Is Moldova strong enough to make the path to the EU?
Moldova is joining the EU. The economy has high hopes for the current rapprochement. But Vladimir Putin is not tiring in his efforts to destabilize the country. Is the risk too high for investors?
The Republic of Moldova is a direct neighbor of Ukraine and thus right in the middle of the war. From the beginning, the country's government left no doubt about its pro-European course: It has just officially started EU accession negotiations. However, Russian influences in the post-Soviet country are still significant.
Political scientist Hannes Meissner has been observing the situation in Moldova for years. "Russia is trying to destabilize the country from within," says Meissner. In the podcast "Economy World & Wide," he talks about Moscow's hybrid warfare - and about a "front within Moldova." Pro-Russian forces still have a lot of influence. And the country's difficult economic situation plays into their hands.
One of Europe's poorest countries
Moldova is one of Europe's poorest countries and urgently needs reforms. The most important point is the fight against corruption, explains Ludwig Graf Westarp, who is committed to promoting economic relations between Germany and the Republic of Moldova. Meissner also says that above all, the judiciary and administration need to be reformed urgently. Because these areas are particularly permeated by old networks.
More legal certainty is an important factor when investors consider a step into the Republic of Moldova. Will the country manage the change and will its economic situation also improve? Will there be opportunities for German companies? Or does a coup in the interest of Russian interests threaten? These and many other questions are discussed by host Andrea Sellmann in the new podcast episode with Hannes Meissner and Ludwig Graf Westarp.
Political scientist Hannes Meissner is an expert on post-Soviet countries at the Vienna University of Economics and Business and the University of Vienna. He also advises companies on political risk management strategies in these countries. Ludwig Graf Westarp has been dealing with the Republic of Moldova for many years. At the Association of Medium-Sized Enterprises (BVMW), he headed the Republic of Moldova Foreign Office, among other things. His focus is on the development of economic relations between Germany and Moldova.
The EU's acceptance of Moldova into its accession negotiations could potentially strengthen the country's economy, but Russian influences and the threat of destabilization by Vladimir Putin might pose risks for investors. Given Moldova's close proximity to Ukraine and its status as one of Europe's poorest countries, the need for anti-corruption reforms, particularly in the judiciary and administration, is paramount for attracting foreign investment.
