Activity of the Government on June 15–30, 2006

Rules. Reshuffles

The Government has proposed the appointment of Alexei Tulbure to the post of extraordinary and plenipotentiary ambassador, resident representative of Moldova to the United Nations. Tulbure has recently been recalled from the port of resident representative of Moldova to the Council of Europe and this post is still vacant.

The Government has relieved PPCD Deputy Valentina Cusnir from the post of deputy director of the Moldova-Vin Agency at the request of the agency administration. Cusnir did not hand over her mandate of deputy in the due term and she was incompatible for this office.

Decisions

Decision approving the action plan of the Government for the 3rd quarter of 2006. The executive intends to adopt national programmes, to promote draft laws on traffic security, protection of soils, monuments, etc., to the Parliament.
Decision on medical expertise of vitality. The regulation of the republican council for medical expertise of vitality and instruction on ascertainment of invalidity was approved. Earlier, the chief of state, parliamentarians, the Prosecutor’s Office and the Centre for the Struggle Against Economic Crimes and Corruption have invoked shortcomings related to expertise of vitality and high corruption rate in the system, findings that the central leadership of this institution did not deny.
Decision on unit of analysis, monitoring and assessment if policies in specialised central bodies of public administration. The document issued on June 23, in line with the central public administration reform strategy obliges several ministries (of justice, agriculture, industry, transportation, education and health) to create some units of analysis, monitoring and assessment of policies. The document approves a framework regulation of the unit, which will hold the status of self-governing structural subdivision.
Decision changing the names of some lycees. The executive has ordered the change of the names of high schools containing “Moldovan-English, French, Italian, German lycees” into “theoretical lycee”. De facto, the changes suppress the word “Romanian” used for a long time to identify these lycees after 1991.
Decision approving the note to the draft initiative on denunciation of the memorandum on normalisation of relations between Moldova and Transnistria. The Government has turned down a proposal of opposition lawmakers to denounce the 1997 memorandum, saying that the document was signed during negotiations and it is not an international legal act in terms of national and international legislation. Therefore, the document cannot be denounced like international treaties given the restricted legal validity.
Decision approving priorities of the 2007 tax policy. The annual personal exemptions for individuals are expected to grow (from 4,500 lei up to 5,400 lei, while for maintained persons from 840 lei up to 1,440 lei). The reduction of income tax will be insignificant: from 8% down to 7% and from 13% down to 12%. The maximum tax is maintained at the level of 20% (for monthly revenue higher than 1,750 lei). Economic agents who place their money in commercial banks for more than three years or purchase securities maturing in over three years, businesses who make capital investments will be exempted from income tax.
Decision on issuing of single printed forms for registration of certificates of birth, marriage or death. Thus, the Ministry of Information development will elaborate and implement a single system of registration of certificates of birth, marriage, paternity, and change of name or surname, divorce, death, adoption. The earlier issued certificates will be effective in continuation.
Decision on support of young medical specialists. According to the approved document, graduates from post-university, secondary medical and pharmaceutical education employed in rural localities accordingly to assignment of the Ministry of Health and Social Protection will benefit of certain facilities in the first three years of work: a 30,000-leu single indemnity for doctors and 24,000 lei for nurses (paid in parts of 7,500 lei and 6,000 lei after the first month of work and at the end of every year of work); free residence offered by local public authorities for the period o work in their locality (compensation of the rent tax); monthly compensation of the cost of 30 kW of electricity and annual compensation of a cubic metre of wood and a ton of coal. It should be noted that it was earlier decided to offer the same facilities to young teachers, but this experiment was not summarised until now but media institutions reported that the authorities are disappointed with the effect of these facilities.
Decision on allocation of finances. The Government has obliged the Ministry of Finance to allocate from the reserve fund of the executive and “from account of general revenues of the state budget by establishing the source to cover them when the 2006 state budget law will be modified”:
1. 3.8 million lei to the Ministry of Industry and Infrastructure for projection of the high pressure gas branch pipe Tocuz-Cainari;
2. 1.09 million lei to the Ministry of Foreign Affairs and European Integration for renovation of offices inside the ministry;
3. 33,900 lei to the Government’s Apparatus to cover expenses related to the visit of baroness Emma Nicholson Winterbourne, member of the European Parliament, to Moldova.
Decision on reorganisation of the State Guard Service of the Interior Ministry. The document stipulates the reduction of the service effective by 400 units in 2006 and 300 units in 2007 by dismissing personnel. Also, it calls for the reorganisation of the service into a state-owned enterprise founded by the Interior Ministry.

Sittings. Decisions. Declarations

Meeting at Gazprom

On June 22 Prime Minister Vasile Tarlev met Alexei Miller, head of the Management Board of the Russian giant Gazprom. According to an official press release of the Government, “the sides have tackled various sides of the bilateral cooperation at the meeting.” Tarlev told Miller the measures taken by Chisinau Government to create a tax preference system for the implementation of investment projects in Moldova. The sides studied perspectives of participation of the gas giant Gazprom in implementation of investment projects in energy sector of Moldova. They decided to study and to work out by October a series of issues related to the signing of a long-term natural gas delivery contract for Moldova. The sides agreed “to jointly elaborate and coordinate by end of this month the conditions for delivery to Moldova and transit of natural gas in territory of the country in the 3rd quarter of 2006.”A communication published on the website of Gazprom said that the sides have “examined the problem of signing of long-term agreements” while the price will be determined by “price formula”. At the same time, Gazprom is planning to deliver gas to Moldova for 160 dollars per 1,000 cubic metres.

Dissatisfaction with situation in civil aviation sector

The prime minister has raised dissatisfaction with the situation in civil aviation sector and demanded the State Administration of Civil Aviation (ASAC) to report on activity held in the field in 2005 and in the first half of this year. Vasile Tarlev invoked the lack of an efficient cooperation between ASAC and subordinated enterprises, inefficient expenses, insufficient completion of the airship operator.

Preparation for winter

The governmental commission for the preparation of national economy for the heating season 2006–07 has heard a report on measures taken by relevant institutions. According to the report, many auctions have been held to acquire coal, while more than one billion lei has been foreseen in the state budget for heating sector, of which 320 million lei was already spent. The prime minister chaired the sitting and asked competent authorities to take measures in districts in order to preserve energy and to optimise expenses for energy resources. Vasile Tarlev demanded local programmes on energy conservation and reasonable use of unused spaces, as well as the finalisation by July 15 of auctions for acquisition of fuels needed by public institutions.

Activity of the Ministry of Foreign Affairs and European Integration

The minister of foreign affairs and European integration has summarised at a news conference the activity of the ministry in the first half-year. Andrei Stratan named the following accomplishments: Moldova’s full rights membership to the South East European Cooperation Process; progresses inside GUAM; intensification of relations between Moldova and NATO. As regards tasks, he indicated the intensification of the dialogue with the European Union regarding the simplification of visa regime; cooperation in energy sector; monitoring of the process of coordination of the national migration management system; signing of an asymmetrical trade agreement with the E.U. Stratan firmly reiterated the European integration course of Moldova, saying that the Moldovan authorities will demand the signing of an association agreement with the E.U. after implementation of the Moldova-E.U. Action Plan.

Wine promotion

A sitting on promotion of Moldovan vine and wine production to foreign markets, convoked by Premier Vasile Tarlev, has decided to create special teams including representatives of special structures to promote this production in different countries. The results of recent exhibitions and promotions of Moldovan wines hosted by different countries, international and regional organisations come to support this idea. At the same time, the Moldova-Vin Agency is finalising special wine promotion programmes.

Situation of oil market

The prime minister has convoke a sitting with the participation of representatives of relevant state structures and companies importing oil products, which ascertained that the domestic market does not face a deficit of fuels. However, prices of fuels are established in dependence of fluctuations on international market, accordingly to principles of market economy and the prices cannot be maintained in an administrative manner. Representatives of oil companies have posted intention to import bio Diesel, but the normative framework and internal standards in Moldova must be adjusted for this purpose (state structures will take measures in this regard at the indication of Vasile Tarlev). The prime minister said that the Government is working to reduce the negative impact of higher gasoline and Diesel oil prices on economy, especially on activity of farmers, and a big hope for this purpose is invested in the Giurgiulesti oil terminal.

Sustenance of domestic producers

The Government hosted a sitting on activity of the working group created to assess problems of domestic producers, at the recommendation of the autumn 2005 forum themed Investment Climate in Moldova. Appreciating the activity of this group, the prime minister warmed proposals to apply customs duties for imports appropriately and “warned against need to continue with principledness the policy on reduction on bureaucratic barriers on way of entrepreneurs.” Vasile Tarlev also indicated the “opportunity to reduce in continuation the groundless involement of control vodies in entrepreneurial activity, the number of authorisations and certificates needed by entrepreneur.” The premier invited state and nongovernmental bodies to take joint actions in order to create conditions of work for domestic producers. Press services fell short of revealing whether the prime minister assumed these appreciations and calls for the further implementation or he told hi opinion to businessmen and representatives of state structures who attended the sitting.

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