Interview for the FES/APE Foreign Policy Bulletin

Mr Furdui, what do you consider to be the main structural weakness of Moldova’s current local public administration system, and why is the reform model you advocate better suited than the available alternatives to address this challenge, especially in light of the country’s European integration ambitions and the need to align with European standards of local governance?

The greatest problem is excessive administrative centralization, the lack of genuine financial autonomy for local public authorities, and the mismatch between their competences and responsibilities and the resources available to them. In practice, there have been numerous cases where responsibilities were transferred to local public authorities without providing the financial and institutional resources necessary for their effective implementation.

The current system does not give local communities the capacity to make decisions and manage their own resources autonomously. The model proposed by Congress of Local Authorities from Moldova (CALM) — based on genuine decentralization, financial autonomy, and the strengthening of administrative capacities—addresses this shortcoming by aligning with the principles of the European Charter of Local Self-Government and by creating a genuine partnership between the state and local communities.

Local public administration reform inevitably involves a difficult balance between administrative efficiency and local democratic representation. Where do you believe this balance should be struck?

The balance should be struck in favour of preserving democratic representation at the local level. Administrative efficiency cannot be achieved by sacrificing democracy, but rather by strengthening administrative capacities and developing mechanisms for inter-municipal cooperation. Reform must ensure efficient public services without diminishing the voice and representation of local communities.

The solution proposed by CALM is based on the need to clearly distinguish between political representation and economic efficiency. Reform is not about abolishing municipalities or communities, but rather about a flexible solution that can be summarized by the formula: “legally independent, but functionally united.” Or, more simply: not the abolition of municipalities, but the integration of services.

Under this approach, villages should retain their legal status, mayor, and local council, thereby preserving the direct link between citizens and the state. At the same time, in order to enhance administrative efficiency and development capacity, localities should be encouraged through legislation to cooperate within inter-municipal structures for the management of complex services such as water supply, waste management, and public transport, as well as for attracting large-scale investment funding.

What conditions are necessary for voluntary amalgamation to function effectively in the Re public of Moldova? Are financial incentives alone sufficient, or does there come a point when more assertive state intervention becomes necessary?

Voluntary amalgamation can work only if there is trust, meaningful incentives, and respect for the identity of local communities. The process must take place without political, administrative, or financial pressure. Financial incentives are necessary, but they are not sufficient on their own. Genuine consultations, guarantees regarding the preservation of local assets and cultural identity, and a clear and predictable legislative framework are also essential.

More assertive state intervention may be acceptable only when it is the result of broad consensus rather than an approach based on imposition.

How realistic is genuine financial autonomy for local authorities under the current conditions in the Republic of Moldova, and what specific changes do you consider to be priorities in the fiscal system and the redistribution of resources?

Today, local financial autonomy is more theoretical than practical. For it to become a reality, several priority measures are needed. First, the system for redistributing resources must be reformed, and the share of own-source revenues available to local communities must be increased.

It is also necessary to transfer certain sources of tax revenue to the local level and designate them as own-source revenues. One example would be the allocation of a share of VAT revenues to local budgets. At the same time, politically motivated practices in the allocation of resources must be eliminated. Only under these conditions will local public authorities be able to plan strategically and ensure the sustainable development of the communities they represent.

Almost all participants in the debate organized by the Friedrich Ebert Foundation in partners hip with the School of Public Administration of Moldova State University emphasized the need for broad political consensus to ensure that the reform becomes irreversible. What compromises do you consider possible, and where do you see the red lines of your own reform concept?

Possible compromises concern the pace and stages of the reform, but not its fundamental principles. The red lines are local self-government, the irreversibility of the process, fiscal decentralization, and the mandatory consultation of local communities. Without these elements, the reform risks becoming reversible and undermining the country’s European integration process.

At the roundtable held on 26 May, many participants expressed the view that the current district (raion) level has become outdated and no longer responds effectively to today’s administrative needs. How do you see the future of districts within the administrative architecture of the Republic of Moldova?

The district (raion) level, in its current form, has become outdated. CALM believes that the future lies in reorganizing this tier into a more efficient regional structure, with clearly defined competences adapted to current realities and aligned with the NUTS 2 standard.

Districts should be transformed into regional coordination units, without replacing the role of municipalities and local communities. CALM considers that maintaining 10 larger districts risks exacerbating existing problems related to the politicization of resource allocation and the distribution of public funds. In CALM’s view, the most appropriate option for the Republic of Moldova is an administrative organization based on a maximum of five regions, in line with the European NUTS 2 standard. This is the level at which the European Union implements its regional development policy and manages structural and cohesion funds.

Thank you!