Activity of the Government on March 15–28, 2006

Reshuffles

The Government has appointed Ion Mihailuta as chief state adviser for local public administration. Mihailuta had earlier worked in subdivisions of the Government’s Apparatus (State Chancellery).

Decisions

Decision on indexation of social insurance contributions and some state social contributions. The document establishes the indexation of contributions in 2006 in the amount of 15.7 percent, by taking into account the 11.9 percent annual rise of consumer price index and the 19.5 percent annual growth of medium salary on country in 2005. All types of pensions established and calculated on basis of the law on social insurance pensions, as well as pensions of lawmakers, Government members, pubic functionaries, local councillors and customs officers will be indexed.
Decision on approval of the size of amounts paid to individuals summoned by court, penal investigators, bodies in charge with examination of administrative materials and implementation of execution documents. The March 15 decision establishes the sizes of amounts paid to summoned individuals by court, penal investigators, bodies in charge with examination of administrative materials and implementation of execution documents (4–6 lei/hour for their work; maximum 36 lei a day as compensation for not doing their basic work).
Decision on approval of the draft law on the National Institution of Justice. The draft law presented to the Parliament for examination aims to constitute and establish the legal status of the National Institute of Justice, its principles of organisation and functioning, initial and further training of judges and prosecutors, as well as other persons who contribute to the justice making process. The creation of the Institute is insistently recommended by international institutions, being an important stage for fulfilment of commitments on reformation and insurance of efficiency of justice, a point of the Moldova-E.U. Action Plan. Some obstacles may appear during examination of the document by Parliament, especially because representatives of justice have already disapproved some provisions of the draft, in particular, on autonomous status and lack of necessary finances to start a normal working of the Institute. Under the legislative programme for 2005–2009 (approved through the Government Decision # 300 from November 24, 2005), the Law on National Institute of Justice should be approved by the end of the first trimester of 2006.
Decision on allocation of financial means of the Central Election Commission (CEC). The executive has allocated 210,000 lei from its reserve fund for preparation and conduct of a sociological research of absenteeism at the 2005 elections for the Chisinau mayor-general post and conduct of an international organisation on this issue; coverage of costs of participation of CEC members as international observers in the parliamentary elections in Ukraine and Hungary; partial coverage of expenses for purchase of a service car.
Order of the prime minister on execution of the Government Decision # 1031 from October 3, 2005 on implementation of national programmes. Under the order, ministries and other central administrative authorities will present reports twice a year within established terms and under personal responsibility of heads of these authorities, which will be examined at Government sittings, and draft laws containing an objective assessment of the implementation of national programmes and strategies (including accomplishments and deficiencies registered during their accomplishment). Senior state advisers will carry out a qualified analysis of these reports and will deliver these analytic notes to the Government administration.

Sittings. Decisions. Declarations

Report on implementation of EGPRSP

The Government unveiled the annual report on implementation of the Economic Growth and Poverty Reduction Strategy Paper (EGPRSP) at a national forum on March 23. According to estimates, the poverty rates have declined by 14.5 percentage points in 2002–2004 and 26.5 percent of Moldova’s population was poor in 2004 (compared with 40 percent in 2002). The social-economic evolution is characterised through progress, while the rise of GDP in 2005 (7.1 percent) exceeded the estimates from EGPRSP (5 percent). These collections of budgetary resources, fiscal administration have progressed, the healthcare factors have improved (maternal death rate, infantile death and morality rate of children under 5 have declined).

However, the economic growth is due to the rise of consumption fuelled mostly by imports and financed by remittances. According to the report, “the high flow of remittances (39 percent of GDP), growth of import (77.5 percent of GDP), trade deficit (39 percent of GDP) and current account deficit (7.3 percent of GDP) are elements of the rise of dependence of economic growth and economic situation in general on foreign factors. Under these conditions and due to the insufficient restructuring of economy and low investments, external vulnerability of the country is growing, while the perspective of a sustained economic growth and poverty reduction may become uncertain, if no immediate actions are take to remedy the situation.”

The category of problems also includes:

low commitment of different central and local public institutions in implementing the regulatory reform;
worsening of some quality features of banking activity, low crediting of economy, reduction of profitability of assets and efficient of banking activity;
low performance of domestic enterprises (faulty corporate management, inadequate productive structures, old production capacities, limited access to finances, etc.);
modest rise and low level of productivity in agriculture sector;
delayed rehabilitation of infrastructure, rise of fuels prices;
slow reformation of pension system, delayed implementation of the personified record system and lack of a successful system to motivate employers and employees;
stagnation of regional development policies, etc.

Support to agricultural producers

Prime Minister Vasile Tarlevhas told the General Assembly of the republican union of associations of agricultural producers Uniagroprotect that the authorities are expected in 2006 and in perspective to revise all national and structural programmes on agri-food sector; to promote model projects on development of capacities of ecological agri-food production; utility of two district laboratories for testing of animal food products; to open local offices to provide livestock services and technological stations of machines; to subsidise indirectly by allocating some credits for special purposes for development of some key branches of the country’s economy, etc.

The prime minister assured that the proce of Diesel oil acquired by farmers will not grow by July 2006, and the moratorium was agreed ar a sitting with the participation of biggest importers of oil products on market. The executive hopes that oil products could be imported for lower prices after the opening of the Giurgiulesti oil terminal.

Annulment of entrepreneur’s patent

The Government will propose the gradual withdrawal of retail trade, passenger transportation by cars, taxi and cargo carriage practiced on basis of entrepreneur’s patent. These amendments to legislation will be enforced by late 2008. The executive motivates its intentions through the need “to legalise the commercial activity and to protect the rights of consumers,” by starting from the fact that the volume of retail sale on basis of entrepreneur’s patent is valued at over 8 billion lei (more than 600 million dollars). The Ministry of Economy and Trade proposes to admit the free registration of holders of patent as individual enterprises or other legal form of activity. We note that the law on entrepreneur’s patent was adopted in 1998 and it allows now about 50 types of activities with payment of some fix monthly or annual taxes, which include: income tax, taxes for natural resources; tax for location of commercial facilities, tax for territorial arrangement, tax for the right to provide passenger carriage services, as well as taxes to the state social insurance budget. Other fees, taxes and duties are paid by patent holder after general principles.

Declaration on property in Transnistria

The Moldovan Government has adopted a declaration saying that “the entire patrimony of residents of the Transnistrian region, production potential of economic agents based in the region, are not and cannot be an object of pretension of Moldova’s official authorities.” The executive declared that it “guarantees the right to property of individuals and businesses from the Trasnsnistrian region registered with relevant bodies of Moldova, rules for conduct of foreign trade operations, as well as rules for registration of economic agents in the Transnistrian region approved through the Government decision # 815 from August 2, 2005, # 1001 from September 19, 2001 and # 299 from March 22, 2006, will action until elaboration of a mechanism to regulate these relations within the definitive political settlement of the Transnistrian conflict.”

The declaration was adopted at a large sitting of the Government dedicated on developments in the eastern region of the country, with the participation of Moldova’s President.

e-democracy.md