Novotni: Without productivity growth, the announced “Euro model” may bring short-term effects
Economic analyst says he sees no way for the government to provide the necessary money without increasing the VAT rate
He also said that the environment for the private sector must be such that employees flee from the public to the real sector, and not vice versa.
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Photo: TV Vijesti
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.BH
29.09.2026. 21:41h
Economic analyst Damir Novotni said that, without productivity growth, the announced “Euro model” may bring short-term effects, and that he sees no way for the Government to provide the necessary money without increasing the VAT rate.
He also said, for the show “Reflektor” on TV Vijesti, that the environment for the private sector must be such that employees flee from the public to the real sector, and not vice versa.
“What the Government is proposing makes short-term sense. In the long term, European funds must be used wisely to encourage private sector investment. Montenegro will certainly receive a satisfactory amount of money and it is up to the Government to direct that money towards investments that will increase labor productivity in companies, and thus workers’ earnings,” he said.
Novotni said that wage growth cannot be determined by any government decree, but must be a consequence of supply and demand in the labor market.
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Damir NovotniEuro modelGovernment of Montenegro
