Montenegro’s Economic Reform Program Projects €3.5 Billion Revenue by 2026

The Government of Montenegro has approved an ambitious Economic Reform Program for the period from 2026 to 2028, projecting public revenues to rise from €3.5 billion in 2026 to €3.72 billion in 2028. This initiative aims to bolster the country’s macroeconomic stability and enhance international competitiveness while meeting the economic criteria necessary for European Union accession negotiations.

During a recent cabinet meeting, officials emphasized that the Economic Reform Program is a pivotal document for achieving compliance with EU economic criteria. The program serves as a roadmap for economic policy planning and reform management, focusing on inclusive growth and sustainable development.

According to the Government’s announcement, the program consists of two key chapters: the macroeconomic framework and the fiscal framework. Preliminary projections from the Ministry of Finance indicate that Montenegro’s economy is expected to grow at an average annual rate of 3.2 percent over the medium term, with growth rates of 3.2 percent in 2026, 3.1 percent in 2027, and 3.2 percent in 2028.

In the coming years, Montenegro plans to continue implementing measures outlined in its Fiscal Strategy, which includes enhancing public expenditure control, improving revenue collection through modernization of tax administration, and combatting the informal economy. The government also aims to prioritize capital investments in projects that stimulate growth while consolidating fiscal discipline.

Projected Revenue Growth and Economic Strategy

The Economic Reform Program outlines projected public revenues rising from €3.5 billion—representing 40.9 percent of GDP in 2026—to €3.72 billion, or 39.7 percent of GDP, by 2028. This expected growth in public revenue is attributed to increased consumption, strengthened economic activity, and a reduction in the size of the informal economy.

The government has also proposed amendments to the law regulating the agricultural products market, aligning Montenegrin legislation with the EU’s Common Agricultural Policy. This adjustment is part of the obligations Montenegro must fulfill in its process of harmonizing with European legislation, particularly as it pertains to opening Chapter 11—Agriculture and Rural Development—in EU negotiations.

Officials noted that these amendments would establish a solid foundation for the enactment of subsidiary regulations, facilitating full implementation of the law in accordance with the practices observed in EU member states.

Legislative Proposals for Energy and Consumer Protection

In addition, the cabinet approved a draft law on cross-border energy infrastructure projects, which includes a report from a public discussion. Montenegro, as a member of the Energy Community and a candidate for EU membership, is obligated to align its legislation with EU regulations in the energy sector. The new law will outline procedures and conditions for the realization of significant cross-border energy projects, including cost-sharing arrangements and incentives.

The proposed law aims to create favorable conditions for timely implementation of these critical projects, attract potential investments, and accelerate economic development. This initiative is expected to enhance energy security, market integration, and price accessibility while addressing climate change goals.

Moreover, the government introduced a draft law on consumer protection, which seeks to align with the latest EU consumer directives from 2019. This alignment is crucial for temporarily closing Chapter 28 in accordance with the European Commission’s recommendations. The proposed legislation is designed to reflect the experiences gained over the past nine years since the initial adoption of Montenegro’s consumer protection law in 2014.

The cabinet also discussed modifications to the Arbitration Law, aiming to recognize arbitration as a vital mechanism for dispute resolution among both domestic and foreign investors. By increasing the role of arbitration, the government intends to improve the business environment and enhance legal certainty for investments in Montenegro.

These legislative efforts are seen as essential steps towards positioning Montenegro favorably within the EU framework, ultimately contributing to the country’s overall development and integration into European markets.