Parliament approves EU financial help for Moldova
- €100 million in grants and loans to support recovery
- Respect of democracy and rule of law a precondition
MEPs gave their green light to a €100 million macro-financial assistance to Moldova on Tuesday to support recovery from economic and political turmoil.
The EU will provide a combination of grants and loans, worth €100 million, to support the external financial needs of the country. MEPs today confirmed a recent informal deal with EU ministers.
- the macro-financial assistance (MFA) should support Moldova's commitment to sound public finance management, fight against corruption and money laundering, the de-politicisation of public administration, an independent judiciary, the freedom of the media;
- a joint statement by the European Parliament, the Commission and the Council emphasises that respect for effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, and guarantees for human rights are a precondition for receiving assistance,
- such conditions should be linked to the payment of each instalment, and the Commission shall temporarily suspend or cancel any payments, if conditions are not met.
The financial assistance was approved by 575 votes to 76, with 46 abstention.
“This vote confirms that the EU stands by the people of the Republic of Moldova in their hour of need. I strongly believe that the accompanying reform package has true transformative potential for the Moldovan economy and society. I encourage the Moldovan authorities to take the Venice Commission's recent recommendations very seriously, in the context of the debate over electoral reform, which will no doubt be the focus of monitoring as per the Joint Statement adopted by the three EU institutions”, rapporteur Sorin Moisa (S&D, RO) said.
This is the second time since 2010 that the EU will provide macro-financial assistance. The EU would provide €60 million in loans and €40 million as a grant, to be disbursed in 3 instalments in 2017 and 2018, which equals 25% of the country’s external financial needs. Moldova sank into economic recession in 2014, when a banking scandal and fiscal difficulties, coupled with weak export performance, shook the economy and the political landscape. The Deep and Comprehensive Free Trade Agreement with the EU, which has been in force since September 2014, has contributed to economic recovery. The EU is currently Moldova’s key trading partner, with 63% share in total exports.
Procedure: Ordinary legislative procedure
- The EU is currently Moldova’s key trading partner, with 63% share in total exports.