# EUR-Lex - 52014PC0146 - EN

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# 52014PC0146

**Proposal for a COUNCIL DECISION on the conclusion of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, of the other part /* COM/2014/0146 final - 2014/0083 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT
OF THE PROPOSAL/BACKGROUND

The attached proposal
constitutes the legal instrument for authorising the conclusion of the
Association Agreement between the European Union and the European Atomic Energy
Community and their Member States, of the one part, and the Republic of Moldova, of the other part (hereinafter referred to as "the Agreement").

A Commission Decision
on the conclusion of the Association Agreement on behalf of the European Atomic
Energy Community is being made separately.

Relations between the
EU and the Republic of Moldova are currently based on the Partnership and
Cooperation Agreement which entered into effect in July 1998.

Negotiations of this
comprehensive and ambitious Agreement between the EU and the Republic of Moldova were launched in January 2010. In February 2012, the EU and the Republic of Moldova also launched negotiations on the Deep and Comprehensive Free Trade
Area (DCFTA) part, as a core element of the Association Agreement. On 29
November 2013, the European Union and the Republic of Moldova initialled the
text of the Association Agreement, including the DCFTA part.

The Association
Agreement aims to accelerate the deepening of political and economic relations
between the Republic of Moldova and the EU, as well as advance the Republic of Moldova's gradual economic integration with the EU Internal Market in
selected areas, inter alia through a DCFTA, as an integral part of the
Agreement.

2.           RESULTS
OF THE NEGOTIATIONS

The Council has been
regularly informed and consulted in the relevant Council Working Groups,
notably in COEST and the Trade Policy Committee (TPC), at all stages of the
negotiations. The Commission considers that the objectives set by the Council
in its negotiating directives were attained and that the draft Association
Agreement is acceptable to the Union.

The final content of
the Association Agreement can be summarised as follows:

The Agreement
establishes an association between the Union and its Member States of the one part, and the Republic of Moldova of the other part. This constitutes a new
stage in the development of EU-Moldova contractual relations, aiming at
political association and economic integration and leaving open the way for
further progressive developments.

The overall aims of the
association focus on promoting a gradual rapprochement between the parties on
the basis of common values; strengthening the framework for enhanced political
dialogue; promoting, preserving and strengthening peace and stability in both the
regional and international dimensions; establishing conditions for enhanced
economic and trade relations leading towards the Republic of Moldova's gradual
economic integration with the EU internal market in selected areas; enhancing justice,
freedom and security cooperation with the aim of reinforcing the rule of law
and respect for human rights and fundamental freedoms, and establishing
conditions for increasingly close cooperation in other areas of mutual
interest.

The Association
Agreement also foresees a wide range of sector cooperation, focusing on support
to core reforms, economic recovery and growth, governance and sector cooperation
in 28 areas, such as; public administration reform, management of public
finances, energy, transport, environmental protection and direct action,
industrial and small and medium enterprise cooperation, social policies,
consumer protection, agriculture and rural development, cross-border and
regional level cooperation, education, training, civil society cooperation and youth
as well as cultural cooperation. In all of these areas, enhanced cooperation
starts from the basis of current frameworks, both bilateral and multilateral,
with the aim of more systematic dialogue and exchange of information and good
practice. Key to the sectoral cooperation chapters is a comprehensive menu of gradual
approximation with the EU acquis set out in the annexes to the
Agreement. Specific schedules for approximation and implementation by the Republic of Moldova of selected parts of the EU acquis will provide a focus for on-going
cooperation, and will form the core of the Republic of Moldova's domestic
reform and modernisation agenda.

The Agreement includes
an updated institutional framework encompassing cooperation and dialogue fora.
Specific decision-making roles are foreseen for an Association Council, and by
delegation for an Association Committee, which may also meet in a specific
configuration to address trade issues. Fora for civil society and parliamentary
cooperation are also foreseen. The Agreement also includes provisions on
monitoring, approximation, fulfilment of obligations and dispute settlement
(including separate provisions for trade-related matters).

Closer economic integration through the DCFTA
will be a powerful stimulant to the country's economic growth. Approximation by
the Republic of Moldova with EU legislation, norms and standards, will be the
method. As a core element of the Association Agreement, the DCFTA will create
business opportunities in both the EU and the Republic of Moldova and will
promote real economic modernisation and gradual integration with the EU. Higher
standards of products, better services to citizens, and above all the Republic of Moldova's ability to compete effectively in international markets should be
the result of this process.

3.           LEGAL
ELEMENTS OF THE PROPOSAL

On the part of the Union, the legal basis for the
conclusion of this Agreement is Article 217, in conjunction with Article 218(6)(a) and the second
subparagraph of Article 218(8), as well as Article 218(7) of TFEU.

The attached proposal constitutes the legal instrument for
the conclusion of the Association Agreement on behalf of the Union. A separate
legal instrument applies to the European Atomic Energy Community.

In light of the above-mentioned results of negotiations, the
Commission proposes that the Council decides that the Association Agreement
between the European Union and the European Atomic Energy Community and their
Member States, of the one part, and the Republic of Moldova, of the other part,
should be concluded on behalf of the European Union after having received the
consent of the European Parliament.

The fact that the
Commission has submitted its proposal as an agreement of the Union and the European Atomic Energy Community and their
Member States of the one part, and the Republic of Moldova, of the other part, is
related to the genesis of this agreement under the rules of the Treaty before
the entry into force of the Treaty of Lisbon.

2014/0083 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion of the Association
Agreement between the European Union and the European Atomic Energy Community
and their Member States, of the one part, and the Republic of Moldova, of the
other part

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the
Treaty on the Functioning of the European Union, and in particular Article(s)
217, in conjunction with Article 218(6)(a) and the second subparagraph of
Article 218(8) thereof, as well as Article 218(7) thereof,

Having regard to the
proposal from the European Commission[1],

Having regard to the
consent of the European Parliament[2],

Whereas:

(1)       On
15 June 2009 the Council authorised the
Commission to open negotiations with the Republic of Moldova for the conclusion of a new Agreement between the European
Union and the Republic of Moldova to replace the Partnership and Cooperation
Agreement.[3]

(2)       These negotiations were
successfully finalised and the Association Agreement between the European Union
and the European Atomic Energy Community and its Member States, of the one
part, and the Republic of Moldova, of the other part, (hereinafter referred to
as "the Agreement”) was initialled on 29 November 2013.

(3)       In accordance with Council
Decision [number of Decision] of [date][4], the
Agreement was signed at [place] on [date], subject to its conclusion at a later
date.

(4)       Pursuant to Article 218(7)
of the Treaty on the Functioning of the European Union, it is appropriate for
the Council to authorise the Commission to approve modifications to be adopted
by the Sub-Committee on Geographical Indications pursuant to Article 306 of the
Agreement.

(5)       It is appropriate to set
out the relevant procedures for the protection of geographical indications
which are given protection pursuant to the Agreement.

(6)       The Agreement shall not be
construed as conferring rights or imposing obligations which can be directly
invoked before Union or Member State courts and tribunals.

(7)       The Agreement should be
approved on behalf of the Union.

HAS ADOPTED THIS DECISION:

Article 1

The Association Agreement between the European Union and the European Atomic Energy Community
and their Member States, of the one part, and the Republic of Moldova, of the
other part, together with the Annexes and Protocols attached thereto
(hereinafter referred to as "the Agreement"), is hereby approved on behalf of the Union.[5]

Article 2

The President of the
Council shall, on behalf of the Union, give the notification provided for in Article
465(1) of the Agreement, in order to express the consent of the Union to be bound by the Agreement.[6]

Article 3

For the purposes of
Article 306 of the Agreement, modifications of the Agreement through decisions of
the Sub-Committee on Geographical Indications shall be approved by the
Commission on behalf of the European Union. Where interested parties cannot
reach agreement following objections relating to a geographical indication, the
Commission shall adopt such a position on the basis of the procedure laid down
in Article 57(2) of Regulation (EU) No 1151/2012 of the European Parliament and
of the Council of 21 November 2012 on quality schemes for agricultural products
and foodstuffs[7].

Article 4

1. A name protected
under Sub-Section 3 “Geographical Indications” of Chapter 9 of Title V of the
Agreement may be used by any operator marketing agricultural products,
foodstuffs, wines, aromatised wines or spirits conforming to the corresponding
specification.

2. In accordance with
Article 301 of the Agreement, the Member States and the institutions of the
European Union shall enforce the protection provided for in Articles 297 to 300
of the Agreement, including at the request of an interested party.

Article 5

The Agreement shall not be construed as
conferring rights or imposing obligations which can be directly invoked before
Union or Member State courts and tribunals.

Article 6

This Decision shall enter into force on the day following
its adoption.

Done at Brussels,

For
the Council

The
President

[1]               OJ L , , p. .

[2]               OJ L , , p. .

[3]               OJ L  181,
24.6.1998.

[4]               OJ L , , p. .

[5]  The text of the Agreement is attached to the Decision of the
Council on the signing, on behalf of the European Union, and provisional
application of the Association Agreement between the European Union and the
European Atomic Energy Community and their Member States, of the one part, and
the Republic of Moldova, of the other part (OJ...)

[6]  The date of the entry into force of the Agreement will be
published in the Official Journal of the European Union by the General
Secretariat of the Council

[7]  OJ L 343 14.12.2012, p.1