The President of Montenegro, Jakov Milatović, has presented an initiative to the Government to implement urgent measures aimed at reducing prices and enhancing the living standards of citizens.

According to a statement from Milatović’s Public Relations Office, the recent boycott of retail chains highlights that soaring prices are a significant burden for citizens, with essential groceries often costing more than in much more developed European nations.

Among other suggestions, Milatović proposed the creation of commodity reserves, a website for comparing prices on essential products, and VAT refunds for vulnerable citizens through social cards…

Milatović suggested that the Government adopt the following 10 measures:

Mandatory Transparency in Pricing

To enhance transparency and prevent unwarranted price hikes, it is essential to legally require retailers to disclose the markup for each product. This initiative would allow citizens to understand the actual cost structure and compare prices among various retail chains.

Caps on Margins for Essential Goods

For staple food items like bread, milk, sugar, and flour, implementing a ceiling on trade margins is necessary to avert excessive profits on basic necessities.

Establishment of Commodity Reserves

To maintain a consistent market supply and avert potential shortages of products with regulated margins, the Government should commence the establishment and regular replenishment of commodity reserves.

Creation of a Price Comparison Platform for Key Products

A central, frequently updated online platform should be developed, enabling citizens to compare prices of vital products in the largest supermarkets. This would foster market competition and assist consumers in finding the best offers.

VAT Refunds for Vulnerable Groups via Social Cards

For socioeconomically vulnerable populations, it is crucial to offer partial or full VAT refunds on a selected basic food basket. Consequently, the Government should promptly devise and implement a social card system.

Boosting Subsidies for Domestic Production

Enhancing local agriculture is critical for a stable market and sustainable pricing. Aiming for an agricultural budget of at least 100 million euros is essential to further bolster subsidies and other supportive programs for domestic producers, promoting local production while reducing reliance on imports.

Incentives for Sellers of Local Products

Consider providing incentives for sellers primarily offering domestic products. Collaboration with municipalities should aim to establish distribution centers where local producers can sell directly.

Evaluating VAT Reductions on Essential Products

A list of fundamental household items (the “basket for a dignified life”) needs to be identified, and the option of reducing VAT on these items should be explored.

Assessment of Price Margins Relative to the EU

A thorough analysis of price margins and factors leading to higher costs in Montenegro compared to EU nations must be conducted. Results should be communicated transparently to citizens, featuring concrete solutions to the issues identified.

Empowering the Consumer Protection Center and Related Bodies

It is vital to enhance the capabilities of institutions and organizations focused on consumer protection. The Consumer Protection Center and similar entities should be granted expanded authority and resources to effectively monitor pricing and improve market conditions.

“By uniting our efforts, we can contribute to a more economically stable and just Montenegro,” Milatović remarked in a letter to the government.

A new boycott of supermarkets is planned for Friday and Saturday.

The citizens’ group Alternativa, the organizer of the boycott, urges citizens to refrain from shopping at major supermarkets for two days to pressure their owners into lowering prices.

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