Moldova’s Progress Towards European Union Membership
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Moldova has been actively working towards joining the European Union (EU) for several years. The country has made significant progress in various areas, but there are still challenges to be addressed before it can become a full member of the EU.
Key Areas for Improvement
Economic Development
- Moldova has made significant progress in restructuring its financial sector, improving corporate governance, and increasing transparency.
- However, the country’s economic development is hindered by a large productivity gap compared to the EU, particularly in the agricultural sector.
Business Environment
- Despite investments in education, outcomes remain below those in the EU, contributing to a mismatch between the skill level of the workforce and employer requirements.
- Investment in research and development is low, and digitalization lags behind other countries.
Digitalization
- Only about two-thirds of households are connected to the internet, and around 40% of government services for businesses are available online.
Agricultural Sector
- Moldova’s economy remains heavily reliant on the agricultural sector, with a large productivity gap compared to the EU.
Assessment by Cluster
The report assesses Moldova’s progress in six clusters:
Cluster 1: Economic Development
- Moldova is moderately prepared, with some progress made in economic and monetary policy, enterprise and industrial policy, science and research, and education and culture.
- Areas for improvement include:
- Increasing transparency and accountability in public procurement processes
- Improving the business environment by reducing bureaucratic hurdles and increasing access to finance
Cluster 2: Internal Market
- Moldova is in the early stages of preparation regarding freedom of movement for workers but has made some progress in company law, right of establishment, and freedom to provide services.
- Areas for improvement include:
- Harmonizing laws with EU acquis on labor market regulations
- Improving the functioning of the internal market by reducing trade barriers
Cluster 3: Competitiveness and Inclusive Growth
- Moldova has a moderate level of preparation, with good progress made in digital transformation, media, and taxation.
- Areas for improvement include:
- Increasing investment in research and development to boost innovation
- Improving the business environment by reducing corruption and increasing access to finance
Cluster 4: Green Agenda and Sustainable Connectivity
- Moldova is at an early stage of preparation in the environment and climate change but has made some progress in passing cross-cutting environmental legislation and implementing laws on nature protection and industrial emissions.
- Areas for improvement include:
- Increasing investment in renewable energy sources to reduce dependence on fossil fuels
- Improving waste management practices
Cluster 5: Resources, Agriculture and Cohesion
- Moldova is mainly at an early stage of preparation for all chapters except food safety, veterinary, and phytosanitary policy, where it has achieved some level of preparation.
- Areas for improvement include:
- Improving agricultural productivity through investment in research and development
- Increasing access to finance for farmers
Cluster 6: External Relations
- Moldova is moderately prepared in external relations but has made good progress in the area of common, foreign, security, and defense policy.
- Areas for improvement include:
- Strengthening ties with neighboring countries through regional cooperation agreements
- Improving communication channels with EU institutions
Conclusion
While Moldova has made significant progress towards EU membership, further efforts are needed to address outstanding areas, particularly in digitalization, research and development, and alignment with EU acquis. The country must continue to work towards harmonizing its laws and regulations with those of the EU to ensure a smooth accession process.