Due to the slow implementation of reforms, energy dependence, high corruption and serious problems in the judicial system, Moldova failed to achieve economic growth rates at the level of its potential - Dumitru Budianschi.
This was stated by the Minister of Finance of our country in an interview with the German bank KfW (Kreditanstalt für Wiederaufbau). He noted that EU convergence brings economic benefits through access to a large market with high and stable purchasing power. At the same time, the European development model is the best option for creating conditions for improving the living standards and well-being of our country's citizens. According to him, Moldova is guided by the democratic principles, values and good governance practices established in the EU, and the EU supports Moldova in improving the governance of state institutions through financial and technical means. Moldovan society is highly divided, but the majority share European values. Dumitru Budianschi recalled that the EU offered our country timely expert and financial support during the COVID-19 pandemic. Last year, the EU adopted the Plan for Economic Development and Recovery of Moldova, which provides assistance in the amount of up to 600 million euros over the next 3 years. To help Moldova cope with the energy crisis at the end of 2021, the EU offered expertise and a €60 million grant. The Minister of Finance noted that the implementation of the Deep and Comprehensive Free Trade Agreement between Moldova and the European Union (DCFTA) had a very positive impact on the Moldovan economy. For example, the export of Moldovan companies to the EU increased by more than 61% in 2019 (one year before the pandemic) compared to 2013, while the share of Moldovan exports to the EU in 2020 was 66.5%. DCFTA also allows to expand opportunities for investors from European countries. Now they account for 67.5% of all direct investments in Moldova. Dumitru Budianschi emphasized that Moldova has introduced a reliable banking sector regulation system. The country has also made significant progress in preventing and combating money laundering and terrorist financing. At the same time, speaking about the biggest problems in adapting to EU standards, the head of the Ministry of Finance noted that due to the slow implementation of reforms, energy dependence, but, above all, high corruption and serious problems in the judicial system, our country failed to achieve growth rates at its potential level, and an average annual growth of less than 3% exacerbated the gap with the EU countries. Concerning the next steps in the transformation process, Dumitru Budianschi noted that a new association agenda for the next 7 years is currently being prepared, and this document will set out short- and medium-term priorities for cooperation and reforms in all areas covered by the Association Agreement. According to him, Moldova will speed up reforms in the field of the rule of law and the fight against corruption. The transformation of the judiciary into a corruption-free, accountable and truly independent system, he called a necessary condition for unlocking the potential for growth. “Public administration needs to be modernized by effectively implementing the principles of good governance and strengthening the capacity of public institutions. Key areas of the reform include public finance management, tax and customs administration, public investment management, public procurement, remuneration of civil servants and employees of state-owned enterprises. The implementation of these reforms is critical to improve the efficiency of the public sector, improve the provision of public and utility services, and ensure inclusive and sustainable growth,” the head of the Ministry of Finance emphasized. He also drew attention to the fact that Moldova has serious problems with energy security, and without solving this problem, economic development will remain extremely limited, which will negatively affect the living conditions of the population and, in general, the socio-political situation in the country.// 28.03.2022 — InfoMarket
