● MONDAY, May 12
Farmers intend to stage protests if their demands are not satisfied
Farmers’ organizations have announced that they will picket the Government Building if several of their demands are not fulfilled. In a news conference, representatives of the organizations asked publishing the national agriculture development strategy in the Official Gazette in two weeks and approving the changes to the regulations governing the oil market. The farmers intend to stage a protest on May 28. Chairman of the National Farmers Federation Valeriu Cosarciuc said the Government approved the strategy on March 12, but it hasn’t yet come into force. After the approval of the strategy by the executive, the document was to be signed by three ministries, but the Ministry of Economy hasn’t yet put its signature. Such a situation is due to the fact that certain goals are pursued as regards the distribution of the European funds.
Divergence between economies on right and left banks of Nistru widens
The convergence index of the economies from the two banks of the Nistru River continues to decline owing to the modest performance of the Transnistrian economy compared with the economy on the right bank of the Nistru. According to the index calculated by the Independent Analytical Center “Expert-Grup”, the divergence became more prominent following the diminution of the industrial activity by 17.7% in 2013. As a result, exports fell by 15%. According to the publication “Nistrian realities”, the industrial production on the right bank of the Nistru grew by 6.8%, while exports rose by 11%. The lower demand for energy resources and other raw material and the lower final consumption in the region led to a reduction in imports. On the other hand, the given processes were attenuated by certain convergence trends. Thus, the agricultural production in Transnistrian in 2013 increased by 85%, about two times more than on the right bank of the Nistru. The Transnistrian economy remains very vulnerable to different shocks, both internal and external. Transnistria’s gross domestic product in 2013 grew by 2.4%, mainly due to the increase of over 2.3 times in the gross value added in agriculture and the 14.8% increase in the construction sector.
● TUESDAY, May 13
Turkish tomatoes infected with hornworm stooped at customs
Tomato hornworms were identified in a consignment of 19 tonnes of tomatoes imported from Turkey, which was stopped at the customs. Andrei Balan, of the National Food Safety Agency, has told that a part of this batch will be destroyed as the tomatoes are infected. According to Andrei Balan, this insect is not harmful to people, but, if the quality of the imported fruit and vegetables is not monitored attentively, the quality of the fruit and vegetables grown in Moldova will be affected by imported parasites.
Package of actions for enhancing competitiveness of IT sector in Moldova
The Ministry of Information and Communication Technology proposed a package of actions designed to stimulate the development of the IT industry in the Moldova ICT Summit 2014. ICT Minister Pavel Filip said the IT industry is an ecological one and does not need areas, only the people’s knowledge. Moldova has great potential for developing the IT industry. However, it now accounts for only 0.8% of the GDP, as against the 10% contribution of the whole ICT sector. The measures proposed by the ICT Ministry include the creation of virtual industrial parks in Moldova and the introduction of a single tax of 12% or event 10% of the incomes earned from sales for the IT companies that will register as residents of these parks.
Ministers sign national agricultural development strategy
The national agricultural and rural development strategy has been signed by all the ministers. In a meeting on May 13, the final text of the strategy and formulations accepted by the representatives of all the institutions with powers in rural development were agreed. The provisions enabling the Agency for Payments and Intervention in Agriculture to authorize all the payments and to manage all the rural development funds were excluded from the document as they allowed the Agency to take over the relevant duties from the Ministry of Economy, the Ministry of the Environment, the Ministry of Education, the Ministry of Regional Development and Construction, the Ministry of Health and other ministries.
● WEDNESDAY, May 14
Tax of 1.5% on export of walnuts removed
The amendments to the Law on the Walnut by which the tax of 1.5% on the export of walnuts, derivative products and walnut wood was annulled came into force on May 9. Such a legislative initiative was put forward following discussions held by members of the Premier’s Economic Council with representatives of walnut exporters. According to a communiqué of the Government, as a result of these discussions, Prime Minister Iurie Leanca requested the Ministry of Agriculture and Food Industry and the Ministry of Economy to formulate a bill to amend the legislation so that the tax on the export of walnuts is removed.
● THURSDAY, May 15
International conference centering on development of arbitration in Moldova
The international conference “Arbitration in the Republic of Moldova: accomplishments and prospects”, which will take place in Chisinau on May 16, aims to make use of the 20-year experience in the field of arbitration and to identify new opportunities for developing this alternative method of settling arguments, it is said in an interview given by Dumitru Postovan, president of the International Commercial Arbitration Court under the Moldovan Chamber of Trade and Industry, for Radio Moldova. “Until May 1994, when Parliament adopted the Law on Arbitration, any dispute deriving from a contract signed by two economic entities or from civil relations was settled in court if the sides didn’t reach an agreement between them. There was no other way. Arbitration is an alternative and this right to choose and to have an alternative is one of the important human rights,” said Dumitru Postovan, adding that the cases in arbitration are examined much faster and this is an advantage.
Bill proposed by government coalition rejected in Parliament
The legislative body could not exempt the construction company “Glorinal” from paying the debt of about 25 million lei to the state budget. This company performed restoration works at the Curchi Monastery, but neither the state nor the monastery had money to fully pay for the works. A bill that was to safeguard the interests of both of the sides, put forward by a group of MPs of the parties of the government coalition, wasn’t adopted as it was one vote short. The Communist and Liberal MPs didn’t support the bill, saying the government either wants to launder money or to collect funds for the election campaign. Lib-Dem Veaceslav Ionita said that “Glorinal” didn’t sue the monastery over the debt as it considered that this is not right and not according to the Christian faith.
● FRIDAY, May 16
Exports to EU rose to 56% of total exports
Moldova’s exports to the EU member states have increased considerably. In January-March, they came to US$318 million, an increase of 22.5% compared with the first quarter of last year. They accounted for 56.6% of the total exports, as opposed to 41.1% in the same period last year. Exports to the CIS member states in the period represented 31.6% (US$180m), as against 41.8% in January-March 2013. Exports to Italy, Germany, Romania, Bulgaria, Switzerland, Austria, and Kazakhstan grew, but to Russia, Turkey and Hungary declined. Moldova’s exports in the first quarter of this year came to US$573.1 million, down 2.8% on the corresponding period last year. The re-exports represented 37% of the total exports, up 7.4%.
ICT regulator recommends providers to publish more useful information for end-users
The National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) recommends the providers of public electronic communication services to more actively use their websites to fulfill the obligation to inform the end-users about the services they provide. The regulations on the provision of public electronic communication services lay down a series of relevant obligations for the providers. In a communiqué, the ANRCETI says the regulations oblige the providers to furnish free detailed, clear and updated information about the prices and tariffs of the provided services and about the conditions of offering and using these services. The providers must publish the contract with the standard clauses and must make public the hours when the end-users can have meetings to inquire about the services.
Moldova must convince Russia that it has alternatives for trade, German experts
The Moldovan authorities must diplomatically, but insistently explain to Russia that they have alternatives for exporting products and the labor force if it decides to interrupt the commercial relations with Moldova. Moreover, Chisinau must negotiate with the EU quotas on Moldovan migrants as labor force so as to show the Russians that the Moldovan workers have where to go if they are banned from entering Russia and the country will be thus not affected, members of the German Economic Team Moldova (GET Moldova) said in a briefing held in concert with experts of the Independent Analytical Center “Expert-Grup”. GET Moldova head Ricardo Giucci told the Moldovan journalists that Moldova’s economy is open, while its geographical position is beneficial from economic viewpoint. It would be ideal for Moldova to keep the free trade with the countries that intend to form the Customs Union and to start trading freely with the EU after the Association Agreement is signed. The commercial relations with the Eastern markets do not mean a rupture in the commercial relations with the Western markets, either economically or technically.
Chisinau can seek higher quotas on fruit exports to EU, German economist
The Moldovan authorities must request increasing the quantities of Moldovan fruit that will be exported to the EU market after the creation of the Free Trade Area. Expert of the German Economic Team (GET) Moldova Jörg Radeke said that until the signing of the Association Agreement with the EU, the authorities can negotiate export quotas on fruit, especially in the context of the regional situation. The expert made such statements in a briefing held by GET Moldova in concert with experts of the Independent Analytical Center “Expert-Grup”. The economist said the fruit exports will be in danger if Russia decides to break up the commercial relations with Moldova after the ratification of the Association Agreement with the EU. 90% of the Moldovan fruit is now exported to Russia. The quantities of fruit that will be exported to the EU after the Free Trade Area is created do not cover the volumes that are absorbed now by Russia.
Tax Service to be modernized and optimized
Increasing the efficiency of the State Tax Service by ensuring the voluntary compliance of the taxpayers and establishing normal cooperation relations with the economic entities are the objectives set for the immediate future, the head of the Main State Tax Inspectorate Ion Prisacaru said when presenting the results achieved during a year since he was named to this post. According to Ion Prisacaru, the State Tax Service for many years has been an inspection institution that imposes penalties on the taxpayers that do not fulfill the constitutional obligations and avoid paying taxes. Among the modernization measures, he enumerated the simplification of the tax administration procedures, facilitation of the procedure for providing individual tax solutions beforehand, and increasing the range of tax services provided for taxpayers, including electronic services.
● SATURDAY, May 17
Moldova can cope with possible expulsion of migrants from Russia, German experts
Moldova can cope with a possible expulsion of the Moldovan migrants from Russia. Such a decision by Russia would also have benefits, like the return of the labor force home, now that the country is facing a shortage of workforce, economist David Saha, expert of the German Economic Team Moldova, said in a briefing held in concert with experts of the Independent Analytical Center “Expert-Grup”. David Saha said that Moldova is yet among the countries where a part of the GDP is formed by remittances sent by the migrants working abroad. 60% of the remittances or about US$1.5 billion a year come from Russia. If Russia expels a part of the Moldovan workers, remittances will decline by 10% or US$150 million, but the effect on the GDP will not be significant.
