Activity of the Government on September 1–15, 2006

Appointments. Reshuffles

Petru PLOP was appointed as director of the Interior Ministry’s Centre for the Combat of Trafficking in Persons under a September 6 governmental decision. The governmental decision is grounded on “Amendment II to the Agreement Letter on drug control and enforcement of the August 28, 2001 laws between the Moldovan Government and the U.S. Government.”

The Government has confirmed Nicolae CERVENCOV as rector of the Taraclia-based State University after a contest held in accordance with the law on education.

Decisions

Decision on concept of internal control and audit system in public sector. The creation and functioning of this mechanism is part of priorities of the E.U.-Moldova Action Plan and it will substitute the current financial control and revision system in public sector in future. The internal auditing will provide advice and consulting for a better management of public funds, better activities of public institutions.
Decision on some measures for optimisation of the spirits quality control system. This decision approves the creation of the state-owned National Spirits Quality Control Centre through reorganisation from a state-owned enterprise with similar functions. Moldova-Vin Agency will identify the requirements of importing countries concerning quality and safety of alcohol products and will deliver them to the newly-created centre.
Decision approving the notice to the draft law on denunciation of constitution documents of CIS. The Government opposes this decision for the second time this year, saying that this problem will be examined when Moldova will sign the association agreement with the European Union.
Decision on administrative support centre for assistance of implementation of the reform strategy on central public administration in Moldova. It creates the office and approves its statute.
Decision on creation of a working group. With the view to work out proposals on fulfilment of tasks outlined by chief of state at the July 29, 2005 plenary sitting of the Parliament, the working group will analyse the international practices in order to elaborate the opportune model for implementation in Moldova; will elaborate and table amendments to legislation by October 25.
Decision on allocation of finances. The Ministry of Finance must allocate 19.4 million lei to the Chisinau City Hall “from general revenues of the state budget” for construction of the trolley line Centru-Petricani, and “will establish their coverage when the state budget for 2006 will be eventually rectified”.
Decision on transmission of a building. The Government has decided to transmit free of charge a building covering 385 square metres and an adjacent plot of 0.075 hectares in 14 N. Iorga street in Chisinau from the balance of the directorate general for service of Government’s buildings to the balance of the Metropolitan Church of Chisinau and Whole Moldova.
Decision approving some draft legislative acts. The executive has approved the draft laws:
- on state budget for 2007. Incomes are estimated at 12.05 billion lei, while expenses at 12.131 billion lei. Its estimate that budgetary expenses will be mainly directed to the social sector (rise of salaries, indemnities and implementation of social programmes), since 2007 is an electoral year, while 60 percent of the planned capital investments will go to the implementation of the “Moldovan Village” Programme (the 2007 general elections are local elections). The executive estimates that the economic growth pace will decline, the real growth of GDP for 2007 is expected to be 4 percent (the forecast for 2006 was 6.5%, but it was already updated).
- on state social insurance budget for 2007. Incomes will account for 4.958 billion lei, while expenses will amount to 5.78 billion lei. The money will be raised from employers who will have to pay a social insurance contribution of 25 percent of the salary fund for workers, (compared with 26 percent in 2005), while employees will pay 4 percent of their salaries (compared with 3 percent in 2006). A 900-leu single birth indemnity will be paid to new-borns (compared with 800 lei in 2006). Most of funds will be used to pay pensions;
- on mandatory health insurance funds. In 2007, the mandatory health insurance funds will comprise 1.937 billion lei. A policy will cost 1,209 lei, by 393 lei more than in 2006. Employees will pay 2.5 percent of their salaries and other earnings a months, while employers will pay another 2.5 percent (the employer and employee pay by 2.0 percent each this year);
- on transparency of decision-making process. The document stipulates the right of individuals and businesses to participate in making and approving decisions by central and local public administration authorities. The decisions will be raised for public debates in order to learn the opinion of community;
- on housing. The document will regulate the rights of citizens to enjoy priority for housing (homeless people, orphan children and children without parents’ care, internally displaced persons from the eastern districts of the country). The law will also regulate the record and types of dwelling funds, reconstruction, technical service and repairing, modalities of payment for use of residence and public dwelling services, control of central and local public administration authorities on rights of citizens to residence, respect for rules and norms of management and technical service of dwelling fund, as well as evacuation of citizens from dwelling fund;
- on electronic communications. The draft will allow the efficient liberalisation of market, creation of favourable conditions for entrepreneurial activity in the field, protection of users. The rights of final users, access to public electronic communication networks and associated infrastructure, and their interconnection will be regulated. The document aims to adjust the national legislative framework to the community one, being drafted in line with the E.U.-Moldova Action Plan, EGPRSP and the 2005–09 Action Programme of the Government;
- on annulment of taxes for visas. Foreigners who will want to celebrate the National Day of Wine on October 7–8 will not have to pay taxes for Moldovan visas (40–60 dollars). Foreign citizens will be able to obtain visas free of charge from diplomatic and consular missions of Moldova abroad, as well as from consular offices to other countries: the Chisinau International Airport, Leuseni, Cahul and Sculeni. It should be mentioned that starting January 1, 2007, Moldova will abolish the visa regime for citizens of the European Union, the United States, Canada, the Swiss Confederation and Japan.
- on modification of some legislative acts. It seeks the exclusion of the right of police, the Constitutional Court, judges, prosecutors, employees of penitentiaries, military to enjoy priority for housing. The amendments are argued through fact that the norms are declarative, while the state cannot fulfil its commitments in the field. It also invokes the need of ensuring the constitutional principle of quality in front of law, though these norms continued to be in force after 1994 and laws that preserved these priorities have been recently adopted, while the Government did not declare them as unconstitutional. At the same time, some judgments of the Constitutional Court say that it is inadmissible to reduce the legal protection of judge sanctioned by the law on status of judge (Judgments of the Constitutional Court #4 from 27.01.2000, #19 from 29.04.1999, #27 from 18.05.1999, #38 from 15.12.1998) when new laws and other legal acts are adopted.

Sittings. Decisions. Statements

Continuing the implementation of EGPRSP

The prime minister has chaired a working sitting on results and extension of implementation of the Economic Growth and Poverty Reduction Strategy Paper (EGPRSP). The Ministry of Economy and Commerce estimates that the EGPRSP commitments for 2004–2006 have been generally implemented in all dimensions, a fact confirmed by assessments by IMF and the International Association for Development. At the same time, it was established that many objectives remain current for the next years and the implementation of EGPRSP will be extended and some objectives will be preserved. A group was created at the order of prime minister to make a synthesis and an analysis of results of implementation of objectives and priorities of EGPRSP and after socio-economic development in 2004–2006, and a task force was set up to start the process of revision and elaboration of annexes 5, 6 and 7 to EGPRSP. Ministries and other central administrative authorities must table proposals on revision of annexes 5, 6 and 7 to EGPRSP by September 25.

New Strategy on Attracting Investments and Promoting Exports

The Ministry of Economy and Commerce has launched the draft Strategy on Attracting Investments and Promoting Exports for 2006–2015. The strategy aims to attract investments capable to allow the diversification of the range and the growth of production volumes and competitive services on domestic and foreign markets, as well as to produce a considerable rise of export potential. The key directions of the strategy are: improvement of the framework of policies on attracting investments; promotion of investments in infrastructure; development of exportation of goods and services; privatisation and improvement of management of public patrimony; development of financial market; stimulation of investments, development of free economic zones, creation of industrial parks, etc. The basic priorities are: applying the role of capital market and developing the export of goods and services. Moldova is expected to pass from classic economy to the new intelligence-based economy, with reconsideration of the goods-services relation.

Low effect of GSP Plus

Although the authorities have declared it as a notable success, Moldova’s adhesion to the Generalised System of Preferences GSP Plus of the E.U. did not bring the expected results. According to the Ministry of Economy and Commerce, economic agents have proved to be weakly prepared, while goods that could be exported are in a small volume or do not correspond to E.U. standards.

Analysis of execution discipline

Many ministers have been criticised at a sitting convoked by premier for presenting lately or ignoring some drafts and documents that they should work out. The premier criticised the discipline in ministries, though he said that it has constantly improved since 2001. Vasile Tarlev ordered an in-depth report on measures taken to strengthen the discipline in governmental institutions.

Foreign assistance for reforms

Moldova’s accomplishments on European integration path have been appreciated at a meeting between Vasile Tarlev and Bruce Jackson, chairman of the U.S. organisation Democracies in Transition, with the sides agreeing that the pace of actions aimed to promote Moldova’s image abroad should be speeded up. The sides agreed on creation of a group of U.S. and E.U. experts to provide international consulting to the Government in the European integration and reformation process.

Concerns with growth of transparency and cooperation with civil society

On September 5, the prime minister attended a seminar on participation of civil society in making decisions and he revealed the following facts:

the central public administration reform also means optimisation of the dialogue between Government and civil society through necessary actions: development of the mechanism of access to information about activity of public institutions; ensuring respect for citizens’ rights to participate in the decision-making process; consulting the public opinion in the field of drafting and implementing the state policy;
every minister and head of central administrative authorities was told to ensure the publication of information about activity of the body they rule in mass media, organising news conferences every month;
under a governmental order, “confidence telephones” have been created in institutions of central public institutions, allowing citizens to call with various purposes;
these institutions have appointed persons in charge with monitoring the cooperation with civil society and coordinating the execution of planned measures;
a special information-analytical publication titled Newsletter of the Government was launched for a wider information of public about Government’s activities;
the Government has recently approved the concept of an official website of Moldova and ordered the creation of official websites of public administration authorities;
a draft law on transparency of the decision-making process was elaborated and approved with the support of nongovernmental organisations;
a practical programme on communication between Government, civil society and mass media will be elaborated by late 2006.

Statements on PRO TV case

Asked to comment the situation related to the holding of a manager of the private television PRO TV, Vasile Tarlev assured that he was “monitoring the case” and the inquest “must develop in line with legislation, but the guilty will be punished if any abuses are observed.” The prime minister noted that the justice must tell its word in this case, while “if somebody dared to abuse of authority, he will be put in his place, will be punished for sure. We care very much about Moldova’s image, public order, transparency and development of the democratic state based on the rule of law and we will never tolerate the violation of human rights.”

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