Series:Moldova’s Foreign Policy Statewatch

The Republic of Moldova and Ukraine – A Package Approach for the EU or Each with its Own Way?

The Republic of Moldova and Ukraine – A Package Approach for the EU or Each with its Own Way?

Author(s): Veaceslav Berbeca / Language(s): English

Keywords: Moldova EU-Accession; Ukraine EU-Accession;

The Republic of Moldova and Ukraine are two states expressing their desire to join the European Union. The efforts of both states to rally to the European values have often been ambiguous and blurred. As a result, these two countries’ rank is probably, in the category of “lagging behind” states in terms of their chances to join the European Union. Otherwise, both neighboring states possibly represent the last potential candidates to join the European Union. But the date of joining is directly linked to economic and political performances of the Republic of Moldova and Ukraine.

False Economic Transformation of the Republic of Moldova: Why is the Country’s Economy stagnant since 1994?

False Economic Transformation of the Republic of Moldova: Why is the Country’s Economy stagnant since 1994?

Author(s): Viorel Gârbu / Language(s): English

Keywords: Molodva economic stagnation;

Moldova’s Foreign Policy Statewatch represents a series of brief analyses, written by local and foreign experts, dedicated to the most topical subjects related to the foreign policy of Moldova, major developments in the Black Sea Region, cooperation with international organizations and peace building activities in the region. It aims to create a common platform for discussion and to bring together experts, commentators, officials and diplomats who are concerned with the perspectives of European Integration of Moldova. It is also pertaining to offer to Moldova’s diplomats and analysts a valuable tribune for debating the most interesting and controversial points of view that could help Moldova to find its path to EU.

Republic of Moldova and Common Security and Defence Policy of the European Union: Prospects for Cooperation

Republic of Moldova and Common Security and Defence Policy of the European Union: Prospects for Cooperation

Author(s): Eduard Țugui / Language(s): English

On 13th of December 2012, the Prime Minister of Moldova Vlad Filat, and the High Representative of the European Union for Foreign Affairs and Security Policy Catherine Ashton, signed in Brussels signed the Framework Agreement on the participation of the Republic of Moldova in the Europe¬an Union missions of crisis management. The agreement is part of the complex dialogue between the two sides and after its signing the Republic of Moldova will connect to foreign and security policy of the European Union, becoming an active par¬ticipant of the XXI century world and contributing to international security. The increasing role of the European Union in international security management, with the consolidation of security and de¬fense policy and conducting crisis management missions in dif¬ferent regions of the world, together with the Republic of Moldova participation in some of these missions, entitles us to expect the European Union participation in a new peacekeeping formula in the Security Zone in the east of the Republic of Moldova.

Achievements and Cooperation Opportunities between the UN and the Republic of Moldova

Achievements and Cooperation Opportunities between the UN and the Republic of Moldova

Author(s): Veaceslav Berbeca / Language(s): English

The Republic of Moldova participation in the UN is a corner¬stone of the foreign policy of the state. Due to its unique inter¬national character, the United Nations serves as a platform of activity in a wide range of areas, being a forum for debate of global issues. The implications of participation in the UN has an important role for Chisinau because it offers the op¬portunity to reinforce the image and prestige of the Republic of Moldova on the international arena, such as participation in UN peacekeeping operations, promote national interests by our country missions accredited to the UN or by the presence in elective bodies of the United Nations. At the same time, it is worthwhile mentioning the importance of the assistance provided by UN Agencies to solve development issues facing our country. The United Nations Agencies and programs activity aims to support actions promoting democratic reforms, human development and social inclusion or to support central and local authorities of sustainable environmental management.

Corporate Governance in the Banks in the Republic of Moldova under the Impact of the Basel Committee Regulations

Corporate Governance in the Banks in the Republic of Moldova under the Impact of the Basel Committee Regulations

Author(s): Angela Secrieru / Language(s): English

Keywords: financial crisis;

Following the financial crisis started in 2007, in developed countries and at the level of international institutions, consistent efforts are being made to improve corporate governance in banks. Corporate governance (CG) in banks involves the allocation of authority and responsibility, i.e. the way the bank activities and operations are governed by its board and management. The recent adverse events in the banking sector in the Republic of Moldova regarding attempts to change the shareholding structure of banks including hostile takeovers may be partly explained by imperfect mechanisms of CG of the banks in the Republic of Moldova. In this context, is required the development of a consistent concept by the NBM regarding corporate governance in the banks in the Republic of Moldova aligned to BCBS recommendations and bringing banking regulations in compliance with this concept.

Torments of the Foreign Policy of the Republic of Moldova. From Signing the Association Agreement to even not its Initialing - A continuous Demonetization of the Republic of Moldova Foreign Policy Objectives

Torments of the Foreign Policy of the Republic of Moldova. From Signing the Association Agreement to even not its Initialing - A continuous Demonetization of the Republic of Moldova Foreign Policy Objectives

Author(s): Corneliu Ciurea / Language(s): English

The dismissal of the Cabinet of Ministers of the Alliance for European Integration, headed by the Liberal Demo¬cratic Party leader Vlad Filat on 5 March 2013 shrouded in mist the prospects of signing the Association Agree¬ment with the European Union at the summit in Vilnius in November 2013. In fact, we have observed lately a continuous retraction of its own goals by the Ministry of Foreign Affairs of the Republic of Moldova – from the certainty of signing the Association Agreement and its initialing in March, expressed in late 2012 by Vlad Filat and Iurie Leancă, to the for¬mulation of the doubt in mid-February on signing the Association Agreement in Vilnius and the assumption that it will be only ini¬tialed on this date, to the declaration of a state of suspense in the process of signing the Agreement, to not knowing the date of ini¬tialing the Association Agreement and postponement of a series of important diplomatic meetings in Madrid and Hague in March immediately after the fall of Filat Government. Taking into ac¬count the previous failed prediction of Iurie Leancă with regard to obtaining, at the end of 2012, the liberalized visa regime, which almost cost him the Minister office, we may say that the process of European integration of the Republic of Moldova is marked by two major elements - internal political instability and overestima¬tion, by Moldovan diplomats, of the capacity to advance of the Republic of Moldova in the integration process.

Moldova - Criticized by Fule and Encouraged by Rogozin. Quo vadis?

Moldova - Criticized by Fule and Encouraged by Rogozin. Quo vadis?

Author(s): Marian Cepoi / Language(s): English

After the visit and exorbitant performance of the Special Envoy of Russia Dmitry Rogozin in Chisinau, the Moldovan society was awaiting a much stronger support response from the European Union by means of Commissioner Stefan Fule’s visit. He told politicians that Moldova has chances to remain the success story of the Eastern Partnership and the Summit in Vilnius in November will be a success. Although it is the message that the political class in Chisinau was expecting it cannot be compared with the glory blow of Russia on 9 May in Chisinau. Fule’s visit does not clearly emphasize that between Russia and the EU there is a dispute for Moldova but rather gives the impression that the geopolitical choice is ours.

EU – Ukraine Relationship: An uncertain Future

EU – Ukraine Relationship: An uncertain Future

Author(s): Leonid Litră / Language(s): English

Cox & Kwasniewski mission declared that it is unable to persuade the President of Ukraine to eliminate problems that would allow Kiev to sign the Association Agreement with the EU. On November 21, the Ukrainian Rada amended in the final reading the law on parliamentary elections and thus met one of the three key requirements that Kiev committed to solve prior to the summit in Vilnius. The other two requirements are related to amending the legislation that would allow prosecution reform and creating a regulatory framework enabling the detainees (read Yulia Tymoshenko) to go abroad for treatment. Although the mission’s mandate was extended until the day of the summit, in the hope that the Ukrainian leadership will review its position, Kwasniewski already stated that they see their mission completed given the regrettable decision of the government in Kiev on 21 November to stop preparations for signing the Association Agreement. The main official argument to waive signing in Vilnius is avoiding a risky situation for the Ukrainian economy and the need to relaunch relations with Russia. However, it seems that beyond these arguments there is a range of problems that are not found in the official statements.

From Vilnius to Riga: the Republic of Moldova and the Dynamics of the Eastern Partnership

From Vilnius to Riga: the Republic of Moldova and the Dynamics of the Eastern Partnership

Author(s): Eduard Ţugui / Language(s): English

Keywords: Eastern Partnership; Western Balkans;

The Eastern Partnership Summit in Vilnius was the major European diplomatic event in 2013, even though it did not meet all the Euro-integration expectations of the Eastern Partnership countries or European chancelleries. The European officials’ meeting in the capital of Lithuania did not mean ad litteram another Helsinki 1999, with the European Council confirming the importance of the extension process and the beginning of accession negotiations for Romania, Slovakia, Latvia, Bulgaria and Malta. It does not have the significance and prospects of the November 2000Zagreb Summit, when the European Union launched the Stabilization and Association Process in the Western Balkans, but it still brings a new geopolitical reality to the post-Soviet space. The Vilnius Summit emotions are alive in Ukraine, even though the Kiev administration refused to sign the Association Agreement. The new realityis nevertheless important and is a turning point for the Republic of Moldova’s future, which requires equally important steps.

Foreign Policy of the Republic of Moldova in 2013 – The Beginning of European Integration Irreversibility?

Foreign Policy of the Republic of Moldova in 2013 – The Beginning of European Integration Irreversibility?

Author(s): Ion Tăbârţă,Corneliu Ciurea / Language(s): English

The Republic of Moldova’s political life in 2013 can be divided into two distinct periods: The first internally focused period was marked by the political crisis at the beginning of the leading to the second externally focused period beginning at the Eastern Partnership Summit in Vilnius on 28-29 November. The prospect of signing the Association Agreement in Vilnius dominated the internal agenda in the second half of 2013, contributing to the rallying of the Pro-European Coalition and prompted Moldovan diplomacy to act according to the principle of “all-or-nothing”. This approach will be considered successful if Moldova signs the Association Agreement and obtains visa liberalization in 2014. However, it may fail if Russia blocks the country’s association process as happened to Ukraine.

Inertia of European Integration in the Republic of Moldova

Inertia of European Integration in the Republic of Moldova

Author(s): Corneliu Ciurea / Language(s): English

IDIS „Viitorul” has consistently followed the evolution of the public and Moldovan elites’ opinion related to Moldova’s European integration processes. In two bulletins published in 2011 and 2012, “European integration of Moldova – is there still a national consensus?” by Leonid Litra and “Consequences of the disappearance of the national consensus on European integration” by Cornel Ciurea, we drew attention to some bizarre phenomena in the foreign policy promoted by the current government and the public support to these policies: 1) the support of the European idea is continuously decreasing and is paradoxically lower than during the communist governance in 2005 – 2009; 2) the current government promotes European Union association in an unfavorable context (unlike the accession of new states to the EU, which enjoyed full support of the population), which increases the risks associated to the process; 3) the European agenda is promoted under these conditions within a narrow circle of people, gradually becoming a group affair; 4) the criticism of integration processes by the opposition is confusing, focusing more on a Europeanism deficits rather than on the demolition of European idea (the Europeans are accused of failing to promote their own ideas in the fight against corruption, free market and enlargement). All these tendencies make the European integration of the Republic of Moldova increasingly unpopular. At the same time they take place with a grimness and absence of clear alternatives. Public officials prefer to characterize this process as having an irreversible character, but a more accurate term would be an inertial course / coasting, due to the lack of sufficiently strong forces that could obstruct this process.

Political Situation in Gagauzia: The Result of Internal Struggles or External Influence

Political Situation in Gagauzia: The Result of Internal Struggles or External Influence

Author(s): Veaceslav Berbeca / Language(s): English

Two referenda organized in Moldova’s autonomous region of Gagauzia on 2 February provoked heated debate in Moldovan society. At least two elements explain the attention of politicians and political commentators. First, the political elite from Gagauzia insisted, as a political affront to central authorities, on organizing these referendums even if the Court from Comrat declared them illegal. Secondly, the referendums aftermath delivered a severe blow to the Republic of Moldova’s image of the foreign policy course. These actions highlighted that there are contesters of the European integration idea. In this context, politicians and political commentators in Chisinau should answer two major questions: Who is guilty? And then, What has to be done? In this brief analysis we will try to identify the genuine reasons that politicians from the autonomous region held referendums and propose a range of recommendations to mitigate the implications of these events.

How real is the „Ukrainian Revolution”?

How real is the „Ukrainian Revolution”?

Author(s): Leonid Litră / Language(s): English

Keywords: Urkaine revolution; Majdan;

Violent suppression of protests in Ukraine and use of force have triggered a deep crisis involving all important actors in the region and have resulted in 88 deaths and 700 injured. Even if the apex was the flee of Yanukovych, withdrawal of security forces and release of Yulia Tymoshenko, the situation still remains tense because the protestors’ demands were not fulfilled, while Russophile regions are dissatisfied with the recent developments. The escape of Yanukovych does not resolve the problems Ukraine is facing; it simply puts an end to violence. Ukraine teeters on the brink of bankruptcy, with an interim president, without an institutionalized parliamentary majority. Protests that lasted for three months and started once the Government of Azarov refused to sign the Association Agreement with the EU and, subsequently, turned into anti-Yanukovych protests, were a historical event that was proof of the Ukraining nation welding. Protests outcome cannot be deemed a palace coup, since the Parliament voted by constitutional majority the return to 2004 Constitution and, subsequently, the mechanisms of this Constitution were implemented, which provide for the appointment of parliament speaker as interim president, although the procedure was not duly complied with.

Russia and the Territorial Integrity in the Post-Soviet: New Reality, Old Paradigm

Russia and the Territorial Integrity in the Post-Soviet: New Reality, Old Paradigm

Author(s): Octavian Țîcu / Language(s): English

Keywords: Russian neo-imperialism;

Discussioons concerning the revival of the neo-imperial ambitions in the Russian Federation are in stage since the end of “honeymoon” relations between Moscow and West in the mid 1990’s. Belief in an emerging neo-imperial policy is being legitimized by recent actions. A widely recognized stereotype in Russian political thinking, influenced by an awareness of contemporary Russia’s weakness and loss of global power, is “until Russia is leader in its region of the world, it cannot be expected to become a global power.” Thus, self-assertion in the “Near Abroad” has become a substitute for the superpower-status inherited from both the Soviet period and a remoter, pre-revolutionary era.

Moldovan-U.S. Ties in the Context of Chisinau’s European Integration Process: Missed Opportunities and Possibilities for the Future

Moldovan-U.S. Ties in the Context of Chisinau’s European Integration Process: Missed Opportunities and Possibilities for the Future

Author(s): Cristian Cantir / Language(s): English

Since Moldova’s independence, Washington’s diplomacy in Chisinau has followed the same principles applicable to other former USSR members, including rhetorical and material support for the consolidation of democracy, free trade, and territorial integrity. The depth of the relationship has hinged, however, on a complicated interplay between domestic factors, especially in Chisinau, and the relative activism of the three big powers - Washington, Brussels, and Moscow – in the region. In the 1990s, Washington was Moldova’s major connection to the Western world. In the 2000s, the Eastward wave of expansion forced Brussels to develop a clearer foreign policy toward the post-Soviet space. As ties have deepened along that axis, the United States has gradually hitched its foreign policy to the European Union’s efforts in Moldova; Washington and Brussels speak today with a coherent voice in a push to deepen Moldova’s European integration project. U.S.-Moldovan ties are therefore no longer cast in the somewhat vague language of Westernization, but are framed in terms of their relevance for Moldova’s ultimate goal of joining the European Union as a democratic state with a solid market economy and an ability to control its internationally recognized borders. To some extent, this has helped Chisinau because it is now assisted by two major Western powers in what domestic elites have defined as a foreign policy priority.

Comparative Analysis of Electricity Prices in the RM and in the Region (Romania, Ukraine)

Comparative Analysis of Electricity Prices in the RM and in the Region (Romania, Ukraine)

Author(s): Corina Gaibu / Language(s): English

Keywords: energy security;

Energy sector is a strategic field for Republic of Moldova Geopolitical situation in the region, the tension between Ukraine and Russia, impose the acceleration of establishing interconnections with Romania, thus ensuring energy security of Republic of Moldova The contract on electrical energy supply to the RM was negotiated and signed in March. The negotiated price has a major impact on country’s economy and directly affects the whole society. Setting the electricity prices excessively high causes extra pressure on the population’s welfare and the monthly bills people pay; while, high dependency on electricity imports from Ukraine and a single generating facility in Transnistria (Steam Electric Power Station ”Moldoveneasca” owned by RAO UES of the Russian Federation) create an energy security vulnerability. Diversifying electrical energy sources through building a connection with Romania allow attaining an acceptable energy security level.

Increasing the Efficiency of Public Procurement in the Republic of Moldova in the Context of the Deep and Comprehensive Free Trade Agreement

Increasing the Efficiency of Public Procurement in the Republic of Moldova in the Context of the Deep and Comprehensive Free Trade Agreement

Author(s): Angela Secrieru / Language(s): English

Keywords: public procurement;

Public procurement (PP) in the Republic of Moldova is currently facing complex problems, which according to the EBRD assessment (2011) determine a low level of compliance with the institutional framework and a medium level of compliance of PP legal framework of the Republic of Moldova with the European standards. In terms of PP, the most pronounced deficiencies are seen in the pre-tendering phase (low level of compliance), the other two phases (tendering and post-tendering) have a medium compliance.Implementation of the Deep and Comprehensive Free Trade Agreement provisions on PP is both a solution and a prerequisite for overcoming the gaps and obstacles of the PP system in the Republic of Moldova.The main goal is the effective, reciprocal and gradual opening of PP markets of the Republic of Moldova and the European Union. The Republic of Moldova will have to make considerable efforts in three directions: (i) the gradual harmonization of the Republic of Moldova PP legislation with the acquis communautaire on PP; (ii) institutional reform in PP area; (iii) establishing an efficient PP system based on regulatory principles applied in the EU.

The price of the Republic of Moldova Europeanization – Recalibration of Moldovan-Russian Relations

The price of the Republic of Moldova Europeanization – Recalibration of Moldovan-Russian Relations

Author(s): Ion Tăbârţă / Language(s): English

Keywords: between EU and Russia;

The signing of the Association Agreement with the European Union on 27 June 2014 is the Republic of Moldova’s greatest achievement since gaining independence. The signing of this document is a chance for the Republic of Moldova to get out of Europe’s “grey zone” and join the group of civilized countries. The Association Agreement between the Republic of Moldova and the European Union will bring the relations between our state and the EU to a qualitatively new, updated and adjusted level and allow the Republic of Moldova to move past the post-Soviet period.

The Republic of Moldova’s European Integration Process - No Longer Targets Adherence

The Republic of Moldova’s European Integration Process - No Longer Targets Adherence

Author(s): Leonid Litră / Language(s): English

Each year, the IDIS „Viitorul” team analyzes the state of Moldova’s European integration process. In our previous Foreign Policy Statewatch analyses, we ascertained that the European integration is irreversible process, we stated the erosion of the viability of a consensus over the European integration process, we defined the circumstances under which EU’s fatigue towards Moldova1 could arise, and we evaluated and offered recommendations on improving and harmonizing the process. Moldova’s new political configuration provides ground for a short evaluation of the trends in Moldova’s approximation to EU.

Finance and Security: The Republic of Moldova in the Regional Context

Finance and Security: The Republic of Moldova in the Regional Context

Author(s): Eduard Țugui / Language(s): English

The Republic of Moldova and the International Monetary Fund are to negotiate a new loan program, since the international lender of last resort has sent a list of preconditions to Moldovan government, while the rebels fighting against Ukrainian governmental forces have hoisted their flag in the centre of Tiraspol. Ukraine has dug anti-tank trenches along the Transnistrian segment of the Moldovan border and tightened control at all checkpoints, while the Moldovan government provides guarantees for the “bad loans” of the three commercial banks and has to manage what is called a stagflation which combines economic stagnation and high inflation. Finance and security, whose eternal relation has shaped; over time; the international political economy, are very current issues in the Europe of 2015 and they are becoming crucial for the Republic of Moldova as well, where public finances have reached a deadlock and the Tiraspol administration is negotiating from a position of power within the sub-format “1 + 1”.