We are pleased that the Government of Montenegro is ready to timely and adequately include the American Chamber of Commerce in the earliest phases of reviewing regulations relevant to the business environment, and support our platform “Partnership for a Better Business Environment”, said AmCham President, Mr. Nikola Tripkovic during the interview with the Prime Minister of Montenegro,  Zdravko Krivokapić, PhD, at the traditional AmCham event Openly with the Prime Minister, which was held today through a video platform.

Today has been officially presented AmCham Business Climate Report for the period 2019-2020, which provides an overview of members perception regarding the business conditions in Montenegro in various areas. The overall mark for the business climate for the period 2019-2020 is 5.80, which is lower than the mark given in the last Business Climate Report for the period 2017-2018, when it was 6.29, AmCham Executive Director, Mr. Marko Miročević, PhD, announced during the official presentations of the key findings, as well as guidelines and recommendations in which direction the business environment should be further improved.

During the interview the Prime Minister said that one of the most important pillars of the Government of Montenegro is digital transformation, which is, as he stated, a necessary prerequisite for further development of Montenegro in all areas of public administration and society and the cornerstone of economic growth, which is also one of the key recommendations in the AmCham Business Climate Report, as well as its strategic priority.

Human resources development and the regulation of labor relations in accordance with the best international practices – must be high on the agenda of the executive authorities, has been pointed out during the interview, also tax policy must be predictable and competitive, and in that context labor tax levies should be decreased.

Speaking about the improvement of the business environment, Prime Minister Krivokapić said that the Government wants to create a business environment which is satisfactory to all stakeholders, and to define development policies based on dialogue with the key partners.

In the discussion, the AmCham President emphasized that it is necessary to increase the capacity and efficiency of inspection services, create stimulative measures for the transition of entities from grey to regular economy, and enable control of those entities that are not registered but perform economic activity.

The Prime Minister said that consistent application of legal regulations is a precondition for fighting the grey economy, emphasizing that the Government, in order to resolve this issue, will work on improving tax policy in the coming period through changes in tax legislation and strengthening administrative capacity.

Asked whether the Government plans to adequately reduce tax levies on salaries, as an appropriate balance to increasing cost of the minimum wage, Prime Minister Krivokapic answered that the goal of the Government is to work with all partners to find the optimal solution, i.e. reduce the tax burden, which would compensate the costs for employers that are the result from the increase in the minimum wage.

Krivokapić said he hopes that the Labor Law will be amended in a way that would make everyone satisfied. He pointed out that the measure of everything is a quality employment relationship, so that the worker and the employer, as well as the state, could benefit. The Prime Minister pointed out that in the current situation it is the most important thing to ensure the protection of employees, on the one hand, as well as more flexible business of employers, on the other hand, in terms of realizations of rights at work, in a dignified manner and in the law spirit.

In the second part of the interview, it was emphasized that, as the Report treats, it is necessary to work on creating a modern, agile and efficient health system, and in that purpose create a strategy for digital transformation of the health, as well as a number of strategic documents for diseases that become a threat to public health.  

In that context, U.S. Ambassador in Montenegro, H.E. Judy Rising Reinke, said that the past year highlighted the importance of improving digital services and opened opportunities for its application in a new sectors, including digital healthcare. It is no surprise that AmCham saw this trend developing and has started looking into the combination of healthcare and technology in Montenegro.

The current healthcare challenge requires our collective energy, diligence and commitment to community. said U.S. Ambassador, as well as that she is very proud of the financial assistance that the U.S. Embassy, has provided to the Red Cross, COVID-related technology grants to the Goverment of Montenegro with over $300,000 in hospital equipment to facilities around the country.

In the end, it is a pleasing fact that about 82 percent of AmCham members gave an optimistic business perspective for the upcoming five-year period, citing the ongoing implemented reforms toward European union as a main reason. When it comes to the risks that companies see in the coming period, the unpredictability of the market, which has  been increased directly due to COVID-19 pandemic, worries the most, said 84 percent of them.

The complete Business Environment Report is available here

http://www.amcham.me/advocacy/publications/