The Council of the European Union and the European Parliament on February 19 announced a provisional agreement on boosting the Reform and Growth Facility for Moldova, a new instrument to support EU-related reforms and economic growth in the country, to €1.9bn by adding €100mn grants (which now account for €385mn of total), and to increase the pre-financing from 7% to 18%.

The facility is the financial pillar of the Moldova Growth Plan, presented by the European Commission in October 2024. The plan will boost Moldova's economy, provide significant financial assistance and bring the country closer to EU membership by accelerating reforms.

“With a €200mn increase in pre-financing and €100mn in total allocations, we are mobilising enhanced immediate support to assist Moldova in advancing reforms, accelerating its European integration, and countering the economic and energy repercussions of Russian aggression. This ambitious agreement underscores Europe’s capacity to respond decisively to escalating geopolitical challenges," said Siegfried Mureșan, co-rapporteur for the European Parliament Committee on Budgets, according to a statement from the parliament. 

“This facility underscores our commitment to Moldova's EU accession journey and supports the country in undertaking necessary reforms to strengthen democratic institutions, enhance energy security, boost economic growth, and improve the lives of its citizens," added Sven Mikser, co-rapporteur for the Committee on Foreign Affairs. 

The political agreement reached is now subject to formal approval by the European Parliament and the Council, the European Commission announced.

Payments will be subject to strict conditions in terms of the achievement of reforms set out in the agreed Reform Agenda.

The support under the Reform and Growth Facility will come in addition to the two-year Comprehensive Strategy for Energy Independence and Resilience of Moldova announced on February 4 to make Moldova's energy market more sustainable, economically viable and fully independent from Russian energy sources by the end of 2026.