Changes from plenary report to adopted text

Removed(10) ‘do no significant harm’ means not supporting or carrying out economic activities that do significant harm to any environmental objective, where relevant, within the meaning of Article 17 of Regulation (EU) 2020/852;

Removed(11) ‘the Neighbourhood Investment Platform’ is one of the regional investment platforms referred to under Article 32 of Regulation (EU) 2021/947.

RemovedObjectives of the Facility

Removed1. The general objectives of the Facility shall be to:

Removed(a) support the enlargement process by accelerating the alignment with Union values, laws, rules, standards, policies and practices (‘acquis’) through the adoption and implementation of reforms with a view to future Union membership;

Removed(b) support progressive integration of Moldova into the Union single market;

Removed(c) accelerate the socio-economic convergence of Moldova’s economy with the Union;

Removed(d) foster good neighbourly relations, as well as people-to-people contact.

Removed2. The specific objectives of the Facility shall be to:

Removed(a) further strengthen the fundamentals of the enlargement process, including the rule of law and fundamental rights, the functioning of democratic institutions, including de-polarisation, public administration and fulfil the economic criteria; build a functioning market economy capable of coping with competitive pressure and market forces within the Union, ▌ promoting an independent judiciary, reinforcing security and stability, strengthening the fight against fraud and all forms of corruption, including high-level corruption, oligarchic influence and nepotism, organised crime, cross-border crime and money laundering as well as terrorism financing, tax evasion and tax fraud, tax avoidance; increasing compliance with international law; strengthening freedom and independence of media and academic freedom; combating hate speech; reinforce territorial integrity; enabling an environment for civil society, fostering social dialogue; promoting gender equality, gender mainstreaming and the empowerment of women and girls, children’s rights and child and youth participation, non-discrimination and tolerance, to ensure and strengthen respect for the rights of refugees and persons belonging to minorities, including national minorities and Roma, as well as rights of lesbian, gay, bisexual, transgender and intersex persons;

Removed(b) move towards full alignment of Moldova with the Union Common Foreign and Security Policy (CFSP), including Union restrictive measures;

Removed(c) fight disinformation, hybrid threats, cyberattacks and Foreign Information Manipulation and Interference, in particular by Russia, against Moldova’s sovereignty, democratic processes and institutions, as well as against the Union and its values;

Removed(d) move towards harmonisation of visa policies with the Union;

Removed(e) reinforce the effectiveness of public administration, build capacities and invest in administrative staff in Moldova; ensure access to information, public scrutiny and the involvement of civil society in decision-making processes; support transparency, accountability, structural reforms and good governance at all levels, including as regards their powers of oversight and inquiry over the distribution of and access to public funds as well as in the areas of public financial management and public procurement and State aid control; support initiatives and bodies involved in supporting and enforcing international justice in Moldova;

Removed(f) accelerate the transition of Moldova to sustainable, climate-neutral and inclusive economy, that is capable of withstanding competitive market pressures of the Union single market, and to a stable investment environment and reduce its strategic dependency by diversifying energy sources and by constructing new electricity interconnections with neighbouring countries in order to achieve energy security;

Removed(g) foster economic integration of Moldova with the Union single market, in particular through increased trade and investment flows, and resilient value chains;

Removed(h) support enhanced integration with the Union single market through improved and sustainable connectivity in line with trans-European networks to reinforce good neighbourly relations, as well as people-to-people contact;

Removed(i) accelerate the inclusive and sustainable green transition to climate neutrality by 2050, in accordance with the Paris Agreement and the Green Deal and covering all economic sectors, particularly energy, including the transition towards a de-carbonised, climate-neutral, climate-resilient and circular economy, while ensuring that investments respect the ‘do no significant harm’ principle;

Removed(j) promote the digital transformation and digital skills as an enabler of sustainable development and inclusive growth;

Removed(k) boost innovation, research, and cooperation between academic institutions and industry in support of the green and digital transitions, promoting local industries with a particular emphasis on locally based micro, small and medium-sized enterprises and start-ups;

Removed(l) boost quality education, training, reskilling and upskilling at all levels, with a particular focus on youth, including tackling youth unemployment, preventing brain drain and supporting vulnerable communities, including refugees, and support employment policies, including labour rights, in line with the European Pillar of Social Rights, and fighting poverty.

Removed(la) support communication activities to improve Moldovan citizens’ awareness of the positive impact of Union accession and understanding of the required reforms.

RemovedGeneral principles

Removed1. Support from the Facility shall be managed by the Commission in a manner consistent with the key principles and objectives of economic reforms set out in the EU-Moldova Association Agreement and the EU enlargement policy.

Removed2. Cooperation under the Facility shall be needs-based and shall promote the development effectiveness principles, namely ownership of development priorities by Moldova with a focus on clear conditionality and tangible results, inclusive partnerships with local and regional authorities, social partners and civil society organisations, as well as transparency and mutual accountability. That cooperation shall be based on an effective and efficient allocation and use of resources.

Removed3. The provision of macro-financial assistance shall not fall within the scope of this Facility.

Removed4. Support from the Facility shall be additional and complementary to the support provided under other Union programmes and instruments. Activities eligible for funding under this Regulation may receive support from other Union programmes and instruments provided that such support does not cover the same cost and that appropriate oversight and budget control is ensured. The Commission shall ensure complementarities and synergies between the Facility and other Union programmes, with a view to avoiding the duplication of assistance and double funding.

Removed5. In order to promote the complementarity, coherence and efficiency of their actions, the Commission and the Member States shall cooperate and shall strive to avoid duplication and ensure synergies between assistance under this Regulation and other forms of assistance, including integrated financial packages composed of both export and development financing provided by the Union, Member States, third countries, multilateral and regional organisations and entities, such as international organisations and the relevant international financial institutions, agencies and non-Union donors, in line with the established principles for strengthening operational coordination in the field of external assistance, including through enhanced coordination with Member States at local level. Such coordination at local level shall involve regular and timely consultations and frequent exchanges of information throughout the implementation of the Facility.

Removed5a. In order to maximise international support, it shall be possible for Member States, third countries, international organisations, international financial institutions or other sources to contribute to the implementation of the Facility. Such contributions shall be implemented in accordance with the same rules and conditions and shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d) and (e), of Regulation (EU, Euratom) 2024/2509.

Removed6. Activities under the Facility shall mainstream and promote democracy, human rights and gender equality, progressively align with the social, climate and environmental standards of the Union, mainstream climate change mitigation and adaptation, where relevant, disaster risk reduction, environmental protection and biodiversity conservation, including through, where appropriate, environmental impact assessments, and shall support progress towards the Sustainable Development Goals, promoting integrated actions that can create co-benefits and meet multiple objectives in a coherent way. Those activities shall avoid stranded assets, and shall be guided by the principles of ‘do no significant harm’ and of ‘leaving no one behind’, as well as by the sustainability mainstreaming approach underpinning the European Green Deal. At least 37 % of the non-repayable financial support, including provisioning, provided to investment projects approved under the Neighbourhood Investment Platform (NIP) should account to climate objectives.

Removed7. Moldova and the Commission shall ensure that gender equality, gender mainstreaming and the integration of a gender perspective are taken into account and promoted throughout the preparation of the Reform Agenda and the implementation of the Facility. Moldova and the Commission shall take appropriate steps to prevent any discrimination based upon gender, racial or ethnic origin, religion or belief, disability, age or sexual orientation. The Commission shall report on these measures in the context of its regular reporting under the Gender Action Plans.

Removed8. The Facility shall not support activities or measures which are incompatible with Moldova’s Energy and Climate Plans, their Nationally Determined Contribution under the Paris Agreement, and ambition to reach climate-neutrality by 2050 at the latest or that promote investments in fossil fuels, or that cause significant adverse effects on the environment, the climate or biodiversity, while taking into account possible transitional arrangements, in line with existing Union legislation, to mitigate energy crises.

Removed9. In line with the principle of inclusive partnership, the Commission shall ▌ensure, as appropriate, democratic scrutiny in the form of consultation by Moldova’s government of the parliament of Moldova as well as of relevant stakeholders, including local and regional authorities, social partners and civil society, including vulnerable groups, refugees, and all minorities and communities, as relevant, so as to allow them to participate in shaping the design and the implementation of activities eligible for funding under the Facility and in the related monitoring, scrutiny and evaluation processes, as relevant. That consultation shall seek to represent the pluralism of Moldova’s society. In addition, the Commission shall ensure that civil society in Moldova, including non-governmental organisations, is able to directly report any irregularities concerning funding or final beneficiaries to the Commission via appropriate standing channels, as well as to send to the Commission opinions on the implementation of the Reform Agenda and the evaluation of its measures by the Moldovan government.

Removed10. The Commission, in close cooperation with the Member States and Moldova, shall ensure the implementation of Union commitments to increased transparency and accountability in the delivery of support, including by promoting the implementation and reinforcement of internal control systems and anti-fraud policies. The Commission shall make information on the volume and allocation of support publicly available through the Scoreboard referred to in Article 24. Moldova shall publish up-to-date data on final recipients receiving Union funds for the implementation of reforms and investments under this Facility, as described in Article 20.

RemovedPreconditions for Union support

Removed1. Preconditions for the support under the Facility shall be that Moldova upholds and respects effective democratic mechanisms, including a multi-party parliamentary system, free and fair elections, pluralistic media, meaningful engagement of the civil society, an independent judiciary and the rule of law, and guarantee respect for all human rights obligations, including the rights of persons belonging to minorities.

Removed2. The Commission shall monitor the fulfilment of the preconditions set out in paragraph 1 before funds, including pre-financing, are released to Moldova under the Facility and throughout the period of the support provided under the Facility taking duly into account the enlargement policy framework. The Commission shall also take into account the relevant recommendations of international bodies, such as the Council of Europe and its Venice Commission, or the Office for Democratic Institutions and Human Rights of the Organization for Security and Co-operation in Europe (OSCE) in the monitoring process.

Removed3. The Commission may adopt a decision concluding that some of the preconditions set out in paragraph 1 of this Article are not met, and in particular, withhold the release of funds referred to in Article 19, irrespective of whether the payment conditions referred to in Article 10 are fulfilled.

RemovedFinancing and implementation

RemovedImplementation

Removed1. The Facility shall be supported with resources from the Neighbourhood, Development and International Cooperation Instrument – Global Europe amounting to EUR 420 million and a maximum amount of EUR 1 500 million in loans. The amount for loans shall not constitute part of the amount of the External Action Guarantee within the meaning of Article 31(4) of Regulation (EU) 2021/947.

Removed2. The non-repayable financial support shall be financed for the period from 1 January 2025 to 31 December 2027 from the envelope allocated to the Neighbourhood geographic programme under Article 6(2), point (a) of Regulation (EU) 2021/947. It shall cover▌ support provided by the Union for projects approved under the NIP, as referred to in Article 18(2)and complementary support, including support to civil society organisations and technical assistance. That funding shall be implemented in accordance with Regulation (EU) 2021/947. The provisioning for loans amounting to EUR 135 million shall be covered from the NDICI-Global Europe Emerging challenges and priorities cushion in accordance with Articles 6(3) and 17 of Regulation (EU) 2021/947.

RemovedDecisions on the release referred to in Article 19(3) for the support in the form of loans shall be adopted in the period from 1 January 2025 to 30 June 2029.

Removed3. The release of the Union’s assistance shall be managed by the Commission in a manner consistent with the key principles and objectives of reforms set out in the Reform Agenda. All funds, with the exception of complementary support referred to in paragraph 2, and resources referred to in paragraph 5 and the exceptional bridge financing shall be provided in twice-yearly instalments based on the completion of the necessary reforms in the specified timelines as agreed in the reform agenda and agreed in the Commission Implementing Decision.

Removed4. At least 25% part of the loan component released to Moldova shall be made available by Moldova to investment projects approved under the NIP, one of the regional investment platforms referred to in Article 32 of Regulation (EU) 2021/947. The Facility Agreement, referred to in Article 8, shall detail this obligation, as well as the detailed rules and principles for implementation. Failure to comply with this obligation shall trigger suspension of further operations under this Facility and recovery of said amounts from Moldova, as referred to in Article 19.

Removed4a Complementary support shall correspond to at least 20 % of total non-repayable financial support as referred to in Article 6(2) and shall include measures to strengthen the administrative capacities of Moldovan authorities and other stakeholders, including local and regional authorities, social partners and civil society organisations.

Removed5. An amount of up to 1% of the non-repayable support referred to in paragraph 2 may be used for technical and administrative assistance for the implementation of the Facility, such as preparatory actions, monitoring, control, audit and evaluation activities, which are required for the management of the Facility and the achievement of its objectives, in particular studies, meetings of experts, training consultations with Moldova’s authorities, conferences, consultation of stakeholders, including local and regional authorities and civil society organisations, information and communication activities, including inclusive outreach actions▌insofar as they are related to the objectives of this Regulation, expenses linked to IT networks focusing on information processing and exchange, corporate information technology tools, as well as all other expenditure at headquarters and Union delegation for the administrative and coordination support required for the Facility. Expenses may also cover the costs of activities supporting transparency and of other activities such as quality control and monitoring of projects or programmes on the ground and the costs of peer counselling and experts for the assessment and implementation of reforms and investments.

Removed5a Member States, third countries, international organisations, international financial institutions or other sources may provide additional financial contributions to the Facility. Such contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d) and (e), of Regulation (EU, Euratom) 2024/2509. Additional amounts received as external assigned revenue within the meaning of Article 21(2) of Regulation (EU, Euratom) 2024/2509 under the relevant Union legal acts shall be added to the resources referred to in Article 6(1) and be implemented in accordance with the same rules and conditions.

RemovedRules on the eligibility of persons and entities, on the origin of supply and materials and on restrictions under the Facility

Removed1. By way of derogation from Article 28 of Regulation (EU) 2021/947, participation in procurement and in grant award procedures for activities financed under the Facility shall be open to international and regional organisations and to all natural persons who are nationals of, or legal persons effectively established in:

Removed(a) Member States, Moldova, candidate countries and contracting parties to the Agreement on the European Economic Area;

Removed(b) countries which provide a level of support to Moldova comparable to that provided by the Union, taking into account the size of their economy, and for which reciprocal access to external assistance in Moldova is established by the Commission.

Removed2. The reciprocal access referred to in paragraph 1, point (b), may be granted for a limited period of at least one year where a country grants eligibility on equal terms to entities from the Union and from countries eligible under the Facility.

RemovedThe Commission shall decide on the reciprocal access after consulting Moldova.

Removed3. All supplies and materials financed and procured under this Facility shall originate from any country referred to in paragraph 1, points (a) and (b), unless those supplies and materials cannot be sourced under reasonable conditions in any of those countries. In addition, the rules on restrictions laid down in paragraph 6 shall apply.

Removed4. The eligibility rules under this Article shall not apply to, and shall not create nationality restrictions for, natural persons employed or otherwise legally contracted by an eligible contractor or, where applicable, subcontractor except where the nationality restrictions are based on the rules provided for in paragraph 6.

Removed5. For activities jointly co-financed by an entity or implemented under direct management or indirect management with entities referred to in Article 62(1), first subparagraph, point (c) of Regulation (EU, Euratom) 2024/2509, the rules applicable to those entities shall also apply in addition to the rules established under this Article, including, where applicable, the restrictions provided for under paragraph 6 of this Article and duly reflected in the financing agreements and contractual documents signed with those entities.

Removed6. The eligibility rules and rules on the origin of supplies and materials set out in paragraphs 1 and 3 and rules on the nationality of the natural persons as set out in paragraph 4 may be restricted with regard to the nationality, geographical location or nature of the legal entities participating in award procedures, as well as with regard to the geographical origin of supplies and materials where:

Removed(a) such restrictions are required on account of the specific nature or objectives of the activity or specific award procedure or where those restrictions are necessary for the effective implementation of the activity;

Removed(b) the activity or specific award procedures affect security or public order, in particular concerning strategic assets and interests of the Union, of Member States, or of Moldova, including the security, resilience and protection of integrity of digital infrastructure, including 5G network infrastructure, communication and information systems, and related supply chains.