1. This Regulation establishes the Reform and Growth Facility for the Republic of Moldova (Moldova) for the period 2025-2027 (the ‘Facility’).
2. The Facility shall provide assistance to Moldova for the delivery of Union-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.
3. Regulation (EU) 2021/947 shall apply to the implementation of the Facility, unless specified otherwise in this Regulation.
For the purposes of this Regulation, the following definitions apply:
(1)
‘Facility Agreement’ means an arrangement concluded between the Commission and Moldova laying down the principles for financial cooperation between Moldova and the Commission under this Regulation; this arrangement constitutes a financing agreement within the meaning of Article 114(2) of the Financial Regulation;
(2)
‘enlargement policy framework’ means the overall policy framework for the implementation of this Regulation as defined by the European Council and the Council, and includes the revised enlargement methodology, agreements that establish a legally binding relationship with Moldova, the negotiating frameworks governing accession negotiations with candidate countries, where applicable, as well as resolutions of the European Parliament, relevant communications from the Commission, including, where applicable, on the rule of law, and joint communications from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy;
(3)
‘loan agreement’ means the agreement concluded between the Union and Moldova laying down the terms of the loan support under the Facility;
(4)
‘Reform Agenda’ means a comprehensive, coherent and prioritised set of targeted reforms and priority investment areas in Moldova, including payment conditions that indicate satisfactory progress or completion of related measures, and an indicative timetable for their implementation;
(5)
‘measures’ means reforms and investments as set out in the Reform Agenda under Chapter III;
(6)
‘payment conditions’ means conditions for the release of funds that take the form of observable and measurable qualitative or quantitative steps to be implemented by Moldova, as set out in the Reform Agenda under Chapter III;
(7)
‘blending operation’ means an operation supported by the Union budget that combines non-repayable forms of support from the Union budget with repayable forms of support from development or other public financial institutions, including export credit agencies, or from commercial finance institutions and investors;
(8)
‘final recipient’ means a person or entity receiving funding under the Facility; for the part of the funding that is made available as financial assistance, final recipient means the treasury of Moldova; for the part of the funding that is made available through the Neighbourhood Investment Platform, final recipient means the contractor or sub-contractor implementing the investment project;
(9)
‘do no significant harm’ means not supporting or carrying out economic activities that do significant harm to any environmental objective, where relevant, within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council ( 13 ) ;
(10)
‘the Neighbourhood Investment Platform’ is one of the regional investment platforms referred to under Article 32 of Regulation (EU) 2021/947.
1. The general objectives of the Facility shall be to:
(a)
support the enlargement process by accelerating the alignment with Union values, laws, rules, standards, policies and practices (‘ acquis ’) through the adoption and implementation of reforms with a view to future Union membership;
(b)
support the progressive integration of Moldova into the Union single market;
(c)
accelerate the socio-economic convergence of Moldova’s economy with the Union;
(d)
foster good neighbourly relations with Member States and Union enlargement partners, as well as people-to-people contact.
2. The specific objectives of the Facility shall be to:
(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, oligarchic influence and nepotism, organised crime, cross-border crime and money laundering as well as terrorism financing, tax evasion, tax fraud and 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; promoting gender equality, gender mainstreaming and the empowerment of women and girls, promoting children’s rights, non-discrimination and tolerance; ensuring and strengthening respect for the rights of refugees and persons belonging to minorities, including national minorities and Roma, as well as rights of LGBTI persons;
(b)
move towards the full alignment of Moldova with the Union CFSP, including with Union restrictive measures;
(c)
help mitigate challenges posed by Russia’s war of aggression against Ukraine and attempts to destabilise Moldova, fight disinformation, hybrid threats, and FIMI, in particular by Russia, against Moldova’s sovereignty, democratic processes and institutions, as well as against the Union and its values;
(d)
move towards harmonisation of visa policies with the Union;
(e)
reinforce the effectiveness of public administration, build capacities and invest in administrative staff in Moldova; ensure access to information, public scrutiny and the involvement of civil society in decision-making processes; support transparency, accountability, structural reforms and good governance at all levels, including as regards their powers of oversight and inquiry over the distribution of and access to public funds as well as in the areas of public financial management and public procurement and State aid control; support initiatives and bodies involved in supporting and enforcing international justice in Moldova;
(f)
accelerate the transition of Moldova to a sustainable, 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 by diversifying energy sources, including by improving interconnections with Member States and Union enlargement partners, in order to achieve energy security and independence;
(g)
foster economic integration of Moldova with the Union single market, in particular through increased trade and investment flows, and resilient value chains;
(h)
support enhanced integration with the Union single market through improved and sustainable connectivity in line with trans-European networks to reinforce good neighbourly relations, as well as people-to-people contact;
(i)
accelerate the inclusive and sustainable green transition to climate neutrality by 2050, in accordance with the Paris Agreement and the European Green Deal and covering all economic sectors, particularly agriculture and energy, including the transition towards a de-carbonised, climate-neutral, climate-resilient and circular economy, while ensuring that investments respect the ‘do no significant harm’ principle;
(j)
promote digital transformation and digital skills as a means of enabling sustainable development and inclusive growth;
(k)
boost innovation, research, and cooperation between academic institutions and industry in support of the green and digital transitions, promoting local industries with a particular emphasis on locally based micro, small and medium-sized enterprises and start-ups;
(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 labour rights, in line with the European Pillar of Social Rights, and fighting poverty;
(m)
support activities to improve Moldovan citizens’ awareness of the benefits of the Union accession process, including through communication campaigns.
1. Support from the Facility shall be managed by the Commission in a manner consistent with the key principles and objectives of economic reforms set out in the EU-Moldova Association Agreement and the Union enlargement policy.
2. Cooperation under the Facility shall be needs-based and shall promote the development effectiveness principles, namely ownership of development priorities by Moldova with a focus on clear conditionality and tangible results, inclusive partnerships with social partners and civil society organisations, as well as transparency and mutual accountability. That cooperation shall be based on an effective and efficient allocation and use of resources.
3. The provision of macro-financial assistance shall not fall within the scope of the Facility.
4. Support from the Facility shall be additional and complementary to the support provided under other Union programmes and instruments. Activities eligible for funding under this Regulation may receive support from other Union programmes and instruments, provided that such support does not cover the same cost and that appropriate oversight and budget control is ensured. The Commission shall ensure complementarities and synergies between the Facility and other Union programmes, with a view to avoiding the duplication of assistance and double funding.
5. In order to promote the complementarity, coherence and efficiency of their actions, the Commission and the Member States shall cooperate and shall strive to avoid the duplication of assistance and ensure synergies between assistance under this Regulation and other forms of assistance, including integrated financial packages composed of both export and development financing provided by the Union, Member States, third countries, multilateral and regional organisations and entities, such as international organisations and the relevant international financial institutions, agencies and non-Union donors, in line with the established principles for strengthening operational coordination in the field of external assistance, including through enhanced coordination with Member States at local level. Such coordination at local level shall involve regular and timely consultations and frequent exchanges of information throughout the implementation of the Facility.
6. Activities under the Facility shall mainstream and promote democracy, human 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 United Nations 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 shall be attributed to climate objectives.
7. Moldova and the Commission shall ensure that gender equality, gender mainstreaming and the integration of a gender perspective are taken into account and promoted throughout the preparation of the Reform Agenda and the implementation of the Facility. Moldova and the Commission shall take appropriate measures to prevent any discrimination based upon gender, racial or ethnic origin, religion or belief, disability, age or sexual orientation. The Commission shall report on those measures in the context of its regular reporting under the Gender Action Plans.
8. The Facility shall not support activities or measures which are incompatible with Moldova’s National Energy and Climate Plan, its Nationally Determined Contribution under the Paris Agreement or its ambition to reach climate-neutrality by 2050, or activities or measures that promote investments in fossil fuels or cause significant adverse effects on the environment, the climate or biodiversity, unless such activities or measures are strictly required to achieve the objectives of the Facility, in particular Article 3(2), point (c), while taking into account possible transitional arrangements and while pursuing a mid- to long-term energy strategy to ensure energy security. Those transitional arrangements shall be accompanied, where relevant, by appropriate measures to avoid, prevent or reduce and, if possible, offset those adverse effects.
9. In line with the principle of inclusive partnership, the Commission shall strive to ensure, as appropriate, democratic scrutiny in the form of consultation by Moldova’s government of the parliament of Moldova, local authorities, in accordance with Moldova’s national legal framework, and of relevant stakeholders, including social partners and civil society, as well as vulnerable groups, refugees, and all minorities and communities, as relevant, so as to allow them to participate in shaping the design and the implementation of activities eligible for funding under the Facility and in the related monitoring, scrutiny and evaluation processes, as relevant. That consultation shall seek to represent the pluralism of Moldova’s society. In addition, the Commission shall ensure that civil society in Moldova, including non-governmental organisations, is able to directly report any irregularities concerning funding or final recipients to the Commission via appropriate standing channels.
10. The Commission, in close cooperation with the Member States and Moldova, shall ensure the implementation of Union commitments to increased transparency and accountability in the delivery of support, including by promoting the implementation and reinforcement of internal control systems and anti-fraud policies. The Commission shall make information on the volume and allocation of support publicly available through the Facility scoreboard referred to in Article 24. Moldova shall publish up-to-date data on final recipients receiving Union funds for the implementation of reforms and investments under the Facility, as described in Article 20.
1. Preconditions for the support under the Facility shall be that Moldova upholds and respects effective democratic mechanisms, including a multi-party parliamentary system, free and fair elections, free, independent and pluralistic media, an independent judiciary and the rule of law, and guarantees respect for all human rights obligations, including the rights of persons belonging to minorities.
2. The Commission shall monitor the fulfilment of the preconditions set out in paragraph 1 before funds, including pre-financing, are released to Moldova under the Facility and throughout the period of the support provided under the Facility taking duly into account the enlargement policy framework. The Commission shall also take into account the relevant recommendations of international bodies, such as the Council of Europe and its Venice Commission, or the Office for Democratic Institutions and Human Rights of the Organization for Security and Co-operation in Europe (OSCE) in the monitoring process.
3. Where the Commission finds that some of the preconditions set out in paragraph 1 are not met, the Commission shall adopt a decision to that effect, and in particular, withhold the release of funds referred to in Article 19, irrespective of whether the payment conditions referred to in Article 10 are fulfilled. The Commission shall inform the European Parliament and the Council of its decision.
