Montenegro Government's 'Euro Model' Faces Resistance from STEGA

The Government of Montenegro has proposed a new salary calculation model for implementation in January 2027, but the Strategy for a European and Civic Montenegro (STEGA) is calling on Parliament to delay its consideration until the Government conducts a public debate and submits a fiscal impact assessment.

Prime Minister Milojko Spajić presented the 'Euro model' at a recent Government session, citing it as the biggest change in the public finance system since the introduction of the euro. However, STEGA argues that this significant change was made without any consultation with employers, unions, municipalities, or the professional public.

The proposed laws have been met with criticism from STEGA, who claim that they will result in huge missing funds that will need to be provided through expensive and unfavorable loans. This, in turn, will put immense pressure on micro, small, and medium-sized enterprises, while some municipalities may struggle to find sources of financing.

Pensioners are also expected to receive a significantly smaller pension increase than employees, with STEGA warning that their standard of living will be negatively impacted by inflation. The civic movement is concerned that if the laws are adopted, Montenegro will become the only country in the world where labor contributions have been abolished.