Montenegro is set to implement public administration reform, but it must determine the most effective model for its optimization. The European Union (EU) Delegation to Montenegro has stated that it cannot comment on specific details regarding communications with local authorities regarding this matter.

This information was officially provided to “Vijesti” by the EU Delegation.

In a recent interview with Radio Television of Montenegro, Prime Minister Milojko Spajic shared plans to reduce the public administration workforce by 20 percent. He mentioned that two proposals for a solution have already been submitted to the European Commission (EC), both of which were rejected. He emphasized that claims of ongoing party recruitment are false, noting a reduction of 150 in the total number of employees in the state administration from November 2023 compared to the same month last year.

By the end of 2023, the total number of employees in public administration at both state and local levels stood at 62,500, exceeding the benchmark of 14,400 set by the optimization plan intended to be implemented in 2020.

“We will assess the situation regarding temporary contracts, aiming to reduce their numbers by 20 percent by the year’s end. We will also freeze new hiring and cut the number of permanent employees by over 20 percent. It poses a significant challenge, in light of the European path, to lay off 20 percent of central administration workers; we have proposed a solution to the EC twice, and unfortunately, both were rejected… We will seek ways to terminate 2,000 positions, as we believe that the state administration is overly staffed, with many individuals not fulfilling their work responsibilities adequately. This is not about politicization but reflects the reality that our administration does not adequately address the needs of the economy or citizens,” Spajić stated while announcing a hiring freeze across all sectors of the central government.

“Vijesti” is still awaiting responses from Spajić’s Cabinet regarding the specifics of how many workers will be dismissed, the accuracy of reports claiming 3,000 additional hires in public administration over the last four years, and plans for reducing temporary contract positions.

Similar questions have been posed to the EU Delegation, including inquiries about when the Government submitted optimization proposals, the reasons for any rejections, and how this issue should ultimately be resolved…

“Optimizing public administration is a primary objective of Montenegro’s public administration reform. While we cannot comment on our communications with the Montenegrin authorities, it is for Montenegro to select the most fitting optimization model in line with the principles of good governance while ensuring sufficient administrative capacity in critical reform areas,” the Delegation noted.

Spajić’s assertions regarding workforce reductions contradict statements made by the Minister of Public Administration, Marash Dukaj, during a recent episode of “Načisto,” wherein he claimed that Montenegro has exceeded limits with 3,000 additional hires in public administration since 2021. He also acknowledged that they lack data on new hires in institutions not directly funded by the state; however, in those receiving over 50 percent of their budgets from the state treasury, over 47,000 work at the central level and more than 7,000 at the local level.

Dukaj identified party recruitment as a major societal issue that must be addressed, stating that Montenegro has breached all reasonable boundaries in this respect.

“Currently, we have 47,284 employees at the central level and 7,092 at the local level. This figure includes all institutions funded by more than 50 percent from the budget. We now have over 3,000 more employees compared to 2021, when our analysis was conducted. Notably, the EU average stands at 15 percent, with a max of 20 percent, which we have surpassed. Optimization must go hand-in-hand with rationalization. As a Ministry and Government, we have initiated tangible steps,” said Dukaj.

The total number of employees in public administration at the state and local levels at the end of 2023 was 62,500, which represents a 7,000 increase since the end of 2020. This total is 14,400 more than what the optimization plan set for implementation in 2020. None of the three successive governments this year have tackled optimization; instead, they have increased the workforce.

Plans for Fewer Work Contracts

In early February, the government established a Commission for the Analysis and Monitoring of Service Contracts Paid from the State Treasury, with the goal of reducing these contracts by 20 percent by year-end.

This commission was the first action taken, alongside forthcoming measures aimed at curtailing state treasury expenditures and optimizing public administration.

“The Commission’s tasks include analyzing existing contracts and determining the necessity for new agreements within budget-funded consumer units, ensuring compliance with regulations, and assessing fee compliance with allocated financial resources for this work engagement,” the Government stated.

The Commission is chaired by the Head of the Prime Minister’s Office, Branko Krvavac, who initiated its formation, with members including Dukaj, Minister of Finance Novica Vuković, Minister of Justice Bojan Božović, Advisor to the Prime Minister for Economic Policy Milena Milović, and Secretary Jelena Martinović, an advisor to Spajić.

As stated earlier, the number of employees in public administration at both state and local levels at the end of 2023 was 62,500, which is 14,400 more than the required number outlined by the optimization plan intended for implementation in 2020.

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