REPORT on the proposal for a regulation of the European Parliament and of the Council on providing macro-financial assistance to the Republic of Moldova
15.3.2022 - (COM(2022)0004 – C9‑0007/2022 – 2021/0438(COD)) - ***I
Committee on International Trade
Rapporteur: Markéta Gregorová
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a regulation of the European Parliament and of the Council on providing macro-financial assistance to the Republic of Moldova
(COM(2022)0004 – C9‑0007/2022 – 2021/0438(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2022)0004),
– having regard to Article 294(2) and Article 212 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9‑0007/2022),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to the undertaking given by the Council representative by letter of ... .... 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union;
– having regard to Rule 59 of its Rules of Procedure,
– having regard to the report of the Committee on International Trade (A9-0043/2022),
1. Adopts its position at first reading, taking over the Commission proposal;
2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;
3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
EXPLANATORY STATEMENT
The Union and the Republic of Moldova have developed a close political and economic relationship over the recent years and concluded of the Association Agreement, including the DCFTA, which was signed on 27 June 2014 and entered fully into force on 1 July 2016.
Moldova has good economic links with the Union and the Union continues to be Moldova’s largest trading partner.
Moldova’s macroeconomic position remains vulnerable: this is partly due to the COVID-19 pandemic situation, recent gas crisis and some significant weaknesses in several sectors (like limited administrative capacity, further need to improve governance, need to continue efforts in the fight against corruption).
The Commission submitted to the European Parliament and the Council a proposal to provide a new MFA of EUR 150 million to the benefit of the Republic of Moldova, of which EUR 120 million in the form of loans and EUR 30 million in the form of grants.
The disbursement would take place in three tranches. The release of each tranche linked to good progress with the implementation of both the IMF programme and a number of additional policy measures to be agreed between the Commission and the authorities and listed in a Memorandum of Understanding. The MoU is likely to focus on policy reforms addressing asset recovery linked to the 2014 bank fraud, continued Public Finance Management reforms, the justice sector reform including enhancing transparency and accountability, public procurements reforms, improving labour rights protection and digitalisation, the energy sector as well as the business environment.
As it is normally the case with MFA, the disbursements would be conditional on satisfactory reviews under the IMF programme and progress on the implementation of the EU Moldova Association Agreement and the DCFTA.
Decision EU 2020/701[1] on providing previous macro-financial assistance to the Republic of Moldova as part of the MFA package to the enlargement and neighbourhood countries in the context of the COVID-19 pandemic, of EUR 100 million in loans was adopted on 25 May 2020 by the European Parliament and the Council. The assistance was fully disbursed during 2020 and 2021.
Countries covered by the European Neighbourhood Policy are eligible for MFA. The MFA would complement the grants under the NDICI and other EU programmes. By supporting the adoption, by the Moldovan authorities, of an appropriate framework for macroeconomic policy and structural reforms, this MFA would reinforce the added value and effectiveness of the EU’s overall financial interventions (including through other financial instruments).
In light of the above considerations, your rapporteur takes the view that the European Parliament should agree with the Commission's proposal to provide macro-financial assistance to Moldova. Therefore, the rapporteur does not table the amendments as after the latest elections, the Republic of Moldova is following a good reform trajectory, and even though some spheres still needs to be strengthened, the right conditions are presently fulfilled for the strong Union support of the government and the country.
Furthermore, your rapporteur stresses the importance of respect by the Moldavian side of all indicated conditions in different areas to be noted in the MoU. The rapporteur emphasises that the disbursement of each instalment should be linked to clear conditions and their respect. However, it is still regrettable that the Parliament is not further involved in the setting of the MFA conditionalities, which is why it is still important that, as co-legislator, the Parliament gets duly informed by the Commission throughout the disbursement of the MFA programme. Furthermore, the Commission should monitor and rigorously control the fulfilment of these conditions and duly inform the Parliament throughout the whole macro-financial assistance process.
PROCEDURE – COMMITTEE RESPONSIBLE
Title |
Providing macro-financial assistance to the Republic of Moldova |
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References |
COM(2022)0004 – C9-0007/2022 – 2021/0438(COD) |
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Date submitted to Parliament |
4.1.2022 |
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Committee responsible Date announced in plenary |
INTA 20.1.2022 |
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Committees asked for opinions Date announced in plenary |
AFET 20.1.2022 |
BUDG 20.1.2022 |
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Not delivering opinions Date of decision |
AFET 21.2.2022 |
BUDG 15.2.2022 |
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Rapporteurs Date appointed |
Markéta Gregorová 26.1.2022 |
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Discussed in committee |
28.2.2022 |
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Date adopted |
14.3.2022 |
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Result of final vote |
+: –: 0: |
35 0 2 |
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Members present for the final vote |
Barry Andrews, Anna-Michelle Asimakopoulou, Tiziana Beghin, Geert Bourgeois, Saskia Bricmont, Udo Bullmann, Daniel Caspary, Arnaud Danjean, Paolo De Castro, Emmanouil Fragkos, Markéta Gregorová, Roman Haider, Christophe Hansen, Danuta Maria Hübner, Herve Juvin, Karin Karlsbro, Maximilian Krah, Danilo Oscar Lancini, Margarida Marques, Gabriel Mato, Carles Puigdemont i Casamajó, Samira Rafaela, Inma Rodríguez-Piñero, Massimiliano Salini, Ernő Schaller-Baross, Helmut Scholz, Sven Simon, Mihai Tudose, Kathleen Van Brempt, Marie-Pierre Vedrenne, Jörgen Warborn, Iuliu Winkler, Juan Ignacio Zoido Álvarez |
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Substitutes present for the final vote |
Jérémy Decerle, Svenja Hahn, Javier Moreno Sánchez |
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Date tabled |
15.3.2022 |
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FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE
35 |
+ |
ECR |
Sergio Berlato, Geert Bourgeois |
ID |
Roman Haider, Herve Juvin, Danilo Oscar Lancini |
NI |
Tiziana Beghin, Carles Puigdemont i Casamajó, Ernő Schaller-Baross |
PPE |
Anna-Michelle Asimakopoulou, Daniel Caspary, Arnaud Danjean, Christophe Hansen, Danuta Maria Hübner, Gabriel Mato, Massimiliano Salini, Sven Simon, Jörgen Warborn, Iuliu Winkler, Juan Ignacio Zoido Álvarez |
Renew |
Barry Andrews, Jérémy Decerle, Svenja Hahn, Karin Karlsbro, Samira Rafaela, Marie-Pierre Vedrenne |
S&D |
Udo Bullmann, Paolo De Castro, Margarida Marques, Javier Moreno Sánchez, Inma Rodríguez-Piñero, Mihai Tudose, Kathleen Van Brempt |
The Left |
Helmut Scholz |
Verts/ALE |
Saskia Bricmont, Markéta Gregorová |
0 |
- |
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2 |
0 |
ECR |
Emmanouil Fragkos |
ID |
Maximilian Krah |
Key to symbols:
+ : in favour
- : against
0 : abstention
- [1] Decision (EU) 2020/701 of the European Parliament and of the Council of 25 May 2020 on providing macro‐financial assistance to enlargement and neighbourhood partners in the context of the COVID‐19 pandemic (OJ L 165, 27.5.2020, p. 31).