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Democracy and governing in Moldova

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e-journal, III year, no. 52, May 23 - June 5, 2005

Activity of Public Institutions

Economic Policies

Transdnistrian Conflict

Foreign Affairs

Studies, Analyses, Comments

Activity of Public Institutions


1.1. Legislative documents

During the aforesaid period Parliament passed the Law on the Modification and Completion of the Law on Employment and Social Security of the Unemployed. The goal of the law is to bring national laws in accordance with Labor Code and enhance social security of the unemployed. Under the law, ousted employees who would register with employment agencies would be also entitled to unemployment aid. Furthermore, the law reduces unemployment aid from 50-60% to 30-50% of the previous salary.

Another important law approved by the legislators is the Law on Modification and Completion of the Law on the Status of Refugees. The amendments come in response to recently passed international documents in the field of refugees. The law includes new provisions on several institutions:

  1. Humanitarian protection, institutions supported via the Council of Europe Recommendation of 2001 on subsidiary protection. According to Council of Europe the latter is to be provided by the states in conformity with decisions taken by the specialized bodies, to certain persons that do not fall under the provisions of 1951 Convention on Refugees, but need to be protected from threats and various ill treatments.
  2. Council for Refugees which should be an administrative, consultative structure without any appeal or recourse powers.
  3. Access of UN High Commissioner on refugees to applicants for asylum or refuge.
  4. Applicant for asylum. The deadlines for applying to asylum are to be abolished as the person deserves to be protected regardless how many days passed since his/her arrival in the country.
  5. Voluntary repatriation. This has been proven to be the most appropriate solution to refugee's problems, therefore the law provides such a repatriation as grounds for ceasing the refugee status.
  6. Exclusions. The law also provides persons that might not apply for a refugee status.
  7. Family reunification. This provision was included in the law so as to make possible family reunification in the Republic of Moldova.
  8. Appeal. Provisions as regards appeal were brought in accordance with national and international law in the field.

In view of preserving "Valea Morilor" park Parliament passed Resolution on granting "Valea Morilor" park in Chisinau the status of monument of architecture. The park was founded in 1951 and currently has 113.9 hectares. By including the park in the list of places under state protection, it would be preserved and become a center culture and recreation, a natural attraction.

Of special interest is the Resolution on abolishing sanctions on prostitution. Parliament resolution that approved the Action-Plan in the field of Human Rights back in 2003 provides for amending the law so as to persecute both the person providing the service and the clients of such services. Since then the criminal law has changed and it does no longer sanction prostitution due to its low social harm. Prostitution continues to be sanctioned as a contravention. In most European countries the client of such services are not sanctioned, that is why Moldovan legislators considered there were no grounds to introduce such sanctions in Moldovan law.

Via the Law on Botanical Gardens, these will have a special legal status - science and innovation public institution under the jurisdiction of the Academy of Science of Moldova or local government. This status would exempt them from state taxes and fees and would allow them to attract foreign investments, including from the private sector. Under the law constructions on the soil of the botanical garden shall be only approved based on a project of the Academy of Science and other urbanism documents. The sale or rent of land on the soil of botanical garden shall be prohibited. The law also entitles botanical gardens to conduct economic activity so as to collect revenues for their maintenance and development.

Law on Granting Facilities to Residents of Transdnistrian Region exempts from VAT electricity, gas, telecommunication services, water and sewage supplied by legal entities located on the soil of the Republic of Moldova and not having fiscal relations with its budgetary system. The said law compensates the difference in tariffs on electricity and gas for the residents of Varnitsa of Anenii-Noi. Those residents did not get compensations as they received electricity and gas from the left of Dniester.

Law on The Modification of the Code on Administrative Offence establishes a "conventional unit" instead of minimal salary when calculating administrative sanctions. As of now sanctions will be calculated in conventional units, one equaling 20 MDL.

Law on Granting Labor Inspection the Right to Impose Administrative Sanctions was largely debated by the legislators. Opposition together with some majority faction deputies objected another institution having the right to impose administrative sanctions. However the supporters replied that those sanctions would stop the numerous violations of the labor law. The initiative was voted from the first attempt, however later, one of the opposition deputies withdrew his vote under the pressure of his colleagues. Therefore Communists had come with an additional vote to secure the approval of the law.

(For more information on the legislative activity please see "Legal Commentaries" on ADEPT website).

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2.1. Reshuffles

As part of Government reorganization, Valeriu Lazar Minister of Economy and Commerce, was appointed as Republic of Moldova's representative to CIS Economic Council, thereby replacing Vasile Iovv.

On May 25, Government appointed Igor Semenovcher as Director General of the Agency for Regional Development. Apparently the newly established agency would oversee the implementation of "Moldovan Village" National Plan. Via the same resolution, Mr. Semenovcher was ousted from the previously held position of Deputy Minister of Industry and Infrastructure.

2.2. Resolutions

  • The most important document approved by the Government during the aforesaid period is the Government Action Plan for the second quarter of 2005. The plan encompasses conceptions, strategies, national and sector programs; draft laws and draft normative acts that are to be submitted for the Government examination throughout that period as well as some organizational measures to be undertaken. Among the most important documents it is worth mentioning: Program for modernizing educational system in the Republic of Moldova; draft laws on the conflict of interest; on the Culture Fund, on the declaration of income, estate and other goods accrued by the citizens of the Republic of Moldova; draft normative acts on approving the Plan for construction and development of state frontier at the Moldovan-Ukrainian border in the years 2005-2011, on approving Regulation on funding science and innovation, on the implementation of the Government Action Plan for 2005-2009 "Country modernization - people's welfare", on granting refugee status, etc.

    As for the organizational measures to be undertaken: Chairmanship of GUUAM (currently GUAM); negotiating and signing bilateral cooperative agreements with EU member states in the field of European integration.

  • To enforce the Law on the State Budget for 2005 and several previous governmental motions, Government decided on distributing allocations to raise salaries to employees of institutions funded by administrative-territorial units. The total amount of allocations is worth 60.8 million Lei (4,83 million USD).

  • Given the problems faced by farmers in localities close to Dubasari security zone, Government passed a resolution approving the draft law on canceling penalties, as of January 2005, calculated for the failure to duly transfer social insurance to the state budget.

  • In a similar motion Government cancelled penalties and fines as of December 31, 2004 for the failure to pay taxes to businesses, which do not have arrears on tax payment. Those exemptions amount 161.7 million Lei (12,84 million USD), out of which 57.1 million Lei (4,53 million USD) fine and 104.5 million Lei (8,3 million USD)- penalties. Noteworthy, so far 516.6 thousand businesses, which fully paid taxes, applied for canceling the fines and penalties.

  • Also, Government approved the joint program of the European Commission and Council of Europe for the Republic of Moldova. The program will support democratic reforms in the country and is to be implemented by 2006. An inter-ministerial committee headed by Andrei Stratan, Senior-Deputy Prime Minister and Minister of Foreign Affairs, would oversee its enforcement.

    Under the motion, Ministries and other local government authorities should submit within one month individual action plans on the plan enforcement to the Ministry of Foreign Affairs and European Integration. Based on those plans the Ministry would develop and submit for Government approval the National Plan.

    According to the Senior-Deputy Prime-Minister Andrei Stratan by enforcing the plan Moldovan legislation would be adjusted to European standards, as provided by the EU-Moldova Action Plan and various joint projects would be carried out to consolidate local democracy and support social-vulnerable groups.

  • Two weeks after the Russian governmental weekly Nezavisimaia Moldova was liquidated Government decided the same fate for the Romanian version Moldova suverana. The move comes as a follow up to the string of measures set forth by the Christian-Democrats for voting Vladimir Voronin for the second term.

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3. Presidency

3.1. Voronin - Yushcenko meeting

President Vladimir inspected the new equipment to be used in ensuring the security of the Moldovan - Ukrainian border. On this occasion, Vladimir Voronin met his Ukrainian counterpart Viktor Yushenko. Apart from resolving Transdnistrian conflict, which would be considered in greater detail below, the Two signed a bilateral agreement on crossing Moldovan-Ukrainian border that would serve as basis for defining the principles and procedures for the functioning of the joint Moldovan-Ukrainian customs. In addition the Presidents agreed on establishing informational-cultural centers in the two countries and on convening the joint Moldovan-Ukrainian commissions to settle all the patrimony disputes between the two countries. Ukrainian part also pledged to examine the possibility of exporting electricity to Balkans via Moldova.

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Economic Policies

1. Banks and insurance

The governor of the National Bank of Moldova (BNM), Leonid Talmaci, has reported on activity of BNM in 2004 to the parliament at a recent sitting. Although the bank sector did not post a wonderful evolution, the financial stability was one of its successes in 2004.

The evolutions on the currency market and dynamic of inflation in 2004 threw doubts on the BNM's efforts to respect the monetary targets from the Monetary-Currency Policy for 2004. The supply of currency on domestic market rose under the influence of remittances from abroad (a 70-percent estimated growth) and collections from exports (25 percent). To oppose the excessive appreciation of the Leu, the BNM intensively purchased currency in the second quarter, so that its reserves rose by 55 percent in December up to over 470 million dollars. The annual inflation rate in December 2004 was 12.5 percent, compared with the 8-10 percent inflation forecasted by BNM.

Under such a situation, the BNM had to introduce important changes of key monetary policy tools, and namely it increased the targets for monetary base and unit M2. Raising currency reserves through acquisition of currency from banks was the main monetary growth channel in 2004. However, this tendency seems to be dangerous since it generates new inflationary spirals. The sterilization operations undertaken by BNM were inefficient, while the used tools had low financial maturity terms.

BNM officials have recently said that the National Bank of Moldova could raise this year 600 million dollars in international reserves, though they remained almost unchanged in the first four months of 2005.

BNM purchased 277.1 million dollars on the domestic market in 2004, as a significant supply of currency was available on currency market, particularly generated by remittances of Moldovan nationals who work abroad, while the international reserves rose by 55 percent.

The remittances are on a significant rise this year as well. According to BNM, Moldovans transferred 153 million dollars in the first quarter via bank channels alone, by 53 percent more than in the similar period of 2004.

On the other hand, the remittances in currency represent a massive pressure on the domestic currency market since only ten percent of the money earned abroad represents direct investments, another 60-80 million dollars of annual remittances is deposited in banks, while the rest goes to consumption.

If the remittances grow in continuation the same way, they could amount to more than 600 million dollars this year, and for over one billion dollars, if taking into account the extra-bank inflows, too. We think that the BNM is trying to rebuild a normal stock of currency reserves, so that to enhance Moldova's credibility (and to recover its image) on international capital markets and in front of foreign financiers.

2. Labor market

  • The medium salary in Moldova amounted to 1,278 lei in April, or 75 lei more than in March. In the publicly-supported sector the salary was 971.6 lei, by 27 lei more than in March, and in the non-budgetary sector the salary was 1.437.7 lei, and rose by 97 lei.

    As usually, the largest salary was paid to bank employees, 4,305 lei, by 204 lei more than in March; in the energy industry, gas, and water supplying business, 2,258 lei; in the transportation and communication, 2,161 lei.

    The lowest salary was paid in the agriculture, 607 lei a month on average, by nine lei less than in March; in the education area, 872 lei; and in the healthcare and social assistance, 971 lei.

  • The employed population of Moldova accounted for 1,249,000 persons in the 1st quarter of this year, by 67,000 persons less than in late 2004, according to data of the National Bureau for Statistics (BNS). Salary-earners count for about 67 percent of the employed people, workers on own account represented one third, and employers count for 0.9 percent.

    Statistics show that workers in the agriculture sector represented 37.1 percent of the total of employed people at the end of the 1st quarter, by 4.6 percent more that in the similar period of 2004. Workers in the industry sector count for 12.5 percent, services 37.2 percent, medicine and education 14.3 percent.

    The parliament has passed amendments to the law on employment and social protection of job seekers. They call for the enlargement of categories of unemployment assistance beneficiaries and lower joblessness indemnities.

    The monthly average unemployment indemnity counts for 507 lei (40.5 dollars) at present, and it will amount for 497 lei (39.7 dollars) after enforcement of the new amendments. The category of beneficiaries of unemployment assistance comprises the

    people sacked after the closure or reorganization of enterprises, who will benefit from a joblessness indemnity of 50 percent of the medium salary for the precedent year.

    Many lawmakers representing the parliamentary opposition demanded that the unemployment indemnity remain unchanged, saying that the voted version is unacceptable because it has positive and negative sides. Job seekers will receive lower sums from the state, though the number of beneficiaries will grow, they added.

  • The salary arrears accounted for 137 million lei overall on May 1, 2005, by 14 million lei less than on April 1. The agriculture still holds the largest debts - 51.2 percent or 70 million lei, followed by industry 35.2 million lei or 25.7 percent, including the processing industry 28.4 million lei or 80.7 percent, transportation 10.6 million lei or 7.7 percent, and constructions 8.3 million lei or 6.1 percent.

    The state-owned enterprises (public property) hold 21.2 million lei or 15.5 percent out of overall arrears, the private sector 88.3 million lei or 64.6 percent, mixed property (public and private) 22.6 million lei or 16.5 percent, and foreign property 4.6 million lei or 3.4 percent.

3. Foreign trade

  • Moldova's wine exports rose by ten percent in January-April 2005 up to 7.4 million deciliters or for over 100 million dollars. The exports of sparkling and frothy wines registered the highest rise - 37 percent.

    Russia is the main sale market for Moldovan wines, as it absorbs more than 80 percent of the total of wine production, followed by Ukraine, Belarus, Poland, and Germany. Moldova exports wines to 27 states of the world.

    MoldovaVin forecasts a 10-percent growth of wine exports for this year up to about 300 million dollars. Moldova exported alcohol production worth 278 million dollars last year.

    According to a study undertaken by the Chamber of Commerce and Industry (CCI) on basis of data of the International Trade Centre (ITC), Moldova was ranked the 11th place in the world top of the biggest wine exporters in 2003, and it held 1.2 percent of the world wine export. Following Moldova in the world top are Argentina and New Zealand, which held less than one percent of the world wine export.

    According to the study, France was the world leader of wine exports in 2003, its supplies were valued at 6.6 billion dollars, or 37 percent of the world export. Italy exported wines worth 3 billion dollars in 2003, Spain 1.67 billion dollars, and Australia 1.54 billion dollars. Italy held 17 percent, Spain 9 percent, and Australia 8 percent of the world wine export.

    On the other hand, the study shows that the United Kingdom and the United States were the biggest importers of wines, and they held 20 percent and, respectively, 19 percent of the world wine import in 2003. Germany held 11 percent. The world Top-10 biggest wine importers comprises Japan - 5 percent, Belgium 5 percent, Canada 4 percent, Switzerland 4 percent, the Netherlands 4 percent, France 3 percent, and Denmark 2 percent.

  • Data of the Ministry of Agriculture and Food Industry show that imports of agri-food products rose by 13.2 percent in January-April 2005, up to about 121.2 million dollars, while exports grew by 1.2 percent up to 215.68 million dollars, compared with the similar period of 2004. Analysts explain this phenomenon through a growth of the volume of oleaginous seeds and fruits that Moldova does not produce, which accounted for more than half of the overall imports in January-April 2005.

    Also, exports of wines and strong alcohol drinks represented about 50 percent of the overall supplies in January-April, or 995.6 million dollars. Supplies of fruits and grapes declined from 460,000 dollars in January-April 2004 down to 239,000 dollars in the first four months of 2005. Exports of perfumery and cosmetics rose by over 20 percent

    up to 961,000 dollars.

    Russia's restrictions for imports of fruits, vegetables, meat and sausages from Moldova did not seriously hit the domestic businesses for the time being, but the losses will be visible the next months, if Moldova fails to resume the exports. Earlier, the Agriculture Ministry had forecasted that the exports of agricultural-food products will grow by about eight percent this year, while imports will remain at the level of 2004-2003.

4. Moldova and the world

The European Bank for Reconstruction and Development (EBRD) forecasts a 5.5-percent economic growth for Moldova in 2005

EBRD experts estimated that Moldova will register a 5.5-percent economic growth in 2005, compared with 7 percent in 2004.

The world economy will provide a less favorable environment for the transition economies in 2005, compared with 2004. The performances of the U.S. economy in 2004, as well as the positive estimates for 2005, suggest that the better results of the developed countries will reduce the capital inflows in the transition regions.

According to EBRD analysts, the economies in East Europe and former Soviet states will post a 5.2-percent average development pace in 2005, compared with 6.5 percent in 2004. The slower growth pace is particularly due to the worsening of economic climate at the world level; the high interest rates in the United States; possible declines of the capital inflows in this region.

The EBRD forecasts slower growth rates in all the CIS members, except for Azerbaijan. Thus, Russia's economy will grow by 5.2 percent in 2005, compared with 7.1 percent in 2004; Ukraine 6.5 percent, compared with 12.1 percent in 2004; Armenia 8 percent, compared with 10.1 percent in 2004; Georgia and Belarus 6 percent, compared with 8.4 percent and, respectively, 11 percent in 2004; Kazakhstan 8.5 percent (9.4 percent in 2004); Tajikistan 8 percent (10.6 percent); Turkmenistan 7 percent (7.2 percent); Kyrgyzstan 4.5 percent (7.1 percent); Uzbekistan 4 percent (6 percent); and Azerbaijan 21 percent, compared with 10 percent in 2004.

In turn, the International Monetary Fund (IMF) indicates a slower economic growth in the CIS in its latest global economy development report. According to the IMF estimates, Moldova will register a 5-percent economic growth in 2005. The Economist Intelligence Unit launched a similar forecast. On the other hand, the Moldovan government expects a six-percent economic growth in 2005.

Economic growth in the CIS area. Forecasts of the EBRD for 2005 (%)

Economic growth in the CIS area. Forecasts of the EBRD for 2005 (%)

Source: BNS

Elsewhere, Kurt Geiger, director of the Business Group, the department for financial institutions of the EBRD, told Moldovan President Vladimir Voronin last week that the EBRD will continue to assist Moldova to strengthen and develop the progressive bank sector. EBRD experts appreciate the situation of Moldova's bank sector as positive and stable.

Earlier, the EBRD had expressed readiness to start 10 new projects valued at 21 million euros in Moldova this year, including three worth about 10 million euros in the bank sector.

Under the EBRD Strategy for Moldova approved in July 2003, the Bank will assist the "development of the private bank sector and will provide efficient and adequate financing for private enterprises through local banks, especially for small- and medium-sized businesses and micro-enterprises."

Although the EBRD has opened cheap enough special credit lines in several local commercial banks, such as Victoriabank, Moldindconbank and Mobiasbanca, they increase the interest rate 2-3-fold and make inaccessible the long-term credits, which are absolutely necessary to finance the investment and production spending. Problems such as increased unemployment rate, vulnerability of national producers to foreign stocks, low quality of investment environment, and inefficient promotion of exports are directly connected to accessibility of these credits.

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Transdnistrian Conflict

Within a special session on 10 June 2005, the Moldovan Parliament is to adopt a statement on the Transnistrian settlement plan proposed by Ukrainian President Victor Yushcenko. This decision was taken on 6 June at a working meeting of President Voronin with the leadership of the legislative body. According to a communique from the presidential press service, the meeting noted that the Ukrainian plan "reflects the principles of independence, sovereignty and territorial integrity of the Republic of Moldova, is based on the Moldovan Constitution and takes into account the interests of the population from both sides of Nistru River, as well as the aspiration to European integration of Ukraine and Moldova."

This comes a few days after the June 2 meeting between the Moldovan and Ukrainian presidents in Iasiki Odessa, whose key theme was Ukraine's settlement plan and joint measures in support of the plan. The two presidents signed a joint letter to Javier Solana, Secretary General of the EU Council, and Jose Manuel Barroso, President of the European Commission, in which they call for EU assistance in instituting an international customs control on the Moldovan-Ukrainian border and in setting up an efficient mechanism of international monitoring of the border. According to a presidential press service communique, President Voronin told the press at the end of the meeting that he appreciated the Ukrainian settlement plan and that the active involvement of Ukraine and European bodies in the settlement process create the necessary premises for the identification and application of a viable solution to the Transnistrian crisis. President Voronin is undertaking a visit to Brussels and Strasbourg on 7-8 June, where he will meet both with Solana and Barroso, but also with NATO Secretary General, with whom he will discuss primarily the prospects of regional and international cooperation in resolving the Transnistrian dispute.

On the other hand, immediately after the Iasiki meeting, Piotr Poroshenko, Secretary of Ukraine's National Security Council, on an assignment from President Yushcenko visited Tiraspol, where he met with the Transnistrian leader Igor Smirnov behind closed doors to discuss Ukraine's proposals. After the meeting, the Ukrainian dignitary told the press that the Transnistrian leadership had shown understanding of the prospects offered by the settlement process and that a number of compromises had been reached that had opened up new opportunities. He mentioned that a key task now is to resume the negotiations process because a viable solution may be found only at the negotiations table. An official Transnistrian position on the plan has still not been published, while the Transnistrian official press has interpreted the visit of Poroshenko as one reassuring against unilateral moves by the Moldovan Government and guaranteeing that Transnistria is treated on an equal basis with the Moldovan side.

In the meantime, the Ukrainian plan continues to be in the centre of attention of the Moldovan public opinion. The Association for Foreign Policy of Moldova, a Moldovan think-tank, has issued on 31 May a Declaration on the plan, in which it salutes Ukraine's intention to play a more active role in the Transnistrian conflict settlement process, but describes the plan as one unlikely to secure the territorial integrity and sovereignty of Moldova, let alone Moldova's strategic objective of European integration. Thus, the plan fails to mention anything about the withdrawal of the Russian army from Transnistria, the need to demilitarise the region, the liberation of the Moldovan political prisoners held in Transnistria and erroneously proposes that Russia and Ukraine, two states with considerable interests in the region, act as guarantees for the settlement agreements, etc. While most observers in Chisinau have acknowledged these shortcomings, some have noted that this sort of tough and controversial provisions would have upset Russia and Transnistria and were omitted deliberately from the plan, so that it is accepted by all parties as a basis of discussion. At the same time, observers note, after the publication of the plan, the Moldovan and Ukrainian Governments have actually taken a number of measures to make up for these shortcomings. The outcomes of the Iasiki meeting, but also President Voronin's agenda in Brussels and Strasbourg on the eve of the special Moldovan Parliament session on the Transnistrian issue seem to confirm this theory, at least for now.

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Foreign Affairs


1.1. GUUAM ended in GUAM

As it was to be expected after GUUAM Summit held in Chisinau on April 22, Uzbekistan withdrew its membership in that regional structure. Uzbekistan notified of its intentions Moldovan authorities that exercised the Chairmanship of GUUAM via a letter. The grounds for the move, as indicated by President Karimov, were "the geographic location of the country does not allow pursuing economic and security interests of the country within the new projects and initiatives announced by the organization".

On this occasion, GUAM member countries issued a joint statement . It acknowledges Uzbekistan's right to freedom of choosing how to pursue its interests, dictates enlarging GUAM's spheres of activity, and guarantees that Uzbekistan's withdrawal "will not affect the quality nor the level of our friendship relations", expresses intention to boost cooperation with Uzbekistan in bilateral and international format.

Consequently, as of now GUUAM will be named GUAM.

1.2. Reunion of GUAM Parliamentary Assembly

On May 28, Yalta hosted the Second Reunion of the GUAM Parliamentary Assembly. The VIPs present at the forum included Marian Lupu, Moldovan Speaker (who also presided the meeting given that Moldova hold the Chairmanship); Murtuz Aleskerov, Chair of Milli Medjlis of Azerbaijan; Nino Burdjanadze, Speaker of the Georgian Parliament; Vladimir Litvin, Chair of the Ukrainian Rada; Inrida Udre, Chair of the Latvian Saeima; Ceslavas Iursenas, Deputy Chair of the Lithuanian Seimas and Teodor Melescanu, Deputy Chair of the Romanian Senate.

High on the agenda of the reunion were developing parliamentary aspect of GUAM to ensure economic growth, consolidation of democracy, stability in the region and accession to European Union and NATO. The reunion approved the membership of political and legal commissions, trade and economy commission, education, culture and science commission for the years 2005-2006. In addition it endorsed the resolutions adopted at the Chisinau GUUAM Summit, expressed the need to develop the structure, and raise its role in solving conflicts, fighting secessionism, extremism and other threats to international security.

2. Moldovan - Croat relations

On May 30-31, 2005 Croatian President Stjepan Mesic paid an official visit to the Republic of Moldova. As part of the official visit Croatian President met his Moldovan counterpart to talk bilateral economic relations, mutual support on the European and international level, preventing and fighting secessionism, traffic in human beings, arms and drugs. The Two also examined possibility of Croatian investments in Moldovan food industry and telecommunications.

Following the meeting, several documents were signed at the plenary session of the official delegations, namely: Joint Statement of the Presidents, Convention between the Croat and Moldovan Governments on avoiding double taxation, Governmental Agreement on reciprocal customs assistance.

The Joint Statement of the Presidents reaffirms both countries' European aspirations, commitment to democratic values and market economy, pledge to adjust Moldovan and Croat legislation to EU norms on free circulation of goods, services, capital and people. The document also emphasizes the need to boost cooperation in trade, transportation, communications, energy, tourism, science and culture.

Also the document talks of learning from Croat experience in European integration. Another important aspect outlined in the document is boosting cooperation within Stability Pact for South Easter Europe, Central European Initiative, and Process of Cooperation in Southeastern Europe.

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Studies, Analyses, Comments

What is the future of the Ukrainian plan on resolving Transdnistrian conflict?
Igor Botan, 9 June 2005

Given the favorable international context some opposition media calls President to "strike while the iron is hot"»»»

Vegetables and fruits might temper swelling inflation
Iurie Gotisan, 9 June 2005

In the summer the price on many food products goes down, thus slowing down inflation»»»


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