are moving forward, anticipating similar success with the Europe Now 2 programme."

During his address, the Prime Minister emphasised that all IMF mission conclusions serve as the foundation for crafting future fiscal strategies by the Government of Montenegro.

Given that Montenegro has not formulated a Fiscal Strategy since 2021 and a Public Debt Management Strategy since 2018, it's clear that this issue is one of the top priorities of this Government, he stated.

Spajić mentioned that due to tight deadlines, the Government had not had sufficient time to implement all measures into the budget, highlighting that additional fiscal consolidation measures would be an integral part of the Fiscal Strategy. In this regard, we expect technical support from the IMF, which possesses significant experience and expertise, he added.

The conference also addressed future borrowing, with the Prime Minister stating that the state would borrow only in line with the budget plan. He noted that approximately half a billion euros annually would be required for debt repayment in this and the following year. This borrowing is budgeted and will occur when market conditions are most favourable, he concluded.