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Manfred Grund is a member of the German Parliament (Bundestag), belonging to the CDU/CSU political party. He is in charge with the relations between Germany and Moldova. The MP was the initiator of a German resolution that recognizes Moldova’s European perspective.

Moldova.ORG kindly invites you to read an exclusive interview with Mr. Grund about Moldova’s development, European integration and settlement of the Transnistrian conflict.

Moldova.ORG: Mr. Grund, you travelled to Moldova a few weeks ago to participate at an Economic Moldova-EU Forum. From what you’ve seen, what has changed in Moldova and what still lags behind?

Manfred Grund: This was my most recent visit, but I have been to Moldova regularly over the last decade and I can compare my impressions over many years. Since 2009 Moldova has become much more open and pluralistic society. Moldova made a huge leap forward with its European integration agenda. It was the first Eastern Partnership country to have secured visa-free travel with the EU. The Government has negotiated, signed and ratified the Association Agreement and the DCFTA – the most ambitious and far-reaching documents for reforms in Moldova’s history.

At the same time, I understand that many Moldovans have been disappointed with the slow pace of some reforms. Between 2009 and 2013 a number of political crises impeded the efficiency of the government. Corruption remains a fundamental problem. So there are still a lot of deficiencies. And there are politicians in all parties who seem to be more interested in their own pockets than in the interest of the country. At the same time, already the Filat government has launched a number of important reforms. Economic development was quite positive, particularly in the last year.

Moldova is lucky to have Prime Minister Leanca who is very sin determined to change Moldova for the better for its people, and he is also very sincere about fighting corruption. This is why Moldova gets so much support from the EU and from Germany. But serious reforms meet a lot of resistance from vested interest. I understand that many Moldovans expect quick fixes for their problems. But the problems are deep rooted and serious reforms take time. Nevertheless, in the final analysis, the country is on the right track.

Moldova.ORG: At your initiative, the German Bundestag has given a European perspective to Moldova. Does this mean that Germany is willing to accept Moldova in the EU, should the country comply with the accession criteria?

Manfred Grund: Yes, Moldova is a European country, and as such can join the European Union if it meets the criteria. This is what the German Bundestag has clearly acknowledged in its resolution. To be sure, fulfilling these criteria will take years. The EU has very exacting standards for the rule of law, anti-corruption, fair rules of the game and an open and free market economy. But it is precisely the implementation of these standards that will improve the conditions and create opportunities for Moldovans. And this means that Moldova will benefit greatly from reforms that are leading to membership.

So you shouldn’t think about joining the European Union as an automatic solution to the problems of Moldova, but you should see European integrations as a blueprint for the modernization of Moldova.
The EU model of development has already worked everywhere else. 20 years ago the living standards in the Baltic States, Romania or Poland were roughly the same as in Moldova. Today the average income of each of these other countries is several times higher than in Moldova. What made the difference? Of course, it was European integration. And all of these countries conducted most reforms and experienced the strongest progress and growth before they actually joined the European Union.

In substance, the association agreement is already part of an accession process, for it leads to a far reaching economic integration of Moldova into the EU and its single market – which is the most important part of European integration. So my message is: yes, Moldova can become a member of the EU, yes, this will take still time, but the process leading to membership is actually as beneficial for Moldova as the membership itself.

This is also the major difference to the Customs Union. The Customs Union doesn’t require Moldova to undertake any serious reform. There are no standards of the rule of law, fighting corruption or ensuring fair economic conditions in the Customs Union. By joining the Custom Union nothing in Moldova would change. The European Union and the Customs Union are two very different models of integration. Moldova’s Association with the EU means more integration and vital reforms for the country than joining the Customs Union would mean.

What does the Customs Union require? It requires Moldova to give up its sovereignty over trade. Is this in Moldova’s interest? Unlike Russia, Moldova has no natural resources to sell. For its economic development Moldova needs investment. But the Moldovan market is too small to be an interesting place for investment for foreigners and Moldovans alike if it stays on its own. Therefore, Moldova needs free trade with as many international partners as possible. Free trade with the EU is compatible with free trade with Russia. The problem is that the customs union would prevent free trade with the EU, because you cannot have free trade and customs at the same time. The problem for Moldova is that customs will only keep the prices high and investors out.

Moldova needs to become more attractive to investment. Where will this investment come from? It can only come from the EU – which has the biggest market in the world, many times bigger than the Customs Union. And it will only come with European integration, because with European integration, Moldova will become a far more predictable and reliable place for investors, and because investors can sell what they produce in Moldova everywhere in the EU. And this is where more jobs and higher wages come from. To give you one example: The accumulated foreign investment per capita in Estonia is around twelve times higher than in Moldova. That is why the average income in Estonia stands at more than 750 Euro and in Moldova at less than 200 Euro.

Moldova.ORG: It seems that not all citizens of Moldova are in favor of the European integration of their country. These people are also backed by some political parties. What measures could help the society seek the same thing – European integration?

Manfred Grund: First of all we see a very aggressive propaganda campaign against the EU by parts of the political forces in Moldova and in Russian media. This campaign operates with distortions, it creates negative myths about European integration and it spreads fear. I understand that many Moldovans have become unsettled and concerned. It is not easy to argue against such an aggressive campaign. European integration is a complex and a strategic development programme. And we shouldn’t answer intimidation with intimidation but focus rationally and persistently on the positive agenda of European integration. But I would not exaggerate. What I see is that support for European values is broadly shared in Moldova.

Let’s be clear about what the EU stands for: the rule of law, democracy, human rights, fighting corruption, equal rules for all instead of privileges of the few, public institutions that serve the good of the people instead of the interest of the few, social welfare and a functioning market with fair chances for everyone. Is that not what Moldovans still miss in their country? Is that not what Moldovans want for their country? That is what European integration is about.

There’s of course also the question of how far reforms go and how fast they produce results. It is not happening fast enough. But if the country stays the course, the results will become very visible – and will be felt by each Moldovan – in the near future.

This is also what the EU wants to achieve in Moldova. The European Union does not impose anything on Moldova. The EU supports the European integration of Moldova because Moldovans belong to the European family of nations like other Europeans, and they have the same right to participate in European integration. The European Union is also interested in the European integration of Moldova because our experience with more than 50 years of European Unification tells us that European integration and European values are the most reliable foundation for stability, peace and prosperity in Europe, and this is in the mutual interest of all European states.

Today, this may all sound too idealistic for many Moldovans, too far from their everyday problems, and perhaps it also sounds too good to become reality. But I have no doubt that the people in Moldova will support European integration as soon as they really see that is works, and brings change and improvement to both their country and their lives.

Moldova.ORG: Transnistria and Gagauzia cannot be neglected in this Europeanization process. Is Moldova able to fully integrate and later join the EU despite of these conflicts?

Manfred Grund: It is true that Gagauzia and the Transnistrian region must not be neglected. And we need to reach out to them. In Gagauzia, the EU and Western countries are already by far the biggest donors. Gagauzia has to benefit from European integration just as the rest of Moldova, and even more, because the European Union has been the best guarantor of minority rights all over Europe. I also understand the positive sentiments of the Gagauz but also other people in Moldova have towards Russia.

We have to be clear: the European integration of Moldova is not directed against Russia, it will not infringe upon the sovereignty or neutrality of Moldova. The association agreement with the EU is in full accordance with all agreements between Moldova and Russia, including on free trade and visa freedom in CIS.
The European Union has not only sought free trade with Moldova but also with Russia. Russia has presented Moldova with a choice in the form of the Customs Union. Joining the Customs Union would cancel the association agreement and free trade with the EU.

I may be wrong but I got the impression that the debate in Gagauzia on European or Eurasian integration was a largely artificial debate, a kind of a proxy campaign where discontent with the implementation of Gagauz autonomy may have played a bigger role than any geopolitical questions. It was therefore important that the EU and Chisinau have reached out to the Gagauz and focused on what really matters for the people in Gagauzia: which is the development of the infrastructure, the economy and the autonomy of Gagauzia. So far, this strategy has paid off.

Transnistria, too, has to benefit greatly from EU integration. Around 70 percent of the region’s exports go either to the right bank of Moldova or to the EU. So for the Transnistrian economy, to maintain an open access to EU markets is a vital question. Free Trade with the EU was initially meant also to benefit the economic development of Transnistria. As a matter of fact, Transnistria chose instead not to participate in the free trade agreement with the EU but rather to promote closer relations with the Customs Union.
Now we have to find a solution for Transnistria that doesn’t sever its trade with the EU. Neither the EU nor Moldova have used trade issues to put pressures on Tiraspol. Quite the opposite happened: Moldova negotiated with the EU an agreement that leaves the existing favorable trade regime for the Transnistrian region in place until the end of 2015. This still leaves time for Chisinau and Tiraspol to find a solution on trade.

Also in a more general way, the European integration and a settlement of the Transnistria conflict can support each other. The European Union does not want a second Cyprus. However, only before the final accession of Moldova to the EU this problem would finally need to be addressed. This will still take years to come. And the EU can and will not allow Tiraspol or anybody else to have a veto right over Moldova’s European integration.

The European integration of Moldova shouldn’t be seen as an impediment to a conflict settlement. Rather the opposite is the case: Tiraspol and Moscow have always used the conflict settlement negotiations to influence the foreign policy of Moldova. What is the conclusion? Only after Chisinau has finally decided on its European integration – and thus removed the geopolitical aspect from the conflict – it can expect that serious negotiations of the core of the problem can start – which is the status of Transnistria.

Moldova.ORG: What could be the most reasonable and sustainable solution for the Transnistrian conflict settlement and why?

Manfred Grund: The resolution of the Bundestag supports a settlement that ensures the sovereignty and territorial integrity of the Republic of Moldova within a functioning state based on the principles of democracy and the rule of law. In my view, a functioning state should mean that there should not be internal veto rights which could deadlock the country on issues of key national interest such as European integration, but rather a clear division of competencies between the central authorities and those of the Transnistrian region.

But there should also be clear provisions for the special status of Transnistria with its own institutions and clearly defined competencies. However, the role of international actors in this conflict should be to support the settlement process, not to impose anything on the people on both banks. Between them a settlement has to be agreed on. And the EU will continue to support Moldova also on this way.

Interview by Valeriu Gonta