Paralyzed state, let the foreign financial support wait…

The functionality of the state of the Republic of Moldova continues to be paralyzed. Although public and private institutions follow their activity automatically, but anemic, the whole society, followed by the country’s external partners, all waiting to form a functional majority of the parliament.

In the agony of political statements and campaigns that are aiming to promote the ascendant parties in parliament, references are still being made to partners in the West and East, but political class completely forgot about the 100 million euros, the financial support of the European Union for the Republic of Moldova and the blockade from July 2018 of the tranches from the macro-financial assistance.

The European Union, the absolute leader in the field of non-reimbursable financial assistance for the Republic of Moldova, is actively involved in supporting the development of the country’s socio-economic environment, with a significant contribution to the development of financial, commercial and administrative management policies, the development of civil society, agriculture, SMEs. with an important contribution dedicated to vocational education and training.

Top financers of the Republic of Moldova

Source: External Assistance Management Platform.

At the same time, at present, the most important way of developing and modernizing our country, including the business climate, is the implementation of the Association Agreement. However, with regard to the implementation of the Association Agreement (AA), including priority reforms, the Republic of Moldova has sufficient delays.

The European Parliament published on 15.10.2018 the report on the implementation of the EU-Moldova Association Agreement, according to which the Committee on Foreign Affairs undertook an investigative mission in the Republic of Moldova in April 2018, drawing the following conclusions:

  1. Any decision on future payments under macro-financial assistance should be taken only after the parliamentary elections planned to take place in February 2019;
  2. Also, payments under all budget support programs should remain pending until significant progress is made on democratic standards;
  3. In the meantime, the funds should be reallocated to support the Moldovan civil society and independent press, as well as the private sector and local authorities;
  4. The suspensive clauses of the EU – Moldova agreement, in particular articles 2 and 455 of the AA and the benchmarks regarding the fight against corruption and money laundering related to the liberalization of the visa regime, are recalled.

Thus, the granting of financial assistance depends on the successful implementation of certain economic measures, as well as on the fulfillment of political conditionalities: respect for democratic mechanisms, respect for the rule of law and respect for human rights.

AOAMP president, Alexei Repede, argues that “the financial and result indicators of the assistance programs of the European Union can have a sustainable impact on the social-economic development of the Republic of Moldova only when the implementation of these sectoral programs and policies is done efficiently and transparently, by facilitating investments and support of the entrepreneurial environment and in permanent dialogue with civil society, to update the real situation about the multitude of impediments, but also existing opportunities.

At the same time, encouraging the development of the entrepreneurial activity, capable of creating jobs, it is necessary to be carried out at the same time with the increase of the degree of confidence towards all the state institutions that facilitate the development of the business environment. Representatives of the decentralized services in the territory of the Republic of Moldova should reorient themselves from the control objective, to the responsibility of a supporter through counseling, which will contribute to the development of the entrepreneurial environment, development that will allow economic growth and contributions to the state budget, not by collecting and increasing penalties among entrepreneurs for ensuring the growth of the state budget. “

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