Press release of the 7th Cabinet session

At its 7^th session held today, chaired by Prime Minister MEc Milojko Spajić, the Cabinet adopted the Draft Law on the Budget of Montenegro for 2024. 

The Cabinet also adopted the draft Decision on the borrowing of Montenegro for 2024 which creates legal-technical conditions for the implementation of borrowing in accordance with the Draft Law on the Budget of Montenegro for 2024.

The Cabinet established the Draft Law on Amendments to the Law on Budget and Fiscal Responsibility. The Proposal for the Law outlines more detailed criteria for using reserve funds and also harmonisation of timeframe for the handover of documentation, software solutions and other acts related to assessing the use of fiscal responsibility criteria from the State Audit Institution to the Fiscal Council. The task of the Fiscal Council is to provide advisory opinions on drafts of proposals for laws or other regulations proposed by members of the Parliament, monitor and analyse the impact of pension and healthcare system, assess the basic fiscal differences etc. that may have negative impact on fiscal policy sustainability.

The Draft Law on Amendments to the Law on Excise Taxes was adopted. With a view to reducing negative impact of sugar products on population’s health, the draft legal solution proposes the introduction of excise tax on non-carbonated mineral water with added sugar or other sweetening aromatizing agents and non-alcoholic beer. The amount of excise tax on non-carbonated water with added sugar is 25.00 euros by hectolitre, the same as the amount of excise tax on carbonated water with added sugar or other sweetening or aromatizing agents. The increase of budget revenue on this basis is expected by approximately two million euros on annual level.

The Cabinet adopted the Draft Law on Amendments to the Law on Games of Chance. The purpose of amendments is a systematic and revenue sustainable regulation of organizing games of chance online or via other telecommunication devices, as well as the increase of revenues on that basis. The proposed amendments, and following the example of quality comparative solutions, create conditions for enhancing the regulation of this highly sophisticated area of organizing games of chance. Also, the proposed solution lays down provisions related to prevention of money-laundering and financing of terrorism. It is evaluated that the implementation of regulations would lead to generating multi million revenues for the Budget. Considering the available monthly reports on deposit/ withdrawal of online organizers (particularly analysing those with the largest turnover) the approximate amount of 15 million euros is generated in the budget revenue at annual level. The above mentioned Law for the first time stipulates the obligation to pay variable part of the concession fee for organizing online betting games of chance, as well as games of chance in virtual casinos and games of chance via virtual automated machines via internet. That concession fee will be calculated in the amount of 10% of the base composed of the total amount of deposits, reduced by the amount of withdrawal, and is paid not later than the fifteenth day in a month for the previous month. In addition to the mentioned variable part, for organizing online betting games of chance, a fixed part of concession fee will be paid in the amount of 10,000 euros per month both for organizing online betting and for games of chance in virtual casinos and games of chance on virtual machines via internet. The following stipulated rules are of particular importance: registration of all online games (with clearly specified rules), registration of players and online monitoring. By successful registration of online games, the tax base will be enlarged, and with the above stated concession models multi-million Budget revenues will be provided in this year. Also, complying with requirements in the area of anti-money laundering, the proposal for the Law introduces rules related to actual owner of organizers, provision of data to Financial Intelligence Unit, and also organizers’ obligation to act in accordance with regulations governing the prevention of money-laundering and financing of terrorism, in the area related to keeping classified information about players.

The Cabinet adopted Draft Law on Amendments to the Law on Local Self-Government Financing. The purpose of amendments to the Law on Local Self-Government Financing in force is harmonization of the Law with the Law on Territorial Organization and Law on Tax on Turnover of Immovable Property, which enters into force on 1 January 2024, and also to appreciate differences in development level of local self-government units and their fiscal capacity. In addition, it will improve the legislative framework with a view to reducing developmental gap between the least and the most developed units of local self-government in Montenegro.

The Cabinet adopted Draft Law on Amendments to the Law on Pension and Disability Insurance, which, among other things, determines the new nominal amount of the minimum pension, which will amount 450.00 euros from 1 January 2024. The Law proposal will regulate the legal situation that occurred after repealing Article 17 paragraph 1 of the Law on Pension and Disability Insurance, which was repealed by Decision of the Constitutional Court. The proposed new provision outlines the conditions for eligibility to old-age pension to insured persons who turn 65 years old and have minimum 15 years of insurance coverage. Also, it is proposed to change the method of pension reconciliation based on statistical data, with consumer prices and average wages of employees on the territory of Montenegro in the previous four months compared to the preceding four months.

The Cabinet adopted Draft Law on Amendments to the Law on National Public Broadcaster Radio and Television of Montenegro. With regard to public interest to ensure independence of the national public broadcaster Radio and Television of Montenegro, which implies financial predictiveness and stability of Public Broadcaster, the amendment determines a minimum amount for financing the national Public Broadcaster Radio and Television of Montenegro which cannot be less than the amount allocated in the previous fiscal year, whereas it can be increased subject to macro-economic parameters and consumption limits. That will provide continuity in the State support in the extent that ensures the quality of providing public services. It will also confirm the decision that Montenegro needs an independent and professional public broadcaster free from political influence, and a commitment to observe the recommendation referred to in the European Commission Report on Montenegro to provide predictable and stable financing to the Public Broadcaster.

The Cabinet adopted three proposals for the Law on Ratification of Mobility Agreements, which were signed at the Western Balkans Summit within the Berlin Process, as follows:

• Draft Law on Ratification of the Agreement on the Recognition of Professional Qualifications of Doctors of Medicine, Doctors of Dental Medicine and Architects in the Central European Free Trade Agreement Context aiming to establish common rules for simplified automatic recognition of professional qualifications to applicants who acquired such qualifications in one of six Western Balkans countries, in order to provide holders of the said qualifications with the access to and performance of the regulated profession in the other Western Balkans country and vice versa, aiming to encourage the mobility of professionals, better matching of skills with labour market needs and increased productivity.
• Draft Law on Ratification of the Agreement on the Recognition of Higher Education Qualifications in the Western Balkans, the implementation of which will make the recognition process more efficient, applicants will spend less time waiting to exercise their rights, and the government apparatus will reduce the redundant procedures to a large extent.  The Agreement refers only to higher education qualifications obtained in the public acreddited higher education institutions of the signatory parties.
• Draft Law on Ratification of the Agreement on Freedom of Movement in the Western Balkans with Identity Cards, which provides improvement of further cooperation in an attempt to mutualy facilitate travel conditions and enhance good relations, primarily by simplification of administrative procedures for entry, transit, exit and short stay of natural persons in the Western Balkans, and on the EU law principles, European values and good EU practice.

Information on acting of the Government of Montenegro upon the Judgement of the Administrative Court of Montenegro was adopted. Acting upon the Judgement, and in view of the fact that the Court in the particular case decided on the merits in the dispute of full jurisdiction and overruled the Decision on termination of office to the Police Administration Director Zoran Brđanin, the Government of Montenegro concluded that Zoran Brđanin, as from 7 December 2023, continued the term of office as director. Also, the Cabinet adopted a Decision on termination of function to the Police Administration Acting Director Nikola Terzić.

The Cabinet adopted the Second draft of the Reform Agenda for EU Reform and Growth Facility, which also includes objectives in the area of fundamental laws. In that regard, the Ministry of European Affairs was assigned to submit to the European Commission the Second draft of the Reform Agenda for EU Reform and Growth Facility.