Moldova’s Progress Towards European Union Accession: A Report by the European Union
Economic and Financial Performance
The European Union’s Committee for the Evaluation of Progress Towards Accession of the Republic of Moldova has assessed Moldova’s economic and financial performance in its report. Key findings include:
- The financial sector remains stable, thanks to previous reforms and regulatory actions.
- The labour market recovered from the pandemic but still has a low participation rate.
- Moldova’s economy is heavily reliant on agriculture, with a large productivity gap compared to the EU.
Investment in Human Capital
The report highlights the importance of investing in human capital for Moldova’s economic development. However, current outcomes are concerning:
- Education outcomes are well below those in the EU despite significant investments.
- There is a mismatch between the skill level of the workforce and what employers require.
Business Environment
Moldova’s business environment remains a challenge:
- Investment in research and development remains low.
- Foreign direct investment is also low due to weaknesses in the business environment and corruption issues.
Digitalization
The report highlights Moldova’s lagging digitalization efforts:
- Only two-thirds of households are connected to the internet.
- 40% of government services are available online.
EU Accession Process
Moldova continues its work on aligning with EU acquis in various areas, including:
- Financial services
- Free movement of capital
- Digital transformation
Cluster Evaluations
The report evaluates Moldova’s preparedness in six clusters, providing a comprehensive assessment of the country’s progress towards EU accession.
Internal Market
Moldova is at an early stage of preparation, with some level of preparation in company law.
Competitiveness and Inclusive Growth
Moldova has some to moderate level of preparation, making progress in areas such as:
- Economic and monetary policy
- Enterprise and industrial policy
- Science and research
- Education and culture
Green Agenda and Sustainable Connectivity
Moldova is at an early stage of preparation, with some progress made in areas such as:
- Environment and climate change
- Transport
- Energy
Resources, Agriculture, and Cohesion
Moldova is mainly at an early stage of preparation, except for food safety, veterinary, and phytosanitary policy where it has achieved some level of preparation.
External Relations
Moldova is moderately prepared in external relations, with some progress made during the reporting period.
Common, Foreign, Security, and Defence Policy
Moldova is in between moderate and good level of preparation, with good progress made during the reporting period.
Conclusion
The report highlights areas where Moldova needs to improve its performance to meet EU accession criteria, including investment in human capital, digitalization, business environment, and alignment with EU acquis.