Moldova: Council and European Parliament agree to support reforms and economic growth with almost €2 billion

On 19 February, negotiators representing the Polish Presidency in the Council of the EU and the European Parliament 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.

This Facility is the financial pillar of the Moldova Growth Plan, presented by the European 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 times and advantageous interest rates.

“We are determined to support Moldova on its path towards EU accession, it’s our duty in these turbulent times,” said Adam Szlápka, Minister for European Affairs of Poland. “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.”

The Facility 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.

The Council and the European Parliament agreed to increase the overall funds by €100 million in grants compared to the initial Commission proposal. The negotiators  also agreed to increase the pre-financing rate from up to 7 per cent to up to 18 per cent of the total amount to ensure Moldova with necessary start-up funding to implement the first reforms and support its energy resilience.

Payments will be subject to strict conditions in terms of the achievement of reforms set out in the agreed Reform Agenda.

The provisional agreement will now need to be endorsed by the member states’ representatives within the Council (Coreper) and by the European Parliament.

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