What changed

SHORT JUSTIFICATION

P10_TA(2025)0022

As a result of Russia’s illegal and unjustified war of aggression against Ukraine and persistent efforts to destabilise the country, the Republic of Moldova has faced unprecedented challenges to its macroeconomic stability, democratic development and social cohesion in recent years.

Establishing the Reform and Growth Facility for the Republic of Moldova

Despite these challenges, Moldova has shown commendable resolve and persistence in bringing itself closer to the European Union socially, politically, and economically. Moldova is an important partner for the EU and was granted candidate country status in June 2022. Moldova’s accession to the European Union is of high importance for the stability of Europe.

Committee on Foreign Affairs, Committee on Budgets

In order to fulfil EU accession requirements Moldova has to undergo reforms in a wide range of sectors, including economic reforms. The economic reforms are closely intertwined with social and political aspects and have the potential to act as a catalyst and enabler for other relevant social and democratic reforms.

PE766.648

The Reform and Growth Facility responds to the European Parliament’s calls for greater financial support to the Republic of Moldova, to support the country in its EU accession process and promote its economic convergence with the EU. The Facility will mobilise investments in key areas such as infrastructure, energy, the green and digital transitions, education and skills development.

European Parliament legislative resolution of 11 March 2025 on the proposal for a regulation of the European Parliament and of the Council on establishing the Reform and Growth Facility for the Republic of Moldova (COM(2024)0469 – C10-0127/2024 – 2024/0258(COD))

The Commission proposal lays out a roadmap of how EU financial assistance can have a transformative impact on Moldova’s development. However, the rapporteur believes that a more visible strengthening of economic aspects in key areas of the document will be beneficial. In line with the fundamentals of Moldova’s accession process to the EU and the Copenhagen criteria, the rapporteur suggests clearly outlining the necessary condition of building a functioning market economy capable of coping with competitive pressure and market forces within the EU into the document.

(Ordinary legislative procedure: first reading)

High inflation, a persistent trade deficit, corruption and weak institutions, poor governance practices, lack of economic diversification, and overreliance on the primary sector have all been identified as complex challenges inhibiting Moldova’s economic potential. Addressing these challenges should be among the Reform and Growth Facility’s objectives in order to strengthen Moldova’s capacity on all levels.

The European Parliament,

These objectives include but are not limited to: support for SMEs, diversification of the economy, reducing dependency on state enterprises, liberalisation of market access, enforced oversight in the private sector, addressing structural weaknesses, reducing the fiscal deficit, broadening the tax base, and promoting a more innovative and dynamic business environment. By enhancing the economic aspects of the proposal, we can ensure that the financial resources allocated for Moldova’s development and capacity building are effectively used across all dimensions.

– having regard to the Commission proposal to Parliament and the Council (COM(2024)0469),

AMENDMENTS

– having regard to Article 294(2) and Article 212 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100127/2024),

The Committee on International Trade submits the following to the Committee on Foreign Affairs and the Committee on Budgets, as the committees responsible:

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

Amendment 1

– having regard to the provisional agreement approved by the committees responsible under Rule 75(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 26 February 2025 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

Proposal for a regulation

– having regard to Rule 60 of its Rules of Procedure,

Recital 13

– having regard to the joint deliberations of the Committee on Foreign Affairs and the Committee on Budgets under Rule 59 of the Rules of Procedure,

Amendment 2

– having regard to the opinions of the Committee on International Trade and the Committee on Budgetary Control,

Proposal for a regulation

– having regard to the report of the Committee on Foreign Affairs and the Committee on Budgets (A10-0006/2025),

Article 3 – paragraph 1 – point b

1. Adopts its position at first reading hereinafter set out;

Amendment 3

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

Proposal for a regulation

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Article 3 – paragraph 2 – point a

P10_TC1-COD(2024)0258

Amendment 4

Position of the European Parliament adopted at first reading on 11 March 2025 with a view to the adoption of Regulation (EU) 2025/… of the European Parliament and of the Council establishing the Reform and Growth Facility for the Republic of Moldova

Proposal for a regulation

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2025/535.)

Article 3 – paragraph 2 – point f

Amendment 5

Proposal for a regulation

Article 3 – paragraph 2 – point g

Amendment 6

Proposal for a regulation

Article 3 – paragraph 2 – point i

Amendment 7

Proposal for a regulation

Article 3 – paragraph 2 – point l

Amendment 8

Proposal for a regulation

Article 4 – paragraph 4

Amendment 9

Proposal for a regulation

Article 9 – paragraph 2

Amendment 10

Proposal for a regulation

Article 11 – paragraph 1 – point c

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION