fbpx
European Western Balkans
Opinions

In terms of living conditions, how far is Montenegro from the EU? A look at poverty, wages and unemployment

Podgorica; Photo: Wikimedia Commons

Montenegro’s journey toward EU membership isn’t just about ticking political boxes – it’s about transforming the country’s economy and improving daily life. For many Montenegrins, the EU symbolizes the hope of better jobs, stronger infrastructure, and a higher standard of living. But right now, there’s still a real gap between Montenegro and the more developed economies of Europe. The hope of losing that gap – what’s called socio-economic convergence – is what fuels the country’s push toward integration – where EU membership isn’t just a goal, but a promise of a brighter future.

In Montenegro, public opinion research reveals that socioeconomic challenges and unemployment are seen as the country’s most pressing problems, with these concerns being especially dominant among the youth. Faced with limited opportunities and a stagnant job market, a significant portion of young Montenegrins express a desire to leave, with many viewing the European Union as their preferred destination for better prospects.

This is why Montenegro’s socio-economic convergence  with the EU is crucial for its long-term development, which can create conditions for the country to become a more attractive destination to live in, especially for its youth.

Returning to the initial question – how far is Montenegro from the EU in socioeconomic terms?

As of 2023, the at-risk-of-poverty rate in Montenegro stands at 20.1%, and has been in a constant but slight decline since 2019. In simpler terms, one in five Montenegrin citizens lives at risk of falling into poverty. In comparison, the EU average is 16.2%, which has remained relatively stable since 2019. Among EU member states, Romania, Latvia, Lithuania, Estonia, and Spain have higher rates than non-EU Montenegro, while the lowest rates are found in the Czech Republic, Slovenia, Denmark, Ireland, and Finland. At-risk-of-poverty-or-social-exclusion rate in the EU is 21,4% as of 2023. Lowest values are in Checkia and Slovenia (below 14%), while in Montenegro it stands at 31,0%, which is notably higher than the EU, as it mean that around one in three Montenegrin citizens faces financial difficulties or lacks basic necessities or lives in household where most of its members don’t work.

What further illustrates a country’s socioeconomic situation is the severe material deprivation rate, which measures the percentage of people facing serious economic hardship. IIn Montenegro, this rate fluctuated over the past four years, peaking in 2020 and 2021, but falling to 12.3% in 2023, down from 18.0% in 2022. Simply put, one in eight Montenegrins struggles to meet basic needs like food, clothing, and housing. In the EU, the rate is 6.8%, almost half of Montenegro’s. EU countries like Romania (19.8%), Bulgaria (18.0%), and Greece (13.5%) have higher rates than Montenegro, while Slovenia, Cyprus, Sweden, Luxembourg, and Estonia report the lowest rates (below 2.5%). Seeing disparities in statistics within the EU, It’s important to note that EU membership criteria were less strict in the past, but have been tightened due to the challenges faced by countries that did not achieve sufficient socio-economic convergence, leaving some still outside the Schengen area today.

In addition to poverty and deprivation, wages play a crucial role in determining living conditions. Montenegro’s minimum monthly wage is currently 450€ net (532€ gross), with plans to raise it to 600€ net by the end of the year under the “Europe Now 2” project. While most EU countries have minimum wages above 900€ gross, Bulgaria has the lowest at 477€ gross, which is also below Montenegro’s. The highest are in Luxembourg, the Netherlands, Ireland, and Germany, all exceeding 2.000€ gross. If we look at minimum wage in purchasing power standards, that of Montenegro is slightly higher than in four EU member states: Slovakia, Estonia, Latvia and Bulgaria. Despite this progress, questions remain unanswered about how many workers are stuck at minimum wages in Montenegro. For instance, in 2023, average annual net earning equal to 28.217€ in the EU, while in Montenegro, this statistic equaled 9.503€, which is three times lower than in the EU.

Another critical factor is the unemployment rate, which shows the economic opportunities available to citizens. In July 2024, Montenegro’s unemployment rate stood at 11,07%, while at the same time, the EU’s was 6,0%, which is almost twice as low as in Montenegro.

While Montenegro has made progress and even slightly outperforms some EU member states in certain socioeconomic indicators, it remains notably behind the EU average – especially when compared to the bloc’s most developed nations. Closing this gap is crucial for Montenegro’s future and its path to full integration into the European Union.

Related posts

Mitchell in WB: Kosovo to form army, Macedonia and Greece to reach agreement

Katarina Anđelković

The MPs agree: A permanent peace and a stable agreement between Kosovo and Serbia

EWB

Liberals in the EU should turn enlargement into a success of the European project

Loïc Tregoures