BUILDING INSTITUTIONAL CAPACITY OF THE MINISTRY OF FOREIGN AFFAIRS AND EUROPEAN INTEGRATION Award ID: 00048461 Project ID: 00058633 Project Progress Report: 1 January 2012 - 31 March 2015 Prepared by Traian Turcanu, Project Manager Project funded by: Government of Sweden Royal Norwegian Ministry of Foreign Affairs Austrian Development Cooperation Open Society Institute Romanian Government 1 Background The “Building Institutional Capacity of the Ministry of Foreign Affairs and European Integration” Project was initiated in 2008 to respond to the needs of the Government and the Ministry of Foreign Affairs and European Integration (MFAEI) in implementing institutional reforms, as well as to assist it in the process of regional cooperation and European integration. In 2010, the Project has been expanded in order to provide capacity-building assistance to the Moldovan institutions involved in negotiating the Association Agreement between the European Union and the Republic of Moldova. The new phase of the project for 2012-2015 had the overall Goal of supporting the Government of the Republic of Moldova (MFAEI and other actors) to prepare for, negotiate and implement an Association Agreement (AA) with the European Union (EU), including a Deep and Comprehensive Free Trade Area (DCFTA), and support the Visa Liberalization dialogue. The Goal was to be achieved through two main directions of action: The first component has the objective to strengthen the institutional capacity of the MFAEI, so that it can exercise its functions in a more efficient manner, operate transparently and ensure the fulfillment of Moldova’s European integration commitments. The second component’s objective was to contribute to the development of the capacities of other public institutions in key areas that need support for a successful negotiation of the AA and DCFTA and for the effective implementation of related commitments. On this component, the Project brought in high quality short-term international expertise to respond to urgent needs and to complement other assistance interventions, such as the long-term policy support provided by the EU High-Level Policy Advisory Mission and other Donors’ assistance. As EU’s Comprehensive Institution Building facility has not become fully operational at the time of this report being developed, the Project’s inputs had been vital to the reform progress in specific key areas. Several major events have taken during the implementation of the project, including ones of a historical importance for the country: the Visa Liberalization (visa free regime) for Moldovan citizens with biometric passports granted on 28 April and the signature, on 27 June 2014, and subsequent ratification by the Moldovan Parliament, on 2 July 2014, of the most ambitious agreement negotiated so far between the EU and RM: the EU-RM AA including DCFTA. While the visa free regime provides for a substantial enhancement of mobility and people-to-people contacts1, the AA strongly impacts RM’s political cooperation with the EU and the economic integration into the EU internal market. DCFTA is one of the most significant mutual benefits of the AA, bearing undisputable importance for trade and economic growth, jobs creation, prosperity and stability in the country. AA/DCFTA provides a roadmap for the further modernization and democratization of the country offering Moldova more direct access to the largest single market in the world. With that, RM will create new opportunities for development and growth benefiting Moldovan businesses and citizens directly. This brings RM a step closer to its goal of eventually becoming a full member of the EU. The European Parliament gave its consent to the EU-RM AA on 13 November 2014. In his statement before the European Parliament Plenary, Commissioner Hahn said that “Republic of Moldova is often called the "frontrunner" of the Eastern Partnership, for it has achieved so much in a short period of time in its bilateral relations with the EU. We have negotiated in record speed the all-encompassing AA including its highly complex DCFTA. The Republic of Moldova is the first country of the Eastern Partnership that has a visa-free regime”. While rapporteur Auštrevičius further underlined that “The ratification of the EU-RM AA is a clear acknowledgment of the success of Moldova’s political and economic reform process, which establishes its European prospects and bears witness to its determination eventually to join the EU”, the Parliament Resolution reads that “…in the last few years, thanks to the political determination of its government, the Republic of Moldova has made significant progress in reforms and in strengthening relations with the EU” and that the AA represents “…a strong sign of recognition of the reform efforts and ambitions of the Moldovan people and authorities and of the substantial progress achieved in the latest period”. The Agreement has been put in provisional application as of September 1, 2014, by the end of the year being already registered first progress in its implementation. Thus, the efforts made by the Moldovan authorities have paid off and the developments attested that the EU and the RM are committed to mutually deliver on their commitments. “This Agreement, as you know, is the product of thorough and intense negotiations - and I take this opportunity to thank all those who, for four years, worked for the day of June 27, 2014 to become reality - colleagues in the ministries, local and central public authorities, civil society, journalists who have consistently reflected this process and, of course, external partners” said Moldovan Prime Minister Leanca2. 1 More than 360,000 Moldovans with biometric passports have travelled to the EU from April 2014 to January 2015. Travel to the EU has offered to many of them the possibility to interact with European citizens get acquainted with EU realities and standards of living 2 http://www.gov.md/print.php?l=ro&idc=436&id=7866 2 In order to achieve a steady progress in the implementation of the AA the Government of Moldova has negotiated and endorsed with the EU the Association Agenda and approved on June 25, the National Action Plan for the Implementation of the AA - documents which detail into concrete actions the provisions of the Association Agreement for the years 2014-2016. The results produced during the Project implementation process have impacted, through direct and indirect contributions, on the successful conclusion of negotiations and, consequently, signing and ratification of the AA. Noteworthy is the fact that the signature and ratification of the EU-RM AA progressed ahead of the initial plans, and the project had to show flexibility to adjust its plans and activities to the often changing needs of the beneficiaries. As a result, the Project’s contribution materialized in timely, commonly urgent, focused on emerging gaps, and tailored assistance to the MFAEI and other key Line Ministries in meeting specific pre-conditions for the finalization of the negotiation process in a record time. Executive Summary In March 2015, the “Building Institutional Capacity of the Ministry of Foreign Affairs and European Integration” Project concluded its multi-year cycle as an intervention providing technical support to help Moldova promote its foreign policy priorities and, primarily, its EU integration agenda. Two important developments marked the Project in 2012 and, subsequently, in 2014. First is the movement of the Ministry towards larger responsibility and ownership of project results on the first project component, engaging in the direct implementation of a number of the activities through the national procurement and financial systems, while UNDP has been overseeing this gradual transfer, performing quality control, monitoring and evaluation. Second is the independent Mid-Term Evaluation that provided important observations, conclusions and recommendations aiming at further strengthening of the project results. The recommendations had been discussed among partners in detail, and subsequently a plan of actions had been developed for their implementation with the suggested measures being closely monitored. COMPONENT 1. Throughout the project implementation, Moldovan national capacities to reach out for and rally foreign support, as well as carry out negotiations and prepare for the implementation of the Association Agreement with EU have been strengthened as diplomats and public servants were able to more intensively participate in multilateral and bilateral meetings, consultations and negotiations, to exhibit proactiveness and promote Moldovan foreign policy goals in visits on high-priority issues, to expand knowledge and skills in numerous study tours, to network with European top-level decision-makers. The finalization of the negotiations on the AA had intensified the exchanges between EU and Moldovan officials and civil servants requiring even greater mobility for Moldovan diplomats and civil servants. With the project support, over 150 persons received a possibility to participate in EU integration related events abroad, and over 30 MFAEI and other ministries’ employees have enlarged the knowledge and developed skills necessary for the effective performance of their functions through participation in study visits and in training activities abroad. Project supported these exchanges thus contributing to speeding up the final signature of the AA/DCFTA, as well as to further developing the capacities needed for the subsequent implementation of commitments