In an interview with Bankar, Professor Gordana Đurović commented on Montenegro’s pension reform, the risks of drastically reducing pension insurance contributions, and the elimination of health insurance contributions in a short period. She emphasized that these measures do not guarantee the sustainability and stability of public finances but rather pose significant risks.
Đurović argued that long-term sustainability of the pension system requires not just financial reallocations but deep reforms to strengthen the economic foundation. She stressed that the current optimistic GDP growth projections for Montenegro are unsustainable without structural reforms and an increase in productivity. Additionally, strengthening domestic production is crucial to reduce import dependence and enhance economic stability.
Regarding the pension system, Đurović criticized the drastic reduction in pension contributions and the elimination of health insurance contributions, which she believes could lead to an increase in the budget deficit and public debt. She suggested that, instead of relying on temporary sources of revenue, Montenegro should focus on long-term sustainable practices like strengthening the productive economy.
She also discussed the current state of the labor market, noting the high number of foreign workers and structural imbalances in employment. She suggested the need for stronger active labor market policies, including the introduction of a permanent seasonal worker institution and better integration of education with the job market.
Montenegro’s trade deficit, exceeding 3 billion euros, was another concern she raised. She highlighted the need to reduce import dependence, particularly in the agriculture and food industries, while fostering export growth in sectors like tourism and wine production.
On fiscal policy, she criticized the capital budget for being insufficient and not growing proportionally with GDP. She pointed out that capital spending should be evaluated based on its share in GDP, rather than absolute numbers, and called for stronger investments in infrastructure, especially in environmental protection.
In terms of price controls to curb inflation, Đurović warned that such measures are only short-term solutions. She noted that they can lead to increased administrative costs and may not deliver lasting benefits. She argued that long-term solutions lie in boosting competition, improving the business environment, and diversifying domestic production.
Finally, Đurović emphasized that Montenegro needs a stronger digital transformation and green transition to stay competitive globally. She acknowledged progress in green finance but warned that more incentives are needed to support sustainable growth, especially given the EU’s growing focus on green standards.
