Political Association and economic integration

On 27 June 2014, the EU and Moldova signed an ambitious and innovative Association Agreement, including a Deep and Comprehensive Free Trade Area (DCFTA). The agreement provides the basis for stronger political association and economic integration, and promotes common values and enhanced cooperation in areas of mutual interest. On the trade side – the Deep and Comprehensive Free Trade Area makes it easier to export to and import from Moldova, reduces tariffs and makes customs procedures more efficient and speedy. In addition, the agreement facilitates trade further by gradual approximation of Moldovan legislation, rules and procedures, including standards, to those of the EU. The Agreement was provisionally applied from 1 September 2014 until completion of the ratification process, which allowed the full application of the Association Agreement from 1 July 2016.

The EU-Moldova Association Agreement continues to be a driver for reforms and alignment with the EU acquis. An updated EU-Moldova Association Agenda for the period 2021-2027 was adopted on 22 August 2022. It comprises jointly agreed priorities on further implementation of the Association Agreement and sets an ambitious programme of reforms.

The implementation of the Association Agreement is regularly monitored through Association Implementation Reports (the latest report was issued on 19 October 2021), and reviewed in several bilateral dialogue formats provided for under the Association Agreement:

• EU-Moldova Association Council (latest on 7 February 2023)
• EU-Moldova Association Council (latest on 28 October 2021)
• EU-Moldova Association Committee (latest on 17 June 2022)
• EU-Moldova Association Committee in Trade Configuration (last meeting on 29 November 2022)
• Various Sub-committees, including the Sub-committee on Justice, freedom and security, as well as an annual Human Rights Dialogue

Moldova’s candidate country status

In the preamble of the Association Agreement, the EU acknowledged the European aspirations and European choice of Moldova, including their commitment to building a deep and sustainable democracy and market economy.

On 3 March 2022, Moldova submitted its application for EU membership. On 17 June 2022, the European Commission presented its Opinion on Moldova’s application, following which, on 23 June 2022, the European Council recognised Moldova’s European perspective and granted it EU candidate country status.

The Commission’s Opinion presented nine steps that Moldova needs to address to further progress on the enlargement path. Among these nine steps, Moldova is expected to advance on a comprehensive justice reform, combat corruption, address shortcomings identified by OSCE/ODHIR and Venice Commission, step up recovery of assets, reform the public institutions, remove the oligarchs’ influence, as well as strengthen the fight against organised crime.

On 2 February 2023, the Commission published the Analytical report of Moldova’s alignment with the EU acquis (the collection of common rights and obligations that constitute the body of EU law). The analytical report evaluated the legal alignment, as well as the state of preparedness of Moldova to apply the EU acquis. This assessment was done based on the replies to the questionnaires from the three applicant countries (Ukraine, Moldova, Georgia), as well as on relevant information collected over the many years as part of the intensive dialogues under the Association Agreements, including the Deep and Comprehensive Free Trade Areas. This analytical report complements the Commission’s Opinions adopted in June, which focused mainly on the political and economic criteria. The Commission will further monitoring Moldova’s progress on the steps, and on alignment with all of the EU acquis, as part of the regular enlargement package.

Foreign and security policy

The EU also cooperates with Moldova in the area of foreign and security policy. The agreement on establishing a framework for Moldova’s participation in EU crisis management operations was signed on 13 December 2012 (entered into force in July 2013). Since 2014 Moldova participates in the EU crisis management missions (EUTM Mali, EUMAM RCA) with officers currently deployed in EUTM Mali.

Consultations on security and defence with Moldova were established in 2014 and relaunched in 2021, to discuss cooperation on tackling hybrid threats, cyber security, strategic communication, training and capacity building for CSDP missions, support to security sector reform. The 6th EU-Moldova Consultations on Security and Defence took place on 28 November 2022 in Chisinau.

On 18 March 2022, the EU-Moldova high-level political and security dialogue was launched to strengthen cooperation in the framework of the common security and defence policy. 

Russia’s war of aggression against Ukraine has particularly affected Moldova with over 750,000 refugees entering the country and around 102,000 still remaining on Moldovan territory in the beginning of 2023. Relative to its population of just over 2.5 million, Moldova is the country with the most refugees per capita among Ukraine’s neighbours. During these times of heightened vulnerability, the EU continued to stand firmly with Moldova.

As a follow-up to High Representative Borrell and Commissioner Varhelyi’s visit to Moldova in early March 2022, the EU has put together a comprehensive support package to strengthen Moldova’s resilience across a wide number of fields: assisting in managing refugee flows through humanitarian aid and support to border management; efforts to strengthen energy security and resilience; macro-financial assistance and other financial assistance; as well as enhanced cooperation in the area of security and defence.

 Since October 2021, the EU has provided more than 1.09 billion EUR in support to Moldova, including grants and loans.

Humanitarian aid, civil protection and stability related assistance

As a response to the inflow of refugees from the war-torn Ukraine to Moldova, the European Commission has allocated €38 million for humanitarian operations, to support the refugees and their host communities in Moldova.  This assistance is implemented by humanitarian partners in Moldova (UN agencies, Red Cross and International Non-Governmental Organisations).

In February 2022, Moldova activated the EU Civil Protection Mechanism requesting assistance for management of migration flows. So far, 19 EU countries and Norway have provided emergency assistance to Moldova via the Mechanism. This includes deliveries of shelter equipment, medical supplies, power generators, and other essential items. A team of EU civil protection experts is in Moldova advising the authorities and coordinating incoming assistance.

The Commission also mobilised its rescEU medical stockpiles hosted by the Netherlands and Hungary to provide much-needed medical equipment such as oxygen concentrators, ventilators, and patient monitors.

A rapid response measure with a budget of €8 million was announced under 'Neighbourhood, Development and International Cooperation instrument – Global Europe' (called 'NDICI- Global Europe') to strengthen Moldova’s resilience to the crisis situation, which will support national efforts to increase the country’s cyber-security and resilience of its information space while also providing inclusive assistance to the government and population in managing the refugee influx resulting from the war in Ukraine.

Support for effective border and migration management

Moldovan border guards have faced additional challenges, both because of the high number of refugee arrivals on the territory and the fact that the border is shared with an active war zone.

The EU has therefore stepped up its support to Moldova for border management. The EU Border Assistance Mission to Moldova (EUBAM) has been reinforced with €15 million. On 17 March 2022, the European Union signed a legally binding agreement with Moldova on border management cooperation between Moldovan border guards and the European Border and Coast Guard Agency (Frontex). This agreement allows for an additional deployment of Frontex teams to Moldova at the border, to provide increased technical and operational assistance.

Another €15 million under the EU funding instrument NDICI-Global Europe has been mobilised to support dignified and efficient treatment of refugees, secure transit and repatriation of third-country nationals, working with the International Organization for Migration.

Furthermore, following the activation of the Temporary Protection Directive on 4 March 2022 to grant temporary protection to those fleeing the war in Ukraine, the European Commission has set up a Solidarity Platform to coordinate cooperation and the exchange of information among EU Member States, in particular in relation to facilitate transfers of refugees from Moldova to Member States and to monitoring the reception capacities in each Member State.

Cooperation with Europol is also ongoing under the cooperation agreement. Following a fact-finding mission organized in March, Europol has deployed two European Migrant Smuggling Centre (EMSC) Specialists and Firearms analysts and two Guest Officers.

Support to the energy sector  

To help Moldova face the acute energy crisis caused by Gazprom’s sharp reduction of deliveries and Russia’s increased attacks on Ukraine’s energy infrastructure, the EU supports Moldova in improving its energy resilience and in ensuring stable electricity and gas supplies. With EU assistance, Moldova has made its first purchases of gas and electricity from the EU. Reduction in energy demand is also prioritised to ensure Moldova’s energy security.

On 16 March 2022, the electricity grid of Moldova was successfully synchronised with the Continental European Network. This has helped Moldova to keep its electricity system stable under the current circumstances and is also a historic milestone for the EU-Moldova relationship.

In November 2022, the EU pledged an additional energy support package for the country of €200 million, to be disbursed from January 2023 and of which €100 million will be grants, in order to help the country meet its gas supply needs. The EU will also provide a further €50 million in grants to help Moldova address the negative spill over of Russia’s war of aggression against Ukraine, bringing the EU’s total budget support to the country to €185 million since December 2021. In November 2021, a €15 million rapid response measure was also mobilised to support Moldova’s most vulnerable groups and its energy transition.

In August 2022, the EU disbursed a €75 million budget support grant for the energy sector. This assistance package supports the country to cope with the multiple repercussions in the energy sector of the Russian military aggression against Ukraine. In particular, it helps mitigate the socio-economic consequences of the high energy prices on the most vulnerable citizens and alleviate the economic strain resulted from hosting and supporting refugees. It also helps building the long-term socio-economic recovery, energy security and energy transition of the Republic of Moldova.

The EU is working with the Energy Community Secretariat to put in place an Energy Rescue Scheme for Moldova which will allow donors to support the energy purchase by Moldova. Ongoing advisory support is being provided by experts to Moldovan government and key institutions. The Energy Community Secretariat opened a new office in Chisinau to better assist Moldova in modernizing its energy sector and making it more secure and resilient to current and future challenges.

Macro-financial assistance

As part of the effort to help Moldova address its urgent financing needs stemming from the gas crisis that began in autumn 2021, and was further exacerbated by the fallout from the Russian unjustified aggression against neighbouring Ukraine, in January 2022, the EU has made a proposal for a new Macro-financial Assistance operation for Moldova. On 6 April 2022, the European Parliament and Council adopted the new Macro-Financial Assistance (MFA) for Moldova of EUR 150 million (EUR 120 million in medium-term loans on concessional terms and EUR 30 million in grants). The MFA entered into force on 18 July for two and a half years to be disbursed in three tranches of EUR 50 million each. Several policy conditions agreed between the EU and Moldova in the Memorandum of Understanding are attached to this operation, including in key priority areas, such as the rule of law and fight against corruption, public and financial sector governance, strengthening the business environment and energy sector reforms. Moldova also continues to satisfy the political pre-condition of democratic mechanisms, the rule of law and respect for human rights and presents a positive track record in implementing the standing IMF agreement.

Support to trade and infrastructure

Since June 2022, the EU is granting additional duty-free access for one year for several agricultural products, which are not yet fully liberalised under the EU-Moldova DCFTA. This is a demonstration of the EU’s solidarity designed to help Moldova deal with the loss of its main markets and transit hubs for these key agricultural products resulting from Russia’s unjustified war of aggression against Ukraine.

Road transport agreements signed between the EU, Ukraine and Moldova will help ensure secure supply chains and food security. A €20 million grant for the modernisation of the railways will embed Moldova in the TEN-T network and will support the Solidarity Lanes initiative.

Support to security and defence

The EU’s support to Moldova’s security and defence sectors has been considerably enhanced over the last two years. Assistance is provided in the field of cybersecurity, countering hybrid threats and disinformation. In order to enhance Moldova’s strategic communication capacities and fight against disinformation, support to independent media is ongoing, focusing on strategic communication, investigative journalism and tackling disinformation. Additionally, support is provided to local media and start-ups, as well as to the Audiovisual Council.

In the field of defence, €7 million from the European Peace Facility adopted in December 2021, will support the Republic of Moldova’s Armed Forces. It will help finance its field hospitals, ambulances, medical imaging and surgery equipment, as well as Explosive Ordnance Disposal kits, including essential equipment and vehicles. This will improve their ability to provide services to civilians in crises or emergency situations over the next 36 months. An additional €40 million adopted in June 2022 will strengthen the capacities of the Moldovan Armed Forces’ logistics, mobility, command and control, cyber-defence, unmanned aerial reconnaissance and tactical communications units by providing relevant non-lethal equipment, supplies and services, including equipment-related training.

In July 2022, the EU launched the Support Hub for Internal Security and Border Management in Moldova. As an operational platform, the EU Support Hub supports cooperation on internal security and border management between the EU, its Agencies, the Member States and the Moldovan authorities. The hub will enhance the EU’s joint operational action with Moldova to address the challenges posed by organised crime, including the trafficking of firearms or trafficking in human beings. It will also help Moldova to participate in EU tools and instruments on internal security.

EU-Moldova trade relations are determined by the free trade area set up by the Deep and Comprehensive Free Trade Agreement (DCFTA) and part of the Association Agreement.

The agreement was provisionally applied since 1 September 2014, and came into full force on 1 July 2016, it applies to the full territory of Moldova, including Transnistrian region.

The DCFTA sets up a free-trade area between the EU and Moldova in line with the principles of the World Trade Organisation.

The DCFTA allows for:

• The removal of import duties for most goods traded between the EU and Moldova
• Provides for broad mutual access to trade in services for both partners
• Both EU and Moldovan companies can create a subsidiary or a branch office on a non-discriminatory basis. This means they receive the same treatment as domestic companies in the partner's market when setting up a business.
• This preferential trade system has allowed Moldova to benefit from reduced or eliminated tariffs for its goods, an increased services market and better investment conditions.
• Autonomous trade preferences provide duty-free and quota-free access for almost all Moldovan goods to the EU market.

An important part of the DCFTA is aligning Moldovan trade-related laws to selected EU legislative acts. The aim of Moldova's adoption of EU approaches to policy-making is to improve governance, strengthen the rule of law and provide more economic opportunities by widening the EU market to Moldovan goods and services.

In 2021, the EU remained the main trade partner of Moldova, accounting for 52.2% of its total trade (approx. 67% of total exports and 45% of Moldova’s total imports).

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