This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of July 6-August 5, 2015. Montenegro’s budget deficit increased by 50.5% y/y to €117.9mn in the first half of 2015 as spending grew faster than revenue. At the same time, Montenegro public debt totalled €1.96bn at end-March, equalling 57.8% of the full-year GDP forecast. Montenegro should receive around €253.5mn from the European Union under its Instrument for Pre-Accession Assistance (IPA II) for cross-border projects by 2020. Italy’s A2A has agreed with Montenegro’s government to further extend the temporary agreement, under which it is managing power utility EPCG. Montenegro’s parliamentary committee for economy, finance and budget approved the draft bill on consumer bankruptcy, proposed by the Liberal Party. Key points: • The number of foreign tourists visiting Montenegro increased by 11.4% y/y to 163,294 in June, speeding up from a 6.4% y/y rise in May • Industrial output rose 29.7% y/y in June, after staying flat the month before, boosted by growth in all sectors • Unemployment rate stood at 13.54% as of August 3 • Bank assets rose 7.7% y/y to €3.24bn at end-June, slowing from an 8.2% annual growth the month before