The new Parliament proceeded to elect the Commist party's leader Vladimir Voronin as President. In April, a new government led by Prime Minister Vasily Tarlev was confirmed, which, however, contained six ministers from the previous government, suggesting a continuation of Moldova's reformist course. Hitherto, the Moldovan political landscape had been characterised by unstable majorities and short-lived governments. Deadlock still persists over the status of this region, where separatists declared independence from Moldova when Moldova became independent in 1991. Moreover, a significant amount of Russian equipment and ammunitions remain in the area.
Observers report that the area has become a ground for illegal arms dealing and organised crime.
Moldova is a member of the Stability Pact for South Eastern Europe. Although industrial output has increased, agriculture continues to be in profound crisis, with a continued decline in production. Acceleration of land privatisation is an imperative for reversing this trend. The Moldovan authorities, in cooperation with international financial institutions, have been working on a strategy aimed at achieving rapid and sustainable growth and at addressing the acute problems of poverty and income inequality. The EU is an important trading partner for Moldova.