Relations between the Republic of Moldova (‘Moldova’) and the European Union are developing within the framework of the European Neighbourhood Policy. In 2005, the Community and Moldova agreed on a European Neighbourhood Policy Action Plan identifying medium-term priorities in EU-Moldova relations. The framework of those bilateral relations is further enhanced by the recently launched Eastern Partnership. In January 2010 the European Union and Moldova started negotiating an Association Agreement that is expected to replace the existing Partnership and Cooperation Agreement.

The Moldovan economy has been severely affected by the international financial crisis, with dramatically declining output, a deteriorating fiscal position and rising external financing needs.

Moldova’s economic stabilisation and recovery are supported by financial assistance from the International Monetary Fund (IMF). The IMF financing arrangement for Moldova was approved on 29 January 2010.

Moldova has requested Union macro-financial assistance in view of the deteriorating economic situation and outlook.

Given that a residual financing gap in 2010-2011 remains in Moldova’s balance of payments, macro-financial assistance is considered an appropriate response to Moldova’s request to support economic stabilisation in conjunction with the current IMF programme. This macro-financial assistance is also expected to contribute to alleviating the external financing needs of the State budget.

The Union macro-financial assistance should not merely supplement programmes and resources from the IMF and the World Bank, but should ensure the added value of Union involvement.

The Commission should ensure that the Union macro-financial assistance is legally and substantially in line with the measures taken within the different areas of external action and other relevant Union policies.

The specific objectives of the Union macro-financial assistance should strengthen efficiency, transparency and accountability. These objectives should be regularly monitored by the Commission.

The conditions underlying the provision of the Union macro-financial assistance should reflect key principles and objectives of Union policy towards Moldova.

In order to ensure efficient protection of the Union’s financial interests linked to this macro-financial assistance, it is necessary that Moldova adopt appropriate measures relating to the prevention of, and the fight against, fraud, corruption and any other irregularities linked to this assistance. It is also necessary that the Commission provide for appropriate controls and that the Court of Auditors provide for appropriate audits.

The release of the Union macro-financial assistance is without prejudice to the powers of the budgetary authority.

The Union macro-financial assistance should be managed by the Commission. In order to ensure that the European Parliament and the Economic and Financial Committee are able to follow the implementation of this Decision, the Commission should regularly inform them of developments relating to the assistance and provide them with relevant documents.

According to Article 291 of the Treaty on the Functioning of the European Union, rules and general principles concerning mechanisms for the control by Member States of the Commission’s exercise of implementing powers are to be laid down in advance by a regulation adopted in accordance with the ordinary legislative procedure. Pending the adoption of that new regulation, Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission2 continues to apply, with the exception of the regulatory procedure with scrutiny, which is not applicable,