Reform and Growth Facility for Moldova: Council agrees its negotiating position

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The Council today agreed its negotiating position on the Reform and Growth Facility for the Republic of Moldova.

The proposed 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 €285 million in grants and €1.5 billion in loans. These loans will be highly concessional, with long repayment time and advantageous interest rates. The facility will also support Moldova in its EU accession process and in undertaking EU-related reforms as well as stimulate economic convergence with the EU.

Payments will be subject to strict conditions in terms of the achievement of reforms set out in the agreed Reform Agenda.

<p>Péter Szijjártó, Minister of Foreign Affairs of Trade of Hungary</p> <p>«><br /> </figure> <div> <span class=

The Hungarian presidency has been determined to deliver progress on Moldova’s EU accession. This package is a concrete result of those efforts, helping Moldova implement key reforms, strengthen its economy, and advance its EU integration process.

<p>Péter Szijjártó, Minister of Foreign Affairs of Trade of Hungary</p> <p>«><br /> </figure> <p> <cite><span class=

Péter Szijjártó, Minister of Foreign Affairs of Trade of Hungary

Main elements of the Council’s mandate

The Council’s negotiating position closely reflects the Commission proposal on establishing the facility.

At the same time, in its mandate, the Council places additional focus on helping Moldova manage and mitigate the challenges stemming from Russia’s war of aggression against Ukraine and its attempts to destabilise Moldova.

Other adjustments to the Commission proposal aim to strengthen the role of the EU member states in the governance of the facility. This concerns, in particular, their role in the assessment of the fulfilment of payment conditions.

Next steps

The agreement on the Council’s negotiating position will allow the Council presidency to begin negotiations with the European Parliament once the Parliament has voted on its mandate.

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 over the next three years through a dedicated Reform and Growth Facility for Moldova.

The envelope of up to €1.8 billion provided by the facility is the largest EU financial support package to Moldova since its independence and comes on top of the EU’s other substantial support to Moldova.

In its conclusions on enlargement approved today, the Council welcomed the Commission’s communication on the new Growth Plan for Moldova and looked forward to reaching political agreement on the Reform and Growth Facility for Moldova as soon as possible.

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