Council gives final green light to support reforms and economic growth with €1.9 billion
The Council today gave its final green light to setting up the Reform and Growth Facility for the Republic of Moldova, a new instrument to support EU-related reforms and economic growth in the country.
The envelope of €1.9 billion provided by the Facility is the largest EU financial support package since Moldova’s independence and comes on top of the EU’s other substantial support to the country. It will boost Moldova’s economy and bring the country closer to EU membership by accelerating reforms. It will also help Moldova face the challenges stemming from Russia’s war of aggression against Ukraine and continuous Russia’s attempts to destabilise the country.
“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,” stated Adam Szłapka, Minister for European Affairs of Poland.
This Facility is the financial pillar of the Moldova Growth Plan, presented by the Commission in October 2024. It will support Moldova during the period from 2025 to 2027 and is expected to provide up to €385 million in grants and €1.5 billion in loans. These loans will be highly concessional, with long repayment time and advantageous interest rates.
Payments will be subject to strict conditions in terms of the achievement of reformsset out in the agreed Reform Agenda.
Objectives of the Facility
The Facility will support Moldova in undertaking EU-related reforms, as well as in accelerating growth and achieving economic convergence with the EU. It will cover all sectors that are vital to promote Moldova’s economic growth and integrate it into the EU single market. The Facility will also be instrumental in delivering the EU’s Comprehensive Strategy for Energy Independence and Resilience of Moldova, which aims to decouple Moldova from the insecurities of Russian supply of energy and fully integrate the country in the EU energy market.
Funds will be released twice a year, based on requests by the government of Moldova and following verification by the Commission that all relevant conditions laid out in the Reform Agenda have been met.
Next steps
The regulation on establishing the Reform and Growth Facility for Moldova will now be signed by the presidents of the Council and of the European Parliament, published in the EU Official Journal and enter into force on the following day.
Background
On 10 October 2024, the European Commission presented a Moldova Growth Plan, which is based on three pillars:
- supporting Moldova’s socio-economic and fundamental reforms,
- enhancing Moldova’s access to the EU’s single market, and
- increasing financial support for 2025-2027 through a dedicated Reform and Growth Facility for Moldova.
The co-legislators reached a provisional agreement on this file on 19 February 2025.
- Regulation establishing the Reform and Growth Facility for Moldova, 18 March 2025
- Moldova: Council and European Parliament agree to support reforms and economic growth with almost €2 billion (Council press release, 19 February 2025)
- Commission adopts €1.8 billion support package to underpin Moldova’s economic growth plan on its path to the EU (European Commission press release, 10 October 2024)
- View the reunion page
