Prime Minister: Financial stability must be transformed into investment and economic growth

Accelerating the Republic of Moldova’s integration into the European single market, increasing productivity and attracting investment, as well as the monetary and fiscal policies needed to maintain economic stability were the main topics discussed over two days at the international conference - Fiscal space and monetary anchoring under accelerated integration.

At the opening of the event, Prime Minister Vasile Tofan spoke about the role of a strong banking sector and confidence in the economy in accelerating the Republic of Moldova’s European path. The Prime Minister emphasized that the country has a well-capitalized and liquid banking system, while the current challenge is to leverage this stability for the development of the real economy.

“The question is increasingly less whether our banks are safe and whether the monetary system is stable, and increasingly more about how we transform this strength into investment in the economy. This is precisely where our policies need to focus,” the Prime Minister emphasized.

The official noted that the Republic of Moldova currently enjoys greater confidence from investors and external partners thanks to its clear European path, reforms, and financial support provided by the European Union and other partners. At the same time, the Prime Minister said that stability must be accompanied by increased productivity and economic competitiveness.

“We cannot grow faster unless we become more productive. For me, this is the essence of economic convergence with the European Union. European integration cannot mean only the adoption of EU legislation, standards, and institutions. Ultimately, it must mean a more productive economy and a more productive Republic of Moldova,” said Tofan.

According to the Prime Minister, developing a more competitive economy requires more investment, better infrastructure, higher exports, and a developed capital market, so that the economy can also generate higher wages. At the same time, the Government will pursue the maintenance of fiscal discipline and the allocation of resources toward investments that strengthen the economy and its capacity to withstand external shocks.

“We want stability and lower inflation, together with stronger economic growth, an economy increasingly based on exports and long-term investment. We want people’s incomes to approach European levels and, most importantly, the productivity of the Republic of Moldova to approach the European level,” concluded Tofan.

The BdF–BNM–BNR international conference, entitled Policy Coordination for EU Convergence: Fiscal Space and Monetary Anchoring under Accelerated Integration is taking place in Chișinău on October 1–2. The event brings together representatives of central banks, European institutions, international financial organizations, and public authorities, as well as economists and researchers.