The government will soon be able to propose a gradual increase in the minimum wage of social partners, trade unions and the Union of employers, in order to reach half of the average salary in three or four years, along with partial tax benefits for employers, Vijesti reports.

This analysis is in the final phase and it was done in parallel with the analysis of the proposals of the trade unions and SDP that the minimum wage is immediately increased to the amount of half of the average salary, which has been negotiated for two years. The Employers Union increases the minimum wage by introducing a non-taxable portion of earnings or decreasing taxes on earnings.

The Ministry of Finance is finalizing the analysis and the final proposal could be known in about ten days. The current minimum wage of 193 euros has not changed for six years and is the lowest in the region. Also, Montenegro has the highest tax burden on earnings.

The proposed model could be similar to that agreed in Croatia in 2017 when all social partners decided that the amount of minimum wage will gradually increase to an amount of 50 percent of the average by the end of 2020. At that time, the minimum wage in Croatia was 40 percent of the average, and with the increase from December last year, now it is 46 percent of the average. At the same time, tax incentives and subsidies are introduced to employers, such as the possibility that the state subsidizes a portion of taxes and contributions if the employer cannot pay salaries higher than the minimum due to unforeseen circumstances or market disturbances, as was the case in the textile industry in Croatia at the time.

According to the working version, which is still being analyzed, the minimum wage could be increased to 42 or 43 percent from the previous year by the end of this year, and then it would grow by two or three percentage points each year until it reaches 50 percent of the average with which, later on, it would be regularly adjusted on a regular basis. At the same time, employers would be exempted from an additional two percent tax on gross earnings above average and tax on reinvested profits, also some form of tax-free profit sharing would be introduced, but with some restrictions, so no misuse would occur.

Now in the Montenegrin law, it says that the minimum wage cannot be less than 30 percent of the average, but in 2013, the social partners agreed that at that time it would still be 40 percent of the then average, so it received the amount of 193 euros. Since there was no annual harmonization since then, the minimum wage now stands at 38 percent of the average.

Now, for every euro of net earnings, employers pay 67 cents of taxes and contributions, and if the salary is above average, the fees can amount to 75 cents for each euro net earnings.

The average net salary in 2018 was 511 euros. If, according to these analyzes, the new amount of minimum wage would be set at 42 percent of the average, this would be a growth from 193 to 214 euros. On this growth of 21 euros, the state would receive 14 euros of taxes and contributions.

For every increase in the minimum wage to affect average growth, it should be expected that in the four years the average salary will be around 550 euros and a minimum of 275 euros. This would also affect the state's higher costs of social benefits and pensions that are partially aligned with the increase in average earnings, as well as subsidies to employers that would be agreed to their consent to increase the minimum wage.

Analyzes, for now, show that the state budget would be at zero or a slight deficit with such a rise in the minimum wage, the increase in the costs of salaries and social benefits and tax incentives for employers. The government expects that in two or three years the results of economic growth and large investments in tourism and infrastructure will be visible, that there will be a significantly higher number of employees and therefore higher revenues for the state cash register and the possibility for the growth of standards.

The campaign for increasing the minimum wage has lasted for three years, and trade unions and SDP requested it. A year ago, SDP launched a petition to raise the minimum wage that was signed by 11,000 citizens. SDP ‘s delegate Rasko Konjevic has proposed several times amendments to the laws that would increase the minimum wage to 50 percent of the average, but the parliamentary majority rejected it.

Prime Minister Dusko Markovic said two days ago that he believes that there will be an increase in the minimum wage and that a step will be made in this direction, and that certain benefits will be provided to employers.

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Text by Goran Kapor, on March 6th 2019, read more at Vijesti

06 March 2019 - Parking Service Podgorica recently launched an Android and IOS application that allows users to park their vehicles at the parking lots managed by the Parking Service, to detect the specific zone in which they are located, to pay parking fees and simply control the time during which their vehicle is parked at a certain location (parking lot). The application can detect the zone in which the user is located using his current location, and it provides the possibility to purchase a ticket for that specific zone.

The application has many options that you can use, such as the list of all parking lots with the exact location and navigation to the specific parking lot, checking the parking zone, monthly subscription forms, and many others.

Assuming the user’s vehicle was improperly parked, using the application, a person can check whether the car was taken away by the public towing service.

Using the application also saves time and money by locating the most convenient parking location without having to drive around.

The free parking service application makes it easy to find and pay for parking without running back to “feed the meter”. Whether the user is looking for a spot in the moment or he/she wants to reserve a space ahead of time, Parking Servis Podgorica is the right app for them.

"Users will also receive notification through the application on their phones at the expiry of the active card and when it's possible to buy a ticket," the representatives of Parking Service announced.

The application named "Parking Servis Podgorica" can be downloaded free of charge at official Android and IOS stores.

05 March 2019 - Deputy Prime Minister and Minister of Justice Zoran Pažin met today in London with British Minister of State for Europe and the Americas Alan Duncan. Montenegro and the United Kingdom are resolved to steadfastly oppose organised crime and serious criminal offenses through closer cooperation, it was noted at the meeting. 

The Deputy Prime Minister and Minister Duncan signed a bilateral agreement, complementing the European Convention on Extradition and facilitating its application. 

The main novelty of this agreement is that Montenegro and the United Kingdom express their readiness to extradite their own citizens to one another if one country seeks them for serious crimes for which a prison sentence of five or more years has been foreseen. 

"This agreement unambiguously indicates that there is a high degree of mutual respect and trust between Montenegro and the United Kingdom, with the conviction that the legal systems of both states will guarantee the right to a fair trial of every person who is extradited, respecting the presumption of innocence," DPM Pažin emphasised. 

The agreement states that the parties are "aware of the guarantee of the right to a fair trial of the accused within their legal systems, including the right to trial before an impartial tribunal established by law". 

DPM Pažin signed a Memorandum of Understanding with Minister Duncan and Financial Secretary to the Treasury Mel Stride to further deepen cooperation in the area of security, the rule of law and the joint fight against organised crime, especially against various types of financial crime.

05 March - The Prime Minister recently hosted a meeting of business people sponsored by the American Chamber of Commerce in Montenegro. Speaking about the fight against the gray economy, the Prime Minister said that a thriving economic and financial policy came as a result of increased work of inspection services despite the lack of capacity.

As to the tax policy and labour policy plans, the Government is reviewing complaints made by social partners with extreme sensitivity, PM Marković noted.

He also said that the Government is considering reducing or even abolishing the profit tax rate for those companies that reinvest their profits.

February 5, 2019 -  The municipality of Tivat Manager, Marko Petricevic confirmed that investors are interested in investing in the tourist complex Sveti Marko, which the company "Metropol" of the Russian oligarch Mihail Slipenčuk brought ten years ago.

04 March 2019 - "The Montenegrin economy has grown at a rate of above 4.5% in two previous years. We do not have the final data yet because we are still waiting for information for the 4th quarter of 2018, but in 2017, the growth rate was 4.7%. in the first nine months of 2019, the economy grew by 4.9%, with the third quarter's growth of 5%, which was the third growth rate in Europe. Therefore, Montenegro, a small economy with so many challenges, achieved economic growth which is among the largest ones in Europe in these two years," the Prime Minister stressed answering questions at a meeting with business people sponsored by the American Chamber of Commerce in Montenegro.

The Ministry of Transport and Maritime Affairs is trying to resolve the property issues related to the land of Tivat Airport by administrative methods and without compensation to the owners.

The department led by the Minister Osman Nurkovic is carrying out this quickly, trying to eliminate one of the remarks of the government's intention to give the airports to concession - unresolved ownership issues about the real estate.

Also, according to the unofficial information, the Ministry received such an order from Prime Minister Dusko Markovic - to resolve the controversial property issues before the Government even considers the concession act.

The data of the cadaster show that in the previous two months, all burden registered in the property list of Tivat Airport were erased, resulted by numerous court proceedings initiated by private owners against the state, demanding legal compensation for assets that were taken away from them in the ‘50s and ‘60s.

"We've done a lot of work. Unfortunately, this was supposed to be done by ACG management, as well as many other things because they had about 25 million euros in the account, "said the Minister of Transport Osman Nurkovic (BS) on February 3^rd on RTCG.

He and his associates, even after more than 15 days, did not answer the questions about the removal of the burden from the land with 544,601 square meters in KO Mrcevac in Tivat. That's all the land and facilities of Tivat airport. According to the records of the Real Estate Directorate, this was done by the "final decision of the Basic Court in Kotor, whose spokesperson, Spiro Pavicevic, explained:" We are informing you that the court ruled that the lawsuit was withdrawn and that the decision was final on 22.11.2013.”

However, from MSP to this day, they did not explain why the burden from the cadastral register was erased five years after the court made the decision. The Municipality of Tivat said that "erasing the record of court litigations in the jurisdiction of the cadaster". The Law on State Survey and Real Estate Cadaster stipulate that the recording of the dispute shall be deleted ex officio by the expiration of a period of 10 years from the date of the registration, so the interlocutor from the Municipality does not exclude the possibility that this was done ex officio.

For one year and a half there are discussions in public related to the concession, but also among the ruling coalition partners - DPS, BS and the Social Democrats whose staff is managing ACG. Giving the airports in Tivat and Podgorica for long-term lease was announced in May 2017 by the Prime Minister Dusko Markovic (DPS), who defined the current situation at the airports "shameless" and said that through the concession, they can be valorized" in the fastest and most efficient way and lead to a standard adequate to the intention of Montenegro to become a regional touristic leader.

DPS supported by BS, whose line minister and staff claim that ACG does not manage well the airports, stated that this company is an example of nepotism and employment through the political party SD and that Montenegro "does not have the knowledge or money" to adequately lead and develops the airports.

SD, however, rejects the claims, stating that ACG is the most successful state-owned company operating with the profit, although it practically carries along a continuing loser – the national aircraft Montenegro Airlines. They state that ACG can develop the airports from profits and favourable loans offered by the EBRD.

The opposition shares such views, but also a part of the expert economic public in Montenegro and the region that warn the Montenegrin Government "not make sudden decisions", but to be very cautious, because the concession arrangements in the area have not given good results, and that behind private companies that lease the airports there are actually companies of powerful Western countries.

They do not have the interest to develop the company and worry about its contribution to tourism, said Alen Sucuric, a civil aviation analyst from Zagreb, and the owner of the company that deals with this kind of business. He illustrates this with statistical data:

"ACGs are extremely successful. In the context of the size of Montenegro and the environment, ACG is the most successful airport operator in the region and have a great future because they can develop themselves. They are extremely important for Montenegro, which is a remarkable airline destination and for whose tourist economy the airline availability is conditio sina qua non," says the interlocutor.

The interlocutor states that "the concessionaire is a huge danger because he wants profit". "He is not concerned about the interest of a domicile state or city, a strategy for the development of air transport or the overall economy. He does not care whether Montenegro will be connected, whether the number of tourists will be reduced, will it cause a chain reaction of negative effects on the entire economy. He is only interested in huge profits. He will not work with a positive zero. That is precisely why all concessionaire firstly increase fees for 100% or more, start charging a series of services to users who were free of charge until then, the incentive strategy is only in the role of higher income, and not the importance of covering flights outside the season or individual for the country of important destinations and tourist markets," Scuric warns and recommends the government in Podgorica to ask "themselves why the Western countries do not give their airports to concessions, only the Eastern ones. "

So far, the government has not given up on its intention to conclude a concession act, but due to the disagreement with SD, a modified and to some extent agreed concession act and contract, have not yet been found at the Government session.

Minister Osman Nurkovic has been repeating since mid-January that this will happen "as early as this Thursday" (the days of the government sessions). Critics of this arrangement stated that it does not meet the basic requirements under the Law on Concession, which stipulates that the contract must be bilaterally, and not trilateral as planned by MSP, introducing space for "sponsors" into the contract. It was also stated that the valuation of the property has not been carried out, but also of the business itself that the state wants to give in the concession, and that property issues have not been solved, primarily in Tivat.

Despite the deletion of the burden from part of the land of Tivat Airport, several court proceedings initiated by private owners are still ongoing.

One citizen from Krtoli, who has been in conflict with the state for years over his family's property, seized by the state without compensation, says that now they are offered twice as much as a couple of years ago - 37 cents, but that the experts during the court proceedings for such plot, next to the runway, estimated it on 109 euros.

The same amount, the interlocutor says, a few years ago the state paid to the locals whose land had been expropriated to extend the nearby Kotor crossroad.

The Ministry did not want to comment on the difference between the expert's assessment and the state's offer. It was not answered in which way and from what funds the state intends to reimburse the owners of the land it wants to give in the concession.

According to unofficial information, Nurkovic assessed the informal talks with coalition partners that this will cost the state up to 9 million euros. In the cadaster, the government still has in the registration the burden of restitution on the largest, cadastral plot of 291,848 square meters. 

Tivat municipality, which is ruled by DPS-SD-HGI coalition, previously in 2017 immediately after Prime Minister Markovic announced concessions, remained without one million square meters - its 486 thousand at the airport and another 44,700 square meters on which the municipality was co-owner with individuals. All of this was registered to the state, and the local administration of Tivat, in the meantime, did nothing to try to protect its property worth tens of millions of euros.

In the meantime, the problem was further complicated because the local administration of Tivat, according to the cadastral records, remained in the past two months without further assets - over 118,000 square meters of land, which "leans" on the fence of the current airport complex and which, according to the State study of the location of Tivat Airport, was intended for further expansion of the airport's capacity. Municipal six plots with the total area of 118,200 square meters from LN 152 KO Mrcevac were registered to the state as the owner, and the Municipality remained entitled to dispose of that property.

The heads of the Real Estate Directorate, government and local DPS officials claimed that this was legalindeed because according to the Law on State Property, the airports could be only state-owned. Although the cadaster leaders then explained that the Municipality had allegedly never been registered as the owner, this was denied by a document issued 19 years ago by the same directorate. In response to the question by delegate Petar Samardzic (SNP) on April 20^th, 2000, the then head of the Department for Cadaster of the Real Estate Directorate, Vladimir Grgurovic, said that the Municipality owned over a million square meters in this part of the country, which includes the airport with its surrounded area. 

Concessions are harmful if it is a case of strategically important airports, which airports of the capital cities, but also of large tourist resorts certainly are.

Concessions make sense in smaller airports and those that cannot be profitable, so large systems manage to make such unprofitable ports positive, by the synergy in the system of several airports, as well as by rationalizing the operations resulting from shared services and more cost-effective business based on large orders and numbers.

In Montenegro, this is not the case and it must be done very carefully, "assesses Alen Scurica, who is currently the greatest expert in the region for the analysis of profits in the civil aviation industry.

He states that ACG is a very successful company, which by many parameters is the leading operator among airport operators in the former Yugoslavia. In Tivat and Podgorica, as many as 43 carriers landed last year, and ACG had 100 flights a week to the countries in Europe and the Middle East. It is the same number of airlines and a slightly smaller number of weekly lines than at a much larger and tourist busy airport in Dubrovnik. And the other airports in the surrounding area have very low figures, he said. Thus, Tirana had 28 carriers and 79 lines, Skopje 19 carriers and 47 lines, Pristina -14 companies and 46 airlines.

Montenegrin airports have 12 companies that fly for them all year round while Dubrovnik has only 5, and they have an almost ideal - almost equal share in the total traffic between the so-called legacy, leisure and low-cost companies.

Montenegrin airports, according to the analysis by Scuric, also have some of the highest growth rates in the region and predominate in the number of newly opened lines. Thus, for the last two years, as many as 30 have been opened, while at the same time much bigger Serbia has managed to open only seven new lines.

Montenegro with ACG traffic of 2.2 million passengers and a visit of about 2 million tourists has the best ratio of 1:1 when looking at passengers and tourists, better even than the regional tourist superpower such as Croatia where it is 1:2.

According to the number of passengers at the airports compared to the number of inhabitants, Montenegro with a coefficient of 3.7 is by far the most successful in the region of the former Yugoslavia.

The text was downloaded from the Professional Journalist Association website /dpncg.me/

Text by Sinisa Lukovic, on February 23rd 2019, read more at Vijesti

28 February 2019 - "Investing in the stability and prosperity of the region is actually an investment in the security and the future of the European Union, i.e. the whole of Europe. Close cooperation is a common interest, because only in this way can we provide citizens with economic and social development and security," Chief Negotiator Aleksandar Drljević said in Budapest on the topic of European Union integration. 

The Chief Negotiator for EU of Montenegro participated in the Third Western Balkans Conference "Integration through Business", organised by the Konrad Adenauer Foundation and the Institute for Foreign Affairs and Trade. 

The region, Drljević said, does not want to remain on the margins of Europe, continuously proving that as a partner it can give a significant contribution to the stability and security of the continent through a joint struggle with the challenges of modern times, such as migrant pressures and security threats. 

Speaking at the panel "Connecting the EU and the Western Balkans - the Berlin Process and beyond", the Chief Negotiator pointed out that Montenegro continues to take steps to develop national transport and energy infrastructure and promote closer economic cooperation at the regional level, noting that well-developed and interconnected infrastructure is the driver of economic growth and opportunities for new jobs by attracting foreign investment. 

The conference was opened by Minister of Foreign Affairs and Trade of Hungary Péter Szijjártó, who said that the EU's strategic interest was to integrate the Western Balkans, stressing that this is important because of economic and security aspects. In this regard, he expressed the expectation that the enlargement policy will remain high on the EU agenda after the elections for the European Parliament and the formation of a new European Commission. 

"Hungary is committed to speeding up the enlargement process. Our interest is stronger EU, and this is possible only through the integration of the Western Balkan countries," Minister Szijjártó said. 

He added that the integration of the Western Balkan countries can contribute to the EU's competitiveness and said that Hungary will continue to invest in the region, which is Hungary's significant trade partner. 

The conference was attended by decision-makers, experts and representatives of the business community, who exchanged views on the business environment and development concepts of the Western Balkans, as well as the ways in which the European Union, Germany and Hungary can contribute to the economic development of the Region. 

It was pointed out that economic development plays an important role in the EU accession process, and that, despite its achievements, faster and stronger development of the region is needed in order to improve living standards in the Western Balkans. In this context, the support of Hungary and Germany to the economic development of the region was expressed.

Montenegrin Commercial Bank (CKB), the Montenegrin branch of OTP bank, has signed a contract for the purchase of 90.56 percent of the share capital of Société General Bank Montenegro for 40.46 million euros. "The agreed price for the purchase of 90.56 percent of the share capital of the Montenegrin subsidiary of the Société General Group amounts to EUR 40.46 million. The purchase price per share amounts to EUR 461.81," as stated by the OTP Bank.

With a market share of 11.5%, Société General Bank Montenegro is the fourth largest bank in the Montenegrin market and as a universal bank is equally active in the segment of citizens and enterprises.

"The realization of a financial transaction is expected in the coming months, depending on the required regulatory approval," the statement said.

Société General: Agreement subject to the approval of the competent banking, antimonopoly and market regulators

Société General Group signed a contract on the sale of shares of Montenegrin branch to the Montenegrin Commercial Bank (CKB), i.e. the OTP group, conditioned by the approval of the competent banking, antimonopoly and market regulators.

Société General Bank of Montenegro has announced that the closing of the transaction should take place in the coming months. "In the coming months, Société General Group and OTP Group will work together to provide the necessary approvals," the statement said.

Société General Bank Montenegro will continue to service the population and corporate clients with a high level of quality and commitment while preparing a smooth transition for clients while ensuring the stability of their relationship with the bank.

"Société General Bank Montenegro will be part of the cooperation agreement signed between Société General and OTP bank, which includes the provision of mutual services in different areas, including but not limited to investment banking, capital markets, cash and liquidity financing," as explained from the bank.

The bank concluded that Albania, Bulgaria, Croatia, Hungary, Moldova, and Serbia would soon join the agreement on these services.

Text by MINA Business, on February 28th, 2019, read more at Vijesti