Key highlights:
€1.9 billion facility to drive Moldova’s socio-economic reforms, strengthen resilience, and support EU integration.
Measures to counter the impact of Russia’s war against Ukraine on Moldova’s economy and security.
Agreement includes increased grants, faster funding access, and stronger parliamentary oversight.
EU member states and the European Parliament have reached a crucial agreement on a new support mechanism for Moldova, ensuring improved financial aid and stronger democratic supervision.
A step forward for Moldova’s stability and growth
Negotiators from the European Parliament and the Council of the EU finalized a provisional agreement on the Reform and Growth Facility for Moldova. The initiative is designed to help Moldova navigate significant challenges, including the economic and security fallout from Russia’s war in Ukraine. It also aims to bolster Moldova’s resilience against ongoing hybrid threats and external interference targeting its institutions and democratic processes.
Key Improvements in the Agreement:
🔹Increased Grants for Moldova:
€520 million in grants – an increase of €100 million compared to initial proposals.
€1.5 billion in low-interest loans to support reforms while avoiding excessive debt.
🔹Faster Access to Funds:
The pre-financing rate has been raised from 7% to 18%, enabling quicker disbursement of resources.
Funds will help Moldova improve energy security, anti-corruption measures, and public services.
🔹Boosting Administrative Capacity:
20% of the grant funding will be dedicated to institutional strengthening, including digital governance, civil service training, and judicial reforms.
These improvements will enhance Moldova’s ability to manage EU funds effectively.
🔹Stronger Oversight and Accountability:
A structured Dialogue between the European Parliament and the European Commission will monitor progress and ensure full democratic scrutiny.
Additionally, international financial organizations and other donors will be able to contribute voluntarily to further support Moldova. The agreement also ensures that the Facility will not fund any activities that compromise Moldova’s sovereignty or territorial integrity.
Statements from key officials:
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 presented for final approval in the European Parliament’s March plenary session and by the EU Council.
Background
Between 2025 and 2027, Moldova will receive up to €1.885 billion, including:
- €1.5 billion in concessional loans.
- €385 million in grants.
- €135 million allocated to support loan provisions.
This facility is part of the EU Growth Plan for Moldova, designed to double the country’s economy within a decade and ensure socio-economic stability. Modeled after similar EU support programs for candidate regions like the Western Balkans, it marks a significant step in Moldova’s journey toward EU membership. Photo by Moldovan Parliament Building, Wikimedia commons.