{"id":131611,"date":"2025-03-18T13:59:40","date_gmt":"2025-03-18T11:59:40","guid":{"rendered":"https:\/\/eu4moldova.eu\/?p=131611"},"modified":"2025-03-18T14:05:57","modified_gmt":"2025-03-18T12:05:57","slug":"council-gives-final-green-light-to-support-reforms-and-economic-growth-with-e1-9-billion","status":"publish","type":"post","link":"https:\/\/eu4moldova.eu\/en\/council-gives-final-green-light-to-support-reforms-and-economic-growth-with-e1-9-billion\/","title":{"rendered":"Council gives final green light to support reforms and economic growth with \u20ac1.9 billion"},"content":{"rendered":"\n

The Council today gave its final green light to setting up the\u00a0Reform and Growth Facility\u00a0for the Republic of Moldova, a new instrument to support EU-related reforms and economic growth in the country.<\/strong><\/p>\n\n\n\n

The envelope of \u20ac1.9 billion provided by the Facility is the largest EU financial support package <\/strong>since Moldova\u2019s independence and comes on top of the EU\u2019s other substantial support to the country. It will boost Moldova\u2019s economy and bring the country closer to EU membership by accelerating reforms. It will also help Moldova face the challenges stemming from Russia\u2019s war of aggression against Ukraine<\/strong> and continuous Russia\u2019s attempts to destabilise the country.<\/p>\n\n\n\n

\u201cToday we are helping Moldovans advance key socio-economic reforms, boost their economy and accelerate the country\u2019s accession to the EU. The new instrument will also strengthen Moldova\u2019s resilience by mitigating the impact of Russia\u2019s unjust war of aggression against Ukraine,<\/em>\u201d stated Adam Sz\u0142apka, Minister for European Affairs of Poland.<\/p>\n\n\n\n

This Facility is the financial pillar of the Moldova Growth Plan<\/strong>, 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 \u20ac385 million<\/strong> in grants and \u20ac1.5 billion<\/strong> in loans. These loans will be highly concessional, with long repayment time and advantageous interest rates.<\/p>\n\n\n\n

Payments will be subject to strict conditions in terms of the achievement of reformsset out in the agreed Reform Agenda<\/strong>.<\/p>\n\n\n\n

Objectives of the Facility<\/strong><\/p>\n\n\n\n

The Facility will support Moldova in undertaking EU-related reforms<\/strong>, as well as in accelerating growth and achieving economic convergence<\/strong> with the EU. It will cover all sectors that are vital to promote Moldova\u2019s economic growth and integrate it into the EU single market. The Facility will also be instrumental in delivering the EU\u2019s Comprehensive Strategy for Energy Independence and Resilience<\/strong> 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.<\/p>\n\n\n\n

Funds will be released twice a year, based on requests by the government of Moldova and following verification<\/strong> by the Commission that all relevant conditions laid out in the Reform Agenda have been met.<\/p>\n\n\n\n

Next steps<\/strong><\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Background<\/strong><\/p>\n\n\n\n

On 10 October 2024, the European Commission presented a Moldova Growth Plan, which is based on three pillars:<\/p>\n\n\n\n