The Association Agreement with Moldova

Europa Institute at the University of Zurich

 Program

1. Introduction
2. Historical Background
3. Areas and Policies
4. Institutional Setting
5. Discussion

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 Introduction

Moldova – EU relations
> Common history, language, culture and border
> Many citizens have dual Moldovan-Romanian citizenship
and thus are also EU-citizens
> With the partnership, Moldova chose
closer ties with the EU
> Membership not prefigured, but also
not excluded

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Historical Background

> Before the entry into force of the AA, the fundamental framework for the
relationship between Moldova and the EU was the EU-Moldova Partnership
and Cooperation Agreement (PCA)
> It was signed in 1994 and entered into force in 1998
> Provided for a basic arrangement for cooperation with the EU in the political,
commercial, economic, legal, cultural and scientific area
> However, it did not provide a clear framework for positioning Moldova in
the EU
> It did open up channels for political dialogue between Moldova and the
EU

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Historical Background

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Areas and Policies covered by the AA

The AA is composed out of:

Preamble
Art. 1 Objectives
Titel I: General Principles
Titel II: Political dialogue and reform, cooperation in the field of foreign and security policy
Titel III: Freedom, security and justice
Titel IV: Economic and other sectoral cooperation
Titel V: Trade and trade-relates matters
Titel VI: Financial assistance and anti-fraud and control provisions
Titel VII: Institutional, general and final provisions

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Areas and Policies covered by the AA

Art. 1 Objectives
1. An association is hereby established between the Union and its Member States, of the one
part, and the Republic of Moldova, of the other part.
2. The aims of that association are:
(a) to promote political association and economic integration between the Parties based on
common values and close links, including by increasing the Republic of Moldova's participation in
EU policies, programmes and agencies;
(b) to strengthen the framework for enhanced political dialogue in all areas of mutual interest,
providing for the development of close political relations between the Parties;
(c) to contribute to the strengthening of democracy and to political, economic and
institutional stability in the Republic of Moldova;
(d) to promote, preserve and strengthen peace and stability in the regional and international
dimensions, including through joining efforts to eliminate sources of tension, enhancing
border security, promoting cross-border cooperation and good neighbourly relations;

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Areas and Policies covered by the AA

Art. 1 Objectives
(e) to support and enhance cooperation in the area of freedom, security and justice with the aim
of reinforcing the rule of law and respect for human rights and fundamental freedoms as well as in
the area of mobility and people-to-people contacts;
(f) to support the efforts of the Republic of Moldova to develop its economic potential via
international cooperation, also through the approximation of its legislation to that of the EU;
(g) to establish conditions for enhanced economic and trade relations leading towards the
Republic of Moldova's gradual integration in the EU internal market as stipulated in this
Agreement, including by setting up a Deep and Comprehensive Free Trade Area, which will
provide for far-reaching regulatory approximation and market access liberalisation, in compliance
with the rights and obligations arising out of WTO membership and the transparent application of
those rights and obligations; and
(h) to establish conditions for increasingly close cooperation in other areas of mutual interest.

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Areas and Policies covered by the agreement

> The Association Agreement has a comprehensive character.

> covers the entire spectrum of EU-MD relationship
> 735 pages long
> annexes, protocols and a joint declaration

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Areas and Policies covered by the AA

The AA is composed out of:

Preamble
Art. 1 Objectives
Titel I: General Principles (23.10)
Titel II: Political dialogue and reform, cooperation in the field of foreign and security policy
(25.10)
Titel III: Freedom, security and justice (25.10)
Titel IV: Economic and other sectoral cooperation (24.10)
Titel V: Trade and trade-relates matters (24.10)
Titel VI: Financial assistance and anti-fraud and control provisions (31.10)
Titel VII: Institutional, general and final provisions (22.10)

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Areas and Policies covered by the AA

Title I: GENERAL PRINCIPLES, Article 2

1. Respect for the democratic principles, human rights and fundamental freedoms, as
proclaimed in the Universal Declaration of Human Rights and as defined in the European
Convention for the Protection of Human Rights and Fundamental Freedoms (…) shall form the
basis of the domestic and external policies of the Parties and constitute an essential element of
this Agreement. (…)
2. The Parties reiterate their commitment to the principles of a free market economy,
sustainable development and effective multilateralism.
3.The Parties reaffirm their respect for the principles of the rule of law and good governance,
as well as their international obligations, notably under the UN, the Council of Europe and the
OSCE.
4.The Parties commit themselves to foster cooperation and good neighbourly relations,
including cooperation on the development of projects of common interest, notably those
related to preventing and combating corruption, criminal activities, organised or otherwise,
including those of transnational character, and terrorism. (…)

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Areas and Policies covered by the AA

Title II: POLITICAL DIALOGUE AND REFORM, COOPERATION IN THE FIELD OF

FOREIGN AND SECURITY POLICY
Political dialogue on all areas of mutual interest (…) shall be further developed and
strengthened between the Parties (Art. 3 par. 1)
 deepen political association and increase political and security policy convergence and
effectiveness (Art. 3 par. 2 (a))
The parites shall intensify their dialogue and cooperaion and promote gradual covergence in
the area of foreign and security policy, including the Common Security and Defence
Policy (CSDP), and shall address in particular issues of conflict prevention and crisis
management, regional stability, disarmament, non-proliferation, arms control and export
control (Art. 5 par. 1)
 Cooperation shall be based on common values and mutual interests, and shall aim at
increasing policy convergence and effectiveness, making use of bilateral, international
and regional fora (Art. 5 par. 1)

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Areas and Policies covered by the AA

Title III: FREEDOM, SECURITY AND JUSTICE

 Freedom
 Movement of persons (art. 15)
 The parites shall endeavour to enhance mobility of citizens and shall take gradual
steps towards the shared objective of a visa-free regime (art. 15 par. 2)
> Visa-free travel
 Security
 cooperation in conflict prevention and crisis management, prevention of terrorism and
money laundering, cooperation on migration and border management, preventing
corruption
 Justice
 Judicial cooperation in civil, commercial and criminal matters (art. 20 par. 1 and 2)

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Areas and Policies covered by the AA

Title IV ECONOMIC AND OTHER SECTORAL COOPERATION

 Economic cooperation
 The EU and the Republic of Moldova shall facilitate the process of economic
reform by improving the understanding of the fundamentals of their respective
economies... (art. 24 par. 1)
 The Republic of Moldova shall strive to establish a functioning market economy
and to gradually approximate its policies to those of the EU… (art. 24 par. 2)
 To those ends, the Parties agree to cooperate in (art. 25 par. 1)
 (a) exchange of information on macroeconomic policies and structural reforms as well as on
macroeconomic performance and prospects, and on strategies for economic development;
 (b) joint analysis of economic issues of mutual interest …
 (c) exchange of expertise in the macroeconomic and macrofinancial sphere …
 A regular dialogue will take place on the issues covered by this Chapter (art. 26)

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Areas and Policies covered by the AA

Title IV ECONOMIC AND OTHER SECTORAL COOPERATION

 (Other) Sectoral cooperation
 Public administration reform (Chapter 1)
 Cooperation shall focus on the development of efficient and accountable public administration
in the Republic of Moldova, with the aim of supporting implementation of the rule of law,
ensuring that state institutions work for the benefit of the entire population of the Republic of
Moldova…(art. 21)
 Company law, accounting and auditing and corporate governance (Chapter 3)
 Employment, social policy and equal opportunities (Chapter 4)
 Consumer protection (Chapter 5)
 The Parties shall cooperate in order to ensure a high level of consumer protection and to
achieve compatibility between their systems of consumer protection (art. 38)
 Management of public finances: budget policy, internal control, financial inspection
and external audit (Chapter 7)
 …
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Areas and Policies covered by the AA

Title V TRADE AND TRADE-RELATED MATTERS

 Art. 143 objective
 The Parties shall progressively establish a free trade area over a transitional period
of a maximum of 10 years starting from the entry into force of this Agreement, in
accordance with the provisions of this Agreement and in accordance with Article XXIV
of the General Agreement on Tariffs and Trade 1994 (GATT 1994).

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Areas and Policies covered by the AA

Title VI FINANCIAL ASSISTANCE, AND ANTI-FRAUD AND CONTROL PROVISIONS

 Financial Assistance (Chapter 1)
 The Republic of Moldova shall benefit from financial assistance through the relevant EU funding
mechanisms and instruments…(art. 413)
 The priority areas of the EU financial assistance agreed by the Parties shall be laid down in annual
action programmes based on multi-annual frameworks which reflect agreed policy priorities. The
amounts of assistance established in those programmes shall take into account the Republic of
Moldova's needs, sector capacities and progress with reforms, particularly in areas covered by this
Agreement. (art. 415)
 Anti-fraud and control provisions (Chapter 2)
 The Parties shall take effective measures to prevent and fight fraud, corruption and any other illegal
activities, inter alia, by means of mutual administrative assistance and mutual legal assistance in the
fields covered by this Agreement. (art. 422)
 The authorities of the Republic of Moldova shall check regularly that the operations financed with EU
funds have been properly implemented. (art. 424 par. 1)
 The authorities of the Republic of Moldova shall ensure investigation and prosecution of suspected and
actual cases of fraud, corruption or any other irregularity…(art. 426 par. 1)

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Areas and Policies covered by the AA

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Areas and Policies covered by the AA

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Institutional setting of the AA

Multi-level institutional framework

> Art. 433
Political and policy dialogue, including on issues related to sectoral cooperation
between the Parties, may take place at any level. Periodic high-level policy
dialogue shall take place within the Association Council established by Article
434 of this Agreement and within the framework of regular meetings between
representatives of the Parties at ministerial level by mutual agreement.

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Institutional setting of the AA

> Association Council (Art. 434)

> Members of EU Council and Commission and Government of Moldova
> Regular meetings at ministerial level to supervise and monitor the application and
implementation of the agreement and to discuss any major issues and issues of
mutual concern
> Power to adopt legally binding decisions (Art. 436.1.)
> Forum for exchange of information on legislative acts (Art. 436.2.)
> Updating or amending annexes (Art. 436.3.)

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Institutional setting of the AA

> Association Committee (Art. 437 f.)

> assists the Association Council in the performance of its duties
> is composed of representatives of the Parties, in principle, at senior civil servant level
> meets at least once a year
> has the power to adopt decisions in the cases provided for in this Agreement and in
areas in which the Association Council has delegated powers to it

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Institutional setting of the AA

> Trade-and Sub-committees created in specific areas (Art. 439)

> assist the Association Committee
> Parliamentary Association Committee (Art. 440 f.)
> consists of Members of the European Parliament and of Members of the Parliament
of the Republic of Moldova
> forum to meet and exchange views
> Civil Society Platform (Art. 442 f.)
> consists of representatives of civil society, on the side of the EU, including Members
of the European Economic and Social Committee, and representatives of civil society
on the side of the Republic of Moldova
> forum to meet and exchange views

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 Discussion

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Thank you for your attention