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Activity of the President on December 1–14, 2003

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Law on the State Budget for Year 2004

President Vladimir Voronin promulgated the Law on the State Budget for Year 2004. It provides for revenues worth 5 billion 647 million Lei (371 million USD), a 20.1% increase as compared to 2003, and expenditures worth 5 billion 307 million Lei (349 million USD), a 20.5% growth as compared to 2003. The 340 million Lei profit (22 million USD) will be used to pay back a portion of the foreign debt worth 76,9 million USD due in 2004. Another portion of the foreign debt is to be repaid, from the revenues expected from the sale of state securities, 180 million Lei, and privatisation.

State budget for 2004 provides for a 5% GDP growth; an inflation rate of 4.5% and an average exchange rate of 15.2 Lei/ 1 USD. It also lowers the income tax from 25% to 22% for natural entities; and to 20% for legal entities.

Assessment of political situation

During a press conference on December 3 President Voronin assessed the current political situation in the country. Voronin reiterated the strategic objectives of the Republic of Moldova, i.e. accession to EU and reintegration of the country. Referring to Transdnistria, President indicated that he would accept any federation model leading to a richer and stronger state. President believes the Memorandum proposed by Russian Federation in November “was based on a real compromise” between the parties to the conflict, and was the first document ever providing for an asymmetric federation. Explaining the reasons why he had not signed the Memorandum, President Voronin stated that it was based on the “spot compromise, which may not lay the grounds for a new Constitution of the future Moldovan state”. Having said that, we could only wonder how “real” a compromise is, if “under no circumstances” may it be used as a starting point?

During the press conference the President also stated that in the near future Chisinau would come up with its own proposition on settling Transdnistrian conflict. Vladimir Voronin pointed that Moldova would insist on such provisions as federal legislative body, delimitation of responsibilities, democratisation of Transdnistria, format of military guarantees under international auspices. This new document would be presented within the pentagonal negotiation format, it also would be handed over to EU. In fact Voronin insisted on “opening an EU office in Chisinau and on inviting Brussels to the negotiation table”, however without changing the current negotiation format.

Vladimir Voronin also indicated that “those who oppose federalisation today, in fact oppose the reunification of the country, they militate for preserving a centre of tension in the region, for a foreign military presence, and are therefore thwarting our accession to EU”. The President also pointed that November 30 protest rallies, which “gathered all opposition forces around Christian Democrats’ flag, around the idea of joining Romania and most importantly against federalisation, which means, giving up the reunification of the country”, was illustrative to the fact that the political centre had disappeared in Moldova, therefore there were only two political forces left Christian Democrats and Communist Party. At the end of his speech President Voronin expressed lingering concerns that the next Parliament might have only one party represented as it happened in Gagauz Yeri, and called for a civilised co-operation with opposition parties and giving them air time during a weekly TV show “Opposition Hour”.

Meeting with Gunter Verheugen

Probably the most important political event in the last two weeks was the official visit paid by the EU Commissioner for Enlargement and Wider Europe, Gunter Verheugen. During his meeting with President Voronin, the Two discussed various aspects of the new EU initiative on its future neighbours. Verheugen stated that EU “regards Republic of Moldova separately from Ukraine, Russia or Belarus”.

Also Verhaugen informed about the European Union’s readiness to work out, jointly with the Moldovan Government, an action plan that would outline measures to be taken in order to bring the Republic of Moldova closer to this prestigious European organisation. In his words, the drafting of such plan, which would incorporate Moldova’s specifics, possibilities and problems, should be completed so as to submit the document to the EU Board before May 2004.

Gunter Verhaugen also indicated that “it’s clear the EU strategy on neighbours opens a clear perspective for eastern European countries taking no part in the enlargement, gives them new hopes and stimuli for a brisker promotion of economic and political reforms”.

Needless to say, Verhaugen’s message was slightly different at his meeting with politicians, public officers, civil society and media representatives. He stated “quite clearly” a slightly different thing “EU new neighbourhood policy is different from the issue of possible accession. /…/ It refers to the countries for which EU membership is not yet on the agenda. However it does not shut the door to the European aspirations any of those countries might have”. We may say this policy is a “window of opportunities” open for an indefinite time, however not for ever, that is why Chisinau would have to hurry up to seize this opportunity.

At the end of the meeting Gunter Verhaugen raised a few eyebrows when stating that it was not in the Republic of Moldova’s best interest to insist on joining the Stabilisation and Association Process, as the policies were initially conceived for Balkan states and did not reflect Moldovan realities. Verhaugen’s message was that new neighbourhood policy provides more efficient mechanisms of co-operation than the Stability Pact for South-Eastern Europe. If that was his personal opinion and not an official position of the European Commission, then we may conclude that one of the reserves European Commission might have with regard to the Conception of EU integration of the Republic of Moldova is its strategic objective, namely obtaining the status of EU associated member by signing the Stabilisation and Association Agreement.

After his meeting with Gunter Verhaugen, President Voronin gathered the chiefs of Moldovan missions abroad and other decision-makers responsible for co-ordinating the efforts of Moldovan public institutions in view of accession to EU. The President briefed them on the objections of the Action Plan and outlined the main task to be carried out, such as: complying with Copenhagen criteria, gradual connection to European policies in various fields; adjusting national law and standards to the European ones. President stated that in order Moldova to become an associated member it is necessary to “involve EU in settling Transdnistrian conflict, implement Poverty Reduction Strategy /…/, boost trade with EU, as well as foreign and domestic investments in Moldovan economy, study and take over Central and Eastern Europe and South-Eastern Europe’s experience in joining EU, complete central government reform by having in mind European integration”.

President Voronin visit to Bosnia and Herzegovina

On December 8–9 President Voronin paid an official visit to Bosnia and Herzegovina. President Voronin met with members of Bosnia and Herzegovina Presidency, Sulejman Tihic, Borislav Paravac and its incumbent President in office Dragan Covic; with the Chair of the Ministerial Council, Adnan Terzic; members of Parliamentary Assembly and Mayor of Sarajevo.

The meeting between the Two Presidents was followed by a plenary session of the two delegations and official signing of Moldovan-Bosnian bilateral agreements.

November 17–30, 2003 December 15, 2003 – January 11, 2004