FES BRIEFING MOLDOVA Trade Union Monitor September 2024 POLITICAL, ECONOMIC AND SOCIAL FRAMEWORK CONTEXT In 2023, a pivotal juncture in the Republic of Moldova’s Eu­ropean integration trajectory was reached, characterized by the European Commission’s recommendation to commence accession negotiations. This decision follows logically from Moldova’s achievement of candidate status for EU member­ship in June 2022. At the same time, Moldova is preparing for complex negotiations with the EU and alignment with EU laws, despite challenges such as weaknesses in public administration, economic instability, a large budget deficit, and limited public support for the European path. An analysis of the political and economic interactions be­tween the Republic of Moldova and the EU shows a history of reliance on external pressures, such as worsening diplo­matic relations with Russia, Kremlin-imposed trade embar­goes, and the ongoing conflict in Ukraine. These external factors have often overshadowed internal reforms and im­provements in national economic competitiveness. Never­theless, perpetuating the European integration process sole­ly through geopolitical stimuli is unsustainable in the face of sluggish domestic reforms, akin to the unsustainable reli­ance on developmental partner assistance to fund budget deficits indefinitely. Moreover, the initiatives undertaken by the authorities dur­ing this period have been largely driven by the exigency to swiftly adhere to EU prerequisites, prompting apprehen­sions regarding the efficacy of certain reforms. Primarily, the focal point of the public policy has revolved around the judi­cial reform. While EU institutions have lent support to the government’s determined stance on reform implementa­tion, deficiencies persist across multiple policy domains, re­flecting inadequacies in institutional capabilities and a press­ing need for governance enhancements. Nonetheless, a propitious political climate prevails within the EU, largely in­fluenced by geopolitical considerations, fostering a palpable inclination towards initiating accession negotiation proce­dures with the Republic of Moldova as early as 2024. This in­clination underscores the significance of sustained efforts towards bolstering reform efficacy and governance stand­ards, thereby fortifying the nation’s footing on its European integration journey. POLITICAL DEVELOPMENTS According to a presidential decree issued on February 16, 2023, the new government reshuffled its ministers in July of the same year, replacing three of them. The process of se­lecting these replacements was mainly based on considera­tions of political loyalty rather than expertise in specific sec­tors. Addressing the perennial issue of personnel shortages within public institutions, the government implemented sal­ary increases for 1,300 officials within the executive branch, citing the imperative to enhance institutional competence. While salary increments are deemed instrumental in attract­ing and retaining talent within the public sector, effective recruitment strategies also hinge upon the deployment of competitive processes and adherence to meritocratic princi­ples. Instances of cancelled competitions, such as in the ap­pointment of a director for the National Agency for Energy Regulation, raise doubts regarding the government’s unwa­vering commitment to merit-based selection procedures. The prolonged state of emergency, initiated during the ener­gy crisis in October 2021 and extended in response to Rus­sian military aggression against Ukraine starting on February 24, 2022, saw multiple extensions by parliament, totalling 12 resolutions by September 2023. Although facilitating stream­lined decision-making, the extended state of emergency grants the government considerable leverage, potentially cir­cumventing robust political and inter-institutional oversight. Combined with the parliamentary majority enjoyed by the ruling Action and Solidarity Party, this situation warrants vig­ilant monitoring to prevent potential abuses or deviations from legal protocols. Notably, the ruling party’s absolute po­litical control impeded consultative processes, leading to di­minished legislative transparency. Between 2021 and 2022, 1