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Activity of the Government on January 1–31, 2007

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Appointments. Reshuffles

Iurie Bucincschi was relieved from the post of senior state adviser in social development matters and assigned to head the social protection directorate of the Chisinau municipality.

Decisions

Decision approving the detailed plan on implementation of the strategy on central public administration reform (CPA) for 2007. It notes the progresses achieved in 2006: functional analysis of 159 central public authorities and bodies and 24 disbanded public services (various authorities have been reorganised or created after analysis; personnel cuts have been operated); the draft law on public service and status of public functionary, draft law on central public administration are being worked out; the fiduciary fund for sustenance of the reform is created. Reservations regarding participation and communication, awareness and promotion of public functionaries, as well as concerning strategic planning capacities, drafting of sectoral policies, use of potential of functional competences were noticed in the process of implementation of the CPA reform. The approved plan contains more than 40 actions for six priority areas of the CPA reform.

Decision approving the action plan on implementation of the Preliminary Country Plan within the U.S. Millennium Challenge Account. The program aims to prevent and combat corruption and stipulates financial assistance in the amount of 24.7 million dollars for this purpose.

Decision approving the national strategy on instruction of public functionaries and local councillors for 2007–2010. The strategy aims among others to strengthen the institutional training capacities and to improve the instruction standards. It contains 28 activities aimed to contribute to implementation of the goals in 2007–2009.

Decision approving the priority action plan on implementation of the Moldova-European Union Action Plan in 2007. The document was not publicly consulted, interested persons and institutions could not debate on included measures and modalities of implementation.

Decision on entrepreneurial patent. The document obliges the State Certification Chamber, the Interior Ministry and the Terminology Centre (of the Moldovan Academy of Sciences) to provide free of charge all services for registration of individual entrepreneurs on basis of entrepreneurial patents held formerly. Ministries, other central administrative authorities and participating institutions will monitor and inform the Ministry of Economy and Commerce every half-year over funds spent to register individual entrepreneurs, while the Government will establish later the mode of coverage of this expenditure. Experts presume that this decision came after protests of patent holders and their refusal to get registered as legal entities that require higher administration expenses, fees and taxes than for patent-based entrepreneurial activities.

Decision on creation of an integrated automatic system for migration. The Interior Ministry as beneficiary jointly with the Ministry of Information Development, the Ministry of Foreign Affairs and European Integration, the Ministry of Economy and Commerce, the Border Guard Service, the Customs Service and the Information and Security Service will create and implement the integrated automatic system in the field of migration (departmental information resource within the basic information resource called state register of population) by September 1, 2007.

Decision on development of network of supermarkets. The Ministry of Economy and Commerce will organise an international contest to select an investor to build a network of supermarkets in Moldova (in 2007–2011). The investment project is estimated at 15 million dollars and this decision is made to modernise the domestic trade, to create jobs and to attract investments in various regions of the country. Observers remark that Moldovan president has earlier asked the Government to work out new strategies on development of domestic trade, in order to make order in this field. At present, the trade is one of the most profitable and dynamic fields of activity, as import of products is permanently developing and this business is a rapidly recoverable investment with low risks, if it is extended.

Decisions approving some draft laws:

Decision on withdrawal of draft law on parties and other social-political organisations from Parliament. This draft was tabled in 2000 and the Parliament adopted it in the first reading. The Government has withdrawn the document in connection with the recent adoption in the first reading of a new draft law on parties tabled by representatives of several parliamentary factions.

Decision on organisation of agricultural census. Farm land, number of fruit trees and vineyards, animals, park of machines, population working in agriculture will be evaluated at the agricultural census (which will begin in 2008). According to preliminary estimates, about 5.5 million euros will be needed to hold the census and this money will be attracted from competent international organisations.

Sittings. Decisions. Statements

Hearing of development reports

A sitting convoked by prime minister has heard reports on preliminary data on economic development of Moldova in 2006. Minister of finance reported that the 2006 budget law was executed with an essential exceeding of planned collections (revenues in the amount of 11.89 billion lei were raised to the state budget, by 173.7 million lei more than the rectified plan). The minister of economy and commerce said that the evolution of economic and social indicators in 2006 confirm the maintenance of macroeconomic stability and gradual improvement of living standards of population (GDP rose by 4.6 percent in January-September and by over 4 percent in 2006, according to forecasts). According to the governor of the National Bank of Moldova (NBM), Leonid Talmaci, the banking system has achieved an essential development (currency reserves of NBM amounted to 775 million dollars in late 2006, assets of commercial banks continued to grow, reaching about 20 billion lei in late 2006). The prime minister demanded a strict control on tasks stipulated by approved programmes, strategies and plans, as well as on fulfilment of commitments toward international partners. He reiterated the need of paying a special attention to attraction of stable and long-term investments in export-oriented sectors of national economy with a high competitiveness potential.

Creation of a centralised system of bus stations

A working sitting chaired by prime minister has discussed the problem of passenger and luggage carriage. Officials of competent ministries noticed an efficient cooperation in the field of development of passenger carriage and its legalisation and underlined that the situation has changed after some measures. However, fiscal evasion schemes and mechanisms still persist inclusively in record and remuneration system (according to data of the Tax Inspectorate, real collections from passenger carriage are 6.5-fold higher than those declared by carriers). The prime minister indicated the need of creating a centralised system of bus stations and opening at least a bus station in every district, and a working group was created to study the situation in the area, the international practice and to propose a concrete action plan. The working group will work out an efficient mechanism to establish technical condition for legal passenger carriage and a mechanism of calculation of travel tariffs.

New concerns with pipe connection prices

The Government has heard a report on delayed elaboration of methodical instructions on implementation of the “mode of formation of prices for projecting and building of natural gas and drinkable water systems.” It was decided that the Government will regulate the formation of prices for projecting and building of natural gas providing systems for population. The decision is motivated by fact that entrepreneurs who execute these works establish exaggerated prices and residents cannot connect their residences to natural gas pipes. According to data of the Agency for Constructions and Territorial Development, the connection of a residence to a gas pipe would really cost about 1,200 lei (approximately 100 dollars), while owners have to pay 10,000–15,000 lei (more than 1,000 dollars).

Revision of agriculture subsidising policy

Prime Minister Vasile Tarlev has attended a meeting with representatives of agro-food sector, which focussed on agriculture subsidising policy of Moldova. According to a report by the Ministry of Agriculture and Food Industry, the 2006 fund for direct subsidising of farmers comprised 220 million lei, while the 2007 fund will include 240 million lei. In 2007, categories of subsidised crops and agricultural activities is expected to be enlarged (granting of subsidies to sustain the development of ecological agro-food production, planting of nut trees, repayment of VAT for purchase of agricultural equipment). Economic agents seek funds for investment activities, in a move to enhance the competitiveness of goods.

Sitting of the Collegial Council of CSECC

Prime minister has told a sitting that the action plan on implementation of the national strategy on prevention and combat of corruption was successful in terms of the struggle against economic-financial crimes. At the same time, many problems must be resolved:

Collegial council of the Ministry of Finance

Hearing reports presented at the sitting, Premier Tarlev highlighted the efficient execution of the 2006 budget law and growth of budgetary revenues over annual plan, asking competent functionaries to give an impulse to collection of budgetary incomes in 2007. Tarlev also underlined:

Collegial council of the Ministry of Justice

Although it was noted that the central apparatus and subdivisions of the Ministry of Justice executes its functions, there are many drawbacks and shortcomings in activity of the ministry:

New concerns with remuneration of budgetary workers

Prime minister has told a sitting held at the initiative of the Confederation of Free Unions Solidaritate that the Government is concerned with the present state of things in the field of remuneration of budgetary workers, especially in education and culture sectors. Hearing proposals by unionists from several areas, the premier urged competent functionaries to study the situation in the field and to table proposals on amendment of the law on pay system in budgetary sector.

Dissatisfactions with assembly of trolleys and tractors

Prime minister has described as unsatisfactory the actions of competent persons, at a working sitting on assembly of trolleys and tractors in Moldova, noting that though the winner of the tender had pledged to launch the production, the proper activities did not begin so far. Vasile Tarlev demanded that the results of the tender be annulled because the contractual conditions were not executed and a new contest be organised to select an investor with potential and real interest for manufacturing trolleys in Moldova. The premier announced severe reprimands for members of the tender commission for the inefficient contest and monitoring of execution of the contract. Tarlev outlined the importance of increasing the production volume of Moldovan tractors, raising concern with slow development of the Tracom plant and demanding the urgent implementation of a business reorganisation plan.

Sitting of the National Commission for European Integration

The first sitting this year totalled the taken actions, with ministers reporting on implementation of the E.U.-Moldova Action Plan. Premier Tarlev warned competent ministries and agencies over need of an active cooperation in implementing the plan. Also, it was noted that all documents related to fulfilment of the European integration tasks will have a special code for priority examination. The Ministry of Local Public Administration will have to mobilise the local authorities to implement some special plans on fulfilment of integration tasks. According to Vasile Tarlev, a special attention will be paid to relations between authorities and civil society and mass media. The premier asked all participating institutions to assist the Ministry of Foreign Affairs and European Integration to promote Moldova’s interests for facilitation of visa regime. He indicated among basic goals for this year the urgent opening of the E.U. Visa Issuance Centre in Chisinau; the awarding of the Asymmetrical Trade Agreement and Association Agreement with the E.U.

December 16–31, 2006 February 1–16, 2007