Montenegro aims to join the European Union and the euro zone in 2028, according to Prime Minister Milojko Spajic. The small Balkan nation, which has seen its economy nearly double over the past five years, is also considering selling fresh government bonds to institutional or retail investors to support its economic growth.
The EU has accelerated its enlargement efforts following Russia’s invasion of Ukraine in 2022, emphasizing the importance of integrating countries near its borders to prevent geopolitical “grey zones.” Spajic stated that Montenegro plans to meet the remaining European Commission criteria, mainly focused on strengthening institutions, by the end of next year, with accession talks set to begin in 2027. Final approval for membership, which Montenegro has sought since 2012, would require unanimous support from the 27 existing EU members.
Montenegro, which adopted the euro before gaining full independence from Serbia in 2006, hopes to enter the euro area simultaneously with EU accession. Entry into the eurozone would require Montenegro to align its inflation and long-term interest rates with those of the euro area’s best-performing members. While inflation averaged 3.1 per cent in the 12 months to July—higher than EU and eurozone averages—economic output rose to 7.8 billion euros in 2024 from 4.2 billion euros in 2020. Net salaries have also doubled in the same period, aided by tax cuts.
Some concerns have been raised by the Montenegrin central bank regarding government revenue and debt projections, but Spajic defended the administration’s fiscal management, noting a deficit of around one per cent for the first eight months of the year. The government is evaluating new bond sales in international markets such as London, Frankfurt, or Tokyo, as well as a domestic retail bond option to support its economic and investment plans.
