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This is a historical view (2022/03/16)

Changes: 2023/08/03procedure.final, events.docs, events, procedure.instrument, docs, 2022/04/11procedure.stage_reached, events, 2022/04/08procedure.stage_reached, events, 2022/04/05procedure.stage_reached, events, 2022/04/04events.summary, docs, 2022/03/29procedure.stage_reached, docs, events, 2022/03/25events.summary, docs, forecasts, 2022/03/17procedure.stage_reached, docs, events, 2022/03/16procedure.Other_legal_basis, events, forecasts

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2021/0438(COD) Macro-financial assistance to Moldova
Next event: Indicative plenary sitting date 2022/03/23

Progress: Awaiting committee decision

RoleCommitteeRapporteurShadows
Lead INTA GREGOROVÁ Markéta (icon: Verts/ALE Verts/ALE)
Committee Opinion AFET
Committee Opinion BUDG
Lead committee dossier:
Legal Basis:
TFEU 212

Events

2022/03/23
   Indicative plenary sitting date
2022/03/14
   Vote scheduled in committee
2022/02/15
   EP - Committee draft report
Documents
PE704.923
2022/01/26
   EP - GREGOROVÁ Markéta (Verts/ALE) appointed as rapporteur in INTA
2022/01/20
   EP - Committee referral announced in Parliament, 1st reading
2022/01/04
   EC - Legislative proposal
Details

PURPOSE: to provide a further EUR 150 million in macro-financial assistance to Moldova.

PROPOSED ACT: Decision 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: the EU and the Republic of Moldova have developed a close political and economic relationship over the years. The last Association Agenda for 2017-2019 has been extended over the period of one year (due to the pandemic last year), whilst a new document is under preparation, covering the 2021-2027 period. Moldova's economic ties with the EU are also well developed. The EU continues to be Moldova’s largest trading partner, accounting for 52% of its total trade in 2020.

Moldova’s economy has been affected significantly by the 2020 recession caused by the COVID-19 pandemic, the protracted political stalemate in the country after the Presidential elections in November 2020, as well as the recent energy crisis. The situation contributed to Moldova’s sizable financing gap, deteriorating external position, and growing fiscal needs.

Following the election in July 2021, the new Moldovan government has demonstrated a strong commitment to further reforms, with an ambitious programme ‘Moldova in good times 2021-2025’, focusing on key policy areas including, among others, justice sector reforms, fight against corruption, good governance and the rule of law.

With the renewed reform-commitment and strong political will, the authorities have significantly accelerated on reform implementation, which has also allowed Moldova to successfully complete the COVID-19 macro-financial assistance operation.

In view of a worsening economic situation and outlook, Moldova requested a complementary macro-financial assistance from the Union in November 2021.

The proposed MFA would help Moldova cover part of its residual external financing needs, which are estimated at USD 480 million, in the context of the new IMF programme over the period of 2021-2025.

Given that Moldova is a country covered by the European Neighbourhood Policy, it should be considered to be eligible to receive macro-financial assistance from the Union.

CONTENT: the Union will provide macro-financial assistance of a maximum amount of EUR 150 million available to Moldova, with a view to supporting Moldova's economic stabilisation and a substantive reform agenda. Of that maximum amount, up to EUR 120 million will be provided in the form of loans and up to EUR 30 million in the form of grants . The loans will have a maximum average maturity of 15 years. Moreover, the assistance will contribute to covering Moldova's balance of payments needs as identified in the IMF programme.

The Commission is considering releasing the assistance in three instalments:

- the disbursement of the first instalment is expected to take place mid-2022;

- the second instalment could be disbursed in early 2023;

- the third tranche could follow later that year or in the first half of 2024, provided that the policy measures attached to each instalment have been implemented in a timely manner.

It should be noted that a pre-condition for granting the Union's macro-financial assistance will be that Moldova respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights.

The proposed MFA would be made available for two and a half years, starting from the first day after the entry into force of the Memorandum of Understanding. They Commission should regularly inform the European Parliament and the Council of developments relating to MFA.

Budgetary implications

The financial programming of the EUR 150 million assistance over the 2022-2024 period allows for a grant component of EUR 30 million to be financed from the available budget on budget line 14 20 03 01 ‘Macro-financial assistance (MFA) – grants’'. For the loan component of EUR 120 million, the required provisioning at a rate of 9% of the External Action Guarantee will be programmed under the Neighbourhood, Development and International Cooperation Instrument (NDICI), for a total amount of EUR 10.8 million (budget line 14 02 01 70 ‘NDICI – Provisioning of the Common Provisioning Fund’).

Documents
EUR-Lex
COM(2022)0004
2022/01/04
   EC - Document attached to the procedure
Documents
EUR-Lex
SWD(2022)0001

Documents

  • Committee draft report: PE704.923
  • Legislative proposal: EUR-Lex
  • Legislative proposal: COM(2022)0004
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2022)0001
  • Legislative proposal: EUR-Lex COM(2022)0004
  • Document attached to the procedure: EUR-Lex SWD(2022)0001
  • Committee draft report: PE704.923

Activities

History

(these mark the time of scraping, not the official date of the change)

2022-03-16Show (3) Changes | Timetravel
events/1
date
2022-03-14T00:00:00
type
Vote in committee, 1st reading
body
EP
forecasts/0
date
2022-03-14T00:00:00
title
Vote scheduled in committee
procedure/Other legal basis
Rules of Procedure EP 159
2022-02-25Show (1) Changes | Timetravel
forecasts/1/date
Old
2022-04-04T00:00:00
New
2022-03-23T00:00:00
2022-02-22Show (2) Changes | Timetravel
committees/1
type
Committee Opinion
body
EP
committee_full
Foreign Affairs
committee
AFET
associated
False
opinion
False
committees/1
type
Committee Opinion
body
EP
committee_full
Foreign Affairs
committee
AFET
associated
False
rapporteur
name: TUDORACHE Dragoş date: 2022-01-25T00:00:00 group: Renew Europe group abbr: Renew
2022-02-18Show (1) Changes | Timetravel
docs/2/docs/0/url
https://www.europarl.europa.eu/doceo/document/INTA-PR-704923_EN.html
2022-02-17Show (4) Changes | Timetravel
committees/0/rapporteur
  • name: GREGOROVÁ Markéta date: 2022-01-26T00:00:00 group: Group of the Greens/European Free Alliance abbr: Verts/ALE
committees/2
type
Committee Opinion
body
EP
committee_full
Budgets
committee
BUDG
associated
False
opinion
False
committees/2
type
Committee Opinion
body
EP
committee_full
Budgets
committee
BUDG
associated
False
rapporteur
name: MUREŞAN Siegfried date: 2022-01-13T00:00:00 group: Group of European People's Party abbr: EPP
docs/2/date
Old
2022-02-09T00:00:00
New
2022-02-15T00:00:00
2022-02-12Show (1) Changes | Timetravel
forecasts/1
date
2022-04-04T00:00:00
title
Indicative plenary sitting date
2022-02-11Show (1) Changes | Timetravel
forecasts
  • date: 2022-03-14T00:00:00 title: Vote scheduled in committee
2022-02-10Show (1) Changes | Timetravel
docs/2
date
2022-02-09T00:00:00
docs
title: PE704.923
type
Committee draft report
body
EP
2022-02-03Show (1) Changes | Timetravel
committees/2/rapporteur
  • name: MUREŞAN Siegfried date: 2022-01-13T00:00:00 group: Group of European People's Party abbr: EPP
2022-01-28Show (2) Changes | Timetravel
commission
  • body: EC dg: Economic and Financial Affairs commissioner: GENTILONI Paolo
committees/1/rapporteur
  • name: TUDORACHE Dragoş date: 2022-01-25T00:00:00 group: Renew Europe group abbr: Renew
2022-01-26Show (3) Changes | Timetravel
events
  • date: 2022-01-20T00:00:00 type: Committee referral announced in Parliament, 1st reading body: EP
procedure/dossier_of_the_committee
  • INTA/9/08069
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
2022-01-21Show (1) Changes
docs/0/summary
  • PURPOSE: to provide a further EUR 150 million in macro-financial assistance to Moldova.
  • PROPOSED ACT: Decision 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: the EU and the Republic of Moldova have developed a close political and economic relationship over the years. The last Association Agenda for 2017-2019 has been extended over the period of one year (due to the pandemic last year), whilst a new document is under preparation, covering the 2021-2027 period. Moldova's economic ties with the EU are also well developed. The EU continues to be Moldova’s largest trading partner, accounting for 52% of its total trade in 2020.
  • Moldova’s economy has been affected significantly by the 2020 recession caused by the COVID-19 pandemic, the protracted political stalemate in the country after the Presidential elections in November 2020, as well as the recent energy crisis. The situation contributed to Moldova’s sizable financing gap, deteriorating external position, and growing fiscal needs.
  • Following the election in July 2021, the new Moldovan government has demonstrated a strong commitment to further reforms, with an ambitious programme ‘Moldova in good times 2021-2025’, focusing on key policy areas including, among others, justice sector reforms, fight against corruption, good governance and the rule of law.
  • With the renewed reform-commitment and strong political will, the authorities have significantly accelerated on reform implementation, which has also allowed Moldova to successfully complete the COVID-19 macro-financial assistance operation.
  • In view of a worsening economic situation and outlook, Moldova requested a complementary macro-financial assistance from the Union in November 2021.
  • The proposed MFA would help Moldova cover part of its residual external financing needs, which are estimated at USD 480 million, in the context of the new IMF programme over the period of 2021-2025.
  • Given that Moldova is a country covered by the European Neighbourhood Policy, it should be considered to be eligible to receive macro-financial assistance from the Union.
  • CONTENT: the Union will provide macro-financial assistance of a maximum amount of EUR 150 million available to Moldova, with a view to supporting Moldova's economic stabilisation and a substantive reform agenda. Of that maximum amount, up to EUR 120 million will be provided in the form of loans and up to EUR 30 million in the form of grants . The loans will have a maximum average maturity of 15 years. Moreover, the assistance will contribute to covering Moldova's balance of payments needs as identified in the IMF programme.
  • The Commission is considering releasing the assistance in three instalments:
  • - the disbursement of the first instalment is expected to take place mid-2022;
  • - the second instalment could be disbursed in early 2023;
  • - the third tranche could follow later that year or in the first half of 2024, provided that the policy measures attached to each instalment have been implemented in a timely manner.
  • It should be noted that a pre-condition for granting the Union's macro-financial assistance will be that Moldova respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights.
  • The proposed MFA would be made available for two and a half years, starting from the first day after the entry into force of the Memorandum of Understanding. They Commission should regularly inform the European Parliament and the Council of developments relating to MFA.
  • Budgetary implications
  • The financial programming of the EUR 150 million assistance over the 2022-2024 period allows for a grant component of EUR 30 million to be financed from the available budget on budget line 14 20 03 01 ‘Macro-financial assistance (MFA) – grants’'. For the loan component of EUR 120 million, the required provisioning at a rate of 9% of the External Action Guarantee will be programmed under the Neighbourhood, Development and International Cooperation Instrument (NDICI), for a total amount of EUR 10.8 million (budget line 14 02 01 70 ‘NDICI – Provisioning of the Common Provisioning Fund’).
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