Representatives of civil society and businesses formulate proposals for new government

The participants in the conference “Economic Crisis in Moldova. Defining a New Model of Economic Government” made recommendations for the new government. The authors said that the given measures will help overcome the crisis and will contribute to an economic recovery, Info-Prim Neo reports. One of the conference organizers, Valeriu Prohniţchi, the executive director of the Independent Analytical Center “Expert Grup”, said that the proposals include short, medium-term and long-term measures. The short-term measures that should be implemented immediately include: the modification of the budget, the reestablishment of the relations with the IMF and other development partners so as to obtain foreign assistance to meet the social payments and diversify the sources for covering the budget deficit. Valeriu Prohnitchi also said that the privatization of certain state-owned companies should be continued, but in conditions of maximum transparency and taking into account the international situation, which is not very favorable at present. The experts proposed leveling the direct taxation system and returning to the situation when both the legal entities and private individuals paid taxes honorably. In this case, it will be rational to examine the possibility of implementing a common tax rate in the economy for all the taxpayers. Additional revenues could be collected into the budget if the VAT and excises on luxury goods are raised, the executive director of “Expert Grup” said. The central bank should continue lending directly to the real sector of the economy, but in more transparent conditions, so as to better support this sector, Prohnischi said. On the other hand, the executive should stop exerting pressure on the banking system, including by obliging the banks to purchase state securities to cover the budget deficit. The average and long-term measures include: the restructuring of the public services and optimization of the use of budgetary resources, promotion of institutional reforms, including the reform of the pension system by eliminating the discrepancy between different groups of people when fixing the pension. The expert also said that a lot of work is yet to be done in the real sector of the economy. The potential of certain sectors is not used. There is no communication between the sectors and some of them work according to group interests, not the legislation. The agriculture subsidization system must be reviewed. The head of the Union of Insurers of Moldova, Mihai Manoli, former minister of finance, said that the draft budget for next year should be presented in August and it is very important to consult independent experts and the public authorities. The conference “Economic Crisis in Moldova. Defining a New Model of Economic Government” was organized by “Expert-Grup” and IDIS “Viitorul”.