FEAS Yearbook FEAS Yearbook 2010 | Page 122

ANNUAL REPORT JUNE 2010 FEDERATION OF EURO-ASIAN STOCK EXCHANGES MOLDOVA STOCK EXCHANGE ECONOMIC AND POLITICAL DEVELOPMENTS Total basic policy of 2009 is the cardinal change of power in the country, which has caused essential changes in state policy both internal and external. The four parties (Liberal Democratic Party, Liberal Party, Democratic Party, and Our Moldova Alliance) founded the Alliance for European Integration. The Alliance for European Integration became the ruling coalition and the communists - opposition. The new governing coalition in Moldova has set European integration as its main priority of foreign policy. In 2009, in the capital of our country took place CIS summit in which representatives of the new government met with the politicians from neighboring countries. The theme of the summit was the economic crisis and the struggle with its consequences. The crisis came from abroad, and for the country vulnerable to external shocks, such as the Republic of Moldova, recession economy has became a crucial factor which has caused the change of the economic growth’s trend since the end of 2008. But despite the fact that since the second half of 2009 seen the first signs of global economic recovery thanks to the efforts undertaken by world’s governments, the beneficial effects of these global trends on the economy of the Republic of Moldova becomes apparent later. The European Union and Moldova launched officially negotiations on a new Association Agreement. These negotiations reflect the positive evolution of political and economic relations between the EU and Moldova, and the opportunity to widen and deepen cooperation under the Eastern Partnership. The future agreement will deepen the political association and economic integration of Moldova and the EU. These negotiations take place against the background of increasing bilateral trade over the past years and a significant increase of EU assistance to Moldova. Moldova and International Monetary Fund (IMF) officials have signed an agreement for a loan that will help to cover the budget deficit. Involvement in the national economy of strategic investment, particularly foreign direct investment in sectors characterized by high levels of competitiveness and oriented on export, including through the development of related infrastructure (industrial parks, free economic zones) is one of the priorities established by the Ministry of Economy for 2010. The other priorities are: beginning the process of negotiating a new regime with the EU concerning free trade agreement, the development of a legislative framework for consumer protection and supervision over the market, harmonized with European legislation, improving the system of business regulation, development of credit guarantee schemes for small and medium-sized enterprises, promotion of the small and medium-sized enterprises to provide new opportunities and achievement of a greater ability of the economic system to adapt to the current requirements of a market economy.* * Information provided by Moldova SE. Key Information Contacts Government of the Republic of Moldova www.gov.md Ministry of Economy www.mec.gov.md Public Property Agency www.app.gov.md National Bank of Moldova www.bnm.org National Commission of Financial Market www.cnpf.md Chamber of Commerce and Industry www.chamber.md National Bureau of Statistics www.statistica.md REAL GDP (MDL millions) CONSUMER PRICES (% CHANGE PA; AV) (%) 30 14 25 12 10 20 8 15 6 10 4 5 2 0 0 2005 PAGE 118 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010