Regulation (EU) 2025/535 establishing the Reform and Growth Facility for the Republic of Moldova

What it is

PURPOSE: to establish the reform and growth facility for Moldova for the period 2025-2027. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: it is in the common interest of the Union and Moldova to advance with the reforms its political, legal and economic systems with a view to its future Union membership. The prospect of Union membership has a powerful transformative effect, embedding positive democratic, political, economic and societal change. The Committee on Foreign Affairs and the Committee on Budgets jointly adopted the report by Sven MIKSER (S&D, EE) and Siegfried MUREŞAN (EPP, RO) on the proposal for a regulation of the European Parliament and of the Council on establishing the Reform and Growth Facility for the Republic of Moldova. The committees responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows: The proposed Regulation establishes the Reform and Growth Facility for Moldova for 2025-2027, aiming to support Moldova’s Growth Plan. Key investment areas include connectivity, infrastructure, sustainable transport, decarbonisation, energy, green and digital transitions, agriculture, education, labour market participation, and skills development, focusing on children, youth, and raising living standards. The Facility builds on Moldova’s Association Agenda and the Economic and Investment Plan for the Eastern Partnership, focusing on sectors like connectivity, energy security, business development, and integration into the EU single market. T he Facility should be supported with resources from the Neighbourhood, Development and International Cooperation Instrument – Global Europe amounting to EUR 420 million and a maximum amount of EUR 1 500 million in loans for the period from 2025-2027. The amount should cover the 9% provisioning required for the loans corresponding to EUR 135 million , support provided by the Union for projects approved under the NIP and complementary support, including support to civil society organisations and technical assistance. In order to maximise EU financial support, the 9 % provisioning required for the loans corresponding to EUR 135 million should be covered from the NDICI- Global Europe Emerging challenges and priorities cushion . In addition, Moldova should remain eligible for NDICI regional, thematic and rapid response programmes as well as humanitarian aid. Member States, third countries, international organisations, international financial institutions or other sources may provide additional financial contributions to the Facility. The specific objectives of the Facility should inter alia be to: - build a functioning market economy capable of coping with competitive pressure and market forces within the Union, strengthen the fight against fraud and all forms of corruption, including high-level corruption, oligarchic influence and nepotism ; - fight disinformation, hybrid threats, cyberattacks and…

Official title: Regulation (EU) 2025/535 of the European Parliament and of the Council of 18 March 2025 establishing the Reform and Growth Facility for the Republic of Moldova