IPN on July 31 published an OP-ED article entitled “Re-evaluation of Moldova-EU Association Agreement: solution or new uncertainties?”, signed by politologist Dionis Cenusa. The article says the mixed-member electoral system introduced by 74 votes of the MPs of the Democratic Party, together with those of the Party of Socialists, the European People’s Party parliamentary group and other independent MPs surprised the European partners. Both the European institutions and the pan-European parties represented in the European Parliament reacted with surprise and expressed concern. The position of the institutions was rather calm compared with the harsh reaction of the pan-European parties. According to Dionis Cenusa, if by re-evaluation the EPP and ALDE mean the review of the Association Agreement, this can become a source of serious calamities for the European integration of Moldova. The move will be aimed at the Democrats, but the country’s European course could be among the collateral victims. The halt in all kinds of financing by the EU would be a powerful blow to the legitimacy of the Democrats and to the whole reform process, the latter being harmful to the EU’s objectives in Moldova. That’s why the making of the conditionality elements harsher and freezing of the macro-financial assistance should be among the EU’s main options. “Anyway, the introduction of the mixed-member electoral system should be penalized and the EU is obliged to identify optimal methods for providing a proportional answer to the actions of the PDM. However, by these measures the EU should maximize the output of the conditionality and financial assistance. Their thwarting will affect the instruments of influencing reforms in Moldova,” said the expert.

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More than 740 small and medium-sized enterprises (SMEs) managed to advance in developing the business with the assistance offered by the Advice for Small Businesses, EBRD Moldova Project (ASB EBRD). This was possible owing to the access to consultancy services provided by national and international experts and to the financing offered by the European Union within the EU4business initiative and the Government of Sweden. Sweden’s Ambassador to Moldova Signe Burgstaller, together with the team of ASB EBRD, paid a fact-finding visit to northern Moldova to learn about success stories of beneficiaries of such assistance. One of the beneficiaries opened the first poultry-litter-powered biogas plant. ASB EBRD national manager Veronica Arpintin said that with the support of donors ASB EBRD co-finances annually about 70 consultancy projects for Moldovan companies. The beneficiaries of consultancy from ASB EBRD are SMEs that have fewer than 250 employees and up to €50 million in annual turnover. The enterprises must be registered in the Republic of Moldova, be at least 51% privately owned by local nationals and work according to the legislation.

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Deputy Speaker of Parliament, ex-Premier Iurie Leanca said apparently, the Republic of Moldova is seen as a state that does not know what it wants given the dual way of understanding how the presidential institution and the Government should pursue the foreign policy and this is a problem. Confusion is caused in perceptions in this regard, but the perception counts, sometimes even more than the reality, so that this duplication of the Republic of Moldova causes damage to the country’s image and future. Moldova has a parliamentary system of government and the priorities of the domestic and foreign policy in any country with such a system are formulated by Parliament, while the Government puts these priorities into practice. “So, all the instruments in particular are concentrated in the Government’s hands, as it is decided by Parliament, so that these attempts by President Dodon to pose as an important player in the process of designing and pursuing the foreign policy are rather image-related things that have no impact, thank God, on the priority foreign policy objectives,” he stated. As to Igor Dodon’s visit to Teheran and the guests from North Korea who visited Moldova, the Deputy Speaker said the choice made by the President is strange. “It is strange because he is not a novice in state affairs and was earlier minister. First of all, he definitely realizes where the political and financial support for the Republic of Moldova comes from. I don’t think he doesn’t see how the relations between the West - our partners that support us and want us to have a functional state, with people who feel well at home - and the East develop,” stated the ex-Premier.

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Moldova’s exports of goods to the EU came to US$ 542 million in January – May this year, up over 15% compared with the corresponding period last year. They accounted for over 63% of the total exports. Among Moldova’s main export partners are Romania, Italy, Germany, the UK, Bulgaria, Poland, and France. According to the Ministry of Economy and Infrastructure, imports from the EU member states totaled more than US$ 877 million, an increase of over 17% on January-May 2016. They accounted for 49% of the total imports. Moldova imported mainly from Romania, Germany, Italy, and Poland. The export quota on wheat of 75,000 tonnes was exceeded. Wheat exports amounted to 147,000 tonnes, which is an increase of over 196%. There were exported over 8,000 tonnes of processed cereals, up 321% from the quota of 2,500 tonnes. As to the export quotas on fruit set by the EU, in January-July the grape quota of 10,000 tonnes was about 40% used, while the apple quota of 10,000 tonnes was 25% used. No plums have been yet exported to the EU.

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Political expert Ion Tabarta in a TV program said the mixed-member electoral system could create two-partism in Moldova’s Parliament. This way the small, pro-European parties could be marginalized and could obtain only 20-25 seats. The Socialists will win on the political left and the Democratic Party will win on the right. The pro-European parties have chances in the next elections, but should not run by themselves, but in a common bloc and should field a common candidate in each single-mandate constituency. These parties’ chances to get a good result in elections would thus increase.

The summary of news from the IPN series “European Integration” is produced with support from the Hanns Seidel Foundation of Germany and can be further disseminated on condition that the source is indicated.