The member organizations of the National Platform of the Republic of Moldova of the Eastern Partnership Civil Society Forum note that the COVID-19 pandemic and the natural risk factors of 2020 have generated the biggest shock to the economy of the Republic of Moldova in the last two decades. Actual data for the period January-September 2020 indicate an economic decline of 8.2%. The most affected sectors are HoReCa, transport, international trade, recreation and leisure activities, households, processing industry and agriculture, which was also heavily damaged by natural risk factors. The structure by economic activities shows that SMEs have a higher level of exposure in the sectors most affected by the pandemic. SMEs were the most affected due to the very structure of the national economy. SMEs contribute 85.9% to the formation of added value in Trade, Transport and HoReCa, which are de facto the sectors most affected by the pandemic. Support services, also affected much above average by the pandemic context (VAV at 9 months down by -16.2%), are also overwhelmingly dominated by SMEs with 88.5% of the added value created in this sector. SMEs met the pandemic with a general sense of waning entrepreneurial initiative and no capacity to fight back. In 2019, the number of companies that submitted reports to the NBS (56.7 thousand) grew by only 0.4% or six times slower than the average growth of the last five years (2.6%). In the last five years, the main source of investment financing for companies in the Republic of Moldova was equity, which increased by 54.8% in 2019 compared to 2015. Many SMEs are fragile and affected by any type of disruption and were poorly prepared for the shock. Only a third of them had enough liquidity for three months of activity, while only 12% have access to external funding sources. SMEs do not use insurance. Half of entrepreneurs do not have adequate internal procedures for crisis management. Their low level of legal literacy is reflected in unfavorable contracts with suppliers, distributors and other organizations. 36% of companies have low levels of ICT skills and access to tools. The business environment in the Republic of Moldova is affected by the limitations imposed during the pandemic crisis, but it also faces pre-existing challenges in its distribution networks. Those challenges include administrative and mobility limitations, poor supply and distribution networks, limited access to markets (mostly foreign but also domestic), weak or absent information and communication technology (ICT) infrastructure and solutions, bureaucracy and slow government regulations or inflexible and limited access to capital. Companies have experienced a decrease in demand for products and services, restrictions on their activities and disruption of supply (especially for imported materials). Companies expect to mitigate these challenges by reducing personnel costs (83%), reducing administrative expenses (75%), deferring strategic investments (83%) and reducing production (75%). Economic losses resulted from the decrease in sales volume against the background of keeping fixed costs and semi-variable costs at the same level. Leasing, loan interest and payroll expenses remain largely constant, even as sales volume declines. Some costs are semi-variable, such as labor remuneration, which can be controlled to some extent by redundancies and forced furloughs. Other costs, related to the procurement of raw materials, electricity consumption, etc. varies to the same extent as the turnover. Although they were the most affected by the pandemic, small businesses benefited the least from any support from the state. As can be deduced from the World Bank's "Corporate Survey on COVID-19", in November 2020, the average decrease in company sales was -29.4%, compared to -57% reported in the survey conducted in May. At the same time, the results disaggregated by the size of the companies show that the most affected by the pandemic are small businesses with up to 20 employees, which recorded in November a reduction in the f-a-p business figure of 34.3% compared to the decrease of -20 .6% registered by companies with 20-100 employees and -14.2% by those with more than 100 employees. When it comes to the share of firms that have received or expect to receive national or local government assistance, the picture is inversely proportional. Even though only a modest share of 5.9% of enterprises mentioned that they received or expect to receive some support, the share given for small businesses with up to 20 employees is 3 times lower at 1.9%, i.e. on average only every 50th between catch of this kind had some support or assistance in the context of the pandemic. Even if the Government came with support measures, they were little felt by SMEs, being mostly indirect, especially in terms of subsidizing interest, payroll taxes and VAT refunds. These entailed the obligation to pay salary taxes, while the companies did not have liquidity to pay the salary, not to mention the related taxes. The same applies to subsidizing interest rates. In the context of the lack of liquidity in general, few companies were able to obtain loans, and the negotiation with the Commercial Banks depended on the financial situation and credit history of each individual company. According to the study carried out by the Alliance of Small and Medium Enterprises of Moldova, SME Perception regarding the impact of the pandemic on their own businesses in which 304 SMEs from 18 sectors of the economy participated, 71% of companies are not satisfied with the measures taken by the Government in response to the economic crisis in Moldova. The measures announced were the weakest in the region, creating a competitive disadvantage for SMEs and increasing redundancies, loss of income and leaving most companies to cope with the loss of income on their own. In the context of the above, the signatory organizations request the approval of additional measures to support Small and Medium-sized Enterprises in the context of the crisis caused by COVID-19, including: Supporting SMEs - through measures to increase access to liquidity, digitization and encouraging the maintenance of small businesses in the formal framework. Expanding the capitalization of the credit guarantee fund under ODIMM to facilitate the financing/refinancing of SMEs/micro enterprises. Promotion of the VAT on receipt system, which involves the calculation of VAT by the selling taxpayer at the time of receipt of the consideration for the deliveries/services performed, and not when it is issued. At least for the first stage, the applicability of such an instrument is proposed for small business by capping the eligible companies to apply this mechanism at a certain maximum level of the business figure. Supporting the sectors for which the current crisis has also created opportunities for development, domestic tourism, online trade, the production of local goods to replace imports and the production of pharmaceutical products. The establishment for the year 2021 of a system of bonuses for businesses upon timely payment of income tax. Simplifying the operating regimes of small and family businesses, by creating a separate chapter with simplified provisions in both the Fiscal Code and the Labor Code. Supporting the digitization process and entering the online market through the full implementation of the Roadmap for boosting the digitization process of the national economy and the development of e-commerce, including by increasing allocations and strengthening the SME Digitization Program managed by ODIMM. The establishment of fiscal incentives, such as the application of a reduced level of VAT (eg 2 p.p.) in the case of electronic payments via the Internet. Support the digitization of industrial and manufacturing processes, stimulating innovation in local businesses to improve productivity and commercial availability. Solid financial support and appropriate institutionalization of the Program to support businesses with high growth potential and their internationalization to attract a considerable number of SMEs with high growth potential, from sectors with a significant impact on the economic growth of the Republic of Moldova. Implementation of the Development Program for local suppliers with the aim of interconnecting them to the value chain of multinational companies and developing a durable and sustainable industry in the Republic of Moldova. Optimizing administrative barriers so that the measures applied by the state for business can be accessed by as many beneficiaries as possible. The National Platform of the Eastern Partnership Civil Society Forum was created in 2011 and currently has 95 member organizations, 7 of which are umbrella organizations for over 255 other organizations. The mission of the Platform is to strengthen the process of European integration and democratic development of the Republic of Moldova, to contribute to the advocacy and monitoring process for the implementation of the Association Agreement between the Republic of Moldova and the EU and other relevant documents relating to the Eastern Partnership and the relationship between the Republic of Moldova and Moldova -EU. Signatories of the Declaration: AEGEE-Chisinau Agency for Cross-Border Cooperation and European Integration INFONET Alliance Alliance of NGOs active in the field of Child and Family Social Protection Alliance of Organizations for Persons with Disabilities Alliance for Energy Efficiency and Renewables Alliance of Small and Medium Enterprises from Moldova Amnesty International Moldova Women's Association for Environmental Protection and Sustainable Development Association of Professional and Business Women from Moldova International Association of Keepers of the "Eco-Tiras" River Small Business Association from Moldova Association National Association of European Trainers from Moldova Association for Participatory Democracy ADEPT Association for Efficient and Responsible Governance Association for Foreign Policy Association for Rehabilitation of the Invalids from the Republic of Moldova Association for Waste Recovery Association of Independent Press Association Promo-LEX Association Regional Association of mothers with many children and women- entrepreneurs from Gagauzia "VESTA" Automobile Club Moldova AO "BIOS" Business Consulting Institute Independent Analytical Center Expert-Group Ecological Consultancy Center Cahul Center for Economic Development and A Public Affairs Center for Information and Support of Young Economists "CERTITUDINE" Center for Innovation and Policies from Moldova Center for Training and Educational Development Center for Policies and Reforms Center for Legal Resources from Moldova European Center for Civil Initiatives "Stalker" International Center for the Protection and Promotion of Women's Rights "La Strada" National Roma Center National Assistance and Information Center of NGOs from Moldova CONTACT National Center for the Environment Center for Development and Management Center for Independent Journalism Regional Center for Environmental Studies ECOS Regional Center for Sustainable Development from Ungheni Regional Environmental Center of Moldova "Contact" Regional Center Bălți Republican Center for Children and Youth Gutta-Club "Pro-Europe" Center of Comrat WatchDog.md Community National Confederation of Employers of the Republic of Moldova National Confederation of Trade Unions of Moldova Congress of Authorities r Locals from Moldova National Youth Council from Moldova Eco-Contact Eco-Sor ECOTOX ESGA Moldova "SĂNĂTATEA" Trade Union Federation from the Republic of Moldova Federation of Trade Unions in Construction and Construction Materials Industry SINDICONS East European Foundation Foundation for Development from the Republic of Moldova Foundation for Education and Development from Moldova Soros Foundation-Moldova GREEN-School Youth Initiative Group for the Future Urban Development Institute Development Training Institute "MilleniuM" Institute of Public Policies European Institute of Political Studies Labor Institute Institute for Development and Social Initiatives "Viitorul" Institute for Human Rights Institute for European Policies and Reforms AO "Institutum Virtutes Civilis" INTECO AO "INVENTO" Keystone International Human Services Moldova Local Democracy Agency Moldova Ecological Movement of Moldova Ștefan-Vodă Territorial Organization of the Ecological Movement of Moldova National Network ional LEADER in Moldova Transparency International Moldova Union of Disabled Organizations from Moldova Медиа Центр Приднестровья "Interaction" "Have Children" "BIOTICA" "Caroma-Nord" "Cutezătorul" "Eco-Răzeni" "Woman and Child - Protection and Support" "Come Moldova "Mothers in Action" "Pro Regional Cooperation" NGO "Terra-1530"