Moldova develops under the Eastern Partnership
The Eurasia Center/EBC, February 25, 2013
By Alex Plugari, Associate, Eurasia Center/EBC
Despite the fact that Moldovan economy is still developing,its aspirations to merge with European values deserveattention.This nation on the border of the EU and member of Eastern Partnership Project which aims to incorporate European values and respect for human rights into the essence of the Moldovan institutions and its political life gained additional support from EU leaders.
The EU developed Eastern Partnership Project in order to assist developing countries in faster transition to stable and prosperous democratic regimes. The Eastern Partnership Project was presented by the foreign minister of Poland along with Swedish support. It is a project aimed at improving relations with EU’s eastern neighbors,namely six republics of the former Soviet Union: Moldova, Armenia, Azerbaijan, Georgia, Ukraine and Belarus. The EU emphasizes its interest in strategically important region, as its declaration states: “Shared values including democracy, the rule of law and respect for human rights will be at its core, as well as the principles of market economy, sustainable development and good governance. We are interested in developing an increasingly close relationship with its Eastern partners.”
This objective will be implemented through facilitation of visa regime with participating countries (with a perspective of their abolishment), creation of a new free-trade zone embracing the 27 EU states and the six partners with commodities turnover increase and corresponding deals associated with it, strategic partnership agreements, reconstruction of gas pipelines, development of democratic institutions and the rule of law. A financial assistance package in the amount of €600 million is partially providedalready. However an issue of EU membership is postponed until full achievement of corresponding economic conditions. The Obama Administration, with Ms.Clinton in particular, acknowledged strategic importance of this area, praised the idea of the Project along with Poland and expressed their views about the importance of creation a stronger and more secure Europe. Polish President Mr. Komorowski noted that "Poland will assist member states on how to implement the available instruments.”
Since the inception of Eastern Partnership member countries were suggested multiple reforms in different areas of their economies. Their successful implementation somewhat differed and by the middle of 2012 Moldova became a leader among the Eastern Partnership Project member states, gainingadvantage in the European integration process. Such information was presented in the research called “European integration index for Eastern Partnership countries.” The research was made by the experts of member states and analyzes their achievements in different sectors such as market economy, political dialogue, civil society rights, implementation of democratic values and negotiations about creating a free entrepreneurship area with the European Union. Moldovan success was praised by Sweden, France, Belgium and other Western European states several times during 2012 emphasizing precise measures undertaken in order to advance. Thus, Moldova gained a substantial advantage in its reforms progress and received an additional support from the European Union leaders. During a couple of months at the end of 2012 a number of major political figures such as German Chancellor Angela Merkel, Polish President Bronislaw Komorowski and President of the European Commission Jose Manuel Barroso arrived in Moldova expressing their support and belief in Moldovan democratic aspirations. Angela Merkel called for the reforms continuation and closer economic relations with the EU with the perspective of an enormous growth potential. She stated that there are several obstacles related to the slow growing economy for Moldova, as of now, but they should be resolved with further assistance from European institutions.
Jose Manuel Barroso visit seemed to be the busiest and the most productive on ideas and solutions. The EU leader emphasized that his visit was a signal of recognition regarding Moldovan democratic reforms. Barroso told a joint press conference with Moldovan Prime Minister Vlad Filat in Chisinau that Moldova had made significant progress in the negotiations on the Free Trade Agreement and the Visa Liberalization Agreement. Along with the financial assistance of €122 million, Barroso stated that this is the highest level of EU support per capita ever provided to a country in the European neighborhood. The discussion encompassed ideas which are supposed to contribute to significant changes, investments and fostering of Moldovan economic growth. It was emphasized that the main impedimentfor developmentis a low productive base and economic output. European leader paid attention to this stating that “Our common goal today is to help Moldova’s economy to become much more robust and sustainable and to gradually become integrated into the vast common European market, which is the largest market in the world.” Moldovan Prime Minister Vlad Filat on his part discussed multiple suggestions for improvement as well as emphasized other perspective areas for European investments such as free economic zones, industrial parks, alternative energetic sector, and construction and IT technologies for further progress.
The main practical result of European officials and Jose Manuel Barroso precisely was negotiations finalization on Association Agreement with the European Union. This document should be signed at the Eastern Partnership Summit at the end of 2013 in Vilnius and will provide Moldova a status of an associative state. This brings new perspectives for Moldova in expanding its economy growth as Association Agreement is supposed to facilitate European standards adherence for Moldova, visa liberalization regime, agriculture and trade development. Considering the fact that European Union remains primary trading partner and accounts for more than 40% of all Moldovan trade and more than 50% of Foreign Direct Investment it is crucial for Moldova to develop these priorities further. As of now Moldova is already enjoying unlimited and duty free access to the EU market for all products originating in Moldova except for several types of products. On the other hand the partnership with the European Union will allow Moldova to continue growth and development in its agriculture which is traditionally primary source of exports to the European Union and Commonwealth of Independent States. Therefore Moldova should benefit economically and the Eastern Partnership Summit should strengthen Moldovan position in the region.