CELEX: 52004PC0787
Language: en
Date: 2004-12-09
Title: Proposal for a Council Decision on the position to be adopted by the European Communities and their Member States within the Cooperation Council established by the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Moldova, of the other part, with regard to the adoption of a Recommendation on the implementation of the EU-Moldova Action Plan

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      Brussels, 9.12.2004
                                                      COM(2004) 787 final
                                         Proposal for a
                                   COUNCIL DECISION
    on the position to be adopted by the European Communities and their Member States
       within the Cooperation Council established by the Partnership and Cooperation
     Agreement establishing a partnership between the European Communities and their
     Member States, of the one part, and the Republic of Moldova, of the other part, with
   regard to the adoption of a Recommendation on the implementation of the EU-Moldova
                                          Action Plan
EN                                                                                        EN
 ---pagebreak---                              EXPLANATORY MEMORANDUM
The 2002 Copenhagen European Council, closing accession negotiations with ten new States,
recognised that enlargement presented an important opportunity to take forward relations with
neighbouring countries based on shared values, and stated that the Union remained
determined to avoid new dividing lines in Europe and to promote stability and prosperity
within and beyond the new borders of the Union.
The Commission Communication “Wider Europe - Neighbourhood: A New Framework for
Relations with our Eastern and Southern Neighbours” of March 20031 proposed the
establishment of Action Plans with partner countries. On 16 June 2003, the Council welcomed
this Communication and invited the Commission, with the contribution, where appropriate, of
the High Representative, to present proposals for Action Plans for all countries concerned as
appropriate, commencing with Ukraine, Moldova, and Southern Mediterranean partners with
Association Agreements.
On 14 June 2004, the Council welcomed the Commission Communication “European
Neighbourhood Policy – Strategy Paper”2. The Council also welcomed the Commission
proposal to pursue the European Neighbourhood Policy (ENP) through Action Plans to be
agreed jointly with the neighbouring countries concerned and invited the Commission to
propose such Action Plans. Action Plans should have a minimum duration of three years and
be subject to renewal by mutual consent. They should be based on common principles but be
differentiated, as appropriate, taking into account the specificities of each neighbour, its
national reform processes and its relations with the EU. Action Plans should be
comprehensive but at the same time identify clearly a limited number of key priorities and
offer real incentives for reform. Action Plans should also contribute, where possible, to
regional cooperation. The Council also defined how to advance and monitor implementation
of action plans.
The Commission, in close cooperation with the Presidency and the High Representative on
issues related to political cooperation and the CFSP, has held exploratory talks with Moldova
which have resulted in agreement on a draft Action Plan. It covers a timeframe of three years.
Its implementation will help fulfil the provisions in the Partnership and Cooperation
Agreement and will contribute to an increasingly close relationship with Moldova, involving a
significant degree of economic integration and a deepening of political co-operation.
Implementation of the Action Plan will significantly advance the approximation of Moldova’s
legislation, norms and standards to those of the European Union.
The Action Plan is a broad tool for economic and political co-operation, carrying to a further
stage the commitments and objectives contained in the Partnership and Cooperation
Agreement.
In accordance with the Council Conclusions of 14 June 2004, stipulating that the Action Plans
will be approved by the Council and subsequently endorsed by the respective Association or
Co-operation Councils, the Commission attaches the text of a proposal for a Council Decision
on the position to be taken by the European Communities and their Member States within the
EU-Moldova Cooperation Council with regard to the adoption of a Recommendation on the
implementation of the Action Plan in annex.
1
        COM(2003)104
2
        COM(2004)373
                                                2
 ---pagebreak--- The Commission therefore requests the Council to adopt the attached proposal for a Council
Decision.
                                          3
 ---pagebreak---                                        Proposal for a
                                  COUNCIL DECISION
  on the position to be adopted by the European Communities and their Member States
     within the Cooperation Council established by the Partnership and Cooperation
   Agreement establishing a partnership between the European Communities and their
   Member States, of the one part, and the Republic of Moldova, of the other part, with
 regard to the adoption of a Recommendation on the implementation of the EU-Moldova
                                        Action Plan
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to Article 2 (1) of the Council and Commission Decision 98/401/EC, ECSC
and Euratom of 28 May 1998 on the conclusion of a Partnership and Cooperation Agreement,
Having regard to the Treaty on European Union, in particular Article 15 thereof;
Having regard to the proposal from the Commission3;
Whereas:
(1)    The Partnership and Cooperation Agreement establishing a partnership between the
       European Communities and their Member States, of the one part, and the Republic of
       Moldova, of the other part, was signed on 28 November 1994 and entered into force
       on 1 July 1998;
(2)    The Parties intend to agree on an EU-Moldova Action Plan, which will support the
       implementation of the Partnership and Cooperation Agreement through the elaboration
       and agreement of concrete steps towards attainment of its objectives.
HAS DECIDED AS FOLLOWS:
                                        Sole Article
The position to be adopted by the European Communities and their Member States within the
Cooperation Council established by the Partnership and Cooperation Agreement establishing
a partnership between the European Communities and their Member States, of the one part,
and the Republic of Moldova, of the other part, with regard to the implementation of the EU-
Moldova Action Plan shall be based on the draft Recommendation of the Cooperation Council
annexed to this Decision.
3
        OJ C , , p.
                                             4
 ---pagebreak--- Done at Brussels,
                  For the Council
                  The President
                    5
 ---pagebreak---                                              ANNEX
                                              draft
                                    RECOMMENDATION
                   on the implementation of the EU-Moldova Action Plan
The EU/Moldova Cooperation Council,
Having regard to the Partnership and Cooperation Agreement establishing a partnership
between the European Communities and their Member States, of the one part, and the
Republic of Moldova, of the other part, and in particular Article 82 thereof,
Whereas:
(1)     Article 82 of the Partnership and Cooperation Agreement gives the Cooperation
        Council the power to make appropriate recommendations, for the purposes of attaining
        the objectives of the Agreement.
(2)     In terms of Article 99 of the Partnership and Cooperation Agreement, the Parties shall
        take any general or specific measures required to fulfil their obligations under the
        Agreement and shall see to it that the objectives set out in the Agreement are attained.
(3)     The Parties to the Partnership and Cooperation Agreement have agreed on the text of
        the EU-Moldova Action Plan.
(4)     The EU-Moldova Action Plan will support the implementation of the Partnership and
        Cooperation Agreement through the elaboration and agreement between the Parties of
        concrete steps which will provide practical guidance for such implementation.
(5)     The Action Plan serves the dual purpose of setting out concrete steps in bringing the
        fulfilment of the Parties’ obligations set out in the Partnership and Cooperation
        Agreement, and of providing a broader framework for further strengthening EU-
        Moldova relations to involve a significant measure of economic integration and a
        deepening of political cooperation, in accordance with the overall objectives of the
        Partnership and Cooperation Agreement.
HAS ADOPTED THE FOLLOWING RECOMMENDATION:
                                           Sole Article
The Cooperation Council recommends that the Parties implement the EU-Moldova Action
Plan in annex, insofar as such implementation is directed towards attainment of the objectives
of the Partnership and Cooperation Agreement.
                                                6
 ---pagebreak--- Done at [...]
For the Cooperation Council
The President
                            7
 ---pagebreak---                                             ANNEX
                               EU/MOLDOVA ACTION PLAN
1. Introduction
The enlargement of the European Union on 1 May 2004 has brought a historical shift for the
Union in political, geographic and economic terms, further reinforcing the political and
economic interdependence between the EU and Moldova. Enlargement offers the opportunity
for the EU and Moldova to develop an increasingly close relationship, going beyond co-
operation, to involve a significant measure of economic integration and a deepening of
political co-operation. The European Union and Moldova are determined to make use of this
occasion to enhance their relations and to promote stability, security and well-being. The
approach is founded on partnership, joint ownership and differentiation. It will contribute to
the further development of our strategic partnership.
The European Neighbourhood Policy of the European Union sets ambitious objectives based
on commitments to shared values and effective implementation of political, economic and
institutional reforms.
Moldova is invited to enter into intensified political, security, economic and cultural relations
with the EU, enhanced cross border co-operation and shared responsibility in conflict
prevention and conflict resolution. One of the key objectives of this action plan will be to
further support a viable solution to the Transnistria conflict.
The level of ambition of the relationship will depend on the degree of Moldova’s commitment
to common values as well as its capacity to implement jointly agreed priorities. The pace of
progress of the relationship will acknowledge fully Moldova’s efforts and concrete
achievements in meeting those commitments.
This Action Plan is a first step in this process. The EU Moldova Action Plan is a political
document laying out the strategic objectives of the cooperation between Moldova and the EU.
It covers a timeframe of three years. Its implementation will help fulfil the provisions in the
Partnership and Cooperation Agreement (PCA) and will encourage and support Moldova’s
objective of further integration into European economic and social structures. Implementation
of the Action Plan will significantly advance the approximation of Moldovan legislation,
norms and standards to those of the European Union. In this context, it will build solid
foundations for further economic integration based on the adoption and implementation of
economic and trade-related rules and regulations with the potential to enhance trade,
investment and growth. It will furthermore help to devise and implement policies and
measures to promote economic growth and social cohesion, to reduce poverty and to protect
the environment, thereby contributing to the long-term objective of sustainable development.
Moldova and the EU will cooperate closely in implementing this Action Plan.
The European Union acknowledges Moldova’s European aspirations and Moldova’s
“Concept for the Integration of the republic of Moldova into the EU”. For the near future the
PCA remains a valid basis for EU-Moldovan cooperation.
                                                8
 ---pagebreak--- New partnership perspectives
The European Neighbourhood Policy opens new partnership perspectives:
• The perspective of moving beyond cooperation to a significant degree of integration,
   including through a stake in the EU’s Internal Market, and the possibility for Moldova to
   participate progressively in key aspects of EU policies and programmes.
• An upgrade in the scope and intensity of political cooperation, through further
   development of mechanisms for political dialogue.
• Continuing strong EU commitment to support the settlement of the Transnistria conflict,
   drawing on the instruments at the EU’s disposal, and in close consultation with the OSCE.
   The EU is ready to consider ways to strengthen further its engagement.
• The opportunity for convergence of economic legislation, the opening of economies to
   each other, and the continued reduction of trade barriers which will stimulate investment
   and growth;
• Increased financial support: EU financial assistance for Moldova will be available to
   support the actions identified in the present document. The Commission is furthermore
   proposing a new European Neighbourhood and Partnership Instrument (ENPI) for this
   purpose, also covering the very important aspects of cross-border and trans-national
   cooperation between Moldova and the (future) Member States.
• Possibilities of gradual opening of or reinforced participation in certain Community
   programmes, promoting cultural, educational, environmental, technical and scientific links;
• Support including technical assistance and twinning to meet EU norms and standards, and
   targeted advice and support for legislative approximation through a mechanism such as
   TAIEX;
• Deepening trade and economic relations;
• establishing a constructive dialogue on visa co-operation between the EU and Moldova,
   including an exchange of views on possibilities of visa facilitation in compliance with the
   acquis;
• Opening as soon as possible a Commission Delegation in Moldova.
In light of the fulfilment of the objectives of this Action Plan and of the overall evolution of
EU – Moldova relations, consideration will be given to the possibility of a new contractual
relationship. The Republic of Moldova and the Commission put forward a number of
suggestions in this regard. The advisability of any new contractual arrangements will be
considered in due time.
Priorities for Action
The Action Plan sets out a comprehensive set of priorities in areas within the scope of the
Partnership and Cooperation Agreement. Among these priorities, all of which are important,
particular attention should be given to:
                                                 9
 ---pagebreak--- • sustained efforts towards a viable solution to the Transnistria conflict;
• further strengthening the stability and effectiveness of institutions guaranteeing democracy
    and the rule of law; ensuring the democratic conduct of parliamentary elections (February
    2005) in Moldova in accordance with European standards;
• ensuring respect for the freedom of the media and the freedom of expression;
• further reinforcing administrative and judicial capacity;
• resuming cooperation with IFIs; implementing actions aimed at poverty reduction, to
    strengthen private sector led growth and for fiscal sustainability;
• improving the investment climate through appropriate structural reforms aimed at ensuring
    non-discriminatory, transparent and predictable business conditions and by the fight
    against corruption;
• progress towards a system of efficient, comprehensive state border management on all
    sectors of the Moldovan border including the Transnistrian sector;
• working towards the EU granting Autonomous Trade Preferences, by ensuring effective
    control of the origin of goods from Moldova;
• stepping up the fight against organised crime, including trafficking in human beings;
• ensuring the efficient management of migratory flows, including initiating the process
    towards conclusion of a readmission agreement between the European Community and
    Moldova.
Progress in meeting these priorities will be monitored in the bodies established by the
Partnership and Cooperation Agreement and the European Commission will issue a mid-term
report on progress accomplished. On the basis of this evaluation, the EU, together with
Moldova, will review the content of the Action Plan and decide on its adaptation and renewal.
The Commission will issue a second report after three years and on this basis, decisions may
be taken on the next step in the development of bilateral relations, including the possibility of
new contractual links.
2.1 Political dialogue and reform
Democracy and the Rule of law
(1)      Strengthen the stability and effectiveness of institutions guaranteeing democracy and
         the rule of law.
           – In the context of the efforts for a settlement of the Transnistria issue, ensure
              constitutional and legislative reform in line with European standards, continuing
              to draw on the expert cooperation and advice of the Venice Commission and the
              EU, and ensuring a democratic and stable constitutional framework both for
              citizen and state institutions in (a re-united) Moldova;
           – Ensure correct functioning of Parliament, including the reform of parliamentary
              immunity in line with proposals made by the Council of Europe. Ensure the
                                                    10
 ---pagebreak---          democratic conduct of Parliamentary Elections in 2005 in accordance with
         European standards and addressing remaining shortcomings as identified by the
         OSCE / ODIHR recommendations;
      – Continue administrative reform and strengthening of local self government in line
         with European standards, notably those contained in the European Charter on
         Local Self government and drawing in particular on the expertise and
         recommendations of the Congress of Local and Regional Authorities in Europe,
         including with regard to management of local budgets by local administrations
         and     attribution    of    budgetary     competence     (resources     to    match
         responsibilities).Strengthen law enforcement by increasing the efficiency of
         judiciary and the law protection bodies, respect the relevant judgments of the
         Constitutional Court.
(2) Review existing legislation, so as to ensure the independence and impartiality of the
    judiciary, including the impartiality and effectiveness of the prosecution, and to
    strengthen the capacity of the judiciary;
      – Continue and implement legislative work further to reform the judiciary in line
         with European standards; Re-examine and amend the law on the organisation of
         the judiciary with a view to ensuring its independence, impartiality and efficiency,
         including clarification of the procedure for appointment and promotion, statutory
         rights and obligations of judges;
      – Ensure implementation of the new legislation on the public prosecution in line
         with European standards;
      – Improve training, in particular on Human Rights issues and on judicial co-
         operation, of judges, prosecutors and officials in the judiciary, Ministry of Justice
         administration, police and prisons
      – Develop alternative means of dispute settlement, including mediation and
         arbitration
(3) Ensure the effectiveness of the fight against corruption.
      – Ensure progress in implementing the recommendations of the Council of Europe
         Group of States against Corruption (GRECO).
      – Complete the adoption of the necessary measures identified in the Stability Pact
         Anti-corruption Initiative self evaluation and peer review report by the Republic
         of Moldova of April 2002.
      – Continue collaboration with International Organisations and Civil Society on the
         issue.
      – Implementation of National Strategy on prevention and combating corruption.
                                            11
 ---pagebreak--- Human rights and fundamental freedoms
(4)  Ensure respect of human rights and fundamental freedoms, including the rights of
     persons belonging to national minorities, in line with international and European
     standards
       – Implement actions foreseen in Moldova’s National Human Rights Action Plan
          (NHRAP) for 2004-2008 (legislative revisions, strengthening of institutional
          framework and raising of human rights awareness).
       – Ensure adherence to and effective implementation of core UN Conventions and
          related optional protocols.4
       – Ensure effective protection of rights of persons belonging to national minorities;
       – Appropriate response to conclusions and recommendations of relevant Council of
          Europe structures and experts on state of compliance by Moldova with the
          Framework Convention for the protection of national minorities; Put in place and
          implement legislation on anti-discrimination and legislation guaranteeing the
          rights of minorities, in line with European standards;
       – Amend the law on religious denominations to bring it in line with the
          requirements of the European Convention on Human Rights and with relevant
          Council of Europe recommendations;
       – Effective execution of the judgements of the European Court of Human Rights;
       – Introduce effective pre- and non-judicial mechanisms for both dispute settlement
          and the protection of human rights; Guarantee access to information on citizens’
          rights and adequate legal remedies.
(5)  Develop and implement an appropriate legal framework for the prevention of, and the
     fight against, the trafficking in human beings, and for addressing the problems faced
     by victims of trafficking
       – Revision of anti-trafficking law, including the relevant elements of the new
          criminal and criminal procedure codes, to bring it fully in line with international
          human rights standards;
       – Enhance cooperation in the framework of relevant international organisations
          (OSCE, UN) on this issue; Ratify relevant international instruments, such as the
          UN convention against transnational organised crime (“Palermo convention”) and
          its Protocol to prevent, suppress and punish trafficking in persons, especially
          women and children;
4
     Including signature and ratification of: CCPR-OP1, CCPR-OP2-DP, CEDAW-OP, CAT Declar.Art.21,
     Declar.Art.22 ,CAT-OP, MWC; and ratification of: CRC-OP-AC, CRC-OP-SC.
                                                  12
 ---pagebreak--- (6)  Eradication of ill-treatment and torture
      – Address effectively issue of reported ill-treatment of detainees by law
         enforcement officials, in particular in pre-trial detention, including through
         adoption of relevant legal basis and provision of training. Implementation of the
         recommendations of the Council of Europe’s Committee for the prevention of
         torture;
      – Enhance the human rights training of staff in police and penitentiary institutions;
(7)  Ensure respect of children’s rights.
      – Continue efforts with a view to protecting the rights of the child by ensuring the
         implementation of the Declaration and Plan of Action agreed at the UN Special
         Session on Children in May 2002, including the implementation of a national
         action plan;
      – Implement the relevant section in (Moldova’s) National Human Rights Action
         Plan (NHRAP) for 2004-2008;
(8)  Ensure equal treatment
      – Continue efforts to ensure the equality of men and women in society and
         economic life, based on non-discrimination
(9)  Ensure respect for the freedom of expression.
      – Ensure transparent relationship between the authorities and media institutions in
         line with Council of Europe recommendations; State financial assistance for
         media to abide by strict and objective criteria equally applicable to all media;
      – Put in place and implement appropriate legal framework guaranteeing the freedom
         of expression and of the media, in line with European standards and on the basis
         of the recommendations of the Council of Europe.
(10) Ensure respect for the freedom of association and foster the development of civil
     society
      – Amend law on assemblies to bring it in line with the requirements of the European
         Convention on Human Rights;
      – Effective dialogue between the different political forces of the country, following
         recommendations by the Council of Europe and making full use of the
         opportunities offered under their auspices;
      – Facilitate and support civil society development, enhanced dialogue and co-
         operation.
(11) Ensure respect for Trade Unions’ rights and core labour standards
      – Continue efforts to ensure Trade Unions’ rights and core labour standards in
         accordance with European Standards and ILO conventions.
                                            13
 ---pagebreak--- (12)  Ensure international Justice through the International Criminal Court
       – Ratify the Rome Statute of the International Criminal Court and make provisions
          for the necessary constitutional amendments foreseen thereto in the new draft
          constitution that is being elaborated by the Joint Constitutional Commission.
          Ensure its unhindered implementation.
Co-operation on foreign and security policy, conflict prevention and crisis management
(13)  Strengthen political dialogue and co-operation on foreign and security policy issues
       – Continue and develop political dialogue and cooperation with the EU on
          Transnistria, regional and international issues, including within the framework of
          Council of Europe and OSCE;
       – Work with the EU to make multilateral institutions and conventions more
          effective, so as to reinforce global governance, strengthen coordination in
          combating security threats and address related development issues;
       – Develop co-operation on sanctions issued by the EU.
       – Conduct an active dialogue between Moldova and the EU on the implementation
          of the European Security Strategy.
       – Develop possibilities for Moldova to align with EU CFSP declarations, on a case-
          by-case basis.
(14)  Further develop co-operation in the area of combating terrorism,non-proliferation of
      weapons of mass destruction and illegal arms exports
       – Cooperate to reinforce the role of the UN in the multilateral fight against
          terrorism, including through implementation of UNSC Resolutions 1373/01 and
          1267/01, through implementation and enforcement of the UN Convention for the
          Suppression of the Financing of Terrorism; work towards the establishment of an
          information exchange system between relevant judicial bodies and law
          enforcement agencies of the EU Member States and Moldova;
       – Implement the standards laid down in the FATF’s recommendations on terrorist
          financing;
       – Ensure respect for human rights in the fight against terrorism;
       – Further develop co-operation in the fight against trafficking of arms and the
          destruction of stockpiles, including with a view to the situation in Transnistria;
       – Cooperate on non-proliferation of weapons of mass destruction, including on
          aspects related to accession to and implementation of relevant international
          instruments and export control regimes, in the light of the EU WMD Strategy
          adopted by the European Council in December 2003 and the GAERC conclusions
          of 17 November 2003; Establish an effective system of national export control
          controlling export and transit of WMD related goods, including WMD end use
          control on dual use technologies;
                                             14
 ---pagebreak---          – Develop EU – Moldova co-operation with regard to risk-based customs control
            ensuring safety and security of goods imported, exported or in transit.
Regional cooperation
(15)   Continue Moldova’s targeted cooperation under activities of the Stability Pact (SP)
       for South-East Europe, complementary to the implementation of the present EU –
       Moldova ENP Action Plan
         – Further draw on the exchange of experience with other South Eastern European
            countries through Moldova’s participation in SP working tables activities;
         – Concentrate on those SP initiatives that can bring added value and contribute to
            Moldova’s domestic agenda of reforms;
         – Use existing flexibility to participate in SP activities;
         – Further progress in the implementation by Moldova of regional projects within the
            SP, paying particular attention to the implementation of the bilateral Free Trade
            Agreements signed by Moldova with SP beneficiaries countries;
         – EU support for the participation of Moldova to the South-East European Co-
            operation Process.
2.2 Co-operation for the settlement of the Transnistria conflict
(16)   Sustained efforts towards a settlement of the Transnistria conflict, respecting the
       sovereignty and territorial integrity of the Republic of Moldova within its
       internationally recognised borders, and guaranteeing respect for democracy, the rule
       of law and human rights.
         – Constructive participation of Moldova, together with the other party and
            mediators in the OSCE-led negotiation process aimed at reaching a settlement of
            the Transnistria conflict;
         – Effective co-operation between the EU and Moldova towards a settlement of the
            Transnistria conflict within agreed formats, including consultation on post-
            settlement arrangements and guarantees as appropriate.
         – EU to further step up its involvement in supporting the OSCE and mediators in
            this process, assist the efforts of the Joint Constitutional Commission, and to
            prepare engagement in post-settlement scenario;
         – EU to continue its efforts to ensure the fulfilment by Russia of the Istanbul
            commitments with regard to Moldova.
         – Reinforce political dialogue between the EU and Moldova on the Transnistria
            conflict.
         – Significant further progress with Ukraine on pending border questions along the
            Transnistrian border section; strengthen cooperation with Ukrainian
            administration including effective exchange of information about flow of goods
            and people across the common border. Active engagement in the trilateral talks
                                               15
 ---pagebreak---             Moldova - Ukraine - European Commission concerning measures to ensure proper
            management and control of Moldova's entire border with Ukraine, in particular
            the Transnistria section.
         – Support the active involvement of civil society and the promotion of democratic
            values and respect for human rights.
2.3 Economic and social reform and development
Improve Welfare
(17)   Take significant steps to address poverty, notably by improving targeting and
       effectiveness of social assistance
         – Adopt and progress in implementation of the Economic Growth and Poverty
            Reduction Strategy Paper (EGPRSP), identifying short term and long term
            priorities, endorsed by international donors based on the three pillars of poverty
            reduction identified in the I-PRSP of 2002; in particular implement relevant
            conditionalities on Poverty Alleviation and on Social safety net agreed within the
            framework of the EU Food Security Programme.
(18)   Redirect public expenditure to significantly address child poverty and to increase
       primary school enrolment.
         – Implement relevant conditionalities on Poverty Alleviation and on Social safety
            net agreed within the framework of the EU Food Security Programme.
         – Develop community based child protection measures in particular in the
            countryside in collaboration with local governments
         – Rationalise child benefits and improve effectiveness of assistance to families in
            need
         – Remove factors limiting access to education for poor families’ children and
            improve their access to primary and secondary education, in particular in the
            country side
Sustain growth, consolidate public finance, and address the issue of public debt
(19)   Strengthen economic growth and make it sustainable over the medium term.
         – As a vital step toward sustained economic growth, enhance macroeconomic
            stability through a sound monetary policy aimed, i.a., at containing inflation and a
            fiscal policy aimed, i.a., at achieving debt sustainability. In this context, an early
            agreement on a new programme of reforms with the IFIs is key to securing policy
            credibility and to open access to concessional external assistance, including by the
            EU.
         – Achieve a long-term solution to the external debt problem through a combination
            of a rigorous and credible fiscal policy and debt rescheduling/restructuring in
            agreement with creditors.
                                                16
 ---pagebreak---          – Adopt a comprehensive MTFF, covering the 2004-2006 period, integrating the
            central government budget, the local government budgets, the public social
            insurance budget, extra-budgetary funds as well as external financial assistance.
            The MTFF will be based on sound macro-economic projections, and will be
            consistent with the EGPRSP and the programmes to be agreed with the IFIs. In
            addition contingent liabilities should be carefully monitored.
         – Make progress in reducing the burden of excessive public debt, in particular
            foreign debt.
         – Take concrete steps to improve public expenditure effectiveness, transparency and
            accountability in consultation with IFIs/EU experts. In particular, enhance the
            incidence on poverty of social spending. Take steps to improve revenue collection
            and broaden the tax base, particularly by gradually eliminating tax exemptions.
         – Establishment of procedures for the detection, treatment and follow-up of cases of
            (suspected) fraud and other irregularities affecting national and international funds
         – Ensure full compatibility of EG PRSP with Medium Term Fiscal Framework
            which guarantee fiscal sustainability
Functioning Market Economy
(20)   Improve functioning market economy and business climate through appropriate
       structural reforms aimed also at achieving transparency and predictability of business
       conditions
Further advance implementation of legislative and regulatory framework as envisaged in
Art.50 of the PCA.
         – Take measures to improve convergence in key areas of Moldovan legislation to
            EU legislation, notably in the areas identified in this Action Plan. Draw up a work
            programme for regulatory reform, based on (1) a list of actions to be taken and
            legislation to be targeted by order of priority, and (2) definition of responsible
            bodies with realistic dead-lines for implementation of such actions, backed up by
            appropriate financial and human resources and training as well as structures to
            ensure co-ordination between various administrative bodies.
         – Ensure that basic regulatory bodies are fully operational. Draw up a programme
            for ‘flanking’ measures, including improved standards of drafting of legal norms
            and regulations, ensuring appropriately functioning of regulatory bodies and
            accompanying implementation measures.
         – Streamline administrative requirements for companies (approval of relevant
            legislation; implementation; simplification of reporting schemes and
            administrative obligations, limit to essentials licensing and issuing of permits
            necessary to conduct economic activity)
         – Examine and implement best practice on consultation and notification of
            economic operators on new regulatory measures (transparency) and ensure
            sufficient time for adaptation to these new regulations (predictability) of business.
            Develop dialogue with investors and entrepreneurs on how to improve business
            climate.
                                                17
 ---pagebreak---         – Establish a suitable environment for companies, e.g. adopt and implement
           effectively competition and bankruptcy legislation.
(21)   Implementation of privatisation programme, covering in particular outstanding large-
       scale privatisation as a priority and the energy sector.
        – Continue to improve the interface between Public and Private sector in line with
           WB recommendation
        – Accelerate and increase transparency of privatisation programme, covering in
           particular large scale privatisation in key sectors.
Regional and rural development
(22)   Promote balanced regional development; reduce economic and social disparities
       across the country
        – Implement measures on regional and rural development, taking as a basis the
           approach envisaged in the EG-PRSP and using an integrated approach that builds
           on results of donors’ past activity in the country, as well as on EU best practice.
        – Develop plan and undertake specific actions to promote growth of SMEs in
           regions and in rural areas (see also SMEs below).
Employment and social policy
(23)   Strengthen dialogue and co-operation on social matters. Ensure a closer
       approximation of the country to EU standards and practices in the area of
       employment and social policy
        – Engage in a dialogue on employment and social policy with a view to develop an
           analysis and assessment of the situation and to identify key challenges and policy
           responses (social and civil dialogue, health and safety at work, gender equality,
           labour law, employment policy, social protection and inclusion) gradually moving
           towards EU standards in this field.
Sustainable development
(24)   Promotion of sustainable development
        – Take first steps to implement the national long-term strategy on sustainable
           development.
        – Complete the establishment of administrative structures and procedures to ensure
           strategic planning of sustainable development and co-ordination between relevant
           actors
        – Take steps to further improve integration of environmental considerations into
           other policy sectors, particularly industry, energy, transport, regional development
           and agriculture.
                                               18
 ---pagebreak--- Longer term objective
        – Implement the national long-term strategy on sustainable development.
2.4 Trade-related issues, market and regulatory reform
2.4.1 Movement of Goods
Trade Relations
        – Full implementation of PCA commitments in title III, and fulfilment of all
           obligations linked to WTO membership
        – Successful implementation of the WTO obligations (including the TRIPs
           agreement) and PCA obligations
        – Gradual removal of licensing requirements which are not in conformity with
           Moldova’s WTO and PCA obligations and transparent management thereof
        – Efforts to increase transparency of application of regulatory measures
(25)   Promote Moldova’s exports capacity and diversification of export products
        – Promotion of Sectoral groups of producers for joint action for promotion of
           Exports on foreign markets, as foreseen in MEPO’s programme
        – Ensure effective control of the origin of goods in order to be able to fully benefit
           from the Generalised System of Preferences
        – Improve institutional framework and procedures on control of origin by
           reinforcing customs and reviewing the division of responsibilities for the issuing
           and verification of both preferential and non-preferential certificates of origin with
           the Chamber of Commerce in order to build a solid basis for possible Autonomous
           Trade Preferences.
Customs
(26)   Implementation of customs legislation aligned with international and EU standards
        – Implement provisions of the Customs Code as well as provisions on customs
           control of precursors, counterfeit and pirated goods, dual use goods, and cultural
           goods.
        – Moldova to adopt and keep up to date the HS in use, with a view to adopting the
           CN
        – Implement the principle of risk based customs control and set the necessary
           organisational framework
                                              19
 ---pagebreak--- (27)  Improve functioning of customs service; simplify and modernise customs procedures
      at borders and inland
        – Strengthen the overall administrative capacity, in particular to ensure effective
          control of the origin of goods and the correct implementation of customs valuation
          rules, and provide the customs administration with sufficient internal or external
          laboratory expertise as well as sufficient operational capacity in the IT area
        – Develop a single window approach for all international trade related
          documentation and control starting by increased co-operation between customs
          services and other agencies working at the border (e.g., State Border Guards,
          Police, and Veterinary Service).
        – Set up a mechanism to ensure regular consultation/ information of the trade
          community on import and export regulations and procedures.
        – Adopt and implement a Customs Ethics Policy based on internationally
          recognised standards (Arusha Declaration).
        – Develop EU-Moldova co-operation with regard to risk based customs control,
          including safety and security of goods imported, exported or in transit.
Standards, technical     regulations    and    conformity     assessment    procedures    (EU
harmonised areas)
(28)  Move toward EU and international legislative and administrative practices for
      standards, technical regulations and conformity assessment
        – Jointly identify priority industrial sectors for legislative approximation (with the
          possibility to be included in an Agreement on Conformity Assessment and the
          Acceptance of Industrial Products, ACAA, provided that all the required
          conditions are accepted and fulfilled) including through consultations with
          producers and exporters. Continue the revision of existing Moldovan standards,
          removing the mandatory elements and harmonising them with international and
          European standards.
        – Reinforce institutional capacity on standardisation, accreditation, conformity
          assessment, metrology and market surveillance, integrating the Moldovan
          institutions, to the extent possible, in the European structures, namely the
          European Cooperation for Accreditation (EA), CEN, CENELEC and ETSI. Full
          membership of the International Standards Organisations ISO, IEC and ITU.
          Revise the institutional arrangements in this area to avoid the concentration of
          functions within a single institution.
        – Approximate legislation on liability for defective products and general product
          safety.
        – Simplify procedures to avoid compulsory certification of non-risk products and
          multiple testing of products.
        – Develop market surveillance capacities based on best practice of EU Member
          States.
                                              20
 ---pagebreak--- Elimination of restrictions and streamlined administration (EU non-harmonised areas)
(29)   Facilitate the movement of goods and improve administrative co-operation.
         – Prevent discriminatory measures and ensure interested parties have the
           opportunity to identify problems and comment on draft legislation.
         – Ensure there is a contact point dealing with implementation of the movement of
           goods, which could also be used to improve information flows between the EU
           and Moldova and to exchange information with operators.
         – Analyse legislation and procedures to identify and progressively remove any
           discrimination against imported products. Analysis could initially focus on
           national measures covering the weight, composition, labelling, manufacture and
           description of products.
Sanitary and phytosanitary issues
(30)   Increase food safety for Moldovan consumers and facilitate trade through reforms and
       modernisation of the sanitary and phytosanitary sectors.
         – Fully implement the requirements of the WTO Agreement on the Application of
           Sanitary and Phytosanitary Measures (SPS) and the Agreement on Technical
           Barriers to Trade (TBT).
         – Accede to the European and Mediterranean Plant Protection Organisation and
           increase its active participation in the World Organisation for Animal Health
           (OIE), International Plant Protection Convention and Codex Alimentarius.
         – Assess the sanitary and phytosanitary control systems, in particular, at the state
           border, to compare with EU and international requirements.
         – On the basis of the reply by the Commission on Trade in Animal Products, draw
           up a comprehensive list of measures for gradual convergence towards EU
           principles of hygiene in food processing, accompanied by timetables for the
           transposition of EU legislation and a financing plan. Start approximation to EU
           legislation on the hygiene in food processing.
         – Increase convergence of food law with EU food safety principles (Regulation
           (EC) No 178/2002) and EU general foodstuff labelling requirements (Directive
           2000/13/EC); and progressive abolition of pre-market approval systems for food
           products.
         – Prepare first steps for setting up of an animal identification and traceability system
           (in particular for cattle)
         – Fulfilment of EU requirements on animal health and for the processing of animal
           products (c.f.: “General Guidance for third country authorities on the procedures
           to be followed when importing live animals and animal products into the
           European Union”, DG SANCO/FVO October 2003)
                                               21
 ---pagebreak---          – Identify national reference laboratories in the sanitary and phytosanitary sectors,
            with a special attention given to the necessary equipment and appropriate methods
            of analysis (residues of pesticides/contaminants) and their accreditation.
2.4.2 Right of establishment and Company Law
(31)   Full implementation of PCA commitments in title IV, Chapter II (Conditions affecting
       establishment and operation of companies)
         – Complete screening to be made by Moldova of national legislation so as to
            identify barriers to establishment with the aim of progressively abolishing them.
         – Abolish discriminatory measures affecting foreign investment
         – Ensure full application of the best endeavour standstill clause so that the
            conditions for establishment of companies are not more restrictive than when the
            PCA was concluded.
         – Ensure effective functioning of adequate administrative structures, inter alia, a
            central co-ordinating body facilitating establishment
Company law:
         – Converge with and ensure effective implementation of key principles on company
            law, accounting and auditing in relevant international and EU rules and standards.
         – Improve consistency and predictability in the administrative and judicial
            authorities responsible for oversight of company law and related investment
            conditions
         – Ensure effective functioning of the public register of undertakings and the
            publication of certain information such as the company’s organisation and
            financial details in the ‘national official gazette’.
         – Consolidate and ensure effective functioning of an administrative or judicial
            authority which ensures the control of the incorporation of a company or the
            legality of certain acts.
         – Adopt and ensure effective implementation of a code on corporate governance
            (can be done by the private sector).
Services
(32)   Gradual abolition of restrictions to progressively allow the supply of services between
       the EU and Moldova in certain sectors, in line with WTO and PCA commitments in
       Title IV, Chapter III (Cross-border supply of services).
         – Complete a review of national legislation by Moldova so as to identify barriers to
            the provision of services with the aim of abolishing them.
         – Establish and ensure effective implementation of appropriate administrative
            structures including a central co-ordinating body with the aim of facilitating the
            supply of services.
                                                 22
 ---pagebreak---          – Consolidate and ensure effective implementation of adequate legislation setting
           out basic principles such as non-discrimination and where necessary, introduce
           more detailed secondary legislation, or sector specific legislation.
Financial services:
         – Ensure implementation of recommendations of the IMF FSAP (Financial Sector
           Assessment Program).
         – Enhancement of a prudential regulatory framework for financial markets and
           supervision equivalent to that existing in the EU.
         – Set up and train supervisory authorities in the financial sector.
         – Development of the insurance market.
         – Put into place and ensure effective implementation of independent supervisory
           authorities in accordance with internationally recognised standards (e.g. G10,
           IAIS, IOSCO, IASB).
2.4.3 Movement of capital and current payments
(33)   Ensure full application of PCA commitments under Title V (Current Payments and
       capital)
         – Ensure the free movement of capital relating to direct investment made in
           companies and other investments made in accordance with the provisions on
           Establishment (Chapter II of Title IV).
         – Ensure the protection of such foreign investments and the liquidation and
           repatriation of profits and capital.
2.4.4 Movement of persons, including movement of workers and co-ordination of social
security
(34)   Full implementation of commitments under Article 23 of PCA (Labour conditions)
         – Ensure full application of the best endeavour clause by abolishing all
           discriminatory measures based on nationality which affect migrant workers, as
           regards working conditions, remuneration or dismissal.
(35)   Full implementation of commitments under Article 24 of PCA (Coordination of Social
       Security)
         – Continue process of concluding Agreements with Member States on the full
           application of provisions on coordination of social security as contained in Article
           24 of PCA
                                                23
 ---pagebreak--- Other key areas
Taxation
(36)  Development and implementation of a tax system and its institutions based on
      international and European standards.
        – Ensure that national tax legislation is fully compatible with WTO norms,
           including provisions for the determination of the place of supply of services in
           order to prevent double taxation, for fully non-discriminatory VAT and excise
           taxes, and for refund of VAT to non-established foreign taxable persons.
        – Develop and begin implementing a comprehensive Strategy for the Tax
           Administration, with particular attention to strengthening the tax collection and
           control systems.
        – As Moldova comes closer to the internal market, adoption of and compliance with
           the principles of the EU Code of Conduct for Business Taxation.
        – Complete, where appropriate, the network of bilateral agreements between
           Moldova and EU Member States on avoidance of double taxation.
Competition policy
(37)  Implement commitments on State aid under Article 48/2.2 of the Partnership and Co-
      operation Agreement, by developing full transparency in the field of state aid.
        – Establish a binding, uniform definition of State aid which is compatible with that
           of the EU (either by legislation or autonomous government act);
        – Establish full transparency as regards State aid granted in Moldova, in particular
           by (i) drawing up a complete list of aid grantors, (ii) creating a national
           mechanism for centralising all information on state aid granted in Moldova, with a
           view to drawing up annual reports on the amounts, types and recipients of aid;
(38)  Implement, and build upon, commitments on anti-trust under Article 48.2.1. of the
      Partnership and Co-operation Agreement by ensuring adequacy and compatibility
      with the EU of the domestic anti-trust legislation and control regime.
        – Assess the effectiveness of the current legislative framework (competition law of
           2000), including respect of the principles of non-discrimination, transparency and
           procedural fairness;
        – Ensure enforcement of the competition law, in particular by:
        – Establishing the National Agency for the Protection of Competition provided for
           in the law of 2000, as a politically independent institution,
        – Ensuring adequate legal powers for the competition agency, including decision-
           making powers; the right of own initiative investigations, enforcement orders and
           effective sanctions (e.g. fines)
                                               24
 ---pagebreak---           – Ensuring adequate human and financial resources, as well as training of staff in
             the competition administration.
Intellectual and industrial property rights
(39)    Ensure a level of protection similar to that in the EU, including effective means of
        enforcement, in line with provisions in Articles 49 & 50 of the PCA.
          – Apply international standards in this area, including in particular the TRIPS
             agreement.
          – Ensure proper functioning of the judicial system to guarantee access to justice for
             right-holders and availability and effective implementation of sanctions.
          – Consolidation of the relevant institutional structures, as well as of the offices for
             industrial rights, copyrights protection and collective societies. Extend co-
             operation with third country authorities and industry associations.
          – Increase resources dedicated to enforcement, in particular for the customs
             authorities and the judicial system and increase seizures and actions against
             counterfeit/pirated goods in specifically targeted sectors
          – Improve enforcement of the relevant conventions provided for by PCA Article
             49(2) Conduct a study on piracy and counterfeiting in Moldova and ensure
             effective dialogue with rights holders.
Public procurement
(40)    Develop conditions for open and competitive award of contracts between the parties,
        in particular through calls for tenders, in line with Article 54 of the PCA
          – Improve the functioning of the current system through increased transparency,
             information provision, training and the strictly limited use of exceptions.
          – Convergence with and effective implementation of key principles in the EU
             legislation on public procurement (e.g. transparency, non-discrimination,
             competition and access to legal recourse).
Statistics
(41)    Adoption of statistical methods fully compatible with European standards in relevant
        statistical areas and advance the institution building of the Department for Statistics
        and Sociology of the Republic of Moldova (DSSMR)
          – Ensure that the forthcoming population census is carried out according to schedule
             following recommendations of Eurostat/UN-ECE 2000 census;
          – Elaborate a short and medium term development strategy for harmonisation with
             European standards in the relevant statistical areas, including foreign trade
             statistics and statistical classifications;
          – Ensure that legislation on official statistics is based on the fundamental UN
             principles;
                                                    25
 ---pagebreak--- Financial Control and related matters
(42)   Sound management and control of public finances
         – Promote the development of appropriate administrative capacity to prevent and
            fight effectively against fraud and other irregularities affecting national and
            international funds, including the establishment of well-functioning co-operation
            structures involving all relevant national entities;
         – Ensure effective cooperation with the relevant EU Institutions and bodies in the
            case of on-the-spot checks and inspections related to the management and control
            of EU funds.
         – Improve public finance management and transparency, through upgrading of the
            existing Treasury Accounts Systems, appropriate audit of budget revenue and
            expenditures, in line with suggestions World Bank’s Public economic
            management review. Extension of the Treasury system by including in the state
            budget the social insurance budget, compulsory medical insurance funds, special
            resources, extra-budgetary funds. Creation and implementation of an integrated
            informational system for public finance management.
Public Internal Financial Control
         – Development of a strategy and policy paper for the public internal financial
            control system (managerial accountability and internal audit).
         – Establish legislative framework for public internal financial control.
         – Gradual harmonization with the internationally agreed standards (IFAC, IIA,
            INTOSAI) and methodologies, as well as with EU best practices for the control
            and audit of public income, expenditure, assets and liabilities.
External Audit
         – Ensure the establishment and adequate functioning of an independent Supreme
            Audit Institution in line with the internationally accepted and EU best practice
            external audit standards (INTOSAI standards – International Organisation of
            Supreme Audit Institutions).
Enterprise policy
(43)   Develop a dialogue on enterprise policy aiming at the improvement of the
       administrative and regulatory environment for companies, at promoting industrial co-
       operation and tackling the impact of industrial restructuring, and develop the
       Moldovan legislative and administrative framework for SME promotion - in line with
       articles 52, 69 and 70 of the PCA
         – Develop a legislative framework and appropriate infrastructure for SMEs, as
            provided for in Article 70(2) of the PCA
         – Endorse and implement the European Charter for Small Enterprises and
            participate in the monitoring cycles from 2004 (includes participation in co-
            ordination meetings, writing an annual national report and organising an annual
                                                26
 ---pagebreak---            bilateral meeting with the European Commission and Moldovan enterprise policy
           stakeholders).
        – Preparation of companies for progressive opening of internal market elements to
           Moldovan participation, focusing on information and training. The opening of one
           Euro-Info-Correspondence Centre (EICC) is envisaged.
        – In accordance with articles 52 and 69 of the PCA, promote dialogue on industrial
           policy and associate Moldova to EU initiatives to stimulate competitiveness,
           including in the tourism sector (e.g. exchange of information, participation in
           networks and studies, training).
2.5 Cooperation in Justice and Home Affairs
Migration issues (legal and illegal migration, readmission, visa, asylum)
(44)  Assess the scale of illegal migration to, via and from Moldova and monitor migratory
      movements.
        – Exchange information concerning, and assess the scale of, illegal migration in the
           EU and Moldova, including the establishment of an electronic database for the
           monitoring of migration flows to, via and from Moldova;
        – Further alignment of domestic legislation with EU standards in order to
           criminalise illegal migration.
(45)  Supporting the efficient management of migration flows, also by rendering
      consultative, financial and expert assistance to the government of Moldova and
      promotion of its activities, in particular to increase professional level of relevant staff
      through study of foreign experience and internship in relevant services of EU
      countries dealing with migration policy.
        – Adoption and implementation of Moldova's National Action Programme on
           Migration and Asylum Issues (migration issues).
(46)  Approximation of Moldovan legislation to the EU norms and standards,
      implementation of the 1951 UN Convention relating to the status of refugees and the
      1967 Protocol relating to the status of refugees, including the right to seek asylum and
      respect for the principle of non-refoulement. Approximation of the system of state
      authorities responsible for implementation and realisation of legislation on asylum
      and refugees to EU norms and standards.
        – Implementation of the obligations of the Geneva Convention and its Protocols, in
           particular through the development of an asylum system.
        – Develop a system for electronic information exchange between all relevant
           authorities (border guard, police, Migration Department).
        – Advice on Eurodac Regulation and functioning of the Eurodac system.
        – Adoption and implementation of Moldova's National Action Programme on
           Migration and Asylum Issues (asylum issues).
                                               27
 ---pagebreak--- (47)  Improve cooperation regarding the efficient management of migration flows and on
      readmission of own nationals, persons without nationality and third country nationals
        – Initiate a dialogue on readmission in the perspective of concluding a readmission
          agreement between Moldova and EU, taking into account the human dimension
          and the socio-economic aspects
        – Encourage Moldova to conclude readmission agreements with the main countries
          of origin and transit
        – Setting up, within the existing structures, a mixed expert group to discuss legal
          migration to the EU, current situations in Member States, management structures
          for legal migration, including to explore ways to facilitate legalisation, legal
          migration of the labour force and social protection of migrant workers as well as
          programmes for voluntary return and re-integration.
        – Explore the possibility of inviting Moldova to participate in or observe the
          activities organised in the framework of the EU programmes on migration
          (ARGO, AENEAS)
(48)  Pursue a dialogue concerning cooperation on visa policy
        – Exchange of views on Schengen procedures and initiate a dialogue on the
          possibilities of visa facilitation in compliance with the acquis
        – Dialogue and exchange of views on visa co-operation (criteria and the procedure
          for the issue of visas)
        – Dialogue on document security
Border management
(49)  Development of a system of efficient, comprehensive state border management on all
      sectors of the Moldovan border, including the Transniestrian sector
        – Implement the Concept on Border Control adopted on 4 December 2003, in
          particular the transformation of the Border Guards into a law enforcement agency,
          and make necessary amendments to national legislation.
        – Enhance inter-agency co-operation (among authorities involved in state border
          management) as well as co-operation with neighbouring countries, including
          border demarcation and the conclusion of co-operation agreements.
        – Start developing a comprehensive education and training strategy on state border
          management, including improved understanding of Schengen rules and standards.
        – Enhance equipment and develop infrastructure for efficient state border
          management.
(50)  Intensify and facilitate cross-border cooperation between Moldova, the EU Member
      States and neighbouring countries.
        – Continuation of the “Söderköping process”
                                                28
 ---pagebreak---          – Develop regional co-operation between relevant law enforcement bodies (police,
            border guards, migration and asylum services, customs)
Fight against organised crime (including trafficking in human beings)
(51)   Ratification and full implementation of international instruments which are of
       particular importance in combating organised crime
         – Ratify UN Convention against Trans-national Organised Crime and its protocols
            on smuggling of migrants and trafficking in persons and adopt and implement
            national legislation (including human right aspects) accordingly
         – Sign and ratify protocol to the UN Convention (see above) on illicit
            manufacturing and trafficking of firearms.
         – Enhance the Moldovan law enforcement authorities (police, border guards,
            customs) through the provision of modern equipment, facilities and training in
            order to increase in particular the effectiveness of border crossing checkpoints;
            Prevent and fight sexual exploitation of women, children and child pornography.
(52)   Reinforce the fight against trafficking in human beings, especially of women and
       children, and smuggling of illegal migrants, as well as activities to prevent trafficking
       in human beings and to reintegrate victims of this traffic (see also above under Human
       rights).
         – Implement actions recommended at national levels by OSCE action plan to
            combat trafficking in Human Beings (approved in Maastricht December 2003),
            Chapters III, IV and V and enhance co-operation in the framework of relevant
            international organisations (OSCE, UN).
         – Implement provisions on the fight against trafficking in human beings contained
            in the National Human Rights Action Plan of the Republic of Moldova for 2004-
            2008 (chapter 7b).
         – Promote regional co-operation between relevant law enforcement bodies (police,
            border guards, customs and judiciary).
         – Develop legal and psychological support to victims aiming at their reintegration
Drugs
(53)   Further strengthen the fight against drug trafficking, including the trafficking of
       essential chemicals and precursors, and against drug abuse in particular through
       prevention and rehabilitation, in accordance with art.76 of the PCA
         – Continue to implement the 1988 UN Convention on Illicit Traffic of Narcotic and
            Psychotropic Substances.
         – Develop a national drug strategy.
         – Develop and implement prevention programmes and programmes for treatment of
            drug addicts.
                                               29
 ---pagebreak--- Money laundering financial and economic crime
(54)   Strengthen efforts and co-operation in the fight against money laundering, in
       accordance with art.66 of the PCA; convincing progress in efforts to establish and
       implement a comprehensive anti money laundering regime.
        – Develop the necessary legislative framework, including concerning the scope and
           mandatory nature of reporting suspicious transactions.
        – Strengthen co-operation between the Central Bank, financial institutions, other
           relevant entities, the FIU and law enforcement agencies (police, customs,
           prosecutors, judges) in order to make the financial institutions and other relevant
           entities aware of the obligations and responsibilities arising from envisaged
           legislation.
        – Exchange information on the existing European system (Financial Intelligence
           Unit (FIU)) and the existing system in Moldova as regards money laundering.
        – Enhancing the inter-institutional data-base on suspicious transactions.
        – Promote application of effective sanctions against money laundering.
        – Develop a training programme for the staff of the FIU, judges, prosecutors, and all
           other relevant personnel.
        – Intensify co-operation and promote exchange of information among law
           enforcement agencies and co-operation between Moldova and international
           organisations, such as OECD-FATF and Council of Europe, as well as with
           corresponding services of EU Member states and specialised bodies at European
           level.
Police and judicial co-operation
(55)   Adoption and efficient implementation of legislation and measures for the development
       of arrangements under which judicial cooperation can be offered and obtained from
       other states.
        – Ratify relevant international conventions on co-operation in criminal and civil law
           and, where already ratified, encourage and support their implementation.
        – Explore the possibilities for co-operation between Moldova agencies, Europol and
           Eurojust in accordance with the Europol Convention and the relevant Council
           decisions.
        – Improve inter-agency co-operation and co-operation with other states in the
           framework of relevant international conventions.
        – Develop methods of risk analysis in Moldova comparable to those in the EU, to
           guide law enforcement and crime prevention actions.
                                             30
 ---pagebreak--- (56)  Further develop co-operation between Moldova and EU Member State judicial and
      law enforcement authorities
        – Elaborate a manual on judicial co-operation between EU Member States and
           Moldova and a statement of good practice in relation to such co-operation.
        – Establish a network of contact points with EU Member States law enforcement
           authorities to exchange information
        – Introduction of modern investigative techniques.
        – Develop anti-corruption measures within the law enforcement agencies (police,
           border police and judiciary), including the development of Code of Ethics for
           prosecutors and judges and implementation of the Police Code of Ethics.
2.6 Transport, energy, telecommunications, environment, and Research, development
and innovation
Transport
(57)  Elaborate and start implementing a national transport strategy, including transport
      infrastructure development
        – Start to develop a national sustainable transport policy, with a focus, where
           appropriate on further approximation of legislative and regulatory frameworks
           with European and international standards, in particular for safety and security (all
           transport modes).
        – Develop an infrastructure policy (identifying capacity constraints, lack of inter-
           modal equipment and missing link infrastructure) in order to identify the priority
           infrastructure projects in various sectors.
        – Creation of a long-term and transparent system of road financing in order to
           ensure continued maintenance of the existent public road network.
        – Address issues of infrastructure financing (e.g. Public/Private Partnerships, tolls,
           shadow-tolling, user charges etc.) Possibly, EIB mandate extension.
        – Continue active participation in the development of the Pan-European Corridors
           and Areas as well as in the TRACECA programme. Possibly, extension of EIB
           lending.
(58)  Implement selected measures and reforms in the road transport sector
        – Adoption of transparent regulatory processes regarding the award of licenses and
           introduction of mandatory driving times and rest periods complying with
           international standards.
        – Develop a road safety action plan (including dangerous goods transport and
           roadworthiness) for improving road safety.
                                               31
 ---pagebreak--- (59)  Implement selected measures and reforms in the railway transport sector
       – Improve the average running time of freight trains on selected corridors by an in-
          depth corridor analysis, identifying bottlenecks and proposing solutions.
       – Improve safety, speed and efficiency (interoperability) of rail transport services.
(60)  Implement selected measures and reforms in the aviation sector
       – Pursuit of a national aviation policy for the development of the sector (including a
          vision on the reform of the market structure).
       – Revision of bilateral service agreements with Member states with a view to
          include Community standard clauses.
       – Solution of pending issues with Member States regarding the implementation of
          bilateral agreements.
       – Enhance administrative and technical capacity to become full JAA member.
          Explore possibilities to participate in EASA and for involvement in the Single
          European Sky.
       – Co-operate on aviation security matters (common rules to combat international
          terrorism).
(61)  Implement selected measures and reforms in the maritime and inland waterway
      sectors
       – Implement relevant international maritime conventions (including IMO).
       – Pursue effective enforcement in the areas of Port State Control and Flag State
          Control implementation as well as resolutions of the IMO’s Maritime
          Environment Protection Committee on Tanker Safety.
       – Pursuit of a national inland waterway transport policy for the development of the
          sector (including a vision on the upgrading of the national fleet) and the
          establishment of effective administrative capacity.
       – Co-operate with the EU with a view to aligning maritime safety policies based on
          measures agreed with the framework of the relevant International Organisations.
Energy
(62)  Preparation of an updated energy policy converging towards EU energy policy
      objectives.
       – Prepare an updated energy policy document with an indication of financing
          sources and a timetable for implementation.
       – Strengthen capacities for monitoring and forecasting energy developments.
                                             32
 ---pagebreak--- (63)  Gradual convergence towards the principles of the EU internal electricity and gas
      markets.
       – Establish - on the basis of Moldova's experience in the Regional Energy Market in
          South East Europe initiative ("Athens Memorandum") - a list of measures for
          gradual convergence towards the principles of the EU internal electricity and gas
          markets, accompanied by time schedules and a financing plan. Reciprocity issues
          to be addressed appropriately (market opening, environmental norms).
       – Energy price developments and tariff reforms towards the elimination of
          distortions; improvement of bill collection rates.
       – Further develop the National Energy Regulatory Agency towards an independent
          body.
       – Further restructure the electricity, gas and heat sectors and address payment
          arrears.
       – Participation in EU related energy events.
(64)  Progress regarding energy networks.
       – Substantial reduction of network losses (electricity, heat notably).
(65)  Improve transparency, reliability and safety of the gas transit network.
       – Further rehabilitate and upgrade the network.
       – Identify and start to implement reform options for the gas (transit) network.
       – Install additional gas metering devices on pipelines at border crossings points.
(66)  Progress on energy efficiency and the use of renewable energy sources.
       – Prepare an Action Plan for improving energy efficiency and enhancing the use of
          renewable energy sources, reinforcing the relevant institutions, accompanied by a
          financing plan, quantitative targets and timetables for implementation.
       – Implement a set of low cost measures in this area.
Information Society
(67)  Accelerate progress in electronic communications policy and regulation
       – Adopt a national policy on the development of the sector.
       – Adopt a comprehensive regulatory framework including licensing, access and
          interconnection, numbering, cost-orientation of tariffs, Universal Service and
          users rights, privacy protection and data security.
       – Effective implementation of the market liberalisation launched on 1 January 2004
          including support of a fully competitive environment.
                                             33
 ---pagebreak---         – Ensure the independence, increase the powers and improve the efficiency of the
           National Agency for Regulation in Telecommunications and Informatics (NARTI)
           by providing additional human and financial resources and increasing the
           enforcement powers.
        – Reinforce the commercial capabilities of MoldTelecom in the future competitive
           environment.
(68)  Accelerate progress in the development of Information Society services and in the
      integration of Moldova into the IST research programme.
        – Further implement the national policy and strategy for the Information Society
           and provide sufficient funds for its implementation.
        – Promote the widespread use of the new technologies by business and
           administration, in particular in the health ad the education sectors (e-commerce, e-
           government, e-health, e-learning), via the provision of advanced infrastructures,
           the development of content and the introduction of pilot projects.
        – Improve the use of Internet and online services by the citizens via public computer
           training programmes.
        – Adopt a specific plan to promote the participation of Moldova in the IST part of
           the 6th Framework Programme.
Environment
(69)  Take steps to ensure that conditions for good environmental governance are set and
      start implementing them
        – Strengthen administrative structures and procedures to ensure strategic planning
           of environmental issues, including financing strategies, and co-ordination between
           relevant actors
        – Establish procedures regarding access to environmental information and public
           participation, including implementation of the Aarhus Convention, particularly by
           establishing structures and procedures for ensuring an acceptable level of service
           to those wishing to have access to information.
        – Prepare regular reports on the state-of-the-environment
        – Strengthen structures and procedures necessary to carry out environmental impact
           assessments, including in relation to transboundary issues; complete relevant
           legislation.
        – Further improve communication strategies on the benefits of environmental policy
           and environmental education, support civil society actors and local authorities
                                               34
 ---pagebreak--- (70)  Take active action for prevention of deterioration of the environment, protection of
      human health, and achievement of rational use of natural resources, in line with the
      commitments of the Johannesburg Summit
       – Continue with the adoption of legislation for key environmental sectors (water
           quality, waste management, air quality, industrial pollution), including the
           adoption of the legislation on wild flora and ecological networks.
       – Enhance administrative capacities, including for the issuing of permits as well as
           for enforcement and inspection
       – Develop sector-specific programmes and plans (water, waste, air, industrial
           pollution), notably by completing the plan on liquid waste and the plan on
           persistent organic pollutants.
(71)  Enhance co-operation on environmental issues
       – Implement provisions under the Kyoto Protocol and the UN Framework
           Convention on Climate Change
       – Participate actively in the Danube – Black Sea Task Force to implement a trans-
           boundary approach to water management; ensure active participation in the
           Eastern European, Caucasus and Central Asia component of the EU Water
           Initiative
       – Identify possibilities with neighbouring countries for enhanced regional co-
           operation in particular as regards trans-boundary issues
       – Possible participation in selected European Environment Agency activities
       – Strengthen administrative capacities for the implementation of regional and
           international agreements
Research, development and innovation
(72)  Prepare Moldova’s integration into the European Research Area and into the
      Community R&D Framework Programmes on the basis of scientific excellence
       – Implement appropriate information strategy to facilitate adequate participation of
           Moldovan scientists in the Community R&D Framework Programmes.
       – Undertake an assessment of the capacity of research structures in Moldova with a
           view to their integration in the European Research Area.
(73)  Develop Moldova’s capacity in technological R&D to support the economy and
      society
       – Reinforce human, material and institutional resources in order to improve the
           capacities in technological R&D and innovation including through INTAS,
           EUREKA and COST actions.
                                               35
 ---pagebreak--- (74)   Support Moldova’s integration in high level scientific exchanges.
        – Reinforce Moldavian participation in international Marie Curie fellowships
           including support of the appropriate return mechanisms.
        – Promote participation of Moldavian scientists in international debates and fora
2.7 People-to-people contacts
Education, training and youth
(75)   Bring education and training systems closer to EU Member state standards and the
       Bologna process
        – Implement legislative reform and other measures that will prepare Moldova’s
           adherence to the Bologna process (promote greater autonomy of Universities,
           modernise curricula, introduction of a credit system).
        – Use participation in the programme Tempus III to explore the possibility of
           fostering the development of human resources and human capital.
        – Involve civil society stakeholders and social partners in higher education and VET
           reform.
        – Further implementation of a national programme to introduce IT in education.
(76)   Enhance co-operation in the field of education, training and youth
        – Support exchange and study opportunities for Moldovans, in particular through
           their participation in the Erasmus Mundus programme
        – Enhance Moldovan participation in the Tempus III programme
        – Prepare for possible extension of the Tempus programme to the areas of
           vocational training as well as adult education
        – Enhance youth exchanges and cooperation in the field of non-formal education for
           young people
        – Increase promotion of intercultural dialogue, youth exchanges and co-operation in
           the field of non-formal education through the YOUTH programme
Culture and audio-visual issues
(77)   Enhance cultural co-operation
        – Intensify cultural exchanges giving priority to mobility of young Moldovans,
           particularly through the Youth programme.
        – Approximate relevant audiovisual legislation in full compliance with European
           standards (with a view to a possible future participation in the Media programme
           if prerequisites are fulfilled.)
                                              36
 ---pagebreak---           – Develop a dialogue on cultural diversity, including in the context of the relevant
             negotiations in UNESCO
Civil society co-operation
(78)    Promote civil society co-operation
          – Further develop and build on experience of existing Institution Building
             Partnership Programs (IBPP)
          – Encourage the empowerment of consumers and the protection of their legitimate
             economic interests
Cross-border and regional level co-operation
(79)    Enhance contacts and capacity for cooperation at the cross-border and regional level
        by taking up the opportunities and challenges arising from EU enlargement.
          – Encourage local and regional own-initiative approach to establish and develop
             cross-border co-operation.
          – Implement activities based on local and regional priorities, developed in co-
             operation with the areas concerned
          – Pay special attention to and support the development and implementation of the
             new Neighbourhood Programmes through the active involvement of the local and
             regional levels.
          – Provide support to development of human resources and other capacities in local
             and regional authorities to ensure efficient implementation of cross-border co-
             operation actions.
Public health
(80)    Increase the level of health security and epidemiological safety in Moldova in line
        with EU legislation and in cooperation and with the support of the WHO. Relate the
        information system of Moldova to the health indicators process underway in the EU.
Health information and knowledge:
          – Organise collection of information on health indicators
Communicable Disease Surveillance and Health Security:
          – Exchange information and technical expertise in order to facilitate participation in
             EU Network for the Prevention and Control of Communicable Diseases
          – Participation in dedicated surveillance networks, in particular those collecting data
             and information on HIV/AIDS, sexually transmitted infections, and hepatitis C
             and B.
          – Reform of health system:
                                               37
 ---pagebreak---           – Improve the primary health care system and the prevention of diseases, such as
             the HIV/AIDS epidemic, notably in rural and deprived communities and within
             vulnerable groups
          – Modernisation of emergency services
          – Health services autonomy, especially for hospitals
          – Monitoring of the mandatory health insurance implementation Improve the
             training standards in general practice for health professionals with graduate and
             undergraduate education
3. Monitoring
The Action Plan will be submitted for formal adoption to the Co-operation Council between
the EU and Moldova. The Action Plan will guide the work between the EU and Moldova.
Should the need arise, on the EU side, for specific measures necessitating legally binding
decisions, the Commission will recommend to the Council the adoption of the necessary
negotiating directives.
The joint bodies established under the Partnership and Co-operation Agreement will advance
and monitor the implementation of the Action Plan. The structures under the relevant
agreements, where appropriate, should be reviewed, to ensure that all priorities under the ENP
are duly reflected.
The Commission will produce reports on the Action Plan’s implementation at regular
intervals. It will invite Moldova to provide information for these reports. The Commission
will also work closely with other organisations such as the Council of Europe, the OSCE,
relevant UN bodies, and International Financial Institutions.
A first review of the implementation of the Action Plan will be undertaken within two years
of its adoption.
The Action Plan can be regularly amended and/or updated to reflect progress in addressing
the priorities.
                                               38
 ---pagebreak--- Glossaire
CEN       European Committee for Standardization
CENELEC   European Committee for Electrotechnical Standardisation
EASA      European Aviation Safety Agency
EGPRSP    Economic Growth and Poverty Reduction Strategy Paper
ETSI      European Telecommunications Standards Institute
FATF      Financial Action Plan Task Force for Money Laundering
FIU       Financial Intelligence Unit
IAIS      International Association of Insurance Supervisors
IASB      International Accounting Standards Board
IEC       International Electrotechnical Commission
IFAC:     International Federation of Accountants
IIA:      Institute of Internal Audit
ILO:      International Labour Organisation
IMO       International Maritime Organisation
INTOSAI:  International Organisation of Supreme Audit Institutions
IOSCO:    International Organisation of Securities Commissions
ISO       International Organisation for Standardisation
IST       Information Society Technologies
ITU       International Telecommunication Union
JAA       Joint Aviation Authorities
MEPO      Moldovan Export Promotion Organisation
MTFF:     Medium Term Fiscal Framework
TAIEX:    Technical Assistance Information Exchange
TRACECA:  Transport Corridor Europe Caucasus Asia
TRIPS:    WTO Agreement on Intellectual Property
WMD:      Weapons of Mass Destruction
                                        39