Moldova: EU Commission adopts €1.8bn support package for growth and EU integration

Brussels, 10 October 2024

Today, the European Commission adopted a Growth Plan for the Republic of Moldova worth €1.8 billion and underpinned by a Reform and Growth Facility for the period 2025-2027. The Plan, which is the largest EU financial support package since Moldova’s independence, will boost Moldova’s economy, bring the country closer to EU membership by accelerating reforms, and provide significant financial assistance.

The Moldova Growth Plan is based on three pillars, aimed at:

I. Increasing financial assistance over the next three yearsthrough a dedicated Reform and Growth Facility for Moldova, based on the upcoming Reform Agenda and of discussed priority investments needs with Moldova, the Facility could support, for example:

• New roads, bridges and rail infrastructure, such as the Chisinau ring road, advancing the connection Odesa-Chisinau-Iasi and bridges over the Prut river.
• Energy Security by completing a new electricity powerline & starting to build two more, linking Moldova to the EU electricity grid.
• Energy subsidies
• Healthcare by starting to build two new well-equipped hospitals in Cahul and Balti.
• The integration of Moldova in the EU’s ‘roam like at home’ area and bringing broadband internet to remote areas of Moldova.
• Improved access to financing and support for 25 000 businesses, including small family businesses.

II. Enhancing access to the European Union’s single market. The Moldova Growth Plan proposes immediate steps that Moldova can take to reap the benefits of the single market in five key areas, once the required standards are met:

• free movement of goods and integration in supply chains;
• facilitation of trade and transport connections;
• integration into the EU energy market and decarbonisation;
• integration into the Digital Market;
• access to the Single Euro Payments Area (SEPA).

III. Supporting Moldova’s socio-economic and fundamental reforms.

Moldova is undertaking reforms for socio-economic development, building on key economic growth drivers: economic competitiveness; economic resilience, including infrastructure and energy; economic governance; social capital; and the green transition. The reforms will attract foreign investment, improve the business environment, support small and medium sized enterprises, improve skills and qualifications, strengthen trade and exports thus boosting economic growth and increasing the economic convergence with the EU. Payments will follow upon the delivery of the pre-agreed reforms.

Economic convergence is an essential element in preparing candidate countries for EU accession and for joining the Single Market. Integration with the EU’s single market has been the main driver of economic growth for all countries that previously joined the EU.

The European Commission President Ursula von der Leyen said: “Europe stands firmly by Moldova’s side – today and every step of the way on the path to our Union. We can start bringing the Moldovan economy closer to ours already now. Today I’m in Chișinău to present a support package with the potential of doubling the size of the country’s economy in a decade. To do so we invest in jobs, growth, services and infrastructure – from new hospitals in Balti and Cahul to the road from the capital to Odesa. We open the doors to our Single Market to Moldovan companies. And we support Moldova’s reform efforts.”

Next steps

It is now for the European Parliament and the Council to examine the European Commission proposal for the Growth Facility for Moldova. Once adopted, Moldova will be invited to submit its Reform Agenda outlining the key socio-economic and fundamental reforms it intends to undertake to accelerate growth and convergence with the EU.

More information

• Commission Communication on the Moldova Growth Plan
• Regulation proposal Moldova Reform and Growth Facility
• Remarks by President von der Leyen in Chisinau announcing the Moldova Growth Plan

Quote(s)

Europe stands firmly by Moldova’s side – today and every step of the way on the path to our Union. We can start bringing the Moldovan economy closer to ours already now. Today I’m in Chișinău to present a support package with the potential of doubling the size of the country’s economy in a decade. To do so we invest in jobs, growth, services and infrastructure – from new hospitals in Balti and Cahul to the road from the capital to Odesa. We open the doors to our Single Market to Moldovan companies. And we support Moldova’s reform efforts.

^{Ursula von der Leyen, President of the European Commission}

The new Growth Plan for Moldova is another example of the EU’s support for the country’s security, peace and prosperity. It will strengthen Moldova’s economy and create opportunities for all Moldovan citizens. The plan is a recognition of the impressive results that Moldova has already achieved on its EU path. It will drive further progress on fundamental and socio-economic reforms. Moldova’s future is in the European Union.

^{EU High Representative/Vice-President Josep Borrell}

We are delivering on our promise to assist Moldova in its socio-economic convergence and EU accession process. The financial support under the Growth Plan for Moldova is strategically aligned with the country’s priorities and needs. This ensures that investments are made where they will most benefit Moldova and its people and businesses.

^{Olivér Várhelyi, EU Commissioner for Neighbourhood and Enlargement}

Source – EU Commission

Press statement by President von der Leyen with Moldovan President Maia Sandu