Montenegro's economic crisis is not just a matter of poor policy-making; it is a symptom of a much deeper issue—the country’s entanglement with Serbia's political interests, particularly under the influence of President Aleksandar Vučić. Over the past year, the economic situation in Montenegro has sharply deteriorated due to a series of decisions that seem more aligned with external political agendas than with the needs of the Montenegrin people.
The government’s reckless salary hikes and increased borrowing have pushed the country to the brink of fiscal collapse. But perhaps more damaging are the policies that have crippled Montenegro's once-thriving tourism sector. By cutting ties with low-cost airlines, failing to maintain regular connections to major EU hubs, and neglecting to reach out to key tourist markets, the current administration has effectively turned away the very visitors that the economy relies on. The resulting plunge in tourism revenue has slashed tax income, further exacerbating the fiscal crisis.
Compounding this, Montenegro's heavy dependence on imports from Serbia has exposed the country to significant supply chain vulnerabilities. The lack of diversification in import sources has left Montenegro at the mercy of external shocks, which are particularly dangerous given the country’s use of the euro without any control over monetary policy. This has resulted in inflation rates that far outpace those of the broader Eurozone, leaving many Montenegrins struggling to afford basic necessities.
As Montenegro approaches a critical election, the opposition is presented with a pivotal opportunity to wrest the country from the grip of politicians who serve foreign interests. A robust economic program could focus on the following areas:
Fiscal Responsibility: The opposition should commit to reducing excessive government borrowing and enforcing sustainable fiscal policies. This includes downsizing the bloated government, cutting exorbitant salaries, and curbing the misuse of government resources. Strict austerity measures for officials could free up resources to support the most vulnerable citizens.
Tourism Revitalization: To reclaim Montenegro’s position as a premier tourist destination, the opposition must prioritize revitalizing the tourism sector. This can be achieved by reversing damaging policies, improving infrastructure, and launching targeted marketing campaigns. Strategic cooperation with neighboring Croatia and Albania could help attract more EU tourists, while encouraging direct foreign investment in tourism would provide a much-needed boost to budget revenues.
Economic Diversification: Montenegro must diversify its economy beyond tourism to ensure long-term stability. The opposition should promote sectors such as agriculture, renewable energy, technology, and small-scale manufacturing. Breaking Serbia’s monopoly on food imports by expanding regional supply chains is crucial to lowering prices and securing Montenegro’s economic independence.
Inflation Control: By forging stronger partnerships with EU countries, Montenegro can stabilize import costs and reduce inflationary pressures. The opposition could also advocate for the corporatization of public enterprises, ensuring they are managed by professional, non-partisan leaders, which would improve efficiency and reduce political interference.
Social Support Measures: Given the sharp rise in inflation, the opposition should propose comprehensive social safety nets to protect the most vulnerable. Ensuring that all citizens have access to basic necessities is not just a moral imperative but also a stabilizing force in turbulent economic times.
Strengthening EU Integration: Aligning Montenegro more closely with EU standards is essential for stabilizing the economy and charting a clear course for future development. The opposition’s commitment to deepening EU integration would not only bolster economic resilience but also signal a decisive break from the political influence of Serbia.
The road to recovery for Montenegro lies in reclaiming its economic sovereignty and placing the needs of its people above external political interests. The upcoming elections are a critical juncture, offering the opposition a chance to implement a vision that aligns Montenegro more closely with Europe, reduces reliance on foreign powers, and restores economic stability. This is not just a battle for economic recovery; it is a struggle for Montenegro’s political and economic independence from those who seek to control it from afar.