Policy Brief IPRE: One Year into the Growth Plan: Between Reform Ambition and Absorption Capacity

The Institute for European Policies and Reforms (IPRE) has published a new Policy Brief assessing the first year of implementation of the EU Growth Plan for the Republic of Moldova—a €1.9 billion financial package designed to accelerate structural reforms and European integration.

Adopted in October 2024 and launched in early 2025, the EU Growth Plan for the Republic of Moldova is the most ambitious financial support instrument ever provided to our country. With a total budget of 1.9 billion euros, including 520 million euros in grants and up to 1.5 billion euros in concessional loans, the Plan supports 56 reforms and 153 actions aimed at economic modernization, good governance and competitiveness.

The macroeconomic context in which the Plan was launched is challenging: in 2024, Moldova’s real GDP growth slowed to just 0.1%, while the budget deficit reached 3.9% of GDP. Although economic activity rebounded in 2025, with growth of 2.4%, structural imbalances persist.

Thus, by April 2026, the European Commission had disbursed four payment installments:

• May 2025: €270 million — pre-financing, announced at the EU–Moldova Summit;
• July 2025: €24.3 million — additional pre-financing;
• August 2025: €20.6 million — first instalment, following the fulfilment of four reform indicators;
• March 2026: €189 million — second instalment, following the submission of implementation reports.

The policy brief developed by Elena Bolocan, researcher at IPRE, identifies several structural constraints that could affect the Plan’s effectiveness:

• Insufficient administrative capacity: only some of the key positions responsible for coordinating implementation have been filled;
• National monitoring mechanism yet to be adopted: although the Reform Agenda called for the adoption of a mechanism within six months, it has not yet been approved;
• Fragmented public reporting: information on fund allocation and the progress of investment projects is not systematically communicated at the national level;
• Limited civil society involvement: the absence of formal consultation mechanisms affects the transparency and legitimacy of allocation decisions.

IPRE Recommendations

To ensure that the Growth Plan yields tangible results, IPRE recommends that the authorities of the Republic of Moldova:

• Strengthening financial monitoring and transparency mechanisms, with regular and accessible public reporting on the use of funds;
• Ensuring that project selection aligns with strategic reform priorities by publishing selection criteria and linking them to a formal monitoring mechanism;
• Institutionalizing multilateral monitoring, with civil society participation in monitoring committees;
• Strengthening the absorption capacity of local authorities through targeted training and incentives for inter-municipal cooperation.

„For Moldova, the Growth Plan is more than financial assistance – it is a test of institutional maturity and political will. The way the country absorbs these funds, reports on their use and carries out measurable reforms, will signal to EU partners whether Moldova is ready not only for accession negotiations, but also for the responsibilities that EU membership entails”, considers Elena Bolocan, author of the policy brief.

Policy brief is available here.

The policy brief  “One year of the Growth Plan: Between Reform Ambition and Absorption Capacity” was prepared by Elena Bolocan as part of the Think Tank School, a program implemented by Think Tank Lab (DGAP and MERICS). The document is based on public data, comparative analyses, and interviews with representatives of DG ENEST, the State Chancellery, the Ministry of Finance, and civil society experts.