Mr Luksic became prime minister on December 29th, when his government received a vote of confidence in parliament. Earlier, the dominant partner in the ruling coalition, the Democratic Party of Socialists (DPS), had formally endorsed Mr Luksic's nomination. Although Mr Luksic is only 34 years old, he has been regarded as Mr Djukanovic's chosen successor for a number of years, and that position was reinforced by his promotion to the post of deputy prime minister in charge of international economic co-operation in 2008, while retaining the finance portfolio. Although Mr Luksic's succession is believed to have been blocked for several years by a number of senior DPS figures, including the Montenegrin president, Filip Vujanovic, and the DPS deputy chairman, Svetozar Marovic, it was reported in the Montenegrin media in recent months that Mr Djukanovic had finally been able to overcome their opposition.

To ensure a smooth succession Mr Djukanovic, who is relatively young at the age of 48, has retained the key position of DPS chairman, and Mr Marovic remains his deputy. However, there is no place in the new streamlined government formed by Mr Luksic for Mr Marovic, who was a deputy prime minister under Mr Djukanovic. The exclusion of Mr Marovic will make it easier for Mr Luksic to assert his leadership of the new government. The new prime minister can also expect to enjoy the continuing support of Mr Djukanovic in the face of any possible challenges to his authority.

Mr Luksic has trimmed the government from 24 members to 18, reducing the number of deputy prime ministers from three to two and the number of ministers without portfolio from two to one. In order to increase efficiency, he has got rid of some duplication of functions by abolishing ministries or ministerial responsibilities for specific portfolios that are within the remit of the two deputy prime ministers: Dusko Markovic, who is in charge of justice, and Vujica Lazovic, who is in charge of information society and telecommunications. Among the other changes that Mr Luksic has put in place, the previously separate ministries of foreign affairs and European integration have been combined under the incumbent foreign minister, Milan Rocen.

On forming his government, Mr Luksic promised a policy of continuity, focusing on implementing measures required by the EU before Montenegro can open EU accession talks. Mr Luksic, who is an economist by profession, outlined ambitious plans to return the budget to a surplus in 2012, and he said that the government will put in place structural reforms to improve healthcare, education and social welfare. He is also expected to accelerate the fight against corruption and organised crime, which made little progress under Mr Djukanovic, who himself faced an investigation in Italy in the early 2000s over alleged involvement in cigarette smuggling dating back to the 1990s.