European Commission Provides €72.5 Million in Financial Support to Moldova
On 8 July, the European Commission allocated €50 million in macro-financial assistance to Moldova to support the country's European path. The organisation will also add €22.5 million in grants to this money by the end of July.
The European Commission announced this on Facebook and on its website.
"The country's economy has been severely affected by Russia's aggressive war against Ukraine and needs constant support to overcome everyday challenges. With the funds, Moldova will be able to meet its financial needs and maintain a high pace of reforms. It will also help the country to advance on its European path," the statement said.
According to the EC, this financial support will help Moldova cover part of its financial needs until 2024 and maintain macroeconomic stability, as well as promote further reforms.
The European Commission believes that Moldova's economy showed moderate growth in 2023 after a deep recession in 2022. However, the country remains under the influence of Russia's aggressive war against Ukraine and continues to face serious challenges in the field of energy security.
This is the fourth tranche of the ongoing macro-financial assistance to Moldova. It was disbursed after the European Commission concluded that the country had fulfilled the political conditions agreed with the EU for the disbursement of this tranche. In particular, Moldova has improved public sector governance and strengthened the independence of its National Bank.
Moldova has also strengthened the rule of law by adopting a law on extraordinary evaluation (i.e. full vetting) of judges. Progress has also been made in the fight against corruption through better cooperation between anti-corruption and law enforcement agencies. The country has also taken steps to support renewable energy and reformed its Customs Code, which is now fully aligned with the EU Customs Code.
In addition, Moldova has adopted a National Economic Development Strategy, which contains an ambitious vision of the country's economic policy until 2030.
The macro-financial assistance is part of the EU's broader efforts to support Moldova in responding to the many challenges of recent years. It will also help Moldova to advance on its European path, and its total amount is €295 million.