This is a difficult dilemma, but Moldova’s ability to move into a new phase of development, improve the efficiency of public administration, and create the conditions for sustainable economic growth will largely depend on how it is resolved.
Therefore, right from the start of the government’s work, it is important to identify the key areas requiring consistent and prompt decisions. In my view, it is precisely by focusing efforts on the most important tasks that Vasile Tofan’s government will be able to achieve tangible results and lay the foundation for positive change in the country. I identify five such priorities.
Stabilizing public finances
In my view, the most serious challenge for the new government will be stabilizing the public finance system.
To do this, it will likely be necessary to review the structure of government spending, optimize budgetary expenditures, and temporarily restrict certain types of spending and decisions—ranging from hiring new employees in government agencies to specific government procurements.
Without such measures, it will be extremely difficult to create the conditions for financial stabilization.
Public Debt Management
The second most important priority should be addressing public debt. In my view, the government should begin negotiations with external partners regarding a possible restructuring of external obligations and should also review the terms of domestic government borrowing. Such an approach could reduce the debt burden on the budget.
Today, public debt has already reached 143 billion lei, and debt service costs continue to rise. In 2027 alone, the Republic of Moldova will have to allocate approximately 6 billion lei just to pay interest on previously borrowed funds.
A Balanced Fiscal Policy
Another important task will be to prepare budget and tax policies for the coming year. These policies must strike a reasonable balance between the need to replenish budget revenues and the ability of citizens and businesses to meet additional tax obligations without significantly harming economic activity.
Improving the Business Environment
I consider the fourth priority to be the revision of the regulatory framework governing business activities. We must eliminate administrative barriers and excessive restrictions that hinder business development. Without creating a more favorable regulatory environment, it will be difficult to talk about a full-fledged economic recovery and stimulating investment.
Implementing Structural Reforms
The fifth key task should be the launch and consistent implementation of reforms in various areas—from the system of public administration to the pension system. Many of these changes may prove challenging and require significant effort; however, without them, it will be difficult to achieve long-term stabilization in the country and create the conditions for further development.
Undoubtedly, the new government will also face a number of other serious challenges. However, it is precisely these areas, in my view, that require priority attention.
The effectiveness of Vasile Tofan’s government and the prospects for the Republic of Moldova’s further development will largely depend on how successfully these tasks are implemented.
Mircea Baciu,
entrepreneur from the Republic of Moldova
