News about Macroeconomics

The Social Democratic Party of Romania (PSD), the largest political force in the country’s parliament, has nominated its leader, Sorin Grindeanu, for the position of prime minister.

Excessive thrift has become the new norm, turning into a serious barrier to economic growth on the European continent. The inflationary shock of recent years has inflicted a much deeper psychological trauma on Europeans than on Americans, forcing them to resort to self-restraint and saving at the expense of consumption.

The Republic of Moldova ranks 64th out of 120 in the World Economic Forum’s Energy Transition Index 2026.

Gold fell below $4,000 per ounce for the first time since last November, while silver broke through the $60 mark. Precious metals came under pressure from a strengthening dollar and growing expectations of a tighter monetary policy by the U.S. Federal Reserve.

Venezuela is undergoing the largest debt restructuring in its history as it prepares to officially recognize its national debt of approximately $240 billion. This step became possible following a change in government and the removal of President Nicolás Maduro, which paved the way for the lifting of international sanctions and the start of negotiations with creditors. The investment bank Centerview Partners was brought in to develop a plan to return the national debt to a sustainable level.

Germany plans to further raise the retirement age to balance the system in light of its aging population. By the end of the century, the retirement age could rise to 70. These plans are currently under active discussion. The government plans to approve a bill, but it must pass through all stages of parliamentary approval, which has drawn harsh criticism from labor unions.

In May, Moldova’s foreign exchange market saw a decline in trading volumes, reflected in a 16% drop in net demand from companies. At the same time, 91.1% of the net demand from economic agents (legal entities) was met by supply from individuals. The National Bank publishes data on foreign exchange market conditions, noting that it did not intervene in the market during the reporting month.

Despite a significant slowdown in economic growth in the first quarter of the year (+0.4%), the central bank nevertheless identified a host of pro-inflationary factors and made the fight against inflation its top priority.

The frequent turnover of prime ministers is increasingly becoming one of the main signs of systemic difficulties in the United Kingdom. Keir Starmer’s resignation, less than two years after a convincing victory in the general election, was yet another sign of the growing crisis of confidence in the country’s political leadership.

According to information from the Ministry of Finance, Moldova’s external public debt balance as of the end of April 2026 had increased by $151.7 million (+3.2%) since the beginning of the year, reaching approximately $5 billion. Of this amount, 93% consists of loans from the European Commission, to which Moldova’s debt has increased ninefold over the past five years.

On Monday, the Romanian parliament rejected Prime Minister Adrian Vestea’s nomination, prolonging months of political instability in the country and increasing the likelihood of early elections if the government’s second candidate also fails to win the support of lawmakers.

The proposed changes to the 2027 tax policy are raising more and more questions and comments. Ion Sturza, former Prime Minister of Moldova (1998–1999), has also shared his views on social media. Here are his main points.

British Prime Minister Kir Starmer announced his resignation and his departure as leader of the Labour Party in a special address delivered before entering his residence.

The Liberal Democratic Party of Moldova (LDPM) has prepared an analytical report “Causes of the Tax Burden in 2027 and Its Consequences for the Population and the Economy,” in which it examines the reasons that led to the adoption of the new tax policy for 2027, as well as the consequences it may have for the economy of the Republic of Moldova, the business community, and the country’s population.

The Federation of Public Service Workers’ Unions (SINDASP), which represents the interests of more than 16,000 union members, expresses its concern and disagreement with the bills concerning the reform of tax, customs policy, and the wage system. The organization notes that, in addition to reducing pay scales and cutting a number of wage supplements, the government is blocking collective bargaining and restricting workers’ labor rights.

Housing costs remain the largest expense for European households, but rent prices vary significantly—from the relatively affordable capitals of the Balkans to record-high prices in Switzerland and the United Kingdom.

There are approximately 170,000 public sector employees in Moldova. The Ministry of Finance assures that most of them will receive a salary increase ranging from 10% to 30% starting September 1, 2026. The main increases will apply to employees in the education, healthcare, social protection, national defense, and public order sectors.

Germany’s government budget deficit is projected to rise to 5% of GDP in 2027, according to data from the Ifo Institute for Economic Research.

Spain will direct tourists to less-visited regions to ease the strain on popular resorts. The country expects tourist arrivals to reach 100 million during the 2026 season.

These days (June 18–21, 2026), finance ministers and central bank governors from the member countries of the Belgian-Dutch subgroup of the IMF and the World Bank have gathered in Varna, Bulgaria. The main goal of the meeting is to turn uncertainty into long-term opportunities for regional economies. Anca Dragu, Governor of the National Bank of Moldova, held a series of bilateral meetings with finance ministers and senior IMF officials during the forum.