Spajić Repeats Promises on Euro Model, Fails to Provide Details

Montenegrin Prime Minister Milojko Spajić has responded to criticism of his government's 'Euro Model' wage increase plan by reiterating promises, but failing to provide any new details or figures. In a post on social media platform Iks, Spajić claimed that the reform is fully covered by growth in consumption and employment, suppression of the gray economy, expected return of diaspora funds, spending discipline, and active tax measures.

He also stated that additional state revenue will come from more efficient confiscation of illegally acquired property through legal mechanisms to combat organized crime and corruption. Furthermore, Spajić mentioned that his government will focus on taxing empty tertiary real estate, which he believes is a major issue in the country.

The Prime Minister's announcement comes after a set of six laws was approved by the Government electronically without the support of Finance Minister Novica Vuković, whose department did not participate in the preparation of these draft laws. The Ministry of Finance has yet to respond to questions about the reasons behind Vuković's decision.

Experts and organizations have expressed concern over the lack of transparency and fiscal impact analysis for the proposed laws. Professor Maja Baćović warned that the minimum wage increase could significantly increase business costs, stimulate inflation, and threaten the competitiveness of the Montenegrin economy.