The President of Montenegro, Jakov Milatović, urged all societal stakeholders in the country to contribute to price reduction in Montenegro by proposing concrete solutions.

“Yesterday, we observed a public discussion between the Government and the academic community regarding the reasons for high prices in Montenegro. However, I believe it is more crucial for citizens to receive tangible solutions rather than merely listening to discussions about the causes. All of us—academics, the Government, and various social actors—must work together to provide solutions that will help reduce prices in Montenegro,” stated Milatović.

He reminded the Government of the proposal he submitted a few days prior, outlining ten “practical measures and steps” that, according to him, could lead to reduced prices for essential food items in Montenegro.

Among the measures he suggested is the mandatory display of profit margins alongside product prices:

“To enhance transparency and prevent unwarranted price hikes, retailers should be legally obligated to clearly indicate the margin for each product. This will give citizens insight into the actual cost structure and empower them to compare prices across different retail outlets.”

He also proposed capping margins to single-digit percentages for essential goods.

“For basic food items like bread, milk, sugar, and flour, implementing a limit on trade margins is essential. This will help eliminate excessive profits from essential life products.”

Milatović further emphasized the urgent need for establishing commodity reserves.

“To maintain stable market supply and prevent potential shortages of products with limited margins, the Government must initiate the creation and timely replenishment of commodity reserves.”

He suggested the development of a website for price comparison of essential products.

“It is vital to create a central, regularly updated online platform where citizens can compare prices of key products across major supermarkets. This will bolster market competition and assist consumers in finding the best prices.”

Another urgent measure he mentioned is providing VAT refunds for vulnerable citizens through social cards.

“For socially disadvantaged groups, it is important to offer partial or full VAT refunds on a designated basic food basket. Therefore, the Government should promptly work on developing and implementing a social card system.”

Milatović also advocates for increased subsidies for domestic production.

“Bolstering domestic agriculture is crucial for ensuring a stable market and sustainable pricing. Aiming for an agricultural budget of at least 100 million euros is necessary to enhance subsidies and support programs for local agricultural producers, encourage local production, and decrease reliance on imports.”

He additionally proposed offering more incentives for sellers of local products.

“Consider providing benefits for sellers who primarily source and sell domestic products. Collaborating with municipalities to establish distribution centers where local producers can sell directly would also be beneficial.”

Furthermore, he called on the Government to evaluate the possibility of reducing VAT on essential products.

“Defining a list of basic household items (the ‘basket for a dignified life’ category) and considering reducing VAT on these products is crucial.”

He mentioned the need to conduct an analysis of margins and the reasons for higher prices in Montenegro compared to the EU.

“A comprehensive evaluation of margins and key factors leading to the often higher prices in Montenegro compared to European Union countries should be conducted. The findings need to be communicated transparently to the public, alongside concrete proposals for addressing the issue.”

Lastly, Milatović advocated for strengthening the Consumer Protection Center and related organizations.

“Enhancing the capabilities of institutions and organizations focused on consumer protection is essential. The Consumer Protection Center and similar associations need broader authority and more resources to play an active role in monitoring prices and improving market conditions,” he concluded.

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