The main goal of EU policy in Moldova is the support of democratic institutions and efforts toward economic reform, which will bring the country closer to European structures. At the same time, the EU welcomes the European orientation of Moldova, which has set accession to the EU as its strategic goal. Even before EU enlargement was completed, the EU started re-assessing its relations with its neighbours in the East, including Moldova ("Neighbourhood Initiative"). The Greek Presidency gave substantial impetus to this process, supporting the need to upgrade EU-Moldova relations, so that Moldova's European prospects and the pro-reform powers in the country might be supported. Moreover, the EU supports the territorial integrity of Moldova in light of the efforts of the province of Transdnistria to secede.
Contractual framework
As with the rest of the countries that emerged following the collapse of the USSR, relations of the EU with Moldova are based on a Partnership and Cooperation Agreement (PCA), which was signed on February 9, 1995, and came into force on July 1, 1999, for an initial period of ten years, and which will be renewable annually thereafter. The Agreement provides parties with a sufficient framework for developing political relations by establishing political dialogue, promoting bilateral commercial relations and development of investments, as well as by establishing economic cooperation in many other fields. Many provisions of the PCA reflect relevant commitments of the countries wishing to accede to the WTO. The purpose of applying these conditions to Moldova is to prepare the country for accession to this organization in the best way possible - a goal the EU supports actively.
The institutional framework provided by the PCA consists of the Council for Cooperation, which meets annually on a Ministerial level, the Cooperation Committee (supported in its work by six Working Sub-Committees) and the Committee of Parliamentary Cooperation. The sixth meeting of the EU-Moldova Cooperation Council was held on February 24,2004, in Brussels.
Financial assistance
Since 1991, the EU has provided assistance to Moldova, totalling €253 million. This comprises mainly technical assistance under the TACIS programme both through the National Programme (€25 million in 2003) and also through the Programme for Regional Cooperation, which mainly finances TRACECA and INOGATE.
The TACIS regulation determines three priority sectors for the provision of assistance to Moldova for the period 2000-2003:
- democratization and establishment of the rule of law
- support to the private sector and assistance for economic development
- support in addressing the social consequences of transition
The total funds provided for financing of programs to Moldova through TACIS amount to €50 million euros (12.5 million annually) for the period 2000-2003.
It must be noted that a new National Indicative Programme is currently being developed for 2004-5. In addition, an important programme which lies under TACIS, is the current TACIS cross- border cooperation (CBC) programme (2004-6) which directly reflects the objectives of the Neighbourhood Policy, that is, the cooperation between partners on both sides of the EU's external border in order to jointly address common challenges, such as economic and social development of the border areas, environment, illegal immigration and trafficking, efficient border management and people-to-people contacts.
Moldova has also been allocated support under the Food Security Programme, which is designed to address poverty and to improve food security, as well as under the European Initiative for Democracy and Human Rights (EIDHR), which supports civil society initiatives that aim to promote democracy and human rights.
As has already been mentioned, Moldova participates in both the INOGATE and TRACECA programmes. More specifically, Moldova has signed the Framework Agreement of INOGATE, which aims at transferring natural gas and oil from the region of the Caspian Sea to Europe.
The TRACECA programme aims at facilitating the financing of the project of building a transport corridor connecting Europe with Central Asia through the Black Sea, Caucasus and Caspian Sea. A multilateral agreement for the implementation of this plan was signed at Baku in September 1998.
Future EU-Moldova relations
Moldova has asked to be considered by the EU as a "potential candidate for accession." The EU welcomes Moldova's European orientation and is working towards its gradual integration into the European structures. The EU emphasizes the full implementation of the Partnership and Cooperation Agreement and the continuation of reforms in Moldova. In an important decision, the European Council of Goteborg declared the EU's intention to eventually invite Moldova to participate in the European Conference. The Greek Presidency decided to implement this decision and invited Moldova to participate, for the first time as a full member, in the European Conference of Athens (17.4.03). Moreover, following its accession to the WTO, Moldova meets the main prerequisite for launching negotiations to sign a Free Trade Agreement with the EU. Preparations have already started.
The EU's enlargement brought about the issue of the future of EU relations with its neighbours ("Neighbourhood Initiative"). The European Council of Copenhagen has included the countries of Western Balkans, Russia, Ukraine, Moldova, Belarus and the Mediterranean partners in the group of EU "neighbours," and called on the European Commission and SG/HR Mr. Solana to present concrete proposals for the development of relations with these countries (apart from the countries of the Western Balkans, for which it reiterated its support for the Stabilisation and Association Process, its ultimate goal being accession to the EU). These proposals were presented in March 2003 (Communication from the Commission: Wider Europe- Neighbourhood: proposed new framework for relations with the EU's Eastern and Southern Neigbours) and constituted the basis for the discussion that followed. Future EU relations with its neighbours were also a central issue at the European Conference of Athens (17.4.03).
According the General Affairs & External Relations Council (GAERC) conclusions of June 16, 2003, during the Greek Presidency, the New Neighbourhood Initiative, which has recently been changed to European Neighbourhood Policy, covers Ukraine, Moldova, Belarus, Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, the Palestinian Authority, Syria and Tunisia. As far as Russia is concerned, the ENP aims at reinforcing the EU-Russian strategic partnership.
The ENP should be seen as separate from the question of possible EU accession, while its application will depend on the course of each participating country. The ENP will not override the existing framework that governs the EU's relations with the countries concerned (PCAs, Association Agreements with Mediterranean countries), but through the introduction of Action Plans for a group of countries (Ukraine, Moldova, Morocco, Tunisia, Israel, the Palestinian Authority and Jordan), a set of priorities will be defined, whose fulfillment will bring the partner countries closer to the European Union. As far as the financial aspects of the ENP are concerned, according to the Commission's proposals (Commission Communication of July 2003: "Paving the way for a New Neighbourhood Instrument" ) for the period 2004- 6, Neighbourhood Programmes based on enhanced coordination among existing instruments (TACIS, MEDA) have been introduced (two Neighbourhood Programmes will involve Moldova: a cross-border programme with Romania and the Regional/Transnational CADSES programme) , while after 2006 a New Neighbourhood Instrument will be established.
At the October 2003 GAERC, the Ministers took note of an oral report presented by Commissioner Verheugen and "invited the Commission with the contribution, where appropriate, of the High Representative, to present, in the light of the conclusions of 16 June, detailed proposals for the relevant action plans early in 2004 in order to take this matter forward by June 2004."
In response to this decision, the Commission presented, in May 2004, a Strategy Paper (Communication from the Commission: European Neighbourhood Policy Strategy Paper) that gave further recommendations on the way to carry the ENP forward. Therefore, at the June 14, 2004 GAERC the Council adopted relevant conclusions, which were endorsed by the European Council a few days later (June 17-18, 2004), whilst at the July GAERC, the first series of Action plans is expected to be considered by the Council.
The problem of Transdnistria
Apart from the problems of transition, Moldova also faces the grave problem of the de facto secession of the province of Transdnistria. The EU supports Moldova's territorial integrity and has proposed programmes for technical assistance that will benefit both sides of Dniestr, since the best way to deal with a secession attempt is to focus on the country's rapid economic development, so that remaining within Moldova territory becomes an attractive prospect for the population of the region. At the same time, it supports the OSCE efforts to facilitate a solution to the problem.
In addition, it must be noted that at the February GAERC, the European Union decided to extend the visa ban on the Transnistrian leadership for one more year, a measure which was initially introduced in February 2003.
