Romania inside EU or Moldova closer to EU. Economic commentary by Info-Prim Neo

The green light shown last week to Romania and Bulgaria in what concerns their adherence to the European Union places the Republic of Moldova into a new geopolitical area but also into an economical one, starting on January 1, 2007. Thus, Chisinau will become a regional actor to generate more interest both in political and economical milieu of the European countries. Having a neighbor with whom one has a common frontier, the situation imposes another type of relations than those which are built with a more remote state. Therefore we have reasons to believe that in the next years the effect of both direct and indirect influences of Brussels will be felt on both political and economical levels and, nevertheless at the level of the mental attitude of the population. New Conditions First of all, passing directly to the economical aspect, starting on January 1, 2007 the current status of the commercial-economical relations between the Republic of Moldova and one of its first 10 foreign partners, Romania, will be changed. Sugar producers are already speaking about the fact that they are losing one of the main free trade export markets. That is because Bucharest, at a time with its adherence to the EU, will have to renounce upon all the anterior agreements of preferential trade with its eastern neighbor. And this fact will affect all Moldovan producers (industries), including those involved in wine industry which operate on the Romanian market. At the same time, when entering the Romanian market, they will have to respect some much more severe standards, those of the European Union. This thing, nolens volens, will encourage in the following years, the process of reorganization and modernization of production in the Republic of Moldova, as well as the transition to much more high leveled quality standards and management which would correspond to the rigors imposed by the West. The Government, from its part, having the conditions of the actual commercial-economical blockade imposed by Russia (our main export market at the moment) will have to obtain an asymmetric commercial agreement with the EU, in ideal terms – till the end of this year, and in more realistic terms – till the middle of 2007, which would accord us more favorable conditions for entering the unique European market. Subsidies In another context, Chisinau’s access to the EU subsidies will become much easier and larger in volume than today. Many funds could come from the direct initiative of Brussels, who would wish to have a relatively stable neighbor from both economical and political points of view. Also an important volume of financial support, especially for the modernization and the development of the infrastructure, of the pan-European transportation corridors, could be obtained even at the initiative of Republic of Moldova, this depending on its Executive’s ability to negotiate and persuade. This is why, starting with this moment, the Government should operate a serious audit of projects and sectors with advanced financing needs in order to prepare well and in time the motivation and the solicitation of sources. At the same time R. of Moldova could much easier and more argued solicit the modification of the current collaboration plan with the EU (Partnership Agreement), as well as the transition from the already outdated TACIS Program to other more advanced programs. Investments Much more often and detailed discussions will be held about the eastern periphery from the EU border, a fact which would allow, with the help of some well-thought actions, for the Republic of Moldova to become a tourist destination preferred by both European tourists and investors. “The European migration for production” could find a new final destination in the R. Moldova as well. It is likely for a number of European goods produced in Lohn system in Romania to cross the Moldovan border. Especially for the reason that Moldova offers several advantages: geographic proximity, rather low costs, preferential access to several eastern markets. Thus, if provided a well-coordinated policy aimed at engrossing foreign investments and promoting structural reforms, Moldova would have fair chances to double its European investments in several years. Mental Attitudes The fast-moving political, social and economic changes Romania will undergo could generate important movements in the R. Moldova too. Compared with other EU countries, we have a more advanced flow of information with Romania, and this could change outlooks for many Moldovans. At the same time, besides illegal employees working in the EU, Moldova will obtain a new vast category of population – Moldovans with Romanian citizenship, meaning EU citizens. More to the point, Bucharest claims it will keep a preferential regime for Moldovan citizens willing to enter Romania and will preserve its educational projects (scholarships in pre-higher, higher and postgraduate education for Moldovans). Therefore, all this mass of citizens – having their viewpoints changed, with their own experience of the EU, following Romanian studies and bearing EU citizenship – will create a new mental attitude and will condition the Government to act more firmly in changing the Moldovan society and its adjustment to the European standards.