AGP Executive Report

EU-Law Agenda: Moldova’s MPs will hold final spring-session plenaries on July 29-30, with 15 EU-labelled draft laws on the table, including reforms tied to education (“Restart”), public participation, road and energy rules, and justice/fundamental-rights measures. Fuel Supply Crunch: PM Vasile Tofan called an emergency government meeting over diesel shortages; authorities say 12,000 tons are being brought in via two barges (6,000 tons each) plus another shipment expected, targeting stations with zero stocks. Energy Sector Input: The Energy Ministry consulted businesses to set priorities for the energy market, pushing for predictable rules, less bureaucracy, and faster investment access to grids and organized trading. Investor Guarantees: Moldova will start investment-protection talks with Sweden and Kazakhstan, while also negotiating a new cooperation protocol with Turkey via TIKA to fund projects in infrastructure, energy, agri-food, and SMEs. Crypto Regulation: Parliament approved a bill creating a legal framework for the crypto-asset market, including disclosure, risk and environmental-impact info, and anti-fraud/anti-money-laundering requirements. Road & Local Economy: Traffic reopened on the Slobozia Mare bypass after a 16.6 km build supported by the EBRD, aiming to cut transit through local towns and improve safety. Public Finance for Households: The Finance Ministry opened a new subscription round for government bonds for the public via eVMS.md, offering 7.45%-7.85% annual interest depending on maturity. Consumer Credit Watch: A new analysis says lending hit record highs, with consumer loans driving growth and raising concerns about household debt. Security & Fraud: Police reported new phone-fraud cases, with losses exceeding one million lei, urging people not to share codes or transfer money to callers. SME Snapshot: SMEs make up 99.7% of Moldova’s reporting companies and drove most sales and profits in 2025, reinforcing their central role in the economy.

Road & Infrastructure: Moldova reopened the 16.6 km Slobozia-Mare bypass on the M3 highway, built with EBRD support to divert heavy transit traffic away from local towns; the project cost about €10.46m for the completed section and is expected to improve safety and reduce pollution. Transport Finance: Moldova is set to negotiate a ~€344m EBRD loan for road rehabilitation, targeting the R7 corridor to the Romanian border and the M3 route toward Chisinau–Comrat–Giurgiulesti, with EU and government co-funding and an eight-year implementation plan. SME Snapshot: New NBS data shows SMEs dominate Moldova’s business landscape (99.7% of reporting companies), driving most sales revenue and profits, with trade the biggest SME sector. Consumer Credit Watch: Lending is surging: consumer and mortgage loans hit record highs, with individuals’ total loan balance rising to about 14% of GDP. Energy Security: Energocom continues gas procurement for the 2026–2027 cold season via forward contracts linked to the TTF index, using multiple auction rounds to lock in volumes. Public Safety & Fraud: Police recorded another phone-fraud case in Chisinau, with total losses now exceeding one million lei, as scammers impersonate banks and public services to push victims into electronic transfers. Labor & Deregulation Debate: Unions warn a draft deregulation bill could weaken worker protections by changing the Labor Code and related laws, arguing it conflicts with EU association obligations. Governance & State Firms: MOLDATSA has a new interim administrator after leadership changes, while anti-corruption prosecutors continue actions tied to alleged abuse at the state enterprise. Business Climate & Dialogue: Prime Minister Vasile Tofan says he will hold daily talks with entrepreneurs to cut bureaucracy and speed up investment decisions. International Economic Outreach: Moldova is pursuing new investment cooperation with Japan’s Institute for Overseas Investment and expanding economic cooperation ties with Sweden, Kazakhstan, and Turkey. EU Local Climate: Covenant of Mayors – East marked 15 years of local climate action across Eastern Partnership cities, focusing on energy efficiency and renewables.

Entrepreneur Dialogue: Moldova’s new PM Vasile Tofan says he will speak with 5–6 entrepreneurs daily to cut bureaucracy and speed up investment, framing job creation and EU-aligned reforms as the cabinet’s core economic priorities. EU Growth Plan: The government met the European Commission’s DG for Neighbourhood and Enlargement to push the Growth Plan and reforms, noting 18 of 20 commitments met in H1 2026 and a possible €157m next installment in September. MoldATSA Probe: Moldova’s anticorruption prosecutors won 30-day preventive detention for two people in the MoldATSA case, with a third under house arrest, after searches tied to alleged abuse of office and large damages. Legal Safeguards: Parliament advanced a draft law to protect citizens and NGOs from abusive lawsuits aimed at silencing public participation (SLAPP-style cases). Energy & Costs: Opposition protested gas tariff increases; parliament speaker Igor Grosu argued the debate should target internal distribution/admin costs. Tourism Links: Moldova and China discussed adding Moldova to recommended destinations for Chinese tourists and launching agency-to-agency cooperation. Education & Skills: Parliament moved to align recognition of EU medical qualifications and other professional credentials with European rules, while Moldova also continues school modernization with World Bank-backed equipment.

Moldova Privatization Push: Moldova is putting five state properties up for privatization, including the “Chisinau Glass Factory” (starting price 773 million lei) with a required 20.5 million euro investment over three years, plus the “Zarya” hotel, publishing houses “Stiința” and “Lumina,” and the “Izomer” experimental chemical plant. EU Rule-of-Law & Courts: Parliament advanced a draft law to protect journalists and civic groups from abusive lawsuits (SLAPP), adding tools like security deposits and fast-track dismissal of bad-faith cases. MoldATSA Crackdown: Two people were placed in 30-day preventive detention and a third got house arrest after new searches tied to alleged corruption and abuse of office at the state enterprise MoldATSA. Gas Tariff Pressure: Opposition protested higher natural gas tariffs; Parliament speaker Igor Grosu said the debate should focus on internal distribution and administrative costs. EU Sanctions on Crypto: The EU expanded its Russia-linked crypto crackdown, targeting HTX-related entities and adding a mechanism that could restrict crypto services in countries hosting platforms used for sanctions evasion. Business Support for Entrepreneurs: The Ministry of Finance is running in-person business training for entrepreneurs in Comrat, Leova, Cantemir, Cădîr-Lunga, and Taraclia, covering taxes, accounting, customs, procurement, and management. India-Moldova Trade Boost: President Droupadi Murmu’s state visit to Moldova and wider Eastern Europe push highlighted expanded cooperation in agriculture, logistics, healthcare, renewable energy, and innovation, with trade and investment ties a key theme.

Moldova–EU & reforms: The new Moldovan government’s economic priorities and EU accession reform push were discussed with the European Commission, with officials citing high delivery of the 2025–2027 Reform Agenda and pointing to a possible €157m Growth Plan installment in September. State oversight & rule of law: In the MoldATSA corruption case, Chisinau’s court ordered 30-day preventive detention for two suspects and house arrest for a third after renewed searches at the state enterprise. Business climate & finance: Parliament advanced EU-aligned rules for state aid to enterprises (more transparency and predictability, including pre-notification) and approved first-reading updates to align Moldova’s financial instruments market with EU standards. Energy & costs: Parliament speaker Igor Grosu responded to opposition protests over gas tariff hikes, arguing the debate should focus on internal administrative/distribution costs. Education & labor mobility: Moldova moved to integrate into the EU system for recognizing professional qualifications, while talks also continued on cooperation with Romania and India on skilled-professional mobility. Trade & infrastructure: A temporary bridge project over the Dniester (Yampol–Cosăuți) is progressing, while local road works in Ialoveni aim for commissioning next October. Tourism push: Moldova and China discussed adding Moldova to recommended destinations for Chinese tourists and starting agency cooperation.

EU Accession & Growth Plan: Prime Minister Vasile Tofan met the European Commission’s DG for Neighbourhood and Enlargement, Gert Jan Koopman, pushing economic growth, investment and reforms; Moldova says it has met 18 of 20 commitments for H1 2026 and could receive a €157m Growth Plan installment in September. Energy Costs & Gas Tariffs: Parliament Speaker Igor Grosu backed the need for “sound proposals” beyond criticism as protests erupted against proposed natural gas tariff hikes; Energocom warns higher gas prices could lift district heating bills. Government Shake-up: Agriculture Minister Radu Musteata resigned after reports tied him to the former Democratic Party; Grosu called it an “honorable resignation,” while opposition and analysts debate the precedent. Education & Skills: Moldova advanced EU-aligned rules for recognizing EU medical qualifications and is equipping 108 schools with lab and robotics gear (about 4.8m lei). Transnistria & Sanctions: EU’s 21st sanctions package targets Shor’s A7 crypto network and Inter RAO (linked to the Cuciurgan plant), while Transnistrian authorities accuse Chisinau’s reintegration deputy of avoiding talks. Business/Finance Rules: Parliament moved forward on clearer state-aid rules and aligning Moldova’s financial instruments market with EU standards.

EU Accession & Growth Plan: Prime Minister Vasile Tofan met EC Director-General Gert Jan Koopman on economic priorities and the Growth Plan, saying Moldova has met 18 of 20 reform commitments for H1 2026 and could receive a €157m installment in September if the EC review is positive. Sanctions & Energy: The EU’s 21st sanctions package targets Shor’s A7 crypto network and Inter RAO (owner of the Cuciurgan Power Plant), while Chisinau plans to rely on the Isaccea–Vulcănești–Chisinau line to bypass Cuciurgan. Reintegration & Business Rules: Deputy PM Valeriu Chiveri met Romania’s ambassador on reintegration priorities, including draft fiscal/customs measures for Transnistrian operators and operationalizing the Convergence Fund; meanwhile, 2,492 Transnistrian economic agents are registered with Moldova’s Public Services Agency. Gas & Household Costs: ANRE approved short-term fuel price caps and Energocom warns gas tariff hikes could lift district heating bills; protests erupted outside ANRE over the proposed increase. EU-aligned Regulation: Parliament advanced drafts on recognizing EU medical qualifications, integrating Moldova into the EU recognition system for professional qualifications, clearer state aid rules, and aligning financial instruments market rules with EU standards. Education & Investment: Moldova and Romania expanded education cooperation; schools are set to receive modern lab equipment (€4.8m) and more pupils will benefit from upgraded “model schools” investments. Politics Watch: Agriculture minister Radu Musteața resigned days after taking office amid controversy over alleged past ties to Plahotniuc’s Democratic Party.

Accessibility Law: Parliament advanced a draft law setting EU-style accessibility rules for goods and services, covering sectors like e-commerce, financial services, transport info, government services and emergency communications. Fuel Costs: ANRE approved short-term fuel price caps from July 25–27, with AI-95 at 30.16 lei and diesel at 30.29 lei as global oil prices rise. Digital Savings: Moldova’s e-government push saved over 853 million lei in 2025, with hundreds of services available online via EVO and eDemocratie.gov.md links. Transnistria Business Reintegration: The Public Services Agency registered 2,492 economic agents from the left bank and Bender in H1 2026, supporting stability and EU-market access. Agriculture Leadership Shake-up: Radu Musteață resigned as agriculture minister after days in office amid political-linked controversy; PM Vasile Tofan accepted the resignation and said reforms will continue. Parliament Agenda (July 24): Lawmakers will review 23 draft laws, including EU-aligned accessibility rules, crypto-asset market regulation, financial instruments, and state aid. Education Investment: Parliament backed an EIB-backed “Model Schools” financing package worth €50m to modernize 20 schools with energy-efficiency upgrades. Energy Infrastructure: The 400 kV Vulcanesti–Chisinau power line was fully energized to the Chisinau substation, a key step toward commercial operation and stronger EU-linked supply. Corruption Probe at MoldATSA: CNA searches continue at the state air navigation enterprise MoldATSA over alleged corruption and abuse of office. Local Governance Incentives: Six mayoralties in Hîncești district agreed to merge, unlocking 40.8 million lei before the July 31 voluntary amalgamation deadline. Agrifood Export Outlook: Moldova’s apricot harvest is up to 15–17k tons, with improved quality for export after investments in frost protection and post-harvest infrastructure.

Education Investment: Moldova’s parliament approved an EIB-backed plan to modernize 20 schools and gymnasiums with over €50 million total funding, targeting energy efficiency, safer learning spaces, and upgraded heating, ventilation, lighting, and equipment. Energy & Infrastructure: The 400 kV Vulcanesti–Chisinau power line is fully energized to the Chisinau substation, a key step before commercial operation and a boost for direct Romania-to-Moldova electricity transfer. Transport & Trade Links: Moldova and Romania set the design-phase actions for Union Highway A8 (Section 4, first 5 km in Moldova), framing it as strategic for transport and economic ties. EU Standards & Finance: Moldova aligned its anti-money laundering system with European standards by updating the legal framework for the Service for Prevention and Combating of Money Laundering, including new financial intelligence officer status and mandatory professional certification. Business & Markets: Nestlé reported strong momentum in Ukraine, with H1 2026 sales up 19.3% in hryvnia, alongside major investment plans. Governance & Compliance: CNA carried out new searches at state air navigation provider MoldATSA in an alleged corruption and abuse-of-office case, while a separate report highlights a former MoldATSA director’s asset declaration. Local Development: Voluntary mayoralty amalgamation in Hancesti district will bring 40.8 million lei to six merged localities, with the July 31 deadline approaching. Energy Prices: Moldova’s energy ministry proposed quarterly gas tariff adjustments and ways to cut distribution costs as European gas prices rise.

Government Reset & EU Push: Moldova’s parliament elected investor Vasile Tofan as prime minister and the new cabinet took office, with an “European economy, efficient state” programme focused on growth, EU accession, security, justice, and a better business climate. Anti-Corruption Watch: The National Anticorruption Center carried out new searches at state air navigation provider MoldATSA, continuing a case over alleged corruption and abuse of office. Energy & Costs: The 400 kV Vulcănești–Chișinău power line was fully energized toward commercial readiness, while the Energy Ministry proposes quarterly gas tariff adjustments and steps to cut distribution costs as prices rise. Local Governance Reform: Six mayoralties in Hîncești agreed to merge and receive 40.8 million lei for development; the voluntary amalgamation deadline is July 31. Social & Business Rules: Moldova published in the Official Journal the legal framework for electronic social security data exchange with EU states (EESSI), and the minimum wage is set to rise gradually to 10,000 lei by 2030. Trade & Investment Links: Moldova and Bulgaria’s chambers discussed new business forums and partnerships, and Moldova–Netherlands talks highlighted security and rule-of-law cooperation. Infrastructure Tenders: A 9.6 million lei tender was announced for sidewalks in seven localities.

New Moldova Government Programme: Moldova’s new cabinet under PM Vasile Tofan has its activity programme published in the Official Journal, pitching an “European economy” and a more business-friendly state, with priorities including growth, EU accession, a digital and responsible government, security/justice, and better quality of life. EU Accession Momentum: Moldova’s EU path gets a boost in public opinion—70% of citizens trust the EU—while Hungary blocks further enlargement “clusters” opening, slowing talks for Moldova and Ukraine. Business Climate & Regulation: The PM says foreign trips by officials will be tightened, and a package to cut “abusive” inspections of entrepreneurs is due by Sept 9; meanwhile, the government also approved clearer state-aid rules for enterprises. Labour & Social Policy: Minimum wage will rise gradually to 10,000 lei by 2030, with autumn talks to set next year’s level; maternity allowance rules will no longer depend on parents’ marital status. Energy & Economy: Moldova reports 7.2% industrial production growth in Jan–May 2026, and PM warns of a security crisis after Transnistria’s Russian gas cutoff triggered factory closures and rolling power blackouts. Crypto Rules: Moldova approved a draft law creating a legal framework for crypto-assets, with supervision split between the National Bank and the financial markets commission. Local Governance Reform: Voluntary mayoralty amalgamation ends July 31; from August, normative amalgamation will proceed, with no mayoralty allowed under 3,000 residents by 2027.

New Cabinet, EU push: Moldova’s parliament approved investor Vasile Tofan as prime minister and backed his “European Economy, Efficient State” programme, with the government sworn in after a vote of confidence; Sandu urged fast reforms, better business conditions, and stronger security as the country targets EU accession milestones by 2028. Tax and state-business agenda: Tofan outlined fiscal reform talks, a plan to improve how state-owned assets are managed and sold or rented at fair terms, and a focus on cutting bureaucracy to make Moldova more entrepreneur-friendly. Local governance funding: The government reiterated that support for voluntary mayoralty amalgamations will continue—3,000 lei per resident—paid in stages (2026 preparation, 2027 investment). Corruption crackdown: CNA and prosecutors carried out about 30 searches in a case tied to alleged abuse of office and fraud in external-funded water supply and sewerage tenders, with damage estimated above 14.5 million lei and several suspects detained. Agriculture priorities: The new agriculture minister set out a climate-resilient, irrigation-focused farm system and plans to expand EU export markets. Regional trade signals: Slovenia reaffirmed support for Moldova’s EU path and offered cooperation to boost trade and tourism, while Moldova’s apple exports to India remain uncertain amid logistics disruptions.

Government Confidence Vote: Moldova’s parliament approved Vasile Tofan as prime minister and backed his full cabinet after a nine-hour debate, with 53 votes in favor; the programme “European Economy, Efficient State” targets EU accession by end-2028 and business-friendly reforms. Fiscal & State Asset Reform: Tofan says a new fiscal policy concept will be broadly consulted, aiming to rebalance taxes and support wage reform, while proposing a full audit of state-owned assets and public, transparent sales of non-strategic holdings. EU Path & Romania Ties: Tofan framed the government’s direction around the European course and stronger strategic partnership with Romania, citing shared history and language. Local Governance Funding: The PM-designate confirmed 3,000 lei per resident support for amalgamated mayoralties will follow the reform calendar, with staged budget allocations. Energy & Fuel Security: Energocom launched tenders to buy natural gas for the 2026–2027 season, while ANRE approved a fuel margin change adding 0.48 lei per liter to fund emergency oil stocks from Aug 1. Business & Investment Pipeline: A new digital platform is speeding up entrepreneurs’ access to financing, cutting application checks from eight to three business days, and a business-angel capacity programme is being rolled out with EU support. Agri-Food Investment Push: The government programme targets at least 7 billion lei in public and private investment for agri-food by 2029, with most funding aimed at modernization, processing, irrigation and added value. International Spotlight: India’s President Droupadi Murmu began a state visit to Moldova, agreeing to deepen trade, investment, connectivity and AI cooperation.

India-Moldova State Visit: President Droupadi Murmu began a historic first-ever Indian presidential visit to Chisinau, holding talks with Maia Sandu on trade, investment, resilient supply chains, connectivity, digital public infrastructure, AI, healthcare and renewables, while India pledged to double ITEC training slots for Moldovan professionals (including AI and cyber diplomacy) and invited Moldovan firms to explore India. Government Confidence Vote: Prime Minister-designate Vasile Tofan will present his “European Economy, Efficient State” program and cabinet to Parliament today (11:00) ahead of a vote of confidence, with priorities including investment and entrepreneurship, faster EU accession, state reform, security and labor-market modernization (including a planned minimum wage path). Energy Market Rules: ANRE approved a change to fuel retail margins by adding a 0.48 lei/l contribution for emergency oil product stocks, lifting petrol/diesel margins from late July with the measure effective Aug 1. Gas Procurement: Energocom launched tenders for natural gas for the 2026–2027 gas year (Oct 1, 2026–Sep 30, 2027), contracting part of needed volumes while continuing rounds into late October. Banking Deal: OTP Bank agreed to acquire Baltic lender Luminor, aiming to expand in the region pending regulatory approvals. Fuel Supply Monitoring: ANRE said current data do not show a widespread shortage of standard petroleum products, citing sufficient reserves for diesel and gasoline while monitoring market conditions. Business Pitch to India: At the India-Moldova Business Forum, Murmu pushed the “3 Ts” roadmap—trade, technology and talent—calling Moldova a gateway to the EU and India a scale partner for Moldovan exporters and investors.

India-Moldova Business Push: President Droupadi Murmu’s first-ever visit by an Indian head of state to Chisinau is being used to drive a new economic push under the “3 Ts” (trade, technology, talent), with both sides aiming to double bilateral trade and expand cooperation in agriculture, logistics, infrastructure, pharma, renewable energy, digital public infrastructure, AI and innovation. Higher Education Deal: Sandu and Murmu say Moldova and India will sign a new higher-education cooperation agreement soon, with about 1,400 Indian students already studying in Moldova. Government Agenda for Growth: Designated PM Vasile Tofan unveiled the “European economy, efficient state” program, promising a more business-friendly Moldova via simpler rules, digital services, faster decisions, EU accession acceleration, and targeted energy-bill support for vulnerable households. Labor Market Reform: The program also targets a predictable rise in the minimum wage, aiming to reach 10,000 lei by 2030, alongside pay transparency and stronger worker protections. Gagauzia Elections Framework: Sandu met Gagauzia’s People’s Assembly on implementing the Constitutional Court ruling for a uniform electoral system, setting the stage for how autonomy elections will be organized. Energy Infrastructure Priority: The Tofan program highlights completing the Vulcanesti–Chisinau power line and further integrating Moldova’s energy market with Europe to support investment and more predictable bills. Fraud Alert: CNAM warned of a new online scam using its name to lure citizens into sharing personal and banking data.

Energy Infrastructure: Moldova’s Energy Minister Dorin Junghietu says the full Vulcanesti–Chisinau power line will be energized up to the Chisinau electrical substation later this week, after the first 100 km segment was tested under operating voltage—an important step before commissioning. Diplomacy & Trade: President Droupadi Murmu arrived in Chisinau for the first-ever visit by an Indian head of state to Moldova, with talks focused on boosting trade, investment, supply chains and connectivity, plus a Moldova–India business forum. Women’s Support Services: Moldova will open its first “Women’s Shelters” for domestic-violence victims, adding longer transitional housing and employment, training, and legal/psychological support; the first two sites are planned for Cahul and Ștefan Vodă. Agriculture & Fuel Markets: Forța Fermierilor warns of a diesel shortage and rising prices during harvest, urging ANRE to publish petroleum reserves and the Competition Council to investigate possible cartel behavior, while renewing calls to refund agricultural excise tax. Business Rules: AmCham urges faster alignment of Moldovan financial reporting with EU standards, including CSRD, while keeping full compatibility with IFRS. Local Governance: CALM warns the local public administration reform is being rushed and could threaten local autonomy and EU progress, calling for stronger municipal finances and a revised timeline.