JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Republic of Moldova Progress in 2012 and recommendations for action Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS European Neighbourhood Policy: Working towards a Stronger Partnership
Date: 2013-03-20
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Moldova, democratisation, economic integration, economic reform, educational reform, institutional reform, political cooperation, political reform, sustainable development, trade cooperation

EUROPEAN 
COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR
FOREIGN AFFAIRS AND
SECURITY POLICY

Brussels, 20.3.2013  
SWD(2013) 80 final 

JOINT STAFF WORKING DOCUMENT 

Implementation of the European Neighbourhood Policy in Republic of Moldova 
Progress in 2012 and recommendations for action  

Accompanying the document 

JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

European Neighbourhood Policy: Working towards a Stronger Partnership 

{JOIN(2013) 4 final} 
{SWD(2013) 79 final} 
{SWD(2013) 81 final} 
{SWD(2013) 82 final} 
{SWD(2013) 83 final} 
{SWD(2013) 84 final} 
{SWD(2013) 85 final} 
{SWD(2013) 86 final} 
{SWD(2013) 87 final} 
{SWD(2013) 88 final} 
{SWD(2013) 89 final} 
{SWD(2013) 90 final} 
{SWD(2013) 91 final} 
{SWD(2013) 92 final} 
{SWD(2013) 93 final} 

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1.  

OVERALL ASSESSMENT AND RECOMMENDATIONS 

This  report  assesses  the  overall  progress  in  the  implementation  of  the  EU-Moldova 
European Neighbourhood Policy (ENP) Action Plan between 1 January and 31 December 
2012.  Developments  outside  this  period  are  also  considered  when  relevant.  It  is  not  a 
general  review  of  the  political  and  economic  situation  in  the  Republic  of  Moldova 
(hereafter  “Moldova”).  For  information  on  regional  and  multilateral  sector  processes, 
please  refer  to  the  Eastern  Partnership  report.  The  ENP  Action  Plan  for  Moldova  was 
adopted on 22 February 2005. Preparations on its successor instrument, the EU-Moldova 
Association Agenda, were initiated in December 2012. 

The  EU-Moldova  political  dialogue  continued  to  deepen  in  2012  and  contacts  between 
high-level officials intensified. In April President Timofti paid a visit to Brussels, which 
European  Commission  President  Barroso  reciprocated  in  November.  In  February, 
Commissioner  De  Gucht  opened  negotiations  in  Chisinau  on  establishing  a  Deep  and 
Comprehensive  Free  Trade  Area  (DCFTA)  as  part  of  the  EU-Moldova  Association 
Agreement.  In  June,  Commissioner  Füle  took  part  in  the  informal  Eastern  Partnership 
dialogue  organised  by  Moldova.  Commissioner  Malmström  met  three  times  with  the 
Moldovan Prime Minister, marking the importance of the visa liberalisation process. New 
EU-Moldova  agreements  were  signed  in  the  areas  of  visa  facilitation,  aviation, 
agriculture,  civil  protection  and  CSDP  cooperation  and  progress  was  achieved  on  visa 
liberalisation. 

The election of President Timofti in March after a stalemate since September 2009 paved 
the  way  for  gradual  political  stabilisation  and  allowed  the  Moldovan  authorities  to 
concentrate  on  structural  reforms.  In  February  2013  and  March,  however,  a  renewal  of 
tensions within the ruling, which led to the downfall of the Government, coalition called 
political stabilisation into question; lasting political uncertainty or the delays induced by 
anticipated  parliamentary  elections  could  undermine  the  reform  and  transformation 
process underway since 2009. 

In 2012, ambitious reforms in the justice and the law-enforcement systems and as regards 
the fight against corruption started to be implemented, with EU financial support. These 
first  steps  revealed  the  complexity  of  the  challenges  to  be  addressed,  in  particular  the 
need to fight corruption at all levels of the State and society. Access to justice continued 
to improve. References to the new law on freedom of expression appeared in case law, 
setting  encouraging  precedents.  An  anti-discrimination  law  ('law  on  ensuring  equality') 
was  adopted,  which  the  Moldovan  government  committed  to  implement  in  a 
comprehensive  manner;  this  remains  to  be  demonstrated  in  2013.  In  November, 
assessment  by  the  European  Commission  of  the  implementation  of  the  second-phase 
benchmarks  of  the  visa  liberalisation  action  plan  was  launched  and  will  continue 
throughout 2013. At the same time, the withdrawal of the broadcasting license of the NIT 
television  channel  by  the  Audiovisual  Coordination  Council,  and  the  opaque  judicial 
process in this case sent negative signals regarding the independence of the Audiovisual 
Coordination  Council  and  the  judiciary.  The  introduction  of  a  ban  on  the  Communist 

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symbols,  which  were  still  used  by  the  largest  opposition  party,  undermined  the 
inclusiveness of the reform process. 

Reform of the public administration continued in the background, in particular with the 
adoption in April of a decentralisation strategy, as well as reforms in the fields of health 
and  education.  Moldova  re-affirmed  its  commitment  to  structural  improvements  in  the 
energy  sector,  while  receiving  from  the  Ministerial  Council  of  the  Energy  Community 
more  time  to  increase  the  competitiveness  of  its  gas  market.  In  trade-related  areas, 
implementation of the European Commission’s recommendations identified in the run-up 
to DCFTA negotiations progressed well enough to allow for the negotiations to start in 
February. 

Moldova retained macroeconomic stability in 2012 thanks to prudent fiscal and monetary 
policies, irrespective of the negative shocks (weaker export demand, severe drought) that 
brought economic growth to a standstill. External vulnerabilities remained high and the 
current account deficit and gross external debt are at elevated levels. Implementation of 
the IMF programme and the central bank's policy for building up international reserves 
mitigated these risks. Structural reforms advanced, although at a slower pace due to the 
negative  external  environment.  These  should  be  accelerated  to  improve  the  investment 
climate, boost efficiency and gradually change the current remittances-driven economic 
model. Privatisation of large-scale companies – another of the Action Plan's priorities – 
came to a halt. Despite some progress with addressing the issue of insufficient protection 
of property rights, legislative loopholes remained and ownership problems in the banking 
sector re-emerged, highlighting the necessity for resolute action. 

With regard to the Transnistrian region (hereafter “Transnistria”), in 2012, the Moldovan 
authorities  significantly  stepped  up  their  contacts  with  the  new  leadership  in  Tiraspol, 
against  the  background  of  a  re-vitalised  ‘5+2’  settlement  process.  This  led  to  a 
breakthrough  in  some  outstanding  issues:  freight  train  traffic  through  the  Transnistrian 
region  was  re-opened  in  April,  beneficial  mainly  to  the  economic  agents  based  in  the 
region.  At  experts’  level,  contacts  allowed  to  study  possible  approaches  to  remove 
obstacles  to  freedom  of  movement  across  the  Nistru  river,  improve  the  mechanism  of 
recognition of Transnistrian university diplomas and ensure proper functioning of Latin-
script  Moldovan  schools  in  Transnistria.  However,  lack  of  a  shared  vision  on  the  basic 
parameters  for  a  comprehensive  settlement  held  up  progress  on  all  issues,  and  political 
and  security  issues  were  not  addressed.  At  the  same  time,  moves  related  to  the  re- 
equipment  of  the  foreign  military  contingent  quartered  in  Moldova  and,  more  recently, 
threats  of  discrimination  by  the  Transnistrian  de  facto  authorities  of  Moldovan  civil 
servants  residing  in  Transnistria  threatened,  by  reviving  the  risk  of  tensions  on  the 
ground, to divert the sides away from mutual engagement. In December 2012, the Dublin 
OSCE  (Organisation  for  the  Security  and  Cooperation  in  Europe)  Ministerial  Council 
succeeded  in  issuing  a  "Statement  on  the  negotiations  on  the  Transnistrian  settlement 
process in the '5+2' format", for the first time since 2002. 

Within the Eastern Partnership, Moldova organised the first informal Eastern Partnership 
dialogue  in  June  and  the  second  Conference  of  Regional  and  Local  Authorities  in 

3 

 
 
September.  The  negotiations  for  an  Association  Agreement  progressed  smoothly, 
justifying expectations that they could be finalised in 2013. 

In  2012,  Moldova  addressed  most  of  the  key  recommendations  contained  in  the  last 
year's  ENP  Progress  Report.  It  stepped  up  efforts  to  implement  judicial  and  law 
enforcement reform, engaged in dialogue with Tiraspol, continued reforms in the areas of 
social  assistance,  health  and  education,  energy,  competition  and  state  aid  as  well  as 
regulatory approximation to the EU acquis. It finalised the remaining steps under the first 
phase  of  the  visa  liberalisation  action  plan,  and  stepped  up  institutional  reform  of  the 
aviation  sector.  As  a  result  of  progress  in  reforms  for  deep  democracy  and  respect  of 
human  rights,  Moldova  benefitted  in  2012  from  an  additional  external  assistance 
allocation of EUR 28 million under the Eastern Partnership Integration and Cooperation 
programme (EaPIC). Progress is still needed on the remaining key recommendations. On 
the  basis  of  this  year’s  report  and  with  a  view  to  sustained  implementation  of  the  EU-
Moldova ENP Action Plan and its successor instrument in 20131, Moldova is invited to: 

•  Continue to vigorously advance reforms in the justice and law enforcement systems, 
through implementation of the justice sector reform strategy, and by continuing the 
reform of the Ministry of Interior and other relevant bodies. 

• 

Intensify  the  fight  against  corruption  in  particular  by  reforming  the  prosecution 
system  and  the  judiciary,  and  by  ensuring  a  fully  functioning  National  Anti-
corruption Centre. 

•  Continue  to  improve  and  further  simplify  customs  procedures  with  a  view  to 

facilitating foreign trade and reducing the risk of corruption. 

•  Prevent  the  resurgence  of  institutional  deadlocks  by  revising  its  constitution;  this 

process should be conducted in an inclusive manner. 

•  Ensure  the  full  implementation  of  the  National  Human  Rights  Action  Plan;    and 
ensure  the  full  application  of  the  Antidiscrimination  Law  including  to  cases  of 
discrimination  on  the  basis  of  sexual  orientation  through,  inter  alia,  secondary 
legislation in line with international obligations. 

•  Engage  pro-actively  with  the  Transnistrian  side  in  view  of  promoting  an  enticing, 
mutually acceptable vision for a common future, and agreeing accordingly the basic 
parameters for a settlement. 

•  Ensure the full and effective independence of the Audiovisual Coordination Council;  

•  Continue to advance dynamically the implementation of the second phase of the visa 

liberalisation action plan; 

1  

The EU-Moldova ENP Action Plan should be replaced by the Association Agenda in the course of 
2013. 

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•  Continue with sector reforms and regulatory approximation to the EU acquis in trade 
and trade-related areas (as identified in the preparation for the DCFTA), in parallel to 
the ongoing DCFTA negotiations; implement in particular the law on State aid; and 
implement energy sector reform in line with the Energy Community commitments. 

•  Step  up  the  reform  of  the  public  administration  and  start  implementing  the 
decentralisation strategy, with a view to strengthening institutional capacity, efficient 
use of public resources and optimization of local administration. 

•  Continue  the  privatisation  process,  in  particular  for  remaining  large  state-owned 

enterprises. 

•  Take steps to strengthen shareholder transparency in the banking sector. 

•  Take further steps to improve the business environment, including treatment of and 
registration procedures for foreign investors, and countering the grey economy. 

2.  

POLITICAL DIALOGUE AND REFORM  

Deep and sustainable democracy 

In  March  2012,  the  Constitutional  Court  validated  the  election  of  Nicolae  Timofti  as 
President of the Republic, ending a long period of political and constitutional deadlock 
and  paving  the  way  for  political  stabilisation  and  large-scale  reforms.  However,  in 
February 2013 the battle royal that broke out into the open between the members of the 
ruling coalition called into question the benefits achieved during 2012. 

In  the  Autonomous  Territorial  Unit  of  Gagauzia,  no  serious  violations  were  registered 
during the legislative elections of September  2012,  according  to  the  chairwoman  of  the 
Gagauz Central Electoral Commission. Neither the Council of Europe nor the OSCE had 
sent international observer missions. 

In October 2012, a ban on the use in Moldova of the Communist symbols entered into 
force,  an  issue  on  which  the  Venice  Commission  and  the  OSCE  Office  for  Democratic 
Institutions  and  Human  Rights adopted  in  March  2013  a  joint amicus  curiae brief  at 
Moldova’s request. VC/ODIHR expressed the view that the blanket prohibition including 
the  automatic  cessation  without  judicial  review  of  the  activities  of  the  Party  of 
Communists in case of repeat violations were clearly contrary to international standards. 

With  the  support  of  a  joint  EU  and  Council  of  Europe  project,  the  Central  Electoral 
Commission worked to reform the system of financing of political parties and prepared 
a  draft  law  on  the  subject.  However,  a  competing  draft  law  on  political  parties  and 
electoral campaign financing was registered in Parliament. 

In  line  with  OSCE/ODIHR  (Office  for  Democratic  Institutions  and  Human  Rights) 
recommendations,  the  electronic  voter  register  was  launched  and  further  extended 
during the local by-elections of November 2012.  

5 

 
 
The  right  of  LGBT  persons  to  freedom  of  assembly  and  other  fundamental  rights 
remained  an  issue.  While  Moldovan Government  showed  increasing  commitment  to 
protect the rights of LGBT persons, and the May 2012 Gay Pride conference in Chisinau 
could be peacefully conducted, the resilience of homophobic sentiments in some parts of 
Moldovan  society  remained  a  concern.  The  European  Court  of  Human  Rights  found 
Moldova  in  violation  of  Convention  provisions  as  a  result  of  bans  on  LGBT  public 
events.  Homophobic  decisions  by 
in  Belts  and  some  other 
the  “aggressive  propaganda  of  non-traditional  sexual 
municipalities,  prohibiting 
orientations” raised similar concerns. The government took steps to have these decisions 
revoked,  repealed,  or  overturned  through  due  legal  processes,  which  in  some  cases  are 
still going on. 

local  authorities 

In April, the Audiovisual Coordination Council withdrew the broadcasting license of the 
opposition  television  channel  NIT  for  alleged  failure  to  comply  with  the  principle  of 
pluralism.  The  appeal  of  the  NIT  channel  was  postponed  several  times  until  it  was 
dismissed by the Chisinau Court of Appeal in February 2013. Both the withdrawal of the 
license as well as the lengthy court procedure raised questions as to the independence of 
the Audiovisual Coordination Council and of the judiciary. 

The new law on freedom of expression started to be used by the judiciary, which thus 
caught  up  with  last  year’s  important  legislative  improvements.  Rules  for  reporting  on 
election  campaigning  in  the  media  were  amended.  The  journalist  code  of  ethics, 
developed by the self-regulating Press Council, entered into force. No progress was made 
however in the reform of the broadcasting code, and of the public broadcaster. 

While little progress was recorded with regard to the investigation of the riots following 
the  presidential  elections  in  April  2009,  Moldova  embarked  on  a  major  review  of  the 
criminal procedure code and other reforms, such as a review of the law on ombudsman 
and  the  civil  code,  to  address  most  of  the  structural  torture  and  ill-treatment  related 
problems identified by the Council of Europe's Committee for the Prevention of Torture. 
The number of complaints for ill-treatment continued to rise during the early months of 
2012.  While  this  rise  is  not  an  absolute  indicator  of  an  increase  in  violence  in  police 
custody,  the  continuing  rise  of  reports  of  abuse  in  detention  is  a  serious  cause  for 
concern. 

Considerable efforts have been made to reform the justice sector, although the General 
Prosecutor's Office is yet to undergo serious reform. A national action plan to implement 
the justice sector reform strategy 2011-2016 was adopted in February. The EU committed 
EUR 70 million to support this fundamental reform. The Ministry of Justice established a 
permanent  mechanism  to  coordinate  and  monitor  its  implementation.  In  July,  the 
Parliament adopted a first package of laws (amending the laws on courts organisation, on 
judges’ status, on the Supreme Council of Magistrates, on the Supreme Court of Justice, 
and on judges’ selection and career). It also amended the criminal and the civil procedure 
codes in order to increase the efficiency and transparency of the litigation process. 

Some  progress  was  achieved  in  the  field  of  anti-corruption,  despite  some  political 
bickering.  A  comprehensive  anti-corruption  strategy  and  a  two-year  action  plan  (2012-

6 

 
 
 
2013)  were  adopted  by  the  Centre  for  Combating  Economic  Crimes  and  Corruption 
(CCECC), in consultation with civil society. Although a comprehensive reform strategy 
document  has  not  yet  been  adopted,  legislative  amendments  aligned  Moldova’s  legal 
framework  with  the  main  international  instruments.  In  October,  the  CCECC  was 
reformed into a National Anti-Corruption Centre, relieved from fighting economic crime 
and directly subordinated to Parliament. Another important step was the creation of the 
National Integrity Commission for civil servants. In March, the Parliament abolished the 
Economic  Court  of  Appeal  and  significantly  reduced  the  competences  of  first-instance 
Economic Courts, widely perceived as being prone to of corruption. 

The Ministry of Interior initiated a deep institutional reform - including the absorption 
and transformation of the Border Police, vigorously pursued by a revamped management. 
A  Reform  Centre  and  a  Strategic  Advisory  Council  were  established  to  supervise  this 
complex reform. Key legislation such as draft laws on police, on carabineer troops, on the 
use of firearms, and on the containment of assemblies awaits adoption. 

Other human rights and fundamental freedoms 

In  May  2012,  the  third  round  of  the  EU-Moldova  human  rights  dialogue  confirmed 
Moldova’s  political  will  to  foster  human  rights  and  the  rule  of  law;  as  a  transparency 
measure,  Moldova  agreed  to  invite  Member  States  and  civil  society  representatives  as 
observers. In March, it accepted most of the remaining 17 recommendations (out of 122) 
of  its  first  UN  Universal  Periodic  Review  that  it  had  not  accepted  already  in  2011.  It 
reworked accordingly its National Human Rights Action Plan of 2011, incorporating also 
comments  from  the  international  community;  these  amendments  await  approval  by  the 
government  before  being  referred  to  Parliament.  In  August,  a  working  group  was 
established  to  match  priorities  and  funding  possibilities  to  ensure  the  Action  Plan’s 
effective implementation. 

Access to justice was substantially improved over the reporting period, as the system of 
free legal aid became applicable to civil law cases, in addition to criminal law cases. 

In  May,  after  five  years  of  efforts,  the  anti-discrimination  law  ('law  on  ensuring 
equality')  was  adopted.  The  Moldovan  Government  gave  assurances  that  the  law  was 
comprehensive  and  in  particular  addressed  discrimination  against  LGBT  persons,  as 
required by Moldova's international obligations. The comprehensiveness of the Law will 
have  to  be  assessed  on  the  basis  of  implementing  legislation  and  guidelines  yet  to  be 
adopted. Training of judges and law enforcement officers was started. The fact that the 
Equality Council to be established under the law would not be given sanctioning powers 
raised concerns across civil society and the international community. There were no new 
developments regarding the ratification of Protocol 12 to the ECHR. 

In  August,  the  law  on  social  inclusion  of  persons  with  disabilities  was  published.  It 
recognised  that  persons  with  disabilities  enjoy  equal  legal  capacity  and  introduced 
requirements to end plenary guardianship (“substituted decision-making”) arrangements, 
and to provide reasonable accommodation. 

7 

 
 
 
In  April  2012,  amendments  to  the  law  on  HIV/AIDS  significantly  improved  non-
discrimination  guarantees  and  strengthened  privacy,  confidentiality  and  data  protection 
guarantees. Residence bans for persons with HIV/AIDS as well HIV/AIDS testing in the 
context of immigration or application for a residence permit, were abolished. 

Amendments  to  the  national  action  plan  in  support  of  Roma  inclusion  established  a 
network  of  community  mediators  to  assist  Roma  people  in  interfacing  with  public 
services.  As  from  January  2013,  fifteen  Roma  community  mediators,  funded  from  the 
State budget, will be dispatched to the regions. 

In February, amendments to the law on religious communities were published. They left 
open  a  number  of  issues,  including  the  requirement  that  religious  communities  are 
established by citizens of Moldova and a provision recognising the ‘particular role’ of the 
Orthodox Church. 

As  regards  domestic  violence  -  often  linked  with  gender  discrimination  -,  more 
protection  orders  were  issued,  but  the  low  level  of  enforcement  persisted.  They  were 
rarely issued within 24 hours as required by law. 

The Lanzarote Convention on Prevention of Abuse and Sexual Exploitation of children 
was ratified; national legislation is awaiting adjustment. 

In  June  2012,  the  Parliament  outvoted  a  presidential  veto  on  the  introduction  of 
mandatory  chemical  castration  for  paedophile  sex  offenders.  In  this  connection,  the 
Government  ordered  that  other  domestic  law  be  brought  into  compliance  with  the  new 
law,  which  may  mean  amendments  eroding  Moldova’s  Patients’  Right  Act,  which 
requires informed consent in the carrying out of any intervention in the health field. 

A  law  on  integration  of  migrants  and  refugees  entered  into  force  in  July  2012.  The 
provisions of the law, while satisfactory as regards refugees and other persons enjoying 
one form of protection, appear to be restrictive when it comes to access by foreigners to 
their  social-economic  rights.  Moldova  ratified  the  two  UN  statelessness  Conventions. 
The  protection  standards  contained  in  the  new  version  of  the  law  on  the  legal  status  of 
foreigners are high and constitute a model for the region and beyond. 

Other Governance related issues  

With  support  from  the  World  Bank,  the  Government  has  embarked  on  an  ambitious 
public administration reform program, aimed at strengthening institutional capacity of the 
public administration for better policymaking, policy implementation, and efficient use of 
public  resources.  It  further  extended  the  deadlines  for  implementing  the  central  public 
service  reform  strategy,  approved  in  2006,  for  two  more  years  (2012-2013).  The 
decentralisation  strategy  adopted  in  April  2012  aims  at  providing  more  autonomy, 
powers  and  capabilities  to  local  authorities,  on  the  basis  of  fiscal  decentralisation;  the 
related  action  plan  for  2012-2015  started  to  be  implemented.  Reform  of  local 
administration  is  urgently  needed,  in  view  of  the  relatively  high  number  of  local 

8 

 
 
 
administration units relative to area and population, but reform makes little headway due 
to resistance from local and regional governments. 

In September 2012, the Parliament approved the civil society development strategy for 
2012-2015  and  the  action  plan  for  its  implementation.  A  new  unit  responsible  for 
cooperation  with  civil  society,  including  representatives  of  the  Government  and  civil 
society,  was  set  up.  Regular  consultations  with  civil  society  continued  via  the  National 
Participation Council, of which a majority of members are part of the Eastern Partnership 
Civil  Society  Forum  National  Platform.  Relations  between  civil  society  and  many 
ministries  are  good,  but  concerns  were  raised  in  relation  to  others,  in  particular  in  the 
context of the negotiations with the EU on a Deep and Comprehensive Free Trade Area. 

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

In  2012  Moldova  aligned  with  56  out  of  62  EU  CFSP  declarations  it  was  invited  to 
support (63 out of 82 in 2011). Moldova expanded its cooperation with the EU in the area 
of  security  and  defence  policy,  signing  in  December  an  Agreement  establishing  the 
framework  for  its  participation  in  EU  crisis  management  operations,  and  submitting 
proposals  for  contributions  to  the  EUCAP  NESTOR  (Regional  Maritime  Capacity 
Building for the Horn of Africa and the Western Indian Ocean) operation. 

Good progress was made as regards cooperation on the Transnistrian issue. Five official 
meetings of the '5+2' forum showed the resilience of the reinstated negotiating process. In 
the course of 2012 the '5+2' reached agreement on two important documents: “Principles 
and Procedures for the Conduct of Negotiations” and on a comprehensive agenda for the 
negotiating  process.  The  bilateral  confidence-building  expert  groups,  except  the  one  on 
demilitarisation  and  security,  worked  very  actively  as  compared  to  previous  years  and 
achieved some progress, albeit often limited, in all areas under discussion. New working 
groups, and a sub-group on human rights, were established. Goods transportation by rail 
through the Transnistrian region was resumed, including a mechanism for joint customs 
inspections of cargo. The EU stepped up its financial and technical support to confidence-
building from EUR 2 to EUR 12 million in 2012. 

Moldova  continued  to  participate  constructively  in  the  work  of  the  EU  Border 
Assistance  Mission  to  Moldova  and  Ukraine  (EUBAM).  With  EUBAM  support,  the 
customs  authorities  and  border  guard  service  of  Moldova  continued  to  enhance  their 
professional capacities, as well as inter-agency cooperation within the country and with 
Ukraine. EUBAM continued to support the demarcation of the state border with Ukraine, 
as  well  as  the  joint  pilot  project  launched  with  Ukraine  in  February  2012,  establishing 
joint control on Ukraine’s territory of the “Briceni-Rososhany” border section. 

9 

 
 
 
 
3.  

ECONOMIC AND SOCIAL REFORM 

Macroeconomic framework and functioning market economy2 

The strong recovery from the 2009 recession came to a halt in 2012, as weakening EU 
activity and adverse weather conditions affected the economy. Real GDP contracted by 
0.1% year-on-year in the first three quarters of the year after a 6.8% growth in 2011 as 
external  and  domestic  demand  subsided  and  investment  fell.  Feeble  EU  demand  hit 
merchandise  exports  and  industrial  production  and  the  summer  drought  took  its  toll  on 
the agricultural sector, where production plummeted by 22% in 2012. 

Weakening  domestic  demand,  coupled  with  lower  food  prices  on  global  markets, 
contributed  to  significant  moderation  of.  Headline  inflation  bottomed  out  at  3.7%  year-
on-year in June, after peaking at 9.2% in August 2011. However, since then rising global 
commodity prices and the weak harvest in the country have caused inflation to accelerate. 
The low inflation in the first half of the year and slowing domestic activity prompted the 
central bank to cut its key policy rate by a cumulative 400 basis points in early 2012 to a 
record low of 4.5% but this was insufficient to boost the economy. 

Irrespective of the weaker-than-expected economic growth, the authorities have retained 
a  cautious fiscal  stance,  trying  to  stick  to  the  initial  ambitious  fiscal  deficit  target.  The 
budget revision in July raised the deficit plan to 1.3% of GDP from the previous 0.9%, 
also including sizable corrective measures to address fiscal slippages in early 2012 and a 
weaker economy. The tight fiscal policies should keep public debt under control. 

The current account deficit remains high, reflecting a weak export base. However, it is 
likely to contract considerably in 2012 due to lower import demand as domestic activity 
moderated,  weakening  exports  to  the  EU  market  as  well  as  resilient  remittances.  The 
current account deficit nearly halved in the first three quarters of 2012. At the same time, 
its financing has worsened in the first half due to a significant decline of foreign direct 
investment  (FDI),  but  the  central  bank’s  gradual  accumulation  of  foreign  exchange 
reserves  as  well  as  good  progress  with  the  IMF  programme  mitigate  external 
vulnerabilities to a large extent. 

Social situation, employment and poverty reduction  

The unemployment rate is thought to have declined from 6.7% in 2011 to an estimated 
5.6% in 2012. 

Moldova  carried  out  important  reforms  on  social  protection,  such  as  the  abolishment 
(since July 2011) of nominal compensations and its replacement with a new cash-benefits 
system was implemented. A law on social inclusion of disabled persons was approved in 
March.  Moldova  developed  and  delivered  new  social  services  for  disabled  persons 

2 Figures on GDP, inflation, trade and employment are generally from Eurostat based on data supplied by 
the national statistical offices; or IMF or Commission Staff estimates, as indicated in the Statistical Annex. 
When other data sources are used these are then indicated. 

10 

 
 
                                                 
including mobile teams, personal assistance, and short-break foster care. The Parliament 
approved a law obliging providers of social services to be accredited every five years. 

A  pension  reform  launched  in  2011,  with  the  support  of  the  EU  and  the  World  Bank, 
was continued in 2012, with the aim of increasing the minimum duration of mandatory 
contributions  and  the  retirement  age  for  certain  categories.  This  reform  should  notably 
help addressing the un-sustainability of the current system that poses a serious risk for the 
public finances. 

Social  dialogue  was  strengthened,  with  functional  sector  councils  organized  in  four 
sectors: construction, agriculture, information technologies, and transport. 

4.  

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

The  EU  is  Moldova's  main  trading  partner  accounting  for  more  than  50%  of  its  trade 
volume in 20113. Bilateral trade flows increased and during the first eleven months of 
2012 amounted to EUR 2.7 billion. EU exports to Moldova consisted mainly of mineral 
fuels,  electrical  machinery  and  equipment. EU  imports  from  Moldova  consisted  mainly 
of  electrical  machinery  and  equipment,  clothing  and  animal  and  vegetal  fats  and  oils. 
Since  2008,  exports  from  Moldova  to  the  EU  benefit  from  the  autonomous  trade 
preferences  (ATPs)  which  offer  free  access  to  the  EU  market  for  nearly  all  products 
originating  in  the  Moldova  except  for  certain  agricultural  products  for  which  limited 
concessions  have  been  given.  ATPs  will  be  automatically  replaced  by  the  DCFTA 
provisions once it enters into force. 

Moldova  has  showed  its  willingness  and  readiness  to  advance  in  negotiating  DCFTA 
with  the  EU.  The  DCFTA  negotiations  were  launched  in  February  2012  will  provide  a 
framework  for  improving  the  trade  and  trade-related  environment  and  further  attracting 
investment  to  the  country,  with  the  objective  of  strengthening  Moldova's  economic 
competitiveness  and  diversify  its  export  base.  Further  progress  was  achieved  in 
implementing the DCFTA-related key recommendations as described below. 

A  bilateral  Agreement  on  the  protection  of  Geographical  Indications  for  Agricultural 
Products and Foodstuffs was ratified by Moldova and concluded by the EU in December, 
and  is  expected  to  contribute  significantly  to  the  diversification  of  wine  production  in 
Moldova. 

Moldova  further  reduced  technical  barriers  to  trade:  the  law  on  standardisation  was 
amended  and  the  law  on  accreditation  and  conformity  assessment  entered  into  force. 
Amendments  to  the  law  on  metrology  were  made.  A  twinning  project  on  accreditation 
and  conformity  assessment  started  in  June.  This  should  further  advance  the  progress  in 
this  area.  A  twinning  project  on  standardisation  and  metrology  is  expected  to  start  in 
2013. In July, Moldova amended the Civil Code and other laws in respect of liability for 
defective  products.  A  law  on  the  industrial  security  of  hazardous  industrial  objects  was 
adopted in May. 

3 Data for 2012 was not available at the time of writing. 

11 

 
 
                                                 
The  modernisation  of  the  Moldovan  Customs  Service  continued  in  2012,  with  support 
from  EUBAM  (EU  Border  Assistance  Mission).  Customs  revenues  form  an  important 
part of the government budget. The dependence of the Government on customs revenues 
for financing its budget constitutes a barrier to simplifying customs procedures, although 
progress  has  been  made.  Moldova  has  shown  tangible  achievements  as  regards 
facilitation of traffic and trade flows by improving communication towards the travelling 
public  and  economic  operators, 
through  amending  rules  and  regulations,  and 
promulgating  relevant  information.  Nevertheless,  further  efforts  are  needed  for  the 
complete implementation of the single window concept in all customs houses. Moldova 
introduced the concept of reliable economic agent and has started to implement the local 
clearance  procedure.  Moldova  has  improved  the  use  of  the  pre-arrival  information 
exchange  system  (PAIES)  with  Ukraine.  Key  performance  indicators  such  as  the 
detection  of  customs  irregularities  and  enhanced  use  of  PAIES  have  led  to  partial 
achievement of objectives and expected results of the PAIES project. Despite progress in 
reforming  the  Customs  Service,  businesses  reported  complicated  and  costly  customs 
procedures. The risk of corruption at the local level appears to remain high. For fighting 
fraud, Moldova examined the possibility of replacing criminal penalties for smuggling of 
goods with fines. Given the potential negative impact on investigations and sanctioning 
of  cases  involving  smuggling  of  excisable  goods,  the  EU  will  continue  to  follow 
developments in this area closely. 

In  line  with  its  food  safety  strategy  and  the  2012  National  Programme  for  Law 
Harmonisation, Moldova took further steps to approximate with EU sanitary and phyto-
sanitary  (SPS)  standards.  It  transposed  twelve  pieces  of  EU  acquis  into  national 
legislation.  In  May,  the  Parliament  adopted  a  general  food  safety  law  which,  inter  alia, 
establishes a food safety agency. A law on animal identification and traceability entered 
into  force  in  January.  Moldova  continued  training  SPS  experts  including  with  TAIEX 
support. The Commission approved residue monitoring plans for aquaculture and poultry 
products, which is a pre-condition for possible future exports of these products. 

The  World  Bank  recognised  Moldova’s  progress  in  working  to  improve  its  business 
climate in the areas of insolvency procedures and investor protection. Compared to the 
previous  year,  Moldova  slightly  improved  its  ranking  to  83rd  place4  (out  of  185)  in  the 
ease of doing business ranking in the World Bank’s ‘Doing Business 2013’ annual report. 
Moldovan  efforts  were  also  reflected  in  the  Global  Competitiveness  Report  where 
Moldova  went  up  five  places  to  position  87  out  of  144  states  assessed.  Despite  this 
progress further reforms are still needed inter alia in countering the grey economy in the 
retail sector, and streamlining of the legislation.  

In  the  area  of  financial  services,  Moldova  adopted  amendments  to  53  legislative  acts, 
including  the  law  on  the  National  Bank.  The  law  on  payment  services  and  electronic 
money  was  adopted  in  May.  In  January,  the  banking  system  started  to  apply  new 
accounting  standards  according  to  the  international  financial  reporting  system.  As  of 

4  Comparison  was  made  with  the  ‘Doing  Business  2012‘ranking  which  was  adjusted  for  changes  in 
methodology  and  any 
see 
http://www.doingbusiness.org 

to  corrections.  For  more 

revision  of  data  due 

information 

12 

 
 
 
                                                 
January  2013,  the  banks  are  implementing  the  IBAN  code  (international  bank  account 
number)  to  perform  cross-border  transfers.  Non-transparent  ownership  in  the  banking 
sector remains an area of concern and needs to be addressed through legislative reforms 
to strengthen shareholder transparency. The National Commission for Financial Markets 
and  the  National  Bank  developed  and  approved  a  Joint  Action  Plan  for  regulation  and 
supervision of the non-banking financial institutions. 

Other key areas 

Regarding tax reform, Moldova put in place a web-portal, including a ‘bar-code’ and an 
‘e-statements’ information systems, facilitating interaction between taxpayers and the tax 
administration.  Notwithstanding  the  measures  taken  in  2008  to  simplify  and  accelerate 
VAT  refunds  and  the  increase  in  the  budget  allocations  to  that  end,  foreign  and  local 
investors  still  face  difficulties  in  getting  overdue  VAT  refunds.  Further  tax  reform  is 
needed to ease the investment climate. In the context of gradual harmonisation of national 
tax  policy  with  the  EU  tax  policy,  Moldova  increased  excise  duties  for  alcoholic 
beverages and cigarettes 

In  July,  Parliament  adopted  a  new  Competition  Law,  which  contains  provisions  on 
antitrust and mergers, following EU rules closely. The Law on State Aid, meant to bring 
Moldovan law into line with the EU acquis, was adopted by Parliament in June 2012. 

In  February,  the  Government  approved  a  Regulation  on  the  registration  of  works 
protected by copyright and related rights. To bring the national legal framework into line 
with  the  new  law  on  copyright  and  related  rights,  legal  amendments  were  adopted  in 
May. The new Regulation on the activity of patent attorneys entered into force in July. In 
April,  Moldova  replaced  its  membership  in  the  Eurasian  Patent  Organisation  with  a 
bilateral  cooperation  agreement.  In  April, 
the 
implementation and enforcement of intellectual property rights ended. 

twinning  project  supporting 

the 

Moldova  continued  implementation  of  its public  procurement  action  plan 2011-2013. 
The Agency for Public Procurement benefited from an EU-funded twinning project that 
helped to draft secondary legislation for approximation with EU Directives. As of August 
2012 it is mandatory to apply the Common Procurement Vocabulary. 

Moldova  approved  a  Strategic  Development  Programme  of  the  National  Bureau  of 
Statistics  for  2012-14  and  started  addressing  the  recommendations  from  the  global 
assessment  of  the  statistical  system  carried  out  in  2012.  The  Law  on  the  Population 
Census  was  adopted;  the  census  itself  was  postponed  from  2012  to  2014.  Moldova  has 
started preparations for this census and needs to ensure that sufficient resources are made 
available. The preliminary results from the 2011 Agricultural Census were disseminated. 
The  Consumer  Price  Index  was  improved  in  line  with  EU  standards;  the  national 
classification of economic activities was revised to correspond to the EU’s NACE Rev.2 
and  is  currently  being  implemented.  Moldova  improved  the  methodologies  of  Labour 
Market Statistics, the Time Use Survey and Social Statistics. 

13 

 
 
In  June,  the  law  on  state  control  over  enterprise  activity  was  adopted,  listing  entities 
authorised  to  carry  out  controls  and  laying  down  procedures  for  them.  In  September, 
Moldova adopted a strategy for the development of the SME sector for the period 2012-
2020  together  with  an  action  plan  to  implement  this  strategy  for  the  years  2012-2014. 
This strategy – which follows on to the recommendations of the SME Policy Assessment 
–  sets  out  the  following  key  priorities:  adjustment  of  the  normative  and  regulatory 
framework  to  match  SMEs'  needs;  improvement  of  access  to  finance;  development  of 
human capital through promotion of competences and entrepreneurial culture; increasing 
SMEs'  competitiveness  and  stimulating  the  innovation  spirit;  facilitation  of  SMEs' 
development in the local regions; and business partnership development. 

In  January,  a  Consumer  Protection  Agency  was  established,  replacing  the  main  State 
Inspectorate  for  Market  Surveillance.  Moldova  prepared  a  Strategy  for  Consumer 
Protection  2013-2020  which  was  expected  to  be  adopted  by  the  Government  at  the 
beginning of 2013. 

Progress  has  been  made  in  the  area  of  public  internal  financial  control  (PIFC).  The 
legal  and  regulatory  framework  is  in  place  and  Moldova,  with  the  aid  of  EU  twinning 
support,  has  started  the  process  of  implementation.  Moldova  also  launched  a 
communication strategy to support PIFC implementation. 

No  progress  was  noted  in  the  areas  of  movement  of  capital  and  current  payments, 
company law and external audit. 

5.  

COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

Cooperation  between  the  EU  and  Moldova  further  evolved  under  the  Mobility 
Partnership. A number of new initiatives were launched in areas such as consolidation 
of  migration  management  capacities  and  diaspora-oriented  projects.    The  extended 
migration  profile  is  expected  to  be  published  in  the  spring  of  2013.  The  Mobility 
Partnership  High-Level  Meeting 
the 
in  November 
implementation  of  the  Mobility  Partnership  and  discussed  the  results  of  the  evaluation 
exercise  carried  out  in  2012,  based  on  a  comprehensive  and  far-reaching  evaluation 
report. 

took  stock  of 

in  Brussels 

Moldova  made  good  progress  in  adopting  and  implementing  migration  and  asylum-
related legislation, and in establishing an efficient migration management system. Laws 
on  integration  of  foreigners,  on  accession  to  the  Convention  on  the  Status  of  Stateless 
Persons  and  on  accession  to  the  Convention  on  the  Reduction  of  Statelessness  entered 
into force. The Government started to implement a new procedure for the determining the 
status of stateless persons, following ratification of the UN Statelessness Conventions and 
subsequent  amendments  to  the  legal  framework.  An  important  remaining  gap  in  the 
asylum  procedure  concerns  the  lack  of  travel  documents  for  refugees,  as  issuing  of 
refugee  travel  documents  was  delayed.  The  Government  launched  the  process  of 
preparing travel documents for refugees, which are, however, expected to be issued only 
in several months’ time. 

14 

 
 
In  the  context  of  the  visa  dialogue,  the  Commission’s  Third  Report  adopted  in  June 
concluded that the benchmarks for the first phase (legislative and policy framework) of 
the Action Plan on Visa Liberalisation (VLAP) were met and that the assessment of the 
benchmarks under the second phase (implementation)  could therefore be launched. The 
Commission also adopted in August 2012 a Report to the European Parliament and to the 
Council on possible migratory and security impacts on the EU of future visa liberalisation 
for  Moldova.  In  November,  the  Council  lent  its  support  to  the  conclusions  of  the  June 
report,  paving  the way for an assessment of Moldova's progress in the second phase of 
the Action Plan on Visa Liberalisation. 

Implementation  of  the  EU-Moldova  visa  facilitation  and  readmission  agreements 
continued, and was monitored at the meetings of the respective joint committees. In June, 
amendments to the EU- Moldova visa facilitation agreement were signed, and ratified by 
Moldova in October. 

The  Moldovan  Border  Guard  Service  (MDBGS),  with  EUBAM  support,  continued 
implementation  of  reforms  aimed  at  advancing  towards  the  establishment  of  a  law-
enforcement  agency  according  to  EU  standards.  Important  steps  were  taken  for  the 
implementation  of  the  national  strategy  and  action  plan  on  integrated  border 
management  for  2011-2013.  The  new  Law  on  the  state  border  and  the  Law  on  border 
police, as well as amendments to the Code of Offences, entered into force in July. Thus, 
the  legal  framework  for  solid  border  management  aiming  to  approximate  with  the 
Schengen  Borders  Code  (Regulation  (EC)  No  562/2006)  and  other  relevant  EU 
legislation was put in place. 

As  a  result  of  the  EU-funded  project  on  support  for  the  introduction  of  biometric 
passports,  the  Moldovan  authorities  issued  exclusively  biometric  passports  in  line  with 
International Civil Aviation Organisation (ICAO) standards to their citizens (including in 
the Moldovan embassies and consulates). 

Moldova made progress in the fight against organised crime. The legislative and policy 
framework  on  preventing  and  fighting  organised  crime  was  established.  The  Law  on 
organised crime was adopted in March (entering into force in September), as well as the 
Strategy and the accompanying Action Plan for 2011-2016 (approved by the Government 
in  2011),  largely  in  line  with  the  European  and  international  standards.  A  Cooperation 
Agreement  between  CEPOL  (European  Police  College)  and  the  Academy  “Stefan  Cel 
Mare” of the Ministry of Interior was signed in December. 

The  Centre  for  Fighting  Trafficking  in  Human  Beings  became  fully  operational.  An 
updated  action  plan  for  2012-2013  on  combating  trafficking  in  human  beings  was 
approved in July. 

Regarding  the  fight  against  terrorism,  the  majority  of  UN  and  Council  of  Europe 
Conventions  have  already  been  ratified  and  entered  into  force.  In  April,  the  Law  on 
preventing and fighting money laundering and the financing of terrorism was amended to 
address  shortcomings  identified  in  the  third  MONEYVAL  evaluation  report  and  to 
implement international conventions. 

15 

 
 
Moldova made progress in the fight against illegal drugs. During the April Dialogue on 
Drugs with Moldova, Azerbaijan, Georgia and Ukraine in Brussels the first evaluation of 
the drugs strategy and action plan was announced, as well as the development of a new 
drugs strategy and action plan. In July, Moldova and the European Monitoring Centre for 
Drugs and Drug Addiction (EMCDDA) signed a Memorandum of Understanding in the 
field  of  combating  drug  trafficking.  Moldova  attended  the  treatment  demand  indicator 
expert  meeting,  and  the  European  Information  Network  on  Drugs  and  Drug  Addiction 
(Reitox)  Academy  on  monitoring  and  evaluation  of  drug  policies  in  Riga  in  October. 
Exchange of information on new psychoactive substances also took place. 

In August, the National  Centre  for Personal Data  Protection launched the personal data 
controllers  filing  register  to  ensure  implementation  of  the  Law  on  personal  data 
protection (entered into force in April), according to which the personal data controllers 
are  obliged  to  notify  the  Centre  before  processing  personal  data.  The  Centre  began 
drafting  the  National  Strategy  on  the  protection  of  personal  data  for  the  period  2013-
2017. 

Eurojust  finalised  the  Evaluation  Report  on  data  protection;  further  institutional  steps 
towards  the  start  of  negotiations  for  a  cooperation  agreement  between  Eurojust  and 
Moldova were launched. 

As regards judicial cooperation, the legislative framework in the area of mutual legal 
assistance  is  largely  in  place.  In  March,  Parliament  adopted  the  Law  on  special 
investigating  activity  and,  in  April,  amendments  to  the  criminal  procedure  code.In 
December,  Moldova  ratified  the  second  Additional  Protocol  to  the  Council  of  Europe 
Convention  on  Mutual  Assistance  in  Criminal  Matters.  Regarding  civil  matters,  there 
were  no  developments  in  respect  of  Moldova’s  accession  to  some  Hague  Conventions, 
such as those on judicial assistance (1965 Convention on the Service Abroad of Judicial 
and  Extrajudicial  Documents  in  Civil  or  Commercial  Matters  and  1970  Convention  on 
the Taking of Evidence Abroad in Civil or Commercial Matters) and on child protection 
(1996  Convention  on  Jurisdiction,  Applicable  Law,  Recognition,  Enforcement  and 
Cooperation  in  respect  of  Parental  Responsibility  and  Measures  for  the  Protection  of 
Children). 

6. 

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

Progress  was  made  in  the  road  transport  sector.  Moldova  started  implementing  the 
national road safety strategy 2011-2020 and the Road Sector Programme co-financed by 
the  EU  and  international  financial  institutions.  Moldova  took  further  steps  to  bring  the 
railway  sector  closer  to  EU  legal  and  regulatory  standards.  In  April,  the  structure  of 
‘Moldovan Railways’ (CFM) was modified to separate infrastructure management from 
railway operations. However, further reforms in the opening of the market and setting-up 
of  institutional  regulatory  structure  are  needed.  A  substantial  increase  in  revenues  from 
freight traffic was registered in 2012. Freight traffic through the Transnistrian region was 
restarted in spring 2012, but due to a number of barriers the volume of traffic was limited. 

16 

 
 
Moldova  carried  out  important  reforms  in  the  field  of  aviation.  The  Civil  Aviation 
Authority (CAA) was established in May to strengthen aviation safety. The EU-Moldova 
Common  Aviation  Area  Agreement  was  signed  in  June,  aiming  to  gradually  integrate 
Moldova into the European common aviation market. The EU plans to provide technical 
assistance  to  the  Moldovan  aviation  authorities  in  order  to  harmonise  the  legal  and 
regulatory framework within the agreed time frame. 

Regarding  maritime  transport,  the  Government  took  steps  to  improve  the  sector’s 
performance.  The  Moldovan  fleet  continued  to  figure  in  the  high  risk  category  of  the 
black  list  of  the  Paris  Memorandum  of  Understanding  on  Port  State  Control,  but  a 
number  of  ships  have  been  removed  from  the  Moldovan  register  and  pre-registration 
control  procedures  were  improved.  In  June,  the  Government  approved  a  new  code  for 
inland shipping which is expected to be adopted in 2013. 

In  January  2013,  the  government  adopted,  following  public  consultations,  the  updated 
energy  strategy  until  2030.  The  sector  is  still  marked  by  low  energy  efficiency,  high 
dependence  on  a  single  supplier  (Gazprom)  and  accumulated  gas  debts  to  Gazprom. 
Negotiations with Gazprom on gas supply, transit and the accumulated debt (also related 
to  ‘Transnistria’)  continued.  Moldova  further  implemented  its  Energy  Community 
obligations;  derogation  for  unbundling  in  the  gas  sector  was  granted,  until  1  January 
2020.  In  May,  the  regulator  increased  electricity  tariffs.  Moldova  pursued  heat  sector 
restructuring  and  addressing  debts  in  this  sector.  Preparations  for  major  energy 
infrastructure projects continued including the Ungheni-Iasi gas interconnection and the 
Balti-Suceava high-voltage electric line. Together with Ukraine and Romania, Moldova 
also continued preparations for possible synchronous interconnection of the Moldovan and 
Ukrainian power systems to the European Network of Transmission System Operators for 
Electricity,  the  continental  European  power  system.  For  this  project,  EU  cross-border 
cooperation support is planned. Draft laws on natural gas, heat and renewable energy law 
are  in  preparation.  Moldova  prepared  drafts  of  a  national  energy  efficiency  action  plan 
2012-2014 and a national renewable action plan 2012-2020. It also drafted an incentives 
package, including on feed-in tariffs,  for increased use of  renewable energy  sources.  In 
June, an energy efficiency fund was established. Moldova implemented energy efficiency 
and  renewable  energy  projects  including  on  enhancing  biomass  use  in  cities.  The  EU 
energy  reform  budget  support  programme  (EUR  42.6  million),  focusing  on  energy 
efficiency and renewable energy, is being implemented. 

As  regards  climate  change,  Moldova  participated  in  preparations  for  the  forthcoming 
regional EU Clima East project (EUR 18 million) that will be implemented in the period 
2013-2016.  Moldova  is  encouraged  to  build  capacity  and  engage  in  the  new  carbon 
market  mechanism  to  be  developed  following  the  17th  and  18th  sessions  of  the  United 
Nations Framework Convention on Climate Change Conference of the Parties. It is also 
encouraged  to  make  additional  efforts  to  fully  implement  the  Cancun  and Durban 
agreements and in particular devise a low-carbon development strategy. 

In  the  field  of  environment,  institutional  capacity  and  resources  to  ensure  strategic 
planning and implementation still pose challenges. More than 20 pieces of legislation are 

17 

 
 
in  preparation,  mainly  with  external  assistance.  The  EU’s  Sector  Policy  Support  in  the 
water sector requires more attention. 

The  Regional  Environmental  Centre-Moldova  improved  its  performance.  It  has  a 
stable  financial  outlook  for  the  years  to  come  and  is  supported  by  the  Ministry  of 
Environment. 

In May, Moldova signed with the European Commission an Administrative Arrangement 
on  Civil  Protection,  committing  the  partners  to  strengthening  their  cooperation  in 
disaster prevention, preparedness and response. Moldova continued to participate in the 
Eastern Partnership flagship project on prevention, preparedness and response to natural 
and  man-made  disasters  (PPRD  East).  As  a  part  of  the  programme  Moldova  is 
contributing to the development of Electronic Regional Risk Atlas. Relevant Moldavian 
institutions are involved in respective activities and the development phase of the atlas is 
close  to  completing  in  the  country.  Moldova  is  encouraged  to  take  advantage  of  the 
guiding  document  on  Risk  Assessment  Policy  for  the  EaP  region  produced  under  the 
PPRD East programme. 

Moldova is among the 168 governments that adopted the "Hyogo Framework for Action: 
Building the Resilience of Nations and Communities to Disasters", but work on Disaster 
Risk Reduction is still only at the beginning and it will require considerable further effort 
to develop capacities and processes. 

Regarding  the  information  society,  the  national  regulator  ANRCETI  strengthened  its 
position  and  dealt  with  market  analysis,  accounting  separation  for  the  incumbent  JSC 
‘Moldtelecom’  and  management  of  numbering  resources.  ANRCETI  adopted  the 
regulation on number portability (to be implemented for both fixed and mobile networks 
in  2013).  In  February,  ANRCETI  published  the  final  versions  of  the  cost  calculation 
models for call termination in fixed and mobile networks. The models’ approach is based 
on  the  recommended  by  the  Commission.  Throughout  2012,  ANRCETI  acted  as 
temporary  chair  of  a  newly  established  network  of  EaP  regulators  for  electronic 
communications (until the formal appointment of chair in the 1st official plenary meeting 
of the network in March 2013). 

In April, the Audiovisual Coordination Council withdrew the broadcasting licence of the 
opposition television channel NIT, thus undermining media pluralism. The appeal of the 
NIT channel was postponed several times until it was dismissed by the Chisinau Court of 
Appeal  in  February  2013.  Moldova  amended  rules  relating  to  reporting  on  election 
campaigning during the election period. The journalist code of ethics, developed by the 
self-regulating Press Council, entered into force. Little progress was made in reforming 
the public broadcaster TRM and the broadcasting code. 

Moldova’s research and innovation policy focused on EU integration. A major success 
in this respect was the country’s association to the EU’s Seventh Framework Programme 
for  Research  and  Technological  Development  (FP7)  as  from  1  January  2012.  The 
Moldovan research and innovation system is marked by a centralised structure, whereby 
the  Academy  of  Sciences  fulfils  a  role  close  to  that  of  a  Ministry  of  Science.  The 

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Academy is the main public research organisation in the country; it allocates most of the 
governmental  funding  for  research  and  development.  The  Academy  adopted  a 
comprehensive  action  plan  to  prepare  the  research  community  for  the  opportunities  of 
FP7 association. 26 public and private institutions participate in 27 projects under FP7. A 
total  EU  contribution  to  these  projects  amounts  to  EUR  76  million,  of  which  EUR  2.6 
million went to the Moldovan partners. The Moldovan partners have been most active in 
collaborative  research  projects  in  ICT  and  health,  and  in  international  research 
infrastructure projects. 

7.  

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

Reform  of  the  education  sector  is  a  high  priority.  Moldova  spends  a  high  percentage 
(around  9%)  of  GDP  on  education,  but  output  and  quality  of  education  are  poor  in 
relation to resources spent due to their inefficient use and an inadequate match between 
education  and  the  needs  of  the  labour  market.  Efforts  to  optimise  the  use  of  resources 
meet  with  considerable  social  resistance  as  they  affect  small  rural  communities, 
minorities and teachers disproportionately. The sector strategy “Education – 2020”, with 
clear  priorities  regarding  the  development  of  all  levels  of  the  education  system  in 
Moldova from both short and long-term perspectives, is still under consideration by the 
Government. The revised Code of Education remained under public discussion. Further 
reforms  are  necessary  on  the  third  cycle  (doctoral  studies),  where  the  Bologna  process 
requirements have not yet been extended. 

Further reforms are also needed in the vocational education and training (VET) sector, 
which will benefit from increased EU support, both through a technical assistance project 
"support  for  the  vocational  education  and  training  sector",  as  well  as  a  VET  Sector 
Budget Support Programme currently under preparation. A VET Strategy was adopted in 
January 2013. 

Moldova confirmed its high interest in the Tempus programme. In 2012, nine additional 
Tempus projects involving the country were selected. To date, all the 33 higher education 
institutions in the country have participated in a Tempus project; the Tempus programme 
made significant contributions towards the modernisation of the higher education system. 
Moldova continued its active participation in the Erasmus Mundus programme with the 
award of seven new scholarships for Erasmus Mundus join Masters courses and further 
190  grants  for  short-term  mobility  organised  within  a  university  consortium.  Ten 
Moldovan  institutions  and  16  individual  researchers  participated  in  Marie  Curie 
Actions,  supporting  researchers’  training,  mobility  and  career  development.    One 
additional project (support to the Association of professors and researchers on European 
integration) was selected under the Jean Monnet Programme in 2012. 

Moldovan youth and youth organisations continue to benefit from the Youth in Action 
Programme.  For  2012  and  2013,  the  European  Neighbourhood  and  Partnership 
Instrument  (EMPI)  is  providing  additional  funds  to  the  Youth  in  Action  Programme  to 
increase cooperation among young people, youth workers and youth organisations from 
the EU and the Eastern Partnership neighbouring countries. In 2012, the setting up of the 

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Eastern Partnership Youth Window within the Youth in Action Programme nearly tripled 
the  number  of  young  Moldovan  participants  in  the  programme.  303  projects  were 
selected in 2012 involving 987 young citizens of Moldova. 

Substantive  progress  was  made  on  cultural  policy  regulation.  Drafting  of  a  law  on 
culture  accompanied  by  a  national  strategy  on  cultural  developments  is  on-going.  A 
national programme for the compuerisation of cultural products was approved. In April, 
Moldova  adopted  a  law  on  protection  of  the  national  movable  cultural  heritage. 
Following  the  adoption  of  a  regulation  concerning  the  conservation  and  restoration  of 
historic monuments, Moldova established an agency for the protection of archaeological 
heritage. An institute for the protection of monuments and a national agency for cinema 
are  to  be  created.  Efforts  should  be  pursued  to  improve  coordination  between  the 
different institutions in charge of heritage protection. Moldova participated in six projects 
under the Eastern Partnership Culture Programme. 

Moldova continued implementing its health reform programmes. The EU budget support 
was  topped  up  by  EUR  6.0  million  under  the  Eastern  Partnership  Integration  and 
Cooperation  programme  2012  funds,  thus  reaching  EUR  49.45  million.  The  country 
continued  restructuring  its  primary  health  care  services  and  the  hospital  sector.  The 
average  salary  of  health  professionals  increased  by  approximately  10%,  but  the 
availability  of  sufficient  financial  means and  health  workers  remained  a  challenge.  The 
first  twinning  project  in  the  health  sector  is  under  preparation.  The  country  continued 
addressing  HIV/AIDS  and  tuberculosis  challenges.  In  2012,  despite  being  invited, 
Moldova  did  not  participate  in  the  Commission’s  HIV/AIDS  think  tank.  Moldova 
adopted  a  strategy  for  prevention  and  control  of  non-communicable  diseases  and 
programmes on tobacco and alcohol control.  Moldovan health workers were trained. The 
country  prepared  an  assessment  of  the  state  of  approximation  of  its  health  legislation 
compared  to  the  EU  health  acquis.  Chisinau  and  Tiraspol  cooperated  well  in  the  health 
sector. 

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