Finance minister rejects populist subsidies as fuel rises
Moldovan Finance Minister Andrian Gavriliță announced that the government will not implement general compensation measures despite rising food and fuel prices. Instead, authorities will provide targeted support to vulnerable groups and critical sectors.
The shift to a new economic normal
The Minister emphasized that rising costs represent a "global adjustment" to which the local market must adapt. With fuel prices nearly doubling, transport-dependent production costs are inevitably increasing across the board.
"We are getting used to a new normal," Gavriliță stated. He noted that while the adjustment is painful, general subsidies would place unsustainable pressure on the national budget and future generations.
Targeted aid over blanket relief
The government is prioritizing the agricultural sector and inter-urban passenger transport. These are viewed as high-impact social services for low-income citizens. The Minister warned that debt-financed relief would ultimately hurt pensioners and public employees.
Finance officials argue that universal tax cuts or subsidies often benefit those who can already afford higher prices. Therefore, any intervention must be surgically precise to maintain fiscal discipline.
Inflationary pressures and market warnings
Agriculture Minister Ludmila Catlabuga previously warned that food products could see price increases of up to 10%. The Competition Council remains on high alert to intervene in cases of unjustified price hikes or market manipulation.
Recent data from the National Bureau of Statistics shows inflation remains on an upward trend. While annual inflation stands at 5.8%, food prices have risen by over 6% in the last 12 months.
Economic outlook and stability
The National Bank of Moldova (BNM) expects a temporary acceleration of prices toward the end of the year. However, the central bank anticipates a gradual slowdown in the growth rate following this peak.
Current statistics indicate that while consumer prices have risen by 2.7% since the start of the year, the overall trend shows signs of gradual tempering.
Translation by Iurie Tataru
