Proposal for a Regulation on establishing the Reform and Growth Facility for the Republic of Moldova

Summary:

Legislative initiative - adopted by the European Commission on 9 October 2024 - for the establishment of a Reform and Growth Facility for Moldova.

Further information:

In an attempt to support Moldova in its economic recovery and its process towards joining the European Union, the European Commission adopted a Moldova Growth Plan to incentive the reforms and investments required to accelerate the accession process and boost the growth of Moldova's economy. This Plan comprises three pillars, one of which is the increase of financial assistance through a dedicate Reform and Growth Facility for Moldova.

This Facility is modelled a similar mechanism established for the Western Balkans region. It introduces conditionality as disbursements of EU funding will be conditional upon progress achieved in the implementation of reforms, in particular enhancing socio-economic convergence and competitiveness, as well as in the area of fundamentals. It is proposed that the Facility is financed from the bilateral allocation foreseen for Moldova in the NDICI-GE budget covering the period 2025-2027. In addition, the Facility is expected to mobilise new investments from the international financial institutions and the private sector.

The draft law was adopted by the European Commission on 9 October 2024 alongside the publication of the its Moldova Growth Plan.

Official

European Commission: Press Release, 10/10/2024: Commission adopts €1.8 billion support package to underpin Moldova's economic growth plan on its path to the EU https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5124

European Commission: Press statement by President von der Leyen with Moldovan President Sandu (10 October 2024) https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_24_5209

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