Factsheet: EU and Moldova

Factsheet: EU and Moldova

November 14, 2021

EU and the Republic of Moldova ties have been in place for over 20 years. Since 2014, relations have been based on the EU-Moldova Association Agreement, which provides the foundations for stronger political association and economic integration between the EU and Moldova. The EU’s assistance and support for democratic reforms have delivered tangible benefits to Moldovan citizens. Key benefits from this relationship include a Deep and Comprehensive Free Trade Area (DCFTA), which opens the EU market to Moldovan businesses and products, and visa free travel to the Schengen area for Moldovan citizens since 28 April 2014. On 2 June 2021 the European Commission announced an Economic Recovery Plan for the Republic of Moldova. The Commission will mobilise up to €600 million over the next three years to promote investments in Moldova and support recovery from the COVID-19 crisis in the country, in exchange for structural reforms.

The EU is Moldova’s largest trading partner and biggest investor. In 2020, the EU accounted for approximatively 67% of Moldova’s total exports and 53% of its total trade.

Thanks to visa liberalisation, more than 2.5 million Moldovan citizens have visited the EU without a visa.

RECOVERY. RESILIENCE. REFORM

ECONOMY
More than 19,000 Moldovan SMEs benefitted from EU support for access to finance in 2020, of which 24.3% are womenowned, and more than 33,000 new jobs were created in 2019 and 2020. 10 business incubators were set up with EU support.

INSTITUTIONS
Thanks to the EU budget support programme for police reform, the level of public confidence in the police rose from 25.5% in April 2016 to 41% in October 2020. Further, the share of women in the police force has increased from 14% in 2016 to 19% in 2020.

GREEN
New drinking water supply infrastructure was built in South of Moldova with EU support. As a result, approximately 15,700 additional people have access to sufficient and safe drinking water.

SOCIETY
From 2015-20, nearly 3,700 students and academic staff benefitted from Erasmus+ academic mobility between Moldova and the EU.

DIGITAL
A new ICT Innovation Centre in Cahul for innovative SMEs and a seed-fund for innovative companies in Moldova are being set up.

ECONOMIC & INVESTMENT PLAN

EU and the Republic of Moldova ties have been in place for over 20 years. Since 2014, relations have been based on the EU-Moldova Association Agreement, which provides the foundations for stronger political association and economic integration between the EU and Moldova. The EU’s assistance and support for democratic reforms have delivered tangible benefits to Moldovan citizens. Key benefits from this relationship include a Deep and Comprehensive Free Trade Area (DCFTA), which opens the EU market to Moldovan businesses and products, and visa-free travel to the Schengen area for Moldovan citizens since 28 April 2014. On 2 June 2021 the European Commission announced an Economic Recovery Plan for the Republic of Moldova. The Commission will mobilise up to €600 million over the next three years to promote investments in Moldova and support recovery from the COVID-19 crisis in the country, in exchange for structural reforms. The EU supports Moldova with concrete investments to help post-pandemic recovery and improve the lives of Moldovan citizens. In the coming years, the EU will invest in the following five flagship projects:

  • Direct support for 50,000 Moldovan SMEs
  • Construction of an Inland Freight Terminal in Chisinau
  • Refurbishment of district heating systems in residential buildings in Chisinau and Balti
  • Anchoring Moldova in the Trans-European Network for Transport
  • Modernising school infrastructure

COVID-19 RESPONSE

The EU reacted quickly and responded to the urgent needs of Moldova and its citizens during the COVID-19 pandemic. As part of Team Europe, the EU has mobilised a COVID-19 response package specifically for Moldova, worth over €127 million in grants. This package is used deliver support for emergency needs, healthcare resilience, socio-economic recovery and vulnerable groups.

In addition, an emergency COVID-19 macro-financial assistance programme for Moldova, worth €100 million in loans on highly favourable terms, was adopted in April 2020. Payments took place in November 2020 and October 2021. Moldova was the first European country to receive donations of COVID-19 vaccines from the COVAX Facility and the EU vaccine sharing mechanism.

European Commission: ec.europa.eu/neighbourhood-enlargement/moldova l twitter.com/eu_near
European External Action Service: eeas.europa.eu/delegations/moldova l twitter.com/eu_eeas

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