“100 million euros from Europeans for yellow propaganda and subordinate NGOs.” “Those in power announce another 100 million euros from European funds for communication, mass-media, and civil society” and other statements with the same meaning were launched following a discussion during the parliamentary committee meeting for European integration on July 22nd. During a presentation, Marcel Spătari asked how it is explained that in the Growth Plan we have indicated 1.9 billion euros, but in the slide, if we add the sum of preferential loans of 1.5 billion euros plus the 520 million euros grants – we actually have just over 2 billion.
The rapporteur, being unsure, replied that the difference of 100 million euros will go towards communication and civil society, which is not true, notes in an editorial expert Stas Madan, taken over by realitatea.md. According to him, the next day, on July 23, the State Chancellery came up with a clarification on this subject in which it explained the difference.
If the Government’s communication on this subject has largely been limited to a post by the State Chancellery, the video sequence from the meeting on July 22nd has been widely disseminated by various politicians and opinion leaders, who tell society that 100 million euros are to be allocated from the Growth Plan for communication and civil society.
Now let’s see the truth. The growth plan for the Republic of Moldova – 1.9 billion euros is structured as follows:
- 1.5 billion euros – budget support, in the form of a preferential loan, granted by the European Union.
- 520 million euros – non-reimbursable financial assistance from the European Union, distributed as follows:
- 250 million euros – technical assistance aimed at strengthening the institutional capacities of the authorities responsible for implementing the reforms related to the reform agenda and commitments to join the European Union, managed by the Delegation of the European Union in the Republic of Moldova;
- 135 million euros – a grant investment component allocated to investment projects financed through the NIP (Neighbourhood Investment Platform), managed by the project implementation units;
Up to this point, we have 1.9 billion Euro, namely, this money effectively enters the Republic of Moldova.
However, in addition to this money, the Growth Plan also provides for 135 million euros – guarantees – funds that are not transferred to the accounts of the Republic of Moldova, being directly managed by the European Commission and allocated to financial institutions as a tool to reduce the risks associated with investments in the private sector.
Accordingly, through the Growth Plan, the European Commission uses a portion of the planned resources as guarantees for institutions such as the European Investment Bank, the European Bank for Reconstruction and Development, or other partner financial institutions, so that they can finance projects in the Republic of Moldova.
These guarantees are funds that will not enter the Republic of Moldova, but will be used to attract other investments in the Republic of Moldova by reducing risks. To understand how this works: it’s pretty much like a SME that doesn’t have enough collateral to take out a loan can go to the ODA and get a guarantee to cover the difference in missing collateral and thus benefit from that loan.
There was no problem even if 100 million Euros were coming towards civil society. We have enough organizations in various fields that could ensure the efficient allocation of these resources. But this is not true and it’s good not to let all sorts of opportunists grow through lies.
And the Government must be much more active and faster in correcting mistakes or uncertain responses. Especially on such an important subject as the Growth Plan.