EU resumes financial support for Moldova

EU resumes financial support for Moldova
/ Moldovan goverment
By bne IntelliNews July 24, 2019

The European Commission has resumed budget support assistance to Moldova by disbursing €14.5mn to support the implementation of the EU-Moldova free trade agreement, to finance vocational education training and to assist the implementation of the visa liberalisation action plan.

Payments have resumed after a suspension of nearly two years as a result of the deteriorating situation in the country in terms of the rule of law. The new government that took office in June has taken a series of important decisions that allowed the EU to appreciate that the conditions for resuming budget support to Moldova are met.

Prime Minister Maia Sandu announced that three new financing programmes will be signed with the European Union, envisaging grants of €42.7mn. A government decision with this end was passed on July 23, ahead of Sandu's visit to Brussels. A first grant of €8.5mn will be used for strengthening the rule of law. Another €23.5mn will be aimed at strengthening target economic regions (Cahul and Ungheni particularly). Finally, a €10.7mn grant will be aimed at alleviating the social impact of the free trade agreement between Moldova and the European Union.

Johannes Hahn, commissioner for European neighbourhood policy and enlargement negotiations, said on July 23, announcing the resumption of the financing to Moldova, that the €14.5mn package “is a clear sign of the EU support to the Republic of Moldova and its citizens.” It is also an appreciation of the steps already taken and an encouragement to the authorities to continue on this path in particular when it comes to the strengthening of the rule of law and democracy, and fight against corruption, Hahn added. The EU is strongly committed to supporting and accompanying Moldova in this reform path, the European commissioner concluded.

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