Commission staff working document accompanying the Communication from the Commission to the European Parliament and the Council - Implementation of the European Neighbourhood Policy in 2008 - Progress Report Republic of Moldova {COM(2009) 188 final} {SEC(2009) 511} {SEC(2009) 512} {SEC(2009) 513} {SEC(2009) 515} {SEC(2009) 516} {SEC(2009) 517} {SEC(2009) 518} {SEC(2009) 519} {SEC(2009) 520} {SEC(2009) 521} {SEC(2009) 522} {SEC(2009) 523}
Date: 2009-04-23
Institutions: European Commission
Subjects: European neighbourhood policy, Moldova, impact study, the EU's international role

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.4.2009 
SEC(2009) 514 

COMMISSION STAFF WORKING DOCUMENT 

Accompanying the 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Implementation of the European Neighbourhood Policy in 2008 

Progress Report Republic of Moldova 

{COM(2009) 188 final} 
{SEC(2009) 511} 
{SEC(2009) 512} 
{SEC(2009) 513} 
{SEC(2009) 515} 
{SEC(2009) 516} 
{SEC(2009) 517} 
{SEC(2009) 518} 
{SEC(2009) 519} 
{SEC(2009) 520} 
{SEC(2009) 521} 
{SEC(2009) 522} 
{SEC(2009) 523} 

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1. 

BACKGROUND AND OVERALL ASSESSMENT 

The  Republic  of  Moldova  (hereafter  referred  to  as  Moldova)  and  the  EU  first  established 
contractual  relations  in  1994  through  a  Partnership  and  Cooperation  Agreement,  which 
entered into force in 1998. On this basis, the EU-Moldova ENP Action Plan was adopted in 
February  2005  for  a  period  of  three  years,  and  prolonged  by  mutual  agreement  beyond 
February  2008.  Until  February  2008,  its  implementation  was  guided  and  monitored  on  the 
basis  of  annual  implementation  tools,  which  set  out  comprehensive  yearly  sets  of  priorities 
and timelines, based on the priorities agreed jointly by the EU and Moldova. A first progress 
report was adopted in December 2006 and a second one in April 2008. Moreover, evaluations 
have been carried out every year, both on the EU side and on the Moldovan side.  

In addition, institutional cooperation through the EU-Moldova Cooperation Council, the EU-
Moldova  Cooperation  Committee  and  four  subcommittees  enabled  both  sides  to  pursue 
political  and  sectoral  dialogues,  and  to  follow  the  implementation  of  the  ENP  Action  Plan 
closely. 

This document reports on overall progress made on the implementation of the EU- Moldova 
ENP Action Plan between 1 January and 31 December 2008, although developments outside 
this  period  are  also  considered  when  deemed  relevant.  It  is  not  a  general  review  of  the 
political and economic situation in Moldova. 

Moldova remains a partner having made substantive progress in governance and reform over 
the last years. Overall, during the reporting period, Moldova made progress in most areas of 
the ENP Action Plan. Major achievements during the reporting period were the pursuit of the 
reform of the judicial system, the agreement to publish reports of the European Committee for 
the  Prevention  of  Torture,  positive  cooperation  with  the  EU  Border  Assistance  Mission 
(EUBAM), active leadership in regional cooperation fora, and enhanced cooperation with the 
EU  on  regional  and  international  issues.  Moldova  has  been  able  to  ensure  the  correct 
implementation of the conditions for benefiting from the EU Autonomous Trade Preferences 
since their entry into force in March 2008. Moldova continued also to cooperate with the EU 
on  all  questions  related  to  the  Transnistria  settlement  efforts,  including  on  confidence-
building  measures  geared  at  improving  grass-roots  dialogue  with  the  population  in 
Transnistria. The Moldovan economy rebounded robustly after the 2007 drought, despite the 
negative effect of external shocks, including severe floods during the summer and the global 
financial turmoil in the last months of the year.  

Nonetheless,  Moldova  made  no  or  limited  progress  in  the  effective  implementation  of  a 
number of reforms which constitute key priorities under the ENP Action Plan. These include 
in  particular  ensuring  the  fundamental  freedoms  of  citizens,  addressing  some  market  and 
regulatory  issues,  and  enforcing  effectively  national  strategies  in  areas  such  as  the  fight 
against corruption, drugs and trafficking in human beings, or in sectors such as transport and 
energy.  As  noted  in  the  last  report,  inadequate  allocation  of  resources,  delays  with  the 
adoption  of  secondary  legislation  or  insufficient  political  backing  constitute  lasting 
impediments to the implementation of internal reforms. Moreover, the electoral law adopted 
in view of the April 2009 general elections constituted a regression.  

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2. 

POLITICAL DIALOGUE AND REFORM 

With the prospects of a  new bilateral  agreement, the political dialogue between the EU and 
Moldova intensified. Consultations took place between the Moldovan government and the EU 
Political and Security Committee, the Council Working Party on Eastern Europe and Central 
Asia,  and  the  Political  Directors’  Troika.  In  May  2008,  the  Moldovan  executive  set  up  a 
National Commission for European Integration, chaired by the President of the Republic.  

Democracy and the Rule of law 

Objectives  in  this  area  include:  strengthening  the  stability  and  effectiveness  of  institutions 
guaranteeing democracy and the rule of law; strengthening the capacity of the judiciary and 
reviewing  existing  legislation  to  ensure  the  independence  and  impartiality  of  the  judiciary, 
including the prosecution; and ensuring the effectiveness of the fight against corruption. 

During 2008, the Government was actively preparing the general elections held in April 2009, 
which  will  be  reported  upon  in  next  year’s  report.  The  Parliament  adopted  legislation 
prohibiting the holding of dual or multiple citizenship for numerous categories of officials and 
elected representatives, and modified the Electoral Code in April 2008, raising the threshold 
for political forces to be represented in Parliament and prohibiting pre-electoral alliances. In a 
joint  opinion,  the  Venice  Commission  of  the  Council  of  Europe  and  the  OSCE  Office  for 
Democratic Institutions and Human Rights stated that these amendments constituted a setback 
and unequivocally recommended repealing them in advance of the April 2009 elections. In a 
ruling  in  November  2008,  the  European  Court  of  Human  Rights  declared  that  the  new 
legislation on multiple citizenship violated Article 3 of Protocol 1 to the European Convention 
for the Protection of Human Rights and Fundamental Freedoms guaranteeing the right to free 
elections.  

Moldova pursued the reform of its judicial system, based on a strategy adopted in 2006. In 
doing  so,  it  faced  a  number  of  resilient  challenges  in  implementation.  The  Department  for 
Judicial Administration under the Ministry of Justice, created in 2007, effectively started its 
activities behind schedule; the Judicial Inspection faced repeated problems in recruiting staff 
and could not commence its operations as planned. The Code of Ethics for Judges (2007) was 
largely disseminated; however, its effective implementation remains to be assessed. Besides, 
the implementation of the law on State-guaranteed Legal Assistance, to be put into operation 
in  2009,  was  actively  prepared.  Training  and  retraining  programmes  for  judges,  bailiffs  and 
prosecutors  continued  to  be  delivered,  including  on  human  rights  related  legislation. 
Legislation  adopted  in  December  2008  reformed  the  Public  Prosecutor’s  Office  although  it 
did not fully take into consideration the Council of Europe’s advice on the independence of 
the prosecution and amended the status of judges as well as the composition of the Supreme 
Council  of  Magistracy.  The  main  challenge  for  Moldova  remains  to  implement  these 
legislative measures, taking into account the limited resources allocated to that aim.  

Progress was made in the area of public governance with the adoption of two new laws: a law 
on  the  Civil  Service  in  July  2008  -  which  provides  for  a  delimitation  of  political  and  non-
political  functions  in  public  administration  –  and  a  law  on  Transparency  in  the  Public 
Decision-making Process, adopted in November 2008.  

Within the framework of Moldova’s national strategy and action plan 2007-2009 on fighting 
corruption,  important  anti-corruption  laws  entered  into  force  (laws  on  Political  Parties,  on 
Conflict of Interest, on Preventing and Combating Corruption) or were adopted (laws on the 

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its  recommendations 

Protection of Witnesses and Process Participants; Code of Ethics for civil servants; changes to 
the  law  on  Officials’  Income  and  Assets  Declaration).  In  its  December  2008  Compliance 
Report, the Council of Europe Group of States against Corruption (GRECO) concluded that 
significant  progress had  been  achieved  on 
to  Moldova. While 
contributing to improve Moldova’s position in international studies on corruption perception, 
these  developments  have  yet  to  be  accompanied  by  an  adequate  allocation  of  resources  and 
appropriate  secondary  legislation  in  order  to ensure  their  efficient  implementation.  In  a  few 
areas, measures  remain  insufficient  or  have  not  been  finalised  or  adopted;  for  instance,  as 
regards  legislation  on  special  investigative  techniques,  the  inclusion  to  a  broader  extent  of 
corruption  in  the  anti-money  laundering  mechanisms,  effective  controls  over  conflicts  of 
interest  and  asset  declarations,  the  reporting  of  suspicions  of  corruption  and  whistleblower 
protection,  or  the  incrimination  of  certain  accounting  offences  or  manipulations.  There  is 
therefore scope for further adjustment of the legislative framework. 

In  July  2008,  the  Government  requested  all  central  public  institutions  to  launch  corruption 
risk  assessments  and  design  integrity  plans,  with  the  support  of  the  Centre  for  Combating 
Corruption  and  Economic  Crimes  (CCCEC).  The  analysis  of  the  cases  dealt  with  by  the 
CCCEC points to the need to extend this request also to local public institutions. In November 
2008, a Coordinating Council for Preventing and Combating Crime was set up with a view to 
coordinating  action  aimed  at  preventing  and  counteracting  crime  and  corruption,  human 
trafficking  and  illegal  migration.  However,  the  monitoring  mechanism  of  the  national  anti-
corruption strategy requires further strengthening of its capacity and the wider involvement of 
relevant  stakeholders  from  Government  and  civil  society.  No  further  progress  was  noted  as 
regards a draft law on corruption of voters, which was submitted to Parliament in 2006.  

No  developments  took  place  concerning  compliance  of  the  legislative  framework  with 
Council of Europe standards in the field of local self-government.  

Human rights and fundamental freedoms 

Objectives in this area include: ensuring respect of human rights and fundamental freedoms, 
including the right of persons belonging to national minorities; developing and implementing 
an appropriate legal framework for he prevention of, and the fight against, the trafficking in 
human beings and for addressing the problems faced by the victims of trafficking; eradication 
of ill-treatment and torture; ensuring respect of children’s rights, equal treatment, freedom of 
expression;  freedom  of  association  and  fostering  the  development  of  the  civil  society; 
ensuring respect for trade unions’ rights and core  labour standards;  ensuring international 
justice through the International Criminal Court. 

The Parliament held several public hearings on the implementation by the Government of the 
National Action Plan on Human Rights, which expired in November 2008. Preparations for 
the successor action plan for 2009-2012 were initiated in December 2008. Four parliamentary 
advocates (ombudspersons), one of them being now in charge of the protection of children’s 
rights, were appointed in October (these positions had been left vacant for several months in 
2008).  

In April 2008, new legislation provided the regulatory framework for enforcing the decisions 
of  the  European  Court  of  Human  Rights  (ECHR)  in  Moldova.  The  Court  has  ruled  against 
Moldova in a number of cases for violations of the European Convention on Human Rights 
(including with regards to the length of legal proceedings, right of property, and ill-treatment). 

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In  2008,  Moldova  ranked  third  as  per  the  number  of  applications  allocated  to  a  judicial 
formation in the ECHR per capita (3.21 applications per 10 000 citizens). 

Moldova complied with all its reporting obligations under the UN human rights conventions 
to  which  it  is  a  Party.  In  January  2008,  Moldova  ratified  the  First  Optional  Protocol  to  the 
Covenant  on  Civil  and  Political  Rights.  No  progress  was  made  towards  signing  the 
International  Convention  on  the  Protection  of  the  Rights  of  All  Migrant  Workers  and 
Members  of  Their  Families.  Moldova  fully  cooperated  with  the  UN  Special  Rapporteur  on 
Violence against Women and the Special Rapporteur on Torture during their joint visit to the 
country in July 2008.  

On  national  minorities,  the  inadequate  resources  allocated  to  the  implementation  of  the 
national action plan in support of the Roma population (2007-2010) and the lack of data for 
assessing  progress  constitute  significant  impediments  to  the  effective  implementation.  No 
progress can be reported on the ratification of the European Charter for Regional or Minority 
Languages.  As  regards  freedom  of  religion,  non-governmental  organisations  pointed  to  the 
lack  of  adequate  public  monitoring  of  the  implementation  of  the  law  on  Religious  Cults; 
several cases of arrest  of  priests of the  Bessarabia Church were  registered. After a series of 
consultation  rounds  with  civil  society,  the  Government  submitted  draft  legislation  on  anti-
discrimination to Parliament.  

Despite  notable  efforts  made  by  the  authorities,  ill-treatment  by  the  police  remains 
widespread and conditions in police detention facilities and prisons remain serious sources of 
concern (i.a. overcrowding, inter-prisoner violence, abuse  of detainees). In November 2008, 
the Government authorised the European Committee for the Prevention of Torture (CPT) to 
publish  all  CPT  reports  on  Moldova.  A  Law  on  Civil  Control  of  the  Respect  for  Human 
Rights in prisons was adopted in November 2008. It provides for an independent mechanism 
for  monitoring  prisons,  with  a  view  to  guaranteeing  transparency  and  the  prevention  of  ill-
treatment and torture of prisoners. The director of the Centre for Human Rights (Ombudsman) 
was  appointed  to  coordinate  the  national  preventive  mechanism,  established  in  accordance 
with the Optional Protocol to the UN Convention against Torture. A training programme on 
human  rights  and  in  particular  the  rights  of  detainees  was  developed  by  the  Department  of 
Penitentiary  Institutions.  No  progress  was  made  in  practice  towards  the  transfer  of 
responsibility for persons on remand to the Ministry of Justice.  

No  steps  were  noted  in  effectively  consolidating  freedom  of  expression  and  media 
pluralism in the country. The EU Heads of Mission in Chisinau expressed their concerns in 
that  regard  in  two  joint  statements,  respectively  in  July  and  November  2008.  In  December 
2008, PRO-TV, a major independent television channel, came close to being deprived of its 
broadcasting  license  by  the  national  broadcasting  regulator  and  only  pressure  from  the 
international community prevented a disruption of its service. No developments took place as 
regards  the  institutional  strengthening  of  the  Broadcasting  Coordination  Council,  nor  the 
editorial independence and institutional autonomy of Teleradio Moldova. Several instances of 
supporters and members of opposition parties being intimidated by law enforcement officials 
were  reported  in  the  autumn  2008.  Civil  society  organisations  complained  of  poor 
implementation of the law on Access to Information. The law on State Secrets, adopted by the 
Parliament  in  November  2008,  falls  short  of  international  standards  on  the  right  to 
information and expression. In December 2008, the Constitutional Court endorsed only partly 
the draft law proposed by the Government to  align the Constitution (on freedom  of opinion 
and  expression)  with  the  European  Convention  for  the  Protection  of  Human  Rights  and 
Fundamental Freedoms. In particular, the Court did not deem it possible to remove from the 

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Constitution  the  reference  to  “defamation  of  the  State  and  the  people”  from  the  list  of 
forbidden activities subject to criminal proceedings. The amended draft law was later sent to 
Parliament for consideration.  

The new legislation on freedom of assembly, which was adopted in February 2008 following 
an intensive consultation process with civil society, and which entered into force in April, was 
widely received as a positive development. Its poor implementation record indicates however 
that  there  is  a  need  for  adequate  awareness-raising  and  training  of  the  relevant  executive 
bodies in order for the law to achieve its objectives.  

In September 2008, the Government summoned an inaugural meeting of the National Council 
for Participation, a forum where the executive can consult civil society, including economic 
operators,  in  formulating,  implementing,  monitoring  and  assessing  public  policies.  Once 
established,  this  body  will  aim  to  foster  dialogue  between  the  public  authorities  and  civil 
society,  which  was  until  now  widely  considered  by  non-governmental  organisations  as 
insufficient.  In  December  2008,  Parliament  adopted  a  well-received  strategy  on  the 
development of civil society in 2008-2011.  

While gender equality is ensured and promoted by law, women continue to face substantial 
discrimination  in  practice,  including  high  levels  of  unemployment  and  deep-rooted 
stereotypes.  The  Interministerial  Commission  on  Gender  Equality  resumed  its  activities  in 
2008,  but  the  implementation  record  of  the  law  on  Equal  Chances  for  Men  and  Women 
remained modest. Domestic Violence remained widespread and insufficiently acknowledged. 
The  Government  undertook  awareness-raising  activities,  and  a  law  on  Preventing  and 
Combating  Domestic  Violence  was  adopted  and  entered  into  force  in  September  2008.  The 
protective infrastructure for victims of domestic violence remains insufficient.  

Moldova  made  progress  on  several  aspects  of  children’s  rights,  including  with  regard  to 
health, juvenile justice, de-institutionalisation and access to early childhood education. Weak 
enforcement,  however,  undermined  these  efforts.  The  relevant  services,  structures  and 
budgets  needed  to  sustain  positive  trends  are  not  yet  in  place.  Besides,  further  political 
leadership  and  coordination  are  needed  to  address  the  complex,  multi-sectoral  challenges 
raised by child protection system reform and social protection. Moldova started to implement 
the ‘Decent Work’ country programme 2008-2011 signed in June 2008 with the International 
Labour Organisation (ILO) and the constituent social partners. The National Commission for 
Consultation  and  Collective  Bargaining  was  reformed,  based  on  technical  advice  from  the 
ILO.  Legislation  on  occupational  health  and  labour  safety  was  adopted  in  July  2008.  Still, 
labour  dispute  legislation  needs  to  be  aligned  with  the  ILO  Convention  on  collective 
bargaining.  

On trade unions’ rights and core labour standards, some but not all required amendments 
to  the  legislation  on  labour  disputes  have  been  adopted  (in  particular,  a  law  on  Safety  and 
Health at Work was adopted in July 2008). Moldova’s updated report on its application of the 
revised  European  Social  Charter  was  registered  with  the  Council  of  Europe  just  after  the 
reporting period, in January 2009.  

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Cooperation in foreign and security policy, conflict prevention and crisis management 

Objectives in this area include: strengthening political dialogue and cooperation on foreign 
and security policy issues; developing cooperation in the area of combating terrorism, non-
proliferation of WMD and illegal arms exports. 

Moldova  cooperated  actively  with  the  EU  on  regional  and  international  issues,  and  aligned 
itself  with  nearly  all  EU  CFSP  declarations  open  for  alignment,  including  on  the  armed 
conflict  in  Georgia.  Little  progress  was  noted  regarding  dialogue  with  the  EU  on  the 
implementation of the European Security Strategy.  

During  the  UN  General  Assembly  of  September  2008,  Moldova  actively  promoted  the 
proposal for a UN convention on international terrorism.  

A draft law on ratification of the Rome Statute of the International Criminal Court, sent to 
the Parliament in February 2008, is still pending.  

Regional cooperation 

Objectives  in  this  area  include:  continuing  Moldova’s  targeted  regional  cooperation  under 
activities of the South-East Europe Cooperation Process and Regional Cooperation Council, 
and other relevant regional organisations. 

Moldova  is  an  active  member  of  the  Central  European  Initiative  (CEI),  the  South-East 
European  Cooperation  Process  (SEECP)  and  Regional  Cooperation  Council  (RCC),  and  the 
Central  European  Free  Trade  Agreement  (CEFTA).  In  2008  it  held  the  chairmanships  of 
CEFTA, CEI and SEECP. It intensified contacts between SEECP and the Organisation of the 
Black  Sea  Economic  Cooperation  (BSEC)  to  coordinate  priorities  and  fostered  the 
establishment  of  formal  structures  for  the  Stability  Pact  Anti-Corruption  Initiative  and 
Initiative against Organised Crime.  

Cooperation for the settlement of the Transnistrian conflict 

Moldova  cooperated  constructively  with  the  EU  on  all  questions  related  to  the  Transnistria 
settlement  efforts.  It  took  part  in  all  informal  meetings  in  the  so-called  “5+2”  format.  The 
President of the Republic and the Transnistrian separatist leader met twice, after a seven-year 
break.  Pursuing  its  confidence-building  initiative  put  forward  in  autumn  2007,  Moldova 
agreed with the separatist authorities to set up five bilateral working groups. The Government 
foresaw  a  specific  allocation  in  the  2009  State  budget  to  facilitate  the  settlement  of  the 
Transnistrian  conflict. Together  with  Ukraine,  Moldova  continued  to  implement  its  customs 
regime  based  on  the  Joint  Declaration  of  the  Moldovan  and  Ukrainian  Prime  Ministers  of 
December 2005.  

EU Border Assistance Mission to Moldova and Ukraine (EUBAM) 

Moldova continues to be fully committed to, and to participate constructively in, the work of 
EU Border Assistance Mission to Moldova and Ukraine (EUBAM). With EUBAM support, 
the  professional  capacities  of  the  Moldovan  customs  and  border  guard  services  were 
enhanced,  as  was  inter-agency  cooperation  within  Moldova  and  between  Moldova  and 
Ukraine  –  such  as  the  joint  operation  of  a  new  pre-arrival  information  exchange  system.  In 
December 2008, the 7th Trilateral meeting on border issues took place in Brussels. All sides 

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confirmed  the  progress  made  in  border  security  at  the  Moldovan-Ukrainian  border  and 
emphasised that cross-border cooperation had improved significantly. 

In November 2008, Moldova requested a second extension of the EUBAM mission, beyond 
November 2009.  

3. 

ECONOMIC AND SOCIAL REFORM 

Macroeconomic framework and functioning of the market economy 

Moldova's  economic  performance  was  significantly  affected  by  the  2007  drought.  GDP 
growth  was  weaker  than  the  region's  average.  The  economic  activity  rebounded  strongly  in 
2008 when output increased by an estimated 7.2%. However, in the last months of 2008, the 
global  financial  turmoil  started  affecting  the  economy,  and  output  growth  slowed  down 
significantly. 

Data by sector of origin indicate that Moldova’s improved performance in 2008 is primarily 
attributable  to  agriculture  whose  output  increased  by  more  than  one-third  (after  a  similar 
decline in 2007), and to the services sector, mainly trade and transport. At the same time, the 
industrial production increased only marginally (by 0.3%, following a decline in 2007), and 
the  production  of  the  services  expanded  by  less  than  4%,  after  a  14%  growth  in  2007.  The 
deceleration  of  growth  in  the  services  sector  reflects  primarily  the  sharp  slowdown  in 
construction, from more than 20% in 2007 to just 1% in 2008. This slowdown reflects in its 
turn  the  deceleration  of  the  growth  in  domestic  investment  demand,  the  main  engine  of 
growth in Moldova in 2007 (and, together with the household consumption, in the previous 
years).  

Although overall the production of the tradables sectors increased in 2008 (contrary to 2007), 
Moldova's economy remains extremely fragile – exports cover of imports is less than half and 
the trade deficit in 2008 exceeded 50% of GDP – and dependent on external environment, in 
particular  external  financing.  In  2008,  once  again,  the  huge  trade  deficit  could  be  financed 
comfortably,  partly  by  ever  growing  remittances  of  Moldova's  workers  abroad  (the  current 
account  deficit  was  maintained  at  slightly  above  16%  of  GDP),  partly  by  foreign  direct 
investments and bank credits. Given that Moldova's main trading partners – Russia, Ukraine, 
Belarus, but also the EU – are all severely affected by the global crisis and that the external 
financing conditions, notably the availability of credit resources for transition economies like 
Moldova's  and  prospects  for  further  growth  of  remittances  flows  have  deteriorated  sharply 
since the start of the global financial turmoil, prospects for continued growth in the country 
are much more uncertain now. In particular, it is unlikely that domestic demand will continue 
growing fast and lead to growing imports. 

The severe slowdown in domestic demand towards the end of 2008 has helped the National 
Bank  reduce  drastically  inflation  that  had  peaked  at  17%  in  May  2008  (inflation  had  been 
accelerating  since  the  second  half  of  2007,  reflecting  both  the  trends  in  the  global 
commodities  prices,  the  effects  of  the  drought  and  massive  capital  inflows).  At  the  end  of 
2008,  inflation  was  down  to  little  more  than  7%.  This  allowed  the  National  Bank  to  cut 
several  times  its  interest  rates,  in  order  to  stimulate  domestic  economic  activity.  The  fiscal 
policy remained restrictive, and the consolidated general government budget remained within 
the  limits  set  by  Moldova's  economic  programme  agreed  with  the  IMF  (on  track  for  all  of 
2008). 

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Moldova's structural reform agenda is laid down in the National Development Strategy (NDS, 
voted into law in December 2007). The NDS reflects largely the priorities of the EU-Moldova 
ENP Action Plan. 

Employment and social policy 

The  reduction  of  poverty,  still  substantial  (29%  of  the  population  according  to  the  latest 
figures  available  (2007),  remains  the  overarching  objective  of  the  Government's  economic 
strategy. 

In  March  2008,  the  Government  submitted  a  progress  report  on  the  implementation  of  the 
2007-2015  National  Strategy  on  Employment.  In  December  2008,  the  ILO  performed  the 
audit  of  the  labour  inspection  to  assess  its  capacities  and  signed  a  decent  work  country 
programme  with  Moldova  for  the  years  2008-2011.  The  programme,  which  was  developed 
with the participation of the Government, trade unions and employers’ organisation, focuses 
on  better  labour  administration,  effective  employment  policy  formulation  and  on  the 
development  of  sound  social  security  policies  based  on  social  dialogue.  According  to  the 
latest  ILO  data  available,  3.6%  of  the  active  population  was  unemployed.  The  capacity  to 
analyse labour market and employment policy improved in Moldova in particular through the 
Strategy  which  provides  for  more  precise  targeting  of  measures  and  better  reach  of  the 
programmes.  

The Government launched a national programme for youth economic empowerment in 2008-
2010 as one of the core actions to be carried out  under the  Youth Year Action Programme. 
There  is  still  a  mismatch  between  the  current  vocational  education  and  the  labour  market 
demands.  

Moldova  took  a  number  of  legislative  measures  to  improve  social  dialogue  such  as  the 
adoption  in  July  2008  of  the  law  on  Health  Protection  and  Labour  Safety  and  the 
modifications  in  March  2008  of  the  Labour  Code  relating  to  hiring  and  firing  employees. 
Furthermore,  the  labour  inspection  and  the  national  confederation  of  trade  unions  signed  a 
cooperation agreement for 2008. 

In the area of social protection, in October 2008 Moldova started to implement a new law on 
Social Assistance. It introduces needs-based transfers to vulnerable groups of population. The 
amount of eligible families is estimated at 71,000. The funds allocated for needs-based social 
assistance  amount  to  5%  of  total  public  expenditures  on  social  assistance.  The  number  of 
social assistants was also substantially increased. Sufficient funding should be earmarked for 
the fulfilment of these provisions. Nine community social care centres opened in 2008. The 
automated system aimed to facilitate implementation of the new law at the local level started 
its operations in the end of 2008. Finally, Moldova is working on a unified pension system. 

The ILO provides support to the training of the Moldovan teams negotiating social security 
agreements.  In  March  2008,  the  Government  decided  the  indexation  of  social  insurance 
pensions by 17%. 

A National strategy on sustainable development of agriculture (2008-2015) was adopted and 
an  increased  number  of  interministerial  committees,  at  minister  and  department  director 
levels, were tasked with integrating environment and sustainable development concerns into 
sectoral activities.  

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Limited  progress  can  be  reported  as  regards  rural/regional  development,  a  task  for  which 
budgetary  allocations  are  inadequate.  Although  the  National  Strategy  for  Regional 
Development  has not  been  adopted yet and the National Fund for Regional Development is 
not operational,  a  National  Coordination Council for Regional Development,  chaired  by the 
Minister of Economy and Trade, was created. It appointed the chairpersons of the three first 
Regional Development Councils (North, Central and South); recruitment in view of staffing 
the related Regional development agencies is not finalised. 

4. 

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

Bilateral  trade  in  goods  between  the  EU  and  Moldova  continued  to  grow  in  2008.  Imports 
from Moldova increased by 2.7% and exports by 14.1% compared to 2007. Trade with the EU 
accounted  for  50.2%  of  total  Moldovan  trade  in  2007  thus  making  the  EU  by  far  the  first 
trading partner of Moldova. Since March 2008 Moldova benefits from the comprehensive EU 
Autonomous Trade Preferences (ATPs) and made an extensive use of available quotas under 
this  regime,  notably  for  wine,  sugar  and  cereals.  During  the  reporting  period  there  was  no 
change in the trade structure and diversification of exports remains low. A project aiming at 
fostering  export  promotion  and  investment  attraction  was  launched  in  December  2008  with 
EU  support.  In  order  to  make  full  use  of  the  benefits  stemming  from  the  ATPs,  Moldova 
should continue its regulatory reforms and improve the business and investment conditions. In 
particular,  Moldova  should  intensify  its  efforts  on  improving  its  sanitary  and  veterinary 
standards  to  be  able  to  take  full  advantage  of  the  preferences  in  the  agricultural  sector. 
Moldova confirmed its commitment to maintain and implement its obligations under the key 
international  conventions  on  human  and  labour  rights,  sustainable  development  and  good 
governance (GSP+ conventions). 

In  December  2008,  in  line  with  the  Council  Conclusions  of  October  2008,  the  European 
Commission launched a feasibility study on a possible future deep and comprehensive free 
trade area (DCFTA) with Moldova. The feasibility study, the results of which are expected 
to  be  ready  in  the  summer  of  2009,  will  contribute  to  a  comprehensive  assessment  of 
Moldova's readiness to take on and implement the commitments of a possible future DCFTA 
and  to  sustain  the  effects  of  far-reaching  liberalisation.  The  comprehensive  assessment  will 
also  include  an  analysis  of  the  impact  of  the  ATPs,  together  with  progress  made  so  far  in 
implementing the trade aspects of the EU-Moldova ENP Action Plan.  

Overall,  good  progress  was  made  in  the  area  of  customs.  The  Moldovan  Customs  Service 
(MDCS)  ensured  that  the  ATPs  functioned  correctly.  The  Harmonised  System  for  the 
Classification of Goods is applied from January 2008. The MDCS elaborated a new IT system 
named  TARIM,  equivalent  to  the  EU’s  Integrated  Tariff  (TARIC).  Moldova  provisionally 
ratified the Istanbul Convention on Temporary Admission and is preparing for ratification of 
the Kyoto Convention on Simplification and Harmonisation of Customs Procedures. In May 
2008 the customs procedures regarding intellectual property rights (IPR) were strengthened, 
including by allowing ex officio intervention by customs. A draft Customs Procedures Code 
was  adopted  by  the  Government  in  December  2008  with  a  view  to  harmonising  further 
customs procedures with the EU Customs Code.  

Concerning administrative capacity, the MDCS adopted an Institutional Development Plan for 
the Customs Service (IDPCS) for the period 2009-2011 based on EU principles and standards, 
with contributions from relevant ministries. An improved Customs Code of Ethics was sent to 
the Government for approval in December 2008.  

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The MDCS started the implementation of its action plan to connect in the future to the new 
computerised  transit  system  (NCTS).  The  action  plan  foresees  the  harmonisation  of  the 
relevant customs legislation, as well as strengthening of the current IT infrastructure. Besides, 
a programme to upgrade the customs automated system “ASYCUDA World” is on-going; it 
will modernise its modules in order to allow for the use of digital signature, the development 
of  the  “blue  corridor”  and  ex-post  audit,  and  the  implementation  of  the  integrated  customs 
tariff based on EU standards.  

The MDCS continued to implement the concept of a ‘one-stop shop’: an action plan approved 
by the Prime  Minister  in  March 2008 defines the legal and institutional measures necessary 
for the implementation of this concept, including the competences of the authorities present at 
the border and the IT information data exchange system. Since September 2008, the MDCS 
has  been  in  charge  of  the  control  of  international  passengers  and  freight  transport  at  border 
inspection posts (BIPs), including the calculation of road taxes, and took on the competences 
previously  attributed  to  the  State  Phytosanitary  Quarantine  and  to  the  State  Ecological 
Inspectorate.  To  achieve  the  objectives  of  the  Action  Plan  in  this  area,  exchange  of 
information  with  the  Ukrainian  Customs  Service  need  to  be  improved.  Further  efforts  are 
necessary to ensure a smooth implementation of the one-stop shop concept. 

Regarding free movement of goods and technical regulations, Moldova pursued its efforts 
towards  preparations  for  the  negotiation  of  an  Agreement  on  Conformity  Assessment  and 
Acceptance of Industrial Products (ACAA). Transition from mandatory to voluntary standards 
had already advanced through the adoption of the 2007 package of horizontal laws, including 
amendments to the law on Standardisation. During the reporting period, Moldovan legislation 
was harmonised to several sectoral EU directives. The National Institute for Standardisation 
and  Metrology  (INSM)  has  taken  charge  of  standardisation.  In  2008,  it  became  an  affiliate 
member of the European Committee for Standardisation (CEN). Moldova continued adopting 
several EU and ISO standards. In June 2008, the Government adopted a decree on the State 
Main  Inspectorate  for  Market  Surveillance,  Metrology  and  Consumer  Protection.  Market 
surveillance remains an area with many challenges.  

Moldova continued to implement, in the field of sanitary and phyto-sanitary (SPS) issues, 
its action plan on animal health and food safety. Following up to the European Commission’s 
Food and Veterinary Office (FVO) 2005 inspection visit, a FVO visit took place in May 2008 
which  concluded  that  substantial  steps  were  needed  to  achieve  the  objectives  of  this  action 
plan. As a result of the inspection, the European Commission removed Moldova from the list 
of  third  countries  with  an  approved  residue  monitoring  plan  for  honey.  In  September  2008, 
Moldova  presented  a  revised  plan  of  action  to  address  FVO  concerns;  discussions  are 
continuing.  

Some other  steps were taken  towards  convergence  with EU standards. A law on Veterinary 
Activity entered into force in September 2008. It addresses, inter alia, the role of the agencies 
active  in  this  field.  A  law  on  the  protection  of  plant  varieties  entered  into  force  in  2008. 
Moreover, Moldova adopted secondary legislation on SPS and continued the preparation of a 
hygiene  package.  In  October  2008,  the  Government  established  the  Sanitary-Veterinary 
Agency for Safety of Products of Animal Origin. Its aim is to better coordinate the work of 
the  various  bodies  responsible  for  this  area.  The  country  continued  the  upgrade  of  testing 
laboratories  and  further  developed  animal  identification  and  registration.  It  approved,  in 
February  2008,  contingency  plans  for  classical  swine  fever  and  foot-and-mouth  disease.  It 
continued participation in workshops under the European Commission’s “Better training for 
safer food” programme.  

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Concerning  the  business  climate,  challenges  remained  in  areas  such  as  VAT  refund, 
limitations  on  the  acquisition  of  land  and  the  issuing  of  construction  permits  (which  often 
takes  a  disproportionately  long  time).  Respect  for  the  rule  of  law  is  an  essential  element  of 
improving  business  climate  in  Moldova.  In  addition  to  a  sound  macroeconomic  policy 
framework,  for  the  business  climate  to  be  really  conducive  of  new  investments,  structural 
reforms  and  improvements  of  public  institutions  need  to  be  pursued  in  order  to  support  the 
establishment  of  a  friendly  and  predictable  business  environment,  competitive  markets  with 
fluid  firm  entry  and  exit  rates,  more  sophisticated  securities  markets  and  non-bank 
financial institutions,  and  sustainable  public  investment  in  infrastructure.  The  Government 
continued to promote free economic zones and industrial parks to attract investments. 

As  regards  company  law  and  establishment,  Moldova  continued  implementing  the 
Corporate  Governance  Code  as  well  as  the  laws  on  Joint-stock  Companies  and  on  Limited 
Liability  Companies,  which  were  further  approximated  with  EU  legislation  as  well  as 
international standards. However Moldova needs to make further efforts to enforce efficiently 
existing  rules  on  disclosure  requirements  for  joint-stock  companies,  investors  and  the  stock 
exchange in order to ensure a satisfactory level of transparency. The Law on Registration of 
Legal Persons and Individual Entrepreneurs was revised in June 2008 in order to further ease 
the registration of companies. In November 2008, a one-stop shop for issuing more than 80 
different  licenses  was  established  in  the  form  of  a  “Licensing  Agency”.  Further  significant 
efforts  are  needed,  though,  to  reduce  administrative  requirements  and  controls  imposed  on 
companies. A Corporate Governance Code was adopted on the basis of OECD principles in 
2008, accompanied with a massive awareness raising campaign. 

Moldova continued to strengthen its supervisory framework in the field of financial services. 
The  Central  Bank  conducted  field  research  with  a  view  to  making  banks’  ownership  more 
transparent;  it  collected  information  about  stakeholders  and  issued  recommendations  to  the 
commercial  banks  on  how  to  improve  their  internal  audit  procedures.  In  August  2008  the 
IMF’s 
(FSAP)  provided  new 
recommendations  on  the  strengthening  of  financial  services.  Banking  supervision  structures 
were found not yet fully compliant with Basel II principles for effective banking supervision. 
During 2008, Moldova improved its inter-bank payment system (AIPS) by modernising some 
elements  of  the  national  payment  infrastructure.  A  Law  on  Mortgage,  accompanied  by 
amendments to several related laws, was adopted in June 2008.  

revised  Financial  Sector  Assessment  Programme 

The  National  Commission  on  the  Financial  Market  (NCFM),  as  a  unified  supervision 
authority for non-banking financial services, prepared a Strategy for the Development of the 
Non-Banking  Financial  Sector  in  2009-2011.  Since  October  2008,  the  NCFM  has  been 
empowered to issue, suspend and withdraw licenses for activity in the area of insurance, for 
administering  the  assets  of  non-state  pension  funds,  and  for  running  savings  and  loan 
associations. Also, a National Association of Insurance companies was created in 2008.  

As  regards  movement  of  capital  and  current  payments,  the  March  2008  Law  on  Foreign 
Exchange Regulation further aligned the Moldovan legislation with EU standards.  

As regards movement of persons, Moldova signed, in December 2008, a bilateral agreement 
with Bulgaria on the coordination of social security. Furthermore, a law on Labour Migration, 
adopted  in  July  2008,  entered  into  force  in  January  2009.  The  law,  which  regulates  the 
employment of immigrants, is not fully in line with the standards of the ILO and the Council 
of Europe. 

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Other key areas 

In March 2008 the Government approved a regulation aiming at simplifying and accelerating 
the  procedures  for  VAT  refund  for  exported  goods  and  for  investments  in  real  estate. 
However, foreign investors  still  face  difficulties with regard to VAT refunds. In June 2008, 
Parliament approved legislation to transfer all functions of tax control, tax assessment and tax 
collection to the Main State Tax Inspectorate (MSTI) and to allow for the right to write off 
uncollectible tax arrears. As from January 2008, the Tax Code provides for the possibility to 
claim  VAT  refund  linked  to  investments  (fixed  assets).  However,  no  claim  for  VAT  refund 
for investments made in Chisinau and Balti (two major economic centres in Moldova), nor for 
the  acquisition  of  living  premises  and  transportation  means  are  allowed.  The  effects  of  the 
introduction  of  zero-rate  corporate  tax  for  reinvested  profits  introduced  in  January  2008  in 
terms of new FDI remains to be evaluated. 

In the area of competition policy, the NDS provides for a development of competition and 
approval  of  clear  rules  for  state  aid.  A  draft  law  on  Competition,  prepared  by  the  National 
Agency  for  the  Protection  of  Competition  (NAPC),  was  sent  back  to  the  Parliament  by  the 
President’s  office  in  July  2008.  In  November  2008,  the  revised  draft  law  was  not  approved 
and it was sent back for re-examination. The upgrading of the 2000 Law on Competition is 
necessary  to  allow  the  NAPC  to  perform  better  when  investigating  and  prosecuting  anti-
competitive business practices, while at the same time ensuring legal guarantees and the right 
of  defense  to  undertakings.  A  new  draft  law  on  State  Aid  is  still  under  examination  by  the 
Government.  

Moldova further complemented its legislation on intellectual property rights (IPR) with the 
entry  into  force  of  legislation  on  trademarks  and  on  the  protection  of  plant  varieties 
(September  2008),  as  well  as  on  the  protection  of  inventions  and  on  protection  of 
geographical indications, appellations of origins and traditional specialties (October 2008). In 
addition, it adopted in October 2008 a draft law on the ratification of the Singapore Treaty on 
the law of trademarks. In December 2008 the Government approved a draft law on Copyright 
and  Related  Rights,  which  remains  to  be  adopted.  The  access  of  right  holders  to  legal 
information was improved through the opening, in April 2008, of a dedicated Information and 
Documentation IPR Centre. The trademark database has been available, free of charge, since 
October 2008. However, the weak enforcement of IPR, as well as the high level of piracy and 
counterfeiting,  including  at  the  borders,  remain  a  source  of  concern.  The  National 
Commission on Intellectual Property, in charge of coordinating the relevant public institutions 
and  advising  on  IPR  issues,  was  formally  established  in  April  2008.  Moldova  engaged  in  a 
twinning project to support the implementation and enforcement of IPR. It also signed in July 
2008 a cooperation agreement for the years 2008-2009 with the European Patent Office. 

Moldova  continued  implementing,  and  raising  awareness  on,  the  2007  law  on  Public 
Procurement.  It  adopted  a  number  of  supplementary  legislative  acts  to  this  effect.  A 
governmental  Commission  on  Public  Procurement  was  established  in  May  2008.  The 
administrative  capacity  of  the  Agency  for  Material  Resources,  Public  Procurement  and 
Humanitarian  Aid  was  increased  over  the  reporting  period.  Public  tenders  are  published  on 
the  Agency’s  website.  As  regards  training,  a  Community-sponsored  twinning  project  to  the 
benefit of the Agency should begin in 2009. In March 2008, Moldova adopted an action plan 
for the free public procurement portal, which has been in place since January 2008 (see last 
report);  the  Government  allocated  approximately  EUR  221,000  (MDL  3  million)  for 
launching  in  2009  a  e-Procurement  system  with  a  view  to  moving  to  full  e-procurement  by 
2010. Besides, Moldova benefits from a continuing observer status to the WTO Agreement on 

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Public Procurement (GPA) and started the procedure for GPA accession with the deposit of 
its offer in October 2008.  

Moldova  started  implementing  its  National  Strategy  for  Development  of Statistics  in  2008-
2011 (approved in December 2007). The draft law on the general population census of 2012, 
elaborated  by  the  National  Bureau  of  Statistics,  was  submitted  in  December  2008  to  the 
Government for approval.  

As  reported  last  year,  the  new  accounting  and  auditing  laws  entered  into  force  in  January 
2008.  The  new  accounting  law  provides  for  the  compulsory  use  of  international  financial 
reporting standards (IFRS) by public interest companies as from January 2009. The national 
strategy for development of accounting and auditing for 2008-2011 is still under preparation. 
The  strategy  will  be  based  on  the  relevant  EU  Directives  and  IFRS.  Still,  the  capacity  of 
regulatory agencies for enforcing accounting standards should be reinforced. The Council of 
Auditors  started  its  activity  and  works  closely  with  the  association  of  auditors.  Finally,  the 
Government approved draft amendments to the Audit Law in October 2008. 

With regard to public internal financial control (PIFC), amendments to the law on Budget 
Systems  and  Processes  were  adopted  in  July  2008  (entering  into  force  as  of  January  2009), 
providing a legal basis for PIFC including accountability arrangements for the management of 
public funds as well as for the implementation of a system of internal audit. As reported last 
year,  a  strategy  for  the  development  of  public  internal  financial  control  in  2007-2009  was 
approved  in  January  2008,  providing  for  the  development  of  national  public  internal  audit 
standards and a code of ethics for public internal auditors. An internal audit charter was also 
published  in  January  2008.  Training  and  professional  development  activities,  including 
awareness-raising in line with EU standards and methodologies, were also implemented. With 
the  support  of  EU  and  international  donors,  implementation  of  the  Strategic  Development 
Plan  of  the  Court  of  Accounts  (2006-2010)  continued,  with  the  aim  to  develop  a  modern, 
functioning  system  of  external  audit.  A  revised  law  aimed  at  improving  the  functional  and 
financial independence of the Court was adopted. 

On  enterprise  policy,  a  renewed  strategy  for  development  of  small-  and  medium-sized 
enterprises (SMEs) was prepared. As reported last year, the 2007 law on the Core Principles 
of  Regulating  Entrepreneurial  Activities  became  effective  in  January  2008.  It  determines 
principles  and  mechanisms  regulating  business  activity  in  order  to  ensure  free  trade  and 
entrepreneurial  activities,  free  competitiveness,  and  to  create  a  favourable  environment  for 
economic  development.  In  July  2008,  the  Parliament  adopted  a  law  on  Public-Private 
Partnerships.  Mechanisms  for  its  implementation  are  being  finalised.  In  May  2008,  the 
Government  launched  and  started  implementing  a  wide  training  programme  for  companies 
with  young  entrepreneurs.  The  programme  also  includes  a  component  on  financing  of  rural 
investment through commercial loans with grant elements. 

The  implementation  of  the  National  Strategy  for  Consumer  Protection  (2008-2012) 
continued over the reporting period. As reported above, the Government adopted in June 2008 
a  decree  on  the  State  Main  Inspectorate  for  Market  Surveillance,  Metrology  and  Consumer 
Protection.  Further  efforts  are  however  needed  to  facilitate  the  activities  of  the  consumers’ 
organisations and the empowerment of consumers. 

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5. 

COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

The visa facilitation and readmission agreements between Moldova and the EU entered into 
force in January 2008. At the same time, Estonia joined the Common Visa Application Centre 
in  Chisinau  which  opened  in  April  2007.  Sweden  followed  suit  in  April  2008.  In  2008,  the 
Centre issued 7,487 visas, a significant increase on 2007. Moldova worked actively to prepare 
the protocols to be signed with the EU Member States under the readmission agreement, and 
established a readmission fund.  

In the area of border management, the Government decided in July 2008 on an integrated 
information  system  for  the  border  guard  service.  A  working  arrangement  between 
FRONTEX1 and the Moldovan border guard service was signed in Chisinau in August 2008. 
In addition, a code of ethics for border guards was adopted in June 2008, the preparation of 
which was supported by EUBAM expertise. In July 2008, the Government adopted a plan on 
the development of border infrastructure in 2009-2011. EU assistance for the development of 
the border guard service continues under the framework of EUBAM. In terms of inter-agency 
cooperation, a bilateral cooperation agreement was signed with Lithuania in July 2008 while a 
study visit of Georgian border officials was hosted the same month. Cooperation with Ukraine 
on the joint customs regime and operational contact with the trilateral contact centre in Galati 
(Romania)  have  intensified.  Moldova  continued  to  participate  actively  in  the  Söderköping 
Process. 

Moldova  continued  to  update  its  migration  legislation  and  in  October  2008  it  established  a 
national integrated migration system to record the movement of Moldovan citizens across the 
State  border.  To  support  efficient  management  of  migration  flows,  the  EU  and  Moldova 
signed  in  June  2008  a  pilot  Mobility  Partnership,  under  which  a  first  Cooperation  Platform 
was organised in November 2008. At the same time, Moldova adopted its action plan on the 
consolidation of migration management and asylum systems in 2008-2009. In July 2008, as 
reported  earlier,  a  new  law  on  Labour  Migration  was  adopted.  Furthermore,  with  ILO 
assistance, Moldova set up an information centre for migrant workers in Cahul (not far from 
the  Romanian  border).  The  temporary  placement  centre  for  illegal  migrants,  inaugurated  in 
March  2008,  is  not  yet  fully  operational  yet,  as  the  specific  legislation  allowing 
accommodation of irregular migrants was not adopted. Similarly, the national action plans for 
protection of Moldovan citizens abroad and for stimulation of migrants’ return have not been 
fully implemented. 

A new law on asylum (December 2008) aims to align Moldovan legislation with international 
standards. Moldova is one of the target countries of Regional Protection Programmes (RPPs). 
Within  the  context  of  RPPs,  different  EU-funded  project  activities  were  carried  out  which 
aimed to improve the situation of asylum seekers and refugees in Moldova.  

With  regard  to  the  fight  against  organised  crime,  the  Council  of  Europe  Convention  on 
Cybercrime,  which  Moldova  signed  on  the  date  of  its  opening,  has  still  to  be  ratified.  The 
protection  of  human  rights  forms  an  inherent  part  of  the  fight  against  organised  crime  and 
efforts to enhance the awareness of law enforcement agencies on human rights in this respect 
would need to be enhanced. 

1 

FRONTEX: European Agency for the Management of Operational Cooperation at the External Borders 

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In April 2008, the Parliament approved a national action  plan  on prevention and combating 
trafficking in human beings for the period 2008 – 2009. At the same time, the Government 
established  a  National  Committee  for  Combating  Trafficking  in  Human  Beings,  which 
strengthened its operational capacity with the progressive establishment of local committees. 
A new regulation on the repatriation of victims of trafficking was adopted in July 2008 by the 
Government, which is complemented by the implementation of a national referral system for 
victims, created in December 2008.  

In addition, in May 2008 the Ministry of Internal Affairs, the Public Prosecutor’s Office and 
the Ministry of Social Protection, Family and Child signed a memorandum of understanding 
with the International Organisation for Migration, the centre for prevention of trafficking in 
women,  and  the  international  centre  "La  Strada"  to  establish  a  cooperation  framework 
between public institutions, law enforcement agents, civil society and donors on assistance to 
victims  and  potential  victims  and  to  improve  access  to  care  and  protection  for  victims.  The 
national  centre  for  the  rehabilitation  of  victims  was  transferred  to  the  Ministry  of  Social 
Protection,  Family  and  Child  in  July  2008.  Cooperation  with  civil  society  alongside 
coordination with neighbouring countries needs, however, to be consolidated. The Council of 
Europe  Convention  on  Action  against  Trafficking  in  Human  Beings  entered  into  force  in 
February  2008.  Effective  implementation  will  require  considerable  capacity-building  of  law 
enforcement agencies. 

The  implementation  of  the  national  drugs  strategy  and  relevant  action  plan  for  the  period 
2007-2009  is  hampered  by  lack  of  trained  human  resources,  financial  means  and  technical 
equipment. The anti-drugs unit of the Ministry of Internal Affairs does not have adequate data 
on drug usage though noticeable success was achieved in 2008 with regard to seizures. Drug 
trafficking remains an issue of serious concern requiring an intensification of inter-agency law 
enforcement  cooperation  both  nationally  and  regionally.  Prevention  and  harm  reduction 
actions in relation to drug addicts remain to be developed in the context of the implementation 
of an integrated approach towards the reduction of drugs’ demand and supply.  

In  February  2008  the  National  Bank  of  Moldova  amended  its  regulations  on  the 
implementation  on  anti-money  laundering  measures  by  commercial  banks  under  the  tax 
amnesty  regime  as  required  by  the  Council  of  Europe  Moneyval  Committee  of  Experts. 
Further legislative amendments to the law on money laundering and terrorist financing were 
drafted by the Centre for Combating Economic Crimes and Corruption (CCCEC) in October 
2008.  In  May  2008  Moldova  ratified  the  2005  Council  of  Europe  Convention  on  the 
Prevention  of  Terrorism  (CETS  196)  which  entered  into  force  in  September  2008  and  the 
country amended the anti-terrorist legislation and the Criminal Procedure Code improving the 
confiscation  and  asset  equalisation  regimes.  Moldova  joined  the  Egmont  Group  as  a  full 
member,  participating  in  workshop  meetings  in  October  2008.  With  Community  assistance, 
the  CCCEC  published  a  guide  on  suspicious  transactions  for  all  reporting  entities  while  in 
March 2008 it delivered training to securities and insurance companies followed by sessions 
for notaries and commercial banks in June and July 2008, respectively. In April 2008, anti-
money laundering training was provided by the CCCEC to judges and prosecutors, while that 
delivered to the FIU and anti-corruption prosecutors in June- September 2008 resulted in the 
increase of initiation of criminal cases and the freezing of suspicious transactions (Following 
its ratification in September 2007, the Council of Europe Convention on Laundering, Search, 
Seizure  and  Confiscation  of  the  Proceeds  from  Crime  and  on  the  Financing  of  Terrorism 
(CETS 198) entered into force in May 2008. Moldova is a member of MONEYVAL and has 
observer status within the Eurasia Group (EAG). 

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No  major  developments  took  place  in  the  field  of  police  and  judicial  cooperation.  In 
particular, the earlier contemplated operational agreement with Europol was not signed. Law 
enforcement cooperation with EU Member States (Italy, France  and  Germany) continued in 
the context of individual bilateral agreements. Moldova has a permanent representative in the 
SECI Centre (Southeast European Cooperation Initiative) ensuring information exchange on 
relevant regional and trans-border law enforcement operations.  

6. 

TRANSPORT, ENERGY, THE ENVIRONMENT, THE INFORMATION SOCIETY, RESEARCH 
AND DEVELOPMENT 

Moldova  has  restructured  the  transport  sector  governance,  with  both  the  Ministry  of 
Transport and the Civil Aviation authority being dissolved. The State Roads Administration 
as well as the directorates of the former Ministry of Transport dealing with roads were moved 
to  the  Ministry  of  Construction  and  Territorial  Development  while  the  other  directorates 
dealing  with  rail,  inland  waterways  and  the  former  Civil  Aviation  Authority  were  grouped 
into a new Agency for Transport.  

Moldova  experiences  difficulties  in  fully  implementing  its  land  transport  infrastructure 
strategy  adopted  at  the  end  of  2007.  While  a  limited  number  of  projects  were  implemented 
under the 2008 budget, these were not necessarily the ones prioritised under the infrastructure 
strategy. Neither does the 2009 State budget include the necessary amount planned for road 
maintenance  under  the  strategy.  Road  safety  remains  an  issue  of  concern,  in  particular  as 
regards  drivers’  training  and  certification.  Due  to  the  recent  restructuring  of  the  transport 
sector  (where  enforcement  competencies  still  need  to  be  fully  clarified),  there  are  also 
difficulties in enforcing regulations on driving times and rest periods. 

The  upgrading  of  the  inland  waterway  port  at  Giurgiulesti  port  plays  a  pivotal  role  in  the 
newly  formulated  inland  waterways  strategy  approved  by  the  Government  in  April  2008. 
During the reporting period Moldova adhered to a number of important maritime and inland 
waterway  conventions.  However  the  implementation  of  these  requires  further  significant 
efforts.  

In  the  aviation  sector,  Moldova  could  be  considered  as  the  next  potential  candidate  in  the 
region  for  participation  in  the  Common  Aviation  Area.  It  continued  to  align  its  aviation 
regulations  with  EU  standards,  but  there  are  concerns  that  the  recent  reorganisation  of  the 
aviation  administration  may  delay  the  necessary  strengthening  of  administrative  capacity. 
Moldova  has  adopted  plans  to  develop  the  airport  of  Marculesti  into  an  air  freight  hub,  but 
faces  the  considerable  challenge  of  developing  the  necessary  hinterland  connections. 
Negotiations of Working Arrangements with the European Aviation Safety Agency started at 
the end of 2008. 

Moldova  and  the  EU  further  enhanced  energy  cooperation,  in  particular  in  support  of  the 
implementation  of  Moldova’s  energy  strategy,  inter  alia  by  organising  meetings  with 
potential  donors.  Moldova  will  need  to  find  considerable  additional  financial  resources  to 
implement the strategy. In January 2009, the Ukraine / Russia gas crisis led to a temporary cut 
of  Russian  gas  supplies  to  Moldova,  which  is  fully  dependent  on  such  supplies.  The  EU 
provided  emergency  assistance,  through  the  Community  Civil  Protection  Mechanism,  to 
alleviate the situation for the citizens.  

In  2008,  Moldova  reorganised  the  energy  administration  and  brought  energy  policy 
competence  within  the  remit  of  the  Ministry  of  Economy  and  Trade.  Moldova  made  some 

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improvements to the investment climate, inter alia by preventing new debts to accumulate in 
the  heat  sector  and  to  cancel  debts  owed  by  combined  heat  and  power  stations  to  Moldova 
Gas. It also pursued studies to address historical energy debts, which are a major obstacle to 
investments.  A  large  share  of  these  debts  was  accumulated  in  Transnistria.  In  2008,  the 
European  Commission  facilitated  an  agreement  between  the  National  Energy  Regulatory 
Agency and Union Fenosa Moldova on electricity tariffs. Moldova made progress concerning 
its draft electricity and gas laws, based on comments provided by the European Commission 
and  continued  strengthening  the  ANRE.  Moldova  further  improved  bill  collection  rates  and 
adopted  legislation  on  metering  and  billing  as  well  as  on  cushioning  the  impact  of  price 
increases  on  vulnerable  consumers.  Energy  prices  were  adjusted  but  remain  distorted.  In 
November  2008,  Moldova  and  the  European  Commission  opened  negotiations  on  the 
country’s  accession  to  the  Energy  Community  Treaty,  which  includes  commitments  for 
gradual  convergence  with  the  internal  energy  market  rules.  The  country  participates,  as  an 
observer, in the work of the Energy Community.  

Regarding energy infrastructure, Moldova assessed the modernisation costs of CET-2 thermal 
power plant and continued work on the future construction of an oil refinery at Giurgiulesti oil 
terminal. It rehabilitated domestic electricity networks which contributed to reducing network 
losses,  constructed  the  electricity  interconnection  Gotesti-Falciu  (Romania)  and  studied  the 
feasibility  of  the  Balti-Suceava  (Romania)  electricity  interconnection.  The  UCTE  (the 
interconnected electricity networks of continental Europe) took preparatory steps regarding a 
study on the legal, technical and practical conditions for Moldova’s and Ukraine’s future joint 
accession to the UCTE. In 2008, Moldova imported 70% of its electricity needs from Ukraine. 
The  Russian-owned  Cuciurgan  power  plant,  located  in  the  Transnistrian  region,  started 
exporting  electricity  to  Romania  and,  as  from  January  2009,  resumed  electricity  supplies  in 
the country beyond Transnistria. Moldova consolidated its position as a gas transit country for 
Russian gas to the Balkans, as was highlighted by the January 2009 gas crisis. It continued the 
construction  of  distribution  networks,  put  into  operation  the  Tocuz-Cainari-Mereni  gas  pipe 
and  started  the  construction  of  the  Balti-Ungheni  gas  pipeline.  Work  on  a  new  energy 
efficiency  law  and  action  plan  continued  in  2008.  The  energy  efficiency  agency  is  not  yet 
operational. At regional level, Moldova continued its participation in the “Baku Initiative” for 
EU-Black Sea / Caspian energy cooperation. 

Moldova continued preparing its second national communication on climate change, which 
will  include  a  study  on  vulnerability  and  adaptation  to  climate  change,  a  greenhouse  gas 
inventory, national mitigation strategy and an adaptation plan. Moldova took steps to prepare 
and  approve  further  Clean  Development  Mechanism  (CDM)  projects.  Four  of  the  ten 
Moldovan  CDM  projects  have  been  registered  at  the  UN  level.  The  European  Commission 
continued to support Moldova to implement the Kyoto Protocol. Moldova has not yet adopted 
a formal position regarding the post-2012 regime. 

Moldova  took  steps  to  initiate  a  review  of  its  2001  concept  of  environmental  policy.  The 
NDS promotes measures to prevent pollution and more efficient use of natural resources. The 
legislative  framework  continues  to  require  further  development,  in  particular  as  regards 
implementing  legislation.  Secondary  legislation  was  adopted  on  wastewater  discharges  and 
environmental taxes for certain imported goods. A new environment framework law, a water 
law and a waste management law are under preparation. No strategies or plans were however 
adopted in 2008. Work continued to develop a national programme on the ecological network 
as well as to implement the existing strategies and plans, but continued attention is required in 
particular  as  regards  water.  Efforts  are  also  needed  to  enhance  monitoring  as  well  as 
enforcement.  

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to  Justice 

in  Decision-making  and  Access 

The  Ministry  of  Environment  and  Natural  Resources  (MENR)  recruited  new  staff  and 
prepared  its  institutional  development  plan  for  2008-2011.  Further  strengthening  of 
administrative  capacity  at  all  levels  of  the  country  is  still  a  major  challenge.  Coordination 
between  authorities  requires  attention.  Some  activities  took  place  to  integrate  environment 
considerations into other policy sectors such as transport and agro-industries. A draft strategy 
on strategic environmental assessment was prepared. The MENR decided to publish state-of-
the-environment  reports  only  every  three  years.  It  nevertheless  continued  to  publish  other 
information on a regular basis, even if the requirements of the Aarhus Convention on Access 
in 
to  Information,  Public  Participation 
Environmental  Matters  are  not  yet  fully  incorporated  into  legislation.  Involvement  of  civil 
society  representatives  requires  therefore  attention.  Moldova  continued  reviewing  its 
environmental impact assessment (EIA) legislation, as it was mainly applied to donor-funded 
projects.  Some  steps  were  taken  to  promote  implementation  of  strategic  environmental 
assessment. An action plan on environmental education was agreed between the Ministry of 
Education  and  Youth  and  the  MENR.  The  Moldova  Regional  Environmental  Centre 
continued its activities, although limited in scope, focusing on awareness raising, promoting 
EU  environment  policy  and  legislation  and  encouraging  cooperation  between  various 
stakeholders.  Moldova  did  not  make  significant  progress  in  the  ratification  of  remaining 
relevant  UNECE  protocols2.  Furthermore,  the  implementation  of  several  already  ratified 
agreements  requires  particular  attention.  Initial  steps  were  taken  to  prepare  a  Danube  Delta 
analysis  report.  Preparations  for  signing  the  Nistru  (Dniester)  river  agreement  with  Ukraine 
are still on-going. Moldova participated in the Danube - Black Sea Task Force (DABLAS), in 
the  EU  Water  Initiative,  including  a  national  policy  dialogue,  and  the  International 
Commission for the Protection of the Danube River. Cooperation and information exchange 
took  place  between  the  European  Commission  and  Moldova,  including  on  water  quality, 
forestry, waste management and environmental data. Other topics, such as water supply and 
sanitation and air quality were identified for possible closer cooperation. 

The  Community  Civil  Protection  Mechanism  was  mobilised  in  August  2008  to  support 
Moldova in assessing the flooding of the Nistru (Dniester) and the Prut rivers, and in January 
2009  in  alleviating  the  consequences  of  the  Ukraine/Russia  gas  crisis.  Moldova  and  the 
European  Commission  discussed  the  possibility  to  negotiate  a  bilateral  administrative 
arrangement on closer co-operation in the field of civil protection.  

In the area of information society, the Ministry of Information Development is finalising a 
“Strategy  for  the  ICT  Sector  Development  in  2009-2011”.  Moldova  also  launched  a  pilot 
governmental portal for the promotion of online services like e-government and e-commerce. 
The fixed line operator started to provide free Internet access for all public schools.  

In  March  2008  the  former  National  Regulatory  Agency  for  Telecommunications  and 
Informatics  (ANRTI)  was  reorganised  and  became  the  National  Regulatory  Agency  for 
Electronic Communications and Information Technology (ANRCETI) after the new Law on 
Electronic  Communications  had  come  into  effect.  In  order  to  implement  this  law,  the 
ANRCETI  has 
legislation:  regulation  on  general 
authorisations  and  licences  for  the  use  of  scarce  resources  for  public  electronic  e-

the  following  secondary 

issued 

2 

The  Protocol  on  Strategic  Environmental  Assessment  to  the  UNECE  Convention  on  Environmental 
Impact  Assessment  in  a  Trans-boundary  Context,  and  the  Protocol  to  Abate  Acidification, 
Eutrophication  and  Ground-level  Ozone  to  the  UNECE  Convention  on  Long-Range  Trans-boundary 
Air Pollution. 

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communications  services,  regulation  on  the  management  of  the  national  numbering  plan, 
regulation  on  dispute  resolution,  regulations  on  control  procedures  for  e-communications 
services  and  on  procedures  for  granting  technical  authorizations  for  the  operation  of  radio 
communications  stations,  including  authorization  procedures  for  the  National  Centre  for 
Radio  Frequencies.  Furthermore,  ANRCETI  issued  licences  to  the  three  operators  for 
frequencies to provide Third Generation mobile services (3G).  

In December 2008, the decision, later suspended, to interrupt the licence of the private PRO 
TV channel,  questioned  the  independence  of  the  national  broadcasting  regulator  in  practice, 
and furthermore put to the fore the issue of compliance of Moldova’s audiovisual legislation 
with EU standards.  

Investment  in  Research  and  Innovation  remains  at  relatively  modest  levels.  In  May  2008 
Moldova  formally  expressed  its  interest  to  discuss  the  terms  and  conditions  of  its  possible 
association  to  the  7th  research  framework  programme  (FP7).  The  Academy  of  Sciences 
(which  is  responsible  for  the  implementation  of  FP7  in  Moldova),  has  been  involved  in 
preparatory  technical  discussions  with  the  European  Commission  services,  which  led  both 
sides  to  conclude  that  a  later  association  should  be  well  prepared,  in  particular  through 
information and capacity-building measures to allow Moldova to reap the full benefit of such 
an  association.  Meanwhile  the  participation  of  Moldova  in  FP7  has  slightly  increased 
compared to its participation under FP6, mostly under the 'Capacities' and 'Marie Curie' calls 
for  proposals.  However,  the  overall  number  of  applications  is  however  still  comparatively 
low.  

7. 

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

Moldova  adopted  a  new  education  codex  in  October  2008  while the  Ministry  of  Education 
and  Youth  also  established  a  civil  society  forum  to  collect  and  evaluate  feedback  on  the 
former.  In  line  with  its  commitment  under  the  Bologna  Process,  Moldova  moved  towards 
greater  harmonisation  with  EU  standards  in  higher  education,  elaborating  a  normative 
framework  for  the  organisation  of  masters  study  programmes.  In  September  2008,  the 
ministry  implemented  a  credit  system  based  on  EU  standards  and  established  a  specific 
department  for  accreditation  to  oversee  its  operation.  Furthermore,  a  national  qualification 
framework  is  under  preparation  further  advancing  Moldova’s  alignment  to  European 
approaches. Moldova should consider membership of the European Quality assurance register 
(EQAR) which may assist in this regard. In September 2008, Moldova also participated in a 
conference on qualifications frameworks, hosted by Armenia in cooperation with the Council 
of Europe.  

Higher  education  reform  continued  to  benefit  from  participation  in  Tempus  with  nine 
Moldovan projects selected under the first Call for Proposals for Tempus IV in the areas of 
innovation, technology and environment. Six Moldovan students received scholarships under 
Erasmus  Mundus  for  the  academic  year  2008-9  while  student  and  academic  mobility  was 
further  enhanced  through  participation  in  the  Erasmus  Mundus  External  Cooperation 
Window. In addition, nine Moldovan students received scholarships in European integration 
studies at masters level under a special pilot project for the academic year 2008-2009. Such 
possibilities should also been extended in future to graduate students from Transnistria-based 
universities.  

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In the area of vocational training, reform continued in line with the 2007 national strategy 
with  broad  donor  support.  Greater  attention  is  being  paid  to  meeting  the  demands  of  the 
labour market through cooperation with both the Ministry of Economy and Commerce and the 
Ministry  of  Social  Protection,  Family  and  Child  aiming  to  identify  and  match  training 
provision to core employment needs. 

Youth organisations and young people continued to benefit from participation in the Youth in 
Action  Programme  with  a  particular  interest  in  voluntary  service  activities.  In  order  to 
optimise  benefit  from  the  programme,  additional  resources  would  need  to  be  invested  in 
improving access and disseminating information on the opportunities its offers, particularly in 
rural areas, in the context of linkages and synergies with cross-border cooperation. 

In the area of culture, Moldova organised seminars and other information events in order to 
promote and publicise its implementation of the 2005 UNESCO Convention on the Protection 
and  Promotion  of  the  Diversity  of  Cultural  Expressions.  In  addition,  Moldova  ratified  the 
Council of Europe Framework Convention on the  Value of Cultural Heritage  for Society in 
September 2008. Preservation of cultural heritage is a main priority with less attention to the 
promotion  of  cultural  innovation  and  development.  The  independent  culture  sector  is 
chronically  under-funded  and  marginalised  in  terms  of  influence  on  cultural  policy-making. 
Equal opportunities in terms of access to State funding for all cultural producers active in the 
field would be advised.  

In August 2008, a National Strategy for the Development of Civil Society in 2008-2011 (later 
endorsed  by  the  Parliament)  was  signed  between  the  Government  and  a  group  of  33  civil 
society  organisations.  In  September  2008,  as  reported  above,  a  National  Council  for 
Participation  held  its  constituent  meeting.  Once  formally  established,  it  will  provide  the 
institutional framework for consultation between civil society, including economic operators, 
and public authorities at all levels of government.  

Moldova continued reform of its health sector inter alia in the context of the national health 
policy  2007-2021  and  the  action  plan  on  the  implementation  of  the  national  development 
strategy,  which  was  adopted  in  February  2008.  The  country  drafted  an  action  plan  to 
implement  the  international  health  regulations.  Moldova  continued  the  fight  against 
communicable  diseases  including  HIV/AIDS  and  the  growing  burden  of  tuberculosis.  It 
expressed  interest  in  cooperating  with  the  European  Centre  for  Disease  Prevention  and 
Control.  After  ratification  in  December  2008,  Moldova  acceded,  in  February  2009,  to  the 
Framework  Convention  on  Tobacco  Control. Moldova  continued  its  participation  in  the  EU 
network  of  competent  authorities  in  health  information  and  knowledge  and  in  the  European 
Commission’s HIV/AIDS think tank. It chaired the South-eastern Europe Health Network in 
the first half of 2008. The Neighbourhood Investment Facility under the ENPI co-financed, as 
a first-ever social project, the modernisation of a hospital in Chisinau.  

8. 

FINANCIAL COOPERATION – 2008 KEY FACTS AND FIGURES  

The  ENPI  financial  envelope  under  the  National  Indicative  Programme  for  Moldova  2007-
2010  is  EUR  210  million.  The  four-year  programme  is  geared  towards  supporting  the 
achievement  of  key  policy  objectives  outlined  in  the  ENP  Action  Plan  and  supports 
democratic development and good governance; regulatory reform and administrative capacity 
building; and poverty reduction and economic growth. The ENPI builds on results achieved 
through  previous  Community  financial  programmes,  such  as  the  Tacis  programme,  which 

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financed  key  reforms  in  the  justice  sector,  export  and  investment  promotion,  regional 
development,  health  system,  the  establishment  of  a  new  social  assistance  system,  among 
others. Modernisation of the border control management system, the fight against trafficking 
in human beings and small-scale rural development projects  were also financed  through the 
Tacis regional and cross-border cooperation programmes. 

With  the  introduction  of  ENPI,  budget  support  became  an  aid  implementation  modality 
available to Moldova. Since then, the EU has channelled increasing amounts of funds through 
this  modality,  which  helps  strengthening  the  policy  dialogue  with  the  EU  and  gives  to  the 
country more ownership and flexibility in  implementing  key  sector  reforms. From the EUR 
40 million financial envelope for the ENPI Annual Action Programme 2007, EUR 21 million 
were used for a budget support operation aiming at modernising the social assistance system. 
The key benchmark for that reform is the progressive introduction of a needs-based system of 
cash  benefits  for  the  poorest  layers  of  the  Moldovan  population.  EUR  11.5  million  were 
disbursed in 2008 under this social sector budget support. Other projects financed under the 
Annual  Action  Programme  2007  for  Moldova  are  the  establishment  of  a  new  radio-
communication network for the Moldovan border guards, an  innovative project for building 
up  civil  society  cooperation  across  the  Nistru  River,  and  sectoral  technical  assistance  and 
twinning. 

The  ENPI  Annual  Action  Programme  2008  (EUR  45.7  million,  topped  up  with  EUR  16.6 
million  from  the  Governance  Facility)  was  allocated  to  a  large  (EUR  46.6  million)  budget 
support  operation  for  the  modernisation  of  the  primary  health  care  system,  to  a  project  on 
border  and  migration  management  (EUR  10  million)  and  sectoral  technical  assistance  and 
twinning (EUR 5.7 million).  

New cooperation tools such as twinning and TAIEX have become operational. One twinning 
project  providing  support  to  the  Parliament  is  on-going,  while  in  the  fields  of  penitentiary 
management,  sanitary  and  phyto-sanitary  norms,  protection  of  intellectual  property  rights, 
competition  policy  and  public  procurement,  twinning  projects  are  under  preparation.  The 
TAIEX  instrument  was  intensively  used  in  2008.  Moldova  also  benefited  from  the  ENPI 
multi-country, regional, and cross-border cooperation programmes.  

Two cross-border co-operation programmes, in which Moldova participates, were adopted in 
2008:  the  Romania-Moldova-Ukraine  programme  2007-2013  (EUR  126.72  million)  and  the 
Black  Sea  basin  programme  2007-2013  (EUR  17.31  million).  Within  the  framework  of  the 
Romania-Moldova-Ukraine  programme,  nine  beneficiaries  signed  contracts  in  August  2008. 
In  May  2008  a  transnational  cooperation  programme  for  South  Eastern  Europe,  to  which 
Moldova was admitted using European Regional Development Funds (ERDF), was launched. 

In 2008, the Board of the Neighbourhood Investment Facility (NIF) decided to provide grant 
support  to  four  projects  for  a  total  contribution  of  EUR  19.75  million,  expected to leverage 
approximately EUR 158.5 million in loans from a consortia of European financial institutions. 
In December 2008, the Moldovan government signed the Financing Agreements on a EUR 12 
million grant to support the 'Road Rehabilitation project (phase 2)' co-funded through a EUR 
35 million loans by the EBRD and the EIB; and on a EUR 3 million NIF contribution to the 
project  'Capacity  assessment  and  modernisation  of  the  Republican  Clinical  Hospital' 
(Chisinau), co-funded  by  a  EUR  9  million loan  from the  Council of  Europe’s Development 
bank. Finally, Moldova benefited also from a Macro-Financial Assistance programme (EUR 
45 million in 2007-2008), whose third tranche (EUR 15 million) was transferred to the State 
Treasury in December 2008. 

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Moldova  substantially  improved  its  external  aid  coordination  mechanism  in  2008.  In  the 
spring, an Aid and Policy Coordination Unit was created under the Prime Minister. This has 
improved  the  policy  dialogue  and  the  national  monitoring  of  EU  programmes  and  projects. 
However, insufficient staffing and too wide a mandate going well beyond coordination of EU 
external aid, are serious constraints that the new Unit needs to overcome.  

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