The European Union has entered a phase of extremely complex behind-the-scenes negotiations. By the end of the year, the bloc’s leaders must resolve their differences on two strategic issues: the approval of the seven-year budget for 2028–2034 and the appointment of a successor to Christine Lagarde as head of the European Central Bank (ECB). The situation is complicated by personnel changes within the regulator itself and disputes over linking the EU budget to financial aid for Ukraine.
WASHINGTON, DC—The grandiose claim that “Britannia rules the waves” inspired the wry quip that, in fact, Britannia waives the rules. While the pun was meant as a putdown, waiving rules can be a prudent decision.
The People’s Bank of China has been increasing its gold reserves for two years running. In October, it purchased a further 25.8 tonnes of gold, even though prices for the precious metal fell by almost 7 per cent over the month and dropped below $4,000 per ounce for the first time in a long while.
The National Bank of Moldova’s (NBM) decision to tighten monetary policy has drawn criticism. Experts have long harboured serious doubts about the appropriateness of such actions in the current circumstances. The Cabinet of Ministers has come to the NBM’s defence. The conflict between the regulator’s traditional tight monetary policy and the real needs of a developing economy is escalating.
The government led by Vasile Tofan has managed to unblock the fiscal policy for 2027, attract new European funds and begin reforming the state apparatus; however, economic recovery remains, for the time being, merely a target, whilst inflation, the budget deficit and the vulnerabilities of public systems continue to exert pressure.
The central bank has moved to tighten monetary policy sharply. At its meeting on 5 November, the Executive Committee of the National Bank of Moldova (NBM) raised the base rate by 2 percentage points in one go. The interest rate hike also affected other operations. The decision was driven by mounting inflationary pressures and growing risks to price stability in the medium term.
In the European Commission’s (EC) published progress report on the Republic of Moldova, the national financial system received an overall positive assessment for its alignment with European standards. However, Brussels highlighted a number of vulnerabilities in fiscal policy. EC experts warned that the tax changes planned by the Moldovan authorities may not generate the expected revenue to cover rising expenditure on public investment and public sector wages.
The National Bank of Moldova (NBM) has imposed a fine of over 9.3 million lei on a non-bank credit institution. This is the largest financial sanction recorded in the NBM’s public register for non-bank credit institutions for the period 2024–2026.
The National Trade Union Bloc of Romania (BNS) is proposing to raise the minimum wage to 4,652 RON (around €871) per month from 1 January 2027. This is €61 more than the current level. According to trade union figures, around 1.4 million workers, or 27 per cent of all employees in the country, earn the minimum wage or €14 more.
Moldova’s negotiating position on the section concerning economic and monetary policy does not envisage a transitional phase on the path to the European Union. Public consultations on this chapter took place today at the Ministry of Finance, with the participation of the National Bank of Moldova (NBM) and other stakeholders. By the end of 2027, the country will be fully prepared, from a legal perspective, for the integration of the financial systems, as promised by the ministry.
