Montenegro’s debt and economic growth: Prime Minister’s address to Parliament
, NewsDuring a recent parliamentary session, Prime Minister Milojko Spajić addressed questions regarding Montenegro’s public debt and economic growth. He noted that the public gross and net debt has remained stable since 2020, standing at €4.5 billion and €3.8 billion, respectively. Meanwhile, the country’s GDP has increased significantly, rising from €7.2 billion to an expected €7.8 billion in the coming months.
Spajić emphasized that both the Pension and Disability Insurance Fund (PIO) and the Health Insurance Fund are performing better than ever. He dismissed concerns about their potential failure, asserting that the healthcare budget is the highest it has ever been, despite zero contributions.
He challenged critics who previously claimed that the general VAT rate would rise to 30% and that the electric utility would be sold to finance the “Europe Now 2” program. He highlighted a reduction in inflation, mentioning that September saw a deflationary period.
Regarding the Velje Brdo project, which was questioned by Dejan Đurović from the NSD, Spajić stated that it aims to accommodate around 40,000 residents, comparable to the populations of Bar or Bijelo Polje. He stressed the importance of having long-term solutions to address the pressure from foreign residents.
On the continuation of the highway construction, Spajić revealed that they are awaiting the European Bank for Reconstruction and Development (EBRD) to approve the evaluation of applications for the main project and construction segment, with several international companies involved. He assured that public calls for supervisory bodies have also attracted significant interest.
He underscored the need for a joint agreement with Serbia on building the third highway section from Andrijevica to Boljari, as well as connections with neighboring countries.
In response to questions about electricity prices, Minister of Energy Saša Mujović clarified that while he had requested the resignation of the EPCG Solar Construction board following the dismissal of former director Valerija Saveljić, he ultimately did not accept their resignation, recognizing that her removal was lawful.
Mujović expressed his commitment to prevent electricity price increases next year, although he acknowledged that various factors, including energy deficits and hydrological conditions, could affect pricing. He assured that if increases are necessary, a protective tariff policy for low-income citizens would be developed.
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