"European Perspective for the Republic of Moldova"
Südosteuropa-Gesellschaft, Niederpoecking,19 January 2004

I would like to thank the Südosteuropa-Gesellschaft for taking the initiative to organise this conference. Do not consider this as the usual polite remark at the beginning of a speech. I sincerely believe that we need to determine Moldova's place in Europe and this high level conference, bringing together decision makers and policy analysts from throughout Europe as well as Moldova itself is a very good way to start the New Year.

Moldova and the Stability Pact – this has not always been an easy relationship. When Moldova joined the Stability Pact in June 2001 it did not happen without opposition from some of our partners. Most notably, the problem of Transnistria had to be explicitly set aside and remain outside the Stability Pact involvement, when Moldova joined the Pact. But even beyond that, questions were raised regarding the adequacy of considering Moldova a part of South Eastern Europe. Are not the problems Moldova faces quite different from those in South Eastern Europe for which the Stability Pact was created? Is not Moldova's historic, political and economic background as a part of the former Soviet Union rather different from that of the rest of South Eastern Europe?

The most important reason for these concerns is, in my opinion, the still outstanding decision as to the place Moldova has on the European Union's political map. This decision needs to be addressed in Brussels and by all EU member states. But Moldova also has to firmly and convincingly decide in which direction it sees its future. This decision of course needs to be taken in full knowledge of the obligations membership implies.

The current round of enlargement will significantly shift the European Union towards the East. From 1 May the EU will be affected by developments in Eastern Europe to a much greater degree and will also have to redirect its policy making in this direction. From 2007 onwards, we will probably have a common border with Moldova and other Eastern European countries. This of course implies that we need to think about our relationship to these new neighbours urgently. The EU's European Neighbourhood Concept – or Wider Europe as it was called before – is an important and very welcome step in this direction.

Despite these difficulties and hesitations, Moldova has been one of the more active participants in the Stability Pact and held the regional co-chairmanship of the Working Table on Security Issues from July 2002 to June 2003. In the beginning of March, with the kind support of the Friedrich Ebert Foundation, we will be in Chisinau at a conference to take stock of Moldova's engagement in the Stability Pact up to now and hopefully lay out the potential for further and deeper participation in some areas.

The Stability Pact remains committed to continue efforts across the board to integrate Moldova into as many activities and programs as is practically feasible.  At this point, I have to note, that this is of course a two-way street, requiring commitment and engagement from both sides. As with all work under the Stability Pact, this will be done in conjunction with a wide variety of international partners and collaborators of which the EU is the most important.  To give you an impression of the breadth of Moldova related activities; let me mention some of the most prominent examples:

Free trade is certainly a very positive example of Moldova's engagement in the Stability Pact. Once it joined the Stability Pact the country has aligned itself with the Trade MoU and has almost caught up with the other seven partners in finalising its integration into the network of FTAs. The final outstanding agreements will be signed hopefully within the next few months. Implementing these FTAs will then be the next challenge.

Moldova is also actively participating in the SP Media Task Force. A Media Working Group comprised of media professionals has been established in Moldova, providing feedback on priorities and projects in the country and developing strategies for media support and monitoring media legislation. While the positive tendency is undeniable, the media sector – particularly concerning the independence of the public broadcaster and several parts of media legislation – still remains an area of concern.

Moldova is furthermore involved in the so-called Athens process, which aims to create a Regional Energy Market in SEE modelled on the EU internal market.  Moldova is an observer to the process. While it has requested full participation, this has been met with reservation by some of the partners and in some cases for good reasons. Action speaks louder than words. And the actions undertaken by the Moldovan authorities are not always fully in line with the conditions of the relevant Memorandum of Understanding. There is potential for improvement, and it is up to Moldova to make use of it.

Moldova is a full participant in the SP Investment Compact and has signed the Ministerial Declaration on developing the investment climate in SEE in July 2002.  The Investment Compact in conjunction with the Business Advisory Council recently held an investment promotion mission to Moldova where they met with the government and representatives of domestic and international business regarding the investment climate – which continues to be quite difficult in particular regarding the proposed new investment law.

Regarding the fight against organised crime, Moldova's participation in the Bucharest based Transborder Crime Fighting Centre is an example of its willingness to engage in regional cooperation in view of addressing joint problems with European partners.

But there are also numerous Stability Pact activities where Moldova's seat has remained empty most of the time. The reasons can be as simple as the lack of training – particular language training – and limited travel budgets. But the political message is one of disinterest. Support is available, but the effort to engage has to come from Moldova.

I think these examples give a clear indication of how important it is to enhance the links between the rest of South Eastern Europe and Moldova. Many of the problems we are facing in South Eastern Europe cannot be addressed in a geographically exclusive manner. Problem resolution would clearly benefit from a broader geographical approach, most prominently regarding the fight against organised crime or infrastructure/energy issues.

Organised Crime, including Human Trafficking and illegal migration in general, are issues that clearly link South Eastern Europe with the countries of Eastern Europe. Efforts to tackle these issues in South Eastern Europe can only have limited success, if they are not coordinated with similar activities in Eastern Europe. Specific task forces and initiatives have been established within the Stability Pact to coordinate and organise regional activities in these areas: The Stability Pact Initiative to fight Organised Crime (SPOC), the Human Trafficking Task Force as well as the Migration Asylum and Refugee Return Initiative (MARRI), to name but those directly involved.

Regarding infrastructure, the transport strategy in SEE is based upon the Trans European Networks and several of the Corridors take in parts of the “European Neighbourhood” countries, hence co-operation and co-ordination is vital.  The SEE countries will not be able to exploit the full benefits of the evolving regional energy strategy unless mechanisms to co-operate with some of the Eastern European countries are identified and put into place.

If we accept that the problems we need to address are of a broader geographical nature, we also have to make sure that the instruments available fit this requirement. Let me thus also say a few words about the European Neighbourhood Concept and the relationship to the Stability Pact.

Many of the instruments available to the international community to assist Moldova are very different and in some cases less far reaching than those available to other Stability Pact beneficiary countries in South Eastern Europe. In this respect the EU's European Neighbourhood Concept is a very welcome initiative, setting the European approach to Moldova on a clearer footing and to a degree harmonising the instruments available in support of Moldova with those available for South Eastern Europe.

There are a number of areas where the European Neighbourhood Concept has obvious implications for South Eastern Europe in general and the Stability Pact in particular. Moldova provides geographical overlap between the areas covered by the European Neighbourhood Concept and the Stability Pact. Furthermore, there is a certain thematic overlap of issues, which would clearly benefit from a broader geographical approach as mentioned earlier, clearly connecting at least the Eastern part of the European Neighbourhood area and South Eastern Europe.

Finally, the European Neighbourhood Concept aims to promote regional and sub-regional cooperation and integration as preconditions for political stability, economic development and the reduction of poverty and social division. Enhancing regional cooperation is also one of the primary tasks of the Stability Pact. While the two areas are certainly based on a different foundation, in particular concerning their European perspective – which has proven to be the crucial incentive for most of the reform processes in South Eastern Europe – there are nevertheless certain lessons to be learned from the work of the Stability Pact in South Eastern Europe. This refers in particular to the development of formal and informal regional fora as well as instruments to promote cooperation in certain sectors.

The role of the Stability Pact is one of Complementarity to the Stabilisation and Association process regarding the Western Balkan countries – the Thessaloniki EU-Western Balkans Summit has requested the Stability Pact to complement and support the regional cooperation element of the SAP – as well as to the accession process regarding Romania and Bulgaria. A similar form of cooperation and coordination between the Stability Pact and the European Neighbourhood Concept regarding Moldova would be welcome and beneficiary.

Coming to a close let me reiterate the importance of addressing the issue of Moldova's European perspective. From the point of view of the Stability Pact, the issue is quite clear. The aim of the Pact is threefold: to facilitate regional cooperation, to support the countries of South Eastern Europe in living up to their international commitments, and to facilitate their integration into European and Euro-Atlantic structures. But the how and when is of course still a matter of debate, as it seems as much in Brussels and the EU member states as it is in Chisinau. I therefore look forward to the discussions over the coming days.