Is Moldova in the EU? Understanding Its Relationship with the European Union

No, Moldova is not part of the European Union. But let's delve deeper into Moldova, the European Union, and their relationship.

Definition of the European Union (EU)

What is the  European Union? Although the name is often used, it is better to provide a synthetic definition before proceeding.

The European Union is a supranational political and economic union of 27 member states primarily located in Europe. It covers an area of 4,233,255 km² and has an estimated population of over 448 million. The EU was established to foster economic cooperation and integration among its members, with the initial aim of increasing economic cooperation between six countries: Belgium, Germany, France, Italy, Luxembourg, and the Netherlands. Over the years, the EU has expanded to include various countries, with the UK being a founding member but leaving in 2020. The EU promotes peace, stability, prosperity, and democratic values among its members and has been awarded the Nobel Peace Prize for its efforts in advancing peace and democracy in Europe.

Overview of Moldova on Political and Economic Topics

Moldova, a landlocked country in Eastern Europe, has a mixed economic system that combines private freedom with centralized economic planning and government regulation [Source]. The country remains one of Europe's poorest nations, facing challenges such as corruption, political uncertainty, weak administrative capacity, and energy import dependence. Here is a summary of Moldova's political and economic landscape:

Political Environment

Moldova's political environment has been contentious, with Western-oriented parties unseating a Communist Party-led government in 2009.

President Maia Sandu's reform-oriented  Party of Action and Solidarity (PAS) won snap parliamentary elections in July 2021, marking the first time in 20 years that a party received an absolute majority of votes.

PAS's victory ended years of rule by unstable coalitions and led to the formation of a single-party government under Prime Minister Dorin Recean since February 2023.

Economic Landscape

Moldova's economy has shown relatively strong performance but faces challenges like corruption and dependence on agricultural exports.

The GDP per capita in 2022 was estimated at USD 16,483, significantly lower than the European Union average.

Moldova's economy heavily relies on agriculture, which represents 10.4% of GDP and employs nearly 21% of the workforce.

Despite economic difficulties in the past due to dependency on the former Soviet Union for energy and raw materials, Moldova has made progress in economic reform since independence.

 Read more about the Economic Context of Moldova on the Lloyds Bank website.

Moldova's Relationship with the European Union

In its endeavor to bring Moldova closer to the EU, the European Union operates within the framework of the  European Neighbourhood Policy and the  Eastern Partnership. This collaboration aims to foster stronger ties between Moldova and the EU. As part of its commitment, the EU provides extensive support to Moldova in various areas.

Humanitarian aid and civil protection are crucial aspects of the EU's assistance to Moldova. In response to the influx of refugees from war-torn Ukraine, the European Commission allocated €38 million for humanitarian operations. These funds, including €25 million announced in October 2022, are being utilized by humanitarian partners in Moldova, such as UN agencies and INGOs, to assist the country in managing the flow of refugees into and through its territory.

Furthermore, Moldova activated the  EU Civil Protection Mechanism on 25 February, seeking assistance for managing migration flows. So far, 19 EU countries and Norway have provided emergency aid to Moldova through this mechanism. This support includes the delivery of shelter equipment, medical supplies, power generators, and other essential items. Additionally, a team of EU civil protection experts is stationed in Moldova, offering advice to local authorities and coordinating incoming assistance efforts.

The EU also focuses on enhancing Moldova's resilience to crisis situations. A rapid response measure, with a budget of €8 million under the NDICI-GE, aims to strengthen Moldova's cybersecurity and resilience to manage the refugee influx resulting from the war in Ukraine. This initiative supports national efforts to safeguard the country's information space while providing inclusive assistance to the government and the population.

Moreover, the EU assists Moldova in improving its border and migration management capabilities. With challenges arising from a high number of refugee arrivals and a shared border with an active war zone, Moldovan border guards require additional support. The EU has bolstered its assistance through the  EU Border Assistance Mission to Moldova (EUBAM), allocating €15 million to support border management efforts. Additionally, a legally binding agreement was signed between the EU and the Republic of Moldova on border management cooperation, enabling the deployment of Frontex teams to provide technical and operational assistance.

Another critical area of cooperation is energy security. The EU supports Moldova in addressing its energy crisis caused by disruptions in gas supplies and attacks on Ukraine's energy infrastructure. With EU assistance, Moldova has made its first purchases of gas and electricity from the EU. Additionally, the synchronization of Moldova's electricity grid with the Continental European Network enhances the country's energy stability, marking a significant milestone in the EU-Moldova relationship.

Financial assistance plays a vital role in supporting Moldova's development agenda. As the largest provider of financial aid to Moldova, the EU has allocated significant funds to the country. Moldova has benefited from over half a billion euros in grants between 2014 and 2020, along with access to additional loans and grants under previous Macro-Financial Assistance programs. The disbursement of a new Micro-Financial Assistance package, totaling €150 million, commenced in 2022, providing essential support to Moldova's economy.

Furthermore, the EU extends support to Moldova's trade and infrastructure sectors. Additional duty-free access for agricultural products and investments in transportation infrastructure aim to boost economic growth and enhance connectivity. The EU's commitment to strengthening Moldova's security and defense capabilities is evident through the launch of the EU partnership mission in Moldova, focusing on crisis management, cybersecurity, and countering hybrid threats.

In parallel to these efforts, Moldova's aspirations for EU membership have gained momentum. After receiving EU candidate status in June 2022, Moldova commenced accession negotiations in December 2023, marking a significant step towards closer integration with the EU.

Through its multifaceted support and cooperation, the EU is committed to advancing Moldova's development, fostering regional stability, and deepening the partnership between Moldova and the European Union.

Moldova's EU Accession Process

In 2014, the European Parliament asserted the European perspective of Moldova, affirming its eligibility to pursue EU membership based on democratic principles and human rights standards.

Prime Minister  Iurie Leanca expressed optimism in 2014 about Moldova's path to EU membership, setting a target coinciding with Romania's EU presidency in 2019.

Moldova's ambition to apply for EU membership was vocalized by  Andrian Candu, Moldova's speaker of parliament, in 2017, targeting a submission by late 2018 or 2019.

Despite internal hurdles, Moldova's President Maia Sandu officially applied for EU membership in 2022, following the 2022 Russian invasion of Ukraine.

The European Commission's formal recommendation in June 2022 granted Moldova candidate status for EU accession, contingent upon fulfilling specified conditions.

Moldova faces a multifaceted agenda for reform, including enhancing economic efficiency, combating corruption, and judicial system overhaul, among other prerequisites outlined by the European Commission.

A pro-European rally in Chișinău in 2023 underscored widespread support for Moldova's EU aspirations.

Prime Minister  Natalia Gavrilița indicated that accession negotiations could commence no earlier than autumn 2023.

In November 2023, the European Commission proposed starting accession talks with Moldova, culminating in EU leaders' decision to proceed with negotiations in December 2023.

The European Council's latest conclusions underscore Moldova's significant progress toward EU alignment, particularly amidst geopolitical challenges, emphasizing the importance of sustained reform efforts, notably in the realms of rule of law, justice, and anti-corruption measures.

Moldova's commitment to economic reforms, public administration strengthening, and alignment with EU foreign policy positions are highlighted as pivotal for advancing its accession bid.

Challenges faced by Moldova in the accession process

Moldova's journey towards EU membership faces multifaceted challenges, exacerbated by external pressures and internal dynamics. Despite notable progress, several hurdles impede its accession process.

Impact of Russia's Aggression: Moldova grapples with the fallout from Russia's war against Ukraine, confronting a myriad of challenges including managing a surge in refugees, inflationary pressures, energy supply disruptions, airspace violations, and hybrid warfare tactics. These adversities strain Moldova's resources and resilience, diverting attention from its EU integration efforts.

Reform Imperatives: Moldova must navigate a demanding reform agenda outlined by the European Commission, encompassing critical areas such as democracy, rule of law, justice reform, and public administration. While strides have been made, persistent vulnerabilities and deficiencies require sustained attention and remediation.

Transnistrian Conflict: The unresolved Transnistrian conflict remains a significant obstacle to Moldova's EU aspirations. Achieving a comprehensive, peaceful resolution aligned with Moldova's sovereignty and territorial integrity poses a formidable challenge, necessitating continued diplomatic efforts and international support.

Refugee Crisis Management: Moldova's commendable reception of displaced persons fleeing Ukraine underscores its solidarity and humanitarian commitment. However, accommodating and supporting the influx of refugees strains Moldova's infrastructure, resources, and societal cohesion, demanding effective management strategies.

Economic Reforms: Moldova faces economic restructuring imperatives to align with EU standards, including enhancing market competitiveness, tackling corruption, and bolstering institutional capacity. Despite progress, persistent weaknesses in governance, investment climate, and infrastructure hamper economic modernization efforts.

Judicial and Anti-corruption Reforms: Moldova's judiciary and anti-corruption frameworks require comprehensive overhaul to bolster accountability, transparency, and rule of law. While legislative reforms have been enacted, challenges persist in implementation, judicial efficiency, and combating high-level corruption.

Political Stability and Democratic Governance: Ensuring political stability, fostering inclusive governance, and strengthening democratic institutions are essential prerequisites for EU accession. Challenges such as opposition engagement, transparency deficits, and parliamentary efficacy demand concerted efforts to fortify democratic norms and practices.

Social and Human Rights Issues: Moldova faces entrenched social disparities, discrimination, and human rights challenges, particularly affecting minority groups, vulnerable populations, and prisoners. Addressing these systemic issues necessitates comprehensive policy interventions, societal dialogue, and institutional reforms.

External Relations and Regional Cooperation: Moldova's engagement in regional cooperation forums and external relations requires balancing diverse interests while advancing EU alignment. Maintaining good neighborly relations, fostering regional stability, and navigating geopolitical complexities pose ongoing diplomatic challenges.

Capacity Building and Alignment with EU Acquis: Moldova's alignment with EU regulations and standards demands capacity-building efforts across various sectors, spanning from legislative harmonization to institutional reforms. Enhancing administrative capacity, regulatory enforcement, and compliance mechanisms remains a formidable task.

Source -  Moldova Report 2023 - Directorate-General for Neighbourhood and Enlargement Negotiations (PDF)

Moldova's Participation in EU Programs and Agreements

Moldova's collaboration with the European Union (EU) is governed by key agreements and initiatives aimed at fostering political, economic, and social ties. The  Partnership and Cooperation Agreement (PCA), established in 1994, serves as the foundation for cooperation across multiple domains. Since then, Moldova has actively pursued deeper integration through the implementation of action plans and the signing of the Association Agreement (AA) in 2014.

One significant milestone was the achievement of a  visa-free regime for Moldovan citizens in 2014, enhancing mobility and fostering people-to-people exchanges. In response to regional challenges, such as Russia's aggression against Ukraine, the EU presented a Support Package for Moldova in 2023, focusing on economic development, administrative capacity building, energy security, security cooperation, and countering foreign interference.

Financial assistance has been substantial, with the EU providing grants and loans to support Moldova's resilience and development. Beyond financial aid, the EU engages in technical assistance, infrastructure development, trade facilitation, and security cooperation, contributing to Moldova's stability and long-term prosperity.

Source -  European Commission - European Neighbourhood Policy and Enlargement Negotiations (DG NEAR)

Public Opinion in Moldova Regarding EU and EU Membership

In February 2014,  Gagauzia, an autonomous region in Moldova, held referendums on European integration. The results showed overwhelming support for joining the Customs Union of Belarus, Kazakhstan, and Russia, with 98.4% in favor. Additionally, 97.2% opposed further integration with the EU, expressing concern that Moldova's EU integration could lead to unification with Romania, which is unpopular in Gagauzia. Furthermore, 98.9% supported the proposition that Gagauzia could declare independence if Moldova unified with Romania.

Moving forward, in  June 2018, a poll indicated that 46% of Moldovans preferred joining the EU over the Eurasian Economic Union, with 36% expressing a preference for the latter. By  March 2022, after President Maia Sandu announced the submission of an EU membership application, support for EU membership increased to 61% among Moldovans, up from 52% before the start of the 2022 Russian invasion of Ukraine.

In May 2022, a poll revealed that 56.1% of Moldovans supported EU membership. Subsequent polls in July 2023 further underscored growing support, with 63% and 59% expressing support for EU membership, respectively. These findings align with the broader sentiment reflected in the ' Annual Survey 2022 – Moldova. Perception of the European Union,' conducted by the EU regional Communication Programme for the Eastern Neighbourhood. The survey, carried out in June-July 2022, showed that 60% of Moldovans have a good awareness of the EU, with 78% acknowledging the EU's financial support for Moldova. Additionally, 74% perceive good relations between the EU and Moldova, while 57% trust the EU more than any other international organization.

Questions related to the Moldova - EU relations 

Why Hasn't Moldova Joined the EU?

Moldova's journey towards EU membership is hindered by issues such as territorial control, economic vulnerabilities, corruption, and Russian influence. The lack of full territorial control, exemplified by challenges in border management and the situation in regions like Transnistria, presents a significant obstacle to EU accession. Economic instability, including a cost-of-living crisis and energy shortages, poses further challenges to integration with the EU[1]. Moldova's split population sentiment on joining the EU versus maintaining ties with Russia complicates its path to European integration.

Despite these challenges, Moldova has demonstrated progress towards EU membership by meeting six out of nine criteria set by the European Commission for membership negotiations. Reforms in areas such as electoral codes, human rights protection, and public administration, as well as efforts against organized crime, reflect Moldova's commitment to aligning with EU standards. However, challenges remain, particularly in prosecuting major corruption cases and reducing economic dependencies on Russia.

Moldova's vulnerability to Russian influence and security threats further complicate its EU accession process. Efforts to reduce reliance on Russian gas and strengthen energy security indicate steps towards aligning with EU standards. Despite these obstacles, Moldova remains determined to join the EU by 2030 and continues to work towards fulfilling the requirements for membership.

Is Moldova considered a European Country?

Moldova is considered a European country due to its geographical location in southeastern Europe, its historical ties to EU member state Romania, and its aspirations for EU membership. Moldova shares a common language, traditions, and culture with Romania, and nearly half of its population identifies as Moldovan, with significant numbers of Russians and Ukrainians as well. The country's flag is a modified version of the Romanian flag, reflecting their shared heritage.

Despite being one of the poorest countries in Europe, Moldova has been actively seeking closer ties with the European Union. Moldova's government has expressed a desire to join the EU by 2030 and has taken steps towards aligning itself with European standards and values.

The EU has also shown support for Moldova's integration efforts, with the European Parliament reaffirming its commitment to Moldova's EU membership in April 2023

While Moldova faces challenges such as territorial disputes, economic vulnerabilities, and internal divisions on EU membership, its geographical location in Europe, cultural ties to Romania, and aspirations for closer integration with the EU solidify its status as a European country striving towards EU membership.

Latest News and Considerations related to Moldova - EU relations

September 04, 2024 - Moldova will receive €9.5 million in financial assistance from the EU to strengthen national security and support European integration. The EU4 Resilient Moldova project, launched in Chisinau, aims to improve emergency management, protect critical infrastructure, and enhance rural and urban resilience. Key actions include providing protective equipment for emergency responders, building 10 fire and rescue stations, and funding urban revitalization and smart village initiatives. The project also focuses on combating misinformation and raising awareness about EU integration benefits, with completion expected by November 2025. ( Read the article on Moldpress )

August 21, 2024 - During a recent visit, Prime Minister Dorin Recean and German Chancellor Olaf Scholz discussed strengthening Moldovan-German relations and enhancing support for Moldova’s European integration, emphasizing the importance of partnerships with EU states as Moldova progresses on its European path. ( Read the article on Moldpress )

June 7, 2024 - The European Commission has recommended opening accession talks with Moldova, indicating that the country is sufficiently prepared for the formal process of becoming an EU member. Moldova has fully fulfilled the required reform steps, specifically in judicial reform, de-oligarchization, and the fight against corruption. The decision to start negotiations now rests with the EU member states. Moldova submitted its candidacy shortly after the start of the invasion of Ukraine and obtained candidate status in June 2022, receiving a conditional green-light for the start of negotiations in December. ( Read the article on Radio Free Europe/Radio Liberty)

May 8, 2024 - European Commissioner Johannes Hahn and EU parliamentary friendship group chairs will visit Moldova on Europe Day, affirming support for Moldova's EU aspirations. Discussions will cover Moldova's path to EU accession, economic and energy sectors, and combating disinformation. The visit includes stops at the European Village and EU-supported projects in Ungheni. ( Read the article on Moldpres)

April 18, 2024 - The Moldovan opposition urges a boycott of a referendum on EU membership, accusing President Maia Sandu of exploiting it for reelection. Sandu prioritizes EU ties, calling the plebiscite vital. Her opponent,  Igor Dodon, criticizes her focus, emphasizing his ties with Moscow. Polls favor Sandu, with many Moldovans seeing EU accession as beneficial. Sandu champions EU integration, while Parliament speaker Igor Grosu sees it as a chance to reaffirm Moldova's European identity. Urban support for the EU is clear, but rural backing remains uncertain, as shown in recent elections where Sandu's party faced challenges from a banned pro-Russian group. ( Read the article on Reuters)

March 13, 2024 - The European Parliament extended trade liberalization for agricultural products between the EU, Ukraine, and Moldova. This includes safeguards for EU farmers and grants the EC authority to act swiftly in case of market disruptions. The measures cover various products, and Moldova benefits from rerouting trade through the EU. The decision postpones tariffs on Moldovan imports for another year. Formal approval from EU member states is now required. ( Read the article on TVP World)

March 13, 2024 - Moldova's cabinet has approved a new mechanism for coordinating its EU accession process and organizing the negotiating team. The team comprises government officials, experts, and may include specialists from academia, business, and civil society. They will provide regular reports to the government and keep parliament updated on the negotiations' progress. ( Read the article on MoldPress)

March 11, 2024 - Moldova's Foreign Minister,  Mihai Popșoi, warns of Russian threats to the country's EU membership aspirations. Popșoi highlights Russian efforts to undermine Moldova's democracy, including through bribery and manipulation. He expresses concern over the tense situation in Transnistria and its impact on investments. Despite Russian propaganda influence, Moldova continues to cooperate with NATO to strengthen its armed forces and resilience. ( Read the article on Ukrainska Pravda)

February 20, 2024 - Moldova and the EU have signed an association agreement for the Digital Europe Programme, granting Moldova access to its €7.5 billion budget until 2027. This partnership aims to boost Moldova's digitalization, particularly benefiting SMEs and the overall economy. Moldova will receive a 95% reduction in financial contributions and can participate in projects deploying digital technologies, including artificial intelligence and advanced digital skills. ( Read the article)

December 15, 2023 - The EU initiates membership negotiations with Ukraine and Moldova, while granting candidacy status to Georgia, despite opposition from Russia. This marks a significant historical development, reflecting the aspirations of these countries towards European integration. Moldova and Georgia, facing challenges like energy shortages and security threats, remain committed to meeting the rigorous criteria for EU membership, including addressing corruption and enhancing the rule of law. ( Read the article on France24)