Montenegro experienced significant political change following presidential and parliamentary elections in 2023. Longtime leader Milo Đukanović was defeated by Jakov Milatović, and a new government was formed after prolonged coalition negotiations. While parliamentary functionality improved, political polarization persisted.
Economic performance stabilized after the pandemic. GDP per capita growth remained moderate, and the government advanced selected reforms in environmental protection and social policy. The second phase of a labor and social policy reform package increased wages and pensions but contributed to inflation and lacked a coherent strategic framework.
Governance improved through overdue judicial appointments and anti-corruption reforms, enabling progress in EU accession talks. However, legislative procedures often sidelined civil society. Tensions with Croatia temporarily hindered regional cooperation and EU negotiations.
