The Government will help the citizens to cope with the high food prices by increasing incomes, assured PAS MP Radu Marian. According to him, the state already offered considerable support to the citizens by increasing pensions and salaries and by offering subsidies for the higher natural gas rates in the cold period of the year. For their part, economic experts say the rate of inflation in Moldova is high because most of the products are imported, IPN reports.

Representatives of the business community note the high food prices are a consequence of the inaction of all the governments that didn’t invest in agriculture and the processing industry.

”We are an agrarian country and if the government focuses more on this sector, the prices will be different. They should start by excluding schemes applied with regard to food products, until these reach shop shelves. All the intermediaries should be removed and direct connection with the producer should be established. The producer should discuss directly with representatives of shops,” businessman Valentin Eșanu stated in the talk show “Shadow Cabinet” on JurnalTV channel.

Economic experts admit that the food prices are soaring because most of the products are imported. According to them, the reduction of VAT will lead to the collection of lower amounts into the budget, but the inflation processes will not be stopped.

“The import prices are the main cause of inflation in the Republic of Moldova. Most of the amounts collected into the state budget come from the value added tax. The cold period is coming and the pensions next year will need to be indexed by 25-30%. If we reduce VAT, where will we collect money from? Even if the VAT is reduced, this will not stop the rise in prices. It would be a decision with a short-term political impact, but this will not change the inflationist tendencies,” said economic expert Alexandru Fală.

The representatives of PAS blame the inaction of their predecessors for the bad situation in the country. According to them, the state will help the citizens to cope with the wave of price increases by raising pensions and salaries.

“Prices have grown considerably not only in our country, but all over the world. It is a consequence of the war in Ukraine, of the weakening of the economy and of production capacities. But we are affected the most because we are a country with reduced incomes. The Government can apply two instruments – to increase the population’s incomes and to support the business community. We raised the pension by 900 lei a month and limited the profit margin on over 20 products. We offered support to pay the energy bills and provided by 3,500 lei in assistance to each household. The minimum salary in the public sector was raised by 60%, while the number of medicines offered free of charge was increased by 40%. We inherited a house without windows and with damaged walls. Changes cannot be made overnight,” stated PAS MP Radu Marian.

On Thursday, Minister of Labor and Social Protection Marcel Spatari said the Government will soon approve a mechanism for reducing energy vulnerability. It is a targeted program of subsidies for natural gas, electricity and heat.