[Info-Prim Neo report from the series “2011: the way it was and was not”] {“Moldova, closer to the EU?”- the opinion of economic analyst Alexandru Fala} Moldova made some important steps forward in its foreign policy in 2011 by signing agreements and starting negotiations. However, there is significantly less progress in adopting European practices and standards. Things are going hard because of the lack of desire and understanding. This opinion was voiced by political analyst Alexandru Fala. He admitted that the negotiations on the Deep and Comprehensive Free Trade Agreement, set to start in 2012, are an important success. However, he feels things need to be considered from a twofold perspective. Local companies will face harsh competition from European ones. More products will be imported, tariff barriers will be reduced, there will be bigger possibilities for import from abroad, local companies will have to deal with stronger competition and many sectors will be affected by this decision. On the long-term perspective, the DCFTA Agreement will create a framework for the modernization of national economy. Companies will have to adapt to the new conditions and become more competitive and innovative, says the analyst. According to Alexandru Fala, public institutions will need deeper reform for the economy to get more competitive, resistant and adapted to what is happening in the world. “That’s the big plus. During negotiations, we could obtain a period of transition for some sectors. Taxes wouldn’t be totally or immediately annulled for some products. They could gradually decrease during a certain period so that companies had time to adapt”, he explained. Alexandru Fala thinks that the quality of negotiations is more important than their speed. “Usually, negotiations continue for 2-3 years. In Moldova’s case, they will surely take some years, although authorities assure us negotiations will be brief”, said Alexandru Fala. As to how much Moldova got closer to European quality standards, Fala said the process was slow and mainly because of the lack of reforms. “We need a series of internal reforms or otherwise we won’t become better and more competitive. We need will for reforms, but we don’t have it”, he said. According to Fala, as Moldova gets closer to the EU and competition grows, many local companies could be in difficult situations and even hit the skids. “Getting closer to the EU means we will compete with them more intensely and if we aren’t efficient, we’ll lose the competition. Given the circumstances, we have all the reasons to start changing”, he explained. In 2012, everything will depend on the format of government. If the same government remains, the advantage is we will remain closer to the EU. Alexandru Fala is confident that Moldova will achieve success in its European policy in 2012. [Irina Turcanu, Info-Prim Neo]