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"The market was not so good during 2011. The political crisis and constant elections in which our country finds itself makes Moldova not too attractive for new foreign direct investment, despite unprecedented attempts from the Moldovan and EU-country governments to push European companies into Moldova....

"The market was not so good during 2011. The political crisis and constant elections in which our country finds itself makes Moldova not too attractive for new foreign direct investment, despite unprecedented attempts from the Moldovan and EU-country governments to push European companies into Moldova. European business is very careful, and currently has other priorities."

This comment is illustrative of how Moldova is a market that, as most partners resignedly admit, is one in stasis, with a lot of inherent political instability causing problems for investment and, subsequently, legal work.

"Business is not as good as 2009, possibly as much as 50% reduced," says one partner, while another flags up the lull in corporate mandates: "There have been no big M&A deals for over a year. The market is dormant."

Unsurprisingly, distressed work and bankruptcy proceedings have boomed, with the effects of the crisis still hovering like a miasma over the Moldovan market.

"The amount of R&I work in the last 12 months has gone up, I would say, two or three times what it was before. A spectacular rise," comments a partner.

As touched on previously, foreign direct investment in the country has stalled, with people loath to get involved at this current time due to complex political machinating within Moldova.

"It is not just the unresolved elections that are a problem, it's the general political instability in the country. There are more elections to come too."

Another aspect of this instability is that it creates a logjam for new legislation, with no new important laws passed as there has not been a properly operating parliament. One piece of law that will come into force on January 1 2012 is the new bar rules for lawyers practicing in Moldova. At the current time anyone can appear in court, with a number of cases being argued by non-barred lawyers, but this will all change. One partner was particularly exasperated by this, and welcomed the new setup: "For me, how it is now is like going to a hospital and finding out anyone can be a doctor or surgeon - you have to be qualified!"

One thing that will be of interest to lawyers is a proposed tax reform, part of which will stop lawyers deducting professional expenses for the purpose of income tax. This kind of change will affect the bottom line of firms, and is being taken very seriously by practitioners: "If this happens, it will be very bad for business, so we take this very seriously."

Despite this, some people will always try to look for the silver linings in certain clouds, and there are a few bright points to remark upon. Partners have commented that they think public-private partnerships (PPPs) will become a new thing within Moldova, and firms are already trying to get on the front foot with this by taking on this type of mandate this year.

Finally, as Moldova is a small market, it relies much on those around them, and one partner pinpoints this as a vital step in the market's recovery long-term.

"I am not too optimistic about 2011, but very optimistic for 2012-2015. This is because as the economies in the neighbouring countries, Romania, Ukraine and Russia, start recovering, Moldova's business environment will also pick up, and then deal flow will increase."