Source: EURLEX
Language: en
Format: md

*|*

# 52014SC0093

**JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in the Republic of Moldova Progress in 2013 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 Neighbourhood at the Crossroads: Implementation of the European Neighbourhood Policy in 2013 /\* SWD/2014/093 final \*/**

  

1. OVERALL
ASSESMENT AND RECOMMENDATIONS

This document
reports on overall progress made on the implementation of the EU‑Moldova
European Neighbourhood Policy (ENP) Action Plan between 1 January and 31
December 2013, although developments outside this period are also considered
where 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, readers should refer to the Eastern
Partnership (EaP) Implementation Report. The draft of the Association Agenda,
the instrument that will supersede the current ENP Action Plan, was presented
in November 2013, and negotiations on it were nearly completed at the time of
writing this report.

Overall, despite
backwards steps in the first half of 2013, Moldova managed to make progress on
significant and sensitive areas of the ENP Action Plan, identified as
priorities in the previous ENP progress report. At the beginning of the year,
the country’s political crisis deepened as a result of
a series of conflicts within the ruling coalition, triggering political stand-off
and an institutional meltdown: state institutions proved vulnerable to the
vested interests of a few people, in spite of the constitutional system of
checks and balances. This discredited democratic institutions, threatened the
transformation process initiated by the Moldovan authorities in 2005, and
affected the political dialogue between the EU and Moldova. However, the
Moldovan administration continued to work on the country’s European agenda, in
particular the visa liberalisation action plan. The European Union stressed to
the authorities in Chisinau the need to overcome the roots of the crisis and
repair the credibility of the institutions. Negotiations on the EU-Moldova
Association Agreement, and human rights and sectorial consultations took place
as planned. Substantial progress was achieved in the visa dialogue, which
allowed to launch and finalise, in March 2014, the EU legislative procedure
towards the visa-free regime for Moldovan citizens.

The election of
a new government in May 2013 signalled a truce among the political elite, but
did not resolve the root causes of instability. It allowed the EU-Moldova
political dialogue to regain momentum, and gave impetus to important reforms,
notably in the justice sector. In June, the EU-Moldova Cooperation Council
announced the substantive completion of Association Agreement negotiations.
High-level contacts intensified. In March, Foreign Minister Iurie Leancă held
informal consultations with the EU and its Member States in Brussels. In May,
Commissioner Štefan Füle celebrated Europe Day in
Chișinău. In July, the High Representative for Foreign Affairs and
Security Policy/Vice President of the Commission Catherine Ashton visited
Chișinău for the second time in two years. In October, in
Chișinău, Commissioner Füle and Commissioner
Dacian Cioloş re-affirmed the EU’s
commitment to supporting Moldova’s democratic reforms and economic recovery,
including against undue pressure.

No new
agreements were signed, but significant efforts were made to implement those
that had been concluded previously, in the areas of aviation, agriculture,
civil protection, participation in EU agencies and programmes, and common
security and defence policy cooperation. Amendments to the visa facilitation
agreement came into force in July 2013, extending existing arrangements to new
categories of people. Significant developments followed in November 2013, with the
initialling of the Association Agreement (including its provisions setting up a
deep and comprehensive free trade area – DCFTA) and the issuing of the European
Commission proposal to lift the Schengen visa requirement for Moldovan citizens
holding biometric passports. In October, Moldova hosted the fifth meeting of
the EaP Civil Society Forum.

Some positive
developments were seen in the field of human rights. Thanks to the sustained
efforts from the government and the Ombudsman, the May 2012 law on equality
began to be effectively implemented. Some progress was achieved on tackling
impunity for ill-treatment and torture, however, judicial treatment of torture
remained biased in favour of the perpetrators. Progress was also noted on
gender equality, inclusion of Roma people, and inclusion of people with
disabilities. Important institutional and media related issues remained
unresolved, however, including rules on political party funding and
transparency of media ownership. The Council of Europe adopted an action plan
in November 2013 to help address these issues, notably constitutional reform,
electoral matters, corruption, justice reform, impunity and ill-treatment,
freedom and pluralism of the media, and local democracy and decentralisation.
The EU strongly supported this initiative, both politically and through the
provision of assistance funds.

Reform of the
justice and the law enforcement systems progressed, helped by a solid budget
increase for the judicial system, a large programme of EU technical and
financial support, and the stimuli provided by the requirements of the visa
liberalisation action plan. A start was made on reforming the prosecution
system. However, implementation confirmed the extent and complexity of the
challenges facing the government —including the resistance to change and the
destructive impact of corruption at all levels — and the need for sustained
political will to tackle them. The fight against corruption in the second half
of the year, combined with several other measures, showed that Moldova was more consistent in addressing the factors that were hindering its long-term
economic performance. Those other measures include the creation of an
inter-institutional communication platform to discuss economic reforms, the
ongoing reform of the vocational education and training system and the adoption
of related business-friendly strategies.

In the short
term, Moldova’s economy recovered well in 2013 on the back of a rebound in
agriculture, after a slight slowdown in the previous year, and its unemployment
rate continued to fall. This allowed the government to continue its fiscal
consolidation efforts. However, since September 2013, Moldova has been faced with Russia’s temporary ban on imports of wine and spirits. Moldova’s economic dependence on agricultural exports to Russia makes it vulnerable to this type of
pressure.

Alarming
developments in the banking sector, coupled with public and legal controversy
around the concession of Chișinău international airport and the de
facto partial privatisation of the country’s main savings bank (Banca de
Economii) highlighted the opacity of the business and investment
environment.

Positive
developments took place, however, in the energy sector, including starting
construction of a gas interconnector to Romania. In the transport sector, a new
modernisation strategy was adopted and, symbolically, the first segment of
European-gauge railway was put into operation. Lack of transparency and the continuing
high level of corruption represented a potential threat to the sustainability
of the steps taken by the government to address Moldova’s structural economic
problems.

As regards the
breakaway Transnistrian region (hereafter ‘Transnistria’), the Moldovan
authorities continued to agree, in a constructive spirit, to follow the ‘small
steps’ tactics of the settlement process. However, lack of a shared vision on
the basic parameters of a comprehensive settlement held up progress in the
‘5+2’ process, which did not address political and security issues. In the last
months of the year, decisions taken (or implemented) by Transnistria dramatically
raised tensions in the security zone (targeting both Moldovan police and
civilians), challenging the established balance of peace. The situation of
Latin-script Moldovan schools in the region, and that of their staff,
significantly worsened in the school year 2013-2014 compared to the previous
one. In December, the Kyiv OSCE Ministerial Council issued a statement that
re-asserted the ministers’ commitment to achieving a comprehensive, just and
viable resolution of the conflict on the basis of the sovereignty and
territorial integrity of Moldova, with a special status for Transnistria that
fully guaranteed the rights of its population.

In 2013, Moldova addressed many of the key recommendations contained in last year’s ENP progress
report. It completed the implementation of the visa liberalisation action plan;
took forward judicial and law enforcement reforms; started restructuring the
anti-corruption framework; stepped up its implementation of the human rights
action plan and the action plan in support of the Roma people; maintained its
dialogue with Tiraspol; and continued with challenging regulatory and sectoral reforms.
As a result, it benefitted in 2013 from an additional assistance allocation of
EUR 35 million, in line with the incentive-based approach. On the basis of this
year’s report, and with a view to sustained implementation of the ENP Action
Plan in 2014, keeping in mind the overarching goal of good governance in all
branches of power and the need for consistent political will and policy
predictability to ensure effective implementation, Moldova is invited to:

intensify the
fight against corruption at all levels, particularly by ensuring the full
functioning and independence of the National Anti-corruption Centre,
providing an enabling legislative framework for the National Integrity
Commission, preventing undue business interest influence on all sectors,
including the judiciary, and ensuring the transparency of public
procurement and privatisation;
conduct
parliamentary elections, scheduled for the end of November 2014, in line
with European and international standards for democratic elections.
Particular attention should be given to not changing electoral legislation
too close to the poll, to avoid moving the goalposts for participants in
the election process;
vigorously
advance reforms in the justice and law enforcement systems, by ensuring
effective implementation of the justice sector reform strategy and the
related action plan, finalising reforms to the prosecution system,
pursuing structural reform of the Interior Ministry, and strengthening
cooperation with EU Member States' judicial and police authorities;
consolidate
its system of protection of human rights and fundamental freedoms,
including by completing the reform of the ombudsman, implementing the
national human rights action plan and related legislation and
systematically combatting impunity, through better coordination of
actors(including representatives of civil society), better public
communication, and funding sufficient to attain the intended objectives; 
continue work
to ensure media freedom and plurality of the media landscape, adopt rules
to increase transparency of media ownership, and complete the reform of
the national broadcaster;
work to
prevent the resurgence of institutional deadlock by revising the
constitution, with a view to strengthening the system of checks and
balances, and clarifying the competencies of the Constitutional Court.
These processes should be inclusive and done in consultation with the
Venice Commission;
continue to
make progress on sector reforms and regulatory approximation to EU law, to
implement the Association Agreement, including the Deep and Comprehensive
Free Trade Area (DCFTA); continue in particular to implement energy sector
reform, diversification of energy sources and energy efficiency plans;
raise public awareness and visibility of the merits of the Association
Agreement;
improve the
business and investment environment and work to increase the
competitiveness of the Moldovan economy, notably by developing better
quality regulation and implementing this transparently, facilitating the
use of innovative technologies, ensuring the protection of intellectual
rights, pursuing work to join the European Cooperation for Accreditation
multilateral agreement, and countering the grey economy;
continue the
reform of education, including vocational and education training, to bring
it into line with the needs of the labour market;
continue to
engage pro-actively with Transnistria to develop an enticing, mutually
acceptable vision for a common future, and to enable Transnistria-based
economic agents to enjoy the full benefits of the future DCFTA, and
support implementation of the recommendations of the Hammarberg report on
the human rights situation in the Transnistrian region;
continue the
privatisation process, with a focus on transparency and accountability;
take further steps to strengthen the supervision of the banking sector;
and continue efforts to increase shareholder transparency, including
through robust enforcement of legislation requiring disclosure of ultimate
beneficiaries;
deepen reform
of the public administration and implement the decentralisation strategy
in an inclusive manner, including by involving civil society.

2. POLITICAL
DIALOGUE AND REFORM

Deep and
sustainable democracy

Between January and May, Moldova went through its deepest political
crisis in years. In March, Parliament dismissed the government of Prime
Minister Vlad Filat, through a vote of no-confidence. In April, Prime Minister
Filat was barred by the Constitutional Court from serving as Prime Minister.
The crisis evolved rapidly into an institutional one, involving almost all
state institutions, which reflected a wider problem of malfunctioning checks
and balances in the constitutional and political set-up. The crisis eventually
ended, but it did lasting harm to the credibility of Moldova’s democratic
institutions. On 30 May, a new coalition government, mostly consisting
of the former coalition partners and headed by former Foreign Minister
Leancă, came to office.

Shortly afterwards, the Constitutional Court struck down a law from
October 2012 prohibiting the use for political purposes of the Communist
symbol, as had been recommended by the Venice Commission and the Office for
Democratic Institutions and Human Rights of the Organisation for Security and
Co-operation in Europe (OSCE / ODIHR).

There have been tensions during the reporting period between the
authorities of the autonomous territorial unit Gagauz-Yeri and the
central authorities, partly linked to unease among the Gagauz elite over the
government’s ‘pro-European’ policies, insufficient representation at the
central level as well as lack of support from the central budget. The Gagauz
legislature decided in November to hold a referendum in February 2014 on a
‘deferred status of independence’ for Gagauzia, conditional on Moldova losing its sovereignty to another country, and on Moldova’s foreign policy direction. The
referendum was deemed illegal by the local court and a criminal case was later
opened with respect to its organisation.

The situation of freedom of expression and freedom of
media remained good overall, with free access and a large number of media
outlets. However, concerns remain over the lack of transparency of media
ownership, and the concentration of mass media ownership and suboptimal plurality
of the media landscape, with mass media being controlled by a few political and
business interests suspected of political interference in editorial policies.
At the beginning of 2014, a seemingly politically motivated effort to restrict
access to the audiovisual landscape for a number of television channels called
into question Moldova’s commitment to upholding the principle of plurality of
media. Reform of the national broadcaster, Teleradio Moldova, remained
unfinished.

The perceived lack of independence of the Audiovisual Coordination
Council (CCA) remained a concern. The media financial environment did not
encourage the plurality of the media landscape, with strongly monopolised
advertising services and mail delivery services markets.

In February, after a long judicial process, the Chișinău Court of Appeal upheld
the CCA’s questionable 2012 withdrawal of the television channel NIT’s
broadcasting license. This long process, coupled with repeated refusals by the
CCA to grant the Moldnews news portal a broadcasting license on grounds of
contradictions in the submitted application, raised questions about the
independence of the CCA and the judiciary. NIT, which is reputed to be close to
the current opposition, has now lodged an appeal with the European Court of
Human Rights. Parliament postponed sine die the discussion of amendments
to the broadcasting code which aimed to increase transparency in media
ownership.

Justice sector reform progressed with
difficulty, partly because of arrangements serving to maintain the political
status quo within the ruling coalition. Cases of corruption in the
judiciary and related impunity have led over many years to a lack of public
trust in the rule of law and an adverse business climate. Priorities for reform
are now the prosecution system, and tackling corruption and the perception of
impunity in the justice and law enforcement sectors. The four rulings made by
the European Court of Human Rights against Moldova in 2013 related to
infringement of legal certainty in contractual relations, torture and inhuman
treatment on procedural grounds, and lack of diligence in investigations.

Parliament adopted a legislative package in October to tighten the
judicial disciplinary process and tackle corruption in the justice sector,
through integrity checks, regulation of judges’ communication with third
parties and penalties for corruption, including confiscation of unlawfully
acquired wealth. The Ministry of Justice and the Prosecutor General’s Office
established a joint working group, which, by November, had prepared a
comprehensive reform plan and draft legal amendments to reform the prosecution
system (including appointment and dismissal procedures, disciplinary measures,
and demilitarisation), as envisaged in the government’s programme.

Reform of the Interior Ministry began to be implemented in March
2013, involving the reorganisation and demilitarisation of the ministry. Issues
such as the transfer of detention facilities to the Ministry of Justice,
however, were not addressed this year.

High-profile corruption investigations were launched during the
political crisis, and in December a package of anti-corruption laws was adopted
by Parliament, allowing tougher penalties for bribery and illicit actions
committed by law enforcement officers, and providing for a significant increase
in judges’ salaries. On 9 May, the government took on oversight of the National
Anti-corruption Centre (rather than Parliament, where it had been previously),
which cast doubts over the future of high-level anti-corruption
efforts. In the second half of the year, the fight against petty corruption
increased, and a number of cases were actively publicised. The effectiveness of
the other branch of the anti-corruption system, the National Integrity Centre,
suffered from the lack of an adequate legal framework and insufficient
resources. Moldova was ranked 102 out of 177 countries in the Transparency
International's Corruption Perception Index 2013, with a slightly lower score
than in 2012.

Since the protests in April 2009, the Moldovan authorities have made
efforts to combat ill treatment and torture. In practice, allegations of
ill treatment and torture are often investigated slowly, are rarely
successfully prosecuted and sentences against the perpetrators are often
suspended by the judges. This contributed to a feeling of impunity that damaged
the effectiveness of the authorities’ efforts.

Other human rights and fundamental freedoms

In April 2013, the fourth round of the EU-Moldova human rights dialogue
took place.

A new law on the Ombudsman institution (the Centre for Human
Rights) was adopted in December 2013, which was a welcome development.

Concerns remain about rights people belonging to religious
minorities — including Jehovah’s Witnesses, Baptists, Adventists and other
evangelical Christian groups — being unable to practice openly and without
harassment or obstruction, notably in rural areas. For a third year in a row,
the Chișinău municipality
first pretexted security reasons to deny the Jewish community the right to
celebrate Hanukkah in public, before finally authorising the event. In May, the
European Court of Human Rights found that Moldova provided insufficient protection
from domestic violence. The Government is considering strengthening the
existing system of court-ordered protection by including emergency police
protection orders.

In a positive development, the government approved a new action plan
to implement the 2013-2015 national gender equality programme, which for the
first time provides for gender equality measures in the fields of
security, law and order and the national army.

The situation for people with physical, sensory, intellectual and
(real or perceived) psychological disabilities remains difficult, as
they continue to face discrimination and social exclusion, even though there
has been a significant decrease in institutionalisation. There were numerous
reports of abuse of people in psychiatric detention during 2013, such as
reports of serial sexual assaults in the Bălţi neuro-psychiatric
residential institution. However, the pilot ombudsperson for psychiatry,
established with UN financial support, was not given full access to all places.
Despite the ad hoc law adopted in August 2012, systemic problems remained
in the system of guardianship for people declared to be lacking in capacity.

Good progress was seen in the field of anti-discrimination.
In 2013, courts ruled for the first time on the law to ensure equality, which
came into force on 1 January 2013. There have been two positive judgments, in
which courts found that discriminators had violated the law. The council on
preventing and combating discrimination and ensuring equality (‘Equality
Council’) was established in July and given a budget lasting until 2015.

Also, for the first time, the local lesbian, gay, bisexual,
transgender and intersex community was able to hold a small number of public
events with effective police protection. Several pieces of local and national
legislation, seen as contrary to the law on ensuring equality, were challenged
in court or Parliament by the government or the Ombudsman, and were
subsequently annulled or repealed. The process of removing discriminatory
provisions from all legislation has yet to be completed, however.

Discrimination on grounds of HIV/AIDS remained an issue, though less
prominently than in previous years, with cases of people with HIV being refused
operations or admission to hospital.

As regards ethnic minority rights, although discrimination
and widely-held prejudices against Roma people persist in society, active
integration policies proved effective. In November, the first group of
community mediators to assist Roma people in interfacing public services began
work. Fourteen community mediators started their work on the ground, in fifteen
communities, and their number is to be increased to forty-eight next year.

In April, Parliament amended the criminal code to include provisions
on genocide, crimes against humanity, and war crimes, as well as the use of
prohibited means and methods in the conduct of war.

Other Governance related issues

Work to de-politicise and professionalise the central and local
public administration continued throughout the year, but was hampered by an
unwillingness to devolve decision-making powers and responsibilities to
non-political civil servants. The draft law on administrative procedures was
still under revision as of the date of reporting. Limited developments were
recorded on decentralisation. The implementation of fiscal decentralisation
was postponed to 2015. Preparatory training on setting local budgets in line
with future local autonomy rules revealed the reticence of some local
decision-makers to allow for more citizen participation in the political life
of communities.

Cooperation on foreign and security policy, regional and
international issues, conflict prevention and crisis management

In 2013 Moldova brought itself into line with 28 out of the 32
common foreign and security policy declarations the country was invited to
support (compared to 56 out of 62 in 2012). In April,
Parliament ratified the common security and defence policy framework
participation agreement, which allowed Moldova to be involved in several EU crisis
management operations. At the same time, structural reform of the security
and defence sector began, and Moldova requested EU assistance in harmonising
and upgrading its security and defence policies.

Moldova continued to cooperate constructively with
the EU Border Assistance Mission (EUBAM). With EUBAM support, the
Moldovan customs and border guard services continued to enhance their
capacities and to secure inter-agency cooperation both within Moldova and between Moldova and Ukraine. EUBAM continued to support the demarcation of the state
border with Ukraine, as well as the pilot project launched in 2012,
establishing joint control of the ‘Briceni-Rososhany’ border section and
beyond.

Transnistria

Little development was seen in the Transnistrian conflict resolution
process. Overall, tensions increased on the ground, while the continuation of
regular talks in the 5+2 format, which followed the ‘small steps’ tactics,
failed to tangibly improve the situation for people caught in the conflict.
While the intensity and frequency of meetings in the 5+2 framework was
maintained, there was a lack of concrete progress towards a political
settlement. A significant exception was the unilateral change of Moldova’s migration policy, which allowed Transnistrian residents holding non-Moldovan passports to
travel freely from and to Moldova, as do citizens of Moldova. Against this
background, regular meetings with the regional leadership, including high-level
meetings, contributed episodically to improving the atmosphere in relations
between Chișinău and Tiraspol. Agreements were reached on maintaining freight train traffic through the region,
and on removing obstacles to the freedom of movement across the administrative
boundary line. On the technical side, Chișinău and Tiraspol concluded an agreement on the payment of pensions.

In the run-up to the Vilnius summit, Transnistria took provocative
measures, targeting not only Moldova’s police forces, but also ordinary people
in farms and schools. In May, it adopted a ‘law on the state border’ defining
the administrative boundary line as a ‘state border’ and making claims on
territories administered by Moldova. The Moldovan authorities reacted with
restraint to these decisions.

The implementation of the EU confidence-building programme
received a fair reception on both sides of the Nistru/Dniester river, resulting
in specific cross-river partnerships in various sectors, ranging from joint
business trips to the EU for local entrepreneurs and road safety partnerships,
to numerous social projects and joint civil society dialogue on conflict
resolution.

3. ECONOMIC
AND SOCIAL REFORM

Macroeconomic framework[1]

Economic growth picked up in 2013, after
a significant slowdown in 2012 as a result of weaker export demand from the EU
and the adverse weather conditions that hit the large agricultural sector
severely. GDP grew by an estimated 5.5% compared to -0.8% in 2012. This pick-up
was attributed to a strong growth in agricultural production (+36% in the first
nine months of 2013, compared to the same period in 2012), following a
contraction of 23.3% in 2012, and a solid growth in the industrial sector
(+7.5%) in the first nine months of 2013.

Headline Consumer price index (CPI) and core inflation, which
respectively amounted to 5.2% and 4.8% in 2013, were quite stable when compared
to 2012, but about 2.5% down from the inflation level in 2010-2011, when it
averaged 7.5%. This improved inflationary outlook enabled the National Bank of Moldova to continue its policy of monetary easing. It started in 2012 when it cut rates
aggressively by cumulative 400bps. Since April 2013, the key policy rate
was kept at a record low of 3.5 % in response to weak demand pressures.

The fiscal deficit represented 1.8% of GDP in 2013, slightly above
the 1.5% target reflected in the 2013 budget. The prudent fiscal policies
pursued by the authorities allowed a gradual reduction of the public debt
to about 22.6 % of GDP at the end of 2013.

The current account deficit
decreased significantly from 11.3 % of GDP in 2011 to 7 % of GDP in
2012, it
is estimated to have slightly increased in 2013, to 7.6% of GDP.
This reflected some import expansion as economic activity picked up,
counterbalanced by resilient remittances. Overall, remittances rose by 7.1% in
the first 11 months of 2013, compared to the same period in 2012.

External indebtedness edged
up to USD
6.2 billion as of September 2013, or about 80% of GDP. The
vulnerability associated with the high level of external debt was
somewhat mitigated by the National Bank’s market interventions in 2012 and 2013
to replenish the official reserves, which, having also
benefited from inflows from International Financial Institutions (including
under an IMF arrangement that expired in April 2013), amounted to a
record high USD 2.8 billion at year-end 2013, covering five months of imports.

Progress in structural reforms was mixed in
2013. Governance in the financial sector suffered from a number of challenges,
notably a lack of transparency in the recapitalisation of some banks. The
authority of the National Bank was also contested by a Constitutional Court's
ruling in October 2013. On the other hand, the Association Agreement with the
EU, including the Deep and Comprehensive Free Trade Area (DCFTA), was
initialled at the end of November and is expected to bolster trade between Moldova and the EU, attract foreign investment and improve competition, the business
environment and quality and safety standards in general.

Social situation, employment and poverty reduction

2013 saw an increase in unemployment, with an estimated rate of 6.2%
as compared to 5.6% in 2012.

The Economy Ministry continued the practice of conducting extensive
consultations on its main policy initiatives (including, notably, the
Competitiveness Roadmap), and of ensuring the transparency of its work,
including by posting all draft normative acts on the website and publishing
press releases on its activities.

Moldova continued to carry out reforms on social
protection. A new law on special protection of children at risk and children
left behind in migrant households was adopted. Modifications to the adoption
law were made, creating a consultation council for adoptions. The government
adopted a new regulation relating to community mediator work. Two new social
services were launched, providing support to families with children at risk and
providing community homes for children at risk. An electronic information
system for social assistance was launched. Social allocations were increased
and a new social service on ‘personal assistance’ was created for people with
disabilities. The government increased wages in some areas, in sectors such as
culture, health, social assistance, sports, sciences and education. The reform
of the pensions system was presented for public debate.

4. TRADE
RELATED ISSUES, MARKET AND REGULATORY REFORM

Trade relations between the EU and Moldova saw a further improvement
during 2012‑2013. Trade flows have increased by over 10 %, to a
total of EUR 2.97 billion in 2012.[2]
EU imports from Moldova and EU exports to Moldova both contributed to this
growth. Imports from Moldova grew by 11.4 % (to EUR 944 million), and
exports increased by 9.5 % (to EUR 2.03 billion) in 2012. The current
trade relationship continues to be based on the Autonomous Trade Preferences
(ATP) that the EU has unilaterally granted to Moldova since 2008. As of 1
January 2014, the EU has fully liberalised trade in wine under the ATP, in
light of the difficulties Moldova faced exporting wine to its traditional
export markets, as a consequence of trade measures taken by the Russian Federation.

In June, the EU and Moldova completed negotiations on an ambitious Deep and Comprehensive Free Trade Area
(DCFTA), as an integral part of the Association Agreement (AA). The
DCFTA is expected to lock in Moldova’s reform efforts, based on EU law, which
will boost its export potential and economic growth. The EU and Moldova envisage signing the DCFTA and implementing it as soon as possible. In November,
the government approved a roadmap to increase Moldova’s competitiveness. It
contains a set of measures to be implemented in the short and medium term, to
maximise the benefits of the AA/DCFTA.

In February, Moldova completed negotiations on a free trade agreement with Turkey, which is expected to be signed
in 2014. Moldova is also negotiating a free trade agreement on services with
countries in the Commonwealth of Independent States. A draft law on
nomenclature to introduce the new Harmonised System for classification of goods
(HS 2012) and to align Moldova’s classification system with the EU, has been
completed and is expected to be adopted in 2015. This law, which is relevant
for the application of tariffs, is aligned with the latest World Trade
Organisation and World Customs Organisation rules.

An EU High Level
Policy Adviser was appointed to Moldova’s Customs Service and worked
closely with EUBAM to support the ongoing reforms. Moldova should continue its
effort to facilitate trade by introducing automated procedures. In particular,
further steps should be taken to implement the New Computerised Transit System
and a single window concept. Enhanced use of risk assessment methods and the
operation of the pre-arrival information exchange system (PAIES) with Ukraine has achieved good results. Corruption and integrity issues remained a concern but
reforms planned for the human resource sector and the introduction of
performance-related pay should assist in this area. Moldova submitted a request to accede to a
regional convention on pan-Euro-Mediterranean preferential rules of origin. The EU will continue to closely follow the issue of a possible
replacement of criminal penalties with fines for the smuggling of goods. In May, an administrative cooperation arrangement was signed between
the European Anti-Fraud Office and the Moldovan Customs Service to strengthen
the practical framework for cooperation in fight against cigarette smuggling.
For the first time, Moldovan Customs participated in the joint customs
operation "ROMOLUK" with customs authorities of Romania and Ukraine against the smuggling of cigarettes and alcohol.

In the area of free
movement of goods and technical regulations, Moldova continued to transpose EU standards and to withdraw conflicting standards. The
national standardisation programme for 2013 envisages the adoption of 2 625
European and international standards. In 2013, around 3 300 standards were
harmonised and 269 conflicting standards were withdrawn. The National
Institute of Standardisation, created in 2012, became fully operational in
August. A twinning project on accreditation provided support to implement the
law transposing EU requirements for accreditation and market surveillance. A draft law on market surveillance, covering accreditation and
conformity assessment was adopted and came into force in December 2013.

On sanitary
and phyto-sanitary (SPS) issues, Moldova continued to implement the
National Food Safety Strategy, with the launch of the National food safety
agency. In October 2013, this agency was transferred from the Ministry of Agriculture
to the government. Approximation of SPS legislation took a major step forward,
with the adoption of a law on official controls for verifying compliance with
legislation on feed, food and health standards, and animal welfare. Needs
assessments for laboratory infrastructure and equipment have been undertaken
and the Ministry of Agriculture and the Food Industry adopted a plan to
consolidate and modernise the laboratory system. The European Commission
approved Moldova’s residue monitoring plans for eggs, poultry and aquaculture. Moldova was preparing for audits by the Food and Veterinary Office, and hosted TAIEX
pre-audit evaluation visits looking at aquaculture, eggs, poultry, fruit and
wine. EU has approved Moldova as a third country for exporting egg products to
the EU.

Compared to the
previous year, Moldova advanced to 78th place (out of 189 economies) in the
ranking for ease of doing business, in the World Bank’s annual report, ‘Doing
Business 2014’. Progress was made in the areas of starting a business, getting
credit and paying taxes. However, businesses still face difficulties in dealing
with construction permits, getting electricity and trading across borders. Moldova dropped to 89th place (out of 148) in the World Economic Forum’s ‘Global
Competitiveness Report 2013‑2014’. Moldova ranked very low on indicators
such as protection of property rights and intellectual property rights,
effectiveness of anti-monopoly policy and judicial independence. Other major
problems for the business climate were corruption, government and policy
instability, inefficient bureaucracy and tax regulations.

In order to
improve the business and investment climate, Moldova approved a
regulatory reform strategy for the period 2013-2020, aiming to establish a
regulatory framework that supports the efficient allocation of resources and
stimulates innovation and entrepreneurship. In parallel, Moldova approved a detailed roadmap to remove critical constraints in the business
environment, which covers the period 2013-2014.

In the area of financial
services, Moldova amended the law on the National Bank and introduced
changes to its core functions. As a result, legal challenges to the Bank’s
decisions no longer have a suspensive effect. However, the amendments were
struck down by the Constitutional Court, seriously undermining the Bank’s
authority. The government and the National Bank are currently looking into
alternative ways of restoring the Bank’s authority, taking into account the Constitutional Court’s ruling. Moldova also amended the law on financial institutions in
respect of licensing of commercial banks, shareholder transparency and
suitability requirements, as well as protection of property rights in banks.
The law on capital market came into force in September. The law created the
necessary legislative framework for the development of the capital market
through an adequate mechanism for the protection of rights and interests of
investors and consumers, creation and maintenance of equitable, efficient and
transparent markets and mitigation of systemic risks.

On movement
of capital and current payments, authorisation from the National
Bank is required for certain operations that result in the outflow of capital,
in order to mitigate the negative effects of export capital liberalisation on
the national economy. Moldovan banks implemented the IBAN (international bank
account number) code for cross-border transfers. The law on payment services
and electronic money, adopted in May 2012, came into force in September.

There were no
substantial regulatory changes in the areas of establishment and company
law.

Other key areas

Moldova worked to bring its VAT legislation in
line with the EU acquis with support from the IMF and the EU high level
policy advisor for tax issues. The current Moldovan VAT and excise law
should be amended to reflect developments in EU law. Reform of the tax
administration, with particular attention on strengthening tax collection and
control systems, continued under the 2011-2015 state tax inspectorate development
plan. Moldova launched new e-services for tax payers, put a general electronic
register of tax invoices into operation, developed an annual taxpayer
compliance strategy and intensified cooperation with international
organisations and foreign tax administrations.

The Competition
Council has made considerable progress in adopting the secondary legislation
necessary to implement competition law[3]
and state aid law[4].
In June, Moldova adopted a regulation intended to attract private investment in
state-owned commercial companies and existing public-private commercial
companies.

Moldova signed the Marrakesh Treaty to facilitate access to published works
by visually impaired persons and persons with print disabilities. In May, the
first report on the enforcement of Intellectual Property Rights (IPR) in
Moldova in 2012 was published. In order to consolidate the institutional
framework of the IPR system, a draft law regulating the activity of the State
Agency on intellectual property was approved by the government in August. Once
adopted, this law will secure the Agency’s independence and its position as the
strongest element of the national IPR system. In April, the EU–Moldova
Agreement on the protection of geographical indications came into force.

In the area of public
procurement, Moldova adopted three regulations on acquisitions working
groups, small value acquisitions and acquisitions of works.

The National
Bureau of Statistics will conduct a population census in April 2014. The
legal basis for the census is in place, and the pilot population census was
conducted in April 2013. The report on a global assessment of the national
statistical system in Moldova was published and provided recommendations for
improvements that need to be followed up.

In August, the government approved the 2013-2020 public
finance management improvement strategy, including a chapter dedicated to
public internal financial control (PIFC). Following this, the government
approved a draft PIFC strategy for 2014–2017 in December 2013. Moldova is still at an early stage of implementing the PIFC legislation and considerable
further efforts will therefore be required. Moldova made progress in the area of public sector internal audit by
introducing changes to internal audit methods and the certification of
internal auditors. The
first national conference for public sector internal auditors was
organised in May.

The
implementation of the small and medium-sized enterprises (SMEs)
development strategy continued and the first progress report has been
published. Actions to implement the strategy included:

the on-going
programmes supporting SMEs (PARE 1+1, PNAET, loan guarantees for rural
business);
the creation
of five business incubators;
the
introduction of an ‘entrepreneurship curriculum’ in all vocational and
technical education schools, agricultural colleges and other selected
professional colleges.

As part of
efforts to improve access to finance and business development services, and as
a follow-up to the recommendations of the Small Business Act for Europe
Assessment, Moldova engaged in a detailed analysis of these two sectors,
assessing the current state of play and providing a policy roadmap and
guidance. Moldova has established two new industrial parks (‘CAAN’ and ‘Raut’).
At the beginning of 2014, Moldova requested agreement for it to participate in
the EU Programme for the Competitiveness of Enterprises and SMEs (COSME).

In June, Moldova adopted a consumer protection strategy for 2013 to 2020. The consumer
protection agency became fully operational and started implementing the
strategy. As part of its monitoring responsibility, the agency conducts
surveillance on domestic markets for industrial goods and services, including
services provided by public utilities.

5.
COOPERATION ON JUSTICE, FREEDOM AND SECURITY

The Department of Border Police in the Moldovan Interior Ministry
continued, with support from EUBAM and an EU high-level advisor, to implement
reforms to establish a modern border authority in line with the Schengen
Catalogue of recommendations and other best European practices. Significant steps were taken towards implementing the
2011-2013 National Strategy and Action Plan on Integrated Border Management.
Amendments to the implementing regulations of the new law on the state
border and the law on border police, and amendments to the Contravention Code
came into force in July 2012 and June 2013. Border checks and
surveillance were carried out mainly in line with EU standards and the risk
analysis system was organised according to Schengen best practices.

Cooperation between the EU and Moldova developed under the Mobility
Partnership. In particular, in the context of one of its pilot projects, Moldova made good progress in mainstreaming migration into national
development policies through the long-term development strategy, ‘Moldova
2020’. A comprehensive and far-reaching evaluation report, the first-ever done
for a Mobility Partnership, was issued at the end of 2012. The first ever
online scoreboard database of projects for a Mobility Partnership was created
in March. In total, 63 projects were completed, 29 are ongoing and nine are
under consideration. The first Extended Migration Profile of Moldova was
produced in March. This innovative tool provides a framework for bringing together
information on various phenomena related to migration, allowing the government
to have an overview of the complex causes and effects of migration processes.

Moldova made
good progress in in adopting and implementing migration and asylum-related
legislation, and in establishing an efficient migration management system, in
line with EU and international standards. The integrated information system on
migration and asylum was completed and launched. Secondary legislation relating
to the law on the integration of foreigners was approved and implemented. The
capacity of the relevant institutions in the field was increased, and the level
of authority was raised and extended in geographical terms. Inter-agency
coordination on migration was significantly improved, in particular through
signing and implementing cooperation agreements with key migration and asylum
stakeholders. Good progress was made on consolidating the institutional
framework on migration and on developing the structure of the Bureau of Migration
and Asylum. Several new key teams were created (such as the Directorate for
Migration Control and the Risk Analysis Unit) and a new organisation chart was
adopted.

Travel documents for refugees together with fourth
generation biometric passports for Moldovan citizens
will be issued as of mid-2015.

Progress on preventing and combating illegal migration was
particularly positive, with the strengthening of the regional presence of the
Bureau of Migration and Asylum and the opening of three regional offices of the
Bureau’s Directorate for Combatting the Illegal Stay of Foreigners. Moldova made progress on combatting
illegal migration through Transnistria, drafting legislation to impose
administrative penalties on foreign travellers non-resident in Transnistria who
fail to register their presence after entering Moldovan territory through a
non-controlled segment of the border. The text of the amendment to the
Contravention Code expressly excludes residents of Transnistria from the scope
of this law, regardless of the passport(s) they hold. These amendments to the
Contravention Code came into force in November. In
parallel to the legislative amendments, six new territorial Bureau of Migration
and Asylum offices were established in the security zone to offer additional
registration services to foreigners. These measures proved to be highly
controversial in relations with Transnistria, where they are seen as
limitations on the freedom of movement of people between Transnistria and Moldova. The Moldovan authorities carried out information campagins to explain the new
rules to the public and highlight the improved legal security and benefits of
using territorial offices.

In the context of the visa dialogue, the Commission’s fourth
report on the implementation of the Visa Liberalisation Action Plan (VLAP),
adopted in June, concluded that Moldova is broadly in line with all the
benchmarks set, and confirmed that Moldova has made very good progress. In
September, Moldova submitted the last report on its VLAP implementation status,
to facilitate the Commission’s active monitoring, with a view to reporting at
the November EaP Summit in Vilnius. The fifth report on the VLAP
implementation, adopted in November, concluded that Moldova meets all the
benchmarks set in the four blocks of the second phase of the VLAP. Following
these positive and final reports, the Commission proposed
to move Moldova to the positive list under Regulation 539/2001 and grant
Moldovan citizens who are holders of biometric passports visa-free travel to
the Schengen area. The proposal was agreed to by the European Parliament in
February 2014 and approved by the Council in March 2014.

Implementation of EU-Moldova visa facilitation and
readmission agreements continued in a satisfactory manner, and was
monitored at meetings of the respective joint committees in June 2013. Amendments to the EU-Moldova visa facilitation agreement, signed in
June 2012, came into force on 1 July 2013. Moldova also continued to make progress on return and readmission. An implementing
protocol to the readmission agreement was signed with the Benelux countries.
Negotiations continued on readmission agreements with Georgia, Ukraine, Lebanon, Azerbaijan, the Russian Federation and Armenia. National legislation
was amended to transpose the main provisions
of European Council Directive 2008/115/EC on the return of illegally staying
third-country nationals.

Moldova continued to progress in the fight against organised crime.
The government implemented the law on prevention of and combatting organised
crime, and the strategy and the accompanying action plan for 2011-2016. The
action plan was drawn up in line with reforms and systemic changes in the law
enforcement authorities (e.g. the reform of the Interior Ministry and the National
Anti-corruption Centre) and European and international best practice.

The permanent
secretariat of the national committee on trafficking in human beings drafted a
report on the 2013 implementation of the 2012-2013 national action plan on
people trafficking. It was published in August 2013 (including on the national
anti-trafficking website). The new action plan for 2014-2016 is being developed
and is expected to be approved during the first half of 2014.

The
authorites continued addressing the issue of drugs and implementing the 2011-2018 Anti-Drug Strategy and its Action Plan. Cooperation and information exchange with the European Monitoring Centre for Drugs and Drug Addiction
(EMCDDA) continued.

The road map for the
implementation of the strategic cooperation agreement between Moldova and Europol was signed in February and then implemented. The first
secondment of a Moldovan liaison officer to Europol began in July 2013. In
November, Europol's Management Board submitted the report on its assessment of Moldova’s data protection regime to Europol's Joint Supervisory Body, following a
fact-finding mission in October. Once the Joint Supervisory Body gives its
agreement, EUROPOL could commence negotiations with Moldova for concluding an
operational cooperation agreement.

Regarding the fight
against terrorism, the majority of UN and Council of Europe conventions
have been ratified and have come into force. Moldova is part of 16 United
Nations conventions on fight against terrorism and continued to actively
support the Council of Europe initiatives on the fight against terrorism.
During 2013 the relevant law enforcement authorities ensured efficient
implementation of the national and international standards on prevention and
fight against terrorism. Moldova continued to align itself to the EU
statements/CFSP Declarations on prevention and fight against terrorism.

Following the
finalisation of the negotiations on the Cooperation Agreement with Eurojust,
the decision on the signature of the agreement was submitted to the Council of
the EU and is pending adoption.

The relevant authorities of the Republic of Moldova were very active
in further consolidating and implementing the legislative and policy framework
on data protection. The Data Potection Strategy for 2013-2018 and Action
Plan for its implementation were adopted in October.

As regards judicial cooperation in civil matters, the 1965
Hague Convention on Service Abroad of Judicial and Extrajudicial Documents in
Civil and Commercial Matters came into force for Moldova in February, while
other Hague conventions remain unratified. As regards judicial cooperation in
criminal matters, the Second Additional Protocol to
the European Convention on Mutual Assistance in Criminal Matters entered into
force in December. The authorities continued the implementation of the
legislative framework and relevant conventions in criminal matters and
processed an important number of cases with third countries.

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

A new transport
and logistics strategy for 2013-2023 was approved, setting objectives for
the road, rail, aviation, maritime and inland waterway sectors. A comprehensive
investment plan was prepared for specific sectors. The strategy introduces an
integrated approach to transport, logistics and trade facilitation.

In the road
sector, the first phase of road maintenance reform was completed. Several
road renovation projects were implemented with external financial support,
including from the EU Neighbourhood Investment Facility, and some of these were
finished this year. Two new loans of EUR 150 million each were signed with the
European Bank for Reconstruction and Development and the European Investment
Bank for the improvement of more roads. In the maritime and inland waterway
sector, a law on inland waterway transport was passed. The Moldovan fleet
continued to figure on the Paris Memorandum of Understanding on Port State
Control’s black list, but it moved from the ‘high risk’ category to the ‘medium
to high risk’ category. In the aviation sector,
authorities worked on implementing the EU-Moldova Common Aviation Area, and a
three-year EU technical assistance project was launched to support the
harmonisation of the legal and regulatory framework. The
first joint committee meeting took place in February in Chișinău. In July, amendments were made to the civil aviation law,
bringing the Common Aviation Authority under the political authority of the Prime
Minister’s office rather than the Ministry of Transport. In 2013 Moldova also signed a working arrangement on the Safety Assessment of Foreign Aircraft
(SAFA) programme with the European Aviation Safety Agency (EASA).

The government
continued to focus on integration with the EU energy market and to
address the main challenges in the energy sector, i.e., the security of supply
situation with very high dependency on few external suppliers, accumulated
energy related debts and low energy efficiency. A revised energy strategy was
adopted.

The government
participated in the activities of the Energy Community. New draft electricity
and gas laws to ensure proper implementation of Energy Community commitments
were developed. They were approved by the government and sent to Parliament at
the end of the year. The Economy Ministry developed a roadmap for implementing Moldova’s Energy Community commitments between 2013 and 2020, including its obligations
under the third package. A series of workshops were organised in Chișinău as part of the Danube strategy to implement the
third package. An EU-Moldova joint expert group involving interested EU Member
States was also set up, to give legal and technical support for the
implementation of the relevant EU energy laws in Moldova.

Parliamentary
dismissal of the head of the national energy regulator in July, prior to the
expiry of his term of office, raised serious questions over the regulator’s
independence, which Moldova is obliged to ensure under the Energy Community
Treaty. In September, Moldova’s Constitutional Court declared the dismissal had
been illegal.

Moldova intensified cooperation with Romania on common energy projects, and
a list of jointly-selected gas and electricity interconnector
projects was agreed with the European Commission and Romania in November. Four
technical meetings between the Commission, Moldova, Romania and international
financial institutions were organised in Brussels to support the implementation
of these projects. The 110 kV electricity cross-border connection between
Falciu and Gotesti was completed. In August, Commissioner Günther Oettinger
attended the inauguration of work on the Iaşi-Ungheni gas interconnector,
a project to diversify sources of gas supply, which has the potential to
significantly increase Moldova’s energy security. The project is due to be
completed by March 2014. The extension of this pipeline from Ungheni to Chișinău would significantly improve Moldova’s energy security.

Moldova continued working with the World Bank on the restructuring of the
district heating sector and on settling the gas debts related to this sector.
The merger of district heating companies into the new enterprise
"Termoelectrica", which was approved in December, represented an
important step forward in restructuring.Moldova also continued to work on
improving energy efficiency and the development of renewable energy
sources with the support of the EU energy sector budget support programme. The
2013-2015 national action plan for energy efficiency was developed using the
energy community template and approved by the government in February. A draft
law on renewable energy sources was developed and is expected to be adopted in
the first quarter of 2014. An energy efficiency fund is operational and two
calls were launched for both the public and the private sector. The first 85
projects were approved and involve investments to renovate hospitals, schools
and other public buildings. Moldova became a full member of the Eastern Europe energy efficiency and environment partnership (E5P).

New EU climate
change projects to assist Moldova were launched in 2013, including Clima
East and Climate Forum East. At the nineteenth session of the United Nations
Framework Convention on Climate Change conference of the parties in Warsaw in November, Moldova submitted its third national inventory report on greenhouse gas
sources and sinks in Moldova between 1990 and 2010.

Moldova drafted a new national environment strategy and
environmental protection legislation, which should provide it with a framework
to develop further related legislation and institutional reform. It announced
its intention to adopt a strategy and action plan for the conservation of
biological diversity, and laws on environmental impact assessments, chemicals,
and access to environmental information. Moldova is one of the five ENP countries to have started an enhanced
cooperation with the European Environment Agency (EEA).

The government
adopted most of the secondary legislation required for the full enforcement of
the 2011 water law, which came into force in October 2013. It continued to
implement the sector policy support programme in the water sector, under which
the EU is providing budget support assistance. The results of the programme,
however, were not considered fully satisfactory, due to lack of coordination
among stakeholders and lack of absorption capacity. The Ministry of Environment
also adopted a revised version of its water supply and sanitation strategy.

Draft
legislation to establish a new regulatory framework for waste management was
considered. A national waste management strategy was approved in April, and a
waste management strategy for the country’s southern development region was
developed with support from the EU-funded waste governance regional programme.

The government
supported the activities of Moldova’s regional environmental centre, which
helped to support environmental NGOs in the country.

Moldova actively participated in regional EU programmes in the environment
sector and in the international commission for the protection of the Danube river. In April, it ratified the Kiev protocol on pollutant release and transfer
registers, and in October it signed the Minamata convention on control of
mercury.

In
the area of civil protection, Moldova was intensively involved in the
regional flagship Programme for Prevention of, Preparedness for, and Response
to Natural and Man-Made Disasters (PPRD East). Through the programme the
country became better acquainted with the EU Civil Protection Mechanism and
improved its connection with the Emergency Response Coordination Centre of the European
Commission.

On information
society, the digital Moldova
2020 strategy was adopted in September. This was a framework document, based on
the ‘Digital Agenda for Europe 2020’, aiming to ensure economic growth based on
knowledge and efficient governance by increasing the use of information and
communications technology tools. Moldova made progress on bringing the domestic
regulatory information and communications technology framework closer to the
European one. On 1 July, a mobile phone number
portability service was successfully launched in Moldova, which will improve
competition in both the fixed and mobile telephony markets. The National
Regulatory Agency for Electronic Communications and Information Technology
(ANRCETI) identified the market for access of end-users to fixed locations of
the public telephone network as susceptible to ex-ante regulation and
designated JSC MoldTelecom as significant market power (SMP). During the first
plenary meeting of the EaP Electronic Communications Regulators' Network held
in March, the director of ANRCETI was elected the Network Chairman for 2013.

In the field of audiovisual
policy, the public broadcaster Teleradio Moldova (TRM) made progress on
implementation of its reform strategy for 2010-2015; however, further work is
needed on implementation of organisational reforms.

Concerning research
and innovation, Moldova is the only EaP country with association
status in the Seventh Framework Programme (FP7), participating in 53 projects
in the programme, with a total EU contribution of EUR 3.8 million. Moldova was very proactive in increasing its participation level in the programme and
considered its FP7 status as extremely positive. The FP7 association not only
increased Moldova’s opportunities to participate in FP7 calls, but also allowed
the country to access the EU pool of expertise and knowledge on science policy
management, joint programming and research infrastructure development. As a
follow up to the association to FP7, Moldova applied for association to the
newly launched Horizon 2020 Programme on Research and Innovation. Moldova participated in the Joint Research Center (JRC) Board of Governors, the Strategic
Forum for International Cooperation (SFIC) or the High-Level Group for Joint
Programming (GPC). Moldova is a member of two Joint Programming Initiatives on
Water and Cultural Heritage.

Three new FP7
projects (R2I-Research to Innovation) involving Moldovan stakeholders were
launched in 2013, with EU funding of around EUR 3 million aiming to foster research-industry
partnerships, build Moldovan innovation capacity and facilitate the commercial
use of research. A new FP7 regional project, the INCONET EaP, involving the
centre for international projects at the Academy of Sciences was launched in
September for three years, to prepare for the transition to Horizon 2020 and to
promote the cooperation opportunities of this new programme.

In addition, Moldova launched a number of initiatives to prepare for its participation in Horizon 2020, including
the creation of a science and technology office in Brussels, a competition to
select Horizon 2020 national contact points, and the setting-up of a Horizon
2020 national committee to coordinate the process at inter-ministerial level.

Taking into
account the geographic interconnectedness of the Danube
delta and the Black Sea, Moldova started a dialogue on fisheries and integrated
maritime policy with the Black Sea coastal states at the Black Sea
Stakeholders conference in Bucharest on 30 January 2014.

7. PEOPLE-TO-PEOPLE
CONTACTS, EDUCATION AND HEALTH

Reform of the
education sector continued to be an important priority in Moldova, with high public spending on education (around 8 % of GDP). However,
output and quality of education remained poor due to inefficiencies and an
inadequate match between education offered and the needs of the labour market.
Efforts to optimise the use of resources continued at a slower pace in 2013, as
these were heavily politicised and met significant social resistance, given
their disproportional impact on small rural communities, minorities and
teachers. Reform of the education sector progressed with the release of
a considerably improved ‘Education 2020’ Strategy, setting out clear priorities
on developing the education system in Moldova at all levels. The strategy is
expected to be approved in the first half of 2014. Many of the solutions
proposed in the strategy were included in the revised Education Code, which was
released for public discussion. Progress was also seen on including children
with disabilities in mainstream schools.

Moldova adopted a vocational education and
training (VET) sector development strategy for 2013 to 2020, following wide
stakeholder consultation. The development of a national qualifications
framework was started, while work as part of the EU-Moldova mobility
partnership prompted changes to the classification of occupations, which will
also benefit the VET system. Moldova hosted the EaP regional meeting on
entrepreneurial learning (in the framework of Platform 4), where it presented
examples of good practice such as its new entrepreneurial learning curriculum
and teacher training scheme for secondary schools. A new law on professions was
subject to public debate, and is expected to be approved in the course of 2014.
It is will contribute to developing a national qualification framework,
occupational standards and a curriculum more tailored to the needs of the
labour market, The VET sector will benefit from
increased EU support.

Parliament
approved a legislative initiative to reform post-graduate (third cycle) higher
education and establish an independent quality assurance agency for higher
education and vocational education and training. The establishment of the
sector council on education in June and the implementation of financial
autonomy in all public universities were further positive steps. However,
further reforms are necessary on doctoral studies, where the Bologna process
requirements have not yet been met.

Moldova again confirmed a high interest in the Tempus programme, and
in 2013, nine new projects involving a Moldovan institution were selected.
Tempus made significant contributions towards curricula development, quality
assurance reform and the implementation of financial autonomy of higher
education institutions. In 2013, students and staff from Moldova were selected for 163 scholarships to study at a European higher education
institution, under nine new Erasmus Mundus partnerships. In addition,
nine masters students were awarded scholarships to take part in Erasmus Mundus
joint programmes of excellence. These included eight additional scholarships
awarded under a special window for Eastern Partnership countries. Since 2007,
15 institutions and 25 individual researchers have benefited from Marie
Curie Actions supporting researchers' training, mobility and career
development.

Moldova officially joined the ‘eTwinning plus’ action for
schools, supporting school collaboration through the use of information and
communication technologies. 80 schools and 166 teachers from Moldova are registered, and 29 schools are involved in projects so far.

Moldovan youth and youth organisations continued to
participate in the Youth in Action programme. Additional funds were
provided to the Youth in Action programme in the form
of an ‘Eastern Partnership Youth Window’. In 2013, 315
projects were selected, involving 1048 young citizens of Moldova.

Drafting continued on a law on culture accompanied
by a national strategy on cultural developments. Initiatives to protect
national cultural heritage as part of the Kyiv Initiative were taken, with five
pilot Moldovan towns being selected and restoration works launched on the
Soroca Fortress. Moldova participated in four projects under the EaP Culture
programme. A consultation workshop gathered stakeholders from the cultural
sector, as part of the consultation process for the Preparatory Action on
‘Culture in EU External Relations’.

Moldova
received EUR 6 million under the EaP integration and
cooperation programme, to support the
regionalisation of the public health laboratory network and to improve
health worker training. Ten regional labs were strengthened and re-equipped, and training
equipment was provided to the State Medical and Pharmaceutical University.

Moldova developed, but has not yet launched, a new national programme on
public health. The Ministry of Health also published a strategy paper on
occupational health services which led to considerable public debate. A
performance related pay scheme was introduced in primary healthcare, and
immunisations and prenatal care were included amongst confidence-building
measures adopted in Transnistria. Anti-smoking and anti-alcohol campaigns were
launched, with plans for a new law on tobacco control.

The Food Safety Agency and the Transplant Agency both
became fully operational. The latter was supported by a
new twinning project, and a human tissue bank opened in March. The Medicines Agency was reformed and renamed
the National Medicines and Medical Devices Agency, and the Ministry of Health began revising the country’s medicines legislation to bring it into line with EU directives.

Policy-makers
from Moldova participated in meetings of the HIV/AIDS think tank and the
HIV/AIDS Civil Society Forum, as well as in a TAIEX multi-country workshop on
EU law on the prevention and control of communicable diseases. Moldova strengthened its capacity to implement the international health regulations,
including through participation in training under the EU’s Shipsan action
(which deals with the impact on maritime transport of health threats).

[1]
Figures are from the national statistical office, the central bank, the IMF or
Commission estimates, as indicated in the Statistical Annex. When other data
sources are used these are then indicated.

[2] Data for 2013 was not available at the time of writing.

[3] regulations on the assessment of horizontal agreements, the
assessment of vertical agreements, technology transfer agreements and related
exemptions, merger controls, and the assessment of dominant positions.

[4] a regulation governing notification of state aid and the procedure
for examining and assessing state aid.

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