Europe Now 2 program sparks concerns among small businesses in northern Montenegro

Published on 21. July 2024., News

The Europe Now 2 program, designed to increase wages in Montenegro, is causing concern among small business owners and accountants in the northern region. While the intention behind the program is to boost salaries, there are fears that it could lead to negative consequences for small businesses and their employees.

Small businesses in the north, which typically register workers at the minimum wage, might find the new minimum wage of 600 euros unattainable. Momčilo Dulović, a restaurateur, expresses concern that only large companies will be able to survive, while small businesses may have to lay off workers. This could lead to increased emigration as dismissed workers seek opportunities abroad.

The Association of Accountants of Bijelo Polje echoes these concerns, noting the potential for company closures and price hikes. The transition to the new wage calculation method starting October 1 is seen as problematic, particularly for micro-producers who may struggle to adapt to these changes.

Despite assurances from the government that the program would not cause inflation, many believe that the increase in wages will inevitably lead to higher prices for goods and services. Dulović and others are skeptical about the program’s ability to avoid inflationary pressures.

As the implementation date approaches, it remains to be seen how effectively small businesses in the north will manage the new wage requirements and whether the anticipated wage increases will offset potential economic disruptions. The overall impact on employment and emigration trends will be crucial indicators of the program’s success or failure.