Europaudvalget 2021-22
EUU Alm.del Bilag 579
Offentligt
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Council of the
European Union
Brussels, 17 June 2022
(OR. en)
10322/22
ELARG 47
COEST 466
COVER NOTE
From:
date of receipt:
To:
No. Cion doc.:
Subject:
Secretary-General of the European Commission, signed by Ms Martine
DEPREZ, Director
17 June 2022
General Secretariat of the Council
COM(2022) 406 final
COMMUNICATION FROM THE COMMISSION
Commission Opinion on the Republic of Moldova’s application for
membership of the European Union
Delegations will find attached document COM(2022) 406 final.
Encl.: COM(2022) 406 final
10322/22
RELEX.4
GL/sb
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EUROPEAN
COMMISSION
Brussels, 17.6.2022
COM(2022) 406 final
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT, THE EUROPEAN COUNCIL AND THE COUNCIL
Commission Opinion on the Republic of Moldova’s application for membership of the
European Union
EN
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A. INTRODUCTION
In the past two years, the Republic of Moldova (hereinafter Moldova) has taken a decisive
step towards reforms, with a clear mandate from its citizens. Following the 2020 presidential
and 2021 parliamentary elections, there is a clear alignment of the presidential, executive and
legislative powers on a pro-reform, anti-corruption European path for the first time since
independence. This follows a period where the independence of key institutions was seriously
compromised.
The Russian war of aggression against Ukraine is having serious effects on Moldova. In a real
spirit of solidarity and upholding European values, Moldova is actively supporting those
fleeing Ukraine, hosting the highest number of refugees
per capita.
Despite this challenge, the
Moldovan government is strongly committed to delivering on its clear reform goals
notably
as regards judicial reform, public administration reform and the modernisation of the
economy
to benefit the people of Moldova. Recent Eurobarometer survey results show
increased support for EU integration and that the EU is the most trusted foreign organisation.
a) Application for membership
On 3 March 2022, the Republic of Moldova presented its application for membership of the
European Union. The application was tabled in the context of Russia’s war of aggression
against Ukraine. On 7 March, the Council of the European Union invited the Commission to
submit its Opinion on the application. EU Heads of State and Government endorsed this
decision at the informal leaders’ meeting in Versailles
1
. Moldova received questionnaires on
11 April 2022 (on the political and economic criteria) and on 19 April (on the EU
acquis
chapters) and provided its replies on 22 April and on 12 May, respectively.
Article 49 of the Treaty on European Union states that
‘Any European State which respects
the values referred to in Article 2 and is committed to promoting them may apply to become a
member of the Union. The European Parliament and national Parliaments shall be notified of
this application. The applicant State shall address its application to the Council, which shall
act unanimously after consulting the Commission and after receiving the consent of the
European Parliament, which shall act by a majority of its component members. The
conditions of eligibility agreed
upon by the European Council shall be taken into account’.
Article 2 of the Treaty on European Union states that
‘the Union is founded on the values of
respect for human dignity, freedom, democracy, equality, the rule of law and respect for
human rights, including the rights of persons belonging to minorities. These values are
common to the Member States in a society in which pluralism, non-discrimination, tolerance,
justice, solidarity and equality between women and men prevail’.
This is the legal framework within which the Commission submits the present Opinion.
In June 1993, in Copenhagen, the European Council concluded that:
‘Accession will take place as soon as a country is able to assume the obligations of
membership by satisfying the economic and political conditions required.
Membership requires:
-
that the candidate country has achieved stability of institutions guaranteeing
democracy, the rule of law, human rights and respect for and protection of minorities;
1
20220311-versailles-declaration-en.pdf (europa.eu)
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-
-
the existence of a functioning market economy, as well as the capacity to cope with
competitive pressure and market forces within the Union;
the ability to take on the obligations of membership including adherence to the aims of
political, economic and monetary
union’.
In December 1995, in Madrid, the European Council referred to the need
‘to create the
conditions for the gradual, harmonious integration of [the applicant] countries, particularly
through the development of the market economy, the adjustment of their administrative
structures and the creation of a stable economic and monetary environment’.
In December 2006, the European Council agreed that
‘the enlargement strategy based on
consolidation, conditionality and communication, combined with the EU's capacity to
integrate new members, forms the basis for a renewed consensus on enlargement’.
In this Opinion, the Commission assesses Moldova’s application on the basis of its capacity to
meet the criteria set by the European Council in Copenhagen in 1993, as well as in Madrid in
1995, notably regarding the country’s administrative capacity. The Opinion
also takes into
account Moldova’s efforts in implementing its obligations under the Association Agreement
(AA) including a Deep and Comprehensive Free Trade Area (DCFTA). The Commission will
assess the impact of Moldova’s accession on the EU policy
areas at a later stage.
b) Relations between the European Union and Moldova
EU-Moldova relations date back to the independence of Moldova in August 1991. In
November 1994 a Partnership and Cooperation Agreement was signed which entered into
force in July 1998. Political and economic cooperation was enhanced with the beginning of
negotiations on an Association Agreement in 2010.
The Association Agreement, including a Deep and Comprehensive Free Trade Area, was
signed in June 2014
2
and fully entered into force on 1 July 2016. This agreement is the key
bilateral legal instrument serving as the basis for deepening political ties, stronger economic
linkages, promotion of common values and enhanced cooperation in areas of mutual interest.
In its preamble, the EU acknowledged the European aspirations and European choice of
Moldova, including its commitment to building a deep and sustainable democracy and a
market economy. Based on the AA/DCFTA, Moldova has carried out a number of
challenging reforms and successfully aligned its legislation with the EU in many areas. The
EU-Moldova Civil Society Platform (CSP) is one of the bodies set up under the Association
Agreement. It enables civil society organisations on both sides to monitor the implementation
process and prepare recommendations to the relevant authorities.
The subsequent Association Agendas agreed between the EU and Moldova establish clear
priorities in order to implement the Association Agreement and its DCFTA. Adoption of the
Association Agenda (2021-27), which focuses on democracy, human rights and good
governance; freedom, security and justice; and economic, trade and sectoral cooperation, is
imminent.
The EU remains fully committed to support a comprehensive, peaceful and sustainable
settlement of the Transnistrian conflict, based on the sovereignty and territorial integrity of
the Republic of Moldova in its internationally recognised borders, with a special status for
Transnistria.
2
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:22014A0830(01)&from=EN
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The EU’s commitment to supporting Moldova is long-standing
and has delivered results. The
EU provides significant financial assistance, which over the years 2014-2021 amounted to
EUR 512 million in grants under the European Neighbourhood Instrument, and EUR 160
million under the Macro-Financial Assistance programme in the form of loans and grants to
support socio-economic development. The EU provides its support through policy
development and comprehensive reforms, with strong involvement from Member States in a
Team Europe spirit. Among the key programmes are support for pre-vetting of judges and
prosecutors, support to increase Moldova’s energy security, and a team of High Level
Advisers to the Moldovan government in areas of particular importance.
EUR 7 million from the European Peace Facility have been allocated in 2021- to strengthen
the capacities of the military medical service and engineering battalion.
Since the energy crisis in autumn 2021, threatening security of supply and tripling energy
prices, and the beginning of Russia’s war of aggression against Ukraine, the EU has stepped
up its support for Moldova’s overall economic, social and financial resilience,
with
emergency macro-financial assistance worth EUR 150 million and EUR 60 million in budget
support in response to the energy crisis. The EU provided humanitarian assistance to help
Moldova to face the flow of refugees from Ukraine. The Economic and Investment Plan for
the Eastern Partnership
3
seeks to unlock EUR 3.4 billion in public and private investments for
economic development of the country, including tailored flagship investments.
The EU and other financial institutions work hand in hand to assist Moldova. Since 2014, the
European Investment Bank and the European Bank for Reconstruction and Development have
allocated EUR 425 million and EUR 777 million respectively in loans. The EU is also
working in close cooperation with the World Bank and the International Monetary Fund,
which have been key partners supporting Moldovan reform efforts since 2014.
Citizens of Moldova benefit from visa-free travel to the Schengen area since April 2014. A
Readmission Agreement entered into force in January 2018.
Moldova is a contracting Party to the Energy Community Treaty and the Agreement on the
Common Aviation Area, and a member of the Central European Free Trade Agreement, all of
which assist in approximating Moldovan legislation to EU
acquis.
Moldova is a member of
the United Nations, the Council of Europe, and the Organization for Security and Co-
operation in Europe (OSCE).
Since 2014, Moldova has progressively extended its participation in EU programmes. It
currently takes part in Horizon Europe, and organisations and individuals from Moldova can
also benefit from certain actions of the Erasmus+ and European Solidarity Corps
Programmes. There are regular Ministerial level dialogues between Moldova and the EU on
Trade, Energy and Security. Moldova participates in several Interreg programmes and is a
member of the EU macro-regional Strategy for the Danube region.
Moldova has concluded working arrangements, cooperation agreements or memoranda of
understanding with a number of EU agencies such as the European Border and Coast Guard
Agency (Frontex); the European Union Aviation Safety Agency (EASA); the European Union
Agency for Railways (ERA), the European Union Agency for Criminal Justice Cooperation
(EUROJUST); the European Fisheries Control Agency (EFCA), the European Agency for
Safety and Health at Work (EU-OSHA), the European Environment Agency (EEA), the
European Food Safety Authority (EFSA), the European Centre for Disease Prevention and
3
SWD(2021) 186 final
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Control (ECDC), the European Union Agency for Law Enforcement Training (CEPOL), the
European Training Foundation (ETF), the European Monitoring Centre for Drugs and Drug
Addiction (EMCDDA), the European Union Intellectual Property Office (EUIPO), the
European Police Office (Europol), and the European Maritime Safety Agency (EMSA).
Moldova is a participant in the Eastern Partnership (EaP). The EaP is based on the principle
of inclusivity and differentiation. Russia’s war in Ukraine has shown that multilateral
cooperation and cohesion is now more important than ever, as is strengthening the resilience
of the region. A focus on bilateral relations will also be important going forward, to allow
Moldova to implement key reforms including in the field of governance, justice and rule of
law.
B. CRITERIA FOR MEMBERSHIP
1. POLITICAL CRITERIA
This assessment is based on the Copenhagen criteria relating to the stability of institutions
guaranteeing democracy, the rule of law, human rights and respect for and protection of
minorities.
1.1. Democracy
As established by its Constitution, Moldova is a
parliamentary democracy:
legislative
powers are exercised by the parliament and executive powers by the government. The
President of the Republic
has a mostly representative function but holds formal
responsibility for foreign policy and provides civilian oversight of the armed forces.
Executive power is exercised by the Government, consisting of a Prime Minister and 15
ministers.
The
Constitution
guarantees the fundamental principles of a democratic state, including the
rule of law, free elections and the protection of human rights. The Constitution enshrines the
principle of primacy of international law over domestic law. The
Constitutional Court
was
recomposed in 2019 and is now independent. The Supreme Court is the highest court of
general jurisdiction, while the Constitutional Court exercises constitutional jurisdiction.
The
Parliament
is the sole body of legislative power adopting legislation, including
amendments to the Constitution, and exercises democratic control and oversight over the
executive. The Parliament’s oversight function and control over the government and its
scrutiny of legislative development (including monitoring the implementation of legislation)
are limited by the capacity of parliamentary institutions. More must be done to ensure the
transparency of funding of political parties.
The Constitution gives citizens the ability to choose their government in free and fair periodic
elections held by secret ballot and based on universal and equal suffrage. While the latest
rounds of parliamentary
elections
in July 2021 were, according to the Office for Democratic
Institutions and Human Rights (ODIHR), well administered and competitive and fundamental
freedoms were largely respected, several further recommendations by ODIHR remain to be
addressed in areas such as effective campaign finance oversight, political bias of news outlets
and the impartiality of the Central Election Committee.
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The use of urgent procedures to pass legislation, including in areas relevant to the EU
acquis,
has fallen considerably over the past four years. Comprehensive impact assessments of
proposed legislation are needed.
The Constitution guarantees freedom of assembly and association and a 2020 law on non-
commercial organisations simplifies registration and eliminates registration fees and
restrictions on membership. A Strategy and Action Plan for
Civil Society
Development are in
place. Civil society organisations
have the capacity to be important partners in the country’s
development. Setting up a systematic public consultation procedure would enable them to
make a more meaningful contribution to the reform process.
1.2. Public administration reform
Moldova’s
strategic framework for public administration reform
(PAR) is based on the
2016-2020 PAR strategy (extended to 2022). The legal framework and the civil service
system are mostly in line with European public administration principles and European
standards and practices. The PAR strategy aims to guarantee quality, stability, neutrality and
continuity of public administration and to ensure transparent merit-based recruitment,
promotion and dismissal procedures. A new PAR strategy is in development. Further efforts
are needed to ensure adequate administrative capacity to develop, implement and enforce
legislation.
On
service delivery,
the government’s Action Plan for 2021-2022
contains key objectives,
result/outcome indicators and priority actions in the field of good governance and digital
transformation policy, dedicated to modernising public administrative services, increasing the
quality and accessibility of public services provided to citizens and businesses, and extending
and improving electronic services provided to citizens and entrepreneurs. A more citizen-
oriented administration is a key government priority and a common strategic vision for
digitalisation and e-Government has been developed.
The Government remains committed to the implementation of the
Public Finance
Management
(PFM) Strategy (2013-2020), which has been extended to the end of 2022. The
authorities have made some progress on PFM reforms. The Ministry of Finance has continued
to improve the medium-term budgetary framework process and transparency and strengthened
the regulatory framework for financial management and internal control. The legislature and
supreme audit institution provide oversight of the budget process. The Government is
working to make further improvements in a number of areas, including transparency, public
investment planning and execution, accounting standards, internal control and audit,
governance of state-owned enterprises, public procurement and e-procurement, and involving
civil society in the budgetary processes. The preparation and implementation of a new PFM
strategy is expected following the next Public Expenditure and Financial Accountability
(PEFA) assessment.
With respect to
multi-level governance,
the decentralisation process has been evolving since
2012. The revised roadmap for local and regional democracy is expected to give new impetus
to this process. Against this background, territorial reform needs to empower local authorities
with sustainable finances that deliver services to citizens. In December 1994, the Parliament
of the Republic of Moldova adopted the "Law on the Special Legal Status of Gagauzia",
establishing Gagauzia as an autonomous territorial unit of Moldova.
Improving the
public service and human resources management
has not yet achieved the
desired impact of building a professional and merit-based civil service, due to political
instability and lack of political will impacting reforms. Attracting and retaining professional
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civil servants is an ongoing challenge, and crucial to build administrative capacity to fulfil the
functions of the state and deliver quality services. Moldova is working on a civil service
salary reform to make public service more attractive.
The institutions and the legal framework for
policy development and coordination
are in
place. Quality of policy making needs to be further improved through proper processes and
implementation of the law. Strengthened coordination should focus more on substance and
less on formal, procedural issues, and the use of inclusive and evidence-based policy and
legislative development strengthened, including public and inter-ministerial consultations on
legislative proposals.
In order to ensure coherent
accountability
lines and governance, there is a need to update the
legal framework, and to focus on proper implementation, with clear structures that define
supervisory and subordinated bodies. The government supports reform of managerial
accountability and a systematic delegation of responsibilities. Civil society organisations
continue to call for increased transparency in decision-making in parliament and other public
authorities.
1.3. Rule of law
Since the 2014 banking fraud Moldova has undertaken a major overhaul of both its justice
and anticorruption systems. In recent years, Moldova has strengthened the rule of law,
including police reform and steps towards reforming the judiciary. More needs to be done to
address the influence of vested interests in both the political and commercial spheres.
a) Judiciary
Since 2009, Moldova has undergone a series of judicial reforms aimed at strengthening the
independence, efficiency, and effectiveness of the judiciary. Justice reforms are a priority for
the current government. Moldova has recently adopted a comprehensive Strategy for Ensuring
the Independence and Integrity of the Justice Sector 2022-2025 and a corresponding Action
Plan. The constitutional and legal framework for the judiciary is largely in line with European
standards. Law enforcement and judicial structures have been consolidated.
The Superior Council of Magistracy (the High Judicial Council) and the Superior Council of
Prosecutors (the High Prosecutorial Council) are responsible for the self-government of the
judiciary. The constitutional and legislative framework in principle guarantee the
independence of the judiciary and its impartiality. In practice, the integrity, independence and
accountability of the judiciary need to be significantly improved.
Constitutional amendments regarding the functioning of the judiciary entered into force in
April 2022. The amendments significantly improve the legal framework concerning the
independence, accountability, and efficiency of the judiciary and judicial administration, in
accordance with recommendations from the Council of Europe. In particular, the amendments
bring the composition of the Superior Council of Magistracy in line with European standards
by excluding
ex-officio
membership and revising the appointment process of Superior Council
of Magistracy lay members. This strengthens the role of the President in the appointment of
judges, regulating the functional immunity of judges at the constitutional level, and changing
the appointment procedure of judges of the Supreme Court of Justice to reduce the risk of
politicisation.
In March 2022, the law on pre-vetting of candidates to judicial and prosecutorial councils was
adopted. The law foresees an assessment of the integrity of future members of the Superior
Council of Magistracy, of the Superior Council of Prosecutors and their specialised bodies by
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an Evaluation Committee composed of three national and three international members. This
aims to increase the integrity of the self-administration bodies of judges and prosecutors, as
well as enhance the confidence of society in their activity and the justice system as a whole.
Recommendations of the Venice Commission were mainly implemented. The Evaluation
Committee is set to complete the first stage of evaluation by July 2022.
Codes of ethics for judges and prosecutors are in place, as well as an integrated case
management system with automated allocation of cases. The appointment of judges and
prosecutors is still not entirely based on objective criteria. Undue internal and external
interference on the judiciary needs to be tackled. Vacancies in the Superior Council of
Magistracy, and in its specialised bodies, have not been filled by the General Assembly of
Judges, leaving the Superior Council of Magistracy without the necessary quorum to appoint
new judges for two years. The reform of this institution is ongoing and is a political priority.
The number of judges (16.4) per 100 000 inhabitants is lower than the European average (21)
and the number of prosecutors (24.2) is double the European average (12).
In terms of efficiency, disposition time in civil and commercial litigious cases increased to
171 days in 2020, compared to 143 days in 2018. The clearance rate decreased to 97 % (107
% in 2018). The disposition time remains a major concern. The backlog for pending court
cases amounts to 22 299 and 3 330 cases for the first and second instances, respectively
4
.. The
2020 budget for the judiciary system is 0.40 % of GDP, which is less than 2018 (0.48 % of
GDP). In 2020, EUR 21.3 million was allocated to courts and EUR 17.4 million to the
prosecutors’
office. The budget is insufficient to cover training and investment needs, since
85 % is spent on salaries and compensation.
The full functional independence of the Prosecution Service needs to be strengthened, as well
as the efficiency of the General Prosecutors Office. Decisions affecting management and
leadership of the Moldovan Prosecution Service are at times politically motivated, such as the
removal, (temporary) replacement and arrest of the Anti-corruption Prosecutor in 2021.
b) Fight against corruption
Combating and preventing corruption is high on the reform agenda of the Moldovan
government. Moldova has increased the annual budget of its anti-corruption institutions
including the National Integrity Authority, the Criminal Asset Recovery Agency and the
Financial Investigation Unit. Corruption remains a serious concern that requires continued
attention as it imposes significant costs on the state budget, businesses and the population,
discourages domestic and foreign investment and undermines the rule of law.
The main
policy document
for preventing corruption and increasing integrity is the National
Integrity and Anti-Corruption Strategy for 2017-2023. The Strategy includes actions
regarding recovery of criminal assets, protecting whistle-blowers, strengthening ethics and
integrity in the public, private and non-governmental sectors, ensuring transparency of public
institutions and of political party financing and media.
Moldova is a party to all key international anti-corruption conventions, including the Council
of Europe’s Group of States against Corruption (GRECO) and the United Nations Convention
against Corruption (UNCAC). A comprehensive
legal framework
on both preventing and
combatting corruption, largely complying with European and international standards, is in
place and partly implemented. All forms of corruption are criminalised, including illicit
enrichment, and the laws regulate conflict of interests and protect whistle-blowers.
4
As reported by the Council of Europe European Commission for the Efficiency of Justice.
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Specialised
anti-corruption institutions
have been established and are operating
the
National Anticorruption Centre (NAC), with the Criminal Asset Recovery Agency (CARA)
as an autonomous subdivision, the Anti-corruption Prosecutor Office (APO) and the National
Integrity Agency (NIA). These institutions have comprehensive mandates in line with
international standards and increasingly operate independently, with interagency co-
ordination and required resources partly in place. Further efforts are needed to clarify the
mandates of these institutions and strengthen the effectiveness of the National Anticorruption
Centre and the National Integrity Agency.
Progress is needed to bring corruption cases to court and prosecute them effectively. The
investigation of petty corruption cases remains within the competences of National
Anticorruption Centre and Anti-corruption Prosecutor Office. This means that it has not been
possible for these institutions to focus on high-level corruption cases. More needs to be done
to effectively verify asset declarations and secure asset recovery. Some recommendations
from international and regional anti-corruption monitoring mechanisms, including from the
Council of Europe’s Group of States against Corruption (GRECO), are outstanding. On the
preventive side, the National Integrity Agency is responsible for verifying declared assets
submitted by persons holding public positions and applying the legal regime relating to
conflicts of interest. The National Anticorruption Centre has been corruption-proofing draft
legislation since 2017, with around 50% of recommendations accepted (mostly related to
ambiguities or gaps in drafting or administrative procedures).
There has been little progress in investigating the 2014 banking fraud and bringing those
responsible to justice. Efforts against bank fraud should be strengthened by updating the
criminal asset recovery strategy and setting up a new asset recovery mechanism.
c) Organised crime
Moldova has signed and ratified the United Nations Convention against Transnational
Organised Crime, as well as its protocols on Trafficking in Persons and on Smuggling of
Migrants. The Criminal Procedure Code outlines investigative and criminal pursuit activities.
Moldova concluded a working arrangement with the European Union Agency for Law
Enforcement Training (CEPOL), an operational and strategic agreement with the European
Union's law enforcement Agency (Europol) and a Memorandum of Understanding with the
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA). Moldova
participates in the European Multidisciplinary Platform Against Criminal Threats (EMPACT).
The country is a member of Interpol.
Anti-money laundering legislation partially reflects the Financial Action Task Force (FATF)
standards and relevant international legislation, but there are still outstanding
recommendations from MONEYVAL. Putting in place a comprehensive framework for the
fight against financial crime and money laundering, and ensuring its effective
implementation, are crucial to address the significant risks they pose.
Moldova is located at an important crossroads for smuggling of persons and illegal
goods(including drugs and arms) to the EU. Moldova is a source, transit and destination for
trafficking in human beings, in particular for sexual exploitation and forced labour, although
there have been few convictions of perpetrators. The General Police Inspectorate tackles
organised crime, however conviction rates for organised crime are not available. The
Inspectorate has one central and two regional departments (National Investigation
Inspectorates) responsible for the entire spectrum.
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In many cases, further significant efforts to investigate wider organised crime networks are
needed.
1.4. Fundamental rights
a)
International framework
Moldova has ratified the main international human rights instruments, including the Council
of Europe Convention on preventing and combating violence against women and domestic
violence (Istanbul Convention), the European Charter for Regional or Minority Languages,
the European Convention on the Exercise of Children’s Rights, and the European Convention
on Human Rights (although it has not ratified the Additional Protocol no. 12). The country
has ratified the UN Convention on the Rights of the Child and two of the Optional Protocols
but not the third (on a communications procedure), or the Optional Protocol to the UN
Convention on the Rights of Persons with Disabilities.
b)
Legal and institutional setup
The legal and institutional framework regulating fundamental rights is in place and laws
generally follow European and international standards. The capacity of the institutions in
charge of protection and enforcement of human rights and the implementation of existing
strategies and action plans remains limited and impedes the effective enforcement of human
rights. In particular, the National Council to prevent discrimination and ensure equality is
seriously understaffed.
Moldova adopted a new Human Rights and Democracy Strategy for 2021-2024. Key
priorities are
gender equality/women’s rights, respect for human rights in the criminal justice
system, guaranteeing the integrity of electoral processes, and supporting independent media,
access to information, and the fight against disinformation.
The National Prevention Mechanism consists of seven members, including the
Ombudsperson, the Ombudsperson for children and five persons proposed by civil society.
The Ombudsperson institution
– the People’s Advocate
is designated as the National
Human Rights Institution and
accredited with “A” status by Global Alliance of National
Human Rights Institutions as largely complying with the Paris Principles. Its financial and
functional independence should be strengthened and its role
in the context of Moldova’s
Council for the Prevention of Torture clarified.
c)
Key fundamental rights issues
The country has 18 judgements of the European Court of Human Rights under enhanced
supervision procedure pending their enforcement. These include ill-treatment by state agents,
illegal deprivation of liberty, violations of the right to a fair trial, authorities' failure to provide
protection from domestic violence and discrimination on grounds of sexual orientation.
More needs to be done concerning the
right to fair trial and the adequate investigation and
prosecutions of acts of ill treatment.
People deprived of their liberty do not enjoy all the
fundamental legal safeguards from the outset of their detention. The inadequate investigation
of alleged cases of ill-treatment leads to a sentiment of impunity. Conditions in places of
detention and pre-trial detention
remain below international standards, notably due to
overcrowding of prison facilities, lack of effective medical service or use of lengthy solitary
confinement as a disciplinary measure.
The legislation on access to information and
freedom of expression
is largely in line with
international standards, but more needs to be done to ensure the full implementation of the
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law.
Media
can generally report freely. To guarantee media pluralism, the
concentration
of
media ownership and non-transparent media financing need to be tackled. Further efforts are
also needed to ensure access to information of public interest, safeguard the independence of
journalists and quality of media content (and disinformation), along with addressing the
increasing cases of verbal assault, intimidation and harassment of journalists.
The equality principle is enshrined in the Constitution. The Criminal Code guarantees
protection against
discrimination and hate crimes.
The Equality Council does not have an
adequate mandate within existing equality legislation. In April 2022, the parliament adopted
amendments to the Criminal Code and the Contravention Code to enhance
the state’s
response to hate crimes. Long-pending legislation on hate crime has been recently adopted
leading to a widening of the scope of protected grounds and thus to the strengthening of the
legal framework to prosecute and punish bias-motivated crimes. More needs to be done to
tackle hate speech and discrimination based on sexual orientation and gender identity, as well
as
gender-based violence.
Regarding
equality of women
in the labour market, the legal framework no longer prohibits
access to certain professions but women continue to face
de facto
obstacles and age-based
discrimination.
Moldova’s gender pay-gap
persists with women overall earning 14.1% less
than men on average in 2019 (the same as the EU average), and 39.6% of parliamentarians
elected in 2021 are women (above the EU average). More needs to be done to protect the
rights of lesbian, gay, bisexual, transgender, intersex or queer (LGBTIQ) persons. The law
prohibits employment discrimination based on sexual orientation, but societal discrimination
continues. The process of de-institutionalisation of
children
has much advanced over recent
years. More needs to be done regarding infant mortality, child labour, including links to
trafficking and sexual exploitation, and the particular situation of Roma children and children
left behind by their parents. The number of babies and children with disabilities in
institutional care facilities is a concern.
2. ECONOMIC CRITERIA
This assessment is made on the basis of the Copenhagen criteria related to the existence of a
functioning market economy, as well as the capacity to cope with the competitive pressure
and market forces within the Union.
2.1. Functioning market economy
Moldova is a small open economy with a Gross Domestic Product (GDP)
per capita
in terms
of purchasing power parity (PPP) of around 30% of the EU average in 2020, up from 25% in
2013. Overall, Moldova demonstrates a satisfactory track record in carrying out broadly
sound macroeconomic policies. However, the lack of political will and frequent changes of
government have sometimes made reform implementation uneven and delayed the
transformation into a competitive market economy.
During the last decade, Moldova has been able to sustain economic growth at about 4.5% per
year on average and weather several economic crises, including the pandemic. Public finances
have been stable, with a low deficit, at about 1.5% of GDP on average over 2013-2020, and a
sustainable debt level (about 32% of GDP in 2021, most of which is with International
Financial Institutions on concessional terms). This reflects Moldova’s efforts towards
increased fiscal policy consolidation and improved public finance management, fostered by
the 2013-2020 PFM Strategy.
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Prior to the global inflationary pressures fuelled by Russia’s war of aggression against
neighbouring Ukraine, the National Bank of Moldova had been generally successful in
keeping inflation within the target range set at 5% (+/- 1.5 percentage points), while the
exchange rate regime of managed floating, supported a stable national currency. As a result of
rapidly growing energy and food prices, surging inflation, at 22% by the end of Q1 2022,
stands among the key challenges to Moldova’s
macroeconomic stability going forward, in
addition to the cost of housing and the high inflow of war refugees. On the external side,
imbalances have been relatively large, with the current account deficit at 7.3% of GDP on
average during the past ten years, owing largely to a substantial trade deficit. The latter has
been driven by strong domestic demand bolstered by large remittances, unfavourable terms of
trade and a relatively weak export base. However, thanks to substantial support from
international partners, Moldova was able to considerably build up its foreign exchange
buffers. Moldova is also traditionally heavily dependent on the inflow of remittances, with the
current war against Ukraine impacting negatively on revenues from Russia and the
Commonwealth of Independent States (CIS) region.
The current government has inherited a legacy of corruption, vested interests and weak
institutions responsible for rule of law, which hampers investment and productivity growth
and continues to undermine the business climate. The government has therefore launched a
reform of its justice system and is taking significant steps to tackle corruption, while ongoing
regulatory reforms aim to reduce red-tape.
Moldova’s State-Owned
Enterprises (SOEs) sector remains large, comprising of about 900
companies, and still requiring government support. State influence remains important in key
sectors of the economy, including in telecom, energy and transport. Overall, SOEs own assets
worth about 26% of GDP and employ around 6% of the active labour force. The sector
continues to suffer from a lack of adequate corporate governance practices, inefficiency and
poor oversight. This further undermines private sector investment and economy-wide
competitiveness and poses fiscal risks. Further reforms, especially, concerning better
corporate governance, reorganisation, privatisation and liquidation of non-viable companies
are needed and among the government priorities. In addition, informal sector remains
relatively large, accounting for an estimated 27% of GDP in 2020. High levels of informality
partly result from a heavy regulatory burden and imply not only substantial losses of budget
revenues but also lower productivity.
Moldova’s financial sector has undergone significant reforms,
especially following a major
bank fraud in 2014, amounting to the equivalent of 12% of GDP. Since then, the key systemic
banks have been restructured, with the majority of shares sold to transparent international
shareholders. At present, the banking sector seems well capitalised, with all banks meeting the
capital adequacy ratio, and a substantial fall in the share of non-performing loans in recent
years. Thanks to successful banking sector reforms, access to finance, in particular for small
and medium sized enterprises (SMEs), has improved recently. However, financial
intermediation remains low, with the share of loans extended to the private sector at 20% of
GDP on average between 2017 and 2021. In addition, overall progress on the recovery of the
stolen assets and legal proceedings as regards the 2014 bank fraud have been slow and non-
transparent.
The labour market features significant structural weaknesses, as reflected by the very low
employment rate of around 49% in 2020. This is partly due to the substantial share of
informal employment, in particular in the agricultural sector and construction. There is also a
mismatch between skills and job requirements. Although unemployment among university
graduates remains, on average, lower than for those with only a secondary education degree,
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some graduates continue to struggle with finding jobs matching their qualifications.
Employment services and labour market programmes are hampered by limited funding, while
the creation of good quality jobs is held back by insufficient private and foreign investment in
higher value-added sectors.
2.2. Ability to cope with the competitive pressure and market forces of the EU
Moldova suffers from low skills level and match due to the low quality of education and a
significant emigration of qualified workers. Although investment in education, has been
relatively high at 5.7% of GDP during 2019-2022, Moldova scores below the OECD average
according to the PISA results, ranking 51
st
out of 78 countries. Yet, it is still relatively better
than other countries in the region, and with progress noted over the years. Vocational training
has improved, with a new form of dual education being currently implemented to bridge the
gap between education institutions and the private sector.
Moldova’s physical infrastructure remains relatively underdeveloped, despite important
support from international partners and significant investment by the government, albeit from
a low starting point. Gross fixed capital formation accelerated in recent years and amounted to
around 25% of GDP in 2020. At the same time, the total stock of FDI is low at about 25% of
GDP, reflecting weaknesses in the business environment and continuing problems with
corruption and property rights. The energy sector suffers from key structural weaknesses,
uncovered following the gas crisis that began in October 2021. Moldova is fully dependent on
the supply of gas from Russia and has no storage capacity on its territory, making it extremely
vulnerable vis-à-vis the supplier. The electricity market suffers from similar issues, with little
diversification of energy resources and underdeveloped infrastructure. Unbundling the energy
utilities is therefore among the key priorities in the future, and Moldova is working closely
with the EU to that effect.
The Moldovan economy is not very diversified and remains heavily reliant on the agricultural
sector, which makes it less productive and particularly vulnerable to climate conditions.
Agriculture
accounts for about 12% of Moldova’s official GDP (according to 2021 data) and
the informal subsistence agriculture represents another estimated 11% of GDP. The
manufacturing sector remains relatively weak, with its share of GDP decreasing from 15.4%
in 2016 to 12.4% in 2021. However, the IT sector has seen a noticeable expansion, especially
since the pandemic, albeit starting from a low level and this is reflected in its growing
contribution to GDP growth. Moldova’s alignment with the EU electronic communication
legal framework is limited.
Moldova’s economy is closely integrated with that of the EU. Economic links between the
two have been further strengthened since the entry into force of the DCFTA. The EU is
Moldova’s biggest trading partner, accounting for
a share of about 66% of its total exports,
well above its regional peers, and around 45% of its total imports in 2021. Food and
agricultural products and other commodities make up for almost half of Moldova’s exports,
pointing to its feeble export structure and need to move up the global value chains. Moldova
is a WTO member since 2001, with a largely open trade policy.
3. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP
The ability of Moldova to assume the obligations of membership has been evaluated based on
the following indicators:
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-
-
The commitments in the Association Agreement including the Deep and
Comprehensive Free Trade Area (AA/DCFTA) and their implementation;
The level of adoption, implementation and enforcement of the
acquis
outside the
AA/DCFTA.
The EU-Moldova Association Agreement, including the Deep and Comprehensive Free Trade
Area (AA/DCFTA) belongs to a new generation of ambitious association agreements the EU
has concluded with its partner countries. The Agreement captures a substantial part of the EU
acquis
with a detailed timetable of implementation varying from 3 to 7 years and brings the
country closer to the European Union in terms of regulatory alignment.
Since the provisional entry into force of the AA/DCFTA in 2014, EU Member States are
closely involved in its implementation through the Association Council and the Association
Committee. Common Positions are adopted for the Association Council and a detailed
Annotated Agenda is agreed for the Association Committee. Strategic guidance is provided
by the Association Council meetings at the highest political level. Furthermore, the EU-
Moldova Parliamentary Association Committee involves the European Parliament and the
Moldovan Parliament in the implementation of the agreement. The discussions are informed
by the input provided by the civil society through the EU
Moldova Civil Society Platform
and duly taken into account.
The institutional setup includes Association Committee and Association Committee in Trade
Configuration, dedicated Sub-Committees and Cluster Sub-Committees covering almost all
chapters of the EU
acquis
that allows for ongoing and thorough analysis of the progress in the
relationship. The EU and Moldova have worked closely together to identify key policy areas,
set targets for reform and legislative progress, and benchmark achievements in those areas.
The regularly updated Association Agendas set out the short and medium term policy
objectives of EU-Moldova cooperation.
Moldova’s implementation of the EU
acquis
is documented in the EU’s ‘Association
Implementation Reports’
5
issued regularly since 2017. A full examination of all EU
acquis
chapters will be carried out at a later stage.
Following the adoption of the revised enlargement methodology
6
and for the purpose of the
EU’s Enlargement policy, the EU
acquis
is structured around six thematic clusters. The EU
acquis
in these clusters is substantially covered by the AA/DFCTA and Moldova has
gradually approximated with it. Moldova has a satisfactory track record of implementation,
though progress is uneven and delays in meeting the ambitious times lines in the AA/DCFTA
have been frequent. Pending the full examination of all chapters, the below analysis provides
examples of chapters in the clusters where Moldova has achieved particularly good results
and highlights areas where there has been limited approximation to the EU
acquis.
The
Fundamentals cluster
includes the chapters of the
acquis
on
Judiciary & fundamental
rights, Justice, freedom and security, Public procurement, Statistics, and Financial control.
This cluster has already been assessed under the Political and Economic criteria sections.
There are areas in the cluster where approximation to the EU
acquis
is still limited, for
example in
Judiciary and fundamental rights
and
Justice, freedom and security.
5
6
SWD(2021) 295 final
COM (2020) 57 final.
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The
Internal market cluster
includes the chapters of the
acquis
on
Free movement of goods,
Free movement for workers, Right of establishment and freedom to provide services, Free
movement of capital, Company law, Intellectual property law, Competition policy, Financial
services, and Consumer and health protection.
Moldova has achieved particularly good
results in the
free movement of goods
where it has made substantial efforts to align with EU
standards, to remove technical barriers to trade.
There are other areas in the cluster where approximation to the EU
acquis
is still limited, for
example, the area on
Competition Policy.
The AA/DCFTA sets ambitious goals in the domain
of State aid and competition. Moldova’s competition and State aid legislation is largely based
on the EU
acquis
on antitrust and mergers. There is a need to further strengthen effective
mechanisms of market monitoring, surveillance and enforcement.
The
Competitiveness and inclusive growth cluster
includes the chapters of the
acquis
on
Information society and media, Taxation, Economic and monetary policy, Social policy and
employment, Enterprise and industrial policy, Science and research, Education and culture,
and Customs union.
Moldova has achieved particularly good results in the area of
customs,
with new legislation to counter smuggling and import tax evasion, and to increase customs
investigations and agreed with the EU a Mutual Recognition of Authorised Economic
Operators programmes. The new Customs Code that will enter into force in 2023 is aligned
with the Union Customs Code, with a few exceptions.
Moldova’s association to Horizon
Europe is a successful instrument for integration with the EU’s practices in the field of
research and innovation.
There are other areas in the cluster where approximation to the EU
acquis
is still limited, for
example in
social policy and employment.
The
Green agenda and sustainable connectivity cluster
includes the chapters of the
acquis
on
Transport policy, Energy, Trans-European networks, and Environment and climate
change.
Moldova achieved particularly good results in the area of
TEN-T networks.
The TEN-
T network was extended to Moldova in 2019 with the identification of 17 priority projects
with an investment of EUR 917 million. Over 62% of the priority kilometres in rail and road
connections have been completed or are underway. The Common Aviation Area Agreement
signed in 2013 integrates the Moldovan and EU aviation markets, while providing for
progressive alignment with the relevant EU
acquis.
Although some preparatory work has been done, significant efforts are needed, coupled with
political and financial support, to align Moldovan legislation with the EU
acquis
in the field
of
Environment and climate action.
Meaningful reforms will be needed in view of European
Green Deal
7
targets. There are other areas where approximation with the EU
acquis
is still
limited such as
Energy.
Moldova’s membership of the Energy Community supports the
adoption of the reforms needed in the energy market, with unbundling, and certification of
electricity and gas transmission system operators the main priorities. The Strategic high level
dialogue with Moldova on energy, launched in 2021, has helped to accelerate the
transformation of Moldova’s energy network and secure short-term
security of supply by
diversifying energy sources in line with the REPowerEU Plan. The dialogue provides a
platform to enhance the implementation of the EU
acquis
towards green transition and
climate-neutrality. It also enables coverage of more recent EU
acquis
not included in the
Association Agreement as well as governance and financial aspects needed for their
implementation.
7
COM(2019) 640 final
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The cluster
Resources, agriculture and cohesion
includes the chapters of the
acquis
on
Agriculture and rural development, Food safety, veterinary and phytosanitary policy,
Fisheries, Regional policy and coordination of structural instruments, and Financial and
budgetary provisions.
Moldova achieved particularly good results in the area of
Agriculture
and rural development
where it has implemented a substantial part of the EU
acquis
in the
areas of quality policy, organic farming, marketing standards, products, fruits and vegetables,
marketing standards for animal products. The country has started to implement some key
mechanisms for
regional policy.
The approximation to the
acquis
in the area of
Food safety, veterinary and phytosanitary
policy
is limited.
The cluster
External relations
includes
External relations and Foreign, security and defence
policy.
As regards the
EU Common Foreign and Security Policy positions,
the alignment
rate with relevant High Representative statements on behalf of the EU and Council Decisions
was 62% in 2021 (2020: 68%; 2019: 80%; 2018: 72%, 2017: 69%). A high level political and
security dialogue with Moldova was launched in March 2022 to complement the regular
exchanges under the Association Council and further promote gradual convergence on foreign
and security matters. Moldova contributes to
Common Security and Defence Policy
missions, with one military staff representative seconded to the EU Military Training Mission
in Mali since September 2020. There is scope to further enhance cooperation in the area of
Common Security and Defence Policy and to increase Moldova’s convergence with Common
Foreign and Security Policy including on all EU positions.
4. CONCLUSIONS AND RECOMMENDATIONS
Moldova is a parliamentary democracy that has recently embarked on a strong reform agenda
despite a series of exogenous crises. The parliamentary nature of the democracy has been
confirmed by recent competitive elections at parliamentary and presidential level. The
country’s legal and constitutional framework largely
corresponds to European and
international standards. The framework for a modern public administration is established
including policy development and coordination mechanisms and the government has made
progress on Public Financial Management. Adequate institutional and public administrative
capacity needs to be ensured for policy development, enforcement of legislation and policy
implementation. After the 2014 banking fraud, Moldova has undertaken a major overhaul of
its justice and anticorruption systems. On justice reform, the country took decisive steps
including constitutional reforms to improve the functioning of the judiciary, which still
requires improvements on its transparency, integrity and accountability. Similarly, on the
fight against corruption which remains a serious concern, specialised anti-corruption
institutions are in place with further efforts needed to bring corruption cases to courts and to
prosecute them efficiently. The framework for fundamental rights and freedom of expression
generally follows European and international standards. Moldova has made important
progress in freedom of the media, despite its media concentration and opaque financing.
Further efforts are needed to ensure access to information of public interest and safeguard the
independence of journalists. Overall, as regards the
political criteria,
Moldova has a solid
foundation in place to reach the stability of institutions guaranteeing democracy, the rule of
law, human rights and respect for and protection of minorities.
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As regards the
economic criteria,
Moldova has pursued reasonably sound macroeconomic
policies, significantly strengthened financial sector stability, and improved the business
environment. Moldova needs to address inefficiencies to attract more foreign private
investment and enhance public and private investments in strategic infrastructure, education
and innovation. Key areas for improving the functioning of its market economy also include
reducing corruption and pursuing justice reforms, the enforcement of property rights, further
development of a more dynamic business environment as well as better corporate reform of
the governance of state-owned enterprises sector with a view to reducing its size. Similarly,
improvements are needed in energy security to reduce the energy intensity of the economy
and society. Furthermore the country’s capacity to cope with the competitive pressure in the
EU will depend on a more robust and diversified job market and the reduction of the labour
force drain, improving
Moldova’s growth potential and external competitiveness.
As regards
the capacity to fulfil the obligations of membership,
Moldova has worked since
2016 on the implementation of the EU-Moldova Association Agreement, including a Deep
and Comprehensive Free Trade Area (AA/DFCTA). These agreements already capture
significant amount of the EU
acquis
and Moldova has gradually taken up the alignment
process across many chapters and has a satisfactory track record of implementation, while in
some sectors the process is more advanced than in others. Overall, Moldova has established a
solid basis for further alignment.
Moldova is a European State committed to respecting and promoting the values on which the
European Union is founded. The Commission therefore recommends to the Council that
Moldova should be given
the perspective to become a member
of the European Union.
The Commission recommends that Moldova be granted
candidate status,
on the
understanding that the following steps are taken:
-
complete essential steps of the recently launched comprehensive justice system reform
across all institutions in the justice and prosecution chains, to ensure their
independence, integrity, efficiency, accountability and transparency, including through
efficient use of asset verification and effective democratic oversight; in particular, fill
all the remaining vacancies of the Supreme Council Magistracy and in its specialised
bodies;
across all these areas, address shortcomings identified by OSCE/ODIHR and the
Council of Europe/the Venice Commission;
deliver on the commitment to fight corruption at all levels by taking decisive steps
towards proactive and efficient investigations, and a credible track record of
prosecutions and convictions; substantially increase the take up of the
recommendations of the National Anticorruption Centre;
implement the commitment to
“de-oligarchisation”
by eliminating the excessive
influence of vested interests in economic, political, and public life;
-
-
-
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-
strengthen the fight against organised crime, based on detailed threat assessments,
increased cooperation with regional, EU and international partners and better
coordination of law enforcement agencies; in particular, put in place a legislative
package on asset recovery and a comprehensive framework for the fight against
financial crime and money laundering, ensuring that anti-money laundering legislation
is in compliance with the standards of the Financial Action Task Force (FATF);
increase the capacity to deliver on reforms and provide quality public services
including through stepping up implementation of public administration reform; assess
and update the public administration reform strategy;
complete the reform of Public Financial Management including improving public
procurement at all levels of government;
enhance the involvement of civil society in decision-making processes at all levels.
strengthen the protection of human rights, particularly of vulnerable groups, and
sustain its commitments to enhance gender equality and fight violence against women;
-
-
-
-
The Commission will
monitor Moldova’s progress in fulfilling these
steps and report on them,
together with a
detailed assessment
of the country, by the end of 2022.
The accession process remains based on
established criteria and conditions.
This allows
any country in the process to progress based on own merits but also means that steps towards
the EU can be reversed if the underlying conditions are not met anymore.
17