Mugoša: We will propose alternatives for pension adjustments, I’m not optimistic that the majority will accept them
Thank you to our international partners for their suggestions. We take them seriously into consideration, but we make our decisions ourselves, because we live in this country and will continue to live here after next year’s elections. We probably want what is best for Montenegro more than people who have not tied their fate to Montenegro - Mugoša said
The European Alliance has proposed three alternatives concerning the Law on Pension and Disability Insurance that would provide for better pension adjustments, stressing that these are long-term solutions that would contribute to improving living standards while remaining sustainable from the standpoint of the stability of the public finances and the economy. They will also call for an extraordinary pension adjustment by the end of the year.
This was stated by European Alliance MP Boris Mugoša at a press conference in the Parliament of Montenegro, where he said that the proposals were well-founded but that he was not optimistic that MPs from the parliamentary majority would accept them.
Dramatic increase in prices
Mugoša recalled that the minimum pension was increased to €450 at the end of 2023, which he said was a positive step, but noted that they had warned at the time that this would create inequalities among a large number of pensioners.
- Parliament unanimously adopted our conclusion at the time that, by the end of March 2024, a schedule for increasing other pensions should be proposed. It is now September 2026, and for two and a half years the Government has failed to comply with Parliament’s conclusion. After that, we saw a period of dramatic price increases, while pension adjustments were negligible. No one can explain to me how pensions were increased by just a few euros this year when we know that the cost of living has risen dramatically. Half of pensioners receive the minimum pension, while two-thirds of them receive pensions of around €540 - Mugoša added.
Alternatives
The first provision they are proposing, he explained, concerns adjusting pensions in line with consumer costs under the Law on Pension and Disability Insurance.
- We propose that the law continue to provide for pensions to be adjusted in line with the general increase in prices, but also in line with increases in the prices of medicines, food and household utility costs. I believe this would be more favourable for pensioners - Mugoša said.
According to him, pensioners spend more than 80 percent of their income on medicines and household utility costs.
- The costs of food, medicines and utilities are statistical data processed by Monstat - Mugoša said.
The second proposal, he added, also concerns pension adjustments.
- Currently, the previous three months are compared with the quarter preceding them. You cannot compare January, February and March with April, May and June, because these are cycles. We need to add a provision that compares prices in the current quarter with those in the previous quarter, as well as the current quarter with the corresponding quarter of the previous year if that is more favourable for pensioners. We need to look at the annual inflation rate - Mugoša said.
The third issue concerns the new euro model, which, according to him, envisages abolishing contributions, thereby gradually equalising net and gross salaries.
- Pensions are adjusted in line with the growth of gross wages. What happens is that citizens’ net wages increase, while pensioners continue to have their pensions adjusted according to gross wages, and then that has no effect. We propose keeping the provision based on gross wages, but also adjusting pensions according to net wages if that is more favourable for pensioners - Mugoša said.
Extraordinary adjustment
According to Mugoša, there will probably now be a wave of proposals through which some people will try to gain several percentage points of support without considering what those measures could mean for the stability of the system.
- We are proposing these solutions not in order to manipulate voters. Montenegro does not cease to exist in June next year. That is why we are proposing long-term solutions that contribute to improving living standards in a way that is sustainable from the standpoint of the stability of the public finances and the economy - Mugoša said.
He stressed that they should sit down and agree on an extraordinary pension adjustment by the end of the year, because the majority of pensioners receive pensions of around €500, while the average salary is around €1,000.
- That level of pensions must be the minimum if the average pension is to reach 60 percent of the average wage; currently it is at 54 percent. If the new models are adopted, it will be 43 percent, which is scandalous. It is unacceptable for pensions to be at 40 or 50 percent of the average wage. That is why we call on everyone, regardless of political differences, to agree on an extraordinary pension adjustment by the end of the year - Mugoša said.
Their solution, he added, is systemic.
- Let us agree on this, because pensions are currently at 54 percent of the average wage. This extraordinary adjustment does not require additional budget funds, nor do our new proposals. I believe it is our obligation to take care of 130,000 citizens of Montenegro. I do not see how this could be unacceptable to anyone - Mugoša said.
Political sweet-talking
He said that we are witnessing „sweet-talking“ in politics.
- Unfortunately, these announcements regarding the new model further threaten the position of pensioners. Someone wants to give up earmarked revenues, which are the most stable source of funding, and reduce the entire revenue side to expectations. I do not think that is a serious and responsible way of conducting politics, because if you know what the expenditure is but do not know what the revenue is, then that is not the way our financial system should be designed - Mugoša said.
They do not want the discussion about improving living standards, he added, to be reduced to manipulation aimed at gaining another few percentage points of public support, stressing that it was nonsense to suggest that they were opposed to increasing wages and pensions. According to Mugoša, the European Alliance does not conduct politics in that way.
- We are pursuing our course properly and responsibly. What matters is that we know that any support we receive is a reflection of people’s belief in us - Mugoša said.
The sequence of steps in a democracy
Asked by journalists to comment on the European Union’s message that political differences should be put aside and that cooperation should continue on the European path, he said that the European Alliance had already demonstrated this many times.
- We belong to a movement that, as early as the beginning of the 1990s, advocated for an independent Montenegro, the EU and NATO. Our position is clear. Thank you to our international partners for their suggestions. We take them seriously into consideration, but we make our decisions ourselves, because we live in this country and will continue to live here after next year’s elections. We probably want what is best for Montenegro more than people who have not tied their fate to Montenegro - Mugoša said.
Asked whether he expected cooperation with the parliamentary majority on the proposed measures as well as on constitutional amendments, given last week’s developments, when there was no quorum in Parliament for an extraordinary session at which the dismissal of parliamentary speaker Andrija Mandić was to be discussed, Mugoša said they had been warned in advance.
- The parliamentary majority was warned in time, and on September 24 they resorted to an unconstitutional and anti-democratic principle when they held democracy hostage. I desperately want Montenegro to join the EU, but it is also important what kind of country enters the EU. Before we enter the EU, we must resolve fundamental civilisational values. I do not want Montenegro to enter the EU as an empty shell with falsified content, because such a Montenegro would only be a problem for all of us. That is why the European path and the adoption of laws and amendments are important to us, but so is respect for the Constitution. Our colleagues violated the Rules of Procedure. It is extremely important to me that we be completely clear about certain civilisational and value-based achievements. Our colleagues in the majority are now next in line; we are calling for the session to be held. Let them vote according to their conscience - Mugoša said.
He said that he sometimes found it degrading that someone who embodied the European path was a person who had done everything to prevent it from happening, only to later take certain positions and start lecturing others on European values.
- If someone believes that criminals are heroes, that is a legitimate opinion, but let them say so. They cannot escape responsibility. They avoided it on the 24th, but they cannot escape it - Mugoša said.
Commenting on the constitutional provision abolishing parliamentary immunity, he said that he had no problem with it.
- Immunity does not protect you. The question is whether this Government can fundamentally serve as a benchmark for integrity - Mugoša said.
The European Alliance, he added, was fully prepared to discuss everything, but „in a democracy there is a sequence of steps“. Mugoša said he had never expected anyone to do everything he demanded without also listening to the demands of the other side.
- If they insist on undermining democracy, then they will bear responsibility for everything that may potentially happen. When they were in opposition, they did not vote for a single measure requiring a qualified majority - Mugoša stressed.
Distrust of an immature government
Asked whether they had spoken with their colleagues, given that the Civic Movement URA had submitted a proposal to amend the Law on Pension and Disability Insurance, he replied that it was completely irrelevant whose proposal ultimately passed.
- All of this is the result of discussions with pensioners and MPs in Parliament. I believe these proposals are well-founded. Whether the majority MPs will accept them - I am not optimistic, because we have the majority that we have. We proposed various adjustments, but they said there were no funds, while now several hundred million euros in additional expenditure is apparently not a problem. I do not trust this immature government. Our task is to put these proposals forward. I hope they will not block our debate, but I cannot influence how they will act - Mugoša said.
Speaking about projections for pension increases, he said that the proposed measures could lead to some growth, but not a dramatic increase.
- We are proposing solutions that will be realistic. But in order for pensions to rise to 60 percent of the average salary, an extraordinary adjustment is necessary - Mugoša concluded.