Historic Support for Republic of Moldova: The European Union Offers a Financial Package of €1.8 billion euro for the Development of the Country

The European Union took an essential step in supporting the development of the Republic of Moldova by approving an unprecedented financial package worth €1.8 billion. The Economic Growth Plan is part of a broad support project aimed at accelerating the process of Moldova’s accession to the EU, strengthening its capacity to implement essential reforms and stimulate the national economy.

This financial aid, provided for the 2025-2027 period, marks the most important economic support given by the EU since the independence of Moldova. The Growth Plan for Moldova is focused on three pillars: improving infrastructure and increasing financial assistance, integration into the EU Single Market and the implementation of fundamental socioeconomic reforms.

The context of the decision and the European impact

This support comes at a crossroads for Moldova, when the country is stepping up its efforts to align itself with European Union standards and values. Through this package, EU not only provides concrete financial aid, but also reaffirms its commitment to the European future of Moldova.

The President of the European Commission, Ursula von der Leyen, emphasized that this support package can “double the size of Moldova’s economy in a decade”, investing in jobs, infrastructure and services. She mentioned that “the future of Moldova is in the European Union”, and that this aid opens the doors of the Single Market for Moldovan companies.

Josep Borrell, the High Representative for Foreign Affairs and Security Policy, added that the Plan recognises the “impressive progress” of the Republic of Moldova on its European path and that it will “strengthen the security, peace and prosperity of the country.”

The Commissioner for Enlargement, Oliver Várhelyi, reaffirmed the EU’s commitment in supporting Moldova on its path towards socioeconomic convergence with Europe, stating that these investments are aligned with the strategic priorities of the country.

The strategic pillars of the Economic Growth Plan

The EUR 1.8 billion EU financial support for Moldova is based on three essential pillars, each of which directly contributes to the reform and modernisation of the country:

1. Increasing financial assistance and upgrading infrastructure. This package component focuses on supporting some necessary structural reforms as well as on the modernization of the national infrastructure, a very important sector for the economic development of Moldova. A large part of these funds will be allocated to the construction and improvement of transport infrastructure, including roads, bridges and railways.

Notable examples of the funded projects include the construction of a new ring road around Chisinau, aimed at streamlining traffic and increasing the efficiency of goods transportation. Significant improvements will also be made in connecting the capital with other key regions such as Odesa and Iasi.

As for the health sector, two new hospitals will be built in Cahul and Balti, improving access to quality medical services for citizens. Additionally, the energetic security of Moldova will be strengthened through new interconnections with the European power grid, reducing the country’s dependence on unstable external sources. At the same time, investments will be made in the broadband Internet network, which will integrate the more isolated rural areas, contributing to the digitization of the economy.

2. Integration into the European Union Single Market. The second pillar of the Plan focuses on bringing Moldova closer to the European Single Market. It opens up new opportunities for the country’s economy by facilitating trade, increasing exports and integrating into the EU digital market.

Moldova will start a gradual process of integration into the EU Single Market, which will allow Moldovan companies to more easily access European markets. Moreover, the standards required for participation in the Single Market will be implemented gradually, providing long-term economic benefits.

Integration into the Single Euro Payments Area (SEPA) will facilitate international financial transactions, and through “Roam like at home”, Moldovan citizens will be able to use telecommunications services in the EU without additional costs, starting from 2025.

3. Fundamental socioeconomic reforms. The third pillar of the Plan is dedicated to essential reforms that will transform Moldova into a competitive economy, aligned with European values ​​and standards. Economic governance, competitiveness and infrastructure resilience will be strengthened through investments that attract foreign capital and support the development of Small and Medium-sized Enterprises (SMEs).

The focus will be on the ecological transition, with investments aimed at reducing the impact of climate change and promoting sustainable development. Furthermore, by supporting Small and Medium-sized Enterprises (SMEs) and creating a favorable environment for foreign investments, the economy of the Republic of Moldova will benefit from substantial growth.

Economic and social benefits in the long term

The EU-approved Economic Growth Plan is intended to have a significant long-term impact on the Moldovan economy and society. According to the estimates, the economy of Moldova could double in size in the next ten years, generating a substantial increase in the standard of living.

The average salary in the economy, which is currently around 13,500 lei, could reach 27,000 lei by the end of the decade, thanks to reforms and strategic investments.

At the same time, it is expected that up to 100,000 new jobs will be created, and over 25,000 SMEs will directly benefit from financial support. These investments will also ensure the completion of some major infrastructure projects, such as the new hospitals in Cahul and Balti, and will improve the transport infrastructure.

Plan results in figures – targeted until the end of 2027

• Job creation: 100,000 Moldovan citizens will have access to jobs in the Republic of Moldova.
• New businesses: Support in launching 5,000 businesses, including small family-owned businesses.
• Support for existing businesses: At least 25,000 small businesses will benefit from support.
• EU exports: Supporting at least 3,000 businesses exporting to the EU.
• Improved infrastructure: Modernization of roads (e.g. Chisinau ring road, Odesa-Chisinau-Iasi road), urban transport, railways and building bridges over the Prut River.
• Energy security: Completion of a new power line and the start of construction of two others, which will connect Moldova to the EU power grid.
• Energy subsidies: Providing Moldovan citizens with approximately 40,000 eco-vouchers with a value of up to 350 euro, intended for the purchase of more energy-efficient household appliances.
• Drinking Water and Sanitation: Access to drinking water, sanitation services and modern waste management for 1.5 million people.
• Health: Building and equippment of two new hospitals in Cahul and Balti.
• Childcare: Creation of up to 5,000 new places in kindergartens.
• Environment: Rehabilitation of at least 63,000 hectares of land and forests.
• Agriculture: Subsidies for farmers, to expand business and increase exports to EU markets.
• Roaming and digitalisation: Complete elimination of roaming charges by the end of 2025 and expansion of broadband Internet networks in isolated areas of Moldova.

Context

The Economic Growth Plan represents a historic moment for the Republic of Moldova and marks a new stage in the process of joining the European Union. Through this financial package of 1.8 billion euro, the EU demonstrates its firm support for Moldova’s European future, facilitating critical reforms and opening the doors for the economic and social integration of the country. The successful implementation of this Plan will transform Moldova into a modern, competitive and prosperous economy, bringing it ever closer to the status of a full member of the European Union.