What changed

Follow up to the European Parliament legislative resolution 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

SHORT JUSTIFICATION

1. Rapporteurs: Sven MIKSER (S&D/EE), Siegfried MUREŞAN (EPP/RO)

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.

2. References: 2024/0258(COD) / A10-0006/2025 / P10_TA(2025)0022

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.

3. Date of adoption of the resolution: 11 March 2025

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.

4. Legal basis:

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.

This proposal is based on Article 212 of the Treaty on the Functioning of the European Union (TFEU). It is presented by the Commission in line with the procedure laid down in Article 294 TFEU.

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.

5. Competent Parliamentary Committees: Committee on Foreign Affairs (AFET) and Committee on Budgets (BUDG)

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.

6. Commission's position: accepts all amendments.

These 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.

Statement by the Commission on the source of funding for the increased assistance provided under this Facility

AMENDMENTS

In order to preserve adequate funding for other priorities under the Neighbourhood, Development and International Cooperation Instrument – Global Europe, the Commission will fund the additional EUR 100 million non-repayable support available for the Reform and Growth Facility for the Republic of Moldova through redeployment of unused funds under the budget line for macro-financial assistance grants (EUR 40 million), redeployment within the NDICI-GE Eastern Neighbourhood budget line (EUR 37 million), and from the NDICI-GE Emerging challenges and priorities cushion (EUR 23 million) in line with the provisions of the EU Financial Regulation.

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

Amendment 1

Proposal for a regulation

Recital 13

Or. en

Amendment 2

Proposal for a regulation

Article 3 – paragraph 1 – point b

Or. en

Amendment 3

Proposal for a regulation

Article 3 – paragraph 2 – point a

Or. en

Amendment 4

Proposal for a regulation

Article 3 – paragraph 2 – point f

Or. en

Amendment 5

Proposal for a regulation

Article 3 – paragraph 2 – point g

Or. en

Amendment 6

Proposal for a regulation

Article 3 – paragraph 2 – point h

Or. en

Amendment 7

Proposal for a regulation

Article 3 – paragraph 2 – point i

Or. en

Amendment 8

Proposal for a regulation

Article 4 – paragraph 4

Or. en

Amendment 9

Proposal for a regulation

Article 9 – paragraph 2

Or. en

Amendment 10

Proposal for a regulation

Article 11 – paragraph 1 – point c

Or. en