Montenegro's 'Debt Model' Set to Fuel Inflation and Uncertainty

A proposed set of amendments to Montenegro's financial laws has been met with skepticism by Miloš Vuković, executive director of Fidelity Consulting.

The changes would abolish PIO contributions, increase minimum wages from 600 to 1,250 euros, and raise corporate tax rates. The state would also take part of the taxes from municipalities and transfer them to the national level.

Vuković argues that this 'Debt model' will lead to inflation and uncertainty for citizens. He points out that the average net salary in Montenegro increased by 33 euros between January 2025 and July 2026, but this is organic growth and not a result of administrative decisions.

The proposed reforms would give employees an average increase of around 400 euros, while pensioners could receive an additional 50 euros. However, Vuković claims that inflation will 'eat' the latter much faster than the former.