Thus, the new law has as an annex the list of objects for which the Compensatory Remuneration is paid, based on the tariff headings of the Combined Nomenclature of Goods. Previously, the law contained vague and uncertain wording regarding the items for which the Compensatory Remuneration is paid. Specifically, Article 26 of the former law listed a series of equipment and media, using the misleading phrase “etc.” at the end of the list. This phrase was open to extensive interpretation, but also open to challenge.

The new law also sets out the mechanism for informing collective management organisations about potential payers of compensation. Thus, the Customs Service informs AGEPI about the importers of the items on the list annexed to the law, and AGEPI in turn subsequently informs the Collective Management Organisations about these importers. Such a support and information mechanism was missing in the old law.

The third defining provision in the new law concerns the amount of the Consumer Remuneration. That is, a fixed amount of compensatory remuneration, equal to 0.3% for the equipment and material supports listed in the annex to the law, was indicated. Previously the law stated that this fee could exceed 3 per cent, as the old law used the phrase “at least”.

All these legislative changes have been discussed over 5 years on the Economic Council platform, with the participation of all parties involved in this process, which comes to establish a clear and mutually fair and beneficial mechanism in the collection and payment stages of the private copying remuneration.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

Thus, 10 topics out of 17 targeting the objective “Developing remote interaction and promoting digital services for business” are achieved, including: introduction of the “digital default” principle for public services provided to legal entities; remote registration of a company, modification of the documents for setting up or winding up a business; the possibility of using electronic signatures in employment relations between employer and employee, including the signing of remote employment contracts; unilateral recognition of qualified advanced electronic signatures issued in EU states and the possibility to interact with Moldovan authorities remotely for diaspora and European investors; possibility to obtain qualified advanced electronic signature in Moldovan consulates and remote updating of digital signature; elimination of notification and authorisation as a personal data controller, primary digital issuance of permit documents, etc.

According to the report, of the 39 actions on the objective “Promoting e-commerce and e-payments”, 6 are already implemented and 24 more are in advanced process of implementation, most of which are the subject of the eCommerce Package, such as: updating with EU legislation of the domestic legislation on eCommerce; consumer protection in e-commerce; tax incentives for e-commerce and non-discrimination of online payments; rethinking of local tax and notification for e-commerce; creation of a Fintech Innovation Hub, etc.

For the achievement of the objective “Facilitation of customs procedures for online exports, stimulation of postal and courier services” out of 14 actions 4 are achieved, such as liberalization of the postal and courier services market; establishment of customs control zones in postal operators’ offices; obtaining the status of Authorized Economic Agent for simplified customs procedures by the universal postal operator and other interested operators, etc. Another 9 targets under this strategic objective are to be achieved in the next period. In this respect the Economic Council is working on: implementation of electronic issuance of certificates of preferential origin and facilitation of cross-border e-commerce by digitizing pre-arrival processing of postal and express consignments; simplification of customs declarations, including on re-import of returns in e-commerce, and integration of the CM23 declaration into customs procedures; elimination of the customs processing fee (once customs operations are digitized); the regime for daily workers in the courier business, etc.

The objective “Strengthening national platforms for e-commerce, attracting international operators to the Republic of Moldova” requires rethinking actions, given the international context generated by the COVID pandemic and the war in the region, as well as adding new sub-actions.

In the same context, the iCouncil platform discussed the progress of the development and promotion of eKYC, eNotariat and eEntrepreneurship initiatives, existing partnerships in the Roadmap process, donor support and the identification of other constraints and solutions in the process of digitizing the economy and promoting e-commerce.

The Roadmap for the Digitization of the Economy was developed in a joint effort of the Ministry of Economy, the Economic Council and development partners and was approved in July 2020 and updated annually. It has become the working agenda of the Advisory Council for the Digitisation of the Economy – iConsil, chaired by the Deputy Prime Minister for Digitisation, Iurie Țurcanu.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

The Economic Council Secretariat, in collaboration with UN Women Moldova and with the financial support of Sweden, is launching an information campaign among employers, both in the real sector of the economy and in the public sector, on the need for transparency of pay for filling vacancies through competitions. Business associations, public sector institutions and other stakeholders will also be involved in the process.

As part of the information campaign, employers will explore different models to create more transparency in the pay process. At the same time, they will learn more about important criteria for employees’ right to information and equal pay for equal work.

Currently, the legislative and regulatory framework of the Republic of Moldova does not provide clear instructions to employers on the need for public posting of salaries for competitive vacancies. On the one hand, employers are obliged by law to make public the proposed salary for vacant positions, and on the other hand, they are prohibited from disclosing personal data, the size of the salary being a component of this principle. It is therefore at the discretion of employers whether they disclose details of financial remuneration publicly.

Employers’ transparency of pay for vacancies aims to promote the principle of equal pay for equal work. In the Republic of Moldova, on average, women’s salaries are 14% lower than men’s salaries. In other words, women earn only 86% of the average male wage. The pay gap is significant and has a long-term impact on women’s quality of life, the increased risk of exposure to poverty and the pension gap between women and men.

To prevent this type of discrimination and to ensure the principle of equal pay for work of equal value, employers are urged to make public the level of wages for vacant positions available in companies. According to the legislation of the Republic of Moldova, when the work of women and men involves the same types of qualifications, skills, responsibilities and working conditions, the principle of equal pay must be respected.

According to the latest adjustments to the legal framework, employers are obliged to inform employees or their representatives, at least every two years, about the average remuneration per employee category or function, segregated by gender.

The information campaign will include a series of activities aimed at promoting the principle of equal pay, including: organising an information event with the participation of economic agents, business associations and other stakeholders; developing a series of explanatory and informative materials widely promoted on social media; developing a guide for the business community which will include good practices of companies implementing pay equity, as well as recommendations for implementing the principle of equal pay for equal work.

As a result of pay transparency, workers will be able to assess whether they are paid non-discriminatorily on the basis of gender, compared to other workers in the same company doing work of equal value.

This material is part of the Roadmap for Women’s Economic Empowerment, developed by the Secretariat of the Economic Council under the Prime Minister’s Office, with the support of UN Women and financial support from Sweden.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

The Economic Council has made public the study and recommendations on the development of e-commerce infrastructure in the Republic of Moldova, developed with the support of the UK Government’s Good Governance Fund. According to the study, FinTech companies are not yet sufficiently present in the Moldovan market. Thus, we have an uncompetitive market, and international financial technology companies are in no hurry to come to Moldova with their financial services.

FinTech companies, highly developed in the world, provide financial services using software and other advanced technologies, offering a sufficiently competitive alternative to the traditional banking sector to sell services and solutions to customers. Whether it’s money transfer, lending, payment technologies or virtual currencies, FinTech companies use technologies that provide low-cost solutions that are very attractive to businesses and citizens.

According to experts, FinTech companies are not even interested in doing business here because the legislation governing this business segment is still imperfect. Market entry and licensing costs are very high, innovation facilitators are absent and we have a relatively low rate of use of financial tools and technologies, which does not contribute to the reduction of fees for services, proliferation of innovative payment services.

To redress the situation, the experts have identified the constraints and come up with a series of practical recommendations, which will be taken up by the Economic Council and promoted for approval by the authorities. These include actions to improve the institutional and regulatory infrastructure, including the creation of a unit to monitor and develop the FinTech sector. There is also a need to ensure cross-sectoral coordination between the authorities concerned, as well as the creation of a Fintech Innovation Hub to ensure entrepreneurs are well informed and new business models are encouraged.

At the same time, the government is urged to formulate a FinTech strategy for the development of the sector, and interested companies are encouraged to partner for a dialogue with the authorities and strengthen their efforts to increase competition, increase consumer convenience and open new business opportunities for online merchants. Experts also recommended the creation of local digital platforms – marketplaces, which would provide access to eCommerce marketplaces as well as the necessary range of new and affordable associated financial services.

The presentation of the preliminary results of the study took place in the framework of the Advisory Council for the Digitisation of the Economy – iConsil, chaired by the Deputy Prime Minister for Digitisation, Iurie Țurcanu, and will be included in the Roadmap for the Digitisation of the Economy and the Promotion of eCommerce.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

The business community, member of the Economic Council to the Prime Minister of the Republic of Moldova, debated within the Working Group of the platform “Advisory Council for the Digitization of the Economy – iConsiliu” the draft Strategy for the Digital Transformation of the Republic of Moldova for the years 2023-2030, the legislative package on stimulating eCommerce, and made proposals for updating the roadmap for the digitization of the economy.

Deputy Prime Minister for Digitization Iurie Țurcanu told the meeting that the Strategy sets out 6 priority strategic objectives to be achieved by the Republic of Moldova by 2030: development of a digital society; a strong, innovative and competitive ICT environment; a secure ICT and digital environment; digital public services leading to a functional digital state; international cooperation and promotion of digital Moldova; digital economy.

According to Iurie Țurcanu, the ICT sector has become the main driver of digitisation and innovation in Moldova and is growing rapidly. In 2020, the IT industry has reached a share of over 3% in GDP, the ICT sector’s share in GDP is over 7%, and the share of innovative enterprises is 12.6% of the total number of enterprises. However, today only 127 out of 662 public services are accessible electronically, and this hinders economic development, the deputy prime minister added.

Minister of Economy Sergiu Gaibu, present at the debate, spoke about the promotion of the second legislative package on stimulating eCommerce. According to Sergiu Gaibu, the document aims to revise the regulatory framework for customs procedures, postal and courier services, and online payments to facilitate e-commerce.

During the meeting, the authorities called on the business community to come up with proposals for improving the documents, which could be sent through the Economic Council Secretariat.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

The influence of the regional situation on the economic activity in the Republic of Moldova, as well as the solutions to overcome the most pressing problems faced by the business community were discussed at the meeting of the Economic Council to the Prime Minister of the Republic of Moldova, chaired by Head of The Executive Natalia Gavrilița.

During the meeting with representatives of the business sector, Prime Minister Natalia Gavrilița said that the Government always has entrepreneurs’ priorities in its sights. Solutions for business are currently being developed, including setting a cap on gas prices, compensation for certain sectors whose competitiveness is affected or where gas consumption forms a large part of the price.

At the same time, the reform of the Entrepreneurship Development Organisation (ODA), formerly ODIMM, is being carried out. Thus, the budget of this organisation has been considerably increased from 140 to 340 million lei, which implies the implementation of a larger number of new programmes, including grants for investments in business upgrading or energy efficiency. 40% of the ODA’s guarantee fund is directed to agricultural companies which are suffering greatly in this period, said Natalia Gavrilița.

For their part, representatives of business associations, members of the Economic Council, listed the challenges they are facing at the moment and which the Government must continue to promote, which would improve the business environment in the country. Among the topics mentioned by business were the continuation of the processes of digitization of the economy, promotion of renewable energy projects and de-bureaucratization of business and support of the population by strengthening the purchasing powe

“We are now working on a quite serious programme to reduce energy vulnerability, each household will be integrated into a certain category and compensation will be made depending on income and consumption,” the prime minister said. “We are mobilising all international support so that we can get out of the crises we are going through and help the population and the business community”, Natalia Gavrilița added.

At the end of the discussions, Prime Minister Natalia Gavrilița called on the business community to get involved in promoting those reforms that would support a favourable investment environment and lead to an improvement in the standard of living in Moldova.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

With the help of the Qualified Advanced Electronic Signature, representatives of the diaspora, including entrepreneurs, can interact with state authorities, economic agents or other citizens remotely – from their country of residence. This means they can submit online applications, apply for e-services, sign contracts with utility providers, and access a wide variety of other services for which they previously had to travel within the country.

For entrepreneurs who have a business in Moldova, and cannot be physically present here, the digital signature will help them to submit electronically signed reports and declarations to state institutions remotely. It is now also possible to remotely apply for permit documents, including signing business contracts and staff employment agreements via the Internet.

These services have also become available from outside Moldova after the Parliament adopted the first legislative package for the digitisation of the economy in November 2021. The document implements a whole series of key actions from the “Roadmap for boosting the process of digitisation of the national economy and development of e-commerce”, developed by the Ministry of Economy and the Economic Council to the Prime Minister, with the support of development partners (EBRD, IFC, USAID, GIZ, UK GGF).

The Economic Council is now working on a new legislative package that, among other things, will allow for the provision of a wide range of remote notarial services and the promotion of e-commerce.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

According to data from Moldelectrica, there are currently 44 registered investment projects in the field of renewable energy production, which would qualify for the tender, with a total power of over 1000 MW. About 80% of these projects concern wind energy. Projects developed by foreign companies target about 50% of the 1000 MW requested.

However, in order to carry out their projects on the territory of our country, these investors must obtain the so-called eligible producer status, which is offered in the auctions that would distribute the 165 MW allocated by Government Decision No 401 of 2021 for such projects.

But according to Marcela Lefter of the American Chamber of Commerce in Moldova, the organization of the auction is delayed, which discourages investors in the field. “Moldova’s energy strategy shows that by 2020 we should have 400 MW produced from renewable sources. Also, by this date, a first interconnection line with Romania (LEA400kV Vulcanesti-Chișinău) should have been completed. Today, none of this has been achieved,” Marcela Lefter told the Economic Council Secretariat.

At the same time, according to the AmCham representative, the business community is concerned about the Government’s intention to increase the quota for the “fixed tariff” support scheme of 90 euro MWh for small renewable energy projects up to 1MW for the next 15 years. The business sector argues that only the application of competitive mechanisms – such as the tendering – can reduce the impact of the tariff on the final consumer.

According to Government Decision No 401 of 2021, the Government must auction 105 MW produced by wind turbines and 60 MW produced by solar energy.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

At the initiative of development partners – the Foreign, Commonwealth & Development Office (FCDO) and the UK Embassies in Moldova and Georgia, on July 20 an exchange of experience in the field of gender equality and social inclusion (GESI) was held between the Economic Councils of Georgia and Moldova.

The purpose of the online meeting was an informal learning exchange and sharing approaches to gender mainstreaming in the day-to-day activities of the Economic Councils and to identify opportunities for integrating GESI considerations into their own roadmaps and action plans for achieving outputs and outcomes

The gender experts of Georgia and Moldova shared their steps followed in gender mainstreaming at the institutional level, what has been achieved and what is planned to be implemented.

The gender expert from the Economic Council of Moldova shared the best practices regarding the development and launch of the Roadmap for the economic empowerment of women and about the synergies consolidated within the newly created group within the Council.

Among the topics discussed in the meeting were also addressing social and gender issues in the green economy, social entrepreneurship, and public procurement reform. Also, gender aspects were highlighted in climate change and tourism development.

The virtual exchange of experience on GESI will continue with the engagement of experts with a focus on good practices in addressing women’s economic empowerment.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

Download BizRadar https://bizradar.gov.md/

Businesses are being urged to speak out about the burden of state control and sanctions imposed by regulators through a survey launched on the business community app BizRadar. The Secretariat of the Economic Council to the Prime Minister is going to use the results of the survey to initiate reforms in the area of state control and sanctions related to business activity.

The survey collects data on the frequency of controls and sanctions applied, problematic control areas, specific problems faced by entrepreneurs, including: frequent controls that take too long; disproportionate, unjustified or not clearly defined and discretionary legislative requirements, sanctions applied by control bodies; inefficient control procedures; corruption or discretionary and abusive decisions applied by control bodies

We urge entrepreneurs to create a user account in the BizRadar app, available for download to their mobile phones, to help inform and guide reforms.

Afterwards, also in the app you will be informed about next steps and consulted on potential measures for business problems.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.