Ten years ago Moldova signed an Association Agreement with the EU. How has the Moldovan economy modernised over this time, what economic advantages does Moldova’s status as a candidate country for EU accession give it, and what awaits us on the European market?

These questions were discussed on the air of the programme ‘Trigger’ on JurnalTV by Iurie Cicibaba, entrepreneur and former state secretary of the Ministry of Finance, as well as by the programme hosts Victor Ciobanu, economic expert, and Alexei Tulbure, former ambassador of Moldova to the UN.

Below we present the main answers given during the programme. The full recording of the programme is available here: https://www.youtube.com/watch?v=nflwL0wyeks&t=3766s

 

Business realities of the European market

 

Iurie Cicibaba: From the business point of view, the European market is an opportunity to increase the client base. We are talking about 450 million inhabitants of the EU countries, whose average salary is much higher than in Moldova.  Colleagues who open a business in Romania immediately feel that the salaries of its citizens are many times higher, i.e. the business turnover that an entrepreneur in Moldova could reach in 10 years, there he reaches in 2-3 years.

Yes, there are other problems there, with personnel, for example, but there are also pleasant things, such as the mentality of buyers. Our buyers are looking for cheaper and better quality, while there they are looking for more expensive options.

There is also another point, we have to prepare for what happened with the Baltic countries, namely the outflow of labour force, especially people who work manually, such as plumbers. This is due to the fact that this kind of work is better paid in the West.

Alexei Tulbure: However, this outflow has already taken place after 2014.

 

How cooperation with the EU will modernise Moldova

 

Iurie Cicibaba: The next very important aspect is the EU requirements. They forced our state authorities to turn towards business. The series of EU requirements at the level of legislative changes that had to be made in Moldova allow certain businesses to grow faster.

The legislative framework has improved and continues to improve.

On the other hand, we have to realise that the candidate status may lead to additional requirements. For example, in food safety. Quality standards are rising, and any quality standard means an additional cost.

When entering a new market, any entrepreneur must realise that unpleasant surprises may await you, but you must prepare for them in advance.

 

“The best helper for the government’s negotiation team will be the entrepreneurs themselves ”

 

Iurie Cicibaba: The negotiations that have started are very important. Romania has shown, as well as other countries, that it is possible to negotiate with the EU. It is possible to achieve certain positions not to accept some conditions.

The best helper for the government’s negotiating team will be the entrepreneurs themselves. An entrepreneur knows better than any expert what will happen to his business and he is the best source of information for the negotiation team, which will tell which requirements can be accepted and not worry, and which requirements will lead to the fact that my business will become uncompetitive.

The countries that have already joined the EU confirm that it is necessary to negotiate and, where possible, defend their interests. We need to be flexible and make exceptions or delay the fulfilment of requirements at some points, so that the effect of accession was only positive.

Victor Ciobanu: Since 2016, Moldova’s trade turnover with the EU has grown from 3.3 billion euros to 7.2 billion euros in 2023, more than doubling the total trade turnover. So the opening of such a market of almost half a billion consumers is very important for us.

 

‘Joining the EU is a chance to move to a different league’

 

Alexei Tulbure: I have been in international relations since the early 90s, I have seen how the Baltic countries negotiate, the Poles, how they did it in central Europe, it was very tough. I think that Romanians and Bulgarians did it differently, but nevertheless, in all the countries that joined the EU, we see the growth of GDP, income and infrastructure. I think Moldova is doomed to develop. Am I right or wrong, are there any examples of EU accession causing more problems than positive effects?

Iurie Cicibaba: Joining such a big market is very important for Moldova, it is important for the development of entrepreneurship, GDP growth and welfare. It means that automatically we will live better, but how much better will depend strictly on us. And it is important that we do not turn into those who say that we have joined and now we will live better. I am an entrepreneur and I have a phrase that works for me: if you want to live well, you have to run, search, think, think, think and so on.

Alexei Tulbure: I think this is the first project in the country’s history where everything depends on us. If we work, good, if not, then no.

Iurie Cicibaba: Joining the EU is a chance to move to another league, which will allow us to get other incomes.

 

The debate took place within the project “CAPACITY4EU – Civil Society for EU Accession “, which is supported by the Federal Foreign Office of Germany in the framework of its civil society cooperation programe.