Given that inflation is Moldova is close to 30% and this is the second record high on the European continent after the inflation rate in Turkey, the government has short, medium and long-term solutions that will be applied to improve the situation, MP Dumitru Alaiba, who heads the parliamentary commission on economy, budget and finance, stated in a public debate hosted by IPN News Agency.

The MP noted that in the short run, they mobilize any possible assistance to support the current needs of the budget and the population. “I refer first of all to external financing. We have a program to the value of US$800 million with the International Monetary Fund alone. This generosity shows that our partners realize the precarious situation in the Republic of Moldova. At domestic level, we will have a series of adjustments, including in the taxation system, in the functioning of the business community so as to support the economy,” stated the MP.

In the medium term, Dumitru Alaiba believes the Government’s mission is not to allow the current rate of inflation and the current crisis to turn into a disaster the next two years.

The speaker noted that the abuses of monopolies and oligopolies will not be tolerated as these indeed allow unjustified price rises. The Competition Council examines the situation, but its investigations last and this is normal as the democratic conduct of these processes needs to be ensured. The Government has punitive instruments to punish the dishonest ones. Some of the national products are sold in stores at a price that is twice higher than the producer price.

According to Dumitru Alaiba, the states with greater resilience do not have greater clarity, while the ministers of finance, bankers of central banks and large financial groups that work out policies and approaches know that the cratered situation is unprecedented. “They almost all experiment. This way, the quality of management of these crises depends on the way in which we make decisions and our interventions depend on the quality of management of this crisis. The goal is to prevent a disaster the coming years”.

The MP said the situation in the short term is indeed delicate and it is important to take decisions that can lead to the improvement of the situation in the medium term. These will foster long-term development.

“I hope that in ten years, few people will remember the inflation figures for the first quarters of 2022. It is important to act correctly. When the people look back and see that their salaries grew three-four times in the period and that the economy grew and the situation in the country improved... This is possible. Some of the countries managed to ensure considerable jumps during only two terms. Besides, in time the people will remember not the crisis of the first half of 2022, but how the war in Ukraine ended. It is very important for the free world to support democracy and freedom in our region and also respect for international law,” stated Dumitru Alaiba.

The public debate entitled “Prices and inflation considered from political, economic and social angles” was the 249th installment of IPN’s project “Developing Political Culture through Public Debates” that is supported by the Hanns Seidel Foundation.