Parliament and member states agree on new support plan for Moldova

This article is brought to you in association with the European Parliament.

• New €1.9 billion facility to accelerate Moldova’s socio-economic reforms, strengthen resilience, and advance its EU integration 
• Mitigate the profound impact on Moldova of Russia’s war of aggression against Ukraine 
• Agreement includes enhanced grants, accelerated funding and robust oversight by Parliament 

EU member states and MEPs have agreed on essential improvements to a new support facility for Moldova, focusing on better financing and democratic oversight.

Negotiators from the European Parliament and the Council of the EU have reached a provisional agreement on Wednesday on the Reform and Growth Facility for Moldova. The Facility aims to support Moldova in facing significant challenges, notably to mitigate the profound impact of Russia’s war of aggression against Ukraine on Moldova’s security, economy, and citizens’ livelihoods and to strengthen its resilience against the ongoing and unprecedented hybrid attacks and foreign malign interference targeting the country and democratic processes and institutions.

Key improvements:

Increased grant-based support: Negotiators agreed to allocate €520 million in grants – a €100 million increase compared to initial proposals – alongside €1.5 billion in low-interest loans. This adjustment ensures Moldova can implement reforms without unsustainable debt accumulation.

Accelerated funding access: The Facility provides 18% pre-financing, up from 7% originally, of total support, enabling rapid deployment of resources to address energy security, anti-corruption infrastructure, and public service modernisation.

Administrative capacity building: A dedicated 20% of grant funds will strengthen 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.

Also agreed was to make available additional voluntary contributions in the form of external assigned revenue from other donors such as international financing organisations for further financial support to Moldova, and that the Facility shall not support activities or measures which undermine the sovereignty and territorial integrity of Moldova.

Quotes

Siegfried Mureșan (EPP, Romania), co-rapporteur for the Committee on Budgets: “With a €200 million increase in pre-financing and €100 million in total allocations, we are mobilizing enhanced immediate support to assist Moldova in advancing reforms, accelerating its European integration, and countering the economic and energy repercussions of Russian aggression. This ambitious agreement underscores Europe’s capacity to respond decisively to escalating geopolitical challenges.”

Sven Mikser (S&D, Estonia), co-rapporteur for the Committee on Foreign Affairs: “This Facility underscores our commitment to Moldova’s EU accession journey and supports the country in undertaking necessary reforms to strengthen democratic institutions, enhance energy security, boost economic growth, and improve the lives of its citizens. Raising the grant component to 20.5% and the pre-financing rate to 18% secures €520 million in non-repayable support for Moldova and ensures rapid access to funding.”

Next steps

The provisional agreement will be submitted to Parliament’s plenary (March) and the Council for final approval.

Background

Between 2025 and 2027, the maximum resources to be made available to Moldova through the Facility will amount to €1.785 billion (in current prices). This includes up to €1.5 billion in concessional loans and €385 million in non-repayable financial support. Additionally, €135 million will be set aside to provision the loans.

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 facility is modelled after similar initiatives in other EU candidate regions, such as the Western Balkans Facility, representing a significant step forward in Moldova’s path toward EU membership.