Sittings · Document
DRAFT REPORT (COM(2024)0469 – C100127/2024 – 2024/0258(COD)) 2024-12-04
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
Committee on Foreign Affairs Committee on Budgets · Rapporteur: Sven Mikser, Siegfried Mureşan
DRAFT 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
(COM(2024)0469 – C100127/2024 – 2024/0258(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2024)0469),
– 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),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to Rule 60 of its Rules of Procedure,
– having regard to the opinions of the Committee on International Trade and the Committee on Budgetary Control,
– having regard to the report of the Committee on Foreign Affairs and the Committee on Budgets (A100000/2024),
1. Adopts its position at first reading hereinafter set out;
2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;
3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1
Proposal for a regulation
Recital 16
| Text proposed by the Commission | Amendment |
| (16) The Facility should promote the development of effectiveness principles, respecting additionality to and complementarity with the support provided under other Union programmes and instruments and striving to avoid duplication and ensure synergies between assistance under this Regulation and other assistance, including integrated financial packages composed of both export and development financing provided by the Union, the Member States, third countries, multilateral and regional organisations and entities. | (16) The Facility should promote the development of effectiveness principles, respecting additionality to and complementarity with the support provided under other Union programmes and instruments and striving to avoid duplication and ensure synergies between assistance under this Regulation and other assistance, including integrated financial packages composed of both export and development financing provided by the Union, the Member States, third countries, multilateral and regional organisations and entities. Moldova’s participation in other EU funding programmes should be promoted. |
Or. en
Amendment 2
Proposal for a regulation
Recital 17
| Text proposed by the Commission | Amendment |
| (17) In line with the principle of inclusive partnerships, the Commission should strive to ensure that relevant stakeholders in Moldova, including social partners and civil society organisations are duly consulted and have timely access to relevant information to allow them to play a meaningful role during the design and implementation of programmes and the related monitoring processes. | (17) In line with the principle of inclusive partnerships, the Commission should ensure that relevant stakeholders in Moldova, including Moldova’s Parliament, local and regional authorities, social partners and civil society organisations are duly consulted and have timely access to relevant information to allow them to play a meaningful role during the design and implementation of programmes and the related monitoring processes. |
Or. en
Amendment 3
Proposal for a regulation
Recital 28
| Text proposed by the Commission | Amendment |
| (28) The Facility should be supported with resources from the Neighbourhood, Development and International Cooperation Instrument – Global Europe amounting to EUR 420 million and a maximum amount of EUR 1 500 million in loans for the period from 2025-2027. The amount should cover the 9% provisioning required for the loans corresponding to EUR 135 million, the support provided by the Union for projects approved under the NIP, as referred to in Article 18(2), and complementary support, including support to civil society organisations and technical assistance. The non-repayable support should be financed from the envelope allocated to the Neighbourhood geographic programme under Article 6(2), point (a), of Regulation (EU) 2021/947. All provisions under Regulation (EU) 2021/947 should apply unless otherwise mentioned in this Regulation. The proposed Facility is closely modelled on the Reform and Growth Facility for the Western Balkans. | (28) The Facility should be supported with resources from the Neighbourhood, Development and International Cooperation Instrument – Global Europe amounting to EUR 420 million and a maximum amount of EUR 1 500 million in loans for the period from 2025-2027. The amount should cover support provided by the Union for projects approved under the NIP, as referred to in Article 18(2), and complementary support, including support to civil society organisations and technical assistance. The non-repayable support should be financed from the envelope allocated to the Neighbourhood geographic programme under Article 6(2), point (a), of Regulation (EU) 2021/947. In order to maximise EU financial support, the 9 % provisioning required for the loans corresponding to EUR 135 million should be covered from the NDICI- Global Europe Emerging challenges and priorities cushion, in line with Articles 6(3) and 17 of Regulation (EU) 2021/947. All provisions under Regulation (EU) 2021/947 should apply unless otherwise mentioned in this Regulation. In particular, Moldova should remain eligible for NDICI regional, thematic and rapid response programmes. The proposed Facility is closely modelled on the Reform and Growth Facility for the Western Balkans. |
Or. en
Amendment 4
Proposal for a regulation
Recital 35
| Text proposed by the Commission | Amendment |
| (35) A Facility Agreement should be concluded with Moldova to set up the principles of the financial cooperation between the Union and Moldova, and to specify the necessary mechanisms related to the control, supervision, monitoring, evaluation, reporting and audit of Union funding under the Facility, rules on taxes, duties and charges and measures to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest. Consequently, a loan agreement should also be concluded with Moldova setting out specific provisions for the management and implementation of funding provided in the forms of loans. Both the Facility Agreement and the loan agreement should be transmitted to the European Parliament and to the Council, upon request. | (35) A Facility Agreement should be concluded with Moldova to set up the principles of the financial cooperation between the Union and Moldova, and to specify the necessary mechanisms related to the control, supervision, monitoring, evaluation, reporting and audit of Union funding under the Facility, rules on taxes, duties and charges and measures to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest. Consequently, a loan agreement should also be concluded with Moldova setting out specific provisions for the management and implementation of funding provided in the forms of loans. Both the Facility Agreement and the loan agreement should be transmitted without delay, simultaneously to the European Parliament and to the Council. |
Or. en
Amendment 5
Proposal for a regulation
Recital 37
| Text proposed by the Commission | Amendment |
| (37) The implementation of the Facility should be underpinned by a coherent and prioritised set of targeted reforms and investment-related priorities in Moldova (the ‘Reform Agenda’), providing a framework for boosting inclusive sustainable socio-economic growth, clearly articulated and aligned with Union accession requirements and the fundamentals of the enlargement process. The Reform Agenda will serve as an overarching framework to achieve the objectives of the Facility. The Reform Agenda should be prepared in close consultation with relevant stakeholders, including social partners and civil society organisations and their input should be reflected. Disbursement of Union support should be conditional on compliance with the payment conditions and on measurable progress in the implementation of reforms set out in the Reform Agenda assessed and formally approved by the Commission. The release of funds should be structured accordingly, reflecting the objectives of the Facility. | (37) The implementation of the Facility should be underpinned by a coherent and prioritised set of targeted reforms and investment-related priorities in Moldova (the ‘Reform Agenda’), providing a framework for boosting inclusive sustainable socio-economic growth, clearly articulated and aligned with Union accession requirements and the fundamentals of the enlargement process. The Reform Agenda will serve as an overarching framework to achieve the objectives of the Facility. The Reform Agenda should be prepared in close consultation with relevant stakeholders, including Moldova’s Parliament, local and regional authorities, social partners and civil society organisations and their input should be reflected, in accordance with the national legal framework. Disbursement of Union support should be conditional on compliance with the payment conditions and on measurable progress in the implementation of reforms set out in the Reform Agenda assessed and formally approved by the Commission. The release of funds should be structured accordingly, reflecting the objectives of the Facility. |
Or. en
Amendment 6
Proposal for a regulation
Recital 48
| Text proposed by the Commission | Amendment |
| (48) Considering that the financial risks associated with the support to Moldova in the form of loans under the Facility is comparable to the financial risks associated with lending operations under Regulation (EU) 2021/947, provisioning for the financial liability from loans under this Regulation should be constituted at the rate of 9 %, in line with Article 214 of Regulation (EU, Euratom) 2024/2509 and the funding of the provisioning should be sourced from the envelope allocated to the Neighbourhood geographic programme under Article 6(2)(a) of Regulation (EU) 2021/947. | (48) Considering that the financial risks associated with the support to Moldova in the form of loans under the Facility is comparable to the financial risks associated with lending operations under Regulation (EU) 2021/947, provisioning for the financial liability from loans under this Regulation should be constituted at the rate of 9 %, in line with Article 214 of Regulation (EU, Euratom) 2024/2509 and the funding of the provisioning should be sourced from the emerging challenges and priorities cushion under Article 6(3) of Regulation (EU) 2021/947. |
Or. en
Amendment 7
Proposal for a regulation
Recital 49
| Text proposed by the Commission | Amendment |
| (49) In order to ensure that Moldova disposes of start-up funding for the implementation of the first reforms, it should have access to up to 7 % of the total amount provided for in this Facility, after deduction of complementary support, including support to civil society organisations and technical assistance, and provisioning for loans, in the form of a pre-financing, subject to availability of funding and to the respect of the preconditions for support under the Facility. | (49) In order to ensure that Moldova disposes of start-up funding for the implementation of the first reforms, it should have access to up to 20 % of the total amount provided for in this Facility, after deduction of complementary support, including support to civil society organisations and technical assistance, and provisioning for loans, in the form of a pre-financing, subject to availability of funding and to the respect of the preconditions for support under the Facility. |
Or. en
Amendment 8
Proposal for a regulation
Recital 52
| Text proposed by the Commission | Amendment |
| (52) The Commission should provide, upon request of the European Parliament in the framework of the discharge procedure, detailed information about the implementation of the Union budget under the Facility, in particular as regards audits carried out, including weaknesses identified and corrective measures taken, and as regards projects approved under NIP, including where applicable the amount of Moldova’s co-financing as well as other sources of contributions including from other Union financing instruments. | (52) The Commission should provide the European Parliament in the framework of the discharge procedure with detailed information about the implementation of the Union budget under the Facility, in particular as regards audits carried out, including weaknesses identified and corrective measures taken, and as regards projects approved under NIP, including where applicable the amount of Moldova’s co-financing as well as other sources of contributions including from other Union financing instruments. |
Or. en
Amendment 9
Proposal for a regulation
Article 4 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. Cooperation under the Facility shall be needs-based and shall promote the development effectiveness principles, namely ownership of development priorities by Moldova a focus on clear conditionality and tangible results, inclusive partnerships, transparency and mutual accountability. That cooperation shall be based on an effective and efficient allocation and use of resources. | 2. Cooperation under the Facility shall be needs-based and shall promote the development effectiveness principles, namely ownership of development priorities by Moldova a focus on clear conditionality and tangible results, inclusive partnerships with local and regional authorities, social partners and civil society organisations, transparency and mutual accountability. That cooperation shall be based on an effective and efficient allocation and use of resources. |
Or. en
Amendment 10
Proposal for a regulation
Article 4 – paragraph 5 a (new)
| Text proposed by the Commission | Amendment |
| 5a. In order to maximise international support, it shall be possible for Member States, third countries, international organisations, international financial institutions or other sources to contribute to the implementation of the Facility. Such contributions shall be implemented in accordance with the same rules and conditions and shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d) and (e), of Regulation (EU, Euratom) 2024/2509. |
Or. en
Amendment 11
Proposal for a regulation
Article 4 – paragraph 9
| Text proposed by the Commission | Amendment |
| 9. In line with the principle of inclusive partnership, the Commission shall strive to ensure, as appropriate, democratic scrutiny in the form of consultation by Moldova’s government of its parliament as well as of relevant stakeholders, including local and regional authorities, social partners and civil society, including vulnerable groups, refugees, and all minorities and communities, as relevant, so as to allow them to participate in shaping the design and the implementation of activities eligible for funding under the Facility and in the related monitoring, scrutiny and evaluation processes, as relevant. That consultation shall seek to represent the pluralism of Moldova’s society. | 9. In line with the principle of inclusive partnership, the Commission shall ensure, as appropriate, democratic scrutiny in the form of consultation by Moldova’s government of its parliament as well as of relevant stakeholders, including local and regional authorities, social partners and civil society, including vulnerable groups, refugees, and all minorities and communities, as relevant, so as to allow them to participate in shaping the design and the implementation of activities eligible for funding under the Facility and in the related monitoring, scrutiny and evaluation processes, as relevant. That consultation shall seek to represent the pluralism of Moldova’s society. |
Or. en
Amendment 12
Proposal for a regulation
Article 6 – paragraph 2 – subparagraph 1
| Text proposed by the Commission | Amendment |
| The non-repayable financial support shall be financed for the period from 1 January 2025 to 31 December 2027 from the envelope allocated to the Neighbourhood geographic programme under Article 6(2), point (a) of Regulation (EU) 2021/947. It shall cover provisioning for loans amounting to EUR 135 million, support provided by the Union for projects approved under the NIP, as referred to in Article 18(2)and complementary support, including support to civil society organisations and technical assistance. That funding shall be implemented in accordance with Regulation (EU) 2021/947. | The non-repayable financial support shall be financed for the period from 1 January 2025 to 31 December 2027 from the envelope allocated to the Neighbourhood geographic programme under Article 6(2), point (a) of Regulation (EU) 2021/947. It shall cover support provided by the Union for projects approved under the NIP, as referred to in Article 18(2)and complementary support, including support to civil society organisations and technical assistance. That funding shall be implemented in accordance with Regulation (EU) 2021/947. The provisioning for loans amounting to EUR 135 million shall be covered from the NDICI-Global Europe Emerging challenges and priorities cushion in accordance with Articles 6(3) and 17 of Regulation (EU) 2021/947. |
Or. en
Amendment 13
Proposal for a regulation
Article 6 – paragraph 4 a (new)
| Text proposed by the Commission | Amendment |
| 4a. Complementary support shall correspond to at least 20 % of total non-repayable financial support as referred to in Article 6(2) and shall include measures to strengthen the administrative capacities of Moldovan authorities and other stakeholders, including local and regional authorities, social partners and civil society organisations. |
Or. en
Amendment 14
Proposal for a regulation
Article 6 – paragraph 5 a (new)
| Text proposed by the Commission | Amendment |
| 5a. Member States, third countries, international organisations, international financial institutions or other sources may provide additional financial contributions to the Facility. Such contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d) and (e), of Regulation (EU, Euratom) 2024/2509. Additional amounts received as external assigned revenue within the meaning of Article 21(2) of Regulation (EU, Euratom) 2024/2509 under the relevant Union legal acts shall be added to the resources referred to in Article 6(1) and be implemented in accordance with the same rules and conditions. |
Or. en
Amendment 15
Proposal for a regulation
Article 8 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. The Facility Agreement shall be complemented by a loan agreement in accordance with Article 15, setting out specific provisions for the management and implementation of funding provided in the form of a loan. The Facility Agreement, including any related documentation, shall be made available, upon request, to the European Parliament and the Council simultaneously and without delay. | 2. The Facility Agreement shall be complemented by a loan agreement in accordance with Article 15, setting out specific provisions for the management and implementation of funding provided in the form of a loan. The Facility Agreement, including any related documentation, shall be made available to the European Parliament and the Council simultaneously and without delay. |
Or. en
Amendment 16
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2
| Text proposed by the Commission | Amendment |
| Funds under the Facility shall not support activities or measures which undermine peace agreements in the region. | Funds under the Facility shall not support activities or measures which undermine peace agreements in the region or the territorial integrity of Moldova. |
Or. en
Amendment 17
Proposal for a regulation
Article 13 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. In case of positive assessment, the Commission shall approve by means of an implementing decision the Reform Agenda submitted by Moldova, in accordance with Article 12 or, where applicable, of the amended Agenda submitted in accordance with Article 14. The provisions of Article 25(2) shall apply to the adoption of that implementing decision. | 1. In case of positive assessment, after informing the European Parliament and the Council, the Commission shall approve by means of an implementing decision the Reform Agenda submitted by Moldova, in accordance with Article 12 or, where applicable, of the amended Agenda submitted in accordance with Article 14. The provisions of Article 25(2) shall apply to the adoption of that implementing decision. |
Or. en
Amendment 18
Proposal for a regulation
Article 14 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. The Commission may amend the implementing decision, in particular to take into account a change of the amounts available in line with the principles under Article 19. | 2. The Commission, after informing the European Parliament and the Council, may amend the implementing decision, in particular to take into account a change of the amounts available in line with the principles under Article 19. |
Or. en
Amendment 19
Proposal for a regulation
Article 15 – paragraph 2 – subparagraph 2 a (new)
| Text proposed by the Commission | Amendment |
| The Commission shall provide the European Parliament and the Council, simultaneously, with the following information: | |
| (a) the amount of the loan in EUR; | |
| (b) the average maturity of the loan; | |
| (c) the pricing formula, and the availability period of the loan; | |
| (d) the maximum number of instalments and a clear and precise repayment schedule. |
Or. en
Amendment 20
Proposal for a regulation
Article 15 – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. The loan agreement shall be made available, upon request, to the European Parliament and the Council. | 3. The loan agreement shall be made available, simultaneously and without delay, to the European Parliament and the Council. |
Or. en
Amendment 21
Proposal for a regulation
Article 16 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. Provisioning for the loans shall be constituted at the rate of 9 % from the envelope allocated to the Neighbourhood geographic programme under Article 6(2), point (a) of Regulation (EU) 2021/947 and shall be used as part of provisions supporting similar risks. | 1. Provisioning for the loans shall be constituted at the rate of 9 % from the envelope allocated to the emerging challenges and priorities cushion under Article 6(3) of Regulation (EU) 2021/947 and shall be used as part of provisions supporting similar risks. |
Or. en
Amendment 22
Proposal for a regulation
Article 17 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. Following the submission of the Reform Agenda to the Commission, Moldova may request the release of a pre-financing of up to 7 % of the total amount foreseen under this Facility in accordance with Article 6(1), after deduction of complementary support, including support to civil society organisations and technical assistance, and provisioning for loans. | 1. Following the submission of the Reform Agenda to the Commission, Moldova may request the release of a pre-financing of up to 20% of the total amount foreseen under this Facility in accordance with Article 6(1), after deduction of complementary support, including support to civil society organisations and technical assistance, and provisioning for loans. |
Or. en
Amendment 23
Proposal for a regulation
Article 21 – paragraph 2 – point e a (new)
| Text proposed by the Commission | Amendment |
| (ea) to insert all information related to project implementation, in particular concerning performance and financial implementation, and final recipients in an interoperable information system provided by the Commission; |
Or. en
Amendment 24
Proposal for a regulation
Article 21 – paragraph 2 – point e b (new)
| Text proposed by the Commission | Amendment |
| (eb) or for the purpose of audit, control and discharge: | |
| to maintain, and ensure access by the competent Union authorities, including the discharge authority, to: | |
| - detailed records on the implementation measures adopted, including information on national award procedures and contracts with intermediaries and recipients, indicating if applicable the total amount of any national cofinancing, other national contributions, or other contributions under the Facility or under other Union funds; and | |
| - evidence showing the correlation between the grants, non-repayable financial support or loans received and the costs incurred for the achievement of indicators. |
Or. en
Amendment 25
Proposal for a regulation
Article 26 a (new)
| Text proposed by the Commission | Amendment |
| Article 26a | |
| Parliamentary scrutiny | |
| 1. The Commission shall report to the competent committees of the European Parliament on the state of progress in the implementation of the Facility and the Reform Agenda. | |
| The Commission shall provide the European Parliament with written information on: | |
| (a) the state of progress in the implementation of the Facility, in particular the Reform Agenda and related investments and reforms, as well as the Facility Agreement; | |
| (b) the assessment of the Reform Agenda, and any amendments thereof; | |
| (c) the main findings of the report referred to in Article 23(3); | |
| (d) payment, withholding and reduction procedures, where applicable, including any observation presented to ensure a satisfactory fulfilment of the conditions; | |
| (e) information on the withholding and suspension of payments as well as the reduction of funds, including any observation presented and remedial measures taken by the Beneficiary to ensure a satisfactory fulfilment of the payment conditions; | |
| (f) any other relevant elements in relation to the implementation of the Facility. | |
| 2. The European Parliament may express its views in resolutions as regards the matters referred to in paragraph 1. | |
| 3. The Commission shall take into account the views expressed by the European Parliament. |
Or. en