IPN News Agency presents a picture of the year in different areas in the view of governmental authorities and independent experts. “2018: how it was and how it wasn’t!?” No.10: Finances
Expert of the Watchdog.MD Community Ion Potlog said 2018 in the financial sector leaves a positive impression, but this is only an impression. In reality, it was a year when the state institutions tried to stabilize the financial market, but didn’t hurry to intervene at legal level and took action rather at the regulatory level. The results of the year can be understood and interpreted through the angle of the freezing of the EU macro-financial assistance.
According to the expert, given the constraints that derive from the process of regrouping the banking sector, the real economy was in decline. Neither in 2018, the banking institutions showed capacity and continued to be uninterested in investments. As regards the attraction of foreign investment, the Government didn’t achieve results here. The investors don not hurry to enter a market polarized by personal interests and that is politically volatile.
The Government didn’t manage to channel new resources to the country’s economy, while those attracted through private capital are dubious and inefficient as a financial model, even if they are necessary as public infrastructure elements. Ion Potlog considers the progress wasn’t significantly felt in 2018, despite the effort and success of the new policies pursued by the National Bank of Moldova, which managed to stabilize the financial market with minimum available resources.
The expert noted there are many opportunities for modernizing the financial sector, but the main problem is the absence of enough highly qualified labor force in this field. Moldova’s Government has drawbacks in creating an intelligent and transparent financial environment and focuses only on operational problems.
Ion Potlog said 2019 should come with a full agenda in field of finances and should see not only the working out of development strategies, but also their implementation. Actions should be taken to motivate the banking system to switch over from micro-lending to investments and to diversify the sources of income so that they do not stop to operational taxes and interest on consumption loans. The excess of liquidity should be balanced by investments in the economy, not by inter-banking investments.
The expert also mentioned the necessity of reconfiguring the insurance system and of consolidating this by creating a legal and normative framework for facilitating the appearance and development of private pension funds, of modernizing and strengthening the National Commission for Financial Markets and the Moldova Stock Exchange and of founding an exchange for trading not only in agricultural products.
The priorities of the investment projects should be systemized and these should be disseminated internationally so as to ensure the mobilization of private capital and its attraction for developing Moldova’s economy. The Ministry of Finance is recommended to bring things in order as regards the structure and correctitude of operating the accounts and subaccounts of the treasury, while the Government of Moldova should make effort to regain the development partners’ trust.
Maria Procopciuc, IPN
P.S.: IPN publishes the article without the comment of the secretary general of state at the Ministry of Finance Ion Chicu as this wasn’t provided on the agreed time.
Other materials of the campaign “2018: how it was and how it wasn’t!?”:
IPN News Agency presents a picture of the year in different areas in the view of governmental authorities and independent experts. “2018: how it was and how it wasn’t!?” No. 9: Foreign affairs and European integration
Concept “we are too small” was overcome
Secretary general of state at the Ministry of Foreign Affairs and European Integration Mihail Căpățînă said the foreign agenda was tight and consistent and matched the contemporary challenges, having the strengthening of sovereignty and territorial integrity, promotion of the European integration course and reforms, fight against hybrid threats, extension of the diplomatic and commercial-economic presence, strengthening and extension of cooperation with the development and traditional partners, with the neighboring countries that are our friends among the priorities. “In 2018, the foreign policy was mainly concentrated on the interests of the people of the Republic of Moldova, overcoming the concept that “we are too small” for distinguishing ourselves on the international arena. In the foreign policy sector, in 2018 we laid greater emphasis on the relations of impartiality, equality and mutual respect and prevention of foreign interference in our internal affairs,” stated Mihail Căpățînă.
Among the achievements, he mentioned the UN General Assembly’s resolution on the complete and unconditional withdrawal of the foreign military forces from the territory of the Republic of Moldova, which is one of the most important benchmark documents in this regard, comparable with the Declaration of the Istanbul OSCE Summit of 1999. “I would mention here the securing of the international community’s assistance in promoting the Transnistrian conflict settlement process, the Declaration of the meeting of the OSCE Ministerial Council held in Milan on December 7 and the launch of joint control at Moldovan-Ukrainian border crossing points are conclusive examples,” stated the official.
In 2018, the implementation of the Moldova – EU Association Agreement continued through the agency of the Association Agenda. The meetings of the Governmental Commission for European Integration centered on the progress made in implementing the national action plan for carrying out the Association Agreement, Moldova’s positon in the dialogue with the EU being coordinated and the priorities in the cooperation relations with the EU being identified. The participation in the Eastern Partnership was an important dimension of the European integration policy of Moldova. In 2018, the Republic of Moldova successfully held the presidency of GUAM, managing to develop the functionality of the organization, including by creating GUAM+Japan and GUAM+Canada partnerships.
Efforts were made to consolidate strategic dialogue
Mihail Căpățînă said concerted efforts were made in 2018 to develop the privileged cooperation relations with Romania, to extend the relations with Ukraine and all the EU member states and to consolidate the strategic dialogue with the U.S., to advance the bilateral relations with Canada, the partner states from Eastern Asia, Near East. Simultaneously, effort was made to extend the geographic area of the bilateral relations. There was opened Moldova’s embassy in the United Arab Emirates and steps were taken to open new diplomatic missions in Ireland, India, Argentina and Ghana. The meeting of Moldova’s ambassadors and honorific consuls was held in 2018 after a long period. There was created the Diplomatic Institute under the Ministry of Foreign Affairs.
“In my opinion, the tight agenda of the foreign policy was mainly fulfilled. However, we expected greater progress in implementing the Association Agreement, but we carried out the national action plan in proportion of about 70%. At bilateral level, despite our efforts, we didn’t manage to resume the dialogue with the Russian Federation. In general, I would say that there is always place for the better in any activity.
“We will continue to contribute to the country’s reunification and will make concerted efforts to promote the approaches on regional and international platforms and to ensure a consolidated position of Chisinau within regional and international organizations so that the foreign forces are fully and unconditionally withdrawn from the territory of the Republic of Moldova. We will also continue to support the European integration course of the Republic of Moldova, the Government’s modernization and reform policies by advancing the political dialogue with the institutions of Brussels and the EU states and other partners. We will work to extend Moldova’s presence worldwide so as to attract new investments and to enter new markets.”
Tense relations with Euro-Atlantic partners place Moldova in uncertain zone
Victoria Bucătaru, executive director of the Foreign Policy Association, said 2018 was marked by the deterioration of the Moldova – EU relations owing to democratic backsliding that endangered first of all good governance in the Republic of Moldova. Also, the controversial East-West geopolitics acquired a new dimension, Moldova being the first country that obtained the status of observer at the Eurasian Union. Moldova’s foreign policy cannot be described as constant at the level of institutions or at the level of statements, a major gap being witnessed in the strategic communication inside and outside the country.
According to the expert, after the Chisinau mayoral elections that were preliminarily described as free and fair by international observers were invalidated, the Euro-Atlantic partners started to question the independence of the judiciary, the freedom of expression and the integrity of public institutions. On July 5, 2018, the European Parliament adopted a resolution on the political crisis in Moldova following the invalidation of the local elections in Chisinau, referring also to the lack of progress in investigating the banking fraud, reminding thus of the chain of departures in the EU – Moldova relationship. “A series of resolutions, documents, statements followed and these reaffirmed the EU’s position and the firm decision not to offer macro-financial assistance to Moldova until the country becomes fully involved in the implementation of the Association Agreement. The tense relations between Moldova and the Euro-Atlantic partners place Moldova in an uncertain zone and an isolationist policy is being witnessed,” stated Victoria Bucătaru.
She also said that the rivalry between the Presidential Office with the Government and Parliament is visible not only at internal level, but also at foreign level. The foreign policy course promoted by Igor Dodon is pro-Eastern. He managed to obtain the status of observer at the Eurasian Union for Moldova and this decision generated controversy in Chisinau and confusion in international circles. During two years in office, President Dodon had no meeting with his Romanian counterpart Klaus Iohannis and his Ukrainian counterpart Petro Poroshenko. This is a clear signal that Dodon adopted different approaches to the regional policy.
The inclusion in the UN’s agenda of the withdrawal of the Russian military troops from the Transnistrian region is a success of Moldova’s forgiven policy this year. The resolution adopted by the UN General Assembly in June 2018 and the stipulation of this subject in the final statement of the NATO Summit of July 2018 confirmed the Euro-Atlantic partners’ political assistance in solving the Transnistrian dilemma. “Nevertheless, the main question resides in the practical steps that can be taken to obtain the pullout of the Russian troops and munitions, reconceptualization of the 5+2 format of the talks, where Russia has the status of mediator, and of the peacekeeping mission, and the political will or wish of Chisinau and of the European capitals and Washington,” noted Victoria Bucătaru.
2018 broke all records as to criticism leveled at Moldova
According to political analyst Anatolie Țăranu, the general impression in 2018 of the European integration process can be characterized by such terms as stagnation and regression. The suspension of financing by the EU is the most conclusive example of such a state of affairs in the European integration process. 2018 leaves the impression of the start of the reorientation of Moldova’s development course, from the European one to another one that is not yet very clear. The fact that the abandonment of the European course hasn’t been yet officially announced seems to be the biggest accomplishment.
The year 2018 broke all records as to the criticism leveled at Moldova by the Europeans intuitions over the situation of democratic, justice, fight against corruption and oligarchization of all the spheres of life in Moldova. The incapacity of the pro-European forces of the current Parliament, which generally represented a constitutional majority, to secure the vote needed to enshrine the European integration course in the Constitution seems to be the biggest failure witnessed this year.
“Few indicators characterize 2018 as the period when preconditions were created for a radical change in the process of Europeanizing the Republic of Moldova. Most probably, we will see the accentuation of tendencies of stagnation in the European integration process as a direct result of the parliamentary elections of next year. The creation of a political configuration in the newly elected Parliament, with the influence of the anti-European forces growing, will determine the stagnation and even significant regression of this process. However, the social dissatisfaction will simultaneously grow and will make the ruling class to initiate radical upper reforms, a violent revolution of the dissatisfied masses being an adverse reaction. But the moment when these radical changes will take place cannot be now anticipated exactly,” stated Anatol Țăranu.
Elena Nistor, IPN
Other materials of the campaign “2018: how it was and how it wasn’t!?”:
Agriculture, regional development and environment
Defense
Education
Justice
Transnistrian settlement
Economy and Infrastructure
Health, labor and social protection
Internal affairs
European Integration