Moldovan Economic Development Ministry launches governmental programme “We Succeed,” to create simpler, more competitive business environment

The Economic Development and Digitalization Ministry (MDED) today launched the government programme, “We Succeed,” an initiative meant to support the creation of a simpler, easier-to-manage and more competitive business environment, aligned with European Union standards. The programme today was presented by Deputy Prime Minister, Economic Development and Digitalization Minister Eugeniu Osmochescu.

The reform aims to create a business environment comparable to the one of EU countries: clear, simple, with reasonable requirements, reduced costs and minimal risk of sanctions. The authorities thus intend to selectively transpose European legislation, based on the most favorable practices from member states, in order to retain and develop businesses of Moldova and attract foreign investments.

“Only together can we succeed in achieving the goals we have set and everything we have planned along our European path. That is why, we ruled to launch a campaign that will target society as a whole, the business community and citizens. Through this programme, we are coming with certain initiatives, but at the same time, we very much want to showcase the achievements of Moldova, of its citizens and of the business environment and to present success stories,” said Eugeniu Osmochescu at a news conference.

One of the priority directions of the “We Succeed” Programmeis the digitalization of services for the business environment. Deputy Prime Minister Osmochescu emphasized that 78 per cent of services for entrepreneurs were presently digitalized and the authorities aim to increase this share on the coming period.

Also, the focus will be placed on deregulation and simplification of the conditions for conducting business.

“We know very well that, in Moldova, we always tend to regulate far more than required, we overregulate. Therefore, we will align ourselves with the deregulation packages developed in the European Union. It is about the Omnibus packages, which cover democratization, digitalization and other areas,” the deputy prime minister said.

In the context, Eugeniu Osmochescu underlined that MDED was reviewing more than 300 normative acts, and as a result, 20 permissive acts have already been identified for elimination.

“We are examining more than 300 normative acts, in order to identify hidden permissive acts. Unfortunately, we have identified more of them and decided to do this in a structured and horizontal manner, checking all legislative and normative acts existing in Moldova, because, regrettably, in many cases measures were introduced ‘through the back door’ and, to the detriment of reform efforts, certain bureaucratic requirements were implemented which now represent a burden for the business environment. We are preparing a package through which, from the outset, we already know that 20 permissive acts will be eliminated, as we have identified them as being abusive in relation to the business community,” the official said.

At the same time, MDED has identified 444 legislative and normative acts that regulate the provision of services in Moldova. Of the total number, 106 will be amended, in order to simplify them and align them with European Union rules, to streamline the provision of services, as well as to make them more efficient and centralized.

Another measure to be implemented concerns a zero customs duty on the import of raw materials under the customs regime of final destination and on equipment.

“A producer in the bakery sector or in the meat products sector who imports raw materials to produce a final good will no longer pay the customs duty, which is currently 10–15 per cent of the value of the goods. This measure is necessary, in order to avoid intermediation, when the same raw material is resold more times, thereby increasing the final price of the product,” Osmochescu said.

At the same time, the authorities intend to develop a law to regulate the field of the digital economy and e-commerce.

“This is something new, which is not yet regulated. We are talking about online platforms, which unfortunately are not regulated, not even from a taxation perspective, and the state budget is losing revenue. Also, at the current stage, we are in the final phase of implementing the Know Your Customer platform. This refers to online identification and remote access to digital services,” Deputy Prime Minister Osmochescu pointed out.

In recent years, the Government has implemented more initiatives, in order to simplify the way businesses operate, to attract investment and to align with European standards.