Application by Moldova for membership of the Council of Europe

19 June 1995

Doc. 7331

1403-16/6/95-1-E

OPINION

on the application by Moldova for membership

of the Council of Europe

(Rapporteur: Mrs DURRIEU,

France, Socialist Group)

Contents

Page

1. The historical background 3

2. Geography 3

3. Institutional and political changes 4

3.1. 1991 to 1994: the period of transition 4

3.2. The parliamentary elections of February 1994 4

3.2.1.       The electoral law in force       4

3.2.2.       The specific problems of Transnistria and the Gagauz lands       5

3.2.2.1.       Transnistria       5

3.2.2.2.       The Gagauz lands       6

3.2.3.       The election results       6

3.2.4.       The observers' conclusions about the February 1994 parliamentary

elections 7

3.3. The new constitution 7

4. Legislative reform and individual freedoms 8

4.1. The law on citizenship 8

4.2. The judiciary 9

4.3. Freedom of the press 11

4.4. Free movement of persons 12

5. Territorial integrity of the Republic of Moldova 12

5.1. Relations with Romania 12

5.2. The problem of separatism 13

5.2.1. Gagauzia 13

5.2.2. Transnistria and the Russian 14th Army 14

6. A schism within the Orthodox Church in Moldova 16

7. An improving economic situation 17

7.1. Macro-economic stabilisation 17

7.2. Privatisation 17

7.3. Agrarian reform 17

Conclusions 18

Map of Moldova 20

1. The historical background

Moldavia, a prosperous principality, came under Ottoman rule in 1504.

Following the war between Russia and Turkey, Moldavian territory was split into two in 1812. The part to the east of the river Prut, known as Bessarabia, was ceded to Russia, while the western part remained in the hands of the Ottoman Empire.

Bessarabia declared independence in 1918 and entered into a union with Romania. The Soviets, however, never recognised Romania's authority over it.

Under the secret Molotov-Ribbentrop Pact, Hitler ceded the region to Stalin. In June 1940 Soviet forces occupied Bessarabia, which the government divided into several parts. The Moldavian Soviet Socialist Republic came into existence in August 1940, while northern Bessarabia, the coastal plain and northern Bukovina were incorporated into Ukraine.

Present-day Moldova encompasses the majority of former Bessarabia and Transnistria.

A "Gagauz Republic" declared itself independent in 1990.

Moldova declared itself independent of the Soviet Union in August 1991.

Subsequently, in September 1991, Transnistria also declared independence.

On 6 March 1994 a "popular consultation" (referendum) was held to confirm the country's independence. 95,4% of the votes cast were in favour and 2% against.

2. Geography

Moldova, which lies right in the south-west of the European part of the former Soviet Union, is bounded by the river Prut to the west, the Dniester to the south and east and Romania to the west. A narrow strip of Moldovan territory along the left bank of the Dniester projects into Ukrainian territory. It is known as Transnistria in Romanian and Pridnestrovie in Russian.

The main geographical features of Moldova are listed below:

Capital: Chişinău

Land area: 33 700 km삲

Population: 4 384 000 (1991 World Bank estimate)

Language: Moldovan (Romanian) is the official language, but there are special provisions relating to the use of the Russian and Gagauz languages.

Religion: Orthodox mainly

Ethnic make-up: 64,5% Moldovans

13,8% Ukrainians

12,8% Russians

3,5% Gagauzi

2,0% Bulgarians

1,5% Jews

3. Institutional changes and democratic reforms

3.1. 1991 to 1994: the period of transition

Government and parliament embarked in 1991 upon a programme to reform the constitution and amend legislation. Little progress has been made, however, as a result of political/institutional uncertainties during this transitional phase (the break with the communist system) and, in particular, because of internal tension and conflict with Transnistria and the Gagauz lands.

The parliament elected in 1990 saw its operation disrupted by an internal reorganisation of political tendencies and forces and by obstacles arising out of the conflicts with Transnistria and the Gagauz lands. Most of those two regions' MPs no longer, in practice, attended sessions of parliament, but the voting rules required a majority of two-thirds of all members for the adoption of major legislation and the constitution. As a result, the quorum was hardly ever reached.

3.2. The parliamentary elections of February 1994

3.2.1. The electoral law in force

The electoral law provides that parliament shall be elected for four years, on the basis of proportional representation, with an entry threshold of 4%. Candidates may be put up by parties, socio-political organisations officially registered by the date on which the election date is set and electoral "blocs". Anyone wishing to stand as an independent candidate has to collect a thousand signatures.

Thirteen parties and/or coalitions with a total of 1 022 candidates, as well as twenty independents, had their candidatures registered by the electoral commission for the February 1994 elections.

The parties and coalitions concerned are listed below:

—Al liance of the Popular Christian Democratic Front (105 candidates);—

—Pa rty of the Association of the Victims of the Totalitarian Communist Regime in Moldova (21 candidates);—

—Na tional Christian Party (56 candidates);—

—So cial Democratic Bloc (106 candidates);—

—Bl oc of Peasants and Intelligentsia (106 candidates);—

—De mocratic Party of Moldova (106 candidates);—

—El ectoral Bloc — Socialist Party and Unity Movement (104 candidates);—

—Pa rty of Women's Associations of Moldova (45 candidates);—

—Gr een Alliance (21 candidates);—

—Ag rarian Democratic Party (106 candidates);—

—Re publican Party of Moldova (67 candidates);—

—De mocratic Workers' Party of Moldova (106 candidates);—

—Re form Party (69 candidates).Th

The law gives each party, organisation, electoral bloc and independent candidate free access to the media, air time being allocated in proportion to the number of lists, and candidates are not allowed to purchase air time.

Between 17 and 26 January each party/coalition was allowed fourteen minutes' television and sixty minutes' radio time free of charge. From 26 January onwards they had sixty minutes' television and ninety minutes' radio time. Independent candidates were given 25% of the time allocated to parties and blocs.

However, only the Agrarian Democratic Party and the renamed Socialist Party (formerly the Communist Party) were able to afford a campaign which reached the whole population via leaflets and newspapers.

Overall, the electoral law corresponds to current democratic standards, offering a legal basis for democratic elections.

3.2.2. The specific problems of Transnistria and the Gagauz lands

3.2.2.1. Transnistria

Relations between Moldova and the self-proclaimed Republic of Transnistria being fairly tense, Mr Smirnov, President of Transnistria, was unwilling to enter into negotiations with the government in Chişinău. He had decided to boycott the elections, but did not express any desire to prevent voters from crossing the Dniester to cast their votes on the grounds that, in his view, Transnistria is an independent state.

In this situation, President Snegur published a decree allowing some fifteen polling stations to be opened on the right bank of the Dniester from 21 to 27 February, in order to guarantee the right to vote of the Moldovan citizens of Transnistria.

While these polling stations did open, it was noted that various kinds of pressure were brought to bear to deter the voters of Transnistria from voting.

3.2.2.2. The Gagauz lands

Following a recent visit by President Snegur when he promised the Gagauzi that the new Moldovan Parliament would consider as a matter of priority the possibility of granting autonomous region status to the Gagauz lands, they finally agreed not to boycott the elections and to open the polling stations on 27 February.

In the Komrat region, the elections took place in a calm and orderly atmosphere, and turnout was high (83%).

3.2.3. The election results

The turnout in the elections of 27 February 1994 was 79,3%.

The parties elected to parliament were:

—Ag rarian Democratic Party:43 ,18% — 56 seats—

—So cialist Party:22 % — 28 seats—

—Bl oc of Intellectuals:9, 21% — 11 seats—

—Po pular Front:7, 53% — 9 seatsTh

The other parties failed to cross the 4% threshold, achieving the following results:

—So cial Democratic Party3, 66%—

—Wo men's Association 2 , 83%—

—De mocratic Workers' Party2, 77%—

—Re form Party2, 36%—

—De mocratic Party1, 32%—

—As sociation of theVi

Victims of the Totalitarian Regime 0,94%

—Re publican Party0, 93%—

—Na tional Christian Party0, 33%—

—Gr een Alliance0, 12%3.

3.2.4. The observers' conclusions about the February 1994 parliamentary elections

Mr Ferrarini, in his information report on the parliamentary elections in Moldova, representing the views of all the members of the Council of Europe observer delegation, stated that it should be also ensured that those Moldovan citizens who live in Transnistria will not be penalised for having been candidates or voted in these elections.

The Assembly delegation concluded that the elections were held under the best conditions possible, despite the confirmation of the boycott by Transnistria.

3.3. The new constitution

One of the first tasks that the new Moldovan Parliament decided to undertake was the drafting and adoption of a new constitution.

This was adopted on 29 July 1994.

Not wishing to examine this text in every detail, I shall simply look at the main provisions of the constitution, emphasising those intended to ensure the rule of law and respect for human rights and for the fundamental principles which the Council of Europe aims to guarantee.

Article 1 of the Moldovan constitution affirms that the Republic of Moldova is a democratic state governed in accordance with the law, where the dignity of all persons, their rights and freedoms, the free development of human beings, justice and political pluralism are recognised as the highest values, and therefore protected.

The constitution contains an extensive list of fundamental rights and of freedoms which the Moldovan state intends to respect. The text also includes a long list of economic and social rights.

Among the main provisions of the constitution to which I would draw attention are political pluralism, the separation of powers between legislature, executive and judiciary and the right of all citizens to the protection, development and expression of their ethnic, cultural, linguistic and religious identity.

Under Article 4, the provisions of the constitution relating to citizens' rights and freedoms are interpreted and applied in conformity with both the Universal Declaration of Human Rights and those international treaties and agreements to which the Republic of Moldova is a party. Moldova has ratified a large number of international conventions covering human rights and individual freedoms. Where the standards of international law differ from those of domestic law, the former always prevail and are always binding.

In pursuance of Article 53 of the constitution, persons whose rights are flouted by the authorities acting in application of an administrative decree or whose claims are not dealt with in good time may apply for recognition of their rights, revocation of the decree and fair compensation. The state bears sole liability for the consequences of mistakes made by courts at any point during criminal proceedings and those made by investigating authorities.

A constitutional court, independent of any other authority and governed solely by the constitution, verifies that legislation is compatible with the constitution.

This constitution should provide a sound legal basis for the establishment of the rule of law in the Republic of Moldova in a democratic state guaranteeing respect for human rights and fundamental freedoms, as defined in the European Convention on Human Rights.

4. Legislative reform and individual freedoms

Since independence was declared, several legislative texts reforming fundamental rights and individual freedoms have been adopted. It should be noted that, since the February 1994 parliamentary elections and the adoption of the new constitution in July 1994, the pace of reform has been stepped up, and several important texts have been adopted.

In this memorandum I shall therefore confine myself to an examination of the most significant texts relating to the law on citizenship (4.1), organisation of the judiciary (4.2), freedom of the press (4.3) and free movement of persons (4.4).

4.1. The law on citizenship

This law was promulgated on 5 June 1991. In pursuance of the text, the following are considered to be Moldovan citizens:

—pe rsons resident in Moldova before June 1940;—

—th ose persons' descendants resident in Moldova on the day on which the law came into force, and all persons born in Moldova and resident there on the day on which the law came into force;—

—pe rsons born abroad but having one parent born on Moldovan territory;—

—pe rsons married to Moldovan citizens;—

—pe rsons who returned to Moldova in response to an appeal by the president or the government of the republic;—

—pe rsons permanently resident in Moldova and having legitimate means of subsistence before 23 June 1990, provided that they made a declaration within one year of adoption of the law.In

In pursuance of Section 10 of this law, the basic principle governing the acquisition of citizenship is jus sanguinis. Jus soli applies only to children of unknown parentage.

The law on citizenship does not fully comply with international law, which requires all new states to grant citizenship to all permanent residents on their territory.

Even if they are regarded as restrictive, however, the above-mentioned provisions could not be considered to be contrary to the known international practice of democratic states.

4.2. The judiciary

The Republic of Moldova's judicial system used to be modelled on that of the various Soviet republics and did not meet the requirements of the smooth operation and proper administration of justice in a state governed by the rule of law. Specifically, judicial power was dominated and held in contempt by the Communist Party, the executive authority and the agencies of the Prokuratura, the institution which represented the Public Prosecutor, but also, and above all, a specific institution holding exceptional powers incompatible with the standards and practice of a state governed by the rule of law.

A framework act on the organisation of the judiciary was adopted on 21 June 1994.

The main provisions of the act are:

─ establishment of a constitutional court;

─re organisation of the court system and courts' powers, giving a four-tier system:-

- district court,

-        regional court,

-        appeal court,

-        supreme court;

─st rengthening of the independence of the judges;─

─ establishment of a judicial service commission.

According to the report submitted to the Bureau of the Assembly by Karel Jungwiert, Judge at the European Court of Human Rights, and Marek Nowicki, member of the European Commission of Human Rights, the draft act displayed some discrepancies between the proposed standards under domestic Moldovan law and the requirements of the European Convention on Human Rights.

In his report, Lord Finsberg stated that:

"In its comments, the Moldovan Parliament explains that these provisions must be read in the light of the principle according to which, in case of incompatibility, international treaties prevail over national law, therefore no restriction to human rights contrary to international standards is possible. The Republic of Moldova assumes the commitment that this principle will be respected in all the laws, which will be adopted in conformity with the constitution. Moreover, the President of the Supreme Court, upon a question on Article 55 of the constitution by the rapporteurs, expressed his conviction that the constitutional court will exclude an interpretation of this provision leading to inadequate restrictions of human rights. The rapporteur is satisfied by these explanations."

The role of prosecutors

The procedure for the appointment of prosecutors, their responsibilities and their subordinate position make it difficult to say that their independence is guaranteed. The authors of the report take the view that "a prosecutor in the Republic of Moldova cannot be considered as an officer authorised by law to exercise judicial power within the meaning of Article 5 paragraph 3 of the ECHR".

This is especially so in the area of preliminary investigations in criminal cases, since the law makes no provision for any possibility of obtaining a ruling by a judge or a court on the lawfulness of a prosecutor's decision concerning detention on remand.

However, two new elements have to be taken into consideration.

One is the fact that, as Lord Finsberg stated in his report, the Moldovan Parliament refers to Article 25 of the constitution, which provides for a judicial remedy against a prosecutor's decision to arrest someone and/or place him or her in detention on remand. Furthermore, parliament also, in late 1994, adopted further amendments to the Code of Criminal Procedure, in order to bring the system into line with the constitution and with European standards.

Furthermore, a new draft law on the organisation of the judiciary and the status of judges is currently under examination by Council of Europe experts.

This text should make it possible to correct the provisions relating to the organisation of the judiciary which remain inadequate, so that they conform to European standards.

Hence we note a substantial improvement of the organisation of the judiciary and a clear will to improve any situations where imperfections remain.

Labour law

A few groups of employees have no right whatsoever to obtain a judicial review of measures taken against them by their employers, and this is contrary to Article 6 paragraph 1 of the European Convention on Human Rights.

The Moldovan Parliament explained that these provisions were no longer in force, since they were contrary to Article 20 of the constitution, which provides for unrestricted access to the courts for all citizens.

This explanation is satisfactory.

Death penalty

The death penalty still exists under the Moldovan Penal Code. The planned reform of the Code encompasses abolition, but there is fairly strong opposition to this option among the public and in parliament.

Prisons

Where prisons and the prison system are concerned, some doubts remained. At the meeting held in Moldova from 11 to 14 January 1995 by the Committee on Relations with European Non-Member Countries, I and two other members of the committee, Mr Solé Tura (Spain) and Mr Jeszenszky (Hungary), asked to visit a prison. We were invited to visit the Krikova prison, a high security establishment, where some prisoners are serving extremely long sentences. Having seen the whole of the prison (cells, canteens, infirmary, etc.) and had a long discussion with the Director, we felt that the conditions of detention were completely unexceptional. Some of the rights granted even seemed not to exist in identical form in western democracies.

I then requested information about the regulations on prisons, of which I was officially given a copy.

It should be noted, inter alia, that the fundamental texts are the "Penal Code" adopted on 23 June 1993 and the "Rules governing the Detention of Convicted Persons", adopted on 20 December 1994, laying down detainees' rights and obligations.

Detainees' rights:

—th e purchase of food products and personal items (the maximum sum which may be spent is the equivalent of a minimum wage laid down in Moldova);—

—th e purchase of clothing and footwear, payment for supplementary medical services, etc.;—

—br ief visits of two to four hours (eight per year);—

—lo nger visits of one to five days (four per year), families being allowed to stay in the prison "hotel" and to make purchases in the prison shops;—

—tw elve days' leave per year in their family, if they work in one of the prison workshops or on the farm.Th

These rules are the same in all the country's prisons.

4.3. Freedom of the press

During Soviet rule, all newspapers were state-subsidised and controlled.

Article 32 of the constitution guarantees all citizens freedom of thought and opinion and freedom to express themselves in public through words, pictures or any other means. The restrictions placed on this freedom of expression are the same as in any state governed by the rule of law: defamation, impugning anyone else's reputation or private life and restricting other people's freedom of expression are prohibited. The law also forbids insults to the state or the nation, incitement to war or to discord on ethnic, national, racial or religious grounds, encouragement of discrimination or territorial separatism, infringements of public order and indecent and immoral publications.

The restrictions for which this text provides are compatible with the standards and principles of the European Convention on Human Rights.

Draft legislation safeguarding and regulating press freedom, drawn up in co-operation with the Council of Europe's experts, has been adopted and seems satisfactory.

At all events, the fundamental problem really impeding the development of press freedom is the shortage of financial resources, other than those which come from the state budget, which would make it possible to create and distribute new information media.

The legal system in operation appears to me to be satisfactory.

4.4. Free movement of persons

Lord Finsberg expresses satisfaction in his report at the abolition of exit visas, which had really restricted personal freedom.

This represented a positive change in line with our wishes.

5. Territorial integrity

Two major problems relating to the position of Moldova's borders have arisen. When the former USSR was disintegrating, various declarations of sovereignty were made during a period of utter confusion.

While the Socialist Republic of Moldova adopted a declaration of sovereignty on 23 July 1990 and declared itself independent on 27 August 1991, a Gagauz Autonomous Soviet Republic was proclaimed on 12 November 1989, declaring independence on 19 August 1990, and Transnistria declared itself to be an independent republic on 2 September 1990.

Among these two regions' fears is a merger between Moldova and Romania, which they are afraid would result in their loss of any autonomy and threaten their identity.

However, the Chişinău authorities have always considered both these "regions" to be an integral part of Moldovan territory within its borders.

These situations should be examined in turn.

5.1. Relations with Romania

The question of a possible merger with Romania seems to have been resolved.

On 6 March 1994, in fact, the Moldovan people took part in a "public opinion poll" (not a referendum with legal force), 95,4% voting for Moldova to be independent of Romania.

5.2. The problems of separatism

5.2.1. Gagauzia

Most of the 153 000 Gagauzi live in south-eastern Moldova, in an area of 1 800 square kilometres of which the "capital" is Komrat. They do not, however, live in a single, continuous territory, Gagauz villages being among other ethnic groups' territories.

The Gagauzi are ethnic Turks of the Orthodox Christian faith, and they regard themselves as a homogenous group.

It has to be said, nevertheless, that the authorities in Chişinău and Komrat have come together to try to find a solution. Prior to the constitutional reform of 1994, two autonomy plans had been prepared and discussed between Gagauzi and Moldovans, and these plans had been sent to the Council of Europe so that it could give its opinion.

Neither plan was adopted, however, before the parliamentary elections and constitutional reform, and the Gagauzi threatened to boycott the 1994 elections.

Mr Snegur, President of Moldova, travelled to Komrat in person at the beginning of 1994 in an effort to prevent total deadlock. Thus the authorities were able to agree on the principle of broad autonomy for the Gagauz lands.

The Gagauz authorities consequently decided against calling for an election boycott. The turnout in the Gagauz lands was actually very high (83%).

The Chişinău authorities are anxious to find a solution which might serve as a precedent and a model for a subsequent resolution of the Transnistria problem.

An "organic law" adopted on 23 December 1994 grants "special legal status" to Gagauzia and to the Gagauz people.

According to this status, Gagauzia is "an administrative-territorial autonomous entity".

It thus proved possible to resolve the problem peacefully and democratically through negotiation.

The method used by the Moldovan authorities to resolve this awkward problem displays a fairly exemplary approach to strategy and negotiation. This settlement could serve as a model for other states of the former Soviet Union (such as Chechnya) and the former Yugoslavia (particularly Croatia).

5.2.2. Transnistria: the presence of the Russian 14th Army and the problem of the status of Transnistria

Transnistria is an area of approximately 4 000 square kilometres between the river Dniester, to the west, and the Ukraine-Moldova border, to the east. It has a population of some 700 000.

The area has long been disputed between the Ottoman Empire, Russia, Poland and Ukraine.

Forty percent of its population is Moldovan, 25% of Russian origin and 28% of Ukrainian origin.

The intensive "Russification" of the region led to the establishment of a large Russian community, which has taken over most of the key positions in industry and administration.

Russia's 14th Army, some 6 000 strong and equipped with sophisticated materiel, is based there, under the command of General Lebed.

There were four main reasons for the setting up of a self-proclaimed government in Transnistria:

—th e presence of a large Russian population;—

—th e economic pressure brought to bear by the people of Russian stock in charge of major enterprises;—

—th e presence of the 14th Army;—

—th e Slavonic people's fear of possible union between Moldova and Romania.Ar

Armed clashes in which several hundred people were killed occurred in 1992. A buffer peace-keeping force of Russian, Moldovan and Transnistrian troops is still in position.

However, Transnistria has never been recognised by the international community, although in practice it has all the attributes of a state.

The parties involved, however, have changed, and are still changing, their positions.

—Th e Moldovan authoritiesTh

They are taking a positive view of a special status for Transnistria which would give it "broad autonomy", but that would imply acceptance of the withdrawal over a three-year period of Russia's 14th Army.

—Th e Transnistrian authoritiesTh

The responsible authorities are Mr Smirnov, self-proclaimed President of the Republic, and Mr Marakutsa, Chairman of the Supreme Soviet.

a. The status of Transnistria

The situation has certainly changed in recent months, for several reasons:

—th e well-conducted negotiations between Mr Snegur, President of the Republic of Moldova, and Mr Smirnov, self-proclaimed President of Transnistria, after a considerable number of meetings;—

—th e position of Russia, which accepted the principle of an agreement and of the withdrawal of the Russian 14th Army from Transnistria;—

—th e economic isolation and inflation which are taking their toll on the country provide incentives for finding a speedy settlement.Th

Thus, moving on from the extremists' demands first for independence and then for the creation of a "confederation" or "federation", there may be acceptance of a special constitutional and legal status for the Transnistrian regions of the Republic of Moldova, within its present borders (declaration made by Mr Marakutsa at the November 1994 conference in Chişinău). The latest summit meeting took place on 15 February 1995. In Mr Marakutsa's view, a settlement might be reached by the end of the year.

b. The Russian 14th Army

It is legitimate to wonder whether the Russian 14th Army in Moldova, under the command of General Lebed, is a factor of stability or instability.

However, the prolonged presence of this army in a state whose sovereignty is recognised, and against the will of its authorities, raises the question of the principle that the sovereignty and integrity of a state governed by the rule of law should be respected.

An agreement between the authorities of Moldova and Russia has been drawn up through the CSCE. It was concluded on 19 August 1994 and signed in October 1994 by the Ministers for Foreign Affairs, in the presence of Presidents Yeltsin and Snegur.

The agreement has been ratified by the Moldovan Parliament, and the Russian Duma should soon follow suit. The delay is reported to stem from technical and financial problems (withdrawal of weaponry) and human aspects (the future of servicemen's families). We should, however, avoid minimising the Duma's hesitations and the conditions imposed by General Lebed, although he has now expressed his agreement in principle to the withdrawal. Attention should be paid in this connection to the decision taken by the Duma on 26 April 1995.1

In any case, the Transnistria problem is eminently political and purely territorial. It has no ethnic, linguistic or religious dimension. It must be dealt with in political terms. The situation, which is, moreover, moving in a positive direction, must in no circumstances be used to justify denying or delaying Moldova's membership of the Council of Europe. That would be a double penalty for Moldova and play into the hands of Transnistria's extremist forces; rapid Moldovan admission to the Council of Europe, on the other hand, can advance the dynamic process already under way.

6. A schism within the Orthodox Church in Moldova

This matter seems to be an "internal dispute" within the country's Orthodox Church. It nevertheless has an obvious political nature linked to the problem of relations with Romania.

7. An improving economic situation

One of the former eastern bloc states with the best record, according to an EBRD study, Moldova joined the CIS economic union in October 1993 (needing to find outlets for its farm products and being dependent in the energy sector).

7.1. Macro-economic stabilisation

—In flation has almost been brought under control19

1993: 2 500%

1994: 100%

1995: estimate 10%

—Th e national currency (the Moldovan leu is strong, the most stable currency of all the countries of the CIS).7.

7.2. Privatisation

March 1995: one-third of all state property was privatised (1993-94 programme, that is over 700 industrial enterprises, 41% of flats).

April 1995: parliament adopted the law on the "state privatisation programme for 1995-96":

—ov er 60% of all state property to be privatised;—

—al most all industrial enterprises are to become "shareholder associations";—

—fo reign investment to be allowed.7.

7.3. Agrarian reform

Based on the laws on "privatisation", the "real estate code", the laws on "enterprises and entrepreneurs", on "joint stock companies", on "smallholders" and on "land prices", and other legislation ...

The objects of privatisation: land, infrastructure and stock, fixed and moveable equipment.

Excluded from privatisation: woodlands, rivers, lakes, roads, quarries.

The land to be privatised represents 65% of the total area of agricultural land.

The average size of each private property is 1,7 hectares.

Early in 1995, 76% of Moldova's citizens had submitted applications for property ownership.

As farms are small, encouragement has been given to the setting up of "associations". Land is worked jointly, the land quota (1,7 hectares) takes the form of shares, and dividends are paid out at the end of the year.

At the end of 1994, there were: 127 joint stock companies, 179 co-operatives, 21 firms and 91 smallholder associations.

Under the law on land prices, and thanks to the development of a "market in land", land may be bought and sold, even by foreign investors.

Conclusions

Since independence was declared in August 1991, the new authorities of Moldova have demonstrated their desire to establish a democratic state governed by the rule of law which respects human rights and fundamental freedoms.

It has to be emphasised that the authorities have implemented an ambitious reform programme, in a difficult situation arising from the failure of Transnistrian and Gagauz representatives to take part in the work of parliament, thereby blocking a number of major reforms.

The holding of parliamentary elections in February 1994 and the constitutional reform of 29 July 1994, however, greatly hastened work on establishing the rule of law.

The Gagauz issue has now been resolved. The more complex problem of Transnistria now seems to be making better progress and could be settled in 1995. There no longer seems to be any threat to the integrity of Moldovan territory.

The withdrawal of the Russian 14th Army following signature of the agreement (although this has not yet been ratified by the Duma) would restore to Moldova full sovereignty over its territory.

These considerations lead me to give my full support to the opinion drawn up by Lord Finsberg, Rapporteur of the Political Affairs Committee of the Parliamentary Assembly, who proposes that the Assembly adopt a position in favour of Moldova's application for membership of the Council of Europe.

Since being elected in February 1994 the new parliament has been extremely busy, trying to carry out all the reforms making it possible to emerge from the transition period.

Moldova is among the states of the former USSR making the best economic progress and has been described as a diligent student of the IMF.

Finally, it should be noted that the Republic of Moldova is extremely keen to find a place in the European institutions, and that granting it the status of a member of the Council of Europe will signify recognition of its efforts past and present and will keep the momentum going.

MOLDOVA

Reporting committee: Political Affairs Committee (Doc. 7278).

Committee for opinion: Committee on Relations with European Non-Member Countries.

Reference to committee: Doc. 6873 and Reference No. 1882 of 29 June 1993.

Opinion approved by the committee on 15 May 1995.

Secretary to the committee: Mr Dufour.

1 ¹ 1. Decision by the State Duma on the situation around the 14th Army:

In connection with the situation having arisen in the Transnistrian region, the State Duma of the Federal Assembly notes that the 14th Army fulfils an all-important task of stabilisation of the situation in the region, of preventing inter-ethnic conflicts and of defending the peaceful life of the multinational population of Transnistria.

Guided by the aspiration to international stability, taking note of the results of the expression of the will of the Transnistrian population on the question "on the withdrawal of the 14th Army" as well as taking into account the organisational, technical and financial problems, connected with the withdrawal of the 14th Army, the State Duma decides:

1. To establish that the withdrawal of the 14th Army will result in abrupt escalation of the tension on the territory of Transnistria.

2. To recommend to the Government of the Russian Federation to take the necessary measures for the efficient functioning of the 14th Army.

3. To propose to the President of the Russian Federation and to the Government of the Russian Federation to take additional measures of political and economic nature towards the normalisation of the situation around the Transnistrian Moldavian Republic.

Signed: Ivan Rybkine (Speaker of the State Duma of the Federal Assembly of the Russian Federation)