Prime Minister Pavel Filip has presented today, in the Legislative Plenary, the report on the implementation of the Government's Activity Program for 2017.

Prime Minister also spoke of Government's achievement from last year, as well as the problems that require more effort and attention.

Full Speech of Prime Minister Pavel Filip:

"Mister President of Moldovan Parliament,

Deputies, 

Assistants,

I stand here today, in front of you, to present the report on the Government's Activity Program for 2017, but beyond the numbers and actions, some important indicators shows that we are moving in the right direction, while at the same time, that it is time to increase our pace, so that people will be able to feel the improvement in their daily lives. After 2016 we managed to stabilize the country's economy, in 2017 we set the base for reforms, while in 2018 we begun building. Both literally and figuratively.

Generally, I do not usually praise and speak of triumph. I prefer for the Government to prove itself through actions rather than words, while the results to be felt by citizens. Therefore today, I stand here, not to praise ourselves through the report, but to speak of the latest development, so that you will have the full picture when discussing and coming forward with suggestions.

I will use this chance to also address to the citizens. I wish for everyone to know that despite having positive developments over the past two years, much has yet to be done. We know the areas that are still lacking. We will continue our work, to bring changes.

Deputies,

We begun those changes from the most painful point, from the Government. In 2017, we initiated a central public administrative reform. We cut down half of the Ministries, and therefore, the number of Government's staff was reduced from 2 000 to a bit over 1 000. It was important that the salary fund remained the same, which led to salaries being increased, causing professionals to wish to remain working for the Government. It is important to understand that changes begin from improving the quality of policies, which can only be elaborated by professionals.

It must be mentioned that increasing the salaries was an aim. At the level of Ministries were improved the business processes, were eliminated improper positions, delimit the policy-making competences from regulatory and control. The institution for secretaries of state was introduced, which means that a superior control body was depoliticized. Over 100 million lei were saved due to the optimization of administrative expenses. The central public administrative reform continues to 2020, being followed by local public administrative reform. Therefore, in the near future, we will have reformed authorities, while interaction between citizens and public services will be simplified.

To simplify things for citizens, we created in 2017 a Public Service Agency, by fusing 5 institutions, so that people will be able to use a single window for the 1 000 public services. To this summer, 38 desks will be opened in the country, 6 already being functional. It means that people no longer need to stand in lines to gain their passport or register land. Additionally, those services are also offered electronically, avoiding contact with employees, which will reduce corruption.

We used the same principles in the business environment. We launch a reform upon control bodies. We reduced by nearly three times the number of necessary documents (from 416 to 149), while the number of control bodies decreased by 4 times (from 58 to 13 and 5 national regulatory authorities). Even the time to gaining those documents decreased by 3 times, while the private and public sector can now save every year over 100 million lei.

Business environment is now more predictable. Last year, in the fiscal policy, we managed to establish regulations for 3 years ahead, we modernized the Labor Code and simplified the procedure of gaining a work permit. We facilitated young people and women in business, as well as renown programs for migrants who returned from abroad and wish to launch their own enterprise. The report Doing Business shows that in Republic of Moldova it is already easier to launch a business, our country having risen by 20 positions in the ranking.

All of those actions were also meant to encourage investments and create jobs. The effects can already be seen. Last year 115 million USD were invested solely in the free economic zone. The number of employees in ZELs increased by 65%. While in the economy were created nearly 60 000 new workplaces. To attract investments, it was also decided to invest 40 000 lei for each new created job.

Those actions and decisions were taken to stimulate the economy and it brought effects. We managed last year to gain a 4.5% economic growth, while the medium average salary rose by 12%, reaching 5 700 lei, having reached over 6 000 lei this year. We know that the situation is still far from ideal, but the data shows that the economy is recovering. In 2017 exports increased by 20%. From the total export, 65% headed to European Union. In only the firs three months of the year, export rose by a third. This positive evolution allowed us to request European Union to increasing quotas for the export of grapes, plums and cherries on the European market.

Agricultural production increased last year by 8.6%. We also assisted farmers, while the fund for subventions reach 900 million lei, by 200 million lei more than last year. This support, as well as modern technologies brought harvest. We reached a record wheat production last year, on average 4 tonnes per hectare, while in the North it reached over 6 tonnes. Such results were registered last time in 1990.

We also took into consideration the It sector, which generates the biggest salary, on average 17 000 lei, which I hope motives young people to remain in Moldova and not seek employment abroad. We created the first IT park, which already registers 170 resident companies, with planned sales of 1.4 billion lei for 2018. Government's policies and initiatives, the single 7% tax and a simplified report mechanism generated ICT exports of nearly 60% last year. In 2017, Tekwill Center from Chisinau trained nearly 8 000 people, while in 2019 we might open a Tekwill Center in Balti and in the near future one in Cahul.

Still, there is much to be done for businessmen to feel comfortable in Republic of Moldova. We know this. We also know that we need a stronger business environment for the country's development, which will maximize the national economy's possibilities. We know that investors will have no interest in a country lacking the rule of law and democratic institutions.

Therefore, to improve the trust in the state, efforts were made to stabilize the banking system, which was in a horrible state, after the bank fraud scandal. Bit by bit, with the support of IMF, order was created in this area, consolidating the Central Bank's attributions and ensuring transparency.

Those efforts brought results, while since the beginning of this year we could announce that a major foreign investor: Banca Transilvania, which along with EBRD, became the major stakeholders of a Moldovan bank. For us, this is a positive sign that everything is slowing coming back to normal and we are on the right track. Another positive sign is the slight increase of offered loans, as well as deposits, which means that people are starting to trust again the banking system, especially since loan rates decreased lately. Loans are linked to economic development.

When I became Prime Minister, we faced distrust. Prices were increasing with a record peace of 14%, while now inflation rate dropped under 4%. For example, two years ago, in order to offer salaries and pensions, the state had to borrow from the internal market 26%. Step by step, we recovered trust in state institutions, therefore, loan rates decreased by 4%. Meanwhile, revenues to state budget rose in 2017 by 7 billion lei, or by 16%.

Last year Fiscal Service was reorganized. As a result, this year, in March, Fiscal Services gained a record breaking 1.2 billion lei in only 2 days. It was all thanks to economic agents becoming more responsible and paying their taxes in time. At the same time was reorganized Customs Service, making its activity more efficient also brought to the budget record breaking revenue in 2017. We speak of 20 billion lei, by 3 billion lei more than in 2016.

Those increased revenues allowed us to increase allocations for social and health programs and we managed to reach our aims faster in the pension reform. Those who retired after April 1, 2017, had their pensions recalculated based on a new formula, therefore those who retired last year had their pensions increased by a third.

Today we can say that we adjusted pensions for all people who retired after 2000. The average old-age pension, for example, from 1 300 to 1 600 lei, on April 1 this year, which means a 20% increase. Resulting in the average pension being bigger than the subsistence minimum for pensioners.

We are confident to have established a base for a correct and equilateral pension system, where deputies, ministers and prosecutors will no longer have pensions a few time bigger than teachers and doctors.

We tried to bring correctness in other areas as well, in 2017 for the first time in Republic of Moldova was established a tax for luxury real estates, while this year will be introduced a tax for luxury cars.

We look realistically on those achievements and know that it is not enough. We know that our citizens have a hard life, while some of them, an extremely difficult one. Only know this, we know in which direction we wish to continue. We never hid from reality.

We tried, within the existent financial resources, to increase allocations and indemnities. In 2017 we offered social assistance to over 200 000 people. Last year, indemnities for childbirth was increased by 2 000 lei, reaching this year 5 600 lei. We introduced allocations for mothers that give birth to twins, while this year, orphans will daily receive money from the state.

I also know and accept the displeasure of the citizens regarding the health system and medical assistance services. This sector faces multiple issues: from excessive bureaucracy and corruption to lack of staff, especially in villages.  Last year we begun a few processes in the field. By fusing 37 institutions, we created the National Public Health Agency, which will concentrate on promoting a healthy life style.

Changes will follow in primary and hospital care. Two weeks ago I examined at the Government the primary medical care reform concept, after the European model, which aim to develop the role of general practitioners in families, to solve the issue of lack of staff members  in villages and to increase the quality of medical services. Indemnities for young specialists in the field were increased by 50%, those who chose to work in villages, will receive 45 000 lei each.

We wished to encourage in a similar way young specialists in the education field. Close to 1 300 young specialists had indemnities increased to 45 000 or 36 000 lei, depending on their qualification. Here I also remind that salaries for teachers increased by 11.3% starting September 2017. Despite their salaries still not matching the amount of work they do in schools, we tried to make their activity simpler and easier, including by decreasing the number of reports and tasks to some specialists.

At the same time, starting September 1, 2018, first graders will study a new chapter, digital education, therefore teaching them a trade that will be required in the future. We wish for young people's knowledge to meet the requests of the market, therefore we considered dual education. In the study year 2017 - 2018, by 3 times more students, 700, are being taught the trade by enterprises.

In 2017 we also though of culture, by continuing restoration and valorisation of cultural heritage. Restoration of the Organ Hall or Bogdan Petriceicu Hasdeu Republican Theatre, proves our wish to consolidate that our country has values. We launched a reform in the national research and innovation system and created two new agents that will contribute to the country's modernization.

We wish to improve people's quality of life on both banks of Dniester. In Transnistria, we registered significant progresses in 2017, also mentioned by our foreign partners. I speak first of all of the 4 protocols signed between Chisinau and Tiraspol, regarding the schools teaching with the Latin alphabet, graduate diplomas from Transnistria, access for farmers to their lands and restoring telephone lines. Following a recently signed decision, cars from Transnistria will receive neutral plates and will be allowed abroad starting September 2018.

I wish to mention here that we will have a data base, meaning we will know who and what is being registered. Therefore we will be very careful for everything agreed upon to be respected. Two weeks ago, we allocated 15 million lei for schools, kindergartens, culture houses, sewage system. A crucial project is the establishment of joint border control with Ukraine. 

With the support of our colleagues from Kiev, starting 2017, was opened the first joint control crossing point Cuciurgan-Pervomaisk, we will continue this year, including the Transnistria segment. It will be the first time Chisinau will have control over all its borders. We aimed to gain certain results for the citizens from both banks of the river, the obligations are now set into practice, meaning that we will be able to bring our dialogue with Tiraspolul on a new level.

I mentioned before, relations with our colleagues from Ukraine are strong. Together we managed to identify solutions to maintain and develop the ecosystem of Dniester and we requested European Council's assistance to perform a massive ecologic study of the river. We also have formed a mixt commission on the protection of Dniester. Relations with Romania, beyond the constructive and pragmatic relations, are of brotherhood.

We also gained success in the construction of Ungheni – Chișinău gas pipeline, as well as electricity interconnection with Romania and European Union. It must be mentioned the development of relations with USA, as well as our efforts to overcome the period with complicated relations with Moscow. Chisinau has today an efficient and worthy foreign policy.

I must remark that our dialogue with NATO was amplified by the opening of NATO office in Chisinau, at the end of last year. We believe that neutrality does not mean isolation and that it must be included in all dialogues with relevant officials of regional security. We will slowly forsake mandatory military service and build a standing army, where soldiers will be employed based on a contract.

Deputies,

I wish to say that I share the citizens' disappointment regarding the fight against corruption and the justice reform. Along with all of you, last year we managed to improve the legislation and created the National Integrity Agency, Service for Preventing and Combating Money Laundering and Crime Assets Recovery Agency. Survey shows that the trust of citizens in the justice system rose by 3 times, reaching 24%. At the same time, we know that it is not enough to have a legal framework approved. A correct implementation is important. We are also dissatisfied by the way officials from this system are working, therefore changes in this sector will remain a priority for the following years.

Those, along with other things, are the subjects discussed with our foreign partners, while our relations were always based on pragmatic approach, based on actions. When I became Prime Minister, foreign debtors, IMF, World Bank, froze all relations with Moldova, while European Union suspended all financing. Nevertheless we proved that we can work better when under pressure.

With slow but sure steps, without promising the world, we set our own aims and reestablished those relations and regained trust. We signed an agreement with IMF, while last year, just like this year, gained positive feedback from the institution's experts, and we will following receive a new tranche of 35 million USD. Last year, European Union offered us a new trust loan, when it announced that Moldova will be offered a macro-financial assistance of 100 million Euro. We aim to complete all necessary terms.

Colleagues,

Last year we established the base of some projects, whose benefits will be felt by the citizens. We know that one of the reasons why young people chose to move abroad is to be able to purchase a home here, in Moldova. Therefore in 2017 we launched the First House project. I am glad to see that the first families that benefited from the project already moved into their new homes. At the same time, we wish to extend the project, allowing certain categories of citizens to purchase their homes at half the price, the state being the one to cover the other half.

Last year we begun working on another project. We wish to transform the whole country into a construction site and to build roads, especially when speaking of settlements from Republic of Moldova. We wish for people to reach their homes, schools and workplaces easier. We speak here of an 1.6 billion lei investment for the construction of 1 200 km of roads in  1 200 settlements, for the comfort of our citizens.

Another ambitious project that we tested last year and launched this year, with 9 months earlier than foreseen, is the 112 Service, which will reduce the time necessary for help to be dispatched and will connect the 3 existing emergency services from Moldova. At the same time, with the support of foreign partners, law enforcement was supplied. New cars were purchased, modern computer technology and specific equipment. In 2017 was launched the concept of community policing, crime rate having decreased by 15% compared to 2016. In 2017 it was decided for police officers to receive bonuses worth 25% of the fines, hoping to reduce corruption in this field.

Deputies,

The Government does not have its head in the clouds, we clearly know the problems of our citizens. We know that the standard of living in our country is not perfect. It has not yet reached the necessary level, but we are determined to bring changes, we know it and we know how to do it. It is important to understand exactly what are the challenges we are confront with, only then must we take decisions, because those decisions that we take today, will define the next 10-20 years.

Therefore I and the Government I lead, established 3 major priorities for 2019-2021, that were approved by the Government: education, justice and infrastructure. Those are the three direction our activity will be based on.

We understand that the quality of our education is not matching international standards. We need a new vision on education, because minor changes are no longer effective. The whole system needs to be remade, so that specialists will be created here, in Moldova, able to compete with the European standard. We are already working on the elaboration of said vision and the way education must be changed for the future generations.

We also lose from the injustice from Moldova, which is a sensible topic for all of us. This system proved to be difficult to reform, as other tired before as well. We decided to take one step at a time. To first established a set of point-based measures, we call the "small" justice reform, measures and projects that are already launched and will be implemented this year. We will evaluate the integrity of judges, will create more efficient mechanisms to bring people to justice in case the law in breached and will make the justice system more transparent through randomly distributed files and video and audio registration of court hearings.

Last but not least, we wish to concentrate on things that people encounter on a daily basis, which establishes their quality of life. I speak here of infrastructure. We wish for our citizens who return from abroad to travel on good, European roads and to feel safe.

We will invest in the future of our children, in fairness, honesty and the quality of life. Those are our main aims for the next years. At the same time, we will continue our efforts to ensure a favorable business environment, by implementing social protection measures and will try to build a modern health system. We know what must be done.

Parliament colleagues,

The Government must be criticized when it makes mistakes, because this motivates us to improve. Nevertheless, I have requested the public opinion to also leave aside political battles and criticize us fairly, to come forward with better solutions when we cannot come up with sufficiently good ones, to hold public debates on how things can be done better for the country. From such a mindset everyone will only benefit, especially the citizens. We no not wait to be praised for our activity, all that we wish for is a correct and constructive approach from the political class. We never had a problem in admitting our flaws. We have withdrawn projects many times, for them to be discussed again, to be improved, to be corrected and forwarded again. It is normal.

We worked and will continue to work at the Government with optimism and hope. This attitude defines our activity. Otherwise we could not have managed many of our achievements. We are optimistic and hopeful for Republic of Moldova and I wish for all our citizens to be the same. To have courage and trust. We only request to be judges based on our results, while trust in our actions will bring results. We have big and clear plans for Republic of Moldova, but for them to come true we need trust, vision, effort, determination and dedication. Together we can build a country we can all live in.

I thank you for the attention and I am at your service for debates and constructive ideas. I wish here, in the Parliament, to prove that we can find solutions to the issues our citizen face."