FES BRIEFING MOLDOVA Trade Union Monitor May 2025 POLITICAL, ECONOMIC AND SOCIAL FRAMEWORK CONDITIONS POLITICAL DEVELOPMENTS Politics in the Republic of Moldova in 2024 continued to be mar­ked by the country’s ambition to join the European Union, and increasingly, the domestic power struggle. This culminated in a successful referendum on enshrining the European Integration in the constitution, and the close-call reelection of Maia Sandu to the presidency in the fall of the year. The government led by Sandu’s pro-European Party of Action and Solidarity(PAS) consi­ders the opening of accession negotiations with the EU a major strategic achievement. However, the implementation of required reforms – particularly in the areas of justice and anti-corruption – remains sluggish and is hindered by structural and institutional weaknesses. While progress has been made on some EU bench­marks, observers criticize the lack of coherent political dialogue and the underperformance of state institutions. Moldovan politics remain, for the time being up until parlia­mentary elections in September 2025, characterized by a strong concentration of power in the executive branch. The PAS parliamentary majority allows far-reaching political action, often without meaningful participation from opposition forces or civil society. Legislative transparency is limited, major re­forms are rushed through and important changes are imple­mented last minute. This undermines public trust in the gov­ernment and deepens political polarization. Externally, Moldova maintains a firm position in support of Ukraine and has condemned Russia’s aggression, which has further strained its relationship with Moscow. Pro-Russian par­ties – such as the Socialist-Communist bloc and the Renais­sance Party – capitalize on the growing dissatisfaction of parts of the electorate, particularly in rural areas. The domestic poli­tical climate is polarized, and anti-European narratives are gai­ning traction. Moldova’s European path remains vulnerable to internal instability and the government’s ability to implement reforms effectively. ECONOMIC AND SOCIAL SITUATION Moldova’s economic situation remains difficult. After deep re­cession in 2022 and modest recovery in 2023, economic growth has slowed significantly to 0,1 % in 2024. The meagre growth was driven by a strong rebound in agriculture due to favorable weather conditions. Other sectors such as industry and construction stagnate due to low investment, weak de­mand, and high uncertainty. Structural weaknesses – such as low productivity, lack of innovation, and limited capital access – continue to hamper development. Although inflation has declined(from an average of 13 % in 2023 to around 5 % in 2024), consumer prices remain high and continue to reduce households’ purchasing power. Hou­sehold consumption fell in 2023, especially in the services sec­tor, due to soaring energy prices. Central heating and gas prices rose sharply, putting additional pressure on families. The government’s energy compensation program(“Help at the Meter”) was revised for winter 2023/24, but reached signifi­cantly fewer beneficiaries due to stricter eligibility criteria. The poverty rate remains high: about one-third of the popula­tion lives below the absolute poverty line, with significant ru­ral-urban disparities(40 % vs. 17 %). The labor market is cha­racterized by low participation(around 45 %), a growing skills mismatch, and ongoing emigration. The unemployment rate rose slightly to 3.8 %, with youth and women disproportiona­tely affected. Informal employment is widespread – 17 % of the workforce lacks formal contracts. Demographic decline and population aging further exacerbate these trends, while public sector wages and working conditions fail to retain young professionals. Overall, Moldova remains a low-produc­tivity economy vulnerable to external shocks and reliant on remittances and donor support. TRADE UNION CONTEXT The Moldovan trade union landscape continues to be domina­ted by the National Confederation of Trade Unions(CNSM), 1