GENERAL FRAMEWORK OF POLICIES AND GOALS
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I.— Strategic Framework of Economic Policy

Strategic orientation of the Economic Policy for 2008 is joining the EU system and Euro-Atlantic integrations.

Openness of the Montenegrin economy and connecting it with the EU system represent an external anchor which directs the Economic Policy towards the increase of competitiveness of economy on the basis of use of domestic resources and creative potentials of economy and society. Continuous inflow of foreign direct investments and incentives for domestic investments are recognized as pillars of economic development. Long-term stable and competitive economy of predictable rules of the game are the guarantor of the genuine market economy based on free exchange of ownership rights.

In that framework, key strategic development priorities are:
 Implementation of sustainable development principle, accompanied by the growth of economic freedoms and strengthening of the private sector role;
 Strengthening of the rule of law as a precondition for building modern institutions of parliamentary democracy and protection of basic human values and rights; and
 Improvement of standard of living through offering better quality of public services, through efficient and sustainable systems of education, health and social care.

II.— Economic Policy Basic Assumptions

During 2008, the preparation of the National Development Plan of Montenegro is planned as to establish the macroeconomic framework, goals and directions of the development of Montenegro in the long run, and within this framework to summarize and make sectoral development policies consistent.

Economic Policy for 2008 in fact is based on:
 Economic and Fiscal Program for Montenegro 2007-2010 that is prepared by countries that concluded the on Stabilization and Association Agreement and have no status of a candidate;
 Strategy for suppression of poverty and social exclusion;
 Strategy for development of information society;
 Strategy for reform of state administration in Montenegro from 2002 to 2009;
 Education Reform Agenda;
 Revised Strategy for Regional Development of Montenegro;
 National Strategy for Sustainable Development and Sectoral Development Strategies.

In this framework, the concept of the Economic Policy for 2008 is also based on:
 Achieved degree of transformation of economic system in respect of its compatibility with EU system and phased progress in the process of joining the EU;
 Performance of economic system with dynamic economic growth in the conditions of macroeconomic stability;
 Strengthening of the share of private sector in the structure of economy;
 Impact of global trends in the world economy on the open system of Montenegrin economy.

III.— Goals of the Economic Policy

Overall goal of the Economic Policy for 2008 is strengthening of competitiveness of economy and increase of standard of living. Individual goals of Economic Policy for 2008 are as follows:
1.— Dynamic economic growth;
2.— Commencement of construction of infrastructure facilities in the area of energy, transportation, water supply, solid waste and wastewaters;
3.— Development of the Northern region;
4.— Promotion of public private partnership model;
5.— Improvement of institutional framework for business development.

Economic policy of Montenegro for 2008