Governor Radović in Brussels: SEPA, TIPS and Regulatory Reforms Accelerate EU Integration and Enhance Competitiveness
13/05/2025
The CBCG Governor, Irena Radović, participated in the Economic and Financial Dialogue with the European Union today in Brussels, chaired by the Ministers of Economy and Finance of Poland, Denmark and Cyprus - the countries that currently preside over the Council of the European Union and the Commissioner for Economy and Productivity, Valdis Dombrovskis.
This year’s dialogue brought together senior officials and representatives of EU partner states, the European Commission and the European Central Bank, to exchange opinions on key reform agendas and economic harmonisation with the EU.
“The participation of the CBCG at today’s EFD, at a high level in Brussels, confirms our strong commitment to European integration and economic convergence with the EU. We especially appreciate the constructive dialogue with the EC, ECB, and other partners, as well as the support we receive through joint recommendations and technical cooperation. This platform enables the harmonisation of policies and accelerates reform processes in key areas for monetary and financial stability,” said Governor Radović.
The meeting topics included discussing Joint Conclusions with the recommendations of the European Commission, which identify reform priorities aimed at strengthening macroeconomic stability, improving competitiveness and accelerating the process of economic convergence with the EU.
As the governor of a candidate country that uses the euro without formal membership in the euro area, Governor Radović highlighted the Montenegrin authorities’ active efforts to simultaneously respond to external shocks and accelerate convergence with the EU. In the current geopolitical context, euroisation brings stability and predictability, which are key advantages for investing in a time of global fragmentation.
Governor Radović presented the concrete steps of the CBCG to modernise the financial sector and integrate Montenegro into the European financial ecosystem significantly before formal membership in the EU.
“We have achieved one of the most important goals - Montenegro’s accession to the SEPA area in November 2024. We are fully preparing our banking sector to start the first SEPA transactions as soon as possible, by this October. On 19 May, we will start online clearing by the ISO 20022 standard, while we plan to launch the national instant payment system through the European TIPS Clone in July 2026,” said Governor Radović.
These reforms, aimed at developing cashless payments and digital infrastructure, significantly contribute to greater competitiveness, faster flow of capital and better inclusion of Montenegrin citizens and the economy in modern financial flows.
According to the CBCG’s internal assessment, SEPA and instant payments could bring an annual benefit of some 160 million euros or 2.3% of GDP, with a visible contribution to improving the living standard and strengthening the Montenegrin economy’s competitiveness.
These effects are expected to help reduce the income gap with the EU by 11 percentage points, i.e., increase the income per capita by an additional 2,538 euros in the next ten years, only from the implementation of the SEPA and TIPS systems. CBCG remains committed to further strengthening the regulatory and supervisory framework, modernising the payment system, and ensuring full compliance with the EU acquis in financial services.
During her stay in Brussels, Governor Radović met with Marjan Šarec, the European Parliament’s rapporteur for Montenegro. At the meeting, the CBCG highlighted its determination to intensively address key economic challenges and speed up the reform process, intending to strengthen Montenegro’s European perspective further.
The CBCG delegation also met with Valentina Superti, director for the Western Balkans in the General Directorate for Enlargement and Eastern Neighborhood (DG ENEST) and Adele Marsullo, representative of the Cabinet of the European Commissioner for Enlargement, Marta Kos. At the meeting, they discussed the main priorities of the CBCG in European integration, including regulatory harmonisation, institutional transformation and effects on modernising the Montenegrin financial system from the point of view of contribution to economic convergence. Special attention was paid to preparing the CBCG for future European System of Central Banks (ESCB) membership.
Representatives of the European Parliament and the European Commission strongly supported the CBCG’s activities and confirmed the importance of continuous dialogue and technical cooperation.
“We are encouraged that the quality of the work of the Central Bank of Montenegro and the importance of our contribution in the accession process have been recognised in all the meetings in the European Commission and the Parliament,” said Governor Radović.
“We continue to build a stable, transparent and European-compatible financial system - in the interest of Montenegro’s citizens and its sustainable development. The CBCG remains firmly committed to implementing the recommendations of the European Commission, the European Central Bank and Eurostat, to accelerate European integration and further harmonise our institutional and operational framework with the ESCB standards,” Governor Radović said.
Governor's statement to the media in Brussels
Statement by Governor Radović to Montenegrin media from Brussels