Finance Minister Milorad Katnić took part yesterday in the ministerial dialogue in Brussels between economy and finance ministers of EU member-states and candidates. He presented Montenegro’s Pre-Accession Economic Programme (PEP) for 2011-2014 which was praised at the meeting for being in line with the accession priorities of boosting macro-economic stability and further reform.

In addition to lauding the PEP, the EU ministers welcomed Montenegro’s efforts to boost fiscal and financial stability as a precondition for long-term economic growth and greater employment.

The meeting, which in addition to the ministers gathered the representatives of European Commission and the European Central Bank, recognised candidate states’ progress in economic stabilisation and implementing reform.

Minister Katnić presented Montenegro’s key macro-economic and fiscal indicators and structural reform the country is undertaking. It was concluded that the 2.5% growth in 2011 is mainly due to increased export and private spending, but also tourism revenue. Another positive signal is the inflation rate, which remained mild at 3% on average, in addition to employment growth of 1%. The participants welcomed in particular the 3% decrease in public expenditure in 2011 as compared to 2010.

The member- and candidate states’ ministers agreed that in order to unleash the full potential for economic growth it is necessary to strengthen the energy and transportation infrastructure in Montenegro, restructure the metal industry and continue privatisation in order to diversify the country’s industry.