Sittings · Document
OPINION (COM(2024)0469 – C10-0127/2024 – 2024/0258(COD)) 2025-01-29
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 Budgetary Control · Rapporteur: Jonas Sjöstedt
AMENDMENTS
The Committee on Budgetary Control 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 8 a (new)
| Text proposed by the Commission | Amendment |
| (8a) Recognizing that Moldova’s integration into the EU single market can deliver immediate and tangible socio-economic benefits, the use of grants and loans under this regulation should prioritize measures to support the country’s export growth. These include permanent liberalization of tariff-rate quotas for key Moldovan exports, facilitation of trade through infrastructure and regulatory alignment, and strengthening Moldova’s integration into EU-led social and economic initiatives and programs. |
Amendment 2
Proposal for a regulation
Recital 18
| Text proposed by the Commission | Amendment |
| (18) Technical assistance, as well as cross-border cooperation assistance, should be provided in support of the objectives of this Facility and in order to strengthen the relevant capacities of Moldova to implement the Reform Agenda. | (18) Technical assistance, as well as cross-border cooperation assistance, should be provided in support of the objectives of this Facility and in order to strengthen the relevant capacities of Moldova to implement the Reform Agenda, including those of the Court of Accounts of Moldova. |
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, 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 920 million and a maximum amount of EUR 1 000 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, 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. |
Amendment 4
Proposal for a regulation
Recital 28 a (new)
| Text proposed by the Commission | Amendment |
| (28a) In order to better contribute to Moldova’s socio-economic dimension and ensure that funding under the Facility aligns with Moldova’s fiscal capacity and reform objectives, the balance between non-repayable support and concessional loans should be regularly assessed yearly. |
Amendment 5
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 envelope allocated to emerging challenges and priorities cushion under Article 6(3) of Regulation (EU) 2021/947. |
Amendment 6
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. |
Amendment 7
Proposal for a regulation
Recital 50 a (new)
| Text proposed by the Commission | Amendment |
| (50a) To support the appropriate level of transparency that benefits the protection of the EU financial interests, the final recipient for support from the Facility shall be the natural person or entity that de facto receives the EU funding, being the contractor or sub-contractor in the case of contracting authority. Government ministries, agencies, or bodies that oversee, regulate, or administer the funds should only be considered final recipients when they are themselves involved in the execution and direct application of the work or service and bear the associated costs. |
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. |
Amendment 9
Proposal for a regulation
Recital 54
| Text proposed by the Commission | Amendment |
| (54) In the interest of transparency and accountability, Moldova should publish data on final recipients receiving amounts of funding exceeding the equivalent of EUR 50 000 cumulatively during the implementation of reforms and investments under this Facility. | (54) In the interest of transparency and accountability, Moldova should publish data on final recipients including the contractors, sub-contractors, and individuals or entities directly benefiting from the funds receiving amounts of funding exceeding the equivalent of EUR 50 000 cumulatively during the implementation of reforms and investments under this Facility. |
Amendment 10
Proposal for a regulation
Recital 56 a (new)
| Text proposed by the Commission | Amendment |
| (56a) The Commission should ensure that the financial interests of the Union are effectively protected under the Facility. To this end, the Commission should set out specific arrangements for the management, control, supervision, monitoring, evaluation, reporting and audit of funds under the Facility, and the Court of Accounts of Moldova should have the role to provide the Commission with information on possible mismanagement of funds and guarantee that a declaration of assurance is obtained through an independent external audit. The Court of Accounts of Moldova should be subject to the reporting obligations to EPPO, in accordance with Article 24(1) of Regulation (EU) 2017/1939. Such information should be made available to OLAF and EPPO, when applicable, and where appropriate to the relevant authorities of Moldova. The Commission, with the assistance of the Union delegations, should be entitled to perform checks on how Moldova implemented funds along the whole project life cycle. The Commission should be provided with sufficient funding and human resources to perform the audit and checks. The Court of Accounts of Moldova should ensure regular dialogue and cooperation with the European Court of Auditors. |
Amendment 11
Proposal for a regulation
Recital 58
| Text proposed by the Commission | Amendment |
| (58) The Commission should ensure that the financial interests of the Union are effectively protected under the Facility. Considering the long track record of financial assistance provided to Moldova also under indirect management and taking into account its gradual alignment with the Unions internal control standards and practices, the Commission should rely to a great extent on the operation of Moldova’s internal control and fraud prevention systems. In particular, the Commission and OLAF and, where applicable, the EPPO should be informed of all suspected cases of irregularities, fraud, corruption and conflicts of interest affecting the implementation of funds under the Facility without delay. | (58) The Commission should ensure that the financial interests of the Union are effectively protected under the Facility. Considering the long track record of financial assistance provided to Moldova also under indirect management and taking into account its gradual alignment with the Unions internal control standards and practices, the Commission should rely to a great extent on the operation of Moldova’s internal control and fraud prevention systems. In particular, the Commission and OLAF and, where applicable, the EPPO should be informed of all suspected cases of irregularities, fraud, corruption and conflicts of interest affecting the implementation of funds under the Facility without delay. A regular report on fraud and irregularities should be transmitted to the the European Parliament's Committee on Budgetary Control. |
Amendment 12
Proposal for a regulation
Recital 59
| Text proposed by the Commission | Amendment |
| (59) Furthermore, Moldova should report the irregularities including fraud which have been the subject of a primary administrative or judicial finding, without delay, to the Commission and keep it informed of the progress of administrative and legal proceedings. With the objective of alignment to good practices in Member States, this reporting should be done by electronic means, using the Irregularity Management System, established by the Commission. | (59) Furthermore, Moldova should report the irregularities including fraud which have been the subject of a primary administrative or judicial finding, without delay, to the Court of Accounts of Moldova and the Commission and keep them informed of the progress of administrative and legal proceedings. With the objective of alignment to good practices in Member States, this reporting should be done by electronic means, using the Irregularity Management System, established by the Commission. |
Amendment 13
Proposal for a regulation
Recital 59 a (new)
| Text proposed by the Commission | Amendment |
| (59a) In order to measure progress on the objectives of the Facility, the Commission and Moldova should establish a clear correlation between the amounts made available to the Moldova, in non-repayable financial support and loans and the costs incurred for the achievement of indicators. |
Amendment 14
Proposal for a regulation
Recital 66 a (new)
| Text proposed by the Commission | Amendment |
| (66a) Any future financial support of the Union to Moldova should be part of the Union’s regular funding programmes. |
Amendment 15
Proposal for a regulation
Article 2 – paragraph 1 – point 9
| Text proposed by the Commission | Amendment |
| (9) ‘final recipient’ means a person or entity receiving funding under the Facility; for the part of the funding that is made available as financial assistance, final recipient will be the treasury of Moldova; for the part of the funding that is made available through the Neighbourhood Investment Platform, final recipient will be the contractor or sub-contractor implementing the investment project; | (9) ‘final recipient’ means a person or entity receiving funding under the Facility; for the part of the funding that is made available as financial assistance, final recipient will be the treasury of Moldova; for the part of the funding that is made available through the Neighbourhood Investment Platform, final recipient will be the contractor, sub-contractor, remunerated external expert or a person or entity implementing the investment project; |
Amendment 16
Proposal for a regulation
Article 3 – paragraph 1 – point b
| Text proposed by the Commission | Amendment |
| (b) support progressive integration of Moldova into the Union single market; | (b) support progressive integration of Moldova into the Union single market, including with a view to remove the tariff quotas that are applied to Moldova’s exports; |
Amendment 17
Proposal for a regulation
Article 3 – paragraph 2 – point a
| Text proposed by the Commission | Amendment |
| (a) further strengthen the fundamentals of the enlargement process, including the rule of law and fundamental rights, the functioning of democratic institutions, including de-polarisation, public administration and fulfil the economic criteria; this includes promoting an independent judiciary, reinforcing security and stability, strengthening the fight against fraud and all forms of corruption, including high-level corruption and nepotism, organised crime, cross-border crime and money laundering as well as terrorism financing, tax evasion and tax fraud, tax avoidance; increasing compliance with international law; strengthening freedom and independence of media and academic freedom; combating hate speech; enabling an environment for civil society, fostering social dialogue; promoting gender equality, gender mainstreaming and the empowerment of women and girls, non-discrimination and tolerance, to ensure and strengthen respect for the rights of refugees and persons belonging to minorities, including national minorities and Roma, as well as rights of lesbian, gay, bisexual, transgender and intersex persons; | (a) further strengthen the fundamentals of the enlargement process, including the rule of law and fundamental rights, the functioning of democratic institutions, including de-polarisation, public administration and fulfil the economic criteria; this includes promoting an independent judiciary, with sufficient capacity and protection of human rights, reinforcing security and stability, strengthening the fight against fraud and all forms of corruption, including high-level corruption and oligarchic structures as well as any sorts of nepotism, favouritism and conflicts of interests, organised crime, cross-border crime and money laundering as well as terrorism financing, tax evasion and tax fraud, tax avoidance; supporting the fight against the informal economy, increasing compliance with international law; strengthening freedom and independence of media and academic freedom; combating hate speech; enabling an environment for civil society, fostering social dialogue; empowering future generations with access to significant political and socio-economic opportunities, including leadership; promoting gender equality, gender mainstreaming and the empowerment of women and girls, non-discrimination and tolerance, to ensure and strengthen respect for the rights of refugees and persons belonging to minorities, including national minorities and Roma, as well as rights of lesbian, gay, bisexual, transgender and intersex persons as well as other vulnerable groups; it will also enhance inclusion and accessibility for persons with disabilities, and in particular transition from institutional care to community-based support and independent living; |
Amendment 18
Proposal for a regulation
Article 3 – paragraph 2 – point e
| Text proposed by the Commission | Amendment |
| (e) reinforce the effectiveness of public administration, build capacities and invest in administrative staff in Moldova; ensure access to information, public scrutiny and the involvement of civil society in decision-making processes; support transparency, accountability, structural reforms and good governance at all levels, including as regards their powers of oversight and inquiry over the distribution of and access to public funds as well as in the areas of public financial management and public procurement and State aid control; support initiatives and bodies involved in supporting and enforcing international justice in Moldova; | (e) reinforce the effectiveness of public administration, build capacities and invest in administrative staff in Moldova, including staff of the Court of Accounts of Moldova; ensure access to information, public scrutiny and the involvement of civil society in decision-making processes; support transparency, accountability, structural reforms and good governance at all levels, including as regards their powers of oversight and inquiry over the distribution of and access to public funds as well as in the areas of public financial management, fraud prevention, public procurement and State aid control; support initiatives and bodies involved in supporting and enforcing international justice in Moldova, with emphasis on anti corruption measures; |
Amendment 19
Proposal for a regulation
Article 4 – paragraph 7 a (new)
| Text proposed by the Commission | Amendment |
| 7 a. The Commission shall ensure that the Parliament of Moldova as well as civil society is meaningfully consulted on the entirety of the Reform Agenda before the submission to the European Commission and is able to fully fulfil sufficient inquiry and monitoring duties during and after the duration of the Facility. |
Amendment 20
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 strive to ensure, as appropriate, democratic scrutiny in the form of consultation by Moldova’s government of the Parliament of Moldova 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. In addition, the Commission shall ensure that civil society in Moldova, including non-governmental organisations, is able to directly report any irregularities concerning funding or final beneficiaries to the Commission via appropriate standing channels, as well as to send to the Commission opinions on the implementation of the Reform Agenda and the evaluation of its measures by the Moldovan government. |
Amendment 21
Proposal for a regulation
Article 4 – paragraph 10
| Text proposed by the Commission | Amendment |
| 10. The Commission, in close cooperation with the Member States and Moldova, shall ensure the implementation of Union commitments to increased transparency and accountability in the delivery of support, including by promoting the implementation and reinforcement of internal control systems and anti-fraud policies. The Commission shall make information on the volume and allocation of support publicly available through the Scoreboard referred to in Article 24. Moldova shall publish up-to-date data on final recipients receiving Union funds for the implementation of reforms and investments under this Facility, as described in Article 20. | 10. The Commission, in close cooperation with the Member States and Moldova, shall ensure the implementation of Union commitments to increased transparency and accountability in the delivery of support, including by promoting the implementation and reinforcement of internal control systems, independent auditing mechanisms, and anti-fraud policies. The Commission shall make information on the volume and allocation of support publicly available through the Scoreboard referred to in Article 24. Moldova shall publish up-to-date data on final recipients receiving Union funds for the implementation of reforms and investments under this Facility, as described in Article 20. |
Amendment 22
Proposal for a regulation
Article 5 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. Preconditions for the support under the Facility shall be that Moldova upholds and respects effective democratic mechanisms, including a multi-party parliamentary system, free and fair elections, pluralistic media, an independent judiciary and the rule of law, and guarantee respect for all human rights obligations, including the rights of persons belonging to minorities. | 1. Preconditions for the support under the Facility shall be that Moldova upholds and respects effective democratic mechanisms, including a multi-party parliamentary system, free and fair elections, pluralistic media, financial and operational independence of the Court of Accounts of Moldova, an independent judiciary and the rule of law, also in view of threats to the Union’s financial interests, and guarantee respect for all human rights obligations, including the rights of persons belonging to minorities. |
Amendment 23
Proposal for a regulation
Article 5 – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. The Commission may adopt a decision concluding that some of the preconditions set out in paragraph 1 of this Article are not met, and in particular, withhold the release of funds referred to in Article 19, irrespective of whether the payment conditions referred to in Article 10 are fulfilled. | 3. The Commission may adopt a decision concluding that some of the preconditions set out in paragraph 1 of this Article are not met. In such case, the Commission shall withhold the release of funds referred to in Article 19, irrespective of whether the payment conditions referred to in Article 10 are fulfilled. In case of persistent lack of progress, serious deficiencies and/or regression in the area of the “fundamentals”, the Commission, after consulting the European Parliament and the Council, shall suspend the funding to Moldova. The Commission’s assessment shall be transmitted simultaneously to the European Parliament and the Council. |
Amendment 24
Proposal for a regulation
Article 6 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. The Facility shall 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. The amount for loans shall not constitute part of the amount of the External Action Guarantee within the meaning of Article 31(4) of Regulation (EU) 2021/947. | 1. The Facility shall be supported with resources from the Neighbourhood, Development and International Cooperation Instrument – Global Europe amounting to EUR 920 million and a maximum amount of EUR 1 000 million in loans. The amount for loans shall not constitute part of the amount of the External Action Guarantee within the meaning of Article 31(4) of Regulation (EU) 2021/947. |
Amendment 25
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 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 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. |
Amendment 26
Proposal for a regulation
Article 6 – paragraph 5
| Text proposed by the Commission | Amendment |
| 5. An amount of up to 1% of the non-repayable support referred to in paragraph 2 may be used for technical and administrative assistance for the implementation of the Facility, such as preparatory actions, monitoring, control, audit and evaluation activities, which are required for the management of the Facility and the achievement of its objectives, in particular studies, meetings of experts, training consultations with Moldova’s authorities, conferences, consultation of stakeholders, including local and regional authorities and civil society organisations, information and communication activities, including inclusive outreach actions, and the corporate communication of the political priorities of the Union, insofar as they are related to the objectives of this Regulation, expenses linked to IT networks focusing on information processing and exchange, corporate information technology tools, as well as all other expenditure at headquarters and Union delegation for the administrative and coordination support required for the Facility. Expenses may also cover the costs of activities supporting transparency and of other activities such as quality control and monitoring of projects or programmes on the ground and the costs of peer counselling and experts for the assessment and implementation of reforms and investments. | 5. An amount of up to 1% of the non-repayable support referred to in paragraph 2 may be used for technical and administrative assistance for the implementation of the Facility, such as preparatory actions, monitoring, control, audit and evaluation activities, which are required for the management of the Facility and the achievement of its objectives, in particular studies, meetings of experts, training consultations with Moldova’s authorities, namely the Court of Accounts of Moldova, conferences, consultation of stakeholders, including local and regional authorities and civil society organisations, information and communication activities, including inclusive outreach actions, and the corporate communication of the political priorities of the Union, insofar as they are related to the objectives of this Regulation, expenses linked to IT networks focusing on information processing and exchange, corporate information technology tools, as well as all other expenditure at headquarters and Union delegation for the administrative and coordination support required for the Facility. Expenses may also cover the costs of activities supporting transparency and of other activities such as quality control and monitoring of projects or programmes on the ground and the costs of peer counselling and experts for the assessment and implementation of reforms and investments. In case of using resources for auditing purposes, conflicts of interest between the entity performing the audit and other activities of that entity in the framework of the Facility, such as consulting or administrative and coordination support, quality control and monitoring of projects, shall be disclosed and prevented. |
Amendment 27
Proposal for a regulation
Article 8 – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. Funding shall be granted to Moldova only after the Facility Agreement and the loan agreement have entered into force. | 3. Funding, including pre-financing, shall be granted to Moldova only after a positive assessment by the Commission of fulfilment of the preconditions in Article 5, and the Facility Agreement and the loan agreement have entered into force. |
Amendment 28
Proposal for a regulation
Article 8 – paragraph 5 – point a
| Text proposed by the Commission | Amendment |
| (a) the commitment of Moldova to make decisive progress towards a robust legal framework to fight fraud, and establish more efficient and effective control systems, including appropriate mechanisms for the protection of whistleblowers as well as appropriate mechanisms and measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest as well as to strengthen the fight against money laundering, organised crime, misuse of public funds, terrorism financing, tax avoidance, tax fraud or tax evasion, and other illegal activities affecting the funds provided under the Facility; | (a) the commitment of Moldova to strictly prioritise the establishment of a robust legal framework to fight fraud, and establish more efficient and effective control systems, including appropriate mechanisms for the protection of whistleblowers as well as appropriate mechanisms and measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest as well as to strengthen the fight against money laundering, organised crime, misuse of public funds, terrorism financing, tax avoidance, tax fraud or tax evasion, and other illegal activities affecting the funds provided under the Facility; |
Amendment 29
Proposal for a regulation
Article 8 – paragraph 5 – point g
| Text proposed by the Commission | Amendment |
| (g) the measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest, and the obligation for persons or entities implementing Union funds under the Regulation to notify the Commission, OLAF and, where applicable, EPPO, without delay, of suspected or actual cases of irregularities, fraud, corruption and conflicts of interest and other illegal activities affecting the funds provided under the Facility and their follow-up; | (g) the measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest, and the obligation for persons or entities implementing Union funds under the Regulation to notify the Court of Accounts of Moldova, the Commission, OLAF and, where applicable, EPPO, without delay, of suspected or actual cases of irregularities, fraud, corruption and conflicts of interest and other illegal activities affecting the funds provided under the Facility and their follow-up; |
Amendment 30
Proposal for a regulation
Article 8 – paragraph 5 – point h a (new)
| Text proposed by the Commission | Amendment |
| (ha) to provide a similar level of access to information and authority to carry out on-the-spot controls as the Commission and the European Court of Auditors to the independent external auditor appointed by the Court of Accounts of Moldova; |
Amendment 31
Proposal for a regulation
Article 10 – paragraph 2
| Text proposed by the Commission | Amendment |
| 9. The fulfilment of those payment conditions shall trigger full or partial release of funds, depending on the degree of their completion. | 2. The fulfilment of those payment conditions shall trigger full or partial release of funds, depending on the degree of their completion and fulfilment of the preconditions mentioned in Article 5. |
Amendment 32
Proposal for a regulation
Article 11 – paragraph 1 – point l
| Text proposed by the Commission | Amendment |
| (l) an explanation of Moldova’s system to effectively prevent, detect and correct irregularities, fraud, corruption, including high-level corruption, and conflicts of interest and to enforce State aid control rules, and the proposed measures to address existing deficiencies in the first years of the implementation of the Reform Agenda; | (l) an explanation of Moldova’s system to effectively prevent, detect and correct irregularities, fraud, corruption, including high-level corruption, and conflicts of interest, to fight the informal economy, and to enforce State aid control rules, and the proposed measures to address existing deficiencies in the first years of the implementation of the Reform Agenda; |
Amendment 33
Proposal for a regulation
Article 11 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. The Reform Agenda shall be results-based and include indicators for assessing progress towards the achievement of the general and specific objectives set out in Article 3. Those indicators shall be based, where appropriate and relevant, on internationally agreed indicators and those already available related to the Moldova’s policies. Indicators shall also be coherent, to the extent possible, with the key performance indicators included in Commission Implementing Decision approving the Reform Agendas for the Western Balkans under Regulation (EU) 2024/1449 and in the EFSD+ Results Measurement Framework. | 2. The Reform Agenda shall be results-based and include indicators for assessing progress towards the achievement of the general and specific objectives set out in Article 3. Those indicators shall be based, where appropriate and relevant, on internationally agreed indicators and those already available related to the Moldova’s policies. Indicators shall also be coherent, to the extent possible, with the key performance indicators included in Commission Implementing Decision approving the Reform Agendas for the Western Balkans under Regulation (EU) 2024/1449 and in the EFSD+ Results Measurement Framework. The indicators shall be defined specific, measurable, achievable, relevant, and time-Bound. Each indicator will provide for quantitative and qualitative thresholds in order for the payment conditions to be considered as satisfactorily fulfilled. Indicators shall be included in the Decision referred to in Article 13. |
Amendment 34
Proposal for a regulation
Article 12 – paragraph 5 a (new)
| Text proposed by the Commission | Amendment |
| 5a. The Commission shall request Moldova to review and/or modify the Reform Agenda to address the potential risks when the outcomes of its assessment reveal that some or all criteria as stated in Article 12(4) are not met. |
Amendment 35
Proposal for a regulation
Article 13 – paragraph 3 – point e a (new)
| Text proposed by the Commission | Amendment |
| (ea) the Commission’s assessment of the preconditions as mentioned in Article 5; |
Amendment 36
Proposal for a regulation
Article 13 – paragraph 3 – point e b (new)
| Text proposed by the Commission | Amendment |
| (eb) the arrangements for partial payments, indicating the proportion of each relevant payment condition in each instalment scheduled to be released; |
Amendment 37
Proposal for a regulation
Article 13 – paragraph 3 – point e c (new)
| Text proposed by the Commission | Amendment |
| (ec) how the reversal of measures and/or non-fulfilment of preconditions after completion of the Facility shall be assessed. |
Amendment 38
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. |
Amendment 39
Proposal for a regulation
Article 17 – paragraph 1 a (new)
| Text proposed by the Commission | Amendment |
| 1a. No pre-financing shall be made available in case of detection of deficiencies in connection with Moldova’s control system reffered to in Article 11 (l), unless the Commision considers that those defficiencies have been addressed and corrected by Moldova. |
Amendment 40
Proposal for a regulation
Article 17 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. The Commission may release the requested pre-financing after the adoption of its implementing decision referred to in Article 13 and the entry into force of the Facility Agreement and of the loan agreement referred to in Articles 8 and 15 respectively. The funds shall be released in accordance with Article 19(3), first sentence, and subject to the respect of the preconditions set out in Article 5. | 2. The Commission may release the requested pre-financing after the adoption of its implementing decision referred to in Article 13 and the entry into force of the Facility Agreement and of the loan agreement referred to in Articles 8 and 15 respectively. The funds shall be released in accordance with Article 19(3), first sentence, and subject to the respect of the preconditions set out in Article 5 which shall be assessed by the Commission prior to the implementing decision. |
Amendment 41
Proposal for a regulation
Article 19 – paragraph 7
| Text proposed by the Commission | Amendment |
| 7. The Commission may reduce the amount of the non-repayable financial support and recover from Moldova, including by offsetting, any amount spent to achieve the objectives of the Facility, or to reduce the amount of the loan to be disbursed to Moldova or request early repayment of the loan in accordance with the loan agreement, in the event of funds unduly paid, identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interest affecting the financial interests of the Union that have not been corrected by Moldova, or of a reversal of qualitative or quantitative steps or in cases it is found, after the payment has taken place, that steps were not satisfactorily fulfilled, or of a serious breach of an obligation resulting from the Facility Agreements or from the loan agreements-, including on the basis of information provided by OLAF or of the Court of Auditors’ reports. The Commission shall inform the European Parliament and the Council prior to taking any decision of such reductions. | 7. The Commission may reduce the amount of the non-repayable financial support and recover from Moldova, including by offsetting, any amount spent to achieve the objectives of the Facility, or to reduce the amount of the loan to be disbursed to Moldova or request early repayment of the loan in accordance with the loan agreement, in the event of funds unduly paid, identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interest affecting the financial interests of the Union that have not been corrected by Moldova, or of a reversal of qualitative or quantitative steps or in cases it is found, after the payment has taken place, that steps were not satisfactorily fulfilled, or of a serious breach of an obligation resulting from the Facility Agreements or from the loan agreements-, including failure to meet preconditions related to transparency and financial integrity on the basis of information provided by OLAF or of the Court of Auditors’ reports. The Commission shall inform the European Parliament and the Council prior to taking any decision of such reductions. |
Amendment 42
Proposal for a regulation
Article 20 – paragraph 2 – introductory part
| Text proposed by the Commission | Amendment |
| 2. For final recipients referred to in paragraph 1, the following information shall be published in a machine- readable format on a webpage, in order of total funds received, having due regard to the requirements of confidentiality and security, in particular the protection of personal data: | 2. For final recipients referred to in paragraph 1, the following information shall be published in an open, interoperable and machine-readable format, which allows data to be sorted, searched, extracted, compared and reused, on a webpage, in order of total funds received, having due regard to the requirements of confidentiality and security, in particular the protection of personal data: |
Amendment 43
Proposal for a regulation
Article 20 – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. The information referred to in paragraph 2 shall not be published where disclosure risks threatening the rights and freedoms of the final recipients concerned or seriously harming their commercial interests. Such information shall be made available to the Commission. | 3. The information referred to in paragraph 2 shall not be published where disclosure risks threatening the rights and freedoms of the final recipients concerned or seriously harming their commercial interests. Such information shall be made available to the Commission and to the European Parliament's Committee on Budgetary Control, upon request. |
Amendment 44
Proposal for a regulation
Article 21 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. In implementing the Facility, the Commission and Moldova shall take all the appropriate measures to protect the financial interests of the Union, taking into account the principle of proportionality and the specific conditions under which the Facility will operate, the preconditions set out in Article 5(1) and conditions set out in the specific Facility Agreements, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interest and irregularities as well as the investigation and prosecution of offences affecting the funds provided under the Facility. Moldova shall commit to progressing towards effective and efficient management and control systems and ensure that amounts wrongly paid or incorrectly used can be recovered. | 1. In implementing the Facility, the Commission and Moldova shall take all necessary and robust measures to protect the financial interests of the Union, taking into account the principle of proportionality and the specific conditions under which the Facility will operate, the preconditions set out in Article 5(1) and conditions set out in the specific Facility Agreements, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interest and irregularities as well as the investigation and prosecution of offences affecting the funds provided under the Facility. Moldova shall commit to establishing and advancing effective and efficient management and control systems to ensure that amounts wrongly paid or incorrectly used can be recovered. |
Amendment 45
Proposal for a regulation
Article 21 – paragraph 2 – introductory part
| Text proposed by the Commission | Amendment |
| 2. The Facility Agreement shall provide for the following obligations of Moldova: | 2. The Facility Agreement and the loan agreements shall provide for the following obligations of Moldova: |
Amendment 46
Proposal for a regulation
Article 21 – paragraph 2 – point a
| Text proposed by the Commission | Amendment |
| (a) to regularly check that the financing provided has been used in accordance with the applicable rules, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interest and irregularities; | (a) to conduct regular and rigourous checks to ensure that the financing provided has been used in accordance with the applicable rules, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interest and irregularities; |
Amendment 47
Proposal for a regulation
Article 21 – paragraph 2 – point b
| Text proposed by the Commission | Amendment |
| (b) to protect whistleblowers; | (b) to establish and enforce mechanisms to protect whistleblowers; |
Amendment 48
Proposal for a regulation
Article 21 – paragraph 2 – point d a (new)
| Text proposed by the Commission | Amendment |
| (da) to accompany a payment request by: | |
| (i) a management declaration that the relevant payment conditions have been met with the support of the funds, that the information submitted with the request for payment is complete, accurate and reliable and that the control systems put in place give the necessary assurances that the funds were or will be managed in accordance with all applicable rules; | |
| (ii) a list of all measures for the implementation of the Facility including a description of measures with the total amount of additional national funding, where applicable, of those measures and projects and indicating the amount of funds paid under the Facility and under other Union funds, including resources transferred from other Union programmes; | |
| (iii) a summary of the audits carried out, including weaknesses identified and any corrective actions taken; |
Amendment 49
Proposal for a regulation
Article 21 – paragraph 2 – point d b (new)
| Text proposed by the Commission | Amendment |
| (db) for the purpose of audit, control and discharge, to maintain, and ensure access by the competent Union authorities including the discharge authority to: | |
| (i) 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 co-financing, other national contributions, or other contributions under this Facility or under other Union funds; and | |
| (ii) evidence showing the correlation between the grants, non-repayable financial support or loans received and the costs incurred for the achievement of indicators. |
Amendment 50
Proposal for a regulation
Article 21 – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. The Facility Agreement shall also provide for the right of the Commission to reduce proportionately the amount of the non-repayable financial support provided under the Facility and to recover from Moldova, including by offsetting, any amount spent to achieve the objectives of the Facility and to reduce the amount of the loan to be disbursed to the Beneficiary or request early repayment of the loan in accordance with the loan agreement, in the event of funds unduly paid, identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interest affecting the financial interests of the Union that have not been corrected by Moldova, or in cases it is found, after the payment has taken place, that steps were not satisfactorily fulfilled, or of a serious breach of an obligation resulting from the Facility Agreement or from the loan agreement When deciding on the amount of the recovery and reduction, or the amount to be repaid early, the Commission shall respect the principle of proportionality and shall take into account the seriousness of the irregularity, fraud, corruption or conflict of interest affecting the financial interests of the Union, or of a breach of an obligation. Moldova shall be given the opportunity to present its observations before the reduction is made or early repayment is requested. | 3. The Facility Agreement shall also provide for the right of the Commission to reduce proportionately the amount of the non-repayable financial support provided under the Facility and to recover from Moldova, including by offsetting, any amount spent to achieve the objectives of the Facility and to reduce the amount of the loan to be disbursed to Moldova or request early repayment of the loan in accordance with the loan agreement, in the event of funds unduly paid, identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interest affecting the financial interests of the Union that have not been corrected by Moldova, or in cases it is found, after the payment has taken place, that steps were not satisfactorily fulfilled, or of a serious breach of an obligation resulting from the Facility Agreement or from the loan agreement When deciding on the amount of the recovery and reduction, or the amount to be repaid early, the Commission shall respect the principle of proportionality and shall take into account the seriousness of the irregularity, fraud, corruption or conflict of interest affecting the financial interests of the Union, or of a breach of an obligation. Moldova shall be given the opportunity to present its observations before the reduction is made or early repayment is requested. |
Amendment 51
Proposal for a regulation
Article 21 – paragraph 4
| Text proposed by the Commission | Amendment |
| 4. Persons and entities implementing funds under the Facility shall report any suspected cases of fraud, corruption, conflicts of interest and irregularities affecting financial interests of the Union without delay, to the Commission and to OLAF. | 4. Persons and entities implementing funds under the Facility shall be required to immediately report any suspected cases of fraud, corruption, conflicts of interest and irregularities affecting financial interests of the Union without delay, to the Commission and to OLAF. A regular report on fraud and irregularities shall be transmitted to the European Parliament's Committee on Budgetary Control. |
Amendment 52
Proposal for a regulation
Article 21 – paragraph 4 a (new)
| Text proposed by the Commission | Amendment |
| 4 a. The Commission shall set out specific arrangements for the management, control, supervision, monitoring, evaluation, reporting and audit of funds under the Facility. |
Amendment 53
Proposal for a regulation
Article 21 a (new) – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. The Court of Accounts of Moldova shall fulfil, mutatis mutandis, and where applicable, the role and functions of the audit board as established under Regulation 2024/792, in particular Article 36 thereof. |
Amendment 54
Proposal for a regulation
Article 21 a (new) – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. The Court of Accounts of Moldova shall exercise its functions in complete objectivity and operate in compliance with best applicable international practices and standards. It shall act without prejudice to the powers of the Commission, OLAF, the Court of Auditors, and, where applicable, the EPPO. |
Amendment 55
Proposal for a regulation
Article 21 a (new) – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. The Court of Accounts of Moldova shall appoint an independent external auditor that provides an annual statement of assurance on the declarations by the Moldova’s authorities that accompany a request for payment. It shall also approve the annual work plan of the independent external auditor. |
Amendment 56
Proposal for a regulation
Article 21 a (new) – paragraph 4
| Text proposed by the Commission | Amendment |
| 4. The Court of Accounts of Moldova shall decide on recommendations to the Commission and the Moldova’s authorities on amounts to be recovered following the findings of the independent external auditor, and inform the Commission and the Moldova’s authorities of those recommendations. |
Amendment 57
Proposal for a regulation
Article 21 a (new) – paragraph 5
| Text proposed by the Commission | Amendment |
| 5. The Court of Accounts of Moldova shall ensure regular dialogue and cooperation with the Court of Auditors. |
Amendment 58
Proposal for a regulation
Article 21 a (new) – paragraph 6
| Text proposed by the Commission | Amendment |
| 6. In carrying out their duties, the Court of Accounts of Moldova, its members and its staff shall neither seek nor take instructions from Moldova’s government or any institution, body, office or agency. Strong guarantees of independence shall apply for the selection of its staff, management and budget. |
Amendment 59
Proposal for a regulation
Article 21 a (new) – paragraph 7
| Text proposed by the Commission | Amendment |
| 7. The Court of Accounts of Moldova shall assist the Commission in fighting mismanagement of Union funding under the Facility and in particular fraud, corruption, conflict of interests and irregularities incurred in relation to any amount spent to achieve the objectives of the Facility. |
Amendment 60
Proposal for a regulation
Article 21 a (new) – paragraph 8
| Text proposed by the Commission | Amendment |
| 8. For that purpose, the Court of Accounts of Moldova shall regularly report to the Commission and the relevant committees of the European Parliament and the Council, and transmit to the Commission, without delay any information it obtains or is made aware of, on any identified cases of, or serious concerns in relation to, mismanagement of public funding incurred in relation with any amount spent to achieve the objectives of the Facility, including its performance. | |
| In accordance with Article 24(1) of Regulation (EU) 2017/1939, the Court of Accounts of Moldova shall report to the EPPO any criminal conduct in respect of which the latter could exercise its competence. | |
| In addition, the Court of Accounts of Moldova shall adopt recommendations to Moldova on all cases where in its view Moldova’s competent authorities have not taken the necessary steps to prevent, detect and correct fraud, corruption, conflict of interests and irregularities that have affected or seriously risk affecting the sound financial management of the expenditure financed under the Facility and in all cases where it identifies weaknesses affecting the design and functioning of the control system put in place by Moldova’s authorities. The latter shall implement such recommendations without undue delay, or provide a justification on why it has not done so. | |
| The reports of, and information from, the Court of Accounts of Moldova shall also be sent to OLAF, and where applicable to the EPPO, and may be shared with the relevant authorities of Moldova, especially in case the latter need to take steps to prevent, detect and correct fraud, corruption, conflict of interests and irregularities or any other illegal activity affecting the financial interests of the Union, including its performance, as well as to investigate and prosecute criminal offences affecting the financial interests of the Union. |
Amendment 61
Proposal for a regulation
Article 21 a (new) – paragraph 9
| Text proposed by the Commission | Amendment |
| 9. The Court of Accounts of Moldova shall have access to information, databases and registries required to carry out its tasks. The facility agreement referred to in Article 8 shall define rules and details for the access to relevant information by the Court of Accounts of Moldova and the provision of relevant information by Moldova to the Court of Accounts. |
Amendment 62
Proposal for a regulation
Article 21 a (new) – paragraph 10
| Text proposed by the Commission | Amendment |
| 10. The Court of Accounts of Moldova may assist the Commission in supporting Moldova with capacity building activities in the field of fight against mismanagement of public funding. |
Amendment 63
Proposal for a regulation
Article 21 a (new) – paragraph 11
| Text proposed by the Commission | Amendment |
| 11. The functioning of the Court of Accounts of Moldova shall be funded under Article 6 paragraph 5, including the funding for the appointed independent external auditor. |
Amendment 64
Proposal for a regulation
Article 22 – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. Moldova shall report any irregularities, including fraud, which have been the subject of a primary administrative or judicial finding, without delay, to the Commission and shall keep the Commission informed of the progress of any administrative and legal proceedings in relation to such irregularities. Such reporting shall be done by electronic means, using the Irregularity Management System, established by the Commission. | 3. Moldova shall report any irregularities, including fraud, which have been the subject of a primary administrative or judicial finding, without delay, to the Court of Accounts of Moldova and the Commission and shall keep the Commission informed of the progress of any administrative and legal proceedings in relation to such irregularities. Such reporting shall be done by electronic means, using the Irregularity Management System, established by the Commission |
Amendment 65
Proposal for a regulation
Article 22 – paragraph 4
| Text proposed by the Commission | Amendment |
| 4. The entities referred to in paragraph 1 shall maintain regular dialogue with the Court of Auditors, OLAF and, where appropriate, EPPO. | 4. The entities referred to in paragraph 1 shall maintain regular dialogue with the Court of Accounts of Moldova, the Court of Auditors, OLAF and, where appropriate, EPPO. |
Amendment 66
Proposal for a regulation
Article 22 – paragraph 6
| Text proposed by the Commission | Amendment |
| 6. The Commission may adopt recommendations to Moldova on all cases where in its views competent authorities have not taken the necessary steps to prevent, detect and correct fraud, corruption, conflicts of interest and irregularities that have affected or seriously risk affecting the sound financial management of the expenditure financed under the Facility and in all cases where it identifies weaknesses affecting the design and functioning of the control system put in place by the those authorities. Moldova concerned shall implement such recommendations or provide a justification on why it has not done so. | 6. The Commission may adopt recommendations to Moldova on all cases where in its views competent authorities have not taken the necessary steps to prevent, detect and correct fraud, corruption, conflicts of interest and irregularities that have affected or seriously risk affecting the sound financial management of the expenditure financed under the Facility and in all cases where it identifies weaknesses affecting the design and functioning of the control system put in place by those authorities. Moldova shall implement such recommendations or provide a justification on why it has not done so. |
Amendment 67
Proposal for a regulation
Article 24 – paragraph 1
| Text proposed by the Commission | Amendment |
| 6. The Commission shall establish display the progress of the implementation of the Reform Agenda in the Facility scoreboard, established under Regulation (EU) 2024/1449. | 1. The Commission shall display the progress of the implementation of the Reform Agenda in the Facility scoreboard, established under Regulation (EU) 2024/1449, in particular article 26 thereof. |
Amendment 68
Proposal for a regulation
Article 26 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. The beneficiary shall report once a year in the context of the Economic and Financial Dialogue on the progress made in the achievement of the reform-related part of its Reform Agenda. | 1. Moldova shall report once a year in the context of the Economic and Financial Dialogue on the progress made in the achievement of the reform-related part of its Reform Agenda. |
ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for the opinion received input from the following entities or persons in the preparation of the opinion, prior to the adoption thereof in committee:
| Entity and/or person |
| European Court of Auditors |
| Delegation of the European Union to the Republic of Moldova |
| Embassy of Sweden in Chisinau |
| Moldova Ministry for Economic Development and Digitalization |
The list above is drawn up under the exclusive responsibility of the rapporteur for the opinion.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for the opinion declares that he has submitted to the concerned natural persons the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.