Business news Montenegro and Albania have Strengthened Economic Cooperation and Signed Agreement on Transport Montenegro and Albania will enhance their cooperation in the sector of economy, but also in other areas, as their shared path of the EU integration is ensured by the cooperation. The two countries signed an agreement on a motorway connecting Montenegro’s town of Plav with capital city Podgorica, good portion of which goes through Albania. This project showcases good cooperation between the two states and it should be deepened through other economic projects, such as using the resources from the bordering Lake Skadar and Bojana River. The two countries should continue and enhance their cooperation, noting that both have excellent potential for tourism, in particular emphasizing the future importance of Prokletije Mountains that border the two states. Source: www.isria.com
Establishment of Payment Operations between Montenegro and Serbia The Montenegrin Prime Minister appealed to the Central Banks of Montenegro and Serbia to come up with an agreement that would enable the establishment of direct payment operations between the two countries, thus eliminating one of the biggest business obstacles. During the assembly of the Serbian-Montenegrin Business Club in Podgorica, both the Montenegrin and Serbian prime ministers invited businessmen from the two countries to help in strengthening the cooperation. The establishment of such payment operations would reduce the commission charged by banks. Source: www.balkans.com
Montenegro Receives €12 for Strengthening of Public Administration Montenegro can count EU aid worth €12 million. It has been donated by the IPA program for the strengthening of public administration and the judicial system and for supporting basic rights in 2012. The European Commission has initiated aid programs worth a total value of €1 billion; €790 million of which provides individual support to countries, while €210.5 million is intended for projects relating to cross-border cooperation. Most of the funds for individual support will be given to Turkey (€232.9 million) and Serbia (€178.5 million). Other countries that will also receive funds include: Bosnia and Herzegovina (€91.3 million), Albania (€82 million), Kosovo (€62.9 million), Croatia (€39 million), Macedonia (€28.9 million) and Iceland (€26.5 million). Source: www.balkans.com
Montenegro’s Government Adopts the PEP Montenegro’s government adopted the pre-accession economic program (PEP), a fiscal surveillance procedure. PEP aims at preparing EU candidate countries for participation in multilateral surveillance and in economic policy co-ordination procedures that are currently in place in the EU as part of the Economic and Monetary Union. The priority goal in the medium-term is to secure conditions for FDI growth. This can be achieved by upgrading the economy’s credibility on the basis of fiscal and financial stability. Montenegro’s PEP 2012-2014 expects GDP growth to be between 0.5-2% in 2012, between 1.5-3.5% in 2013 and between 3.5-4% in 2014. It is planned that public expenditure, currently at 43%, will be reduced to 38% by 2014, and that a budget surplus of 1.03% of GDP will be seen in 2014, along with a decline in the trend of public debt which is expected to reach a level of 42.9% in 2014. A less optimistic scenario envisages a small reduction in public expenditure, to 40.2% in 2014, a decline in the public finance deficit to 1.7%, and a decrease in the public debt to 47.4% in 2014. Source: www.mek. gov.me
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