The Minister of Finance in Northern Macedonia, Fatmir Besimi, says that economic stabilization and overcoming the crisis can be achieved only with wise economic decisions and professionally drafted.

"Overcoming the inflationary crisis requires bold and responsible economic decisions, which will not be guided by the daily political agenda.

They will be based on economic laws, strong analysis and a clear goal - stabilization, overcoming the crisis and economic growth ", said the Minister of Finance, Fatmir Besimi in his column on inflation, measures and maintaining the level of economic growth .

The belief in the column writes that in the reports and analyzes of international institutions the recommendations are the same, respectively the countries should act with targeted measures, respectively measures that will determine exactly which category of citizens and companies they refer to.

This, according to him, is in the interest and in terms of maintaining fiscal and macroeconomic stability of the economy.

"After the pandemic, the fiscal space for response has shrunk, especially for developing countries.

Therefore, this aspect should be taken into account when creating fiscal policies, given the price increase in capital markets.

"Fiscal measures should be taken anyway, but the fiscal response during the pandemic and during this price crisis, however, should be different, because the nature of the crisis and the current conditions for financing and implementation of measures are different," he said. Minister of Finance.

He mentions the publication of the IMF, where it is emphasized that fiscal policies during the current crisis should be planned according to the existing social protection system that is practiced in the country.

Recommendations for fiscal measures are given according to these three categories of countries, namely those with strong social protection, others with low social protection, without subsidies for food and energy and the third category with low social protection, with subsidies for food and energy .

"Although not very attractive politically, the recommendations are to allow market forces to act on supply and demand, with the support of the most vulnerable categories.

Price signals are key to react concretely to demand and thus to the beginning of stabilization.

We also have energy as an example.

Demand for energy is resilient, especially for fuels, which means that as prices rise, demand may decrease.

On the other hand, food is not characterized by price elasticity.

Therefore, a very important aspect is the provision of social security for the most vulnerable categories of citizens.

If low-income households use certain fuels for heating, through properly designed measures, the price of those fuels can be affected.

Reducing taxes on fuel and food is not recommended. On the contrary, tax collection should be aimed at protecting the most vulnerable families.

"By reducing taxes for all, it means that those who do not need support are subsidized, at the expense of vulnerable categories of citizens," wrote the Minister of Finance.

Besimi also emphasizes that, although our country has a strong social system, although the decision for voluminous packages of fiscal measures from the beginning of the year was in the direction of slowing down the inflationary spiral, due to the high share of food and energy, where in fact this was achieved.

Further, as announced by the Minister, targeted measures will be taken and the stability of the economy will be maintained.

"With the budget review, we continue with the measures in terms of supporting citizens and companies.

Reserve funds have been allocated for new anti-crisis measures.

Additional funds have been allocated to support farmers in increasing domestic yields, in order to amortize the effects of the high price of imported food.

Additional funds have been allocated for the most vulnerable categories of citizens and for increasing the pensions of pensioners.

All of these are targeted measures, because in addition to supporting overcoming the crisis, it is also important to maintain macroeconomic stability.

"Because only a stable economy can generate strong and sustainable economic growth", emphasizes Besimi.