Montenegro’s DPS proposes 30% pension rise costing more than 200 million euros

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Danijel Živković, president of Montenegro’s Democratic Party of Socialists (DPS), said on Radio and Television of Montenegro’s Okvir programme that he would propose Prime Minister Milojko Spajić for the Nobel Prize in Economics if the Euro model succeeds. At the same time, DPS presented its “Plan for All”, whose key measure is a 30% increase in all pensions, with a projected cost of slightly more than 200 million euros, according to Živković.

The programme is aimed at groups Živković said were left out of the government’s economic model: pensioners, micro, small and medium-sized enterprises, and young people. It covers about 130,000 pensioners and more than 60,000 companies, mostly micro, small and medium-sized businesses, where around 140,000 people work. He described the groups covered as nearly 400,000 citizens of Montenegro.

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The proposed pension rise would be applied across the board, with four adjustments over one year. Around 60,000 pensioners receive the minimum pension of 456 euros, while the average pension is about 560 euros, Živković said. DPS wants the average to reach approximately 713 to 716 euros. He argued that the minimum does not cover all pensioners’ costs, particularly as prices rise, adding: “If wages are already being increased, it is logical to raise pensions by up to 30% as well.”

DPS would finance the measure by rationalising public spending, Živković said. He cited cuts to spending on official travel, hospitality, service contracts and consultancy, alongside centralised public procurement. He said those steps could “precisely reach those 200 million euros.”

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Živković also proposed reducing the number of ministries to 14 or 15, citing Montenegro’s population of 620,000 and a government with 33 members. DPS will propose an Estonian model with 14 or 15 ministries. He said the initiative was “not political one-upmanship or an attempt to gain political profit.”

DPS plans to present its proposed legislation, the measures’ financial effects and their impact on the budget next week, Živković said.

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