Economists comment on president’s instruction to cheapen bread

“These measures have certainly been demanded since long ago,” economist Iurie Gotisan comments the president Vladimir Voronin’s demand to reduce the price of bread. “The fact that they occur during the electoral campaign, in my opinion, would serve as a reason for many speculations about the announced intentions. Finally, they could be a strategic movement of the authorities and why not capitalize it, if there is such a possibility,” the analyst said, when asked by Info-Prim Neo. “Revising the prices pastry is welcome, especially because the last year’s harvest allows such measures easily. The official statistics show that the weight of food in the consumer basket is 35-40%. In towns this even surpasses 45%,” Gotisan said. “It is evident that reducing prices on bread will positively affect the poorest classes of people,” the economist said. According to Anatol Caslaru, the editor-in- chief of the economic magazine “Eco,” it is inadmissible for the president to give instructions to reduce the prices on the products of any company. “If the state wants to cheapen certain products, it could organize tenders in which it would select companies to whom they could offer money, wheat or flour, but again, the problem is about possible unfair competition.” Anatol Caslaru does not exclude that the president’s attempt would have an electoral tint “because it is not for the first time when the Government operates modifications of prices certain political forces would benefit from.” On Tuesday, January 20, president Vladimir Voronin asked for cheapening, by 20 %, the most demanded kinds of bread starting February 1. The president’s press service does not specify the names of the companies which were given these indications to, but analysts do not exclude the Franzeluta bakery. Info-Prim Neo’s reporter has learnt from the anti-chamber of the Franzeluta Bakery that the director was not immediately available to comment the president’s instruction.

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