Shadow Report: EU – Moldova Association Agreement. Five years of implementation. Progress. Constraints. Priorities.

Authors: Adrian Lupușor, Dumitru Pîntea, Eugen Ghilețhi, Iulian Groza, Iulian Rusu, Stanislav Ghilețchi, Vadim Gumene

 

EXECUTIVE SUMMARY

After five years of implementation of the Association Agreement, today the sectoral cooperation between the European Union and the Republic of Moldova is further strengthened, in particular in the fields of research, innovation and education. The benefits were also enhanced by the visa-free regime with the EU, launched on April 28, 2014. Cooperation in the field of foreign policy and security has been deepened. However, the functioning of democratic institutions, the strengthening of the rule of law and the independence of justice have not undergone clear changes, which has severely affected the quality of the EU-Moldova dialogue, implicitly the full use of European support.

Despite these constraints, due to the Deep and Comprehensive Free Trade Area (DCFTA), the Republic of Moldova has come significantly closer economically to the European Union. The EU has become the country’s main economic partner. Today, about 70% of Moldovan exports are directed to the European Union market, and imports represent almost 50%. The net impact of exports to the EU is estimated at over 367 million euros, contributing to the creation of over 15,000 jobs and helping increase the budget revenues by 5% and by 320 million euros in investments in the private sector.

However, the potential offered by the Association Agreement and by the Deep and Comprehensive Free Trade Area is yet to be harnessed. The key to progress in this regard remains the existence of a clear and consistent political will in implementing all the provisions of the Association Agreement. And this means that the results of the transformations must contribute to the sustainable development of the country, bring more visible benefits to the citizens and help the continuous integration of the Republic of Moldova with the European Union.

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