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Parliament Activity, October 25-29, 2004
3 November 2004

High on the Parliament agenda that week was draft budget of social insurance for year 2005. The issue triggered many debates and brought tough questions to Government and majority faction. And this because the law is a key document when it comes to elections.

Opposition accused the ruling party or reducing social spending amidst surging GDP. In its turn, ruling party blamed opposition for not taking care of the social vulnerable groups when they had been in power, for accruing huge foreign debts. As a result Government now had to raise pensions from its own sources so as to ensure bare existence for the vulnerable strata.

Parliament also examined other pieces of legislation, some of which will be considered below.

I. Law on Governmental Agent at the European Court for Human Rights

ADEPT Comment: The law seeks to make the enforcement of the obligations undertaken by the state in ensuring human rights when it adhered to the European Convention of Human Rights more efficient. Under Article 35 of the ECHR's Regulation, contracting parties are represented by agents who may be assisted by councillors or lawyers. Contracting parties, i.e. countries members of the Council of Europe, have different approaches some have delegated this responsibility to Ministry of Justice, while others to the Ministry of Foreign Affairs. In Moldova, Governmental Agent shall be a member of the diplomatic service of the country.

The law regulates the status of Governmental agent and nomination procedure; responsibilities and principles of activity; rights and obligations; cooperation with national institutions and organisations.

On July 26, 2001 Republic of Moldova ratified European Agreement on persons taking part in the proceedings of the European Court for Human Rights thereby granting those persons immunity as regards declarations made orally or in written form in front of the Commission or Court.

II. Law on Real Estate

ADEPT Comment: It regulates how real estate is formed based on the estate already in possession and registered in the real estate registrar. The law regulates ways to form real estate: separation; division; and merger. The law also outlines the registration and formation of agricultural plots, in case there are several nearby plots in property.

III. Law on Ratification of Agreement between the Government of the Republic of Moldova and the Government of Albania on Promotion and Protection of Investments

ADEPT Comment: The law was adopted on the eve of Albanian President's official visit to the Republic of Moldova. The Agreement outlines the legal principles that would bolster economic ties between the two countries and investments by natural and legal entities in the other country. Contracting parties engage to manage, use and distribute the investments from other Contracting Party and refrain from any discriminatory or unjust measures.

IV. Draft law on state social insurance budget for year 2005

ADEPT Comment: Albeit many opposition deputies claimed the budget was discriminatory as regards many budget lines, Government and majority faction proved by citing some figures that the draft law is much better than many others, especial those passed prior to 2001. The draft law was passed in the first reading.

For 2005 revenues worth 3485997.6 thousand Lei are forecasted, whereas expenditures worth 3485997.6 thousand Lei, i.e. 25% over what was budgeted for 2004.

Obligatory contributions to the social insurance fund are as follows:

  • 27% of the wage and other remuneration payable by employers in view of social insurance of the persons employed under individual or work contract;
  • 2% of the wage and other remuneration for the individual insurance of the employees;
  • 20% of the wage and other remuneration payable by employers in agriculture in view of social insurance of persons employed to work the land and in animal husbandry;
  • natural entities owners of agricultural plots and natural entities renting agricultural plots based on a contract (except for pensioners and handicapped) shall pay 480 Lei annually;
  • individual entrepreneurs (except for pensioners and handicapped), lawyers, private notaries, Moldovan citizens working on a contract abroad shall pay 1,374 Lei;
  • pensioners and handicapped holding a licence shall pay 30% of its cost.

The draft law provides that failure to pay to social insurance fund shall be sanctioned by a fine equal to 0.1% of the arrears per day, including the day the arrears are paid.






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