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The number of government officials working at various control agencies has increased by 3.5 thousand people from 51.2 thousand in 2011 to 54.8 thousand today. That is while the country’s population has decreased by 343 thousand inhabitants, from 2.93 million in 2011 to 2.6 million in 2021, as being mentioned in an analysis published by the economic expert Veaceslav Ionita.

10 years ago, there was an average of 17.6 bureaucrats per one thousand inhabitants. This figure has increased by over 20%, meaning that today we already have 21.4 bureaucrats per one thousand inhabitants. According to the expert, the number of government bureaucrats in charge of public services is unbalanced when compared to the number of people who would request such public services. “If we keep the rate from 2011, then we would have to reduce the number of bureaucrats by 10 thousand people.”

Nowadays, the costs for a single employee of the bureaucratic system reach 200 thousand lei, including the payments related to salary, bonuses, social expenses, as well as office space and other labor costs. “The maintenance costs of this additional and unnecessary number of bureaucrats amount to at least 2 billion lei annually,” the expert claimed.

The number of government control agencies was reduced from 68 to 19, as being displayed on the official page of the national public services portal. “The number of control institutions were reduced, but not the number of bureaucrats in charge of controls. In the last 4 years alone, the number of permissive acts in Moldova has decreased 3 times. Thousands of people were dealing with unnecessary and harmful activity by offering permits for certain types of activity. Their activity proved to be useless and, consequently, was ended. But the bureaucrats stayed in offices, even though their previous positions were removed. Obviously, all the thousands of people, who have lost the right to control or allow something, started to look for new solutions to ‘milk’ the money  from businesses.”

The expert says that the damage caused by the unnecessary activity of such officials amounts to tens of billions lei each year in the form of lack of investment in Moldova, people emigration, shutting down companies due to corruption, exaggerated prices due to monopolies protected by bureaucrats and other costs borne by the society.

It is still not clear why Moldova would need a National Agency for the Regulation of Nuclear and Radiological Activities, given that there are no nuclear power plants on the territory of the country and given that there is already a National Agency for Energy Regulation. Also, there are 3 agencies in charge of land recording and cadastral maps creation in the Republic of Moldova. The economic expert believes that some control agencies could be merged in a single market regulation agency and that would be a way to optimize public expenditures.

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This week, the European Commission approved the disbursement of 36 million euros in grant money for the Republic of Moldova. The announcement was made by Deputy Director-General for Neighbourhood Policy and Enlargement Negotiations at the European Commission, Katarina Mathernova, who paid an official visit to the Republic of Moldova between September 13-15, together with Managing Director for Russia, Eastern Partnership, Central Asia, Regional cooperation and OSCE, at the European External Action Service, Michael Siebert.

The EU officials had meetings with President Maia Sandu, Minister of Foreign Affairs and European Integration, Nicu Popescu, Speaker of Parliament, Igor Grosu, Prime Minister of the country, Natalia Gavrilita, as well as key representatives of Government, international financial institutions and the civil society, according to a press release issued by the Delegation of the European Union to the Republic of Moldova.

Beside such topics as the EU-Moldova relations and prospects, the priorities of the reform agenda of the new Moldovan Government, preparations for the Eastern Partnership Summit at the end of the year and the Transnistrian conflict settlement, the officials also discussed the EU assistance in support of reforms and the Economic Recovery Plan for Moldova, which was announced in June with a total EU support of 600 million euros over the next 3 years.

“The first measures under the Economic Recovery Plan will shortly materialize, with the expected disbursement of 36 million euros in grant money under budget support programmes to support the authorities’ efforts to fight against the consequences of the pandemic. Moldova can count on EU’s assistance on its path to reforms and to recovery, bringing tangible results to citizens,” Katarina Mathernova stated.

The plan is based on assistance provided by the European Union through various bilateral and regional instruments, aiming to mobilize the funds in the form of grants, loans, guarantees and macro-financial assistance.

“The Economic Recovery Plan for the Republic of Moldova involves much more, not just this financial support provided immediately. It must help digital transformation, strengthen infrastructure, energy efficiency, education and support small and medium-sized enterprises,” the EU official also said.

As Prime Minister Natalia Gavrilita informed, “The Economic Recovery Plan and the 5 flagship initiatives for Moldova in the Eastern Partnership will directly contribute to the reform and consolidation of institutions, stimulate long-term socio-economic development, bring direct benefits to citizens, and unleash new economic opportunities through promoting the green agenda and digitization. Small and medium-sized enterprises (SMEs) have been hit hard by the crisis. Promoting and diversifying access to finance and reducing collateral requirements will be essential in supporting economic operators. We are grateful to the EU partners who will launch two programs to support 50 000 independent Moldovan SMEs to adapt to the new conditions.”

President of the Republic of Moldova, Maia Sandu, welcomed the decision of the European Union to disburse about 745 million lei in grant money, as the official page of the President’s Office announced. “EU support comes after a long period of freezing of European assistance, caused by former governments. We managed to relaunch the political dialogue with the European Union and resume financial assistance. The Republic of Moldova is gradually regaining the trust of its strategic partners. This European support is also a signal of encouragement for the new Government team in its commitment to clean up the institutions, fight corruption and launch development programs in the country,” said Maia Sandu.

See also: An Economic Recovery Plan for Moldova: 600 million euros for a sustainable recovery from the COVID-19 crisis

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The Chamber of Commerce and Industry of Romania (CCIR) and the National Office for Vine and Wine (NOVW) of the Republic of Moldova signed, last week, a memorandum of cooperation on organizing joint promotional activities in the markets of common interest, as the CCIR announced.

China, Japan or the USA are just some of the markets targeted by the Romanian and Moldovan institutions. The memorandum also involves advertising activities for wines from common indigenous varieties, promoting the oeno-tourist region, developing a tourist route in the two states, exchange of experience, study visits, and mutual support in identifying new export opportunities. “We are very confident that this collaboration between our organizations will lead to sustainable economic growth and a higher degree of well-being among Moldovans and Romanians,” claimed Deputy Secretary-General of CCIR, Bogdan Visan.

On the other hand, Director of the NOVW, Cristina Frolov, declared that no open competition with Romania is aimed at the governmental level of the Republic of Moldova. “This request for collaboration is a consequence of the partnership principle. Romania imports 10-12% of the wine it consumes, and we want to take more from this import quota. Every year, the Romanian market grows by approximately 2.8%, as it happened in 2020, and we are interested in taking a maximum share of this percentage of imported wines without entering into direct competition with the Romanian producer,” the Moldovan official said. She also mentioned that Moldova aims at increasing the market share of wine production by at least 50% compared to 2020, and the number of producers present on the Romanian market – by at least 40%.

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According to the data of the Romanian National Trade Register Office, the total value of Romania-Moldova trade was 1.7 billion euros at the end of last year and over 805 million euros at the end of May 2021. In July 2021, there were 6 522 companies from the Republic of Moldova in Romania, with a total capital value of 45.9 million euros.

The data of Moldova’s National Office of Vine and Wine showed that, in the first 7 months of 2021, the total quantity of bottled wine was about 27 million litres (registering an increase of 10% as compared to the same period last year), with a value of more than one billion lei, which is 32% more than the same period last year. Moldovan wines were awarded 956 medals at 32 international competitions in 2020.

Photo: ccir.ro