Key Achievements
Launching the Council for Economic Empowerment and Gender Equality
On June 12, the Launch event of the National Council for Economic Empowerment and Gender Equality took place. The event was opened by the Prime Minister Dorin Recean, followed by Marina Morozova, MP, Felicia Bechtold, State Secretary at the Ministry of Labor and Social Protection and Alexander Stratan, rector of ASEM and reunited representatives from the state authorities, business and academia. It was moderated by Ms. Veronica Arpintin, State Secretary at the Ministry of Economic Development and Digitalization and had discussion panels, presentation of success stories of women-lead businesses who benefited from state support programs. Also, the main pillars and activities provided in the Roadmap have been presented.
The Roadmap on Women's Economic Empowerment
A Roadmap for Economic Empowerment and Gender Equality was elaborated. In the first days of June, the draft Roadmap was circulated to all the stakeholders for consultations and the final version was presented on June 12, at the Launch meeting of the National Council for Economic Empowerment and Gender Equality. It represents an annual plan of the Council’s activities and has been built around 3 pillars, following the collected proposals from the EC members: Human Capital and Culture, Access to markets and finance and Sustainable policy development.
Deregulation Package nr. 3
The third package of deregulation of entrepreneurs' activity was passed by the Parliament in the final reading on 25th April 2024, resulting in savings of at least MDL 71 million for businesses. The document introduced amendments to the horizontal legislation in the field of state inspection, primarily Law on state inspection no. 131/2012. Among others, the law on inspections was expanded to cover more areas, the domains of control were corrected and more clearly distributed among the inspection bodies, contraventional offenses were introduced for inspectors who apply fines and sanctions which exceed the legal provisions, clear distinction was introduced between the recommendations and mandatory prescriptions issued by inspectors and other provisions were introduced to benefit the business community. The amendments were designed to reduce the risk of sanctions for businesses and the compliance burden in the state control process. The legislative amendments were promoted by the MEDD with the support of the EC Secretariat and assistance from the USAID/MISRA project.
Digitalization Roadmap Update 2024
A new iCouncil session took place on June 7, wIthin the framework of the Moldova Digital Summit 2024, with participation of representatives of the MEDD, Ministry of Finance, Ministry of Justice, E-gov Agency, Customs service, and Public Services Agency, including 35 off-line participants and about 50 persons on-line. The session was co-chaired by the State Secretary for Digitalization and was focussed on current evolutions in public sector and business community priorities in digitalization. During the meeting, the updated Roadmap for digital economy and eCommerce was publicly presented. The Roadmap remains an important set of activities, structured in three objectives and 24 action lines, as it prioritizes action lines necessary for the improvement of the investment climate through digitalization. The National Digital Transformation Strategy approved in September 2023 set as a priority the development of six sectoral action plans, but this process is still lagging behind, so the EC will promote its priorities via the Roadmap and follow their absorption into the ICT and Digital Economy Action Plan under the Strategy.
Implementation of the new regulations on the Extended Producer Responsibility Mechanism in practice
The EC Secretariat organized the WG nr.2 meeting, where the business community addressed the Minister of Environment, the heads of the Environment Agency, the State Tax and Customs Services on the practical implementation of the new regulations on the Extended Producer Responsibility Mechanism (EPR). Following what was agreed at the meeting, the User's Guide for the registration in the List of producers of products subject to EPR regulations through the Automated Information System "Waste Management" (SIAMD) was developed. The detailed registration guide, which also includes the necessary regulatory acts, will help the business community to comply with the requirements for EPR, as well as avoid possible negative consequences and ensure that their activities are in compliance with the legislation in force.
Government streamlined the public tendering process for green energy producers
On April 24, the government simplified the process for companies to bid on building large-scale wind and solar farms. This means it's now easier than ever to invest in clean energy projects in Moldova, namely: a) a simpler application process - bidding for large-scale renewable energy projects is now less bureaucratic; b) focus on wind and solar - the initial focus is on attracting investment in wind and solar power generation; c) fixed price for electricity - investors will benefit from a fixed price for the electricity they produce for 15 years. The total installed capacity to be auctioned is 105 MW for wind farms and 60 MW for photovoltaic farms. This initiative aims to boost Moldova's use of clean energy, leading to a more secure and affordable energy future for everyone. EC Secretariat and EC members actively supported MoE's initiative, participating in public consultation and suggesting improvements to the draft regulation.
Government has approved the draft law on innovative testing spaces in the field of energy regulation
These sandboxes will allow companies to experiment with new technologies and approaches, with temporary exemptions from existing regulations. This means: a) faster innovation - companies can test new ideas in a flexible environment (innovative testing space, which will be authorized for a period of up to 7 years, with the possibility of justified extension for another maximum period of 5 years) to accelerate progress in areas like renewable energy storage and distribution; b) reduced environmental impact - sandboxes can explore ways to minimize the environmental footprint of energy production; c) engaged businesses - the EC played a key role in shaping this law, ensuring it meets the needs of the business community. The draft law has successfully completed an extensive consultation process with the business community, carried out during 2023-2024, inclusive on the platform of the Economic Council. This initiative positions Moldova as a leader in fostering innovation for a cleaner, more sustainable energy future.
Issues we are still working on
Initiatives to reduce excessive rules and procedures for businesses:
Regulatory Mapping along the lifecycle of business activities
The EC Secretariat initiated the implementation of the Prime Minister’s Decision no. 21, dated 23.02.24. The Decision prescribed organizing a Working Group on mapping all regulatory obligations and processes prescribed by regulations along the entire lifecycle of business activity within the major economic sectors. PM, Ministries, State Chancellery, Prime Minister’s Delivery Unit and the EC Secretariat are members of the Working Group. ECS managed to attract to this exercise 7 donor organizations (3 USAID projects, GIZ, UNOPS, FAO, EBRD), which hired experts to carry the mapping for 12 economic sectors. As of the beginning of July, experts reported that the maps of the following sectors were fully completed: agri-food of animal origin, agri-food of non-animal origin (horticulture), HORECA, IT/BPO, Textiles, Construction. Transport/logistics sector is 90% finalized and Inbound Tourism, Electronics, Pharma, and Energy are expected to be completed within the next couple of weeks. Maps will be used in July-August to identify issues for streamlining and formulating deregulation packages, which are expected to generate about MDL 5 billion of savings. The packages are expected to be promoted during 2024.
State Inspections Reform
The EC Secretariat continued with the implementation of the State Inspections Reform Action Plan, approved by the Gov Decree 108-d. Thus, the Secretariat established 8 thematic Working Groups on inspection reform. The dedicated experts provided by USAID/MISRA drafted amendments to more than 30 sectoral laws to primarily correct inspection domains, and develop solutions to prevent discretion and lack of proportionality in applying restrictive measures in inspection. The draft law was submitted by the State Chancellery for public consultations. Experts also drafted amendments to the Contraventions Code, to ensure that offenses are justified and fines are proportionate, to the extent possible and degree of participation/responsiveness of relevant ministries and inspection bodies. The Ministry of Justice is taking the amendments into consideration for a broader exercise of amending the Code, which is expected to be finalized during 2024. Finally, experts proposed amendments to the Tax Code, to align tax expansion to a number of major better regulation principles in inspection, stated in the Law on inspections. However, the Ministry of Finance might not accept all those changes within the budgetary-tax policy draft to be promoted in 2024. Following the EC Secretariat proposal, the Prime Minister submitted a letter requesting reporting on the implementation of inspections reform. Ministries and agencies provided reports and some feedback on checklists, following which the experts are going to draft some concrete recommendations to amend those.
Developing deregulation packages no. 6 and 7
The EC Secretariat collected a variety of issues from the business community to be included into 2 new packages of the amendments. The Secretariat experts concentrated on finalizing the next version of the package 6 and MEDD prepared it for the Government session. The State Chancellery put it on hold, to check whether another round of consultations is necessary with some objecting ministries. It is expected to be ready for adoption in July. As for the package 7, the Secretariat experts processed the results of the first round of consultations and prepared a new version which will be submitted shortly for the second round of consultations. Experts are waiting for the results of the second consultations. It might be ready for adoption by the Government in July.
New RIA Methodology
Following revision of Law no. 100/2017 on normative acts, RIA system was changed and the content of RIA revised, including the explanatory note was turned into the justification note, to include elements of RIA. This required drafting a new RIA Methodology. The State Chancellery requested the EC Secretariat to help draft the new methodology which is going to be approved as a Gov. Decree and replace the existing Decree no. 23/2019. The State Chancellery launched public consultations and collected results and requested the EC Secretariat’s support in processing those. The Secretariat developed the next version of the draft and continues to provide support on promoting it.
Methodology to perform gender equality and equity impact analysis for government legal initiatives
The Ministry of Justice initiated amendments to Law 100/2017 on normative acts, primarily to streamline law making procedures. EC Secretariat recommended adding gender equality and equity impact assessment to the list of impacts to be mandatory assessed in all the Government’s draft legal/normative initiatives. The Gender Expert elaborated the corresponding wording for the Gender Impact Assessment (GIA). Thus, the draft Government Decision provides for the way GIA will be performed, by identifying the indirect and direct beneficiaries, the estimated impact and conclusions and proposals regarding the measures to be taken.
Initiatives for digitization of businesses and remote interaction with authorities:
eCommerce/eEconomy regulatory package
Improvement of the eCommerce/eEconomy legislation is a continuous topic on the EC Secretariat agenda. A new set of eight legislative proposals were developed and delivered in June to the MoF for the Budgetary-Fiscal Policy 2025, covering the rules for online import-export operations. An extended new eCommerce/eEconomy regulatory package was developed with the ATIC/GIZ support, containing 33 regulatory reforms initiatives. It was launched in proceedings in February 2024, later improved and supported by the MoJ and discussed with the TBI Delivery Unit, but is still in MEDD/MoF debate.
DMA & DSA
The second line of activities on eCommerce is targeting the assessment/amendments to the internal legislation on applicability of the EU regulations on digital markets and services at an early stage. The DMA and DSA assessments/recommendations were elaborated with technical assistance of the MISRA/USAID project and presented at the iCouncil in January 2024. After a series of consultations with the EC members, final versions of the reports were published in March 2024. On May 29, following a series of consultations with MEDD and MISRA, the process of drafting legal amendments was relaunched, and at the end of June the required set of documents supporting draft law was presented to the MEDD for further promotion.
eKYC
Contactless business initiative launched by the EC Secretariat, with the UK-GGF support, requires a trustful and functional digital onboarding tool - Electronic Know Your Client Platform. The deliverables of the 1st stage of this TA project cover the regulatory framework, concept and technical requirements development. All 4 previous stages of this initiative have been successfully completed and regulatory framework approval was finalized in April. In parallel, the Concept and implementation proposal was presented to UIPAC/WB being approved for financing in December 2023. The UIPAC/WB decided to individually assess the legal framework sufficiency, market demand and the proposed Concept, selecting in April-May a consultant. In June, with MEDD and eGov Agency participation, the kick-off meeting took place and the report is expected at the end of July.
eNotary
E-notarization is an essential for the Contactless business initiative, due to the role of notary authentication of various transactions required by Moldovan law. The greatest achievement of the Economic Council Secretariat in this regard is Law 126 (on remote business RM), adopted in 2023, creating the necessary legal framework for electronic notarization and remote work, as well. The MoJ and Chamber of Notaries requested the Economic Council Secretariat and EGov Agency to support the eNotary platform development. ECS/EBRD/UKGGF contracted experts’ team developed the eNotary System Concept, ToR and draft regulation on use of the platform. The deliverables were consulted in January-April 2024 with the MoJ and the Chamber of Notaries, being officially delivered to MoJ. Currently, the MoJ is in process of Concept adoption. The EBRD preliminary committed to finance the eNotary platform development.
Digital economy and ICT sector Action Plan development
The Digital Transformation Strategy 2023-2030 approved by the Government in September 2023 set as a priority the development of 6 sectoral action plans. The MEDD launched the process of developing the Digital Economy and ICT Sector Development Action Plan in February 2024 with a team of international experts. However, following the presentation of the updated iCouncil Roadmap, MEDD requested the involvement of the local business community in defining and framing it into national regulations and practices. The analysis of the regulatory framework started in June and a series of consultations on the iCouncil platform will follow.
AI in the process of harmonizing with EU legislation
The EU integration process and harmonization with more than 27’000 European regulatory acts is a huge task for Moldovan authorities, taking into account its resources and the timeframe. That is why, identification of an innovative tool and approach is a must. EC Secretariat launched and participated in a series of consultations with its members, analyzing options and stakeholders. Local and international companies are interested in contributing. EC Secretariat is partnering with the EBS Integrator and Ministry of Energy in developing a supportive tool for public servants involved in the process of harmonization. Work is at the Discovery stage and the development's partner support is needed. The EC Secretariat representative was included in the AI policy coordination body initiated by the MoEDD in June 2024.
Initiatives to facilitate the transition to a green economy:
Program on promotion of green and circular economy for 2024-2028
The Programme Concept was presented by the Ministry of Environment on the EC platform in January 2023. Currently, the draft Programme is on track to be approved by the government on July 10th, 2024. This exciting initiative will guide our country towards a more sustainable future for the next five years. The program focuses on: Reducing waste and pollution through a circular economy approach, where resources are kept in use for as long as possible; Promoting green businesses that use renewable energy, sustainable production methods, and minimizing emissions. The EC Secretariat has played a key role in shaping the program by: participating in consultations and offering suggestions for improvement; advocating for engagement with businesses involved in green practices; proposing adjustments to ensure the program involves the Council in its implementation. This program is a positive step towards a greener Moldova.
Draft tender documentation for renewable energy
The tender for the construction of wind and photovoltaic parks with a total capacity of 165 MW will be launched in early July, 2024. A decision in this respect was taken by the tender committee, headed by the Ministry of Energy. It approved the tender documentation, which will be published for the attention of potential investors. Before the tender was launched, several rounds of public discussions were organized with the participation of interested private companies and business associations, incl. EC Secretariat and EC members, which presented their position for improving the conditions for participation and conduct of the tender.
Moldova Strengthens Waste Management
Moldova is improving its waste management to meet international agreements. A key step is strengthening the Extended Producer Responsibility (EPR) program, which holds companies accountable for the waste their products generate. The EC Secretariat participated in April 2024 consultations to improve the draft amendment to the environmental pollution payment law. This draft, prepared by the Ministry of Environment, alongside other relevant institutions, aims to make EPR implementation more effective and address concerns raised by stakeholders.
Economic Empowerment and Gender Equality
Public hearings organized by the Platform of Women MPs on the systemic state response to exceptionally serious cases of violence against women and girls
In the context of the high-profile case in which a young pregnant woman was raped and murdered with high cruelty, on April 30, a meeting was convened on the platform of the Women MPs with representatives of law enforcement agencies, authorities and civil society. The discussions referred to the fact that this was a gender-based murder and women are not protected enough by the state authorities. Consequently to this meeting, the EC organized another meeting with relevant stakeholders, to address the subject of creating regional ecosystems for economic empowerment of victims of violence, as this is one of the matters included in the Roadmap of the National Council for Economic Empowerment and Gender Equality.
Regional ecosystems for economic empowerment of victims of domestic violence
On June 5, 2024, a kick-off meeting was held with the participation of the most important stakeholders on prevention and combating the violence against women. Taking into account that the gender-based phenomena is widely spread in Moldova, we cannot empower women from the economic point of view, before taking them out of the vicious circle of domestic violence. This is why a meeting was organized in order to assess the actual state of things and to come up with solutions. On 12 July, the EC Secretariat will participate at the meeting of the National Agency on Prevention and Combating the Violence Against Women and Girls on this relevant subject and we will afterwards decide together on the next steps to be further taken.
Training on Women Economic Principles (WEPs) by UN Women
On 12 June, EC Secretariat participated in the training session on "Implementing the Women's Economic Empowerment Principles", which brought together WEP signatory companies and businesses that support women's empowerment in the workplace and in the community, with the aim of developing and improving action plans for women's economic empowerment. Participants also benefited from tools and effective practices presented in case studies and group discussions.
Workshop on practical aspects of implementing alternative childcare services in the workplace
On 20 June there was a workshop organized by the National Confederation of Employers - CNPM, with the support of the International Labor Organization Moldova, under the project "Childcare system in Moldova: systemic approach for better supply and promotion of formalization". The discussions addressed the practical aspects of implementing alternative childcare services at the workplace, including tax incentives. At the same time, an Evaluation Report was presented, which includes a number of recommendations, including the revision and extension of the age limit of children who can benefit from alternative childcare at work from 3 to 7 years (school age). The proposals discussed at the meeting are to be forwarded to the authorities to improve childcare legislation. Alternative childcare services in the workplace is a subject included in the Roadmap of the National Council for Economic Empowerment and Gender Equality, aiming to extend the age of children subject to such services and advocating for tax incentives for the employers who implement this mechanism.
Building Private-Public Dialog
BizRadar
During the reporting period, a partnership with a commercial bank was initiated to promote BizRadar to corporate clients. It started with social media promotion and visual advertising in bank branches. At the same time a Memorandum of Understanding was signed with the OPTIM Project (Helvetas Moldova) to upgrade the application. The upcoming upgrades will simplify the registration process, boosting the number of users, will enable event management for targeted audiences, diversifying content and enhancing usability. Additionally, the app will support more complex surveys. To further popularize the application among young entrepreneurs and small and medium enterprises, a partnership with the Organization for Entrepreneurship Development (ODA) has been established as well. All beneficiaries of this organization who will fill-in the registration form on the ODA website, will initially engage with the mobile app and become BizRadar users. Additionally, an online meeting was organized with economic journalists from diez.md to promote BizRadar through written articles, to popularize the application, as part of a financial education project that they are implementing with the help of USAID. During Q2, the app content was regularly updated, and new features were tested, including working group meeting announcements and a new survey in the context of National Entrepreneurs Day. Eight online working meetings on the regulatory mapping exercise took place during the reporting period, attended by business associations and entrepreneurs from eight sectors (Horeca, construction, electronics, IT, energy, energy, pharmaceuticals, textiles, transport and logistics). During those meetings, the BizRadar application was presented as a communication platform for entrepreneurs and promoted as a trusted source of information. Besides online sessions, a regional meeting with the business community, through the UNDP project, was attended to discuss ECS activities, with BizRadar as a key highlight.
Moldovan Businesses Engage in EU Accession Discussions
The EC Secretariat organized a meeting with business community and civil society representatives (over 70 participants) from Working Group 5 "Increasing Moldova's competitiveness in the context of EU accession", to inform attendees about the EU integration process, particularly upcoming steps related to harmonizing Moldovan legislation with EU standards. Deputy Prime Minister for EU Integration, Chief Negotiator with the EU - Cristina Gherasimov, presented on the screening, negotiation, and transposition processes and called the business community representatives to contribute to assessments of potential impacts of harmonization; propose solutions to mitigate negative effects; delegate representatives to participate in future discussions. Ahead of Moldova's official launch of EU accession negotiations on June 25th, the DPM met with key stakeholders - representatives from business associations, think-tanks, and the EC Secretariat to discuss the progress on Moldova's European agenda, the country's preparedness for the first Intergovernmental Conference, provisions within Moldova's draft general position paper for EU negotiations, next steps to advance Moldova's path towards EU membership. This meeting served as a platform for collaboration and planning before Moldova officially embarked on its EU accession journey.
Moldovan National Economic Development Strategy 2030
The EC Secretariat held a final public consultation on the draft National Economic Development Strategy 2030 (NEDS). This meeting, requested by the MEDD, gathered public authorities and institutions for feedback. The finalized NEDS incorporates: expert recommendations (the strategy reflects input from European Commission - Directorate General for Economic and Financial Affairs), and public feedback (considerations from the consultation meetings have been included). This collaborative approach ensures the NEDS is well-rounded and reflects diverse perspectives.
A new program to promote local products
The Government is launching a program to promote locally produced goods. This initiative will involve a communication campaign and collaboration with businesses to raise awareness of local products, and a program of financial support to be provided by ODA. The program aims to improve the competitiveness of Moldovan producers. In cooperation with MEDD, EC Secretariat organized the SMEs Advisory Council meeting during which the program and other relevant initiatives were discussed, such as the establishment of a local product brand identity and the local product communication campaign. Thus, the meeting provided a valuable platform for discussing and refining the Local Producer Competitiveness Development Program. Participants engaged in constructive dialogue, exchanging ideas and insights to ensure the successful implementation of the program.
Trade Facilitation
The EC Secretariat met with the Head of the Moldovan Customs Service and representatives from the World Customs Organization (WCO). This meeting focused on completing the first planning mission for Phase II of the Global Trade Facilitation Program. The parties discussed ongoing trade facilitation initiatives and Moldova's national progress in this area; analyzed measures to enhance the customs authority's institutional capacity for implementing trade facilitation tools; and addressed potential ways to improve the business environment through trade facilitation. Discussions explored potential areas of collaboration between the Economic Council (as the National Trade Facilitation Committee) and the WCO on trade facilitation issues in the coming years. This meeting signifies Moldova's commitment to streamlining trade procedures and fostering a more business-friendly environment.
AGRIFOOD Partnership 2024 Business Matchmaking event
The EC Secretariat participated at the AGRIFOOD Partnership 2024 Business Matchmaking event held in Cluj, Romania. This event, organized by the European Business Association Moldova, in cooperation with International Business Society, USAID Moldova Rural Competitiveness and Resilience project, offered a valuable platform for over 50 Moldovan agri-food producers. The EC Secretariat delivered opening remarks, underlining the importance of cross-border collaboration in the agri-food sector. The event facilitated connections with potential importers, distributors, and experts, opening doors to new markets and partnerships. Thus, Moldovan producers connected with senior officials from Romania and Moldova, including parliamentarians, government representatives, and local authorities. GET experts were present, fostering discussions on sustainable practices in the agri-food industry. This event fostered valuable connections and collaboration opportunities, positioning Moldova's agri-food sector for future success.
See the previous info bulletin (Q1/2024).
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