2016 Annual Review of Labour Relations and Social Dialogue Moldova CORNELIU CIUREA February 2017  Although 2016 in economic terms was more favourable than 2015, it confirmed that the Moldovan economy's main problem remains its poor inclusion in Western structures.  In view of the shortfalls regarding implementation of the EU-Moldova Association Agreement recorded in the year before, in 2016 the European Union(EU) adopted a pragmatic approach towards Moldova and decided to structure its relations with the Moldovan authorities on more concrete results in accomplishing the reform agenda.  Moldovan authorities have dedicated increased attention to the justice sector, legislative and institutional changes in the anticorruption system, promotion of legislative initiatives for reorganization of the banking sector, promotion of central administration reform, and creation of a proper framework in order to negotiate and sign a cooperation agreement with the International Monetary Fund(IMF). Despite these advancements, it is important to mention that the relative progress witnessed in 2016, refers mainly to changing the legal framework rather than actually applying reforms. The visible results of the reforms are not yet seen by the public.  The discrepancy between real wages and labour productivity, which has been observed over the recent past, has lately become even more pronounced(even against the background of an emigrating working-age population and the constant decline in employment rates). The competitiveness of the Moldovan economy is thus undermined by both the price and the quality of labour. The Moldovan labour market and labour relations require further improvements in order to contribute to a more inclusive market so that there are not only equal opportunities but also equal results.  The main reforms, which involved the participation of social partners, dealt with: pension reform; the law on social benefits for children(aimed at providing a minimum state financial backing for the birth and care of children); laws of capital liberalization and fiscal stimulation; and laws concerning the financial and banking sector. Most of these laws were received with hostility by trade unions but they were eventually adopted by parliament, except the laws on capital liberalization and fiscal stimulation, which were postponed until 2017.