Moldova, one of the poorest countries in Europe, is considering simplifying its tax system to get out of the economic crisis caused by the war in Ukraine, said Economy Minister Dimitri Alaiba.

Alaiba said the changes, which include a revision of corporate laws to increase transparency and the removal of most tax incentives to boost revenue, will be implemented by July. At the heart of the effort will be fighting the shadow economy, a range of unregulated activities that Alaiba claims account for more than two-fifths of production. Nestled between Romania and war-torn Ukraine, this former Soviet republic of 2.6 million has endured a series of blows, including a devastating banking crisis, Russian military presence in the breakaway region, persistent power outages and rumors of a Kremlin plot to overthrow the government.

However, under President Maia Sandu, Moldova received candidate status and intends to join it by 2030. Ms. Sandu spoke to Bloomberg last month and seemed confident that membership would be tied to the breakaway region of Transnistria rather than Russian occupation. For the economy, this means attracting investment through a “simpler fiscal system,” said Mr. Alaiba, as he tries to rid himself of past bank fraud and money-laundering scandals.

The minister also said that the government plans to reduce bureaucracy and will follow the example of Estonia, which has digitized most public services, such as the system for paying taxes and obtaining documents. However, the road will be long for Moldova, whose GDP fell by almost 6 percent last year to about $15 billion. In short, it has lost about half of the 14 percent growth recorded the previous year. Inflation last year exceeded 30%, which significantly undermined purchasing power. Mr. Alaiba predicts that growth will accelerate this year, but it will not be “impressive” as difficulties persist.

The government’s plans aim for double-digit growth over the next decade, which is a real need for Moldova to improve the living standards of its citizens and move closer to its EU neighbors. in the West.