IPN NEWS IN BRIEF: Eurointegration news of October 2 – 8, 2017

IPN on October 2 published an OP-ED article entitled “Mandate of new Head of EU Delegation to Moldova and first major challenge, written by expert in political sciences Dionis Cenusa. According to the author, until the parliamentary elections of 2018, which are expected to end with the extension of the Socialists in Parliament and doubts about the durability of the European course, the new Head of Delegation should confront the political maneuvers of the Democrats. Also, there will be a painful process of communication with the extraparliamentary opposition, which, even if it expressed its satisfaction with the first conversation with Peter Michalko, will react negatively if the macro-financial assistance is ultimately initiated. The closest challenge is related to the macro-financial assistance and its political impact on the political narrative in Chisinau. Thus, the EU could become the target of accusations on the part of pro-governmental media outlets for “penalizing” the government and, simultaneously, depriving the country of vital financial assistance, concluded the politologist.

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Also on October 2, there was published an analysis signed by Valeriu Vasilica, entitled “Why did Plahotiuc go to Erdogan? According to the author of the analysis, the president of the Democratic Party of Moldova (PDM) Vlad Plahotniuc, who is the person with the biggest power of influence in the Republic of Moldova, leaves everything aside and goes to Turkey, even if it had been only two weeks since his right hand, Speaker of Parliament Andrian Candu returned from a three-day visit to Turkey. Most probably the ‘right hand’ went there to pave the way. According to Valeriu Vasilica, there could be two types of problems that can justify Vlad Plahotniuc’s visit to Turkey: own businesses, and urgent state affairs influenced. The analysts who said it is illogical for Vlad Plahotniuc to go to Recep Tayyip Erdogan to seek assistance from him in obtaining the pullout of the Russian troops from the Transnistrian region could be right. Also, Vlad Plahotniuc could have gone to Recep Tayyip Erdogan after money, after not less than €100 million or even €200 million, or as much as it would be needed to fill the gap that would appear in the state budget if the EU does not provide the €100 million in macro-financial assistance. This maneuver could mean a particular kind of pressure on the European Union to make it offer money. Another hypothesis is that the visit could have been made at the request of the development partners for promoting some bigger interests than Moldova’s budget and the fate of some separate Moldovan parties.

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Moldova is much more prepared to attract foreign investment compared with the previous years. The authorities made effort to restore the relations with foreign investors and to persuade them analyze the opportunities in Moldova, Deputy Prime Minister and Minister of Economy Octavian Calmac said in the opening of the Moldova Business Week that was held in Chisinau during October 3-6. According to Octavian Calmac, over 55% of the investments that reach Moldova now come from the EU member states that have investment traditions. This means that the foreign businesspeople see a potential in the Moldovan economy. Head of the EU Delegation to Moldova Peter Michalko noted that the EU, by having signed the Association Agreement that includes the Free Trade Agreement, contributes to the development of the Moldovan business sector. Moldova should continue to do reforms so as to increase the investors’ access to the Moldovan market.

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Before the Eastern Partnership Summit that will take place in Brussels on November 24, the political situation in Moldova was again debated in the European Parliament. EU Commissioner for Humanitarian Aid Christos Stylianides said the EU’s further financing for Moldova will depend on the way in which Chisinau fulfills the commitments that will be undertaken by a memorandum of understanding that is to be signed by the sides. He noted the EU will “closely monitor” the implementation of Moldova’s controversial new electoral law. Christos Stylianides told the European Parliament in Strasbourg on October 3 that suggestions made by the international partners have not been addressed by the new electoral law. “The effect of this law on multiparty democracy will depend on how it is implemented,” said Stylianides, who was speaking on behalf of EU foreign policy chief Federica Mogherini. He added healthy democracy not only depends on good electoral legislation, but also needs an appropriate legal system and a clear fight against corruption.

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After the debates on Moldova held in the European Parliament, the Democratic Party of Moldova (PDM) issued a press release where it notes with satisfaction that Moldova’s progress is recognized, including the economic growth and the efforts to modernize institutions and to adopt the laws needed to implement the Association Agreement with the EU. The party’s press service makes reference to the statements of the EU Commissioner for Humanitarian Aid Christos Stylianides, who said that the partnership between Moldova and the EU is fundamentally aimed at improving people’s lives. The Democratic Party says it is a position that the Democrats fully share. The PDM welcomes the reiteration of the fact that the macro-financial assistance is useful in helping Moldova complete the proposed reforms so as to continue on the European course and to maintain the security climate in the region.

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The criticism leveled at the government of Moldova by MEPs is a shame for the Republic of Moldova. At the same time, this fully coincides with the Moldovans’ perception, said experts invited to a televised talk show. “Owing to the obscure interests of two persons, namely Vladimir Plahotniuc and Igor Dodon, Moldova distances itself from the European course and risks turning into a gray area,” said the deputy head of the Political Party “Platform Dignity and Truth” Alexandru Slusari. Valeriu Ghiletski, of the parliamentary group of the European People’s Party of Moldova, said the MEPs formulated objective criticism, but also purely political opinions.

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The Eastern Partnership countries that were in the vanguard of the movement to the European Union started to be criticized by a rather large number of European politicians, who thus show particular fatigue towards the EaP, political analyst Corneliu Ciurea stated in a TV program. According to the analyst, the political struggle in the European Parliament is between the MEPs of the European People’s Party and the Social-Democratic ones. According to the director of the Resource Center for Human Rights Sergiu Ostaf, the quality of discussions in the European Parliament was much higher than earlier because it covered a lot of subjects and the approaches of the parliamentary groups were very diverse. He noted the positions of the MEPs will yield a solution and this will not be a radical one.

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The government of Moldova should be ashamed of the criticism that was leveled at Moldova by some of the MEPs. At the same time, the statements made by these resulted in no concrete decision on Moldova on the part of the European Parliament, said politicians and experts invited to a televised talk show . “The European Union fears that the Republic of Moldova, which was trusted a lot in 2009-2016, even in advance in particular areas, deviates from particular recommendations,” stated Unaffiliated MP Lilian Carp. Deputy head of the Party “Action and Solidarity” Mihai Popusoi said that harsh criticism was uttered in the European Parliament and the fake pro-Europeanism of the Democratic Party was fully disclosed. Socialist MP Bogdan Tardea noted he agrees with the criticism leveled by the MEPs at the legal system and with the suspension of financing for some programs.

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The internal political struggle in Moldova was exported to the European Parliament, Deputy Speaker Iurie Leanca, who heads the European People’s Party of Moldova, stated in a talk show. According to Iurie Leanca, it is a mistake to impose particular political conditionality elements now in order to obtain financing from the EU. Journalist Anatolie Golea said Moldova, being a small country, creates too many problems to the development partners and it seems that this is done intentionally. The parliamentary elections of 2018 will most probably be held under the mixed electoral system and the proportional representation system will not be restored following requests from the European Parliament.

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The leader of the Party “Action and Solidarity” Maia Sandu said she never requested the European institutions not to finance the Republic of Moldova, but asked to only control the way in which the government spends the money. Speaker of Parliament Andrian Candu, who is the first deputy chairman of the Democratic Party of Moldova, said Maia Sandu placed obstacles on the path of the Government, which aimed to bring particular financing. Such statements were made in a televised debate program. “I asked the development partners to stop the government when it does not do reforms and violates human rights, when the government undermines the democratic system in the Republic of Moldova. Such things happen daily,” replied Maia Sandu. In reply, Andrian Candu said the European Parliament indeed held discussions that included criticism leveled at Moldova, but the country was also commended. The Speaker also said that the current Government is supported by the EU because the effects of the reforms of the pension system, the Government and the economy started to bring benefits such as a 30% rise in state revenues and this money will be used to implement social initiatives and to cover the budget deficit.

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Parliament Speaker Andrian Candu, who is the first deputy chairman of the Democratic Party of Moldova (PDM), said he does not believe that one party will be able to win a majority of seats in Parliament after the 2018 legislative elections. Therefore, the parties will have to sit at a table and negotiate a new government, including with the Party “Action and Solidarity” (PAS). However, the PAS leader Maia Sandu said her party will not form an alliance with the PDM. The issue was discussed in a televised debate program. According to Andrian Candu, since the PDM was founded, it hasn’t formed alliances with parties of the left. It united only with parties of the right. “You have nothing to do with the European values. You will continue to form a coalition with the Socialists together with whom you adopted the law to change the electoral system. We will not form an alliance with you or with the party you represent because you are a danger to the European integration of the Republic of Moldova,” replied the PAS leader.

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The novelties in the neurological sector are considered at the sixth Congress of Neurologists and Neurosurgeons of Moldova that is held in Chisinau on October 2-5. The event, which is organized by the Society of Neurologists of Moldova, brought together specialists from the country and abroad and includes workshops and scientific activities. The congress involves over 250 neurologists and neurosurgeons from Moldova and more than 20 specialists from another ten states. The Congress’ president, academician Stanislav Groppa, university lecturer, said this meeting that gathered national and foreign specialists is an occasion for analyzing the situation in neurology in Moldova and for consulting and engaging foreign specialists in the process of developing the sector. At the same time, the European Academy Days, which are a new project proposed by the Academy, represent an honor for Moldova and also an obligation for national specialists. This event enables to discuss, initiate and continue important projects in healthcare.

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As many as 10,400 tonnes of fresh and dried plums have been exported to the EU by October 1 this year, show data of the National Food Safety Agency. Thus, the plum export quota of 10,000 tonnes was fully used. Compared with last year, Moldova’s plum exports to the EU rose by 40%. To be able to fulfill the contractual obligations towards the European partners, the Moldovan fruit growers asked to increase the export quota on plums. The largest quantities of fresh and dried plums were supplied to Romania (4,240 tonnes), Poland (4,300), Latvia (610) and the Czech Republic (373). Currently, the Moldovan plums are sold in ten EU member states. Plums are exported by 96 companies. A considerable quantity of fruit was exported to Russia – 18,415 tonnes, down 9,000 tonnes compared with last year. For the first time this year, Moldova exported plums to the U.S., Canada, Iraq and other states.

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Italy is the third most important commercial partner of Moldova with a trading volume of about US$ 300 million in the first half of this year. Moldova hosts over 700 companies with Italian capital and the investments made by these companies come to about US$ 90 million. The statistics were presented in the fifth Forum of Italian Companies and Joint Moldovan-Italian Companies that held within the Moldova Business Week. According to Deputy Minister of Economy and Infrastructure Vitalie Iurcu, Moldova banks on Italian investments and will continue its reform agenda so as to attract these. Italy’s Ambassador to Moldova Valeria Biagiotti said the continuous dialogue between institutions and entrepreneurs is fundamental. Italy confirmed that it is a key partner of Moldova. The Italian presence in Moldova should continue to grow and the countries should profit including from the benefits provided by the Association Agreement with the EU in the business sector. EU Ambassador to Moldova Peter Michalko noted that this event is a perfect opportunity for developing the economic and cooperation relations between the two states.

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The Moldova – EU Association Committee will meet in Chisinau on October 19. In this connection, in the meeting of the governmental commission for European integration, Prime Minister Pavel Filip requested the competent authorities to prepare the information that is to be presented there. Pavel Filip underlined the necessity of improving communication between the Moldovan institutions and the European partners so as to make sure that the latter are correctly informing about the done reforms and progress made in implementing the Moldova – EU Association Agreement. The governmental commission for European integration also analyzed the progress made in fulfilling the commitments in the sanitary and phytosanitary sectors. In this connection, Minister of Agriculture, Regional Development and Environment Vasile Bitca said that ten EU acts were transposed to the national legislation in the first nine months of this year and 11 other documents are to be harmonized in the fourth quarter of 2017.

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The Republic of Moldova this year collected into the state budget by 4 billion lei more than last year. Thus, even if the country does not benefit from the €100 million in macro-financial assistance from the EU, the investment projects will continue to be implemented, Prime Minister Pavel Filip stated in a TV program. “We now rectified the budget and did the calculations without taking into account the macro-financial assistance. No investment projects will be affected because we already managed to mobilize and to organize the country’s economy so that the budget revenues grew more than we expected,” stated the Premier.  Pavel Filip noted that there are 30 conditions that should be fulfilled by the Republic of Moldova for obtaining all the three tranches of the macro-financial assistance of €100 million from the European Union. “We admit that we could fail to receive the money this year, but we will get them next year,” he said.

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During 20 years of the signing of the European Convention on Human Rights, Moldova has advanced a lot, but not enough and the implementation of the ECHR’s judgments in cases concerning the Eastern districts of the county, which are not controlled by the constitutional authorities, remains difficult, Speaker of Parliament Andrian Candu said in an event held by the Constitutional Court to celebrate the 20th anniversary. President of the Constitutional Court Tudor Pantiru underlined the importance of joining the Convention, saying this act resulted in incommensurable benefits. The complexity of the efforts made to meet the European standards led to the Constitutional Court’s admission into the ECHR’s Superior Courts Networks and to its election as the holder of the presidency of the Conference of European Constitutional Courts for 2020-2023.

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The preferences of foreigners put the Moldovan fruit into different classes by sorts and geography. The plums and grapes are preferred by the neighboring states, except for the CIS states, such as Romania, Poland, the Czech Republic and Slovakia and now also the states of Western Europe. Apples are exported mainly to the Eastern states, especially the CIS, said the executive director of the Association of Fruit Producers and Exporters “Moldova Fruct” Iurie Fala. According to him, the export market for apples is slightly different because the EU is a key producer and player in the apples sector. The EU turns into a serious competitor and this has an impact on the selling prices. The diversification of the export markets is a challenge for the Moldovan producers because the process implies the adjustment and orientation of fruit exports to a number of destinations. At the same time, the extreme weather conditions and the shortage of labor force are also challenges for the Moldovan fruit exporters and producers. Iurie Fala considers the fruit producers should yet work to diversify export markets. They should learn to trade with more distant states and not be afraid of possible risks because the internationalization of trade in fruit following the chaotic trade through shop chains will bring only benefits.

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For the Republic of Moldova, it is imperative to adopt a new methodology for developing entrepreneurship, namely intelligent specialization, which involves the identification of the advantages of each region and mobilization of the key players around a common view. The intelligent specialization strategies represent a powerful instrument for dealing with social, climatic and energy challenges, such as demographic changes, limited natural resources, energy security and others. The subject was discussed in an international conference of small and medium-sized enterprises that was staged by the Organization for the Development of the Sector of Small and Medium-Sized Enterprises. EU Ambassador to Moldova Peter Michalko said the European Union, as the most important commercial, economic and political partner of the Republic of Moldova, supports initiatives aimed at contributing to the successful development of the business sector and at bringing benefits to the Moldovan citizens by consolidating the SME sector. Moldova pledged to adopt intelligent specialization strategies by 2020, with technical support from the European Commission.

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The Party of Socialists (PSRM), which is a pro-Russian one, gathers together those who are not satisfied around it and will represent a brake in the evolution to the West of the Republic of Moldova, ex-President of Romania Traian Basescu, president of honor of the National Unity Party of Moldova (PUN), stated in a TV program. According to the former President, Moldova has a large anti-European and anti-NATO party, which is the PSRM, and this is its bad luck. As to the EU membership status, Traian Basescu said the Republic of Moldova will not be able to get this status during the next 20 years. He also said that if a successful referendum was held or there was a decision on Romania’s union with the Republic of Moldova, taken by the legislative bodies of Chisinau and Bucharest based on what the population wants, this would not be challenged outside. The perspective of the union is closer than the perspective of European integration.

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Parliament approved the composition of a working group that will think up and will present, within 45 days, the bill to amend and supplement the Constitution so as to include Moldova’s orientation to the European democratic system of values in the supreme law. The subject caused heated debates in Parliament. The Socialists said that by stipulating the European course in the Constitution, there will be legalized an ideology that runs counter to the people’s will. The Socialists didn’t delegate a representative to work on the commission, saying the amendment of the Constitution in this regard is unconstitutional and a referendum should be held for the people to pronounce on the course of the state. The Communists also didn’t field a representative to work on the commission, while the Communist leader Vladimir Voronin said the European integration is the path to the social development of the state and has nothing to do with the legislative norms. The Lib-Dems didn’t propose a representative either given that two amendments suggested by Tudor Deliu haven’t been accepted by Parliament. The Liberals didn’t enter the commission because the Liberal leader Mihai Ghimpu’s idea that the European integration of Moldova can be ensured by the union with Romania, was rejected. The Democrats fielded Sergiu Sarbu and Raisa Apolschii, while the European People’s Party group proposed Eugen Carpov and Mihaela Spataru.

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The introduction of the European course into the Constitution of the Republic of Moldova will divide society according to the geopolitical factor. Such statements were made in a TV program. Political commentator Boris Shapovalov said the initiative to introduce Moldova’s orientation to the European system of democratic values will be delayed until before the campaign prior to the next year’s parliamentary elections and the population will be then divided according to the geopolitical factor. Analyst Victor Ciobanu said that both the current government and an eventual government formed by the Socialists, if these win the 2018 elections, could organize a referendum on the issue. In one case, the people would vote for the European course, while in the other case they would vote for integration into the Eurasian Union. Political analyst Roman Mihaies said that to be able to enter the EU, Moldova will have to hold a referendum.

The summary of news from the IPN series “European Integration” is produced with support from the Hanns Seidel Foundation of Germany and can be further disseminated on condition that the source is indicated.

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