Montenegro Country Economic Memorandum - Towards a resilient growth strategy - Leveling the playing field for all entrepreneurs in Montenegro

Jul 19, 2026

Montenegro Country Economic Memorandum analyzes how regulatory barriers, one-sided policy implementation, and weak enforcement shape product-market competition and productivity. It identifies entry constraints driven by public ownership, administrative burdens, and sector-specific limits across electricity, transport, legal services, energy, and retail trade. The memorandum assesses how investment incentives, public procurement transparency, and antitrust capacity affect a level playing field, and proposes policy options to strengthen competition and support resilient growth.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages58

Reading Time2 h 26 min

Introduction

Regulatory barriers to entry in Montenegro

One-sided implementation and enforcement of policy undermine competition

Policy options

Annex 1 Overview of the Product Market Regulation Methodology

Annex 2 Breakdown of the Services and Trade Restrictions Index

Annex 3 Para-fiscal charges case studies assumptions

Public Disclosure Authorized Public Disclosure Authorized The note is embargoed under agreement with the Organization for Economic Co-operation and Development (OECD) . The Product Market Regulation (PMR) results included in this note are current as of March 2022 and may be updated by the OECD. To reuse graphs and boxes, please contact Zeina Alsharkas. Montenegro Country Economic Memorandum: Towards a resilient growth strategy Leveling the playing field for all entrepreneurs in Montenegro: recommendations for a comprehensive competition policy -Background Note Lead Author: Zeina Alsharkas with contributions from Cesar Borja Galan Santos, Olga Sipka, and Jelena Jovovic Table of Contents Introduction................................................................................................................................................... 4 1. Regulatory barriers to entry in Montenegro are driven by public ownership, administrative burdens, and barriers to electricity, transport, and legal services sectors .................................................................... 8 1.1. Montenegrin firms face more restrictive regulatory barriers to competition than their peers in the region................................................................................................................................................... 9 1.1.1. Public ownership in Montenegro extends to commercial activities, providing SOEs with preferential treatment in comparison to private companies................................................................. 11 1.1.2. Although regulatory processes are more simplified in Montenegro compared to its peers, gaps exist in stakeholders’ engagement .............................................................................................. 14 1.1.3. Despite improvements, the PMR index reflects more cumbersome processes for business start-ups in Montenegro compared to its peers.................................................................................... 17 1.2. Obstacles to competition in key sectors exist mainly in legal services, transport, and energy sectors 19 1.2.1. The energy sector is more restrictive in Montenegro than in its peers, and it could benefit from more competition in segments where private sector participation is viable ............................... 19 1.2.2. The transport sector restrictions are driven by those found in rail, air, and water transport21 1.2.3. Lawyers and notaries face the highest restrictions among professional services providers, while architects and civil engineers face some restrictions ................................................................. 23 1.2.4. Retail trade restrictions limit the number of suppliers and discriminate against smaller players 25 1.2.5. Montenegro’s trade and investment framework discriminates against foreign firms in certain product markets ....................................................................................................................... 28 1.3. Restrictions to trade in services form barriers to trade and investment in Montenegro, which lowers productivity.................................................................................................................................. 28 1.4. Para-fiscal charges reflect great uncertainty and discretion across municipalities, which creates additional administrative burdens on firms ............................................................................................. 30 2. One-sided implementation and enforcement of policy undermine competition ................................. 33 2.1. The Law on State Aid Control has not been rigorously enforced............................................... 33 2.2. Discriminatory investment incentives undermine a level playing field for competitors in the same industry ...................................................................................

FAQs

What main factors drive regulatory barriers to market entry in Montenegro?

Barriers stem from public ownership, administrative burdens, and sectoral constraints in electricity, transport, and legal services, which make competition more restrictive for domestic firms than for regional peers.

How does policy implementation and enforcement affect competition?

One-sided enforcement weakens competition through insufficient rigor in state aid control, discriminatory investment incentives, limited competition and transparency in public procurement, and inadequate implementation capacity and resources.

Which sectors are highlighted as having the strongest competition obstacles?

Electricity/energy, transport (rail, air, and water), professional services including legal services (lawyers and notaries), and retail trade are identified as key areas where restrictions reduce supplier variety and disadvantage smaller players.

Jul 19, 2026

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