● MONDAY, May 19

Recent heavy rain endangers crops 

Specialists in plant protection warn that some of the crops risk being affected by diseases and pests following the recent heavy rain. Production will diminish considerably if the diseases that may develop on autumn stalk plant fields are not combated. According to the National Food Safety Agency, the main pests that can attack the cereal crops in the period are the Asian grain beetles that started to grow in number in the second decade of April and the cereal flies, red stalk worms and mites that become more active towards the end of May. The pests can be combated by using homologated insecticides, according to the State Register.

Number of tax returns 22% up 

Subdivisions of the State Tax Service received 157,000 tax returns for 2013 from private individuals, by 35,000 or about 22% more than in 2012. Ion Prisacaru said that according to the preliminary data, the incomes declared for 2013 increased by about 28 billion lei or 7.7% on 2012. The tax returns for last year submitted by March 31 are being processed and the final data will be soon made public. The preliminary data show that the taxpayers’ attitude to their fiscal obligations has changed.

Moldova will face serious problems if it joins Customs Union, experts 

The entry into the Eurasian Customs Union is problematic, especially for the states that are already members of the World Trade Organization (WTO) or seek membership. If Moldova decides to join the Customs Union, it will have to pay higher tariffs for goods and services and will also be penalized by the WTO for taking decisions unilaterally. Such statements were made by members of the German Economic Team Moldova in a press briefing held in Chisinau. |The Team’s head Ricardo Giucci said the Customs Union is only a project that faces constitution-related problems. One of the founding countries - Kazakhstan – wants to become a WTO member and therefore experiences difficulties as it is also to form part of the Customs Union.

Market sellers to be fined 

Fiscal and administrative fines of almost 20,000 lei will be imposed on sellers working at two Chisinau markets for committing trading violations. Tax inspectors carried out over 30 inspections at the market “Calea Basarabiei” and the market situated on Calea Mosilor St, where they identified 23 cases of trading without registering the business at the State Registration Chamber. One trader didn’t have a cash register, it is said in a communiqué of the State Tax Service.

● TUESDAY, May 20

Number of objects protected intellectually at border 13% up 

The Customs Service reported an increase of 13% in the number of objects that are protected intellectually through the border compared with last year. Currently, there are about 500 such objects. According to a communiqué of the Customs Service, 81 cases when the goods were confiscated on suspicion that they were counterfeit were recorded in 2013. A Museum of Counterfeit Goods seized by the Customs Service was opened inside the Training Center for Customs Employees. Measures are taken to strengthen the capacities in the area of protection of intellectual property rights at the border.

● WEDNESDAY, May 21

Measuring in electric power sector cause unjustified costs to consumers 

The normative documents drafted by the National Agency for Energy Regulation (ANRE) cannot solve the problems that appear in the relations between the suppliers and consumers of electric power. Consequently, the end-users sustain unjustified costs, the head of the Association of Electric Power Consumers Nicolae Mogoreanu said in a roundtable meeting staged by the National Metrology Institute on the World Metrology Day. According to Nicolae Mogoreanu, the regulations do not contain clear stipulations regarding the commercial electricity metering points. The points are located at a great distance from the consumers and they cannot control the functionality and consumption rate. The people also do not agree with the way the losses included in the tariff are calculated.

Representatives of 20 countries discuss development of regions in Chisinau 

Officials responsible for regional development from 20 countries have come together in Chisinau for the fourth International Cooperation Conference “Overcoming Regional Disparities”. In the opening of the two-day conference, Minister of Regional Development and Construction Marcel Raducan said that this subject is essential for Moldova because all the regions must benefit from important projects for development. The minister underlined that within working groups the representatives of local public authorities will exchange good practices with counterparts from other countries, as regards the identification and designing of projects in the area of regional development, and will examine models of implementing projects, policies and programs in this field.

Government approves report on 2013 state budget fulfillment 

The incomes collected into the state budget in 2013 came to 22.43 billion lei, up 11.7% on 2012. The fiscal incomes represented 81.7% of the total incomes, the non-fiscal incomes – 3.6%, the special means of public institutions – 2.9%, while the grants - 8.7%. The expenditure last year totaled 23.9 billion lei, an increase of 10.3% on 2012. The social costs made up 39.8%, the economic ones – 18.7%, the costs for national defense, public order and national security – 9.1%, while the expenses of the state service with special destination – 5.8% of the expenditure.

 ● THURSDAY, May 22

IFAD lends US$16m to Moldova within rural program 

The Government approved the financing agreement between Moldova and the International Fund for Agricultural Development for implementing the Inclusive Rural Economic and Climate Resilience Program (IFAD VI), and submitted it to Parliament for ratification. The program is aimed at increasing the climate-resilience of the agricultural production of 6,250 farmers by improving the soil conditions of their lands through introduction of conservation agriculture and land restoration practices and innovative solutions.

Data on state assistance will be systematized electronically 

The Government approved the conception of the automated information system State Assistance Register. The Competition Council and the State Information Resources Center “Registru” will make sure that this system is functional. Such a mechanism for monitoring the state benefit is defined in a law that was adopted on June 15, 2012. The register’s main task will be to systematize the data on state assistance, persons who receive such support, providers and sectors of the economy where such assistance is offered. “Moldova will be the first country covered by the Europeans Neighborhood Policy that will have such a register. It will enable to build a market economy where the state ensures the protection of competition and maintains a normal competition environment,” said the head of the Competition Council Viorica Carare.

Constraints on businesses removed step by step 

Deputy Prime Minister and Minister of Economy Valeriu Lazar in the May 21 meeting of the Government presented information about the measures taken over the last three months to implement the roadmap for removing the constraints on businesses, which was approved last September. The official said the amendments made to the Tax Code partially refer to the VAT and customs tax payment term. The new term is 180 days of the importation of raw materials, accessories, primary packing and articles used to make goods exclusively for export.

State-owned companies will be unable to buy services from troubled banks 

The state-run or municipal companies and enterprises with absolute or majority public capital will be no longer able to purchase financial services from financial-banking institutions whose prudence indicators do not meet the norms laid down by the National Bank of Moldova. “If a bank does not meet the legal norms set by the central bank, but provides financial services, it endangers not only its activity, but also the activity of the economic entity, which can become unable to pay at a certain moment. The goal of the regulations is to protect the financial resources of state-run or municipal companies and commercial organizations with absolute or majority public capital,” said Minister of Finance Anatol Arapu.

Imported tractors exempted from VAT 

No VAT will be imposed on the imported tractors, agricultural machinery and irrigation equipment. The Government approved relevant amendments to the Tax Code. The bill provides that only the producing economic entities will benefit from such a concession. The amendments to the Tax Code by which the VAT exemption for tractors and agricultural machinery was abrogated came into force on April 24. Since then, a lot of economic entities have experienced difficulties. The imported agricultural machinery and tractors stay in customs posts because the producers do not have money to pay VAT on clearance.

Moldova to get €120m from EU for developing agriculture 

The European Union will provide €120 million to Moldova through the European Neighborhood Program for Agriculture and Rural Development (ENPARD) to support agriculture, European Commissioner for Agriculture Dacian Cioloş announced in Chisinau on May 22. The program covers the period between 2014 and 2020. With its help, Moldova will find solutions not to sustain losses within the Association Agreement, in the free trade in agriculture, and to financially support the development of agricultural competitiveness, said the European Commissioner.

Employers want enhanced cooperation with authorities 

The National Employers Confederation of Moldova (CNPM) aims to improve the whole business environment under its umbrella so as to have a say when they negotiate with the authorities, the Confederation’s chairman Leonid Cerescu said in a general meeting of the CNPM held to celebrate four years of activity. Leonid Cerescu said that Prime Minister Iurie Leanca consulted the employers when he formulated his plan of action as Premier, but the Confederation’s intentions to later meet with the head of Government didn’t produce results.

Moldova, Czech Republic to intensify economic relations 

The economic relations between Moldova and the Czech Republic will be strengthened based on an agreement on economic and industrial cooperation between the two states. The accord was signed in Chisinau on May 22. Czech investors are invited to start businesses in Moldova. In a news conference held jointly with Czech President Miloš Zeman, Moldova’s President Nicolae Timofti said they want the economic potential of the two countries to be realized. New cooperation prospects will open when the Free Trade Area with the EU is created. “The Czech companies are welcome to Moldova,” said the head of state, underlining that Moldova needs a clear European prospect in order to continue to successfully implement the initiated reforms and to be able to cope with any challenge.

● FRIDAY, May 23

Free Trade Area with EU means restructuring of Moldovan economy, German expert 

The Free Trade Area with the EU means complete restructuring of Moldova’s economy and is a possibility of ensuring its independence. It does not mean separation from the Russian market. Moldova needs a strong economy to cope with crises, such as Russia’s ban on the import of Moldova wine, Weronika Priesmeyer-Tkocz, program director at the European Academy Berlin, said in the debates “Deep and Comprehensive Free Trade Area: importance, commitments and development prospects for the Republic of Moldova”, which are financed by the Hanns Seidel Foundation and organized by the Institute for Development and Social Initiative “Viitorul”. The German expert said the bans imposed by Russia influence Moldova, which, for this reason, acts more uncertainly in the relations with the EU. Russia can continue to impose bans, but the EU will offer the possibility of establishing closer economic cooperation.

Young people from both banks of Nistru develop business ideas together 

As many as 42 young people from both banks of the Nistru River exchanged experience and established cooperation relations within a conference mounted by the Chamber of Trade and Industry of Moldova, in partnership with AXA Management Consulting, in Tiraspol on May 22-23. The event forms part of a project financed by the European Union and UNDP within the Support to Confidence Building Measures Program that aims to create employment opportunities for young people from the Security Zone and the Transnistrian region.

● SATURDAY,  May 24

 Decision on doubling of quotas on Moldovan products exported to EU will be taken next week 

The quotas on the export of Moldovan fruit and vegetables to the EU are to be doubled before the signing of the Association Agreement between Moldova and the EU. The EU member states will pronounce on this next week, following a relevant proposal submitted by the European Commission. European Commissioner for Agriculture and Rural Development Dacian Cioloş informed about this in a meeting with Moldovan agricultural producers. The Commissioner said that Prime Minister Iurie Leanca a month and a half ago sent a letter to the European Commission, informing that the Moldovan authorities are concerned about the possible imposition by the East of new bans on Moldovan products, including fruit and vegetables, and requested doubling the export quotas set earlier in the Free Trade Agreement of the Association Agreement.

Moldova set import quotas on European products in Association Agreement 

The Republic of Moldova introduced quotas on the European products that will be imported into Moldova. Thus, after the provisions of the Free Trade Area come into force, by up to 4,000 tonnes of pork and chicken will be brought annually into Moldova. European Commissioner for Agriculture and Rural Development Dacian Cioloş spoke about this in a meeting with Moldovan agricultural producers. The EU will also export 1,000 tonnes of dairy products, 1,700 tonnes of processed products, 640 tonnes of candies and 5,400 tonnes of sugar.

Sector methodologies for planning state inspections 

A package including 18 decisions on sector methodologies for planning state inspections at enterprises, based on the analysis of risk criteria, was recently approved by the Government. Deputy Prime Minister and Minister of Economy Valeriu Lazar in an interview said the sector methodologies will optimize the process of selecting companies that will be inspected. The risk criteria will assess the performance of the company and its history – when it started work, if it committed violations. The score and risks will be determined based on these criteria and other data, stated Valeriu Lazar.