Submission of the Reform Agenda
1. In order to receive any support under this Regulation, Moldova shall submit to the Commission a Reform Agenda for 2025-2027 based on the key principles and objectives of socio-economic and fundamental reforms set out in the EU-Moldova Association Agreement, agreed under the European Neighbourhood Policy, and the enlargement policy framework.
2. The Reform Agenda shall provide an overarching framework to achieve the general and specific objectives set out in Article 3, 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. 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, the Reform Agenda shall reflect the assessments in the enlargement policy framework.
3. The Reform Agenda shall be consistent with the latest macroeconomic and fiscal policy framework submitted to the Commission in the context of the economic and financial dialogue with the Union.
4. The Reform Agenda shall be consistent with and support the reform priorities identified in the context of Moldova’s accession path, and in other relevant documents, the Nationally Determined Contribution under the Paris Agreement and the ambition to reach climate neutrality by 2050.
5. The Reform Agenda shall respect the general principles set out in Article 4.
6. The Reform Agenda shall be prepared in an inclusive and transparent manner, in consultation with social partners and civil society organisations.
7. The Commission shall invite Moldova to submit its Reform Agenda by 24 June 2025. The Commission shall transmit Moldova’s Reform Agenda to the European Parliament and the Council as soon as it is received.
Principles for financing under the Reform Agenda
1. The Facility shall provide incentives for the implementation of the Reform Agenda by setting payment conditions on the release of funds. Those payment conditions shall apply to funds under Article 6(1), with the exception of complementary support including support to civil society organisations and technical assistance. Those payment conditions shall take the form of measurable qualitative or quantitative steps. Such steps shall reflect progress on specific socio-economic reforms and on the fundamentals of the enlargement process linked to the achievement of the objectives of the Facility set out in Article 3, consistent with the enlargement policy framework.
2. The fulfilment of the payment conditions referred to in paragraph 1 shall trigger full or partial release of funds, depending on the degree of their completion.
3. Macro financial stability, sound public financial management, transparency and oversight of the budget are general conditions for payments that shall be fulfilled for any release of funds.
Funds under the Facility shall not support activities or measures which undermine the sovereignty and territorial integrity of Moldova.
Content of the Reform Agenda
1. The Reform Agenda shall in particular set out the following elements, which shall be reasoned and substantiated:
(a)
measures constituting a coherent, comprehensive and adequately balanced response to the objectives set out in Article 3, including structural reforms, investments, and measures to ensure compliance with preconditions referred to in Article 5, where appropriate;
(b)
an explanation of how the measures are consistent with the general principles referred to in Article 4, as well as with the requirements in accordance with Article 9;
(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 (a), including the rule of law, fundamental rights and the fight against corruption;
(d)
an indicative list of investment projects and programmes intended for discussion and approval under the Neighbourhood Investment Platform, including respective overall investment volumes and envisaged timelines for implementation;
(e)
an explanation of the extent to which the measures are expected to contribute to climate and environmental objectives and their compatibility with the principle ‘do no significant harm’;
(f)
an explanation of the extent to which the measures are expected to contribute to digital transformation;
(g)
an explanation of the extent to which the measures are expected to contribute to education, training and employment and social objectives;
(h)
an explanation of the extent to which the measures are expected to contribute to gender equality and the empowerment of women and girls, and the promotion of women and girls’ rights;
(i)
for the reforms and investments, an indicative timetable, and the envisaged payment conditions for the release of funds in the form of measurable qualitative or quantitative steps planned to be implemented by 31 December 2027;
(j)
an explanation of how the measures are expected to contribute to a progressive and continuous alignment with the CFSP, including Union restrictive measures;
(k)
an explanation of how the measures are expected to build capacities and invest in administrative staff in Moldova;
(l)
the arrangements for the effective monitoring, reporting and evaluation of the Reform Agenda by Moldova, including the proposed measurable qualitative and quantitative steps and relevant indicators set out in paragraph 2;
(m)
an explanation of Moldova’s system to effectively prevent, detect and correct irregularities, fraud, corruption, including high-level corruption, and conflicts of interest and to enforce State aid control rules, and the proposed measures to address existing deficiencies in the first years of the implementation of the Reform Agenda;
(n)
for the preparation and, where available, for the implementation of the Reform Agenda, a summary of the consultation process of Moldova’s parliament, local authorities, in accordance with Moldova’s national legal framework, and relevant stakeholders, including social partners and civil society organisations, and an explanation of how their input is reflected in the Reform Agenda;
(o)
a communication and visibility plan on the Reform Agenda for the local audiences of Moldova;
(p)
any other relevant information.
2. The Reform Agenda shall be results-based and include indicators for assessing progress towards the achievement of the general and specific objectives set out in Article 3 of this Regulation. Those indicators shall be based, where appropriate and relevant, on internationally agreed indicators and those already available related to the Moldova’s policies. Indicators shall also be coherent, to the extent possible, with the key performance indicators included in Commission implementing decision approving the Reform Agendas for the Western Balkans under Regulation (EU) 2024/1449 and in the EFSD+ Results Measurement Framework.
Commission assessment of the Reform Agenda
1. The Commission shall assess the relevance, comprehensiveness and appropriateness of Moldova’s Reform Agenda or, where applicable, any amendment to that Agenda, without undue delay. When carrying out its assessment, the Commission shall act in close cooperation with Moldova, and may make observations, seek additional information or require Moldova to review or modify its Reform Agenda.
2. As regards the objective set out in Article 11(1), point (j), of this Regulation, the Commission, in accordance with Decision 2010/427/EU, shall duly take into account the role and the contribution of the EEAS.
3. When assessing the Reform Agenda, the Commission shall take into account relevant available analytical information about Moldova, including its macroeconomic situation and debt sustainability, the justification and the elements provided by Moldova as referred to in Article 11, the effects of Russia’s war of aggression against Ukraine and attempts to destabilise Moldova, as well as any other relevant information such as the information listed in Article 11.
4. In its assessment, the Commission shall consider in particular the following criteria:
(a)
whether the Reform Agenda represents a relevant, comprehensive, coherent and adequately balanced response to the objectives set out in Article 3 and elements referred to in Article 11;
(b)
whether the Reform Agenda and its measures are consistent with the general principles referred to in Article 4 and the requirements in accordance with Article 9;
(c)
whether the Reform Agenda can be expected to accelerate progress towards bridging the socio-economic gap between Moldova and the Union, and thereby enhances its economic, social and environmental development and supports the convergence towards the Union’s standards, reduces inequalities and reinforces social cohesion;
(d)
whether the Reform Agenda can be expected to further strengthen the fundamentals of the enlargement process as referred to in Article 3(2), point (a);
(e)
whether the Reform Agenda can be expected to accelerate the transition of Moldova towards a sustainable, climate-neutral and climate resilient and inclusive economy by improving connectivity, making progress on its green and digital transition, including progress on biodiversity, reducing strategic dependencies and boosting research and innovation, education, training, employment and skills and the wider labour market, with particular attention on youth;
(f)
whether the measures included in the Reform Agenda are compatible with the principles of ‘do no significant harm’ and of ‘leaving no one behind’;
(g)
whether the Reform Agenda appropriately addresses potential risks in compliance with preconditions and payment conditions;
(h)
whether the payment conditions proposed by Moldova are appropriate and ambitious, consistent with the enlargement policy framework, as well as sufficiently meaningful and clear to allow for the corresponding release of funds in case of their fulfilment and whether the proposed reporting indicators are appropriate and sufficient to monitor and report on the progress made towards the overall objectives;
(i)
whether the arrangements proposed by Moldova are expected to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest, organised crime and money laundering as well as to effectively investigate and prosecute criminal offences affecting the funds under the Facility;
(j)
whether the Reform Agenda effectively reflects the input of Moldova’s parliament, local authorities, in accordance with Moldova’s national legal framework, and relevant stakeholders, including social partners and civil society organisations.
5. For the purpose of the assessment of the Reform Agenda submitted by Moldova, the Commission may be assisted by independent experts.
Commission implementing decision
1. In the case of a positive assessment in accordance with Article 12, the Commission shall approve by means of an implementing decision the Reform Agenda submitted by Moldova, or, where applicable, the amended Agenda submitted in accordance with Article 14. That implementing decision shall be adopted in accordance with the examination procedure referred to in Article 28(2).
2. The Commission implementing decision, referred to in paragraph 1, shall set out the reforms to be implemented by Moldova, the investment areas to be supported and the payment conditions stemming from the Reform Agenda, including the timetable.
3. The Commission implementing decision, referred to in paragraph 1, shall also lay down:
(a)
the indicative amount of overall funds available to Moldova upon the fulfilment of payment conditions, as referred in Article 10(1), and the scheduled instalments to be released, including pre-financing, structured in accordance with Article 11, once Moldova has achieved satisfactory fulfilment of the relevant payment conditions in the form of qualitative or quantitative steps identified in relation to the implementation of the Reform Agenda;
(b)
the breakdown by instalment of financing between loan support and non-repayable support;
(c)
the time limit by which the final payment conditions for the reforms must be completed;
(d)
the arrangements and timetable for the monitoring, reporting and implementation of the Reform Agenda, including, where appropriate, through democratic scrutiny as referred to in Article 4(9) as well as, where relevant, measures necessary for complying with Article 23;
(e)
the indicators referred to in Article 11(2) for assessing progress towards the achievement of the general and specific objectives set out in Article 3.
Amendments to the Reform Agenda
1. Where the Reform Agenda, including relevant payment conditions, is no longer achievable by Moldova, either partially or totally, because of objective circumstances, Moldova may propose an amended Reform Agenda. In that case, Moldova may make a reasoned request to the Commission to amend its implementing decision referred to in Article 13(1).
2. The Commission may amend the implementing decision following the examination procedure referred to in Article 28(2), in particular to take into account a change of the amounts of funding available in line with the principles under Article 19.
3. Where the Commission considers that the reasons put forward by Moldova justify an amendment to its Reform Agenda, the Commission shall assess the amended Reform Agenda in accordance with Article 12 and may amend the implementing decision referred to in Article 13(1) without undue delay, following the examination procedure referred to in Article 28(2).
4. In an amendment, the Commission may accept timelines extending until 31 December 2028 for payment conditions.
Loan agreement, borrowing and lending operations
1. In order to finance the support under the Facility in the form of loans, the Commission shall be empowered on behalf of the Union to borrow the necessary funds on the capital markets or from financial institutions in accordance with Article 224 of the Financial Regulation.
2. The Commission shall enter into a loan agreement with Moldova. The loan agreement shall lay down the maximum loan amount, the availability period and the detailed terms and conditions of the support under the Facility in the form of loans. The loans shall have maximum duration of 40 years from the date of the signature of the loan agreement.
In addition to and by way of derogation from Article 223(4) of the Financial Regulation, the loan agreement shall contain the amount of pre-financing and rules on clearing of pre-financing.
3. The loan agreement shall be made available simultaneously to the European Parliament and the Council.
Provisioning
1. Provisioning for the loans shall be constituted at the rate of 9 % from the envelope allocated to the Neighbourhood geographic programme under Article 6(2), point (a), of Regulation (EU) 2021/947 and shall be used as part of provisions supporting similar risks.
2. By way of derogation from Article 214(2), last sentence, of the Financial Regulation, the provisioning shall be progressively constituted, and shall be fully constituted at the latest when the loans are fully disbursed.
3. The provisioning rate shall be reviewed at least every three years from the date of entry into force of this Regulation in line with the procedure foreseen under Article 31(5), fourth subparagraph, of the Regulation (EU) 2021/947.
Pre-financing
1. Following the submission of the Reform Agenda to the Commission, Moldova may request the release of a pre-financing of up to 18 % of the total amount foreseen under the Facility in accordance with Article 6(1), after deduction of complementary support, including support to civil society organisations and technical assistance, and provisioning for loans.
2. The Commission may release the requested pre-financing after the adoption of its implementing decision referred to in Article 13 and the entry into force of the Facility Agreement and of the loan agreement. The funds shall be released in accordance with Article 19(3), first sentence, and subject to the respect of the preconditions set out in Article 5.
3. The Commission shall decide on the timeframe for the disbursement of the pre-financing, which may be disbursed in one or more tranches.
Implementation of investment projects under the Neighbourhood Investment Platform
1. In order to benefit from the leverage of Union financial support to attract additional investment, investments supporting the Reform Agenda shall be implemented in cooperation with international financial institutions in the form of investment projects approved under the Neighbourhood Investment Platform.
2. Following satisfactory fulfilment of all applicable conditions, the Commission shall adopt a decision authorising a release of funds, as referred to in Article 19(3). That decision shall, in accordance with Article 6(1), set the amount of funds to be made available in the form of non-repayable support provided by the Union for projects approved under the Neighbourhood Investment Platform, and the amount of financial assistance in the form of loan support to be released to Moldova. That decision shall also set out, in accordance with the ratio set in the Facility Agreement as referred to in Article 8(5), point (c), the share of this loan support to be made available by Moldova as co-financing for projects approved under the Neighbourhood Investment Platform.
Assessment of the fulfilment of payment conditions, withholding and reduction of funds, rules on payments
1. Twice per year, Moldova shall submit a duly justified request for the release of funds at the latest two months after the timeline set in the Commission implementing decision in respect of fulfilled payment conditions related to the measurable quantitative or qualitative steps as set out in the Reform Agenda.
2. The Commission shall assess without undue delay whether Moldova has met the preconditions set out in Article 5 and the principles for financing set out in Article 10(3) and achieved satisfactory fulfilment of the payment conditions set out in the Commission implementing decision referred to in Article 13. Where the Commission finds that payment conditions previously met by Moldova, for which the Commission had previously paid, are no longer fulfilled by Moldova, the Commission shall reduce future disbursements by an equivalent amount.
In conducting that assessment the Commission may be assisted by experts, including experts from Member States. In the event that a request for the release of funds or a request for payment includes a step related to negotiation Chapter 32, referred to in Article 22(2), the Commission shall not adopt a decision authorising the release of funds unless it assesses such step positively.
3. Where the Commission makes a positive assessment of the satisfactory fulfilment of all applicable conditions, it shall inform the European Parliament and the Council without undue delay, before adopting a decision authorising the release of funds corresponding to those conditions. In respect of those amounts, the decision shall constitute the condition referred to in Article 10.
4. Where the Commission makes a negative assessment of the fulfilment of any conditions as per the timetable, the release of funds corresponding to such conditions shall be withheld. The Commission shall inform the European Parliament and the Council of that assessment without undue delay. The withheld amounts shall be released only when Moldova has duly justified, as part of the subsequent request for release of funds, that it has taken the necessary measures to ensure satisfactory fulfilment of the corresponding conditions.
5. Where the Commission concludes that Moldova has not taken the necessary measures within a period of 12 months from the initial negative assessment referred to in paragraph 4, the Commission shall reduce the amount of the non-repayable financial support and of the loan proportionately to the part corresponding to the relevant payment conditions. During the first year of implementation, a deadline of 24 months shall apply, calculated from the initial negative assessment referred to in paragraph 4. Moldova may present its observations within two months from the communication to them of the Commission’s conclusions.
6. Any amount corresponding to payment conditions that have not been fulfilled by 31 December 2028 shall not be due to Moldova and shall be decommitted, or cancelled from the available amount of loan support, as appropriate.
7. The Commission may reduce the amount of the non-repayable financial support and recover from Moldova, including by offsetting, any amount spent to achieve the objectives of the Facility, reduce the amount of the loan to be disbursed to Moldova or request early repayment of the loan in accordance with the loan agreement, in the event of funds unduly paid, identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interest affecting the financial interests of the Union that have not been corrected by Moldova, or of a reversal of qualitative or quantitative steps or where it is found, after the payment has taken place, that steps were not satisfactorily fulfilled, or of a serious breach of an obligation resulting from the Facility Agreement or from the loan agreement, including on the basis of information provided by OLAF or of the Court of Auditors’ reports. The Commission shall inform the European Parliament and the Council prior to taking any decision of such reductions.
8. By way of derogation from Article 116(2) of the Financial Regulation, the payment deadline as referred to in Article 116(1), point (a), of the Financial Regulation shall start running from the date of the communication of the decision authorising the release of funds to Moldova pursuant to paragraph 3 of this Article.
9. Article 116(5) of the Financial Regulation shall not apply to payments made as financial assistance, channelled directly to Moldova’s treasury pursuant to this Article and to Article 21 of this Regulation.
10. Payments of the non-repayable financial support and of the loans under this Article shall be made in accordance with the budget appropriations, as set in the annual budgetary procedure, and subject to the available funding. Funds shall be paid in instalments. An instalment may be paid in one or more tranches.
11. The amounts shall be paid following the decision referred to in paragraph 3 in accordance with the loan agreement.
12. Payment of any amount of the support in the form of loans shall be subject to the submission by Moldova of a request for payment in the form set out in the loan agreement and in accordance with the provisions set out in the Facility Agreement.
Transparency with regard to persons and entities receiving funding for the implementation of the Reform Agenda
1. Moldova shall publish up-to-date data on final recipients receiving amounts of funding exceeding the equivalent of EUR 50 000 cumulatively over the period of three years for the implementation of reforms and investments under the Facility.
2. For final recipients referred to in paragraph 1, the following information shall be published in a machine-readable format on a webpage, in order of total funds received, having due regard to the requirements of confidentiality and security, in particular the protection of personal data:
(a)
in the case of a legal person, the final recipient’s full legal name and VAT identification number or tax identification number, where available, or another unique identifier established by the legislation applicable to the legal person;
(b)
in the case of a natural person, the first and last name or names of the final recipient;
(c)
the amount received by the final recipient and the reforms and investments under the Facility that this amount contributes to implementing.
3. The information referred to in paragraph 2 shall not be published where disclosure risks threatening the rights and freedoms of the final recipients concerned or seriously harming their commercial interests. Such information shall be made available to the Commission.
4. Moldova shall transmit electronically to the Commission at least once a year the data on the final recipients referred to in paragraph 1 of this Article, in a machine-readable format to be defined in the Facility Agreement, as referred to in Article 8(5), point (l).
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
