The European Council approved the mandate for negotiations with the European Parliament on the Economic Growth Plan for Moldova, which envisages financial assistance of up to 1.8 billion euros for 2025-2027
These funds are meant for infrastructure, socio-economic reforms and Moldova's integration into the European single market. It is planned that the mentioned assistance mechanism will support Moldova in implementing EU-related reforms and will stimulate its economic convergence with the EU on the basis of an ambitious reform program. The mechanism will also contribute to Moldova's alignment with EU values, laws, norms, standards, policies and practices with a view to future EU accession. “The mechanism will cover 2025-2027 and is expected to provide Moldova with up to 285 million euros in grants and 1.5 billion euros in concessional loans,” the EU Council explained. It was emphasized that the EU is firmly committed to back Moldova on its path towards EU accession. Comprehensive reforms, together with investments, are necessary to bring Moldova closer to the EU. The new mechanism will give a significant impetus to the EU's support for such reforms and investments. It is planned that the agreement on the negotiating position of the European Council will allow the Council President to start negotiations with the European Parliament after the Parliament votes in favor of his mandate. Earlier, Moldovan President Maia Sandu said that the first tranche from the EU Investment Plan for Moldova of 1.8 billion euros for 2025-2027 will arrive in the country in the first months of 2025. The relevant agreement was reached during a working visit to Brussels, where the head of state agreed to speed up the access to the European financing. As the EU Permanent Representation in Moldova informed earlier, the EU financial assistance of 1.8 billion euros, provided by the European Union to Moldova under the Economic Growth Plan for Moldova, includes 300 million euros in grants and 1.5 billion euros in loans under very favorable terms. For example, Moldova will start repayment after 10 years, from 2034, which will provide the economy with enough time to develop. The repayment period will be up to 40 years. The interest rate, which is approximately 3%, is much lower than the rate at which Moldova can currently receive loans. The EU is allocating funds for the following purposes: new roads, bridges and railroad infrastructure; energy security - to complete a new power transmission line and start the construction of 2 more, which will connect Moldova to the EU power grid; construction of 2 new well-equipped hospitals in Cahul and Balti; improving access to finance and supporting 25 thousand enterprises, including small family businesses, etc., etc. // 18.12.2024 - InfoMarket.
