The reforms undertaken by the Central Bank of Montenegro (CBCG) aim to significantly advance inclusive growth, enhance integration into the European economy, and bolster long-term economic resilience, stated Irena Radović, Governor of the supreme monetary institution.

During the international conference MICEB 2025 – Shaping Sustainable Economies: The Path to EU Membership, which commenced today in Budva, she outlined the CBCG’s primary initiatives to align more closely with the European System of Central Banks (ESCB) and support Montenegro’s broader European integration efforts.

As announced by the Central Bank of Montenegro, Radović highlighted that sustainability and digital transformation are key components of economic development. The CBCG is dedicated to establishing a resilient, inclusive, and sustainability-focused financial institution that aspires to integrate into the ESCB.

“A significant reform step we’ve taken is Montenegro’s integration into the SEPA system, which will soon deliver tangible benefits to our citizens and businesses through more efficient, secure, and cost-effective transactions,” Radović noted.

She also mentioned that the CBCG is actively working on establishing a national instant payment system modeled on the European TIPS, which will enhance service quality to EU standards and strengthen Montenegro’s position within the European financial landscape.

Updated estimates shared at the conference indicate that SEPA integration could yield substantial annual benefits, such as savings in payment transactions, increased foreign direct investments, better digital inclusion, and boosted competitiveness in exports and tourism.

“SEPA and TIPS are not merely technical solutions; they are strategic instruments for promoting inclusive growth and aligning with the EU,” Radović emphasized.

She further stated that the CBCG’s analyses suggest that fully implementing these reforms could generate an annual economic boost of approximately EUR 160 million, equating to 2.3 percent of Montenegro’s gross domestic product (GDP).

“Our projections indicate that the complete execution of these reforms could elevate per capita income by EUR 2,580 over the next decade and reduce the gap in per capita income with the EU by over 11 percentage points,” the statement read.

At the conference, Radović engaged in a meeting with Professor James Robinson, last year’s Nobel Prize winner in Economics, awarded for his research on institutional integrity, inclusion, and independence, and their implications for economic prosperity.

During their discussion, they exchanged views on the effects of geo-economic fragmentation on Montenegro and the necessity of fostering independent and inclusive institutions as the groundwork for sustainable economic development and resilience.

Robinson remarked that robust and inclusive institutions are essential for long-term prosperity, and expressed confidence in Montenegro’s potential to align with EU standards. Both parties acknowledged the critical role of institutional reforms in speeding up Montenegro’s economic growth and diminishing economic disparities.

The Central Bank of Montenegro proudly sponsors the esteemed International Conference MICEB 2025, coordinated by the Faculty of Economics at the University of Montenegro in collaboration with international partners, marking its 65th anniversary.

This event convened leading experts from academia, business, and public institutions, with the goal of sharing knowledge and experiences in sustainable economic development and the reform processes necessary for EU integration.

News