“The Association Agreement will lead to Moldova’s loss of sovereignty”, “The Association Agreement will further enflame Russia-Moldova relations”, “Consumer prices will increase as a result of the Deep and Comprehensive Free Trade Area”. These are only some of the most spread hypotheses about the Association Agreement with the European Union. Are they true theories or just myths? IPN aimed to find out the answer from a number of independent experts and officials working in the addressed areas.
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"Only businesses will benefit from the DCFTA, not the Moldovan people"
Expert of the Institute for Development and Social Initiative “Viitorul” Tatiana Lariushin said this is a myth because any economy represents a connection between the state, the business community and the citizens. There is no economy that would not involve the population and safe economic growth does not exist if society encounters economic difficulties.
Practice shows that all the states of the world, without exception, that assumed responsibility for implementing new economy functioning standards, as Moldova did, initially experienced a particular shock that undoubtedly affected not only the business community and the state, but also the citizens. The task is to shorten this shock. “The states that switched to new market functioning parameters, in the context of the European integration process, benefitted from this process,” stated the expert.
Tatiana Lariushin gave the example of Slovakia, which 20 years ago had the GDP per capita similar to that of Ukraine (it should be noted that Slovakia’s population is smaller than that of Ukraine). Today, after Slovakia became an EU member (in 2004), the GDP per capita in this country is 7.8 times higher than in Ukraine. This was possible owing to investments, export markets, modernization of the state institutions and the modification of the economic development paradigm.
No government that initiates such reforms, like the implementation of the standards of the DCFTA, aims to make people’s lives more difficult. On the contrary, the government will have to make a lot of effort to explain to the people what they intend to do and what benefits the people will enjoy. The transfer of company working standards will impose an absolutely new corporate policy and an increased social responsibility level, stated Tatiana Lariushin.
On its website, the Delegation of the European Union to Moldova says the export companies will indeed probably be among the immediate beneficiaries of the Association Agreement. But citizens at large will also immediately benefit from the Agreement, since imported goods from the EU will be cheaper. In the medium to longer term, the Agreement will boost investment and lead to the creation of new companies and the modernization of several sectors of the economy, through reforms with which the EU will assist Moldova. Food safety standards and consumer goods will also be safer for Moldovan citizens. Jobs will be created thanks to an expected increase in investment in Moldova, which should have a positive impact on salaries as well. Finally, citizens and businesses alike will benefit from more transparency in rule-making and will have the ability to enquire about any matter related to the implementation of the Agreement with the Moldovan authorities.
Alina Marin, IPN
