OREANDA-NEWS. January 15, 2010. Interview given by Prime Minister Vlad Filat to the MOLDPRES Agency

Question: Mr. Prime Minister, 100 days have recently passed since the swearing in office of the government which you lead. To what extent did your expectations meet the recorded results? Did the government manage to cope with the set goals?

Vlad Filat: There was a not at all easy period, during which we had to undertake energetic measures to stabilise the situation in the economy, social field, etc., as well as to create the basis for the re-launch of the country s development in many areas. The "heritage" left by the former government was troublesome - the country is in a deep economic crisis, isolated at the external level, the society is divided, the democratic institutions are non-functional, etc. Moreover, the former government did not ensure a civilized power transfer.

The present government had to carry out during three months what the former government was to do in one year - elaborate a budgetary and fiscal policy, the Medium-Term Spending Sheet, State Budget law, etc. We started from the very beginning the dialogue with the development partners, and we managed to lay the foundations of normal cooperation relations, we re-launched the relations with the neighbour countries, as well as with the other states, we re-dimensioned the collaboration within the regional organizations, got clear-cut prospects in the relation with the European Union, we started important reforms in justice, education, economy, social field. All these reforms will yield results during time, which will be felt by our citizens.

In general, we managed to achieve the goals set for this period. From the very beginning, I said that, in the state in which we took over the country s leadership, our aim was to survive. Or, we have managed much more than this.

Q: Nevertheless, your political opponents come with certain criticism.

V.F.: The opposition should do its job and look for the government s gaps. They say that, in the conditions of a strong opposition, the level of government s efficiency is high. I do not know to what extent this statement is valid in our case. Political analysts and the civil society should be the ones to give assessments to the activity of both the opposition and the government. From this viewpoint, the messages coming on behalf of the society for us are happy. The change is already being felt in the society, although still too weak. But anyway, there is more optimism, more confidence in future.

No matter how paradoxically it would seem, we were hugely helped by the communists in this respect. The apocalyptic pictures drawn by the former government, which was trying to prove that the life will end in Moldova without communists, did not come true. The people continue to receive salaries, pensions, scholarships, allowances; the access to the medical insurance and social assistance has slightly increased; the teachers salaries grew; such earlier declarative notions as independent justice, free press, human rights, market economy, European integration become reality, etc.

Q: In connection with the European integration - the process of negotiations on the Moldova - EU Association Agreement started just on the first days of this year. What are the prospects in this respect?

V.F.: The European integration is our principal objective, and we will go step by step towards its achievement. Moldova deserves and will be a member of the great family of the European states. Over the last years, only statements have been made on this issue, not also practical actions. This seriously affected Moldova s image at the external level, and compromised our European road to a great extent. Therefore, immediately after taking over the government, we started concrete actions to get closer to EU.

I will mention the fact that I paid the first official visit as prime minister to Brussels. High European officials visited us, such as: Swedish Foreign Minister Carl Bildt, who was chairman-in-office of EU s Councils of Foreign Ministers in that period; EU Commissioner for External Relations and European Neighbourhood Policy Benita Ferrero-Waldner. The government fostered the contacts and communication with the EU member states, including at the level of prime ministers (Romania, Germany, Italy, France, the United Kingdom, Poland, Hungary, Belgium, Sweden, Estonia, etc.) within bilateral meetings and multilateral events. We boosted the Moldova-EU dialogue within different working meetings. Much work was done to this end, and the starting of the negotiations on the Moldova - EU Association Agreement is a logical result of our efforts.

In context, I would like to stress the fact that the dialogue with EU on the liberalization of the visa regime for the Moldovan nationals will be launched in 2010. Also this year, we are to start the talks on the setting up of the Comprehensive Free Trade Zone in the context of the negotiation of the Association Agreement.

I am optimistic about the prospects of the Moldova-EU cooperation and the status of our future relations. Each citizen of Moldova will feel the benefits of the rapprochement with EU in a not so far future.

Q: Which are the government s expectations in the economic field?

V.F.: Immediately after coming to power, we elaborated and approved a plan on stabilization and economic re-launching. Under this plan, it was possible to de-block the ties with the development partners, as well as to start actions of stabilizing the public financing, resuming the economic growth and ensuring an efficient and just policy of our citizens social protection.

During the first 100 days of government, we started implementing actions to remove the administrative restrictions and create a friendly business environment, de-monopolize the import and export, apply innovative technologies for economic agents. We also started the reform of the juridical and institutional framework of regulating the entrepreneurial activity.

Our efforts to this end will continue in 2010 as well. To re-launch the economic growth, we will reduce the administrative and fiscal burden to do business, will stimulate the public and private investments.

The 2010 state budget law and the budgetary and fiscal policy, which we managed to elaborate and adopt in a record time, give us the necessary instrument to work this year and re-launch the economic growth. We forecast the overcoming of the economic recession in the first quarter of 2010, a gradual economic growth from 1.5 per cent in 2010 up to 5 per cent in 2012. The share of the budget deficit in the Gross Domestic Product (GDP) will gradually decrease from 9 per cent in 2009 to 3 per cent in 2012, and the continuous current deficit will be stabilized at about 10 per cent of GDP.

Q: To what extent will the government manage to cope with the social sector s needs in 2010?
V.F.: The fulfillment of the obligations in the social sector represents a priority for us. I cannot but notice with pride the fact that, in conditions of economic crisis, we managed to identify resources to implement a new social assistance system, which sees a 40-per cent increase of the social association allocations in 2010 against 2009, including the unemployment benefits. The allocations will amount to 630 million lei. We also increased the share of the one-time child-birth allowance by 300 lei in 2010: the allowance for the first child will stand at 1,700 lei, and 2,000 lei - for each next child. Starting 2010, we began a differentiated increase of the child-care allowance for the insured and non-insured people.

Despite the financial restrictions, the government preserved the current level of scholarships and the accommodation fee in hostels for students.

Beginning with this year, the state budget financing grew by a 5.4-per cent increase of the transfers to the mandatory health insurance funds against the level approved in 2009. For 2010, the share of transfers will be 58 per cent of all the funds of the mandatory health insurance.

In crisis conditions, we have managed to re-direct 31.1 per cent of the basic fund of the mandatory health insurance to the primary medical assistance, which is by 1.8 per cent more against 2009, and increased by 40 per cent the spending for the compensated medication against 2009. We created conditions for the increase of the beneficiaries of health insurance policies, which cost dropped by 160 lei to 2,478 lei for 2010. At the same time, the cost of the insurance policy was set at 619.5 lei for farmland owners.

Our actions will be further aimed at covering the necessities in the social area, and I assure you, the favourable effects will be felt by each citizen.

Q: Mr. Prime Minister, which are the government s short-term priorities?
 
V.F.: In the social and economic field, I would mention such priorities as: lasting economic growth, increase of the number of well-paid jobs for our citizens, change of the model of the country s economic development to ensure the attractiveness for investments and innovation, as well as the external competitiveness of the goods made in Moldova, etc.

As for the functioning of democracy and the state based on the rule of law, I would name: pressing ahead with the reforms in justice, creating the best conditions for ensuring the freedom of press, local, university autonomy, good work of the democratic institutions, enhancing the degree of protection of the fundamental rights and freedoms.

We will continue making efforts to identify an efficient and viable solution to the Transnistrian conflict. In this respect, we rely on the support of our foreign partners. I am sure that we will manage to progress in this respect while using the opportunities given by the 5+2 format of negotiations.

All these will get us much closer to attaining the priority objective - integration into the European Union.

Q: In the end, I cannot but ask you about a visit to the USA which you are to pay on the next days.

V.F.: This is a very important and necessary visit. Moldova s relations with the United States represent one of the priority goals of the country s foreign policy.

Within this visit, I will have more important meetings with US officials, during which aspects on the bilateral cooperation will be tackled. The agreement on full financing from the funds of the Millennium Challenge Corporation (MCC) on the projects, Transition to a Performing Agriculture, and Roads Networks Rehabilitation, as well as a memorandum on principles and procedures between Moldova and the North Carolina state on the wish to strengthen the good relations are to be signed as well. The assistance will be provided in the form of grant for Moldova s economic development, and will contribute to improving the roads infrastructure and increasing the production and sale of high-quality farm products.

I am sure that this visit will contribute to the development of the bilateral relations, their advancement to a new level.

Mr. Prime Minister, we thank you for the interview and we wish you success further on.