Jelena Nedović, a member of the Movement Europe Now (PES), has underscored the significance of the Europe Now 1 and 2 programs in alleviating the impact of rising prices on Montenegrin citizens. She questioned how people would cope with current price levels if their incomes and growth trends had remained as they were during the era of the Democratic Party of Socialists (DPS).
In a statement from PES, Nedović asserted that the Europe Now 2 program is a vital response to global inflation, which is also felt in Montenegro.
“I am pleased to highlight that the recent increase in minimum and average wages to 600 and 800 euros respectively is a direct measure to combat inflation affecting our citizens. How could people survive with salaries of 222 euros and pensions of 145 euros?” she asked.
Nedović argued that fiscal policies are not the cause of inflation in Montenegro. “Inflation did not rise due to the implementation of the ES1 program, and it will not rise due to the ES2 program. It is noteworthy that, unlike our country, no EU member state has increased wages to the extent that Montenegro has: minimum wages and pensions have tripled, and average wages have doubled,” she said.
She pointed out that inflation in Montenegro, as elsewhere, is a consequence of the global crisis, the war in Ukraine, and the COVID-19 pandemic. “We are also heavily dependent on imports and use the euro, which limits our control over inflation. Inflation in Montenegro is at the average level for EU member states, around 8.7 percent last year, whereas outside the EU, like in Turkey, it has reached as high as 65 percent,” Nedović noted.
She emphasized that inflation is a global issue, not confined to Montenegro. “Inflation in Germany reached 7.4% last year. In Italy, it was 6.9%. Spain saw 8.4%, Hungary experienced 17%, and the Czech Republic and Slovakia had 12% and 11% respectively. Poland had 10.9%,” she added.
Nedović commended the government’s efforts to mitigate inflation’s effects. “We are imposing limits on profit margins for basic food items in retail chains to reduce prices and ease the burden on our citizens. We are also working to attract foreign retail chains to create healthier competition and prevent potential price oligopolies. Increasing wages is also a powerful tool in addressing the issue of young people leaving the country for better opportunities. This problem will become more pronounced as we approach EU membership, which will facilitate access to the EU labor market,” she said.
She concluded by warning that without wage increases, Montenegro may face a shortage of skilled labor. “Therefore, we are creating conditions for fair wages and a decent standard of living to retain young and skilled professionals,” Nedović emphasized.
