Commissie Internationale Handel gaat akkoord met macro-financiële hulp aan Moldavië

The International Trade Committee has given the go-ahead for EU macro-financial aid to Moldova, one of Europe's poorest countries. Forty-five million euros will be provided to support the balance of trade and payments of this country, which has a frontier with the EU since the accession of Romania on 1 January 2007. However, in giving the green light to this proposal by the Council, MEPs laid down several conditions for the payment of the funds.

The macro-financial aid, which was approved in a report by Béla Glattfelder (EPP-ED, HU) adopted in committee on Wednesday, is intended to help with the deterioration in Moldova's trade balance following the rise in energy prices and the embargo imposed by Russia in 2006 on imports of Moldovan wine and spirits. The wine sector accounts for around 25% of Moldova's GDP and 80% of its production was exported to Russia. More generally, Moldova's economy remains highly dependent on agriculture (notably fruit, vegetables and tobacco) and is lacking in natural resources.

MEPs want to make the payment of successive tranches of aid subject to progress in the transparency of Moldova's public finances, the application of macroeconomic and budgetary priorities advocated by the International Monetary Fund and respect for human rights, including minorities.

The report also underlines the "exceptional" nature of an instrument such as macro-financial aid. The rapporteur believes it is "unjustifiable that such an instrument lacks a regular legal basis and continues to be based on ad hoc Council decisions". He calls for future financial aid to be governed by "a co-decided framework regulation" on macro-financial assistance, i.e. with decisions taken by Parliament and the Member States, which is necessary "to enhance transparency, accountability, monitoring and reporting systems".

This aid should prompt Moldova to implement reforms under the EU-Moldova Action Plan agreed as part of the European Neighbourhood Policy. And MEPs want the Memorandum of Understanding and the Grant Agreement that the Commission will agree with the Moldovan authorities to be submitted not only to the Council but also to Parliament.

23/01/2007

Committee on International Trade

Chair : Enrique BARON CRESPO (PES, ES)

Procedure: Consultation

Plenary vote : February, Strasbourg