Trade MEPs agreed on Thursday to top up macro-financial aid for Moldova by up to €145 million to help it cover part of its additional funding needs in 2023.
The Committee on International Trade endorsed the Commission’s proposal to give the government assistance to stabilise the country’s economic situation by 35 votes to 1, with no abstentions. The report was drafted by Markéta Gregorová (Greens/EFA, CZ).
The support, €45 million in grants and up to €100 million in loans, will be disbursed in two additional instalments planned for the third and fourth quarters of 2023, provided policy conditions are fulfilled. These conditions are for example linked to reforms of the justice system, the rule of law and the fight against corruption, and good progress in implementing a macroeconomic programme set up by the International Monetary Fund (IMF).
Russia’s invasion of Ukraine had a strong primary and secondary negative impact on the Moldovan economy, MEPs say. As a result, the Moldovan economy contracted, and the uncertain economic climate has negatively affected investment and trade in general. The energy crisis, which intensified in 2022, combined with a fall in household consumption and investments, has put additional pressure on Moldova’s public finances. In addition, the sharp rise in energy prices pushes for high inflation.
The EU’s relations with the Republic of Moldova are based on the EU-Moldova Association Agreement including its Deep and Comprehensive Free Trade Area, providing for stronger political association and economic integration between the EU and Moldova. The European Council on 23 June 2022 granted Moldova EU candidate country status.
Moldova benefits from an ongoing MFA operation which entered into force on 18 July 2022.
The draft report is scheduled to be voted by all MEPs during the 8-11 May plenary session. The measure will apply on the day following its publication in the Official Journal of the EU.
