Moldova is one step closer towards signing EU Free Trade Agreement

Adopting the Law on Competition and the Law on State Aid is a new step taken by Moldova towards signing the Deep and Comprehensive Free Trade Agreement with the EU. The statement was made by Head of the EU Delegation to Moldova Dirk Schuebel during a press briefing on the occasion of the two new Laws’ publishing in the Official Gazette, reports Info-Prim Neo. Dirk Schuebel communicated that several years ago, when Hungary wanted to become a member state of the EU, there was only one unfinished negotiation chapter, namely that the country had not adopted laws on State aid and competition. “Adopting these Laws was very important, in the context of negotiating the Free Trade Agreement. Another important moment is the enforcement of these Laws. The European Union, which of assistance to Moldova in the process of their elaboration, will continue to offer support towards the adequate enforcement of the Laws”, added the European Ambassador. The Law on Competition stipulates the transformation of the National Agency for the Protection of Competition into the Competition Council. Viorica Carare, head of this institution, communicated that starting 2013, when the Law on State Aid becomes effective, strict monitoring will be ensured. Any kind of aid will be noted by the Competition Council. Otherwise, the aid will be considered illegal and will have to be returned at an interest of up to 5%. The Law on Competition stipulates the notions of “cartel agreement” and “rough cartels”, which are prohibited. Viorica Carare informed that exceptions are possible, and some agreements may be allowed, if businesses prove that these are beneficial for the consumers and the economy. At the same tome, the Law on Competition also stipulates the mandatory notification of the Competition Council if the business sum is larger than 25 million lei. “We took a great step towards European integration, by adopting these two Laws. They will have a major impact over the competitive environment”, stated the head of the Competition Council. The two Laws were published in the Official Gazette in months August and September. The Law on Competition became effective immediately after publication, and the Law on State Aid will become effective in a year, in August 2013. The authors spent about 4 years developing these two Laws.