The European Union has taken an essential step towards supporting the development of the Republic of Moldova, approving an unprecedented financial package of €1.8 billion. This economic growth plan is part of a broad project aimed at accelerating Moldova’s accession to the EU, strengthening its capacity to implement essential reforms and stimulating the national economy. IPN explains what this plan entails and how the money can be spent.
What is the Moldova Growth Plan?
The Growth Plan for Moldova, valid for 2025-2027, marks the most important economic support offered by the EU since the country’s independence. It focuses on three main pillars:
- Improving infrastructure and increasing financial assistance;
- Integration into the EU Single Market;
- Implementation of fundamental socio-economic reforms.
What is the context of this decision and what impact will it have on Moldova?
The EU’s support comes at a decisive moment for Moldova, when the country is stepping up its efforts to align with European Union standards and values. With this financial package, the EU is not only providing concrete help, but also reaffirming its commitment to Moldova’s European future.
Ursula von der Leyen, President of the European Commission, stressed that this package can “double the size of Moldova’s economy in the next decade” through investments in jobs, infrastructure and services. Josep Borrell, High Representative of the EU for Foreign Affairs and Security Policy, added that the Plan recognizes Moldova’s “impressive results” on its EU path, strengthening the country’s security, peace and prosperity.
What are the strategic pillars of the Moldova Growth Plan?
1. Improving infrastructure and increasing financial assistance
This component aims to support the necessary structural reforms and the modernization of the national infrastructure. The funds will be allocated for building and improving transport infrastructure (roads, bridges, railways), as well as for the health sector, through the construction of two new hospitals in Cahul and Balti. Energy security will also be strengthened through new interconnections with the European electricity network, reducing dependence on unstable external sources.
2. Integration into the EU Single Market
The second pillar focuses on Moldova’s gradual integration into the EU Single Market, facilitating trade, boosting exports and enhancing access to the EU Digital Market. By joining the Single Euro Payments Area (SEPA) and eliminating roaming charges, Moldovan citizens and companies will benefit from simpler financial transactions and lower costs for telecommunications services.
3. Fundamental socio-economic reforms
This pillar aims to implement essential reforms for transforming Moldova into a competitive economy, aligned with European values and standards. The investments will support the green transition, attraction of foreign capital and development of small and medium-sized enterprises (SMEs), contributing to sustainable economic growth.
What are the long-term economic and social benefits?
The Growth Plan approved by the EU will have a significant impact on Moldova’s economy and society. It is estimated that Moldova’s economy can double its size in the next ten years, with a significant increase in living standards.
Also, up to 100,000 new jobs will be created, and over 25,000 SMEs will benefit directly from financial support. Strategic reforms and investments will contribute to the modernization of infrastructure and the creation of new places in kindergartens, as well as to improvement of access to medical services.
What do the Plan’s results look like in figures?
By the end of 2027, the Growth Plan aims to achieve the following results:
- Creation of 100,000 jobs;
- Support for at least 25,000 small businesses;
- Modernization of road infrastructure, including the Chisinau ring road and the Odessa-Chisinau-Iasi road;
- Linking of Moldova to the EU electricity grid;
- Granting of 40,000 eco-vouchers for the purchase of energy-efficient appliances;
- Access to drinking water and sanitation services for 1.5 million people;
- Construction and equipment of two new hospitals in Cahul and Balti;
- Creation of 5,000 new places in kindergartens.
What does this Plan mean for the future of Moldova?
The EU Growth Plan represents a historic moment for the Republic of Moldova and marks a new chapter in the process of accession to the European Union. With this €1.8 billion financial package, the EU demonstrates its strong support for Moldova’s European future, facilitating critical reforms and paving the way for the country’s economic and social integration.