Germany has allocated additional funds to Moldova amid high inflation and the influx of refugees from Ukraine.
Germany has promised to allocate an additional 40 million euros in budgetary aid to Moldova amid the economic problems of the republic and the war in Ukraine. This was announced by German Foreign Minister Annalena Baerbock on Friday, July 15.
The situation in Moldova remains ‘incredibly difficult’, Baerbock said before an international donor conference in Bucharest. The number of refugees from Ukraine per capita in the country is higher than in any other country, and inflation in Moldova has reached 29 percent, she recalled.
“This stresses how important it is that we continue to work on stabilizing (the situation. - Ed.),” AFP news agency quoted Baerbock. The 40 million euros of direct budget support from Germany is needed “because at such a high rate of inflation, the poorest segments of Moldova’s population are really on the verge of survival,” the German foreign minister explained.
Allocation of additional funds must be approved by the budget committee of the Bundestag, AFP noted. Baerbock added that Germany helps Moldova to guard the border, provides the country with drones, night vision devices and vehicles.
700 million euros for Moldova from donor countries
In April, nine international organizations and 36 donor countries decided to give Moldova 695 million euros in aid, including loans and 108 million euros in direct subsidies to the state budget of the country, following a donors’ conference in Germany.
At the same time, Germany and its partners agreed on assistance to Moldova in five areas: reception, accommodation and further transfer of Ukrainian refugees, support in energy supply issues, assistance in domestic reforms, border management and strengthening ‘financial resilience’.
At the end of June, the EU granted Moldova candidate status. “EU candidate status shows that we will not leave any country, no matter how small, no matter how strong the pressure from Russia, in this difficult situation,” Baerbock said.