Brussels greenlights €1.9 billion to boost Moldova’s EU integration

The Council of the European Union has formally approved the establishment of the Reform and Growth Facility for the Republic of Moldova, marking the largest EU financial support package for the country since its independence.

The €1.9 billion initiative aims to bolster Moldova’s economy, accelerate EU-related reforms, and enhance the country’s resilience in the face of Russia’s ongoing war against Ukraine, Caliber.Az reports, citing the Council's press release.

Strengthening Moldova's EU accession efforts

The newly approved Facility is designed to bring Moldova closer to EU membership by expediting key reforms and economic integration. It complements the EU’s existing financial and technical assistance to Moldova, reinforcing the country’s path toward European integration.

“Today we are helping Moldovans advance key socio-economic reforms, boost their economy, and accelerate the country’s accession to the EU. The new instrument will also strengthen Moldova’s resilience by mitigating the impact of Russia’s unjust war of aggression against Ukraine,” said Adam Szłapka, Poland’s Minister for European Affairs.

Structure and conditions of the Facility

The Reform and Growth Facility serves as the financial pillar of the Moldova Growth Plan, unveiled by the European Commission in October 2024. It will provide Moldova with up to €385 million in grants and €1.5 billion in concessional loans between 2025 and 2027. These loans will feature long repayment periods and favorable interest rates, ensuring sustainable financial support for the country.

Disbursements from the Facility will be strictly conditional, contingent upon Moldova meeting reform benchmarks outlined in the agreed Reform Agenda. The European Commission will conduct biannual reviews to verify compliance before releasing funds.

Key objectives and sectors of support

The Facility will focus on supporting Moldova in implementing EU-related reforms, driving economic growth, and achieving greater economic convergence with the EU. It will address vital sectors, including governance, infrastructure, digital transformation, and financial stability, all essential for Moldova’s deeper integration into the EU single market.

A core component of the Facility is the EU’s Comprehensive Strategy for Energy Independence and Resilience of Moldova. This initiative seeks to reduce Moldova’s reliance on Russian energy supplies and fully integrate the country into the EU energy market, thereby enhancing its energy security.

Timeline and implementation

Fund releases will occur twice a year upon the Moldovan government’s request, following a thorough assessment by the European Commission to ensure compliance with reform commitments. This structured approach aims to sustain Moldova’s progress while ensuring financial transparency and accountability.

With this landmark financial package, the EU reaffirms its commitment to Moldova’s stability, economic development, and eventual EU accession, providing a crucial boost to the country as it navigates both internal reforms and external geopolitical challenges.

By Khagan Isayev