European Parliament endorses EUR 1.9 bln support package for Moldova

The European Parliament announced on March 11 that it endorsed the EUR 1.9 billion support package under the Reform and Growth Facility for Moldova. Of the total, EUR 420 million will be provided as grants.

Besides increasing the grant side by EUR 100 million, MEPs backed an increase in pre-financing from 7% to 20% of the total, ensuring Moldova will receive over EUR 300 million shortly after the package takes effect.

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.

The funds are intended to support 25,000 businesses, major infrastructure projects, and Moldova's energy interconnection with the EU. Additionally, Moldova will gain access to the European single market, including for transport and euro payments.

Before the funds are disbursed, the Moldovan government must submit a reform plan.

MEPs approved the Facility with 499 votes, 117 against, and 44 abstentions.

The plan is the largest EU financial support package for the Republic of Moldova since its independence. It will stimulate the state's economy, provide significant financial assistance, and bring Moldova closer to EU accession by accelerating reforms.

"An important moment for Moldova: we thank the European Parliament for its support for the Growth Plan - a strong vote of confidence in our future. The EUR 1.9 billion in investments to develop the economy, create new opportunities, and improve people's lives as we move closer to the European Union," president Maia Sandu said, as quoted by Deschide.md.

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