BETA


2024/0258(COD) Establishing the Reform and Growth Facility for Moldova
Next event: Vote scheduled in committee, 1st reading 2025/01/30

Progress: Awaiting committee decision

RoleCommitteeRapporteurShadows
Joint Responsible Committee [] MIKSER Sven (icon: S&D S&D)
Joint Responsible Committee [] MUREŞAN Siegfried (icon: EPP EPP)
Joint Responsible Committee [] HALICKI Andrzej (icon: EPP EPP), NEGRESCU Victor (icon: S&D S&D), STÖTELER Sebastiaan (icon: PfE PfE), TERHEŞ Cristian (icon: ECR ECR), ZĪLE Roberts (icon: ECR ECR), VAN BRUG Anouk (icon: Renew Renew), BARNA Dan (icon: Renew Renew), VAN LANSCHOT Reinier (icon: Greens/EFA Greens/EFA), TEGETHOFF Kai (icon: Greens/EFA Greens/EFA), SJÖSTEDT Jonas (icon: The Left The Left), SELL Alexander (icon: ESN ESN)
Committee Opinion INTA ZDROJEWSKI Bogdan Andrzej (icon: EPP EPP)
Committee Opinion CONT SJÖSTEDT Jonas (icon: The Left The Left)
Lead committee dossier:

Events

2025/01/30
   Vote scheduled in committee, 1st reading
2024/12/16
   EP - Committee referral announced in Parliament, 1st reading
2024/12/16
   EP - Referral to joint committee announced in Parliament
2024/12/06
   European Parliament - Amendments tabled in committee
Documents
2024/12/04
   European Parliament - Committee draft report
Documents
2024/11/28
   EP - SJÖSTEDT Jonas (The Left) appointed as rapporteur in CONT
2024/11/18
   EP - MIKSER Sven (S&D) appointed as rapporteur in []
2024/11/18
   EP - MUREŞAN Siegfried (EPP) appointed as rapporteur in []
2024/11/18
   EP - ZDROJEWSKI Bogdan Andrzej (EPP) appointed as rapporteur in INTA
2024/10/09
   European Commission - Legislative proposal
Details

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

2024/10/09
   EC - Legislative proposal published
Details

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

AmendmentsDossier
25 2024/0258(COD)
2024/12/06 INTA 25 amendments...
source: 766.791

History

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

commission/0/commissioner
Old
VÁRHELYI Olivér
New
KOS Marta
committees
  • type: Joint Responsible Committee body: EP committee_full: committee: associated: False rapporteur: name: MIKSER Sven date: 2024-11-18T00:00:00 group: Progressive Alliance of Socialists and Democrats abbr: S&D
  • type: Joint Responsible Committee body: EP committee_full: committee: associated: False rapporteur: name: MUREŞAN Siegfried date: 2024-11-18T00:00:00 group: European People's Party abbr: EPP
  • type: Joint Responsible Committee body: EP committee_full: committee: associated: False shadows: name: HALICKI Andrzej group: European People's Party abbr: EPP name: NEGRESCU Victor group: Progressive Alliance of Socialists and Democrats abbr: S&D name: STÖTELER Sebastiaan group: Patriots for Europe abbr: PfE name: TERHEŞ Cristian group: European Conservatives and Reformists Group abbr: ECR name: ZĪLE Roberts group: European Conservatives and Reformists Group abbr: ECR name: VAN BRUG Anouk group: RE abbr: Renew name: BARNA Dan group: RE abbr: Renew name: VAN LANSCHOT Reinier group: Verts/ALE abbr: Greens/EFA name: TEGETHOFF Kai group: Verts/ALE abbr: Greens/EFA name: SJÖSTEDT Jonas group: GUE/NGL abbr: The Left name: SELL Alexander group: Europe for Sovereign Nations abbr: ESN
  • type: Committee Opinion body: EP associated: False committee_full: International Trade committee: INTA rapporteur: name: ZDROJEWSKI Bogdan Andrzej date: 2024-11-18T00:00:00 group: European People's Party abbr: EPP
  • type: Committee Opinion body: EP associated: False committee_full: Budgetary Control committee: CONT rapporteur: name: SJÖSTEDT Jonas date: 2024-11-28T00:00:00 group: GUE/NGL abbr: The Left
docs
  • date: 2024-12-04T00:00:00 docs: url: https://www.europarl.europa.eu/doceo/document/CJ15-PR-766648_EN.html title: PE766.648 type: Committee draft report body: European Parliament
  • date: 2024-12-06T00:00:00 docs: url: https://www.europarl.europa.eu/doceo/document/INTA-AM-766791_EN.html title: PE766.791 type: Amendments tabled in committee body: European Parliament
  • date: 2024-10-09T00:00:00 docs: url: https://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2024/0469/COM_COM(2024)0469_EN.docx title: COM(2024)0469 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2024&nu_doc=0469 title: Go to the pageEur-Lex summary: 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 type: Legislative proposal body: European Commission
events/0
date
2024-10-09T00:00:00
type
Legislative proposal published
body
EC
docs
summary
events/0
date
2024-10-09T00:00:00
type
Legislative proposal published
body
EC
docs
summary
events/1
date
2024-12-16T00:00:00
type
Committee referral announced in Parliament, 1st reading
body
EP
events/2
date
2024-12-16T00:00:00
type
Referral to joint committee announced in Parliament
body
EP
forecasts
  • date: 2025-01-30T00:00:00 title: Vote scheduled in committee, 1st reading
procedure/dossier_of_the_committee
CJ15/10/01177
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision