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    ~ H NKUK UNIVERSITY

    OF FOREIGN STUDIES

    The Academic Seminar

    GSIAS HUFS

    2 2

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    . : : ~ : : f ' r t

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    . . . .

    Date Time: Nov.22 1:00 ~ 6:00 pm

    Venue: Aekyung Hall Int l Bldg.

    Organizer: GSIAS Student Council

    Graduate School of International and Area Studies

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    CONTENTS

    1.

    China's M&A strategy in steel industry for sustainable development - Focus on the key

    steel enterprises M&A cases after 200S, Hyun-wook Cheng (Chinese Studies)

    2. The Sustainability of Labor Migration to South Korea, Margaret CH McElhenny

    (International Relations)

    3. EU-Moldova relations in the context of the Republic of Moldova Government Activity

    Program "European Integration: Freedom, Democracy, Welfare" 2009-2013, Ina

    Virtosu (European Union Studies)

    4. 'When and How to Privatize' the Public Bank in a Strategic Manner, - Focusing on the

    privatization of the Korea Development Bank (KDB), Gene Hong (Latin American

    Studies)

    5. "Analysis of the role and the importance of the Green Great Wall (GGW) to fight

    against the turning into a desert and poverty in the Sahelo-Saharian States Community:

    case of Senegal", Mane Lamine (KOICA)

    6.

    Impacts of Bioenergy Industry on the economy of developing countries: Tanzania CaseStudy, Jongmin Nam (International Development)

    7. Regional Strategies for Sustainable Encrgy Development - The Eastern Africa Power

    Pool (EAPP), Bethel Ghebru (Middle-East and African Studies)

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    Hankuk University of Foreign Studies

    Graduate School of International and Area Studies

    The Department of European Union Studies

    Seoul, 2012

    EU-Moldova relations

    in the context of the Republic of Moldova

    Government Activity Program European

    Integration: Freedom, Democracy, Welfare

    2009-2013

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    Abstract

    The European integration is an irreversible strategic objective of the foreign and

    domestic policy of the Republic of Moldova. All program documents - foreign policy

    conception, governing programs etc. that have been adopted from the declaration of

    independence until now contain appeals to the European Union to accept Moldova as a future

    member-state.

    The Republic of Moldova signed the Moldova-European Union Action Plan on 22

    February 2005 in Brussels within the frameworks of the European Neighborhood Policy

    (ENP). This document includes the strategic objectives and specific actions for achieving

    these objectives. The implementation of the Action Plan will enhance considerably the

    process of legislative approximation and adjusting to the EU standards and will create proper

    conditions to advance the level in relations with the EU.

    The past and present of EU-Moldova relations can be framed between two main

    periods: February 2005, when the joint ENP Action Plan was launched to trigger the first

    stage of cooperation; and January 2010, when the EU and Moldova started negotiations on an

    Association Agreement. In this timeline the European Union has continually increased the

    volume of assistance provided to Moldova.

    The peaceful and democratic transfer of power that took place in Moldova in 2009, as

    well as the determination of the new government to give new impetus to the course of

    European integration by accelerating the reform process, opened up new opportunities and

    prospects for Moldovas cooperation with its partners, particularly the EU. Since then,

    relations with the EU have improved significantly. However, which concrete measures were

    adopted by the Republic of Moldova Government to achieve of the objectives of the European

    Integration?

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    Contents

    I. The general background of EU-Moldova relations...1

    1. The European Integration fundamental priority in a Republic of Moldova

    Government Program..1

    2.

    The authorities responsible for implementation of the European integration

    agenda....3

    II. What role should the EU play in Moldova EU integration?.....................................4

    1. Current status of EU-Moldova relation4

    2. The Republic of Moldova Government implication in achieving EU integration.6

    Recommendation..7

    Bibliography

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    List of Tables

    Table 1. The authorities of the Republics of Moldova responsible for European

    integration agenda.3

    Table 2. Member States` position versus Moldova5

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    1

    I. The general background of EU-Moldova relations

    1. The European Integration fundamental priority in a Republic of Moldova

    Government Program

    In 2009, Moldova went through two parliamentary elections. The Constitutional Court

    of Moldova validated the results of the first elections, but the Parliament failed to elect a

    president and new elections were held. As a result of the second parliamentary election, the

    Party of Communists that had been in office for eight years was replaced by the Alliance for

    European Integration, formed by four liberal democratic parties who now hold 53 out of 101

    seats in Parliament. However, the new Parliament failed twice to elect a head of state and

    according to the Moldovan Constitution, the failure to elect a president after two rounds

    should lead to early parliamentary elections. Thus a third election was scheduled for

    November 2010 and the Alliance for European Integration, obtained 61 mandates out of 101,

    that fact lead to situation that president was elected. There was no coincidence in naming this

    coalition the Alliance for European Integration: the new government started a diplomatic

    offensive to charm EU capitals and created high expectations in Moldova, especially for the

    educated, young electorate which tends to see the EU as an opportunity to bypass isolation

    and poverty.

    In the meantime the Government continues to hold full powers and exercise its

    mandate. The Governments Activity Program European Integration: Freedom, Democracy,

    Welfarelays out a framework for Moldovan governing policies for 2009-2013. The Program

    has been drafted in a difficult time for the Republic of Moldova, which faces a deep

    democracy crisis.

    The Government of the Republic of Moldova regards European integration as a

    fundamental priority of the domestic and foreign policies of the Republic of Moldova. The

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    full achievement of this objective will enable the country to embark on a stability and

    prosperity course, governed by democratic values and respect for fundamental human rights.

    At the same time, the most efficient way to achieve political, economic and social

    modernization of the country is to responsibly implement the commitments deriving from the

    European Union. The coherent implementation of policies designed to Europeanize the

    country socially, politically and economically and an association agreement with the

    European Union will enable the Government to make the Republic of Moldova, in a

    reasonable time, eligible for EU accession.

    The Partnership and Cooperation Agreement (PCA) represents the legal framework for

    the Republic of Moldova European Union relationship. The Agreement was signed on 28

    November 1994 and entered into force on 1 July 1998 for the next 10 years. This arrangement

    provides for a basis of cooperation with the EU in the political, commercial, economic, legal,

    cultural and scientific areas.

    The negotiations for the new association agreement started in January 2010. Both

    parties agree that EU will offer Moldova assistance and financial support for promoting

    structural, administrative and political reforms. The general framework of the discussions

    follows the path of the EU Ukraine current talks, which started in March 2007. However,

    both parties are convinced the discussions in Moldova`s case will advance faster, since the

    Chisinau government is more open and willing to enter a fast track.

    The Eastern Partnership (EaP) became a key priority for the new Moldovan

    government established by the Alliance for European Integration and is considered a valuable

    tool for promoting Moldovas bilateral agenda in relations with the EU. The main

    expectations with regard to the EaP are: signing the Association Agreement; liberalizing the

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    visa regime with the EU; and establishing a Deep and Comprehensive Free Trade Area

    (DCFTA) (Ghinea, 2012: 5).

    2. The authorities responsible for implementation of the European integration

    agenda

    Currently, the institutional mechanism in charge of the implementation of the

    European integration agenda is composed of many national institutions and each of them has

    some specific duties (Table 1).

    Table 1. The authorities of the Republics of Moldova responsible for European integration

    agenda

    Name of the institution Responsabilities

    The Foreign Policy and

    Eur opean I ntegration

    Committee of the Moldovan

    Parliament

    the interface between the European Parliament and the

    Moldovan Parliament

    the GovernmentCommission for European

    Integration

    the main decision-making and monitoring bodyit includesall ministries and is headed by the Prime Minister of

    Moldova

    the M in istry of Foreign

    Af fair s and European

    I ntegration (MFAEI )

    coordinates the actions undertaken by ministries and

    governmental agencies; the Department for European

    Integration of the MFAEI undertakes the responsibilities of

    the Secretariat of the Government Commission for European

    Integration

    European in tegration

    offices

    set up in each ministry, which are charged with

    implementing and coordinating the actions/commitments of

    those ministries

    The relationship between the Republic of Moldova and the European Union are

    institutionalized through three responsible structures in charge of enhancing the political

    dialogue and monitoring of PCA implementation, and namely: Moldova-EU Cooperation

    Council, MoldovaEU Cooperation Committee and MoldovaEU Cooperation Sub-

    committees and MoldovaEU Parliamentary Cooperation Committee.

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    Also, a consultative meeting of the donors in Brussels gathered international support

    for an ambitious reforms project called `Rethink Moldova`. The EU was the leading partner in

    this action, together with the US government, various Members States` international

    development agencies, the World Bank and the IMF (Ghinea, 2012: 25).

    II.

    What role should the EU play in Moldova EU integration?

    1. Current status of EU-Moldova relation

    When Moldova signed up to the European Neighborhood Policy (ENP) in 2004, this did

    not change the legal framework of relations between Moldova and the EU. Consequently, the

    PCA remained the basic agreement governing Moldovan-European partnership, but this main

    document was accompanied by a political document in the form of an individual Action Plan,

    officially received from EU's Internal Affairs Commissioner, drawn up between the EU and

    the Republic of Moldova and intended to accelerate political, economic, and social reforms in

    the country in exchange for deepening its relations with the EU. The ENP generated high

    expectations regarding Moldovas chances of integrating rapidly in the EU family. However,

    the implementation of the ENP has not always been coherent, continuous, and consistent

    (Rodkiewicz, 2009: 36). For this policy to be a success the EU must have the possibility to

    influence its relationship with the Republic of Moldova, and this is a difficult thing to achieve

    within the Partnership and Cooperation Agreement. One solution would be for the member

    states of the EU, and not the European Commission, to be more active in promoting the

    relationships with the Republic of Moldova.

    According to Jerzy Buzek, former President of the European Parliament, the EU is

    committed to Moldova, and EU salute the enormous progress achieved on the path to a

    European future. Over the last 12 months, EU-Moldova relations have been carried forward to

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    5

    an unprecedented level of dialogue. Moldova has proved its reliability as a partner. There is a

    strong and unanimous interest in the EU in maintaining the current momentum in our

    relations, to the benefit of Moldova's citizens.

    Generally, the EU tries to promote the policy of conditionality offering some

    concessions in exchange for the promotion of democratic reforms. The recent experience

    shows that this policy is not very efficient, and this is probably because the offer of EU is not

    consistent. Commission officials insist they dont have a mandate to offer Moldova more than

    substantial assistance and financial support and point to the Council where there is no

    majority in favor of Moldova. We approximated the positions of Member States towards

    granting Moldova a political perspective from national governments` public declarations and

    interviews with Moldovan and EU officials (Table 2).

    Table 2. Member States` position versus Moldova

    Category Member state Description

    Unconditional andactive supporter

    Romania Romania traditionally supported a membership perspective,even when Bucharest had cold relations with the former

    Moldovan government. The change of power in 2009

    relaunched bilateral cooperation. A convention on small border

    traffic was signed and the political decision was made for an

    EU integration partnership. Bilateral cooperation agreementswere signed for agriculture, environment, education, in which

    Romania will offer assistance and financial support for

    fulfilling EU criteria.

    Supporters Poland, Sweden,

    Hungary, Baltic

    states, Bulgaria

    Countries that offer support for Moldova`s EU ambitions,

    although fully aware this is not a short-term option

    Reluctant supporters Czech Republic,UK Open for discussing EU membership if some other MSs wouldput the issue on the table. Both reluctant on visas.

    Good willing skeptics Germany High level contacts between Chisinau and Berlin brought

    encouragements, assistance support and openness on visas

    issue, but Germany expects substantial reforms before any

    discussion on membership

    Indifferent skeptics France, Spain,

    Italy, Netherlands

    No clear position on Moldova, it seems not to be on their

    agenda. Italy is positive on visas. Netherlands focuses on

    human rights and minorities treatment.

    Indifferent but Visasskeptics

    Belgium,Denmark,

    Luxembourg

    No position on membership, opposing visa liberalization

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    It is a sad reality that EU enlargements followed a bloc typology, with the Union

    subsequently expanding towards South and East in several waves. Within its Eastern

    Partnership, the EU already engages Moldova in a way that is strikingly similar with EU

    Western Balkans relation: offering assistance and money, putting conditions and asking for

    reforms which in fact prepare the country for accession. With the current association

    agreements negotiated with Ukraine and Moldova, the EU`s relation with these countries

    actually means candidacy in practice but not in name.

    Moldova is already a member of the Eastern Partnership (EaP). As all EU policies, the

    relation with Moldova is highly path-dependent and the country`s advocates will have to

    accept this reality. Instead of trying to play geopolitics, they should focus on asking the EU to

    apply its own principles, to strictly apply the individuality principle stated in the EaPs

    launching documents and to judge Moldova purely on its own merits (Popescu, 2009: 35).

    2. The Republic of Moldova Government implication in achieving EU integration

    In order to achieve EU integration, the Republic Moldova Government has underlined

    some essential requirements that nowadays are in the processes of implementation or

    implemented already: actively involve the whole society, all the political forces and relevant

    foreign actors in the process in order to turn the Republic of Moldova into an European state

    with real prospects of joining the EU; acquire and promote European values and standards in

    all the areaspolitical, economic, social and legalby implementing the Copenhagen criteria

    and commitments made at the Council of Europe; bring the national legislation in line with

    the EU acquis; improve the legal and institutional framework needed to promote European

    integration at the level of Government in general and each ministry in particular, so that the

    European integration process becomes a major priority for each governmental entity; develop

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    bilateral relations with the EU member states; sign the Association Agreement with the EU;

    promote real economic integration with the EU, particularly by signing the Deep and

    Comprehensive Free Trade Agreement; launch the dialogue with the EU, for the purpose of

    signing a new Roadmap on visa liberalization, so as to obtain the liberalization of visa regime

    for the citizens of the Republic of Moldova; implement actions consistent with the Mobility

    Partnership between the EU and the Republic of Moldova; ensure the energy security of the

    country by means of the EU tools and join the European energy market etc.

    The current Government in Moldova seems to be an exception from the rule that only a

    membership perspective provides real incentives for reforms. The support for the EU will

    likely remain high among the Moldovan public but this public mood cannot assure the

    continuity of reforms. Without support and real carrots from EU, the current reformist

    coalition could fell apart and Chisinau could go back to the former faade Europeanization

    that constituted the norm between 2005 and 2009.

    The EU has the opportunity to make a difference in a region where its ambitions are not

    matched by its strategies. This opportunity should not be lost. The EU seems to be attractive

    in Moldova not because its policies there, but sometimes despite them. To be sure, the EU

    was surprised by the dramatic changes 2009 brought in Moldova and acted in its usual

    overcautious manner. But as Moldova is on the agenda, the EU should define clearer

    messages for Chisinau. The reluctance to make membership promises to Moldova should

    leave space for a flexible approach in which the EU would be ready to encourage and support

    Moldova`s political aspirations if the internal reforms will be carried out. Although this may

    seem ambitious in the enlargement fatigue context, in fact it would not constitute a major

    departure from what the EU already officially promised to Moldova.

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    Recommendations

    In order to enhance the overall political and economic situation in the Republic of

    Moldova, and to obtain more results regarding the security and stability matters at its future

    border with the Republic of Moldova, the EU has to use a number of tools, among which the

    most important would be the following:

    1. Membership perspective. This is the main tool that catalyzed the reforms in the states

    that have recently become EU members.

    For the Republic of Moldova, the process can follow two steps. The first step would be:

    that fact that in 2010 was launched negotiation on the Association Agreement and this is

    already a chance for Moldova to become a member. Depending on the results of the Action

    Plan implementation, Moldova could either remain with the status of neighbor or become an

    associate member of the EU. The fulfillment of the Copenhagen criteria, being the second

    step, should end with Moldova becoming an EU member.

    2. The liberali zation of the visa poli cy.The EU could issue multiple Schengen visas for

    a longer term for different categories of people. For example, the official people and

    delegations (members of the government and of the parliament), business people, scientific

    researchers should benefit from multiple Schengen visas on a 3-5 year term, the students,

    pupils, and university lecturers on a 1-2 year term etc. Euro-consulates should become a

    reality. The liberalization of the visa system would contribute to the intensification of the

    people-to-people contacts, as the Action Plan stipulates, thus diminishing very much the

    corruption in this area.

    It is important to note here that the readiness of the EU to start a visa liberalization

    dialogue with Moldova has motivated the Moldovan Government to focus more on what has

    to be done in this area and less on getting a clear promise on the prospects of visa

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    liberalisation with the EU (Secrieru, 2010: 64). The new practical approach of the Moldovan

    authorities has been proven by their recent decision to undertake an independent check of the

    realities in all four main chapters of the visa liberalisation dialogue, as they are formulated in

    the Road Maps for Visa Liberalisation of Western Balkans countries: 1) Document Security;

    2) Illegal migration, including readmission; 3) Public order and safety; 4) External relations

    and fundamental rights.

    Giving Moldova a Visa Road Map would not be a gift, on the contrary, the EU will

    condition its deliverance upon fulfilling concrete pre-conditions. We know that recently the

    European Commission has proposed to the EU member states to offer Ukraine a set of pre-

    conditions for granting a Visa Liberalization Road Map, such as: 1) issuing biometric

    passports; 2) creating a national authority in the field of migration; 3) adoption of legislation

    in the area of protection of personal data; and 4) presenting the questionnaire on the identity

    and travel documents personalization system.

    Paradoxically or not, Moldova has already fulfilled those conditions without been asked

    to. In this context it is stated that the citizens of the Republic of Moldova will be able to travel

    to the EU without a visa starting from the end of 2012.

    3. The management of the migration process,by legalizing the illegal immigrants that

    did not break the law in any other way, and establishing certain shares, initially for the

    seasonal workers, and later for other categories of workers.

    4. The asymmetr ical and real opening of an EU market for the producers from the

    Republic of Moldova. It is extremely important for this market to also include the products

    from Transnistria, thus the business people from this region would become interested to

    register as economical agents of the Republic of Moldova.

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    5. The support of the civi l society and the independent press in the Republic of

    Moldova.

    6. The supervision of electionsby the EU, not only by the OSCE.

    7. The real involvement of the EU in solving the Transnistr ian conf li ct. Here the EU

    could use different methods. For example, the member states could participate in actions

    within a multi-national military force that have as a goal the disarming of the paramilitary

    units in Transnistria and then the maintenance of peace in the region. The EU could use as a

    method of positive discrimination the liberalization of the visa system for the citizens on the

    right side of the Nistru River, and the opening of the market for the Moldovan economical

    agents that have official relationships with the state budget. At the same time the EU could

    use repressive means against Transnistrian leaders (refusals on issuing visas, blocking the

    European bank accounts etc.).

    But for this to achieve the EU has to define its official policy regarding the solving of

    the Transnistrian conflict, and to promote this policy consistently, orienting itself not only

    towards Russias interests but also towards the regional security and stability.

    The collaboration with Russia, Ukraine, the US and the OSCE should be promoted

    constantly, not from case to case. An ad-hoc monitoring group, which would have as

    members the EU and Moldovan representatives, would be a real help in this matter.

    The experience of the previous years shows that EU can strongly influence the situation

    of the outside countries, and none of the goals described above are impossible to reach, but

    the most important condition for the EU to realy influence the situation in Moldova is to take

    the political decision and to open the membership perspective for the Republic of Moldova. If

    the door that is not closed it simply means that it is open, and this thing should be officially

    acknowledged.

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    Bibliography:

    Activity Program of the Government of the Republic of Moldova European Integration:

    Freedom, Democracy, Welfare2009-2013

    Bucaneanu, S. (2008) Moldova i UE n Contextul Politicii Europene de Vecintate

    Realizarea Planului de Aciuni UE Moldova; februarie 2005 ianuarie 2008.

    Chiinu:Asociaia Adept and Expert-Grup.

    Chiril, V. (2008) Republica Moldova i Politica European de Vecintate. Chiinu:

    Asociaia pentru Politic Extern.

    Ghinea, C. and Panainte, S. (2009)Moldova`s relations with the European Union and the role

    played by Romania, Moldova. At the crossroads. Bucuresti: Soros Foundation Romania.

    Ghinea, C. (2012)EU-Moldova negotiation. What is to be discussed, what could be achieved?

    Bucuresti: Soros Foundation Romania.

    Litra, L. (2010) Some reflections on the timing of Moldovas negotiations of the EU

    Association Agreement.Chisinau: IDIS Viitorul.

    Popescu, N. and Wilson, A. (2009) The limits of Enlargement: European and Russian Power

    in the Troubled Neighbourhood. European Council on Foreign Relations.

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    Chisinau: Editura Cartier.

    Rodkiewicz, W. (2009) From `virtual` to European Democracy. The origins and

    consequences of the political breakthrough in Moldova, Warsaw: Centre for Eastern

    Studies.

    Secrieru, S. (2010) Integration reloaded - Streamlining Moldovas European course. The

    Finnish Institute of International Affairs.