Study shows Moldova’s weak progress on EU integration, modernisation path

Chisinau, 10 Decembrie /MOLDPRES/- The “IDIS Viitorul” Institute for Development and Social Initiatives today launched a study on Moldova-EU Deep and Comprehensive Free Trade Area one year after its signing, according to which Moldova has made a weak progress so far on its EU integration path, despite having an ambitious programme of reforms.

According to the Country Report within the European Neighbourhood Policy, Moldova has progressed in the field of standardization and food safety; it succeeded to align with the EU sanitary and phytosanitary legislation and consolidate its administrative capacity of food safety risk management.

“The study is meant to find out to what extent Moldovan economic agents succeeded to benefit from the provisions of the Free Trade Agreement with the EU. In this context, competitiveness is the key word. Thus, we may determine to what extend will Moldova succeed to turn the opportunities of the agreement to good account,” the author of the study, Ion Tornea said.

According to Tornea, Moldova’s position on international rankings is a prime warning sign, as it ranks 84th on the competitiveness ranking, facing issues like corruption, economic and political instability, unqualified work force and access to financing. Moldova also fails to be good at innovations, institutional efficiency and development of its financial market. “Trade with its foreign partners” is another problem for Moldova. The most competitive Moldovan goods so far are vegetable products, vegetable fats and oils, shoes, furniture and textiles. They are the only ones able to comply with the European requirements”.

Moldova’s exports to the EU recorded a more dynamic growth and increased by 20 per cent in 2014, during the provisional entry into force of the Free Trade Agreement. However, imports from the EU rose by only three per cent, sweeping away fears according to which European products would invade the Moldovan market.    

With a 31-per-cent increase, the export of Moldovan agricultural products had the best progress. However, being caused by only two products, corn and sunflower oil, it only proves the vulnerability of Moldova’s agricultural exports to the EU, in front of the weather conditions.

According to Tornea, the lack of fostering and enhancement of direct foreign investments in the Moldovan economy will make it very hard and almost impossible to increase the competitiveness of Moldova’s products on the EU market, within a reasonable period of time.

There is still a lot to do in order to harmonise and implement the necessary regulations at the sector level.

“Unfortunately, the society is focusing a lot on the political battle and cares less about the implementation of reforms, especially in the economic and justice fields. We believe such important events must be on the daily agenda and be examined. We must come up with solutions to align with the EU standards,” the director executive of IDIS Viitorul, Liubomir Chiriac said.

(Reporter V. Bercu, Editor M. Jantovan)