Brussels, 19 February 2025
EU Council background on the new support for Moldova
The Council presidency and European Parliament negotiators have reached a provisional agreement on setting up the Reform and Growth Facility for the Republic of Moldova, a new instrument to support EU-related reforms and economic growth in the country.
We are determined to support Moldova on its path towards EU accession, it’s our duty in these turbulent times. This package will help Moldovans to implement key reforms, strengthen their economy and advance its integration to the EU’s single market. It will also support Moldova’s resilience in response to the impact caused by the Russian’s unjust war of aggression against Ukraine.
Adam Szlápka, Minister for European Affairs of Poland
This Facility is the financial pillar of the Moldova Growth Plan, presented by the Commission in October 2024. It will support Moldova during the period from 2025 to 2027 and is expected to provide up to €385 million in grants and €1.5 billion in loans. These loans will be highly concessional, with long repayment time and advantageous interest rates.
Objectives of the Facility
The Facility will support Moldova in its EU accession process and in undertaking EU-related reforms, as well as in achieving economic convergence with the EU. It will also be instrumental in delivering the EU’s Comprehensive Strategy for Energy Independence and Resilience of Moldova, which aims to decouple Moldova from the insecurities of Russian supply of energy and fully integrate it in the EU energy market.
Payments will be subject to strict conditions in terms of the achievement of reforms set out in the agreed Reform Agenda.
The provisional agreement between the co-legislators retains the main thrust of the Commission proposal on establishing the Facility while placing additional focus on helping Moldova manage and mitigate the challenges stemming from Russia’s war of aggression against Ukraine and Russia’s attempts to destabilise Moldova.
In the provisional agreement, the Council and the European Parliament agreed to increase the overall funds by €100 million in grants compared to the initial Commission proposal. The co-legislators also agreed to increase the pre-financing rate from up to 7% to up to 18% of the total amount provided for by the Facility. This will ensure that Moldova will have at its disposal the necessary start-up funding to implement the first reforms and support its energy resilience.
Another improvement to the initial proposal is related to the governance of the Facility. The Commission is obliged to inform the Council and the European Parliament before adopting a decision authorising the payments, or when assessing that payment conditions are not met.
Next steps
The provisional agreement will now need to be endorsed by the member states’ representatives within the Council (Coreper) and by the European Parliament. It will then be formally adopted by both institutions following legal-linguistic revision.
Background
On 10 October 2024, the European Commission presented a Moldova Growth Plan, which is based on three pillars:
- supporting Moldova’s socio-economic and fundamental reforms,
- enhancing Moldova’s access to the EU’s single market, and
- increasing financial support 2025-2027 through a dedicated Reform and Growth Facility for Moldova.
The envelope of up to €2 billion provided by the Facility is the largest EU financial support package to Moldova since its independence and comes on top of the EU’s other substantial support to Moldova.
- Reform and Growth Facility for Moldova: Council agrees its negotiating position (press release, 17 December 2024)
- Commission adopts €1.8 billion support package to underpin Moldova’s economic growth plan on its path to the EU (European Commission)
Source – EU Council
EU Parliament on new support plan for Moldova
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New €1.9 billion facility to accelerate Moldova’s socio-economic reforms, strengthen resilience, and advance its EU integration
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Mitigate the profound impact on Moldova of Russia’s war of aggression against Ukraine
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Agreement includes enhanced grants, accelerated funding and robust oversight by Parliament
EU member states and MEPs have agreed on essential improvements to a new support facility for Moldova, focusing on better financing and democratic oversight.
Negotiators from the European Parliament and the Council of the EU have reached a provisional agreement on Wednesday on the Reform and Growth Facility for Moldova. The Facility aims to support Moldova in facing significant challenges, notably to mitigate the profound impact of Russia’s war of aggression against Ukraine on Moldova’s security, economy, and citizens’ livelihoods and to strengthen its resilience against the ongoing and unprecedented hybrid attacks and foreign malign interference targeting the country and democratic processes and institutions.
Key improvements
Increased grant-based support: Negotiators agreed to allocate €520 million in grants – a €100 million increase compared to initial proposals – alongside €1.5 billion in low-interest loans. This adjustment ensures Moldova can implement reforms without unsustainable debt accumulation.
Accelerated funding access: The Facility provides 18% pre-financing, up from 7% originally, of total support, enabling rapid deployment of resources to address energy security, anti-corruption infrastructure, and public service modernisation.
Administrative capacity building: A dedicated 20% of grant funds will strengthen Moldova’s institutions through digital governance systems, civil service training, and judicial reforms – prerequisites for effective EU fund management.
Reinforced oversight framework: To ensure full parliamentary scrutiny the agreement establishes a Dialogue between Parliament and the Commission to review implementation progress regularly.
Also agreed was to make available additional voluntary contributions in the form of external assigned revenue from other donors such as international financing organisations for further financial support to Moldova, and that the Facility shall not support activities or measures which undermine the sovereignty and territorial integrity of Moldova.
Quotes
Siegfried Mureșan (EPP, Romania), co-rapporteur for the Committee on Budgets:
“With a €200 million increase in pre-financing and €100 million in total allocations, we are mobilizing enhanced immediate support to assist Moldova in advancing reforms, accelerating its European integration, and countering the economic and energy repercussions of Russian aggression. This ambitious agreement underscores Europe’s capacity to respond decisively to escalating geopolitical challenges.”
Sven Mikser (S&D, Estonia), co-rapporteur for the Committee on Foreign Affairs:
“This Facility underscores our commitment to Moldova’s EU accession journey and supports the country in undertaking necessary reforms to strengthen democratic institutions, enhance energy security, boost economic growth, and improve the lives of its citizens. Raising the grant component to 20.5% and the pre-financing rate to 18% secures €520 million in non-repayable support for Moldova and ensures rapid access to funding.”
Next steps
The provisional agreement will be submitted to Parliament’s plenary (March) and the Council for final approval.
Background
Between 2025 and 2027, the maximum resources to be made available to Moldova through the Facility will amount to €1.785 billion (in current prices). This includes up to €1.5 billion in concessional loans and €385 million in non-repayable financial support. Additionally, €135 million will be set aside to provision the loans.
The Reform and Growth Facility is part of a broader EU Growth Plan for Moldova aimed at doubling its economy within a decade while fostering socio-economic stability. The facility is modelled after similar initiatives in other EU candidate regions, such as the Western Balkans Facility, representing a significant step forward in Moldova’s path toward EU membership.
EU-Abgeordneter David McAllister (CDU) zur Trilog-Einigung über die Moldau-Faszilität
Am Abend haben sich die Unterhändler des Europäischen Parlaments und der EU-Ratspräsidentschaft im Trilog auf die “Reform- und Wachstumsfazilität für die Republik Moldau” geeinigt. Dazu erklärt David McAllister (CDU), Vorsitzender des Auswärtigen Ausschusses des Europäischen Parlaments:
„Lange hat die Republik Moldau für die Europäische Union nur eine untergeordnete Rolle gespielt. Es ist eines der ärmsten Länder Europas. Mit 2,5 Millionen Einwohnern leben dort weniger Menschen als in Berlin. Doch mit dem russischen Angriffskrieg gegen die Ukraine wurde Moldau aufgrund seiner Lage zwischen Rumänien und der Ukraine plötzlich relevant. Es ist genau diese Lage, wegen welcher Moskau darauf bedacht ist, sich die Unterstützung des formal neutralen Landes zu sichern. Eine kremlhörige Regierung in Chişinău würde Putin neue strategische Möglichkeiten eröffnen und den Druck auf den Süden der Ukraine zusätzlich erheblich erhöhen.
Putin wird also weiter versuchen, einen imperialen Graben durch Europa zu pflügen, der nicht nur die Ukraine von uns trennen soll, sondern auch Moldau, Georgien und den westlichen Balkan. Wenn diese Länder dauerhaft von Russland destabilisiert werden können, macht das auch uns in der Europäischen Union angreifbar. Vor allem die Republik Moldau ringt um Stabilität, wird sie doch wegen ihrer Solidarität mit der Ukraine und der pro-europäischen Orientierung, vertreten von Präsidentin Maia Sandu, vom Kreml offen ins Visier genommen.
Die Reform- und Wachstumsfazilität für die Republik Moldau, die wir heute Abend gemeinsam mit dem Rat und der Kommission in einem abschließenden Trilog auf den Weg gebracht haben ist ein Meilenstein auf Moldaus Weg in die EU. Sie orientiert sich an ähnlichen Initiativen, sowie dem Wachstumsplan für den Westbalkan, und bildet das Fundament einer engeren wirtschaftlichen und politischen Partnerschaft. Dieser Prozess ist kein Sprint, sondern ein Marathon. Er erfordert tiefgreifende Reformen und den festen Willen, die Werte der EU dauerhaft in Moldau zu verankern. Wir sind bereit, diesen Weg mit der Republik zu gehen und überzeugt, die moldauische Wirtschaft bereits jetzt der unseren näherzubringen. Dafür investieren wir in Beschäftigung, Dienstleistungen und Infrastruktur – ob es sich um neue Krankenhäuser in Balti und Cahul oder um die Verbindungsstraße von Chişinău nach Odessa (Ukraine) handelt. Wir öffnen moldauischen Unternehmen die Türen zu unserem Binnenmarkt.“
Quelle – CDU/CSU-Gruppe (per E-Mail)