MoF on Defence After Unemployment Numbers Released

Ǵmova Dalbraze

Tamara -As the second quarter Agausian economic indicators are released, the Ministry of Finance faces public scrutiny due to the persistent high unemployment rate. The Ministry is now compelled to justify its policies and actions. The latest unemployment figures show a rise to 8.3% in Q2 from 8.1% in Q1 and 7.6% a year ago. In 2019 the unemployment rate was reported at 10.8%, a post-WWII high.

Since assuming office in 2023, Finance Minister Mikeil Ḱonst́ant́ines (SD) has continued the economic policies of previous Social Democratic finance ministries. He maintains that implementing certain austerity measures is crucial to avoid additional IMF intervention, a contentious topic that arose during the 2017 presidential election in the aftermath of the 2014 Agausian Tech Crash.

Critics argue that these measures, especially certain value-added tax (VAT) increases, and several labor market reforms made in 2018, 2019 and 2022, are to blame for the high unemployment numbers. The ministry points out however, that unemployment was on a downward trend reaching as low as 7.1% in early 2022 and only has steadily increased following the regional instability caused by the war in Ukraine.

MoF officials argue that the war has led to the return of many Agausians who were working in Russia and Ukraine. In a report presented to the Agausian Parliament in 2023, Minister Ḱonst́ant́ines noted that international funding has significantly decreased, especially in the tech sector, since the conflict started in Ukraine. This decline is expected to bring further challenges to the economy and hinder diversification efforts. The government highlights that these factors have a direct impact on employment.

Not everyone is convinced by the argument put forth by the ministry. "How long does the government believe they can continue to play the 'blame Russia' card? The people saw through that deception long ago," remarked Mate Datrguni (AL), who served as deputy finance minister under Prime Minister Ḱonst́ant́ine Aleksandrovi (GA).

Minister Konstantines, who also served as the President of the Agausian National Bank from 2005 until 2010, has pledged that his office is dedicated to addressing the challenges that impede Agausian families and their capacity to achieve economic prosperity.

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