This issue was discussed at a meeting between Prime Minister Alexandru Munteanu and Robert Saum, the World Bank’s Regional Director for Eastern Europe. The talks focused on ensuring the sustainability of public finances and finding solutions that could directly contribute to growth in real household incomes.
In particular, they discussed the tax reform, which is currently in the public consultation phase, as well as measures needed to strengthen the sustainability of public finances.
“The parties discussed the technical support the World Bank could provide to assess the impact of the reforms, the phased implementation of tax changes, and the analysis of compensatory measures to ensure they contribute to the growth of real household incomes,” the government statement said.
In addition, they touched on the preparation of a new Partnership Framework with the Republic of Moldova for 2027–2031, which will aim to reduce poverty, stimulate economic growth, and bring the country closer to European Union standards.
The Importance of Additional Measures
During the same period, Finance Minister Andrian Gavrilita also held a meeting with Robert Saum, the World Bank’s Regional Director for Eastern Europe. They discussed tax policy for the coming year, adjustments to the public sector wage system, and reform priorities in the context of the European integration process.
During the discussions, the Minister of Finance emphasized the importance of additional measures to complement tax policy, aimed at ensuring real income growth for the majority of the population. According to Gavrilita, the partnership with the World Bank is strategic in nature, and the expertise and support provided help strengthen public finances and implement the reforms necessary to bring the Republic of Moldova closer to European Union standards.
It should be noted that the tax reform proposed by the government has drawn criticism from labor unions, the opposition, and even some government officials. Among the most controversial measures is a change to the reduced VAT rate, primarily for the healthcare and agriculture sectors. According to critics, this could lead to increased costs for both businesses and consumers. Dissatisfaction with the reform resulted in a protest outside the parliament building, during which participants demanded that the draft—which is currently in the public consultation phase—be revised.
