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dossier COM(2024)469 - .
document COM(2024)469
datum 9 oktober 2024


 


CHAPTER I

General Provisions


Article 1

Subject matter

1. This Regulation establishes the Reform and Growth Facility for Moldova for the period 2025-2027 (the ‘Facility’).

2. The Regulation shall provide assistance to Moldova for the delivery of EU-related reforms, in particular inclusive and sustainable socio-economic reforms and reforms concerning fundamentals of the enlargement process, aligned with Union values, as well as investments to implement Moldova’s Reform Agenda.

3. The rules set out in Regulation (EU) 2021/947 shall apply to the implementation of the Facility, unless specified otherwise in this Regulation.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘Moldova’ means the Republic of Moldova.

(2) ‘Facility Agreement’ means an arrangement concluded between the Commission and Moldova laying down the principles for the financial cooperation between Moldova and the Commission under this Regulation; this arrangement constitutes a financing agreement within the meaning of Article 114(2) of Regulation (EU, Euratom) 2024/2509 ;

(3) ‘enlargement policy framework’ means the overall policy framework for the implementation of this Regulation as defined by the European Council and the Council, and includes the revised enlargement methodology, agreements that establish a legally binding relationship with Moldova, the negotiating frameworks governing accession negotiations with candidates, where applicable, as well as resolutions of the European Parliament, relevant communications from the Commission, including, where applicable, on the rule of law, and joint communications from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy

(4) ‘loan agreement’ means an agreement concluded between the Union and Moldova laying down the terms of the loan support under the Facility;

(5) ‘Reform Agenda’ means a comprehensive, coherent and prioritised set of targeted reforms and priority investment areas in Moldova, including payment conditions that indicate satisfactory progress or completion of related measures, and an indicative timetable for their implementation;

(6) ‘measures’ means reforms and investments as set out in the Reform Agenda under Chapter III;

(7) ‘payment conditions’ means conditions for the release of funds that take the form of observable and measurable qualitative or quantitative steps to be implemented by Moldova, as set out in the Reform Agenda under Chapter III;

(8) ‘blending operation’ means an operation supported by the Union budget that combines non-repayable forms of support from the Union budget with repayable forms of support from development or other public financial institutions, including export credit agencies, or from commercial finance institutions and investors;

(9) ‘final recipient’ means a person or entity receiving funding under the Facility; for the part of the funding that is made available as financial assistance, final recipient will be the treasury of Moldova; for the part of the funding that is made available through the Neighbourhood Investment Platform, final recipient will be the contractor or sub-contractor implementing the investment project;

(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;

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


Article 3

Objectives of the Facility

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

(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;

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

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

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


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

(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; this includes promoting an independent judiciary, reinforcing security and stability, strengthening the fight against fraud and all forms of corruption, including high-level corruption 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; enabling an environment for civil society, fostering social dialogue; promoting gender equality, gender mainstreaming and the empowerment of women and girls, 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;

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

(c) fight disinformation and Foreign Information Manipulation and Interference against the Union and its values;

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

(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;

(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;

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

(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;

(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;

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

(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;

(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.


Article 4

General principles

1. 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.

2. Cooperation under the Facility shall be needs-based and shall promote the development effectiveness principles, namely ownership of development priorities by Moldova a focus on clear conditionality and tangible results, inclusive partnerships, transparency and mutual accountability. That cooperation shall be based on an effective and efficient allocation and use of resources.

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

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. In line with the principle of inclusive partnership, the Commission shall strive to ensure, as appropriate, democratic scrutiny in the form of consultation by Moldova’s government of its parliament 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.

10. 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.

Article 5

Preconditions for Union support

1. 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, an independent judiciary and the rule of law, and guarantee respect for all human rights obligations, including the rights of persons belonging to minorities.

2. 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.

3. 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.


CHAPTER II

Financing and implementation

Article 6

Implementation

1. 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.

2. 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 provisioning for loans amounting to EUR 135 million, 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.

Decisions 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.

3. 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, 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.

4. 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.

5. 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, and the corporate communication of the political priorities of the Union, 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.

Article 7

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

1. 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:

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

(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.

2. 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.

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

3. 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.

4. 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.

5. 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.

6. 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:

(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;

(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.

7. Tender applicants and candidates from non-eligible countries may be accepted as eligible in cases of urgency or where services are unavailable in the markets of the countries or territories concerned, or in other duly substantiated cases where the application of the eligibility rules would make the realisation of an activity impossible or exceedingly difficult.

8. In the framework of the Union’s restrictive measures, adopted on the basis of Article 29 TEU and Article 215 TFEU, no funds or economic resources may be made available, directly or indirectly, to or for the benefit of legal persons, entities or bodies subject to Union restrictive measures. Such persons and entities, and entities owned or controlled by them, shall not be supported by the Facility either directly or indirectly, including as indirect owners, sub-contractors in the supply chain or ultimate beneficiaries.

Article 8

Facility Agreement

1. The Commission shall conclude a Facility Agreement with Moldova for the implementation of this Regulation setting out the obligations and payment conditions for the disbursement of funding.

2. The Facility Agreement shall be complemented by a loan agreement in accordance with Article 15, setting out specific provisions for the management and implementation of funding provided in the form of a loan. The Facility Agreement, including any related documentation, shall be made available, upon request, to the European Parliament and the Council simultaneously and without delay.

3. Funding shall be granted to Moldova only after the Facility Agreement and the loan agreement have entered into force.

4. The Facility Agreement and the loan agreement concluded with Moldova shall ensure that the obligations set out in Article 129 of Regulation (EU, Euratom) 2024/2509 are fulfilled.

5. The Facility Agreement shall lay down the necessary detailed provisions concerning:

(a) the commitment of Moldova to make decisive progress towards a robust legal framework to fight fraud, and establish more efficient and effective control systems, including appropriate mechanisms for the protection of whistleblowers as well as appropriate mechanisms and measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest as well as to strengthen the fight against money laundering, organised crime, misuse of public funds, terrorism financing, tax avoidance, tax fraud or tax evasion, and other illegal activities affecting the funds provided under the Facility;

(b) the rules on the release, withholding and reduction of funds in accordance with Article 19;

(c) the detailed rules on and the obligation of Moldova to provide part of total loan amount for projects approved under the NIP, pursuant to Art. 6(4).

(d) the activities related to management, control, supervision, monitoring, evaluation, reporting and audit, as well as system reviews, investigations, anti-fraud measures and cooperation;

(e) the rules on reporting to the Commission on whether and how the payment conditions referred to in Article 10 are fulfilled;

(f) the rules on taxes, duties and charges in accordance with Article 27(9) and (10) of Regulation (EU) 2021/947;

(g) the measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest, and the obligation for persons or entities implementing Union funds under the Regulation to notify the Commission, OLAF and, where applicable, EPPO, without delay, of suspected or actual cases of irregularities, fraud, corruption and conflicts of interest and other illegal activities affecting the funds provided under the Facility and their follow-up;

(h) the obligations referred to in Articles 21 and 22, including the precise rules and a timeframe on collection of data by Moldova and access to it for the Commission, OLAF, the Court of Auditors and, where applicable, EPPO;

(i) a procedure to ensure that disbursement requests for loan support fall within the available loan amount, in accordance with Article 6(1);

(j) the right of the Commission to reduce proportionately the support provided under the Regulation and to recover any amount referred to in Article 6(1) spent to achieve the objectives of the Regulation, or to ask for early repayment of the loan, in cases of irregularities, fraud, corruption and conflicts of interest affecting the financial interests of the Union that have not been corrected by Moldova, of a reversal of qualitative or quantitative steps, or of a serious breach of an obligation provided for in the Facility Agreement;

(k) rules and modalities for Moldova to report for the purpose of monitoring the implementation of the Facility and assessing the achievement of the objectives set out in Article 3.

(l) the obligation for Moldova to transmit electronically to the Commission the data referred to in Article 20.


CHAPTER III

Reform Agenda


Article 9

Submission of Reform Agenda

1. In order to receive any support under this Regulation, Moldova shall submit to the Commission a Reform Agenda for 2025-2027 based on the key principles and objectives of socio-economic and fundamental reforms set out in the EU-Moldova Association Agreement, agreed under the European Neighbourhood Policy, and the enlargement policy framework.

2. The Reform Agenda shall provide an overarching framework to achieve the general and specific objectives set out in Article 3, setting out the reforms to be undertaken by Moldova, as well as investment areas. The Reform Agenda shall comprise measures for the implementation of reforms through a comprehensive and coherent package. In the areas of the fundamentals of the enlargement process, including the rule of law, the fight against corruption, including high-level corruption, fundamental rights and the freedom of expression, the Reform Agendas shall reflect the assessments in the enlargement policy framework.

3. The Reform Agendas shall be consistent with the latest macroeconomic and fiscal policy framework submitted to the Commission in the context of the Economic and Financial Dialogue with the Union.

4. The Reform Agenda shall be consistent with and support the reform priorities identified in the context of Moldova’s accession path, and in other relevant documents, the Nationally Determined Contribution under the Paris Agreement and the ambition to reach climate neutrality by 2050 at the latest.

5. The Reform Agenda shall respect the general principles set out in Article 4.

6. The Reform Agenda shall be prepared in an inclusive and transparent manner, in consultation with social partners and civil society organisations.

7. The Commission shall invite Moldova to submit its Reform Agenda within three months of the entry into force of this Regulation. The Commission shall transmit Moldova’s Reform Agenda to the European Parliament and the Council as soon as it is received.


Article 10

Principles for financing under the Reform Agenda

8. The Regulation shall provide incentives for the implementation of the Reform Agenda by setting payment conditions on the release of funds. Those payment conditions shall apply to funds under Article 6(1), with the exception of complementary support including support to civil society organisations and technical assistance. Those payment conditions shall take the form of measurable qualitative or quantitative steps. Such steps shall reflect progress on specific socio-economic reforms and on the fundamentals of the enlargement process linked to the achievement of the objectives of the Facility set out in Article 3, consistent with the enlargement policy framework.

9. The fulfilment of those payment conditions shall trigger full or partial release of funds, depending on the degree of their completion.

10. Macro financial stability, sound public financial management, transparency and oversight of the budget are general conditions for payments that shall be fulfilled for any release of funds.

Funds under the Facility shall not support activities or measures which undermine peace agreements in the region.

Article 11

Content of the Reform Agenda

1. The Reform Agenda shall in particular set out the following elements, which shall be reasoned and substantiated:

(a) measures constituting a coherent, comprehensive and adequately balanced response to the objectives set out in Article 3, including structural reforms, investments, and measures to ensure compliance with preconditions referred to in Article 5, where appropriate;

(b) an explanation of how the measures are consistent with the general principles referred to in Article 4, as well as the requirements, strategies, plans and programmes referred to in Articles 4 and 10;

(c) an explanation of how the measures are expected to further strengthen the fundamentals of the enlargement process as referred to in Article 3(2), point (n), including the rule of law, fundamental rights and the fight against corruption;

(d) an indicative list of investment projects and programmes intended for discussion and approval under the NIP,, including respective overall investment volumes and envisaged timelines for implementation;

(e) an explanation of the extent to which the measures are expected to contribute to climate and environmental objectives and their compatibility with the principle ‘do no significant harm’;

(f) an explanation of the extent to which the measures are expected to contribute to digital transformation;

(g) an explanation of the extent to which the measures are expected to contribute to education, training and employment and social objectives;

(h) an explanation of the extent to which the measures are expected to contribute to gender equality and the empowerment of women and girls, and the promotion of women and girls’ rights;

(i) for the reforms and investments, an indicative timetable, and the envisaged payment conditions for the release of funds in the form of measurable qualitative and quantitative steps planned to be implemented by 31 December 2027 at the latest;

(j) an explanation of how the measures are expected to contribute to a progressive and continuous alignment with the CFSP, including Union restrictive measures;

(k) the arrangements for the effective monitoring, reporting and evaluation of the Reform Agenda by Moldova, including the proposed measurable qualitative and quantitative steps and relevant indicators set out in paragraph 2;

(l) an explanation of Moldova’s system to effectively prevent, detect and correct irregularities, fraud, corruption, including high-level corruption, and conflicts of interest and to enforce State aid control rules, and the proposed measures to address existing deficiencies in the first years of the implementation of the Reform Agenda;

(m) for the preparation and, where available, for the implementation of the Reform Agenda, a summary of the consultation process, conducted in accordance with Moldova’s legal framework, of relevant stakeholders, including Moldova’s parliament, local and regional representative bodies and authorities, social partners and civil society organisations, and how the input of those stakeholders is reflected in the Reform Agenda;

(n) a communication and visibility plan on the Reform Agenda for the local audiences of Moldova;

(o) any other relevant information.

2. The Reform Agenda shall be results-based and include indicators for assessing progress towards the achievement of the general and specific objectives set out in Article 3. Those indicators shall be based, where appropriate and relevant, on internationally agreed indicators and those already available related to the Moldova’s policies. Indicators shall also be coherent, to the extent possible, with the key performance indicators included in Commission Implementing Decision approving the Reform Agendas for the Western Balkans under Regulation (EU) 2024/1449 and in the EFSD+ Results Measurement Framework.

Article 12

Commission assessment of the Reform Agenda

1. The Commission shall assess the relevance, comprehensiveness and appropriateness of Moldova’s Reform Agenda or, where applicable, any amendment to that Agenda, without undue delay. When carrying out its assessment, the Commission shall act in close cooperation with Moldova, and may make observations, seek additional information or require Moldova to review or modify its Reform Agenda.

2. As regards the objective set out in Article 11(1)(j) of this Regulation, the Commission, in accordance with Decision 2010/427/EU, shall duly take into account the role and the contribution of the EEAS.

3. When assessing the Reform Agenda, the Commission shall take into account relevant available analytical information about Moldova, including its macroeconomic situation and debt sustainability, the justification and the elements provided by Moldova as referred to in Article 13, as well as any other relevant information such as the information listed in Article 11.

4. In its assessment, the Commission shall consider in particular the following criteria:

(a) whether the Reform Agenda represents a relevant, comprehensive, coherent and adequately balanced response to the objectives set out in Article 3 and elements set out in Article 11;

(b) whether the Reform Agenda and its measures are consistent with the principles, strategies, plans and programmes referred to in Articles 4 and 11;

(c) whether the Reform Agenda can be expected to accelerate progress towards bridging the socio-economic gap between Moldova and the Union, and thereby enhances their economic, social and environmental development and supports the convergence towards the Union’s standards, reduces inequalities and reinforces social cohesion;

(d) whether the Reform Agenda can be expected to further strengthen the fundamentals of the enlargement process as referred to in Article 3(2), point (a);

(e) whether the Reform Agenda can be expected to accelerate the transition of Moldova towards sustainable, climate-neutral and climate resilient and inclusive economy by improving connectivity, making progress on the twin transition of green and digital, including biodiversity, reducing strategic dependencies and boosting research and innovation, education, training, employment and skills and the wider labour market, with particular attention on youth;

(f) whether the measures included in the Reform Agenda are compatible with the principles of ‘do no significant harm’ and of ‘leaving no one behind’;

(g) whether the Reform Agenda appropriately addresses potential risks in compliance with preconditions and payment conditions;

(h) whether the payment conditions proposed by Moldova are appropriate and ambitious, consistent with the enlargement policy framework, as well as sufficiently meaningful and clear to allow for the corresponding release of funds in case of their fulfilment and whether the proposed reporting indicators are appropriate and sufficient to monitor and report on the progress made towards the overall objectives;

(i) whether the arrangements proposed by Moldova are expected to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest, organised crime and money laundering as well as to effectively investigate and prosecute criminal offences affecting the funds under the Facility,;

(j) whether the Reform Agenda effectively reflects the input of relevant stakeholders, including Moldova’s parliament, local and regional representative bodies and authorities, social partners and civil society organisations.

5. For the purpose of the assessment of the Reform Agenda submitted by Moldova, the Commission may be assisted by independent experts.

Article 13

Commission Implementing Decision

1. 1. In case of positive assessment, the Commission shall approve by means of an implementing decision the Reform Agenda submitted by Moldova, in accordance with Article 12 or, where applicable, of the amended Agenda submitted in accordance with Article 14. The provisions of Article 25(2) shall apply to the adoption of that implementing decision.

2. The Commission implementing decision, referred to in paragraph 1, shall set out the reforms to be implemented by Moldova concerned, the investment areas to be supported and the payment conditions stemming from the Reform Agenda, including the timetable.

3. The Commission implementing decision, referred to in paragraph 1, shall also lay down:

(a) the indicative amount of overall funds available to Moldova against fulfilment of payment conditions, as referred in Article 10(1), and the scheduled instalments to be released, including pre-financing, structured in accordance with Article 11, once Moldova has achieved satisfactory fulfilment of the relevant payment conditions in the form of qualitative and quantitative steps identified in relation to the implementation of the Reform Agenda;

(b) the breakdown by instalment of financing between loan support and non-repayable support;

(c) the time limit by which the final payment conditions for the reforms must be completed;

(d) the arrangements and timetable for the monitoring, reporting and implementation of the Reform Agenda, including, where appropriate, through democratic scrutiny as referred to in Article 4 as well as, where relevant, measures necessary for complying with Article 23.

(e) the indicators referred to in Article 11(2) for assessing progress towards the achievement of the general and specific objectives set out in Article 3.

Article 14

Amendments to the Reform Agenda

1. Where the Reform Agenda, including relevant payment conditions, is no longer achievable by Moldova, either partially or totally, because of objective circumstances, Moldova may propose an amended Reform Agenda. In that case, Moldova may make a reasoned request to the Commission to amend its implementing decision referred to in Article 13(1).

2. The Commission may amend the implementing decision, in particular to take into account a change of the amounts available in line with the principles under Article 19.

3. Where the Commission considers that the reasons put forward by Moldova justify an amendment to its Reform Agenda, the Commission shall assess the amended Agenda in accordance with Article 12 and may amend the implementing decision referred to in Article 13(1) without undue delay.

4. In an amendment, the Commission may accept timelines for payment conditions extending until 31 December 2028.

Article 15

Loan agreement, borrowing and lending operations

1. In order to finance the support under the Facility in the form of loans, the Commission shall be empowered on behalf of the Union to borrow the necessary funds on the capital markets or from financial institutions in accordance with Article 224 of Regulation (EU, Euratom) 2024/2509.

2. The Commission shall enter into a loan agreement with Moldova. The loan agreement shall lay down the maximum loan amount, the availability period and the detailed terms and conditions of the support under the Facility in the form of loans. The loans shall have maximum duration of 40 years from the date of the signature of the loan agreement. The loan agreement shall contain the amount of pre-financing and rules on clearing of pre-financing.

In addition to and by way of derogation from Article 220(5) of the Financial Regulation, the loan agreement shall contain the amount of pre-financing and rules on clearing of pre-financing.

3. The loan agreement shall be made available, upon request, to the European Parliament and the Council.

Article 16

Provisioning

1. Provisioning for the loans shall be constituted at the rate of 9 % from the envelope allocated to the Neighbourhood geographic programme under Article 6(2), point (a) of Regulation (EU) 2021/947 and shall be used as part of provisions supporting similar risks.

2. By way of derogation from Article 211 (2), last sentence, of the Financial Regulation, the provisioning shall be paid progressively and fully constituted at the latest when the loans are fully disbursed.

3. The provisioning rate shall be reviewed at least every three years from the date of application of this Regulation in line with the procedure foreseen under Article 31(5), fourth subparagraph, of the Regulation (EU) 2021/947.


Article 17

Pre-financing

1. Following the submission of the Reform Agenda to the Commission, Moldova may request the release of a pre-financing of up to 7 % of the total amount foreseen under this Facility in accordance with Article 6(1), after deduction of complementary support, including support to civil society organisations and technical assistance, and provisioning for loans.

2. The Commission may release the requested pre-financing after the adoption of its implementing decision referred to in Article 13 and the entry into force of the Facility Agreement and of the loan agreement referred to in Articles 8 and 15 respectively. The funds shall be released in accordance with Article 19(3), first sentence, and subject to the respect of the preconditions set out in Article 5.

3. The Commission shall decide on the timeframe for the disbursement of the pre-financing, which may be disbursed in one or more tranches.


Article 18

Implementation of investment projects under the Neighbourhood Investment Platform

1. In order to benefit from the leverage of Union financial support to attract additional investment, investments supporting the Reform Agenda shall be implemented in cooperation with international financial institutions in the form of investment projects approved under the Neighbourhood Investment Platform.

2. Following satisfactory fulfilment of payment conditions, the Commission will adopt a decision authorising a release of funds, as referred to in Article 19(3). This decision shall, in accordance with Article 6(1), set the amount of funds to be made available in the form of non-repayable support provided by the Union for projects approved under the NIP, and the amount of financial assistance in the form of loan support to be released to Moldova. This decision shall also set out, in accordance with the ratio set in the Facility Agreement as referred to in Article 8(5)(c), the share of this loan support to be made available by Moldova as co-financing for projects approved under the NIP.

Article 19

Assessment of the fulfilment of payment conditions, withholding and reduction of funds, rules on payments

1. Twice per year, Moldova shall submit a duly justified request for the release of funds at the latest two months after the timeline set in the Commission Implementing Decision in respect of fulfilled payment conditions related to the quantitative and qualitative steps as set out in the Reform Agenda.

2. The Commission shall assess without undue delay whether Moldova has met the preconditions set out in Article 5 and the principles for financing set out in Article 10(3) and achieved satisfactory fulfilment of the payment conditions set out in the Commission implementing decision referred to in Article 13. In case the Commission finds that payment conditions for which it had previously paid have been reversed by Moldova, the Commission will reduce future disbursements by an equivalent amount. The Commission may be assisted by experts, including experts from Member States. In the event that a request for the release of funds or a request for payment includes a step related to Chapter 32, referred to in Article 19(2), the Commission may not adopt a decision authorizing the release of funds unless it assesses such step positively.

3. Where the Commission makes a positive assessment of the satisfactory fulfilment of all applicable conditions, it shall adopt without undue delay a decision authorising the release of funds corresponding to those conditions. In respect of those amounts, the decision shall constitute the condition referred to in Article 10.

4. Where the Commission makes a negative assessment of the fulfilment of any conditions as per the timetable, the release of funds corresponding to such conditions shall be withheld. The withheld amounts shall be released only when Moldova has duly justified, as part of the subsequent request for release of funds, that it has taken the necessary measures to ensure satisfactory fulfilment of the corresponding conditions.

5. Where the Commission concludes that Moldova has not taken the necessary measures within a period of 12 months from the initial negative assessment referred to in paragraph 4, the Commission shall reduce the amount of the non-repayable financial support and of the loan proportionately to the part corresponding to the relevant payment conditions. During the first year of implementation, a deadline of 24 months shall apply, calculated from the initial negative assessment referred to in paragraph 4. Moldova may present its observations within two months from the communication to them of the Commission’s conclusions.

6. Any amount corresponding to payment conditions that have not been fulfilled by 31 December 2028 shall not be due to Moldova and shall be decommitted, or cancelled from the available amount of loan support, as appropriate.

7. The Commission may reduce the amount of the non-repayable financial support and recover from Moldova, including by offsetting, any amount spent to achieve the objectives of the Facility, or to reduce the amount of the loan to be disbursed to Moldova or request early repayment of the loan in accordance with the loan agreement, in the event of funds unduly paid, identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interest affecting the financial interests of the Union that have not been corrected by Moldova, or of a reversal of qualitative or quantitative steps or in cases it is found, after the payment has taken place, that steps were not satisfactorily fulfilled, or of a serious breach of an obligation resulting from the Facility Agreements or from the loan agreements-, including on the basis of information provided by OLAF or of the Court of Auditors’ reports. The Commission shall inform the European Parliament and the Council prior to taking any decision of such reductions.

8. By way of derogation from Article 116(2) of the Financial Regulation, the payment deadline as referred to in Article 116(1), point (a), of the Financial Regulation shall start running from the date of the communication of the decision authorising the disbursement to Moldova pursuant to paragraph 3 of this Article.

9. Article 116(5) of the Financial Regulation shall not apply to payments made as financial assistance, channelled directly to Moldova’s treasury pursuant to this Article and to Article 23 of this Regulation.

10. Payments of the non-repayable financial support and of the loans under this Article shall be made in accordance with the budget appropriations, as set in the annual budgetary procedure, and subject to the available funding, respectively. Funds shall be paid in instalments. An instalment may be paid in one or more tranches.

11. The amounts shall be paid following the decision referred to in paragraph 3 in accordance with the loan agreement.

12. Payment of any amount of the support in the form of loans shall be subject to the submission by Moldova of a request for payment in the form set out in the loan agreement, , and in accordance with the provisions set out in the Facility Agreement. This shall not apply to payment of pre-financing.


Article 20

Transparency with regard to persons and entities receiving funding for the implementation of the Reform Agenda

1. Moldova shall publish up-to-date data on final recipients receiving amounts of funding exceeding the equivalent of EUR 50 000 cumulatively over the period of three years for the implementation of reforms and investments under this Facility.

2. For final recipients referred to in paragraph 1, the following information shall be published in a machine- readable format on a webpage, in order of total funds received, having due regard to the requirements of confidentiality and security, in particular the protection of personal data:

(a) in the case of a legal person, the recipient’s full legal name and VAT identification number or tax identification number, where available, or another unique identifier established by the legislation applicable to the legal person;

(b) in the case of a natural person, the first and last name or names of the recipient;

(c) the amount received by the recipient and the reforms and investments under the Moldova Facility that this amount contributes to implementing.

3. The information referred to in paragraph 2 shall not be published where disclosure risks threatening the rights and freedoms of the final recipients concerned or seriously harming their commercial interests. Such information shall be made available to the Commission.

4. Moldova shall transmit electronically to the Commission at least once a year the data on the final recipients referred to in paragraph 1 of this Article, in a machine-readable format to be defined in the Facility Agreement, as referred to in Article 8(5)(l).


CHAPTER IV

Protection of financial interests of the Union


Article 21

Protection of the financial interests of the Union

1. In implementing the Facility, the Commission and Moldova shall take all the appropriate measures to protect the financial interests of the Union, taking into account the principle of proportionality and the specific conditions under which the Facility will operate, the preconditions set out in Article 5(1) and conditions set out in the specific Facility Agreements, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interest and irregularities as well as the investigation and prosecution of offences affecting the funds provided under the Facility. Moldova shall commit to progressing towards effective and efficient management and control systems and ensure that amounts wrongly paid or incorrectly used can be recovered.

2. The Facility Agreement shall provide for the following obligations of Moldova:

(a) to regularly check that the financing provided has been used in accordance with the applicable rules, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interest and irregularities;

(b) to protect whistleblowers;

(c) to take appropriate measures to prevent, detect and correct fraud, corruption, conflicts of interest and irregularities as well as to investigate and prosecute criminal offences affecting the financial interests of the Union, to detect and avoid double funding and to take legal actions to recover funds that have been misappropriated, including in relation to any measure for the implementation of reforms and investment projects or programmes under the Reform Agenda and to take appropriate measures to treat mutual legal assistance requests by EPPO and Member States’ competent authorities concerning criminal offences affecting the funds under the Facility, where applicable and without delay;

(d) for the purpose of paragraph 1, in particular for checks on the use of funds in relation to the implementation of reforms in the Reform Agenda, to ensure the collection of, and access to, in compliance with Union data protection principles and with applicable data protection rules, adequate data on persons and entities receiving funding, including beneficial ownership information, for the implementation of measures of the Reform Agenda under Chapter III;

(e) to expressly authorise the Commission, OLAF, the Court of Auditors and, where applicable, EPPO to exert their rights as provided for in Article 129 of Regulation (EU, Euratom) 2024/2509.

3. The Facility Agreement shall also provide for the right of the Commission to reduce proportionately the amount of the non-repayable financial support provided under the Facility and to recover from Moldova, including by offsetting, any amount spent to achieve the objectives of the Facility and to reduce the amount of the loan to be disbursed to the Beneficiary or request early repayment of the loan in accordance with the loan agreement, in the event of funds unduly paid, identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interest affecting the financial interests of the Union that have not been corrected by Moldova, or in cases it is found, after the payment has taken place, that steps were not satisfactorily fulfilled, or of a serious breach of an obligation resulting from the Facility Agreement or from the loan agreement When deciding on the amount of the recovery and reduction, or the amount to be repaid early, the Commission shall respect the principle of proportionality and shall take into account the seriousness of the irregularity, fraud, corruption or conflict of interest affecting the financial interests of the Union, or of a breach of an obligation. Moldova shall be given the opportunity to present its observations before the reduction is made or early repayment is requested.

4. Persons and entities implementing funds under the Facility shall report any suspected cases of fraud, corruption, conflicts of interest and irregularities affecting financial interests of the Union without delay, to the Commission and to OLAF.


Article 22

Role of Moldova’s internal systems and audit authority

1. For the part of the Facility funding made available as financial assistance, the Commission can rely on the audit authorities established by Moldova for the purpose of controlling public expenditure. As appropriate, the Commission shall also rely on further democratic scrutiny as referred to in Article 4(9).

2. The Reform Agenda shall prioritise in the first years of their implementation reforms related to negotiation Chapter 32, particularly on public financial management and internal control, as well as on the fight against fraud, together with Chapters 23 and 24, particularly when it comes to justice, corruption and organised crime and Chapter 8, particularly on State aid control.

3. Moldova shall report any irregularities, including fraud, which have been the subject of a primary administrative or judicial finding, without delay, to the Commission and shall keep the Commission informed of the progress of any administrative and legal proceedings in relation to such irregularities. Such reporting shall be done by electronic means, using the Irregularity Management System, established by the Commission.

4. The entities referred to in paragraph 1 shall maintain regular dialogue with the Court of Auditors, OLAF and, where appropriate, EPPO.

5. The Commission may carry out detailed systems reviews of Moldova’s budget implementation based on a risk-assessment and dialogue with audit authorities, and issue recommendations for improvements in the systems.

6. The Commission may adopt recommendations to Moldova on all cases where in its views competent authorities have not taken the necessary steps to prevent, detect and correct fraud, corruption, conflicts of interest and irregularities that have affected or seriously risk affecting the sound financial management of the expenditure financed under the Facility and in all cases where it identifies weaknesses affecting the design and functioning of the control system put in place by the those authorities. Moldova concerned shall implement such recommendations or provide a justification on why it has not done so.


CHAPTER V

MONITORING, REPORTING AND EVALUATION


Article 23

Monitoring and reporting

1. The Commission shall monitor the implementation of the Facility and assess the achievement of the objectives set out in Article 3. The monitoring of implementation shall be targeted and proportionate to the activities carried out under the Facility Agreement, and shall be without prejudice to the reporting requirements set out under Regulation (EU) 2021/947. The indicators referred to in Article 11(2) shall be expected to contribute to the Commission’s monitoring of the Facility.

2. The Facility Agreement referred to in Article 8 shall set out rules and modalities for Moldova to report to the Commission for the purpose of paragraph 1 of this Article.

3. The Commission shall provide an annual report to the European Parliament and the Council on progress towards the achievement of the objectives of this Regulation. The annual report shall be complemented by presentations on the state of play of the implementation of the Facility twice per year.

4. The Commission shall provide the annual report referred to in paragraph 3 to the Committee referred to in Article 27(1).

5. The Commission shall report on the progress of the implementation of the Reform Agenda of Moldova in the context of the scoreboard established under Regulation (EU) 2024/1449.


Article 24

Facility scoreboard

6. The Commission shall establish display the progress of the implementation of the Reform Agenda in the Facility scoreboard, established under Regulation (EU) 2024/1449.

Article 25


Evaluation of the Facility

1. After 31 December 2027 and by 31 December 2031 at the latest, the Commission shall carry out an independent ex-post evaluation of the Regulation. That ex-post evaluation shall assess the Union contribution to the achievement of the objectives of this Regulation.

2. The ex-post evaluation shall make use of the good practice principles of the OECD Development Assistance Committee, seeking to ascertain whether the objectives have been met and to formulate recommendations with a view to improving future actions.

3. The Commission shall communicate the findings and conclusions of the ex-post evaluation accompanied by its observations and follow-up, to the European Parliament, the Council and the Member States. That ex-post evaluation may be discussed at the request of the European Parliament, the Council or the Member States. The results shall feed into the preparation of future programmes and actions and resource allocation. That ex-post evaluation and follow-up shall be made publicly available.

4. The Commission shall, to an appropriate extent, associate all relevant stakeholders, including Moldova, social partners, civil society organisations, in the evaluation process of the Union’s funding provided under this Regulation, and may, where appropriate, seek to undertake joint evaluations with the Member States and other partners with close involvement of Moldova.


Article 26

Reporting by Moldova in the context of the Economic and Financial Dialogue

1. The beneficiary shall report once a year in the context of the Economic and Financial Dialogue on the progress made in the achievement of the reform-related part of its Reform Agenda.


CHAPTER VI

FINAL PROVISIONS


Article 27

Committee procedure

1. The Commission shall be assisted by the Committee, established by the Regulation (EU) 2021/947.

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

3. For implementing acts referred to in Articles 13(1) and 14(2), where the committee delivers no opinion, the Commission shall not adopt the draft implementing act and Article 5(4), third subparagraph, of Regulation (EU) No 182/2011 shall apply.


Article 28

Information, communication and publicity

1. Without prejudice to the requirements set out under Regulation (EU) 2021/947, the Commission shall engage in communication activities to ensure the visibility of the Union funding for the financial support envisaged in the Reform Agenda, including through joint communication activities with Moldova. The Commission shall ensure that support under the Facility is communicated and acknowledged through a funding statement. Actions financed under the Facility shall be carried out in accordance with communication and visibility requirements in Union-financed external actions and in other relevant guidelines.

2. The recipient of Union funding shall actively acknowledge the origin and ensure the visibility of the Union funding, including, where applicable, by displaying the emblem of the Union and an appropriate funding statement that reads ‘funded by the European Union’, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.

3. Information, communication and publicity shall be provided in accessible format.

Article 29

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.