Press release from the 50th Cabinet session

The Montenegrin Cabinet held its 50th session, chaired by Prime Minister Milojko Spajić. The Cabinet adopted the Information on the preparation of the Economic Reform Programme (ERP) for Montenegro for 2025-2027. The ERP is a medium-term strategic document prepared by Montenegro within the economic governance dialogue with the European Union. This programme is also prepared by other candidate and potential candidate countries for EU membership. Montenegro has been participating in the preparation of the ERP since 2015. The document consists of two key chapters: the macroeconomic framework and the fiscal framework. A novelty compared to last year's programme is that structural reforms, which were previously part of the ERP, are now included in the Reform Agenda/Growth Plan. The Reform Agenda/Growth Plan will replace the structural reforms section of the ERP. According to the Information, the Reform Agenda is a comprehensive, coherent, and priority set of targeted reforms and priority investment areas in each beneficiary country, including payment conditions indicating satisfactory progress or fulfillment of reform measures, as well as an indicative schedule for their implementation. These two processes should complement each other, and consistency between structural reforms (Reform Agenda) and their macro-fiscal impact (ERP) is necessary to ensure coherence and credibility in economic and fiscal policies. To achieve this, the ERP must show the expected macro-fiscal impact of the Reform Agenda and its alignment with macroeconomic and fiscal frameworks. The Ministry of Finance has been tasked with forming a Working Group for the preparation of the ERP for the 2025-2027 period, coordinating the preparation process, and submitting the document to the Government by the end of the year.

The Cabinet adopted the Information on the procurement process for student accommodation facilities. The Information states that, to implement the Government's conclusions from its sessions on 15 February and 11 April 2024, an inter-ministerial working group was formed to propose solutions to the issue of insufficient capacity in student dormitories in Podgorica. The working group submitted a report that included an analysis of the current state of student accommodations, the socio-economic situation, and the rental market, which makes it difficult for students to find accommodation when they are not granted dormitory access. Several models for resolving this issue were explored, including the continuation of construction for a new dormitory and searching for an adequate building on the market. In July, a public procurement process was launched for student accommodation in Podgorica, receiving a single offer from Čelebić City, offering a building in Donja Gorica with a gross area of 4,204.80 m², 110 rooms, and 230 beds for hotel use, which could accommodate a minimum of 230 students at €27,350 per bed, totaling €6,290,500. Following the qualification of the offer in the first phase of the procedure, the second phase will begin, during which the terms of payment will be defined, leading to contract signing. Minister of Education, Science, and Innovation Anđela Jakšić Stojanović has been tasked with signing the contract upon completion of the second phase and reporting to the Government.

The Cabinet adopted the Information on the preparation of Montenegro's Reform Agenda 2024-2027 for the EU Reform and Growth Facility and approved the Reform Agenda 2024-2027. This Agenda is a key document for accelerating Montenegro's economic convergence with the EU average and implementing the necessary reforms for faster EU integration. The Working Group submitted drafts of the core reform measures and steps for their implementation to the European Commission, following the established EU methodology. The draft of the core reform measures was finalized on 19 June 2024 and subsequently adopted by the Cabinet on 20 June 2024. The final proposal includes 32 indicative priority reform measures across four policy areas and 14 sub-sectors, with defined steps for fulfilling the reforms. These steps also include success indicators that will serve as the basis for monitoring progress and evaluating the fulfillment of conditions for EU funding. The agenda includes reforms in four key sectors crucial for achieving stable economic growth, improving the business environment, rule of law, and quality of life for citizens: Business Environment and Private Sector Development, Digital and Energy/Green Transition, Human Capital Development, and Rule of Law and Fundamental Rights.

The Cabinet adopted the Decision on the transfer of employees and equipment from the Administration for Inspection Affairs. This decision stipulates that civil servants who performed inspection supervision under the authorization of the Director of the Administration for Inspection Affairs, as well as those engaged in IT, material-financial, accounting, and other administrative or support tasks, will be transferred to relevant ministries and administrative bodies. These ministries and bodies are instructed to adjust their internal organisational acts in line with the new structure.

The Cabinet adopted a Decree amending the Decree on the organisation and functioning of the state administration, clarifying which ministry or administrative body will continue court proceedings initiated by the Administration for Inspection Affairs.

The Cabinet amended its Conclusion No. 10-345/24-5124/2 of 17 September 2024, related to Montenegro's participation in organising the final stage of the Ocean Race Europe sailing competition in the Bay of Kotor. The Ministry of Finance has been tasked with securing €700,000 from the current reserve for this purpose.

The Cabinet adopted the Excellence Scholarship Programme for Doctoral Research in Montenegro. The programme aims to: atrengthen human resources for research and innovation; expand the researcher base in Montenegro; retain and attract young talent to Montenegro; facilitate knowledge exchange between academia and industry; boost competitiveness in both the academic and business sectors; internationalize scientific research.

The total programme budget is €1.5 million for the 2024-2027 period. Scholarships will be awarded for up to three years, with eligible applicants being doctoral students under the age of 40 with Montenegrin citizenship or permanent residence. Additionally, applicants must have a minimum average grade of 8 across all levels of study where they have earned 300 ECTS credits.

The Cabinet adopted the Programme for research grants to promote excellence. This programme provides significant opportunities for Montenegrin researchers to conduct high-level research, foster national synergy, collaborate internationally, and contribute to the country's socio-economic development. The programme has a total value of €2.1 million for 2024-2027, with individual grants ranging from €200,000 to €350,000 for projects lasting three to four years. Recipients are required to provide at least 10% of the project's total value from their own funds.

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