Montenegro Parliamentary Committee proposes measures to combat rising inflation

The Parliamentary Committee on Economy, Finance, and Budget will hold a supervisory hearing with Nik Đeljošaj, Deputy Prime Minister of Montenegro for Economic Policy, on the topic: “Inflation in Montenegro and Its Effects on Citizens’ Living Standards,” announced Boris Mugoša, Chairman of the Committee, head of the SD parliamentary group, and representative of the European Alliance.

He recalled that at the end of March, following his initiative, the Committee held a parliamentary hearing with the authorities responsible for prices in retail chains. At that meeting, the Committee unanimously proposed concrete measures to protect citizens’ living standards and systematically address the issue of high prices. However, to date, the responsible authorities have not provided adequate responses. Inflation in Montenegro is more than double that of eurozone EU countries, yet the authorities have not taken appropriate measures.

Supported by

Mugoša outlined the measures the Committee unanimously proposed over five months ago to the Government and the business sector:

1. The Government should consider reducing the value-added tax on fruits and vegetables, examine the possibility of lowering it on processed meats, and analyze the justification of excise policies on other products.
2. Support for domestic production should be increased through higher budget allocations to strengthen the competitiveness of the Montenegrin economy and continued higher funding for the Agrobudget.
3. In cooperation with retail chains, the Government should ensure that domestic products are positioned in the most visible locations on store shelves.
4. Retail chains should, where possible, provide dedicated sales areas for products with price limits in larger stores.
5. Price monitoring should allow retailers to clearly indicate both the current and previous retail prices of products for a specific period or day.
6. Importers, distributors, and retail chains should examine opportunities to adjust costs and other items to provide more favorable prices for end consumers.

Mugoša concluded that many of these measures are being implemented or will be implemented in EU countries to protect citizens’ living standards, even in countries where inflation is significantly lower than in Montenegro.