QUESTIONS AND ANSWERS
1. What is your assessment of the business environment in Montenegro? Have business conditions been worsened by the unstable political situation?
- First I would like to emphasise that I am honoured to chair this Council in the name of Addiko Bank. I am of the opinion that the Foreign Investors Council is a great mechanism for improvement of the investment climate in Montenegro. The Members of the Foreign Investors Council believe that Montenegro is a good choice in terms of an investment destination that can offer something that other countries do not have. Montenegro continues to rapidly progress towards the EU and NATO which, I believe, will provide long-term stability and safety as well as significant economic benefits, along with a positive influence on the business climate. Of course, there is a lot of room for improvement of the business environment, but we are aware that this is a long-term process which requires the cooperation of all stakeholders. Considering this, the Council has clearly recognised its role and the most specific contribution is provided by publishing the "White Book" which represents a type of assessment and opinion of our Members on the overall investment climate.
2. What are the most significant business barriers that the foreign investors in Montenegro are faced with?
- What we recognise as a challenge for improvement of the investment and business climate in the long term is the improvement of the public administration, labour market and tax policy. The capacities of the public administration must be improved as well as the cooperation between the public administration units in relation to efficiency. The labour market needs to be more flexible in terms of relations between employees and employers, which, we hope, will be reached by way of changes and amendments to the Law planned for 2017. I would like to use this opportunity to announce that the new, seventh edition of the "White Book" will be published and presented to the public at the end of January 2017 and to note that the book also deals with other significant business barriers that our Members are faced with.
3. What are your recommendations to the Government for removing business barriers?
- The "White Book" contains specific recommendations for removing barriers which we have indentified to be key barriers. The recommendations are discussed within continuous communication with the Government along with agreement on next steps for their realisation. In addition, our Members are participating in various Councils created by the Government and local self-governments which deal with a variety of topics and represent a significant form of communication. This is useful, being that we, as investors, based on our daily work can identify good and bad sides of business and suggest solutions for improvement. We expect for the future period to meet the new Government and have a meeting with the prime minister.
4. Has anything been done within the past year in terms of improving the business conditions for foreign companies in Montenegro?
- We can say that the past period was a period of stability without major changes in the economic area. This stability, but also a slower pace of reforms, i.e. stagnation, was identified also by our members. Our members are of the opinion that specifically the labour market and employment, taxes/contributions and corporate management need additional improvement, while the rule of law and property development recorded positive trends. Also, in terms of sectors, the rating for tourism, energy and telecommunications is rising, while the rating for banking/finance is declining. The fact that some of the recommendations are repeated from previous publications indicate that our members still feel the deficiencies in the implementation of regulations and everyday practice.
5. How many members does the Council number currently?
- The Foreign Investors Council has 34 members and is constantly expanding. Our members are reputable and recognised companies that operate in many countries around the world. They perform a variety of business activities and it is this diversity that allows us to have insight in almost all important business sectors in Montenegro. Our members include sectors and industries such as banking, insurance, telecommunication, tourism, energy, production, construction etc. They employ around 8,000 employees and represent 30% of the national GDP. Our main role is proactive approach in establishing a more stimulating and responsive business climate in the country, but also cooperation and communication between the Council and the official authorities in Montenegro and connecting with other foreign organisations and investors in South-East Europe.
Daily Vijesti, 21 December 2017