The Price of Stability

Montenegro’s Finance Minister on Foresight, Reform, and the Future of Trust

At dawn in Podgorica’s Ministry of Finance, Novica Vuković’s team is already poring over debt-maturity charts — not to find space for spending, but to buy time. Two years into his mandate, the minister has turned fiscal caution into a growth strategy. He speaks about finance the way engineers speak about design: every number must serve purpose, every reform must stand.

Under his watch, Montenegro has introduced OECD-backed spending reviews, strengthened its credit standing on global markets, and invited citizens themselves to take part in financing the state through new retail bonds. As the country accelerates toward EU and euro-zone membership, Vuković insists that credibility is Montenegro’s most valuable export.

Why start with spending reform?

Because efficiency is the foundation of sustainability. The expenditure review helps us see where public money truly creates value — and where it can be redirected toward higher priorities. It’s not about cuts; it’s about clarity. We’re building an internal culture of responsible budgeting that outlasts any political cycle.

With OECD expertise, both the Ministry and line ministries are gaining analytical capacity that will define how Montenegro plans, measures, and delivers results for decades.

How do you make new borrowing look like prudence, not risk?

By being transparent about why and when we borrow. Between 2025 and 2027 around €2.1 billion of previous debt will mature, plus €565 million in interest. Our decision to allow up to €500 million in additional borrowing isn’t about new spending — it’s about refinancing early and creating fiscal reserves for those heavier years ahead.

Creating deposits today so tomorrow’s budget is lighter — that’s responsibility, not risk.

That’s proactive, responsible management: we create deposits today so tomorrow’s budget can breathe easier. Investors recognise that logic. The fact that Montenegro successfully placed €850 million in bonds this March, supported by over 100 renowned global investors, confirms their confidence in our predictability.

Why invite citizens into the bond market?

Because public finance should never feel distant. By opening a €50 million issue of government bonds through commercial banks, we’re giving citizens a chance to invest directly in the state and benefit from it.

More than two billion euros in savings currently sit in bank accounts — this mechanism channels a small part of that into national development. People earn competitive interest, the state secures domestic financing, and together we strengthen trust. It’s both financial innovation and civic education: citizens become partners in the country’s progress.

What’s left on the road to the euro-zone?

We’ve already closed one negotiation chapter in our competence and expect to close another by the end of the year. The Fiscal Council — an independent body to assess the credibility of fiscal policy — is the next key step. Beyond procedures, what matters is mindset. Europe recognises Montenegro as a serious and predictable partner; our task is to make fiscal discipline a national reflex, not a momentary goal. Joining the euro-zone isn’t just about currency — it’s about belonging to a culture of responsibility.

For Vuković, stability isn’t the absence of risk but the mastery of it. In a region still testing the balance between ambition and restraint, his ministry’s work shows that credibility can be built quietly — spreadsheet by spreadsheet, decision by decision — until it becomes the country’s most convincing story.