Krivokapić on the ‘Euro model’: Wage growth must be backed by an economy that creates more

In an op-ed for the Montenegrin portal CdM, Montenegro’s former prime minister, Prof. Dr. Zdravko Krivokapić, spoke about the “Euro model” economic program, placing it in the context of his 42nd government’s “Europe Now” program. His central message is clear: “Wage growth must be backed by an economy that creates more and offers long-term security.”

Five years after the program was presented, Krivokapić writes that the economic policy of the government he led had a clear aim: development based on knowledge, a sustainable economy and opportunities for everyone to improve their quality of life. According to him, “Europe Now” was one of the most important results of the 42nd government. He accuses the PES movement (Pokret Evropa sad) of political appropriation: “The program was created before this movement. Taking its name does not give the right to take the credit.”

He recalls that “Europe Now” (now called ES1) had a clear economic and social goal: raising living standards and employment, curbing the grey economy and better conditions for business and investment. The state gave up part of its revenue in favor of employees and employers, to encourage legal business and broaden the tax base. The program’s particular value, according to him, was that by cutting taxes on labor it brought “envelope” wages into legal flows — more legal security for workers and fairer conditions for honest employers.

According to Krivokapić, the program’s preparation carefully balanced the interests of employees, business and the state, with concrete calculations, while a coordinating body was set up to monitor implementation. He asserts that the election of the 43rd Government, which he calls “unconstitutional”, betrayed the reform direction started by his government, and that later programs and party-political use devalued the original idea.

The announced “Euro model”, he writes, should be judged by its sustainability, fairness and real improvement in citizens’ lives. He asks why, if it is a continuation of the same concept, it is not called “Europe Now 3” — but stresses that public and verifiable accounts, serious dialogue with business and unions, and accountability for promised results matter more than the name. He closes the piece with the message: “The benefit of the reforms must be felt by employees, pensioners and small business.”