The co-founder of the Alternativa Political Block, ex-premier Ion Chicu, gave an interview to the FES/ APE Foreign Policy Bulletin in which we discussed his vision of the impact of the election of a new president in Bucharest, Nicusor Dan, on the Republic of Moldova. We discussed about the economic relations between Romania and the Republic of Moldova and how we could attract Romanian investors across the Prut to Moldova. The security situation in Ukraine and the peace efforts being made in this regard was another topic of discussion. Read the full interview:

How do you assess the presidential election race and especially the outcome of these elections in Romania?

It was unusual, in the sense that it took a long time, but it’s good that it’s over and we can turn this page. I heard on the radio what president Nicusor Dan and ex-interim president Ilie Bolojan had to say during their first discussion on the economy, budget deficit, inflation, etc.

Obviously, this is a very important subject and I would venture to say that the perpetuation of the situation of uncertainty and the electoral campaign that has been going on for about a year and a half – I am thinking here of the other electoral exercises last year – have left their mark. That is why we are very pleased that the presidential elections are over and Romania is returning to a peaceful and normal life.

Priorities and strategies

What do you think should be the priorities of Nicusor Dan’s presidential mandate and should the European path of the Republic of Moldova, as a strategic objective of Romania, be one of them?

The priorities should be the ones we started talking about, namely the economic ones. My background is in this field and I follow the developments in economic indicators, and this is worrying. I have also spoken to other business specialists in Romania who are not optimistic. It is clear that reforms and very determined action are needed to change the situation in the economy.

If we were to talk about the impact of these presidential elections on the Republic of Moldova, we, from the Alternative Bloc, have been having lots of meetings with people. I see that there is a lot of speculation that in Europe and Romania the situation is bad, and the people’s question is why we want to go there.

What I am saying is that the sooner the situation changes and the sooner things get back to normal from an investment and economic point of view, the sooner those who keep scaring people with negative developments in the European Union will run out of steam.

Unfortunately, we see that after this electoral marathon, Romanian society is very divided. That is why I believe that one of the basic tasks of the new president, but also of the authorities, is to restore social peace. I believe that around five million voted for the candidate who lost the elections, George Simion. This electorate should be persuaded to leave all their grievances behind so that the state can solve the problems it faces.

How important is it for Romania to recover economically, given that about 25% of Moldova’s exports go to Romanian markets?

It is very important that this happens. Even geographically speaking, the Republic of Moldova is situated between two states – Ukraine, which is at war and we have nothing to expect in terms of economic opportunities and advantages now from it, and Romania.

Thus, we are opening up the world through Romania and obviously we very much hope that the situation there will recover as soon as possible, including the indicators you mentioned. Without Romanian investment, as an economist, I do not see much reason for us to be optimistic. The situation on the left bank of the Prut is no better in terms of macro-economic indicators.

If we do not have investors from Romania, I do not believe that investors from other, more distant countries will have a more developed appetite to invest in the Republic of Moldova. This is why we really want to see the country return as quickly as possible to a good situation in terms of economic and social development. Stability in Romania is very important and, as I said above, last but not least, it must serve as an example for attracting us onto the European path.

Working together for the European journey

From the point of view of the aid Romania gives to the Republic of Moldova, what kind of cooperation do you think it would be good for the two countries – the Republic of Moldova and Romania – to work on? What do you see as priority projects between Bucharest and Chisinau?

We appreciate all the non-reimbursable financial support that Romania has provided to the Republic of Moldova so far and is continuing to provide. However, we would like to see more openness and determination on the part of Romanian business for our country.

We are ready to create a strip of 50-60 kilometres of free economic zone, from north to south, on the banks of the Prut, for Romanian investments, without any hindrance or obstacle. We do not see any other way out of the impasse we are in. I reiterate, we are very grateful for any support, but we would like to see more determination from Romanian business in the Republic of Moldova. This would be the most solid and sustainable bridge across the Prut – investment and involvement in the economy.

How important is the interconnection of the Republic of Moldova’s land and energy infrastructure with the EU via Romania? What viable strategy do you see in this respect?

Infrastructure is an indispensable element for economic development. The more such projects we have, the greater the opportunities for Moldova’s economic development. These are broadly public investments and we very much appreciate them.

However, I believe that without private investment, corporate investment in the economy, the bridges that we build with public money remain less in demand economically and more on the spiritual side of ‘flower bridges’, as we often call them. That is why we would like to deepen economic relations in parallel with road infrastructure. The Republic of Moldova really does have something to offer Romanian economic agents and Romanian business here, it’s just that more courage and determination are needed. Therefore, we are waiting for Romanian investors.

Business opportunities and facilities

What is this opportunity you are talking about? In which areas do you think Romanian capital could penetrate and where is the development area in this segment?

We are always guided by the principle that business knows best which sectors to invest in and it is not the government that should be the one to manage here. But the government does offer tax breaks. Besides, we have a tax framework with some of the lowest tax rates.

We hope that we can also restore some markets for possible investment in Moldova. We also have an underdeveloped agricultural sector which, for the time being, is content with the role of raw material supplier, which is not exactly satisfactory. I also think there is the processing industry. Processing would be a very interesting area for investors. In particular, it would also be a point of attraction for raw materials from Ukraine, because I think they will need such products there.

Transportation infrastructure is underdeveloped in the Republic of Moldova. I am also referring to air transportation. We have one overcrowded airport. This is where we are waiting for investment, because we have opportunities to offer. Here we can also talk about the investment opportunities in the airport in the northern part of the country, in Marculesti or Balti, but there are also such opportunities in the south of the country. If Romania has succeeded in building an airport in every county centre, why couldn’t it do the same in the Republic of Moldova?

We have good specialists and enormous potential when it comes to digitalization, so we could offer many opportunities in the IT sector. We have a special tax regime for IT, which is attractive for a lot of companies in the world.

There would be multiple areas where business would be interested. Obviously, I would make one point here and that is that we need to be providers of stability, guarantees and investment security. That is already left for the government or the politicians to provide. But, from an economic point of view, I can say, in full knowledge of the facts, that we are attractive to investors.

The Russian invasion of Ukraine and its consequences

You mentioned two important words earlier – Ukraine and security. In this context, we would like to ask you how important it is for the Republic of Moldova that Romania continues its support for Ukraine, bearing in mind that Ukraine is at the moment the shield that protects the Republic of Moldova from the military danger that could come from the Russian Federation?

Ukraine has so far resisted aggression and attacks against it, thanks to support from the West, but also from Romania, due to its geographical position as Ukraine’s neighbour.

I believe that all European states, especially our neighbours, must support Ukraine, including efforts to reach a peace. From what we see, it seems that efforts are being made to stop this war.

Perpetuation of this war will have dire consequences for decades to come. We have to understand that even when the fighting stops, other phenomena usually accompany it. I am referring here to lack of security, banditry, difficult social situations, etc. We have to manage all these situations, even after the cannons stop firing in Ukraine.

Support from partners for Ukraine is very high, but now it would be very good to support peace efforts in parallel with the military aid.

Working with Bucharest

What would be the electoral offer of the Alternativa bloc in the area of cooperation with Romania and how do you assess the cooperation you currently have with Romanian politicians or parties?

I will give you a practical example from my relatively recent work as Prime Minister. When the Government of the Republic of Moldova approved the government decision on the state assets to be privatized, the first to see this list was the Romanian Ambassador in Chisinau. This is to make our position clear.

I reiterate that, on the economic side, we rely heavily on private investment in Romania. And not only private, of course. More specifically, a free economic zone from north to south, bordering the Prut River, with multiple advantages for Chisinau.

We have always emphasized the economic side of the relationship. This is where we see the source of financing for other needs and we are very much counting on Romanian business in particular. I have had meetings and discussions with the Association of Romanian Investors in the Republic of Moldova and I am glad that in the meantime more investments have come in. I see interconnection projects on the energy dimension. This is exactly what we want. I would just like Romanian business to be present in sectors which are not necessarily energy, which are natural monopolies. So we expect Romanian business in all sectors and we must be ready to offer all the conditions for this.

You mentioned the strategic objectives of the Republic of Moldova and I wanted to ask you how you see a potential investment of a Romanian company, namely the one that manages the port of Constanta, in the Port of Giurgiulesti, in the context that it has already submitted the first offer to the EBRD for the privatization of this port in the Republic of Moldova?

I referred earlier to the potential investments that Romania could make in Moldova’s “air ports”. However, we are looking forward to welcoming Romanian investors in this sector too as I do not see much difference when we are also talking about a naval port, namely the port of Giurgiulesti. I hope that the Port of Constanta, which has already tendered for the Port of Giurgiulesti, will offer the best conditions for development, so that it can win this competition.

I must mention that there is much speculation about this port. Unfortunately, some politicians are somehow presenting this information that the state is selling something that is ours, which is not true and should be refuted, because this is not good [the Giurgiulesti International Freeport is owned by the EBRD through its management by the Danube Logistics company - editor’s note]. We are expecting investors in all areas, including ports.

Thank you!