Montenegro 2021 by Diplomacy&Commerce magazine

Montenegro - 2021 -

MONTENEGRO & SERBIA

THE BEST THINGS ARE YET TO COME DRITAN ABAZOVIĆ

DJORDJE RADULOVIĆ

JAKOV MILATOVIĆ

Deputy Prime Minister of the Government of Montenegro

Foreign Affairs Minister

Minister of Economic Development, Government of Montenegro

AUSOLEUM M OF NJEGOŠ

The Mausoleum of Njegoš is a mausoleum interring Petar II PetrovićNjegoš located on the top of Mount Lovćen. It was built in the same location as the Njegoš Testament Church which Njegoš had built in 1845 intending to be buried there.

CERVANTES SQUARE IN ULCINJ

It is interesting to note that Ulcinj's Old Town hosted as a prisoner the famous Spanish writer Miguel de Cervantes, who later wrote the novel Don Quixote. Since the city was called Cita di Dolcinio, Cervantes named his lead female character and Don Quixote's mistress, Dulcinea, who bore the name of the city in which de Cervantes was imprisoned for 5 years. Even today, there is a square in Ulcinj where slaves were sold. It is called Slave Square or Cervantes Square.

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MONTENEGRO 2021

S MOKED, DRIED MEAT

ROMAN MOSAICS IN RISAN

This famous landmark, which is now the oldest architectural monument in Montenegro, is about two thousand years old. Currently, the museum is the foundation of the ancient Roman villa Urbana with different mosaic patterns on the floors in each room and an atrium in the middle. The mosaics are made of three types of gravel - white (local), grey-blue and black (imported), which have a square shape.

Many smoked meats from Montenegro are considered a cultural heritage and are protected by the state. The reason for this is that despite the similar processing and the type of meat used in other Balkan countries, Montenegrin cured meat delicacies have far higher quality and fuller taste, which transcended state borders.

PERAST

The first memories of Perast date back to 1336, at that time a small fishing village. Since one of the best maritime schools was located in Perast, King Peter I was sent here from Russia to train with the extraordinary captain Marko Martinović. Over the centuries, 20 palaces were built in Baroque style here, as well as 17 Catholic and two Orthodox churches.

ADA BOJANA

Ada Bojana is an island created by a river delta of the Bojana River. Legend says it was formed by gathering river sand around a ship sunk at the mouth of the Bojana River, but it is more likely to be a delta in formation. This is a popular tourist destination, which offers kitesurfing and windsurfing locations on the Adriatic Coast due to the strong cross onshore winds during summer afternoons.

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The Montenegrin folk costume is today part of the cultural heritage, and it used to be an important part of Montenegrin life and a status symbol in society. The costumes were a feature of certain areas, so it was possible to conclude where a person comes from just judging by the appearance of their folk costume. The material the costume was made of and its cut said a lot about a person. The most common materials used were wool, sackcloth, hemp, flax and beetle, while silk was used in smaller quantities.

MONTENEGRO 2021

MONTENEGRIN FOLK COSTUME

Montenegro 2021

TANJA BANKOVIĆ Editor in Chief tanja.bankovic@color.rs

ILIJA PETROVIĆ INDIGOCHILD Art director indigochild.ilija@gmail.com

NATAŠA NEŠIĆ Advertising director natasa.nesic@color.rs

JOVANA MARKOVIĆ Advertising manager jovana.markovic@color.rs

JELENA RANDJELOVIĆ Advertising manager jelena.randjelovic@color.rs

DRAGANA RADOVIĆ Advertising manager dragana.radovic@color.rs

I AM SURE THAT THE BEST OUR PRIORITY IS A STABLE 08 THINGS ARE YET TO COME FOR 24 FINANCIAL SYSTEM MONTENEGRO Dritan Abazović

Deputy Prime Minister of the Government of Montenegro

Magazine director ruza.ristanovic@color.rs

ROBERT ČOBAN Director robert.coban@color.rs

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MONTENEGRO 2021

Photos

GORAN ZLATKOVIĆ GETTY IMAGES Translation

SNEŽANA BJELOTOMIĆ Print

ZLATNA KNJIGA Jagodina, Bagrdanski put bb

PhD, Governor of the Central Bank of Montenegro (CBM)

MONTENEGRO'S MEMBERSHIP 26 12 IN THE EU IS THE ULTIMATE FOREIGN POLICY GOAL

CHALLENGE AS A PATH TO SUCCESS

Pál Kovács

Djordje Radulović RUŽA VELJOVIĆ

Radoje Žugić

Foreign Affairs Minister

DIVERSIFICATION IS 16 ECONOMIC OUR IMPERATIVE Jakov Milatović

Minister of Economic Development, Government of Montenegro

GREAT SUPPORT FOR MONTENEGRO

H.E. Oana-Cristina Popa

Head of Delegation of the European Union to Montenegro

A NEW MODEL OF THE 20 MONTENEGRIN ECONOMY ENCOURAGING INNOVATION AND SUSTAINABLE AGRICULTURE Vlastimir Golubović

President of the Chamber of Commerce of Montenegro

CEO, Crnogorska Komercijalna Banka AD Podgorica, member of OTP Group

OF BETTER BUSINESS 28 CREATION ENVIRONMENT CONDITIONS Christoph Schön

MFIC President, Podgorica

WE PROVIDE SUPERIOR LOGISTICS SERVICES

Milenko Popović

CEO Montenomaks C&L

GEBRÜDER WEISS 34 MONTENEGRO: RELIABILITY, TRANSPARENCY, EFFICIENCY Savo Ičević

Country Manager, Gebrüder Weiss Montenegro

A MODERATE RISE IN INFLATION IS EXPECTED

Economy

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by Žikica Milošević

I AM SURE THAT THE BEST THINGS ARE YET TO COME FOR MONTENEGRO DRITAN ABAZOVIĆ

Deputy Prime Minister of the Government of Montenegro

I would like the concept of civic, cosmopolitan and European vision of the region to spread to other countries

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MONTENEGRO 2021

I am not sure that I can compare myself with Zoran Djindjić. He was a great European politician and a man who definitely left a deep trace in the transformation of the entire region. I am very sorry that everything ended the way it ended, but I am humble and I think I am far from such a format of a politician. On the other hand, I think I have given significant impetus to Montenegro's reform trail. I see it as my personal and professional obligation, as a promise given to citizens. I was not overly excited when I became popu-

e spoke with Dritan Abazovic, Deputy PM of Montenegro, on the eve of the 200th day since the new Montenegrin government was appointed. He talks for Diplomacy&Commerce magazine about the vision of Montenegro as a modern European country, devoid of crime and corruption, in which cooperation between different national, religious and political communities is possible. "In the end, everything depends on the peo-

ple, their good will, energy and the ability to find a compromise for certain things in a political environment," says Mr. Abazović. In the post-Zoran Djindjić-period, politicians who were considered "a rising star", like you, who gained such prominence on social media were few and far between. How did you convert this sudden "popularity" into political "momentum", i.e. momentum for reform?

IN THE NEXT 15 YEARS, MONTENEGRO SHOULD SET AN EXAMPLE OF A GOOD, WELLORGANIZED EUROPEAN COUNTRY WITH GREAT OPPORTUNITIES

lar, nor hesitant when, after a certain period, I was severely criticized. One should follow one's path. I am 100% sure of the correctness of my views and I would like the concept of civic, cosmopolitan and European vision of the region to spread to other countries, not only in Montenegro. Still, it needs to be given some impetus. If I contributed even a little to that, I am happy, and if I did not, that means that we should all work even harder and better together. I’m confident that the best things are yet to come. After the election, many smaller political parties, as well as the former ruling party, thought that the URA and yourself could be the decisive factor that would „add grist to their mill“ so to speak, but it seems that they did not understand you the best, nor the URA. The word „URA“ in Albanian means "a bridge" and fittingly, you have decided to stay committed to the idea of building bridges. To what extent and how do you manage to explain your position and implement your programme today?

How difficult is it to, figuratively speaking, "drain the swamp" in Montenegrin politics after 30+ years of one party's rule? This is not a swamp, but more like a bigger lake or the sea. As hard as it is, it

MONTENEGRO WANTS THE BEST POSSIBLE COOPERATION WITH THE REPUBLIC OF SERBIA AND WE DO NOT HAVE A NEIGHBOUR WHO IS CLOSER TO US IN ANY SEGMENT

How would you rate the relations be-

Regardless of certain daily political squabbles, which aim is to promote certain political subjects backed up by a political agenda that is different to our state’s agenda, I would still rate them as correct and good. I don’t think what’s happening right now will cast a shadow over our relations. I think they should be elevated on a different level, not the political one but rather the state one, and that means that we should not be hostages of political subjects, but rather ‘hostages’ of the national interests of the two countries. Montenegro wants the best possible cooperation with the Republic of Serbia and we do not have a neighbour who is closer to us in any segment. we want the good neighbor policy and to affirm to the maximum that all possible doubts are overcome in one dialogue. I am ready to personally contribute to that and once again, I would like to convey a message to the officials of the Republic of Serbia that the Government of Montenegro is their friend in terms of protection, promotion and the best interests of both countries. Montenegro is facing difficult economic indicators - the decline in 2020 was 10%. How hard is it to get the economy back on its feet at the most disagreeable moment for a new government? The current situation is difficult. We lost last tourist season due to the COVID-19 pandemic, and regardless of that, the economic parameters were quite bad. I hope that this is a year of recovery and that 2022 will be a year of complete normalization. I expect that this tourist season will exceed all optimistic expectations. In this regard, I would like to invite all citizens of the region to spend their summer vacation in Montenegro. Montenegro is a country of great opportunities and huge untapped potential. We are obligated to utilize that potential in the coming period. I feel so many good vibes around Montenegro, so much investment potential, so many people and serious companies

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is a job that must be done. We started something. A good foundation has to be laid because if we do that, the current period will not last too long. If we are prone to making certain compromises and being unprincipled, then we will achieve nothing. I believe that if we are determined, as we were to change the government and pave the way for Montenegro's reform path, we will succeed. It does not matter at all how big ‘the sea’ is and how much distance we have to swim, but if you have enough desire, will, knowledge and are solidly prepared for it, then I think it is not impossible to win in the end. We proved exactly that in very difficult conditions. Now, all that remains is to validate that we have not wavered and that the same zeal, desire and will still exist.

tween Montenegro and Serbia, and how big is the potential for progress?

MONTENEGRO 2021

I am extremely pleased with our achievement on 30th August. Few people believed that such a regime could be defeated in Montenegro. I was the one who believed in it from the beginning, from the day I entered politics. „URA“ in Albanian indeed means „a bridge“, but the URA, regardless of what it means in any language, has demonstrated that it can be a bridge and perceive politics differently compared to the previous view of the political scene in the Balkans. The goal is to do those things that are crucial to breaking down barriers in our heads that are artificially set up. The notion that cooperation between different national, religious and political communities is not possible is completely incorrect. It is all an artificial creation. In the end, everything depends on the people, their good will, energy and the ability to find a compromise for certain things in a political environment. I think we have proven that we can do it and we have done it appropriately. I am glad that all other political subjects followed our idea and vi-

sion and that we did not have to adjust to anyone. This is also something that remains a great pledge for the future. Of course, we now face other challenges. There is still a lot of work ahead of the Government of Montenegro, but I am sure that the URA has planted the seed from which a more beautiful and progressive future of all peoples living here should sprout.

that would like to do fair business in Montenegro. The most important thing in that sense is to establish a system that will be able to absorb them in the right way and make those projects feasible in our society. That would translate into an overall recovery. Yes, the decline was steep, but Montenegro has the opportunity to rise like a phoenix from the ashes and to turn the curve in a positive direction in a short period. You have become a symbol of the fight against organized crime. This ’disease’ is endemic for the region, and Serbia, Albania, Bulgaria, Kosovo... How difficult is it to "pull out that weed" that poisons both society and the economy? My primary task in political engagement as the Deputy PM is to fight organized crime and corruption. I am satisfied with the results we have achieved in the first 200 days of our government and I think there are no more indifferent people when it comes to starting to fight against organized crime. Of course, the results must and should be much better and more visible, but it is impossible to do that without the results of other institutions. Here, I am referring primarily to the State Prosecutor's Office, and especially to the Special Prosecutor's Office, as well as all other services in the security sector. No one has fought organized crime alone, nor has any country reduced it to zero, but our ambition is that Montenegro will never again be recognized as a country where criminals are welcome and where they can

carry out business activities without any restrictions. I think that image is already changing. We have decimated one of the most important and strongest criminal clans in Europe. We are on our way to do the same with some other criminal organizations. It will take a lot of energy, knowledge and courage to get the job done. However, this is our obligation and I would be very disappointed at the end of this endeavour if I had to admit that we failed to do it. I am confident that we will achieve this and I call

THE SOONER WE FULFIL OUR OBLIGATIONS, THE SOONER WE WILL PROBABLY JOIN THE CLUB OF DEMOCRATIC STATES, TO WHICH WE ASPIRE on all other social factors, in the country and the region, to help us with this fight. If this is not a joint action of the countries of the region, Europol and other institutions in the security sector, I think we can hardly accomplish significant results. Transnational crime is often better coordinated than states and governments. However, no one is stronger than the state and the most important thing is to express the unwavering political will to be the ones who stand out in that fight. The only thing that currently exists is a feeling of loneliness because I don't see that

everyone is ready to sacrifice in that direction. I guess that will come with time. I hope that my colleagues will, at some point, accept this as the biggest problem of our overall development, and not certain topics that are artificially imposed on our society, which have nothing to do with the standard of living or societal progress. What does the Government intend to do in the next period in terms of reforms, economic growth and Montenegro's accession to the EU? Our most significant reforms pertain to EU accession and Chapters 23 and 24, i.e. the rule of law and the fight against corruption and organized crime. In the process of economic reforms, we must go towards the process of liberalization and the possibility of doing business in Montenegro, breaking down all the barriers that now exist, and choosing priority projects of national importance. Montenegro has several outstanding sites and several segments to which it can contribute. I think that energy, in addition to tourism, can become a significant industry. So far, agriculture has been an untapped branch, so there are several areas in which we should act and by doing so, move along our European path. I expect that all ministries, services and agencies will be fully committed to fulfilling the European agenda. That is our most important foreign policy priority. The sooner we fulfil our obligations, the sooner we will probably join the club of democratic states, to which we aspire. 

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MONTENEGRO 2021

15 YEARS OF INDEPENDENCE

Montenegro celebrates 15 years of independence. Where do you see Montenegro in the next 15 years? - I think haven't been making any progress in the past 15 years. We had some progressive things that are not negligible, we joined a number of international organizations and we somehow consolidated the state, which is good. However, for the next 15 years, we should entertain a dynamic that is completely the opposite. In the next 15 years, we need to pave the way for Montenegro to be an example of a good and well-organized European country with a high standard of living, environmentally friendly and bursting with great opportunities. I believe that, in 15 years, Montenegro will be a global hit. If we have a common-sense policy, which will make good use of its potentials, I believe that a fifteen-year period will be enough, not only to become a European hit, but also a global one, with people eager to live, work or spend their free time here.

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MONTENEGRO'S MEMBERSHIP IN THE EU IS THE ULTIMATE FOREIGN POLICY GOAL DJORDJE RADULOVIĆ Foreign Affairs Minister

The unity of the Western Balkan countries around the idea of a common European future is the key to lasting stability and prosperity, reconciliation and good neighbourly relations in our region strengthen the ties between two countries, attract investments and initiate important projects. One of the Ministry of Foreign Affairs' priorities is the professionalization and education of diplomatic staff, through cooperation with diplomatic academies and referential institutions in the international relations segment, all to improve the base of career diplomats, who would represent their country at the expert level. The new government is ready to intensify contacts with the EU and make concrete progress in Chapters 23 and 24 so that we can start closing the re-

ne of the key postulates of our foreign policy is to promote regional cooperation and nurture good neighbourly relations. We are ready to build constructive relations with our closest neighbours, especially bearing in mind the fact that we belong to a common socio-historical milieu. EU membership is the main priority of this Government because Montenegrin society shares European values.

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MONTENEGRO 2021

What are the priorities on your Ministry's agenda and the Government

of Montenegro's agenda this year? In addition to dedicated and continuous work on the implementation of foreign policy priorities, we plan to expand the diplomatic and consular network, primarily by opening embassies in The Hague and Copenhagen, considering that the Netherlands is one of the most demanding EU members in terms of the enlargement policy. A lot of our people live in Scandinavia, so having a resident office in Denmark would be important for covering that region. We also plan to open an embassy in Israel, an opportunity that would

THE INVITATION WE SENT TO PRIME MINISTER ANA BRNABIĆ AND MINISTER SELAKOVIĆ TO VISIT MONTENEGRO IS STILL ON THE TABLE maining chapters. Although we have been negotiating in the old way for eight years, Montenegro accepted the new methodology, to show that it belongs to the West politically and value-wise, and to show that EU membership is our ultimate foreign policy

goal. I am confident that the Union will know how to value our efforts, bearing in mind that its top officials have repeatedly highlighted that they view the Western Balkans as an integral part of the EU, as evidenced by the fact that 9 billion euro have been allocated for infrastructure projects through the Economic and Investment Plan to the region. Also, when it comes to the COVID-19-induced crisis, EU assistance is much greater than any other partner has provided and offered to the region. At the multilateral level, Montenegro chaired the Central European Initiative (CEI) for the second consecutive time, which was an additional opportunity for the international promotion of the country by initiating regional activities aimed at strengthening regional cooperation and promoting development, which showed that we are a credible actor in the region. Montenegro is the only country among the EU candidates that has already opened all negotiating chapters. When do you expect to join the EU?

A RECENT PUBLIC OPINION POLL SHOWED THAT ALMOST 80% OF CITIZENS SUPPORT MONTENEGRO'S MEMBERSHIP IN THE EU European partners. At the same time, we must keep in mind that EU accession is a two-way process, and we will try to do our best to complete the accession negotiations as soon as possible, confident that our results will be verified by the dynamics we achieve. You recently went to Greece and on that occasion underlined the importance of NATO membership. What does this mean for Montenegro, and what for stability in the region?

What other reforms need to be implemented to improve the business environment in the country and make it more attractive to investors? The key areas in which we need to implement reforms recognized by both the Government of Montenegro and the community of foreign investors in Montenegro are human capital, shadow market, rule of law and digitalization of public services. Through the work of a working group coordinated by the Secretariat of the Competitiveness Council, a fee register has been created which will contribute to legal certainty. Investors have recommended that it should be prescribed that no levy not mentioned in the register can be collected in Montenegro. The adoption and implementation of the Law on Fiscalization in Trading in Goods and Services, to introduce an electronic fiscalization system for real-time data transfer from the company's terminal to the tax administration, is one of the key steps in combating unfair competition in the economy. In terms of the digitalization of public administration, we need to fully establish and integrate the systems that are a prerequisite for the development of e-services. The main purpose of e-government development is to eliminate administrative barriers, save citizens time and make the whole process of providing services simple and efficient. Education reforms are also needed, especially at the level of secondary and higher education, but also the implementation of retraining measures in order to acquire competencies in deficit occupations. Key reforms must be implemented in the area of rule of law, through the eradication of corruption, having greater efficiency of public administration, improving the public procurement system, encouraging greater

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Immediately after the restoration of independence in 2006, Montenegro clearly committed itself to NATO and EU integration and defined it as its strategic commitment. This remains the main guideline when it comes to foreign policy. Montenegro recently marked four years of its NATO membership. We are proud to be part of the Alliance of the Most Advanced Democracies and to be in a position to participate on an equal footing with it in decision-making important to our collective security. When it comes to the region, I would first like to underline my satisfaction that North Macedonia joined the Alliance last year. This means that now, we have a "club" of five surrounding NATO member states, which is undoubtedly a great advantage for the

stability of the entire region. That is why I am convinced that it is necessary and mutually beneficial, both for the region and for Europe, for NATO and the EU to be joint, actively engaged in strengthening democratic, reform processes to finally and fully realize its European perspective.

MONTENEGRO 2021

"Quality before speed" is our motto, and it is very difficult to bid with deadlines. Our task is to continuously adopt European standards and resolutely pursue reforms. As I have already stated, Montenegro has accepted the new methodology of negotiations, because it wants to enter the EU as an equal and ready partner, putting the quality of the reforms it is implementing in the foreground. We consider it extremely important that the document on the new methodology recognizes the strongly political character of the negotiation process and the importance of stronger political and leadership orientation, through dynamizing dialogue at the highest levels, more frequent and regular EU-Western Balkan Summits, intergovernmental conferences and contacts. We also welcome the approach in which the rule of law retains a central role in the process of approaching the Union, aware that building a modern and economically prosperous society goes hand in hand with democratic development. In the forthcoming

period, the absolute priority will be to build a stable system of the rule of law, in which citizens will have a sense of full legal security and be able to enjoy human rights and freedoms without hindrance. We are aware of the many challenges that lie ahead and we will strive to address them in cooperation and a constructive relationship with all actors in society and of course, with our

public participation in the fight against corruption, boosting transparency, ensuring indiscriminate treatment and judicial efficiency. Montenegro is celebrating 15 years of independence this year. Where do you see Montenegro in the future? In 15 years, I see Montenegro and the entire region as part of the European family, because the European Union is not complete without the Western Balkans. We know that numerous challenges await us along the way, like the implementation of radical reforms in certain areas, but without that, we cannot build a functional state with strong institutions. We all must be aware of the importance of peace and stability in the WB so that we can dedicate ourselves to the economic recovery and progress of the region and to reach the European standard of living step by step. A recent public opinion poll showed that almost 80% of citizens support Montenegro's membership in the EU. The record-breaking level of public support for Montenegro's integration into the EU clearly shows that citizens see themselves in the Union and recognize and appreciate the support provided by the EU to the countries of the Western Balkans during the pandemic.

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MONTENEGRO 2021

Is an official visit to Serbia planned for the next period?

Regional cooperation is our government's priority and we want the best possible relations with all neighbours, especially with Serbia, with which we are historically connected. Serbia and Montenegro were and remain the closest neighbours and friends. I am sure that this is something that both coun-

MONTENEGRO ACCEPTED THE NEW METHODOLOGY, TO SHOW THAT IT BELONGS TO THE WEST POLITICALLY AND VALUEWISE tries are ready to prove, as a rule in difficult times, and this is evidenced by Belgrade's help in the vaccination process, for which we are very grateful. Numerous working visits of our officials in the past period also speak of good intentions, during which the mo-

dalities of improving inter-ministerial cooperation between the two countries were discussed. Also, we believe that it is time to raise cooperation to a higher (political) level and I expect that this will happen very soon in the coming period. In that regard, we recognize the importance of restarting relations with the Republic of Serbia, in a way that we will look to the future instead of the past, which is what I told my colleague Nikola Selaković at the very beginning of his term. The invitation we sent to Prime Minister Ana Brnabić and Minister Selaković to visit Montenegro is still on the table. I expect that as two equal, independent and sovereign states, which resolve their differences in the spirit of friendship and good will, we will finally realize that. 

THE IMPORTANCE OF REGIONAL COOPERATION What does further regionalization of the WB bring, as well as the initiatives like Mini Schengen? - Regional cooperation remains high on the list of our foreign policy priorities, and at the moment, our country participates in the work of more than 30 regional initiatives. It is important not to duplicate the processes, and this is very important to clarify when we talk about Mini Schengen. Regarding the aforementioned duplication, it would happen because of the Berlin

Process, an initiative that was launched in 2014 with the idea of infrastructural integration of the region. Today, thanks to the Berlin Process, we have achieved numerous results in various segments. An Action Plan for the Common Regional Market was prepared last autumn, which includes several activities to boost economic ties and cooperation. Mini Schengen provides a lower level of cooperation and integration, which is why we estimated that Montenegro simply does not need it at this stage.

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ECONOMIC DIVERSIFICATION IS OUR IMPERATIVE JAKOV MILATOVIĆ

Minister of Economic Development, Government of Montenegro

The government is committed to improving cooperation with EU countries, but also countries in the region, which is a good way to prepare for EU membership. It is essential to raise awareness in Montenegro, and the region as well, of the opportunities offered by closer integration and reforms he turning point in Montenegro’s history, both politically- and democratically-wise, happened on 4th December 2020. The period of monopoly was left behind us, and with the arrival of the new government came new energy, with knowledgeable, enthusiastic and wishing to create prerequisites for a better future for the Montenegrin citizens. I am satisfied with the cooperation between our two countries, but it can always improve and I think that even more attention should be paid to economic cooperation in mutual interest.”

“T

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MONTENEGRO 2021

What will be the most important segments that the new Government will focus on? Are they European integrations, boosting regional cooperation or maybe the economy?

We are aware that EU and NATO integrations are also a powerful driving force behind reforms, economic prosperity and the rule of law. I believe that Montenegro will remain a loyal and committed ally of NATO and that it will fulfil the obligations assumed by this membership. Montenegro's main foreign policy goal is to continue the EU accession process and ultimately become an EU member. The key to strengthening the economy and achieving a high standard that facilitates investments, economic growth and job creation lies in aligning with EU policies, so it is clear that the European vision of development

has no alternative. The government is committed and doing everything with special care in order to expedite

SERBIA IS TRADITIONALLY OUR IMPORTANT EXTERNAL TRADE PARTNER, AND THE COMMON HISTORY IS SOMETHING THAT ADDITIONALLY CONNECTS US

the negotiations with the EU. The survey conducted last year is even more encouraging, showing that 77.6% of Montenegrin citizens have a positive attitude towards the EU, compared to 66.1% in December 2019. With so much support from the citizens and the right path chosen by the Montenegrin government with Prime Minister Krivokapić at its helm, which is being committed to the integration process, I have no doubt that we will significantly contribute to the process of becoming a full-fledged member of the European family. What was the goal of your recent vis-

it to several countries in the region, including Serbia, where you spoke with their respective officials? In the past few months, I have been on official visits to Bosnia and Herzegovina, Croatia, Serbia and Slovenia. In a little over a month and a half, I stayed in Serbia twice, where in late April, I met with the Minister of Economy of Serbia, the President of the Chamber of Commerce, and at the beginning of June, with the Minister of Trade. One of the goals we want to accomplish is to boost and improve bilateral relations between Montenegro and its neighbours, which may not have been at an enviable level lately. The visits were organized to get to know these countries’ leaders in person and discuss further forms of cooperation in more detail. In our talks, we also focused on the economic recovery plans of the countries after the pandemic. I think it is very important that in these challenging times we rely on each other and help the economy recover as much as we can. In this regard, and to the mutual satisfaction and benefit, Montenegro will be open to all tourists this year, and we have prepared special benefits for guests from the region. How would you rate the overall economic cooperation between Serbia and Montenegro today?

THIS YEAR, WE ARE FOCUSING ON OUR TRADITIONAL EMITTING MARKETS - THE REGION AND RUSSIA, BUT ALSO ON TOURISTS FROM WESTERN EUROPEAN COUNTRIES Which segments Montenegro needs to work on in the coming period in order to join the EU as soon as possible?

The Covid-19-induced crisis has caused a decline in economic activity. What measures are planned when it comes to boosting the economy? What are both the Government’s and Ministry’s plans? Unfortunately, that's right. The coronavirus pandemic has exposed all the shortcomings of the Montenegrin economy, which last year recorded a dramatic decline of as much as 15.2%. The main causes of this decline are primarily travelling bans, a sharp decline in the tourism industry, a decline in domestic and foreign consumption and restrictions on imports and exports of goods and services. However, another important reason that contributed to the obvious decline is the wrong crisis management or bad border management policy. I can say with certainty that no expert analysis or simulation could point to the structural vulnerabilities and shortcomings of our economy as precisely and unequivocally as this crisis has done. On the other hand, this is a good starting point for us in terms of the information needed to take further steps when it comes to advancing the economy of Montenegro. Economic diversification is imperative for our further development. We will focus on the processing industry, the development of crafts and the green economy, which includes energy efficiency, the use of renewable sources, sustainable development and a healthy environment with developed agriculture and tourism. We will encourage the introduction and use of the principle of circular economy, which integrates the economy and the waste management system. Promoting innovations and supporting innovative activities, through the establishment of the Innovation

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Our government’s four key priorities are defined in line with the priorities of the European Commission (“The European Green Deal”, “The Europe Fit for the Digital Age”, “An Economy that Works for People”, “A Stronger Europe in the World”, “Promoting our European Way of Life” and “A New Push for European democracy”) and we are determined to achieve synergies and full coherence between domestic and EU policies. The Ministry of Economic Development (MED) is in charge of almost a third of the negotiating chapters (9 negotiating chapters are under the Ministry’s direct jurisdiction while 2 are also largely under its jurisdiction). In addition to the adoption of the normative framework, the focus will be on implementing and creating a good and stable economic space following EU standards.

In the forthcoming period, our goal is to intensify activities on fulfilling obligations from the European agenda, to achieve more visible progress in the negotiations and meet the conditions for closing some of the most advanced chapters: 6 – Company Law, 7 - Intellectual Property Law and 20 – Enterprise and Industrial Policy, for which is the MED is largely competent.

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We want to nurture a friendly relationship in which European values are the common denominator. I believe that activities should be intensified in order to provide an additional stimulus to economic cooperation between the two countries. Serbia is our main partner in both exports and imports, while Montenegro is among Serbia's most important partners in terms of exports of its products. We cooperate mostly in trade and tourism, and while telecommunications cooperation is also important to us. What makes us all very happy is that roaming charges will be abolished on July 1 for the citizens of our countries, i.e. all Western Balkan countries. As far as cooperation in tourism is concerned, there is a great potential for a

joint appearance on distant, so-called third markets in different economic sectors. Our new national airliner, Air Montenegro, which will soon have five daily flights to Belgrade - three from Tivat and two from Podgorica – has been recently launched. Shortly, the Joint Commission for Economic Cooperation between Serbia and Montenegro will meet in Podgorica, during which the Business People Forum will be agreed upon. I think that the economic cooperation between Serbia and Montenegro is on an upward path.

Fund, is also one of the important activities on the Government's agenda. The goal of the reform of the Investment and Development Fund, which is underway, is to allocate funds more efficiently and focus more on the sector of small and medium-sized enterprises, which make up 98.5% of the total number of companies and employ 53.5% of the workforce in Montenegro. What are your expectations when it comes to the recovery of the Montenegrin economy and the tourism sector this year? Our plan for economic recovery will take several important directions. These are - the fight against the shadow economy, the reform of state-owned enterprises, and reforming the National Employment Bureau, as one of the priorities. Through the adoption of measures to support citizens and the economy during the first two quarters of this year, the Government did a lot to create conditions for a successful tourist season, which is one of the priority goals for this year. We are especially pleased with the fact that a total of 29 airlines are flying in 2021, of which seven companies are flying to Montenegro for the first time. Unlike the previous government, we opted for an open border policy. In early spring, we opened the borders to the countries of the region and for some time, have lifted entry restrictions for the citizens of Russia, Ukraine and Belarus, as well as the EU coun-

tries, Israel, Moldova and North Macedonia. We believe that this direction in border management is very important, especially in the context of tourism recovery. There are currently about 58,000 tourists in our country, 80% compared to the same period in 2019. The current epidemiological situation in our country is excellent and it is realistic to say that in early July, when the EU updates the "green list", Montenegro will be on

WITH THE REGIONAL SYNERGY, WE CAN BUILD A SAFE AND RELIABLE MARKET THAT WILL HAVE AN IMPACT ON THE GROWTH OF THE WESTERN BALKAN ECONOMY it. Bearing in mind that mass vaccination in Montenegro began in early May, we can boast that at this time, 32% of the adult population has been vaccinated with the first dose, and 27% has been re-vaccinated. All this indicates good prospects for a successful tourist season and the possibility of generating income from tourism at between 60-65% level from 2019. I think that this percentage is quite realistic and achievable and that

our projections will come true. We are further encouraged by the forecasts made by the World Bank in its latest report, which upped the forecast for the growth of the Montenegrin economy this year to 7.1%, which indicates that we are well on our way to economic recovery. Will further regionalization and joint initiatives of the Western Balkan countries contribute to the overall development of both the region and the countries individually? The Government of Montenegro strongly supports the idea of the economic integration of the region and wants the Montenegrin economy, together with the economies of the region, to achieve maximum benefits through the implementation of activities envisaged by the trade part of the Action Plan for the Common Regional Market 2021-2024. The Chamber Investment Forum of the Western Balkan Six will facilitate mutual contacts and promote the region as a single investment destination, representing over 350,000 companies, and create new opportunities for stronger connections between the region's business communities. By creating a single market, the WB will become more competitive on the international scene and more attractive as a destination for foreign investments, which will further strengthen not only the region but also the economy of each country individually. 

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MEETINGS IN REGION

You also met with the president of the Chamber of Commerce and Industry of Serbia (CCIS). What sectors have the potential for improving economic cooperation between the two countries? - The importance of connecting the economies of our two countries was highlighted at the meeting, as well as the commitment of the Government of Montenegro to boosting regional cooperation. I believe that the relocation of the Office of the Regional Chamber of Commerce from Trieste to Podgorica will be an additional impetus for the overall cooperation of the Region. Strengthening economic ties, economic

development and improving the business environment, as well as joint investments in capital projects, are the basis for building up cooperation between our two friendly and fraternal countries. During the meeting, an important topic of the joint border crossing was also talked about, where one of the CCIS’ urgent initiatives will be to support both our countries in establishing a joint border crossing that will facilitate entry of both passengers and goods. During the meeting, the potentials of the Port of Bar were also discussed, which I believe is an untapped resource that should be used much more meaningfully.

OPINION

GREAT SUPPORT FOR MONTENEGRO H.E. OANA-CRISTINA POPA

Head of Delegation of the European Union to Montenegro

While the EU is itself heavily affected by the pandemic, it has spared no time and effort to provide essential and unparalleled support to the Western Balkans

we are funding in our member states, which are infrastructure, digital transformation and green economy. In that way, Montenegro and the region are already receiving the same treatment as if they were part of the EU. I hope that Montenegro will make good use

EU IS FUNDING THE SAME TYPE OF PROJECTS IN THE REGION THAT WE ARE FUNDING IN OUR MEMBER STATES

of these funds to drive its reforms towards a modern, greener and more prosperous economy. However, the unprecedented health and economic crisis showed us the importance of focusing on what unites us, rather than what divides us. In order to mitigate the human and economic impact of the crisis and move forward on its EU path, Montenegro needs to find a broad political and societal support beyond party lines and other differences for the necessary reforms in key areas. Those include in particular, but not exclusively, the effective functioning of the judiciary, fight against corruption and safeguarding freedom of expression. 

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Focus

U citizens showed great support for their fellow Europeans in Montenegro and proving that solidarity is truly a core European value. Since the outbreak of the COVID-19 epidemic, the European Union allocated to Montenegro more than €55 million in non-repayable assistance and €60 million in highly favourable loans to help the sectors and individuals most affected by the crisis. Part of the non-repayable assistance has already been used to buy vital medical appliances for Montenegrin health institutions and the much-needed protective equipment for health workers. Some of the assistance will be used to build two new clinics, for infectious diseases and for dermato-venerology, set up a modern medical laboratory and improve testing capabilities for COVID-19. The remaining amount has been allocated to support the national budget in order to sustain the stability of the national economy, preserve vulnerable social groups’ access to basic social care and help access to economic relief for vulnerable businesses. In addition, the Economic and Investment Plan offers to Montenegro and other Western Balkan countries a huge financial support of up to €9 billion, with a potential of mobilising investments of up to €20 billion in the region in the next decade. It is important to say that the EU is funding the same type of projects in the region that

INTERVIEW

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A NEW MODEL OF THE MONTENEGRIN ECONOMY ENCOURAGING INNOVATION AND SUSTAINABLE AGRICULTURE VLASTIMIR GOLUBOVIĆ

President of the Chamber of Commerce of Montenegro

The direction of diversification of the economic structure should be focused on the application of information technologies and smart specialization he global crisis, caused by the COVID-19 pandemic, has created market disruptions and a slowdown of the global economy. Countries around the world have been affected by the crisis, and especially service-oriented economies, such as Montenegro’s. In the period behind us, the Chamber of Commerce of Montenegro has actively contributed to the preservation of the economic substance and the elimination of the challenges faced by the business community due to the COVID-19 pandemic. We talked about the economic situation in Montenegro and the Chamber’s activities with its President, Vlastimir Golubović.

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What is your assessment of the current economic situation in Montenegro, considering the consequences caused by the coronavirus pandemic?

In the years before the pandemic, Montenegro was on the road to dynamic economic and overall development. The closure of borders to combat the spread of the coronavirus, and the suspension and restriction of work, have directly and indirectly affected all sectors of the economy and caused a significant decline in economic activity, especially in tourism and transport. This is seen in the fact that, in 2020, the

Montenegrin GDP declined by 15.2%. In the previous year, the pandemic caused a 5.6% drop in Montenegrin household consumption, the largest drop since the global financial crisis in 2009. Increased economic uncertainty has also slowed down or delayed investment activity. Foreign direct investments in 2020 dropped by 14.8%, while net investments grew by 53.2% due to a smaller outflow of funds from Montenegro. Negative trends were recorded in tourism - a decrease in the number of tourists (-83.2%), i.e. overnight stays (-82.1%), followed by construction (-5.6%), retail trade (-16.8%), and in all modes of transport. These trends caused the decline in revenue, which was the largest in tourism, as much as 86.8%. The crisis caused by the coronavirus pandemic highlighted the pronounced vulnerability of the Montenegrin economy, due to its strong dependence on the service sector. The key measures are aimed at diversifying the economic structure. The direction of diversification of the economic structure should be focused on the application of information technologies and smart specialization. The pandemic has also demonstrated the importance of intensifying the valorisation of resources and potentials in the energy, agriculture, forestry and fisheries sectors, which would lead to higher employment and reduce import dependence. The previous year was challenging for everyone. How did the Chamber support its members during the pandemic?

IN THE PREVIOUS YEAR, THE PANDEMIC CAUSED A 5.6% DROP IN MONTENEGRIN HOUSEHOLD CONSUMPTION, THE LARGEST DROP SINCE THE GLOBAL FINANCIAL CRISIS IN 2009 system that allowed the uninterrupted 24-four-hour flow of goods at certain border crossings, giving priority to basic groceries, equipment and protective equipment. In cooperation with the regional chambers, we have prepared a proposal of measures for drivers of vehicles (temporary quarantine and self-isolation), monitored and informed about the situation at border crossings and cooperated with the relevant inspections present at the crossings. The Chamber Investment Forum had sent a request to the President of

the European Commission to approve the export of protective equipment to the regional countries which the Commission approved in a very short time. Which economic sectors are the driving forces behind Montenegro's development? Except for the processing industry, which experienced difficulties in procuring raw materials and exporting finished products, the pandemic had the least impact on the industrial sector. The coronavirus pandemic has shown the importance of domestic agricultural production and reducing import dependence. The realized value of purchase and sale of agricultural, forestry and fishery products in 2020 went up by 0.6% compared to 2019. The dairy sector, which implemented the relevant intervention measures to preserve its market, managed to record a 3.4 % increase in milk buy-up and 2.5% in cheese production. The experience we gained during the coronavirus-induced crisis has highlighted the importance of digitization, as industries with a higher degree of use of information technology had fewer difficulties in performing their activities during epidemiological measures. The information and communication technology sector is one of the few that has suffered minimal losses during the pandemic and is even growing on a global scale. The increased need for services of ICT companies during the crisis showed that we should invest additional effort into developing the ICT sector. Also, we need to improve the quality of domestic supply through continued activities on promoting and validating domestic production and better positioning domestic products. Furthermore, effi-

COOPERATION

Focus

The Chamber of Commerce of Montenegro and Chamber of Commerce and Industry of Serbia have exceptional bilateral cooperation.

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Since the onset of the coronavirus in our country, the Chamber has continuously monitored economic activi-

ties and the challenges that businesses faced. Thus, it conducted several studies assessing the impact of COVID-19 on the Montenegrin economy, to ascertain the consequences of the crisis on the business sector and offer the Government concrete recommendations for effectively overcoming the negative impact of the pandemic. The Chamber has played an active role in devising creating measures to support the economy. Also, as a member of the Western Balkans Chamber Investment Forum, we participated in the establishment of a green corridor

cient use and management of forests, as well as the processing industry, are an important potential in the development of the Montenegrin economy. The path of development of the new model of the Montenegrin economy should be based on encouraging innovation, digitization and sustainable agriculture. You were recently appointed a member of the board of the Vienna Economic Forum. What does this mean for you and what for the Chamber of Commerce of Montenegro? At the regular session of the General Assembly of the Vienna Economic Forum, which took place on 8th March 2021, I was appointed a member of the Forum’s Board, an organization that has a long tradition. Its mission is to promote economic and overall cooperation relating to common economic and development interests of 13 member states, including Montenegro. Therefore, my appointment to the Board of the Vienna Economic Forum is a significant recognition for the Chamber of Commerce of Montenegro and validation of the Chamber's reputation in international institutions dealing with issues of global economic cooperation.

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What is the cooperation between your Chamber and the Chamber of Commerce and Industry of Serbia (CCIS) like?

Our Chamber and CCIS have exceptional bilateral cooperation, which is further intensified by cooperation through the Western Balkans Chamber Investment Forum (WB6 CIF). WB6 CIF is a joint initiative of chambers of commerce from Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro and Serbia, which established a cooperation platform in 2017. WB6 CIF represents 350,000 companies and the business community in the light of the political processes in the region, which are taking place under the auspices of the Berlin Process as an additional incentive for the Western Balkans in the EU accession process. Building a common market is the

IN 2020, THE MONTENEGRIN GDP DECLINED BY 15.2% most important job for our economies and the future of the Western Balkans so that companies can start enjoying the tangible benefits of regional integration as soon as possible. The Action Plan for the Common Regional Market for the period 2021-2024, adopted last autumn at the summit in Sofia, also under the auspices of the Berlin Process, is a continuation of activities on improving economic cooperation in the Western Balkan region on the road towards the full-fledged EU membership. What are the plans and goals of the Chamber of Commerce of Montenegro? The Chamber’s activities, in the coming period, will be focused on stronger economic development and improving the business environment. One of the main priorities will be to support the revival of economic activities, especially after the pandemic subsides.

In order to relieve the economy and improve the overall business environment, the Chamber’s bodies and services will continuously monitor and analyze regulations as they impact business operations, and will continue to be the main initiator of amendments to existing laws and bylaws with the view of removing restrictions to doing business which ultimately contributes to boosting the competitiveness of the domestic economy. The Chamber will continue promoting economic potentials and attracting foreign investments, as well as work on education and internationalization of our economy, conduct analyses and research, help municipalities with obtaining a favourable business environment certificate, and be a partner in reforming the education system. We will continue the implementation of numerous projects and develop international cooperation. We will especially focus on promoting domestic products through the projects ‘The Best from Montenegro’, ‘Buy local’, and ‘Homemade Tastes’. We must constantly communicate with decision-makers to find quality solutions that will facilitate business operations and foster recovery and further development. 

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OUR PRIORITY IS A STABLE FINANCIAL SYSTEM RADOJE ŽUGIĆ

PhD, Governor of the Central Bank of Montenegro (CBM)

The CBM continues to be dedicated to further improving the stability and development of the financial system as a whole, carrying out intensive activities to improve the regulatory framework and boost supervision and money laundering prevention n the coming period, a special segment of our activities is focused on improving payment operations. Recognizing significant innovations in the payment industry and the accelerated development of digitalization, the CBM is considering all the possibilities of introducing instant payment services in the foreseeable future.

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Montenegro is in the group of countries most severely affected by the pandemic. How did that affect the country's financial system? Have there been any improvements in the first five months of 2021?

The Montenegrin economy has been hit hard by the coronavirus-induced crisis. According to preliminary data from MONSTAT, in 2020, our economy recorded a 15.2% decline. One of the key reasons why our economy has suffered such strong negative consequences from the coronavirus crisis lies in its inadequate structure, i.e. its reliance on tourism and the service sector, as well as inherited vulnerabilities in the

fiscal and real economy. In 2020, almost all economic sectors recorded a decline (with the tourism and transport sector suffering the most), while, on the other hand, there were dwindling fiscal parameters (increased deficit and public debt), the result of reduced economic activity and implementation of socio-economic measures to assist citizens and

THE CBM HAS IMPLEMENTED NINE SETS OF MEASURES AIMED AT MITIGATING THE EFFECTS OF THE PANDEMIC the economy, as well as to finance the growing costs incurred by the health care system. Based on the latest data on bank operations, we can conclude that the banking sector's safety and stability have been preserved, which we can

see from the solvency ratio of 19.3%, almost twice the prescribed minimum. All key balance sheet items have been growing since the beginning of 2021. Banks' lending activity is strong, while deposits are also continuing to grow, which is partly due to the reduced propensity to spend, but also a sign of trust in the banking system. The impact of the pandemic is noticeable in non-performing loans, which amounted to 5.53% at the end of May 2021, compared to 4.7% at the end of 2019, i.e. before the crisis caused by the coronavirus. What measures did the CBM implement to mitigate the effects of the pandemic on citizens and businesses? The CBM has implemented nine sets of measures aimed at mitigating the effects of the pandemic. The measures were, among other things, aimed at delaying and facilitating the repayment of liabilities, through a moratorium on payment of loans and loan restructuring. In this way, the banking sector 'conceded' liquidity to the popu-

lation and businesses. We focused on providing direct support to those categories of the population and economy that were most severely affected by the pandemic. We also used the monetary instrument at our disposal and reduced the required reserve of banks by 2%, which provided 70 million euro for liquidity and increased the credit potential of banks. The CBM also "halved" the costs of withdrawing liquidity of required reserves, thus providing affordable access to additional sources of liquidity of banks in case of need. In parallel, through communication with the European Central Bank and the Bank for International Settlements, we worked on boosting systemic liquidity, i.e. providing additional funds (up to 350 million euro) that would be made available to Montenegro in case of more serious shocks due to the coronavirus pandemic. We can confidently say that we have managed to maintain a balance between providing the necessary support to the real sector and the population and preserving the stability of the banking sector. Unfortunately, the uncertainty caused by the pandemic continues, which makes us quite cautious. We will continue to monitor and analyze developments in the economy, and especially in the banking system, in order to prepare a plan for the withdrawal of measures. In drafting this plan, which will be in line with IMF guidelines, we will strictly ensure that the measures are phased out in a timely manner, in order to minimize the risks of negative impact on the real sector and also on the banking system, which will play a major role in the long-term economic recovery ahead.

What are the CBM's key recommendations to the Government of Montenegro related to economic policy? The CBM has forwarded recommendations for implementing economic policy to the Montenegrin government. Taking into account the peculiarities of the situation, we have prepared this year's recommendations in a reduced form, focusing on measures that are crucial in crisis and which implementation should not be delayed due to potentially negative effects in the long run. The document points out that all recommendations from previous years, which have not been implemented, remain in force. Here, we especially highlight the recommendation that refers to changing the structure of the economy in terms of diversification of production and increasing the degree of product finalization. It is necessary to focus on those activities in which we have comparative

Montenegro has entered a public debt crisis, the most severe since hyperinflation in 1993. How can this problem be resolved? The coronavirus pandemic has seriously impaired fiscal performance in many countries around the world. Montenegro is not exempt from this either. We really felt the consequences due to the fact that we are a small and very open economy that predominantly relies on the service sector. Through the mentioned recommendations to the Government, we underlined the urgent need to prepare a fiscal consolidation programme and engage in its systematic and decisive implementation. Given the successful comparative examples of fiscal consolidation, the programme should be predominantly focused on the expenditure side of the budget, especially in areas related to reducing budget expenses with a high share of total expenditures and tax debt collection. Also, in order to improve the longterm sustainability of public finances, we recommended that a new Fiscal Strategy be developed as soon as possible, followed by a new Debt Management Strategy. To that end, we recommended the Government to launch an initiative with creditors to restructure parts of the public debt, which, in addition to refinancing, is one of the mechanisms to ensure its long-term sustainability in the context of the expected pandemic, weakened economic growth and reduced public revenues. We pointed out the need to create a medium-term budgetary framework, with more binding medium-term expenditure limits (introduction of a “spending ceiling”). We have again proposed the establishment of the Fiscal Council as an independent fiscal oversight body, as well as redefining fiscal rules. We pointed out the need to refrain from planning new large capital expenditures in the budget until the risk to the sustainability of public debt is reduced and the state of public finances is significantly improved. 

Focus

We have extremely good cooperation with the IMF and the World Bank. Senior officials of both institutions praised our activities on mitigating the consequences of the coronavirus crisis, underlining that the CBM anti-crisis measures were created and implemented

IN ORDER TO IMPROVE THE LONG-TERM SUSTAINABILITY OF PUBLIC FINANCES, WE RECOMMENDED THAT A NEW FISCAL STRATEGY BE DEVELOPED AS SOON AS POSSIBLE

advantages and increase the level of competitiveness.

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What is your cooperation with the International Monetary Fund and the World Bank like?

in a timely, adequate and strong manner and that the right steps have been taken to build a strong and credible institution. In February this year, for the first time since the establishment of the CBM, the IMF prepared an external analysis of our control mechanisms, based on which it was determined that the CBM has strong operational control mechanisms regarding its key functions. During the previous period, both institutions gave us technical assistance on many occasions thanks to which we improved our institutional capacities.

CORPORATE

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CHALLENGE AS A PATH TO SUCCESS I think we have succeeded in what our mission is, and that is to anticipate market expectations and create high quality products, through the application of new technologies and services

CLICK ON ICON

PÁL KOVÁCS CEO, Crnogorska Komercijalna Banka AD Podgorica, member of OTP Group

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xtensive experience gained during these trying times was a turning point for the entire world based on which we will further strengthen our market position and justify customer expectations. We are going to use our experience and energy to create new products, services and projects that will make Montenegro a more attractive place for business, investment and living in general. Given your abundant experience in the banking sector, could you tell us how the Coronavirus pandemic generally affected the operations of banks and CKB specifically? — The public health crisis caused by the Coronavirus pandemic has brought a whole new reality without much time to adjust, so the entire system had to re-

act quickly and efficiently to a new environment. Unfortunately, today we are witnessing a lack of clear state strategy and determination of decision-makers to tackle, in a more agile manner, the issues we face. This is not giving a positive signal to the existing and potential foreign investors who are rightly concerned about direction in which the country is moving. People are the greatest value of CKB, thus our priority has been to preserve the health of the employees. We invested significant efforts and resources to create a safe environment in which support and empathy are uncompromising values. CKB has quality procedures in place and a modern business organization. The fact that we are a part of OTP Group, the leading banking group in the CEE region, further confirms that this is a stable and resilient system which is constantly upgraded and strengthened. Owing to that, in the environment where it was difficult to plan anything, we managed to give an adequate response to

all challenges and be one step ahead, whenever possible. CKB Customer Protection Program, whose implementation was intensified in the past year, may be the best example of this. As part of this Program, we met with the customers who needed our support. We created models tailored to their needs, giving them the opportunity to successfully handle the crisis and continue doing business through a sustainable approach. This is just one aspect of the partnership approach that CKB customers expect and for which

AWARENESS

We came to understand that the awareness of the general wellbeing and interest is irreplaceable and that no personal success or satisfaction is sustainable without that awareness they place their trust in us. How did CKB contribute to the elimination of consequences caused by the Coronavirus pandemic? — During the pandemic, as I mentioned, we succeeded to provide solutions and offers that enable long-term stability to the customers, but also easier return to

the standard way of business. By membership in all relevant bodies such as the Montenegrin Foreign Investors Council and the Association of Banks and through all major institutional initiatives, as the largest bank on the Montenegrin market CKB strives to contribute to the recovery from the consequences of the public health crisis. I would like to take this opportunity to underline the importance of the experience we have gained during the past period. We should be well aware now that putting personal interests ahead of collective interest and wellbeing is not a key to success, especially by decision makers who are given the opportunity to improve the quality of life of the citizens. They will always find a partner in CKB for this kind of endeavors, but they must be aware of the responsibility they have at the moment. Therefore, all personal and short-term interests must be overcome, in order for us to create a system that is stronger, fairer and more resistant to the future challenges.

For the third consecutive year, reputable financial magazine Global Finance named CKB the best bank in Montenegro. Furthermore, in the first quarter of this year CKB made the biggest profit, as much as EUR 5,83 million. How did you manage to achieve such result in these challenging times?

SECRET

So, if there is a "secret" to our success, it is to find a chance in every challenge and do our best to make the most of it

Besides being a leader in all areas of business, CKB is a responsible member of the community in which you do business and strongly committed to corporate social responsibility. Which CSR project would you single out? — Corporate social responsibility is deeply rooted in our corporate culture. It has never been a matter of trend or self-promotion, but simply the need to do good for the community in which we live and do business. I would not single out any particular project as each one is equally important to us, but I would say that we are focused on supporting the healthcare system, children and young talents, as well as on the projects that raise awareness of the importance of art, environmental protection and equal opportunities in the society. The importance of socially responsible business is best shown by the fact that, although we were one of the largest donors during the fight against the Coronavirus pandemic, this year we continued to cooperate with all organizations, associations and individuals that we supported in the previous years. It was extremely important for us to stand by them even in these challenging times and show once again how much we believe in what they do. After achieving great results and following the year that brought numerous changes to business, what are your plans and goals? — Extensive experience gained during these trying times was a turning point for the entire world and we will use it to further strengthen our market position and justify customer expectations. We are going to draw on our experience to create new products, services and projects which will make Montenegro a more attractive place for business, investment and living in general. 

Focus

— All results and awards you mentioned are the outcome of dedicated work, investment in the system and people, as well as understanding and monitoring not only the market, but also the global trends. Furthermore, one principle which connects us all in CKB is when something is perceived as a difficulty or an obstacle, we are encouraged to achieve even better result! For instance, more than 15 years ago when digital transformation was initiated, many market participants were not aware of its importance and saw it as imposed obligation. CKB created the most advanced electronic banking sys-

tem in Montenegro, which did not lag behind the best services of that time. We saw it as our chance to grow, and used it. As a result of that, CKB is digital leader and the most innovative company both in the opinion of the profession and customers. So, if there is a secret to our success, it is to find a chance in every challenge and do our best to make the most of it.

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Crnogorska Komercijalna Banka and Podgorička banka completed the merger process in December last year. What does this mean for your customers and what benefits do they get from the integration? — The process of merging Podgorička banka into CKB was the most complex and important process of this kind in Montenegro, which lasted 17 months. We made every effort to integrate the best practices and standards of both banks and provide all our customers with a modern and best possible banking service on the market. At present, the customers of CKB have at their disposal a wide range of products, cutting edge digital products and services, and extensive network of branches and ATMs across the country. The companies and state now have even stronger partner for the implementation of development projects, and the citizens have our support for all important endeavors in their lives. I think we have succeeded in what our mission is, and that is to anticipate market expectations and create high quality products, through the application of new technologies and services. We are

exclusively guided by high international business standards, and we improve the entire social and business environment by connecting people and projects. In all of these processes, our focus is on maintaining customer trust and satisfaction as the ultimate and core value of our overall performance.

INTERVIEW

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CREATION OF BETTER BUSINESS ENVIRONMENT CONDITIONS CHRISTOPH SCHÖN

MFIC President, Podgorica

Through active participation in Government working groups and by providing comments and suggestions to most important economic strategic documents we will work towards fulfillment of the Council’s goals ur future priorities will be to promote Montenegro's investment potential and to promote the interests of the international business community in Montenegro. Montenegrin Foreign Investors’ Council will continue to fully support the country's reform process and its accession to the European Union.

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The 11th White Book of the Foreign Investors Council was recently presented. What are the most important conclusions and messages from it?

The 2020 was characterized by enormous challenges which were directly triggered by the worldwide COVID-19 pandemic crises as well as challenges which already existed before and which sharpened during the last year. While being fully aware of economic and socio political impacts we have reinforced our commitment for active and professional support and cooperation with the Government and the administration. MFIC Index as well the industry ratings for the 2020, have confirmed the Council's long-standing message that serious reform processes must be continuously implemented within the analysed sectors, in order to further improve the business environment, attract foreign investments and increase

the economic standard of all citizens. Looking to the future, we need to focus on three main pillars: timely and open dialogue between all stakeholders in order to give full support to business environment improvement, focus on removing identified business barriers and harmful practices that are obstacles for the community of international investors, and last but not least, for the future prosperity and overcoming the unprecedented damage caused by the COVID-19 crisis, the polarization in so many areas of society must stop and reconciliation and reasonable cooperation must start as soon as possible. Which sectors have been most affected by the coronavirus pandemic, in addition to tourism, which has certainly fared the worst?

MFIC INDEX AS WELL THE INDUSTRY RATINGS FOR THE 2020, HAVE CONFIRMED THE COUNCIL'S LONG-STANDING MESSAGE THAT SERIOUS REFORM PROCESSES MUST BE CONTINUOUSLY IMPLEMENTED In your opinion, what else needs to be done in order to create conditions for further improvement of the business environment in Montenegro?

What do you think will be the biggest challenges that companies will face in 2021? The corona virus pandemic has hit the entire world economy, putting a significant number of companies at risk of being forced to close their businesses. The crisis has particularly affected small and medium-sized enterprises and their employees. Almost all world governments are taking significant steps to reduce the negative impacts on businesses and their employees, but much more is needed. The biggest challenge SMEs are facing today is access to finance, which was already a challenge for many small businesses before this crisis began. On the other hand, the crisis has created potential opportunities for SMEs to develop mobile e-commerce solutions. Therefore, digitalization and use of technology can support the further development of business activities. Our message to Montenegrin businesses, especially in small and medium businesses, would refer to, again important digital transformation of business processes, more intensive communication with state bodies through existing associations and expansion of business activities. What are some of your recommendations for overcoming the crisis, who are the main stakeholders in

Focus

According to the findings of the White Book, the "rule of law" is recognized as the most challenging prerequisite for business development. A "predictable business environment", which implies transparency in the work of state bodies, is also of crucial importance. As a serious concern for the economic stability of the country, our members recognize the "discipline" or lack of systematic and strict tax collection. We are of the opinion that "disci-

pline" directly affects the competitiveness of companies in the market and unfair working conditions. The government should continue the fight against the grey economy, which requires a decisive reaction from the relevant institutions and is an important factor for fair market competition. Finally, as I stated already in the beginning, the current polarization throughout society is counterproductive for a stable and sustainable economic development, especially looking at the scarce resources available. We are therefore supporting all initiatives which contribute to a reconciliation and which are facilitating the establishment of a common vision for all well-meaning citizens.

MONTENEGRO 2021

The result for 2020 shows a significant decrease compared to 2019 (from 6.9 to 6.4) which was the best year having in mind several factors, and a decrease compared to 2017 and 2018 as well when the Index was 6.5. Such important Index decrease by 0.5 has not been recorded so far, but it was expected bearing in mind that the year 2020 was marked by COVID-19 pandemics that had extremely negative consequences on the country’s economy. When we talk about the industries which have been rated, the decrease of all six industries is evident, what is understandable given the overall Index decrease. Accordingly, telecommunications/ICT has decreased from 7.6 to 7, banking/finance from 7.4 to 6.8, tourism from 6.9 to 6.1, production/energy from 5.9 to 5.6, trade/retail from 6.8 to 6.6 and transportation/logistics from 6.6 to 6.3. To evaluate individual significant categories, members analyzed the extent to which the following categories affect their business positively or negatively: labor market and employment, property development, taxation, corporate governance and rule of law. The decrease has been recorded in three categories – property development (from 6.4 to 6.3), corporate governance (6.4 to 6) and rule of law (from 5.7 to 5.3) while increase has been re-

corded in other two categories – labour market and employment (from 5.7 to 5.9) and taxation (6.3 to 6.5). Six categories additionally evaluated by the MFIC members are human capital, black market and inspections, regulations for public-private partnership, public procurement, digitalization of public services, regulations on personal data protection. Out of these six categories, increase has been recorded in two categories – regulations for public-private partnership (from 5.7 to 5.8) and regulations on personal data protection (from 5.8 to 6). The same score was recorded for digitalization of public services (5.4), while three categories recorded a decrease – public procurement (from 5.6 to 5.2), black market and inspections (from 5.3 to 5) and human capital (from 6.3 to 6.1).

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this process and what should be done to overcome the crisis as soon as possible? Close and continuous communication with the Government and public administration bodies remains an important tool of the Council to support our members in the development and improvement of their business operations in Montenegro. Timely dialogue in this context is essential for all stakeholders, in order to enable increased efficiency in business processes and avoid negative and harmful consequences for the entire business community. In this sense, the Competitiveness Council has a particularly important role to play. We are committed to providing further support in order to achieve proper implementation and positive results of the implemented reforms. Due to the sensitivity of any investment to frequent changes in the legal and regulatory framework, mutual understanding and commitment is crucial for the economic progress of Montenegro in the upcoming period. What projects will the Foreign Inves-

A "PREDICTABLE BUSINESS ENVIRONMENT", WHICH IMPLIES TRANSPARENCY IN THE WORK OF STATE BODIES, IS ALSO OF CRUCIAL IMPORTANCE tors Council in Montenegro work on in the coming period? Following the publication of the 11th edition of the White Book, which findings and recommendations have been discussed at the Competitiveness Council in April 2021, Secretariat to the Competitiveness Council gathered answers from the responsible institutions to our recommendations which will be discussed and adopted at the next session of the Competitiveness Council scheduled for the end of June. We are very much looking forward towards implementation of the recommendations which refer to transfer of the best EU and world practices into

Montenegrin system. Through the initiative submitted to the Competitiveness Council, and with the support of the Ministry of Finance and the Secretariat of the Competitiveness Council, we are working intensively on the implementation of defined proposals for measures to eliminate barriers to the development of electronic services in the banking and telecommunication sectors. An interdepartmental working group, which is being chaired by the MFIC Executive Director, prepared an Action Plan with established dynamics for implementation of submitted recommendations. We will continue to be an active member of the Government Competitiveness Council as well as to continue to closely cooperate with EBRD Secretariat to the Competitiveness Council towards achievement of our common goals and promotion of our common interests. Our Committees (Banking, ICT, Insurance and Regulatory Policy) will closely follow up regulatory framework changes in their sectors and propose initiatives for improvement in areas relevant for our member companies’ business operations. 

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Our slogan is “TMS – Client Success” and we help with all resources that our clients became more and more thriving

about the quality, the most common comprehension was about the quality of the product. This is understandable, as the quality of the service is much more complex. However, the modern economies are prevalently service oriented. In the highly developed countries, the services make sometimes even more than 80% of the GDP. So, the focus on service quality is justified as the service quality influences our lives on a significant scale.

TRADITION

KRUNA GAVOVIĆ

TMS as a company with 20 years of tradition, understands the needs of the modern companies

Marketing and Academy Director at TMS CEE, CEO at The Lean Six Sigma Company CEE

omy and global challenges, the companies which care more about the quality of their services provide to their customer better experience and get the loyalty. How a company can ensure the good quality of the service? — There are several standardized ways – from generic standards like ISO 9001, ISO 10002 or other, to the advanced techniques like GSES or Lean Six Sigma. It is good to know that the good service almost always leads to the better economic results. In the case of the Lean Six Sigma, it is also the imperative and only the verified financial effects are recognized. Of course, no standard can help if your staff is undertrained. We always recommend more trainings, especially because the fluctuation of the people today is higher than ever before. Properly trained staff cannot just deliver the good service but also, they will be able to implement the standards and tools and to enable organizations to be resistant to the changes and challenges. Is TMS becoming the synonym for safe? — TMS, as a company with 20 years of tradition, understands the needs of the modern companies. “Safe” is just the basic need. We emphasize that not just the quality, safety and environmental aspects are needed, but also the right company culture which is marketing oriented. Our slogan is “TMS – Client Success” and we help with all resources that our clients became more and more thriving. 

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Could you please tell us why is quality of service so important today? — For many decades, when we speak

Also, old notion of the “customer satisfaction” remains valid, but today the “customer experience” gets more attention and it requires the impeccable quality of the service. As we live in the specific times of econ-

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MONTENEGRO 2021

ith Kruna Gavović, Marketing and Academy Director at TMS CEE, and CEO of The Lean Six Sigma Company CEE, we spoke for this year edition of InFocus Montenegro, about the difference between the quality of the product and the quality of the service, what companies can do in order to ensure the good quality of their services, and the 20 years of TMS company, tradition and values.

CORPORATE

WE UNDERSTAND THE MODERN COMPANY'S NEEDS

CORPORATE

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WE PROVIDE SUPERIOR LOGISTICS SERVICES Montenomaks’ integrated logistics service combines international transport, customs clearance, warehousing, handling of goods and distribution to the end user

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— The previous year went by very quickly. It brought a lot of challenges and unknowns, however, in spite of everything, it was a success. The pandemic has taught us that the future is unpredictable, but that we must be ready for new challenges and continuously work on improving the company and its processes, as well as on developing our employees, partners and the entire community.

MILENKO POPOVIĆ

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CEO of Montenomaks C&L

ontenomaks Control & Logistics is the leader in the Montenegrin market when it comes to providing integrated logistics services. According to the Solvent Rating Company from Montenegro, and based on the analysis of the past three years, Montenomaks has once again met the most important criteria in the field of success and solvency, proving to be the most stable, reliable and highly recommended partner, in domestic and foreign markets equally. As a result, Montenomaks was awarded the Gold Certificate of Business Excellence, which represents the highest

FEDEX AND TNT SERVICES

level of success of a company, rated for three years in a row. Nelt Group reacted promptly at the very beginning of the pandemic. All member companies, including the leading domestic distributor Neregelia and logistics provider Montenomaks, adopted the Business Continuity Plan, said Milenko Popović, CEO of Montenomaks C&L, with whom we discussed successes and challenges during the coronavirus pandemic.

Montenomaks C&L has been a licensed representative of FedEx services on Montenegrin market, and since 2019 we have been the official provider of TNT services

Montenomaks has many years of experience and a good reputation in the field of logistics. Therefore, we had to ask you, as a market leader in Montenegro, how the coronavirus pandemic affected your business? What were your results at the end of the year?

At the very beginning of the pandemic, Nelt Group, which also includes Neregelia and Montenomaks, reacted promptly and adopted the Business Continuity Plan, in order to continue operating in changed conditions and enable our partners and clients to supply the

market efficiently and uninterruptedly. We focused our attention on the safety and health of our employees who, with their responsible behavior and, I can freely say, courage, have contributed to our business, responding to all tasks in the new circumstances. It is our employees who deserve the most credit for the achieved results which, even in such a challenging year, were on the satisfying level. Together with Neregelia, we provide support to our community in these challenging times and, as Nelt Group in Montenegro, we donated 20,000 EUR to the National Coordination Body for Infectious Diseases.

THE FUTURE

Complex logistics processes are the present and the future of our company, not only in Montenegro, but in all markets of the Western Balkans where Nelt Group is present Among other benefits, our customers now have Express and Economy service in one place, shipping by air at very reasonable prices, and equally efficient road service. I would also like to point out the favorable economic tariffs for the United States of America, China, as well as towards Europe, and representation in customs procedures in countries of the European Union and abroad. We digitalized and simplified the entire shipment procedure with the help of FedEx Ship Manager ™ Lite and my TNT applications. Through our cooperation with global leaders in the field of logistics services we brought international standards and contributed to development of this area of business in Montenegro, and the key difference we made was that we have once again proved that our logistics services know no borders, only time zones.

After a year full of challenges, how is your business doing this year and what are your further plans? — With good road infrastructure, with the potentials of ports, airports and the railway, I believe that Montenegro can also be a significant logistics hub in the West Balkans. That is precisely why we carefully follow the market trends, habits and needs of consumers, and we adapt to them. With the intensive digitalization of business, new information systems and by connecting with clients and government institutions, we are ready to face new challenges. We want to continue providing top logistics services according to modern business standards. Through investments, we will provide existing and new clients with even more efficient services that will enable them to conduct better business operations. Complex logistics processes are the present and the future of our company, not only in Montenegro, but in all markets of the Western Balkans where Nelt Group is present. 

Focus

You have a large number of employees and you are a very successful company. What are the principles that guide

your HR department? How do they contribute to employee satisfaction and development? — All the companies that successfully overcame the crisis from the previous year relied primarily on their employees. I am especially proud of our HR team within the Group, and the team spirit that is nurtured in our company. Our systematic approach to personnel policy has enabled the advancement and development of all our employees, so today, in most management positions are people who started their first job in Neregelija or another company in the Nelt system, in Montenegro, the region or beyond. In order to better prepare for all the challenges and respond to the requirements of our clients, all our employees attend internal training that are specially developed for our needs, but they also attend tailormade internal trainings, as well as the international programs organized in cooperation with our partners. Opportunities to work in other locations, even in Africa, where Nelt Group operates in three markets, are a great motivation for all our employees looking for new career challenge.

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Montenomaks exists for 20 years now. It was awarded the Gold Certificate of Business Excellence. Which of your services, qualities and operating models, have distincted you among the business community, and contributed to your lasting and successful business? — Montenomaks’ integrated logistics service combines international transport, customs clearance, warehousing, handling of goods and distribution to the end user. This means that manufacturers and brand representatives on the Montenegrin market can rely on us in taking the complete care of their products, import and export, customs procedures, storage, processing, packaging adjustments including labeling and co-packing, as well as delivery to end users. In order to respond better to consumers’ requests, we also provide courier services, so-called last-mile delivery, on the entire terrritory of Montenegro. The analysis conducted by independent company Solvent Rating from Montenegro for 2017, 2018 and 2019 shows that for three years in a row, our company has been meeting the most important criteria in the field of success and solvency, thus proving itself as a stable, reliable and highly recommended business partner in the domestic and foreign markets. Statistical models were built on the basis of financial indicators (indebtedness, liquidity, efficiency and effectiveness) and on the basis of adverse events (bankruptcy, liquidation, blockade) in the observed period, and have brought us the prestigious Gold Certificate of Excellence in 2020.

Your company is a licensed FedEx service representative and official provider of TNT services in Montenegro. What does this mean for your customers? How does this contribute to the services you offer them? — Montenomaks C&L has been a licensed representative of FedEx services in Montenegrin market, and in 2019 we have been the official provider of TNT services in our country. By uniting FedEx and TNT companies, Montenomaks C&L provided their customers with access to the combined network of services, in more than 220 countries worldwide, giving them greater opportunities than ever before.

CORPORATE

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GEBRÜDER WEISS MONTENEGRO: RELIABILITY, TRANSPARENCY, EFFICIENCY efficiency, lower customer costs and thus create a decisive advantage when it comes to market competition. We talked to Savo Ičević, Country Manager at Gebrüder Weiss Montenegro, about how such a successful company reacted during the pandemic, and what services it provides.

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A difficult period caused by the coronavirus pandemic, which particularly affected transportation and logistics, is behind us. Tell us how it affected your business and how did you overcome the difficulties imposed by the pandemic?

SERVICES

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Gebrüder Weiss has a wide range of services we provide to our clients worldwide

Our clients did not get the chance to feel the consequences of the crisis on our cooperation and thus we once again confirmed that we are a good and reliable partner, with experience in most diverse and even crisis situations

SAVO IČEVIĆ Country Manager, Gebrüder Weiss Montenegro

ebrüder Weiss is a company with a long business tradition that operates successfully even in the changed circumstances imposed by the coronavirus pandemic. It transports all types of goods by land, sea or air, from and to every continent. Their experts develop transport and logistics solutions for specific industries and customers, which allow for seamless connection of production, business and transport processes. They increase

— Our infrastructure, logistics, management and other aspects of the company are sufficiently developed so that we can readily withstand the tectonic changes caused by the coronavirus in all segments of society and business. Nevertheless, our company not only successfully operated by adapting to changes in work, but we always found the right solution for our clients, and we even expanded our business given that our services were needed and significant in these circumstances. Our clients never got the chance to feel the consequences of the crisis on our cooperation and thus we once again confirmed that we are a good and re-

liable partner, with experience in most diverse and even crisis situations. Gebrüder Weiss has always taken strict care of the safety and health of its employees, so that no one could feel threatened in any way. We are proud of this and the results confirm our position. As a company with rich resources, we were determined to use the crisis caused by the coronavirus to develop and thus provide our customers with an even better service. We listened to the market, made contacts, clients who were satisfied with our work gladly recommend us and this growth trend continued. We believe that the secret of success in any period is to rely on a proven recipe: reliability, transparency, efficiency and hard work. There is no profit in the short run. You really have to support your words with actions, which is the case when it comes to our company. The clients have the opportunity to see this for themselves. Even in a small and turbulent market such as Montenegro, where it is not easy to find its place, we have managed to rise up and our values, which we have stated, have been recognized. This proves that business policy based primarily on work and continuous improvement must come to the fore. Of course, working at Gebrüder Weiss means developing creativity to meet the client’s needs. These are challenges that constantly guide you to grow as an employee, but they also support the growth of the entire company. For us, all employees are equally valuable and important links in the chain which exists to make us as efficient as possible. Taking care of every employee, an atmosphere of fair and warm relations in the company, cooperation and communication are our imperative.

Among the services you offer, you also provide some special solutions, what exactly does that mean and does that set you apart from the competition or would you add something else?

BETTER AND FASTER

We have developed a range of E-services that would enable us, in these times of crisis, to achieve: better and faster delivery

The coronavirus pandemic accelerated the digitalization process and the development of new technologies, do you apply them in your business, how developed E-services and E-business are in your country? — We have developed a range of E-services that would enable us, in these times of crisis, to achieve: better and faster delivery, find new solutions, eliminate risky

contacts and preserve the health of our employees as well as the health of our partners. In that sense, we use online programs through which clients can always keep track of the current status of their shipments as well as the time of arrival. We strive to develop our services towards better and more efficient solutions, and that’s why we are monitoring trends in the field of E-services and we are always among the first to apply them. The crisis has taught us that we can see it as a difficulty but also as a chance for new and further development. 

Focus

— Gebrüder Weiss is a world-renowned company that is present and operates successfully in all European countries and most countries of the world, either independently or through partner companies that must meet the standards of Gebrüder Weiss. This means that we have a highly developed company infrastructure, contacts and ideas that meet the needs of the most specific clients. In our work we try to combine and apply efficiency, speed of service, precision, convenience and reliability. We take care of the smallest details, we

leave nothing to chance, our employees are highly trained and we continuously invest in education, service improvement and we follow market trends. We can say without false modesty that we set high standards with this way of doing business, and that’s why we primarily compete with our previous results, which we surpass from year to year. The fact that we not only maintained a high level of service but also expanded our business in times of global crisis confirms that our efforts and efficiency are fruitful in this time as well.

MONTENEGRO 2021

You provide a wide range of services, what do you offer your clients? — Gebrüder Weiss has a wide range of services we provide to our clients worldwide. The company provides transport services for all types of goods, on all meridians and with all means of transport – by road, air and sea, as well as logistics and forwarding services. Our company in Montenegro strives to respond to challenges by offering its customers appropriate and efficient logistics solu-

tions. We always listen carefully to the needs of clients and offer them individual solutions according to their needs. We are a reliable and successful partner who has gained precisely such a reputation in the business environment and among clients in 10 years of doing business in Montenegro.

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Focus

ECONOMY

Montenegro experienced a very deep recession in 2020 because COVID-19 had a severe impact on the country’s tourism-dependent economy

Photo: ALESIA KOZIK from Pexels

by Nevena Kuveljić MONTENEGRO MONTENEGRO2021 2021

Focus Focus 38

A MODERATE RISE IN INFLATION IS EXPECTED

IN RECENT YEARS, MONTENEGRO HAS HAD POSITIVE GROWTH RATES WITH SOME FLUCTUATIONS DUE TO THE SENSITIVITY OF SMALL MARKET ECONOMIES tors for the period before the COVID-19 epidemic in Montenegro, the 5.1% real GDP growth, starting in 2018, stopped in 2019, which according to preliminary data from MONSTAT, was 3, 6% primarily due to lower domestic demand. However, in 2019, about 245 million euro worth of added value more was created compared to 2018, while inflation grew in 2019 by 1.5%. Lower in-

flation in 2019 was a consequence of lower prices of clothing, alcohol and tobacco. However, the COVID-19 pandemic in March and April 2020 further lowered the prices of global commodities, thus reducing inflationary pressures. After falling by 2.5% in 2018, real wages rose by 0.5% in 2019, while private consumption continued to be the backbone of growth in 2019, adding 2.6 percentage points (pp). However, a slowdown in investments was recorded, partly due to insufficient execution of highway costs, reducing growth by 0.5 pp. The European Commission's "European Economic Forecast - Spring 2021" report states that Montenegro experienced a very deep recession in 2020 because COVID-19 had a severe impact on the tourism-dependent economy, weakening both external and domestic demand. A partial recovery in tourism and investments is projected for 2021 while households and companies will continue to bene-

IN NUMBERS

Focus

Montenegro's tourism revenues fell to 3.5% of GDP in 2020, compared to 22.2% of GDP a year earlier.

MONTENEGRO 2021

fter gaining independence in 2006, Montenegro began building a market economy based on the rule of law and stable state institutions. The Stabilization and Association Process, which the EU instigated, has further strengthened political stability and created prerequisites for boosting economic activity. All of the aforementioned affected the dynamic economic growth and increased competitiveness of the national economy. The report titled "Assessment of the impact of COVID-19 on the business sector and growth prospects of the Montenegrin economy", written by the UNDP with the contribution of UNESCO and UN Women, states that, in recent years, Montenegro has had positive growth rates with some fluctuations due to the sensitivity of small market economies. This trend continued until the outbreak of the COVID-19 pandemic. The mentioned report also states that if we look at macroeconomic indica-

MONTENEGRO 2021

Focus 40

fit from public policy support. Despite the permanent damage that the pandemic caused to domestic companies and the workforce, the economy could be restored to its pre-pandemic levels in 2022, driven by the return of the regular tourist season with positive spillover effects on private consumption, employment, the external balance and budget revenues. Montenegro's tourism revenues fell to 3.5% of GDP in 2020, compared to 22.2% of GDP a year earlier. The collapse of the tourism industry triggered a sharp recession in the economy, which declined by 15.2% in 2020. Conditions on the labour market also deteriorated, despite measures implemented by the Montenegrin government to help companies keep their employees. In order to support citizens and the economy, the Government of

THE GOVERNMENT OF MONTENEGRO HAS IMPLEMENTED SEVERAL ECONOMIC SUPPORT PACKAGES, INCLUDING WAGE SUBSIDIES AND TEMPORARY TAX CUTS FOR BUSINESSES AND INDIVIDUALS Montenegro has implemented several economic support packages, including wage subsidies and temporary tax cuts for businesses and individuals, leading to an increase in public debt and defi-

cit. The increased number of people infected with COVID-19 and slow progress in vaccination could jeopardize this year's summer season, which is vital for inflationary pressure. However, a moderate increase in inflation is expected this year and next. The report "Assessment of the impact of COVID-19 on the business sector and growth prospects of the Montenegrin economy" also points out that the COVID-19-induced crisis has shown again that preserving macroeconomic and financial stability, along with building fiscal reserves to cover situations like these, is key to improving the country’s resilience to economic shocks and that such stability is a necessary condition for maintaining high growth in the medium term, which was previously recognized as an important policy. 

FOCUS

POSITIVE ECONOMY FORECAST The economy is expected to partially rebound in 2021, with GDP growth of 8.5%, helped by the strong contraction last year and the consequent positive base effect ontenegro's economy is expected to grow by 8.5% in 2021, the European Bank for Reconstruction and Development (EBRD) said in June, improving its September forecast for 5.0% growth. In 2022, Montenegro's gross domestic product (GDP) is expected to expand by 6.0%, the EBRD said in the latest edition of its Regional Economic Pros-

pects report. Changes to the border policy this year should also support a partial recovery in the tourism sector. Downside risks are a possible weaker than expected recovery in tourism due to a prolonged impact of the pandemic as well as limited fiscal space to accommodate further spending should such needs arise, the EBRD said. The Fund expects an average con-

sumer price inflation of 1.0% in Montenegro in 2021, compared to 0.9% deflation last year. The average inflation is seen at 1.2% in 2022 and 1.7% in 2026. Montenegro's current account gap is projected at 18.7% of GDP in 2021, before narrowing to 12.0% next year. The deficit is expected to shrink to 9.2% of GDP in 2026. The current account gap stood at 25.9% of GDP last year, according to the report. 

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COOPERATION

VALUE OF TRADE BETWEEN SERBIA AND MONTENEGRO 751.6 MILLION EURO

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The total trade between these two countries decreased by 12.3% compared to 2019

hen it comes to the Montenegrin economy, about 90% of Montenegrin stateowned companies were privatized by 2015, including the entire banking, telecommunications and oil sector. Tourism, which accounts for about 20% of Montenegro's GDP, brings in three times as many visitors each year as the total population of Montenegro. In addition to tourism, energy and agriculture are also considered

IN THE PERIOD FROM 2006 TO JUNE 2019, TOTAL SERBIAN INVESTMENTS IN MONTENEGRO AMOUNTED TO 516.6 MILLION EURO

pillars of the country's economy. The largest foreign investors in Montenegro come from Russia, Italy, Cyprus, Denmark, Hungary and Serbia.

TRADE IN GOODS In 2020, the total trade between Serbia and Montenegro amounted to 751.6 million euro and recorded a decrease of 12.3% compared to 2019. Exports from Serbia to Montenegro amounted to 687.1 million euro, which is a 12.7%

decline compared to 2019, while imports from Montenegro dropped by 7.9% compared to 2019 and amounted to 64.4 million euros The trade surplus amounts to 622.7 million euro. in 2020, Montenegro occupied 7th place on the list of countries that Serbia exported to the most, with a 4% share. As far as the countries that Serbia mostly imported from in 2020, Montenegro ranks in 38th place with 0.3% of total goods Serbia imported. In the first three months of 2021, the value of trade between Serbia and Montenegro stood at 166.5 million euro, which was a 6.7% decrease compared to the same period in 2020. Exports to Montenegro amounted to 151.7 million euro, 7.3% less compared to the same period last year, while imports from Montenegro are lower by 0.6% compared to the same period in 2020 and amounted to 14.9 million euro. The trade surplus amounted to 136.8 million euro. Based on the data collated by the Ministry of Finance of the Republic of Serbia - Customs Administration, 6,002 companies do business with the Republic of Montenegro. Serbia mostly exported the following products to Montenegro in the period from January to March 2021 - boilers, machines and devices, reactors, electrical machines, road vehicles, pharmaceuticals, beverages, alcohols and vinegar, mineral fuels, oils and wax, various food products, iron and steel products. In the same period, Serbia mostly imported the following products from Montenegro - mineral fuels, oils and

wax, meat and meat offal, aluminium and aluminium products, wood and wood products, charcoal, beverages, alcohols and vinegar, and copper and copper products. The Serbian companies that exported the most to Montenegro in 2020 include Zijin Bor Copper, Titan Cement Plant Kosjerić, Ino Predstavništvo, Hemofarm, Coca-Cola Hellenic Bot-

IN 2020, THE TRADE IN SERVICES BETWEEN THE TWO COUNTRIES AMOUNTED TO 280 MILLION EURO tling Company Serbia and Sontango. The Serbian companies that imported the most from Montenegro are Ino Predstavništvo, Impol Seval Aluminum Rolling Mill Sevojno, Hemofarm, Gold Distribution and Mesopromet Group.

SERVICE TRADE In 2020, the trade in services between the two countries amounted to 280 million euro. In the same period, Serbia exported services worth 143 million euro to Montenegro, which is a decrease of 37.3% compared to 2019. In 2020, Serbia imported services worth 137 million euro from Montenegro, which is a 26.4% decline relative to

2019. The surplus in the service trade in 2020 amounted to 6 million euro. According to the data from the Serbian Business Registers Agency, in 2020, a total of 538 active companies, majority-owned by the Montenegrin companies and nationals, operated in Serbia. This number also includes those companies that are undergoing the bankruptcy procedure, i.e. are in the process of liquidation. There are 538 registered companies in Serbia that were established following an investment of Montenegrin citizens or legal entities registered in Montenegro. The largest number of Montenegrin companies in Serbia operates in wholesale and retail trade, repair of motor vehicles, administrative and support service activities, construction, accommodation and food services, professional, scientific, innovation and technical activities, manufacturing, information and communication, transport and storage, real estate, financial activities and insurance activities. According to the data collated by the National Bank of Serbia, the total net investments of Montenegrin residents in Serbia, in the period 2010-2018, amounted to 155.3 million euro. According to the data of the Central Bank of Montenegro, the total investments from Serbia in Montenegro, in the period from 2006 to June 2019, amounted to 516.6 million euro. The biggest investments were made in 2010 and amounted to 81.8 million euro, while in 2018, investments amounted to 65.5 million euro. 

GRAPHIC VIEW OF TRADE BETWEEN SERBIA AND MONTENEGRO FROM 2013 TO 2021 (JANUARY TO MARCH)

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Import

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Export

Balance Source: RAS

CULTURE

by Nevena Kuveljić MONTENEGRO MONTENEGRO2021 2021

Focus Focus 44

CULTURAL TREASURY OF MONTENEGRO The cultural heritage of Montenegro - a magnificent mosaic of civilizational achievements

Milunović, film director Živko Nikolić and many other artists.

WRITER, PHILOSOPHER, STATESMAN The author of heroic and moral verses – “Everyone is born to die once, honour and disgrace live forever” - or – “It is easy to be good when good is around. You can tell a fearless man in times of trouble“, with the quality and strength of his work, Petar II Petrović Njegoš attracted the attention of the then European public to the small country of Montenegro, whose people had al-

THE CULTURAL SPACE OF MONTENEGRO WAS CREATED UNDER THE INFLUENCE OF BOTH THE EASTERN AND WESTERN CIVILIZATIONS ways been brave, defiant and proud. His most famous books, such as "Gorski Vijenac", "Luča Mikrokozma" and "Lažni Car Šćepan Mali", made him one of the world's greatest writers. Njegoš’s writing is deeply thoughtful and possesses a significant artistic, literary and historical value. The monumental Njegoš's Mausoleum was built on the massive mountain of Lovćen (its summit called Jezerski Vrh), a place that the poet chose for eternal rest during his lifetime. His birth house is located in the village of Njeguši, while at Njegoš's museum, called Biljarde, which is located in the town of Cetinje, you can see the poet's personal belongings, numerous works of art, as well as his library

and manuscripts, the most prominent of which is the original manuscript of “Gorski Vijenac”.

SPIRITUAL AND CULTURAL CENTRES Churches and monasteries are important cultural and historical monuments that testify to the turbulent history of Montenegro. They mostly reflect the Byzantine influence both in architecture and frescoes. The monasteries of Ostrog, Morača and the Cetinje monastery stand out for their monumentality and beauty. A masterpiece of nature and man, standing at 900-metres-altitude, the magnificent Ostrog Monastery emerges from a steely rock. Due to its exceptional spiritual strength and unique ambience, this sanctuary is one of the most visited in the Christian world. It was founded in the 17th century, in honour of St. Basil of Ostrog, who was buried inside the monastery and is believed to have miraculous powers. The Morača Monastery was founded in the 13th century by a member of the famous Nemanjić family - Stefan Nemanjić, son of Vukan and grandson of Stefan Nemanja. Legend has it that the monastery was built of special yellow stones which people, forming a long line, passed hand to hand, from Tušina to Morača. The frescoes in this monastery, such as "The Raven Feeds the Prophet Elijah" and "The Birth of St. John the Baptist" are some of the most beautiful examples of fine art in the Balkans in the 13th century. The Cetinje Monastery has exceptional cultural and historical significance, preserving some of the most important Christian relics, such as the Hand of St. John the Baptist and the Particles of the Holy Cross. In addition, the monastery’s museum is home to the epitrachelion of Sava Nemanjić, the crown

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The universal feature of the art of this country from its cave to the cosmic era is the inseparability of artistic expression from the urge for life and the struggle for survival.

MONTENEGRO 2021

etween the graceful Adriatic Sea and the impressive gigantic mountains, the Mediterranean climate of the south and the rugged mountain peaks of the north, lies a cultural heritage of a territorially small, but strong and proud country - Montenegro.” At the birth of our planet, the most beautiful encounter between the land and the sea must have happened at the coast of Montenegro," said the famous English poet Lord Byron. This unique beauty of nature, culture, and tradition has been resisting the ravages of time and transience. The cultural space of Montenegro was created under the influence of both the Eastern and Western civilizations. This country has inherited traces of pagan, Illyrian, Hellenistic, Romanesque, Catholic, Orthodox and Islamic influences. Montenegro is a magnificent mosaic of civilizational achievements, thanks to all the cultures that have stayed in it, some longer, some shorter. In the rich cultural treasury of this country, you can find important archaeological sites such as Crvena Stena (The Red Rock), the first known habitat of prehistoric man in Montenegro, ancient Duklja where the famous Podgorica cup was discovered, illustrated with early Christian motifs and which is now in the world-famous Hermitage Museum, as well as one of the largest cities of the Roman province of Dalmatia - Municipium S. The cultural heritage of Montenegro consists of the immortal verses of Petar II Petrović Njegoš, the charm of medieval towns and fortresses, monumentality and spiritual power of monasteries, elegance and permanence of cathedrals, the timeless talent of painters Dado Djurić, Petar Lubarda and Milo

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visitors with its fairy-tale-like scenery. In today's church, which was built by the Venetians in 1630, there is a tapestry embroidered by Jacinta Kunić from Perast, from 1803 to 1828, while she was waiting for her sailor husband to come home. This is a unique piece that she made from her own hair. The church itself was painted by the Boka painter Tripo Kokolja, and his most significant work is the decoration of the interior of the church of Our Lady of Škrpjela, a masterpiece of Baroque art.

of Stefan Dečanski, as well as the first book printed in South Slavs – “Oktoih Prvoglasnik”. Forty years after Gutenberg printed the first book in the world - the Bible - on his press in Mainz, the world saw the first book in the Slavic language called “Oktoih Prvoglasnik”, printed in Cetinje, Montenegro, which is one of the biggest printing achievements of the 15th century. Apart from the mentioned monumental monasteries, other sacral monuments that represent the pinnacle of artistic creation are the Cathedral of St. Tripun in Kotor and the Church of Our Lady of Škrpjela near Perast. The magnificent Cathedral of St. Tripun is located in the heart of the old town of Kotor, built in 1166, and is one of the oldest churches in Europe. It is 69 years older than the Church of Notre Dame in Paris, and 460 years older than the Basilica of St. Peter in Rome. During its long history, it experienced many sufferings, reconstructions and additions. It was originally built as a Romanesque basilica, but later, during the reconstruction and following the earthquake, it was rebuilt in the

EVERYONE IS BORN TO DIE ONCE, HONOUR AND DISGRACE LIVE FOREVER Renaissance-Baroque style. The Cathedral is valuable because of its treasury, added in 1657, which contains silver objects, among other things. Another work of art of great value is an ornate golden vessel holding St. Tripun’s skull. Montenegro has many unusual cultural monuments, such as Ostrog, which is located in a natural cave, and the Church of Our Lady of Škrpjela, built on an artificial island and created by laying stones around a sea rock on which, according to legend, fishermen found an icon of the Virgin with Christ. Our Lady of Škrpjela has been standing with dignity and peace on the Adriatic Sea for several hundred years and is reflected in the beautiful blue waters around it. In such an ambience, it charms all passers-by and

LIFE AND CHARM OF MEDIEVAL TOWNS Montenegro is further enriched by the spirit of the Mediterranean, which imperishability and invincibility adorn the six old towns that are interwoven with the architecture of various periods. The old parts of the towns of Budva, Kotor, Risan, Perast, Herceg Novi, Bar and Ulcinj are breathtakingly beautiful and for a moment, transport you back to the time when they were built. In the old coastal towns, surrounded by walls, you can feel the spirit of the Illyrians, Greeks and Romans who left important material evidence of ancient times, namely fortresses, bell and clock towers, citadels, hamams, armouries and such. It is interesting to note that the famous Spanish writer Miguel de Cervantes, who later wrote the novel Don Quixote, was held prisoner at Ulcinj's Old Town. Back then, the town was called Cita di Dolcinio, Cervantes named Don Quixote’s mistress, Dulcinea, after the town where he had been kept prisoner for five years. Even today, there is a square in Ulcinj where trading in slaves used to take place it is called Slave Square or Cervantes Square. Apart from these timeless monuments, Montenegro also lives in the sublime verses of Njegoš, Lubarda's expressive paintings, and the unusual films directed by Živko Nikolić. As one of the Montenegrin historians and academics, Pavle Mijović, said in his book „The Art Treasure of Montenegro - "The universal feature of the art of this country from its cave to the cosmic era is the inseparability of artistic expression from the urge for life and the struggle for survival." 

KOTOR: CHARM OF THE WATER The town of Kotor, Montenegro rests in a magnificent mountain valley and is tightly knitted between the steep mountainsides and the Bay of Kotor. Its reflection in the still waters of the bay during the evening is a photographer’s dream

tains medieval frescoes and the remains of a basilica (c. 6th century); and several palaces of prominent families, including the 18th-century Grgurina Palace, which is now a maritime museum. The oldest town in Montenegro, Kotor is now a state-protected historical monument. In 1979 a major earthquake seriously damaged the town, but much of it has been restored. Also in 1979 Kotor was designated a UNESCO World Heritage site. Glosa With its pristine, modern port and an ancient history for the old town, Kotor earns its UNESCO World Heritage site reputation easily. 

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French period was followed by Austrian domination until 1918. Much of Kotor’s medieval fortifications remains. Its main gate dates from the 16th century; the south gate, Kotor’s oldest, was partially built in the 9th century. Kotor has many historic buildings, the largest and most beautiful of which is St. Tryphon Cathedral, which was built in 1166 and contains many frescoes and a treasury of jewels. Also notable are the Church of St. Luke (1195), which was originally Roman Catholic but has been an Orthodox church since the 17th century; the Church of St. Mary (1221), which con-

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otor, walled town, seaport, and resort at the south end of Kotor Bay, one of four bays of the Gulf of Kotor (Boka Kotorska), on the Adriatic coastline of Montenegro. The town lies at the foot of the sheer Lovćen massif, which rises to 5,738 feet (1,749 metres). Kotor was founded by the ancient Romans as Acruvium. In the 10th century it was an autonomous city ruled from Byzantium. It was Venetian and Hungarian for brief periods, an independent republic from 1395 to 1420, and Venetian again until 1797. Between 1807 and 1814 it was occupied by France. The

The highest value is not only pure courage heroism but ethically ennobled courage - chivalry

Photo: ENDER VATAN from Pexels

TRADITION

by Nevena Kuveljić MONTENEGRO MONTENEGRO2021 2021

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PRINCIPLES OF CHIVALRY AND HEROISM

sle (a one-string fiddle), kolo, various beliefs, rituals, respect for the elderly or head of the family... During the centuries-long rich history, Montenegro is one of the brightest examples of the struggle for freedom, the country's existence and a place that has always been spoken about with reverence. The desire for freedom and independence is the highest and most important goals of the Montenegrin people, which is why the virtues of the individual that contribute the most to that

MONTENEGRO IS ONE OF THE BRIGHTEST EXAMPLES OF THE STRUGGLE FOR FREEDOM, THE COUNTRY'S EXISTENCE AND A PLACE THAT HAS ALWAYS BEEN SPOKEN ABOUT WITH REVERENCE are valued the most, above all - heroism. However, this should not be an object of evaluation in itself but must be motivated by the highest and noblest goal, and that is freedom. Heroism leads the patriotism, combativeness and love of freedom. The personality of heroes in Montenegro is especially valued, i.e. their honesty, sense of justice, chivalry. This is why the highest value is not only pure courage - heroism, but ethically ennobled courage chivalry. It is nice to defeat the enemy with heroism, but it is better to outstrip them with chivalry. This is exactly what the writer and

duke Marko Miljanov Popović wrote about in the book "The Examples of Chivalry and Heroism", in which he states: „Heroism is when I defend myself from another, chivalry is when I defend another from myself.“ Heroism - "defending oneself from others" - is only a preparatory stage for chivalry "defending others from oneself", which represents the highest level of ethical value. Miljanov's whole book is subordinated to one basic thesis and one main theme - honour. He states the moral principles that the Montenegrin people should be guided by, such as „be careful what you say, and when you give your word, it obliges you in sickness and health. Honour is more precious than life or a hero is only one who never forgets that they are human“. A given word or promise carries a special weight among Montenegrins. A good example of this is provided by the first unwritten rules of banks-credit institutions at the time when they are constituted. One of the terms and conditions for granting a loan, was a pledge, a mortgage or a given word. It is especially interesting to note is that every single loan, which had been granted with the borrower's promise to pay it back as the only collateral, was paid off. For hundreds of years, Montenegrins adhered to unwritten rules and were guided by honour and customs. They obeyed these moral principles not out of coercion or under threat, but out of the moral law within themselves which dictated the rules of conduct to them. Honour is the basic postulate and unit of measurement of human and good deeds. It is most often defined as a moral attitude, based on ethical principles, which encourages behaviour worthy of respect. The goal

PRINCIPLES

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Montenegrins are a proud and brave people, ready to fight for their freedom, but above all a nation who holds morals, honour, humanity and the given word above anything else.

MONTENEGRO 2021

he constant struggle for freedom has ennobled the Montenegrin people with the most sublime virtues - heroism and chivalry (čojstvo, in the Montenegrin language). For their survival, the threat of nature was smaller than that of external enemies of freedom and independence. In these struggles, Montenegrins showed their fighting spirit, courage, patriotism, defiance and pride, which were praised in the songs written by people from both the West and the East. The English writer Alfred Tennyson acclaimed about the Montenegrins - "Oh, smallest among peoples! Rough rock-throne of freedom! Warriors beating back the swarm of Turkish Islam for five hundred years. Black ridges drew the cloud and brake the storm that has breathed a race of mightier mountaineers“. The victory over Napoleon's army in alliance with the Russian tsarist fleet was described by the great Russian poet. Alexander Sergeyevich Pushkin, in the song "Bonaparte and the Montenegrins" in which he repeats with astonishment Napoleon's question – „Who are the Montenegrins and is not this "evil tribe" afraid of French power?“ The struggle for freedom created not only brave people, but also heroic art such as "Gorski Vijenac", and the famous author of this book, Petar II Petrović Njegoš, who, through his literary accomplishments, elevates Montenegro to the heights of developed European cultures. In „Gorski Vijenac“, Njegoš fittingly describes the basic idea - the understanding that the fight for freedom and independence is the main and greatest human duty. In this book, he talks about the Montenegrin heroic-patriarchal culture, which is weaved from heroism, chivalry, singing accompanied by gu-

Photo: OLGA BRAJNOVIC on Unsplash

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of Marko Miljanov's work "The Examples of Chivalry and Heroism" was to raise morale in the tribe of the heroic past. Forgiveness is a common motif in his stories, in which the heroes forgive insults and "lives". When we say that „lives are forgiven“, we are referring to the custom of blood feud among Montenegrins, which speaks of the conflict between two families that begins usually with the murder of a member of one family, and which continues with the killing of one man from each family at a time. The term used is that one family "owes blood" to another and the debt is returned only by killing a man from another family. In his book, Marko Miljanov repeatedly recounts how the perpetrator often gives up on revenge, because he does not want to leave, even the bloodthirsty, family without a single

FOR HUNDREDS OF YEARS, MONTENEGRINS ADHERED TO UNWRITTEN RULES AND WERE GUIDED BY HONOUR AND CUSTOMS male head of the family. This book also talks about the importance of being a proper host to guests, but also about the already mentioned given word. The guest, or the person who is in trouble and asks for help, is always provided with shelter, protection and even revenge if any evil thing happens to them while they are staying at the host's house. If the guest took a piece of bread and salt from the host's

hands, they will never suffer from the hand that offered them this bread and salt. Special attention has always been paid to travellers and guests in Montenegro. According to tradition, they are still offered fitters with honey (called priganice) as a welcome treat, as well as a shot of homemade brandy. Montenegrins are a proud and brave people, ready to fight for their freedom, but above all a nation that holds morals, honour, humanity and the given word above anything else. Marko Miljanov writes in his book about how important a given word was to the people – „ it is harder to trample on the given word, than everything else that is out there!“ Njegoš's verse - "Everyone is born to die once, honour and shame live forever" - speaks best about the importance of chivalry among Montenegrins. 

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quickly, safely and easily online, on our website, at a 30% lower price! This way, insurance premium for individual policy, including additional charge for COVID-19 coverage, for a seven-day stay on the territory of Europe will be only RSD 1,102. The savings are great, especially if you go on a family trip, because in that case, the premium is only 2,425 dinars for the same period of time. All you have to do is set aside a few minutes and take out Travel Health Insurance from your own home, in just a few simple steps, and go on vacation completely unburdened. Detailed instructions for taking out Travel Health Insurance policy online can be found on the website webshop.ams.co.rs. For more information call the phone number 0800-009-009. AMS Osiguranje wishes you a safe trip and a carefree vacation! 

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TOURISM

by Nevena Kuveljić

TWO PEARLS OF BOKA KOTORSKA

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Boka Kotorska (The Bay of Kotor) is listed among the 28 most beautiful bays in the world

wonder how the sun can set when this beauty cannot be found anywhere but here,” wrote the writer and diplomat, Ljubomir Nenadović, inspired by the gorgeous twilight over the Bay of Kotor. The poet Aleksa Šantić was also enchanted by the bay’s beauty, called it “the bride of the Adriatic” and immortalized it in the verses - “Our dear Boka, the bride of the Adriatic, covered with the sky of blue silk, you are more beautiful than your seaside fairy and you are holier than her necklace.” In 1997, the Bay of Kotor

“I

was listed among the 28 most beautiful bays in the world. Every neighbourhood in Boka, every small town and island captivates with its beauty and uniqueness.

KOTOR – THE VENICE OF MONTENEGRO In the embrace of this paradise bay, lies one of the most beautiful and charming cities in Montenegro - the medieval city of Kotor. This town has resisted ravages of time for centuries and with dignity suffered through all the troubles that befell it. The various

colonists, the plague and the earthquakes that struck this place, did not diminish its pristine beauty. On the contrary, they gave it an extra dose of respect and admiration. Surrounded by the proud Lovćen Mountain and the sea, it seems as if the mountains have cracked and let the sea enter their laps. One of the legends about the town’s origin says that the fairy, who lived in the surrounding mountains of hilly Montenegro, advised Tsar Stefan how to build a town on the sea, "because without the sea, you have no life - there are no docks for ships and no watering plac-

influences have contributed to today’s Kotor unique look and architecture. Surrounded by grandiose walls, Kotor is crisscrossed by old cobbled

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IN 1997, THE BAY OF KOTOR WAS LISTED AMONG THE 28 MOST BEAUTIFUL BAYS IN THE WORLD

streets, stone palaces, museums, winding streets and numerous town squares and piazzettas, but also features elaborate staircases and magnificent gates that feel as if leading you straight into a medieval fairy tale. Its history is best evidenced by the town’s landmarks, such as the impressive Cathedral of St. Tripun, which is a symbol of Kotor. It is dedicated to the patron saint of the city, whose iconic status was transferred from Asia Minor to Kotor in the early 9th century and is the most important monument of the medieval Kotor.

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es for a horse on the hill ”. You enter the ancient Kotor as if you are entering a fairy tale - through the main Marine and North or South city gates. The magnificent Kotor ramparts, about 4.5km long, up to 20m high, seem to form a frame for the lively picture of the Kotor town. This image was created by different cultures and civilizations - Kotor was part of the Duklja state, then Raška under the Nemanjić dynasty, for almost four centuries, it was ruled the Venetian Republic and for over a century, it was a part of the Austro-Hungarian monarchy. All these

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There is also the town’s main square - the Square of Weapons (Trg od Oružja) - which in the Venetian era, was used for storing and repairing weapons. Here you can experience the architecture and spirit of the Baroque and Renaissance, but also attend traditional festivals. The Tower, with a clock dating back to the 17th century, is also located in this square, and below it is the Pillar of Shame, on which convicts were once publicly punished. In addition to the Tower, there is also the Rector's Palace, the Arsenal building, the Napoleon Theatre and the City Guard Tower. Due to its authenticity and general cultural and historical values, Kotor is on the UNESCO list as part of the world's natural and cultural heritage.

BAROQUE TOWN OF PERAST Perast is a small place with a rich history. It started as a small fishing village to become a magnificent, rustic baroque city, a unique pearl of the Mediterranean. Perast’s main square is dominated by the church of St. Nikola with its impressive 55-metre-high-bell tower which is the second-highest bell tower on the Adriatic. 60 narrow steps lead to its top, where you can enjoy a magnificent view of the roofs of Perast and the bay. The beautiful palaces in Perast, although today largely neglected and overgrown with ivy, still testify to the golden age of this town. One of the great poets and philosophers, Petar II Petrović Njegoš, often stayed in the

Balović palace and the Djuro Djuranović house. It is believed that he wrote a love song "Night worth a century" there. Apart from the St. Nikola Church, Perast has 17 more churches, including the Church of St. Ana, which is located high above the town and decorated with frescoes by Tripo Kokolja, a Baroque painter who also painted the interior of the Church of Our Lady of the Rocks. The legend says that the island was created in the early 15th century when two fishermen from Perast saw the light on a small reef. When

I WONDER HOW THE SUN CAN SET WHEN THIS BEAUTY CANNOT BE FOUND ANYWHERE BUT HERE they approached it, they saw an icon with the image of the Mother of God. This was the "Sign of God" for the people of Perast and the reason to build the church here. To do so, they made an artificial island by piling up stones on an underwater cliff. The magnificent Our Lady of Škrpjela church is located on that island. Next to it, there is the Island of St. Djordje, which was admired by writers Stendhal, Arthur Miller, Ernest Hemingway, Sima Milu-

tinović, Sima Matavulj, Vuk Karadžić, Ivo Andrić, Branko Ćopić… St. Djordje is a Catholic church built on a natural island, popularly called the Island of the Dead because a large cemetery spans the whole island which is the resting place only for the most famous people of Perast. The island also has the 19th-century-Benedictine-monastery and a small church dedicated to St. Djordje. The story of Perast’s Rome and Juliet is connected to this place. Namely, in 1813, when the Bay of Kotor (but not Perast) was under the occupation of Napoleon Bonaparte, the young soldier Ante received an order to hit Perast with a grenade from the island. After Perast surrendered, happy that everything ended so quickly, the young soldier Ante went to the town to meet up with his darling Katica but found her dead. She was killed by a grenade fired at Perast. After that unfortunate event, Ante left the army and became the eternal guardian of her grave. Today, you can see two monuments next to each other on the island. The Bay of Kotor is unique in many ways, a refined, wise thread of the Adriatic, which is the main character in many stories, legends and secrets. It was also the scene of the struggle for freedom and testified to the courage of the Montenegrins. It intoxicates with its unobtrusive, dignified beauty and spiritual strength. No matter how much you observe and enjoy it, you can never fully grasp it and figure out its permanence and timeless charm. 

Montenegro 2021

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