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The Association Agreement strengthens Moldova's political and economic ties with the EU. It sets out a reform plan in areas vital for good governance and economic development and strengthens cooperation in several sectors. By signing the agreement, Moldova committed to reforming its domestic policies on the basis of EU laws and practice. To do so, the country benefits from substantial EU support.
Since 28 April 2014, Moldovan citizens with a biometric passport can travel to the Schengen area without a visa. In the period from April 2014 to April 2018, more than 1.4 million Moldovan citizens have benefitted from the visa-free regime. The EU has provided support to Moldova for reforms in the areas of justice and security, including in the fight against corruption, which are related to visa liberalisation.
For Moldovans with non-biometric travel documents, the upgraded Visa Facilitation Agreement continues to apply, with a reduced visa fee of €35 and a fee waiver for students, those visiting family in the EU and various other groups of citizens. The Visa Facilitation Agreement also provides for easier access to multiple-entry visas with long validity. The refusal rate for visa applications has sharply decreased from 11.4% in 2010 to under 2% in 2017.
Moldova, the EU and interested EU Member States also signed a Mobility Partnership on 5 June 2008. The Mobility Partnership offers a political framework for comprehensive and tailor-made dialogue and cooperation with Moldova on matters related to migration and mobility. It includes a set of targets and commitments, as well as a package for specific support measures offered by the EU and interested EU Member States.
The Deep and Comprehensive Free Trade Area between the European Union offers Moldova privileged access for goods and services to the EU market. The implementation of the Deep and Comprehensive Free Trade Area is underpinned by substantial financial support programs from the EU side.
In 2017, total bilateral trade between the EU and Moldova increased by 18% to €4 billion. The European Union's imports from Moldova increased by 23% in 2017, to the value of €1.6 billion. The European Union is Moldova's first trading partner and the first investor in the country, accounting for over 55% of total trade. The value of certain EU imports from Moldova also grew, for instance agricultural products were worth €621 million (28% growth), and machinery and transport equipment worth €302 million (27% growth). Data for the first half of 2018 confirms the positive trend of growth in Moldovan exports to the EU, in particular for a number of products such as sunflower seeds, grapes, cereals, essential oils, footwear, carpets, glassware and bedding articles.
Access to the European markets and benefits from the DCFTA will further increase once Moldova has aligned its health and safety standards to those of the EU. The food safety reform will enable Moldova to export its agricultural products, notably animal products, whose safety for consumers is strictly controlled in the EU. Overall, if reforms are completed, the DCFTA is expected to boost Moldova's GDP by 5.4% annually.
The DCFTA is compatible with all other free trade agreements that Moldova is part of, and does not limit Moldova's ability to export its products to other countries. Moldova also retains full sovereignty over its trade policy since it is not a member of any customs union. Domestic reforms in Moldova, together with EU support, will upgrade the quality of Moldovan products and services. This will open trade opportunities well beyond the EU market and bring growth and jobs to Moldova.
EU assistance to Moldova supports the objectives of the Association Agreement. It is linked to the country's reform commitments under the Association Agreement and aims at improving the quality of life of ordinary Moldovans in a tangible and visible manner, strengthening the rule of law, as well as improving the business climate, with a view to reaping the benefits from the DCFTA, and supporting greater connectivity between Moldova and the EU in the areas of energy and transport.
The European Union and EU Member States are working closely together to jointly plan their financial assistance to Moldova for 2017-2020 with a view to increasing the impact of their support, strengthening European visibility and bringing added benefits to citizens. The new EU multiannual programming 2017-2020 (Single Support Framework) was adopted on 13 September 2017. It will focus on four priority areas:
Beyond these areas, the programming also includes support to civil society, strategic communication, and capacity development/institution building.
Projects approved by the Commission in 2017 will directly benefit the citizens of Moldova; they will aim at:
EU assistance is conditional to the progress of the country in its reform agenda. To this respect, when major frauds in the Moldovan banking system emerged in 2014-2015, the European Union suspended budget support payments to the Moldovan authorities. The EU resumed its budget support disbursements following the agreement at the end of 2016 on a programme between Moldova and the International Monetary Fund (IMF), whose main aim is to stabilise the banking sector in Moldova, and also given Moldova's compliance with other budget support conditions (e.g. progress on public finance management). In line with the recommendations of the Court of Auditors (report on Moldova, no. 13/2016), the Commission will continue to apply strict conditionality; in doing so, it will pay particular attention to the need for the country to deliver on key reforms, especially in the justice area, the financial sector, the energy sector, public administration and on prevention and fight against corruption (see most recent Council conclusions on Moldova, 26 February 2018), and to the sound implementation of the IMF agreement. Particular attention will be also paid to the respect of effective democratic mechanisms, rule of law and human rights in Moldova.
Tangible results of EU assistance for Moldovan citizens include:
Moldova also benefits from regional programmes for the Eastern Partnership region, supporting SMEs, energy, transport, environment, access to finance, growth as well as the overall business environment. Moldova also participates in Cross Border Cooperation (CBC) programmes such as the Black Sea Programme, the Romania-Ukraine-Moldova ENPI Land-Border Programme, and the INTERREG Danube Transnational Programme.
Overall, the EU estimates that its cooperation projects have created 20,000 jobs in Moldova.
An important number of EU Member States and donors are present in the country, as well as World Bank, EBRD, EIB, and UNDP. Donor coordination is well in place in Moldova.
Click on the images to watch how EU assistance has changed the lives of Moldovan citizens or watch the series of videos on YouTube.
On 13 September 2017 the European Parliament and the Council agreed on a €100 million macro-financial assistance programme with a view to supporting Moldova's economic stabilisation and a substantive reform agenda. The decision entered into force on 23 September 2017 and foresees the assistance to be provided in three tranches. However, the disbursement of each tranche will be subject to strict conditionality. In a joint statement that accompanied the decision the Parliament, the Council and the Commission stressed that respecting effective democratic mechanisms, including a parliamentary system and the rule of law, is a pre-condition for any disbursement. The Commission and the EEAS will closely monitor the fulfilment of this pre-condition throughout the lifecycle of the programme. Moreover, on a technical level, Moldova will have to fulfil a number of policy conditions at the moment of the disbursement of any tranche.
Moldova became the first Eastern Partnership country to participate in the EU's Competitiveness of Enterprises and SME programme. The programme promotes the internationalisation of SMEs through the Enterprise Europe Network, supports the emergence of competitive industries and helps fostering interactions between entrepreneurs.
Moldova was also the first Eastern Partner to be associated with the Horizon 2020 programme, through which the EU supports research and innovation in view of fostering integration into the European Research Area. Moldova actively participates in the Erasmus+ programme and benefits from cooperation, exchanges, capacity building and mobility opportunities in the field of education and youth. In March 2015, Moldova joined the European programme for culture Creative Europe.
The European Union Border Assistance Mission to Moldova and Ukraine was launched in 2005. Illicit cross-border activities, including trafficking of human beings, smuggling and other illegal trade, were occurring along the Moldova-Ukrainian border. This was aggravated by the fact that the Moldovan government had no direct control over the secessionist region of Transnistria in Moldova (which stretches along 454 km of the Moldova-Ukraine border). The aim of EUBAM is to support Moldova’s and Ukraine’s efforts to effectively manage their common border and actively support concrete measures contributing to the settlement of the Transnistrian conflict.
Moldova is one of the non-EU states that participate in the EU's Common Security and Defence Policy (CSDP) missions and operations. Moldovan experts have contributed to the EU Training Mission in Mali since 2014. In 2015-2016 Moldova also contributed to the EU Military Advisory Mission in the Central African Republic. At Moldova's request, Security Sector Reform advisors from three EU countries helped with the reform process of the security sector in 2014-2015. The EU has continued providing security sector reform-related advisory support under a new phase of an advisory programme to Moldova since 2016.
The EU participates as an observer in the 5+2 negotiation process on the settlement of the Transnistrian conflict, and it continues to support a comprehensive, peaceful settlement based on the sovereignty and territorial integrity of Moldova with a special status for Transnistria.
The EU supports confidence building measures designed to foster regional development in Gagauzia and to facilitate the settlement of the Transnistrian conflict by increasing confidence between Chisinau and Tiraspol through joint initiatives involving local authorities, civil society organizations and other stakeholders from both sides. In addition, the above-mentioned EUBAM mission actively supports concrete measures contributing to the settlement of the Transnistrian conflict.
The Protocol decision on vehicles registration, signed on 24 April 2018 by Chisinau and Tiraspol, represents an important step forward and contributes to a positive dynamic in the Transnistrian settlement process.