Next event: Vote scheduled in committee, 1st reading 2025/01/30
Progress: Awaiting committee decision
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Joint Responsible Committee | [] | MIKSER Sven ( S&D) | |
Joint Responsible Committee | [] | MUREŞAN Siegfried ( EPP) | |
Joint Responsible Committee | [] | HALICKI Andrzej ( EPP), NEGRESCU Victor ( S&D), STÖTELER Sebastiaan ( PfE), TERHEŞ Cristian ( ECR), ZĪLE Roberts ( ECR), VAN BRUG Anouk ( Renew), BARNA Dan ( Renew), VAN LANSCHOT Reinier ( Greens/EFA), TEGETHOFF Kai ( Greens/EFA), SJÖSTEDT Jonas ( The Left), SELL Alexander ( ESN) | |
Committee Opinion | INTA | ZDROJEWSKI Bogdan Andrzej ( EPP) | |
Committee Opinion | CONT | SJÖSTEDT Jonas ( The Left) |
Lead committee dossier:
Subjects
Events
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.
There is a need to bring forward some of the advantages of Union membership before accession. Economic convergence is at the heart of those benefits. Currently, the convergence of Moldova in terms of GDP per capita expressed in purchasing power standards remains low at 29% of the Union average and is not progressing fast enough.
CONTENT: the Commission drafted this proposal to establish the Reform and Growth Facility for Moldova. The proposal lays down the Facility’s objectives, its financing, the budget for the period 2025-2027, the forms of Union funding under it and the rules for providing such funding.
The general objectives of the Facility should be to accelerate regional economic integration, progressive integration with the Union single market, socio-economic convergence of Western Balkans economies and alignment with Union laws, rules, standards, policies and practices with a view to Union membership. The Facility should also help accelerate reforms related to fundamentals of the enlargement process, including rule of law, public procurement and State aid control, public finance management and fight against corruption. These objectives should be pursued in a mutually reinforcing manner.
Reform agendas
Moldova will submit a reform agenda which should contain reforms and investment areas to be financed by the Facility, and the systems to prevent, detect and correct irregularities, fraud, corruption and conflicts of interests, when using the funds provided under the Facility.
Funding
In 2025-2027, the maximum resources made available to Moldova through the Facility will be EUR 1 785 million (in current prices). This amount combines up to EUR 1 500 million in concessional loans and EUR 285 million of non-repayable financial support. On top of the maximum amount available for disbursements to Moldova, referred to above, EUR 135 million will be set aside in the Common Provisioning Fund to provision the loans.
The non-repayable support will cover support provided by the Union for projects approved under the Neighbourhood Investment Platform (NIP), as well as complementary support. This complementary support will include support to civil society organisations and technical assistance, which will facilitate the implementation of reforms and Moldova’s path to EU accession.
In addition, the Facility is expected to mobilise up to EUR 2 500 million of new investments from the international financial institutions and the private sector.
The implementation of the Growth Plan for Moldova requires the appropriate funding under a dedicated new financing instrument, the Facility to assist the country in implementing reforms for sustainable economic growth and advance on the fundamentals.
To achieve the goals of the Growth Plan for Moldova, emphasis with respect to investment areas should be placed on sectors that are likely to function as key multipliers for social and economic development: connectivity, including sustainable transport, decarbonisation, energy, green and digital transitions, as well as education, labour market participation and skills development, with a particular focus on youth.
Release of funds
Payments will take place on a semi-annual basis, following Moldova’s submission of a request to release the funds after having satisfactorily met the relevant payment conditions in the form of qualitative and quantitative steps to be undertaken. In case of a negative assessment by the Commission, a part of the amount corresponding to the payment conditions that have not been met will be withheld. The withheld funds can only be released once Moldova has duly justified, as part of the subsequent request to release funds, that it has taken the necessary measures to ensure the relevant payment conditions have been satisfactorily met.
Legislative proposal
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.
There is a need to bring forward some of the advantages of Union membership before accession. Economic convergence is at the heart of those benefits. Currently, the convergence of Moldova in terms of GDP per capita expressed in purchasing power standards remains low at 29% of the Union average and is not progressing fast enough.
CONTENT: the Commission drafted this proposal to establish the Reform and Growth Facility for Moldova. The proposal lays down the Facility’s objectives, its financing, the budget for the period 2025-2027, the forms of Union funding under it and the rules for providing such funding.
The general objectives of the Facility should be to accelerate regional economic integration, progressive integration with the Union single market, socio-economic convergence of Western Balkans economies and alignment with Union laws, rules, standards, policies and practices with a view to Union membership. The Facility should also help accelerate reforms related to fundamentals of the enlargement process, including rule of law, public procurement and State aid control, public finance management and fight against corruption. These objectives should be pursued in a mutually reinforcing manner.
Reform agendas
Moldova will submit a reform agenda which should contain reforms and investment areas to be financed by the Facility, and the systems to prevent, detect and correct irregularities, fraud, corruption and conflicts of interests, when using the funds provided under the Facility.
Funding
In 2025-2027, the maximum resources made available to Moldova through the Facility will be EUR 1 785 million (in current prices). This amount combines up to EUR 1 500 million in concessional loans and EUR 285 million of non-repayable financial support. On top of the maximum amount available for disbursements to Moldova, referred to above, EUR 135 million will be set aside in the Common Provisioning Fund to provision the loans.
The non-repayable support will cover support provided by the Union for projects approved under the Neighbourhood Investment Platform (NIP), as well as complementary support. This complementary support will include support to civil society organisations and technical assistance, which will facilitate the implementation of reforms and Moldova’s path to EU accession.
In addition, the Facility is expected to mobilise up to EUR 2 500 million of new investments from the international financial institutions and the private sector.
The implementation of the Growth Plan for Moldova requires the appropriate funding under a dedicated new financing instrument, the Facility to assist the country in implementing reforms for sustainable economic growth and advance on the fundamentals.
To achieve the goals of the Growth Plan for Moldova, emphasis with respect to investment areas should be placed on sectors that are likely to function as key multipliers for social and economic development: connectivity, including sustainable transport, decarbonisation, energy, green and digital transitions, as well as education, labour market participation and skills development, with a particular focus on youth.
Release of funds
Payments will take place on a semi-annual basis, following Moldova’s submission of a request to release the funds after having satisfactorily met the relevant payment conditions in the form of qualitative and quantitative steps to be undertaken. In case of a negative assessment by the Commission, a part of the amount corresponding to the payment conditions that have not been met will be withheld. The withheld funds can only be released once Moldova has duly justified, as part of the subsequent request to release funds, that it has taken the necessary measures to ensure the relevant payment conditions have been satisfactorily met.
Legislative proposal
Documents
- Amendments tabled in committee: PE766.791
- Committee draft report: PE766.648
- Legislative proposal: COM(2024)0469
- Legislative proposal: Go to the pageEur-Lex
- Legislative proposal published: COM(2024)0469
- Legislative proposal published: Go to the page Eur-Lex
- Committee draft report: PE766.648
- Amendments tabled in committee: PE766.791
- Legislative proposal: COM(2024)0469 Go to the pageEur-Lex
Amendments | Dossier |
25 |
2024/0258(COD)
2024/12/06
INTA
25 amendments...
Amendment 11 #
Proposal for a regulation Recital 13 (13) In addition to boosting socio- economic convergence, the Facility should also help accelerate reforms related to the fundamentals of the enlargement process including rule of law, fundamental rights, inter alia, the rights of refugees, of persons belonging to minorities, including national minorities and Roma, as well as the rights of lesbian, gay, bisexual, transgender and intersex (LGBTI) persons as well as of vulnerable groups. It should also improve the functioning of democratic institutions and public administrations; public procurement, state aid control and public finance management; the fight against all forms of corruption and organised crime; quality education and training as well as employment policies; the country’s green transition, climate and environmental objectives and shifting towards a climate neutral, biodiverse and sustainable economy.
Amendment 12 #
Proposal for a regulation Recital 13 a (new) (13a) Activities under the Facility should support the ongoing efforts of reducing income inequalities in order to foster social inclusion and sustainable long-term growth.
Amendment 13 #
Proposal for a regulation Recital 13 b (new) (13b) The implementation of this Regulation should be guided by, and advance, the respect for labour rights, such as minimum standards for labour laws, equality, health and safety at work and non-discrimination as well as the promotion of social protection and social dialogue, in order to further align them with Union rules and standards.
Amendment 14 #
Proposal for a regulation Recital 13 c (new) (13c) The Facility should not require the implementation of structural economic reforms such as privatization of public companies which would impede the access to essential services and therefore would be highly detrimental to Moldova’s population and its resilience.
Amendment 15 #
Proposal for a regulation Recital 23 (23) Activities under the Facility should support progress towards Union social, climate and environmental standards, and support progress towards the United Nations Sustainable Development Goals, reducing inequalities while decoupling economic growth from resource use, the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, the United Nations Convention on Biological Diversity and the United Nations Convention to Combat Desertification and should not contribute to environmental degradation or cause harm to the environment or climate. Measures funded under the Facility should be in line with Moldova’ Energy and Climate Plans, their Nationally Determined Contribution and ambition to reach climate neutrality by 2050. The Facility should contribute to the mitigation of climate change and to the ability to adapt to its adverse effects, and foster climate resilience. In particular, funding under the Facility should promote the transition towards a decarbonised, climate-neutral, climate-resilient and circular economy. The Facility should support boosting innovation for SMEs and social economy actors, as well as technology transfer in support of green and digital transitions. Activities under the Facility should inlclude policies to reduce youth unemployment and brain drain. Activities under the Facility should foresee environmental impact assessment and public consultation projects affecting protected areas, biodiversity and environmental protection, taking into acount local community views.
Amendment 16 #
Proposal for a regulation Recital 38 (38) The Reform Agenda should include targeted reform measures and priority investment areas, along with payment conditions in the form of measurable qualitative and quantitative steps that indicate satisfactory progress or completion of those measures, and a timetable for the implementation of those measures. The Reform Agenda should also include a preliminary list of planned investment projects intended for implementation under NIP. Those steps should be planned to be implemented for no later than 31 December 2027, although it should be possible for the overall completion of the measures, to which such steps refer, to extend beyond 2027 but not later than 31 December 2028. The Reform Agenda should include an explanation of Moldova’s system to effectively prevent, detect and correct irregularities, corruption, including high-level corruption, fraud and conflicts of interest, when using the funds provided under the Facility, and the arrangements to avoid double funding from the Facility and other Union programmes as well as other donors. The Reform Agenda should be designed and implemented with the involvement of all relevant stakeholders in the country.
Amendment 17 #
Proposal for a regulation Recital 43 (43) The Commission should assess the Reform Agenda based on the list of criteria set out in this Regulation. In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to approve the Reform Agenda. The Commission will duly take into account Council decision 2010/427/EU (11) and the role of the European External Action Service (EEAS), where appropriate. The assesment of the Reform Agenda should be carried out by the Commission, assisted by independent experts, including from civil society.
Amendment 18 #
Proposal for a regulation Article 1 – paragraph 2 2. The Regulation shall provide assistance to Moldova for the delivery of EU-related reforms, in particular inclusive and sustainable socio-economic reforms and reforms concerning fundamentals of the enlargement process, aligned with Union values, as well as investments to implement Moldova’s Reform Agenda aiming to contribute to fighting poverty, tackling unemployment and leading to quality job creation.
Amendment 19 #
Proposal for a regulation Article 3 – paragraph 1 – point b (b) support social and territorial cohesion as well as progressive integration of Moldova into the Union single market;
Amendment 20 #
Proposal for a regulation Article 3 – paragraph 1 – point c (c) accelerate the socio-economic convergence of Moldova’s economy with the Union without requiring the implementation of structural economic reforms such as privatization of public companies;
Amendment 21 #
Proposal for a regulation Article 3 – paragraph 1 – point c (c) accelerate the socio-economic convergence of Moldova’s economy with the Union and in particular the decarbonisation of its economy;
Amendment 22 #
Proposal for a regulation Article 3 – paragraph 2 – point a (a) further strengthen the fundamentals of the enlargement process, including the rule of law and fundamental rights, the functioning of democratic institutions, including de-polarisation, public administration and fulfil the economic criteria; this includes promoting an independent judiciary, reinforcing security and stability, strengthening the fight against fraud and all forms of corruption, including high-level corruption and nepotism, organised crime, cross-border crime and money laundering as well as terrorism financing, tax evasion and tax fraud, tax avoidance; increasing compliance with international law; strengthening freedom and independence of media and academic freedom; combating hate speech; enabling an environment for civil society, fostering social dialogue and the protection of labour rights; reducing income inequalities; preventing social dumping; promoting gender equality, gender mainstreaming and the empowerment of women and girls, non-
Amendment 23 #
Proposal for a regulation Article 3 – paragraph 2 – point a (a) further strengthen the fundamentals of the enlargement process, including the rule of law and fundamental rights, the functioning of democratic institutions, including de-polarisation, public administration and fulfil the economic criteria; this includes promoting an independent judiciary, reinforcing security and stability, strengthening the fight against fraud and all forms of corruption, including high-level corruption and
Amendment 24 #
Proposal for a regulation Article 3 – paragraph 2 – point f (f) accelerate the transition of Moldova to sustainable, equitable, climate-neutral and inclusive economy, that is capable of withstanding competitive market pressures of the Union single market, and to a stable investment environment and reduce its strategic dependency;
Amendment 25 #
Proposal for a regulation Article 3 – paragraph 2 – point g (g) foster economic integration of Moldova with the Union single market, in particular through
Amendment 26 #
Proposal for a regulation Article 3 – paragraph 2 – point i (i) accelerate the inclusive and sustainable green transition to climate neutrality by 2050 at the latest, in accordance with the Paris Agreement and the Green Deal and covering all economic sectors, particularly energy efficiency and renewable energy, including the transition towards a de-carbonised, climate-neutral, climate-
Amendment 27 #
Proposal for a regulation Article 3 – paragraph 2 – point j (j) promote the digital transformation and digital skills as an enabler of sustainable development and inclusive growth by investing in building specific public competencies and avoiding handing over the implementation of digitally intensive sectors to private companies from outside the Union;
Amendment 28 #
Proposal for a regulation Article 3 – paragraph 2 – point k (k) boost innovation, research, and cooperation between academic institutions and industry in support of the green and digital transitions
Amendment 29 #
Proposal for a regulation Article 3 – paragraph 2 – point l (l) boost quality education, training, reskilling and upskilling at all levels, with a particular focus on youth, including tackling youth unemployment, preventing brain drain and supporting vulnerable communities, including refugees, and support employment policies, including tackling gender pay gap and labour rights, in line with the European Pillar of Social Rights, and fighting poverty.
Amendment 30 #
Proposal for a regulation Article 4 – paragraph 2 2. Cooperation under the Facility shall be needs-based and shall promote the development effectiveness principles, namely ownership of development priorities by Moldova a focus on clear conditionality and tangible results, inclusive partnerships and participatory policy-making that includes civil society and local authorities, transparency and mutual accountability. That cooperation shall be based on an effective and efficient allocation and use of resources.
Amendment 31 #
Proposal for a regulation Article 4 – paragraph 6 6. Activities under the Facility shall mainstream and promote democracy, human and labour rights and gender equality, progressively align with the social, climate and environmental standards of the Union, mainstream climate change mitigation and adaptation, where relevant, disaster risk reduction, environmental protection and biodiversity conservation, including through, where appropriate, environmental impact assessments, and shall support progress towards the Sustainable Development Goals, promoting integrated actions that can create co-benefits and meet multiple objectives in a coherent way. Those activities shall avoid stranded assets, and shall be guided by the principles of ‘do no significant harm’ and of ‘leaving no one behind’, as well as by the sustainability mainstreaming approach underpinning the European Green Deal. At least 37 % of the non-repayable financial support, including provisioning, provided to investment projects approved under the Neighbourhood Investment Platform (NIP) should account to climate objectives.
Amendment 32 #
Proposal for a regulation Article 9 – paragraph 2 2. The Reform Agenda shall provide an overarching framework to achieve the general and specific objectives set out in Article 3 and general principles set out in Article 4, setting out the reforms to be undertaken by Moldova, as well as investment areas. The Reform Agenda shall comprise measures for the implementation of reforms through a comprehensive and coherent package, including ensuring adherence to the ‘do no significant harm’ principle. In the areas of the fundamentals of the enlargement process, including the rule of law, the fight against corruption, including high-level corruption, fundamental rights and the freedom of expression, and shifting towards a climate neutral, biodiverse and sustainable economy, the Reform Agendas shall reflect the assessments in the enlargement policy framework.
Amendment 33 #
Proposal for a regulation Article 9 – paragraph 5 5. The Reform Agenda shall respect the general principles set out in Article 4 and shall be drafted in open and transparent manner in consultation with all stakeholders.
Amendment 34 #
Proposal for a regulation Article 11 – paragraph 1 – point c (c) an explanation of how the measures are expected to further strengthen the fundamentals of the enlargement process as referred to in Article 3(2), point (n), including the rule of law, fundamental rights, a
Amendment 35 #
Proposal for a regulation Article 11 – paragraph 1 – point g (g) an explanation of the extent to which the measures are expected to contribute to education, training and employment
source: 766.791
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History
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