Activity of the Government on September 27 – October 17, 2004

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Decisions

Following the appeal of the Centre for Consumer Rights’ Protection regarding distribution of plots for construction in Chisinau Municipality, on September 28 Government passed a motion on controlling the legality of allotting the aforesaid plots, thereby obliging a number of local and central government bodies to check the plots listed in the annex, find out any irregularities in allotting the plots and issuing construction authorizations, start the procedure of cancelling previous decisions in cases when plots had been allotted illegally, suspend construction works on those plots, and ensure that the plots are brought to the initial state, plus submit a report on enforcing those measures provided for in the Action Plan for enforcing the Law no.835-XIII of May 17, 1996 on Principles of Urbanism and Territory Planning and other normative acts.
In the same resolution Government recommends Chisinau Municipal Council to turn Architecture and Urbanism Department into an autonomous service in the subordination of the State Construction Inspection.
Experts say disputes around land allotment and the arrest of three municipality dignitaries seek to intimidate opposition. In a press release issued on September 28, National Coordinating Council of Democratic Moldova Bloc condemned the “abusive” arrest “fabricated at the order of central government”. A number of media outlets have similar opinion quoting in this respect an order issued by the President on July 30 to the Prosecutor General, Head of the Centre for Fighting Economic Crime and Corruption, and other state dignitaries obliging them to “punish persons found guilty of irregularities in the Chisinau Municipality finances over 2003”.
One of the most important Governmental motions passed during the aforesaid period was the endorsement of the Conception of Cross-border Cooperation of the Republic of Moldova for years 2004–2006 and National Action Plan.
Conception outlines the following cross-border cooperation opportunities among Moldova-Romania-Ukraine Euro-regions: establishing a joint informational space on economic potential and business opportunities at the border region; establishing joint structures to facilitate economic cooperation, recognition of goods certification procedures; developing infrastructure in the border area that would facilitate auto, railway, river and maritime transportation; developing a joint strategy to boost tourism in border areas; fostering cooperation between educational institutions in the region; coordinating environmental programs; transfer of know-how and information technology, etc.
According to the Conception, the main goals set for 2004–2006 are: coordinating and adjusting instruments for cross-border cooperation; for the relevant state structures of the Republic of Moldova to prepare and co-ordinate together with partners in euro-regions and international organisations concrete projects in education, infrastructure, research, and investment.
Conception’s top priorities are taken from such documents as: Madrid European Convention on Transfrontier Co-operation between Territorial Communities or Authorities, Partnership and Co-operation Agreements, European Commission statements of March and July 2003, Republic of Moldova — EU Action Plan, etc.
As for the Action Plan for enforcing the Conception it includes a raft of measures at the central level as well as for each of the Euro-regions in particular: 1) “Upper Prut”, 2) “Low Danube” si 3) “Siret-Prut-Dniester”.
As a follow-up to the decision of the Interdepartmental Commission on co-ordinating actions in view of reforming state regulation of entrepreneurial activity, Government approved the timetable of fiscal controls for the second quarter of 2004. It comes as a surprise why the timetable was approved only now when we are somewhere between the third and forth quarter.
Fiscal controls of the economic agents should be conducted in line with the provisions of the Government motion on regulating controls. The latter provides that economic and financial activity of a businesses may be controlled at most once in two years; whereas its technical, technological, sanitary, environmental and labour conditions once a year.
The annex approved via Governmental motion includes 4,449 businesses throughout the country due to be controlled by fiscal bodies (the full list was published in Official Monitor, XI, no. 182–185 (1536–1539) October 8, 2004).
On October 4, Government raised by 30% wages to teachers and high-rank officials in preschool institutions, primary schools, secondary schools, professional schools and sports schools, as of December 1, 2004. Thereby Government seeks to improve the situation in education amidst surging exodus of teachers from schools. Albeit the recent raise, teachers are still in quite a difficult situation, therefore one should not put much hopes that the exodus would shot down.
And last but not least, Government endorsed the draft law on ratification of the Agreement between Republic of Moldova and Ministerial Council of Albania on protecting investments.
On October 13, Government approved a draft law on modification and completion of Article 4 of the Title III of the Fiscal Code. According to Minister of Economy, Marian Lupu the move is intended to eliminate any inconsistencies in applying VAT to sugar processing industry. Currently a 5% VAT is applied in agriculture, while in sugar processing a 20% tax. Eliminating the discrepancy according to the Minister will allow sugar factories to set a higher price on purchased sugar beet, and as a result bolster sugar industry. In 2003 sugar factories purchased sugar beet at 330 Lei per tone.

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Activity of the Government on September 27 – October 17, 2004

Decisions

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