Economic analysis
- Towards Better Adequacy & Sustainability: A Review of Pension Systems & Pension Reforms in Eastern Partnership Countries, October 2020
- Report from the Commission to the European Parliament and the Council on the implementation of macro-financial assistance to third countries in 2019 (Page 7-8)
- Commission Staff Working document background analysis per beneficiary country accompanying the document report from the Commission to the European Parliament and the Council on the implementation of macro-financial assistance to third countries in 2019
- 2019 Association Implementation Report on Moldova
Macro-financial assistance
New MFA operation to Moldova
Following a request by the Republic of Moldova, the European Commission adopted on 4 January 2022 a proposal for a Macro-Financial Assistance (MFA) programme of up to EUR 150 million, out of which up to EUR 30 million would be provided in grants and up to EUR 120 million in medium-term loans at favourable financing conditions. The new assistance is to be disbursed in three instalments and complements the country’s IMF programme, approved in December 2021.
The Decision providing macro-financial assistance to the Republic of Moldova was adopted by the European Parliament and the Council on 6 April 2022 and entered into force on 18 July 2022.
All disbursements under the programme are tied to the political pre-conditions for MFA regarding the respect of democratic mechanisms, the rule of law and human rights, as well as to Moldova's track record under the IMF programme and the fulfilment of the specific policy conditions laid down in the Memorandum of Understanding. On 22 June 2022, the Commission, on behalf of the EU, and the Moldovan authorities signed the Memorandum of Understanding, which includes measures in areas such as rule of law, the fight against corruption, financial sector governance, energy sector reforms public sector governance and the business environment. The first instalment of EUR 50 million was released in August 2022. The second instalment of EUR 50 million was approved in March 2023, and a final instalment remains available for disbursement upon the fulfilment of the policy conditions until January 2025.
As part of the effort to help Moldova address its urgent financing needs, the Commission proposed in January 2023 to increase the Macro-financial Assistance operation for Moldova by EUR 145 million, of which EUR 100 million would be disbursed in loans on concessional terms and EUR 45 million in grants. The Decision was adopted by the European Parliament and Council on 14 June 2023 and thereby enhances the overall support provided through this MFA operation to EUR 295 million of which 75 million in grants.
The assistance is coming at a critical time for Moldova, as the economy has been heavily impacted by Russia’s invasion of Ukraine and the ongoing energy crisis since October 2021. This assistance is to be disbursed in two additional instalments which will take place before the final instalment of the original MFA amount, subject to new policy conditions laid down in an addendum to the existing Memorandum of Understanding which was signed in July 2023. The conditionality focuses on key priority areas, including the rule of law and fight against corruption, public and financial sector governance, strengthening the business environment and energy sector reforms. The assistance is complementary to Moldova’s commitments under the programme agreed with the International Monetary Fund and World Bank as well as the EU budgetary support operations, the Association Agreement and the overall objectives of the EU-Moldova relations, further supporting Moldova on its European path.
- EU-Moldova: Commission proposes to increase Macro-financial Assistance for Moldova by up to €145 million (2023 press release)
- EUR-Lex - 32023D1165 - EN - EUR-Lex (the 2023 Decision)
- EU-Moldova: Commission proposes €150 million in MFA (2022 press release)
- EUR-Lex - 32022D0563 - EN - EUR-Lex (the 2022 Decision)
- Commission proposal to provide macro-financial assistance to the Republic of Moldova
- Communication on the Commission proposal
- Decision (EU) 2022/563 of the European Parliament and of the Council on providing Macro-Financial Assistance for the Republic of Moldova
MFA in the context of the COVID-19 pandemic
On 22 April 2020, the Commission adopted a proposal for a €3 billion MFA package to ten enlargement and neighbourhood partners to help them limit the economic fallout of the coronavirus pandemic. The decision was adopted by the European Parliament and the Council of the EU on 25 May 2020. As part of this package, the EU agreed on a MFA programme of EUR 100 million to Moldova. The first instalment of EUR 50 million was disbursed on 25 November 2020. The second and last instalment was disbursed on 8 October 2021, thereby successfully completing the programme.
- Decision of the European Parliament and the Council of 25 May 2020
- SWD accompanying the Commission proposal on providing MFA in the context of the COVID-19 pandemic
- Commission proposal on providing MFA in the context of the COVID-19 pandemic
MFA to Moldova (2017-2020)
Following a request by the Republic of Moldova, the European Commission adopted on 13 January 2017 a proposal for a Macro-Financial Assistance (MFA) programme of up to EUR 100 million, out of which up to EUR 40 million would be provided in grants and up to EUR 60 million in medium-term loans at favourable financing conditions. The new assistance is to be disbursed in three instalments and to complement the country’s IMF programme, approved on 7 November 2016.
The Decision providing macro-financial assistance to the Republic of Moldova was adopted by the European Parliament and the Council on 13 September 2017 and entered into force on 23 September.
All disbursements under the programme are tied to the political pre-conditions for MFA regarding the respect of democratic mechanisms, the rule of law and human rights, as well as to Moldova's track record under the IMF programme and the fulfilment of the specific policy conditions laid down in the Memorandum of Understanding. On 24 November 2017, the Commission, on behalf of the EU, and the Moldovan authorities signed the Memorandum of Understanding, which includes measures in areas such as public governance, financial sector governance, energy sector reforms and tackling corruption. The first instalment of EUR 30 million was released in October 2019. The second instalment of EUR 30 million was released in July 2020. The third and final instalment of the programme was cancelled, as the availability period of the programme ended in July 2020.
- EU approves €30 million disbursement in macro-financial assistance to the Republic of Moldova
- EU approves €30 million disbursement in Macro-Financial Assistance to the Republic of Moldova
- Memorandum of Understanding between the European Union and the Republic of Moldova for Macro-Financial Assistance of up to EUR 100 million (November 2017)
- Decision (EU) 2017/1565 of the European Parliament and of the Council on providing macro-financial assistance to the Republic of Moldova (September 2017)
- Commission proposal to provide macro-financial assistance of up to EUR 100 million to the Republic of Moldova (January 2017)
- Ex-ante evaluation statement accompanying the Commission proposal (January 2017)
MFA 2010-2012
A previous MFA to the Republic of Moldova, amounting to EUR 90 million, all in grants, was successfully disbursed in three tranches in December 2010, September 2011 and April 2012.
- Commission proposal to provide macro-financial assistance of up to EUR 90 million to the Republic of Moldova (June 2010)
- Decision of the European Parliament and of the Council providing macro-financial assistance to the Republic of Moldova (October 2010)
- Memorandum of Understanding between the EU and the Moldovan authorities (December 2010)
- Ex-post Evaluation of the EU’s Macro Financial Assistance to Moldova (October 2013)
- Executive Summary of the Ex-post Evaluation (October 2013)