More jobs, growing exports to the EU, improved public administration, better police services and accelerated rural development: These are the objectives of the support that the European Union has provided to the Republic of Moldova today. For these purposes, it has made € 36,3 million available to the Moldovan state budget.
The Moldovan authorities have agreed to use these funds to support five areas:
- the implementation of the Deep and Comprehensive Free Trade Area (DCFTA) between the EU and the Republic of Moldova,
- the Police Reform,
- Public Finance Policy Reforms,
- the Implementation of the Visa Liberalisation with Europe,
- the Agriculture and Rural Development in the Republic of Moldova (ENPARD).
Before these amounts could be made available, the Moldovan Government had to meet the conditions and achieve results in the five programmes. The amounts disbursed today do not correspond to the full amounts requested by the Moldovan authorities. The decision to make a payment of € 36,3 million out of € 47 million (eligible) reflects the partial achievement of the conditions set in the agreements between the EU and the Moldovan authorities.
In particular, the Republic of Moldova used EU support to achieve the following results:
- met some of the sector reforms stipulated in the mutually binding budget support agreements with the EU:
- On Agriculture and Rural Development (ENPARD), Moldova has enhanced the competitiveness of its agri-food sector by supporting farm investment, the creation of producer groups and helping agri-food establishments trade with the EU. EU support also helped agricultural producers to comply with international and EU quality standards on food safety.
- In relation to the DCFTA, key legislative measures were adopted on market surveillance to ensure that products on the Moldovan market are of higher standards for Moldovan consumers and workers and to ensure the protection of the environment, safety and fairness in trade. In addition, the programme stimulated the creation of jobs and export missions for Moldovan businesses and on-site visits for foreign investors.
- Visa Liberalisation Action Plan: EU support contributed to improving the functioning of the information exchange for border and migration management, to reinforce the cooperation with EU Member States on these issues and to consolidate Moldova's capabilities in fighting human trafficking and organised crime.
- In the first year of the police budget support programme, community policing pilot projects were rolled out in four police inspectorates (Chisinau, Anenii Noi, Singerei and Cahul), closely monitored by civil society organisations and the international community.
- made some progress in the way it is managing its public finances and preparing its budget in a more transparent manner. Thanks to EU support, the authorities have improved access of citizens to budget information by preparing a citizen budget. They also have been improving control and reporting of expenditures and reinforcing debt management. The Court of Accounts also took actions to make its audits more effective.
- made significant progress in the implementation of a stability-oriented macro-economic policy, including by carrying out structural reforms to stabilise and better regulate the banking sector in line with the ongoing IMF programme.
The European Union has, and will continue to apply strong conditionality in its financial assistance by focusing on areas which directly benefit the citizens of the Republic of Moldova. For the continuation of budget support in 2018, it will be important that the Republic of Moldova steps up efforts to build a track-record in the fight against high-level corruption and ensures the independence and accountability of the judiciary. The Republic of Moldova will also need to ensure respect with the democratic mechanisms. Finally, continued sound implementation of the IMF agreement and fulfilment of the reforms jointly agreed in budget support contracts will be crucial.