The European Commission on July 29 announced a new annual support package for Moldova to help public institutions, citizens and the business community to seize the benefits and opportunities of the Association Agreement and the Deep and Comprehensive Free Trade Area with the EU (AA/DCFTA), IPN reports, quoting a press release of the European Commission.

Commissioner for Enlargement and European Neighbourhood Policy Štefan Füle said the Association Agreement is a milestone in the EU’s Eastern Partnership policy and in its relationship with Moldova. “It is based on shared fundamental values and will open new possibilities for closer political relations and stronger economic ties. Moldova has our full support in this significant and historical process,” he stated.

The fresh EU funding for Moldova is designed to support the modernization of key public institutions implementing the AA/DCFTA, improvement of public finance policy and management, competitiveness of rural business and trade opportunities with the EU and protection of minorities and vulnerable groups.

The program will contribute to further political association and economic integration with the EU under the Eastern Partnership initiative. It is a first package of bilateral assistance granted to the Republic of Moldova under the Single Support Framework, which sets out strategic objectives and priorities for future EU-Moldova cooperation in 2014-2017. The EU annual support package (Annual Action Program 2014) provides €101 million of bilateral allocation to Moldova.

Funding is granted through the European Neighborhood Instrument (ENI) for two actions. The first is the Support to Public Finance Policy Reforms in Moldova (€37 million): to assist the Ministry of Finance, the Parliament and the Supreme Audit Institution of Moldova in the process of enhancing good governance, effective fiscal policy, transparent and accountable public finance policy and strengthened public financial management systems.

The second is the European Neighborhood Program for Agriculture and Rural Development (ENPARD) Moldova – Support to Agriculture and Rural Development (€64 million): to enhance rural development through improved policy dialogue, governance and service delivery meeting the needs of private farmers while increasing the competitiveness of the agriculture sector. Part of the second action will be dedicated to further intensify the dialogue between central and regional authorities.