The European Parliament has given the green light on Tuesday to the Growth Plan for the Republic of Moldova worth 1.9 billion euros, the largest support instrument in the history of this country.
The community legislature approved the Reform and Growth Mechanism for the Republic of Moldova with a large majority – 499 votes in favor, 117 against, and 44 abstentions.
MEPs practically approved a provisional agreement reached by the negotiators of the European Parliament and the Council on February 19 regarding the Reform and Growth Mechanism for the Republic of Moldova. Through grants and low-interest loans, the mechanism aims to help the Republic of Moldova cope with major challenges, especially the profound impact of Russia's aggression against Ukraine on the security, economy, and population of the country.
The instrument should also strengthen the resilience of the Republic of Moldova against hybrid attacks and Russian interference targeting its democratic processes and institutions, as mentioned in a statement from the European Parliament.
The mechanism adopted by the European Parliament provides for increased support based on grants: negotiators have agreed to allocate 520 million euros in grants - an increase of 100 million euros from the initial proposal - alongside 1.5 billion euros in low-interest loans. This adjustment will allow Moldova to reform without accumulating unsustainable debts.
The mechanism also provides for a pre-financing of 18% of the total support, an increase from the initially proposed 7%, allowing for the rapid mobilization of resources to boost energy security, anti-corruption infrastructure, and modernization of public services.
20% of the non-repayable funds will be allocated to strengthen the institutions of the Republic of Moldova through digital governance systems, public officials' training, and judicial reforms - prerequisites for effective management of EU funds.
To ensure full parliamentary oversight, the agreement establishes a dialogue between the Parliament and the Commission to periodically assess the progress made in implementation.
The agreement also allows for voluntary contributions from other donors, such as international financial organizations, to provide additional financial support to the Republic of Moldova.
The mechanism cannot support activities or measures that would undermine the sovereignty or territorial integrity of the country.
"After 3 months of negotiations, we have agreed on this Facility that includes three very important things for Moldova. (…) We managed to approve the Facility faster than other similar legislative files. This way, the funds will reach the Republic of Moldova as early as April," said Siegfried Mureșan, co-rapporteur of the European Parliament for this growth mechanism.
Following the green light from the Parliament, the provisional agreement will now need to be approved by the Council. The instrument will enter into force after approval by the Parliament and Council and after its publication in the Official Journal of the EU.