EU Pledges €1.8 Billion in Funding to Moldova Ahead of Key Votes

(Bloomberg) -- The European Union will allocate a record €1.8 billion ($2 billion) to Moldova to support the country’s plan to join the bloc, European Commission President Ursula von der Leyen said Thursday.

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The announcement during a trip to the country Thursday comes less than two weeks before Ukraine’s smaller neighbor is set to vote in presidential elections and a referendum that could seal its path toward EU accession. The campaign ahead of the Oct. 20 ballots has been marred by allegations of Russian meddling to sway the outcome.

The three-year plan is designed to boost Moldova’s economic recovery, which has been strongly affected by the war in Ukraine, von der Leyen said Thursday alongside Moldovan President Maia Sandu in Chisinau.

The Moldovan “economy and our single market should come closer and we can start right now even before you join the union,” the president of the EU’s executive arm said. “We believe that we can help you double the size of your economy in a decade.”

After Moldova’s economy contracted 4.6% in 2022, mostly because of the impact of Russia’s war in Ukraine, the country saw a modest recovery of 0.7% growth in 2023.

The growth plan may help prop up support for Sandu, who’s vying to secure a second term in the race against several pro-Russian candidates. Citizens will also be asked to vote on a change to the constitution.

The bulk of the EU assistance will be provided in the form of loans and about €605 million in grants to boost major infrastructure projects like roads and hospitals, local businesses and budget support for social projects, Moldovan Deputy Prime Minister Cristina Gherasimov told reporters on Thursday.

While Moldova’s pro-European government wants to complete negotiations and join the bloc by 2030, Russia is stepping up its own efforts to undermine the elections through disinformation and illegal funding of pro-Russian opposition parties.

--With assistance from Andra Timu.

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