Montenegro’s revised Draft Regional Development Strategy for 2023–2027 sets out 72 activities for 2025 with a total budget of 699 million euros. The draft, prepared by the Ministry of Regional-Investment Development and Cooperation with NGOs, is open for public consultation until September 14.
The strategy aims to reduce social and economic disparities, particularly between the Northern region and other parts of the country. Funding sources for 2025 include 247.8 million euros from the national budget, 28.96 million euros from municipal budgets, 411.82 million euros from the public sector, 2.97 million euros from IPA funds, and 7.44 million euros from donor programs.
By region, the largest allocation is for the Central region (321.5 million euros), followed by the North (186.57 million euros) and the Coast (116.57 million euros). An additional 74.35 million euros could not be allocated to specific regions.
Strategically, 96.16% of funds (672.16 million euros) are earmarked for improving regional competitiveness through infrastructure, business environment, and sectoral development. Sustainable economic development and human capital initiatives account for 3.84% (26.8 million euros), while strengthening local governance receives minimal funding. Investment priorities include sustainable growth (62.25%), smart growth (33.9%), and inclusive growth (3.84%).
Challenges in implementing the 2025 Action Plan included inadequate or incomplete data from state authorities and local governments, with five municipalities failing to provide input. Despite these issues, 2023 investments under the strategy totaled 492.7 million euros, primarily focused on competitiveness and infrastructure, with the largest spending in the Central region.
The strategy revision was prompted by new population census data showing concerning trends in migration and aging, particularly in the underdeveloped Northern region, as well as the establishment of the Ministry of Regional-Investment Development and the adoption of the Spatial Plan of Montenegro until 2040.
