MEPs approved a provisional agreement reached by Parliament and Council negotiators on 19 February 2025 on the Reform and Growth Facility for Moldova. Through grants and low‑interest loans, the Facility seeks to help Moldova deal with the major challenges it is facing, in particular the profound impact of Russia’s war of aggression against Ukraine on the country’s security, economy and people. The instrument should also strengthen Moldova’s resilience against Russian hybrid attacks and interference targeting its democratic processes and institutions.
Key improvements secured in negotiations between MEPs and Council:
Increased grant-based support: negotiators agreed to allocate €520 million in grants – a €100 million increase compared to the initial proposal – alongside €1.5 billion in low-interest loans. This adjustment will enable Moldova to reform without accumulating unsustainable debt.
Accelerated funding access: the Facility envisages 18% pre-financing of total support, up from the originally-proposed 7%, enabling rapid deployment of resources to boost energy security, anti‑corruption infrastructure and public service modernisation.
Administrative capacity building: 20% of grant funds will be earmarked to shore up Moldova’s institutions through digital governance systems, civil service training, and judicial reforms – prerequisites for effective EU fund management.
Reinforced oversight framework: to ensure full parliamentary scrutiny, the agreement establishes a dialogue between Parliament and the Commission to review implementation progress regularly.
The agreement also allows for voluntary contributions by other donors, such as international financing organisations, to offer Moldova additional financial support. Finally, the Facility cannot support activities or measures that would undermine the country’s sovereignty or territorial integrity.
MEPs approved the Facility with 499 votes, 117 against and 44 abstentions.
Quotes
Siegfried Mureșan (EPP, Romania), co-rapporteur for the Committee on Budgets, said: “Given recent geopolitical developments, the EU is ready to act. With today’s vote on the €1.9 billion Moldova Reform & Growth Facility, we are boosting pre-financing from 7% to 18% and adding an extra €100 million in grants. This is our commitment to doing more and acting swiftly to support Moldova and our neighbours in these challenging times.”
Sven Mikser (S&D, Estonia), co-rapporteur for the Committee on Foreign Affairs, said: “The Facility demonstrates our dedication to Moldova’s EU accession by providing crucial support for essential reforms. We are increasing the grant component to 20.5% and the pre-financing rate to 18%, securing €520 million in non-repayable aid and facilitating swift access to funding. This will empower Moldova to strengthen its democratic institutions, enhance energy security, stimulate economic growth, and improve the well-being of its people.”
Next steps
Having received the green light from Parliament, the provisional agreement will now need to be approved by the Council. The Facility will enter into force after the approval by Parliament and Council, and following its publication in the EU’s official journal.
Background
Between 2025 and 2027, the Facility will give Moldova access to a maximum of €1.885 billion (in current prices), which includes up to €1.5 billion in concessional loans. The Facility also provides €520 million in grants, of which 385 million is in the form of non-repayable financial support and €135 million set aside to provision the loans, retained in the EU budget as a guarantee for investors. The Reform and Growth Facility is part of a broader EU Growth Plan for Moldova, aimed at doubling its economy within a decade while fostering socio-economic stability. The instrument is modelled on similar initiatives in other EU candidate regions, such as the Western Balkans Facility. It represents a significant step forward in Moldova’s path towards EU membership.
Discussion about this post