Commissioner for European Neighborhood Policy and Enlargement Negotiations Johannes Hahn on November 23 didn’t announce the unblocking of the macro-financial assistance or the definite disbursement of the first tranche of the €100 million in the first quarter of 2018, for the Republic of Moldova. The clarification was provided by the Delegation of the European Union to Moldova following press reports that Commissioner Johannes Hahn made the announcement about the unblocking of the macro-financial assistance for the Republic of Moldova and the disbursement of the first tranche in the first quarter of 2018, IPN reports.
In a press release, the EU Delegation in Chisinau says that in Brussels Commissioner Hahn explained that the macro-financial assistance can be provided in three tranches, only if particular conditions are met. The signing of the Memorandum of Understanding with the Republic of Moldova the same day represents the first step of a lasting process and does not ensure or announce automatically the disbursement of a tranche. The Memorandum contains 28 conditions that include measures related to: public sector governance; financial sector governance; fight against corruption and money laundering; energy sector and business sector reforms, and implementation of the Deep and Comprehensive Free Trade Agreement (DFCTA) between Moldova and the EU.
These conditions stipulated in the Memorandum of Understanding are in concordance with the main economic reforms agreed by the Republic of Moldova and the EU within the Association Agreement, including the DCFTA, the Association Agenda, the National Action Plan for Implementing the Association Agreement and other strategic documents. The Memorandum of Understanding ensures synergy with the program agreed by the Republic of Moldova with the IMF, the World Bank and other donors and with policy programs associated with EU budget support operations.
The Memorandum should be ratified by the Republic of Moldova. Commissioner Hahn made reference to the administrative process that is to follow. Thus, after the document is ratified, the European Commission and the European External Action Service will assess the situation to see how the Moldovan authorities met the political conditions concerning the observance of the democratic mechanisms, rule of law and human rights, taking into account the recommendations of the Venice Commission and the OSCE. The European Commission will also analyze the fulfillment of the conditions concerning the economic and financial policies on which the provision of the first tranche of the macro-financial assistance depends.
Only if these assessments are positive following the fulfillment of conditions, will the European Commission disburse the first tranche of the €100 million in macro-financial assistance. If the analysis is negative, the disbursement of the first tranche will be suspended until the Republic of Moldova fulfills the assumed obligations and disbursement conditions.
