Montenegro closed 2025 navigating a mix of progress toward European Union membership, economic headwinds and political sensitivities after a year marked by diplomatic shifts, structural challenges and contested domestic issues.
Montenegro continues to be seen in Brussels as one of the frontrunners among Western Balkan EU candidates, with EU officials projecting that accession negotiations could be concluded by the end of 2026 if reforms are sustained and benchmarks are met. Brussels has highlighted Montenegro’s progress relative to neighbours, even as Serbia’s negotiation pace remains slower.
On the economic front, the country posted moderate growth of around 3.2 percent in 2025, supported by private consumption and investment, after rebounding from post‑pandemic gains. However, long‑term challenges persist, including a weakening fiscal position, rising inflation and reliance on a narrow economic base dominated by tourism and services. The International Monetary Fund warned that Montenegro’s fiscal deficit could widen further without additional measures to contain expenditure and bolster revenues.
Montenegrin policymakers sought to strengthen fiscal resilience, securing substantial reserves for 2026–2027 to buffer against external shocks and demonstrating a commitment to macroeconomic stability. Parliament concluded debate on the 2026 budget late in December, with officials projecting continued GDP growth driven by domestic demand.
Infrastructure and regional integration remained priorities. Montenegro secured around €350 million from the European Bank for Reconstruction and Development and the EU to upgrade key transport links, including the Bar–Andrijevica highway — part of efforts to enhance connectivity and economic cohesion.
On foreign policy, the government reversed a temporary suspension of visa‑free travel for Turkish citizens in late December, reinstating a shorter stay regime following earlier unrest linked to violent incidents in the capital. Authorities cited improved cooperation with Ankara and enhanced security protocols, underscoring the balancing act in managing bilateral relations along with EU accession standards.
Domestic political dynamics have also been delicate. Debates over major foreign investment deals earlier in the year sparked opposition from environmental groups and political figures, highlighting divisions over development priorities and governance transparency.
Despite economic and reform challenges, Montenegro’s leadership maintained its stated goal of joining the EU by 2028, with President Jakov Milatović urging that the accession process be leveraged to strengthen democratic institutions and governance.
As 2026 begins, Montenegro faces the task of pressing ahead with structural reforms to sustain growth, deepen economic diversification and meet EU accession criteria, while managing the political sensitivities that accompany rapid change in a small, strategically located nation.