The EU-Montenegro Joint Consultative Committee adopted a declaration by consensus in Brussels on 3 November, urging Montenegro’s government to review its Euro model before implementation. The committee also said the Velje brdo project is not an adequate response to citizens’ housing needs.
The Euro model envisages increases in minimum wages and pensions from 2027. The committee welcomed the government’s intention to raise living standards and retain workers in Montenegro, while expressing concern about the proposal’s effects.
The declaration called for published assessments of the reform’s fiscal and social effects, its impact on employment and competitiveness, and credible, sustainable financing. It also recommended safeguards for the Euro model and similar economic reforms.
In its assessment, the committee warned that wage growth exceeding productivity growth, combined with economic growth based on consumption, could weaken Montenegro’s competitiveness. It called for timely consultations with representative trade unions, employers’ organisations, the Chamber of Commerce, municipalities, the Pension and Disability Insurance Fund and civil society organisations before the model is applied.
Committee calls for different housing policy
The Velje brdo project, the declaration said, involves exceptionally costly housing construction and apartment sales, concentrates more residents in the capital and excludes other municipalities. The committee judged it inadequate for citizens’ increasingly pronounced housing needs.
It urged the government to adopt an affordable-housing model based on public, social, cooperative and non-profit construction, using funds and resources provided for under the European Affordable Housing Plan.
The committee’s recommendations are not legally binding on the government, and it cannot order the withdrawal or amendment of either the Euro model or Velje brdo. Its conclusions form part of institutional dialogue with the European Union and are sent to relevant European and Montenegrin institutions. The declaration is due to be delivered to the Stabilisation and Association Council and the Stabilisation and Association Parliamentary Committee.
Established in 2011 by a decision of the Stabilisation and Association Council, the committee operates within cooperation under the Stabilisation and Association Agreement. Its role is to monitor Montenegro’s EU accession, encourage dialogue among trade unions, employers and other civil society organisations, and provide recommendations to Montenegrin authorities and EU institutions.
The body has 12 members: six representatives of the European Economic and Social Committee, the EU’s official advisory body, and six from Montenegro’s organised civil society. Danko Relić and Srđa Keković are its co-chairs; Keković is also general secretary of the Free Trade Union of Montenegro.
European Affairs Minister Maida Gorčević and Labour, Employment and Social Dialogue Minister Naida Nišić attended the meeting. Participants announced for the Euro model discussion included Tatjana Džudović, Suzana Radulović, Marina Vujačić and OECD economic adviser Umur Gekče. Representatives of the European Commission and the European Economic and Social Committee were among the announced participants in other parts of the meeting.
