Expert-Grup: Seven priorities for the next Government
The economy of the Republic of Moldova can no longer rely on a consumption- and remittances-focused model. The future government must prioritize seven crucial economic reforms. This conclusion comes from an analysis published by Expert-Grup, which warns that the structural problems within the economy are becoming increasingly urgent and cannot be postponed any longer.
According to experts, the Republic of Moldova is entering a new political cycle at a time when significant issues regarding the management of public resources and state-controlled enterprises have arisen.
An analysis indicates that the current economic development model has reached its limits. Over the past decade, Moldova's economy has experienced average annual growth of only 2.2%, half the rate seen from 2004 to 2013. Meanwhile, the employment rate remains the lowest in Europe, absolute poverty levels exceed 33%, and the structural budget deficit ranges between 4% and 5% of GDP.
In light of these challenges, Expert-Grup proposes seven key reform directions for the new government. The experts recommend improving the collection of budget revenues without necessarily raising tax rates. They also advocate for increasing public investments to exceed the current level of 3.3% of GDP.
Additionally, the organization promotes the development of a functional capital market, granting greater fiscal autonomy to local public authorities, focusing exports on products with higher added value, investing in workforce training and salaries, and implementing real reforms in state-owned enterprises.
In conclusion, Expert-Grup warns that these reforms will not achieve the desired outcomes without clear rules and the depoliticization of the state’s management and allocation of economic resources.
