It is essential for Montenegro to address the escalating costs associated with public sector employees, as this significantly impacts business operations and undermines the economy’s competitiveness. The quality of services provided does not align with the expectations and requirements of the business sector, as outlined in the Business Agenda 2025 by the Union of Employers (UPCG).

The Business Agenda 2025 presents several recommendations aimed at reforming priority areas to enhance the business environment and boost enterprise growth and competitiveness. Among these, reducing the number of state administration employees is vital for improving efficiency, particularly within a small and nimble economy.

These recommendations further emphasize the necessity of lowering employee costs, which are currently exorbitant and increasing annually, while maintaining the financial stability of public resources, as reported by PR Center.

“As a result, businesses face higher operational costs in Montenegro, while the quality of services offered by the state administration to the economy remains inadequate. It is crucial to foster a continuous learning process by adapting policies to evolving circumstances and incorporating stakeholder feedback,” the document notes.

Regarding the improvement of the legal and regulatory framework, the Business Plan stresses the importance of involving employer organizations at all stages of policy development, starting from the initial phases based on data-driven analysis.

“It is vital to ensure that employers have a definitive voice in all policy decisions, from legislation to strategic initiatives. Currently, legislation mandates that the Social Council’s opinion must be sought for all amendments, which is not happening at present. Therefore, enhancing transparency and inclusiveness in the decision-making process should be prioritized,” the recommendations indicate.

The Business Agenda 2025 is based on the report titled “Enabling Environment for Sustainable Enterprises” (EESE), which has been developed by the Union in collaboration with the International Labour Organization. This document will be showcased at the Business Agenda 2025 forum, hosted by the MEF on February 20, coinciding with the International Day of Social Justice, with support from the ILO.

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