Activity of the Government on July 30 – August 30, 2005

Appointments

On August 18, at the initiative of the Ministry of Foreign Affairs and European Integration Government appointed Ion Filimon, former Communist MP, as the Republic of Moldova Ambassador to Belarus. The President is to issue a decree in this respect.

Resolutions

On August 1 Government passed amendments to the Regulation of the National Committee on Fighting Trafficking in Human Beings. The Committee is to coordinate human trafficking prevention and fighting activities. It includes representatives of Ministries and public institutions and is also opened to non-governmental organizations working in the field.
The same day Government decided to establish a Commission to coordinate inter-ministerial activities in view of European integration. Ministry of Foreign Affairs and European Integration was designated to coordinate and monitor the enforcement of the Action Plan EU-Republic of Moldova. Ministries and public institutions were obliged to enforce in due time actions in view of RM accession to EU.
Albeit the Government had been sworn in on April 19, 2005 when the Parliament voted it together with its governing program, Government Action Plan was only approved on August 1, 2005. Action Plan for years 2005–2009 entitled “Country modernization — peoples’ welfare” seeks to ensure: a stable economic growth; solve social problems; bring RM into the European and international economic structures, etc. Following a model developed by the Ministry of Trade and Economy, Government obliged all the central public institutions to draft within a month their own action plans. Furthermore, Government obliged Ministries and other central government institutions to quarterly report on the steps taken to enforce the EU-RM Action Plan. Ministry of Trade and Economy was obliged to develop a single monitoring and evaluation system for programs of strategic importance, namely: Poverty Reduction and Economic Growth Strategy; EU-RM Action Plan; Millennium Development Goals; “Moldovan Village” National Program.
On August 2, via its Resolution no. 814 Government confirmed the main guarantees to residents of Transdniestria. The Resolution enforces the Law no. 173-XVI of July 2005 on Basic Provisions on the Special Legal Status of the Residents to the Left of Dniester (Transdniestria). The goal of Republic of Moldova’s reintegration via humanitarian, socio-economic and legal assistance to Transdniestrian residents is to be achieved by guaranteeing the right on property to both legal and natural entities of Transdniestria: once the conflict is settled issuing certificates confirming those assets; preserving the same social security Transdniestrians’ enjoy at the moment and further sdeveloping it; keeping and re-hiring the employees of the law enforcement forces after the conflict is resolved and dissolving illegal forces.
The same day Government passed another resolution, thereby ruling that once the Decision of the Ukrainian Government no. 165-p of May 26, 2005 enters in force, Registration Chamber of the Ministry of Information Development would keep a record of Transdnistrian exporting and importing businesses, attributing them a provisionary code and including them in the State Registry.
On August 8 Government completed the list of loans and grants issued with a state guarantee, from the loans issued by the international monetary institutions for projects, as well as from grants provided by international monetary institutions to state-funded institutions — from which VAT and customs fee exempted goods and services shall be imported or purchased. The list was completed with SIDA grants on implementing and monitoring projects in agriculture, Management of public finances implemented by the Ministry of Finance as well as NATO grant to the Defense Ministry.
On August 10 the Regulation of the Government Apparatus was approved. The move is in line with the much-awaited modernization of central administration announced three years ago. Similar move was taken as regards State Chancellery that used to perform similar functions.
Government had to revisit the much disputed issue on Chisinau heating stations “CET-1” and “CET-2”. On August 15 Government approved Ministry of Industry and Infrastructure proposal to repeatedly restructure CET-1 and CET-2 in line with the Law of Insolvency. Government recommended Creditors’ Council to conclude with CET-1 and CET-2 Memoranda for the restructuring period.
On August 19 Government obliged Ministry of Trade and Industry to develop within two months Instructions on calculating poverty line, in consultation with the National Statistics Bureau and UNDP-UNICEF Program “Support for developing, monitoring, and evaluating RM strategic policies”.
On August 23 Government cancelled its own decision on banning the import and sale of second hand goods. The move comes in response to severe criticism and protests by second hand retailers. Initially, the import of second hand goods was to cease as of September 1, while its sale as of February 28.
Small Business Association criticized the decision arguing that: a) the move would leave more than 15,000 retailers out of jobs; b) according to some estimates 80% of the RM population buy second hand goods, if the Government decision was to be enforced they would be left with no opportunity to buy affordable clothes; c) last year alone second hand goods worth 24 million Lei were sold in Moldova, with 8 million Lei going to the state budget; d) authorities ignore the interests of the people, rather they seek to “hold the monopoly on the market”; e) Government initiative might spur shadow business, having all the negative consequences.
In their turn, authorities argue that: a) second hand goods are mainly sold by natural entities, which runs counter to the legislation; b) the imports of second hand goods imported by natural entities exceed three times the reported sales; c) if the trend continues, Republic of Moldova would never get a chance to revive its light industry and turn to civilized commerce; d) Healthcare Ministry officials reported that the number of skin diseases raised 1.6 times since the second hand goods have been sold on the Moldovan market.
Nevertheless, Government cancelled its decision, while Prime Minister Vasile Tarlev promised to found those guilty responsible for that decision, albeit he himself signed it. The thing is that this issue might prove to have in the future a major electoral impact.
During the reported period the following Advisory Councils have been established: of the Ministry of Transportation; Ministry of Information Development; Customs Service; Ministry of Foreign Affairs and European Integration; Ministry of Finance; Ministry of Healthcare and Social Security; Ministry of Trade and Industry.

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Activity of the Government on July 30 – August 30, 2005

Appointments

Resolutions

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