Position paper on the inclusion of the reform of the state companies sector in the National Action Plan for Accession to the European Union 2023-2027

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Publishing date: Friday, 13 October 2023
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The deetatization and restructuring of the economy, as well as the good governance of the sector of state-owned companies and public property as a whole, are key components of chapter 20 of the acquis communautaire (enterprise and industrial policy), but not of the PNAA 2023-2027. On 28.09.2023, the Ministry of Foreign Affairs and European Integration submitted to public consultations "the draft government decision on the approval of the National Action Plan for Accession to the European Union, for the years 2023-2027"  (PNAA). The draft plan was developed based on the recommendations of the Commission Analytical report on Moldova’s alignment with the EU acquis, published on February 2, 2023 . However, it should be mentioned, that the European Commission's Report was drawn up based on the answers of the Republic of Moldova to the EU accession questionnaire . The questionnaire completed by the authorities of the Republic of Moldova follows the chapter structure of the community acquis and measures the alignment of domestic legislation to the acquis. Section I letter "B" of chapter 20 of the questionnaire is dedicated to the privatization and restructuring of the national economy. The questions in this section assess the degree of restructuring of the economy and the quality of governance of the state-owned enterprises. Following the analysis of the responses to this chapter of the questionnaire, the European Commission emphasizes in its Report the need to "continue reforms and increase the attractiveness of the national economy, in particular, for foreign direct investments".

The need to reform the state-owned enterprises sector is also emphasized in the Commission Opinion on the Republic of Moldova’s application for membership of the European Union. According to the findings of the EU Commission expressed in the Opinion on the application for membership of the Republic of Moldova, the state-owned enterprises sector continues to suffer due to the lack of appropriate corporate governance practices, due to inefficiency, and austere oversight, which further undermines private sector investment and economy-wide competitiveness and poses major fiscal risks. In this regard, the Commission recommends prioritizing on the government's agenda the reform of the sector, in particular, the improvement of corporate governance of state-owned enterprises sector, the reorganization, privatization, and liquidation of state-owned companies that do not pass the triage criteria . 

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Tags: Natalia Chitii

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