● MONDAY, July 18
EU Council adopts proposal to double export quotas for Moldovan agricultural products
The Council of the EU today adopted a regulation temporarily liberalizing trade in the seven Moldovan agricultural products that are not already fully liberalized: tomatoes, garlic, table grapes, apples, cherries, plums and grape juice. This means that Moldova can at least double its exports of these products - for a period of one year – to the European Union without any tariffs.
Virtually all Moldovan products can already enter the EU tariff-free under the EU-Moldova Deep and Comprehensive Free Trade Area (DCFTA), IPN reports, with reference to RFE/RL’s Moldovan Service.
In absence of modernized tax system, local authorities move in a vicious circle
The local taxes represent only 2.8% of the local budget costs and the local public authorities are in an unfavorable situation compared with the central authorities. Each year, the local taxes decrease as share of the costs of public budgets, said economist Veaceslav Ioniță, expert of the Institute for Development and Social Initiatives “Viitorul”. According to him, if a tax system that does not imply taking annual decisions is not designed, the local authorities will simply move in a vicious circle for fear of taking decisions, IPN reports.
In an event staged by the Coalition for Decentralization, where there was presented a study titled “Modernization of the system of local taxes as a basic instrument for increasing local financial autonomy”, study author Veaceslav Ioniță said the taxes collected by the local authorities have a fixed rate and the mayors annually need to ask the local councils to adjust the tax rates. The local taxes were thought up so that they apply to business entities only and a conflict between mayor’s offices, local councils and businesses appears as a result. The tax basis should be extended so that it covers the people from the community.
● TUESDAY, July 19
Cases of African swine fever reported in Cahul
A case of African swine fever in domestic pigs was confirmed in Zîrnești village of Cahul district. According to the National Food Safety Agency, the samples were examined at the National Reference Laboratory for African swine fever of the Republic of Moldova. The Cahul commission for emergencies convened and agreed a complex plan of measures to fight and prevent African swine fever. Another case was confirmed in a non-professional farm in Zîrnești on July 13.
Azerbaijan and EU launch cooperation in energy sector
The energy map of Europe is being reconfigured. European Commission President Ursula von der Leyen and Azerbaijan’s President Ilham Aliyev on Monday signed a memorandum of understanding on a strategic partnership in the field of energy in Baku, IPN reports, quoting Azertag.
The document stipulates that the EU can offer Azerbaijan purchase schemes on aggregate demand, for example through the EU’s Energy Platform. IPN related that the Republic of Moldova is connected to the EU’s common platform and also to the dialogue with the Azeri side.
Recently, Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, said that the discussions with Azerbaijan continued so as to create the possibility of buying natural gas from this country. “It is important that different Azeri and Romanian energy projects are being considered. The equation also includes the Iasi – Ungheni – Chisinau gas pipeline, which is a Romanian investment in the Republic of Moldova that should be put to good use,” stated the official.
IMF mission to visit Chisinau
An International Monetary Fund (IMF) mission led by Ruben Atoyan will hold discussions with the Moldovan authorities in Chisinau during July 20 – 29, 2022. According to the IMF, the mission will discuss the recent economic developments and outlook, progress in program implementation, and risks facing the economy in the context of the first review under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements.
NAER: Prices of gasoline and diesel fuel declined by 4 lei over a month
The decrease in fuel prices on the international market impacts the retail prices at filling stations in Moldova. The National Agency for Energy Regulation (NAER) said the prices of gasoline and diesel fuel declined by 4 lei over a month, owing to the reduction in the Platts quotations. The Agency, which sets the price ceilings for the main oil products of standard type, noted that the prices of these products during the past 30 days have declined constantly. “After reaching historic highs, of 33.90 lei/liter of gasoline COR 95 and of 32.46 lei/liter of standard diesel fuel, the prices of these products have decreased continuously since the second half of June,” said the Agency.
“Force of Farmers” suggests agriculture development model
The replacement of the method of subsidization in agriculture, extension of the financial support for developing vegetable growing and animal breeding and expansion of the irrigated areas are among the proposals formulated by the Association “Force of Farmers” for modernizing the agricultural sector of Moldova. Members of the Association said that if the government accepts their plan for restructuring agriculture, they are ready to contribute to implementation the stagey. According to a system signed by representatives of the Association, the current agrarian policy is to the advantage of agro-holdings and discourages small and medium-sized farmers. The “Force of Farmers” suggests changing the subsidization method and giving priority to small and medium-sized farmers, considerably increasing the irrigated areas and extending the financial support for the vegetable growing and animal breeding sectors.
European standards in animal waste management to be met within WB-supported project
Animal waste will be processed and transformed into fuel and fertilizers at a waste management center intended for animal by-products that are not intended for human nutrition. The project is supported by the World Bank and, according to the authorities, will ensure the correct management of animal waste without risks to public health or the environment. Currently, the animal waste destruction methods do not comply with the best international practices and imply big risks to public health and the environment. The abattoirs, processing factories, public eating places annually generate about 26,000 tonnes of animal waste.
Bank commissions on card payments made by SMEs to be capped
The commissions charged by commercial banks on payment operations performed by small and medium-sized enterprises (SMEs) by bank cards, regardless of the type of card, could be capped at 0.5%. This is provided in a bill that was proposed for public debates on the platform of the Parliament’s commission on economy, budget and finance. The commission’s head Dumitru Alaiba said this commission that disadvantages small and medium-sized entrepreneurs and discourages them from using contactless payments is the main obstacle to the natural adjustment of card payments. “The problem was acknowledged and it is a good start. We are now making effort to find an optimal solution for everyone,” stated the MP.
● WEDNESDAY, July 20
2022/07/20/15:36/ EU extends budget support for Moldova
The European Union has increased the budget support offered to the Republic of Moldova. Commissioner for Neighborhood and Enlargement, OlivérVárhelyi, announced that the €53 million budget support published in April this year will be increased to €75 million. Together with the €60 million budget support adopted end of last year, this brings the European Union’s total budget support package for Moldova to €135 million since December 2021. This budget support package addresses rising energy costs as well as the severe impact of Russia’s war against Ukraine.
Europeans decrease price offer for Moldovan honey
So far the Republic of Moldova hasn’t exported any honey produced this year, but the previous years exports of newly harvested honey started in June, Vasile Dolghieru, president of the Association of Honey Exporters of the Republic of Moldova, has told IPN. Export stagnates because no agreement on prices could be reached. “The buyers of Moldovan honey from Europe cannot decide the price. They try to increase the price for shop chains, but these chains oppose, arguing the honey is not an essential product, while the purchasing capacity of consumers declined. In general, the demand for money, including Moldovan honey, decreased owing to the situation in Ukraine. Honey is not an essential product. The people buy oil, for example, which is two-three times more expensive. The bread, gas, gasoline, diesel fuel have increased in price and these price rises affected the purchasing power of consumers,” stated Vasile Dolghieru.
Moldovagaz asks consumers to pay overdue bills amounting to 162 million lei
Gas consumers in Moldova owe a total 162.5 million lei in overdue bills to Moldovagaz, from the beginning of this year until June. To prevent disruptions of gas supplies, Moldovagaz asks consumers to pay their overdue bills as soon as possible.
● THURSDAY, July 21
Vladimir Bolea: We will ask to declare state of emergency in agriculture
The Ministry of Agriculture and Food Industry will request the Commission for Exceptional Situations to declare a state of emergency in the agricultural sector. According to Minister Vladimir Bolea, the declaring of a state of emergency is necessary due to this year’s severe drought. The wheat harvest is lower than projected, while the corn harvest was fully compromised, primarily in southern Moldova. The minister said that even if the harvesting process is not yet over, preliminary data show a modest harvest will be obtained this year, compared with last year. Even if the drought compromised a large part of the harvest, there are no preconditions for a food crisis.
Moldova creates normative framework for preventing food loss and waste
The legislative proposal concerning the prevention of food loss and waste was given a first reading by the MPs. The bill regulates the efficient consumption of safe food, including of food products whose use-by date or period of validity is close to expiry. “Approximately one third of all the food products worldwide is wasted or lost and this represents important pressure exerted on natural resources. For the Republic of Moldova, this problem has also a socioeconomic undertone. That’s why we should facilitate the redistribution of the food surplus so that the safe food products could reach those who need them the most,” said Minister of Economy Sergiu Gaibu.
Minimum salary unified in all institutions in Moldova from Sept. 1
The minimum salary was unified for all the institutions of the country as from September 1. Parliament adopted a bill to amend the law on pay grades and the Labor Code after giving it two readings. This way, there will be ensured an equivalent minimum guaranteed salary in any public institution, private company or self-managed entity.
Parliament accepts Octavian Calmîc’s resignation
The legislative body accepted the resignation tendered by Octavian Calmîc, who vacated the post of director of the Administration Board of the National Agency for Energy Regulation (NAER). Octavian Calmîc presented his resignation on July 15, invoking personal reasons.
● FRIDAY, July 22
Amendment on €75m in additional financing signed
The amendment to the Financing Agreement between Moldova and the European Commission concerning the Contract for strengthening the state and building resilience for Moldova to the value of €75 million was signed. Together with the €60 million budget support adopted at the end of last year, this brings the European Union’s total budget support package for Moldova to €135 million since December 2021. According to the Ministry of Finance, the budget support will help the Republic of Moldova to deal with rising energy costs and to support the long-term socioeconomic recovery, energy security and energy transition. In particular, it will help the most vulnerable segments of the population. This support is expected to be delivered in one tranche by the end of the month, following the fulfillment of particular conditions.
SMEs to get grants for modernizing production equipment
The small and medium-sized enterprises will be able to access financial support for the re-equipment of businesses and implementation of energy efficiency measures within a program approved by the Government. The support will be provided by the Ministry of Economy through the agency of the Entrepreneurial Development Agency in non-reimbursable financing equal to 50% of the investment project’s value.
Moto cultivators and tractors to be exempted from import duties
No import duties will be paid on agricultural and forestry tractors and motor cultivators. A decision to this effect was taken by the Government on Friday.
Power quotas for ground-mounted photovoltaic systems to be increased
The power quotas for terrestrial photovoltaic installations will be raised to 120 MW so as to use the sources of renewable energy. A decision to this effect was approved by the Cabinet. There have been filed 144 applications for photovoltaic installations on buildings with the capacity of 111.2 MW and 21 applications for installations with the capacity of 10.56 MW. The interest in Aeolian installations and non-intermittent technologies is now much lower. This way, in order to achieve the value needed for photovoltaic installations, it was decided to reallocate the initial capacities based on non-intermittent generation and biogas, syngas and biomass cogeneration technologies.
● SATURDAY, July 23
Sunflower, corn producers report ‘heavy losses’
Sunflower and corn producers are complaining of “heavy losses” due to the ongoing drought. In areas with little rain lately, yields are expected to be halved compared to last year, and where it has not rained at all in the last three months, mainly in the center and south, nothing will be harvested, Vasile Mârzenco, executive director of the National Farmers’ Federation. “There are sunflower fields from which farmers will not gather anything. There is no point in running a combine in such a field because harvesting costs will outweigh anything they might get from selling the output”, said the FNF executive director.
