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Congressional Research Ser~4ce
Informi ig the legislative debate since 1914


Updated July 11, 2019


Moldova: An Overview


On June 14, 2019, a political crisis in Moldova ended when
the formerly ruling Democratic Party of Moldova (PDM)
agreed to dissolve the outgoing government in favor of a
new, democratically elected coalition. The coalition
consists of a reform-oriented, Western-leaning alliance,
ACUM (or   Now)  and the socially conservative, Russian-
leaning Party of Socialists, which placed first in Moldova's
February 2019 elections. The coalition came together to
unseat the PDM; given the parties' differing policy
orientations, it is uncertain how long it will last.

Moldova  is one of three post-Soviet states, together with
Ukraine and Georgia, that have sought greater integration
with the West while coping with separatist territories
occupied by Russian forces. Many Members of Congress
have long supported Moldova's democratic trajectory and
territorial integrity and have called on Russia to respect
Moldova's  sovereignty and to withdraw its military forces.

Rising   Discontent
Moldova's political environment was increasingly
contentious before the recent transition. The PDM gained
power in 2016 after the prior government collapsed amid
fallout from a bank fraud case involving the alleged loss of
some $1 billion, equivalent to more than 12% of Moldova's
gross domestic product (GDP).

ACUM leaders   and many observers contend that the PDM,
in particular then-party leader and wealthy businessman
Vlad Plahotniuc, effectively captured Moldova's state
institutions for personal and party gain. In summer 2018,
protestors opposed a court decision to annul a snap mayoral
election in Chisinau, Moldova's capital, which had been
won by Andrei Nastase, who later became one of ACUM's
two co-leaders (and is now minister of internal affairs).

Political   Transition
Elections to Moldova's 101-seat parliament were held on
February 24, 2019 (for results, see Table 1). International
observers said the elections were competitive but tainted
by allegations of pressure on public employees, strong
indications of vote buying, and the misuse of state
resources.

   Table  I. February 2019  Parliamentary  Elections
                   Party List  Single Mandate    Total
      Party        Seats (%)        Seats        Seats
 Party of Socialists 18 (31%)         17          35
 ACUM               14 (27%)          12          26
 PDM                13 (24%)          17          30
 Shor Party          5 (8%)           2            7
 Independents          -              3            3
 Source: Central Election Commission of the Republic of Moldova.


After the election, Moldova lacked a new government for
almost three months, while leading parties held coalition
negotiations. A political crisis arose on June 8, when the
Constitutional Court, which observers considered to be
under the PDM's influence, issued a series of controversial
rulings pronouncing the newly announced ACUM-Socialist
government  illegitimate and authorizing then-acting prime
minister Pavel Filip (of the PDM) to act as president,
dissolve parliament, and call new elections.

Figure  I. Moldova at a Glance


Source: Moldova National Bureau of Statistics and IMF (does not
include Transnistria). Figure created by CRS.

For a week, tensions escalated as Moldova had two rival
governments. After parliament approved the ACUM-
Socialist Cabinet, Prime Minister Maia Sandu appealed to
Moldova's  civil servants and the international community
to recognize its authority. PDM leaders, including Filip and
Plahotniuc, insisted on the legality of the court's rulings;
they also claimed the Socialists had accepted illegal
financing from Russia and accused Russia of plotting to
establish dominance over Moldova by taking advantage of
the inexperienced ACUM.

Facing unified international discontent, the PDM backed
down  on June 14 and Plahotniuc left Moldova (temporarily,
he says). Another politician that reportedly fled was Ilan
Shor, a regional mayor and head of another party to enter
parliament. Shor is appealing a seven-year prison sentence
for his alleged role in Moldova's $1 billion bank fraud.

After the transition, the Constitutional Court repealed its
controversial rulings and the court's chairman resigned. The
court's other judges followed suit, after the Council of
Europe's Venice Commission,  an international legal
advisory body, issued an opinion that found that conditions
for dissolving parliament clearly did not exist.


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