Liberalisation of Competition and Stimulation of the Economy by Granting State Aid in the Republic of Moldova

Abstract

The European integration process has fostered the continuous advancement of economic relations with the EU, necessitating the modernization of domestic legislation through alignment with EU regulations, particularly in the realm of competition within the agro-food sector. The liberalization of competition is a positive catalyst for product diversification, consumer welfare, economic growth, and overall quality of life. The paper aims to assess the level of harmonization between national regulations governing the agrifood market and European regulations. The research entails the analysis of local legislation in the food sector, relevant scholarly works, and reports from the Competition Office. The findings indicate that the food industry and retail food trade are economic activities that require the elimination of anti-competitive barriers and the promotion of free competition. Furthermore, the provision of state aid to public companies must adhere to competition rules and avoid detrimental effects on the functioning of the market's supply and demand mechanism. In addition, the study aims to provide valuable insights into the challenges and opportunities associated with the harmonization process. By examining the effectiveness of existing regulatory frameworks and identifying areas for improvement, this research contributes to the ongoing discussions on promoting fair competition and enhancing market efficiency in the agri-food sector. The findings of this study will inform policymakers, industry stakeholders, and researchers, enabling them to make informed decisions and develop strategies that foster a competitive and sustainable agri-food market in line with European standards. It is important to note that this research represents a preliminary analysis of competition in the agro-food chain, with further exploration planned as part of the doctoral training program.