Moldovan pro-EU parties close to agreeing majority coalition

By bne IntelliNews July 16, 2015

bne IntelliNews -

 

The three main pro-EU parties in Moldova are close to forming a new coalition that, in contrast to the previous one formed after the November 2014 parliamentary elections, should enjoy a formal majority in parliament, deschide.md reported. It quoted Liberal Democrat Party (PLDM) leader Vlad Filat, speaking on July 15 after seven-hour talks with his partners Mihai Ghimpu of the Liberal Party (PL) and Mihai Lupu of the Democrat Party (PD).

The drafting of a new ruling strategy is underway, Filat said. The new coalition would be officially announced within several days, he added.

The three parties promised, before the November elections, to form a coalition but failed to reach an agreement afterwards, paving the way for a fragile pro-EU minority coalition that had to depend on the informal support of the Communist Party (PCRM). Prime Minister Chiril Gaburici resigned on June 12 after allegations that he forged his school diplomas.

The negotiations for the formation of a new, broader and more robust ruling coalition have been accelerated by the European Commission freezing its support for the country until a new government is formed. The IMF has also suspended talks with Moldova amid the political turmoil, placing a question mark on the country's public finance sustainability.

However, any pro-EU coalition would face far more scepticism from the country's foreign, political and financial partners after the same parties failed to start judicial reforms and clarify the bank frauds after the November parliamentary elections.

The real and irreversible “Europeanisation” of the Moldovan political elite has failed, as well as the efficiency of the European integration processes, according to the State of the Country Report 2015 drafted by the local Expert Grup think-tank, in partnership with the German Friedrich-Ebert-Stiftung Foundation, and quoted by Deutsche Welle.

Moldova cannot restore its credibility among foreign financiers this year, former finance minister Veaceslav Negruta said, quoted by Deutsche Welle.

The political statements on the bank frauds have scared away many foreign financiers, he explained, while the lack of a stable government and of an agreement with the IMF prevents the resumption of talks regarding the government's foreign financing.

Failure to meet foreign financing targets would generate a MDL5bn (€250mn, or nearly 5%-of-GDP) fall in the state revenues this year, Negruta explains. Even so, the country could manage its public finances but the problem is there is no government in place to amend the budget planning, he stressed.

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