Moldova

In the west, Moldova borders on Romania and, thus, on the European Union. In the north, east and south, Moldova is surrounded by Ukraine. The EU launched accession negotiations with the Republic of Moldova in June 2024.

Map of Moldova with neighbouring states — Map of Moldova (red) with neighbouring states | increase map size

This country in South-Eastern Europe emerged when the Moldavian Socialist Soviet Republic declared its independence in 1991 after the dissolution of the Soviet Union. Nearly at the same time, a conflict broke out over Transnistria, a stretch of land east of the Dniester River along the Ukrainian border, which has since been a breakaway territory in Moldova.

Moldova is one of the poorest countries in Europe. Of the country's about 2.5 million people rural communities, women, young people and ethnic minorities are particularly affected by poverty. Many people have left the country in hopes of finding work and better living conditions elsewhere. It is estimated that roughly one third of the population is living abroad, either temporarily or permanently.

Since Russia's attack on Ukraine, the Republic of Moldova has been hosting roughly 120,000 refugees (as at July 2024) from the neighbouring country. No other country has accepted more refugees relative to the size of its population. The political and economic impact in the region of Russia’s war of aggression is making it more difficult to implement reforms and ensure social peace.

Apart from this exodus, the greatest challenges facing the country are deficits with regard to the rule of law and corruption in the private sector and in government authorities. The current government has made capacity building for administrative bodies and the justice system, anti-corruption, security of the state, and economic development its top political goals. The overarching goal is EU integration.

Since 2014, an Association Agreement has been in force between Moldova and the EU, with the aim of bringing the country closer to the EU in political and economic terms. After Ukraine applied for EU membership, Moldova followed suit in March 2022. In June 2022, Moldova was granted EU candidate status. Negotiations on Moldova’s accession to the EU began in June 2024.

German development cooperation with Moldova

Cover: Strategy for development cooperation with transformation partners in South-Eastern and Eastern Europe and the Southern Caucasus

The Federal Ministry for Economic Cooperation and Development (BMZ) has assisted the Republic of Moldova since 1993 in its transition to democracy, the rule of law and a social market system, and in its EU pre-accession efforts. Moldova is one of the so-called transformation partners for German development cooperation in the EU neighbourhood region.

In view of the huge impact of Russia’s war in Ukraine and Moldova’s reform orientation, the BMZ has massively expanded its support for Moldova since 2022. Since the beginning of the war, some 160 million euros (as at July 2024) has been made available to Moldova for crisis response, economic and social stabilisation and for reform and development projects.

At the Moldovan-German government negotiations in July 2023, the BMZ committed a total of 45 million euros to Moldova (roughly 25 million euros for Financial Cooperation and approximately 20 million euros for Technical Cooperation).

Development cooperation focuses on the following core areas:

Sustainable economic development, training and employment
Areas of intervention: Private sector and financial sector development; technical and vocational education and training
Climate and energy, just transition
Areas of intervention: renewable energy and energy efficiency, sustainable urban development

An overarching objective of cooperation is to support the country’s reform efforts and increasing alignment with the European Union. All projects under Moldovan-German development cooperation give attention to, and promote, good governance as a cross-cutting issue. The focus is on anti-corruption and on building the capacity of government institutions. Targeted support is provided to women and national minorities (for instance Roma communities).

One of the preconditions for Moldova’s EU accession is a reform of public administration and the effective management and surveillance of public finance. That is why the BMZ is supporting Moldova’s public administration in its efforts to manage and upskill its staff professionally, exchange ideas with administrative experts from the EU and other accession countries, drive digital technologies and deliver efficient, responsive administrative services.

Together with the European Union and Switzerland and in dialogue with the breakaway region of Transnistria, the BMZ is supporting measures to build trust.

Supporting Ukrainian refugees and host communities continues to be an important part of the BMZ’s engagement. During the crisis winter of 2022/23 an important contribution was made to mitigate the social impacts of the sharp rise in energy prices on vulnerable households.

Moldova is also benefitting from numerous regional programmes under the EU's Eastern Partnership. Issues being addressed include the digital transformation of companies, trade and logistics, public administration reforms and strengthening civil society.

Press release 20 January 2023

German Development Minister visits the Republic of Moldova: solidarity with those extending solidarity to refugeesInternal link
Press release 4 March 2022

Germany offers the Republic of Moldova supportInternal link

In the Republic of Moldova, people do not have sufficient opportunities to earn an adequate and steady income. And a large proportion of people's incomes is generated in the informal sector. Business and employment promotion is therefore a focus of German-Moldovan development cooperation.

Russia’s war of aggression in the region has plunged the Republic of Moldova into a deep energy crisis – the people, trade and industry are suffering from the sharp increase in energy prices. The BMZ has expanded its engagement in the energy sector since 2022 and is supporting Moldova in its efforts to restructure its energy sector so as to make it more climate-friendly and reduce the country’s dependence on fossil fuels. Another focus area of cooperation is municipal development.