Friday, 10th October 2025

Reforming Montenegro’s Public Sector

The growing costs of public sector employment in Montenegro are stifling the economy, with inefficient services dragging down business productivity and competitivenes

In Montenegro, the ballooning costs of the public administration are under scrutiny, with calls for significant reform to enhance the country’s economic efficiency.

The Union of Employers of Montenegro (UPCG) warns that excessive and escalating wages within the state sector have created a substantial financial burden, directly affecting the competitiveness of the private sector.

As detailed in their Business Agenda 2025, the country’s small, dynamic economy is struggling under the weight of inefficient government services, which fail to meet the needs of businesses.

While pushing for a reduction in the number of public employees, the document stresses the need for a strategic approach that maintains financial stability while improving service quality.

Furthermore, the report highlights the importance of integrating employers’ voices into policy creation, ensuring that decisions are evidence-based and inclusive. For Montenegro, a transparent, efficient public sector is crucial to fostering a competitive, thriving economy.

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