PMQs - PM Krivokapić: Government is constantly working on creating preconditions for returning economic activity to pre-crisis level

Prime Minister Zdravko Krivokapić said that the development policy of this Government is based on seven pillars, adding that the improvement of competitiveness and the creation of a society of equal opportunities are top priorities.

"It is aimed at creating a competitive economy and increasing the standard of living of all citizens of Montenegro. The problem of unemployment is a problem faced by all countries in Europe, including the world. I will remind you that the new Government began its mandate at the most challenging moment in recent Montenegrin history. The moment in which we had to fight for the lives and health of people at the same time, but also for the existence of the most vulnerable categories of the economy and society. In such circumstances, the Government is constantly working to create preconditions for the return of economic activity to the pre-crisis level, and thus reduce unemployment, but still, we will agree, people's health comes first," said Prime Minister Krivokapić, answering a question of Raško Konjević from the MP Group of the Social Democratic Party – Albanian coalition "Unanimously".

Krivokapić pointed out that, having in mind the extraordinary circumstances, the Government adopted the fourth package of economic measures at the beginning of the year in order to overcome the negative consequences for the economy and the population.

"I will remind you that this package was adopted in the closest consultations with business associations and with a careful analysis of the requests that the economy sent to the Government. This communication continued in the following period, so we had continuous contacts with representatives of the economy. I note that this Government has announced support measures for assistance to persons listed in the Employment Agency records. This announcement led to a sharp increase in the number of registered persons, so in just one month the number of unemployed persons on the register increased by over 5,000. In addition, the Government, by encouraging new employment, also had a stimulating effect on the registration of already unemployed persons with the Employment Agency of Montenegro. All of the above showed that the Government does not intend to artificially cover the number of unemployed persons, but to point out the structural problem of unemployment, which is older than these five months that you are referring to," said Prime Minister Krivokapić.

Krivokapić emphasised that in order to solve other structural problems, but also the problem of unemployment, a new package of support measures for the second quarter will be adopted at the Cabinet session on 29 April 2021.

"There are five specific goals of support measures from the first and second quarters: support for vulnerable categories of the population; support for maintaining employment levels and new employment; improving the liquidity of economic entities; creating conditions for increasing the number of tourists and the stability of the market of agricultural products. When it comes to the 'Report on the business environment for 2019-2020', it is true that one of the main findings is that the business community is not adequately and timely involved in drafting relevant regulations for the business environment, but this refers to the work of the previous administration, not this Government. According to the recommendations of the American Chamber of Commerce, with which this Government agrees, it is necessary to ensure timely inclusion and comprehensive consultations with the business community, which would lead to better and more applicable standards and thus prevent frequent changes in legislative solutions that are not applicable in practice," said PM Krivokapić.

The Prime Minister reminded that the Report on the Involvement of the business community in the decision-making process was created thanks to the initiative and constant efforts of the American Chamber of Commerce, as well as the operational support of the Secretariat to the Competitiveness Council. Krivokapić said that this is a good basis for monitoring and improving this important precondition for further development of the business environment as a whole.

"Precisely in order to improve the business environment, the Cabinet, at the session held on 11 February 2021, adopted the Decision on the formation of the Competitiveness Council. The goal of the Council is to contribute to greater competitiveness of the economy and faster economic growth of the country. This includes not only improving processes and procedures, but also proposing structural reforms to improve competitiveness, drafting a plan to combat the grey economy, improving the labour market and employment. One of the important tasks of the Council is to publicly promote the importance of dialogue between the private and public sectors with the aim of improving competitiveness, creating a stimulating business environment and improving the quality of life of citizens. The American Chamber of Commerce is one of the members of the new Competitiveness Council. At the first session of the Council, held on 5 April, the Rules of Procedure, the Work Plan of the Council for 2021 were adopted and 8 working groups were formed to operate within the Council, which will deal with topics recognised as priorities for improving the business environment and investment climate in Montenegro. These are working groups for tourism, reform of the business registration process and the status of the Central Registry of Business Entities (CRPS), preparation of the Draft Law on the Registry of levies, development of small and medium enterprises, National Partnership for Lifelong Entrepreneurial Learning, economic empowerment of women, measures to remove barriers to private sector services and promote the green economy," said the Prime Minister.

Krivokapić said that there are 47 representatives of business associations in the mentioned working teams, saying that in that way dialogue and communication will be more efficient. He also noted that the representatives of all business associations that are members of the Council will actively participate in the working groups.

The Prime Minister said that the Government, in cooperation with the social partners, through the already established Working Group for the analysis of all fiscality and parafiscality, is working on finding the optimal model when it comes to increasing the minimum salary and reducing the tax burden.