The Public Financial Management Practices Of Euand The EU's Strategy For Moldova's Accession To The EU

Republic of Moldova is a European country that has the tendency to become an EU country. After the dissolution of the Soviet Union, Moldova a set out on a path of Europeanization, its ultimate goal is to become a member-state of the European Union.This path has been a difficult one, with obstacles such as a region in conflict, an unstable government, and an economy largely dependent upon Russia standing in the way.The small state of Moldova declared its independence on 27 August, 1991, leaving behind its affiliation with the Soviet Union and looking towards Europe for guidance for the future. After the Soviet Union was officially dissolved in December of 1991,Moldova became the last member of the newly established Commonwealth of Independent States(CIS), which encouraged the recognition of an independent Moldova by CIS Member States as well as states in the European community. Shortly thereafter,it became apparent that the road ahead would not be an easy one. In 1992, Moldova found itself in the middle of an internal struggle over territory, which included the attempted secession of Transnistria, a conflict that remains unresolved today, and is a major obstacle in Moldova s path to candidacy for membership in to the European Union.Despite this conflict, Moldova continued to look westward, and became a member of the United Nations(UN) and of the Organization for Security and Cooperation in Europe(OSCE), further demonstrating its intentions of Europeanization. The European Union(EU) attitude towards former Soviet states was starting to change, and 1992 saw the development of negotiations between the European Council and newly independent states related to the Partnership and Cooperation Agreements(PCA) of those states and the EU. In 1994, Moldova took the initiative to place itself on the path of European Integration by launching negotiations, on its own accord, with the EU for a PCA. That same year, the first agreement between Moldova and the EU was signed, opening up political dialogue and establishing a basis for trade and cooperation between the two.By 1995, Moldova had a favorable international image, being even considered as an example of democratic reform. On 13 July, 1995, Moldova became the first member of the CIS to join the Council of Europe. By 1999, Moldova made its goal of European integration and eventual EU membership clear by officially declaring integration itsmain foreign policy objective. This did not mean that the path would be easy, or fast moving. Internal issues would slow down this progress, and are still being dealt with today.In 1999, the European Union opened up membership opportunity for a group of Balkan States, but left Moldova off of the list of those in consideration, citing, in part,the Transnistrian conflict. This was a setback, but Moldova continued to favor Europeanization, and in early 2002, the UK and other European Union members began encouraging a wider Europe initiative to be aimed at Belarus, Moldova, Russia and Ukraine. This did not necessarily mean membership candidacy, but it did demonstrate a definite need for some sort of cooperative partnership between EU member states and the neighbors just across their borders. In 2003, the EU launched the European Neighborhood Policy(ENP), with the aim of developing a zone of prosperity and a friendly neighborhood a ring of friends- with whom the EU enjoys close, peaceful and cooperative relations. Some may view the ENP as an EU strategy to cultivate beneficial relationships with its EU member border states without actually having to grant themThis paper is divided into four parts, the first part is a brief overview on PFM,including a description of evolution during years. The second part aims to present the evolution of EU's development and trends of managing the public finance. The third part goes on presentation of country background presentation. The fourth part is about the influence of the EU on Moldovan public financial management. So the idea of this research is to explain the public financial management in the EU and Republic of Moldova and the main influence of the EU in the Republic of Moldova.