Skopje, 30 May 2023 (MIA) – Fiscal sustainability and prudent management of public finances in regard to the crisis we are currently facing are a key condition for economic growth and ensuring a prosperous future for current and future generations, Finance Minister Fatmir Besimi said Tuesday addressing the 10th Regional Summit of Governors, Finance Ministers and Tax Administration Directors held in Bečići, Montenegro.

Addressing the panel entitled “Healthy public finances – the key condition for economic growth and the building of a modern market economy in conditions of extended geopolitical uncertainty,” Besimi underscored that the implementation of coherent, integrated and sustainable policies is crucial.

“The crisis faced us with great uncertainty, fighting on several fronts. Dealing with the challenges and simultaneously maintaining the reform agenda that will return us to the paths of economic growth from before the pandemic. In such conditions, the domestic economy has shown great resistance to the subsequent shocks caused by global factors. The timely responsiveness of the fiscal policy, through a quick reaction, a wide range of anti-crisis measures and a significant fiscal stimulus, have largely limited the impact of these shocks. The government reacted promptly, in order to slow down the transfer of imported inflation and ensure a full and stable supply of electricity, and avoiding price shocks. The measures were targeted at the vulnerable social groups and companies affected by the crisis, and their main objectives were to protect the standard of living, maintain the liquidity of companies and support investments in energy efficiency and renewable energy sources to ensure the energy stability of debt term and basis for sustainable rates of economic growth in the medium term,” Besimi said.

He said that this will be achieved by stabilizing inflation and by rapid realization of capital projects and stronger emphasis on the implementation of structural reforms, the Ministry of Finance said in a press release.

“The planned public capital investments, which this year are at the historically highest level of €800 million, to increase economic growth. Several key projects have been started in the road and railway infrastructure, energy, communal infrastructure. Despite the narrow fiscal space, the fiscal consolidation continues by reducing the budget deficit, optimizing the costs of the separate sources of its financing and directing it fully to funding investment projects,” Finance Minister Besimi said.

“There is no other alternative to EU path for the Republic of North Macedonia and other countries in the region and we show and prove it in every way. Our goal is to create a prosperous future for current and future generations, and especially for the youth of our country. From that point of view, the accession process is extremely important for raising the institutional capacities and transposing the modern European legislation. Only by implementing coherent, integrated and sustainable policies that encourage sustainable development can we bring Europe home,” Besimi said.

The summit - since 2019 organized by the Serbian Association of Economists - is the biggest annual regional gathering dedicated to financial and monetary issues, with a goal to stimulated dialogue and improvement of cooperation between financial institutions across the region.

Photo: Ministry of Finance