Today, the European Commission has approved a €1.8 billion Growth Plan for the Republic of Moldova, effective from 2025 to 2027. This plan includes a Reform and Growth Facility and marks the EU’s most significant financial support package since Moldova gained independence. The plan aims to strengthen Moldova’s economy, accelerate reforms to bring the country closer to EU membership and provide substantial financial assistance.
The Moldova Growth Plan is structured around three pillars:
1. Increasing financial assistance over the next three years through a dedicated Reform and Growth Facility for Moldova. This facility will support various projects, such as constructing new roads, bridges, and rail infrastructure, including the Chisinau ring road, the Odesa-Chisinau-Iasi connection, and bridges over the Prut River. Additionally, it will contribute to energy security by completing a new electricity powerline and initiating the construction of two more, linking Moldova to the EU electricity grid. The plan also includes the construction of two well-equipped hospitals in Cahul and Balti and improving access to financing and support for 25,000 businesses, including small family enterprises.
2. The Moldova Growth Plan aims to enhance Moldova’s access to the European Union’s single market through immediate steps in five key areas. These steps include meeting the required standards for free movement of goods, integration in supply chains, facilitation of trade and transport connections, integration into the EU energy market and decarbonisation, integration into the Digital Market, and access to the Single Euro Payments Area (SEPA).
3. The plan supports Moldova’s socio-economic and fundamental reforms, focusing on economic competitiveness, resilience, governance, social capital, and the green transition. These reforms are expected to attract foreign investment, improve the business environment, support small and medium-sized enterprises, enhance skills and qualifications, strengthen trade and exports, and boost economic growth, leading to increased economic convergence with the EU. Payments will be made upon the delivery of the pre-agreed reforms.
Economic convergence is crucial for preparing candidate countries for EU accession and for joining the Single Market. Integration with the EU’s single market has been the primary driver of economic growth for all countries that have previously joined the EU.
“Europe stands firmly by Moldova’s side – today and every step of the way on the path to our Union. We can start bringing the Moldovan economy closer to ours already,” the European Commission President Ursula von der Leyen said.
“Today, I’m in Chișinău to present a support package with the potential of doubling the size of the country’s economy in a decade. To do so, we invest in jobs, growth, services and infrastructure – from new hospitals in Balti and Cahul to the road from the capital to Odesa. We open the doors to our Single Market to Moldovan companies. And we support Moldova’s reform efforts.”
The European Parliament and the Council will examine the European Commission’s proposal for the Growth Facility for Moldova. Once adopted, Moldova will be invited to submit its Reform Agenda outlining the critical socio-economic and fundamental reforms it intends to undertake to accelerate growth and convergence with the EU.
