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APPROVED within the Founding Congress of the European People's Party of Moldova held on July 26, 2015

POLITICAL PROGRAM

EUROPEAN PEOPLE'S PARTY OF MOLDOVA (PPEM)

CHISINAU, JULY 26, 2015

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CONTENTS

Chapter I. General provisions .......................................................................................................... 3

I. Preamble .................................................................................................................................. 3

II. The current situation, challenges faced by the Republic of Moldova ..................................... 3

III. The PPEM’s seven strategic tasks ........................................................................................... 6

IV. The PPEM’s democratic principles and values ....................................................................... 7

Chapter II. Twelve policies and reforms in twelve key-areas ....................................................... 8

1. Creating a rule of law state in the Republic of Moldova ......................................................... 8

2 Changing the public administration system ........................................................................... 10

3 Develop the civil society and ensure a permanent public control over the governance ........ 13

4 Develop the country through the social market economy ..................................................... 14

5 The banking-financial sector and its management ................................................................ 17

6 Pensions, labour and social protection .................................................................................. 18

7 Foreign policy ........................................................................................................................ 19

8 Security and the defense system ............................................................................................ 20

9 Education ............................................................................................................................... 21

10 Health ..................................................................................................................................... 21

11 Agriculture ............................................................................................................................. 21

12 Reintegration of the country .................................................................................................. 22

Closing remarks ............................................................................................................................. 23

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Chapter I. General provisions

I. Preamble

During the almost 25 years following its declaration of independence, the Republic of Moldova failed to establish itself as a functional state, able to provide equal opportunities to all its citizens and encourage the development of the private economic initiative. On the contrary, the country has been bogged down by corruption, robbery and incompetence, being subjected to a perpetual decline. It has passed through the "captured state" stage and today it is on the verge of becoming a “failed state”. Consequently, at the moment, Moldova is all-adrift; it has neither a clearly defined goal nor a reliable development course.

The current government has exhausted itself. The public confidence into the ruling political class has reached the lowest possible level and therefore, de facto, this system has no longer the right to exist. The Republic of Moldova needs a new political force that will know exactly, from the very first day, how to solve the country's problems and restore the public confidence into the state institutions.

The European People's Party of Moldova aims to bring Moldova the long-awaited change, credibility and hope for the future. The present political program, which was prepared based on the discussions we have had with thousands of people from all regions of the country, lays out our overall vision on Moldova’s transformation, but also the visions and the priorities of the citizens of this state. Thus, this program represents a social agreement that has one single purpose, namely to build up, together, a functional, comfortable and safe country at home, to change Moldova from the inside and maintain its European vector.

The achievement of this social agreement depends to a great extent both on the determination, firmness and professionalism of the new political leaders, and on the citizens’ direct involvement into the governmental decision making process, necessary to remove from power an incompetent and irreversibly compromised political class. Only in this way we will be able to be removed from the "list" of the most corrupt countries, to put an end to the conflicts of interest in the corridors of power and to break the vicious circle where the politics is treated as a business.

II. The current situation, challenges faced by the Republic of Moldova

PPEM aims at establishing a state governed by the rule of law and fighting corruption, and in order to achieve this goal we must follow the European Development Model - a model with clear and predictable rules, which has proved its reliability and high efficiency in dozens of countries that passed through the periods of transition and that were helped by this model to get on their feet again.

All the current EU member states, from the Central and Eastern Europe, have undergone similar preparation processes. All these countries experienced increased living standards, decreased levels of corruption, consolidated and credible justice systems, improved healthcare and education systems and increased investment flows. This is the mission assumed by the PPEM as well - to transform Moldova into a state based on the generally recognized values: respect for human rights, equal opportunities for all citizens, social market economy, implementation of the regional rights and of the real local governance. This code of values represents the state itself and there is

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no other way towards the contemporary world. None of the countries, which were established as modern states based on these principles, had something to lose. And none of the states that rejected these values had won. This is the only way to revive the citizens’ respect and faith into their own country. It is the course that aims at creating a government to be subordinated to the law and the citizens and not to the oligarchs and the clans.

In 2014, the European Union has abolished the visa regime for the citizens of Moldova holding a biometric passport - this was a major achievement reached by Moldova in a very short period of time. Today, Moldova is the only member of the Eastern Partnership whose citizens are enjoying this right. Then followed another impressive result - Moldova signed the EU Association Agreement, a strategic document for our country’s reformation and development but also for the provision of a large aid package.

Together with our European partners we have developed a program, under which the judges from the European Union would work with their Moldovan colleagues in order to reform the national justice system. The same thing would happen gradually in other important areas as well - prosecution, public procurement, prevention of unfair competition, shadow economy or monopolies. The purpose of these changes was to ensure a deep modernization of the country and of the society as well as to combat and prevent corruption.

We all know too well what has happened next. The successful changes that had just started began to threaten the partisan interests. That was the reason why the corrupt politicians plotted together with the Communists to impede the implementation of the launched reforms. After the parliamentary elections that took place in the autumn of 2014, a minority dysfunctional coalition was created. Being preoccupied by robberies and the enrichment of certain clans, this coalition has forgotten its commitment to implement the EU Association Agreement and has endangered the very European perspective of the Republic of Moldova. The parties that called themselves "European" stole the budgetary funds, are using the state institutions for their personal purposes and promote the nepotism principles.

The theft from the banking system has collapsed the national currency and caused an increase in prices. The MPs create committees responsible for the “investigation” of the thieves, while some parliamentary parties are covering the thieves in question. There is only one conclusion: the criminal oligarchic structure, the Moldova has been transformed in, aims at enriching some interest groups and has nothing to do with the people's needs.

Unfortunately, Moldova turned from a country with a well-defined European perspective into a buffer state between East and West. There is a real danger that the possibility of joining the European space will be suspended for decades and that the Eastern revanchist forces will change our path. The current situation of Moldova is worse than ever. We are, in fact, on the brink of collapse. Despite all these, the creation of a new, equally dysfunctional alliance, led by the same pretended “European”, but irreversibly compromised politicians, who have lost all their credibility, is currently proposed. These people have already privatized the entire state! Everyone is at their beck and call: the justice and the prosecution, the Parliament and the Government, TV stations etc. Everything is subordinated to one single purpose: protecting the illegally acquired wealth, filling the pockets of certain individuals and hiding the perpetrators of some crimes that impoverished the majority of our citizens even more.

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The Republic of Moldova does not have too much time to fix this critical situation. If the country fails to revert to the foreseeable development model, to modernize the political, economic and social systems, so as to meet the requirements of the 21st century, we will remain a realm of hopelessness, with no future development and welfare.

The perpetuation of the criminal oligarchic governance, which is being planned these days and which, by definition, will continue to misuse the state resources, will transform Moldova into a land of poverty and lawlessness, where petty interest groups establish and change rules according to their own needs. With this, the employment and demographic issues will worsen even more, as a result of the population emigration and of the "brain drain". It is absolutely clear that this government represents a path to nowhere!

In the absence of a radical break of the state’s vicious governance system, rooted for more than two decades in Moldova, no changes for the better will occur. Nevertheless, the responsible people know exactly what to do. Moreover, there is a well thought out business plan, that was almost forgotten – the EU Association Agreement, based on which the country must be totally rebuilt.

What's missing today for Moldova to build a new society, to clean up the past inheritance and remove the vices that are corroding the country is a team of strong and clean-fingered people. Wherefore, if an internal force determined to conduct de facto the reforms is not established, any external aid – either financial or political - does nothing but to destroy the state, as it feeds the corruption.

PPEM is represented by a new generation of professionals - incorruptible and responsible, with clear vision and strong will to impose the rule of law and to imprison all those corrupted. We aim at overthrowing the whole army of corrupt officials who hold their seats with might and main. We are a fundamentally different political party - a party of the people and for the people. We will serve all the citizens of Moldova, irrespective of their class or social group, regardless of their ethnic, cultural and religious identities. Our policies are based on the ethics of responsibility towards the people.

PPEM was created by people determined to change Moldova for the better; by people who are concerned by the fact that, after almost 25 years after declaring its independence, the country has failed to get rid of the stagnation, instability and poverty model; by people who are worried by the fact that the injustice, the corruption and the captured institutions are rife.

PPEM was created by people who have chosen to build a better tomorrow here, in Moldova, by people who strive to transform Moldova into a place where you want to remain and thus, to determine its citizens to no longer go abroad. We are determined to re-edify a state that would exist for its citizens, to build a society based on justice and prosperity. We intend to build a modern Moldova, a clean Moldova, with a compact and competent public administration system, with new people who have a spotless reputation. We want to bring together all people of good will around the idea of putting an end to the corruption, to return the state to the citizens, to redress the national economy and to revive the hope for the future of this country!

PPEM has demonstrated its ability to bring the change also by obtaining a good result in the local elections from June 2015 - without administrative resources, without unlimited access to the television or radio stations but with a modest campaign budget, created from the transparent

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contributions of the citizens. This result is a solid basis for the development of the European People's Party of Moldova, which aspires to become the main force promoting a European, safe and dignified future for our citizens. There is no doubt: another way for Moldova means only regression, stagnation and lack of development.

III. The PPEM’s seven strategic tasks

Only a new political force, a party with strong territorial structures but also with visions based on analyses from all the areas will be able to combat corruption, raise the living standards of the citizens and redirect the country towards the European integration path. These are the immediate priorities of PPEM, which tends to become the most important pro-EU oriented, centre-right party on the Moldovan political scene.

In this context, the PPEM efforts are aimed at achieving seven strategic objectives:

1. Create a state based on justice and integrity that encourages the individual initiative, with no excessive and unjustified checks from the state bodies. PPEM will promote the real separation of the business from politics and the release of the state companies from the yoke of the political parties. The Party will do its utmost to prepare the state to join the EU, where all the attempts to "privatize" the power and transform it into the most profitable personal business cease to exist.

2. Ensure an independent justice system that guarantees free competition, protects the human rights and the fundamental freedoms and offers equal opportunities to all the citizens. To this effect, PPEM commits itself to pursue an uncompromising fight aimed at uprooting corruption, also by establishing an EU mission, subjected to the rule of law, in order to bring in Moldova European judges and prosecutors and change our institutions from the inside.

3. Change the corrupt and outdated public administration system, which we have inherited from the Soviet period. PPEM pleads for a fundamental overhaul of the public administration system and its transformation into a compact, transparent and efficient one. We consider necessary to create a modern management system, oriented towards performance and results, as well as to train a body of professional civil servants, independent from the political factor. These goals will be achieved, inclusively, through overpowering the current oligarchic regime, which took possession of all the state institutions, as it has happened in Romania.

4. Develop the civil society and ensure a permanent public control over the government. PPEM will fight for the establishment of some clear priorities as regards the spending of the budgetary resources and creation of some mechanisms of public control over them.

5. Ensure citizens' welfare by creating well-paid jobs. To this end, PPEM promotes the development of a social market economy, based on clear rules, de-monopolized and no longer controlled by the judiciary system, where the small and medium business development and the investment attraction are two absolute government priorities.

6. Carry out all the necessary reforms for Moldova's integration into the European family, to which we legitimately belong.

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7. Reunify the country by increasing, for the inhabitants of the Transdniestrian region, the attractiveness of the right bank of the Nistru River, in the most diverse sectors.

These are strategic objectives that, in order to be achieved, will have a set of actions and solutions formulated in 12 public policies for 12 key areas.

IV. The PPEM’s democratic principles and values

PPEM embraces the fundamental value of human dignity, recognizes equal value, the diversity and the social nature of every human being. Our fundamental ideals are: Freedom, Justice and Solidarity.

1. All human beings have the same dignity and importance and are, therefore, equal by their nature, sharing the same rights and obligations. Our primary value lies in the irreversible commitment for the human freedom, respectively for the firm rejection of any totalitarian and authoritarian forms of government.

2. All human beings are born free with equal and inalienable rights. To be free means to have to right to think and choose. All people have the right to self-determination, the right to be happy and the right to enjoy the fruits of their labour. We all have the right to develop our talents and abilities.

3. Freedom can flourish only when all the basic needs are satisfied, but also when all people's human rights and fundamental freedoms are respected. One man's freedom ends, where another man's freedom begins. The freedom must be guaranteed by law and protected by an independent and impartial judiciary system. People's freedom can be observed only in a state of law.

4. Being free means being responsible for oneself and for the society. Freedom can be limited only by the need to protect the freedom of others. A free and responsible state must respect the principle of subsidiarity. The state must fulfil only those tasks which cannot be better achieved by the citizens themselves. The decision shall be taken in a manner as close as possible to the citizens, while the central authorities shall conduct only what cannot be better managed by the local communities.

5. Respecting one's talents and abilities represents a supreme value. People must be able to develop their gifts and talents. Our goal is to destroy the repressive control of the state over the individual as well as to hinder the use of the state institutions with a view to suppressing any healthy and vigorous initiative and manifestation into the society.

6. Justice encompasses social justice as well, according to which the burdens are distributed fairly in a society and the strong ones contribute more than the weak ones. Social justice also refers to the equitable sharing of opportunities and benefits, especially among those who cannot help themselves. The best foundations of the social security are the economy revitalization, family strengthening and education improvement.

7. Solidarity means mutual responsibility and implies a basic social security. Human life must be based on the solidarity with each other, solidarity with the weak and the solidarity between generations. We must show solidarity especially with those who are unable to attain and sustain the basic requirements of life. We shall manifest support and solidarity, above

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all, before the family, which is the key element of the society.

8. PPEM promotes equality between women and men, as well as supports and protects the families.

9. All citizens, regardless of their background, should enjoy equal opportunities. PPEM promotes respect for cultural diversity, tradition, family and community. We believe that the ethnic, linguistic or religious self-identification represents an individual choice. In the context of the Moldovan citizens’ linguistic and ethnic identity, the state must foster loyalty towards the country by using different methods and promote the Romanian language learning throughout the Republic of Moldova. At the same time, the creation of a prosperous state within the European Union will alleviate the existing ethno-linguistic contradictions.

Chapter II. Twelve policies and reforms in twelve key-areas

1. Creating a rule of law state in the Republic of Moldova

The establishment of a rule of law state, based on an independent judiciary system, represents the most important prerequisite of a better future. We cannot win the fight against corruption; we cannot revitalize the economy nor protect the financial system without a rule of law state. We cannot build an administrative system to truly serve the interests of its citizens and we cannot change the basis of the social and economic relations, which, at this stage, are completely destroyed and distorted without a rule of law state!

Strengthening the rule of law refers not only to punish individual abuses. We need a systemic change, we need to create strong and independent institutions, which are independent from the political or business interests’ influence, and which serve the law, regardless of the person involved. We need institutions that are encouraging personal responsibility and work, as well as confident and responsible citizens who do not tolerate oppression and paternalism.

A new generation of responsible politicians

PPEM is the party of some new politicians, which represents a credible alternative to the current obsolete, inefficient, corrupt and highly politicized system. PPEM will apply a correct and uncompromising approach as regards the promotion of the civil service personnel, the main criteria being integrity, competence and specialization.

1.1 Reform the justice system, combat corruption and fight against the shadow economy

PPEM commits itself to carry on an uncompromising fight against corruption. This is a mission that requires audacious and systemic measures. Each and every citizen, old and young, must be involved into the corruption eradication process. Each offense must be punished depending on its severity. With a view to eradicating corruption, we will ensure the transparency and the supervision of the private and public enterprise, thus preventing the fraudulent misuse of funds, the raider attacks or the massive frauds, such as those that have recently occurred into the Moldovan banking system.

Prior to this, however, PPEM will ensure a real and fundamental reform of justice, as to determine the courts and prosecutors to serve the rule of law and the Moldovan citizens, as well as to take responsibility for their actions. To this end, PPEM has proposed and will ensure the establishment

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of a European Union Rule of Law Mission, in order to bring in Moldova judges and prosecutors from the EU states to work together with the local judges and prosecutors in monitoring, counselling and ensuring transparency in the sector and to change our institutions from the inside.

According to various estimates, the shadow economy in Moldova represents approximately 50%. The problem does not reside in the lack of internal resources and money for development, but in their inefficient use and the fact that in most cases these funds are not introduced in the budget. The overcoming of the shadow economy can result in an increased tax collection. To this end, we will reform the tax system and will create a compact, professional and upright tax body, which will operate being guided by the risk assessment principle.

1.2 Create and foster an attitude of "zero tolerance" towards corruption

To this end, we will promote the following measures: development and implementation of some mechanisms allowing to legally dismiss those officials found to have conflicts of interests; cancel the illicit revenue opportunities (opaque and uncontrolled financing of the state companies; granting of privileges and benefits that are not provided by law), by means of which budgetary means are flowing into the pockets of the oligarchs and of their subordinates; confiscate their wealth.

1.3 Develop and launch anti-corruption programs

The following measures should be taken in this respect: insert the article on "illicit enrichment" into the Criminal Code; invite the European Anti-Fraud Office (OLAF) to conduct a series of controls and audits on the use of the funds provided by the EU and other donors; carry out an independent anti-corruption expertise of the legislative acts; introduce a responsibility for the overestimation of the initial prices when performing public procurements; carry out a full and comprehensive check of the civil servants’ declarations; dismiss all public officials who cannot prove the legality of their income and assets; render imperative the conduct of an annual thorough, independent and qualitative audit of all the monopolistic enterprises; establish some professional committees for the state companies.

1.4 Ensure the promotion and protection of human rights

The human rights protection is one of the PPEM’s main priorities. The conviction that the individual and civic rights, provided by law, are the same for all, that the legal rules will not be changed for the sake of some political groups and will be implemented uniformly - whatever the consequences for the "rulers of the day" would be - is the guarantee of the economic and social development of the state. We will create a mechanism of deep influence, together with representatives of the civil society from within and outside the country, engaged in the human rights protection field, on the decision-making process. Moldova must become a champion in the protection of human rights field among the countries from the Southeast Europe in order to ensure its social development.

1.5 Free competition

We are currently witnessing a reverse logic. The main purpose of the business environment is to “adapt” itself to the officials’ apparatus. Instead of producing added value, efficiency and economic growth, the business people from Moldova are looking to satisfy the unjustified needs of a huge bunch of bureaucrats, who do nothing else but to look for new ways to gain some illegal profits

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from the positions they hold. The limpets who were appointed based on their loyalty to the party control the most profitable areas, collect revenues on behalf of the state and strangle the private economic initiative.

In this context, PPEM will give priority to measures aimed at ensuring free competition and promoting individual initiative, without constant monitoring and extortion of funds from the control bodies. We will carry out a radical overhaul of the regulatory functions and we will reduce their number up to the minimum necessary. Moreover, we will reform and minimize the bureaucratic procedures and we will reduce as much as possible the contacts with the business officials. Our principle is: the fewer bureaucrats are dealing with the economy, the better for the economy and the economic development. Another priority of PPEM is to reform the public procurement system, which is one of the main sources of corruption and exclude purchases made outside the contest.

1.6 Social Market Economy

PPEM will build a strong and solid social market economy that will offer equal opportunities to all. The market economy combines the freedom of self-determination with the social responsibility and protection; protect people against exploitation and take care of those who can not to support themselves independently. The creation of a social market economy represents a viable alternative to the monopolies and the oligarchic structures of which are benefiting only few individuals to the detriment of the majority of citizens. The creation of a social market economy requires the establishment of some clear, applicable to all rules.

1.7 Real separation of the business from politics

One of the main issues faced by the state is the political control over the public companies, which is materialized in hidden incomes and corrupt actions and which brings profits only to some private individuals and leads the country into “demise and bankruptcy”. Republic of Moldova should establish, as soon as possible, a very open economic system. The state should withdraw from most sectors of the economy (keeping only its strategic assets) and get rid of the industries’ subsidizing system. More exactly, a free market, which is the surest way to destroy the oligarchy and to combat corruption, must be created.

PPEM advocates for the privatization of the key public enterprises, which are currently used for the extraction of some personal or partisan benefits, while their debts are pinned on the state. The privatization process, which is necessary to eradicate corruption within the state institutions, should be carried out with the compulsory participation of the foreign companies, under the supervision of some internationally recognized agencies that would ensure its transparency.

Through all these actions, the European People's Party of Moldova aims to achieve a primary goal - restore citizens' confidence in public institutions and create a functional state.

2 Changing the public administration system

The Moldova’s public administration system ceased to be efficient and because of being outdated, it can no longer be optimized. In its current form, this system remains a source of illicit income and corruption, for which reason it needs to be replaced by a new one. Even though, during the last years, the Government has aimed at streamlining the central public administration system, the

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actions taken in this regard led only to an increase into the public authorities’ number. Thus, if in 2009 the number of the central public administration authorities was reduced from 33 to 23, beginning with 2011 new structures were created. If in 2009 there were 8 agencies, now their number increased to 13. The Government invests in the training of the civil servants millions of MDL both from its own sources, and from the donors’ money, nevertheless, it is not able to implement an efficient policy for keeping the qualified staff.

The creation of a compact yet effective public administration system, with skilled and well paid civil servants, is one of the PPEM’s key priorities. No other change will be possible, if we do not change the state apparatus.

In this regard, our main objectives are:

2.1 Review and reform the public administration system - focus on performance and results

In order to achieve this goal, a compact and professional bureaucratic system, which will focus not on the process but on the results, similarly to those from the modern world, and which will apply modern management practices, should be created. Thus, each ministry shall be responsible for the planning and the achievement of the short, medium and long term results, following the Government’s priorities. This is a simple process that has been shown to be effective and that significantly improved the quality of the services rendered to the population. Other measures that shall increase the government’s efficiency include: ensuring an efficient process for budgeting the Government’s priorities and obliging the heads of the public authorities to report on the money they spent.

PPEM opts for the immediate conduct of a functional review of the public administration system - a depth analysis, encompassing not only the central level (Ministries, State Chancellery and other authorities directly subordinated to the Government), but also the organizational structures from within their spheres of competence, which form the administrative system thereof (subordinated administrative authorities, decentralized public services, as well as public institutions founded by Ministries, the State Chancellery or other central administrative authority), autonomous public institutions, SOEs that were delegated to provide public services.

Following this analysis, the number of the ministries should be reduced and certain agencies and departments should be merged. Ideally, Moldova needs a maximum of seven-eight ministries. In addition, the number of the agencies and of the public authorities subordinated to or coordinated by the Government and the ministries, with a view to enhancing the decisional and budgetary transparency, should also be considerably reduced.

Therefore, we will optimize the public administration structure and will create a compact and professional governing body, experienced in project management, oriented towards results and independent from any political factor, which will be able to identify priorities and coordinate the development of policies.

The human resources management will be a strategic priority for PPEM that will conduct equitable processes for the selection of the most qualified professionals to work into the national public service.

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We will encourage cooptation, in key leadership positions, experienced managers, Moldovan citizens who have studied abroad and have no "connections" at home, but also foreign managers. We will delegate to these professionals real levers that will allow them to successfully implement various reforms and fulfil their duties irrespective of any political circumstances. Moreover, we will establish progress indicators, milestones and time frames showing the achieved improvements to the citizens as well as leverages of accountability for the commitments made.

The overriding priority is still given to the judicial bodies and the prosecutor's office, where young specialists, on a competitive basis, should be employed. We call for the following measures: establishing some clear criteria for the process of selecting judges; abolishing the immunity for the corruption offenses; strengthening the professionalism and the independence of the prosecutor's office. We plead for the Ministry of Internal Affairs’ staff replacing and depoliticizing. New people, on a competitive basis, should be selected, the wages should be increased and some new staff motivation procedures should be set up.

All these measures will significantly reduce the public administration’s politicization level, and will contribute to creating a body of highly qualified leaders that will be able to take responsibility for the made operational decisions.

2.2 Reform the budgetary process and the budgetary sources spending process

The strengthening of the budget discipline entails: transferring all budgetary accounts to be served at the Treasury; ensuring transparent and competitive public procurement procedures; reviewing the budgetary and the extra-budgetary resources. The closer monitoring of the key-spending from the budgetary funds, including the funds transferred into the district or local budgets, is an absolute priority.

2.3 Streamline the planning and coordination of the public policies’ process. Reform the Public Financial Management System

These reforms are urgently needed in order to improve the quality of the public policies and of the public finances. Today, policy planning continues to be performed on an ad hoc basis, with no analysis and no focus on the real priorities, and the policy makers are dealing with a system that does not produce the quality needed to take political decisions on an informed basis. The consequences of this situation, for Moldova, are the persistent chronic and serious problems in terms of the quality of the public policies and public spending.

2.4 Designate the State Chancellery as the centre responsible for identifying priorities, planning and coordinating policies

The Prime Minister's Office needs its own strong and permanent institutional apparatus, which will provide it with support while developing and promoting policies. The Prime Minister and the ministers shall use their time only for strategic issues, not for legal or administrative ones. This role should be fulfilled by the Chancellery, which shall be a structured body, including at the staffing level and will help the Prime Minister to exercise his executive functions. Moreover, a decision-making forum, which will allow the Prime Minister and his team to make a common front as regards the major spending proposals, shall be created. The legislative procedure should be based

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on and be guided by a coherent policy development process. This will improve the quality of the formulated public policies, respectively the tax analysis provided to the decision-making factors.

2.5 Decentralize the administrative and financial system

PPEM believes that the administrative and financial decentralization remains one of the administration reform pillars, which would allow the citizens to receive more complete, more diverse and more qualitative public services. This process should be carried out only through delegation of powers. PPEM will promote strengthening of our country’s administrative-territorial units through the regional economic development prism.

2.6 ATU Gagauz Yeri

The majority of citizens from Gagauzia, the autonomous region situated in the south of Moldova, want two things: economic development opportunities and better living conditions. The EU approximation will ensure not only these two aspirations, but will also guarantee full respect for the rights of this autonomous region. Our mission is to ensure the functioning of the ATU Gagauz Yeri existing state, as well as the establishing of a calm and rational dialogue between Chisinau and Comrat, which shall not be characterized by radical requests and conditionings from one part or another. We will provide that all disputes be settled in the legal and constitutional framework of the Republic of Moldova. The promotion of the cultural autonomy and the learning of the Romanian language in the Gagauz autonomy are other two basic purposes.

3 Developing the civil society and ensuring a permanent public control over the governance

We have a passive society with still weak social self-organizing institutions. Nevertheless, no state has defeated corruption without being pressured by the society. The government should not, merely, be given the possibility of being corrupt. If such a possibility exists, those who are at the helm of the state will take advantage of it. The society plays a crucial role in this process. Therefore, the state needs an upstanding civil society as a partner to cooperate with for the purpose of achieving the country’s strategic goals.

PPEM will provide all the support necessary to develop citizen self-organizing institutions and promote policies that will ensure the permanent public control over the governance. PPEM will militate for the establishment of some clear priorities in the budgetary resources’ spending area and creation of some civil control mechanisms on such expenses. We will support the civil society, the citizens' self-government and the participation of NGOs in the social problems’ settlement and will promote the independent media.

Diaspora

PPEM will fervently defend the interests of those approximately 800 thousand people who left Moldova and went abroad during the last 10-15 years. We will encourage the “two-way street” model in the interaction with the Diaspora, combining the public policies supporting the distressed Moldovan migrants with initiatives that will involve the Diaspora into Moldova’s modernization and Europeanization processes. Thus, PPEM will support the improvement of the consular services and the opening of Diaspora centres; will promote the launch of some online services dedicated to the migrants and will encourage the signing of social security agreements, especially with the countries where the Diaspora is more prevalent - Italy, Greece, Russia; will develop an alternative

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pension system and will cooperate with the destination countries a view to ensuring recognition of our diplomas and qualifications.

The preservation of the national identity and traditions represents an important element for our citizens living and working abroad. For this reason, PPEM will insist on implementing programs supporting and promoting the traditions and the national culture, by opening cultural centres and supporting Romanian language learning programs.

Diaspora becomes a major force for the socio-economic development, by getting involved increasingly more in all spheres of the social and economic life, and by demonstrating a pronounced civic activism. Yet, except for the remittances (25% of the GDP), the intellectual, technological and participatory potential of the Diaspora is barely used in the country. PPEM will promote the implementation, with the assistance of the European partners, of a series of innovative investment and economic programs allowing the Diaspora to be involved into the country’s development, as well as encouraging the citizens to return home.

PPEM will also promote a broad as possible inclusion of the Diaspora into the political life of the Republic of Moldova. We will opt for the amendment of the legislation, so that people from the Diaspora be able to participate in the political activity of the country, we will opt for the introduction of the remote voting procedure, we will promote a series of mechanisms allowing our citizens to directly influence the Moldova’s development - exactly as they helped and continue to help the country’s economy.

4 Developing the country through the social market economy

The social market economy is a system by which the state creates market regulatory institutions. This European economic model represents a basic economic program for PPEM. It ensures favourable conditions for any kind of investments; securities for the private property; removes bureaucratic barriers to entrepreneurs; protects the economic freedom and the free competition; controls the tariffs within the natural monopolies; creates jobs; increases the revenues; ensures a high quality education and medicine.

4.1 Creation of jobs for which PPEM will implement a series of policies

• A top priority, just like the economy de-monopolization, is the provision of some legislative and institutional conditions conducive to the development of small and medium businesses, but also to the investment attraction. We will provide tax incentives and will simplify the access to cheap credits. We will simplify the procedures related to the registration and liquidation of the enterprises, modify the tax system, suppress the "state's racket" and put an end to the phenomenon of extortion among the employees of the regulatory bodies.

• The flat income tax to economy, with an optimal level of 10-12%. Our goal is to ensure the clarity, the simplicity and the predictability of the tax system; to create more jobs and eliminate the informal wages. The individual exemptions’ level should be increased up to the subsistence level.

• Decent wages will be paid only when the labour productivity will significantly increase. To this end, the state will switch entirely from the vocational education system to a dual one

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(school - enterprise) and will exempt from any tax liabilities the enterprise’s labour training-related expenses.

• The introduction of some amendments to the Tax Code exempting from income tax the dividends reinvested for the purpose of preserving and increasing the number of the employees.

• The introduction of a regressive scale for calculating compulsory social and health insurance quotas, so as to encourage the "white" payment of some as large as possible salaries.

• The domestic market is a small one, so the companies are forced to focus increasingly on export. Since the foreign market competition is very strong, the companies have no choice but to deliver unique, niche products. In order to facilitate the innovations, a national program financially supporting the innovative firms, to be implemented through the microfinance institutions and through the considerable expansion of the PARE 1 + 1 Programme and of the those financing the young entrepreneurs, is needed.

• Gradual change of the labour culture.

4.2 Reduction of the control functions

The supervisory authorities must realize that the private initiative represents the state’s core and that the public institutions are obliged to create suitable conditions supporting the entrepreneurial spirit, not to punish and rob the business environment. So far, however, the bureaucratic apparatus itself needs to be constantly supervised and prevented from strangling any innovative initiative. That is precisely why we will conduct a thorough review of the functions that have been assigned to the supervision and control authorities so as to keep only the necessary really functions and release the business environment from the constant pressure of the corrupt bureaucracy.

We ought to put an end to the corruption from the business environment. It is our only chance to ensure the transfer of technologies in Moldova and the flow of investments that, at their turn, will create jobs. There are many companies interested in working under such conditions, especially when having access to the Western and Eastern markets. Along with this, we can increase the tax collection and the budget breakdowns; respectively we will be able to increase the investments in social and human potential of the country.

4.3 Ensuring free competition and abolishing monopolies

As compared with the population’s income, the prices in Moldova are unreasonably high. A large number of businessmen are financially flourishing at the expense of both consumers and producers. The prerequisite for ensuring fair prices on the market is to guarantee effective competition between companies.

Various analyzes of the value chains for each important product and service should be carried out with the help of foreign experts and the critical constraints leading to price increases should be identified. These shall be removed either through better regulations or the implementation of the Criminal Code provisions. A cardinal new law on the petroleum products’ market to determine an

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easier way for the new producers to access the market, decrease the profit margin (about 40% today compared to 20% in Romania and Bulgaria) and, therefore, lower the prices shall be adopted.

We will aim also at improving the efficiency of the national regulator within the competition field - the Competition Council. Although there are recent legislative provisions transposing largely European practices in the field, the Competition Council does almost nothing to promote the competition, the fight against cartels, against the hidden anti-competitive agreements and the abuse of dominant positions. The Competition Council, along with other specialized regulators, will ensure a healthy competition on the product and service markets. Those who founded or are participating in cartels will be punished under the provisions of the Criminal Code.

4.4 Setting standards

The quality, just like the prices, depends largely on the market competition level. The more intense the competition is, the higher, on average, the quality will be. Moreover, an important role in the quality assurance process belongs to the mandatory standards that are fixed by the state. All those wishing to access various aid programs or participate in public procurements will be obliged to meet these standards. The intervention capacities and the responsibilities of the Consumer Protection Agency should also be increased.

4.5 Reforming the budgetary and tax systems

Here, the emphasis will be placed on the performance-and results-oriented budgeting. As an argument for the funding volumes offered to the ministries and departments shall serve the information regarding their performance. PPEM will ensure a responsible and efficient use of budgetary resources based on very clear analysis of the priorities. The medium-term budgeting must represent the basis of the planning process within ministries and departments. Without the presentation of the medium-term expenditure plan - describing clear financing priorities and achievable results for people - funding is not possible. Ensuring maximum transparency in the national budget execution and establishing a precise timetable for its implementation are essential.

4.6 Infrastructure modernization

PPEM will consistently improve the Moldovan infrastructure - a way to access the modern world and a guarantee of the economic development. Each town or city from our country must have an urban development plan. Today, not even Chisinau has such a plan!

We will promote policies designed to provide all the localities from the Republic of Moldova with access to transportation networks that must meet the European standards. The repair of the key-roads and infrastructures will be one of the PPEM’s top priorities. We will focus on the local roads, which have been practically ignored so far. For this purpose, we will continue the policy for attracting European and international funds, preferably in the form of grants.

4.7 Energy diversification

One of the major commitments that we have undertaken is to fully implement the requirements of the Third Energy Package. Moreover, we are planning to diversify the energy suppliers, which will ensure the country’s energy security at regional level. A rational step in this direction is the Iasi-Ungheni pipeline, with a capacity of 1.5 billion cubic meters of gas per year. We will focus on its

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extension up to Chisinau and this represent the lion's share from the energy consumption of the Republic of Moldova. The gas price will be competitive.

The same applies to electricity. The interconnection with the European energy supply system is our basic purpose. Following the appearance of alternative sources of electricity, the price will decrease. And this is an advantage for all the citizens.

In the energy sector, Moldova must continue implementing a predictable policy and avoiding accumulating debts, since in the near future the country will remain dependent on a single supplier and will be exposed to risks during the cold season. In order to reduce these risks, an adequate records and tight control of the country's energy consumption are needed; technologies that will reduce energy consumption and will conserve energy must be used. Moreover, it is necessary to attract private capital into the energy sector in order to create generation capacities.

4.8 Water supply and sanitation access

The provision of all the Moldovan localities with water is one of the most important PPEM’s infrastructure priorities. We will achieve this goal both through internal resources and external projects. To this end, we will develop a preferential investment program. Moreover, we will work upon a program aimed at improving the existing infrastructure as well.

4.9 Tourism development

The Moldova’s tourism attractiveness level increases along with the intensification of the economic integration into the European community. The rural tourism provides the village residents with a real opportunity of gaining an additional source of income. The state will create conditions to support those who initiate activities in the given field, within a National Programme aimed at providing financial support for the endowment of the host-households with the minimum necessary facilities. Moreover, the export of some traditional products and handicraft items should also be supported.

5 The banking-financial sector and its management

The “robbery of the century”, which overturned the banking sector of the Republic of Moldova, represents another proof of the fact that the state institutions are captured and serve the interests of some political criminal groups. The perpetrators of this serious offense must be found and punished to the fullest extent of the law. PPEM pleads for an independent investigation conducted by a foreign team, and the publication of the results. We are interested in the conclusion of the processes related both to the theft from the "Savings Bank", "Unibank" and "Social Bank" and the inactivity of the state institutions with respect to this case. It is undisputed that those who stole the money must be condemned and the stolen amounts be returned to the citizens. Likewise, investigations regarding the actions/inactions of the state bodies responsible for the monitoring and protection of the citizens' interests for the purpose of identifying the accomplices among the policy makers and punishing thereof are to be carried out. Today, the published articles on this theft are of no consequence. What really matters are the measures Moldova takes to punish the thieves and to recover the money. Of the utmost importance are the measures Moldova takes – if it takes - for the sound management of the financial-banking sector. This sector is essentially managed by one and the same power holders, which inevitably induces some risks. It is a sector where there is no transparency, where credits are given either to some affiliated entities or it is known from the

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beginning that they are bad. Moreover, a fraudulent transfer of bank shares from one owner to another is constantly conducted.

At the system level, the bankrupted regulatory framework has generated a lot of problems. There is no doubt that the financial-banking sector needs to be subjected to a serious reform and a thorough rehabilitation process. Firstly, it is necessary to strengthen the competences of the public regulatory authorities to intervene whenever necessary. The problem lies not only in the absence of some influence levers, but also in the incompetence and the corrupt nature of the responsible persons. In this situation, only the introduction of some radical changes, with the support of international financial institutions, would contribute to the stabilization and development of the banking sector.

6 Pensions, labour and social protection

Our goal is to build a society of equal opportunities, based on the social justice and social solidarity principles between the weak and the strong. This means that the most important prerequisite for the existence of a free society is not only the triumph of the private initiative, but also the development of a social support system. As regards the pension system, the active labor-force exodus leads to the rapid aging of the Moldovan society. Today, the shortage of the expenditures necessary for social protection and incomes from the pension fund denotes instability.

6.1 The pension system reform

The pension system crisis was caused mainly by the informal employment phenomenon and the tax evasion - symptom of an acute public distrust into the state institutions. Thus, 80% of Moldovans do not trust the national pension scheme, and 70% believe that the pensions are unjust. In order to restore citizens’ confidence, the reform should be started with:

• Reviewing the formula used for calculating pensions, by increasing the allowances for each year of contribution, or by increasing the average monthly income, so that the citizens, upon retirement, be able to receive pensions proportional to the contributions made during their economically active life. Today, on average, for each 1 MDL paid to the pension fund by or on behalf of the employee, the pensioner receives less than 0, 50 MDL.

• Reviewing the annual pension indexation formula. The pensions must be indexed. In this sense, the growth index of the prices for goods and services consumed primarily by the pensioners should be applied - above all, for essential food and medicines.

• Cancelling all the undeserved benefits for the MPs and judges' pensions. The pension is not a remuneration of the merits to the state, but a manifestation of solidarity within the society. Every person shall receive a pension proportional to the contributions he or she has made.

• Increasing the minimum wage per economy from the current 1650 MDL to about 2000 MDL. In this way we will ensure higher revenues into the social insurance budget.

• Introducing private pension funds

6.2 The social protection system reform

Currently, the state aid is granted based on the income assessment - a system that has demonstrated its consistency and enormous impact on poverty reduction. If all the state’s resources for social

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protection would be given strictly based on needs, rather than on subjective criteria, the money would be enough to raise above the poverty line all the needy persons.

• The motivations for fraud must be removed from the system. The social workers should be obliged to sign, for each approved social assistance file, the declaration confirming the absence of any conflict of interest and inform about the existence of any family relationships with the beneficiaries. The role of the local communities in monitoring (not granting itself) the social aid should be increased.

• The minimum guaranteed monthly income should be increased from the current level of 700 MDL up to the subsistence level of approximately 1,700 MDL. This increase will have no impact on the budget, if all the social protection resources will be allocated as state aids.

7 Foreign policy

At the external level, PPEM aims to conduct a responsible, coherent and balanced policy, so as to ensure the country's European integration and strengthen its relations with the international partners.

In this regard, the basic purpose of the Moldovan foreign policy, which PPEM promoted and will continue to promote, is the approximation to the EU, and subsequent integration into this community structure. The achievement of this objective depends largely on the success with which the internal reforms will be implemented. On this ground, PPEM will insistently promote the implementation of the EU Association Agreement, which creates the necessary framework for implementing reforms in all the sectors. Thus, the domestic and foreign policies are closely interrelated, the achievement of the strategic goal to become a UE member state being conditioned by the results obtained following the implementation of the internal reforms.

The PPEM’s commitment to promote the EU accession goal is an option taken in favor of some values and efforts aimed at modernizing Moldova. The European integration is the most ambitious domestic reform program, based on a roadmap – the Association Agreement. Its full implementation will enable Moldova to anchor into a democratic and predictable space, based on the rule of law and respect for human rights. PPEM shares this option, considering it as being the only solution for a more just and prosperous society in Moldova. PPEM believes that Moldova will become part of the European family characterized by common values equal rights and solidarity – a space we naturally belong.

We will avoid the geopolitical competition - our primary goal is the country’s development. Nonetheless, we are confident that the strategic partnership with the European Union is the surest way to achieve our goal.

7.1 The development of bilateral relations

Within the bilateral dialogue, PPEM will promote a dynamic and active foreign policy, aimed at promoting the national interest and the mutual respect. The need to boost the bilateral relations with the EU Member States and other relevant partners, especially in the commercial-economic area, is obvious.

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When dealing with the neighbours, PPEM will pay particular attention to Romania, including in the context of developing a strategic partnership for the European integration. To this end, Romania was and will remain the country with which relations are built in a particular political framework, based on historical and cultural ties. Moreover, this framework will be used to insistently promote joint infrastructure and energy interconnection projects. PPEM will also promote deepening of the relations with Ukraine, in the political and economic fields, in energy security, in regional and international cooperation and the Transdniestrian conflict settlement.

The USA is an important partner for Moldova that gives us significant support for the implementation of reforms and modernization of the country. With this in mind, PPEM will promote the further development of the US-Moldova Strategic Dialogue.

The Russian Federation remains an important partner in the relationship with which PPEM will opt for pragmatism, mutual respect for the national interests, strengthening of the political dialogue and economic cooperation development. A particular attention in this dialogue should be given to the matter related to the withdrawal of troops and armaments from Transdniestria, as well as the Transdniestrian conflict settlement based on the respect for the Moldova’s sovereignty and territorial integrity.

7.2 The multilateral format

PPEM aims to conduct an active foreign policy within the international organizations, using these platforms for promoting the country's national interests. In light of this, special attention will be paid to the activities performed within UN, OSCE, and Council of Europe.

As regards the relation with NATO, we proceed from the assumption that Moldova is constitutionally a neutral state and we respect this choice made the country and its citizens. Therefore, joining NATO is a must. Moreover, we must fully harness the potential offered by the current relation with NATO, in order to strengthen our relationship in the non-military and humanitarian dimension, conducted by the North Atlantic Alliance in our country, as well as to develop the national army and the defence capacity of the state.

As regards our relations with the CIS countries, PPEM is interested in expanding the trade on the Eastern markets and the approximation to the EU does not contradict this approach. On the contrary, our country may be part of several FTAs, and if the technical requirements and the quality criteria are complied with, the producers are entitled to export their goods in both directions.

8 Security and the defence system

PPEM aims at increasing the country's security through regional and international cooperation, including within the UN, OSCE and NATO’s “Partnership for Peace” (PfP) Programme. Moldova is going to participate, along with other neutral states, in the UN’s internationally mandated peacekeeping operations. PPEM is seeking a solution to the regional conflicts, including Transdniestria, through political means and negotiations and only under the international law.

We plead for the implementation of several deep reforms and the improvement of the institutional, organizational and functional frameworks of the institutions responsible for maintaining public

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order, such as the Minister of the Interior. MIA should be a compact and an apolitical institution. The Information and Security Service must meet the requirements of the contemporary world and address the risks and challenges faced by the country.

Alongside with the regional risks to the security of the Republic of Moldova, a serious threat is represented by the internal problems which ruin the society and achieved the highest levels: increased corruption, dysfunctional and captures state institutions, low standards, lack of social and economic development. Here, the best available model for our country’s modernization and development, which is also a guarantee for the security policy strengthening, is the European integration.

9 Education

For PPEM, the education system improvement represents the best investment in our children and in our country, is also the best foundation for a better future. According to some studies, the today’s education system does not produce the skills and competences required by the employers, which has become one of the key constraints to the economic development.

PPEM will continue the reforms aimed at ensuring equal educational standards for all, combating fraud and increasing the investments into the teaching staff. It will support the curricula modernization and the vocational education development, so that the trades and skills of those trained to be in compliance with the requirements of a modern economy. Thereby, we will provide the young people with the best qualifications for a successful integration into the labor market, while this will generate better investment conditions for our country and better paying jobs for our citizens. We plead for an education system focused on the needs of the contemporary life and for a greater autonomy of the educational institutions.

10 Health

PPEM promotes the right of every citizen to health. PPEM aims to ensure the universal access to the care and treatment services, by improving the healthcare system and strengthening the essential public health functions. The set of services provided to all the citizens must be of high quality and affordable.

A primary objective set by PPEM is the removal of the unofficial payments for the health services and of the corruption, through the introduction of modern management practices in each medical institution, including the promotion of the trained managerial staff. Transparent mechanisms for the procurement of medicines and medical supplies within the health system, including by internet, will be implemented. PPEM pleads for the expansion of the medical insurance system over the uninsured persons, as well as for the improvement of the target groups’ selection process from budgetary transfers. PPEM will develop several mechanisms designed to motivate the health workers, based on quality indicators. To this end, performance-based payment mechanisms with standard sets of quality/performance indicators for the health care providers will be introduced.

PPEM supports the optimization of the primary health care service and promotion of a broad autonomy for the primary health care institutions, especially in rural areas.

11 Agriculture

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The fertile soils, the high quality products, as well as the rich countryside culture are invaluable national assets of Moldova and a unique heritage that must be preserved for the future generations. The EU Free Trade Area, established upon the conclusion of the Association Agreement, provides unique development, expansion and investment opportunities for our agriculture.

PPEM will promote the agricultural modernization, encouraging the producers to take full advantage of the open European markets but also maintaining and improving the access to the CIS markets. Moreover, we will foster the exploration of new markets, beyond Europe. We will improve the infrastructure and will develop tools ensuring increased financial protection to the producers, so that they may better cope with floods, drought and possible trade restrictions based on political reasons. To this end, we must suppress the nepotism-based financing practices and improve the availability of loans with fair interest rates, including those originating from foreign aids or small loans. The subsidies granted for the purchase of agricultural machinery will be distributed under fair and non-discriminatory conditions, regardless of the farm’s size or the beneficiaries’ political affiliation.

PPEM will reduce the regional disparities in terms of technical equipment for farmers; will support the technical modernization of the agricultural sector by extending the irrigated areas; will foster the creation of units supplying modern and quality inputs for agriculture and agricultural products, meant to increase production and the average yields; will encourage the programs designed to promote the local, competitive and qualitative agricultural products, on the domestic and foreign markets; will promote the extension of the cultivated crops and increasing the range of plant and animal products, such as the aromatic herbs used in the production of essential oils, aquaculture and apiculture.

PPEM will strive to halt the rural population exodus and create conditions for the return, establishment and employment of the people who go to work abroad. Combating rural poverty and providing the rural population with stable jobs and decent wages as well as qualitative education and health services are a priority for the Party.

To this end, PPEM will support development and diversification of the economic activities in the rural areas and increasing population employment through the creation of micro, small and medium enterprises, by creating jobs and improving the rural living conditions. We will provide facilities encouraging the young farmers to purchase agricultural lands.

12 Reintegration of the country

PPEM aims at finding a viable and sustainable solution to the Trandsniestrian conflict, under the 5 + 2 negotiations and based on Moldova’s sovereignty and territorial integrity respect. PPEM insists on the withdrawal of the Russian military forces from the territory of Moldova and believes that the current peacekeeping operation should be transformed into a mission of civil observers with international mandate.

An extremely important detail of the Transdniestrian conflict, which strongly distinguishes it from other conflicts of this kind, is the fact that there are no issues in terms of trust, understanding and cooperation between the people. There are, however, a series of artificially created obstacles hindering the natural interaction between the people from both sides of the Nistru River. Our goal is to eliminate these barriers, and therewith - ensure restoration of the cooperation relations, re-creation of the common areas and strengthening people's welfare. The region goes adrift because of

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its self-isolation and is in urgent need to be integrated into the regional economic processes, and the achievement of this goal represents the most realistic way to ensure the country’s reintegration.

Closing remarks

The PPEM’s task is to build another Moldova, on different principles and for all those who want to live in such a country. A country where the state institutions are not corrupted to the core and are not preoccupied only by the fact how to enrich the political oligarchic clans. A country that puts no “sticks in the wheels” of the entrepreneurs, but, on contrary, provides its citizens with equal opportunities and encourages the individual initiative.

The citizens of our country have different views. None of them, however, is against the development model proposed by PPEM. They are against backwardness and poverty, against corruption, bribery and sold judicial courts, against negligence and rudeness. They revolt against despair and hopelessness, attacking more and more people.

Nevertheless, Moldova is not doomed to eternal stagnation and provincialism. The world around us went forward, towards economic and social progress, and we have a lot to recover. It is undisputed that, if we fail, we country will go bankrupt and descend into chaos. But it is equally obvious that without the trust and direct participation of the citizens, reconstruction of this state is impossible. The European People's Party is able to build another Moldova. And we'll do it together!

Chairperson of the Party

Iurie LEANCĂ