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Moldova approves new government led by Vasile Tofan

Created at 21 Jul · 6:07 PM1 source↑ Market-relevant
IN SHORT

Moldova's parliament approved a new government led by Prime Minister Vasile Tofan, who pledged to revive the economy and keep the country on its European course. The new cabinet aims to sign an EU accession agreement by 2028 and prepare the country to join the bloc by 2030.

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Key Numbers

53lawmakers voted for Tofan's appointment
2.4%Moldova's GDP rise last year
2%Moldova's expected GDP growth this year
20 billion leiMoldova's current budget deficit
$1.1 billionMoldova's current budget deficit in USD
2028target year for EU accession agreement
2030target year for EU membership
2029target year for budget deficit reduction
10state-owned companies to be privatized

Who's Involved

Vasile Tofan
New Prime Minister of Moldova
Maia Sandu
President of Moldova and leader of PAS party
Alexandru Munteanu
Predecessor to Vasile Tofan as Prime Minister

↳ Why This Matters

The new government's focus on EU accession and economic reforms signals Moldova's continued strategic alignment with Europe, aiming to bolster its economy and stability amidst regional geopolitical challenges.

Key facts

  • Moldova's parliament approved a new government led by Prime Minister Vasile Tofan.
  • The new government's program is titled 'The European Economy, an Effective State'.
  • The goal is to sign an EU accession agreement by the end of 2028 and join the bloc by 2030.
  • The budget deficit is targeted to be reduced by two percentage points by 2029.
  • The government plans to privatize at least 10 state-owned companies.

Moldova's parliament has approved a new government led by Prime Minister Vasile Tofan, who outlined a program focused on economic revival and European integration. Tofan, a 45-year-old financier, secured a 53-vote majority with lawmakers from President Maia Sandu's Party of Action and Solidarity (PAS). Opposition parties abstained from the vote.

Tofan's government aims to sign an EU accession agreement by the end of 2028 and prepare Moldova for membership by 2030, with plans to open all negotiation areas with the EU this year. Moldova, one of Europe's poorest nations, faces uncertainty due to the war in neighboring Ukraine but recorded a 2.4% GDP rise last year and expects 2% growth in 2024.

The new cabinet also intends to reduce Moldova's budget deficit, currently at 20 billion lei ($1.1 billion), by two percentage points by 2029. Tofan pledged tax reform, cutting red tape, and improving business access to financing. His government also plans to privatize at least 10 state-owned companies and stimulate investment in technology and artificial intelligence.

Frequently asked questions

Vasile Tofan, a 45-year-old financier, has been approved as the new Prime Minister of Moldova.

The government aims to revive the economy, reduce the budget deficit, and advance Moldova's accession to the European Union.

The government plans to sign an EU accession agreement by the end of 2028 and prepare the country to join the bloc by 2030.

Moldova recorded a 2.4% rise in GDP last year and expects 2% growth this year. Its budget deficit stands at 20 billion lei ($1.1 billion).

What Happens Next

01The government aims to open all negotiation areas with the EU this year.
02The cabinet will work to reduce Moldova's budget deficit by two percentage points by 2029.
03Tofan's government plans to privatize at least 10 state-owned companies.

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Cadence

How It Developed

Moldova's parliament approved a new government led by Prime Minister Vasile Tofan.
Tofan pledged to revive the economy and keep the country on its European course.
The government aims to sign an EU accession agreement by the end of 2028.
The cabinet will work to reduce Moldova's budget deficit by two percentage points by 2029.
Tofan's government plans to privatize at least 10 state-owned companies.

Sources

T1
Moldova approves new government led by Vasile TofanReuters

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